7978 - Berlian Laju Tanker

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Environmental & Social Review Summary

Project Number

7978

Company Name

P.T. Berlian Laju Tanker

Date ESRS Disclosed

Feb 5, 2010

Country

Indonesia

Region

East Asia and the Pacific

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 29, 1997
Signed : Jul 23, 1997
Invested : Sep 16, 1997

Sector

Water Transportation

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

Environmental Review Summary (ERS)

Project Name Indonesia-Berlian Laju Tanker

Region Asia

Sector Infrastructure

Project No. 007978
April 16, 1997

1. This project involves the expansion of Berlian Laju Tanker’s (BLT) existing fleet of 12 tankers, by acquiring ten newbuilt tankers of 6,500-9,000 DWT each to serve both the growing domestic and regional trades in oil products, chemicals and edible oils. BLT is a subsidiary of Bina Surya Group of Indonesia. The project would considerably increase BLT’s current tonnage of 97,636 DWT to approximately 162,636 DWT. The total project cost is estimated at US$120 million, with total IFC financing up to US$45 million.

2. BLT’s business is principally shipping and does not include onshore crew housing, maintenance or dry docking facilities, and BLT does not provide onshore services for storage and handling of cargo or handling and disposal of vessel wastes (e.g., oily ballast, garbage, sewage).

3. This is a category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, IFC’s consultant - Drewry Shipping Consultants, and the technical appraisal and site review completed by IFC’s staff. The following potential environmental, health and safety impacts of the project were analyzed:

· spill prevention;
· liquid effluents;
· hazard control;
· emergency response;
· fire prevention; and
· maritime safety.

The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.

4. Indonesia and Panama, the flag states under which BLT ships operate, are signatories to the main International Maritime Organization (IMO) conventions. Accordingly, BLT and Drewry have both confirmed that all ships in the existing BLT fleet currently comply with the SOLAS 1974&1978 (safety code), MARPOL 1973/78 (environmental protection/pollution prevention code), and the STCW 1978 regulations. These standards include treatment and disposal of domestic and industrial solid waste generated from Shipboard operations, treatment and/or disposal of domestic sewage, ballast, bilge and storage compartment waters or other effluents. In addition, BLT have confirmed that they are in possession of valid Class Certificates for all ships currently operated in their fleet. This includes certifications pertaining to, for example, such issues as: Safety Equipment, Oil Pollution Prevention, Crew Accommodation, Minimum Safe Manning Certificate, and Safety Construction Certificate.

5. BLT’s insurance claims history indicates that the company has a good safety record. The company maintains a safety management committee and an emergency response team. BLT recently, in January 1997, received International Safety Management (ISM) certification. ISM is a mandatory SOLAS requirement which is slated to come into force in mid-1998. Furthermore, two of BLT’s ships are rated in the Guide for the Selection of Tankers, compiled by the Tanker Advisory Center (NY, USA). Several of BLT’s ships are regularly inspected by major oil companies (such as Mobil, Shell and Exxon), who charter BLT ships.

6. BLT confirm that all new ships will be operated in a manner consistent with all applicable IMO, SOLAS, MARPOL, and STCW codes.

7. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Indonesia requirements, and World Bank policies, and environmental, health and safety guidelines.

8. IFC will monitor BLT’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.

L:\WPEU\LB\INDO\BLT.ERS
April 21, 1997 11:15 AM

Environmental and Social Mitigation Measures

Broad Community Support

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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