Environmental & Social Review Summary
Project Number
9692
Company Name
CELTEL MALAWAI LIMITED
Date ESRS Disclosed
Feb 5, 2010
Country
Africa Region
Region
Africa
Last Updated Date
Jan 2, 2017
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Sep 16, 1999
Signed : Nov 19, 1999
Invested : Nov 24, 1999
Sector
Mobile Telephony
Industry
Telecommunications and Technology
Department
TMT, Venture Capital & Funds
Project Description
Environmental Review Summary (ERS)
Project Name: African Region: MSICIH
Region: Sub-Saharan Africa
Sector: Telecommunications
Project No: 009692
1. This project involves the installation of a number of small African mobile cellular networks, through a debt and equity investment in Mobile Systems International Cellular Investments Holding ("MSICIH") a holding company with investments primarily in Africa and the Middle East. MSICIH use Global System for Mobile (GSM) technology, which is widely used throughout Europe, Africa, the Middle East and Asia.
2. The Company plans to invite minority partners (both local and foreign) to co-invest in primarily "Greenfield" cellular projects and expansions of existing cellular companies. Each of the cellular investments held by MSICIH is in the form of a separate sub-holding company, which allows increased flexibility for management purposes and ownership transfer. Most of the sub-holding companies have local partners, which facilitates local management at all levels through training and knowledge transfer. IFC has already made two investments in two of MSICIH’ sub-holding companies Zamcell, Zambia and Celtel, Uganda.
3. Currently, MSICIH has investments in 4 cellular operations: 3 in strategic countries (Uganda, Zambia and Egypt) and 1 in the non-strategic economy of Hong Kong. In addition, the Company has recently won five licenses, through competitive bidding, in Chad, Congo Brazzaville, Gabon, Malawi and Sierra Leone; operations have not yet begun in these countries. The Company has bid or will likely bid for licenses in South Africa, Democratic Republic of Congo, Angola and Kenya, among other countries. MSICIH is also engaged in a process of aligning its assets with its long-term strategic growth axis. On this basis the Company is considering divesting certain assets in order to concentrate on the core region of Africa and Middle East and its core philosophy of taking majority stakes (or at least management control) in its sub-holding operating companies.
4. 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 the project consisted of appraising technical and environmental information submitted by the project sponsor, and a technical appraisal and site review completed by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed:
· corporate environmental and social management system development;
· compliance of future projects with local requirements and World Bank policies and guidelines;
· environmental and social performance of MSICIH’s existing holdings;
· right-of-way alignment;
· land acquisition (including physical or economic displacement of people);
· access road construction;
· development of previously undisturbed land;
· tower site and base station selection and construction;
· Use and storage of hazardous materials (including PCBs and CFCs);
· solid and liquid waste treatment and disposal;
· fire prevention and emergency response, and
· worker safety including exposure to excessive noise.
The information provided by MSICIH about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.
5. MSICIH is undergoing rapid growth with network installation and operational development being extended to a range of African countries during the next twelve months. The rate of expansion anticipated would begin to put pressure on the ‘matrix management’ concept developed by MSICIH, where central technical resources are used to support the management and technical capacity of local expatriat recruits who will operate in country and head up each country’s operations. MSICIH must therefore begin to plan for the development of centralized management systems including the need to consolidate the Environment, Health and Safety activities of the company under one central management function with direct reporting from each subsidiary company.
6. MSICIH has previously undertaken to ensure that all companies within the group carry out its business and operations in compliance with World Bank Group Environmental and Social Policies and Environmental Health and Safety Guidelines. IFC’s investments in Zamcell and Celtel both operate in a manner which meets MSICIH’s obligations in this regard. MSICIH has also undertaken to design, build and operate future expansions or extensions of current projects in compliance with all pertinent national legislation and local standards, as well as IFC policies and guidelines;
7. MSICIH will develop a preliminary Environmental and Social Management Action Plan for IFC which describes the following: an environmental policy statement; how MSICIH will begin to build staff capacity to address for environmental/health and safety/social issues; identify an existing staff member or appoint a senior level director who will report to the Chief Operating Officer of MSICIH on environmental and social issues and who will coordinate these functions across the organization and interface directly with IFC on a regular basis, (the individual should possess a good understanding of these issues and may receive additional training from IFC staff on relevant environment and social issues); key environmental/health and safety/social functions performed by staff at the center as well as in each operational subsidiary and responsibilities for implementation, training and awareness; a procedure which establishes the manner in which all MSICIH majority owned or managed companies will implement IFC’s Environment and Social Policies and Guidelines including appropriate due diligence when MSICIH enters into partnership agreements or makes investments in local companies; the mechanism whereby MSICIH will monitor compliance with IFC Environmental and Social Policies and Guidelines now and in the future; the reporting requirements which all parts of the MSICIH organization will be required to adopt in order for the central management function to provide an annual monitoring report to IFC in fulfillment of its obligations. An example of a satisfactory Environmental and Social Management Action Plan has been delivered to MSICIH.
8. MSICIH will also submit to IFC for approval a Fire and Life Safety Review which will include recommendations for the installation of fire extinguishers and alarms, implementation of procedures for fire prevention and safety, as well as the proper use of emergency equipment and the provision of regular fire drills.
9. Cellular site installations will, in the main, be located within major cities and towns. The company will use two types of installations, rooftop and green field. Roof top installations will be utilized as much as possible to minimize the effect of construction and the requirements for higher antennas. Roof top installations will consist of shelter for equipment and small antenna masts for the mounting of antennas. MSICIH has given an assurance that green field site installations will not traverse sensitive areas (e.g., forest, wetlands, national parks etc.). All cell sites will be accessible from existing roads. This type of installation requires the acquisition or lease of real estate, approximately an area of 40ftx40ft2 depending on the size of towers and equipment shelter. Land acquisition or lease for the green field site installations will be undertaken through a local real estate agent or through direct negotiations, but always on a willing buyer/ willing seller basis. Wherever practicable, MSICIH will “piggy back’ on the development of sites which already have existing installations.
10. MSICIH is committed to undertake and provide IFC with details of future land acquisitions and to comply with World Bank policies and guidelines in all current and future land acquisitions. In the unlikely event that activities will cause the physical or economic displacement of people, the Company will consult with the IFC, and, as appropriate, submit a plan for relocation. The substance of the Resettlement Action Plan will comply with applicable World Bank Group policies and procedures.
11. Solid and liquid waste generated as part of network installation and operations are limited and will be disposed of in accordance with local regulations. No hazardous solid or liquid will be generated.
12. Any existing equipment containing PCBs will be phased out according to World Bank Environment, Health and Safety Guidelines – Telecommunications. MSICIH will only use authorized contractors to undertake this work and will ensure that disposal is carried out in compliance with relevant legislation and or industry best practice guidance. Processes, equipment and central cooling systems involving the use or potential release to the environment of chlorofluorocarbons ( CFC’s including Halon), will not be installed, and their use in existing processes and systems will be phased out and disposed of in a manner consistent with the requirements of the host country and or best industry practice. Alternative options for HCFC 22 or R-22 include Suva 9000 (R407C) and 9100 (R410A). Generators used for back-up power supply (diesel or propane) will be installed with sound attenuation enclosures. Fuel storage tanks will be equipped with secondary containment, and will comply with U.K. standards and EPA regulations.
13. All facilities will be equipped with fire protection devices including fire extinguishers. Mobile switching centers will be equipped with an automatic fire suppression system. Additionally, site installations and headquarters will be equipped with first aid kits and safety equipment (e.g., goggles, protective headgear, gloves, safety climbing equipment etc.).
14. The company will provide comprehensive employee training on environmental, health and safety issues. All employees will be provided with the necessary safety training in proper work procedures and equipment handling methods. The company has committed to providing IFC with a Fire and Life Safety Review. The company has also committed to designate a person to oversee environmental, health and safety matters.
15. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that MSICIH proposed project would meet World Bank environmental, health and safety policies and guidelines and host country requirements.
16. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by MSICIH and by conducting periodic supervision.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
