This is a Category B project as per IFC’s Policy on Environmental and Social Sustainability (2012) as the use of proceeds is limited to investments in assets that do not involve significant E&S risks.

The project presents several environmental and social risks that require careful consideration. Involuntary resettlement is a notable concern, as the planned access route will displace informal structures located on government land. While the resettlement process has not yet commenced, it involves physical displacement, and the government has offered alternative land plots to affected individuals. This situation underscores the importance of ensuring adequate consultation and compensation to avoid adverse impacts on affected parties. Additionally, the project is exposed to medium contextual risk, influenced by factors such as government instability, human trafficking, illicit trade, labor supply chain risks, and representational politics. These risks highlight the need for robust governance and supply chain management practices to mitigate potential vulnerabilities. Gender-based violence and harassment also pose a medium risk, particularly given that there would be workers who will be housed in the project area. Although the company adheres to relevant international conventions and maintains a zero-tolerance policy, gaps in risk assessment and record-keeping could exacerbate challenges related to workplace safety and gender equity. Community health and safety risks are evident, particularly concerning life and fire safety standards for new retail stores, which require alignment with good international industry practices. While the project is not expected to significantly impact biodiversity, cultural heritage, or ecosystem services, the medium risk of extreme heat due to climate change could result to water scarcity in the future. The reliance on an external EPC contractor for construction and operations further emphasizes the need for stringent oversight to ensure compliance with environmental and social standards. Overall, the project’s environmental and social risk profile necessitates proactive management to address resettlement, contextual risks, gender-based violence, community safety, and climate-related challenges effectively.