Myingyan. Borrower: Sembcorp Utilities PT E LT D

Transcription

1 Quick Gla nce IFC # Borrower: Sembcorp Utilities PT E LT D Count ry: Myanmar POT ENT IAL HUMAN RIGHT S IMPACT S Labor Right s Right to Food Right to Health Right to Housing and Property Right t o Livelihood Right to Water Right to a Healthy Environment PROJECT SECT OR(S) Energy Board Decision Dat e: Project St at us: Approved Last EWS Updat e: EWS Publicat ion Dat e: LOCAL PROJECT INFORMAT ION IFC Name: Aung Lwin Oo Address: mailt o:alo.mdy70@gmail.com AIIB Chuanzhi Su (csu@aiib.org) SEMBCORP Aleve Co (Ms) Senior Manager, Group Corporat e Relat ions DID: aleve.co@sembcorp.com Page 1

2 Pro je ct Summa ry ***T he f ollowing Early Warning Syst em alert was init ially published in January 2016 when IFC proposed f unding. In Sept ember 2016, mere days bef ore it s board would consider the project, the newly formed Asian Infrastructure Investment Bank announced that it was considering co-financing the project. T his alert has been updat ed accordingly. T he f ollowing Early Warning Syst em Alert has been prepared in part nership wit h t he NGO Forum on ADB, an Asian-led net work of civil societ y organizations, based in Asia and the Pacific region who monitor the Asian Inf rast ruct ure Invest ment Bank and t he Asian Development Bank.*** Risk Assessment: Category A. T his project is co-financed by the Asian Infrastructure Invest ment Bank, Int ernat ional Finance Corporat ion (IFC), and t he Asian Development Bank (ADB). As t his is co-f inanced, t he AIIB will apply IFC's environment al and social standards and policies. T he IFC classifies the Project as a Category A project because it is a large, complex project wit h correspondingly signif icant risks and impact s on t he environment. According t o t he IFC s environment al and social review procedure, this project has been classified as Category A due to concerns about expansion of indust rial act ivit ies in t his rural area including cumulat ive impact s t o air quality influx of migrant construction labor, and the related community health and safety risks; and potential relocation of approximately 5 to 10 families of settlers without land titles or legal claims along the river water pipeline right of way. Project type: Gas, T hermal Power Generation Project Summary: Potentially the first of the Asian Investment Infrastructure Bank's (AIIB) investments in the Mekong region, the project is an investment to build, own and operate a greenfield 225 MW Combined Cycle Gas T urbine (CCGT ) power plant in t he Mandalay region of Myanmar. In addit ion t o IFC, ADB, and pot ent ially AIIB funding, A consortium of Sembcorp Utilities Pte. Ltd and MMID Utilities Pte. Ltd will develop and operate the project. T he Project includes the construction and operation of the following facilities: - 225MW Combined Cycle Gas T urbine Power Plant; - Gas Supply Pipeline; - 230kV Overhead T ransmission Line; and - Water Supply Pipeline, Wastewater Discharge Pipeline and Water Intake Pumping Station. Project documents state that construction will begin in the first quarter of 2016, with an aim to open the project facilities for operation by the first quarter of Location: T he project is located in T aungtha, a township of the District in Page 2

3 Pro je ct Summa ry (co nt inue d ) t he Mandalay Divison of cent ral Myanmar. T he power plant will occupy about 11.6 hect ares, which will be sit uat ed wit hin a 280 hect are government-owned and operat ed steel mill site ( Steel Mill No.4). Resources needed: 8 hectares of land acquired for a 12 kilometer cooling water supply line and 3 kilometer overhead power transmission line, affecting 8 to 10 families without legal claims whose homes and small businesses may be physically displaced Project Number: Page 3

4 Pro je ct Fina ncing Bank financing: IFC. T his project is also co-financed by the Asian Development Bank ( ). As of September 2016, the new China-led Asian Infrastructure Investment Bank is also considering invest ment in t his project, which will be co-f inanced wit h IFC and ADB. Client: Semcorp Utilities Pte. Ltd. T he Project has been developed by a consortium of Sembcorp Utilities Pte. Ltd. (Singapore) and MMID Utilities Pte. Ltd. (Singapore, majorit y owned by Myanmar invest ors) under a special purpose vehicle named Sembcorp Power Company Limit ed which has been est ablished in Myanmar f or t he sole purpose of developing and operating the Project. Amount of bank loan or investment: IFC - $40 million. AIIB - $20 million. T otal project cost: $304 million Page 4

5 Ana lysis o f Pro je ct APPLICABLE SOCIAL & ENVIRONMENT AL ST ANDARDS Based on IFC document s, t he f ollowing environment al and social saf eguard policies are triggered: PS 1 Assessment and Management of Environment al and Social Risks and Impact s - triggered due to construction effects identified by project documents, including: air quality impacts, surface water quality, noise during site preparation, as well as increased traffic in access roads; soil and groundwater from potential leaks and spills of oil, lubricant s, or f uel f rom heavy equipment; const ruct ion wast e management; and community health and safety impacts due to increased traffic and influx of construction workers. Operational effects identified by project document s include: impact s t o air qualit y (mainly [nit rogen oxide] emissions); surface water quality due from domestic wastewater discharge; noise associated with the operation of the power plant; generation of various types of non-hazardous and hazardous wast es f rom plant [operat ions & maint enance] act ivit ies; and communit y health and safety in the event of a natural gas leak. PS 2 - Labor and Working Conditions - triggered due to the workforce required for the construction and operation of this project. T he average workforce during construction is 600 people, with a peak of 900 people at the height of construction activities. T he expected operational workforce is 48 people. PS 3 - Resource Efficiency and Pollution Prevention - triggered due to issues relat ed t o noise, vibrat ions, dust and wast ewat er emissions, and hazardous wast e generat ion during project const ruct ion and operat ion. Emissions may impact air qualit y in t he project area and surrounding villages. PS 4 Community Health, Safety and Security - triggered due to the risk of accidents for the general public during construction, raw water intake from the Ayeyarwady River, which may impact ot her users of t he river, possible communit y exposure to diseases with the influx of laborers, the possibility of emergencies such as a fire or explosion due to the use of natural gas at the proposed project site, and the deployment of unarmed security personnel at the project site. PS 5 Land Acquisition and Involuntary Resettlement - triggered because land acquisit ion f or t he approximat e [12 kilomet er] cooling wat er supply line and t he approximat e [3 kilomet er] overhead power t ransmission line...will be managed by the Myanma Electric Power Enterprise (MEPE) and will involve an area of about 8 [hectares]. Additionally, approximately 8 to 10 families of settlers without land t it les or legal claims occupying t he irrigat ion canal [right-of-way] will be affected with the potential effects including physical displacement of small businesses (i.e t ea shop or f ood st ores), homes, and removal of small plant at ions of fruit trees. OUR RISK ASSESSMENT Page 5

6 Ana lysis o f Pro je ct (co nt inue d ) Based on the IFC s project documents, this project poses potential risks to the f ollowing human right s: Right to Property & Adequate Housing According t o t he Asian Development Bank s Reset t lement Framework, t he project sit e is located within a larger site that economically displaced about 130 villagers f rom t he Sa Khar, Hnan Hwa, and Hpet T aw villages, in a Government-led land acquisition process from T he larger 280 hectare site is fenced. However, as of 2015, it was observed t hat f ences were opened in some 2 places by the villagers from Sa Khar to use the site for informal fire wood collection and cattle grazing. T he Asian Development Bank s Resettlement Framework states that in addition to land informally used for agriculture, there are approximately 8 to 10 families of settlers without land titles or legal claims with the potential ef f ect s including physical and economic displacement of small businesses (i.e t ea shop or food stores) and residences. Right to Livelihood T he physical displacement of small businesses due to land acquisition for the water supply and overhead power transmission line may impact the right to livelihood for the 8-10 families living in the project area. Additionally, according the IFC s Social Impact Assessment, agricult ure is t he main source of income f or local villagers, and much of the pipeline route typically forms a part of a large plot of land used for seasonal crop production. T o the extent that people rely on the crops and fruit trees that will be removed during project construction as a source of livelihood, that right may be impacted. Right to Food T o the extent that local villagers use the land along the water pipeline to grow crops for their households, the right to food may be impacted when this land is acquired by the project. Right to Water Without adequate safeguards, there is a risk that hazardous waste generated by the project may contaminate surrounding groundwater and surface water sources used by local villagers for consumption and household activities. Right to a Healthy Environment Const ruct ion is expect ed t o creat e 27, t onnes carbon dioxide-equivalent, and operation of the combine cycle gas turbine will emit approximately 731,000 tonnes carbon dioxide-equivalent annually. According t o project document s, t he const ruct ion activities with the most significant potential air quality impact is fugitive dust emissions from the power plant site. During the operational phase, the most significant air quality impact is power plant stack emissions due to combustion of Page 6

7 Ana lysis o f Pro je ct (co nt inue d ) natural gas. Air quality is already degraded in the project area due to the adjacent presence of an operat ing st eel mill also undergoing const ruct ion and an operat ing nat ural gas f ired reciprocat ing engine power plan. Levels of nit rogen oxide and particulate matter are already high, and [c]onstruction activities will temporarily contribute to increased levels of dust. - Of the anticipated sources of wastewater discharges and runoff, the most significant by volume is considered to be sanitary wastewater which will be generated at an estimated rate of 48,000 liter/day. T he most significant source of emissions during t he operat ional phase will be t he power plant s closed circuit cooling syst ems blowdown which will generat e approximat ely 70.5 m3/hr of cooling wat er discharge, followed by sanitary wastewater from operations (from an estimated workf orce of 48 employees). - T he project documents identify four noise sensitive receivers that may be affected by the use of powered mechanical equipment, as well as other construction and operat ion noise sources: a permanent st eel mill const ruct ion worker (EPC) accommodation in T aung T ha T ownship (approximately 1890 m to the south of the project site); a monastery and pagoda in T aung T ha T ownship (approximately 2400 m to the south); Hnan Ywa Village in T aung T ha T ownship (approximately 1960 m to the south-east); and Sa Ka Village in T ownship (approximately 980 m to the north-east). Vibrations also may damage community infrastructure. - Hazardous waste materials potentially generated during the construction and operat ional phase include: used paint, engine oils, hydraulic f luids, spent solvents, spent batteries, and other potentially hazardous materials generated from const ruct ion equipment maint enance and repair. Hazardous mat erials will also be st ored on sit e, including: liquid f uel (diesel), gas cylinders, hydrochloric acid, sulf uric acid, caust ic soda, sodium hypochlorit e/chlorine, solvent s, lubricat ing oils, t ransf ormer oil and ot her chemicals. Right to Health T he influx of construction workers and in-migration may introduce and increase the spread of communicable and sexually transmitted diseases. According to the Environment al and Social Impact Assessment, Myanmar has one of t he highest rat es of HIV/ AIDS inf ect ion in Sout heast Asia, which increases t he risk of HIV/ AIDS being transmitted. T uberculosis is also prevalent in the villages surrounding the project area. Addit ionally, heavy rainf all during t he wet season in Myanmar may create vector habitats where construction activities create trenches and other areas of standing water. As a result, project activities may contribute to an increase in vect or borne diseases, wit h malaria being a not able risk. According t o project documents, the populations most likely impacted by community health risks are: Sa Khar, Hnan Ywa and T ha Pyay T har villages and the steel mill workers. - According to project documents, safety-related issues include: traffic accidents, community member injuries due to the presence of new infrastructure, and hazardous material and waste management. Page 7

8 Ana lysis o f Pro je ct (co nt inue d ) Labor Rights During t he const ruct ion process, t he const ruct ion workers who will be on t he project sit e may be at risk f or injuries and illnesses. T uberculosis, vect or-borne diseases like malaria, and sexually t ransmit t ed diseases such as HIV/AIDS are of part icular concern. According t o t he Social Impact Assessment, t he client will implement a communit y healt h management plan and an occupat ional healt h and saf et y plan in consult at ion wit h relevant st akeholders (e.g. local healt h pract it ioners) to ensure that worker illnesses and injuries are handled properly. Page 8

9 R e so urce s & Oppo rt unit ie s t o Pre ve nt Ha rm CONSULT AT IONS Wit h respect t o AIIB f unding, civil societ y groups, such as NGO Forum on ADB, have raised concerns over the fact that this project was publicly disclosed for AIIB funding several days before board consideration. T he disclosure practices for this project also circumvent ot her disclosure requirement s of co-f inanciers, such as t he ADB requirement for 120 days notice before board approval for high risk Category A projects. NGO Forum on ADB has also raised issues with this project going forward where the AIIB has yet to approve an energy policy. T he available IFC documents provide information about existing and planned consultations. IFC documents state that, as part of the Environmental and Social Impact Assessment process, t hree rounds of local st akeholder consult at ions were conducted from June to September T he purpose of the first round was to disclose project information and gather stakeholder feedback, while the purpose of the next two rounds were to provide updates on issues raised previously, t o present t he out comes of t he impact assessment process, including management measures, and to gather stakeholder feedback. According to IFC - Villages and Consultation Dates (2015) were: Sa Khar July 18, 2015; August 19; Sept ember 4 Hnan Ywa July 16, 2015; August 19; Sept ember 4 Hpet T aw July 17, 2015; August 19; September 3 Nyaung Kan July 17, 2015; August 19; Sept ember 5 Gyoke Pin July 19, 2015; August 18; Sept ember 5 T hien Ywa July 18, 2015; August 18; Sept ember 5 T ha Pyay T har July 19, 2015; August 18; September 2 IFC documents note that the main concerns brought up during these consultations were: employment, availability and quality of surface and ground water, access to elect ricit y, air emissions and healt h implicat ions, and noise. Villagers in Sa Khar were particularly concerned because heat generated from the adjacent steel mill killed their crops and made their land inviable. According to project documents, [t]his concern has been fed into the design of the Project - due to the height of the stacks on site it is not anticipated that there will be any significant heat discharged and noise management measures will be put in place. T he following three villages will also be engaged moving forward: Ayea, Hla Nuang T ang, and Kaing T aung. According to the Stakeholder Engagement document, during const ruct ion villagers will receive mont hly progress updat es via inf ormat ion distributed to the village tract leaders and/ or the relevant committee representative ; quarterly progress updates via a face-to-face meeting ; and, as required, villagers will give input on relevant management plans and receive Page 9

10 R e so urce s & Oppo rt unit ie s t o Pre ve nt Ha rm (co nt inue d ) notification in advance of undertaking noisy activities and transportation of heavy machinery. PUBLIC INFORMAT ION AND DISCLOSURE POLICY OF AIIB As noted above, this project was disclosed by AIIB several days before the board considered t he project. Groups, such as NGO Forum on ADB, have raised alarm over t he adequacy of notice and consultation on the part of AIIB. Based on AIIB s Public Information Interim Policy, the public has the right to access information. Such inf ormat ion on AIIB s policies and decision-making det ermines t he public s part icipat ion and ult imat ely on environment al and social sust ainabilit y and safeguards. Project information requests may be made to the AIIB at: project s@aiib.org. PROJECT -LEVEL GRIEVANCE MECHANISMS According t o IFC document s, t he borrowing client, Sembcorp, will creat e a project-level grievance mechanism in order t o engage wit h communit y members. Addit ionally, t he IFC s St akeholder Engagement document st at es t hat [a] variet y of met hods will be available t hrough which st akeholders can lodge grievances. T his will include: Face-to-face meetings with the member of the committee, the [community liaison of f icer] or ot her relevant Project represent at ive; Writ t en communicat ion (e.g. , letter) directed to a committee member, a [community liaison officer] or ot her relevant Project represent at ive or lef t in a f eedback box, which will be located in each village and at the and T aung T har GAD offices. Villagers may choose to speak to their village tract leader or committee representative to help facilitate a written complaint; and T elephone call placed to a committee member, the [communit y liaison of f icer] or ot her relevant Project represent at ive. IFC COMPLIANCE ADVISOR/OMBUDSMAN T he Compliance Advisor Ombudsman (CAO) is t he independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC-financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the CAO and how to file a complaint at ht t p:// AIIB OVERSIGHT MECHANISM In addit ion, t he AIIB has a Bank Oversight Mechanism. According t o AIIB s policies, people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank s oversight mechanism in accordance wit h t he policies and procedures t o be established by the Bank for such mechanism. However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be. Page 10

11 R e so urce s & Oppo rt unit ie s t o Pre ve nt Ha rm (co nt inue d ) IFC documents for this project can be found here: ht t p://if cext.if c.org/ifcext/spiwebsit e1.nsf/78e3b305216f cdba85257a8b d/f 042d702800cf f d785257ec2006cd21a? opendocument AIIB documents for this project can be found here: ht t p:// ile/2016/0922/ pdf Page 11

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