TCBuen

Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.

Project number	28479
Country	Colombia
Sector	Transportation and Warehousing
Department	Infrastructure
Company name	Terminal De Contenedores De Buenaventura
Environmental category	A
Status	Pend PDS-IR

Date ESRS disclosed	October 5, 2009

View Summary of Proposed Investment (SPI), click here

Overview

Category & Applicable Standards

Key Issues & Mitigation

Community Engagements

Availability of Full Documentation

Overview of IFC's scope of review

IFC’s appraisal of this project consisted of a review of environmental, social, health and safety (ESHS) information provided by Sociedad Portuaria Terminal de Contenedores de Buenaventura S.A. (TCBuen) and a site visit to the Company’s facilities and project-related sites in the port City of Buenaventura, Valle del Cauca, Colombia, from June 30 to July 2, 2009. Meetings were held with TCBuen’s management and ESHS staff. Additional interviews and meetings were conducted with the Construction Contractor, workers, leaders of surrounding communities, families being resettled, local fishermen, the Director of the regional governmental environmental agency (CVC), the independent ESHS consultant (ERM), and the independent Construction Supervisor.

IFC’s appraisal reviewed the effectiveness of the Company’s ESHS and labor management activities and the ability of the organization to ensure compliance with Colombian regulatory requirements and IFC’s Performance Standards during construction and operation of the Terminal. Specific items reviewed include: (a) existing Environmental Impact Assessments (EIAs), related Studies and Reports, and corresponding Environmental and Social Management Plans (ESMPs) as currently approved by the local environmental authorities (b) human resources policies and management of the Company, its contractors and subcontractors; (c) ESHS performance during construction, (d) ESHS due diligence and monitoring by independent consultant, and (e) supplemental studies and management plans developed by TCBuen.

Project description

The Project involves the construction of a new international container terminal (the “Terminal”) in the Port City of Buenaventura, Colombia’s second largest port. The Port City is located in the Pacific coast and accounts for about 42% of the containerized cargo received in Colombia each year. The Terminal will be located in Buenaventura’s urban area, 2.4 kilometers away from the existing terminal of Sociedad Portuaria Regional de Buenaventura. The new Terminal will affect an area of 27 hectares and includes a 490-m dock with associated deepening of the access channel and creation of a turning basin. Construction has been in progress since August 2008, with expected completion by the end of 2010. The Project will involve the development, engineering, construction, dredging, equipment purchases, and operation of the terminal. Once completed, the Terminal is expected to provide approximately 268,000 twenty foot equivalent units (“TEUs”) in operational capacity and will only handle containers. TCBuen will not handle or store hydrocarbons or bulk cargo such as coal or grains.

Key environmental and social issues and mitigation

Environment, health and safety, and social development are at the core of TCBuen management’s vision and mission. The Company has identified the project’s potential environmental and social impacts and has in place plans and procedures, as well as a team of professionals, to manage them. Relevant management plans have been further expanded with IFC’s guidance and complementary measures have been agreed upon with the Company to ensure that once implemented the project will comply with the host country environmental and social laws and regulations and IFC’s Social and Environmental Performance Standards. The information about how these potential impacts will be addressed by TCBuen is summarized in the paragraphs that follow.

>> PS1: Social and Environmental Assessment and Management Systems

Environmental and Social Assessment: The national environmental authority (the Ministry of Environment, Housing, and Territorial Development or MAVDT) awarded the project Environmental License in April 2006 based on a comprehensive Environmental and Social Impact Assessment (ESIA) prepared by Hidrocaribe Ltda on behalf of the Company following applicable Colombian requirements. As part of the ESIA process the Company commissioned baseline and assessment studies, including: biodiversity and hydro-biological report (including mammals, birds, reptiles, fish species, plankton, phytoplankton, zooplankton, and benthic communities among others); water, noise and air quality report; soils and sediments study; geotechnical study; and hydrology and oceanography report. Subsequently, due to changes in the initial project design, a series of additional studies were conducted, including an Environmental Assessment for Dredging and Disposal Alternatives that was prepared in 2007 by Corporaci�n BioParque. An Environmental License Modification for the project was approved in 2008 by the MAVDT. The initial scope of the ESIA and complementary studies included potential impacts related to storage and handling of liquid (hydrocarbons) and bulk (coal and grains) cargo; however TCBuen subsequently decided that the Terminal will only store and handle containers.

The project’s location and the ESIA took into consideration multiple regional environmental assessments, alternative analysis, and territorial planning studies commissioned by the Colombian Government since 1989 to plan for the development of new terminals in Buenaventura. The ESIA also analyzed various ESIAs prepared for future developments around Buenaventura, including other terminals and roads.

Management Program: The Company is implementing an Environmental, Social, Health and Safety Management Program (ESHS-MP) designed based on the ESIA, ISO 14001 and Colombian HS requirements. The ESHS-MP includes the following management plans for the construction phase: (i) social and environmental management - construction; (ii) training; (iii) mangrove and ecologic restoration; (iv) protection of terrestrial fauna; (v) aquatic ecosystems; (vi) hydro biological resources; (vii) water quality; (viii) solid waste management and recycling; (ix) liquid waste management; (x) construction materials; (xi) sustainable use of natural resources; (xii) air and noise pollution control; (xiii) dredging and dredge disposal; (xiv) construction camp installation and decommissioning; (xv) fuel storage and handling; (xvi) occupational health and safety; (xvii) local work management; (xviii) landscape design; and (xix) consultation and community engagement.

Similar management plans are in place for the project’s operational phase, and includes additional plans such as: (i) social and environmental management - operation; (ii) cargo storage and handling; (iii) hazardous materials storage and handling framework; and (iv) machinery and equipment operation. As condition of IFC investment, once construction works are completed TCBuen will implement an ESHS Management System based on ISO 14001 and Colombian HS requirements to manage its operations.

The Construction Contractor (Constructora Colpatria S.A.) has in place a corporate ESHS Management System (ESHS-MS) based on ISO 14001 and Colombian HS requirements. The Construction Contractor has developed and implements, directly and through its subcontractors, detailed ESHS Implementation Management Plans and Procedures based on ESIA requirements. Similarly, the Dredging Contractor (Codralux S.A. - Jan de Nul Group) follows its corporate ESHS policies and procedures as well as project-specific Dredging and Dredge Disposal EHS Management Plan and Contingency Plan.

Organization: The Company has retained the services of an experienced local consultancy firm (AG Consultoria Ambiental) to act as TCBuen’s ESHS Department during the construction phase. This Department is led by an EHS Specialist who is supported by 6 full-time professionals: 1 forestry engineer, 1 environmental engineer, 1 health and safety technician, 1 social worker, 1biologist, and 1 fisheries technician. TCBuen relies on the support from other local consultants to conduct specialized studies and on per needed basis. TCBuen’s ESHS Department supervises and works in close coordination with the Construction Contractor’s ESHS Team that is composed of a Sr. Environmental Engineer and 6 full-time professionals: 1 environmental technician, 4 H&S technicians and 1 social worker. The Dredging Contractor also has full-time staff in charge of ESHS supervision and compliance. Additionally, the Independent Construction Supervisor (Auditor de Obra) includes an ESHS supervision team in charge of monitoring the Contractor’s ESHS performance. As condition of IFC’s investment, once the construction phase is completed, TCBuen will set up an ESHS Department to manage the Terminal’s operations.

Training: As part of its ESHS-MP TCBuen has developed ESHS training programs for its own personnel and also ensures that the Construction Contractor, the Dredging Contractor, and all subcontractors provide adequate training to assure that all workers have the skills to perform their activities in a safe, healthy and environmentally responsible manner. All workers receive an orientation on ESHS issues prior to starting work and job-specific training of provided to those in special type of activities. As part of the ESHS-MS for the Terminal’s operation TCBuen will include annual ESHS training plans for all its employees.

Monitoring and reporting: TCBuen’s ESIA defined the environmental pre-construction baseline for its area of influence which is used as a reference to assess the results of the Environmental Monitoring Program (EMP). Current monitoring activities at TCBuen include: water, air and noise, hydro-biological monitoring (terrestrial and marine flora and fauna), and monitoring activities linked to dredging activities. TCBuen is continuously supervised by the MAVT and is required to submit quarterly compliance reports. The Construction and Dredging contractors’ environmental performance is also monitored continuously by the Independent Construction Supervision firm on behalf of TCBuen. Additionally, since 2008, an internationally recognized environmental consultancy firm (ERM) conducts quarterly monitoring visits to TCBuen to ensure compliance with IFC’s Performance Standards on behalf of an Equator Principles Bank that participates in the project. TCBuen produces regular internal reports of ESHS performance which are submitted to management for review.
>> PS2: Labor and Working Conditions
Human Resource Policy and Management: TCBuen gives priority to hiring local people when skills match available jobs. As of July 2009 the project employs 497 people of whom 34% come from project-affected communities, 38% from other areas of Buenaventura, and 28% from other regions. During its operation the terminal is expected to generate 530 permanent jobs for mostly local people. The project’s ESHS-MP for construction includes a local work management program. As part of this program the Company and the neighboring communities created a joint Employment Committee that takes part in the selection process of personnel for the construction and operation phases of the Terminal, in order to equally distribute job opportunity among community members. Additionally, local communities are receiving training in order to develop the basic skills to obtain jobs directly and indirectly related to the Terminal.

TCBuen and the Construction and Dredging Contractors have in place Internal Labor Policies –ILP- (Reglamento Interno de Trabajo) consistent with Colombian law and IFC’s PS2 requirements that clearly defines the rights and obligations of employees and the employer, including: compensation and benefits; working hours, overtime and leave policy; occupational health and safety policy; grievance redress procedure; and harassment policy, among others. According to local labor law, all employees must receive copies of their contracts upon being hired. Currently workers are not unionized and it is predicted that the larger work force during construction will not be unionized either due to the temporary nature of their employment, but in compliance with the ILPs and Colombian law, workers are allowed to form or join worker’s organizations and to bargain collectively. Neither TCBuen nor the Contractors engage in child or forced labor.

TCBuen’s ILP includes the formation of a Work Environment Committee (Comit� de Convivencia Laboral) formed by representatives of the employer and the employee that is in charge of fostering a harmonious work environment, monitor any harassment and disciplinary cases and follow-up on any actions required to ensure compliances with local labor laws. TCBuen’s ILP has been posted in the Company’s offices and work sites as is required by the Ministry of Labor. TCBuen requires all its contractors, subcontractors and service providers to comply with local labor laws and has in place a procedure to ensure that all workers (permanent and temporary) working in the project site are affiliated to the Social Security System as required by Colombian law.

Occupational Health and Safety (HS): TCBuen and the Construction and Dredging Contractors have conducted HS risks analysis and have in place comprehensive HS Policies, Programs and Contingency Plans based on Colombian requirements. All personnel are issued appropriate Personal Protective Equipment (PPE) and provided continuous training on its use. Additionally, in compliance with Colombian law, TCBuen has in place an employer-employee committee on health and safety oversight (Comit� Paritario de Salud Ocupacional – COPASO). In accordance to Colombian law, all employees including contractors and their employees are covered by an Occupational Risk Insurance and are required to abide by the Company’s HS guidelines. The Construction and Dredging Contractor’s HS management programs also include project-specific training plans; safety inspection programs; procedures to investigate accidents and define corrective actions; safety performance indicators; different safe work procedures; and work permit system. Additionally, the Dredging Contractor’s HS program includes specific procedures related to work at sea, including compliance with MARPOL and IMO’s Safety of Life at Sea Convention (SOLAS), among other international conventions. The design of the Terminal has taken in consideration health and safety, including fire protection systems and firefighting equipment that will become operational once construction is completed. As mentioned under PS1, for the operational phase TCBuen will implement an ESHS-MS based on Colombian HS requirements.

>> PS3: Pollution Prevention and Abatement
Pollution Prevention: Given the nature of its operation it is not expected that the Terminal will generate significant amounts of gaseous emissions or effluents. Power consumption is expected to be moderate and will be supplied from the national grid, with back-up generators. Greenhouse gas emissions associated with this project will be negligible. The water required for the administrative buildings and limited operational activities will be sourced from the municipal water system.

According to the ESIA, the construction stage will generate short-term impacts of low to moderate magnitude related to noise, particulate matter, and vibration due to the transport of material and machinery operations. Accordingly, the project’s ESHS-MP includes provisions to minimize and mitigate these impacts. Additionally, as mentioned under PS1, TCBuen has in place a comprehensive Environmental Monitoring Program (EMP) for the construction and operation stages which, in conjunction with the Grievance Redress Mechanisms, allows for rapidly identifying any deviations and implementing corrective actions. As a result of the EMP, TCBuen has initiated a number of activities including mechanical inspection of vehicles with an annual vehicle air emission certificate, a preventive maintenance program for all vehicles, and intensified dust control measures, among others.

Liquid Waste Management: The Terminal’s design includes measures and equipment to minimize, segregate and treat wastewater, storm water and runoffs throughout the facilities and particularly in areas such as vehicle maintenance areas. These measures include: wastewater treatment plants, oil/water separators (i.e. corrugated plate interceptors), grease traps, septic tank, etc. Given that the municipal sewage system does not reach the Terminal, TCBuen will build two (2) wastewater treatment plants with a capacity of 16.000 liters per day each that will use anaerobic and slow sands filters. Resulting treated water will be tested periodically for quality and finally discharged into the Bay. During the construction phase portable toilets are being used by the workforce. BAMOCOL is the licensed company that provides this service and discharges the wastewater at the municipal wastewater treatment plant.

During operation, liquid wastes generated by ships (i.e. bilge waste, ballast water, sewage, and used oils) will be managed by third parties that must be licensed, insured to cover potential damages, and have in place environmental management plans. In accordance with MARPOL guidelines and under the Port Authority (Capitania de Puerto de Buenaventura) supervision, a Pollution Auditor will be present during these operations. TCBuen will require these third parties to dispose of all waste in accordance with municipal requirements at designated sites.

Solid Waste Management: TCBuen has in place an Integrated Solid Waste Management Plan (ISWMP) for construction and operation of the Terminal. This plan includes an analysis of potential sources of solid wastes and defines procedures for its handling, storage, segregation, recycling, transportation, and final disposal. General solid wastes are collected by a licensed third party (Buenaventura Medio Ambiente SA ESP). Special procedures are in place to manage hazardous wastes such as spent solvents, and oily rags, empty paint cans, chemical containers; and used lubricating oils which are also disposed of by a specialized waste disposal company. The ISWMP includes the “Reciclando Ando Program” aimed at promoting environmental education and recycling activities in the 5 neighborhoods in the project’s area of influence, including possible income generation activities linked to recycling.

Dredging: The deepening of the 2.4 km access channel to TCBuen and the creation of a turning basin with a radius of 350 mts in front of the Terminal’s docking area will require the dredging and disposal of approximately 5.2 million mts3 of hard and soft material. Dredging activities started on July 2009 and are expected to be completed by June 2010.

According to soils tests conducted by Proinsa Ltda on behalf of TCBuen, the materials being disturbed by the project, while polluted by biodegradable organic materials contributed by the sanitary sewage discharges from the City of Buenaventura, do not contain high concentrations of toxic heavy metals or other pollutants that would require special disposal methods. TCBuen conducted an EIA to identify possible dredge spoils disposal sites alternatives in land and open water but the MAVDT directed the Company to use a government approved open water discharge site located 36-km West from the project site which has been used for this purpose in previous dredging activities in the Buenaventura Bay. The depth of the open water disposal site ranges from 20 to 40 mts depth and covers an area of 10 km2. Accuracy of the location of the dredge discharges in the disposal site is monitored via a GPS system installed in the dredgers. The two dredging methods being used (trailing section hopper and cutting/suction dredgers) were selected based on the soil characterization and the dredge heads being used are designed to minimize material dispersion.

TCBuen and the Dredging Contractor have in place a Dredging and Dredge Disposal EHS - Management Plan (DDDEHS-MP) designed following national and international standards and best practices, as well as the following studies:
-“Dispersion model of dredge material discharge for TCBuen’s access channel” by the Colombian Institute of Marine and Coastal Research – INVEMAR (2009)
-“Geological, oceanographic and water quality characterization of TCBuen” by INVEMAR (2007)
-“EIA of dredge spoils disposal alternatives for TCBuen” by Corporaci�n Bioparque (2007).
-“Hydrodynamic and sedimentology analysis of the Estero Aguacate and TCBuen’s access channel” (2006).
-“Soil studies” by JLB. Ingenier�a Geot�cnica y Geof�sica (2004).

The DDDEHS-MP includes the following components: oil and fuel management, waste management, training, and emergency preparedness and response procedures. Additionally, TCBuen has in place a Dredging and Dredge Disposal Monitoring Program, as required by the Project’s Environmental License Modification, covering the dredged areas, disposal site, and potentially sensitive areas in adjacent areas. The Monitoring Program includes, among other, the following components: water quality (i.e. sediment suspension and dispersion in the water column), biotic monitoring (metals bioaccumulation); protection and conservation of marine habitats. The Buenaventura’s Port Authority conducts weekly meetings with the Company, the Dredging Contractor and the CVC to monitor the EHS performance of the dredging activities and commissions professional auditors to monitor in situ EHS compliance with environmental requirements and MARPOL-SOLAS code.

Management of Hazardous Materials (Hazmats): TCBuen and its contractors have in place clear procedures for the storage, handling and final disposal of hazmats during the construction stage. During operation it is expected that handling and storage of hazmats will be only an incidental part of the Terminal’s operations and that a minor fraction of the total cargo handled will be considered hazardous. As condition of IFC’s investment, before starting operations TCBuen will put in place detailed procedures for hazmat handling and storage according with Colombian requirements and the UN Model Regulations and other internationally recognized standards and provisions on this regard. Dangerous cargo will be stored in segregated and access controlled areas of the container yard.

Emergency Preparedness and Response: The Construction and Dredging Contractors have in place project-specific Contingency Plans, including spill prevention and control procedures, as part of their EHS Management Plans. For the operational stage TCBuen has developed a Contingency Framework that defines the content of a detailed Contingency Plan for the Terminal that will be put in place before staring operations. The Framework includes the Company’s policy in regards to emergency preparedness and response, provides an overview of expected risks and scenarios, and defines responsibilities. The Contingency Plan will include detailed emergency response procedures and protocols, drills and training program, spill prevention and control measures, and will be implemented in close coordination with the Local Committee for Disaster Prevention and Response of the Municipality of Buenaventura. The Company will also insure that neighboring communities are informed of the key procedures related to high risk issues.

>> PS4: Community Health, Safety and Security
Community Health & Safety: No significant risks or impacts on community health and safety are expected as result of the Terminal’s construction and operation, and those that were identified during the ESIA have been mitigated through the ESHS-MP and the Contingency Plans described in PS1 and PS3. Even though the Terminal has direct access to the City’s exit road, the primary risk to community health and safety identified is associated with traffic safety, vibration and dust generated by the transport of construction materials, equipment, and workers to and from the Terminal during construction and by an increased volume of truck traffic during the operation phase. In addition to the associated mitigation measures included in the ESHS-MP (i.e. speed limits, dust control, etc) the Company decided to acquire the properties located in close proximity of the Terminal that could be affected (see PS5). Additionally, TCBuen has developed an “Internal/External Traffic Management Plan for Operations” that not only defines the safety features for traffic inside the Terminal, but also a series of measures aimed at minimizing impacts outside the Terminal such as a waiting parking area for trucks outside the City and a scheduling system that will allot specific hours for trucks to pick-up or deliver cargo.

Security Personnel Requirements: During operation TCBuen will engage the services of a private security company certified and supervised by the National Superintendence for Security Companies (Superintendencia de Vigilancia y Seguridad Privada). Personnel from the National Police are also expected to be present at the Terminal. As condition of IFC’s investment, prior to starting operations the Company will develop a Security Forces Management Policy to ensure coordination with the public armed forces and that all security personnel follow specific guidelines based on IFC’s PS4 and good international practices in terms of implementation of code of conduct, training, equipment and monitoring of security personnel.

>> PS5: Land Acquisition and Involuntary Resettlement
Land Acquisition and Resettlement: As mentioned under PS4, between January 2008 and July 2009 the Company acquired a total of 30 properties (27 occupied and 3 vacant), involving approximately 135 individuals, located at the immediate proximity of Terminal’s entrance to avoid potential impacts associated to noise, dust and vibration generated by traffic. Since the properties acquired were located outside of the Terminal’s concession area the Company could not resort to expropriation and all negotiations were conducted on willing-seller/willing-buyer basis, through continuous interactions and the informed participation of the affected families. Most families involved in this process did not have legal titles over their properties and the Company helped in the titling process and offered prices based on replacement cost which allowed most families to relocate in housed located in safer and more consolidated areas of the City with better access to public services and with security of tenure. The valuation process was conducted by an independent party, Lonja de Propiedad Ra�z de Cali y Valle del Cauca, certified by the Colombian Association of Realtors. TCBuen also provided assistance for the purchase and assessment of the new houses to families that requested it. Even though PS5 does not strictly apply to this process given that it was voluntary, given that the families involved in this process are highly vulnerable TCBuen has developed a Land Acquisition and Resettlement Plan (LARP) based on the principles and objectives of PS5. The LARP documents the process conducted to-date, defines a process to monitor the reestablishment of living conditions of the affected families, establishes engagement and grievance redress channels, and defines procedures to develop specific plans in case future land acquisitions are required.

Economic Displacement of Fishermen: The ESIA identified potential negative impacts on the livelihoods of local artisanal fishermen due to project-related dredging activities during construction and the implementation of a permanent safety exclusion zone in the Terminal’s turning basin. On early 2009 TCBuen carried out additional census and socio-economic baseline studies and as a result two (2) main types of affected fishermen were identified: a) permanent fishermen: subsistence catchers who fish daily in the affected area and use artisanal technology and small boats (14 individuals); and b) occasional fishermen: those who perform the activity in the affected area only occasionally in order to complement other income generating activities (38 individuals). All affected individuals are considered poor or extremely poor.

Based on the information collected TCBuen conveyed meetings with affected fishermen to explore mitigation measurement and developed a Fishermen Compensation Plan (FCP) jointly with the affected individuals and the Colombian Agricultural Institute (ICA). This Plan has been further expanded to meet PS5 principles and objectives and includes compensation alternatives aimed at restoring livelihoods and catch/effort ratios, such as: a) new equipment and/or improvement of current technology (boats and nets) plus training to increase catch efficiency and b) job training and assistance to establish new income-generating activities. The FCP includes the following components: social baseline; impacts assessment; eligibility criteria; compensation framework; and monitoring and evaluation activities. TCBuen will secure the services of the National Technical Training Service (SENA) to deliver the job training component. Additionally, affected fishermen will be invited to participate in monitoring activities being conducted by TCBuen in relation to hydrobiology and water quality.

>> PS6: Biodiversity Conservation and Sustainable Natural Resource Management

Protection and Conservation of Biodiversity: The Terminal will affect an area of 27 hectares, of which 14.6 hectares correspond to coastal mangrove characterized for heavy antropic intervention, urban pollution, and biophysical deterioration. The affected area represents only 0.16% of the total mangrove ecosystems in the Buenaventura Bay. In order to approve the project and issue the Environmental License, the Government of Colombia (GoC) had to formally rezone the affected area given that the Colombian Pacific coast was legally designated as a forest reserve in 1959. As a condition of rezoning and project approval the GoC required TCBuen to offset mangrove losses in a 10:1 ratio (i.e., replanting 146 hectares of new mangroves) and aim for a survival rate of 75% of the new plants. Based on previous studies on mangrove ecosystems in the Buenaventura Bay, the regional environmental authority (CVC) identified various alternative areas for replanting that are located 20 kms West from TCBuen. These areas were selected taking into consideration their current level of deterioration and capacity to regenerate, prioritizing those areas where the CVC has ongoing activities aimed at improving the livelihoods of Afro-Colombian communities with collective land rights.

TCBuen has prepared a Mangrove Compensation Plan (MCP) with the following objectives: 1) reforestation of Red Mangrove (Rhizophora Mangle) in areas assigned by the CVC; 2) voluntary and active participation of Afro-Colombian communities settled in those areas in all components of the plan; and 3) promote the sustainable use of the mangrove by these communities. The MCP will be implemented jointly by the CVC, a local NGO on behalf of engaged by TCBuen, and participant Afro-Colombian communities. The Plan encompasses 6 components: 1) in-situ verification of bio-physical conditions, demarcation of boundaries, and site preparation, 2) community consultation; 3) strengthening of community organization; 4) training for community members for mangrove seeds collection and reforestation activities; 5) mangrove planting; and 6) promotion of participatory monitoring of environmental and social performance. The MCP is expected to produce positive social and environmental impacts by improving conditions of coastal natural habitats and increasing access to productive natural resources used by Afro-Colombian communities. The Plan will be executed in 8 months and monitored initially for a period of 3 years that could be expanded depending on the outcomes.

It must be highlighted that the participant Afro-Colombian communities submitted proposals to be considered for the MCP and their participation is voluntary. Taking into account that Afro-Colombian communities with communal land rights like the ones involved in this process are given tribal/indigenous status by the GoC, and even if impacts from the MCP are positive and these communities are not located in the project’s direct area of influence, TCBuen has decided to include a strong community engagement and consultation component in the MCP aligned with the objectives of IFC’s PS7 on Indigenous Peoples aimed at ensuring and documenting the free, prior and informed consultation and participation of the Afro-Colombian communities in a culturally appropriated way.

Client's community engagement

Community Engagement: The City Port of Buenaventura has a population of approximately 325,000 people and is one of the poorest urban centers in Colombia with almost 80% of its population living under the poverty line and an unemployment rate of 29%. The project’s area of influence includes five neighborhoods (Inmaculada, Santa Fe, Miramar, Punta del Este and Santa Cruz) with a combined population of almost 10,000 people. These neighborhoods are “informal” and are among the poorest in Buenaventura with a large portion of its inhabitants lacking access to basic public services.

Although not required by the national authorities, as part of the ESIA process TCBuen conducted comprehensive consultation activities with project affected communities including the Communal Action Boards (Juntas de Acci�n Comunal) of the directly affected neighborhoods, the Local Administration Boards (Juntas Administradoras Locales), the environmental authority of the Valle del Cauca (CVC), and the Foundation for the Integral and Community Development of the Pacific (Fundaci�n para el Desarrollo Integral y Comunitario del Pac�fico). These activities were aimed at ensuring the free, prior and informed consultation of affected communities which has contributed to building a positive image and a transparent relationship with TCBuen.

Consultations were initiated through three informational and consultative workshops in April, May, and June 2005. The first workshop informed community members about the initiation of the ESIA process and invited their participation. The second workshop involved the identification and evaluation of potential project impacts and the disclosure of the environmental baseline. The third workshop was held to define and agree on the measures to be included in the project’s ESHS Management Program and to deliver the draft impact assessment to the communities. During this third meeting an Agreement Act (Acta de Concertaci�n) summarizing the outcomes and commitments of the consultation process was signed between TCBuen and community leaders. Additional formal consultation meetings were held on February and March 2007 to discuss the supplementary ESIA study commissioned by TCBuen in light of changes in project design. Additional engagement activities with communities have been conducted in the framework of the Land Acquisition and Resettlement Plan (See PS5), the Fishermen Compensation Plan (see PS5), and the Mangrove Replanting Plan (see PS6); including the promotion of participatory monitoring activities in the two latter plans.

In accordance to the project’s ESHS-MP the Company has established a community liaison office in the Inmaculada neighborhood. It also maintains constant contact with community leaders and member and conducts quarterly information, consultation, and engagement workshops with surrounding communities. Additionally, TCBuen disseminates information regarding specific activities (i.e. beginning of dredging activities) to affected communities through brochures and radio. TCBuen is also planning on disseminating an annual social responsibility publication to the community and other stakeholders. The Company has prepared a Public Consultation and Community Relations Plan (PCCRP) aligned with IFC’s PS requirements to document the consultation and disclosure process to date and to define activities to ensure ongoing engagement with communities during the life of the project.

Grievance Redress: TCBUEN has developed a grievance redress procedure to receive, register and monitor complaints, claims and suggestion by project-affected people. This procedure is included in the Company’s PCCRP and follows IFC’s PS requirements. All complaints can be lodged at the Company’s Community Liaison Office or through TCBuen’s or the Construction Contractor’s community Relations Officers. The Company monitors the status of each complaint, the relevant area or location, and the date of response and the solution given to the person. Each individual case is evaluated by a committee that meets once a week.

Community Development: In addition to the community development impacts expected from the “Reciclando Ando Program” and the “Mangrove Compensation Plan”, TCBuen also supports various community development initiatives through the Fundaci�n Nuevo Pac�fico (www.fundacionnuevopacifico.org), including: i) Job training: Under an agreement with the National Learning Service (Servicio Nacional de Aprendizaje - SENA) community members receive training in tasks related to the future operation of the Terminal, and ii) SME: The Fundaci�n provides training on small and medium enterprises (SME) start up so that the local community, particularly women, can develop the necessary capacity to become suppliers of the Terminal, and other customers, with products and services such as industrial clothing, laundry, mangrove care, catering, port logistics, foreign trade, information technology and others.

Local access of project documentation

The Environmental License including a description of the Project’s ESHS Management Program and other administrative procedures related to the project have been publicly disclosed by the MAVDT since 2005 via newspapers and its website (http://www.minambiente.gov.co/).

Relevant project information, including the ESIA and key management plans will be available to the public through TCBuen’s website (http://www.tcbuen.com/?page_id=344&lang=es) and community liaison office at La Inmaculada (Calle 7a No. 28 ASN - 21 Calle Divino Ni�o).

For additional information please contact:

Sociedad Portuaria Terminal de Contenedores de Buenaventura S.A.
Gabriel Corrales, Gerente General
Calle 7� No. 3 – 11 Ofic. 903 Edificio Pacific Trade Center
Buenaventura, Colombia
Phone: (57) (2) 24 26500
http://www.tcbuen.com

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