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| WIND |
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| 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 | 27526 |
| Country | Dominican Republic |
| Sector | Information |
| Department | Global Inform. & Comm. Tech. |
| Company name | WIND Telecom S.A. |
| Environmental category | B |
| Status | Pend FAP |
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| Date ESRS disclosed | December 12, 2008 |
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| View Summary of Proposed Investment (SPI), click here |
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| Overview | Category & Applicable Standards | Key Issues & Mitigation | Community Engagements | Client's Documentation |
| Overview of IFC's scope of review |
| The review of this project consisted of appraising technical, environmental and social information submitted by Wind, and a visit by IFC investment staff to the project site to meet with Wind management and to have a first-hand look at operational activities. |
| Project description |
| The project consists of the construction and operation of both a telecommunications network and a television network in Dominican Republic. Wind Telecom S.A. (the “Company” or “Wind”) is a provider of internet, telephony, pay TV and data center services through a mix of technologies including WiMax, point-to-point microwave, fiber optics and MMDS. The company targets residential, corporate and institutional customers. It has begun services in Santo Domingo and Santiago, and plans to expand into smaller cities and rural areas. 10 transmission tower sites have already been built, and through the life of the project close to 200 will be built. |
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| Identified applicable performance standards |
IFC’s environmental and social due diligence indicates that the principal Performance Standards (PSs) to be applied to this investment are:
- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions,
- PS3: Pollution Prevention and Abatement
With respect to PS5, Wind acquires land only through willing seller arrangements.
A condition of IFC’s investment will be that Wind’s operations shall consider all relevant social and environmental risks and impacts, including issues covered in all IFC PSs. |
| Environmental and social categorization and rationale |
| This project involves the development of a telecommunications network and a television network, with construction and maintenance of transmission tower sites. Other physical assets are leased, including office spaces, and two small data centers that consist of several rooms within buildings where other activities are conducted. The key issues associated with the project are environmental, health, safety, and social management; labor and working conditions (including employee and contractor occupational health and safety); and pollution prevention and abatement. The nature of the company’s operations is such that no major adverse environmental or social impacts are expected to result from the project, and that it will be possible to avoid or mitigate any limited adverse impacts that might result. As a result, it has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. |
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| Key environmental and social issues and mitigation |
The proposed project will upon implementation of the specific agreed measures described below comply with applicable standards including host country laws and regulations, IFC Performance Standards, and IFC environmental, health and safety guidelines. Information provided by Wind is summarized as follows:
PS1: Environmental, Health, Safety and Social Management
To manage environmental and social risks and impacts, comply with applicable standards, and as a condition of IFC’s investment, Wind has in place elements of an Environmental and Social Management System (ESMS). The company has policy and procedures that include an environmental assessment process for each potential site. For each site chosen, the company obtains required authorizations, including an environmental permit, and will comply with local environmental codes and IFC Performance Standards. The main sponsor owns a diversified group of businesses in the Dominican Republic, including an apparel company, an airport, and a bank, so this project is able to benefit from the sponsor’s broad experience with environmental and social management. Wind has appointed a manager for Environmental, Health and Safety issues, and has written policies and procedures to manage most relevant functions covered in IFC’s PS1 through PS8. As the project moves forward, any missing policies and procedures will be developed.
Wind is outsourcing construction of new tower sites and security services to reputable companies with high quality management standards. The company will ensure prior disclosure of the development of new tower sites to local communities, as site conditions warrant. Wind will include environmental, health and safety terms in all contracts for its outsourced construction and security services, and will monitor compliance with those terms and require improvement in the event that non-compliance is identified.
The company will not undertake any construction in sensitive areas. It is the first telecom operator in the Dominican Republic to seek out opportunities to share infrastructure with other operators, such as cable networks and transmission tower sites. Rather than purchase sites, the company prefers to negotiate to lease them from landowners. A process is in place for site engineers to document locations of sites and surrounding areas.
PS2: Labor and Working Conditions
The company has developed written documentation of its human resources policy and procedures, and will be adding procedures for handling employee grievances to IFC’s satisfaction. Wind ensures that all of its employees are provided with appropriate personal protective equipment and health and safety training for the type of work in which they are engaged. For all of its operational sites, appropriate measures for life and fire safety will be included.
Wind shall make commercially reasonable efforts to ensure that no contractors’ employee who performs work related to core functions of the company for a substantial duration is below the legal employment age. Wind makes commercially reasonable efforts to ensure that contractors’ employees who perform work related to core functions of the company for a substantial duration are provided a safe and healthy work environment, including appropriate training, protective clothing and equipment. These efforts include inspections and audits by Wind of contractors’ operations against applicable standards, which will include PS2.
PS3: Pollution Prevention and Abatement
The company will oversee work performed by construction contractors to ensure compliance with PS3, and practices addressed by IFC’s Environmental, Health and Safety Guidelines. Wind will construct secondary containment structures around all fuel tanks at all of the company’s sites, each able to contain greater than 100% of the volume of the tank. The company will ensure that all sites comply with the energy conservation standards in IFC’s EHS Guidelines. An energy management program is already in place, with measures to maximize energy efficiency, and to raise awareness among Wind employees. The company will maximize the useful life of materials and recycle as many materials as possible.
At Wind’s two small data centers, procedures will be developed and implemented for both process heating and process cooling. The company is exploring possible opportunities with potential vendors. The company will discuss with IFC the possibility of participating in a pilot IFC effort to both develop new Green Data Centers and improve existing ones. This pilot effort aims to offer donor-funded technical assistance to IFC clients to support best practices in energy efficiency for buildings, equipment, and cooling. As energy costs are substantial for data centers, payback of the incremental capital costs may be possible through operational savings. |
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| Client's community engagement |
| Wind recognizes the importance of community engagement. The company has policy and procedures for consulting with local community members and disclosing to them relevant facts regarding proposed new sites. Wind will submit to IFC written procedures for handling and resolving complaints or grievances received from community members regarding any site. Wind offers free educational services to local schools, as described in IFC’s Summary of Project Information for this project. |
| Local access of project documentation |
Mr. Manuel Bonilla (CEO)
Av. 27 de febrero esq. Calle Isabel Aguiar
Herrera, Santo Domingo, Dominican Republic
Telephone +829.946.3111
Fax +829.946.3329 |
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| Availability of Full Documentation |
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| Information Disclosed |
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