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Environmental & Social Review Summary
This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein that has been prepared by the project sponsor, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision.
Latin America and the Caribbean
F-AB - Sugar and Confectionery
Reg Manufact, Agri & Services, CAF/CLA
Date ESRS disclosed
March 6, 2013
Invested: October 29, 2013
Signed: June 27, 2013
Approved: May 9, 2013
View Summary of Investment Information (SII),
E & S ProjectCategorizationand ApplicableStandards
E&S Risks /Impacts andMitigation
E & S ActionPlans
Overview of IFC's Scope of Review
IFC’s environmental and social specialists visited the corporate offices of the Nicaraguan Shipping Consortium’s (NAVINIC, Montelimar or the Company) in Managua to obtain general operations orientation and to collect data about agricultural (plantations) and sugar milling operations. The team subsequently visited the Montelimar sugar mill (owned by NAVINIC) and current agricultural operations in July 2012. Further visits were made by IFC’s social specialists and consultants from August to November 2012 to further understand the underlying land acquisition legacy and land tenure issues in the Montelimar area and, more specifically, within the project’s footprint. Meetings were held with World Bank staff currently working on the on-going land titling and ownership project with Government of Nicaragua agencies, namely Corporaciones Nacionales del Sector Publico (CORNAP) and the Attorney General’s Office (PGR), responsible for land titling in Nicaragua. The government’s response to queries regarding financing the project was positive and the Government of Nicaragua (GoN) was able to provide some general guidelines on how they intend to proceed with titling for those residents on the land recently returned to the GoN by the Company. A Consultant carried out the field work in the Departments of Managua, Leon and Carazo to gain a better understanding of the communities located near or on land (and farms) owned or operated by NAVINIC and on GoN owned lands. IFC social specialists accompanied the consultant on two separate occasions during the field work.
Ingenio Montelimar, owned by NAVINIC since 2000, is the smallest of four sugar mills in Nicaragua. It presently has a sugar cane processing capacity of 2,300 metric tons/day. The project will enable the Company to double its sugar production and cane processing through: 1) acquisition of an additional 1,628 ha for cane cultivation; 2) improving agricultural infrastructure and drip irrigation; and 3) purchase and deployment of green cane harvesters and transport equipment. In addition, sugar cane milling capacity will be increased to 4,100 metric tons/day; with annual production increasing from 33,000 mt. to 67,000 mt. The increased scale of operations will allow for the installation of a high pressure boiler and supplemental cogeneration plant in 2-3 years with concomitant increases in the sale of biomass-generated electric energy to the national grid.
Identified Applicable Performance Standards**
PS 1 – Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and working conditions
PS 3 - Resource Efficiency and Pollution Prevention
PS 4 – Community Health, Safety and Security
PS 5 – Land Acquisition and Involuntary Resettlement
Environmental and Social Categorization and Rationale
This proposed investment will be Category A according to IFC’s Environmental and Social (E&S) Sustainability Policy, because of risks associated with complex issues relating to legacy land tenure issues in the region. The Montelimar Project’s farms are located adjacent and surrounded by Government of Nicaragua lands, which have complex legacy land tenure issues, that raise the risk of social impacts and spillover effects on the project, and over which the project sponsor has little or no control in managing. Recent IFC experience on other large scale agribusiness projects have included issues with complex agrarian land reforms, potential conflicting land claims, challenging governance framework of natural resources (e.g. conflicts over land and water resource use), and conflicts between security forces and communities.
The activities of the proposed investment are expected to have a number of environmental and social risks and impacts which are anticipated to be site-specific, temporary, and largely avoided or mitigated by adhering to generally recognized performance standards, procedures, World Bank Group (WBG) General EHS Guidelines, and design criteria as described in the following sections. Environmental and social impacts are being addressed through the application of good international industry practice and implementation of an environmental and social and occupational health and safety management system. The main risks and impacts associated with the project are addressed below as part of the Performance Standards analysis. Corrective measures required of the client are addressed in the attached Environmental and Social Action Plan (ESAP).
The following Performance Standards are not applicable, namely PS6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources, is not applicable as there are no natural and/or critical habitats in the vicinity of Montelimar. The land has been used since the early 1900s for agriculture and for sugar processing. The Company works diligently to restore ecosystem services, including watershed restoration and water harvesting.
PS7 – Indigenous Peoples, is not applicable as there are no identified indigenous peoples in the project area.
PS8 – Cultural Heritage does not apply. The Company has been actively working to protect a nearby archeological site called “La Gallina Cave”.
In the event that these PS’s become applicable, Montelimar will promptly inform IFC. Screening of these issues and their assessment will be done through planned company’s environmental and social management system (ESMS).
**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability
Main Environmental & Social Risks-Impacts of the Project and Key Mitigation Measures
PS 1: Assessment and Management of Environmental and Social Risks and Impacts
During the 2011-2012 harvest, Montelimar cultivated sugar cane on its own and third party-owned land, for a total of 3,594 ha. No third party land was involved in Montelimar production before the 2010-2011 harvest. Sixty-six ha of third party land (contracted through independent suppliers) were used during the 2011-2012 harvest (or Zafra). This constitutes approximately 1.8% of the total area under cane cultivation. The strategy to crop in external lands was adopted by the Company to ensure an adequate volume of quality cane supplied in a timely manner; and control over cropping and harvesting operations managed by Montelimar technical staff. This strategy avoids supply chain issues and guarantees that the small number of external primary sugar cane suppliers are in compliance with national labor laws and good agricultural practices. A management system procedure will be formalized as part of the existing ESMS that will define monitoring of contractor and sugar cane suppliers to be certain that they are in compliance with a) workers’ legal benefits; b) wages paid on time, c) safety regulations, and d) ILO Convention 138 on Minimum Age, and, 182 on Worst Forms of Child Labour.
Montelimar has developed environmental, occupational health and safety (OHS) and social policy statements. These are being updated to ensure inclusion of IFC Performance Standards’ requirements and to ensure effective implementation through designating center of responsibility for conformance. The Company adopted ISO 9001 (quality control management system) as its foundation for further developing an Integrated EHS management system to manage Company processes and activities, including environmental, OHS and social risks. To date, the Company has begun the following tasks: a) a baseline; b) review of environmental, labor, farming, and industrial processes to ensure compliance with applicable national legal and regulatory requirements; c) assessed OHS, social and community management; d) trained employees on the quality management system (ISO 9001); e) established EHS policies, procedures and programs; f) established an EHS implementation team and defined its roles and responsibilities; and, h) reviewed draft procedures prepared by process supervisors. An internal audit of quality control management system completeness will be carried out in February 2013 and a Certification Audit for ISO 9001 is planned for April 2013. The ISO 9001 procedures manual will include defined programs and activities to ensure monitoring and measurement of the effectiveness of the management system; stipulate the nature and schedule for periodic performance reviews and reporting to senior management; and, define senior management duties to ensure that all implementing procedures and plans are fully implemented and appropriate actions are taken to ensure continuing effectiveness.
In addition, the Company has achieved compliance with the Nicaraguan Food Safety Cycle (Ciclo de Inocuidad d
e Alimentos Nicaraguenses) that encompasses implementation of Good Agricultural Practices (GAP) in farming and field operations, Good Manufacturing Practices (in the Montelimar Sugar Mill), Sanitary Standard Operating Procedures (SSOPs) affecting production and packaging, and Hazard Analysis and Critical Control Point (HACCP) food safety program certification. Compliance with the Food Safety Cycle affords the Company not only the assurance of food safety but also traceability of products from the fields through commercial distribution.
The current quality control management system will be expanded and formalized and will include key social and environmental affairs, quality, human resources, and occupational health and safety issues associated with their direct plantations operations, as well as supply chain, transport, and processing operations. In accordance with the attached ESAP, Montelimar will implement an integrated EHS management system for its own operations and its supply chain, covering all aspects of IFC’s Performance Standard 1.
As described in the ESAP, Montelimar will provide IFC with a copy of the internal memorandum appointing a corporate social and environmental resource person with managerial responsibilities (EHS Manager) for environmental, OHS and social issues for all its operations. The Company has agreed that this person will report directly to Montelimar’s senior administrative manager (Gerente de Administracion). In addition, the Company will appoint a Community Liaison Officer, to report to the EHS Manager, and to carry out the actions outlined below regarding stakeholder mapping and community engagement as well as PS5 issues, concerning the development of a policy and framework for land acquisition and the continuing process of aiding households settled on non productive NAVINIC lands, to gain legal title for their plots. As further stipulated in the ESAP, the Company will implement management system procedures addressing: training of employees and contractors (field and mills) to ensure knowledge of its EHS policies, including community grievance procedures.
In addition, the Company will enhance its process for periodic monitoring and reporting to senior management of activities that have been identified to have potentially significant E&S risks and impacts during its normal operations and upset conditions. This will ensure continuing EHS performance review and realignment of Montelimar ’s sustainability priorities through adoption of Key Performance Indicators (KPIs) to mainstream Environmental, Occupational Health and Safety and social parameters, including a) Safety – Lost Time Incidence Frequency Rate (LTIFR - Number of injuries per million of hours worked); Accident Free Days ( Number of Days since last Lost Time Incident); b) Sustainability – Carbon (kg/ton - CO2 emitted / tons produced); Water Usage (M3/ton processed) and Efficiency; Energy Usage (kWh/ton processed) - Energy consumed/produced; W
astewater monitoring effluents and air emissions parameters; c) E&S Staff retention and number of training days provided to new and existing employees.
In order to provide the “Environmental License” for the Company to expand its sugar production and cane processing, the Ministerio del Ambiente y los Recursos Naturales (Ministry of Environment and Natural Resources - MARENA) requires an Environmental and Social Impact Assessment study (ESIA). Montelimar has prepared the study in line with Marena environmental laws and regulations, and those of IFC PS1 as described in paragraph 7 through 12 and Guidance Notes 23 through 26. During public disclosure, the ESIA will be disclosed at the World Bank InfoShop, and locally by Montelimar. The social issues described under PS5 and in the “Social Scoping Document” attached, will become part of the ESIA.
Montelimar has an existing Emergency Preparedness and Response Plan. Because of high volcanic and seismic activity in the area, the plan is being updated to include planned response to seismic, hurricane and tsunami events. Company production operations do not have significant adverse impacts on communities in its direct area of influence. The general public has no access to the mill and facilities, and the nearest small settlement outside of Montelimar property is 2 kilometers away from the Company mill. Nevertheless, there are a number of existing households located on land owned and operated by the Company, with whom the Company has been interacting over several years, helping them to establish legal title on their small plots of land. The Company will formalize these activities and, as set forth in the ESAP, will develop and implement a Stakeholder Engagement Plan (SEP) including resources for its timely implementation, scaled to the project risks and impacts and tailored to the various affected communities to ensure ongoing, effective communication and engagement with area residents. The draft Stakeholder Engagement Plan (SEP) will be reviewed by IFC prior to the project proceeding to the IFC Board of Directors for approval. The SEP will be disclosed locally by Montelimar, and at the World Bank InfoShop by IFC when completed. A community grievance mechanism will also be implemented as part of the EHS management system to ensure that stakeholders have a voice and a means of communicating concerns or issues to the Company about its operations and/or products. Finally, the Company will adopt management system procedure(s) for addressing and responding to these concerns.
PS 2: Labor and Working Conditions
Montelimar is a non-discriminatory and equal opportunity employer that has a total permanent labor force of 1,828 employees, of which 12% are women. The workforce grows to 2,750 people in peak harvest season. No identity documents of workers are ever deposited with the Company management during employment for any reason. The Human Resources (HR) unit is very professional, and has carried out a number of improvements to further advance HR management including hiring procedures, review of line of authority and job description, work ethics, improved communications, training needs, interdepartmental meetings, defining incentives to improve job attendance; and in general ensure a safe and respectful working environment.
The Company’s human resources policy adheres to Nicaragua labor law, and implementing procedures, which are an integral part of the ISO 9001 management system, are being revised to ensure full consistency with IFC PS2 Labor and Working Conditions. Drafts of the revised HR policy along with procedures developed for the management system will be submitted to management and will be fully deployed prior to the internal system audit scheduled during the first quarter of 2013.
Human resources procedures will include an employee grievance mechanism that has not previously been part of the policy; and, requirements to develop and deploy associated training to ensure that employees and contracted workers are fully aware of their rights under national law and the grievance mechanism; and, when changes to the HR policy take place. There is no evidence of forced and/or harmful child labor at the company’s operations, including in the supply chain. Montelimar’s HR policy prohibits employment of laborers less than 18 years of age in all its operations. Harvest of sugar cane is contracted to SEMURASA, a company which is directly managed by Montelimar, and this strategy guarantees that all contracted personnel are provided with all benefits, that child labour is not allowed in cane harvest operations, and overall compliance with national labor law and PS2 requirements.
Employees and family members have access to Company’s medical and dental treatment at no cost. Montelimar confirmed to IFC its compliance with freedom of association, a right that is guaranteed by Nicaragua labor law. The Company respects collective agreements, including those with the union SITRANAVINIC, which staff has freely joined. For the past years, NAVINIC enjoys a respectful and peaceful working environment.
Cane harvest is currently 100 percent manual and a total of 535 cane cutters are employed at peak of the season. Some of the labor required during the zafra (harvest) travels from a number of distant municipalities in the western area of the country. As agreed in the ESAP, Montelimar will construct a labor camp to accommodate 150 individuals at the Waterloo farm to reduce the cost and fatigue associated with distant travel and the harvest schedule that commenc
es very early each morning. Accommodations in the camp will include dormitories, bathing facilities, kitchen and dining areas, transport to work sites, and provision of electrolyte/hydrating solutions for field workers potentially at risk of chronic renal insufficiency (CRI). The Company will consider IFC’s Guidance on Worker Accommodations.
The Company is moving towards a mix of mechanical and manual harvest, but this year there will be the same number of workers hired despite 40% of the harvest been mechanical. If, in the future, the client has to decrease their direct or indirect employees significantly, they will inform IFC of their plans. If necessary, they will assess the impacts and propose mitigation measures that will address these issues, and complete a retrenchment plan as needed. In particular, the Company will consider some form of community development activity in neighboring communities to offset impacts on seasonal employment.
The due diligence review found that the OHS management at Montelimar has room for improvement, and as set forth in the ESAP, the Company will perform an OHS and Life and Fire Safety (L&FS) gap analysis and system design during the forthcoming zafra in the mills and in operations related to manual cane harvest. More emphasis will be placed in the future on follow up on implementation of OHS procedures, including training, in order to ensure that agreed tasks have been completed, and that use of PPE in the field and mills is stressed to employees. As agreed in the ESAP, Montelimar will evaluate available ambient lighting in the mill, and will present to IFC workplace ambient lighting studies to ensure that ambient lighting in daylight and evening hours is adequate for the work tasks performed. Required lighting levels should comply with National Institute of Occupational Safety and Health (NIOSH) recommendations. The Company conducts job hazard analyses; subsequently, employee training focuses on the demands and hazards associated with specific assignments as well as orientation to employee responsibilities with regard to wearing personal protection equipments and reporting accidents and near misses. Employees are trained and provided with PPE, as needed, to address issues that cannot be completely controlled or eliminated through engineering controls (e.g. noise in the mill, and any other specific issues).
At present reported accidents are investigated and summarized in accordance with a detailed flowchart that includes an analysis of the cause, cost and required mitigation measures for situations or conditions leading to the accident with specific timeline for remediation. The accident reporting format will be modified to include a summary of required preventive measures as well as the existing section on required corrective measures to prevent reoccurrence of observed accidents. Montelimar utilizes collected accident data to refocus training programs, ensure that the most up to date risk
information is passed on to employees, and, to implement remedial measures as needed to reduce or to eliminate the sources of accidents. Collected data associated with work and transport accidents have repeatedly implicated fatigue as a root cause of accidents. The shift modification is anticipated to reduce accident frequency and severity.
Montelimar has a well developed, robust program that includes monitoring workers for evidence of health impacts. Chronic renal insufficiency (CRI) is a known phenomenon in Nicaragua and elsewhere in Central America. Disease epidemiology and an alleged connection between sugar industries in general have previously been investigated through studies requested by the IFC Compliance Advisor Ombudsman (CAO). No direct relationship between the sugar sector and the disease has been established. However, recommended preventive measures include provision of potable cool water and electrolyte solutions to workers that not only aid in body fluid retention but also in electrolyte balance, ensuring that they are trained repeatedly about the importance of adequate hydration during field work and general training about the negative physical effects of alcohol consumption and associated dehydration. This is the preventive hydration approach taken by Montelimar in all its operations and supplier fields, and their occupational health and safety programs include that CRI education is provided for laborers employed by independent farmers.
PS 3: Resource Efficiency and Pollution Prevention
The Montelimar sugar mill cogenerates 91.4% of the total energy used per annum, making use of only biomass fuel. The Company makes efficient use of sustainable biofuels for generation of steam and electric power for internal consumption. Bagasse is combusted in two existing boilers to generate steam and electric power for the mill. The Company saves bagasse from the previous season to start boilers, thus avoiding use of fossil fuel for start up. The mill employs a hot water diffuser system for extraction of sucrose from cane. The process uses 50% less energy than traditional mechanical crushing sugar mills employed by other regional producers. Current mill upgrades include modification of cane receipt and initial processing to facilitate management of green cane that will be available in the future from the fields; construction of a gravity clarifier to separate organic solids from concentrated sugar solution and to significantly reduce energy consumption in the cane laundry also employed for segregation of organic wastes from concentrated cane juice; construction of a new, high efficiency boiler with advanced combustion processes aimed at the reduction of fly and bottom ash; and high efficiency centrifuges replacing old, inefficient units used to separate sugar crystals from process liquids.
The mill uses 0.11 m3 of water per ton of cane processed, which is below the WBG EHS Industry Guideline for sugar manufacturing benchmark for fresh water consumption of 0.5-0.9 m3/ton cane. Montelimar sustainability concept for water saving is to recycle water and return it to the field for irrigation. Water during milling operations is all surface water and is recycled at the rate of 4,000 gallon per minute, and, in a 24 hour shift the milling generates and discharges to the field a net gain of 2,567 cubic meters, which is a positive balance of water resource use. Organic wastes from mill operations include solid plant residues from the clarifier and cane laundry (cachaza), molasses from sugar crystal separation; general processing wastewater; and waterborne ash from stack gas scrubbing operations in boilers. All liquid and solid wastes generated by the mill, with the exception of molasses, are employed for cane field irrigation and soil enrichment. There are no discharges to surface water sources. Of the total volume of molasses by-product generated, 10-15% is sold to the Nicaraguan cattle industry for animal feed and 85-90% is sold to an ethanol distillery in Costa Rica. Mill wastewater is well within the limits imposed by Nicaraguan regulations for direct application of sugar mill effluents for irrigation to growing cane fields.
The Company is implementing segregation programs to reduce the generation of waste and to maximize the separation of recyclable and reusable materials. For wastes that cannot be recycled or reused, the Company will design and build a modern sanitary landfill on its property. The design shall include a leachate collection
system and pond or other appropriate devices for collected leachate treatment, PVC Geo-membrane liners to protect ground water, and surface storm water management facilities to prevent the intrusion of storm water into the landfill, thereby reducing the potential leachate volume.
Few chemical compounds are used in the mill and fields. Lime and sulfur are used in the mill to adjust pH and facilitate flocculation of organic solids in cane juice. Lime is also used in field renovation as part of a general control scheme to eliminate insect eggs. Lime, sulfur, fertilizers, flocculants, pesticides, and miscellaneous compounds are currently stored in a central location at Montelimar and limited quantities of fertilizer, lime and pesticide are also stored in satellite warehouses in the fincas (farms). The existing central store is in need of renovation to improve lighting, ventilation, warning and hazards signs, proper storage of PPE, and a registry and database of material safety data sheets (MSDS), and/or international chemical safety cards (ICSCs). As set forth in the ESAP, Montelimar will construct a new materials store as part of this project. Petroleum, oil and lubricants storage and distribution operations are well designed, constructed, and operated. Waste oil is collected and delivered to a Nicaraguan government-permitted recycling facility for reuse.
Montelimar produces approximately 309,000 tons of sugar cane/annum in 155 days of cropping season, with a mean yield of 87 mt/ha. In 2012, sixty-six percent of the sugar production was sold in the local market. Traditional sugar cane cultivation and harvesting includes pre-harvest burning of fields. This activity contributes to air pollution with smoke and particulates. Montelimar will purchase cultivation machines (green harvesters) to cut green cane in the fields without burning the plants prior to harvest. For the 2012-2013 zafra, 20% of cane harvest will be in the form of green cane with projected, progressively higher percentages each subsequent year. Using this methodology, organic residues are left in the fields as fertilizer and soil amendment, and there is a concomitant reduction in the use of water and energy to deal with ash and other residue from burning. The limiting factor is field topography since fields with highly variable topography are not suited to this form of harvesting because lasers are used to guide the machines and the level at which cane plants are cut. Poor harvesting may result in reducing ratoon cycles from the current 4-5 cycles to less, which is undesirable. Thus, traditional harvesting for such fields will remain until these fields are abandoned or replanted after the end of potential growth cycles.
Air emissions from existing two boilers will be monitored during the 2012-2013 harvest season to determine actual stack emissions and CO2 Equivalents and the gaps between these emissions and parameter limits normally acceptable contained in WBG General an
d sector specific EHS guidelines. If corrective action for actual stack emissions is required, as per the ESAP, Montelimar will develop a plan to reduce stack emissions to acceptable levels considering actual and potential impacts to public health based upon the findings of the monitoring program. Nicaraguan regulations do not stipulate particulate or other emission limits for sugar mills; but, they do require stack gas scrubbing and Montelimar is currently in compliance with these requirements.
Montelimar has a sustainable approach to water saving for sugar cane growth. Cane field irrigation employs surface water (88% in 2011/12) for crop growth. The rest is obtained from groundwater sources. All wells (a mean of 60 m depth) are authorized by the Nicaraguan water authority (ANA) following detailed hydro-geological studies to ensure sustainability of water availability for the communities as well as for Montelimar operations. All wells have been fitted with groundwater abstraction monitoring meters. Rainfall in the area is usually 1400 mm per annum. Government permits have been also granted to Montelimar to access water from 9 water concessions and 10 rivers. Currently 96.7% of the total area of cane fields, including the Company’s own and independent suppliers is equipped with drip fertigation systems that use surface water for these systems; and cultivated areas are also rain fed with supplemental water and nutrients supplied by organic wastes from the mill. Water savings due to efficiency in field application is coupled with reforestation efforts for rain water capture in previously degraded/deforested lands, converted now into secondary forests with enhanced ecosystem services (1.75 million trees planted in 27 percent of the total lands owned by NAVINIC).
The Company has developed an integrated pest management (IPM) system to control pests that may have an economic impact on cane crops. Virtually all pests, with the exception of Aenolamia species, are controlled through the use and planting of highly resistant cane species. Aenolamia species, whose economic impact may be significant due to leaf destruction and defoliation, injects a toxic substance that blocks the vascular systems of sugar cane stems (fitotoxemia) leading to foliage necrosis and death. The pest control scheme includes physical, cultural and other non-chemical control means, such as adult insect trapping and monitoring. Sticky traps attract females and males. A trap population of 105 adults is deemed acceptable; however greater concentrations mandate more robust control measures. Biological controls in use include Metarhizium anisopliae, a beneficial fungus that grows naturally in soils and causes disease in various insects by acting as a parasitoid.
Montelimar’s biological treatment is effective but the drawback is that it takes some fifteen days to act effectively and is not the treatment of choice for cane lots with high levels of infestation. In such cases a
nd/or when environmental conditions prohibit application of the fungus, a fast acting agent is required to avoid widespread damage. Montelimar employs Cypermethrin, which is a synthetic pyrethroid used as an insecticide in large-scale commercial agricultural applications. It is a fast-acting neurotoxin in insects and quickly controls infestations. It is easily degraded on soil and plants. Exposure to sunlight, water and oxygen accelerates its decomposition. Cypermethrin is a WHO Class 2 pesticide and the Company employs appropriate precautions for application and protection of employees exposed to the material. After the harvest each year, staff employed in its use has follow-up physical examinations to ensure that there are no impacts due to exposure. Weed control in cane fields is an important part of the growth cycle. The Company employs mainly female workers for manual weed removal in young cane fields as well as in seed cane harvest, preparation and planting. As the crop grows, manual labor is used to cut grass growing between rows of cane until the plants form a canopy over the soils and prevents sunshine penetration and therefore the growth of weeds. Cane rats are controlled with mechanical traps.
As set forth in the ESAP, Montelimar will eliminate the use of WHO Class 1a and 1b and Class 2 chemical formulations in their premises and will provide to their employees adequate Personal Protection Equipment (PPE) based upon MSDS and/or ICSCs for the materials used. If applicable, Montelimar will modify pest management service contracts to ensure adequate PPE and training of their employees is provided. As stated in the ESAP, Montelimar will provide documentary evidence of the training of employees handling pesticides specifically in the use of adequate PPE, and will fully incorporate all pest and disease management procedures into the SEMS procedures manual. Montelimar will continue monitoring the cholinesterase levels in workers applying pesticides, and report annually in the AMR.
PS 4: Community Health, Safety and Security
Montelimar’s operations have limited potential impacts on a sparsely populated area in the vicinity of cane growing and the Montelimar mill. During the harvest season, road traffic and movement of cane transport vehicles increases dramatically. The Company deploys female staff at intersections of farms and main roads leading to the mill to warn oncoming traffic of slow moving vehicles entering the main road; and use caution flags and other methods to reduce the hazards of farm machinery entering the principal roads. The principal transport road, constructed in the 1960s, is a high quality highway built of prefabricated, interlocking concrete blocks that is easily maintained and remains in good condition thus facilitating safe transport of cane from agricultural areas to the cane patio area of the mill.
Security personnel at Montelimar are armed. There is no formal Code of Conduct but there have not been any incidents reported. As set forth in the ESAP, the Company will develop specific management system procedures and will manage security forces in accordance with IFC PS4 requirements as described in paragraph 12 and 13. As indicated in the ESAP, Montelimar will develop and implement a Code of Conduct and Security Management System procedures for security personnel, including provisions that all security personnel must have a background check on file that shows they have no record of human rights abuse, and provisions on how to respond to threats guided by the principle of proportionality. As part of their community grievance mechanism required by the ESAP, Montelimar will provide a means for communities to channel complaints about the Company’s security arrangements or personnel.
PS 5: Land Acquisition and Involuntary Resettlement
Overview of Land Tenure on Company Controlled Lands
In 2000, NAVINIC acquired land and assets that included a number of large farms, such as Montelimar, Loma Alegre, Los Jicaros, El Zapote and El Apante that all together totaled an estimated 8,400 hectares. At present, the Company operations include a total of forty-six (46) farms directly managed by NAVINIC. Currently thirty-two (32) farms are owned directly and planted with sugar cane by the Company and have no households located on them. In addition, there are eight (8) leased farms without any households located on them. A total of four (4) farms are owned directly by the Company and have households located on them in several defined communities, which are outlined in more detail below. An additional two (2) farms are in the form of colonato, which have no households located on them. Also included as part of the Company’s lands are areas which are not used for sugar cane production, such as water bodies used for irrigation, protected areas and infrastructure, such as roads.
Regarding the lands with households which NAVINIC owns or has control over (four farms), the Company has been making a good faith effort to formalize the land tenure situation of all people living on them. This will strongly benefit the informal settlers on this land. While NAVINIC does not have a formal consultation program, the people interviewed have a very positive impression of the Company and have discussed land titling with the Company, some over several years. The Company has been involved in a process to title residents on their land; they have issued provisional titles in the name of the woman head of the household which will reduce the vulnerability of the households living on Company land. These provisional certificates can be formalized through the cadastral office if the land is held by the owner for five years. Selling the property prior to five years cancels the legality of the certificate. To complete the due diligence on issues related to PS5, IFC has reviewed issues associated with approximately six communities on the four farms, under NAVINIC’s control and has also done an additional scoping on another nine farms, covering approximately 20% of all farms. NAVINIC has said that there are no households currently living on most of these remaining farms, and the consultant has generally confirmed that of the forty-six farms; only a few others had some issues. The Company has continued to allow workers to establish themselves on NAVINIC land that is not cultivable. The Company will need to address these and all of the other households as part of the proposed Resettlement Policy, Framework and Action Plan they will develop as outlined below and in the ESAP.
There are several categories of people located on land owned by NAVINIC. IFC will ask the Company to consider the status and conditions of each group and recommend how they will address each situation so that there is alignment with PS5. Th
e following are the categories identified during the due diligence carried out by IFC:
1)Households displaced by AMSA – 220 households from La Colonia, El Rio, and Tanque Rojo Farms: The people displaced by AMSA between 1993-2000 (prior to NAVINIC’S acquisition of the Montelimar assets), currently live in two vibrant, well-organized communities (La Gallina and San Jose) where the houses are of solid, permanent construction. These communities appear to have strong organizational capacity and have been building the social services of these towns. NAVINIC has worked with Habitat for Humanity to improve or construct housing for fifty households in La Gallina. As set forth in the ESAP, the Company should ensure there are no outstanding high risk legacy issues directly related to land tenure and NAVINIC assets.
Households being titled by NAVINIC – 181 households: NAVINIC is trying to provide title to 181 households that were living on Las Vivas (71 households), and Loma Alegre (110 households) farms at the time of their purchase. An additional eight households chose to voluntarily relocate to other areas. The Company is in good faith trying to formalize the land tenure instability of residents. People were issued “possession certificates” that residents could formalize with the government after five years. As an example of the titling process, of the 181 people in two communities, Loma Alegre and Las Vivas, a representative sample of forty-five (45) were interviewed (approximately 24%), of which forty-four (44) said they had obtained title, and one person had recently established residence there. Only two of those interviewed showed their title to the interviewers for verification.
Households located near the mill (El Campamento, 18 households), the river (Los Rios, 36 households) and adjacent NAVINIC fields (El Apante, 54 households) – a total of 108 households: According to NAVINIC, the previous owners tried to relocate some of these residents, located on the banks of the river, to other Company land, out of concern that they might face a flood risk. Despite this risk, these residents prefer living near the river. NAVINIC has said that historically there has been no flooding, and, as an example, cited that during Hurricane Mitch, the households did not suffer from water damages caused by flooding. The communities are grateful that the Company halted the forced resettlement conducted by the prior owner, AMSA. NAVINIC will consult with the communities to understand the issues and take action according to the community’s preferences. There is space to extend their lots away from the river and title the whole plot. Moving the houses away from the river would be entirely up to the household, but if it is still an issue it would afford them a level of safety should the river flood during the rainy season. This issue will be addressed in the Plan outlined in the ESAP.
As agreed in the ESAP, the Company will conduct a census of the two are
as mentioned above in points 2 and 3 (and any other communities on Company’s lands) to confirm the accuracy of their current information on these households, as well as a random socio-economic survey to establish a baseline for the project. Part of this will include further study to confirm the number of people with provisional certificates and identify any underlying issues or risks with this process. They will complete a Land Tenure and Community Development Plan to ensure that the process is well managed, documented, and in compliance with PS5. The Company will undertake a broad community engagement program on the titling process through community engagement for which they will hire a dedicated Community Liaison Officer as outlined above under PS1. They will establish a cut-off date and ensure that there are no more incursions on Company lands. The engagement with the households will ensure that they understand the process of formalizing title and are able to complete that process; that the possession certificates are in good standing and that people fully understand the consequences of selling the land prior to applying for formal title. In addition, the Company will provide support to people titling their land, for example, filling out forms for those that are illiterate, and helping them navigate the expensive and complicated process of legalization. In addition, the Company will identify the most vulnerable and consider what activities could be done to help improve their livelihoods, beyond the titling process. The Plan will include an assessment of basic infrastructure such as access to potable water and sanitation, electricity and access roads and the results of discussions with the community of their needs and set priorities to improve the overall communities. These issues and mitigation will be outlined in the Land Tenure and Community Development Plan noted in the ESAP and the plan will be implemented in a timely manner by the company.
Willing Buyer/Willing Seller: NAVINIC has recently (and will in the future) purchased land from private sellers. The minimum area of land NAVINIC usually acquires is 50 hectares and the sellers are not usually vulnerable. In order to address any issues related to households that may be located on any future land acquired, and as per the ESAP, the Company will establish a Land Acquisition Policy and Framework. This will outline the type of social due diligence and possible census/socio-economic studies that the Company will undertake prior to acquiring land, to ensure that the land is not occupied, or to potentially resolve land tenure issues prior to or during the land acquisition process. A draft of this Land Acquisition Policy and Framework will be completed by the company prior to the project going to Board, and finalized within the next 6 months.
(B) Land Tenure of Land not Controlled by the Company
In addition to the issues mentioned in the previous section, there are other is
sues related to land that was recently returned to the GoN. These parcels of land (approximately 2,900 ha) were titled to the Company, but were legally owned by the GoN. As a result, in July 2012, the Company signed an agreement with the Attorney General’s Office (PGR) and Corporaciones Nacionales del Sector Publico (CORNAP) to legalize the Government’s ownership over these lands. Prior to signing the agreement, the GoN cadastral office (INETER) conducted a land survey to define the limits of the land.
The land tenure issues are very complex and need to be understood in the context of 30 years of dictatorship, revolution and post-conflict efforts to remediate land conflicts. Insecurity of land possession, squatting, opportunistic settlers, multiple titling of the same parcel of land characterize land tenure in parts of Nicaragua and more specifically on some of the parcels in NAVINIC’s original land holdings acquired from AMSA.
In the 1940s, the Montelimar mill and plantation was started on an area of approximately 10,000 hectares. In the 1980s, the Company was nationalized, and some Company workers were allowed to settle around the sugar cane farms in cooperatives. In the early 1990s the GoN gave away large quantities of the Montelimar mill land. In 1993, the GoN privatized Montelimar and sold the assets to AMSA. Between 1994 until 2000, AMSA conducted forceful resettlement of 220 families from La Colonia, El Rio and Tanque Rojo farms. These families were relocated to La Gallina and San Juan 54 areas. As AMSA proceeded with the forced relocation, families nearest to the plant site resisted, appealed to government entities and were allowed to remain on the land. In the early 2000s the mill was acquired by NAVINIC, which stopped the forced resettlements.
In the July 2012 agreement with the GoN specifically CORNAP and the (PGR), NAVINIC gave back approximately 2,900 ha of land to the GoN in order to assist the process of land titling in the area near their sugar mill in Montelimar. The land in question includes parts of, or the entirety of the following parcels: Los Jicaros A and B; El Zapote, San Diego, Tablas A and B, Tablas/Cuenca C, Samaria Apante, and the Annex of El Zapote. The donated land does not include areas that are currently planted with sugar cane, forested areas that are certified by INAFOR or MARENA, rights of ways, transportation routes, or bodies of water including aqueducts. The GoN will respect NAVINIC’s use rights over these bodies of water. The Company maintains that local communities can have access to the water with no restrictions of use. IFC understands the groups with informal possession located on some of the GoN lands that are interspersed among NAVINIC lands consist of ex-sugarcane plantation workers of Montelimar that formed agricultural cooperatives, cooperatives of ex-military personnel, as well as other individuals. The GoN has agreed to continue the process of formalizing the titles to land parcels
that are primarily held by collectives and cooperatives. A summary of the agreement is available on CORNAP’s website:
As part of the social due diligence performed, IFC decided to further evaluate what impacts the terms of the agreement between the GoN and NAVINIC might have on local residents because of the proximity and former link of that land with NAVINIC. IFC hired a social consultant to interview a number of households in the area of the lands given to the GoN by NAVINIC and try to understand the following: (i) number of people living on the land and how long they have lived there; (ii) the types of tenancy and (iii) types of certificates or titles possessed by owners.
During the due diligence performed by IFC, the social consultant found that some people are being asked to resettle and some residents were not included in the initial cadastral survey. A large number of people professed their hopes to be included in the GoN program for titling, as they had seen INETER carrying out the cadastral surveys. The GoN has committed to titling land in the name of eligible residents following its own processes and under a different timeframe from that contemplated for Navinic’s own land. IFC will work with NAVINIC and the World Bank to assess ways to support and stay informed of the GoN titling efforts. The GoN, in a joint effort with the World Bank, is currently formalizing land titles throughout several regions of the country, primarily located on the Atlantic Coast and North East areas of the country, starting with regional cadastral mapping of land. These efforts have increased in the last three years and information received from the GoN suggested a few of the collectives and cooperatives in the Montelimar area are undergoing this cadastral process, as a step to finalizing legal titles to the lands.
Client's Stakeholder Engagement
The company’s previous community engagement activities, as outlined above in PS1 and PS5, have been somewhat informal and ad hoc. Going forward they will formalize the process and take the actions outlined above and in the ESAP to develop and implement a Stakeholder Engagement Plan as well as engagement with households that are affected by land acquisition, and those households on their farms they have been helping obtain title. As per the ESAP, the company will develop a community grievance mechanism that may be used by the community to express concerns about the company’s operations and impacts and also serve as a communications channel for consumers to advise the company of concerns about company products.
The Montelimar sugar mill management team is fully committed to protection of the cultural heritage in the areas in which it conducts agribusiness. Nicaragua is rich in natural resources and culture heritage. In Nicaragua, there are more than 500 known archaeological sites with petro glyphs. Montelimar Cave “La Gallina”, named after a painting of a bird found in the cave), is one of six that retain cave paintings and prints. At this site there are twenty different figures. All retain their original carvings into the rock ceiling of the vault. The rock art symbols include the following elements: an anthropomorphic figure (human) form, four zoomorphic (animal) shapes including snake, monkey, bird, and eight geometric shapes, three of which are abstract and one that is one unspecified and incomplete.
Montelimar Cave is particularly important to the history of Nicaragua due to the presence of three symbols that have been identified as part of an ancient dialect of the Nahuatl language. These symbols are recognized in the Nahuatl language today, which was a dialect used by the land inhabitants between the thirteenth and fifteenth century. In Nicaragua the people of this language disappeared but the language is still in use in some villages in Central America and Mexico.
The Company has provided active protection of the archeological site “La Gallina Cave” since 2004. Infrastructure includes a covered walkway and improved pathways to protect the resource from rain, wind and erosion. The cultural heritage site is open to students, tourists and the general public, and is a significant contribution to the conservation of Nicaraguan cultural heritage so that future generations may be familiar with their indigenous roots and the cultural heritage bequeathed by the country’s ancestors.
Community meetings and disclosure of information will take place at Montelimar’s sugar cane farms in zones 1-6 as they serve as central locations for activities and labor coordination for farming activities.
Local Access of Project Documentation
The ESRS and attached ESAP, the Environmental Impact Assessment (EIA), and the “Social Scoping” document, will be made available to the public via the World Bank Group’s InfoShop. Stakeholders in Nicaragua may also obtain the documentation from NAVINIC-Ingenio Montelimar, details of which are provided below. In addition, the Company will be requested to place an advertisement in a local newspaper to inform the public that results from IFC’s environmental and social review (ESRS) and ESAP and additional documents is available for access on its corporate website or provide a web- link to IFC’s disclosed ESRS and ESAP. Project Documentation will be made available locally at the San Rafael del Sur City Hall and Library, at the Montelimar Sugar Mill, and through community engagement meetings. Questions concerning these documents, the project and other issues should be directed to the following individuals:
Oscar Gutierrez –
José Luis López –
Coordinador Gestión de la Calidad y Relaciones Públicas
Teléfonos: (505)2269-6516, (505)2269-6136 ; Fax : (505)2269-6546
San Rafael del Sur City Hall
Located on the West side
of the San Rafael del Sur Central Park
Tel: +505 2293 3284; +505 2293-3542
San Rafael del Sur Public Library
Located on the Southern side
of the San Rafael del Sur Central Park
Tel: +505 2293 3284
IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities.
In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for IFC. The CAO is mandated to address complaints from people affected by IFC-supported business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of IFC.
Independent of IFC management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of IFC’s environmental and social performance through its compliance arm.
Complaints may relate to any aspect of IFC-supported business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC-financed business activity. Complaints can be submitted to the CAO in writing to the address below:
International Finance Corporation
2121 Pennsylvania Avenue NW
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400
The CAO receives and addresses complaints in accordance with the criteria set out in its Operational Guidelines which are available at: www.cao-ombudsman.org
Broad Community Support is not applicable for this project
PS1 Assessment and Management of Environmental and Social Risks and Impacts
Enhance and implement the Company’s Environmental, Occupational Health and Safety and Social (EHS) Management System consistent with IFC Performance Standard 1, during construction and operational phases:
a) Provide to IFC specific EHS operating policy requirements and procedures manuals for compliance with social, OHS and environmental issues during construction and operational phase.
b) Communicate the policies to all levels of its organization and employees and contractors will be provided copies of these policies at the time of hiring and orientation.
c) Provide to IFC full evidence that the EHS management system is operational.
a) March 15, 2013
b) March 31, 2014
c) December 31, 2014
Establish Stand-alone Environmental Management Unit:
a) Provide IFC a copy of the internal memorandum appointing a corporate social and environmental person with managerial responsibilities exclusively for environmental, OHS and social issues. The Company has agreed that this person will report directly to Montelimar’s senior administrative manager (Gerente de Administracion).
b) Provide IFC a copy of internal memorandum appointing a Community Liaison Officer reporting to the above Manager, who will be responsible for implementation of the Stakeholder Engagement Plan (ESP) and PS5 requirements.
c) Submit evidence to IFC that an adequate plan and appropriate staffing, budgeting, management endorsement, vision and mission statements and associated documentation are in place to institutionalize the functions of the Environmental Management Unit.
d) In the future, if completing any consulting work related to IFC and the Performance Standards, send the draft ToRs to IFC for input and send the CVs of potential consultants identified to perform all such social and environmental studies, for approval by IFC..
c) January 31, 2013
d) Throughout the life of the IFC investment
Training in Environmental, OHS and social issues
Provide IFC with a copy of the EHS management system procedure and evidence of the implementation of the training in EHS issues.
March 15, 2013 and Report annually in the Annual Monitoring Report (AMR)
Senior Management Reporting and Monitoring.
Provide IFC a copy of the EHS management system procedure for monitoring and reporting environmental and social issues to senior management. As part of this, the Company will review and expand its existing Key Performance Indicators (KPIs) to mainstream Environmental, Health and Safety parameters, including a) Safety – Lost Time Incidence Frequency Rate (LTIFR - Number of injuries per million of hours worked); Accident Free Days ( Number of Days since last Lost Time Incident); b) Sustainability – Carbon (kg/ton - CO2 emitted / tons produced); Water Usage (M3/ton) and Efficiency - Consumed versus tons produced; Energy Usage (kWh/ton) - Energy consumed/tons produced; Wastewater monitoring effluents and air emissions parameters; c) Staff - Retention - Number of full time equivalents leaving in the period /Avg. full time equivalents - and Training days - Number of training days provided to new and existing employees.
March 31, 2013
Prepare Environmental and Social Impact Assessment (ESIA) for Proposed Expansion.
Present to IFC an ESIA consistent with the requirements of Performance Standard 1 and Nicaragua regulatory authorities. The environmental and social impact assessment study (ESIA) will follow the guidelines in accordance with IFC PS1 requirements as described in paragraph 7 through 12, and Guidance Notes 23 through 26. The social issues described under PS5 will be part of the ESIA.
Condition of Public Disclosure
Prepare and Implement EHS Management System Procedures Addressing Stakeholder Mapping and Community Engagement, including a Community Grievance Mechanism Complying with PS1:
Develop and implement a Stakeholder and Community Engagement Plan (SEP) and management system procedure. Provide a copy for IFC of the community engagement procedure, including a grievance mechanism for the communities in the vicinity of agriculture, processing and transport facilities and operations. Ensure that the mechanism is clearly communicated by posting on the Company website and included in relevant written public communications at the facilities. The procedure shall also promote engagement with potentially affected villages and homesteads on issues that could affect them and to ensure that Montelimar's feedback response information is disclosed and distributed among local residents and stakeholders. As part of the community grievance mechanism, Montelimar will provide a means for communities to raise issues about the Company’s security arrangements or personnel as outlined in PS4.
Submit a draft of the SEP to IFC prior to Board and a final version as a COD, and report annually in the AMR
PS-2 Labor and Working Conditions
Revise Human Resources (HR) Policy: Provide IFC a copy of the approved and signed management system procedures implementing NAVINIC’s human resources policy that ensures full compliance with national labor law, and IFC Performance Standard 2 requirements directly, and through contractors, and/or the supply chain.
March 31, 2013
Occupational Health & Safety Plan and Life and Fire Safety:
Provide Occupational Health & Safety Plan and Physical Provisions for Fire Detection, Compartmentation, Extinguishing and Employee Egress:
a) Provide IFC with signed contract for professional services to perform the OHS gap analysis and system design during the forthcoming zafra in the mills and in operations related to manual cane harvest. Provide IFC with signed contract for professional services to evaluate and provide remedial engineering for facility provisions for Fire Detection, Compartmentation, Extinguishing, and Employee Egress.
b) Present to IFC both OHS and Fire Safety gap analyses and required remedial measures reports;.
c) Begin implementation of corrective measures defined during the OHS/L&F Safety gap analysis, including required OHS training activities.
d) Submit final report with documentary evidence upon completion of agreed date in schedule of implementation, and provide IFC with a certification from the Montelimar task manager that all observed deficiencies have been corrected.
e) Demonstrate to IFC that area coordinators are adequately qualified and trained, and that employee and contracted workers are aware of the positions, roles and responsibilities for all emergency response events;.
f) Inform annually to IFC of OHS statistics using the original OHS audit as a baseline.
b) June 30, 2013
c) July 15, 2013
d) November 30, 2013
e) November 30, 2013
f) Report annually in the AMR
CRI Monitoring and management:
Formalize existing procedural activities and incorporate into a procedure for the ISO 9001 Management System that addresses required planning, design, operational improvements and sustaining investments for its current activities in CRI monitoring and management.
May 31, 2013
Prepare Management System Procedure Addressing Employee and contracted worker Grievance Management:
Montelimar will provide to IFC a copy of the formal grievance redress mechanism for employees and contracted workers, and the dissemination process.
February 28, 2013
Formalize Management System Procedure for Contractors:
The management system procedure will be formalized as part of the EHS management system that will ensure and monitor that contractor and sugar cane suppliers are in compliance with a) workers legal benefits; b) wages paid on time, c) safety regulations, and d) ILO Conventions 138 on Minimum Age, and 182 on Worst Forms of Child Labour.
June 30, 2013
Evaluate Available Ambient Lighting in Montelimar Mill:
Present workplace ambient lighting studies in Montelimar mill to ensure that adequate ambient lighting in daylight and evening hours is adequate for the work tasks performed. Prepare mitigation measures to achieve appropriate day time and night time illumination. Required lighting levels should comply with National Institute of Occupational Safety and Health (NIOSH) recommendations.
June 30, 2013
new and existing workers accommodations will be in compliance with PS2 requirements and IFC Guidance on Worker Accommodation. Accommodations in the camp will include dormitories, bathing facilities, kitchen and dining areas, transport to work sites, and provision of electrolyte/hydrating solutions for field workers potentially at risk of chronic renal insufficiency (CRI).
June 30, 2013
Seasonal Manual Work Force:
If, in the future, the client has to decrease their direct or indirect employees significantly, they will inform IFC of their plans. If necessary, they will assess the impacts and propose mitigation measures that will address these issues, and complete a retrenchment plan as needed.
Throughout the life of the IFC investment
PS-3 Resource Efficiency and Pollution Prevention
Conduct Boiler Stack Emissions Monitoring and collect stack emissions samples: Provide a data report to IFC including the observed values, associated boilers and an assessment of the degree of compliance with WBG General EHS guidelines air emissions limits.
May 15, 2013
Develop Action Plan to Reduce Stack Emissions to a Level Protective of Public Health:
If stack emissions parameters are beyond the allowable limits captured in WBG EHS Guidelines, present a proposed approach and implementation schedule to reduce the emissions and/or demonstrate that actual emissions are not detrimental to public health in the downwind area using wind rose and other meteorological measurements for modeling exercises.
June 30, 2013
Construct Sanitary Landfill:
a) Contract engineering design of landfill for collected municipal waste from operations. Design shall incorporate modern elements including gas venting, leachate collection and treatment, PVC geo-membrane liners to protect contamination of ground water, and surface facilities to prevent storm water run on and infiltration into the accumulated waste.
b) Submit completed design to IFC and operations manual along with designer’s certification that the design and location fully comply with Nicaraguan regulatory requirements and meet WBG’s General EHS Guidelines.
c) Construct landfill and provide a certification to IFC from the designer at the end of construction that the landfill was constructed in accordance with the approved design.
b) November 30, 2013
c) November 30, 2014
Identify and Eliminate the use of WHO Class 1a and 1b and Class 2 chemical formulations in all operations.
a) Identify and eliminate the use of WHO Class 1a and 1b and Class 2 chemical formulations. Provide adequate PPE based upon MSDS and/or ICSCs for the materials used. Modify pest management service contracts to ensure adequate PPE based upon MSDS and/or ICSCs, and training of employees.
b) Provide documentary evidence of the training of employees handling pesticides specifically in the use of adequate Personal Protection Equipment (PPE), and fully integrate pest management procedures into the SEMS procedures manual. Continue monitoring the cholinesterase levels in workers applying pesticides with cholinesterase inhibiting characteristics, and report annually in the AMR.
a) December 31, 2013
b) Report on integrated pest management program updates in the Annual Monitoring Report (AMR)
Redesign and construct new materials warehouse:
Design and construct a new materials storage warehouse to ensure appropriate ambient lighting, ventilation and safe storage of industrial materials, fertilizers and pesticides. All storage areas shall be clearly marked that access is limited to authorized personnel; external signage shall describe associated hazards and the storage facility will be equipped with appropriate safety and health equipment, fire control equipment, smoke detection and audible/visual alarms.
December 31, 2014
PS4 Community Health, Safety, and Security
Provide a copy of the Code of Conduct/Security Plan for security personnel:
Develop a Code of Conduct and Security Plan incorporated into a management system procedure for security personnel and provide a copy to IFC for approval. Procedural directions will include how security forces will be managed in accordance with IFC PS4 requirements as described in paragraph 12 and 13, and will include provisions that all security personnel must have a background check on file that shows they have no record of human rights abuse, and provisions on how to respond to threats guided by the principle of proportionality. It will include the Community Grievance Mechanism referred to in PS1.
July 31, 2013
PS5 Land Acquisition and Involuntary Resettlement
Ex-Post Review and Document Physical Displacements Related to Land Acquisitions:
a) Complete a land acquisition policy and framework documented in a management system procedure for addressing future land acquisition as well as the affected people currently located on their lands and include in ESMS as outlined in PS1.
b) Complete a Census (to establish a cut-off date) to fully document the individuals and their status, which are located on existing lands owned by the Company. Complete such a Census on all future land purchased by Montelimar as outlined in the above policy and framework.
c) Complete a time bound Titling and Community Development Plan designating adequate resources to assess the impacts and carry out mitigation measures needed to complete the titling process for affected households, among other potential measures, to help improve livelihoods. This will include socio-economic surveys of a random sample of the 300 plus households that are located on Montelimar lands. In addition, the plan will address the communities located near the river that had been asked to move by the previous owners, and discuss the options that might be considered. The Plan will include an assessment of basic infrastructure such as access to potable water and sanitation, electricity and access roads and the results of discussions with the community of their needs and set priorities to improve the overall communities. In addition, the Company will provide support to people titling their land, for example, by filling out forms for those that are illiterate, and helping them navigate the expensive and complicated process to obtain the legal documents. The socio economic survey will identify the most vulnerable groups in the company’s communities and the plan will consider what activities could be carried out with communities to improve their livelihoods, beyond the titling process.
d) The Company will confirm through the legal process, there are no legacy land claims in the legal system that are active related to Montelimar or Montelimar assets.
e) Monitor with the help of IFC and WB offices in Nicaragua, the progress of the titling process of the eligible households and groups in and around NAVINIC.
a) Draft of the LA Policy and Framework to IFC prior to Board, final version as a COD
c) October 30, 2013
Availability of Full Documentation
The complete set of Category A documentation is available from the World Bank Infoshop:
World Bank Infoshop
1818 H Street, N.W., Room J1-060
Washington, DC 20433
Fax: (202) 522-1500 (USA)
Hours of Operation: 9:00am to 5:00pm (Monday through Friday)
The complete set of Category A documentation is also available locally at the following locations:
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