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Environment and Social Compliance Audit Report Independent Environmental, Health, Safety & Social (EHS&S) Compliance Assessment Report Project Number: 44951-014 June 2016

BAN: Bibiyana II Gas Power Project

Prepared by ERM India Private Limited a member of Environmental Resources Management Group of companies on behalf of (Summit Bibiyana II Power Company Limited) for Asian Development Bank This environment and social compliance audit report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

The world’s leading sustainability consultancy

Fourth Independent Environmental, Health, Safety & Social (EHS&S) Compliance Assessment during Construction Phase of Bibiyana II Power Project, Habiganj, Bangladesh

Draft Final Report

1 June 2016

www.erm.com

Summit Bibiyana II Power

Company Limited (SBIIPCL)

ENVIRONMENTAL RESOURCES MANAGEMENT SUMMIT BIBIYANA II POWER COMPANY LIMITED (SBIIPCL)

#0265459/I10515 – 4TH EHS&S COMPLIANCE ASSESSMENT – CONSTRUCTION PHASE JUNE 2016

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CONTENTS

1 INTRODUCTION 1

1.1 BACKGROUND 1

1.2 OBJECTIVES AND SCOPE OF WORK 2

1.3 COMPLIANCE ASSESSMENT FRAMEWORK AND EVALUATION CRITERIA 3

1.4 ERM TEAM FOR SITE VISIT 3

1.5 APPROACH TO THE COMPLIANCE ASSESSMENT 4

1.6 LIMITATION 7

1.7 LAYOUT OF THIS REPORT 8

2 PROJECT APPRECIATION AND CURRENT STATUS OF THE PROJECT 9

2.1 THE PROJECT 9

2.2 PROJECT DEVELOPER 9

2.3 CURRENT PROJECT STATUS 10

3 SUMMARY OF KEY OBSERVATIONS 12

3.1 ENVIRONMENTAL, HEALTH & SAFETY 12

3.2 SOCIAL OBSERVATION 22

4 COMPLIANCE STATUS OF CAP & ESMMP AND IFC ESAP 36

5 EHS&S REGULATORY COMPLIANCE ASSESSMENT 59

6 CORRECTIVE ACTION ITEMS 67

7 CONCLUSION 72

ANNEX A PHOTO DOCUMENTATION



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ABBREVIATIONS

ADB Asian Development Bank BATS Bangladesh Air Traffic Services BCAS Bangladesh Centre for Advance Studies BIWTA Bangladesh Inland Water Transport Authority BPDB Bangladesh Power Development Board BRTA Bangladesh Road Transport Authority CAP Corrective Action Plan CCPP Combined Cycle Power Plant CDO Community Development Officer CDP Community Development Plan CIB Chief Inspector of Boilers CMT Construction Management Team CO Carbon Monoxide COD Commercial Operations Date DGM Deputy General Manager DOE Department of Environment DOEXP Department of Explosives EHS Environment, Health and Safety EHS&S Environmental, Health, Safety and Social EPC Engineering, Procurement and Construction ERM Environmental Resources Management ESAP Environmental and Social Action Plan ESIA Environmental and Social Impact Assessment ESMMP Environmental and Social Management and

Monitoring Plan FNTP Full Notice to Proceed GIIP Good International Industry Practices GLC Ground Level Concentration GOB Government of Bangladesh GRM Grievance Redress Mechanism GSA Gas Supply Agreement GT Gas Turbine HIRA Hazard Identification and Risk Assessment HIRAC Hazard and Risk Assessment and Control HR Human Resources HRSG Heat Recovery Steam Generator HSD High Speed Diesel IA Implementation Agreement IFC International Finance Corporation IsDB Islamic Development Bank ISO International Organisation for Standardisation JCCR Joint Committee for Community Relation JGTDSL Jalalabad Gas Transmission and Distribution System

Limited JHA Job Hazard Analysis L&FS Life and Fire Safety LLA Land Lease Agreement LPG Liquid Petroleum Gas LRP Livelihood Restoration Plan MoM Minutes of Meeting MSDS Material Safety Data Sheet



III

NEPC First Northeast Electrical Power Engineering Co NEPC-S Northeast Electric Power Engineering & Services

Company NGO Non-Governmental Organisation NOx Oxides of Nitrogen OHSAS Occupational Health and Safety Management System OJT On-Job Training PAF Project Affected Family PGCB Power Grid Company of Bangladesh PM Particulate Matter PAH Project Affected Household PAP Project Affected Person PPA Power Purchase Agreement PPE Personal Protective Equipment RAP Resettlement Action Plan RFP Request for Proposal RMP Rural Medical Practitioner SBIIPCL Summit Bibiyana II Power Company Limited SIA Social Impact Assessment SIMCPL Summit Industrial and Mercantile Corporation (Pvt.)

Ltd SO2 Sulphur Dioxide SOP Standard Operating Procedure ST Steam Turbine TBT Tool Box Talk TK Bangladeshi Taka TNA Training Need Assessment WB World Bank WHO World Health Organisation



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Executive Summary ERM has been involved by by Summit Bibiyana II Power Company Limited

(SBIIPCL) in performing Environmental, Health, Safety and Social (EHSS)

Compliance Assessment of its 341MW natural gas fired combined cycle power

plant (CCPP) located at Parkul Village in Aushkandi Union under Nabiganj

Upazilla of Habiganj District, Bangladesh. The compliance assessment

framework includes guidelines prescribed by IFC & ADB including applicable

national and local EHSS regulations. The current assessment covers for the

period October 2015 to February 2016 with site visit undertaken by the ERM

team during 25th - 28th February 2016.

The EPC Contractor has recently completed the necessary construction works

regarding operation of combined cycle power generation – only minor

accessory construction related activities are now being done. Single cycle

operation of the power plant commenced from 6th June 2015 with COD for

combined cycle operations being declared on 28th December 2015. For

operations SBIIPCL has engaged China Northeast Electric Power Engineering

and Services Co. Ltd (NEPC-S) as the Operations and Maintenance (O&M)

Contractor. However, EPC Contractor will still be responsible for all sorts of

construction, maintenance and operation of the power plant. O&M Contractor

will commence with their activities following handing over the project to them

by the EPC Contractor. After handing over, EPC Contractor will remain in the

plant for two more years as part of construction guarantee/warranty with

limited staff/personnel.

With respect to EHSS regulatory permitting the project is found to be in

compliance for both construction and operations except for the permit

required for diesel storage near the fire pump room. The construction phase

stands to be completed in December 2015 following declaration of COD for

combined cycle operations in 28th December 2015. SBIIPCL is assessed to have

demonstrated satisfactory compliance to the construction phase ESAP and

ESMMP commitments. However, SBIIPCL to continue with their efforts to

comply with some of the commitment for this phase particularly related river

bank erosion monitoring, maintenance of traffic safety signages’s and avifauna surveys.

For operations, both SBIIPCL and NEPC-S were found to be on track towards

managing the HSSE aspects applicable for this phase. To this regard necessary

policies and EHS procedures have been developed and is currently under

implementation. However efforts need to be made by NEPC-S to update the

Waste Management Procedure, Chemical Handling Procedure, and

Emergency Response Procedure in consistent with the national regulations

and lending agency guidelines. Further, SBIIPCL along with NEPC-S is

required to perform a quantitative risk assessment study of the project

operational risks. This in turn needs to be communicated along with response

actions to the nearby communities who are likely to be affected, to enhance

emergency preparedness. Assessment of project fire safety risks and



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preparedness is also pending and need to be undertaken on a fast track to

meet the ESAP timeline.

SBIIPCL along with NEPC-S to continue with their efforts towards

demonstrating compliance to legal commitments particularly with respect to

periodic examination of lifting equipment’s and pressure vessels; provision of secondary containment for designated hazardous waste storage area; first

aider certification; firefighting training and equipping first aid

room/dispensary with adequate resources.

The compliance status and/or overall progress related operation stage

findings will be assessed and verified by ERM during next independent

monitoring due in next 6 months i.e. in August 2016.



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1 INTRODUCTION

1.1 BACKGROUND

Environmental Resources Management (ERM) was commissioned by Summit

Bibiyana II Power Company Limited (SBIIPCL) in order to conduct

independent monitoring/auditing of the Project (341MW natural gas fired

combined cycle power plant (CCPP)), on behalf of the lenders, which include

Asian Development Bank (ADB), International Finance Corporation (IFC) and

Islamic Development Bank (IsDB) (the “Lenders”), after it was agreed by the

Lenders and Borrower (SBIIPCL) to engage ERM in the role of Financiers'

Environmental and Social Adviser for the purpose of the Borrower’s Compliance with Lenders’ Environmental and Social Requirements, and to respond

to environmental and social concerns that the Lenders may have from time to

time.

ERM was commissioned on 17th September 2014 for independent

Environmental, Health, Safety and Social (EHS&S) Compliance Audit as an

internal audit requirement. The first audit by ERM was conducted in the last

week of September 2014 and final report of audit was submitted on 3rd

November 2014. After the first EHS&S compliance audit, based on the

discussions with prospective lenders, SBIIPCL had engaged Bangladesh

Centre for Advance Studies (BCAS) as Borrower’s monitoring auditor/consultant for the compliance monitoring, considering that the same

agency was involved during the Environmental and Social Impact Assessment

(ESIA) of the Project. In order to conduct independent monitoring/auditing

on behalf of the lenders, it was agreed by the Lenders and Borrower to engage

ERM to quarterly compliance audits.

The Project is a 341MW natural gas fired combined cycle power plant (CCPP)

having one Gas Turbine (GT), one Heat Recovery Steam Generator (HRSG)

and one Steam Turbine (ST). The Project is located at Parkul Village in

Aushkandi Union under Nabiganj Upazilla of Habiganj District, Bangladesh.

The audit was to primarily assess the compliance status of the project with

respect to the EHS&S Corrective Action Plan (CAP) developed as part of the

Independent EHS&S Compliance Audit reporting submitted by ERM on 3rd

November 2014, IFC’s Environmental & Social Action Plan (ESAP) as well as to

verify the internal EHS&S, Labour and Social audit verification being

conducted by BCAS in February 2016.

A total of 3 audits have been undertaken till date since September 2014, with

this being the fourth in the series. The present audit was undertaken from 8th-

10th September 2015 was to primarily assess the compliance status of the

project with respect to IFC ESAP and EHSS CAP as mentioned above.



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1.2 OBJECTIVES AND SCOPE OF WORK

The primary objective of this assignment was to assess the compliance status

of the Project and its various components with respect to the agreed CAP

between borrowers and lenders, IFC ESAP, Construction & Operations Phase

Environmental & Social Management & Monitoring Plan (ESMMP) of the EIA,

action plan resulting from labour and social audit by BCAS, applicable legal

requirements and to identify any key EHS&S’s issues (if any) for the Project:

The scope of the compliance audit was as follows:

a) To assess the Project’s compliance with the environment, health, safety and social (EHS&S) requirements of the audit framework (described

subsequently);

b) To review the effectiveness of implementation of mitigation measures and

monitoring programmes at site developed as part of the ESIA study;

c) To review the status of environment management, health and safety,

protection of labour force, during construction and operation phases of the

Project;

d) To review the status of environmental and social action plan (ESAP)

compliance, which came out from the first compliance monitoring during

the construction stage conducted by ERM and social impact assessment

(SIA) conducted by BCAS;

e) To review the status of ESAP as formulated by IFC and agreed by

SBIIPCL;

f) To review the implementation of the resettlement action plan (RAP) and

livelihood restoration plan (LRP) developed for the Project;

g) To review the company’s existing management system, standard operating procedures (SOPs) and training in relation to EHS&S and

identification of areas for improvement/ enhancement;

h) To review the health and safety records of site and compliance with

respect to the site specific safety management system adopted by the EPC

and O&M contractors and by the company; and

i) To provide objective reports to the international lenders confirming

compliance and if not, recommending additional corrective actions, as

appropriate to the Project during construction and operation stages.

It was understood that new issues could have possibly emerged with

commencement of combined cycle operations since 28th December 2015. The

scope includes identifying those issues and assessing how the project is

managing them. The present assignment has tried to capture the operation

and maintenance related issues, as the construction phase is over and the

Provisional Acceptance Certificate (PAC) to the EPC contractor (NEPC) is

likely to be issued in next couple of months and after that the complete plant

operations will be handled by the O&M Contractor (NEPC-S). The objective is

to suitably monitor the performance of NPEC-S during the next scheduled

compliance assessment to be due in 6 months’ time.



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1.3 COMPLIANCE ASSESSMENT FRAMEWORK AND EVALUATION CRITERIA

The EHS&S compliance assessment was carried out and evaluated against the

following criteria:

Applicable Local and National environment, occupational safety, health and social legislations;

IFC Performance Standards on Social and Environmental Sustainability (2012);

ADB Safeguard Policy Statement (2009);

IFC/WB Environment, Health and Safety Guidelines – General and for Thermal Power Plants;

Good International Industry Practices (GIIP) including elements of ISO 14001, OHSAS 18001 Occupational Health and Safety Management System;

EHS&S CAP integral to the Independent EHS&S Compliance Audit Report of ERM dated 3rd Nov 2014;

All requirements specified in the Labour Audit report prepared by BCAS dated 25 June 2015;

All requirement specified in the Environmental & Social Monitoring Report and Social Audit report prepared by BCAS dated February 2016;

All requirements and mitigating or monitoring measures specified in the ESMMP of the ESIA report prepared by BCAS dated July 2014; and

All requirements and mitigating or monitoring measures specified in the ESIA as well as RAP and LRP.

1.4 ERM TEAM FOR SITE VISIT

A three member ERM team had conducted the site visit and consultations

between 25th - 28th February 2016. The composition of the ERM team was as

follows:

Naval Chaudhary (Environmental Specialist): Naval is working as

Principal Consultant with ERM India in the Impact Assessment and

Planning (IAP) division. He has master degree in environmental science

and engineering from Indian Institute of Technology, Bombay and more

than 9 years of experience in the field of environmental and social impact

assessment (ESIA), environmental and social due diligence, environmental

auditing, environmental permitting, air quality dispersion modelling,

noise prediction and shadow flicker assessment. His work experience

covers environmental assessment studies for a variety of sectors including

Industry Sector (thermal power plant, fertilisers, pharmaceuticals,

automobiles, oil and gas, hydropower, mining, steel, engineering, etc.);

renewable energy (wind and solar power); Infrastructure Sector (Multi-

Product SEZs, Sector Specific SEZs, Industrial Areas and Estates, and river

bank erosion management); Submarine Cables; & Linear Projects

(Highways, Railways). He has worked in varied geographies, which gives

him a wide international perspective on issues. In last five years he has



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worked in Bangladesh, United Arab Emirates, Liberia, Nigeria and

Pakistan (desk-based).

Subhradeb Pramanik (Health & Safety Specialist): Subhradeb Pramanik

holds a Master Degree in Environmental Science and is presently working

as a Senior Consultant at ERM India in Kolkata office. He has about 9

years of experience in field of EHS audits, due-diligence, site assessment

and environmental impact assessments (EIAs) studies. Over the years he

has played a key role in managing numerous projects in oil & gas, roads,

mining, chemical, manufacturing, power and transmission sector. His

primary focus and experience lies in the development and implementation

of management systems, compliance monitoring, regulator reviews and

EHSS performance audits. Apart from this he has also worked as a key

EHS auditor for both Inogen Group and ARCADIS SENES India to

support the implementation of their Due Diligence and Phase I & 2

programs for nearly 50 projects for key multinational clients in textile,

metallurgical, chemicals and building sector.

Tufail Khan (Social Specialist): Tufail Khan is a Consultant with the

Impact Assessment & Planning Practice Team at ERM India Pvt Limited.

Over his 10 years of experience, Tufail have worked with SENES

Consultants India Pvt (A Canadian Environment Consultancy firm),

THDC India Ltd (A Mini Ratna PSU in Hydro power generation projects)

and currently with ERM India Pvt Ltd at Gurgaon. Carrying out studies

related to Social Impact Assessment and Resettlement & Rehabilitation

have been his core functional areas throughout his total experience.

Construction projects, Hydro power project, Thermal power projects,

Wind power projects, solar power projects, mining projects etc. are the

sectors wherein he has been actively involved and worked. Tufail has also

long experience of implementing Resettlement & Rehabilitation action

plan and working with communities at very grass root level.

1.5 APPROACH TO THE COMPLIANCE ASSESSMENT

The following approach and methodology was adopted for the current

assignment.

Kick-Off Meeting

The site visit began with a kick off meeting with the Project Management &

site EHS&S personnel at Sylhet. The kick off meeting helped in developing

understanding on the current status of the Project implementation and

developments at the site. The ERM team also explained the purpose of the

assignment as well as shared the approach and key activities that were

planned in the course of the audit.

Documents Review

The relevant Project documents pertaining to the EHS and social compliances

were reviewed at the site. This was aimed at understanding the ongoing



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implementation, record maintenance, internal monitoring and reporting and

mandatory regulatory compliances required for the project. Key documents

reviewed include:

a) ESIA Report of the Project (July 2014 – 7th Draft);

b) Environment and Social Monitoring Report prepared by BCAS (February

2015);

c) Environmental, Health, Safety & Social Monitoring Plan (SBIIPCL-EHS-

007) prepared by SBIIPCL;

d) CAP Status and Comments spreadsheet;

e) SBIIPCL Project Legal Register;

f) SBIIPCL EHS and Social Policies for Operations:;

g) Records of online and manual stack emissions monitoring, ambient air

and noise monitoring, surface, ground water and treated effluent sampling

and analysis;

h) Environmental & Social Management & Monitoring (ESSMP) Compliance

Status for Constructions as prepared by BCAS (February 2016);

i) Bird Survey Report dated December 2015;

j) Monthly Environmental Performance Report as submitted by SBIIPCL to

Department of Environment (DoE), Bangladesh for Jan 2016 and Feb 2016;

k) Report on the Monitoring the Fisheries Conditions for the Impact Zone of

SBIIPCL project prepared by Dr. Md. Monirul Islam (February 2016);

l) Copies of EHSS Procedure for Project Operations;

m) Accident & Incident Register;

n) Chemical Inventory Sheet maintained by NEPC;

o) Sample inspection checklists of lifting machines/equipment;

p) Sample set of Work Permits;

q) Sample set of Safety Training Records;

r) Sample set of Weekly EHS Inspections;

s) Annual EHS Training Calendar;

t) Sample copies of HSE meetings;

u) Sample copies of Monthly Reports for Operations;

v) NPEC-S Health Certificate Register;

w) Renewed license copies of factory, Carbon dioxide, Diesel and Hydrogen

storage;

x) Mock drill reports dated 11 February 2016 and 21 December 2015;

y) Social Monitoring Report by BCAS (February 2016);

z) Current status of implementation of livelihood restoration programme

shared by SBIIPCL;

aa) Stakeholder Engagement Plan;

bb) Socio-Economic Impact Assessment, Resettlement Action Plan and

Livelihood Restoration Framework Document, prepared for BCAS for IFC;

cc) HR Manual of the M/s. NEPCS (the Chinese contractor engaged for O&M

of the plant);

dd) Personal files, salary sheets of the employees and contract workers of M/s.

NEPCS;

ee) Legal Register, Human Resources (HR) Policy and Procedures of Summit

Group;



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ff) Hazard Identification and Risk Assessment (HIRA) analysis

gg) Grievance Management Process and Records

Site Visits and Physical Verification

The EPC Contractor has recently completed the necessary construction works

regarding operation of combined cycle power generation – only minor

accessory construction related activities are now being done. Single cycle

operation of the power plant commenced from 6th June 2015 with COD for

combined cycle operations being declared on 28th December 2015. For

operations SBIIPCL has engaged China Northeast Electric Power Engineering

and Services Co. Ltd (NEPC-S) as the Operations and Maintenance (O&M)

Contractor.

The ERM team accompanied by the representatives of the project team

undertook site visits of the key project components to assess the status and

compliance with respect to EHS and social/labour issues and legal

obligations. During the site visit, the team made physical and visual

inspection/verification of the minor construction activities and on site

management of EHS and labour issues related to operations. This was

followed by visits to the operation areas and the consultations with the project

affected communities. The different activities undertaken during the course of

site visits included:

1. Discussions and Interviews: The team conducted detailed discussions

and interviews with the site personnel, contractor representatives, and the

operations workers to understand the on-site management of EHS issues,

compliance to labour laws, working conditions and facilities available at

site to these workers and satisfaction levels (of the workers and

contractors) or any issues/concerns at the site. Discussions were also

undertaken with the relevant personnel of the O&M contractor (China

Northeast Electric Power Engineering & Service Co. Ltd. or NEPC-S) and

sub-contractors employed to understand and assess the environmental,

health and safety and labour compliance and its management at the site.

2. Detailed Discussion with the communities and Community

Development Officer (CDO) of SBIIPCL: The ERM team had discussions

with the PAPs who were imparted LRP trainings, the NGO (IDEA) hired

for implementation of LRP and other local community members. The

discussions included the following:

a) Perception of the project affected families (PAFs) on the

implementation of LRP programme, seed money distribution,

compensation package, rehabilitation measures, other welfare

initiatives and issues surrounding them, if any;

b) Any legacy issues or open issues surrounding land acquisition,

resettlement etc.



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c) Community engagement activities by the CDO and perception of the

locals on these engagement interventions;

d) Progress on livelihood restoration related intervention carried out by

the project and CDO for the project affected families;

e) Understanding vulnerability of the project affected persons;

Close Out Meeting

A close out meeting was held on 28th February 2016 with the Senior

Management Team at SBIIPCL Corporate office in Dhaka. ERM briefed the

Senior Management with the key observations and findings based on the site

visit, discussions with the site personnel and contractors and review of the

relevant documents and sought their responses to the observations/findings.

The CAP and ESAP compliance status, identified gaps and actions required to

close the gaps identified were also discussed during this meeting with the

Senior Management. Some of the newly identified issues, associated with

project operations were also briefed during the closing meeting.

Reporting

Information from various sources and direct observations made by ERM have

been collated and compared against the reference framework.

1.6 LIMITATION

The report is based on information provided to ERM before, during the site

visit and post the site visit. The findings and observations made herein are

based on application of professional judgement. The findings should be

viewed in the context of the applicable scope and objectives of the study and

the limitation on time and resources made available to the consultants for the

successful completion of the study. The Compliance Assessment was based on

readily available information/ documentation, visual reconnaissance, and

management interviews in course of site visit. Kindly also note that the scope

of work did not include any sampling, analysis of environmental media,

collection of primary data, engineering design or development of technical

specifications or cost estimates among others.

ERM is not engaged in consulting or reporting for the purpose of advertising,

sales promotion, or endorsement of any client interests, including raising

investment capital, recommending investment decisions, or other publicity

purposes. Client acknowledges this report has been prepared for their and

their clients’ exclusive use and agrees that ERM reports or correspondence

will not be used or reproduced in full or in part for such purposes, and may

not be used or relied upon in any prospectus or offering circular. Client also

agrees that none of its advertising, sales promotion, or other publicity matter

containing information obtained from this assessment and report will mention

or imply the name of ERM.



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Nothing contained in this report shall be construed as a warranty or

affirmation by ERM that the site and property described in the report are

suitable collateral for any loan or that acquisition of such property by any

lender through foreclosure proceedings or otherwise will not expose the

lender to potential environmental or social liability.

1.7 LAYOUT OF THIS REPORT

The report has been prepared in the following layout:

Section 1: (this section) provides a background of the assignment,

objectives and scope of work, approach and methodology

along with limitation of the review and report.

Section 2: Project Appreciation and Current Status of the Project

Section 3: Summary of Key Observations

Section 4: Compliance Status of the CAP & ESMMP and IFC ESAP

Section 5: EHS&S Regulatory Compliance Assessment

Section 6: Social Audit Compliance Status

Annex A Photo Documentation



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2 PROJECT APPRECIATION AND CURRENT STATUS OF THE PROJECT

2.1 THE PROJECT

The project of 341 MW gas-fired Combined Cycle Power Station, is being

developed by Summit Bibiyana II Power Company Limited (SBIIPCL) by

installing one Gas Turbine (GT), one Heat Recovery Steam Generator (HRSG)

and one Steam Turbine (ST). Gas supply for the Project will be from Bibiyana

Gas Field and will be supplied by the Gas Supplier (i.e. JGTDSL). Power

generated by the Project will be evacuated through an existing 230 kV

transmission line of the PGCB.

A Request for Proposal (RFP) was issued by Power Cell (the Power

Division of the GoB Ministry of Power, Energy and Mineral Resources) on

3rd May 2010 (and subsequently amended on 2nd September 2010) for a

sponsor to develop a 330-450 MW Combined Cycle Gas Technology

(CCGT) power station at Bibiyana on a ‘build, own and operate’ basis. The RFP was signed by SBIIPCL on 6th September 2010 and in May 2011

SBIIPCL signed:

o Implementation Agreements (IAs)with the GoB and the Power Grid

Company of Bangladesh (PGCB);

o Power Purchase Agreements (PPAs) with the BPDB;

o Land Lease Agreements (LLAs) with the BPDB; and Gas Supply

Agreements (GSAs) with the Jalalabad Gas Transmission and

Distribution System Limited (JGTDSL).

In addition, an Engineering, Procurement and Construction (EPC) contract

was signed by SBIIPCL with a joint venture comprising the First Northeast

Electrical Power Engineering Co. and Northeast China International

Electric Power Corporation (herein referred to as ‘the EPC Contractor’) on 14th November 2012 and full notice to proceed (FNTP) was given on 25th

January 2013.

2.2 PROJECT DEVELOPER

The project developer for the Bibiyana II Gas Power Project is Summit

Bibiyana II Power Company Limited (SBIIPCL), which was incorporated in

Bangladesh on 21st December 2010, as a joint venture of Summit Corporation

Limited (SCL), which was formerly known as Summit Industrial and

Mercantile Corporation (Pvt.) Ltd.) and GE Energy LLC, a wholly owned

subsidiary of General Electric Company. SCL is part of the Summit Group, an

established financial entity and is experienced in the efficient management,

operation and maintenance of similar facilities in Bangladesh. Summit Group

is one of the largest Bangladeshi conglomerates and the industries under this

conglomerate include communication, trading, energy, power and shipping.



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2.3 CURRENT PROJECT STATUS

2.3.1 Main Project component

The current status of the project can be summarized as follows:

The single cycle operation of the power plant commenced from 6th June

2015.

Since 28th December 2015, combined cycle COD was achieved.

In the meantime, SBIIPCL hired China Northeast Electric Power

Engineering and Services Co. Ltd (NEPC-S) as the Operations and

Maintenance (O&M) Contractor. O&M Contractor will start activities after

handing over the responsibilities to them by the EPC Contractor.

EPC Contractor is still responsible for completion of any pending work

under the EPC contract as well as to operate the plant for two more years

as part of construction guarantee/warranty with limited staffs.

Table 2.1 below depicts important dates and timelines for SBIIPCL Project:

Table 2.1: Key Timelines – SBIIPCL Project

S. No. Particular Date

1 Date of signing Implementation Agreement (IA) 12th May 2011

2 Date of signing Power Purchase Agreement (PPA) 12th May 2011

3 Date of signing Gas Supply Agreement (GSA) 12th May 2011

4 Date of Signing Land Lease Agreement (LLA) 12th May 2011

5 Contract effective date 12th May 2011

6 Implementation period as per contract 31 Mar 2013 - 31 Dec 2015

7 Required Simple Cycle Operation Date (RSCOD) 31 Dec 2014

8 Simple Cycle Operation Date 06 June 2015

9 Date of Financial Closure 08 July 2015

10 Required Commercial Operation Date 31 Dec 2015

11 Combined Cycle COD 28 Dec 2015

Source: SBIIPCL

2.3.2 Associated project facilities

Regarding work progress on the project associated facilities (not being

constructed or financed by SBIIPCL) viz. gas pipeline, switchyard, access road,

transmission line etc. an update has been provided in Table 2.2 for reference.

However, as clearly specified by the Borrower, the construction as well as

operation and maintenance of these components rests with other parties (i.e.

government entities).

Table 2.2 Project Associated Facilities – Status

S. No Facility* Area (acres) Responsibility Status (Work Completed)



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S. No Facility* Area (acres) Responsibility Status (Work Completed)

1 Switchyard 26.0 PGCB 07 March 2015

2 Site Access Road 2.0 BPDB 29 November 2014

3 Gas Pipeline 8.5 JGTDSL 12 April 2015

4 Construction Laydown

Area

14.0 BPDB/SBIIPCL August 2013

5 Transmission Line 70 meters to

switchyard

PGCB 28 February 2015

*Components not under financing by Lenders

Source: SBIIPCL and BCAS

The details of the project operational status and EHS performance for January

2016 have been presented in Table 2.3 and 2.4 respectively.

Table 2.3 Operational Performance – January 2016

S. No. Particular Month to Date Year to date

1 Gross Generation, (MWH) 151060.19 151060.19

2 Auxiliary Consumption (MWH) 5127.803 5127.803

3 Total Export, (MWH) 146407.6 146407.6

4 Total Import, (MWH) 475.167 475.167

5 Natural Gas Consumption (As per GT’s RMS meter) (MSCF)

985292536 985292536

6 Availability (%) 73.48 73.48

7 Equivalent Forced Outage Factor (EFOF) (%) 4.858 4.858

8 Capacity Factor (%) 61.53 61.53

9 DM production (m3) 4659 4659

10 Clarified water production (m3) 152438 152438

Source: NEPC-S Monthly Report for January 2016

Table 2.4: EHS Performance – January 2016

S. No. Particular Month to Date Year to date

A Environment

1 Quantity of NOx Emission (kg) 425.78 425.78

2 Quantity of CO Emission (kg) 861.35 861.35

3 Quantity of effluent (m3) 5461 5461

4 Quantity of sludge (m3) 0 0

5 Quantity of Oily waste (liters) 0 0

7 Generation of medical waste (kg) 2 2

B Health & Safety

1 Fatality 0 0

2 Lost Time Accident 0 0

3 First Aid Cases 0 0

4 Near Miss 0 0

Source: NEPC-S Monthly Report for January 2016



12

3 SUMMARY OF KEY OBSERVATIONS

The COD for combined cycle operations declared as on December 2015, efforts

have been made by the ERM audit team to assess project EHSS performance

for operations stage and also to verify compliance status of any pending EHSS

related actions from construction stage. The EHSS observations/findings

made in this regard have been summarized in the subsequent sections below.

3.1 ENVIRONMENTAL, HEALTH & SAFETY

The observations made by the ERM audit team with respect to the project

environmental, health and safety aspects as outlined in the CAP, ESMMP,

ESAP and applicable local and national regulations have been tabulated under

the various sub-sections below.

3.1.1 Legal Register

The Environmental, Health, Safety and Social Compliance Audit Report

prepared by ERM dated November 2014 suggested development of a legal

register for both construction and operations phases. SBIIPCL has prepared a

legal register for ensuring timely approval or renewal of all legal compliances

of the project with respect to both construction and operations. Table 3.1

below provides status of the various permits/licenses as applicable for

construction and operational phase of SBIIPCL.



13

Table 3.1 EHS License/Permit Compliance Status for Construction & Operations Phase

S. No. Permit/License Issuing Authority Issue date Valid until Status

1 Trade License Aushkandi Union Parishad 1st July’15 30th June’16 In compliance

2 License for use of river water/

foreshore/jetty

Bangladesh Inland Water

Transport Authority (BIWTA)

7th Oct’15 28th Aug’16 In compliance

3 Site Clearance Certificate Department of Environment

(DOE)

25th Jun’14 28th May’15 No renewal required as the project has

already obtained Environmental Clearance

(EC) certificate from Department of

Environment (DoE), Bangladesh.

4 Environment Clearance

Certificate

Department of Environment

(DOE)

17th June’15 16th June’16 In compliance

5 Permission for acid and alkali

storage

Department of Explosives

(DOEXP)

9th June’15 30th Jun’16 In Compliance

6 Fire Permit Fire Service and Civil Defence 8th June’15 30th June’16 In compliance.

7 License for storage of Carbon

Dioxide


(DOEXP) 18th June’15 31st Dec’17 In compliance

8 License for Diesel Storage

(4KL capacity)



9 License for Diesel Storage

(1.36 KL capacity)


(DOEXP)

- - SBIIPCL is yet to obtain license for the

additional diesel storage of 1.36 KL near the

fire pump house.

10 License for generation of

Hydrogen and storage of

Hydrogen inside plant



11 License for installation of

High pressure Gas pipeline

inside power plant


(DOEXP) 13th May’15 Entire project life

cycle

In compliance

12 License of Boiler (IP, HP & LP

Drum & Auxiliary Boiler )

Office of the Chief Inspector of

Boilers (CIB)

14th June’15 13th June’16 In compliance.



14

S. No. Permit/License Issuing Authority Issue date Valid until Status

13 Permission for Stack Erection Bangladesh Air Traffic Services

(BATS)

16th Jun’14 Entire project life

cycle

In compliance.

14 License for Power Generation Bangladesh Energy Regulatory

Commission (BERC)

29th June’15 28th June’16 Provisional license obtained for generation

of 349 MW power (gross) [GT 228 MW & ST

121 MW] in combined cycle mode.

15 Factories License Deputy Chief Inspector of

Factories

21st July’15 30th June’17 In compliance.


#0265459/I10515 – 3RD EHS&S COMPLIANCE ASSESSMENT – CONSTRUCTION PHASE JUNE 2016

31

3.1.2 Environment Linked Observations

Some of the key observations linked to the Environmental performance of the

project are mentioned below:

A legal register for the project has been prepared by SBIIPCL covering

both construction and operational EHSS requirements.

o However updation of the legal register or a separate tracking

mechanism to include the conditions specified in the relevant

permits/license and applicable regulations are still pending.

o It is considered to be important, with the project now in operational

stage and requirement of effectively tracking and complying with the

legal requirements for this phase.

A two day bird survey has been undertaken by SBIIPCL in December 2015

by engaging a third party expert. The study focused on five Beels (water

bodies) within the project study area with a total of 43 species being

recorded.

o The study report does not indicate any change/disruption of

migratory bird movement or habitat due to the project;

o The report further recommends that an annual monitoring is

undertaken to comprehensively assess the potential impact on

migratory bird habitat, if any throughout the lifecycle of the project.

o The subsequent surveys to be undertaken to be focusing on the

transmission line stretch (~70m) and outcome utilised for development

of an Avifauna Management Plan, if required, based on the assessment

of any impact on the avifauna due to the transmission lines.

ESMMP – Operations Phase prepared as part of the ESIA study has been

shared with NEPC-S.

o The periodic compliance monitoring/verification of ESMMP

implementation yet to be initiated by SBIIPCL.

SBIIPCL has installed and is operating a Continuous Emission Monitoring

System (CEMS) to continuously monitor pollutant (CO, NOx, PM10, SO2)

concentration in flue gas emissions.

o The results were found to be in compliance with emissions standards

(well within the limits) as specified in the IFC EHS Guidelines for

Thermal Power Plants and Bangladesh ECR, 1997. However in most

cases the pollutant concentration were not found to be expressed in

units referred in the aforesaid standards. Same was communicated to

the CEMS in-charge and corrective action been taken.

No provision of CO2 emission monitoring is available in CEMS and hence

actual CO2 emission monitoring and annual reporting is not possible. This

was discussed during the closing meeting and the SBIIPCL management

had mentioned that GHG emissions will not be monitored but calculated

and based on the fuel consumption and plant performance.



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SBIIPCL has installed 3 continuous ambient air quality monitoring stations

(CAAQMS), which are installed on the top of dormitory, cooling water

pump house and cooling tower.

o The system is operational since December 2015. Review of the

monitoring results indicated that the SO2 concentrations are observed

in the range of 40 to 80 µg/m3 and PM2.5 levels are higher than PM10

levels in all the locations, which are not matching with the testing done

during the calibration period. Furthermore the levels of SO2 during the

conventional monitoring were in the range of 10 – 18 µg/m3. Re-

calibration of the CAAQMS is required.

With project in operation from December 2015 ambient air and noise

quality monitoring at the village locations were found to be pending. As

per the Operations ESMMP such monitoring is required to be undertaken

within three months of combined cycle of operations. In house monitoring

of noise is undertaken by NEPC-S at 8 locations within the project

premises and the results found to be in compliance with the Bangladesh

ECR, 1997 standards.

For treated effluent, in-house monitoring by NEPC-S is done for pH,

conductivity and temperature prior to its discharge into the Khusiyara

River. The results were found to be in conformance to the Bangladesh

ECR, 1997 discharge standards; however analysis of other key parameter

viz. BOD, TSS, TDS and Oil & Grease were not being performed due to

limitations with respect to the availability of appropriate analytical

equipment at the NEPC-S project laboratory at this stage. Quarterly

monitoring of treated effluent is also being done by engaging a third party

laboratory; however it does not encompass all parameters as outlined in

the Inland Water Discharge Standard of Bangladesh ECR, 1997. It was

further confirmed by the Summit Management that all other parameters

will be covered through third party monitoring.

SBIIPCL has not made any provision of installation of oil water separators

for storm water drainage system. This is assessed to be justified based on

the fact that the project hazardous material and waste storages are covered

with any waste/chemical spillages being channelized through a dedicated

underground drainage system to a waste water collection basin for

subsequent treatment.

For operations SBIIPCL has developed a Waste Management Procedure

for both hazardous and non-hazardous waste streams to be generated

during operations.

o Review indicates the procedure to be generic in nature and lacking

specific requirements with respect to storage, handling and disposal of

specific waste categories/streams.

o Also NEPC-S is supposed to commence with maintenance of a waste

inventory and deployment of authorized waste contractor for disposal

of hazardous waste streams to facilitate effective implementation of the

procedure. However, visit to the hazardous waste storage area, on the



31

back-side of cooling towers is not fulfilling this requirement. The

hazardous waste storage area is on top of the storm water drainage

network and there is no secondary containment for capturing any

spillage from this area. Currently there are a number of openings

provided in this area, and any spillage from this area can directly reach

to the storm water drainage and can directly reach to the River.

SBIIPCL has developed a hazardous materials handling procedure

(Caustic and Acid Handling Procedure) for operations, however it is

limited to only acids and alkali storages and does not cover other

chemicals like hydrazine, ammonia, etc. being used for operations.

During visit to the acid and alkali storage area it was observed that display

related to warning signages and usage of appropriate PPEs were found to

be lacking. Further there exists no provision for spill kits at the aforesaid

storage area to control any accidental spillage during loading of the acid

and alkali tanks. Periodic inspection of chemical emergency response

equipment like eye wash station and showers were also found to be

lacking.

Regarding disposal of hazardous waste particularly used/waste oil NEPC-

S is in discussion with Lafarge Cement facility at Chatak with a waste

disposal agreement/contract yet to be signed. Further no plans is

presently available to manage disposal of other notifiable hazardous waste

streams viz. ETP sludge, discarded chemical containers etc.

For operations NEPC-S has deployed only two vehicles for which valid

certificate of fitness is available from Bangladesh Road Transport

Authority (BRTA) as required per the relevant provision of Bangladesh

Environmental Conservation Rules, 1997 and Motor Vehicle Ordinance,

1983.

An aquatic survey has been conducted by SBIIPCL by engaging a third

party expert in November 2015 to assess the limnological and fisheries

conditions for the impact zone of project. A total of 34 species of fishes

have been recorded from the study site during both peak and lean season

fishing which is comparable to the baseline.

Green belt development for the project site is still under progress and need

to be finalised on a fast track basis for execution based on available areas

for plantation. With respect to green belt development outside the project

boundary, survival rate of the planted saplings is found to be affected.

This is assessed due to lack of proper upkeep and maintenance with

contract of Zara Enterprise (the green belt maintenance) being expired on

October 2015.

3.1.3 Health & Safety Linked Observations

Some of the key observations on the health and safety aspects are as follows:

As recommended in the ERM Audit report dated 19 November 2015 the

inclusion of Lock Out Tag Out (LOTO) checklist and PPE requirement is



31

still found to be absent in the work tickets being issued for electrical work.

This is important as NEPC is temporarily involved in project operations

till it is being handed over by SBIIPCL to the Operations & Maintenance

(O&M) contractor i.e. NEPC-S.

Reportedly the facility operates lifting equipment’s in the form of gantry cranes and overhead cranes for which NEPC is maintaining the inventory;

however, it does not cover all the lifting machineries/ equipment.

Furthermore, the aforesaid equipment has not been subjected to thorough

examination by a competent person and a register of such examination

maintained in prescribed format as required under relevant provision of

Bangladesh Labour Law, 2006. With respect to operations NEPC-S has already developed a training

calendar for 2016 encompassing the following components:

o Power Plant Safety Rules and Permit to Work;

o EHS Policy and Procedures;

o Site Risk Assessment and Prevention Spill;

o Fire Equipment Facility and Fire Emergency Response;

o Heavy Equipment Operation Safety;

o Basic Electrical Safety;

o Hot Work Training and Authorization;

o Lifting Operation & Work at Height

o Confined Space Work Safety

o Safety Awareness;

o Oil and Chemical Spillage Prevention;

o Hazardous Material and Waste Management Training;

o First Aid;

o PPE and Safety Equipment Use Training;

o Chemical and Flammable Material Handling; and

o Compressed Gas Cylinder Safety

As per the aforesaid calendar training on Power Plant Safety Rules; Permit

to Work and EHS Policies & Procedures were scheduled for January 2016.

However implementation of the said training programs is still found to be

pending.

SBIIPCL has prepared an Emergency Response Procedure (SBIIPCL-EHS-004)

for operations and shared the same with NEPC-S for implementation. The

procedure has identified response measures for the following emergencies

– fire and explosion, medical cases, earthquakes, bomb threat and severe

weather phenomenon. However review of the procedure indicates the

following key gaps/deficiencies:

o Roles and responsibilities of the Emergency Response Team (ERT) has

not been defined;

o Emergencies has not been classified according to the risk significance

including response flow for controlling each emergency type;

o Interfacing with offsite emergency responders lacking;

o Contact details of both onsite and offsite emergency responders have

not been incorporated in the procedure; and



31

o Details of resources available for emergency response and control;

o Requirements related to worker training; induction of new workers

and visitors not covered; and

o Disclosure of the potential emergencies from project operations

including control measures with the surrounding communities has not

been covered in the said procedure.

SBIIPCL along with NEPC-S need to update the Emergency Response

Procedure for operations to include the components related to emergency

classification; defining ERT roles and responsibilities; resource availability;

interfacing with offsite emergency responders; contact details of

emergency responders; induction for workers/visitors; training on

emergency response and community disclosure of potential

emergencies/risks.

SBIIPCL has identified the cooling tower, boiler area and central control

building as the area of concerns (AOCs); however preparation and

implementation of a safety action plan for the aforesaid AOCs is still

under progress. With project under operation from December 2015 the

SBIIPCL to ensure completion of the safety action plan for cooling tower,

boiler area and central control building on a fast track basis.

NEPC-S has commenced with monthly site safety inspection from

December 2015 with findings documented in a specific format. However

this report is not being shared with SBIIPCL.

Induction training to visitor and operations workforce has not been

undertaken by NEPC-S as required under the ESMMP. This is important

given the combined cycle operations have already commenced from

December 2015. It is reported that till now this is being done by SBIIPCL.

For project operations, NEPC-S – the O&M contractor has already

developed a set of about 45 management procedures and standards

including Site EHS Plan for the year 2016. This has been released by

NEPC-S for implementation vide letter dated 6 February 2016. However

NEPC-S is yet to develop a consolidated EHS plan for operations

encompassing EHS policy, objectives, procedures, training requirements,

performance indicators etc. to demonstrate compliance to the ESMMP

requirements.

In line with ESMMP requirements an EHS Committee has been formed

comprising representatives of both SBIIPCL and NEPC-S. The Committee

meeting is scheduled on a monthly basis and is being chaired by the

SBIIPCL Plant Manager.

Emergency mock drills are being periodically conducted by SBIIPCL in

coordination with NEPC-S; however drill records do not reveal full

participation of all the operations workers and personnel.

Review of health register of O&M staff indicates that initial medical

examination is limited to only 72 personnel as compared to the total

operational workforce comprising of 96 personnel.



31

SBIIPCL has not initiated the Quantitative Risk Assessment (QRA) study

to assess and evaluate the operational risks/hazards associated with the

project, which was agreed to be completed within 3 months of the COD.

This is identified to be important taking into account the plant has

commenced operations in December 2015 and also given the output of the

study is to be utilised to formulate an Emergency Response Plan (ERP).

SBIIPCL has already engaged Life and Fire Safety Expert from NEPC-S in

September 2015 for assessing the fire safety preparedness and

subsequently develop a Corrective Action Plan (CAP) to address any

gaps/deficiencies. However based on discussion with NEPC-S it is

understood that fire safety review of the project is likely to commence by

end of March 2016. With COD for combined cycle already declared on Dec

2015 the assessment of project fire safety risks and preparedness need to be

undertaken by the Life and Fire Safety Expert on a fast track basis to meet the

suggested timeline. This is to be followed by preparation of a CAP in consistent

with the WB General EHS Guidelines.

3.1.4 EHS Regulatory Compliance Status

Environmental Performance Report (EPR) has been prepared and

submitted to DoE on 3 Feb 2016 and 4 Jan 2016 respectively. However

review of the reports indicates that the EPR though bear the EC conditions

however, the compliance status of the same has not been discussed and

elaborated.

The facility has developed a format for documenting the environmental

monitoring information for operations and the same has been submitted to

DOE Head Quarter in Dhaka and Sylhet Divisional Office on 4 January

2016. Review of the format reveals the following gaps viz. the ambient air

results not expressed in units; error in the PM10 and PM2.5 standards being

referred as part of Bangladesh ECR, 1997 etc.

As per the condition of boiler registration permit, boiler to be operated by

certified boiler operator. Compliance status still need to be assessed based

on availability and review of the certification copy of the personnel

involved in boiler operations at the plant. This matter was discussed

during the closing meeting and Summit has confirmed that no such

permission is required; however, as this is part of the condition imposed in

the permit, a clarification is required to be taken from the authority.

SBIIPCL is yet to establish a Worker Participation Fund and a Workers

Welfare Fund to comply with the provision of Bangladesh Labour Law

and condition specified in the Factories License.

Visual observation did not reveal the presence of any vent pipe or

approved relief valves for the HSD storage tanks to prevent any

generation of pressure from accumulation of dangerous vapour/fumes.

However this needs to be confirmed based on review of the design

document of the tanks.



31

As reported the diesel storages at the facility is periodically refilled by

deploying a third party vehicle carrying diesel in bulk. To this regard the

O&M contractor has not verified the availability and validity of the license

issued by Department of Explosives to the vendor for such bulk

transportation of petroleum.

Diesel at the factory is being stored in 3 tanks (2 X 2KL capacity each and 1

X 1.35KL capacity); however the capacity has not been conspicuously

marked on the tankages.

Earthing was not available for the diesel storage tank of capacity 1.36KL

located near the fire pump house.

The facility currently operates five (5) overhead travelling cranes which

are being subjected to periodic internal examination by NEPC. The records

of such examination were found to be maintained in accordance to a

format specified in the project EHS Plan. However prior to putting these

machineries in use for first time in this facility no examination has been

performed by engaging a competent person for specifying the safe

working load. It was reported that all the equipments were commissioned

and checked by OEM, who manufactured this and after one year of

operation these will be due for inspection by competent people.

The facility operates eight (8) hoist and two (2) lifts which have not been

subjected to initial examination by a competent person prior to their first

time in use at the facility. No periodic examination is also being performed

for the aforesaid hoist and lifts as required under Bangladesh Labour Law

provisions. It was reported that all the equipments were commissioned

and checked by OEM, who manufactured this and after one year of

operation these will be due for inspection by competent people.

The first aid boxes at the facility were found to be kept in charge of

certified first aiders from SBIIPCL and EPC contractors. However with

project in operations from December 2015 no workers from the O&M team

has been identified and trained on first aid treatment as required under

the Bangladesh Labour Law provisions.

The facility operates pressure vessels in the form of air compressors,

boilers, hydrogen and carbon dioxide storage tanks. However since there

installation in 2015 these pressure vessels have not been subjected to

examination (both internal and external) including hydraulic testing by a

competent person and records maintained in prescribed format (Form No.

10). Further the metal plate on the air compressors near turbine building

were not found to bear the following information viz. design pressure and

date of first and subsequent hydrostatic testing. This is required under

Rule 6 of the Pressure Vessel Rules, 1995.

For operations a dedicated first aid room is available at the factory which

is being periodically visited by paramedical officer/male nurse in

comparison to qualified medical practitioner required as per Factories

regulation. Also as observed the first aid room is not found to be equipped

with resources as specified in the Factories Rules provisions. However, it



31

was confirmed by the management that there is a local doctor available on

call, who is also providing his services in the company supported

community health centre. There is no provision of a dedicated ambulance

at site; however it was confirmed that a dedicated vehicle will always be

available at site to address any serious case of accident or sickness to the

nearest medical facility.

Insulated rubber mats were not provided near the high/medium voltage

electrical panels at the turbine building, fire pump house and electrical

room of the CCB building to serve for protection against electric shock.

Further display of danger signages on the electrical panels and instruction

for restoration of persons suffering from electrical shock was lacking in the

CCB electrical room.

3.2 SOCIAL OBSERVATION

3.2.1 Manpower engagement

Present strength of workforce employed in SBIIPCL power plant could be classified under three types which include:

SBIIPCL’s own staff deployed at site; Employees and contractual workers engaged by M/s. NEPC – Contractor

hired for construction phase; and

Employees and contractual workers engaged by M/s. NEPCS – Operation & Maintenance Contractor

SBIIPCL Staff

Presently six staffs of SBIIPCL are posted at site that includes Project Head

(General Manager), Community Development Manager (CDM), Assistant

Manager (EHS), Operation Manager, Maintenance Manager and a Site Officer.

Workforce engaged by M/s. NEPC (EPC contractor for construction phase)

Workforce size of M/s. NEPC as on 27th Feb 2016 was reported to be 156. This includes all categories of the employees and workers engaged by M/s. NEPC.

Table 3.2 Breakup of manpower engaged in Plant by M/s. NEPC

S. No Worker category Number in ERM’s 3rd

EHS&S Compliance

Audit (Sept 2105)

Number in ERM’s 4th

EHS&S Compliance

Audit (27th Feb 2016)

1 Chinese staff of NEPC 146 65

2 NEPC contracted staff* 7 30

3 NEPC contracted workers 20 0

4 Labour supplied by M/s. Nation

Trade or Suhag (sub-contractor)

76 22

5 Labour supplied by M/s. Shotota

Enterprise (sub-contractor)

34 15

6 Labour supplied by M/s. Jui

Enterprise (sub-contractor)

32 11



31

S. No Worker category Number in ERM’s 3rd

EHS&S Compliance

Audit (Sept 2105)

Number in ERM’s 4th

EHS&S Compliance

Audit (27th Feb 2016)

7 Labour supplied by M/s. ISS

(security sub-contractor)

18

8 M/s. Raisa 3

9 M/s. Ali Enterprise 12

Total manpower 333 156

Source: NEPC and SBIIPCL site officials

Note: * NEPC contracted staff includes 14 security staff, 5 welder, 7 kitchen staff, 1

Translator, 1Doctor & 2 Driver

Workforce size engaged by NEPC in SBIIPCL plant has further reduced to 156

in ERM’s visit as on 27th Feb 2016. Key activities of construction phase are over

now. At present, plant is fully operational.

Workforce engaged by M/s. NEPCS (Operation & Maintenance Contractor)

Plant has become fully operational now and is being managed by a Chinese

Operation & Maintenance (O&M) contractor, M/s. NEPC. Current strength of

M/s. NEPC as on 27th Feb 2016 was reported to be 93 that consist of 36

Chinese employees and 57 Bangladeshi employees and workers.

3.2.2 Payment of minimum wage and overtime by EPC contractor

Third social monitoring report of BCAS was submitted to SBIIPCL in Feb

2016. In this report, BCAS have presented its findings regarding minimum

wage payment of the contractual workers hired by EPC contractor (M/s.

NEPC) based on review of the salary sheet of the contract workers for the

month of October, November and December 2015. Key observations of BCAS

were;

Minimum wage rate of the construction workers is Tk 375 per day as per

prevailing minimum wage notification issued by Minimum Wage Board of

Government of Bangladesh 2013;

The EPC contractor (M/s, NEPC) have started paying at the rate of Tk 375

per day to the construction workers instead of the earlier rate of Tk 330 per

day;

Mostly construction workers hired by M/s. NEPC, have been engaged

through labour supply contractors;

Service charge of Taka 60 is deducted from daily wage rate of the

construction workers, which is paid to the respective labour suppliers. So,

actual minimum daily wage received by the sub-contracted labourers (i.e.

construction workers) is 315, which is below the minimum wage fixed by

the government.

ERM observed the same status on payment of minimum wage by the EPC

contractor while having discussion with SBIIPCL site management. On

overtime payment issue, it was observed that there is no more requirements

for engaging any worker for extra hours by EPC contractor.



31

This issue of minimum wage payment was raised to SBIIPCL corporate

management and their response was;

“In the month of December 2015, total 137 labors were mobilized by EPC contractor. Among them,

110 labors (80.29%) were paid atleast or above the threshold level (375 taka/day) and they were

directly engaged in construction work. The remaining 27 labors (19.71%), who were not attached to

construction works but doing some ancillary works, were paid below 375taka/day. In January 2016, 85 labors were present at the site; only 27 of them (31.76%) received payment atleast or above the threshold level (375 taka/day), and the remaining 58 labors (68.24%) were not paid minimum wage. According to HR dept. of NEPC (the EPC Contractor), up to the time till COD (28 December

2015), work load was more at the construction site. But, since January 2016, there remained

no construction work at site - the labours used to come at the site and staying for eight hours but

not doing much work which caused NEPC to pay payment less than the minimum wages. However,

the overtime does not exist after the construction was over.

Having said above, our conclusion is that we further talk to the EPC Contractor and make them

compensate the concerned labourers with the remaining payment to maintain the

minimum standard wage. In case they don't pay, we will locate the labourers and compensate

them with the due money to maintain the threshold (min. wage rate) and deduct the money from

the payables to EPC Contractor, or we expend the money from our Contingencies”.

Based on above mentioned observations, it could be concluded that the issue

of non-compliance w.r.t payment of minimum wage still persist.

3.2.3 Updated HR policy of SBIIPCL

ERM was shared an updated HR Policy document of SBIIPCL in the 2nd

EHS&S compliance audit visit (April 2015) which was reportedly undergoing

through the internal approval process then. The said policy had included the

additional provisions such as provision of non-tolerance of child labour &

forced labour, non-discrimination policy, anti-sexual harassment policy etc.; as

recommended in the initial EHSS Compliance Audit Report submitted by

ERM in November 2014. However in fourth E&S compliance Monitoring

visit, ERM was apprised that the updated HR policy document as shared in

the 2nd EHS&S compliance audit, has been declared redundant by SBIIPCL

management and it has adopted the HR policy of its parent company i.e.

Summit Industrial Mercantile Corporation (Pvt) Ltd. (SIMCPL) dated 11 June

2015. This matter was discussed during the closing meeting on 13th September 2015

with the Senior Management of SBIIPCL and ERM received an email confirmation

from the CEO of SBIIPCL on 28th September 2015 that the policy document will be

updated within 2 weeks with inclusion of all the above mentioned observations of

ERM.

ERM was apprised in 4th EHS&S compliance audit visit (Feb 2016) that

SBIIPCL has now adopted HR Policy of its parent company i.e. Summit

Industrial Mercantile Corporation (Pvt) Ltd, now called as Summit

Corporation Limited & Subsidiaries (SCL&S). Few additions have been made



31

in this HR policy manual document of SCL&S, based on ERM’s recommendation and this includes:

Policy on Non-employment of Adolescent & Children at Work;

Policy on Anti-harassment and Abuse at Work;

Anti-Discrimination Policy

HR Policy of O&M Contractor NEPCS

M/s. NEPCS has a defined HR policy in place. Key aspects of the policy cover

clarity on terms of employment which is defined in appointment letter of a

new employee, compensation and benefit policy, leave policy, Employee

transition policy, Grievance policy, Employee Training & Development Policy,

HIV/AIDS non-discrimination policy, Child & Forced Labour Prohibition

Policy, Non-discrimination policy, Anti-sexual harassment policy, Employees

Code of Conduct, Overtime Policy etc.

Manpower engaged by NEPCS could be classified into two categories.

The first category is of regular employee that includes their engineers and

other administration staff.

Another category is contract workers that include security guards, driver,

and kitchen staff. Review of appointment letter of these contract workers

indicates lack of clarity w.r.t. their terms of employment such as contract

period is not defined; leave detail is not properly described.

One of the clause in Overtime policy of NEPCS i.e. Clause no: 1.7.1.1 states

that ‘Company must compensate overtime by 1.5 times of the employees normal hourly basic salary for each hour worked’. This clause should be aligned with requirement of Bangladesh Labour law on overtime which

requires overtime hours to be paid @ twice of basic wage rate. Although

overtime payment to contract workers was observed to be aligned and being

paid @ double of basic wage rate.

3.2.4 R&R implementation status

The project required land for establishing power plant and associated facilities

which included construction laydown area, 2 km long access road, switchyard

area and an 8.8 km long gas pipe line.

R&R implementation: ADB’s financed Project Component

ADB’s finance is limited to the Power Plant area. There are 31 Project Affected Households (PAHs) for the 11 acre land

acquired for the power plant establishment. There were total 14 land

owners on 11 acre private land acquired for the power plant

establishment. Besides this, ESIA study for this project had identified 6

sharecroppers and 11 agriculture labourers whose primary source of

livelihood were dependent upon the piece of land acquired for this project.



31

Land compensation to 14 landowners has been paid by the concerned

government department. ADB had provisioned for providing one time

compensation of Tk 7,500 to each sharecropper PAH and Tk 8,000 to each

agriculture labour PAH to offset their economic loss. These payment have

been released by SBIIPCL already to all concerned sharecropper and

agriculture labour.

It was also provisioned to give Tk 2 lacs in addition to the land

compensation amount paid by government, to one of the PAH who

became landless after land acquisition for power plant. This amount was

disbursed in two instalments and it was informed that the affected

household invested the additional compensation amount in opening a

new grocery shop and was observed to be successfully running the shop at

present.

R&R implementation under IFC’s Financed Project Component

PAHs of the entire project components (including associated facilities) are

considered for Livelihood Restoration Programme as per Livelihood

Restoration Framework (LRF) of IFC.

SBIIPCL has got Livelihood Restoration Plan (LRP) prepared through an

external consultant and it was finalised after incorporating comments from

IFC. The details of the LRP, status of implementation of LRP and limitations, if

any are covered in Section below.

3.2.5 Livelihood Restoration Plan (LRP)

SBIIPCL has got a LRP study done by third party LRP Consultant. As reported

in ERM’s previous audit report, review of LRP reports indicates the following:

The document provides detail on the process of identifying & finalising

various trades suitable for skill enhancement training for the PAPs (Project

Affected Person); listing of the choice of 396 PAPs for different training

program;

Total 396 project affected persons (PAPs) from 514 PAHs were identified

for LRP;

21 PAHs out of the total PAHs (including PAHs of associated facilities)

didn’t opt for any livelihood training programme because they are economically well off Refer LRP Report prepared by external consultant for

SBIIPCL) for detail of 21 PAHs).

Listing of 14 PAHs & 58 Agriculture Labourers , who could not be traced

during the survey process;

The LRP covered listing of potential NGOs for LRP implementation

including key steps & strategies that are to be followed while

implementing LRP, key milestones of LRP implementation along with

proposed timeline etc.

Detailed review of listing of the PAPs for different training program

indicates that there was some problem in numbering of PAPs and hence 3

names were actually found to be missing. As the numbering was not



31

proper and hence the total number PAPs surveyed in LRP should be 393

instead of 396.

Cultivation over surface area along Gas pipeline route

LRP doesn’t cover the PAHs of Gas pipeline by citing their field observation that mostly landowners have resumed cultivation over the land where gas

pipeline is constructed. Remaining affected land owners will also start

cultivation as soon as water level on the field comes down.

As per SIA report, 168 land owners PAHs & 37 sharecroppers PAHs have

been affected by land acquisition for Gas pipeline.

Land owners PAHs have received compensation for their land loss and

allowing them to cultivate their land in post construction phase of Gas

pipeline will enable them to continue with their livelihood like before.

ERM visited the entire stretch of 8.8 km Gas pipeline route in current audit

period and observed that farmers have resumed cultivation over the

surface area of entire stretch of Gap pipeline route except for one location

(of about 200 to 250 meter long) in Manglapur Village and it was observed

that this portion of land was not properly levelled by the contractor who

was responsible for laying of pipeline and back filling the area. Based on

discussion with two farmers of Manglapur village and SBIIPCL, it was

noted that there were some protest by Manglapur farmers going on and

these farmers were not present at the time of back filling work by the

contractor. Now the concerned farmers of Manglapur village are expecting

this levelling work to be done by SBIIPCL, so that cultivation over this

land parcel could be resumed.

SBIIPCL management’s response to this issue was:

“Cost of levelling 200 m of length is not much of an issue for SUMMIT to undertake

such cost. As is already known, BPDB (Bangladesh Power Development Board) has

constructed the gas pipeline (including re-fill work) under supervision of JGTDSL

(Jalalabad Gas Transmission & Distribution Systems Ltd.) after acquisition of

required land and right-of-way. This is fully in knowledge of the people in and around

the gas pipeline track. The sensitivity here is - once we do such re-fill work in our

name, SBIIPCL will be exposed as an obligor and more people will ask for something

one way or the other. If we do the levelling work, we will have to do it by keeping

BPDB and/or JTDSL at the forefront as if they have done the levelling works before,

not SBIIPCL. So, the plan we have thought of is - we engage in dialog with BPDB and

JGTDSL and do the levelling work ourselves at our cost keeping them at the forefront

in case they are unable to do levelling work themselves (at their cost) for reasons

whatsoever. It can be done by the middle of April 2016, before the monsoon

starts”.

SBIIPCL have thus agreed for levelling work of remaining small portion of 8.8

km Gas Pipeline route in village Manglapur by keeping BPDB and/or JTDSL



31

at the forefront. Progress on implementation of this commitment will be

checked in next audit.

Progress on implementation of LRP training

One local NGO called as IDEA (Institute of Development Affairs) have been

appointed by SBIIPCL for LRP implementation.

13 feasible economic activities were identified in LRP and these includes

poultry and duck rearing, beef fattening, electrical house wiring, welding,

steed rod fabrication, snack food making and cooking, mobile servicing,

computer, business management, goat and sheep rearing,

agriculture/crop, vegetable and short duration fruit cultivation, tailoring

and masonry and house painting.

257 PAHs (Project affected households) have been covered under the

training programme completed so far Table 3.3 provides detail on

different training programmes attended by PAPs.

Table 3.3 Training completion status under LRP as on 15th March 2016

S. No Type of Training Number of

Participants

Training duration

1 Poultry

Batch 1 34 16th Nov 2015 to 25th Nov 2015 (10 days)

Batch 2 31 26th Nov 2015 to 5th Dec 2015 (10 days)

Batch 3 30 9th Dec 2015 to 19th Dec 2015 (10 days)

2 Sewing 7 16th Nov 2015 to 10th Dec 2015 (25 days)

3 Beef Fattening

Batch 1 26 7th Dec 2015 to 20th Dec 2015 (14 days)

Batch 2 30 22nd Dec 2015 to 31st Dec 2015 (10 days)

Batch 3 19 7th Feb 2016 to 17th Feb 2016 (10 days)

4 Agriculture 18 21st Dec 2015 to 31st Dec 2015 (11 days)

5 Computer 8 18th Jan 2016 to 17th Feb 2016( 1 month)

6 Business 25 28th Feb 2016 to 12th March 2016 (14 days)

Source: SBIIPCL site data

ERM had consultations with participants who were imparted livelihood

trainings by IDEA (NGO for LRP implementation). Key observations of the

consultations were as follows:

Maximum number of participants attended training on poultry and beef

fattening. These two activities are quite prevalent in these villages.

Training enabled the participants to manage poultry and beef fattening in

a better way. Participants learned about proper feeding process,

identification of disease and ways of tackling those diseases etc.;

There is no veterinary centre nearby the project area. In this scenario,

capacity building of the participants, especially in terms of identification of

disease and taking necessary action such as way of giving injection and

appropriate medicines etc, raised confidence among the participants for

poultry and beef rearing activity.



31

For computer training, majority of the participants were students,

studying in inter college or degree college. One of the participants has his

own computer centre, being used commercially. This computer training

raised his confidence for offering other services in his centre like internet

surfing, data entry etc.;

Total 228 PAPs have been covered under different training programmes.



30

provides summary of the training imparted by the NGO till Feb 2016.

Plan for remaining LRP training program

LRP training program for the remaining 172 PAPs is scheduled to be

completed by end of 2016. Proposed training calendar for the remaining PAPs,

is given in Table 3.5.

Table 3.4 Number of PAHs and PAPs covered under training programme conducted till

Feb 2016

PAH Type No. of

HHs as

per RAP,

LRF, SIA

No. of

HHs

covered

under LRP

HHs did not

participate in

LRP (not

interested/ not

traced)

No. of

HHs

covered

within

Decemb

er 2015

Number of HH

members

received

training within

December 2015

No. of HHs

covered

within March

2016

Numbe

HH me

receive

training

within

Februa

Landowners,

Sharecroppers,

Khasland

cultivators and

Resettlers

171 151 20 70 90 81 117

(These PAHs group

are eligible for Seed

Money)

Landown

ers: 86

(out of 171) (out of 171) (out of

151)

(out of 70 HHs) (out of 151

HHs)

(out of

HHs)

Khasland:

54

Sharecrop

pers: 16

Not Traced: 15

Resettlers:

15

Not Interested:

5

Agriculture labour 138 80 (out of

138)

58 (out of 138) 60 (out

of 80)

86 (out of 60

HHs)

76 (out of 80) 111 (out

(These PAHs group

are Not eligible for

Seed Money)

Total 294 205 89 130 176 157 228



31

Table 3.5 Tentative Work Plan for Remaining LRP training

S. No Activities Target Location 2016 Remarks

Fe

b

Ma

rch

Ap

ril

Ma

y

Jun

e

July

Au

gu

st

Se

p

Oct

o

No

v

De

c

1 Business training 10 days×1Batch Participant-25 Project office



4 Fishery training 1 Batch, Participant-7 Project office

5 Electric house wiring

training 25days×1Batch Participant-25 Sherpur

6 Masonry/house painting 25days×1Batch Participant-18 Sherpur

7 Mobile servicing training 25days×1Batch Participant-15 Sherpur

8 Welding training 25days×1Batch Participant-17 Sherpur

9 Snack food/cooking

training 25days×1Batch Participant-02 Sherpur

10 Follow up after training Trainees Project area Continuous




32

Updated list of PAHs (who were not interested/not traced) in LRP

LRP document prepared by LRP consultant had identified 31 PAHs

who were either not interested (14) or could not traced (17) during

household survey for preparing LRP. These 31 PAHs were revisited

by the LRP implementation agency (IDEA) for tracking their interest

in LRP program. Table 3.6 highlights current status on this aspect.

Table 3.6 Reassessment of the PAHs who were either not interested or traced

SL ID HH Head Previous Status

June 2015 (LRP

Survey)

Present Status

March 2016

LR Activities Expected

Timeline

1 8 Ariful Bibi Not Interested Interested Foysol Miah: Fish

Culture

June 2016

2 10 Mina Begum Not Interested Interested Salik Miah: Fish

Culture

Alal Miah: Fish

Culture

June 2016

June 2016

3 21 Anayetullah Not Traced Not Traced NA NA

4 22 Sekondor

Ullah

Not Interested Interested Mozahid: Electrical

Zobayer: Welding

July 2016

October 2016

5 25 Rokeya Begum Not Traced Interested Rokeya Begum:

Sewing

NA

First Batch

completed

6 27 Anhar Miah Not Interested Interested Anhar Miah: Business April 2016

7 35 Moshahid

Miah

Not Interested Interested Moshahid Miah:

Business

April 2016

8 47 Porosh Bibi Not Interested Not Interested NA NA

9 69 Rahima

Khatun

Not Interested Interested Rahima Khatun:

Poultry

Received in

January 2016

10 76 Tokbir ullah Not Traced Not Traced NA NA

11 77 Rofique Ullah Not Traced Not Traced NA NA

12 79 Mosaddor Ali Not Interested Not Interested

Settled in UK

NA NA

13 101 Jahid Ullah Not Traced Not Traced NA NA

14 102 Dulal Not Interested Interested Abdur Rashid:

Computer

Received in

February 2016

15 105 Tajullah Not Traced Traced Aslomullah: Business

Sajlu Miah: Business

April 2016

16 106 Boshir Miah Not Interested Not Interested NA NA

17 108 Lesu Miah Not Traced Not Traced NA NA

18 109 Bozlu Miah Not Interested Interested Bozlu Miah: Business April 2016

19 111 Fozlur Rahman Not Traced Not Traced NA NA

20 137 Nozibullah Not Traced Not Traced NA NA

21 138 Hazi Satir

Miah

Not Traced Not Traced NA NA

22 139 Md. Ashiqur

Rahman

Not Traced Not Traced NA NA

23 142 Ashik Miah Not Interested Interested Ashik Miah: Business April 2016

24 144 Rustom Ali Not Traced Not Traced NA NA

25 145 Abdur Razzak Not Traced Not Traced NA NA

26 146 Kodorish Ali Not Traced Not Traced NA NA

27 152 Ator Ullah Not Interested Not Interested NA NA

28 153 Ismail Miah Not Traced Not Traced NA NA

29 158 Abdul Amin Not Traced Not Traced NA NA

30 163 Ruhel Miah Not Interested Not Interested NA NA



33

SL ID HH Head Previous Status

June 2015 (LRP

Survey)

Present Status

March 2016

LR Activities Expected

Timeline

31 369 Shahjon Miah Not Traced Not Traced NA NA


Note: Results of the reassessment of 31 PAHs shows that 9 out 14

PAHs (who were earlier not interested) have now shown their interest

in different livelihood restoration activities. 2 out of 17 PAHs (who

were earlier not traced) have been traced and shown their interest in

livelihood restoration activity.

Old age pension scheme

As per the ‘SIA, RAP & LRF’ document of IFC, 57 old age and 11 widows were identified under vulnerable category during the SIA

survey process and they were made eligible for getting Tk 1000 per

month as pension under the RAP.

Reassessment of the vulnerable list was carried out by the IDEA (LRP

implementation agency). Key observations of the assessment were:

Total 49 persons under vulnerable category could be identified for

pension scheme. However ‘SIA, RAP & LRF’ document have budgetary provision for 68 candidates for pension scheme;

Total 24 Male could be identified till March 2016 for vulnerable

group pension. 21 were from the baseline list of ‘SIA, RAP & LRF’ document and 3 were newly identified;

25 Female were identified. This includes 3 new cases and rest of

them were from baseline list of ‘SIA, RAP & LRF’ document. SBIIPCL will provide them lifelong pension of BDT 1000/month

which will be started from April 2016.

For the verification and eligibility assessment, the candidates

should submit photocopies of their National ID card and passport

size photo.

SBIIPCL will maintain one register for the payment and the

candidates will give signatures upon receiving the monthly

stipend from the concerned person.

SBIIPCL thereafter, assumes that some eligible & interested

candidates for the pension scheme might appear while

distributing pension to the selected candidates.

SBIIPCL will assess the eligibility and vulnerability of the

upcoming candidates and include them for future considerations

if there are any suitable cases for inclusion;

Seed money distribution

LRP Training for 130 households were completed by December 2015.

Out of that 70 PAHs were entitled for seed money.



34

67 out of the 70 PAHs had established bank accounts and shared

bank account detail with SBIIPCL.

Seed money is being released to entitled PAHs in three

instalments with the objective to ensuring utilisation of this

money for livelihood generation activity. First instalment for the

amount of 25000 BDT has been released to 65 PAHs out of the 67

PAHs whose bank detail was shared with SBIIPCL. Remaining

two cases were withheld for the time being, owing to certain valid

reason. One case was withheld due to non-accomplishment of

LRP training.

Monitoring indicators have been prepared to check utilisation of

first instalment and for releasing II instalment of seed money.

These indicators are linked to the training imparted the PAPs of

the eligible PAHs, are described below;

Also, it was mentioned that, 15 PAHs, who were shifted to the

resettlement colony area, were not entitled for seed money as per

the RAP, LRF and SIA document of IFC. However, these 15 cases

have now been considered for seed money benefit. For this group

SBIIPCL is planning to release the seed money payment along

with other 14 resettled PAHs in order to prevent any likely

concern among the resettled PAHs.

Table 3.7 Monitoring indicators for releasing second instalment of seed money

S.

No

Name of Training

imparted

Indicators for releasing II instalment

1 Beef Fattening Construction of sheds;

Purchase of calf/cow/ox.

2 Poultry/Duck rearing Purchase of seeds/fertilizer/inputs;

Leasing of additional parcel of land.

3 Agriculture Purchasing of computer/accessories

Renting of rooms/shops for business or

supportive items for initiating business.

4 Computer Purchasing of computer/accessories;

Renting of rooms/shops for business or

supportive items for initiating business.

5 Sewing Purchasing of sewing machines;

Purchasing of cloths/accessories

Source: SBIIPCL site data.

3.2.6 Stakeholder Engagement

Project has put in place different mechanism to engage project

affected and general community and provided them the opportunity

to register their concern.

Project presently has a dedicated Community Development

Officer (CDO) who was observed to be in regular touch with the

neighbouring community.



35

Project has formed a Joint Committee for Community Relation

(JCCR) which is active and regular meeting of JCCR members is

organised by CDO.

A formal grievance redress mechanism (GRM) for the community

is also in place.

A copy of SEP and GRM in local language is shared with sizeable

number of PAHs. CDO also keeps local stakeholder including

PAHs informed about the process of raising grievances, if any.



36

4 COMPLIANCE STATUS OF CAP & ESMMP AND IFC ESAP

The compliance status based on the site visit and review of documents as on February 2016 has been presented in Table 4.1 and Table 4.2. In order to define the status of various action items, colour

coding has been used for easy referencing, which is as follows:

Action Item Closed/ Complied Satisfactory Progress

Partially Complied Not Complied/ Delay

To be assessed during Operations/Decommissioning

Table 4.1 CAP & ESMMP Compliance Status

S.

No

Measures and/or Corrective Actions Significance Responsibility Deliverable Suggested Timelines for

Completion*

Status provided by BCAS

as on Jan-Feb 2016

Status ERM Observations (as on 28 Feb 2016)

1 PS 1: Assessment and Management of Environmental and Social Risks and Impacts

1.1 Form a Construction Management Team (CMT) to

oversee EHS compliance of the Project during

construction phase

High SBIIPCL CMT Formation

Within 1 month of ‘date of deal closure’1 or November 2014, whichever is earlier

Complied Assessed and found to be in compliance by ERM during EHSS audit undertaken in May 2015. Refer ERM 2nd EHSS Compliance Assessment Report.

1.2 Appoint a trained EHS Personnel for day to day

monitoring of the EHS Plan and ESMMP

implementation

High SBIIPCL EHS Officer for the Project

Within 1 month of date of deal closure or November 2014, whichever is earlier


1.3 Ensure that all the records should also be made

available in local language/ English by the EPC

contractor

Review of all the records being maintained as

part of EHS Plan by the EPC contractor;

High SBIIPCL and EPC Contractor

Records Review and Corrective Actions

Within 2 months of date of deal closure or December 2014, whichever is earlier

Electrical permit recommendations are being followed. Inspection of lifting machines (hydraulic lift) and fall protection equipment (safety harness, lanyard etc.) are undertaken by NEPC in accordance to the frequency and format specified in the EHS Plan. Injury/illness log sheet in the EHS Plan has been updated through incorporation of occupational illness and man-hours worked data.

As recommended in the ERM Audit report dated 19 November 2015, the inclusion of Lock Out Tag Out (LOTO) checklist and PPE requirement is still found to be absent in the work tickets being issued for electrical work. This is important as NEPC is temporarily involved in project operations till it is being handed over by SBIIPCL to the Operations & Maintenance (O&M) contractor i.e. NEPC-S.

Reportedly the facility operates lifting equipment’s in the form of gantry cranes and overhead cranes for which no inventory is being maintained by NEPC.

Further the aforesaid equipment has not been subjected to thorough examination by a competent person and a register of such examination maintained in prescribed format as required under relevant provision of Bangladesh Labour Law, 2006.

Review of monthly injury and illness log maintained for the period Oct’15 to Jan’16 reveal that the same has been updated to include occupational illness and man-hours work related data. No injuries/illness has occurred during the said period.

NEPC to implement LOTO checklist integral to the work ticket being issued for electrical maintenance activities. NEPC to engage a competent person to perform periodic inspection of lifting machinery including lifting tools and tackles. Records of such examination to be maintained in format prescribed by the Bangladesh Labour Law.

1.4 Display and communicate environment and health

and safety policies of the company

High SBIIPCL Disclosure of company policies

Within 1 month of date of deal closure or December 2014, whichever is earlier

Complied. Assessed and found to be in compliance by ERM during EHSS

audit undertaken in May 2015. Refer ERM 2nd EHSS Compliance

Assessment Report. 1.5 Develop a social policy of the Project with defined Medium SBIIPCL Social Policy Within 3 months of date of Complied. Assessed and found to be in compliance by ERM during EHSS

1Date of deal closure has been assumed the date on which the lender/s give/s assurance to SBIIPCL for providing project finance.



37

S.

No


Completion*


as on Jan-Feb 2016


objectives, principles and performance indicators. deal closure audit undertaken in May 2015. Refer ERM 2nd EHSS Compliance

Assessment Report. 1.6 Develop and maintain legal register for all the Project

components

Medium Low

SBIIPCL and EPC Contractor SBIIPCL

Legal Register for Construction Legal Register for Operation Phase on Combined Cycle basis

Within 4months of date of deal closure for construction phase and quarterly review Within 3 months prior to the operation phase and half yearly review

SBIIPCL has updated the legal register through incorporating the conditions outlined in the applicable EHS permits and national regulations. SBIIPCL has also been monitoring and documenting the compliance status of this legal register on a monthly basis since October, 2015.

SBIIPCL has identified the applicable EHS permits/licenses (Refer Table 3.1) required during both construction and operational phases and their validity and approval status has been provided in Table 3.1.

As observed during the site visit SBIIPCL has not obtain necessary permit/license for storage of ~1362 litres of diesel for operating the generator set at the fire pump house. This is required under the relevant provision of Bangladesh Petroleum Act, 1934.

As recommended in the 19 Nov 2015 ERM Audit report, SBIIPCL is yet to prepare a legal register encompassing the conditions specified in the EHS licenses/permits (Refer Table 3.1) and relevant provisions of applicable regulations (Bangladesh Labour Act, Bangladesh Factories Rules etc.). The tracking of compliance status of the permit/license condition by SBIIPCL was also found to be pending. This is crucial as SBIIPCL has commenced with the combined cycles operation from December 2015 onwards.

SBIIPCL to obtain necessary permission for diesel storage in 1362 litres capacity tank as required under relevant provision of Bangladesh Petroleum Act, 1934. SBIIPCL to update the legal register to incorporate the conditions outlined in the applicable EHS permits and national regulations. SBIIPCL also need to monitor and document the compliance status of this legal register on a monthly basis.

1.7 Comply with the findings (not aligned) and

recommendations

High SBIIPCL and EPC Contractor

Legal compliance


Complied. Refer Table 5.1 on Project EHS&S Regulatory Compliance Status

1.8 Develop the management plans as identified in the ESIA report and update the ESMMP with defined action items, responsibilities, monitoring indicators and review/ audit mechanisms

High SBIIPCL Management Plans as per ESIA requirement

Within 2months of date of deal closure or December 2014, whichever is earlier

SBIIPCL engaged a qualified Avifauna Management Expert. Bird survey has been conducted.

SBIIPCL has developed a Livelihood Restoration Plan and Public Relation Plan for the project in consultation with external agencies/experts.

Regarding development of the Avifauna Management Plan SBIIPCL has engaged Dr. Mohammad Firoj Jaman of Department of Zoology, University of Dhaka to conduct migratory bird survey for the project. The survey was conducted during 7th-8th December 2015 encompassing five Beels (water bodies) within the project study area. The two day survey recorded 43 bird species in Hakaluki Haor and Bara beel of which majority were identified to be as water birds. The study report does not indicate any change/disruption of migratory bird movement or habitat due to the project; however it is recommended in the report that an annual monitoring is undertaken to comprehensively assess the potential impact on migratory bird habitat, if any throughout the lifecycle of the project. The subsequent surveys to be undertaken to be focusing on the transmission line stretch (~70m) and outcome utilised for development of an Avifauna Management Plan, if required, based on the assessment of any impact on the avifauna due to the transmission lines.

1.9 Develop an organisational structure for the

construction and operation phase of the Project with

defined roles and responsibilities

High Low

SBIIPCL

Organisation Structure – Construction





38

S.

No


Completion*


as on Jan-Feb 2016


Low SBIIPCL Organisation Structure – Operation on Combined Cycle basis

3 months prior to the operation phase

Complied Assessed and found to be in compliance by ERM during EHSS audit undertaken in September 2015. Refer ERM 3rd EHSS Compliance Assessment Report.

1.10 Training of SBIIPCL Staff and EHS team of EPC

Contractor on ESMMP

High

EPC Contractor

Training Calendar (Construction)


Complied. Assessed and found to be in compliance by ERM during EHSS audit undertaken in September 2015. Refer ERM 3rd EHSS Compliance Assessment Report.

1.11 Training of SBIIPCL Staff and EHS team of EPC

Contractor on Operations ESMMP

Low SBIIPCL Training Calendar (Operation)

Within 2 months of Combined Cycle Operation

Already works are in process.

With respect to operations NEPC-S has already developed a training calendar for 2016 encompassing the following components:

Power Plant Safety Rules and Permit to Work;

EHS Policy and Procedures;

Site Risk Assessment and Prevention Spill;

Fire Equipment Facility and Fire Emergency Response;

Heavy Equipment Operation Safety;

Basic Electrical Safety;

Hot Work Training and Authorization;

Lifting Operation & Work at Height

Confined Space Work Safety

Safety Awareness;

Oil and Chemical Spillage Prevention;

Hazardous Material and Waste Management Training;

First Aid;

PPE and Safety Equipment Use Training;

Chemical and Flammable Material Handling; and

Compressed Gas Cylinder Safety As per the aforesaid calendar training on Power Plant Safety Rules; Permit to Work and EHS Policies & Procedures were scheduled for January 2016. However implementation of the said training programs is still found to be pending. NEPC-S to ensure thorough implementation of the training program in accordance to the annual training calendar prepared for the year 2016.

1.12 Mapping of training needs of SBIIPCL Staff and

development of training calendar

High SBIIPCL Training Calendar

Within 2 months of Combined Cycle Operation

- As discussed in Sl. No. 1.11 NEPC-S has developed a training calendar; however the same is not found to be based on a training need assessment study of the operational workforce. NEPC along with SBIIPCL to perform a training needs assessment study of the operational workforce and utilise the outcome to develop and implement the training calendar.

1.13 Develop an emergency response plan into a

consolidated document with:

Identification of, including risks associated with

all project components;

Key community and environmental sensitivities

(such as village settlements, ponds, etc.) and the

potential of offsite consequences along with

mitigation measures;

A common communication and emergency

response process flow for onsite emergencies as

well as their communication to authorities

offsite;

Disclosure to communities in the vicinity of the

project on the emergency readiness of the

Medium SBIIPCL Emergency Response Plan for Operation Phase

1 month prior to the date of Combined Cycle Operation

Prepared SBIIPCL has prepared an Emergency Response Procedure (SBIIPCL-EHS-004) for operations and shared the same with NEPC-S for implementation. The procedure has identified response measures for the following emergencies – fire and explosion, medical cases, earthquakes, bomb threat and severe weather phenomenon. However review of the procedure indicates the following key gaps/deficiencies:

Roles and responsibilities of the Emergency Response Team (ERT) has not been defined;

Emergencies has not been classified according to the risk significance including response flow for controlling each emergency type;

Interfacing with offsite emergency responders lacking;

Contact details of both onsite and offsite emergency



39

S.

No


Completion*


as on Jan-Feb 2016


company in case of any incidents. responders have not been incorporated in the procedure; and

Details of resources available for emergency response and control;

Requirements related to worker training; induction of new workers and visitors not covered; and

Disclosure of the potential emergencies from project operations including control measures with the surrounding communities has not been covered in the said procedure.

SBIIPCL along with NEPC-S to update the Emergency Response Procedure for operations to include the components related to emergency classification; defining ERT roles and responsibilities; resource availability; interfacing with offsite emergency responders; contact details of emergency responders; induction for workers/visitors; training on emergency response and community disclosure of potential emergencies/risks.

1.14 Review the emergency preparedness and response

plan and include the necessary required emergencies

and implement the same at the earliest.

High EPC Contractor

ERP for construction phase

Within 1 month of date of deal closure or December 2014, whichever is earlier



Assessment Report. 1.15 Appoint a suitably qualified Emergency Coordinator

for the Project

Medium SBIIPCL Emergency Coordinator for the Project

Within 2 months of date of deal closure or January 2015, whichever is earlier



Assessment Report. 1.16 Develop a Commitment Register as a part of

stakeholder engagement process in order to

document the outcomes of public consultations and

respond to local community expectations, and ensure

that these are communicated back to stakeholders

and updates provided.

High SBIIPCL

Commitment Register (Construction) Commitment Register (Operation)

Within 2 months of date of deal closure Within 2 months of date of Combined Cycle Operation

Complied.

Assessed and found to be in compliance by ERM during EHSS audit undertaken in September 2015. Refer ERM 3rd EHSS Compliance Assessment Report. To be assessed during the first compliance monitoring of Operation Phase.

1.17 Consider preparing a detailed SEP with stakeholder

profiling, key concerns, expectations, impact and

influence, and risk rating of various stakeholder

groups. It should include details on engagement

strategy, disclosure, monitoring, reporting etc. The

SEP should be subsequently updated with

engagement records.

High SBIIPCL Updated SEP for the Project

Within 3 months of date of deal closure

Complied. Assessed and found to be in compliance by ERM during EHSS audit undertaken in May 2015. SEP document is prepared and disclosed with stakeholders. However, it requires certain modification. Refer S. No: 5.4 of this table for detail.

2. PS 2: Labour and Working Conditions

2.1 SBIIPCL while finalising its HR policy may consider

the following aspects for inclusion:

Roles and responsibilities associated with

various positions need to be mentioned;

Non-discrimination policy should be mentioned;

HIV/ AIDS non- discrimination should also be

spelt out;

Working with Suppliers and contractors and

non-employee workers may also be referred to;

Non-tolerance of child labour and forced labour

not only for employee, but for the non-

employee workers if any

Anti- Sexual Harassment Policy may be

explicitly captured;

All contractors and sub-contractors within the

consortium should be required to apply the

High SBIIPCL HR Policy and Procedures


Still pending SBIICPL has adopted the HR policy and Procedure of its parent

company i.e. SIMCL on 11th June 2015. ERM had reviewed the

SIMCL HR policy during the first EHSS audit in November 2014

and recommended for inclusion of following mentioned aspects:

Roles and responsibilities associated with various positions need to be mentioned;

Non-discrimination policy should be mentioned;

HIV/ AIDS non-discrimination should also be spelt out;

Working with Suppliers and contractors and nonemployee workers should also be referred to;

Non-tolerance of child labour and forced labour not only for employee, but for the non-employee workers, if any Anti- Sexual Harassment Policy should be explicitly captured;

ERM again reviewed the SIMCL HR policy which has been adopted by SBIIPCL and observed that above mentioned recommended aspects have not been integrated in the HR policy.



40

S.

No


Completion*


as on Jan-Feb 2016


principles of the SBIIPCL HR Policy document and

also ensure that their internal procedures follow local

and international standards.

This matter was discussed during the closing meeting on 13th September 2015 with the Senior Management of SBIIPCL and ERM received an email confirmation from the CEO of SBIIPCL on 28th September 2015 that the policy document will be updated within 2 weeks with inclusion of all the above mentioned observations of ERM. ERM will review the updated HR policy document during the next compliance audit. ERM was apprised in 4th EHS&S compliance audit visit (Feb

2016) that SBIIPCL has now adopted HR Policy of its parent

company i.e. Summit Industrial Mercantile Corporation (Pvt)

Ltd, now called as Summit Corporation Limited & Subsidiaries

(SCL&S). Few additions have been made in this HR policy

manual document of SCL&S, based on ERM’s recommendation and this includes;

Policy on Non-employment of Adolescent & Children at

Work;

Policy on Anti-harassment and Abuse at Work;

Anti-Discrimination Policy

2.2 HR Policy of the EPC contractor should comply

with the provisions of SBIIPCL HR Policy.

EPC contractor’s local staffs’ terms and

conditions of employment to be put in

compliance with SBIIPCL HR policy.

The EPC contractor to provide contracts or clear

terms and conditions highlighting the terms of

employment. Or the same could be possibly

hired through sub- contractors.

Workers to be provided clear terms and

conditions of employment.

High EPC Contractor

HR Policy and Procedures of EPC Contractor


Salary Sheet analysis of

EPC Contractor for the

months of October,

November and December

of 2015 reveals that the

construction workers who

used to receive Taka 330

previously are now

receiving Taka 375 per

day. But it is to be noted

that most of these

construction workers are

deployed by the labor

suppliers, and hence,

service charge of Taka 60

has been deducted from

their daily wage, which is

paid to the labor suppliers.

So, actual minimum daily

wage received by the sub-

contracted laborers is 315,

which is below the

minimum wage fixed by

the government.

EPC Contractor has

revised the OT payment of

the workers. However, out

of the 43 workers who

received OT payment for

the month of November

2015, 10 workers have been

found to be receiving OT

payment at the rate less

than double to their wage

rates.

EPC contractor has prepared a separate HR policy for this

project that is observed to be in line with provisions of HR

policy of SBIIPCL. However the policy was not signed by

management of EPC contractor.

BCAS’s observation on paying minimum wage and paying overtime hours at twice of the ordinary wage is still intact.

Current wage rate of the workers is less than minimum wage

rate and payment of overtime hours is still equivalent to

ordinary wage rate.

The Site Management of NEPC Bibiyana II Project had given a

confirmation email on 17th September 2015 to SBIIPCL management

that they will maintain paying daily wage workers minimum wage

according to prevailing Bangladesh Labour Act; and the overtime

payment will be made at the rate of twice of wage rate for over-time

hours. Furthermore, same will be implemented with immediate effect.

Implementation of these actions will be further reviewed during the

next compliance audit.

The issue of paying minimum wage still persist as observed in

ERM’s in 4th EHS&S compliance audit. Refer section 3.2.2 for

detail.



41

S.

No


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as on Jan-Feb 2016


2.3 Improve the conditions of the migrant workers-

better accommodation and clearly articulated terms

and conditions of employment

High EPC Contractor

Improved workers’ accommodation

November 2014 The labour camp is in same condition.

Approx. 30 workers are reportedly staying in the labour colony

as reported during site visit. Almost 50% of them, are security

guards, and rest are construction workers, drivers etc. Basic

facilities like ventilation, lighting arrangement, sanitation, water

supply is being provided. Separate place for cooking with

adequate ventilation, is being maintained. Overall living

condition in labour colony seems to be at satisfactory level.

2.4 Clear labour construction camp guidelines to be

formulated and shared with SPCBL II. The

guidelines should take into consideration

observations highlighted in the report.

High EPC Contractor

Labour construction camp guidelines


Complied. Assessed to be in compliance by ERM during EHSS audit undertaken in September 2015. Refer ERM 3rd EHSS Compliance Assessment Report.

2.5 Ensure that the principles on non-discrimination and

equal opportunity are included in the HR Policy

Statement and that the EPC Contractor abides by the

same while engaging local sub-contractor or contract

workers.

High SCBPL II HR Policy of SCBPL II


Complied. Assessed to be in compliance by ERM during EHSS audit

undertaken in May 2015. Refer ERM 2nd EHSS Compliance

Assessment Report.

2.6 The Project should establish channels for

management and workers to communicate and for

the workers to place their concerns as well as

suggestions.

The grievance process should be made accessible for

construction workforce and should enable workforce

to raise anonymous complaints. The grievance

records should be properly documented, tracked and

reviewed for redressal of the Grievances.

High SCBPL II EPC Contractor

Grievance redressal mechanism


Till date, there is no incidence on labour dispute and conflict between groups and there are no legal disputes. Besides, query on labour grievance over the current monitoring period (from August, 2015 to January, 2016) reveals no grievance from the labours. This illustrates harmonious relationship among the reduced EPC Contractor personnel and labourers.

Assessed to be in compliance by ERM during EHSS audit undertaken in May 2015. Grievance redressal mechanism is prepared and disclosed to the stakeholders including workers. However it was observed that workers still prefer to register their grievances verbally to their supervisors and line managers. Workers grievances are majorly related to the request for providing PPEs which are addressed on time.

2.7 The EPC contractor’s position on non-employment of

child, forced or bonded labour has to be clearly

stipulated more specifically to the sub-contractors

and their associated workforce. There should be

proper checks and verification systems in place for

the workforce to ensure no cases of child labour or

forced labour are not allowed within the site

premises.

High EPC Contractor

HR Policy and Procedures of EPC Contractor


Complied Project specific HR policy of the EPC contractor, does include provision around prohibition of child labour and forced labour. National ID card and age proof document is obtained from each worker at the time of recruitment. Worker below 18 years are not employed by the EPC contractor.

2.8 Develop a site specific health and safety manual

including SOPs and work permits required to protect

the construction manpower (including

subcontractors’ personnel) from injuries.

High EPC Contractor

SOPs for EHS Plan


Complied Assessed and observed to be in compliance by ERM during EHSS audit undertaken in May 2015. Refer ERM 2nd EHSS Compliance Assessment Report.

2.9 Develop a work permit system to carry out non

routine jobs at the construction site.

High EPC Contractor

SOP for work permit system


Complied. Assessed and observed to be in compliance by ERM during EHSS audit undertaken in September 2015. Refer ERM 3rd EHSS Compliance Assessment Report.

2.10 Prepare a Job hazard analysis for all the construction

activity and same should be communicated to all the

workers.

High EPC Contractor

Job hazard analysis


JHA has been updated with the given recommendation. JHA related trainings have been imparted to the construction workforce as part of site EHS inspections and documents

Based on ERM Audit report recommendation NEPC has updated the Job Hazard Analysis (JHA) as prepared earlier to cover the following activities:

Hot Work;

Confined Space; and

Material Lifting

Documentation review indicates that JHA related trainings are



42

S.

No


Completion*


as on Jan-Feb 2016


are available related to this.

being provided to workers by NEPC; however documentation review indicates that the such training is only limited to the following – driver and vehicles safety, material lifting and work at height. No training has been imparted to the workers on job safety aspects associated with electrical work. NEPC to impart JHA related training to workers engaged in electrical work and maintain records for the same.

2.11 Prepare a pre-use inspection checklist (activity and

equipment specific) and same should be performed

and attach with every permit before starting of

activity.

High EPC Contractor

Activity and equipment specific checklist


NEPC is now implementing pre-use inspection checklist for critical work activities such as hot work, confined space entry, material lifting and work at height.

In line with the earlier ERM audit report recommendation NEPC has implemented pre-use inspection checklist for hot work and material lifting activities undertaken as part of construction activities and records of the same found to be maintained.

2.12 Conduct train the trainer program to increase the

knowledge of the safety department.

Medium EPC Contractor

Training Records


Complied. Assessed and observed to be in compliance by ERM during EHSS audit undertaken in September 2015. Refer ERM 3rd EHSS Compliance Assessment Report.

2.13 Recruit a qualified doctor to work at first aid centre High EPC Contractor

Qualified doctor at site clinic



2.14 Prepare an Accident & Investigation register to

include the information related to the accident.


Accident & investigation register



2.15 Carryout hazard identification and risk assessment

(HIRA) for all construction and associated activities

and preparation of SOPs

High EPC Contractor

HIRA Register and SOPs


HIRAC has been updated through identification of the potential hazards and risk assessment of activities related to fuel/chemical storage & handling, electrical work and confined space entry.

Based on the ERM audit report recommendation SBIIPCL along with NEPC has updated the Hazard & Risk Assessment & Control (HIRAC) document for construction phase particularly with respect to electrical work, confined space entry and hot work.

2.16 Carry out inspection for the potential hazards at the

facility and provide the risk control as per the

hierarchy of control.

High EPC Contractor

Risk control measures



2.17 Provide training to workers, supervisors and

employees on importance and usage of PPEs for

different activities and organize PPE awareness

program.

High EPC Contractor

Training Calendar

As per Training Calendar Complied. Assessed and observed to be in compliance by ERM during EHSS audit undertaken in May 2015. Refer ERM 2nd EHSS Compliance Assessment Report.

2.18 Prepare a PPE program for the facility and program

should cover the following essential elements:

Workplace Survey;

Selecting appropriate controls;

Training;

Maintenance;

Audit of the program.

High EPC Contractor

PPE Implementation Program


A PPE inspection checklist has been prepared and regularly maintained by NEPC.

NEPC has developed a Checklist for Inspection of Personal Protective Equipment in accordance to the ERM audit report recommendation. However no documentary evidence could be made available to assess the onsite implementation of the checklist by NEPC. Further the checklist focusses on the availability and use of PPEs by workers but fails to assess and evaluate the condition of such PPEs in use. NEPC to update the PPE checklist to include provision for assessing and evaluating the condition of PPE in use by the workforce. The aforesaid checklist to be implemented and records maintained for verification.

2.19 Prepare training modules for job specific trainings

and identify workers required to undergo job

specific trainings.

High EPC Contractor

Training modules


A register of workers based on their skill set and job profile has been prepared. Trainings are being imparted accordingly

With project in operations the O&M contractor has prepared training presentation comprising of the following aspects viz. Permit to Work, Fire Prevention & Protection; Injury & Illness Prevention; Pressure Vessel Safety; Power & Hand Tools Safety; Job Safety Analysis; Emergency Preparedness & Response; Material Lifting; PPE Use; Lock Out Tag Out; Confined Space Entry; and Machine Guarding.



43

S.

No


Completion*


as on Jan-Feb 2016


SBIIPCL to update the training presentation based on the training needs assessment study to be undertaken for operations.

2.20 Conduct the first aid training with the help of

qualified first aider and make sure that first aiders

are available at all times at facility.

High EPC Contractor

First aid trainings


Complied Assessed to be in compliance by ERM during EHSS audit undertaken in May 2015. Refer ERM 2nd EHSS Compliance Assessment Report.

2.21 Develop a standard operating procedure on incident

investigation with roles and responsibilities.

High EPC Contractor

Incident investigation SOP


Updated. The incident reporting process flow diagram incorporated in the Incident Investigation & Reporting Procedure is found to be generic and vague. Again the process flow also does not identify the role of both NEPC and SBIIPCL EHS personnel with respect to incident reporting and investigation. The Incident Reporting process flow diagram to be simplified and also updated to recognize the roles of both NEPC and SBIIPCL EHS personnel in the overall reporting and investigation process.

2.22 Start preparing the accident/ incident statistics for

each and every area and start identifying the area of

concerns and prepare an action plan to address the

issues by mean of alternate work procedure,

trainings, special attention to the high risk jobs,

increase in number of supervisor for high risk jobs.


Statistical analysis of accident/ incident data and corrective action

Within 2 months of date of deal closure and monthly update of the same

Pending. SBIIPCL has identified the cooling tower, boiler area and central control building as the AOCs; however preparation and implementation of a safety action plan for the aforesaid AOCs is still under progress. With project under operation from December 2015 the SBIIPCL to ensure completion of the safety action plan for cooling tower, boiler area and central control building on a fast track basis.

2.23 SBIIPCL will need to put in place a formal contractor

management system to audit its contractors as well

as those of the EPC contractor. The management

system should include:

Compliance checklist against the Applicable

Standards;

Criterion on contractor selection to minimize

HSE or labour related risks and issues at the

time of engagement;

Monitoring and audit procedures; and

Further the EPC contractor and the sub-contractor

should be made responsible for the insurance of the

workers mobilised at the site.

High SBIIPCL Contractor Management System


O&M Contractor has done group insurance for the O&M staffs. However, SBIIPCL has not yet done any group insurance for the company’s staffs.

HSE In-charge of SBIIPLC deployed at site is accountable for ensuring compliances w.r.t the contractors and sub-contractors engaged at plant. Considering the nature & size of contract workers engaged at plant, provision of extending insurance is not applicable as per labour law of Bangladesh.

3 PS 3: Resource Efficiency and Pollution Prevention

3.1 Ensure that all the ESMMP implementation

requirements during construction phase are being

clearly provided to the EPC contractor and

implementation of mitigation measures along with

records should be reviewed by EHS Officer of the

SBIIPCL.

High SBIIPCL and EPC Contractor SBIIPCL

ESMMP implementation

As defined in ESMMP during construction phase

SBIIPCL has been preparing Monitoring Report on ESMMP Implementation since December, 2015.

Presently the project is in operations with COD for combined cycle operations declared in December 2015. Based on discussion with NEPC-S (O&M contractor) it is understood that the Operations Phase ESMMP has been shared by SBIIPCL with the former for implementation. However no verification checks/monitoring has been undertaken by SBIICL to check ESMMP implementation status on a periodic basis. SBIIPCL to perform monthly monitoring of the Operations ESMMP implementation with findings to be shared with NEPC-S as part of monthly EHS meetings for closure. The compliance status of ESMMP commitments for constructions has been tabulated below:

NEPC/ SBIIPCL have displayed 2-3 signages related to “no honking” and “Speed Limit” along the site access road.

With project now in full operation SBIIPCL is working towards engaging authorized waste contractor for disposal of the hazardous and non-hazardous waste streams to be generated from the facility. No open burning of waste was



44

S.

No


Completion*


as on Jan-Feb 2016


observed at site and laydown area.

NEPC has performed river water quality validation in January 2016 by engaging Center for Research, Testing and Consultancy Department of Civil and Environmental Engineering Shahjalal University of Science and Technology.

Erosion monitoring is being performed based on visual observations, however a time series analysis is still found to be pending. Erosion was also observed during the site visit in February 2016 on the right bank of the Khusiyara River.

In order to improve emergency response preparedness SBIIPCL along with NEPC-S has organised emergency drills on 23 December 2015 and 11 February 2016 respectively. Review of the drill report indicates that participation is limited to only 20-30 personnel and does not encompass the entire operational workforce.

With project now in full operation efforts have been made by the ERM audit team to assess the compliance status of the ESMMP implementation for operations. A summary of the observations and recommendations made to this regard has been tabulated below: Management System Certification

SBIIPCL plans to obtain both ISO 14001 and OHSAS 18001

certification within 3 years of operations. Reportedly work to

this regard will commence following handover of project

operations to NEPC-S by SBIIPCL.

Flue Gas Emission

As specified in operational phase ESMMP, SBIIPCL has installed

and operating a Continuous Emission Monitoring System

(CEMS) to continuously monitor pollutant (CO, NOx, PM10,

SO2) concentration in stack emission. Review of the results for

the period Dec’15-Feb’16 for key pollutants viz. NOx (11.2-17.8

ppm) and PM10 (20.9-21.34 mg/m3) were found to be in

compliance with the standards specified in both IFC EHS

Guidelines for Thermal Power Plants and Bangladesh ECR,

1997. However the values for PM10 and NOx were not found to

be expressed in mg/Nm3 and ppm as required by the aforesaid

IFC Guidelines and Bangladesh environmental regulations.

NEPC-S to ensure the NOx and particulate matter values are

expressed in units specified in the emission standards of IFC

Guidelines and Bangladesh ECR, 1997.

Ambient Air Quality

SBIIPCL has not undertaken monitoring of NOx at the

surrounding villages Parkul, Bongaon and Paharpur as specified

in the operations phase ESMMP. SBIIPCL to perform quarterly

monitoring of NOx at Parkul, Bongaon and Paharpur quarterly basis

within 3 months of operation.

SBIIPCL has installed 3 continuous ambient air quality

monitoring stations (CAAQMS), which are installed on the top

of dormitory, cooling water pump house and cooling tower. The

system is operational since December 2015. Review of the

monitoring results indicated that the SO2 concentrations are

observed in the range of 40 to 80 µg/m3 and PM2.5 levels are



45

S.

No


Completion*


as on Jan-Feb 2016


higher than PM10 levels in all the locations, which are not

matching with the testing done during the calibration period.

Furthermore the levels of SO2 during the conventional

monitoring were in the range of 10 – 18 µg/m3. Re-calibration of

the CAAQMS is required.

Noise Quality

NEPC-S has performed in house monitoring of ambient noise

quality in January 2016 at 8 locations within the project premises

viz. cooling water tower; water treatment area; dormitory; gas

station; generator yard; fuel engine room; boiler room and water

pumping station. Review of the results indicates compliance

with both day and night time noise standards specified for

industrial area under Bangladesh ECR, 1997. However the noise

values are recorded based on spot monitoring and does not

encompass the entire day (6AM to 9PM) and night (9PM to

6AM) time period (continuous monitoring) as specified in the

Bangladesh ECR, 1997.

With respect to ambient noise monitoring at surroundings

village locations the implementation of the same is found to be

pending by SBIIPCL. This is required under the Operation

Phase ESMMP.

NEPC-S to undertake continuous monitoring of noise levels (both day

and night time) to check compliance with ECR standards. SBIIPCL to

commence with ambient noise monitoring at Paharpur and Parkul

village locations on a quarterly basis as specified in the ESMMP.

Gas Supply & Quality

Review of the monthly operating details for January 2016

reveals consumption of 985292536 million standard cubic feet

(MSCF) of natural gas till date. No information was however

available on the quality of natural gas being supplied to the

project.

Effluent Discharge

Treated effluent from ETP and STP gets collected in a Common

Monitoring Basin (CMB) prior to its discharge into Khusiyara

River. All such discharges are being monitored by both SBIIPCL

by engaging a third part (M/s Adroit Consultants) and in-house

by NEPC-S. Review of in-house monitoring records for January

2016 reveals treated water discharges being monitored for pH,

temperature and conductivity (as specified in the operations

ESMMP) with results in all cases found to be in compliance to

Bangladesh ECR, 1997 inland water discharge standards. Reportedly

due to absence of necessary laboratory

infrastructure/equipment other key parameters like BOD, TSS,

TDS and Oil & Grease is not being monitored by NEPC-S. Hence

it is recommended that necessary efforts are made by NEPC-S to

improve on the laboratory infrastructure through procurement of

relevant analytical equipment/facilities for monitoring the key

environmental parameter as specified above.

For monitoring undertaken for treated waste water in December

2015 through third party agency, only 24 parameters were



46

S.

No


Completion*


as on Jan-Feb 2016


found to be covered instead of 34 parameters as specified in

Schedule 10 of the Bangladesh ECR, 1997. The results though

found to be in conformance with the Bangladesh ECR, 1997,

SBIIPCL to conduct quarterly monitoring of all inland water discharge

parameters specified in Schedule 10 of the Bangladesh ECR, 1997 to

check for conformance and also to assess ETP performance.

During visit to the common effluent discharge point coloured

and oil bearing discharges into the Khusiyara River was

observed. Based on discussion with SBIIPCL and NEPC-S it is

understood such discharges has resulted from gas turbine (GT)

washing which were being directly released to the storm water

drain. In view of the above it is recommended that adequate

checks are in place by NEPC-S to monitor such unwarranted

discharges. Also a contingency plan needs to be developed to control

generation and discharge of GT wash water.

Surface Water Quality

SBIIPCL has engaged Centre for Research, Testing and Consultancy

Department of Civil and Environmental Engineering Shahjalal

University of Science and Technology to monitor Khusiyara river

water quality at 3 locations – near the project site and both 50 m

upstream and downstream of the project. Review of the

monitoring results for January 2016 reveals a total of 13

parameters being covered except for Dissolved Oxygen (DO)

and Total Coliform as referred in Schedule 3 – Standards for Inland

Surface Water of Bangladesh ECR, 1997. The results of the

parameters being monitored were found to be in compliance

with the aforesaid standards. SBIIPCL to include both DO and

Total Coliform as part of the quarterly monitoring of Khusiyara river

water quality.

Storm Water Management

SBIIPCL has not made any provision of installation of oil water

separators for storm water drainage system. This is assessed to

be justified based on the fact that the project hazardous material

and waste storages are covered along with necessary provision

made to channelize any waste/chemical spillages through

dedicated underground drainage system to a waste water

collection basin for subsequent treatment.

Waste Management

For the purpose of managing waste generated from operations

SBIIPCL has developed a Waste Management Procedure and same

shared with NEPC-S for implementation. Review of procedure

indicates it needs to be updated to include the various

hazardous waste stream and their storage, transportation,

recycling and disposal options. Maintenance of a waste

inventory by NEPC-S is also found to be lacking which is

necessary to adequately track the implementation of the waste

management procedure.

SBIIPCL has a designated and covered storage yard for

hazardous waste; however no provision for secondary

containment and spill kit was made available at the aforesaid

area to manage any accidental spillage during waste storage and



47

S.

No


Completion*


as on Jan-Feb 2016


handling. The waste storage area was also found to be located

above the storm water drains thereby enhancing the potential

for hazardous waste releases to such drains in event of an

accident.

Regarding disposal of hazardous waste particularly used/waste

oil NEPC-S is in discussion with Lafarge Cement facility at

Chatak with a waste disposal agreement/contract yet to be

signed. Further no plans is presently available to manage

disposal of other notifiable hazardous waste streams viz. ETP

sludge, discarded chemical containers etc.

SBIIPCL along with NEPC-S to update the Waste Management

Procedure to include all notifiable hazardous waste streams and their

management measures. NEPC-S to regularly maintain a waste

inventory for all wastes identified in the Waste Management

Procedure. NEPC-S to execute a waste disposal contract/agreement

with Lafarge Chatak facility to facilitate disposal of used/waste oil.

Similarly NEPC-S to identify third party vendors for disposal of other

important hazardous waste streams; the vendors so identified to be

audited by NEPC-S prior to execution of any waste disposal contract.

SBIIPCL/NEPC-S to ensure provision of secondary containment and

spill kits at the designated hazardous waste storage area.

Hazardous Material Management

SBIIPCL has developed a Caustic & Acid Handling Procedure and

the same shared with NEPC-S for implementation during the

operations stage. However the review of the procedure reveals

that the procedure is limited to only caustic soda and

hydrochloric acid and is not extended to cover other hazardous

materials such as hydrazine, sulphuric acid, ammonia etc. which

are also being used. Further Material Safety Data Sheets (MSDS)

for the aforesaid chemicals has not been referred and/or

annexed to this procedure.

During visit to the acid and alkali storage area it was observed

that display related to warning signages and usage of

appropriate PPEs were found to be lacking. Further there exists

no provision for spill kits at the aforesaid storage area to control

any accidental spillage during loading of the acid and alkali

tanks. Periodic inspection of chemical emergency response

equipment like eye wash station and showers were also found

to be lacking.

SBIIPCL to update the Caustic & Acid Handling Procedure based on

the review of chemical usage requirements for operations. The updated

procedure to bear MSDS of chemicals to be stored and used for

operations. SBIIPCL to ensure provision of spill kits and display of

warning and PPE requirements at the acid and alkali storage areas.

Periodic inspection to be undertaken for all chemical emergency

response equipment and records maintained for verification.

Occupational Health & Safety

NEPC-S has commenced with monthly site safety inspection

from December 2015 with findings documented in a specific

format. However this report is not being shared with SBIIPCL.



48

S.

No


Completion*


as on Jan-Feb 2016


Induction training to visitor and operations workforce has not

been undertaken by NEPC-S as required under the ESMMP.

This is important given the combined cycle operations have

already commenced from December 2015.

For project operations, NEPC-S – the O&M contractor has

already developed a set of about 45 management procedures

and standards including Site EHS Plan for the year 2016. This

has been released by NEPC-S for implementation vide letter

dated 6 February 2016. However NEPC-S is yet to develop a

consolidated EHS plan for operations encompassing EHS policy,

objectives, procedures, training requirements, performance

indicators etc. to demonstrate compliance to the ESMMP

requirements.

In line with ESMMP requirements an EHS Committee has been

formed comprising representatives of both SBIIPCL and NEPC-

S. The Committee meeting is scheduled on a monthly basis and

is being chaired by the SBIIPCL Plant Manager. Additionally

monthly site safety inspections are being conducted by NEPC-S

along with monthly reporting on EHS performance to SBIIPCL.

Review of health register indicates that initial medical

examination is limited to only 72 personnel as compared to the

total operational workforce comprising of 96 personnel.

NEPC-S to share site inspection report with SBIIPCL on a monthly

basis and findings to be discussed in the monthly EHS Committee

meetings. NEPC-S to develop a consolidated EHS Plan for operations

and the same to be shared with all sub-contractors for agreement.

Induction training modules to be developed and implemented by

NEPC-S for both operational workforce and visitors. NEPC-S to

facilitate initial medical examination for the remaining operations

workforce (24 personnel) and fitness certificate issued to be maintained

for verification.

Emergency Preparedness & Response

For details refer to S. No. 1.13 of Table 4.1

In order to improve emergency response preparedness SBIIPCL

along with NEPC-S has organised emergency drills on 23

December 2015 and 11 February 2016 respectively. Review of

the drill report indicates that participation is limited to only 20-

30 personnel and does not encompass the entire operational

workforce.

Regarding maintenance of emergency response equipment’s

NEPC-S has developed and implemented a monthly inspection

checklist for fire extinguishers and fire hydrants with records

maintained. No inspection checklist is currently available to

check the performance of hose reels. Additionally during the

site visit at the cooling tower location the hydrant capping was

found to be locked with no hydrant valve spanner available to

open the same.



49

S.

No


Completion*


as on Jan-Feb 2016


SBIIPCL to ensure full participation of the operational workforce

during implementation of the quarterly mock drills being undertaken.

Further an inspection checklist to be developed and implemented by

NEPC-S for fire hose reels and records for the same maintained.

Green House Gas Emissions

No provision of CO2 emission monitoring is available in CEMS

and hence actual CO2 emission monitoring and annual reporting

is not possible. This was discussed during the closing meeting

and the SBIIPCL management had mentioned that GHG

emissions will not be monitored but calculated and based on the

fuel consumption and plant performance.

3.2 Undertake regular monitoring of air emissions, water

consumption, wastewater discharge, solid and

hazardous waste disposal, noise levels, in line with

the ESMMP

Low SBIIPCL ESMMP implementation

As defined in ESMMP during operation phase

Done both internally and externally by third party. SBIIPCL says that the oil-water separator is in-built with the ETP, and there is no possibility of mixing of waste water and sewage water (passing to the ETP) with the storm water. Hence, there is no necessity of another oil-water separator at the outfall point. CEMS is working.

For details please refer to S. No. 3.1- Ambient Air Quality; Waste Water Discharge; Waste Management and Ambient Noise Quality of Table 4.1.

3.3 Ensure that impacts associated with the

decommissioning phase are assessed and addressed

prior to eventual decommissioning.

Low SBIIPCL ESMMP for

decommissioni

ng phase.

1 to 2 years prior to

eventual

decommissioning.

- To be assessed during decommissioning phase for combined

cycle operations. With project now in operations the offices and

equipment’s utilised for constructions will be decommissioned by the EPC contractor following release of the Provisional

Acceptance Certificate by SBIIPCL. It is recommended that on

decommissioning of temporary site offices and equipment used for

constructions, SBIIPCL to perform a site assessment study to identify

any potential environmental issues/concerns and accordingly develop

an action plan for managing the same.

3.4 Complete an annual GHG emissions estimation based on the actual operations of the Project during the operational phase.

Low SBIIPCL GHG estimation and reporting.

Annually, after one year of COD

- No provision of CO2 emission monitoring is available in CEMS

and hence actual CO2 emission monitoring and annual reporting

is not possible. This was discussed during the closing meeting

and the SBIIPCL management had mentioned that GHG

emissions will not be monitored but calculated and based on the

fuel consumption and plant performance.

3.5 Develop the climate adaptation policy and procedures in line with the requirements specified in the ESMMP.

Low SBIIPCL Climate Change Adaptation Policy

Within 12 months of COD (Plant Operations

-

To be assessed during December 2016 – a year following the declaration of COD.

3.6 Provide organisational arrangements, capacity development and training measures and performance indicators for effective implementation of the ESMMP already developed for the Project.

High SBIIPCL Capacity building and setting up of performance indicators

1 month prior to COD SBIIPCL organized a training program with O&M Team on ESMMP implementation in operation phase.

Organogram for project operations is available for both SBIIPCL and NEPC-S however no interfacing was observed in the said organisational arrangements for both companies.

Also both SBIIPCL and NEPC-S are in the process of selection of performance indicators and developing a capacity building program to ensure effective implementation of Operations ESMMP.



50

S.

No


Completion*


as on Jan-Feb 2016


It is recommended that organogram for both SBIIPCL and NEPC-S are interlinked with performance indicators and training needs identified for implementation of ESMMP for operations.

3.7 Develop a Waste Management Plan for operation

phase.

Low SBIIPCL Waste

inventory and

disposal

options.

3months prior to start of

Combined Cycle

Operation

Hazardous waste storage

has been prepared for

operations phase.

DOE approved waste

collector is not available in

Sylhet. O&M Contractor

and SBIIPCL are searching

for DOE approved waste

collector.

SBIIPCL has developed a Waste Management Procedure (NEPCS-

O&M-P-EHS-001-09) and the same shared with NEPC-S for

implementation during the operations stage. The procedure

outlines the categories of wastes, PPE requirements; roles and

responsibilities and activities related to waste handling and

disposal.

Review indicates the procedure to be generic in nature and

lacking specific requirements with respect to management of

hazardous waste. Further procedure does not cover the

following hazardous waste streams viz. sludge generated from

effluent treatment plant; discarded chemical containers; used oil

etc. SBIIPCL to review and update the Waste Management Procedure

to encompass all hazardous waste streams likely to be generated during

operations. This should also include provision for a designated

hazardous waste storage area and evaluation of potential disposal and

recycling options as may be identified in discussion with Department

of Environment (DoE), Bangladesh.

It is understood based on discussion with SBIIPCL and NEPC-S

the volume of waste generation is presently quite low as the

plant has commenced operation only since December 2015.

Hence no waste inventory is currently being maintained by

NEPC-S for operations. It is recommended that NEPC-S

maintains an inventory for all waste streams related to their storage,

transportation, recycling and/or disposal during operations.

3.8 Develop a Hazardous Materials Management

(HMM) Plans.

High

EPC

Contractor

HMM Plan. –

Construction

phase

Within 2 months of date of

deal closure or December

2014, whichever is earlier


Low SBIIPCL HMM Plan –

Operation

Phase

3 months prior to start of

Combine Cycle Operation

Complied.

Please see SBIIPCL-EHS-

003 including MSDSs

annexed to it.

SBIIPCL has developed a Caustic & Acid Handling Procedure

(NEPCS-O&M-P-EHS-001-03) and the same shared with NEPC-S

for implementation during the operations stage. The procedure

is intended to ensure safe handling of chemicals outlining the

measures to be adopted related to storage, handling, first aid

and accidental releases. .

However the review of relevant documentation reveals that the

procedure is limited to only caustic soda and hydrochloric acid

and is not extended to cover other hazardous materials such as

hydrazine, sulphuric acid, ammonia etc. which are also being

used. Further Material Safety Data Sheets (MSDS) for the

aforesaid chemicals has not been referred and/or annexed to

this procedure.

In this regard it is recommended that SBIIPCL update the Caustic

& Acid Handling Procedure based on the review of chemical usage

requirements for operations. The updated procedure to bear MSDS of

chemicals to be stored and used for operations.

3.9 Ensure that spillage kit is available at the HSD

storage area.

High EPC

Contractor

Spillage

management

Within 1 month of date of deal closure or December

Complied Assessed to be in compliance by ERM during EHSS audit undertaken in September 2015. Refer ERM 3rd EHSS Compliance



51

S.

No


Completion*


as on Jan-Feb 2016


Provide drainage system to the HSD storage

shed to collect the rain water and waste water

generated after floor cleaning.

Prepare a procedure for the HSD loading &

unloading and spill control and trained workers

for the same.

Prepare a list of the authorised person and same

should be pasted outside the storage shed area

and access control system to be implemented.

plan 2014, whichever is earlier Assessment Report.

3.10 Develop a Standard Operating Procedure for Pest

Management for the Project.

Medium SBIIPCL Standard

Operating

Procedure for

Pest

Management.

Within 3 months of COD Not due Reportedly SBIIPCL has commenced with preparation of the Standard Operating Procedure (SOP) for Pest Management which is to be completed by end of March 2016. Necessary efforts need to be made by SBIIPCL to formulate the Pest Management SOP on a fast track basis in order to comply with the March end timeline.

3.11 Develop a Standard Operating Procedure on the use

of Ozone Depleting Substances (ODS), with the focus

being on no new systems or equipment use ODS.

Medium SBIIPCL Standard

Operating

Procedure on

the use of

Ozone

Depleting

Substances.

Within 3 months of COD

Not due Reportedly SBIIPCL has commenced with preparation of the Standard Operating Procedure (SOP) on the use of ODS which is likely to be completed by end of March 2016. Necessary efforts need to be made by SBIIPCL to formulate the ODS usage SOP on a fast track basis to comply with the March end timeline.

3.12 Ensure that emissions from on-road and off-road

vehicles should comply with Schedule 6 (Standards

for emissions from motor vehicles) of the

Environmental Conservation Rules, 1997 of GoB.

Medium SBIIPCL and

EPC

Contractor

Compliance

checks of on-

road and off-

road vehicles.

Within 2months of date of

deal closure or December

2014, whichever is earlier

(with quarterly

monitoring)

BRTA does not issue

fitness certificates for

foreign vehicles, which are

not registered in

Bangladesh. The rental

ambulance has been

changed.

For operations NEPC-S has deployed only two vehicles for

which valid certificate of fitness is available from Bangladesh

Road Transport Authority (BRTA) as required per the relevant

provision of Bangladesh Environmental Conservation Rules, 1997

and Motor Vehicle Ordinance, 1983.

3.13 Ensure no use of asbestos containing material is

specified in the design of the Project.

High SBIIPCL Written

confirmation

that no

asbestos will be

used in the

Project

development

from newly

purchased

materials.

Within 1 month of date of

deal closure


3.14 Conduct air quality dispersion modelling study with

updated stack characteristics in the design

Medium SBIIPCL Updated air

quality

dispersion

modelling

Within March 2015 Complied Assessed to be in compliance by ERM during EHSS audit undertaken in September 2015. Refer ERM 3rd EHSS Compliance Assessment Report.

4 PS 4: Community Health, Safety and Security

4.1 Conduct a detailed QRA for the Project based on

actual design and formulate an emergency response

plan.

Medium SBIIPCL Quantitative Risk Assessment and Emergency Response Plan

3 months of COD Not due SBIIPCL has not initiated the Quantitative Risk Assessment (QRA) study to assess and evaluate the operational risks/hazards associated with the project. This is identified to be important taking into account the plant has commenced operations in December 2015 and also given the output of the study is to be utilised to formulate an Emergency Response Plan (ERP). It is recommended that SBIIPCL engages a qualified and experience agency/expert on a fast track basis to perform a QRA study of the project operational risks.

4.2 Develop a traffic management and logistics plan taking into consideration community safety

High EPC Contractor

Traffic management plan.


Done. As per ERM recommendation from the earlier audit SBIIPCL in

coordination with NEPC has displayed “no honking” signage’s



52

S.

No


Completion*


as on Jan-Feb 2016


along the site access road. However signage related to safe speed

limit is yet to be displayed along this road.

4.3 Undertake specific communication on health hazards and mitigation measures on an ongoing basis against new activities and associated health and safety risks to the local community.

Medium SBIIPCL Communication on health hazards and mitigation measures.

Within 3 months of COD Not due Considering the potential safety related risks on the nearby

communities from any operational failure/accidents it is

essential to communicate the same to these communities to

enhance risk preparedness. However no communication to this

regard has been done by SBIIPCL till date. It is recommended

that SBIIPCL develops a disclosure plan for communicating the

project operational risks/hazards to the nearby communities. Regular

dialogue to be maintained by SBIIPCL with the communities to apprise

them of the identified risks, appropriate control measures and response

actions.

4.4 Engage a suitably qualified professional to undertake a Life and Fire Safety (L&FS) review of the facility prior to commissioning and develop a Corrective Action Plan to address any identified deficiencies / gaps between the facility and the requirements of the WBG General EHS Guidelines.

Medium SBIIPCL Life and Fire Safety Review and Corrective Action Plan

1 month prior to the

commissioning of

combined cycle

Review work and

preparation of CAP is in

progress.

SBIIPCL has already engaged Life and Fire Safety Expert from

NEPC-S in September 2015 for assessing the fire safety

preparedness and subsequently develop a Corrective Action

Plan (CAP) to address any gaps/deficiencies. However based on

discussion with NEPC-S it is understood that fire safety review

of the project is likely to commence by end of March 2016.

With COD for combined cycle already declared on Dec 2015 the

assessment of project fire safety risks and preparedness need to be

undertaken by the Life and Fire Safety Expert on a fast track basis to

meet the suggested timeline. This is to be followed by preparation of a

CAP in consistent with the WB General EHS Guidelines.

4.5 Ensure any future security arrangements shall comply with PS4 requirements. The SBIIPCL Grievance Mechanism should include security within its scope.

Low SBIIPCL Compliance check against PS4 requirement.

1 months of COD Complied Security services are being provided through private security contractor. The O&M contractor i.e. M/s. NEPCS has entered into contract with the security agencies. Consultation with security personnel and review of their wage register indicate that payment to security guards are at par with minimum wage rate. Security personnel are being engaged in 3 shifts (8 hours each shift). Security contractor is held responsible for addressing grievances of the security personnel.

5 PS 5: Land Acquisition and Involuntary Resettlement

5.1 Ensure:

Preparation of the Livelihood restoration plan;

Documentation of the stakeholder engagement

records;

Maintaining proper records of the employment

and vendor opportunity provided to the PAFs

and the local community

Medium SBIIPCL Livelihood restoration plan and stakeholder engagement

Within 3 months of date of deal closure (and periodic review)

Complied. LRP has been rolled out and Project has hired an NGO called ‘IDEA’ for LRP implementation. Refer section 3.2.5 for current progress in LRP implementation.

5.2 Continued engagement and resettlement monitoring

by CDO.

Medium SBIIPCL Resettlement monitoring reports


Complied CDO is observed to be in regular touch with the local community including PAHs. Key progress w.r.t. R&R aspects in the reporting period of this compliance audit period includes;

Appointment of NGO for LRP implementation;

Rolling out of LRP programme. Livelihood related training to eligible PAPs were initiated;

Disbursement of Seed money to eligible PAFs were initiated;

Accomplishment of above mentioned activities can be seen as an indicator of continued community engagement.

5.3 Establishment of a formal GRM for the PAFs and the

community;

Medium SBIIPCL GRM for PAFs Within 3 months of date of deal closure (and periodic review)

Complied Formal GRM is established. Process of registering grievances is documented in English and local language



53

S.

No


Completion*


as on Jan-Feb 2016


and it has been disseminated with PAHs at individual level as well by CDO.

Records of grievances are maintained by CDO. Consultation with community and CDO indicates PAHs prefer sharing their grievances verbally either by calling CDO on his mobile or through meeting with CDO.

Grievances are recorded by CDO in grievances register. Thus GRM is considered to be in compliance by ERM.

5.4 Consider preparing a detailed SEP with stakeholder

profiling, key concerns, expectations, impact and

influence, and risk rating of various stakeholder

groups. It should include details on engagement

strategy, disclosure, monitoring, reporting etc. The

SEP should be subsequently updated with

engagement records.

Medium SBIIPCL Updated SEP for the Project


SEP has not yet been updated following the recommendations.

SEP document was prepared by CDO and reviewed by SBIIPCL management. SEP document was also translated in local language and translated copies were shared with PAHs and other stakeholders. ADB has also reviewed SEP and suggested for following recommendations;

SEP should provide a strategy and timetable for sharing information and consulting with each of the groups identified

SEP should describe resources and responsibilities for implementing stakeholder engagement activities

SEP should describe how stakeholder engagement activities will be incorporated into the company’s management system

Insert a Summary of any Previous Stakeholder Engagement Activities

Add a section on Monitoring and Reporting - describing any plans to involve project stakeholders (including affected communities) or third-party monitors in the monitoring of project impacts and mitigation programs. Describe how and when the results of stakeholder engagement activities Will be reported back to affected stakeholders as well as broader stakeholder groups?

Insert the GRM procedure itself which describes the process by which people affected by the project (or company’s operations) can bring their grievances to the company for consideration and redress. Who will receive public grievances, how and by whom will they be resolved, and how will the response be communicated back to the complainant?

ERM had also recommended integrating these recommendations in SEP document. it was also recommend that copies of revised SEP, GRM, SIA etc. should be placed at CDO office, situated at community (located just across the power plant) for convenient access to wider range of stakeholders. Copies of GRM, SIA etc were observed to have been placed at CDO office for wider reach of stakeholders. Updating of SEP document with the ADB’s recommendations is in progress.

5.5 SBIIPCL should ensure payment of compensation to

sharecroppers in line with the resettlement action

plan and records should be maintained.

Medium SBIIPCL Records of compensation payment

After finalisation of CAP Complied. SBIIPCL has made payment to one pending agriculture labour. Payment of compensation stands completed now.

6 PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

6.1 Conduct six monthly construction phase monitoring

of terrestrial and aquatic organisms

High SBIIPCL Terrestrial and

aquatic

organism

monitoring

As defined in ESMMP

during construction

phase

Monitoring of terrestrial

and aquatic organisms

done. Reports have been

furnished as well.

As discussed during the earlier ERM audit report a terrestrial

floral and faunal study was undertaken for the project by Dr.

Md. Monirul Islam, Associate Professor, Department of Fisheries,

University of Dhaka in August 2015. As per this report no

potential change in species diversity and habitat has been noted

in the study area with respect to the SBIIPCL project.



54

S.

No


Completion*


as on Jan-Feb 2016


A study was also conducted by engaging the aforesaid expert in

November 2015 to assess the limnological and fisheries

conditions for the impact zone of SBIIPCL project. A total of 34

species of fishes have been recorded from the study site

belonging to 27 genera, 14 families and 7 orders. As per the

report fish species recorded during both peak and lean season

fishing is assessed to be comparable to the baseline.

6.2 Develop greenbelt within the project boundary. Low SBIIPCL Greenbelt

Development

After completion of

construction activities.

Project site green belt has

not been ensured.

As discussed in the 3rd EHSS Compliance Assessment report

SBIIPCL had engaged M/s Zara Enterprise for maintenance of

nearly 2800 saplings planted under the Green Belt Development

Plan. However as observed during the site visit the current

survival rate of the planted saplings is only 65%-70%. One of the

primary reasons identified for such reduced survival rate is

possibly the lack of maintenance with contract of Zara

Enterprise expiring on October 2015. It is therefore

recommended that SBIIPCL engages a third party vendor under an

annual maintenance contract to improve green belt species survival

rate.

Regarding green belt development within the site it is

understood that formulation of such a plan is currently under

progress by SBIIPCL. With COD for combined cycle operations

declared in December 2015, SBIIPCL to get the Green Belt

Development Plan for project finalized on a fast track basis for

execution.

6.3 Include an invasive alien species management plan

in the ESMMP for the construction and operational

phases

Medium SBIIPCL and

EPC

Contractor

Invasive alien

species

management

plan.

Within 2 months of date of

deal closure




55

Table 4.2 IFC ESAP Compliance Status

S.

No Measures and/or Corrective Actions Deliverable Schedule Status

ERM Observations

(as on 11 Sep 2015)

1 Upgrade the existing EHS Policy, EHS

Management Procedures and EHSS Plan in

accordance with the provision of IFC PSs, the

ESMMP and findings of the EHSS Audit, and

implement the EHS Management Procedure.

EHS Policy and EHSS Plan 31 Mar 2015 SBIIPCL has prepared an EHSS Policy for operations and the same has been shared with NEPC-S – the O&M contractor for adoption and implementation. Review of the policy reveals that it is effective from 15 June 2015 however it does not feature in the list of Company EHSS Rules and Procedures notified by NEPC-S to both SBIIPCL and the operations personnel vide letter dated 6 Feb 2016. Further the policy has also not been shared with the operations worker through display at a conspicuous location within the factory. As discussed above NEPC-S has notified a list of 45 EHS related procedures and rules which will be executed for project operations. However this list does not include the following plan and procedures being shared by SBIIPCL to NEPC-S for implementation viz. Permit to Work; Caustic and Acid Handling; Emergency Response; Electrical Safety; Environmental & Social Monitoring; Spill Prevention & Response; Spill & Release Reporting; Waste Management; Community Development; Grievance Redressal Mechanism; and Incident Investigation & Reporting. Further NEPC-S is yet to develop a consolidated EHS plan for operations encompassing objectives, procedures, training requirements, performance indicators etc. to demonstrate compliance to the legal, ESMMP and IFC PS requirements. Specific observations on the management plans for operations are given in S. No. 1.13, 3.1, 3.7, 3.8, 3.9, 3.10, 3.11 of Table 4.1.



56

S.


ERM Observations

(as on 11 Sep 2015)

2 Obtain an Environmental, Occupational,

Health and Safety (EHS) Management System

(EHSMS) certified to ISO 18001 standards with

IFC Performance Standards appropriately

incorporated.

ISO 14001 and OHSAS 18001 certification

Within 2 years of COD

Please refer to S. No. 3.1 – “Management System Certification” of Table 4.1

3 Development and implementation of SBIIPCL

Human Resource Policy, Environmental Policy,

Social Responsibility Policy and Health &

Safety Policy/or Statement.

SBIIPCL Policies in place 31 Mar 2015 EHS, Social, and HR policies are in place. Specific observations on HR policy and manual are presented in S. No. 2.1 of Table 4.1.

4 Formation of SBIIPCL CMT and appointment

of SBIIPCL’s EHS Manager, CDO and Community Liaison Officer.

CMT. EHS Manager and CDO in place

15 February 2015 Assessed to be in compliance by ERM during EHSS audit undertaken in September 2015. Refer ERM 3rd EHSS Compliance Assessment Report.

5 Undertake labour audit covering own and

subcontractor workers to assess compliance

with national laws and IFC PS2 requirements.

This will cover review of all HR Policies and

Practices.

Complete implementation of mitigation

measures based on audit findings including

those relevant to EPC contractor’s management of labour issues

Labour Audit Report 31 March 2015 May 2015

Labour Audit report was carried out by BCAS. Outcome of the audit report was mentioned in previous audit report. there were some major gaps identified like non-compliance w.r.t minimum wage payment, overtime payment etc. for contract workers by EPC contractor (NEPCS). SBIIPCL was recommended to take actions to close the issues identified in labour audit report. Section 3.2.2 of this report update on current status on compliance w.r.t minimum wage and overtime.

6 Develop, communicate and operationalise the

worker’s grievance mechanism

Grievance Mechanism in place and conveyed to all stakeholders

March 2015 SBIIPCL has complied with this action plan and it was mentioned in previous audit report as well.

7 Complete implementation of corrective actions

based on first EHSS audit findings as per the

audit action plan and submits an action taken

report.

Action taken report 31 March 2015 Implementation of corrective actions based on first EHSS audit findings are being audited internally by SBIIPCL through BCAS and are being verified by ERM during quarterly auditing. ERM’s observations on each of the action item are presented in Table 4.1. Overall there is satisfactory progress with respect to



57

S.


ERM Observations

(as on 11 Sep 2015)

implementation of corrective actions during construction; however with project now in operations there are certain action items, which further need to be implemented in line with the specific recommendations given in italics text in Table 4.1.

8 O&M stage I documentation for management

of environment, health and safety performance

appropriately incorporating IFC Performance

Standards and Good International Industry

Practices.

Completed EHSMS Manuals

1 month prior to Combined Cycle Operation

Please refer to S. No.1 of Table 4.2.

9 Duty of care procedures implementation in

relation to hazardous waste treatment and

disposal facility.

List of the identified hazardous waste facilities

28 February 2015 Please refer to S. No. 3.1 – “Waste Management” of Table 4.1

10 The Company will as part of its monitoring

program continue to monitor bird species

within the project area of influence

Half yearly compilation Ongoing for two years

SBIIPCL has engaged Dr. Mohammad Firoj Jaman of Department of Zoology, University of Dhaka to conduct migratory bird survey for the project. The survey was conducted during 7th-8th December 2015 encompassing five Beels (water bodies) within the project study area. The two day survey recorded 43 bird species in Hakaluki Haor and Bara beel of which majority were identified to be as water birds. The study report does not indicate any change/disruption of migratory bird movement or habitat due to the project; however it is recommended in the report that an annual monitoring is undertaken to comprehensively assess the potential impact on migratory bird habitat, if any throughout the lifecycle of the project. The subsequent surveys to be undertaken to be focusing on the transmission line stretch (~70m) and outcome utilised for development of an Avifauna Management Plan, if required, based on the assessment of any impact on the avifauna due to the transmission lines.



58

S.


ERM Observations

(as on 11 Sep 2015)

11 Develop and implement Livelihood

Restoration Plan

LRP in place and finalised in consultation with community and detailed PAH level LRP prepared and implementation complete

May 2015 (LRP development) August 2015 (for LRP implementation)

LRP is prepared. An NGO called as IDEA is engaged for LRP implementation. Refer section 3.2.5 for status on LRP implementation

12 Develop and implement comprehensive

stakeholder engagement plan and a detailed

Grievance Mechanism for the community.

SEP in place and communicated to all stakeholders.

August 2015 SEP and GRM is prepared and disclosed with stakeholders. Refer section 3.2.6 of this report for detail.

13 Completion audit of the resettlement/

livelihood restoration activities demonstrating

compliance with IFC PS5 or, if necessary,

identifying any remaining gaps and

corresponding corrective actions

Completion audit report and action taken report, if necessary

December 2016 As LRP implementation got delayed and it was recommended in previous audit report that time schedule for completion of audit report should be shifted to August 2017, considering the timeframe of LRP implementation activities. So SBIIPCL should stick to revised schedule for LRP implementation and its completion audit report.



59

5 EHS&S REGULATORY COMPLIANCE ASSESSMENT

In addition to the CAP & ESMMP compliance assessment the ERM team has performed an EHS&S compliance audit of the

project for construction and operations phase. The audit has been conducted to assess project compliance with respect to

applicable local and national regulations including key permit/license conditions and has been based on site visits, site personnel

interviews and document reviews with the findings/observations being presented in Table 5.1 for reference. In order to establish

the compliance status, a risk rating with appropriate colour coding has been used for easy referencing, which is as follows:

High Significant deviation/departure from EHS&S regulations/permit conditions leading to legal prosecution, imposition of hefty

fines/penalties and or both requiring senior management intervention

Medium Substantial deviation from EHS&S regulations/permit conditions resulting in limited legal liability managed through interventions at

site management level

Low Minor deviation from EHS&S regulations/permit conditions managed through intervention of project EHS manager/personnel

Information to be

provided

Pending information to be shared for assessing compliance status

Table 5.1 EHS&S Regulatory Compliance Status

S. No Regulatory Requirement Finding /Observation Risk Rating Recommendation

1 Conditions of Environmental Clearance Letter dated 17 June 2015

1.1 All parameters of effluent, gaseous emission,

noise, solid waste, hazardous waste, etc. shall be

within the limits in the Environment

Conservation Rules (ECR) 1997. In case of non-

coverage of ECR 1997 the World Bank

Environment, Health and Safety Guideline shall

be adhered to.

Refer to S. No. 3.1 – Stack Emissions; Effluent Discharge;

Waste Management; Noise Quality; Surface Water

Quality of Table 4.1.

Refer to S. No. 3.1 – Stack Emissions; Effluent

Discharge; Waste Management; Noise Quality;

Surface Water Quality of Table 4.1.

1.2 Comprehensive Environmental Performance

report shall be submitted on a monthly basis to

both the DOE offices.

Environmental Performance Report (EPR) has been

prepared and submitted to DoE on 3 Feb 2016 and 4

Jan 2016 respectively. However review of the reports

indicates that the EPR though bear the EC conditions

however, the compliance status of the same has not

Update the EPR to include discussion on

the compliance status of the EC conditions.



60


been discussed and elaborated.

1.3 There shall be specific format for Environment

Monitoring. Environmental Monitoring Reports

shall be made available simultaneously to DOE

Head Quarter in Dhaka and Sylhet Divisional

Office on a monthly basis during the construction

& operation stage of the power plant.

The facility has developed a format for documenting

the environmental monitoring information for

operations and the same has been submitted to DOE

Head Quarter in Dhaka and Sylhet Divisional Office

on 4 January 2016. Review of the format reveals the

following gaps viz. the ambient air results not

expressed in units; error in the PM10 and PM2.5

standards being referred as part of Bangladesh ECR,

1997 etc.

Continue with the submission of

environmental monitoring report to both

DOE Head Quarter in Dhaka and Sylhet

Divisional Office on a monthly basis.

Ensure correct reference to the Bangladesh

Air Quality Standards and ambient air

results to be expressed in units specified in

the aforesaid standards

1.4 The noise level of the Power Plant area shall not

exceed the standard for industrial area mentioned

in ECR, 1997.

SBIIPCL has performed in house monitoring of

ambient noise quality in January 2016 at 8 locations

within the project premises viz. cooling water tower;

water treatment area; dormitory; gas station;

generator yard; fuel engine room; boiler room and

water pumping station. Review of the results

indicates compliance with both day and night time

noise standards specified for industrial area under

Bangladesh ECR, 1997.

2 Conditions of Boiler Registration

2.1 Boiler to be operated by certified boiler operator As per the condition of boiler registration permit,

boiler to be operated by certified boiler operator.

Compliance status still need to be assessed based on

availability and review of the certification copy of the

personnel involved in boiler operations at the plant.

This matter was discussed during the closing

meeting and SBIIPCL has confirmed that no such

permission is required; however, as this is part of the

condition imposed in the permit, a clarification is

required to be taken from the authority.

Obtain clarification from the competent

authority regarding condition related to

boiler operator certification.

3 Conditions of Factories License

3.1 First Aid Boxes to bear photographs of first aid

responders

As recommended in the 19 November ERM audit

report SBIIPCL has displayed the photographs of

certified first aid responders near all first aid boxes

location.



61


3.2 The occupier of the factory is required to set up a

“Worker Participation Fund” and “Worker Welfare Fund” in accordance to the provisions of the Bangladesh Labour Law 2006.

SBIIPCL is yet to establish a Worker Participation

Fund and a Workers Welfare Fund to comply with

the provision of Bangladesh Labour Law and

condition specified in the Factories License.

Establish a Worker Participation Fund and

a Workers Welfare Fund to comply with

the factories license requirement and

Bangladesh Labour Law provision.

4 Conditions of HSD Storage License

4.1 The tank or tanks shall be supported on an

approved foundation and shall be surrounded by

a wall or embankment of substantial construction,

or shall be partially sunk in an excavation. The

enclosure thus formed shall contain only one of

the following classes of petroleum, shall be of

dimension sufficient to contain

the quantity of petroleum specified under the

class to be stored and shall be so constructed and

maintained as to prevent the escape therefrom of

any petroleum in the form of liquid, whether

under the action of fire or otherwise.

Proper embankments were found to have been

provided for HSD storage tanks for the emergency

DG set as well as for the one located in the fire pump

house

4.2 All tanks shall be fitted with a vent pipe leading

into the open air, the open end being covered

with fine copper or other non-corroding metal

wire gauze of mesh not less than 11 to the linear

centimetre and fitted with a hood or the tank shall

be fitted with an approved relief valve or other

approved means for preventing dangerous

internal or external pressures being produced.

Visual observation did not reveal the presence of any

vent pipe or approved relief valves for the HSD

storage tanks to prevent any generation of pressure

from accumulation of dangerous vapour/fumes.

However this needs to be confirmed based on review

of the design document of the tanks.

Share design document of HSD tanks to

assess the compliance status related to

provision of vent pipes/approved relief

valves.

4.3 The licensee to keep records and accounts of all

petroleum in stock and issues and shall exhibit

his stocks and records to the Inspector or a

Sampling Officer

The chemical inventory sheet being maintained by

SBIIPCL does not bear information of HSD storage

and supplies.

Update chemical inventory sheet to

include storage and supply details of HSD.

5 Bangladesh Petroleum Act, 1934 & Petroleum Rules, 1937

5.1 As per Section 7 of this Act any person is

required to obtain a license for the transport or

storage of class II petroleum if the total quantity

in his possession at any one place does not exceed

two thousand liters and none of it is contained in

a receptacles exceeding one thousand litres in

capacity.

As discussed in the ERM Audit Report of 19

November 2015 the factory has diesel storage of 4KL

being kept in two tanks of 2KL capacity each.

Necessary license for such storage is available from

Department of Explosives, Bangladesh with the same

being valid till 31 December 2017. However as

observed during this visit the O&M contractor is

having an additional diesel storage of 1.36 KL

Obtain license from Department of

Explosives, Bangladesh for additional

storage of 1.36KL of diesel within the

factory premises.



62


capacity to fuel the generator set at the fire pump

house during emergency. No license was available

for this additional storage as per the provisions of the

Petroleum Act, 1934.

5.2 77. Approval of vehicles for transport in bulk

necessary. (1) Petroleum in bulk shall not be

transported by land except under a licence

granted under these rule in a vehicle of a type

approved in writing by the Chief Inspector.

As reported the diesel storages at the facility is

periodically refilled by deploying a third party

vehicle carrying diesel in bulk. To this regard the

O&M contractor has not verified the availability and

validity of the license issued by Department of

Explosives to the vendor for such bulk transportation

of petroleum.

Obtain and check validity of license issued

by Department of Explosives, Bangladesh

for the vendor involved in bulk

transportation of diesel at the factory.

5.3 99. Marking of capacity of tanks: The capacity in

litres of every tank in an installation shall be

conspicuously marked on the tank.

Diesel at the factory is being stored in 3 tanks (2 X

2KL capacity each and 1 X 1.35KL capacity); however

the capacity has not been conspicuously marked on

the tankages.

Ensure the diesel storage tanks are

conspicuously marked with their capacity

as required under Petroleum Rules.

5.4 102. Earthing of tanks: All tanks or other

receptacles for the storage of petroleum in

bulk other than well-head tank or tanks or

receptacles of less than 45,000 litres capacity

containing class III petroleum, shall be electrically

connected with the earth in an efficient manner

by means of not less than two separate and

distinct connections placed at opposite

extremities of such tank or receptacle.

Earthing was not available for the diesel storage tank

of capacity 1.36KL located near the fire pump house

Ensure provision of effective electrical

connection for the diesel storage tank near

the fire pump house for earthing purpose

6 Bangladesh Labour Law 2006 (as amended 2013)/Bangladesh Factories Rules, 1979

6.1 68. Cranes and other lifting machinery : The

following provisions shall apply in-

(a) every part thereof, including the working gear,

whether fixed or movable, ropes and chains and

anchoring and fixing appliances shall be-

(i) of good construction, sound material and

adequate strength,

(ii) properly maintained,

(iii) thoroughly examined by a competent person

at least once in every period of twelve months

and a register shall be kept containing the

prescribed particulars of every such

examination;

The facility currently operates five (5) overhead

travelling cranes which are being subjected to

periodic internal examination by NEPC. The records

of such examination were found to be maintained in

accordance to a format specified in the project EHS

Plan. However prior to putting these machineries in

use for first time in this facility no examination has

been performed by engaging a competent person for

specifying the safe working load. It was reported that

all the equipment’s were commissioned and checked by OEM, who manufactured this and after one year

of operation these will be due for inspection by

competent person.

Engage a competent person to perform

examination of overhead travelling cranes

and records of such examination

maintained in Form 9. Ensure such

examination is undertaken for the lifting

machinery on an annual basis.



63


(b) no such machinery shall be loaded beyond the

safe working load which shall be plainly

marked thereon; and

€ while any person is employed or working on or

near the wheel-tract of a traveling crane in any

place, where he would be liable to be struck by

the crane, effective measures shall be taken to

ensure that crane does not approach within six

meter of that place.

6.2 69. Hoists and lifts : (i) In every establishment

every hoist and lift shall be- (a) of good

mechanical construction, sound material and

adequate strength, (b) properly maintained,

(c) shall be thoroughly examined by competent

person at least once in every period of six

months, and a register shall be kept containing

the prescribed particulars of every such

examination.

The facility operates eight (8) hoist and two (2) lifts

which have not been subjected to initial examination

by a competent person prior to their first time in use

at the facility. No periodic examination is also being

performed for the aforesaid hoist and lifts as required

under Bangladesh Labour Law provisions. It was

reported that all the equipment’s were commissioned and checked by OEM, who manufactured this and

after one year of operation these will be due for

inspection by competent people.


examination of hoist and lifts in use at the

facility to specify the safe working loads.

Ensure such examination of lifting

equipment is undertaken on a six monthly

basis.

6.3 89. First-aid appliances : (1) there shall, in every

establishment be provided and maintained, so as

to be readily accessible during all working hours

first-aid boxes or cupboards equipped with the

contents prescribed by rules.

(3) Every first-aid box or cupboard shall be kept

in charge of a responsible person who is trained

in first-aid treatment and who shall always be

available during the working hours of the

establishment.

The first aid boxes at the facility were found to be

kept in charge of certified first aiders from SBIIPCL

and EPC contractors. However with project in

operations from December 2015 no workers from the

O&M team has been identified and trained on first

aid treatment as required under the Bangladesh

Labour Law provisions.

Identify and train at least 1/4th of the O&M

workforce on first aid treatment as per the


6.4 79. Dangerous operations : (d) providing for the

protection of all persons employed in the

operation or in the vicinity of the places where it

is carried on and the use of any specified

materials or processes in connection with the

operation; and

€ notice specifying use and precautions regarding

use of any corrosive chemicals.

During the site walkthroughs absence spill kits were

observed at the following areas:

Acid and alkali storage area; and.

Hazardous Waste Storage Area

Additionally no secondary containment was

observed at the hazardous waste storage area.

Ensure display of provision of spill kits at

the designated storages for acid, alkalis

and hazardous waste. Provide secondary

containment at the hazardous waste

storage to control any accidental

spills/releases to the storm water drain

nearby.



64


6.5 6. Service Book: (1) Every employer shall, at his

own cost, provide a service book for every worker

employed by him.

Reportedly a total of 95 workers have been deployed

for factory operations however a service book is not

being maintained for each worker as required under

the provision of Bangladesh Labour Law, 2006.

Maintain a service book for all workers

containing the following particulars viz. (a) name of the worker, name of mother

and father and address of the worker; (b)

date of birth, (c) particulars necessary for

identification, (d) name and address of the

employer under whom previously

employed, if any, (e) period of

employment, (f) occupation or designation,

(g) wages and allowance, if any, (h) leave

availed, and (i) conduct of the worker.

6.6 9. Register of Workers: (1) The employer of every

establishment shall maintain a register of

workers, to be available to the Inspector at all

times during working hours.

The factory was not found to maintain a register for

all workers being engaged at the factory for the

operations stage.

Maintain a register of workers in Form 14

comprising the following viz. (a) the name

and date of birth of each worker in the

establishment; (b) date of appointment; (c)

the nature of his work; (d) the periods of

work fixed for him; (e) the intervals for rest

and meals to which he is entitled; (f) the

days of rest to which he is entitled; (g) the

group, if any, in which he is included; (h)

where his group works on shifts, the relay

to which he is allotted; and (i) such other

particulars as may be prescribed by rules.

6.7 90. Maintenance of safety Record Book: In every

establishment factory wherein more than twenty

five workers are employed, shall maintain

compulsorily, in the prescribed manner, a safety

record book and safety board.

The factory operating with nearly 95 O&M workers

presently does not maintain a safety record book and

safety board to comply with this legal requirement.

Maintain both safety record book and

safety board in prescribed format for

operations as specified in the Bangladesh

Labour Law.

6.8 111. Notice of periods of work for adults and

preparation thereof : There shall be displayed

and correctly maintained in every establishment

in accordance with the provisions of section 337, a

notice of periods of work for adult workers

showing clearly the periods which adult workers

may be required to work.

Notice of period of works for adult workers has not

been displayed at the factory as required under the


Ensure display of notice depicting the

work period for workers operating at

factory.

6.9 205. Participation committee : (1) The employer

in an establishment in which fifty or more

workers are normally employed shall constitute

The factory with an O&M workforce of 95 personnel

has not constituted a Participation Committee

comprising representatives of both employer and

Constitute a Participation Committee with

equal representation from both employer

and workers. The Participation Committee



65


in the prescribed manner workers. The function of the Participation Committee

is to work towards improvement and maintenance of

safety, occupational health, welfare and working

condition at the factory.

to meet at least once in every two months

with proceedings of every meeting to be

submitted to the Director of Labour within

seven days of such meeting.

6.10 337. Abstracts of the Act, Rules and Regulations

to be displayed: (1) The employer of every

establishment shall cause to be displayed in a

conspicuous and accessible place at or near the

main entrance of the place of work or the

establishment, as the case may be, a notice in

Bangla containing an abstract of the important

provisions of this Act and of the rules and

regulation.

The Abstract of key provisions of Bangladesh Labour

Law, 2006 has not been displayed by the factory in

local language i.e. Bangla at the main entrance.

Ensure display of abstract of the key

provisions of the Bangladesh Labour Law

2006 in Bangla at the main entrance of the

factory.

6.11 47. Pressure plant.- (1) Every plant or machinery

other than working cylinder of prime movers

used in a factory, and operated at a pressure

greater than atmospheric pressure, shall be- (a) of

good construction, sound material, adequate

strength and free from any patent defect; (b)

properly maintained in a safe condition; (c) fitted

with- a suitable safety valve,

a suitable pressure gauge, a suitable stop valve

and a suitable drain cock or valve and (d)

thoroughly examined by a competent person-

The facility operates pressure vessels in the form of

air compressors, boilers, hydrogen and carbon

dioxide storage tanks. However since there

installation in 2015 these pressure vessels have not

been subjected to examination (both internal and

external) including hydraulic testing by a competent

person and records maintained in prescribed format

(Form No. 10).

Further the metal plate on the air compressors near

turbine building were not found to bear the following

information viz. design pressure and date of first and

subsequent hydrostatic testing. This is required

under Rule 6 of the Pressure Vessel Rules, 1995.


examination of pressure vessels as per the

following frequency: (a) externally, once in

every period of six months, and (b)

internally, once in every period of twelve

months; and (c) hydraulic testing, at

intervals not more than four years.

Signed copies all examination undertaken

by competent person to be maintained in

Form No.10 for verification by the

Inspector, as and when required.

Ensure information related to test pressure

and hydrostatic test (both initial and

subsequent) is marked on all pressure

vessels at the factory.

6.12 52. Firefighting apparatus and water supply:

(9) Every worker of the factory should, as far as

possible, be trained in the use of portable fire

extinguishers subject to a minimum of at least

one-fourth of the numbers engaged separately in

each section of the factory.

(11) The Manager of the factory shall prepare a

detailed 'Fire Safety Plan' for proper enforcement

Documentation review reveals that the O&M

contractor has prepared and implemented specific

checklist for inspection of both fire extinguishers and

fire hydrant systems installed at the factory.

However O&M workforce has not been trained on

the proper usage of portable fire extinguishers as

required under this Law.

As discussed in the earlier ERM audit report the

Ensure at least 1/4th of the operational

workforce is adequately trained on the

usage of portable fire extinguishers.

Ensure the Fire & Life Safety Expert of the

O&M contractor formulates a Fire Safety

Plan on a fast track basis based on a

detailed fire safety assessment of the

factory.



66


of fire safety rules and for actions to be taken, in

proper sequence, in the case of a fire in the

factory.

factory has engaged a Fire & Life Safety Expert for

carrying out a detailed fire safety assessment of the

building followed by preparation of a Fire Safety

Plan. However the same is found to be pending

during the ERM audit team visit.

6.13 56. Ambulance room. (1) The ambulance room or

dispensary shall be in charge of a qualified

medical practitioner assisted by at least one

qualified compounder and nurse and such

subordinate staff as the Chief Inspector may

direct. The medical practitioner shall always be

available on call during working hours.

(6) The occupier of every factory shall, for the

purpose of removing serious cases of accident or

sickness, provide in the premises and maintain in

good condition a suitable transport unless he has

made arrangements for obtaining such a

transport from a hospital.

For operations a dedicated first aid room is available

at the factory which is being periodically visited by

paramedical officer/male nurse in comparison to

qualified medical practitioner required as per

Factories regulation. Also as observed the first aid

room is not found to be equipped with resources as

specified in the Factories Rules provisions. However,

it was confirmed by the management that there is a

local doctor available on call, who is also providing

his services in the company supported community

health centre. There is no provision of a dedicated

ambulance at site, however it was confirmed that a

dedicated vehicle will always be available at site to

address any serious case of accident or sickness to the

nearest medical facility

Equip the first aid room with resources as

prescribed in the relevant provisions of the

Bangladesh Factories Rules, 1979.

Maintain dedicated vehicle at the factory

premises for removing any serious cases of

accident or sickness to the nearest medical

facility.

6.14 100. Register of accidents and dangerous

occurrence.- The Manager of every factory shall

maintain a Register of all accidents and

dangerous occurrences which occur in the factory

in Form No. 28

The factory does not maintain a register of accidents

in Form 28 as specified under relevant provision of

the Factories Rules.

Maintain a register of accidents in Form 28

to comply with the Factories Rule

provision.

8 Electricity Rules, 1937

8.1 Rule 42, 45 & 49 of the Electricity Rules, 1937

Insulated rubber mats were not provided near the

high/medium voltage electrical panels at the turbine

building, fire pump house and electrical room of the

CCB building to serve for protection against electric

shock. Further display of danger signages on the

electrical panels and instruction for restoration of

persons suffering from electrical shock was lacking in

the CCB electrical room.

Ensure provision of rubber mats near all

high/medium voltage electrical panels.

Danger signages to be also displayed on all

such panels.

Ensure display of instructions in English

and Bangla for the restoration of persons

suffering from electrical shock at

conspicuous places within the factory

particularly in the electrical rooms.



67

6 CORRECTIVE ACTION ITEMS

The corrective action items identified based on the assessment undertaken with respect to ESSMP, CAP, IFC ESAP commitments and labour audit & social monitoring performed has been presented in Table 6.1. This table also outlines the tentative timelines for completion of each of the action item as specified by SBIIPCL.

Table 6.1 Corrective Action Items List

S.

No. Action Item Responsibility[1] Completion Timeline[2]

A CAP, ESMMP & IFC ESAP

1 Implement LOTO checklist integral to the work ticket being issued for electrical maintenance

activities.

NEPC-S May 2016

2 Update the legal register to incorporate the conditions outlined in the applicable EHS permits

and national regulations. Regularly monitor and document the compliance status of this legal

register on a monthly basis.

NEPC-S July 2016

3 Ensure future bird surveys are specifically focussed on the transmission line stretch (~70m) and

outcome utilised for development of an Avifauna Management Plan, if required.

NPEC-S December 2016

4 Ensure thorough implementation of the training program in accordance to the annual training

calendar prepared for the year 2016

NPEC-S June 2016

5 Perform a training needs assessment study of the operational workforce and utilise the outcome

to develop and implement the training calendar.

SBIIPCL & NEPC-S August 2016

6 Update the Emergency Response Procedure for operations to include the components related to

emergency classification; defining ERT roles and responsibilities; resource availability;

interfacing with offsite emergency responders; contact details of emergency responders;

induction for workers/visitors; training on emergency response and community disclosure of

potential emergencies/risks.

SBIIPCL & NEPC-S August 2016

7 Update the PPE checklist to include provision for assessing and evaluating the condition of PPE

in use by the workforce.

NEPC-S June 2016

8 Update the training presentation based on the training needs assessment study to be undertaken

for operations.

SBIIPCL July 2016

9 Simplify and update the Incident Reporting Process flow diagram to recognize the roles of both

NEPC and SBIIPCL EHS personnel in the overall reporting and investigation process.

SBIIPCL & NEPC-S July 2016



68

S.


10 Perform monthly monitoring of the Operations ESMMP implementation with findings to be

shared with NEPC-S as part of monthly EHS meetings for closure

SBIIPCL July 2016

11 Perform quarterly monitoring of NOx at Parkul, Bongaon and Paharpur quarterly basis within 3

months of operation

SBIIPCL/NEPC-S June 2016

12 Undertake recalibration of the continuous ambient air quality monitoring stations (CAAQMS) NEPC-S August 2016

13 Commence with ambient noise monitoring at Paharpur and Parkul village locations on a

quarterly basis as specified in the ESMMP.

SBIIPCL/NEPC-S July 2016

14 Improve the laboratory infrastructure through procurement of relevant analytical

equipment/facilities for monitoring the key environmental parameters viz. BOD, TSS, TDS and

Oil & Grease.

NEPC-S July 2016

15 Conduct quarterly monitoring of all inland water discharge parameters specified in Schedule 10

of the Bangladesh ECR, 1997 to check for conformance and also to assess ETP performance


16 Update the river water quality monitoring program to include DO and Total Coliform as

specified in Schedule 3 – Standards for Inland Surface Water of Bangladesh ECR, 1997

NEPC-S July 2016

17 Update the Waste Management Procedure to include all notifiable hazardous waste streams and

their management measures. Regularly maintain a waste inventory for all wastes identified in

the Waste Management Procedure.

SBIIPCL & NEPC-S June 2016

18 Execute a waste disposal contract/agreement with Lafarge Chatak facility to facilitate disposal

of used/waste oil. Identify third party vendors for disposal of other important hazardous waste

streams; audit the facilities of waste disposal vendors prior to executing a contract.

NEPC/SBIIPCL June 2016

19 Update the Caustic & Acid Handling Procedure based on the review of chemical usage

requirements for operations.

SBIIPCL June 2016

20 Document the visual checks for erosion monitoring in the form of a monthly report providing a

comparative time-series analysis.

SBIIPCL July 2016

21 Ensure provision of spill kits and display of warning and PPE requirements at the acid and

alkali storage areas. Periodic inspection to be undertaken for all chemical emergency response

equipment and records maintained for verification.

NEPC-S June 2016

22 Develop a consolidated EHS Plan for operations and the same to be shared with all sub-

contractors for agreement.

SBIIPCL/NEPC-S September 2016

23 Induction training modules to be developed and implemented for both operational workforce

and visitors.

NEPC-S July 2016

24 Facilitate initial medical examination for the remaining operations workforce and fitness

certificate issued to be maintained for verification.

NEPC-S July 2016



69

S.


25 Ensure full participation of the operational workforce during implementation of the quarterly

mock drills being undertaken. Further an inspection checklist to be developed and implemented

for fire hose reels and records for the same maintained


26 Perform a site assessment study to identify any potential environmental issues/concerns related

to decommissioning of temporary site offices and construction equipment and accordingly

develop an action plan for managing the same.

SBIIPCL December 2016

27 Organogram for both SBIIPCL and NEPC-S are interlinked with performance indicators and

training needs identified for implementation of ESMMP for operations.

SBIIPCL July 2016

28 Formulate a Pest Management SOP on a fast track basis in order to comply with the March end timeline specified in the ESAP.

SBIIPCL June 2016

29 Formulate a ODS usage SOP on a fast track basis in order to comply with the March end timeline

specified in the ESAP.

SBIIPCL June 2016

30 Engage a qualified and experience agency/expert on a fast track basis to perform a QRA study

of the project operational risks.

SBIIPCL July 2016

31 Develop a disclosure plan for communicating the project operational risks/hazards to the

nearby communities.

SBIIPCL July 2016

32 Undertake assessment of the project fire safety risks and preparedness for operations and the

outcome utilised for development of a Corrective Action Plan (CAP)

SBIIPCL June 2016

33 Finalise the green belt development for the project site on a fast track basis. SBIIPCL July 2016

34 Engage a third party vendor under an annual maintenance contract improve green belt species

survival rate.

SBIIPCL September 2016

B EHSS Legal Compliance

1 Update the EPR to include discussion on the compliance status of the EC conditions. SBIIPCL July 2016

2 Obtain clarification from the competent authority regarding condition related to boiler operator

certification.

SBIIPCL July 2016

3 Share design document of HSD tanks to assess the compliance status related to provision of vent

pipes/approved relief valves.

SBIIPCL July 2016

4 Update chemical inventory sheet to include storage and supply details of HSD. NEPC-S June 2016



70

S.


5 Obtain license from Department of Explosives, Bangladesh for additional storage of 1.36KL of

diesel within the factory premises.

SBIIPCL June 2016

6 Obtain and check validity of license issued by Department of Explosives, Bangladesh for the

vendor involved in bulk transportation of diesel at the factory.

NEPC-S June 2016

7 Ensure the diesel storage tanks are conspicuously marked with their capacity as required under

Petroleum Rules.

NEPC-S July 2016

8 Ensure provision of effective electrical connection for the diesel storage tank near the fire pump

house for earthing purpose.

NEPC-S June 2016

9 Engage a competent person to perform annual examination of overhead travelling cranes and

maintain records of such examination in Form 9.

NEPC-S December 2016

10 Engage a competent person to perform examination of hoist and lifts in use at the facility to

specify the safe working loads. Ensure such examination of lifting equipment is undertaken on a

six monthly basis.


11 Identify and train at least 1/4th of the O&M workforce on first aid treatment as per the


NEPC-S May 2016

12 Ensure display of provision of spill kits at the designated storages for acid, alkalis and

hazardous waste. Provide secondary containment at the hazardous waste storage to control any

accidental spills/releases to the storm water drain nearby.

NEPC-S June 2016

13 Maintain a register of workers in Form 14 as prescribed in the Bangladesh Labour Law, 2006. NEPC-S July 2016

14 Maintain both safety record book and safety board in prescribed format for operations as

specified in the Bangladesh Labour Law. Ensure display of notice depicting the work period for

workers operating at factory.

NEPC-S Immediate

15 Engage a competent person to perform examination of pressure vessels as per the following

frequency: (a) externally, once in every period of six months, and (b) internally, once in every

period of twelve months; and (c) hydraulic testing, at intervals not more than four years.

Records of all examinations to be maintained in Form 10


16 Display information related to test pressure and hydrostatic test (both initial and subsequent) is

marked on all pressure vessels at the factory.

NEPC-S September 2016

17 Ensure at least 1/4th of the operational workforce is adequately trained on the usage of portable

fire extinguishers.

NEPC-S July 2016

18 Ensure the Fire & Life Safety Expert of the O&M contractor formulates a Fire Safety Plan on a

fast track basis based on a detailed fire safety assessment of the factory.

NEPC-S July 2016

19 Equip the first aid room with resources as prescribed in the relevant provisions of the

Bangladesh Factories Rules, 1979.

NEPC-S July 2016



71

S.


20 Maintain dedicated vehicle at the factory premises for removing any serious cases of accident or

sickness to the nearest medical facility.

NEPC-S July 2016

21 Ensure provision of rubber mats near all high/medium voltage electrical panels. Danger

signages to be also displayed on all such panels. Display of instructions in English and Bangla

for the restoration of persons suffering from electrical shock at conspicuous places within the

factory

NEPC-S July 2016

Note: [1] Overall responsibility of ensuring compliance to the action items associated with NEPC-S will be of SBIIPCL and SBIIPCL should communicate the action

items with NEPC-S as well as monitor the compliance on a regular basis. [2] Compliance timelines have been discussed with SBIIPCL and agreed.



72

7 CONCLUSION

SBIIPCL has commenced with the single cycle operation on 6 June with COD

for combined cycle operations being declared on 28 December 2015. China

Northeast Electric Power Engineering and Services Co. Ltd (NEPC-S) has been

engaged as the Operations and Maintenance (O&M) Contractor. However,

EPC Contractor will still be responsible for all sorts of construction,

maintenance and operation of the power plant. O&M Contractor will

commence with their activities following handing over the project to them by

the EPC Contractor.

With project now in combined cycle operations, SBIIPCL compliance to

operational EHSS requirements has been assessed to be satisfactory. However,

continued efforts need to be made by SBIIPCL towards tracking regulatory

and operations ESMMP compliance on a regular basis, through development

of a register comprising of all permit and ESMMP conditions (particularly

with respect to environmental monitoring). For operations, other key focus

area for SBIIPCL includes - development of a dedicated fire safety plan and

community disclosure plan for operational risks, ensuring scientific disposal

of hazardous waste, performing QRA study and facilitating coverage of entire

operations workforce for initial medical examination.

With operations now in full swing, it is crucial for both SBIIPCL and its

contractors to apprise the workforce on the EHSS requirement for this phase

(particularly operations ESAP) and sustain with the efforts being made to stay

in compliance. The compliance status with respect to the corrective action

items as outlined in the earlier section will be verified during the next visit to

be undertaken by ERM.

Annex A

Photo-Documentation

Photo-documentation

ERM India Private Limited Building 10, 4th Floor, Tower A, DLF Cyber City

Gurgaon – 122 002, India Board: +91- 0124 4170300 Fax: + 91-0124 - 4170301

Photo 2:

0265459 – Fourth EHS&S Compliance Audit – Construction Phase (Bibiyana II)

Summit Bibiyana II Power Company Limited (SBIIPCL), Bangladesh

Photo 1: Insulated rubber mats absent in front of electrical panels at CCB building electrical room

Photo 2: Display of certified first aider details near first aid boxes

Photo 3: Display of emergency contact information at conspicuous places

Photo 4: Licensed CO2 storage installation Photo 5: DM Water Storage Tanks Photo 6: Metallic ropes used for lifting observed to be damaged

Project:

Client :

Photo-documentation



Photo 2:



Photo 7: Safe working load not displayed for lifting tools and tackles

Photo 8: Hydrogen storage installation Photo 9: Diesel Storage tank without proper labelling, containment and spill kit provision

Photo 10: Air compressor tanks lacking display of design pressure and hydrostatic test details

Photo 11: Eye wash stations installed and operating at the Alkali & Acid Storage area

Photo 12: Designated onsite Hazardous Waste Storage Shed

Project:

Client :

Photo-documentation



Photo 2:



Photo 13: Display of PPE requirement onsite Photo 14: Hazardous waste storage drums lacking containment and spill kit provision

Photo 15: Implementation of color coded bins for storage of designated waste

Photo 16: Fire Pump Room onsite Photo 17: Coloured discharges into the Khusiyara River from common effluent discharge point

Photo 18: Transformer Yard onsite

Project:

Client :

ERM consulting services worldwide www.erm.com

ERM has over 140 offices

Across the following

countries worldwide

Argentina Netherlands

Australia Peru

Belgium Poland

Brazil Portugal

China Puerto Rico

France Singapore

Germany Spain

Hong Kong Sweden

Hungary Taiwan

India Thailand

Indonesia UK

Ireland USA

Italy Venezuela

Japan Vietnam

Korea

Malaysia

Mexico

ERM India Private Limited

Building 10, 4th Floor

Tower A, DLF Cyber City

Gurgaon NCR – 122 002

India

Tel : 91-124-4170300 Fax: 91-124-4170301 Email: [email protected] www.erm.com