Access Building Energy Solar One
This Environmental and Social Review Summary (ESRS) is prepared by MIGA staff and disclosed prior to the date on which MIGA’s Board of Directors considers the proposed issuance of a Contract of Guarantee. Its purpose is to enhance the transparency of MIGA’s activities. This document should not be construed as presuming the outcome of the decision by MIGA’s Board of Directors. Board dates are estimates only.
Any documentation that is attached to this ESRS has been prepared by the project sponsor, and authorization has been given for public release. MIGA has reviewed the attached documentation as provided by the applicant, and considers it of adequate quality to be released to the public, but does not endorse the content.
Access Infra Africa (also referred to as ‘Access’) and EREN Renewable Energy (also referred to as ‘EREN’) are seeking MIGA coverage for their equity and shareholder loan investments in a solar photovoltaic (PV) plant developed by the company Access Building Energy Solar One (ABESO), also referred to as the ‘Project Enterprise’. ABESO is a Special Purpose Vehicle (SPV) company owned by Access and EREN Renewable Energy responsible for managing construction and operational aspects of a 50 Mega Watt alternative current (MWAC) solar PV plant located in the Benban solar complex in the Aswan Province of Egypt (the project). The project forms part of the Egyptian government’s feed-in-tariff (FiT) scheme aimed at diversifying and securing Egypt’s electricity supply. The European Bank for Reconstruction and Development (EBRD) is also providing long term senior debt financing to the project.
In addition to the ABESO project, Access and EREN are seeking MIGA coverage for their equity and shareholder loan investments in one additional solar plant, the Access Egypt Solar One within the Benban solar complex-covered under a separate ESRS.
The project is allocated to plot 9-2 (approximately 97 hectares (Ha)) in the Benban solar complex. As mentioned above, the plant will have alternating current capacity of 50 MWACand peak direct current capacity of 63MWDCP, and will be linked to substation 2 (SS2) on the northeastern corner of the complex via an underground 22 kilovolt (kV) transmission line following the internal routes right-of-way (RoW) installed by Egypt Electricity Transmission Company (EETC).
The Benban solar complex comprises a 37-square kilometer (km2) area allocated to Egypt's New and Renewable Energy Agency (NREA) located in the Western Desert, 15 km west of the River Nile and approximately 1 km west of the Aswan – Luxor highway. The complex is approximately 650 kilometers (km) from Cairo. With the exception of the narrow and densely populated Nile Valley with its intensive agriculture, the area is all desert land, largely unused and unpopulated. The area is mainly flat, with sand and gravel dunes, and with no notable natural vegetation and no human activities. The nearest villages are Benban village, about 12 km east and Fares village about 25 km northeast of the Benban solar complex, with 26,200 and 11,000 inhabitants respectively. The nearest cities are Aswan, 40 km to the south and Luxor 140 km to the north.
The Benban solar complex is sub-divided into 39 plots each allowing for a solar plant of up to 50 MW with a total capacity for the entire site of up to 1.8 Gigawatts (GW). All the 39 plots are greenfield, and none have begun construction. One company from FiT round 1 has started preliminary works and constructed some basic facilities on the site including office, dispensary, workers resting area, and installed underground septic tanks, none of which are yet operational. The complex will be managed by a Facilities Management Company (FMC), currently under procurement. The FMC will be collectively appointed by NREA and the EETC in conjunction with the Benban Developers Association (BDA). In addition, international development finance institutions funding some of the projects within the complex (e.g. International Finance Corporation (IFC) and EBRD) have also provided advice during the procurement of the FMC. Management of the Benban solar complex is further explained under Performance Standard (PS) 1.
Power evacuation will be the responsibility of EETC. Power will be evacuated from the new substations via an existing 220 kV high voltage line, 12 km east of the Benban solar complex. EETC is currently conducting a grid connection study to assess the various alternatives to evacuate generated capacity. Options being considered at present include: (i) upgrading an existing 220 kV transmission line 12 km east of the Benban solar complex; and (ii) constructing a 180 km double circuit 500 kV transmission line north of the site.The new 500 kV line would be considered an Associated Facility to the complex. Funding and engineering studies are underway and once complete, EETC will also tender for an Environmental and Social Impact Assessment (ESIA) for this transmission line. AESO through the BDA will make reasonable efforts to ensure that E&S issues and risks identified (in particular those related to biodiversity and issues affecting communities) are managed in line with the PS.
TSK Electronica y Electricidad (TSK) will be the Engineering, Procurement and Construction (EPC) Contractor for the project. TSK was founded in 1986 and is considered to have extensive experience in the construction of PV power plants around the world. The Operations and Maintenance (O&M) contractor for the project will be a joint venture between TSK and Access Infra Africa. Project construction will last approximately 12 months and the plant is designed for a 25-year operational lifetime. The solar PV panel arrays will comprise 325W polycrystalline solar PV modules in 1x30 table configuration, mounted on single-axis tracker racking structures. The design also includes central inverter and transformer stations from which power is evacuated to the designated substation. Ancillary infrastructure includes access roads, storage, laydown areas and office buildings. The majority of the construction materials and equipment will be shipped to either Alexandria or Ain Sokhna and transported to site via trucks. Where possible, some equipment may be sourced locally and transported to site via the existing road. The project plot is in a greenfield site and in pre-construction phase. Construction is anticipated to start September 2017.
The project is Category B under MIGA’s Policy on Environmental and Social Sustainability (2013) because the E&S impacts associated with the project are limited, generally project-specific and readily addressed through mitigation measures. Key risks and impacts include water consumption, dust and air emissions, noise, occupational health and safety (OHS), and community safety.
The project forms part of a larger development, and as such, there are potential cumulative environmental and social impacts in the construction phase such as OHS, community safety, water consumption, dust, waste associated with the construction, and to a lesser degree the operational and decommissioning phases, which need to be managed in a coherent and coordinated manner. In order to address the potential cumulative impacts, the sponsors have joined the BDA. EETC together with NREA and in coordination with the BDA, will appoint an FMC to manage these common facilities and issues and be responsible for the development and implementation of the Environmental Social Health and Safety Management System (ESHS MS) for the Benban solar complex. This approach will assist in ensuring that ESHS risks are managed consistently by the developers, and that there is a well-managed and coordinated response to cumulative impacts.
While all Performance Standards are applicable to this project, MIGA’s environmental and social due diligence indicates that the project will have impacts which must be managed in a manner consistent with the following Performance Standards:
- PS1: Assessment and Management of Environmental and Social Risks and Impacts
- PS2: Labor and Working Conditions
- PS3: Resource Efficiency and Pollution Prevention
- PS4: Community Health, Safety and Security
The Benban solar complex land was previously open desert. It is now owned by NREA, and will be leased to the developers for a 25-year period. There will be no displacement (physical or economic), thus PS5 on Land Acquisition and Involuntary Resettlement is not applicable. The area comprises desert with minimal vegetation and surveys have not identified any features or species which would trigger PS6 for Biodiversity Conservation and Sustainable Management of Living Natural Resources. There are no Indigenous Peoples in the project area, and therefore PS7 on Indigenous Peoples is not applicable. The studies as part of the ESIA did not reveal cultural heritage, therefore PS8 on Cultural Heritage is not applicable. However, the project will develop a chance finds procedure in case of the identification of cultural/archeological resources in the area.
World Bank Group (WBG) EHS General Guidelines and Guidelines for Electrical Power Transmission and Distribution also apply to this project.
The following documents were reviewed by MIGA:
Benban, 50 MW Solar Photovoltaic (PV) Power Facility Aswan Governorate, Egypt Environmental Impact Assessment Form B Volume 1. Environmental Management Plan (5 Capitals, March 2016)
Environmental and Social Compliance Report – Benban Access Solar PV Project – Benban, Egypt (OST Energy, May 2017)
Environmental and Social Action Plan – Benban Access Solar PV Project – Benban, Egypt (OST Energy, May 2017)
Strategic Environmental and Social Assessment – Benban 1.8 GW photovoltaic solar park (NREA), Egypt (Eco Con Serv, February 2016)
EPC related documents: (i) Health, Safety, Environmental (HSE) Management Requirement; (ii) Health, Safety, Environmental (HSE) Management Plan; (iii) EPC Contract
MIGA’s E&S due diligence of the project consisted of: (i) review of client’s E&S and independent lender’s E&S advisor documentation, (ii) discussions with the client to assess its capacity to manage ESHS risks and compliance with the Egyptian regulatory requirements and MIGA’s PSs; (iii) discussions with the EBRD regarding their site visit (May 2017), project specific details and an overview of the Benban solar complex.
PS1: Assessment and Management of Environmental and Social Risks and Impacts
Environmental and Social Assessment and Management Systems: ABESO carried out the required environmental screening (Form B explained below) under Egyptian environmental law and subsequently developed a Framework Environmental and Social Management Plan (FESMP) that is aligned to international standards and provides a comprehensive description of the various project-specific management plans to be developed by the EPC and O&M contractors. The FESMP requires the Project Enterprise to produce a project-specific environmental and social management system (ESMS).
ABESO will develop the project-specific ESMS that will include policies, plans, procedures for effective E&S management (ESAP item # 1). TSK already has a corporate ESMS in line with ISO 14001 and OSHA 18001 standards. Elements from TSK’s ESMS will be integrated into the project-specific ESMS to ensure consistency between TSK practices and IFC/MIGA’s PSs and EBRD’s Performance Requirements (PR).
As per the requirements of the EPC contract, TSK will implement a Construction Environmental and Social Management Plan (CESMP) prior to the start of construction. The CESMP will be developed under the overarching principles of the FESMP and in line with MIGA’s PS, WBG EHS Guidelines, Strategic Environmental and Social Assessment (SESA) commitments (further detailed below), and permit requirements (ESAP item #2). The EPC contract references compliance with IFC PS/ EBRD PR and WBG EHS guidelines and lists a number of HSE related items such as HSE policy, hazard identification and risk assessment, health and safety standards, environmental mitigation measures, that must be included in the CESMP which adequately address the HSE management of the project during construction.
Identification of Risks and Impacts: The SESA for the Benban solar complex was prepared for NREA with funding from EBRD and in consultation with IFC with the objective of providing an overarching assessment of the E&S impacts of the Benban development. The SESA considered cumulative impacts with respect to the additional impacts expected beyond the development of a single solar power plant with individual developers responsible for defining and implementing site specific mitigations/recommendations as appropriate within their environmental management plans. Due to the development of the SESA, the individual projects within the solar park were categorized as requiring an Environmental Screening Form B (abbreviated ESIA) by the Egyptian Environmental Affairs Agency (EEAA). The SESA was used as the basis for the Form B preparation. This resulted in a more consistent approach at the individual project level for the Form B EIA preparation, and reduced the need for, and cost of, additional baselines. It also removed the need for a project-specific consultation process. ABESO submitted Form B applications to NREA on 3 April 2016 for plot 8-1 and obtained the corresponding environmental authorization on 10 May 2016.
Cumulative Impacts: The SESA concluded that the ESHS risks from individual solar developments at the Benban solar complex could be adequately managed through application of standard mitigation practices, but the cumulative impacts from several developments advancing in the same area at the same time could pose potential significant challenges and risks related primarily to traffic and transportation, occupational health and safety, accommodation, labor management, waste management, security and the management of stakeholder expectations from nearby local communities. The SESA also concluded that to address these common issues, a coordinated aligned approach was needed. It further noted opportunities for positive impacts related to engagement with the local communities and community investment efforts if carried out strategically and in a coordinated manner.
As such, the BDA was created in 2016 and reactivated in February 2017 to coordinate the various developers’ responses with regards to the management of common or shared facilities, activities or issues across the entire Benban solar complex. The Project Enterprise has membership in the BDA
Under an amendment to the Cost Sharing Agreement (CSA) between the EETC, NREA and the BDA, a FMC will be appointed by EETC and NREA on behalf of the developers to manage cross cutting construction and operation activities for the entire Benban solar complex. These activities include: managing labor and workers’ strategy which includes sourcing workers, establishing a common set of standards on employment (wages and benefits) among others, water and wastewater services, waste management services, logistics and security services, stakeholder engagement, worker accommodation, and community investment. This approach will ensure that ESHS risks are managed consistently, and that there is a coordinated response to cumulative issues. The FMC will also be responsible for the development and implementation of an overarching ESHS management plan. The FMC will be contractually obligated to provide construction and operation services in line with MIGA/IFC PS, EBRD PR, and European Investment Bank (EIB) E&S Standards.
The FMC will also provide “mandatory” services to all developers (whether they are in the BDA or not) during construction, including EHS management, traffic management, community stakeholder engagement and grievance management and waste management. The Project Enterprise and TSK will coordinate with the FMC to comply with all required items outlined in the SESA as “common issues”.
Management Programs: The FESMP includes an outline of monitoring and control procedures, as well as organizational responsibilities for E&S management tasks. The FESMP will be incorporated into a uniform ESMP that provides more detailed, site-specific measures and monitoring plans. The ESMP will include plans to manage air quality, noise, soil, water resources, solid waste, and health and safety among other topics. TSK will prepare a HSEMP / CESMP aligned with MIGA’s PSs and FMC’s ESHS MP prior to the start of construction (ESAP item #3).
Workers are to be made aware of the requirements, measures, and protocols stipulated within the: (i) CESMP during construction and (ii) operations ESMP through induction training and a workers’ manual that is translated into Arabic. The Project Enterprise must also ensure that all HSE personnel are competent to carry out their duties through the hiring and selection process, or, where necessary, arrange for suitable training to be undertaken to achieve this level of competency before construction starts.
Organizational Capacity and Competency: The E&S organizational structure is not yet fully developed. The Project Enterprise will provide a description of the organizational structure for the implementation of all E&S and labor requirements (ESAP item #4). As a minimum, the Project Enterprise will appoint a suitably qualified HSE manager in advance of the start of works for both the construction and operations phase of the projects as well as a site HSE officer supported by additional HSE staff (as required) to manage the risks identified and will be responsible for the implementation of the project-specific ESMS. The EPC contract specifies qualification and competence requirements for EPC HSE personnel and will include, at a minimum, an HSE manager. The Project Enterprise’s HSE site officer will liaise, coordinate with and monitor TSK as well as liaise with the FMC to coordinate all common issues needed between the project and the Benban solar complex.
Emergency Preparedness and Response: An Emergency Response Plan (ERP) that is project specific but aligned with the Emergency Preparedness and Response Plan (EPRP) for the Benban Solar Complex has been developed as part of the FESMP. The project specific ERP will be further adjusted to conform to internationally recognized standards. The ERP will also describe reporting requirements and roles and responsibilities in relation to the FMC’s EPRP (per ESAP item #2).
Monitoring and Review: During construction, the Project Enterprise will be responsible for reviewing and auditing TSK’s HSE performance and compliance against its ESMS, Egyptian legislation and MIGA’s PS and WBG EHS guidelines. ESHS monitoring requirements will be included in the ESMP for the construction and the operations phases of the Project. MIGA will require that the Project Enterprise submits annual monitoring reports (AMR) containing relevant E&S information throughout the guarantee period.
Grievance Mechanisms: The FMC will develop a community grievance mechanism for the Benban solar complex in alignment with PS1, and will be responsible for responding to any grievances which are raised in relation to the overall site or individual developers. The Project Enterprise will develop a community grievance mechanism at the project level which will include details of how it will record and respond to any grievances identified by FMC as being caused by the activities of the project, or its contractors. All responses to grievances will be processed by the FMC to ensure a consistent approach to stakeholder consultation from the whole complex. The community grievance mechanism will be created prior to the start of construction to ensure that the developers can respond to any stakeholder issues reported to FMC at any stage in the project cycle.
PS2: Labor and Working Conditions
The project is expected to employ 300 workers during peak construction and 15 personnel during operations. The recruitment of workers will comply with the recruitment procedures to be developed by the FMC, which will seek to place jobs locally, before recruiting from further afield in Egypt. The FMC may establish offices in Benban and Fares to channel all local labor sub-contracting for the various projects.
Human Resources Policies and Procedures: ABESO will develop a project-specific overarching human resources (HR) policy that complies with PS2 and will ensure that contractors align their HR policies and procedures with the overarching HR policy per the Labor Management Plan in the FESMP. Project-specific HR policies and procedures will also be aligned with FMC’s Labor and Working Conditions Strategy and Employment Plan (LWCSEP) (ESAP item #5). It is proposed that the LWCSEP will include: (i) the setting of common standards for labor and working conditions; (ii) a code of conduct for workers; (iii) assessment of the local labor market; (iv) worker influx strategy and (v) monitoring plan during labor sourcing. The LWCSEP will be shared with the Ministry of Labor and International Labour Organization (ILO) representatives in Egypt for consultation and approval. This approach will be extended to sub-contractors who will also be responsible for hiring workers.
A training plan will also be put in place by the EPC and O&M contractors for employees and contractors. Induction training on the HR policy and procedures and basic safety awareness training will be provided to all newly hired workers. Other types of technical skills training will be identified for staff on an as-need basis.
Working Conditions and Terms of Employment: The project’s HR policies and procedures will stipulate the terms of employment (wages and benefits, hours of work, overtime arrangements and overtime compensation, annual and sick leave, maternity and paternity leave, vacation and holiday, health insurance and end of service benefits) and will also include provisions on restrictions to child labor and prevention of forced labor as well as commitment to non-discrimination and equal opportunities for employees and contractors and will be shared with all new hires.
Workers employed for the project during construction will be transported from the local communities and Aswan or accommodated in FMC managed worker accommodation. The worker’s accommodation will follow the IFC/ EBRD workers’ accommodation guidelines (ESAP item #6).
Worker’s Organizations: In line with PS2, the project’s HR policies and procedures will not impede workers from freedom of association and collective bargaining. Workers will be able to organize among themselves and will not be intimidated, punished or discriminated against for doing so. Workers will be allowed to join unions or otherwise allow collective bargaining. The project will communicate with the workers’ organizations and their representatives.
Non-Discrimination and Equal Opportunity: ABESO is committed to non-discrimination based on the age, gender, sexual orientation, health, race, nationality, political opinions or religious beliefs of its counterparties. The requirements of non-discrimination and equal opportunities will be extended to all contractors and sub-contractors as in their contractual obligations.
Grievance Mechanism: Workers’ grievance mechanism will be developed and made available to all project staff including contractors and sub-contractors. The grievance mechanism will, among others clearly define the response timeframes to grievances and incorporate a grievance log as part of the grievance redress mechanism process.
Occupational Health and Safety: Key Occupational Health and Safety (OHS) risks for a PV solar project include slips and falls, potential hazards from on-site moving machinery, heavy load lifting, exposure to electric shocks and burns, and safety issues related to PV module assembly. Considering the hot and arid project location, construction workers might be at risk of dehydration, heat exhaustion and heat stroke if not properly hydrated.
Prior to the start of construction activities, the Project Enterprise will ensure that TSK develops project OHS procedures (ESAP item #7). These procedures will address the following issues: hazard identification and assessment; construction site safety (barricades, safety nets, access control, clear demarcation of areas and provision of safety information to visitors); specific procedures for hazardous works; workers’ safety and training plan; personal protective equipment needs; site supervision and audit procedures; incident intervention measures and reporting. The procedure will be designed to be specific to the PV solar sector (in terms of industry-specific hazards) and the project. The OHS procedure will also link with the project’s ERP which will include fire risk assessment and control systems, fire alarm systems and drills, emergency preparedness and planning. The project’s OHS performance will be tracked, recorded and reported to the Project Enterprise on a regular basis. OHS procedures will be revised and updated for operations where the risk is reduced.
Workers Engaged by Third Parties: the Project Enterprise will take reasonable efforts to ascertain that the third parties who engage these workers are reputable and legitimate enterprises and have an appropriate ESMS that will allow them to operate in a manner consistent with the requirements of MIGA’s PS and will establish procedures for managing and monitoring the performance of such third-party employees in relation to MIGA’s PS as well as incorporate these requirements in contractual agreements, as identified in ESAP item #8.
Supply Chain: The Project Enterprise will conduct a supply chain assessment of the nominated primary PV supplier to identify key E&S risks/impacts and ensure the supplier complies with the principles of MIGA’s PS to appropriately manage these risks. Consideration in the assessment should be given to confirming the adequacy of the manufacturing facility’s management of hazardous material storage, waste storage/disposal, compliance with working conditions and occupational and community health and safety requirements to demonstrate that the project’s suppliers are complying with MIGA’s PS and EHS Guidelines (ESAP item #9). The Project Enterprise and TSK will include a clause to comply to MIGA PS requirements in main supplier contracts, as applicable.
PS3: Resource Efficiency and Pollution Prevention
Resource Efficiency: Resource consumption on a PV project is expected to be minimal, with water as the main resource utilized during construction for dust suppression, concrete production, and domestic usage. During operations, the main water use is typically related to cleaning of the PV modules and domestic usage. However, the project will employ dry-cleaning PV panel cleaning methods which significantly reduces the consumption of water during operations. Water supply options are currently being assessed. Water will either be trucked to site, sourced from the Nile or abstracted from boreholes around the site. Each developer is required to conduct a resource needs assessment and FMC will lead and coordinate the water supply in collaboration with the BDA.
Water Consumption: The estimated water consumption during the construction phase is expected to be approximately 4000 m3 per year for the project civil activities (concrete production, equipment cleaning, dust suppression). During operations, water consumption is estimated to be 100 m3/year for general sanitarian use for the project. As previously specified, dry cleaning technology will be used to clean the PV panels. A water management plan will be developed for the project following FMC’s requirements and international standards, and will include water quantity estimates and reporting of water use (ESAP item #10).
Greenhouse Gases: Greenhouse gas emissions from the project during construction are expected to be predominantly associated with the use of fuels such as in generators, transport, on-site equipment, and machinery. Although the emissions have not been calculated, these are expected to be low and significantly less than 25,000 tonnes CO2e per year.
Based on the International Energy Agency (IEA) data for the Egyptian National Grid, lifecycle project emissions savings were estimated to be 1,037,230 tonnes CO2e over the lifetime of the two Access projects. This estimation assumes a 30-year project lifespan with a 1 percent annual degradation factor for the combined 100 MWAC capacity of the two projects.
Wastes: Solid waste generated during construction mainly consists of municipal and construction wastes that will be collected by a FMC approved contractor, and disposed of in designated landfill sites. The overall volumes of both solid and hazardous waste generated by the project during construction are expected to be low. It is anticipated that solid waste will comprise paper, wood, plastic, scrap metals, and glass, and hazardous waste will be likely to comprise fuel, oils, lubricants, hydraulic/insulating fluids and batteries, tires, metal drums and empty chemical containers. A limited number of waste PV modules are expected to require disposal during the construction phase. During operations, waste generated will be largely limited to domestic waste, and waste generated from maintenance. These waste streams will be segregated as per the Waste Management Plan to be developed for construction and operations. Waste management procedures will be aligned with those of the FMC and requirements of relevant sections of the applicable WBG EHS Guidelines. When the plant is decommissioned, the priority option of disposal of the PV panels will be through recycling.
Wastewater Treatment: Wastewater from sanitary facilities will be stored in suitable septic tanks and transported off-site. The FMC will have the overall responsibility for the management, collection and disposal contracts for sewage and other wastewater from the Benban solar complex. Management of wastewater will be addressed in the waste management plan.
Pollution Prevention: The project power needs during construction will be met by diesel generators. Generators will locally impact air quality and require fuel management and containment. Another aspect that can impact on air quality is dust generation during construction. These impacts, however, will be short in duration and temporary. During operations, electricity will be back-fed from the grid. The Project Enterprise and TSK will put in place plans and procedures that manage pollution related aspects of the project in line with the requirements of relevant sections of the applicable WBG EHS Guidelines (ESAP item #11). Aspects should cover, among others air quality/dust, spills, occupational noise, among others.
PS4: Community Health, Safety and Security
The project is located on desert land which is owned by the NREA and project access is along the newly constructed NREA roads from the local public highway. There will be no road or land impacts on the local villages, and there are no stakeholders directly affected by the project.
Community Health and Safety: The FMC will develop a community health and safety study and population influx plan as per the SESA requirements to address the influx of construction workers coming into the Benban area for the project development, and their impact on the community at large including the risk of infectious diseases. TSK has a worker’s code of conduct which will be implemented throughout the duration of the construction of the project. The code of conduct will apply to all sub-contractors to ensure they maintain high standards within the community, and meet the requirements of PS4.
As noted in the SESA, during peak construction there will be an estimated 1,400 vehicles/day accessing the various plots within the Benban solar complex, which could present a potentially significant risk to the workers and personnel on site, and the local community along the main and access roads unless it is well managed.
Project traffic will need to be coordinated with the BDA and FMC and aligned with the FMC’s traffic management plan to ensure that risks to workers and community members are mitigated. As such, a project specific traffic management plan, which aligns with the FMC’s overarching traffic management plan will be prepared as specified in ESAP item #12.
Security: The FMC will be responsible for the security of the Benban solar complex and will develop an overarching security management plan, however a project-specific security risk assessment and security management plan that captures key elements of PS 4 that aligns with FMC’s security management plan is required for both construction and operations (ESAP item # 13). The security management plan will include the following: hiring of security personnel (making reasonable inquires to ensure that those providing security are not implicated in past abuses), rules of conduct, training in the use of force and appropriate conduct toward workers and affected communities, equipping and monitoring.
Environmental Permitting Process: The EEAA is the primary regulatory body responsible for environmental matters in Egypt and operates in accordance with the Law of Protection of the Environment (Law No. 4, 1994) and its executive regulations established by Prime Minister Decree no. 338/1995. The national law for environment requires that an EIA be completed and submitted to the competent administrative authorities (CAA) which in the case of PV power plants is NREA.
The EEAA categorizes projects in accordance with the predicted environmental impacts in the form of:
- Category A: projects with minor environmental impacts
- Category B: projects which may have substantial impacts and require a scoped EIA
- Category C: projects which require a full EIA due to their potential severe impacts.
PV power plants are generally categorized as B (requiring an abbreviated environmental approval process), however EEAA has the authority, depending on the scale of the project to request a more detailed assessment and to classify it as category C (requiring an ESIA and Public Consultation meeting). In consultation with EEAA, NREA reached an agreement with EEAA to conduct an overall SESA study for the Benban solar complex that meets the requirements of C category projects. All individual power plants were considered components under the SESA and required only submission to the EEAA of Form B which is a scoped ESIA with project/plot specific information which could be completed either by the developer or their consultants and without the need for additional public consultation. The approval of the Form B, together with the SESA approval, constitute the Environmental Permit required for the project. ABESO obtained the Environmental Permit in May 2016.
Stakeholder Engagement: Stakeholder engagement activities were carried out as part of the development of the SESA. Moving forward, all stakeholder engagement will be managed through the FMC and will build on the engagement undertaken as part of the SESA which included meetings with local villagers, both individually and as a group. FMC will develop a Stakeholder Engagement Plan (SEP) for the Benban Solar Complex in order to coordinate efforts and resources. At the project level a stakeholder strategy is required to outline how the project will interact and implement the FMC’s SEP.
A number of potential opportunities for community development were identified in the SESA including training (for local employment), health services (improving health units), and infrastructure (including schools and roads). Opportunities for community investment cannot all be addressed by one investor/project and are more effectively addressed through collaborative efforts of the different developers. Community development initiatives outlined by the Project Enterprise for Corporate Social Responsibility (CSR) should be in line with the strategic community investment efforts of the BDA through the FMC to ensure a coordinated effort on the part of the Benban solar complex.
The documentation listed below is available electronically as PDF attachments to this ESRS at www.miga.org.
The documentation is also available for viewing at the following locations:
For additional information, please contact:
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