Tozeur and Sidi Bouzid Solar Plants

In 2019, Scatec ASA (Scatec) was awarded through an international competitive bid two projects to build, own, finance and operate: (i) Sidi Bouzid 50 MW grid-connected solar Photovoltaic (PV) power plant in Sidi Bouzid governorate, 260 km south of Tunis, Tunisia, and (ii) Tozeur 50MW grid-connected solar PV power plant, in Tozeur governorate, 450 km south of Tunis. On June 22, 2021, Scatec signed the key Project Agreements including (i) a Concession Agreement (CA) with Ministry of Industry, Energy and Mines (on behalf of the government of Tunisia); and (ii) a Power Purchase Agreement (PPA) with Société Tunisienne de l’Electricité et du Gaz (STEG) as an offtaker. The PV sites will be connected to STEG’s 225 kV transmission network via double circuit overhead transmission lines (OHTL) of 5.5 km for Sidi Bouzid and 1.4 km for Tozeur. The Project includes the two PV plants and the OHTL.

Scatec invited AEOLUS SAS (“AEOLUS”) of France to participate in the Project with a 49% share in Scatec Sidi Bouzid Mezzouna PV Power and Scatec Tozeur PV Power (Project Enterprises or PEs).  The Project is expected to be financed by EBRD and Proparco. The PEs were incorporated in February 2024 in Tunisia and the financial close is expected to be reached by August 2024. 

MIGA guarantee has been requested to cover the equity, shareholder loans, loan guarantees, and/or quasi equity investments of AEOLUS SAS (“AEOLUS”) of France with an amount up to €52.25 million for a period up to 20 years against the risks of War and Civil Disturbance, Expropriation, Transfer Restriction and Breach of Contract.

The 100 ha land required for each PV plot will essentially be used for the installation of the solar panels and the trackers. The other infrastructures that will be built in the PV land plot include workers accommodation (Sidi Bouzid only), electric equipment, roads, operation & maintenance buildings, a substation, laydown area, a security guards building/kiosk at the entrance and a fence around the PV plant.

The OHTL will be financed by the Project Sponsors and designed, built, operated, and owned by STEG. The two PV plants will be built by Scatec Construction Tunisia SARL and operated by Scatec Operation Tunisia SARL. 

The construction of the OHTL lines has already started while the construction of the PV plants is expected to commence in June 2024 and will last up to 15 months. 

This is a Category B project according to MIGA’s Policy on Environmental and Social Sustainability (2013). The Project is expected to have potentially limited adverse environmental and social (E&S) risks, which will be few, site-specific, largely reversible, and readily addressed through mitigation measures.

 Key Environmental and Social (E&S) issues associated with this Project relate to the PE’s capacity to implement the environmental and social management system, land acquisition process, stakeholders’ engagement, water use, biodiversity, labor influx and workers accommodations, labor and working conditions, security management, solar panels supply chain, and community health and safety including the risks related to labor influx. There are also contextual, and project specific risks related to Gender-based Violence (GBV). These risks will be assessed against MIGA’s Performance Standards and relevant World Bank Group Environmental and Health and Safety Guidelines. 

While all Performance Standards (PSs) are applicable to this investment, current information indicates that that the Project will have impacts which must be managed in a manner consistent with the following PSs:

• 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  

• PS5: Land acquisition and involuntary resettlement

• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

• PS 8: Cultural Heritage

There are no indigenous communities in this region, therefore PS7 Indigenous Peoples does not apply to this Project.

In addition to the World Bank Group General Environmental, Health, and Safety (WBG EHS), the World Bank Group Environmental, Health, and Safety Guidelines for Electric Power Transmission and Distribution (2007) will be applicable.

MIGA environmental and social due diligence (ESDD) of this Project consisted of reviewing the following documents:   

• Environmental & Social Framework Study – Ground-mounted solar power plants and transmission lines projects – Tunisia. Artelia, April 2021.
• Environmental & Social Due Diligence Report – Tozeur & Sidi Bouzid Solar PV Projects – Tunisia. Alpage, October 2021.
• Cadre de réinstallation et de restauration des moyens de subsistance (R-LRP) pour les projets solaires en Tunisie. ASF Consulting, October 2021.
• Stakeholder Engagement Plan – Tozeur & Sidi Bouzid Solar PV Projects – Tunisia. Alpage, December 2021.
• External Grievance Redress Mechanism-Scatec.
• Etat des lieux de la centrale solaire photovoltaïque de Sidi Bouzid (Mezzouna) et de la ligne électrique haute tension associée. ESM, March 2022.
• Etat des lieux de la centrale solaire photovoltaïque de Tozeur et de la ligne électrique haute tension associée. ESM, March 2022.
• Note d’Information au Public (Cut off dates for Tozeur & Sidi Bouzid). Scatec, March 2022.
• Décret n° 2005 - 1991 Du 11 juillet 2005, relatif à l’étude d’impact sur l’environnement et fixant les catégories d’unités soumises à l’étude d’impact sur l’environnement et les catégories d’unités soumises aux cahiers des charges.

• Diversity, Equity, Inclusion and Belonging Policy – Scatec, n.d.

• Health, Safety, Security, and Environment Policy. Scatec, September 2023.

• Human Rights Policy. Scatec

• Global Human Resource Policy. Scatec, October 2022.

• Code of Conduct. Scatec, n.d.

• Supplier Conduct Principles. Scatec, April 2024.

• Transparent Supply Chains – Solar Modules. Scatec, 2023.

In addition to reviewing the above documents, MIGA conducted its Environmental and Social Due Diligence (ESDD), which included a site visit to the Project sites in Tunisia from March 25-27, 2024, during which MIGA met with the Project team, the lenders’ E&S specialists, and TTC. During the ESDD, MIGA E&S specialist also met with STEG, the governor of Sidi Bouzid and local stakeholders, the regional office of the Ministry of State Domain (Tozeur), the delegate of Tozeur, the village chief and the general secretary of the municipality of Tozeur.

An environmental and social due diligence (ESDD) was carried out by the lenders independent environmental and social consultant (IESC). It included the review of an information package supplied by the client, a site visit, and a review of the E&S Scoping Studies conducted previously for the Project.

MIGA’s due diligence review considered the E&S management planning process and documentation for the Project and identified gaps (if any) between these and MIGA’s requirements. Where necessary, corrective measures intended to close these gaps within a reasonable time period are summarized in the paragraphs that follow and in the Environmental and Social Action Plan (ESAP) attached to this ESRS.  Through the implementation of these measures, the Project is expected to be designed and operated in accordance with the Performance Standards.

Key potential environmental and social (E&S) issues associated with the Project business activities are summarized in the paragraphs that follow.   

PS1: Assessment and Management of Environmental and Social Risks and Impacts  

  Environmental and Social Assessment and Management System: 

Scatec is a repeat MIGA client which has an Environmental and Social Management System (ESMS) and Occupational Health and Safety Management Systems (OHSMS) which are certified ISO 14001:2015 (environmental management) and ISO 45001:2015 (occupational health & safety management). These certifications cover a large scope: the planning, design, engineering, construction, leasing, operation and maintenance of solar plant installations and storage solutions globally.  However, a Project specific ESMS and OHSMS in line with MIGA PS1 requirements will have to be developed, first for the construction period with a revised version for the operation period (ESAP item).

Policy:

The Scatec corporate’s Sustainability (February 2023) and, Health, Safety, Security & Environment (HSSE, September 2023) policies set out the company’s commitment to sustainability and to achieve zero harm, including protecting the environment and enhancing the livelihoods of local communities. They also describe commitments to provide a safe workplace, transparent governance, compliance with laws and regulations and adhering to the requirements of the PSs in all projects.  

Identification of Risks and Impacts:   

Power projects of less than 300 MW installed capacity do not require an environmental permit under the Tunisian Legislation. The transmission lines that will connect the PV plants to the grid also do not require an environmental permit under the Tunisian Legislation (Decree n° 2005 - 1991 of July 11, 2005). Therefore, this Project is not subject to an environmental and social impact assessment or to mandatory information disclosure. 

However, as part of the lenders’ requirements, environmental and social scoping studies have been completed by an international E&S consultant for this Project in 2018 and updated in 2021, including site visits, stakeholder engagement, potential E&S risks assessment, and validation of the Project Categorization. A Land Acquisition and Livelihood Restoration Framework (LARF) was also developed on behalf of lenders in 2021 by a Tunisian E&S consultant including site visits and community consultations. The LARF identified potential limited economic displacement but no physical displacement (more detail in PS5 section). Finally, an ESDD was conducted by the lenders IESC in August 2021. An Environmental and Social Action Plan (ESAP), a Non-Technical Summary and a Stakeholder Engagement Plan (SEP) were also developed by the lenders IESC in parallel to their ESDD report.

The PE and STEG will identify and manage key risks and impacts through the implementation of their respective ESMSs and ESMPs.

Management Programs:  

As part of its Project specific ESMS and OHSMS, the PE will need to develop Environmental & Social Management Plans (ESMPs) and Occupational Health & Safety Management Plans (OHSMPs) to be in line with Tunisian laws, MIGA’s PSs and WBG EHS guidelines for the construction and operations phases (ESAP item). The management systems will provide the framework for these management plans  which will include but not be limited to: waste management; pollution prevention (including emissions, spill response); water management (including supply, treatment, disposal,); hazardous materials; emergency preparedness and response; community health, safety and security; road safety and traffic management; accommodation management; local recruitment and labor management; influx management; environmental monitoring plan; stakeholder engagement (including grievance management); contractor management plans. The management plans include details on monitoring actions, and the frequency of monitoring, along with the performance indicators and the responsible entity. 

Organizational Capacity:

Currently the E&S component of the Project is led by the Scatec’s Corporate Director of E&S Advisory based at headquarter in Oslo (Norway), and that has overall responsibility for the Project’s ESHS and OHS management.

At the Project level, the Director of Scatec Tunisia is currently leading the engagement with key stakeholders from authorities to local communities and is the key contact for land related issues. The E&S organization in country is being implemented and an Environment, Health, Safety, Security, and Environment (HSSE)Manager and a Community Liaison Officer (CLO) will be hired for each site before construction. An E&S manager covering both sites will also be hired before construction (ESAP item). The E&S and HSSE Managers will be based in Tunisia, and shall directly report to Sustainability and HSSE functional lines and with dotted lines to the Project Manager 

The E&S and HSSE Managers will be responsible for the development and implementation of the Project ESMS and OHSMS, and related plans and procedures including monitoring and reporting. They will also oversee the ESAP implementation. The CLOs will support LARF related actions and social risks management including the implementation of the SEP and the management of the external Grievance Redress Mechanism. The recruitment process has started and the CLO for Tozeur has been recruited.

STEG has already assigned a permanent on-site ESHS supervisor to monitor the effective implementation of the EHS plan submitted by its subcontractors. 

Emergency Preparedness and Response:  

As part of its HSSE Policy, Scatec is committed to ensure effective emergency and recovery management for people, environment and assets against unplanned events and disasters. The Scatec Emergency Response Procedure defines three tiers of emergency response management, grouped as: 1st Line, the local site or plant level, 2nd Line, the regional or country specific level and 3rd Line, global incident crisis management support. In line with this commitment the PE will develop a 1st Line Emergency Response Plan (ERP) (ESAP item).  

The 1st Line ERP details emergency preparedness and response protocols in the event of emergency situations. It will reflect emergency scenarios determined by the project risk assessment, but typically include emergency evacuation, fire/explosion, medical emergencies, pandemic outbreaks, security, terrorism or bomb threats, floods, transportation and vehicle related accidents, prolonged power outage, severe weather/storms, hazardous material spills and civil unrest and earthquakes. The ERP will cover both the construction and the operation phase of the Project and will outline (i) Accident and emergency risk identification and management;(ii) Emergency response procedures; (iii) Liaison with local emergency authorities; (iv) Engagement with communities on incidents and emergencies; (v)Specific response procedures for key risks; (vi) Emergency response training; and (vii) Record keeping on emergency response procedures and incidents. 

Monitoring and Review:   

As part of the ESMS, the PE will monitor and review the E&S performance of the project and undertake regular on-site E&S monitoring of the implementation of key E&S and OHS plans during the Project construction and operation phases  The PE will also be required to recruit an independent E&S consultant to conduct a post construction E&S audit of the Project, including activities under STEG's control, with reference to the ESAP and regulatory E&S requirements and implement any identified corrective action (ESAP item).

As a condition of MIGA’s contract of guarantee, the PE will be required to provide MIGA with an Annual Monitoring Report that evaluate E&S performance against MIGA’s E&S requirements and will include sections on E&S risks and impacts, updates on development effectiveness indicators throughout the guarantee period.  

Stakeholder engagement:   

A Stakeholder Engagement Plan (SEP) has been produced as a result of the due diligence process. It presents the planned stakeholder engagement activities for the project and outlines a systematic approach aimed at developing and maintaining transparent relationships with stakeholders throughout the Project’s lifetimes. The PE will be required to update the SEP by including all identified potential people affected by the Project (PAP) (ESAP item).

External Communication and Grievance Mechanisms:

The SEP includes a Grievance Redress Mechanism (GRM) available in French and Arabic and consistent with MIGA’s PS 1 requirements so that stakeholders can raise any concern, provide feedback and comments about the Project. All grievances are registered and acknowledged within 5 working days and responded to within 20 working days of receiving the grievance. Individuals who submit their comments or grievances have the right to request that their name be kept confidential. This mechanism does not limit the public’s rights to use the conventional routes to place grievances and the available legal system.

Scatec has a website where general information about the company and its activities can be found. The website is in English only: https://scatec.com/. The Scatec whistleblower is also available through this website and allows confidential grievance to prevent retaliation risks.

STEG has also established external GRM will be used to manage any complaints received by STEG as part of this Project. The PE regularly engages with STEG to ensure that potential grievances are managed as per MIGA’s PSs.

Ongoing Reporting to Affected Communities:

The engagement process is a continuous dialogue carried out on an on-going basis throughout the Project’s cycles. It enables the incorporation of all relevant views of stakeholders into decision-making and Project implementation. The SEP is a living document and is meant to be updated and developed further as the Project progress, particularly before the operations phase. The ESHS manager will oversee the implementation of the SEP. This manager will regularly update the SEP and will provide information, collect feedback, as well as provide answers to incoming communications (via email, telephone or in person). To provide ongoing general information about the Project, the information disclosure methods identified in the SEP also include the creation of Facebook pages in local languages. 

PS 2: Labor and Working Conditions  

  The Project is expected to employ up to 600 workers (300 per site) at the peak of the 15-month construction phase, of which 60 would be skilled and 540 unskilled. The operation phase will require no more than 30 people per site, with a few highly qualified staff (technicians, engineers – typically less than 5 full time) and some unqualified for housekeeping, cleaning, and security. Scatec Solar Tunisia Construction SARL’s civil contractor will be the main employer during construction while Scatec Solar Tunisia Operation SARL will be the main employer during operation. 

There are high expectations of employment opportunities amongst the local communities. Therefore, the PE will work with the EPC contractors, STEG, and the local authorities to ensure that recruitment from these communities is maximized and equitable to the extent possible (ESAP item).

In addition to the whistleblower highlighted above, Scatec employees including the Tunisian projects have access to the company’s grievance channel available in five foreign languages, including Arabic and aligned with MIGA’s PS 2 requirements. Considering the increasing number of the PE’s direct employees during the operation phase and in order to ensure a broader accessibility to its internal grievance system, the PE will be required to develop and implement a workers grievance mechanism, meeting PS2 requirements, for the operation activities under its control (ESAP item). The PE will  also require its contractors and STEG to develop a grievance mechanism available to their workers and their sub-contractors and monitor its effectiveness, and ensure that workers are informed of their right to resort to Scatec's grievance mechanism (for communities and all stakeholders) in case their concerns are not satisfactorily handled (ESAP item).

Working Conditions and Management of Worker Relationship: 

The Project will ensure that all employee contracts are consistent with Tunisian labor codes and MIGA PS2. 

requirements. All employees (including those employed by contractors and subcontractors) will be provided with a contract in French/Arabic, stipulating their terms of employment, working conditions (including health and safety requirements), wages and benefits, hours of work, overtime arrangements and overtime compensation, annual and sick leave, vacation, holidays as well as other leaves stipulated by national legislation (ESAP item).

Contracts of the construction phase workers shall have a clear description of the short-term nature of the project and provide an indication of the potential employment duration.

At corporate level, Scatec has a Diversity, Equity, Inclusion and Belonging (DEIB) policy (March 2024) which applies to all employees, managers, and consultants of Scatec, including subsidiaries and affiliates, and which highlights that Scatec is committed to a safe workplace with equal opportunities for all, free from any discrimination, bullying or harassment. The DEIB policy also includes a zero-tolerance approach for any form of sexual harassment in the workplace, where all complaints of sexual harassment will be taken seriously and treated with respect and in confidence, and no one will be victimized for making such a complaint. The Global HR Policy (February 2023) states that Scatec is also an equal opportunity employer which does not discriminate against any candidate or employee based on color, race, nationality, ethnic or national origins, sex, age, gender reassignment, sexual orientation, pregnancy, and maternity, marriage, and civil partnerships, pay, religion or belief, political belief, part-time work, fixed-term work, marital status, or disability. The PE will be required to design, build, and operate the Project with a work environment that is suitable for both men and women (notably with separate toilets and change/rest rooms) and specifying on job announcement that positions are open to both men and women (ESAP item).

Scatec has also global Code of Conduct (May 2023), which applies to all employees, contractors, and subcontractors, includes rules of interaction with customers and communities and reflect respect for local beliefs and customs. In addition, the Code of Conduct includes provisions related to protection of personal data and privacy, prohibition of all forms of slavery, forced labor, human trafficking, child labor and violations of human rights, corruption, and bribery. Scatec is also drug-free workspace, and alcohol consumption is not permitted when operating machinery, driving or being on-site. Anyone who violates this Code may face disciplinary sanctions which can include termination of employment and the involvement of relevant authorities.

The PE will translate in French and Arabic and appropriately communicate to Project employees the Scatec’s HR policies meeting Tunisian legislation and MIGA PS2 requirements. During induction training, the new hires are made aware of the terms and conditions of their employment, including the HR policy, DEIB policy and Code of Conduct, as part of the hiring package (ESAP item).

Tunisia has ratified the International Labor Organization (ILO) Convention concerning Freedom of Association and Protection of the Right to Organize and the Convention concerning the Application of the Principles of the Right to Organize and to Bargain Collectively. Trade union pluralism is also a constitutional right in Tunisia. In addition, Scatec’s Global HR policy acknowledges freedom of association and collective bargaining as a labor right of all employees. Scatec’s employees have the right to join labor unions or form workers’ organizations with the aim to engage Scatec on common issues and conclude a collective agreement.

No workers accommodation camp will be set up for the Tozeur site as workers will be accommodated in the nearby city. The PE will develop a traffic management plan assessing and addressing the risks associated with the Project’s traffic including transporting workers to and from the worksite (ESAP item). For Sidi Bouzid, because of the lack of available housing within the surrounding communities, an accommodation camp will be implemented within the PV plant plot for the construction stage. The PE will implement this accommodation camp in line with MIGA PS 2 and with IFC/EBRD guidance note for workers accommodation: Process and Standards and conduct monthly inspections of the workers accommodation (ESAP item).

Protecting the Work Force: 

Tunisia has ratified the ILO Convention concerning Minimum Age for Admission to Employment. According to the Tunisian labor code, the minimum age for admission to any type of work likely, by its nature or the circumstances in which it is executed, to expose the health, safety, or morals of children, cannot be less than 18 years.The Scatec global HR policy also prohibits the use of any form of forced or compulsory labor, and Scatec is committed to neither employ any person who is below 18 years of age nor utilize any products produced with child (persons under 18 years of age) labor. Scatec is also committed to conduct business only with third parties that follow the same ethical and human rights standards. All employees are required to provide their national identification document highlighting their birth date before their employment.

Occupational Health and Safety:  

During the construction phase of the Project, key risks, and impacts include health and safety (H&S) risks intrinsic to construction activities such as physical hazards related to the installation of poles, working at heights, and electrical components including exposure to live electrical current, slips and falls, potential hazards from on-site moving machinery, heavy load lifting, exposure to electric shocks and burns, and safety issues related to panels module assembly. 

 During operations, key environmental and social risks include waste management, dust emission, site security and access control, road safety, external and internal grievances management.

Before starting any construction activities, the PE will prepare a specific Project Health Safety Security and Environment Plan (HSSE Program) that will be updated before construction, and supplied to the contractor during the tender phase, to include construction’s related requirements (ESAP item).

The main elements that make up the HSSE Program will include(i) an HSSE Key Performance Indicator (KPI) reporting and statistical analysis system; an incident reporting and investigation process; (ii) training, competence, and communication programs; (iii) working at height and fall protection plans, mechanical handling,  lifting, and rigging protocols, fire prevention, and hot work activities procedures, confined space work guidelines; (iv) health management protocols, including medical fitness certification, welfare, ablution, and changing room provisions for the workforce, and procedures for managing climate and extreme weather conditions; (v) a fatigue management plan that outlines specific measures to address and mitigate fatigue risks and promote employee well-being and alertness; (vi) working at night procedures; (vii) measures for managing contractors and subcontractors' HSSE performance and ensuring their alignment with program requirements; (viii) regular internal and external audits to evaluate the effectiveness of the HSSE Program and identify areas for improvement.

An H&S Committee composed of worker representatives will also be set up to provide feedback and recommendations on H&S matters, in accordance with Tunisian regulations (ESAP item). 

The PE will put in place appropriate monitoring requirements and conduct audits of staff (monthly during construction, then twice a year during operation) to obtain assurance that the contractors and their sub-contractors maintain statutory compliance with host country law, the employers labor requirements, and PS2 provisions (ESAP item).

 Workers Engaged by Third Parties:

The PE will include in all sub-contracts for the construction and operation of the Project (i) an obligation to act in compliance with MIGA’s PSs, (ii) an obligation to implement any corrective action required by MIGA in case of established non- compliance, and (iii) an obligation to implement the ESAP actions under their responsibility, if any. As per the PPA, STEG is required to comply with lenders E&S requirements, and to implement any ESAP items under its responsibility.  The PEs will monitor and document STEG’s E&S performance and work with STEG towards compliance with host country laws and MIGA’s E&S requirements (ESAP item).

Supply Chain: 

According to their corporate Procurement Framework disclosed on their website and to be signed by the Suppliers, Scatec expects "all vendors to act in accordance and demonstrate compliance with their Supplier Conduct Principles ", which includes the requirement to conduct business consistently with the UN Guiding Principles on Business and Human Rights, including the elimination of all forms of forced and compulsory labor and effective abolition of child labor. 

The procurement of energy equipment will largely be managed by the PE. Locally sourcing may be done for smaller items depending on in-country availability.

The PE will be required to (i) conduct a supply chain risk assessment of the nominated primary solar suppliers and develop supply chain risk assessment procedure and a screening mechanism against risks for alleged forced labor in the solar supply chain; and  (ii) incorporate or require the Engineering, procurement, and construction  (EPC) contractor to incorporate the provisions related to child labor and forced labor in each contractual agreement it or the EPC contractor enters into with a solar supplier (ESAP item). 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 PSs requirements. 

PS3: Resource Efficiency and Pollution Prevention  

  Resource Efficiency: 

Water resources in the Project area are already under pressure. The main water requirement during construction is likely to be water for dust suppression, concrete production, minor concrete batching, control and administration buildings, and domestic use. 

Water requirements during the operation phase will be largely focused on panel cleaning. However, a waterless cleaning solution must be preferred. If this is not the case, the PE will submit to MIGA’s approval a "best available technology" study comparing waterless and with- water solutions from a technico- economic and E&S perspective. Only renewable water sources should be envisaged (not fossil aquifers) and a hydrogeological study and water mass balance should be included to confirm the absence of water use competition with local agricultural or community needs, taking into account climate change (ESAP item). 

Currently the project has not established a Water Management Plan. Therefore, the PE will develop and implement a Water Management Plan for construction and operation, which will include measures for efficient water use/water minimization as part of the cleaning needs for panels and for general use as well as monitoring procedures of water supply services. Water use will be a KPI, and the PE will keep track of water usage (ESAP item).

GHG emissions during the construction and operations phase are expected to be predominantly associated with the use of fuels for vehicles and machinery. The total annual GHG emissions has not been estimated yet but is significantly less than 25,000 tons CO2e. 

Pollution prevention:   

The main pollution risks at construction and operations stages are related to dust generation due to clearing, civil works and earthmoving activities, and road traffic, and the generation of waste. It is anticipated that the Project will produce both non-hazardous wastes, such as paper, wood, plastic, scrap metals and glass, and a limited quantity of potentially hazardous materials such as transformer oils, paints, batteries, as well as some electronic waste, and waste PV panels. Pollution of water resources may arise at construction sites due to accidental spillage or leakage of polluting materials (fuel, paints, chemicals, hazardous waste).  The PE will implement speed limit and require its contractors to use water spraying or compacted gravel on earth roads during the construction period to prevent dust formation (ESAP item).

The PE will also develop a waste management plan which will commit to the reduction of wastes whilst maximizing the re-use and recycling of materials and will outline process for appropriate waste storage, segregation, tracking, transportation, and disposal / treatment. Provisions will be included to fully track waste from source to destination and for selecting third parties hired for waste transport. The plan will also include specifics for management of broken, expired, or surplus PV panels, address local requirements for the designation of a hazardous storage area, provide details on hazardous waste disposal solution(s) in line with good international industry practices (GIIP), national laws and MIGA’s PS 3 requirement, and include provisions to ensure hazardous waste contractors are licensed from the local relevant authority (ESAP item). 

The PE will also ban the use of herbicides or pesticides during the construction and operation period, in particular for vegetation control, and include this ban in the contractors’ contracts (ESAP item).

PS4: Community Health, Safety and Security  

  Community health and safety:   

Although the project intends to maximize recruitment from local communities to the extent possible, the large construction related workforce needs may lead to an influx of workers into the region. As stated earlier, a workers accommodation camp will be set up only for Sidi Bouzid for the construction phase.

During construction, community health and safety risks and issues include workers influx, dust emission, increased traffic, noise vibration and increased construction trucks in the area. During operations, potential risks include structural and site access issues, road traffic accidents, fire and safety issues, oil spillages, accidents, and electrical faults. Risks are minimized by restricting access to the sites and to equipment through 24-hour security.  Sites are fitted with fire extinguishers and security guards are trained in their use.  Power lines, transformers and components are designed and installed according to GIIP and STEG’s standards, considering the potential frequency and magnitude of natural hazards. 

Any accommodation of workers by the company or its contractors will need to meet the requirements of IFC/EBRD’s guidance note Worker Accommodation: Process and Standards. The PE will develop and implement a Community Health and Safety and Worker Influx measures under its HSSE Management Program. This will include an assessment of worker influx and will include: (i) a communicable disease (including HIV/AIDS and sexually transmitted infections) awareness and prevention program for site workers as well as local communities; (ii) requirements for adequate on-site medical facilities; (iii) a community grievance mechanism; (iv) GBV awareness sessions; and (v) provisions for periodical monitoring of social related effects of the influx of migrants (ESAP item). 

The Emergency Response Plan also covers community health and safety measures and deals with environmental spill prevention, emergency situations and off-site mitigation measures. 

Security Personnel:  

A permanent fence will be erected around the perimeter of the site. Security and access control to the site will be provided on a 24-hour basis by a third-party security company retained by the PE during construction and operations. 

The PE will (i) conduct a Security Risk Assessment and develop and implement a Security Management Plan for the construction and operations phases (including site access control and register) in line with MIGA’s PS4 including IFC’s “Good Practice Handbook on the Use of Security Forces: Assessing and Managing Risks and Impacts” and the Voluntary Principles on Security and Human Rights, and (ii) undertake regular audits of the established security provisions as part of the established monitoring and reporting requirements described in PS1 (ESAP item). The Security Management Plan will ensure relevant security procedures will be communicated to the surrounding communities to seek a common understanding regarding security and to minimize potential for conflicts. Similarly, the security management plan will ensure any security related grievances can be reported via the community grievance mechanism; and determine the need for a memorandum of understanding to clearly define and regulate the relationship between the Project and public security forces. PE will not sanction any use of force except when used for preventive and defensive purposes in proportion to the nature and extent of the threat, and any allegations of human rights abuses should be investigated and monitored.

PS5: Land acquisition and Involuntary resettlement

 General

The Project does not require any physical resettlement, however limited economic displacement might occur (potential loss of occasional grazing areas, and potential loss of farming land of around 10% of the Sidi Bouzid PV plot and 2% of the Tozeur PV site, but these farming plots appear to be abandoned). The land required for the Project will be leased from the State. As part of the public bidding process to award solar projects in Tunisia, the Government of Tunisia is in charge acquiring land including any potential resettlement and livelihood restoration process that might be required. A Land Occupation Agreement (over the concession period) has been signed between Scatec and Ministry of State Domains and Land Affairs (owner) for both the Sidi Bouzid and Tozeur sites.

The PE will oversee the construction of the solar PV plants while STEG oversees the construction of the OHTL, including the required land acquisition, stakeholder engagement and compensation of the potential Persons Affected by the Project (PAPs) for the respective Project’s components (Scatec for the PV plants and STEG for the OHTL). As part of the PPA clauses between Scatec and STEG, the latter is required to build and operate the OHTL in line with lenders requirements (including compliance with MIGA’s PSs) and to implement the ESAP actions related with the OHTL.

A Land Acquisition and Livelihood Restoration Framework (LARF) has been developed for the Project in 2021 including site visits and meaningful engagement with several stakeholders including local authorities and communities. The LARF report (October 2021) included a gap analysis between the Tunisian land acquisition framework and the lenders (including MIGA PS5) requirements and provided recommendations to ensure that any potential land acquisition is compliant with lenders requirements. This LARF was updated in March 2022 with an updated inventory of the land occupation and cut off dates (23 May 2022 for Sidi Bouzid and 29 May 2022 for Tozeur) were disclosed to local communities including a template to be completed by anyone who has a reclamation, grievance, or comments. The LARF did not identify the potential PAPs that might need to be compensated.

Displacement:

There will be no physical displacement as a result of this Project. However, as detailed above, there might   be limited economic displacement as result of the Project, this will be confirmed by the ongoing independent review of the LARF inventory commissioned by the PE.

• Sidi Bouzid

The PV plant land (100 ha) is part of a larger 7 000 ha of state domain and belongs to the Ministry of State Domains and Land Affairs and, an Agreement of Land Occupation has been granted to the PE over the period of the concession. The site is an uncultivated land with scattered vegetation used as a grazing land by shepherds who often camp near the PV site plot. The Project will result in 100 ha loss for shepherds. However, a grazing area of 1500 hectares called Hamila, is in the near vicinity and several families settle there for weeks with their herd for grazing.  Grazers will need to be consulted to determine possible impacts. 

According to the agriculture authority representative, farmers in the region have been authorized to cultivate these state-owned lands for field crops (wheat and barley) during rainy years without having property rights. Between 2013 and 2018, around 10 ha of the PV plant plot and the first km of the OHTL route was delineated by farmers with sand mounds. There is no sign of recent agricultural activity, but traces of winter crops were seen on this plot and along the OHTL route during the scoping visits undertaken in February 2021. Farmers will need to be consulted to determine possible impacts in case these persons can be identified.

The OHTL (5.5 km) line passes over private state land to join the existing 225 KV line. The initial OHTL layout was updated to avoid a private irrigated area (olive trees). STEG has already started the construction of the OHTL which was more than 50% completed (including 100% of pylons foundations) during the MIGA site visit on March 26, 2024. Possible limited impacts could be associated with loss of grazing or farming lands. Scatec will need to confirm that PAP could have been identified and consulted by STEG and compensated in line with PS5, if required, as per the below ESAP.

• Tozeur

The PV plant land (100 ha) is located next to a STEG’s existing PV plant and is accessible in a few minutes from Tozeur through a good, asphalted road. The PV site itself and its surrounding land are essentially used for occasional passage as well as grazing land for wandering dromedaries, sheep, and goat. A small part of the site has served as a borrow pit and for materials disposal in several small places, but there is no indication of recent use. The only existing infrastructure close to the Project site is the STEG PV plant.

For the connection of the Project to the grid, a new 1.4 km OHTL located on state-owned land will run from the step-up substation located at the Project site to the existing nearby line located, East from the existing STEG’s PV plant. No impact is expected as this line will only require four pylons located along the road and near the existing STEG PV plant.

According to the lenders ESDD report, the PV and OHTL land plots do not qualify as a pastureland due to (i) the scarcity of vegetation, (ii) the absence of particular vegetation or other interest for herbivores compared to the wide surrounding landscape, and (iii) the absence of shepherds’ structures in the close vicinity of the site. Animal footprints are not dense; they are mostly grouped and follow specific directions, which indicates that animals use the land plots as passage areas essentially. The site is therefore considered as being of importance for passage, rather than for the rare food it provides to sheep and camels: no significant loss of livelihood is expected for the loss of grazing potential, but the passage function must be maintained. PAP, including grazers will need to be consulted to determine possible impacts (see the below ESAP item).

On Tozeur PV site, several palm trees have been planted in the first half 2021 (2,5 ha or 2% of the PV plant area) by a family which also installed a piping system connected to a borehole drilled outside the limit of the PV land plot, presumably to water the planted palm trees. However, the farming activities seems to have been abandoned since several months.

As the PV site was not officially registered, local authorities have started a titling process as per the Tunisian Laws. A Commission in charge of surveying and identifying lands belonging to the State’s private domain has been put in place for the land titling process, including a site visit done in September 2018 confirming the absence of any activity within the Project footprint. As part of this titling process anyone who wants to claim land ownership has up to 6 months to submit their claims. However, the Commission report (Jan 2021) concluded that no claim was received. Following this report, a Presidential Decree #2021-195 of November 23rd, 2021, was issued stating that the land belongs to the State. One year after the presidential disclosure, anyone can raise any ownership reclamation of the land, but no claim was received. The titling process in now at its final stage, just waiting for the Tozeur court stamp. The PE will manage any land related claim as per its external grievance redress mechanism, and if needed, will collaborate with the Ministry of State Domains and STEG to address complaints in compliance with Tunisian Laws and PS5 requirements (ESAP item).

Private Sector Responsibilities under Government-Managed Resettlement:

The PE and STEG are required to start construction only after any affected person crops/land are fully compensated in line with MIGA PS 5 requirements. Therefore, the PE is required to engage a E&S consultant to (i) update the inventory of the LARF, (ii) identify and consult the potential PAP,  and if applicable (iii) to compensate the affected persons accordingly, before the PV sites construction, in line with MIGA PS5 requirements, and to (iv) assess the STEG land acquisition process against the MIGA PS5 requirements to address any differences that might be flagged, including on the compensation of PAP, considering that STEG has already started the construction of the OHTL (ESAP item).

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

The Tozeur site occurs within the North Saharan Xeric Steppe ecoregion. The site is adjacent to existing solar installations and a national road. The Sidi Bouzid site occurs within Woodland and Mediterranean woodlands and forests ecoregion. The site is adjacent to existing grazing/cultivated lands and existing roads. Rapid biodiversity assessments were completed as part of lender ESDD for both sites. Both sites are treated as a mix of modified habitat and degraded natural habitats that have been subjected to past agriculture and intensive grazing by livestock, with Sidi Bouzid being relatively less impacted. No critical habitats are present. There are no overlaps with legally protected areas or internationally recognized areas (e.g. Key Biodiversity Areas), though such sites do occur within a 2-5km radius.

Potential impacts include habitat transformation, disturbance (e.g. lights and bats), accidental mortality of individual species (e.g. reptiles) during construction, and potential for bird collisions, The highest bird collision risks exist where the Sidi Bouzid transmission line (5.4km long) passes between and nearby to 2 Important Bird Areas (IBAs), with nearest IBA being 2.5km.

A number of biodiversity-related actions have been recommended by the lender ESDD.  No biodiversity management plan or equivalent was available for MIGA review. No significant residual impacts are expected at either site. 

The Project will integrate biodiversity-related actions into the ESMPs (ESAP item).

  Both PE and STEG ESMPs will propose actions and timelines for mitigating risks to biodiversity aligned with the lenders ESDD recommendations including i) STEG’s mitigation of OHTL risks in the proximity of IBAs; ii) completion of required surveys prior to construction; and iii) compliance with national law with respect to risks related to nationally protected species. The PE will communicate the requirements to STEG and monitor implementation and report outcomes. 

PS8: Cultural Heritage

 For both Sidi Bouzid and Tozeur, the Project site is not located next or close to a cultural or historic site that might be visually impacted. The initial OHTL layout was updated to avoid archaeological artefact as requested by the Tunisian National Heritage Institute (Institut National du Patrimoine or INP). The presence of artefacts (flint cuts, pottery) was observed on the Sidi Bouzid PV site. The experts of the INP have visited the site and provided a clearance letter confirming that these artefacts are of minor importance. However, in line with the lenders ESDD recommendations, the PE will (i) prepare a Chance Find Procedure before PV sites clearing; (ii) Train workers on the nature of potential chance finds, and the way to manage them; and (iii) engage with local communities to confirm that there are no sites of cultural significant importance within the Project footprint (ESAP item).

STEG confirmed that the foundation construction of the OHTL is fully completed in line with the national Patrimony Code. As per this Code, in case of accidental discovery of sites, concerning prehistoric or historic ages, arts or traditions, the developer is required to immediately inform the corresponding services of the Ministry in charge of Patrimony or the closest regional authorities for them to inform the relevant services, within a period not exceeding five days. The specialized authorities will take all the necessary measures of preservation by themselves or if needed the supervision of the undergoing works. No artefact was found during the field work completed by STEG.

The documentation listed below is available electronically as PDF attachments to this ESRS at www.miga.org.   

• N/A

Project Contact Information:

Contact:  Maha Ben Hmidane

Position: Director Scatec Tunisia

E-mail: maha.ben.hmidane@scatec.com
Address: 24 rue Lac Tanganyika, Les Berges du Lac 1, 1053 Tunis, Tunisia

Broad Community Support is not applicable for this Project. 

----------------------------------------------------------- 

MIGA supports its clients (as defined in MIGA Policy on Environmental and Social Sustainability) in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities. 

In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for MIGA. The CAO is mandated to address complaints from people affected by MIGA-guaranteed business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of MIGA. 

 Independent of MIGA management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of MIGA’s environmental and social performance through its compliance arm. 

 Complaints may relate to any aspect of MIGA-guaranteed business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of a MIGA-guaranteed business activity. Complaints can be submitted to the CAO in writing to the address below: 

Compliance Advisor/Ombudsman 
International Finance Corporation 
2121 Pennsylvania Avenue NW 
Room F11K-232 
Washington, DC 20433 USA 
Tel: 1 202 458 1973 
Fax: 1 202 522 7400 
E-mail: cao-compliance@ifc.org