GH2 INDUSTRIES
Executive Summary of ESIA Study Report
This Environmental & Social Impact Assessment (ESIA) report has comprehensively analyzed environmental and social impacts associated with different phases of the proposed Agri-based Manufacturing facility. The ESIA has been carried out in order to ensure all environmental & social aspects of the project are addressed through effective mitigation measures.
Brief Description of Project
GH2 Industries (Pvt.) Ltd. (the ‘Company’) is setting up an agri-based, manufacturing facility near Gharo, District Thatta, Sindh, Pakistan to produce broken rice derivatives which are essential ingredients for the Food and Pharma industries. The project will also include a rice milling unit for processing of IRRI rice to benefit from the rice growing belt in the project vicinity.
The proposed project is situated near Gharo, District Thatta, Sindh. The project site can easily be accessed through the National Highway (N5) via the Sindh Coastal Highway or via the Gharo-Keti Bunder Highway (N110). These roads are serving as the primary access routes to the site location.
The Project is designed on the concept of “Zero Liquid Discharge” which means no effluent will be discharged outside the premises of site. Moreover, use of biomass carbon neutral fuel for cogeneration Power plant will result in net negative GHG emissions which makes the project environment friendly and sustainable.
Need for ESIA
Although the scope of project does not require specific ESIA or EIA study as per guidelines of local regulatory body, Sindh Environmental Protection Authority (SEPA) but only an Initial Environmental Examination (IEE) report will be a legal requirement. However, the company being ESG conscious, has decided to perform an ESIA study in line with the IFC guidelines.
A project specific Environment and Social Impact Assessment (ESIA) study has been carried out for the proposed project. The major objective of this study is to assess the present environmental conditions along the project corridor through primary and secondary data sources; field studies to evaluate the impacts on relevant environmental and social attributes due to the construction & operational activities; to recommend suitable mitigation measures to minimize /reduce adverse impacts, and to prepare an Environmental and Social Management & Monitoring Plan (ESMMP) for timely implementation of the mitigation measures to ensure that the project is environmentally and socially sustainable.
Description of Baseline Environment
The land in the project vicinity comprises a mix of open barren land and agricultural farms. The project soil is highly saline as the groundwater is brackish and soil survey indicates high chloride
content. The agricultural land is mainly fed with water supplied through irrigation canal passing nearby the Project Land. The major flora found in the area include Prosopis Juliflora, Prosopis Glandolusa, and Acacia. The livelihood of the communities are agriculture, fishing and daily wages work. The industrial workers are minimum in numbers that do not have major contribution in the household income.
The region’s industrial footprint primarily comprises two large scale solar power plants of 50MW each Gharo Solar and Oursun Plant. Commercial undertakings in the area consist of poultry sheds, and fish farms several of which have been abandoned over time.
No protected areas like National Park, Wildlife Sanctuary or Bio-sphere reserve are within the AoI of the project site. The largest town, known as “Gharo,” which is situated in District Thatta, located at a distance of approx. 4 kilometers from the Project site has developed infrastructure that includes the houses, petrol pumps, shops, communication tower and other associated facilities considered as basic needs for human life.
The human settlements nearby the project area are mostly small Goths living nomadically. These Goths are living places of the low-income people. Agriculture and fisheries are the two major sources of employment for the people of project area. The field survey suggested that the project land has not been used for any agricultural or commercial activity and privately owned by project sponsor. There was no government involvement or involuntary resettlement in the land acquisition and IFC Performance Standard 5 is not triggered for the project. After taking community surveys in the light of IFC guidelines for identification of indigenous people, no such people were observed in the project’s AoI. Consequently, IFC Performance Standard 7 is not triggered for the project. The Project area does not have any declared archeological site or antiquity that restrict the project construction and IFC Performance Standard 8 is not applicable for the project. Baseline survey reveals that the project area lacks in terms of basic educational and health facilities and the people of consulted villages go to the nearby town for their medical needs.
Environmental & Social impacts
The potential environmental and social impacts due to the proposed project have been identified for various stages of the project. Most of these environmental and social impacts are related to operational phase which are inevitable but manageable through suitable mitigation measures. The identification of impacts has been carried out based on the review of available project information, discussions with the local community and other stakeholders. Also, guidelines of international standards i.e. IFC Performance Standards, WBG EHS guidelines and local/national regulatory bodies are kept in view while evaluating potential impacts and their mitigation measures. A Climate Change Risk Assessment has been carried out to evaluate physical and transition risks with their impacts on the project site and supply chain and how these impacts can be mitigated with effective control measures.
Analysis of Alternatives
Analysis of alternatives is an integral part of the ESIA process to select the best option among all the alternate options in terms of cost effectiveness and operational efficiency while minimizing the environmental and social impacts. Three Alternatives have been analyzed with respect to environmental and social impacts which are as follows:
Analysis of
Project Refusal
Analysis of
Site Alternatives
Analysis of Alternate Technology/Design
After analyzing the alternatives in the above-mentioned scenarios, it can be stated that the project execution will be a viable option which will create significant jobs and business opportunities for the local community. In addition to it, the project will serve to add value in the export potential of the country along with import substitution.
Information disclosure and consultation
Public consultations were conducted as an integral component of the social and environmental assessment process for the project in line with guidelines of IFC PS 1. The primary objective was to inform and educate stakeholders about the proposed actions, as well as to gather and document public perceptions regarding the project. This process facilitated the identification of potential issues and challenges associated with the project, along with understanding the needs and concerns of the population likely to be affected. Through this participatory approach, public concerns were mitigated, and the involvement of local communities in the development process was enhanced.
Grievance Redressal Mechanism
In accordance with guidelines of IFC PS 2, a Grievance Redressal Framework (GRM) has been developed for managing grievances related to environmental and social performance arising from its operations in Project. This GRM will serve for managing overall performance of its projects as well as providing more accountability to its stakeholders.
Grievance Redressal Mechanism
In accordance with guidelines of IFC PS 2, a Grievance Redressal Framework (GRM) has been developed for managing grievances related to environmental and social performance arising from its operations in Project. This GRM will serve for managing overall performance of its projects as well as providing more accountability to its stakeholders.
Environmental and Social Management & Monitoring plan
An Environmental and Social Management & Monitoring Plan (ESMMP) is the key to ensure effective implementation of environmental and social safeguard measures during different stages of the project. The project specific ESMMP has been formulated for mitigating and offsetting the anticipated adverse impacts arising out of the project activities, as discussed in IFC PS 1. The plan includes implementation framework, supervision, monitoring and reporting requirements.
Throughout the construction phase, the primary responsibility for implementing environmental safeguard measures lies with the Construction Contractor. It is imperative for the Construction Contractor to ensure strict compliance with the provisions of environmental safeguards. GH2 Industries will assume overall responsibility for the implementation of the Environmental and Social Management & Monitoring Plan (ESMMP) during both the construction and operational phases. To ensure the effective implementation of the ESMMP, an environmental monitoring plan has been developed for the construction and operational stages.
Conclusion
After detailed impact assessment activity, it can be concluded that the project will bring positive changes in the socio-economic environment in the project area. Apart from its proximity to paddy fields, the project location is also near the largest local demand center of Karachi and 45 km from Port Qasim for export sales. The project will have a strong impact across SDG 2, 5, 8, 10 and 13 through significant employment generation and procurement from smallholder farmers and local SMEs, adoption of a sustainable business model with net zero emissions, circular economy features, and by working with smallholder farmers on climate adaptation and resilience. By implementing a comprehensive environmental management and monitoring plan throughout the construction and operational stages, the impacts generated by the proposed project can be effectively addressed.