GREENFIELD AUTO MANUFACTURING PLANT A Project of HYUNDAI NISHAT MOTOR (PRIVATE) LIMITED ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT REPORT (ESIA) SEPTEMBER 2017 INTEGRATED ENVIRONMENT CONSULTANTS Head Office: 2nd Floor, Office # 11, Anwar Tower, 99-Shadman, Lahore, Pakistan E-mail: [email protected] Tel: + 92 042 3596 0091 Hyundai Nishat Motor (Private) Limited Environmental & Social Impact Assessment (ESIA) Report TABLE OF CONTENTS INTRODUCTION & SCOPE OF ESIA STUDY ................................................................. 8 1. INTRODUCTION & SCOPE OF ESIA STUDY ......................................................... 1 1.1. INTRODUCTION ......................................................................................................... 1 1.2. PROPOSED PROJECT‘S PROPONENT ..................................................................... 2 1.3. MARKET POTENTIAL IN AUTOMOBILE SECTOR IN PAKISTAN ..................... 5 1.4. SCOPE OF ESIA STUDY ............................................................................................. 7 1.5. APPROACH AND METHODOLOGY ........................................................................ 8 1.6. METHODOLOGY FOR EVALUATING IMPACTS .................................................. 9 1.7. METHODOLOGY FOR EVALUATION OF SOCIO-ECONOMIC AND CULTURAL CONDITIONS; AESTHETIC VALUES; POPULATION AND COMMUNITIES ......................................................................................................... 10 1.7.1. Objective ...................................................................................................................... 10 1.7.2. Data Sources and Collection Methodology ................................................................. 10 1.7.3. Study area..................................................................................................................... 12 1.7.4. Universe ....................................................................................................................... 12 1.8. DETAILS OF RESTORATION AND REHABILITATION AT THE END OF THE PROJECT LIFE ........................................................................................................... 12 POLICY, LEGAL & ADMINISTRATIVE FRAMEWORK ............................................ 13 2. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ................................ 13 2.1. APPLICABLE HOST COUNTRY ENVIRONMENTAL AND OCCUPATIONAL SAFETY AND HEALTH LAWS AND REGULATIONS ......................................... 13 2.2. NATIONAL ENVIRONMENTAL REGULATORY/LEGAL REQUIREMENTS ... 13 2.3. GUIDELINES FOR THE PREPARATION AND REVIEW OF ENVIRONMENTAL REPORTS (NOVEMBER 1997/2000) ........................................................................ 17 2.3.1. Guidelines for Public Consultations ............................................................................ 18 2.3.2. National Environmental Quality Standards (NEQS)-1993, Amended August 2000.............................................................................................................................. 18 2.3.3. National Environmental Quality Standards for Ambient Air - November- 2010 ........ 19 2.3.4. National Standards for Drinking Water Quality - November, 2010 ............................ 19 2.3.5. National Environmental Quality Standards for Noise - November, 2010 ................... 19 2.3.6. Sectorial Guidelines for Environmental Reports ......................................................... 19 2.3.7. Guidelines for Sensitive and Critical Areas ................................................................. 20 2.3.8. National Resettlement Policy and Ordinance .............................................................. 20 2.3.9. The National Forest Policy 2001 of Pakistan .............................................................. 20 2.3.10. Forest Act, 1927 ........................................................................................................... 21 2.3.11. Industrial Relation Ordinance, 2002 ............................................................................ 22 2.3.12. Pakistan Explosive Act, 1884 [updated December 6, 2014] ....................................... 23 2.3.13. Provincial Local Government Ordinances, 2001 ......................................................... 23 2.3.14. Factories Act, 1934 ...................................................................................................... 23 2.3.15. Land Use ...................................................................................................................... 25 2.3.16. Regulatory Framework ................................................................................................ 25 2.3.17. Deregulation of the Economy ...................................................................................... 25 2.3.18. Import Policy ............................................................................................................... 25 2.3.19. Infrastructure Facilities ................................................................................................ 25 2.3.20. Incentives ..................................................................................................................... 26 2.3.21. International and National Non-Governmental Organizations .................................... 26 Integrated Environment Consultants Page i of vi Table of Contents Hyundai Nishat Motor (Private) Limited Environmental & Social Impact Assessment (ESIA) Report 2.4. INTERNATIONAL FRAMEWORK – (APPLICABLE INTERNATIONAL ENVIRONMENTAL AND OCCUPATIONAL SAFETY AND HEALTH LAWS AND REGULATIONS)............................................................................................... 26 2.4.1. The Equator Principles (June 2013) ............................................................................. 27 2.4.2. Multilateral Investment Guarantee Agency (MIGA) - Policy on Environmental and Social Sustainability, Effective October 1, 2013 ......................................................... 27 2.4.3. International Finance Corporation‘s (IFC) Policy on Environmental and Social Sustainability, Effective January 1, 2012 .................................................................... 32 2.4.4. The World Bank Environmental Assessment Process ................................................. 33 2.4.5. IFC Environmental, Health and Safety – General Guidelines (April 30, 2007) .......... 33 2.4.6. IFC Environmental, Health and Safety – Metal, Plastic, and Rubber Products Manufacturing (April 30, 2007) ................................................................................. 34 2.4.7. ILO - Guidelines on Occupational Safety and Health Management Systems (ILO- OSH 2001) ................................................................................................................... 35 2.4.8. OHSAS 18000 ............................................................................................................. 36 2.4.9. ISO 14001 .................................................................................................................... 36 2.4.10. ISO 26000 .................................................................................................................... 37 2.4.11. IFC - Good Practice Note Addressing Grievances from Project-Affected Communities ...................................................................................................................................... 38 2.4.12. The UN Global Compact ............................................................................................. 38 2.5. CATEGORIZATION OF THE HNMPL PROJECT ................................................... 39 DESCRIPTION OF THE PROJECT .................................................................................. 42 3. DESCRIPTION OF THE PROJECT ........................................................................... 42 3.1. INTRODUCTION ....................................................................................................... 42 3.2. PROPOSED PROJECT LOCATION .......................................................................... 42 3.3. HNMPL PLANT CAPACITY ..................................................................................... 42 3.4. ASSEMBLY PLANT DETAILS ................................................................................. 49 3.5. ASSEMBLY PLANT LAYOUT ................................................................................. 51 3.6. FUEL, ENERGY & WATER REQUIREMENT ........................................................ 55 3.7. WASTEWATER.......................................................................................................... 56 3.8. TRANSPORTATION AND LOGISTICS ................................................................... 57 3.8.1. Truck Traffic ................................................................................................................ 57 3.9. ORGANIZATION STRUCTURE ............................................................................... 58 3.10. MANPOWER REQUIREMENT................................................................................. 59 3.11. PROPOSED PROJECT SCHEDULE ......................................................................... 59 4 60 ANALYSIS OF ALTERNATIVES ...................................................................................... 60 4. ANALYSIS OF ALTERNATIVES ............................................................................. 60 4.1. GENERAL