[Double-click to import picture] Supplementary Lenders Information Package (SLIP) in complement of Environmental and Social Impact Assessment Energética I Wind Farm Project (Tornquist, Argentina) 28 June 2019 Project No.: 0511793 The business of sustainability Document details The details entered below are automatically shown on the cover and the main page footer. PLEASE NOTE: This table must NOT be removed from this document. Document title Supplementary Lenders Information Package (SLIP) in complement of Environmental and Social Impact Assessment Document subtitle Energética I Wind Farm Project (Tornquist, Argentina) Project No. 0511793 Date 28 June 2019 Version Final Author ERM Client Name AES ARGENTINA Document history ERM approval to issue Version Revision Author Reviewed by Name Date Comments Final 01 ERM Camille Maclet Leonardo Fantin 28/06/2019 - www.erm.com Version: Final Project No.: 0511793 28 June 2019 Signature Page 28 June 2019 Supplementary Lenders Information Package (SLIP) in complement of Environmental and Social Impact Assessment Energética I Wind Farm Project (Tornquist, Argentina) Camille Maclet Leonardo Fantin Partner Business Unit Managing Partner ERM Argentina S.A. Av. Cabildo 2677, Piso 6º (C1428AAI) 46 Buenos Aires, Argentina © Copyright 2019 by ERM Worldwide Group Ltd and / or its affiliates (“ERM”). All rights reserved. No part of this work may be reproduced or transmitted in any form, or by any means, without the prior written permission of ERM www.erm.com Version: Final Project No.: 0511793 28 June 2019 SUPPLEMENTARY LENDERS INFORMATION PACKAGE (SLIP) IN CONTENTS COMPLEMENT OF ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT Energética I Wind Farm Project (Tornquist, Argentina) CONTENTS EXECUTIVE SUMMARY .................................................................................................................... 8 1. PROJECT DESCRIPTION ...................................................................................................... 12 2. LEGAL & ADMINISTRATIVE FRAMEWORK ......................................................................... 15 2.1 Overview of the Legal and Institutional Organization ................................................... 15 2.2 National vs. Provincial Regulatory Setting ................................................................... 16 2.2.1 Environmental and Health and Safety Regulations ....................................... 16 2.3 Authorities .................................................................................................................. 16 2.4 Federal Regulations ................................................................................................... 17 2.4.1 National Constitution .................................................................................... 17 2.4.2 Human Rights .............................................................................................. 17 2.4.3 Environmental Framework Law .................................................................... 18 2.4.4 Other Relevant Environmental Regulations .................................................. 18 2.4.5 Health and Safety Regulations ..................................................................... 20 2.5 Buenos Aires Province Regulations ............................................................................ 20 2.5.1 Renewable Energies Regulations ................................................................ 20 2.5.2 Environmental Impact Assessment and Environmental License ................... 20 2.5.3 Other Environmental Regulations ................................................................ 22 2.6 International Treaties and Agreements ....................................................................... 23 2.7 International Requirements ......................................................................................... 23 2.7.1 FC Guidelines, Standards and Policies ........................................................ 24 2.7.2 World Bank Policies ..................................................................................... 26 2.7.3 Equator Principles ....................................................................................... 28 2.7.4 Voluntary Principles on Security and Human Rights ..................................... 28 3. PROJECT ALTERNATIVES ................................................................................................... 30 3.1 Overall Project context ............................................................................................... 30 3.2 Site selection .............................................................................................................. 30 3.2.1 Alternative Locations and Design for Wind Turbines..................................... 31 3.3 “No Project” Alternative .............................................................................................. 32 3.4 References ................................................................................................................. 32 4. LAND ACQUISITION ............................................................................................................. 32 4.1 Land Acquisiton Process and Agreement ................................................................... 33 5. AREAS OF INFLUENCE ........................................................................................................ 35 5.1 DIRECT AREA OF INFLUENCE ................................................................................. 36 5.2 INDIRECT AREA OF INFLUENCE ............................................................................. 37 6. BASELINES ........................................................................................................................... 42 6.1 Biodiversity ................................................................................................................. 42 6.1.1 Environmental setting overview.................................................................... 42 6.1.2 Methodology ................................................................................................ 44 6.1.3 Criteria used to select vulnerable species .................................................... 46 6.1.4 Results ........................................................................................................ 47 6.1.5 Habitat of importance ................................................................................... 47 6.1.6 Potentially distributed species ...................................................................... 51 6.2 Socioeconomic Baseline and Stakeholder Mapping .................................................... 60 6.2.1 Introduction ................................................................................................. 60 6.2.2 Governance and Administration ................................................................... 62 6.2.3 Government and Territorial distribution ........................................................ 63 6.2.4 Land Use and Spatial Planning .................................................................... 63 www.erm.com Version: Final Project No.: 0511793 Client: AES ARGENTINA 28 June 2019 Page 1 SUPPLEMENTARY LENDERS INFORMATION PACKAGE (SLIP) IN CONTENTS COMPLEMENT OF ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT Energética I Wind Farm Project (Tornquist, Argentina) 6.2.5 Population ................................................................................................... 63 6.2.6 Migration ..................................................................................................... 64 6.2.7 Education .................................................................................................... 65 6.2.8 Economics and Livelihoods.......................................................................... 66 6.2.9 Labor Force ................................................................................................. 67 6.2.10 Industrial Sector........................................................................................... 67 6.2.11 Agriculture Sector ........................................................................................ 68 6.2.12 Tourism and Recreation Sector.................................................................... 68 6.2.13 Roads and Transportation Means ................................................................ 71 6.2.14 Poverty in the Study Area ............................................................................ 71 6.2.15 Potential Vulnerable Groups Identified ......................................................... 73 6.3 Sociocultural .............................................................................................................. 73 6.3.1 Religion ....................................................................................................... 73 6.3.2 Indigenous People and Culture .................................................................... 73 6.4 Community Health ...................................................................................................... 75 6.4.1 Public Health Facilities and Personnel ......................................................... 75 6.4.2 Key Community Diseases ............................................................................ 76 6.4.3 Water, Hygiene and Sanitation..................................................................... 76 6.5 Community Safety and Security .................................................................................