Datang
Assessment Results of Datang's Overseas Environmental and Social Policies and Practices
KPI Category | Policy Commitments | Project Performance |
---|---|---|
Environmental Management Assessment Results | ||
Community & Labor Relations Assessment Results | ||
Risk Management Assessment Results | ||
Overall Results |
Good | Fair | Poor |
EN1: The company’s environmental policy commitments are consistent with international standards.
Policy Commitments
• Datang has committed to following World Bank Environmental and Social Safeguards Policies (Source: Company meeting on May 14, 2014).
• Datang has also endorsed the Global Compact in 2008 (Source: http://chinawto.mofcom.gov.cn/article/by/cb/200809/20080905789726.shtml).
EN2: The company’s policy commitments incorporate environmental and social standards set by Chinese law as a minimum.
Policy Commitments
• According to Datang’s domestic environmental policy, Datang is committed to following China’s environmental protection laws, regulations and policies. But it is not clear whether this applies to overseas projects (Source: Datang Regulation on Environmental Protection, Article 31).
Project Performance
• Datang prepared an Initial Environmental and Social Impacts Assessment (IESIA) and followed with an EIA. However, the construction started before the EIA was approved, which does not comply with Chinese standards (Source: Site visit, January 2015).
• The resettlement package is lower than Chinese standards (Source: Site visit, January 2015).
EN3: Prepares and implements Environmental Management Plans (EMP).
Policy Commitments
• According to its 2011 CSR Report, an environmental and ecological management plan has to be developed, implemented and operated together with any new project.
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
• Datang has endorsed the Global Compact, which includes the environment principles: Principle 7-Businesses should support a precautionary approach to environmental challenges; and Principle 8-Businesses should undertake initiatives to promote greater environmental responsibility.
Project Performance
• Chapter 7 of the IESIA is the EMP, but no detailed monitoring plan for the project’s implementation and operation was included (Source: Site visit, January 2015).
• Environmental Management Plan is not publicly available. Local governments (commune and district levels) have not been engaged on the EMP (Source: Site visit, January 2015).
EN4: Carries out rigorous and verifiable EIAs.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
• Datang has endorsed the Global Compact, which includes the environment principles: Principle 7-Businesses should support a precautionary approach to environmental challenges; and Principle 8-Businesses should undertake initiatives to promote greater environmental responsibility.
• Datang’s domestic environmental policy requires it to carry out rigorous and verifiable EIA before every power project starts construction. The EIA has to be carried out by a qualified organization. If any significant change of project scale, location, design or environmental mitigation measures happens, EIA should be resubmitted for approval. If the project construction starts five years after the EIA is approved, the EIA should be resubmitted for approval (Source: Datang Regulation on Environmental Protection).
Project Performance
• The EIA report covers impacts on the natural socio-economic environments. The impacts on the natural environment discussed topics of hydrology, surface and underground water, river ecology, fisheries and forestry, wildlife and birds, erosion, sedimentation, and landslides. The impacts on the socio-economic environment reported on the direct impacts on farming land and houses (Source: Stung Atai Hydro-Electric BOT Project in Veal Veng District Pursat Pronvince Environmental and Social Impact Assessment).
• The EIA report only presented the direct impact, such as on land or houses and the natural environment, while the indirect, cumulative and interactive impact were not stated (Source: Stung Atai Hydro-Electric BOT Project in Veal Veng District Pursat Province Environmental and Social Impact Assessment).
• IESIA was developed in 2008 and submitted to Ministry of Environment (MOE) for comments. IESIA was updated to address comments and feedback and approved by MOE in September 2009. The full EIA followed afterwards and was approved on October 12, 2012. The project construction had already started before the EIA was approved (Source: Site visit, January 2015).
• Although the inventories of forest, wildlife, birds, and fish were recorded in the EIA, the dimension of the biological impacts and how those natural resources were impacted were not analyzed (Source: Site visit, January 2015).
• Most villagers didn’t know about the dam project until they saw the construction starting on the ground. Rather than consultation, villagers were only told of decisions about the project. The district government and commune level never received copies of the EIA or EMP (Source: Site visit, January 2015).
• Alternative actions/options, including alternatives to building a dam, are not addressed in the EIA report (Source: Stung Atai Hydro-Electric BOT Project in Veal Veng District Pursat Pronvince Environmental and Social Impact Assessment).
• We were not able to obtain the final EIA. MOE acknowledged that the EIA was not widely disseminated (Source: Site visit, January 2015).
EN5: Consistent basin development or water resource management plans, and Integrated Resources Plans.
Policy Commitments
• No information collected.
Project Performance
• No information collected.
EN6: Seeks to avoid impacts on biodiversity and ecosystem services, and supports conservation and biodiversity efforts related to the impacts on natural habitats by its hydropower projects.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
• Datang has endorsed the Global Compact, which includes the environment principles: Principle 7-Businesses should support a precautionary approach to environmental challenges; and Principle 8-Businesses should undertake initiatives to promote greater environmental responsibility.
Project Performance
• The project and its transmission lines are located near and inside the Cardamom Mountain Conservation Zones and the Phnom Sam Kos Wildlife Sanctuary, which are well known for special biodiversity, conservation and wetlands (Source: Stung Atai Hydro-Electric BOT Project in Veal Veng District Pursat Pronvince Environmental and Social Impact Assessment).
• It was reported that MDS Import Export Company used permits for clearing timber within the Stung Atai hydropower dam reservoir as cover to move protected rosewood felled outside those areas. A leaked report by a major international conservation group concludes that this company transported more than 16,000 cubic meters of rosewood out of the Cardamom zones in southwestern Cambodia using the permits to clear the dam site, despite an estimated reservoir zone stock of just 1,000 cubic meters (Source: http://www.phnompenhpost.com/national/calculus-logging).
• The EIA report recommended a fish path be built, but it has not been built (Source: Stung Atai Hydro-Electric BOT Project in Veal Veng District Pursat Pronvince Environmental and Social Impact Assessment; Site visit, January 2015).
• According to MOE, the company has a revegetation plan in the EMP, but the work hasn’t been done (Source: Site visit, January 2015).
• MOE is also concerned about the company not participating in managing the natural resources, especially the forest in the project site (Source: Site visit, January 2015).
EN7: Takes measures to prevent pollutions and protect public health during construction and operation.
Policy Commitments
• Datang has endorsed the Global Compact, which includes the environment principles: Principle 7-Businesses should support a precautionary approach to environmental challenges; and Principle 8-Businesses should undertake initiatives to promote greater environmental responsibility.
• Datang’s domestic environmental policy requires it to meet national pollution discharge standards for any project; strictly report, manage and deal with hazardous waste; and set up a pollution prevention plan and budget during the operation stage. It’s not clear whether this applies to overseas projects (Source: Datang Regulation on Environmental Protection, Article 31).
Project Performance
• The company promised to effectively manage solid waste and wastewater, installing toilets, bathrooms, safe dump site etc., in suitable places far from water resources to prevent contamination of water resources and soil in project area (Source: Clean Development Mechanism Project Design Document Form (CDM-PDD) of Cambodia Stung Atai Hydropower Project, Version 3 - In Effect as of: 28 July, 2006).
• However, the measures were general and basic. No detailed information or implementation status was collected.
• Villagers reported that in the first year of construction, the water in the river turned reddish and was very smelly. It was still reddish and smelly during our field visits, although not as bad as the first year (Source: Site visit, January 2015).
• A lot of forest, shrubs and dead wood were observed in the reservoir. Improper clearing of the reservoir and stagnant water may have contributed to deteriorated water quality (Source: Site visit, January 2015).
EN8: Carries out cultural resources assessments, and develops plans and processes to avoid, minimize, mitigate, and compensate negative impacts on cultural heritage.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
Project Performance
• Local communities reported that the Prey Areak and crematory forest of Ou Saom villagers were flooded and they could no longer access these sites (Source: Site visit, January 2015).
• While MEP officials deny these impacts, the district governor has acknowledged them (Source: Site visit, January 2015).
• Although the company promised to build a place for cremating bodies in the pagoda, this compensation measure has not been implemented yet (Source: Site visit, January 2015).
EN9: Addresses erosion and sedimentation issues.
Policy Commitments
• Datang has endorsed the Global Compact, which includes the environment principles: Principle 7-Businesses should support a precautionary approach to environmental challenges; and Principle 8-Businesses should undertake initiatives to promote greater environmental responsibility.
• Datang’s domestic environmental policy requires it to include an erosion management plan for any power project in hilly or sandy areas as part of the EIA, and requires it to restore the impacted environment and address the erosion issues in a timely manner after project construction (Source: Datang Regulation on Environmental Protection, Article 19, 40). It is not clear whether this applies to overseas projects.
Project Performance
• The company promised to repair any damage at rock excavation worksites, soil excavation worksites, and other work sites, to tamp down earth in worksites, and to pile up nutrient soil in order to replant after tamping down the earth (Source: Clean Development Mechanism Project Design Document Form (CDM-PDD) of Cambodia Stung Atai Hydropower Project, Version 3 - In Effect as of: 28 July, 2006).
• No information has been provided on implementation.
EN10: Adopts healthy downstream flow regimes, taking into account environmental, social and economic objectives, and where relevant, agreed transboundary objectives.
Policy Commitments
• Datang has endorsed the Global Compact, which includes the environment principles: Principle 7-Businesses should support a precautionary approach to environmental challenges; and Principle 8-Businesses should undertake initiatives to promote greater environmental responsibility.
• No details on relevant policies were collected.
Project Performance
• Under the EIA, the company is required to release enough water to maintain the downstream flow. The MOE has been concerned about the environmental flow between Dam 2 and the turbine house, and the environmental flow in the dry season. But the MOE’s inspection and monitoring work hasn’t begun. Further, no information could be provided by MOE on the actual implementation (Source: Site visit, January 2015).
• During our field trip, we observed that the water flow between Dam 2 and turbine house is too little to maintain the ecology of the river ecosystem (Source: Site visit, January 2015).
CL1: The company has a policy on involuntary resettlement and indigenous people.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
Project Performance
• Besides those resettled, other villagers have suffered losses. Villagers living along the river lost grass fields for raising buffalos because of changes in the water level. No compensation was received by these villagers (Source: Site visit, January 2015).
• Very few local villagers work at the dam (Source: Site visit, January 2015).
• The four resettled families have received different levels of compensation, but there has been no explanation why these amounts differ (Source: Site visit, January 2015).
• The four resettled families also received compensation land that was much smaller than the lands they lost. One resettlement family received 0.25 hectare of compensation land, while they lost 6 hectares. Further, the compensation land was not cleared and has no legal title (Source: Site visit, January 2015).
CL2: Social Impact Assessments (SIAs) are routinely conducted for major projects.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
Project Performance
• The IESIA lacks analysis on the impact on incomes from eco-tourism, fish catch, livelihoods and food security of affected people (Source: Comments on the Initial Environmental and Social Impact Assessment (IESIA) Report on Atai Hydropower Project in Veal Veng District, Pursat Province by SAWAC Consultants for Development July 2008 by NGO Forum on Cambodia).
• The resettlement and compensation plan has never been publicly disclosed.
CL3: Meaningful and accountable stakeholder communication and consultation across all stages.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
Project Performance
• In December 2008, NGO Forum on Cambodia (NGOF) was given less than a week to review the IESIA and give comments. NGOF observed that the IESIA didn’t have full public participation (Source: Comments on the Initial Environmental and Social Impact Assessment (IESIA) Report on Atai Hydropower Project in Veal Veng District, Pursat Province by SAWAC Consultants for Development July 2008 by NGO Forum on Cambodia).
• According to MOE officials, MOE organized consultation meetings at local, district and national levels. However, the consultation was conducted at the district government office, located about 80km away from the villages affected (Source: Site visit, January 2015).
• Most villagers didn’t know about the dam project until they saw workers starting construction activities. After construction started, villagers attended a few meetings in which they were only told of decisions about the project and requested to be cooperative (Source: Site visit, January 2015).
• The resettlement and compensation plan was implemented by SAWAC. The district government and local authorities didn’t know in detail about resettlement and compensation plans. Villagers weren’t told what compensation they would receive until they received it (Source: Site visit, January 2015).
CL4: Establishes a clear framework for filing complaints and dispute resolution.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
Project Performance
• Local villagers didn’t file any formal complaints because they have no prior experience of how to lodge complaints over a government project and lack knowledge on where and how to file formal complaints (Source: Site visit, January 2015).
• On the day they received compensation envelopes, one resettlement family complained that the amount was only USD1500. One staff member took back the envelope and money and removed USD600 from the envelope (witnessed by a district officer) (Source: Site visit, January 2015).
CL5: Benefits sharing commitment.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
Project Performance
• The EIA report doesn’t include an assessment on the distribution of benefits from the project (Source: Stung Atai Hydro-Electric BOT Project in Veal Veng District Pursat Pronvince Environmental and Social Impact Assessment).
• Villagers in Ou Saom heard that they will receive free electricity after the dam’s construction, but so far they have not been connected. The district government has received feedback from the company that the connection to the commune is too expensive and complicated. Another private company is installing electricity poles to Ou Saom Commune, but villagers believe that this electricity will not be free (Source: Site visit, January 2015).
CL6: The company practices do not breach relevant rights established under international human rights instruments.
Policy Commitments
• Datang endorsed the Global Compact, whose human rights principles are: Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: Businesses should make sure that they are not complicit in human rights abuses.
• The labor principles in the Global Compact include: Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour; Principle 5: Businesses should uphold the effective abolition of child labour; and Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation.
• But when Datang evaluated its compliance with the Global Compact in the 2013 CSR Report, it said clearly that Datang only follows the relevant international conventions that the Chinese government has endorsed (Source: 2013 CSR Report).
Project Performance
• Cambodian workers have complained that they were treated as second-class citizens, were forced to work on public holidays, and were not allowed time off for medical treatment (Source: http://www.phnompenhpost.com/national/fourth-missing-dam-disaster-say-witnesses).
CL7: Occupational safety and health program to foster a safe and healthy work environment.
Policy Commitments
• In 2009, Datang Group introduced the Regulation on Project Safety, Health and Environment, to define the duties, objectives and contents related to safety, occupational health and environmental management issues in construction projects as well as their inspection. The Regulation gives more focus on safety management while the contents and methods related to occupational health and environmental management are inadequate.
Project Performance
• An outlet pipe burst accident occurred in December 2012. Unconfirmed reports state three Cambodian workers and a Chinese man died in the accident. The victims’ families received USD3,300 in compensation. The Cambodian government and Chinese embassy required the company to carry out an investigation, but a report has not been made public (Source: http://www.phnompenhpost.com/national/fourth-missing-dam-disaster-say-witnesses).
CL8: Promotes local employment and related training.
Policy Commitments
• No information collected.
Project Performance
• Very few local villagers actually work at the dam. Some Cambodians from other provinces are working at the dam site, but we were unable to find the number of local hires (Source: Site visit, January 2015).
• One villager interviewed had worked as a security guard for two months and another interviewee worked as rock driller for four months. However, both didn’t received any training. The security guard left because the payment was too low to support his family. The rock driller left because he didn’t want work from day to day (Source: Site visit, January 2015).
RM1: Evidence of a company wide policy on corruption and bribery.
Policy Commitments
• Datang has endorsed the Global Compact, which includes the anti-corruption principle, Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Project Performance
• No information collected.
RM2: Compliance with local and national laws.
Policy Commitments
• No information collected.
Project Performance
• Construction began before a full Social and Environmental Impacts Assessment had been conducted. NGOF requested to halt the construction until a National Consultation Workshop could be held (Source: Comments on the Initial Environmental and Social Impact Assessment (IESIA) Report on Atai Hydropower Project in Veal Veng District, Pursat Province by SAWAC Consultants for Development July 2008 by NGO Forum on Cambodia).
RM3: Addresses transboundary issues to prevent, control and reduce transboundary impacts and use transboundary waters in a reasonable and equitable way.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
Project Performance
• No information collected.
RM4: Plans and processes for dam and other infrastructure safety management.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
• Datang Group has an Emergency Response Management Department Leading Team (Source: 2006 Datang CSR report).
• Datang has a regulation on Emergency Management for Safety in Production (Datang (2007) No. 681).
• In 2011, Datang Group introduced the Handbook on Safety Risk Evaluation for Datang’s Hydropower Companies.
• In 2009, Datang Group introduced the Regulation on Project Safety, Health and Environment to define the duties, objectives and contents related to safety, occupational health and environmental management issues in construction projects as well as their inspection.
Project Performance
• No information collected.
RM5: Systematic risk reporting and information sharing with local communities.
Policy Commitments
• Datang has committed to following World Bank Safeguard Policies (Source: Company meeting on May 14, 2014).
Project Performance
• Communities didn’t receive any report or risk information from the company (Source: Site visit, January 2015).
• Even after the collapse of the dam at the end of 2013, no details of the accident have been reported to the villagers or the local authorities (Source: Site visit, January 2015).
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Reference List
- China Datang Corporation Corporate Social Responsibilities Reports 2006-2013. http://www.china-cdt.com/dtwz//indexAction.ndo?action=showNewsListands=shzr_shzrbgandt=index_shzr
- Comments on the Initial Environmental and Social Impact Assessment (IESIA) Report on Atai Hydropower Projet in Veal Veng District, Pursat Province by SAWAC Consultants for Development July 2008 by NGOF.
- China Datang Corporation Regulation on Environmental Protection. http://wenku.baidu.com/view/5423f7136edb6f1aff001f17.html
- China Datang Corporation Handbook on Safety Risk Evaluation for Datang’s Hydropower Companies. http://wenku.baidu.com/view/833114e6524de518964b7dea.html
- China Datang Corporation Regulation on Project Safety, Health and Environment. http://wenku.baidu.com/view/99f30e0abb68a98271fefa15.html
- China Datang Corporation Regulation on Emergency Management for Safety in Production. http://wenku.baidu.com/view/33f1f03683c4bb4cf7ecd160.html
- Clean Development Mechanism Project Design Document Form (CDM-PDD) of Cambodia Stung Atai Hydropower Project, Version 3 - In Effect as of: 28 July 2006. http://cdm.unfccc.int/Projects/DB/JCI1355902421.49/view
- CDM Validation Report for Cambodia Stung Atai Hydropower Project by Japan Consulting Institute, 18 December 2012. Report No. JCI-CDM-VAL-11-182, Reviosion No. 02. http://cdm.unfccc.int/Projects/DB/JCI1355902421.49/view
- Company Interview, Datang, Beijing, May 14, 2014.
- Cambodian Stung Atai Hydropower Project field trip (December 9th 2014 to Jan 8th 2015).
- Fourth missing in dam disaster, say witnesses. http://www.phnompenhpost.com/national/fourth-missing-dam-disaster-say-witnesses
- Stung Atai Hydro-Electric BOT Project in Veal Veng District Pursat Pronvince Environmental and Social Impact Assessment (ESIA).
- The calculus of logging. http://www.phnompenhpost.com/national/calculus-logging