D'Appolonia has experience providing environmental and social monitoring services for large infrastructure projects globally as an External Compliance Monitoring Group and Independent Environmental and Social Consultant. Over time, the complexity of these roles has increased as standards have expanded and projects have grown more specialized. D'Appolonia has adapted by developing specialized expertise, incorporating additional social and economic standards, and ensuring independence and responsiveness to various stakeholders and commercial partners.

1. D’Appolonia’s experience as “External Compliance Monitoring
Group”
to “Lenders’ Independent Environmental and Social Consultant” in
the private sector
Challenges and Opportunities
IAIA 15 – April 21st 2015

2. 2000 – 2012 External Compliance Monitoring Group - Chad Cameroon pipeline
ECMG at the beginning -
Chad Cameroon
2000-2005 2006-2010 2011-to date
Commercial Banks
IFIs

3. Growth
2004 – ongoing ECMG BTC Pipeline, Georgia, Azebijan, Turkey
•Chad-Cameroon Export Pipeline
2001
2003
•Baku Tiblisi Ceyhan Pipeline
•Perù LNG
•Newmont Ahafo Gold Mine - Ghana
2004-2006
•Papua New Guinea LNG
•Nord Stream pipeline
•Ichthys LNG - Australia
•Socar Turcas Aegean Refinery STAR - Turkey2007-2011
•Oyu Tolgoi mine - Mongolia
•South Stream Pipeline - Black Sea
•Etileno XXI Project - Mexico
•Nacala Corridor - Mozambique
•Anadarko LNG - Mozambique
•Punta Catalina Power plant – Dominican
Republic …………
2012 - 2015
Cat A projects

4. 2006-2014 ECMG Newmont Ahafo Mine, Ghana
Sectors
€-
€5.000.000
€10.000.000
€15.000.000
2001-2003 2003-2006 2006-2011 2011-2014 2015-2017
Infrastructures & others
Energy

5. Complexity
APPLICABLE STANDARDS
From a single applicable standard (“WB Pollution and prevention & abatement
handbook” and “IFC Environmental Assessment Guidelines”) to multiple and
tailored standards (IFC PS, EP, OECD Common Approaches, Specific IFIs, and
ECAs Standards…) to comply with for a specific project
BATTERY LIMITS & RISKS
The actual definition of the project area of influence, associated facilities and
the leverage, control and influence over third party’s actions
2008 – 2013 ECMG CAIRN pipeline system, India

6. A former ECMG team
Project Manager
Environmental
Expert
Social
Expert
Health &
Safety Expert
SPECIALIZED TEAM
 Today, a different and more complex expertise is required
 Increasing geographical specialization and technically specialized experts in
those fields as required by the projects
2009 – ongoing IESC PNG LNG, Papua New Guinea

7. A current IESC team
2010 – ongoing IESC Tullow Oil, Ghana
Sector specific process experts (hydro, petrochemical, heavy industry, …)
• ESMS specialist
• Biodiversity
specialist
• Marine specialist
• Air Emissions
specialist
• SEP specialist
• Human resource
specialist
• Cultural heritage
specialist
• Indigenous peoples
specialist
• Emergency
preparedness
and response
specialist
• OHS specialist
• QRA specialist
Project Manager
Environmental
Expert
Biodiversity
Specialist
Marine
Expert
Social Expert
RAP
specialist
Labor
Specialist
Health &
Safety Expert
Community
Specialist
Process safety
Specialist

8. Evolving Trends
 From environmentally viable projects to social, economical,
environmental sustainable projects
 Management of social impacts, gender equality, labor risks,
implementation of safety management systems are now key aspects
of the IESC evaluation
 Stakeholder engagement, Compliance of the compensation process
with EMS/RAP commitments, Resettlement and Livelihood
Restoration measures, Communication aspects importance is
increasing
2009 – 2014 IESC Nord Stream pipeline, Russia, Finland, Germany

9. 2011 – ongoing IESC Ichthys LNG, Australia
Players

10. Commercial banks and Export Credit Agencies involvement add value and
bring additional challenges:
 Increasing awareness of the banking systems towards EHSS issues - IESC
to provide early warnings on issues/risks
 adapting to their decision making process and to internal procedures to
respond to the OECD Common Approaches, to the Equator Principles’
standards, to Lenders’ specific standards
2011 – ongoing IESC Socar Turcas Aegean Refinery STAR, Turkey
Commercial Banks /Export
Credit Agencies involvement

11.  Proactive interaction with key players
 Quickly response and timely advice to Lenders
 Integrity and Independence
 Ability to manage potential conflicts of interest perceived by
Sponsors/Lenders
 Capability to understand and manage the prevailing standards
 Training to support Sponsors on EHSS issues, as needed
Adaptive response to
changes
2012 – ongoing OHS Advisor Enerjisa Power Plant, Turkey

12. 2012-ongoing IESC Etileno XXI, Mexico
 Streamlined Due Diligence process
 IESC involved at early stage of the process
 ESHS Company policies and procedures already in line with international
requirements (this was not the case in the past)
 Awareness of the project sponsors towards the IESC role
Think positive
(Lessons Learned)

13.  Growth of internal resources to cover the most specialized role(s) (Team
Leader, Project Manager)
 Outsourcing to address specific requirements through a selected roster
of freelances and local partners
 Due Diligence schedules might be unrealistic: IESC needs to be flexible
and to guarantee long lasting commitment
 IESC is the “Eyes and Ears” throughout the project lifecycle
IESC adaptation process
2014 - ongoing IESC Nacala Corridor project, Mozambique

14. If this is not done, future ages will
certainly look back upon us as a people so
immersed in the pursuit of wealth as to
be blind to higher considerations
Alfred Russel Wallace

15. Thank you
IAIA 15 – April 21st 2015
D’Appolonia S.p.A.
Via San Nazaro,19 - 16145 Genova – Italy
Tel. +39 010 3628148 Fax +39 010 3621078
E-mail: dappolonia@dappolonia.it
Alessandro Casartelli
Linkedin: https://goo.gl/SDe5iN