PRESS RELEASE 17 Jul 2017
Six challenges in upgrading EIA and ESIAs to International Standards
Bangkok, Thailand, 17 July 2017
Environmental and social impact assessment is a crucial prerequisite for power projects to acquire funding from international financial institutions. Apart from alleviating risks, ESIAs also add value to the blueprint from the standpoint of investors, giving lenders a quantifiable and objective basis to facilitate funding approval.
This new Pöyry Point of View examines the challenges of upgrading locally-prepared ESIAs to international standards and discusses the means of appropriately managing them to achieve financial close.
In this article, Mark Wilson, Pöyry's Senior Environmental Consultant outlines six challenges that consultants face in upgrading ESIAs and shares his expertise on bridging the gaps among these common issues:
- Translating the assessment to English
If the task of translating the gap analysis from the local lingo to English is given to an interpreter who is not familiar with the technical terms used in the document, potentially leading to misinterpretation.
- Working under time pressure to meet financial close
Challenges on meeting deadlines arise if the gap analysis deviates significantly from international standards, requiring more time than initially projected.
- Collecting baseline data
Insufficient baseline data and outdated baseline data from the local study which can significantly impact the overall timeline.
- Understanding the requirements
There is a risk that the upgraded ESIA Report could go through a number of iterations during the lender's review if the requirements aren't understood. This may require additional work on the sponsors' and environmental consultants' side.
- Ensuring locals get a fair deal
Land acquisition can often be led by governments, whose procedures for displacements may not be in accordance with the international standards required for the project.
- Requiring additional studies to meet international standards
Often additional studies such as Associated Facilities Assessment, Cumulative Impact Assessment, and Greenhouse Gas Assessment are required to meet international standards.
Senior Environment Consultant, Thermal Power
Tel. +66 614 055 863
Did you know?
- Pöyry's Social Impact Assessment Team has an extensive experience of social impact assessments and stakeholder engagements in energy, mining, chemical, and other industrial projects.
- Pöyry is one of the largest power sector consulting engineering companies in South East Asia, involved in over 30,000 MW of on-going thermal, hydro, and renewable energy projects in the region.
Pöyry is an international consulting and engineering company that delivers smart solutions across power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry's net sales in 2016 were EUR 530 million. The company's shares are quoted on Nasdaq Helsinki (POY1V). Approximately, Poyry has 5500 experts. 40 countries. 130 offices.