Issued cases designated as Category A
Published 30 July 2024
Issued cases designated as Category A, having high potential environmental, social and human rights (ESHR) impacts, where UKEF has contingent liabilities outstanding.
1. Angola
1.1 Project: Construction and operation of 240km transmission line (Lauca)
Year of issue
2018-19
Applicable ESHR risk framework
OECD Common Approaches
Product
Reinsurance (to EKF, Danish ECA)
Project Phase
Construction
Key risks
-
Health and safety
-
Noise and air quality
-
Biodiversity
-
Physical resettlement and economic displacement
-
Waste management
Monitoring summary
Self-monitoring report received and reviewed by IESC and lenders; UKEF coordinating with EKF in reviewing and responding.
2. Bahrain
2.1 Project: Upgrade and modernisation of the existing BAPCO refinery
Year of issue
2019-20
Applicable ESHR risk framework
OECD Common Approaches and Equator Principles
Product
Project Finance / Direct Loan / Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
Environmental pollution
-
Health and safety
-
Noise and air quality
-
Waste management
-
Labour and Working Condition
Monitoring summary
Monitoring report from ERM received and reviewed in June 2024. The project is facing challenges due to Downtown subcontractor’s failure to pay workers’ salaries. UKEF will continue to monitor the project until this issue is resolved.
3. Belgium
3.1 Project: Design, engineering, procurement, construction, commissioning, operation and maintenance of a 1,450 kta ethane cracker and associated transportation, storage and utilities infrastructure (Project One) located at the Port of Antwerp, Belgium (INEOS Project ONE)
Year of issue
2022-23
Applicable ESHR risk framework
OECD Common Approaches and Equator Principles
Product
Project Finance - Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
climate change
-
biodiversity
-
occupational health and safety
-
emissions to the atmosphere (including land, air and water)
-
waste and hazardous material management
-
emergency planning and response
-
community health and safety and
-
community engagement
Monitoring summary
IESC’s second monitoring report received and reviewed. No major issues to be reported.
4. Brazil
4.1 Project: Petrobras oil and gas exploration and production in three offshore Brazilian basins, Line of Credit (LOC) Phase I
Year of issue
2011-12
Applicable ESHR risk framework
OECD Common Approaches
Product
Line of Credit Guarantee
Project Phase
Operations
Key risks
-
Environmental pollution
-
Labour and working conditions
-
Health and safety
-
Waste management
-
Community safety / stakeholder engagement
-
Emergency response
-
Decommissioning
Monitoring summary
Monitoring related to Petrobras Phase I is included within monitoring of Petrobras LOC III.
4.2 Project: Petrobras oil and gas exploration and production in three offshore Brazilian basins, Line of Credit (LOC) Phase II
Year of issue
2015-16
Applicable ESHR risk framework
OECD Common Approaches
Product
Line of Credit Guarantee
Project Phase
Operations
Key risks
-
Environmental pollution
-
Labour and working conditions
-
Health and safety
-
Waste management
-
Community safety / stakeholder engagement
-
Emergency response
-
Decommissioning
Monitoring summary
Monitoring related to Petrobras Phase II is included within monitoring of Petrobras LOC III.
4.3 Project: Petrobras oil and gas exploration and production in three offshore Brazilian basins, Line of Credit (LOC) Phase III
Year of issue
2018-19
Applicable ESHR risk framework
OECD Common Approaches and Equator Principles
Product
Line of Credit Guarantee
Project Phase
Operations
Key risks
-
Environmental pollution
-
Labour and working conditions
-
Health and safety
-
Waste management
-
Community safety / stakeholder engagement
-
Emergency response
-
Decommissioning
Monitoring summary
Monitoring reports received and reviewed.
5. Egypt
5.1 Project: Design, construction, operation and maintenance of two monorail lines (Cairo Monorails)
Year of issue
2020-21
Applicable ESHR risk framework
OECD Common Approaches
Product
Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
Health and safety
-
Air, noise and soil quality
-
Wastewater and waste management
-
Physical and economic displacement
-
Cultural heritage
Monitoring summary
IESC reports received and reviewed. Several issues and potential breaches of the E&S obligations reported during this financial year.
6. Ghana
6.1 Project: Development of oil and gas exploration and production facilities in the offshore Sankofa and Gye Nyame gas fields and Sankofa East oil field, part of the Offshore Cape Three Points (OCTP) block, utilising a floating production, storage and offloading unit (FPSO) and an onshore gas receiving facility (ORF)
Year of issue
2016-17
Applicable ESHR risk framework
OECD Common Approaches
Product
Buyer Credit Guarantee / Direct Lending
Project Phase
Operations
Key risks
-
Environmental pollution
-
Labour and working conditions
-
Health and safety / contractor management
-
Biodiversity
-
Emergency response
-
Decommissioning
Monitoring summary
IESC annual monitoring report received and reviewed.
6.2 Project: Rehabilitation and upgrade of an existing road, (Bolgatanga)
Year of issue
2021-22
Applicable ESHR risk framework
OECD Common Approaches
Product
Buyer Credit Guarantee / Direct Lending
Project Phase
Construction
Key risks
-
Worker and community health and safety
-
Physical and economic displacement
-
Emissions to the atmosphere (including land, air and water, and climate change)
-
Traffic management and road safety
-
Wastewater treatment
-
Waste and hazardous material management
-
Community engagement
Monitoring summary
Construction self-monitoring report received and reviewed in early 2022; in December 2022 Project was suspended due to Ghana Ministry of Finance announcing suspension of payments on selected external debts. The Project has not yet restarted.
6.3 Project: Upgrade of the Tema-Alfao Road, Ghana
Year of issue
2020-21
Applicable ESHR risk framework
OECD Common Approaches
Product
Buyer Credit Guarantee / Direct Lending
Project Phase
Construction
Key risks
-
Air emissions
-
Noise and vibration
-
Waste management
-
Land acquisition and livelihood impacts
-
Occupational and community health and safety
-
Worker welfare
-
Community engagement
Monitoring summary
Construction self-monitoring report received and reviewed in early 2022; in December 2022 Ghana Ministry of Finance announcing suspension of payments on selected external debts, including the Project. Construction works have largely been put on hold since then.
7. India
7.1 Project: Design and supply of goods for upgrade and expansion of a petrochemical plant
Year of issue
2014-15
Applicable ESHR risk framework
OECD Common Approaches
Product
Buyer Credit Guarantee
Project Phase
Operations
Key risks
-
Environmental pollution
-
Labour and working conditions
-
Health and safety and security
-
Waste management
-
Social issues / stakeholder engagement
Monitoring summary
No known material environmental or social issues.
8. Iraq
8.1 Project: Construction and operation of a 750MW power station (Dhiqar)
Year of issue
2018-19
Applicable ESHR risk framework
OECD Common Approaches
Product
Buyer Credit Guarantee / Direct Lending
Project Phase
Operations
Key risks
-
Health and safety
-
Noise and air quality
-
Wastewater and waste management
-
Resource efficiency
Monitoring summary
No IESC reports or self-monitoring reports have been received this year. A reservation of rights letter has been shared with the buyer and borrower.
8.2 Project: Construction and operation of a 750MW power station (Samawa)
Year of issue
2018-19
Applicable ESHR risk framework
OECD Common Approaches
Product
Buyer Credit Guarantee / Direct Lending
Project Phase
Operations
Key risks
-
Health and safety
-
Noise and air quality
-
Wastewater and waste management
-
Resource efficiency
Monitoring summary
No IESC reports or self-monitoring reports have been received this year. A reservation of rights letter has been shared with the buyer and borrower.
9. Kuwait
9.1 Project: KNPC Clean Fuel Project (CDP)
Year of issue
2018-19
Applicable ESHR risk framework
OECD Common Approaches and Equator Principles
9.2 Product
Buyer Credit Guarantee
Project Phase
Operations
Key risks
-
Health and safety
-
Noise and air quality
-
Waste management
-
Soil, Groundwater and Surface Water Contamination
-
Worker welfare
Monitoring summary
IESC monitoring report received and reviewed.
10. Mozambique
10.1 Project: Development of offshore gas fields
Year of issue
2020-21
Applicable ESHR risk framework
OECD Common Approaches and Equator Principles
Product
Project Finance
Project Phase
Construction
Key risks
-
Labour and working conditions, health and safety, and security
-
Air, noise and soil quality
-
Waste and hazardous substances management
-
Physical resettlement and economic displacement
-
Biodiversity
-
Cultural heritage
Monitoring summary
Force Majeure was called by Total in April 2021 due to the deteriorating security situation. Construction works have been put on hold.
11. Oman
11.1 Project: Construction and operation of a natural gas liquids (NGL) extraction plant, NGL pipeline and a petrochemical complex
Year of issue
2015-16
Applicable ESHR risk framework
OECD Common Approaches
Product
Project Finance
Project Phase
Operations
Key risks
-
Environmental pollution
-
Noise and Air Quality Labour and working conditions
-
Health and safety / contractor management
Monitoring summary
IESC monitoring report received and reviewed.
11.2 Project: Construction and operation of Duqm oil refinery
Year of issue
2018-19
Applicable ESHR risk framework
OECD Common Approaches and Equator Principles
Product
Project Finance
Project Phase
Construction
Key risks
-
Biodiversity
-
Worker welfare
-
Health and safety
-
Noise and air quality
-
Waste management
-
Resource efficiency
Monitoring summary
IESC monitoring reports received and reviewed. Several incidents reported in the FY 2023.
12. Saudi Arabia
12.1 Project: Construction and operation of Saudi Kayan refinery and petrochemical plant
Year of issue
2010-11
Applicable ESHR risk framework
OECD Common Approaches
Product
Project Finance
Project Phase
Operations
Key risks
-
Environmental pollution
-
Health and safety
-
Emergency response
Monitoring summary
No known material environmental or social issues.
12.2 Project: Construction and operation of Sadara hydrocarbon and chlorine-based production complex
Year of issue
2013-14
Applicable ESHR risk framework
OECD Common Approaches
Product
Project Finance
Project Phase
Operations
Key risks
-
Environmental pollution
-
Labour and working conditions
-
Health and safety
Monitoring summary
IESC monitoring report received and reviewed.
13. Senegal
13.1 Project: Construction and rehabilitation of multiple roads within the national road network of Senegal (Project Strada)
Year of issue
2022-23
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Line of credit, Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
Stakeholder engagement
-
Grievance mechanisms
-
Emergency planning and response
-
Worker welfare and occupational health and safety
-
Supply chain management
-
Noise, vibrations, dust and air emissions
-
Hazardous materials, waste and drainage management
-
Materials management in relation to shared resources and/or associated facilities
-
Community health, safety and security
-
Traffic management
-
Potential for physical and economic displacement
-
Biodiversity management
-
Cultural heritage and
-
Monitoring and reporting for multiple project component locations
Monitoring summary
This is a line of credit with multiple tranches containing both physical and financial components. No tranches contain physical components have been approved yet hence monitoring requirements have not yet commenced.
14. Serbia
14.1 Project: Design, construction and maintenance of a new motorway (Morava Corridor)
Year of issue
2021-22
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
Air emissions and climate change
-
Noise and vibration
-
Soil quality
-
Waste management
-
Biodiversity
-
Land acquisition and livelihood impacts
-
Occupational and community health and safety
-
Worker welfare
-
Cultural heritage
-
Visual impacts
Monitoring summary
IESC monitoring reports received and reviewed.
15. Taiwan
15.1 Project: Construction of an offshore wind farm (Formosa 2)
Year of issue
2019-20
Applicable ESHR risk framework
OECD Common Approaches and Equator Principles
Product
Project Finance
Project Phase
Operations
Key risks
-
Health and safety
-
Underwater noise pollution
-
Biodiversity
-
Economic displacement
Monitoring summary
IESC monitoring reports received and reviewed.
15.2 Project: Construction of an offshore wind farm (Changfang and Xiado)
Year of issue
2019-20
Applicable ESHR risk framework
OECD Common Approaches and Equator Principles
Product
Project Finance
Project Phase
Construction
Key risks
-
Health and safety
-
Underwater noise pollution
-
Biodiversity
-
Economic displacement
Monitoring summary
IESC monitoring report received and reviewed.
15.3 Project: Construction of an offshore wind farm (Changhua)
Year of issue
2021-22
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Project Finance
Project Phase
Construction
Key risks
-
Labour and working conditions, including occupational health and safety
-
Management of thirds-party contractors and suppliers
-
Biodiversity and underwater noise pollution
-
Community engagement and grievance mechanisms
-
Marine traffic management and marine safety
-
Economic displacement and livelihood restoration
Monitoring summary
IESC monitoring report received in June 2024 and it is being reviewed.
15.4 Project: Construction of an offshore wind farm (Northland Power)
Year of issue
2022-23
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Project Finance
Project Phase
Construction
Key risks
-
air pollution
-
health and safety
-
social and community impacts
-
marine habitats
-
biodiversity, particularly migratory birds
-
emergency planning and response
-
grievance mechanisms
-
worker conditions of contract and
-
community engagement
Monitoring summary
IESC monitoring reports received and reviewed for Q3 and Q4 2023. Next report is due imminently for Q1 2024.
16. Tanzania
16.1 Project: Expansion and upgrade of an existing Airport (Pemba)
Year of issue
2022-23
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
Physical and economic displacement
-
Biodiversity
-
Occupational health and safety
-
Climate change
-
Emissions to air
-
Noise impacts
-
Waste management
-
Emergency planning and response
-
Community health and safety and
-
Community engagement
Monitoring summary
Design works are ongoing and therefore construction, and hence E&S monitoring, has not yet commenced.
16.2 Project: Construction of 3 roads
Year of issue
2022-23
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
Physical and economic displacement
-
Biodiversity
-
Occupational health and safety
-
Climate change
-
Emissions to air
-
Noise impacts
-
Wastewater treatment
-
Waste management
-
Emergency planning and response
-
Community health and safety and
-
Community engagement
Monitoring summary
Design works are ongoing and therefore construction, and hence E&S monitoring, has not yet commenced.
17. Turkey
17.1 Project: Design, construction and operation of a solar power plant (Kalyon)
Year of issue
2021-22
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Buyer Credit Guarantee
Project Phase
Operations
Key risks
-
Labour and working conditions
-
Human rights risks in the supply chain
-
Resource efficiency (in particular the use of water)
-
Land, air and water emissions
-
Wastewater, waste and hazardous material management
-
Community health and safety, including the use of security personnel
-
Land acquisition and economic displacement
-
Biodiversity, including the potential presence of critical habitats
-
Stakeholder engagement
Monitoring summary
IESC reports received and reviewed.
17.2 Project: Development and operation of a double-track high-speed rail (Ankara-Izmir)
Year of issue
2021-22
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
Physical and economic displacement
-
Biodiversity, including impacts on critical habitats
-
Occupational health and safety
-
Air and noise emissions
-
Impacts on land and water
-
Waste and hazardous material management
-
Wastewater treatment
-
Construction camp conditions
-
Community engagement
Monitoring summary
Self-monitoring report received and reviewed. IESC reports received and reviewed.
17.3 Project: Development and operation of a new Urea Production Plant in the Gemlik District of Bursa, Turkey
Year of issue
2022-23
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
Labour and working conditions, including occupational health and safety and work, conditions of contract
-
Wastewater, waste and hazardous material management
-
Community health and safety
-
Community engagement
-
Emergency planning and response and
-
Emissions to air / climate change
Monitoring summary
The IESC and UKEF visited the site in May 2024, following an environmental spill in November 2023. Construction activities were halted for four months and resumed in April 2024. Breaches of E&S obligations recorded.
17.4 Project: Construction and operation of the MERSIN-ADANA-OSMANIYE-GAZIANTEP (MAG) high-speed rail (HSR), Turkey
Year of issue
2022-23
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
physical displacement
-
biodiversity and natural habitats
-
occupational health and safety
-
emissions to air
-
noise impacts
-
wastewater treatment
-
waste and hazardous material management
-
emergency planning and response
-
construction camp conditions
-
community health and safety and
-
community engagement
Monitoring summary
IESC monitoring reports received and reviewed. Potential breaches of the E&S obligations.
17.5 Project: Construction and operation of a double-track high-speed rail (Yerköy-Kayseri)
Year of issue
2022-23
Applicable ESHR risk framework
OECD Common Approaches / Equator Principles
Product
Buyer Credit Guarantee
Project Phase
Construction
Key risks
-
physical and economic displacement
-
critical habitats
-
occupational health and safety
-
air, noise and vibration impacts
-
wastewater treatment
-
waste and hazardous material management
-
emergency planning and response
-
construction camp conditions
-
grievance mechanisms and
-
community engagement
Monitoring summary
First IESC monitoring report received in February 2024.
18. Uganda
18.1 Project: Construction of a new international airport at Kabaale
Year of issue
2017-18
Applicable ESHR risk framework
OECD Common Approaches
Product
Buyer Credit Guarantee / Direct Lending
Project Phase
Construction
Key risks
-
Noise and air pollution
-
Water abstraction
-
Labour and working conditions
-
Health and safety / contractor management
-
Physical resettlement and livelihood restoration
-
Biodiversity management
Monitoring summary
IESC monitoring report received and reviewed.
18.2 Project: Construction of ancillary works for industrial park (Kampala)
Year of issue
2020-21
Applicable ESHR risk framework
OECD Common Approaches
Product
Buyer Credit Guarantee / Direct Lending
Project Phase
Construction
Key risks
-
Labour and working conditions, and health and safety
-
Air quality and noise
-
Wastewater, waste and hazardous substances management
-
Economic displacement
-
Biodiversity
Monitoring summary
Self-monitoring reports received and reviewed. No IESC monitoring reports received due to contractual issue. Delays in completion of biodiversity actions. Delivery of an IESC report to UKEF’s satisfaction is required as a condition of availability period extension.
19. Vietnam
19.1 Project: Construction and operation of the Nghi Son petrochemical refinery
Year of issue
2013-14
Applicable ESHR risk framework
OECD Common Approaches
Product
Project Finance
Project Phase
Operations
Key risks
-
Environmental pollution
-
Labour and working conditions
-
Health and safety
-
Social issues / stakeholder engagement
Monitoring summary
Annual IESC monitoring report received and reviewed.