ESC was commissioned by a private equity fund investment firm to conduct an Environmental and Social Due Diligence (ESDD) study to support the transaction of a fibre optic telecommunication infrastructure project in Cambodia and Myanmar.
About the Project
The client seeks to examine the possible investment opportunity in a fibre optic telecommunication infrastructure, which operates and invests in high-capacity optical fibre networks in emerging regions such as Southeast Asia, for the purpose of determining whether to proceed with the transaction.
Our Approach
ESC has substantial experience and in-house resources for performing ESDD investigations in accordance with international standards. ESC utilised the team that successfully completed a number of recent ESDD projects and conducted a series of desk studies, interviews with project staff and stakeholders, project analysis, and reporting.
ESC was required to investigate the potential environmental and social impacts, including:
- project’s environmental and social risks and impacts in the planning and implementation of the project;
- corporate environmental and social management systems;
- pollution prevention for construction and operation phase;
- land acquisition and involuntary resettlement; and
- project’s management work related to labour and local communities in Cambodia and Myanmar
In addition to reviewing the whole environmental and social aspects of the project operating in two entities, the ESDD study also examined how these projects conform to Asia Infrastructure Investment Bank (AIIB) Standard.
Outcome
ESC was able to determine whether the client’s available documentation met AIIB criteria, identify gaps, inform strategy, and demonstrate its impact to stakeholders through ESDD studies. ESC also supplied the client with an Environmental and Social Action Plan (ESAP) and recommendations for addressing identified gaps for the fibre optic telecommunications project.
The client gained knowledge of the conditions of the target company based on the parameters described in the transactional due diligence report which the client will then use as the basis of their decision in making an investment in a portfolio company.
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