International Finance Company (IFC) & a Private Client - Ecosystem Service Assessment - 2017

Description of Project:

Around 70.2 ha land in a hilly area of a commune (of one province in Vietnam) was acquired for the Client to develop a Solar Power Project. The Client, being a client of IFC, was required to manage the environmental and social risks associated with the project as per IFC’s sustainability framework. This assessment focused on the applicability of PS6 ‘Biodiversity conservation and sustainable management of living natural resources’ and PS7 ‘Indigenous Peoples’. It was estimated that a number of households (HHs) were economically displaced by the Project, which were compensated by the Client during the land acquisition and compensation process. Besides, an additional number of HHs from nearby hamlets accessed the Project site and adjacent areas for grazing livestock and fuelwood collection. The study strived to assess, considering IFC’s Sustainability framework, the ecosystem services provided by the area containing and surrounding the project site by: determining the impact of the loss of ecosystem services on local HHs living adjacent to the land acquired for the project; and subsequently identifying sustainable alternative livelihood services to replace the lost services.

The following tasks were undertaken:

  • Reviewed the Project’s Environmental and Social Impact Assessment for relevant background information on the Project scope and impacts on its area of influence;

  • Developed a representative sample of Jrai and Kinh households. Using this representative sample, survey household patterns of use/dependence on livestock grazing, fuel-wood collection and other services at the Project site and other common, resource areas surrounding the project site.

  • Undertook a rapid ecosystem services assessment within the Project site based on the social impact