OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT

IN A HYDROELECTRIC COMPANY

CASE STUDY: NAMTHEUN 2 POWER COMPANYLIMITED (NTPC)

GNOMMALATH, KHAMMOUANE PROVINCE, LAOS

A Thesis Presented to the Faculty

Of

IICSE University

Wilmington, DE 19899, U.S.A.

In partial Fulfillment of the Requirements for the Degree

of Bachelor of Sciences in Fire Protection and Safety Engineering

By:

Thanousinh Siphavane

January 2018
 CERTIFICATION OF APPROVAL

Thesis Title

OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT

IN A HYDROELECTRIC COMPANY CASE STUDY NAMTHEUN 2

POWER COMPANYLIMITED (NTPC), GNOMMALATH,

KHAMMOUANE PROVINCE, LAOS

by:

Prof. Babar Gboto, Jnr.Head, Registry Office

IICSE University, Inc.

Peter Coleman, Ph.D. IICSE Admissions Office

Table of Contents

Acknowledgement ...................................................................................................... 5

ABSTRACT ................................................................................................................ 6

Chapter ...................................................................................................................... 8

I. Introduction to the Study ........................................................................................ 8

Background ............................................................................................................. 8

Statement of the problem .........................................Error! Bookmark not defined.

Purpose of the study ............................................................................................. 11

Chapter .................................................................................................................... 11

II. Review of the Literature ....................................................................................... 12

Historical Considerations ...................................................................................... 12

Current Paradigms ................................................................................................ 16

Relation to Other Studies ...................................................................................... 16

Theoretical Foundations .................................................................................... 17

Expert Opinions ................................................................................................. 19

Chapter .................................................................................................................... 21

III. Methodology ........................................................................................................ 21

Definition of Terms ................................................................................................ 21

Populations and/or Sample ................................................................................... 22

 Treatment.............................................................................................................. 23

Data Analysis Procedures ..................................................................................... 24

Chapter .................................................................................................................... 26

IV. Results ................................................................................................................ 26

Chapter .................................................................................................................... 26

V. Discussion and Recommendation........................................................................ 26

Discussion............................................................................................................. 26

Recommendations ................................................................................................ 26

Appendices .............................................................................................................. 27

A. Questionnaire ................................................................................................. 27

B. Comments of Respondents ............................................................................. 28

Acknowledgement

This thesis successfully restructured completely by courtesy of the well Peter

Coleman, Ph.D. He was the white thesis advisor and dissertation committee

provided the consulting advice, check out bugs, and fixes the thesis. This was

corrected in a more complete researcher in a way that the researchers appreciated

the assistance received. The researcher wanted to use this opportunity to thank the

institute who educate both sides; the academic experts from all their preaching to the

bachelor and the truly proud faculty who exhorted effort that will not only gain

knowledge but also taught a man to be good in his society. The researcher also

wanted to thank you his parents who gave him inspiration to mind every day during

the study. The value and benefits of researching any of this thesis, the researcher

offered alternative kindness to parents, teachers and all those who taught the

researcher all along in the spirit of as a teacher and benefactor to all.

 ABSTRACT

Title of Thesis Occupational Health, Safety and Environment Management in a

hydroelectric company case study Nam The un 2 power
company Limited (NTPC), Gnommalath, Khammouane
province, Laos

Author Mr. Thanousinh Shiphavanh

Degree Bachelor of Sciences in Fire Protection and Safety Engineering

Year 2018

___________________________________________________________________

There are three objectives in this study; it composed of the following:

1) To study safety, health, and environment (SHE) management of a

hydropower company named Nam Theun 2 Power Company

Gnommalath, Khammouane province, Laos.

2) To investigate the environmental impacts in a community nearby the

hydropower plant and its facilities, and

3) To study the employee’s work practices.

A qualitative research was used by the researcher; a face to face interview,

field observation with a checklist and small group discussion was used. This study
found that the employer had paid more attention on health, safety and environment

issues than anything else because this company is committed to pursuit the

International standards namely ISO 14001 and OSHAS 18001. The company

management had defined a policy relates to quality, heath, safety and environment

which was implemented by all staff, visitors, contractors and suppliers. Employees

use personal protective devices according to company regulation with low

understanding on SHE. People living nearby the company have some knowledge

and awareness on the environmental impacts to their health and safety.

 Chapter

I. Introduction to the Study

Background

Laos is one of the poorest countries in Asia, although growth and prosperity is

now increasing in partly hydropower projects. In the 1970-80s the Lao government

identified earnings from electricity export as means of reducing poverty, lowering

national debt, and achieving regional economic integration and energy security.

To harness the potential of the natural resource at minimum environmental

and financial cost, Nam Theun 2 had created a shallow reservoir retained by the 39-

m high Nakai Dam. Generation takes place at the Power Station, 350m below the

plateau, through four Francis turbines and two Pelton turbines.

The Nam Theun 2 Hydroelectric Plant began producing electricity

commercially in 2010 after almost two decades of planning and constructing

activities. However, the idea of using water from the Nam Theun River to generate

power goes back much further – at least to the 1920s.

A large proportion of the construction investment in Nam Theun 2 has been

devoted to environmental features. The Nakai Dam was equipped with a multi-level

riparian release valve to ensure healthy water flows down the Nam Theun River all

year round.
 The water used by the station turbines enters a Regulating Pond that enables

steady flows to be released in the Xe Bang FaiRiver through a Regulating Dam and

via a 27-Km long Downstream Channel that optimizes water quality and offers

irrigation potential on the Gnommalath plain. The downstream Channel features a

crossing and a siphon that carry the water over and under natural rivers to avoid

altering their ecology. Feather downstream, a unique Aeration Weir increase the

oxygen content of the water before the flow rejoins the local river system.

All water bodies in the project area are constantly monitored by the Nam

Theun 2 (NT2) Aquatic Environment Laboratory team to ensure water quality

remains within international guidelines, for the good of local population and

ecosystems. Nam Theun 2 is recognized as a vehicle foe national growth and

development in Laos. A comprehensive suite of social and environmental programs

is implemented to improve the lives of the people in the project area and increase

protection of the natural resources.

After several years of the construction, 6,300 people on the Nakai Plateau

moved into custom-built villages located and designed according to their wishes. In

addition to lager houses, made from quality local wood, families received for the first

time access to roads, clean water, healthcare, electricity, national-standard

education and various other community facilities. Nam Theun 2 Power Company

(NTPC) was dedicated to increasing income on Nakai, working with local authorities

to offer a variety of livelihood options backed up by technical support and legal

guarantees. Agriculture and livestock, fisheries, community forestry, and small

business development are so far providing mush better average incomes then were

available prior to the project.

From an engineer perspective, the Nakai Plateau offer ideal condition for a

hydro facility. The Nam Theun River was fed by several tributaries that spring from a

reliable watershed. The river runs between two areas of higher ground that from a

basin around the shallow valley. Most importantly, the plateau stands about 350 m

directly above the Gnom malath plain. The height difference provides a long natural

drop for the water and this “head”, as it was called, gives great potential for power.

From social and environmental point of view, the area never been densely

populated, and before Nam Theun 2, Nakai was regarded as one of the poorest

districts in the country. Local residents had little access to health and education

services, and their ability to seek employment or trade was low. Most were very

eager to embrace economic development and supported the idea of the project form

its early days. This part of Laos is rich in terms of natural biodiversity, but was

increasingly becoming degraded due to pressure from logging, poaching and slash-

and-burn farming. Nam Theu 2 presented an opportunity to attached economic value

to remaining primary forest, so providing funds for its protection and securing its

further.

In addition to the environmental engineering downstream of the Power

Station, comprehensive compensation and livelihood programs have been put into

action with local communities and authorities. Land-for-land and cash compensation

agreements were made where land was acquired, for example along the

Downstream Channel.
 Livelihood restoration programs are in place to provide credit, materials and

technical expertise to families that experienced impacts affecting more than 10% of

their incomes, and are available to all potentially affected villagers in the

Downstream Xe Bang Fai area. Other activities include Unexploded Ordnances

(UXO) clearance, relocation and protection of cultural resources, irrigation pump

renovation, water supply and sanitation improvements and careful monitoring of the

health of the people and the rivers in downstream areas.

From its inception, Nam Theun 2 has been scrutinized as a project that could

offer many lessons for infrastructure construction and economic development on a

global scale. The Lao government, the internal financial institutions, and several

other independent agencies have been visiting reporting on the project for several

years, adding value and giving advice. NTPC continues to work with its partners and

visitors as it strives to meet its commitments to stakeholders, especially local people.

Purpose of the study

The three objectives of the study; it composed of the following:

1) To study safety, health, and environment (SHE) management of a

hydropower company named Nam Theun 2 Power Company

Gnommalath, Khammouane province, Laos.

2) To investigate the environmental impacts in a community nearby the

hydropower plant and its facilities, and

3) To study the employee’s work practices.

 Chapter

II. Review of the Literature

The overall goals of this chapter were firstly to establish the significance of

the general field of study, and then identify a place where a new contribution could

be made. The bulk of the chapter was on critically evaluating the different

methodologies used in this field so as to identify the appropriate approach for

investigating the research question(s).

Historical Considerations

The potential of the Nam Theun River on the Nakai Plateau for hydroelectric

power was identified as early as 1927, but it was not used until the mid-1970s that

detailed studies of the feasibility of a project began. In the late 1980s the Lao

government targeted Nam Theun 2 as a key vehicle for the economic and social

development of the nation, and invited the World Bank to participate in the Project.

The government and various private investors set up a company and named "Nam

Theun 2 Electricity Consortium (NTEC)" to research and develop the scheme. In

1994 Electricité de France and the Italian-Thai Development Company of Thailand

joined the Project, and Nam Theun 2 moved from a conceptual to a development

phase. The design and preparation of a complete set of economic, environmental

and social safeguards took more than ten years, during which time NTEC became

the Nam Theun 2 Power Company Limited, or NTPC. Project financing was

gradually put in place and full construction activities commenced in June 2005
 NTPC is the company formed by the Lao Government and the private

shareholders in the Nam Theun 2 Hydroelectric Project to build and operate the

Project for the first 25 years of its operation. NTPC is dedicated to running a world

class hydropower facility and to improving the living conditions of people in the areas

around the Project.

We work closely with local people, all levels of the Lao government, our Thai

and French shareholder companies, international financial and development

institutions and many other partners in all aspects of this huge Project.

The company endeavors to make information on the Project available to the

public and welcomes enquiries.

NTPC has the purpose of HSE specification is set to ensure that the

contractors / suppliers shall comply with NTPC’s HSE Management System and the

associated regulatory requirements; including in the Quality, Health, and Safety&

Environment Policy:

The Namtheun2 Theun 2 Power Company (NTPC) is committed to the

continual improvement of its quality, health, safety, greatest benefit for all our

stakeholders. NTPC is devoted to a high level of quality in its generation of electricity

and the processes supporting this objective. NTPC is committed to preventing

personal injury and ill-health of its employees, suppliers, contractors, customers, and
communities (“Stakeholders”). NTPC is also committed to achieving the highest

standard of environmental stewardship and protection of for current and future

generations. We will generate and deliver electricity in a manner that is safe for our

Stakeholders, and responsibly balances environmental and social factors and

business needs.

In support of this policy, NTPC makes the following commitments:

Focus and Commitment to Quality

NTPC is committed to fulfilling all legal and contractual obligations. We focus

on satisfying the needs of our customers through constant improvement of our

quality management system within the requirements of ISO9001:2008. NTPC will

ensure the relevance of its quality objectives to this policy through annual review and

revision.

Environmental Stewardship

We will foster a culture of environmental stewardship, promoting awareness

and consideration of the environment by all employees and sub-contractors in

everything they do. We will, to the fullest extent practicable, design and conduct

activities to reduce and manage adverse environmental impacts and risks to natural
resources and human health, and will pursue opportunities to improve the

environment.

Health and Safety Culture

We will foster the development of a positive health and safety culture within

NTPC which cultivates and promotes a working climate where safety and hydro

safety are valued by every employee through

• Senior management providing strong safety leadershipand demonstrating

commitment to the health and safety of all Stakeholders;

•Encouraging employees to display shared concern for hazards and

attentiveness for their impacts on people;

• Providing a working environment with realistic and flexible norms and rules

about hazards;

• Placing responsibility for safety in the hands of each and every employee;

and

• Continually reflecting upon current practice through monitoring, analysis and

feedback systems.

Communication
 The communication of the NTPC’s QHSE Policy will be undertaken to ensure

that all its staff and contractors understand and are committed to the QHSE

objectives.

We will share our Quality, Health, Safety and Environment Policy with the

public.

The implementation of our QHSE Policy is the responsibility of all NTPC staff

and contractors.

Current Paradigms

According to the MLSW-2159 Nomination on Occupational Safety and Health

Committee 21 May 2015-C06 -10

For environmental protection part:

http://faolex.fao.org/docs/pdf/lao18236.pdf

http://www.namtheun2.com/index.php/environment-main/scientific

For occupational health and safety:

http://www.ilo.org/dyn/natlex/natlex4.detail?p_lang=en&p_isn=96369

https://www.ilo.org/dyn/natlex/docs/WEBTEXT/37325/64924/E94LAO01.htm

Relation to Other Studies

Theoretical Foundations

International standards are systems of management that are tried and tested

over many locations, various circumstances, wide range of industries developing

standard approaches helps to develop consistently good results, developing

standard approaches helps to ensure predictable outcomes from standard

procedures, improvements are measurable and weaknesses are identified and

corrected.

The Environmental Assessment and Management Plan (EAMP), prepared by

NTPC on the basis of a series of highly detailed supporting studies in the field of

geology and hydrology. The EAMP concludes on the various biophysical effects of

the Project.

The Social Development Plan (SDP), prepared by NTPC, and cumulating the

original Resettlement Action Plan (RAP) and the Ethnic Minorities Development Plan

for the Project Area (EMDP) prepared by Acres International and Norplan

respectively. The SDP considers all biophysical effects that are described in the

EAMP, anticipates how these effects will impact people livelihoods, and provides a

detailed compensation plan.

The Social and Environmental Management Framework and Operational Plan

(SEMFOP), prepared by independent experts for the Government of the Lao PDR.

The SEMFOP contains information from the preliminary biodiversity area

management plan prepared by the New York based NGO Wildlife Conservation

Society (WCS), as well as from the Environmental and Social Management Plan

(ESMP) - the original study prepared by International Union for the Conservation of

Nature (IUCN) for the watershed and Nakai-Nam Theun NBCA. The SEMFOP is

specifically aimed at drawing a conservation plan for the Project watershed.

NTPC and the Lao government have amended the Concession Agreement, in

particular its sections related to environmental and social obligations of the parties,

pursuant to the with the recommendations of the Safeguards released during the

second semester of 2004.

A high level of public consultations and disclosure has been a priority for the

Government and the Sponsors to ensure that all affected people are fully informed of

the Project and that the views of the affected population on the consequences of the

Project are taken into consideration. Where relevant, the design of the Project has

been amended to reflect any concerns, such as those related to the choice of

location for the resettlement area.

In addition, extensive socio-economic surveys have been performed and are

continuing on the population of both the Nakai Plateau and the downstream

Gnommalath and Xe Bang Fai areas. Overall, more than 200 local, national, and

international consultations and workshops about the Project and Project related

issues have been conducted since 1997.

 Expert Opinions

In 2017, NTPC has been setup the VISION 2025 with consisting with the

Mission, Ambitions and Core Values. The vision is to optimize its performance and

reach the greatest success possible, a team needs to have common goals and

principles of action. This is the purpose of the NTPC’s Vision for 2025.

All NTPC employees share clear view about the NTPC role as a company

(our mission), about where NTPC want to be in 2025 (our Ambition), and the values

of NTPC of each hold dearly in NTPC heart.

The vision guilds NTPC internal decision-making, to gives direction for

employee conduct in overcoming challenges, and inspires initiative in NTPC daily

work practices.

As a team with this Vision for future, NTPC is writing the next pages of the

NTPC’s success!

THE MISSION IS TO GENERATE ELECTRICITY IN A RELIABLE AND

SUSTAINABLE MANNER, CONTRIBUTE TO THE DEVELOPMENT OF LAO PDR

AND BE A REFERENCE FOR THE HYDRO INDUSTRY.

The AMBITIONs

 For staff

 NTPC is a well-known Lao company promoting Lao talents.

 Foster professional development

 One team, helping each other achieve the company’s objectives

through a process of continues improvement

  For clients and shareholders

 Enhance efficiency and reliability of NTPC performance by

implementing international standards

 Optimize the use of all available resources

 Aim to achieve a high level of revenues and clients satisfaction

 For communities and environment

 Responsible and care for the environment

 NTPC make the local community a better place, now, and for

the next generations

 Contribute the growth of the Lao economy by supporting

domestic business

 For company

 To ensure the NTPC operations and assets are safe for staff,

contractors, local communities and the environment

 Define the goals, anticipate the actions needed and manage the

associated risks

 Organization and responsibilities are clearly communicated

The fire core values are contributed and communicate to staff such as:

 Respect

 Integrity

 Cooperation

 Human Potential
  Excellence

Chapter

III. Methodology

Definition of Terms

Research "Occupational Safety, Occupational Health and Safety

management" (SHE) in the NTPC". The concept is as follows.

NTPC has set up the Integrated Management System department to

Integrated Management System

Leveraging increased benefits through a unified approach to implementing 3

standards

NTPC is committed to certification of our Environmental Management System

under ISO14001 and OHSAS18001 in 2013

 This year NTPC commenced upgrading the Construction Phase Quality

Management System to conform to ISO9001 and guide continuous improvement

through the Operating Phase. NTPC has already perform annual self-assessment of

own System of Internal Control which uses the COSO internal control framework (a

legal requirement in France, the US etc.)

Why NTPC follow international standards?

 International standards are systems of management that are tried and tested

over many locations, various circumstances, wide range of industries

 Developing standard approaches helps to develop consistently good

results

 Developing standard approaches helps to ensure predictable outcomes

from standard procedures

 Improvements are measurable and weaknesses are identified and

corrected

Populations and/or Sample

The Integrate Management System Division is the enabling entity inside

NTPC and relies on the inputs, contribution and active engagement of all in the

Company

Why develop an IMS?

 Tighter focus on Company objectives

  Reduce business risk

 Integration of the management system acts as a catalyst for integration

across the company. Instead of "silos", you have a genuinely co-ordinated

system: one that's greater than the sum of its parts, and can achieve more

than ever before.

 An integrated system provides a clear, holistic picture of all aspects of your

organization, how they affect each other, and their associated risks.

Treatment

Quality Health Safety and Environment Policy

The Nam Theun 2 Power Company (NTPC) is committed to the continual

improvement of its quality, health, safety, hydro-safety and environmental

performance to help achieve the greatest benefit for all our stakeholders. NTPC is

devoted to a high level of quality in its generation of electricity and the processes

supporting this objective. NTPC is committed to preventing personal injury and ill-
health of its employees, suppliers, contractors, customers, and communities

(“Stakeholders”). NTPC is also committed to achieving the highest standard of

environmental stewardship and protection of the environment for current and future

generations. We will generate and deliver electricity in a manner that is safe for our

Stakeholders, and responsibly balances environmental and social factors and

business needs.

Data Analysis Procedures

Risk Register Database System (Prototypes)control.

 Chapter IV

Results

The study conducted. "Safety, Occupational Health and Environmental

Management in Workplace (SHE) in Nam theun 2 power company ltd," to study and

manage the SHE of Nam theu2 power company ltd. It was no longer used pollution

that can affect people in the community. It includes the SHE mechanism and

processes of employers. The research group were consisted of employers,

employees in nearby communities, factories, and local authorities.

Chapter V

Discussion and Recommendation

Discussion

Recommendations

To be competence Training and Awareness as follows:

H&S Training:

 H&S Induction

 Basic Fire Fighting

 First Aid
Environment:

 Environmental Induction

 HazMat Management

 Waste Management

IMS

 QHSE Incident Reporting

 Job Hazard Assessment

 SharePoint Navigation

 IMS Training (ISO 9001, ISO 14001 & OHSAS 18001)

Appendices

A. Questionnaire

Where are we now (NTPC)?

 All documentation for Health, Safety & Environmental management systems

is complete

 Risk Mapping of Quality is 80% complete

 Quality Objectives and Targets are under development

 Training of HSE Systems has commenced

  The most advanced section of the IMS is the Environmental Management

System which we consider to be ready for certification in the coming months

B. Comments of Respondents

Immediate priorities

 Train staff in all mandatory HSE training

 Finalize improvements to the Documentation and document management

system

 Increase staff awareness of Health, Safety & Environment Management

Systems and Documentation

 Another round of HSE MS Audits

 Improve QHSE Incident Reporting System

 Develop a IMS Communication strategy to improve staff awareness of IMS

 ISO14001 certification

Stages in Certification

 Identify and contract the Certification Body

 Stage 1 Audit
  Address identified observations

 Maximum 6 months period between Stage 1 and 2

 Stage 2 Certification Audit

 Review of Audit findings

 Issue certificate

 Annual surveillance audit

 Certification renewal each 3 years

Stages 1 Audit

 On-site audit and document review

 Does the documentation in conform to standard requirements;

 Is the management system designed to achieve the Company’s policy

objectives;

 Is the management system able to ensure compliance with statutory,

regulatory and contractual requirements;

Stage 2 Certification Audit

 Confirm that management system conforms to requirements of the audit

standard ;
 Verify that the Company adheres to its own policy objectives and procedures;

 Is the management system able to ensure compliance with statutory,

regulatory and contractual requirements; and

 Confirm that the management system is achieving the Company’s policy

objectives;

 Certify body by SGS Thailand http://www.sgs.co.th/