Sustainable development is a key guiding principle at the CSPCL Nanhai petrochemical complex.
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A diver gently removes a sphere of coral from the gravel floor of the South China Sea. He suspends the coral under a special raft and – as the raft chugs through the tropical waters – he knows it is on its way to a new home away from the site of a proposed causeway for the petrochemicals complex in Daya Bay.
Three years later the coral is thriving. Around 95% of the 400 square metres of coral transplanted from the causeway site has survived: a living example of the lengths Shell Nanhai BV and its joint venture partner have taken to embed sustainable development into every step of the construction of the complex.
Sustainable development has been at the heart of the project from its inception. Before the final investment decision, a comprehensive Environmental and Social Impact Assessment – based on consultation with communities, governments and NGOs – was carried out to Chinese and international standards.
The assessment was used to develop an Environmental and Social Management Plan (ESMP) to guide the design, construction and operation of the complex. To check that it is implemented correctly, company and independent officers monitor 40 environmental and 60 social and health indicators.
Environmentally, the cutting-edge technologies and stringent standards applied to the project are expected to make the complex one of the most environmentally sound in China. The styrene monomer/propylene oxide (SMPO) facility uses Shell processes and catalysts that are much more environmentally friendly than the chlorohydrin processes currently used in China. Almost 90% of liquid and solid waste is recycled or re-used for power generation and the complex uses up to 25% less water than other Chinese plants.
Social factors
Moving people was a far greater challenge than shifting coral. Using a sensitive, responsible approach 2,500 households from two villages were re-located to two sites. The Huizhou municipal government, which was responsible for resettling the 8,000 people to Chinese standards, worked with CSPCL and resettlement experts to develop a plan that also met the joint venture company's requirements under World Bank international lender and shareholder standards. The plan provided for compensation, livelihood restoration programmes and new housing and services. It also included a detailed baseline socio-economic survey, post resettlement monitoring and public reporting, none of which are required in China.
Already the joint venture has employed 800 resettled villagers and will create around 1,500 permanent jobs, 95% for Chinese workers. CSPCL uses local suppliers wherever possible and has set up a procurement website to register local businesses interested in becoming suppliers. It provides educational opportunities and community amenities such as parks, school equipment and a bicycle lane.
