Building contractors’ knowledge and institutional capacity to translate environmental and social management imperatives into infrastructure that promotes sustainable development was the focus of a three-day training for members of the China International Contractors Association (CHINCA), cohosted by the Multilateral Cooperation Center for Development Finance (MCDF) on 28-30 May in Beijing.
Co-organized with the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and CHINCA, the training focused on enhancing contractors’ practical knowledge to effectively implement multilateral development bank (MDB) environmental and social (E&S) standards required in the delivery of MDB-financed infrastructure projects.
In opening remarks, CHINCA Vice Chairman Xin Xiuming said that its member companies are improving their E&S awareness and capability and moving toward international standards. Learning from MDBs and better understanding how to implement their E&S standards across the project cycle are critical for CHINCA members to participate in the implementation of MDB-financed projects and access MCDF project funding and markets, he added.
In his welcome speech, AIIB Vice President for Investment Solutions, Mr. Ajay Bhushan Pandey, noted that contractors are key to meeting global infrastructure demand. Greater knowledge of MDB E&S standards can help contractors “go global” and pay closer attention to waste management, occupational health and safety, labor, and other challenges that could delay or result in project cancellations, he said.
Mr. Nianshan Zhang, ADB’s Head of Safeguards, explained that contractors must be fully aware of MDB E&S regimes, such as the new E&S framework adopted by ADB in 2024, to incorporate associated costs and design considerations into project bidding and delivery. He said knowledge sharing and collaboration with MDBs and partners can help contractors address this need and mitigate reputational risks.
E&S standards and expectations among financiers, project partners, and communities are evolving, emphasized Mr. Ayumi Konishi, Senior Advisor to MCDF’s CEO. “As contractors, your ability to adapt and effectively manage your operations is a key differentiator,” he said. “This goes beyond compliance. It’s about instilling a culture of E&S accountability across your teams and subcontractors.”
“MCDF’s mission is to promote high-quality connectivity infrastructure investment in developing countries through partnerships,” Mr. Konishi continued. “We believe robust application of environmental and social, or E&S, standards, is essential to achieving the long-term viability and sustainability of infrastructure investments.”
The workshop’s ensuing sessions featured expert panels jointly facilitated by ADB and AIIB. Day one panels examined environmental, health, and safety management from a system’s approach. They included a deep dive into the design and implementation of environmental and social management systems (ESMS), with Power China presenting its internal ESMS as a case study. Systems to identify and manage biodiversity risk and pollution were also discussed.
Day two panelists looked at contract management and labor and working conditions, with attention to occupational health and safety issues. They additionally examined compliance with domestic and international laws on forced and child labor and best practices in establishing and managing worker accommodation and camp sites.
Panelists went on to discuss strategies for effective execution of labor management plans and workers’ grievance mechanisms, as well as hazard and risk identification methodologies to mitigate the potential impacts on worker and community health and safety.
The third and final day of the workshop spotlighted panelist insights that explored systems for identifying and managing sexual exploitation, abuse, and harassment and incident reporting. The panels concluded with discussions on the integration of E&S provisions into the procurement process, bidding documents, and contract management.
NOTE: News release photo above of workshop participants
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david.hendrickson@themcdf.org
