Sustainability

Capital Project Management

Sustainability

Capital Project Management

Sustainable Development Goals
   





Project Management

PTT places equal emphasis on project management and the management of environmental and social impacts stemming from project activities, whether direct or indirect. This entails conducting assessments of environmental impacts and engaging in public feedback processes in alignment with pertinent laws and regulations. These procedures play a vital role in promoting awareness, comprehension, and enabling stakeholders to voice their opinions, suggestions, or concerns regarding project implementation. Moreover, there is stringent oversight to ensure adherence to prevention, correction, monitoring, and evaluation measures for environmental impacts, occupational health, and safety requirements across the entire project lifecycle, from pre-construction to post-construction phases (execution period).

Environmental Impact Assessment

PTT has conducted studies and prepared Environmental Impact Assessment (EIA) reports for all projects falling under the categories of projects, businesses, or operations requiring such reports, in accordance with the announcement of the Ministry of Natural Resources and Environment pursuant to Section 48 of the Environmental Promotion and Preservation Act (No. 2), B.E. 2561 (A.D. 2018).

To date, large-scale projects under the natural gas pipeline system plan, under the supervision of PTT, have undergone EIA studies and report preparation and have received approval from the National Environment Board (NEB), Specialist Committee Member In Considering Of Environmental Impact Assessment Report, Office of Natural Resources and Environmental Policy and Planning (ONEP), along with relevant licensing authorities. These include the 5th onshore natural gas pipeline project and the onshore natural gas pipeline project from Bang Pakong to the South Bangkok Power Plant, which are currently under construction. Therefore, project management in accordance with the master plan is currently in the construction phase, requiring supervision and monitoring to ensure compliance with the conditions specified in the approved EIA reports, including rigorous environmental measures. Regular reporting of compliance with the conditions specified in the approved EIA reports to the DEPP, relevant state agencies, or licensing authorities is conducted every 6 months, along with oversight and control to ensure compliance with occupational health and safety requirements.

Community Displacement

PTT endeavors to steer clear of projects leading to the permanent displacement of communities by meticulously designing construction sites and routes that mitigate adverse effects on land and property usage, with the primary goal of securing widespread community approval. In the course of project planning, PTT rigorously conducts environmental impact assessments and actively engages the public, etc. In instances where necessity or viable alternatives are limited, PTT transparently provides information, fosters dialogue through consultations, and empathetically listens to the concerns of affected parties to foster acceptance and extend compensation for any damages incurred due to structure demolition or disruption of livelihoods, and development of resettlement action Plans for physical displacement (if any). If construction activities result in any form of damage or impact, as part of our physical and economic displacement grievance mechanisms, PTT takes charge of repairs and diligently endeavors to restore the affected areas to their original state as closely as possible.

Public ParticipationGRI413-1

PTT has established a systematic approach to gather public and stakeholder feedback across various projects, aligning with the guidelines outlined by the Office of Natural Resources and Environmental Policy and Planning (ONEP) on the Guidance of Public Participation in EIA process, B.E. 2566 (A.D. 2023). The primary goal is to disseminate comprehensive project information and updates, fostering a clear understanding of project execution. This initiative ensures stakeholders are well-informed about project objectives, operational strategies, site selection criteria, potential alternatives, expected benefits, environmental implications, precautionary measures, remedial actions, and ongoing environmental impact evaluations. The emphasis lies in providing inclusive platforms for all stakeholders to voice their opinions, suggestions, or concerns throughout the project lifecycle. This participatory process extends to discussing preventive measures, corrective actions, and continuous monitoring and assessment of environmental impacts, with a keen focus on identifying and implementing strategies to mitigate environmental repercussions while securing community buy-in.

PTT implements an inclusive process engaging the public and stakeholders as follows:

  • Establishing feedback mechanisms to gather input on project execution, covering operational risks, cultural heritage preservation, environmental and social impacts, and mitigation measures.
  • Conducting a comprehensive analysis of community-based data in project areas, collaborating with pertinent government agencies to assess information, identify target groups or stakeholders through stakeholder analysis, and determining suitable methods and approaches for involving stakeholders in project implementation.
  • Organizing site visits to prepare for feedback sessions, ensuring community preparedness by disseminating project details and feedback guidelines to the public. Communication is emphasized through easily understandable formats like brochures and signage, providing ample information for feedback.
  • For projects requiring Environmental Impact Assessment (EIA) reports, a structured process for gathering public feedback on project execution is conducted at least twice: the first session focuses on gathering input on project specifics, study scope, and project location or alternative options. The second session gathers feedback on the draft report and measures for environmental impact prevention, correction, and monitoring. Public announcements are made before each feedback session, detailing the process, duration, location, and relevant information to ensure public comprehension and participation. Subsequently, feedback outcomes are summarized, and results are communicated to the public after both sessions.

Remark:

Large projects pertain to investment endeavors of state enterprises with budgets submitted to the Cabinet for review and approval, totaling one billion baht or more. This classification is based on the criteria outlined in the 2014 announcement of the State Enterprise Policy Committee regarding the definition of large projects for state enterprises.

Community Engagement and Development Standards

Community engagement and development are central to PTT's mission, exemplified by initiatives like the Bang Pakong to South Bangkok Power Plant natural gas pipeline project. PTT supports a range of projects to meet the diverse needs of stakeholders, spanning environmental, economic and occupation,  health and sports,  cultural and tradition, educational, and quality of life domains. These endeavors stem from thorough community needs assessments. In 2022, PTT awarded educational scholarships to students attending schools within project areas, benefiting 20 schools. These scholarships target academically promising students facing financial constraints. Additionally, health and sports programs were implemented, including the construction of sports facilities and the distribution of health masks and hand sanitizers to communities affected by the COVID-19 pandemic. Moreover, initiatives to upgrade school toilet facilities and establish infectious waste management facilities at local health promotion hospitals were undertaken to enhance community well-being. Additionally, disaster relief efforts include providing affected communities with aid packages. These packages contain food, essential goods, and water to mitigate their hardships and facilitate recovery.

To ensure consistency and effectiveness in community engagement, PTT has created a Community Development and Community Relations Guidebook (CD-CR). Led by the Corporate Social Responsibility (CSR) department, this framework standardizes engagement processes across all business units and facilitates data collection through community interaction and inter-departmental collaboration.

Utilizing stakeholder mapping techniques, PTT evaluates community significance and identifies key stakeholder groups. This enables prioritization based on needs and business impact, facilitating the establishment of baseline community data. Such an approach ensures the strategic sequencing of activities and enables tailored responses to stakeholder requirements.

Community Relations

When executing project operations, priority is given to engaging stakeholders within the vicinity. Continuous efforts are made to disseminate project information through diverse communication channels, including brochures, local media, and face-to-face meetings, aiming to foster continuous awareness and understanding. Robust and ongoing community engagement initiatives cultivate favorable perceptions of project activities among stakeholders, enabling them to participate more actively and openly. Feedback mechanisms are instituted to collect suggestions for enhancing operations, shaping work plans in alignment with stakeholders' requirements, and endorsing involvement in various local activities. This sustainable approach guarantees that projects can harmoniously coexist with communities, ensuring effective collaboration and mutual benefit.

Community Grievance Mechanism

The number of complaints from local communities:
- Percentage of complaints identified and resolved: 31.5%
- Percentage of complaints resolved through remediation: 100%

PTT has established robust communication channels to solicit feedback and address complaints from stakeholders, ensuring systematic and efficient responses at every stage of project lifecycle, including the feasibility study, construction, and operational phases. For large-scale projects, a tripartite committee is convened, comprising representatives from PTT Public Company Limited, stakeholders, and government agencies. This committee provides progress reports on the project and deliberates on various complaints and concerns within the community, with the objective of mitigating grievances and fostering effective communication. Additionally, mechanisms are set up to directly receive complaints from individuals affected by the project through hotline 1365, which collaborates with relevant agencies to resolve issues.

Examples of complaint channels include:

During the Construction Phase:

- Establishment of dedicated channels to receive inquiries or report impacts arising from construction activities throughout the project's duration.
- Deployment of community relations officers and project personnel in the project area.
- Notification or communication through community leaders to facilitate discussions in environmental impact assessment monitoring committee meetings.
- Coordination or notification through relevant state or local government agencies, such as the local Justice Center.
- Reporting complaints to the project's field office.
- Direct submission of written complaints to PTT Public Company Limited.
- Lodging complaints via PTT Public Company Limited's Call Center at 1365, by pressing 24.
- Submission of complaints through PTT Public Company Limited's website.

During the Operational Phase:

- Continued deployment of community relations officers and project personnel in the project area.
- Accessing the emergency hotline of the natural gas pipeline system at 1540.

Key Performance

Performance Monitoring

PTT has implemented measures to prevent, mitigate, and monitor environmental impact as outlined in the EIA (Environmental Impact Assessment) reports. These measures cover stakeholder management across all project phases, including pre-construction, construction, and post-construction stages (execution period), to compile compliance reports for submission to relevant government agencies or licensing authorities every six months.

During project execution, PTT provides guidance and closely supervises the activities of contracted companies on a weekly basis. This involves monitoring progress, addressing challenges, and managing various complaints and concerns. Regular field inspections are conducted to oversee project advancement at construction sites, and continuous deployment of community relations officers ensures the receipt of suggestions or complaints from the area.

Performance Measurement

PTT has introduced a community engagement index as a performance gauge for all major projects, reflecting the effectiveness of stakeholder engagement strategies developed by the organization. This index comprises various performance metrics tailored to each project's specific factors. Additionally, an annual survey of stakeholder opinions is conducted, where feedback, suggestions, and expectations inform the development of strategic action plans or relationship-building initiatives for ongoing project benefits. Examples include enhancements in operational procedures following feedback from surveys, highlighting the establishment of forums for engaging with all stakeholders affected by the natural gas pipeline project. Such initiatives encompass participation in CSR activities within the project vicinity and a commitment to community and societal welfare, all while ensuring the project's progress continues seamlessly.

Regarding community relations, PTT has established a community satisfaction index as a performance assessment tool. This index evaluates community development and economic progress, community safety and environmental initiatives, community engagement efforts, and organizational communication activities.

Environmental, Social, and Health Impact Management

PTT has defined indicators for managing environmental, social, and health impacts to align with the status of the 5th onshore natural gas pipeline project, with management outcomes having been documented since 2017, and the onshore natural gas pipeline project from Bang Pakong to the South Bangkok Power Plant, with management outcomes having been documented since 2022, as shown in the table below.

Project Management Outcomes

5th Onshore Natural Gas Pipeline Project

Onshore Natural Gas Pipeline Project from Bang Pakong to the South Bangkok Power Plant

Controlling, Monitoring, and Ensuring Compliance with Environmental Measures (%)

100

100

Lost Time Accident: LTA

1

0

Total Recordable Injuries Rate: TRIR

0.01

0.00

The mentioned project has undertaken an Environmental Impact Assessment (EIA) study and finalized the report. Currently, it is subject to ongoing monitoring to ensure adherence to preventive and remedial measures, as well as follow-up assessments of environmental impacts. Furthermore, rigorous and thorough supervision and oversight of contracted labor guarantee strict compliance with occupational health and safety standards. Those interested can access both the EIA report and PTT's compliance report regarding EIA measures on the website of the Office of Natural Resources and Environmental Policy and Planning (ONEP)  https://eia.onep.go.th/ 

Information Acknowledgment and Project AcceptanceGRI413-1, GRI413-2

PTT is committed to fulfilling project operations as outlined in the designated plans, fostering positive perceptions from governmental bodies, private sector partners, stakeholders, and the general public regarding project implementation. If any complaints arise concerning construction activities, prompt action will be taken within a 24-hour timeframe. Close coordination will ensue with pertinent authorities to ascertain facts, while the community relations team will engage with complainants to mitigate concerns, avert potential crises, ensure control, and expedite resolution.

Projects under Development
Community Impact Management Projects in 2023
Total number of projects 15
Number of projects that received community consultation 15
Percentage of projects that received community consultation 100

Current Operation Sites
Community Impact Management Number of Operation Sites in 2023
Number of operation site 13 provinces
Number of operation site that received community consultation 13 provinces
Percentage of operation site that received community consultation compare to the total number of operation sites 100


Information Acknowledgment and Project Acceptance

2020202120222023
Information Acknowledgement 92.9 75.0 72.0 78.0
Project Acceptance  70.3 80.0 77.0 77.9

Presently, in 2023, PTT has embarked on significant endeavors involving natural gas pipelines, encompassing three pivotal projects: the 5th onshore natural gas pipeline project, the onshore natural gas pipeline project from Bang Pakong to the South Bangkok Power Plant, and the establishment of Gas Separation Plant Unit 7 (GSP 7), with details as follows:

Project Description

The 5th Onshore Natural Gas Pipeline

Onshore Natural Gas Pipeline from Bang Pakong to South Bangkok Power Plant

Natural Gas Separation Plant Project Unit 7

Pipeline Length (kilometers)/ Project Area (rai)

Remarks: One rai is equivalent to 1,600 square meters or 0.4 acres
415 kilometers 57  kilometers 124.81 rai
Coverage There are 104 subdistricts spanning 29 districts across 8 provinces (Rayong, Chonburi, Chachoengsao, Prachin Buri, Bangkok, Pathum Thani, Phra Nakhon Si Ayutthaya, and Nonthaburi)
24 subdistricts, 6 districts in 2 provinces
(Chachoengsao and Samut Prakan)
Situated within the PTT premises at the Map Ta Phut Industrial Estate, in Mueang Rayong District, Rayong Province.
Scheduled Completion 2nd quarter of 2024 2025 4th quarter of 2024
Currently in Operations In the construction phase In the construction phase In the construction phase
Engagement Assessment Score
(Target: 3.5)
3.97 3.71 -

Remark: The number of operational areas engaged in community consultations refers to the number of areas assessed for the level of community engagement commitment.

Project Management OutcomesGRI413-1
Plan

Performance 2022 (%)

Target 2022 (%)Performance 2023 (%)Target 2023 (%)
Controlling, Monitoring, and Ensuring Compliance with Environmental Measures 100 100 100 100
Providing information and project assurance. Project
acknowledgement
71.8 70 78.0 70
Project acceptance 76.8 60 77.9 60
Building engagement with all stakeholders in every project 74.2 60 78.4 60
The number of complaints from communities and displacement 0 0 0 0

Remark:

Environmental Impact Assessment (EIA) reports are evaluated by the Office of Natural Resources and Environmental Policy and Planning (ONEP).

Examples of Key Projects or ActivitiesSDGs 9.1

The 5th onshore natural gas pipeline projects and the onshore natural gas pipeline project from Bang Pakong to the South Bangkok Power Plant have dual objectives. Firstly, they seek to bolster the capacity of the onshore natural gas pipeline network to meet the escalating demand for natural gas from power plants in the capital region as outlined in the Thailand Power Development Plan for 2018-2037 (Revision 1). Secondly, they aim to enhance the reliability of natural gas supply to the South Bangkok Power Plant, the Northern Bangkok Power Plant, and industrial sectors. Moreover, the Gas Separation Plant Unit 7 project is designed to supplant Gas Separation Plant Unit 1, operational since 1985. This replacement is aimed at fulfilling the varied demands for natural gas across sectors, thereby aligning with Sustainable Development Goals (SDGs), particularly Goal 9: Industry, Innovation, and Infrastructure.

These endeavors have undergone rigorous environmental impact assessments and engaged with pertinent stakeholders to provide a platform for expressing opinions, suggestions, and concerns. PTT actively integrates received feedback to fine-tune preventive, remedial measures, and environmental impact follow-up procedures. Additionally, robust supervision and oversight of contracted labor ensure strict adherence to occupational health and safety regulations. As evidenced by the project management outcomes, these concerted efforts are geared towards minimizing environmental footprints, community and societal impacts, while delivering benefits to all stakeholders. Ultimately, the aim is to ensure the sustainable operation of these projects.