Sustainability

Capital Project Management

Sustainability

Capital Project Management

PTT values the importance of social, environmental and health impact management in all projects. This ensures that operations throughout the project's lifecycle, before-, during-, and after- operations are under controls to avoid causing negative impacts on society and the environment. This allows co-existence on a sustainable footing with communities. By conducting impact assessments, defining prevention, mitigation, and monitoring measures to oversee contractors and employees' practices, PTT can ensure that projects are strictly in line with established procedures and measures.


Environmental, Social and Health Impact Assessment 

PTT conducts public environmental, social and health impact analysis for all projects meeting criteria of projects, business, or operations needing Environmental Impact Assessment (EIA) per legal requirement. PTT ensures practice to be according to criteria, practice, regulations, and management approach for EIA report preparation per Ministry of Natural Resource and Environment, as well as relevant laws. Furthermore, for projects which are extensions, or with amendment to project details, PTT conducts reviews of environmental impact assessment. The impact study and assessment efforts are done in collaboration with academic institute or agencies registered with Natural Resources and Environmental Policy and Planning (ONEP). Data survey encompasses social, environmental and health issues. There are regular engagement with different stakeholder groups. Information collected is used to assess potential impacts, and develop them as preventative measures, solutions, or impact monitoring efforts. Reports are then developed and presented to ONEP. There will be performance monitoring on said measures by external party, the monitoring efforts will be presented as a report to ONEP and relevant functions every 6 months, throughout the entire project life cycle.


Public Consultation

PTT conducts public consultation for all projects to disseminate and disclose information about the project's EIA report preparation to relevant stakeholders. Communication covers issues including project overview and information, potential impacts, as well as mitigation and monitoring measures for environmental, social, and health impacts. All stakeholders are encouraged to engage by providing their opinions and recommendations with regard to project development, in order to generate useful information for preparing the mitigation and monitoring measures for the social, environmental and health impact assessment.

PTT requires that all of its capital projects conduct public consultation. This is in alignment with announcement from Office of Natural Resources and Environmental Policy and Planning (ONEP) on public engagement in preparation of Environmental Impact Assessment Report. It also aligns with the Office of Prime Minister’s practice on public consultation deployed as operational approach. This provides opportunities for all groups of stakeholders to share their opinions. PTT takes into consideration the comments and concerns of stakeholders to formulate preventive and mitigation measures to address concerns relating to negative impacts and conflicts from project operation. In addition, PTT measures community understanding and attitude toward project operations via questionnaire surveys. The findings are part of consideration for future project planning.


PTT identifies participation procedures for public consultation as follows:

  • Disseminate and present the project's preliminary information prior to public consultation
  • Organize a public hearing with stakeholders such as communities in the project area, relevant local government agencies, and private sector organizations; focusing on issues of concerns
  • Actively acknowledge feedback from citizens and functions relevant to stakeholders; the feedback is on project details, scope of studies and alternative assessment
  • Explain report results, preventive measures, and solutions to address environmental impacts; to acknowledge and collect stakeholders’ feedback and issues of concerns on them. The input is used to improve or develop as measures to further minimize project impacts, thus reducing potential conflicts which may occur and affect locals’ well-being and livelihood.
  • Resolve or restore construction sites to original condition, or improved condition compares to original, once the construction concluded. Actively follow up on any complaints resulting from the construction.
Remarks: Capital project refers to state enterprise-invested projects whose budget, as presented to and approved by the Cabinet, is one thousand million Baht or above (with reference to announcement from State Enterprise Policy Committee, on Criteria of State Enterprise’s Capital Projects 2014)

Community Resettlement

PTT avoids operating projects that require permanent community resettlement. Locations and routes for construction are designed to avoid or minimize disturbance to land use and property to the minimum level in order to gain acceptance from communities through different engagement processes, including the EIA study and public consultation. In case no alternatives are available, PTT provides information to and builds the understanding of the affected people in order to gain their acceptance. Monetary compensation is available for the dismantling of homes and areas of sustenance. If the construction causes any damages or impacts, PTT takes responsibility in fixing and restoring the areas as close as possible to the original condition. 


Performance Monitoring

PTT defines appropriate monitoring processes to ensure that preventive mitigation and monitoring measures for social, environmental and health impacts are present in all projects. This is as stipulated in the EIA report. Such project comprises capital natural gas transmission pipeline projects, which include public consultation for employees at least once during the construction period. During operations, there should be surveys of public opinions at least once in the first year of operations, and every five years afterwards. Furthermore, PTT communicates performance to relevant organizations and stakeholders through channels, such as focus group meetings, individual meetings, public hearings in villages, and information disclosure via government agencies' websites such as those of the Centre of Public Service and the Office of Natural Resources and Environmental Policy and Planning (ONEP). PTT makes the efforts to communicate regularly throughout the project lifespan. 


Community Relations

Stakeholder engagement is a process which provides PTT with information that facilitates understanding of opinions, needs and concerns with regard to impacts on or modification to the project area as a result of project development. Stakeholder engagement demonstrates PTT’s respect of community rights, as PTT fosters relationships with them, as well as engaging with the communities in all kinds of activities. PTT collects each community's primary information, suggestions and concerns. This input is part of considerations made for preparation of appropriate mitigation measures for environmental, social and health impacts. PTT would then communicate the summary to stakeholders.


Community Engagement and Development Standards 

PTT established the relationship operational guideline that outlines the Community Development and Community Relations Guidebook (CD-CR) for planning and implementing community engagement to ensure that community relations management with stakeholders follows aligned procedure and standard for all departments in all business units during the project development period. The Corporate Social Responsibility (CSR) Department is responsible for implementing and collecting information from stakeholder engagement activities and for maintaining communication between functions.

PTT analyzes important issues of each community by adopting stakeholder mapping to identify target groups and stakeholders. Consequently, stakeholder prioritization is analyzed according to their needs and influence on PTT business operations in order to form a community database. This enables PTT to respond appropriately to each stakeholder group.


Performance Measurement 

PTT defines the Community Engagement Score (CES) as an indicator for all major capital projects. The indicator reflects the effectiveness of the stakeholder engagement process. Performance indicators vary depending on the significant factors of each project. Another critical indicator is a survey of stakeholder opinions in communities surrounding the operational area. The survey's results, suggestions and identified expectations are taken into account when developing operational strategies in order to create long-term benefits.

For community relations, PTT defines the Community Satisfaction Index as a performance indicator. The Community Satisfaction Index consists of an assessment of the development of economic and living standards, safety and environmental operation performance, community relations and communication of the organization's activities.


Community Grievance Mechanism

PTT has defined the approaches and communication channels for gathering opinions and grievances of stakeholders and communities. PTT systematically and efficiently responds to complaints at all stages of the project lifecycle before, during and after project development. For major capital projects, the channels for addressing grievances are through the tripartite committee, consisted of PTT, representatives of relevant stakeholders, and government agencies.


Performance

Progress against Plan

Plan2019 target2019 Performance        2020 target
Control, monitor and verify the implementation of environmental standards Control, monitor, and verify the implementation of environmental standards of all projects under construction phase (100%) 100% Control, monitor and verify the implementation of standards during construction period by 100% 
Publish project information to create stakeholder confidence in project Achieve project acknowledgement and project acceptance of more than 60% from respondents surveyed during the EIA/ER study Project acknowledgement rate at 92.38%

Project acceptance rate at 68.38%
  • Achieve project acknowledgement at over 70% of all samples survey during EIA / ER study
  • Achieve project acceptance rate at over 60% of all samples survey during EIA / ER study

Remark:  Environmental Impact Assessment Report (EIA) is presented to the Office of Natural Resources and Environmental Policy and Planning (ONEP) for consideration. Environment Report (ER) is presented to the Department of Energy Business for consideration.


Capital project management is embedded in every phase of a project to manage social, environmental and health impacts (non-technical risks). Thus, building confidence and gaining acceptance from stakeholders resulting in a continuous and sustainable business development.


Management Approach

  • Comply with relevant laws and regulations; effectively manage cost control and project schedule as planned.
  • Define preventive and mitigation measures to manage social and environmental concerns from communities, and regularly engage with communities to reduce concerns from the operations.

Management of Work Critical to Project’s Completion 

The ultimate goal of a project operation is to complete it within the designated timeframe and budget with quality and conforming to related laws and regulations. PTT, therefore on the critical path to reduce the risk of project development within control as much as possible


Environmental, Social and Health Impact Assessment

The goal of project management is to carry out a project within the designated timeframe while obtaining acceptance from the public. In the case of any impact from project implementation or any complaints received, a monitoring process will begin within 24 hours to mitigate such impacts to manageable levels. Additionally, relevant departments will be immediately contacted to address any issues as soon as possible.

Number of Development Projects
Managing Social ImpactsNumber of Projects in 2019
Total number of projects 2
Number of projects with community consultation  2
% of development projects with community consultation to total number of projects  100
Current Operation Sites  
Managing Social ImpactsNumber of Operation Sites in 2019 
Number of current production assets 15
Number of operation sites with public consultation  15
% of operation sites with public consultation against all projects  100

Remark: Number of operation sites with public consultation refers to number of areas with community engagement surveys conducted 



2016201720182019
% of project acknowledgement   81.3 81.3 84.14 92.28
% of project acceptance  74.1 85.5 80.94 68.38

In 2019, PTT conducted capital natural gas transmission pipeline projects, comprises Onshore Gas Transmission Pipeline No.5 and Onshore Gas Transmission Pipeline No.6 Ratchaburi Gas Pressure Controlling Station – Wang Noi 6 (RA6) to Ratchaburi province. The performance details is as follows.


Onshore Gas Transmission Pipeline from Ratchaburi Gas Pressure Controlling Station – Wang Noi 6 (RA6) to Radchaburi Province 

For the Onshore Gas Transmission Pipeline No.6 Ratchaburi Gas Controlling Station – Wang Noi (RA#6) passes through Nontaburi, Nakhon Pathom, Kanchanaburi and Ratchaburi provinces. This project's Environmental Impact Assessment report has been completed and presented to the Office of Natural Resources and Environmental Policy and Planning (ONEP) for consideration. The EIA report was approved by the EIA expert on 4th May 2017 and National Environmental Board Committee on 6th July 2017. Construction work for the pipeline initiated in September 2017. Request for amendment of projects details in EIA was submitted and approved by Office of Energy Regulatory Commission (ERC) on 3rdMay. The project is expected to be completed by 2020. The Community Engagement Score for this project is at 3.97 from the target of 3.50.


Onshore Natural Gas Pipeline No.5 Project 

Onshore Natural Gas Pipeline No.5 Project passes through Rayong, Chonburi, Chacheognsao, Prajeenburi, Bangkok, Phra Nakorn Sri Ayudhaya, Pathutani and Nontaburi. Presently, the Environmental Impact Assessment report of this project has been completed and presented to the Office of Natural Resources and Environmental Policy and Planning (ONEP) for consideration. The EIA report was approved by the EIA expert on 27th June 2017 and National Environmental Board Committee on the 6th September 2017. Construction started in January 2018. Request for amendment of project details in EIA the first and second time were submitted to Office of Energy Regulatory Commission (ERC) and approved on 1st March and 18th March 2019. Furthermore, there will be another request for amendment of projects details in EIA for the third time to ONEP and Expert Review Committee for considerations and approval on 19th December 2019.The project is expected to be completed by 2021. The Community Engagement Score for this project is in the "good" level with an average score of 3.89 from the target of 3.50