Apollo 1,

University of Queensland
St Lucia, QLD, 4072
Australia

Date: 24/04/2018

Ms. Lakshmi Singh

CEO,
Apollo 1 Regional Headquarters,
EC-72, Sector I, Salt Lake City, Kolkata-700064, India

Dear Lakshmi,

Please find an enfolded copy of our final report listing out preliminary sustainability
plan for the newly proposed cement plant in Vang Vieng, Laos. This report was
compiled with reference to well reputed research oriented sources. This report
provides the following information:

• A brief synopsis for the project.

• Sustainability analysis for eliciting the 6 major factors that are important to the
survival of this project.
• Key stakeholder engagement strategies.
• IRR analysis with sustainability factors considered.
• Key recommendation for Apollo 1 enterprise.

Thank you for taking the time to read our report. Please feel free to contact me if you
have any questions.

Yours sincerely,

Gaurav Sood

Phone: +61414966387

Email: g.sood@uqconnect.edu.au
 Preliminary Sustainability Plan
4/24/2018
for the Cement Manufacturing
Facility in LAOS

Submitted by

Marzouq Salman A Alresheedi

Meshari Thari M Alresheedi
Ayushi Mukesh Modh
Gaurav Sood
Dongyu Zhu

APOLLO 1
 Table of Contents

EXECUTIVE SUMMARY ................................................................................................... i

1. INTRODUCTION .............................................................................................................. 1

1.1. BACKGROUND AND PROJECT SYNOPSIS ....................................................................................1

2. SUSTAINABILITY ANALYSIS ................................................................................ 2

2.1. POSITIVE AND NEGATIVE IMPACT IDENTIFICATION ............................................................... 2

2.2. IMPACT ENGAGEMENT STRATEGIES ............................................................................................ 5

3. STAKEHOLDER ENGAGEMENT PLAN ..........................................................6

3.1. POSITIVE 1: USING DRY-PROCESS KILNS ..................................................................................... 6

3.2. POSITIVE 2: CORPORATE SOCIAL RESPONSIBILITY PROGRAMS ....................................... 7

3.3. POSITIVE 3: INCREASED EMPLOYMENT OPPORTUNITIES ....................................................8

3.4. NEGATIVE 1: AIR POLLUTION .......................................................................................................... 9

3.5. NEGATIVE 2: THE COST OF COMPENSATION ........................................................................... 11

3.6. NEGATIVE 3: PROTEST DURING THE CONSTRUCTION ......................................................... 12

4. ETHICS ASSESSMENTS ......................................................................................... 13

4.1. SAFE MANUFACTURING ENVIRONMENT AND SECURE WORKPLACE .......................... 13

4.2. REDUCING ENVIRONMENTAL EFFECTS .................................................................................... 13

4.3. LAOS GOVERNMENT ETHICAL DILEMMAS .............................................................................. 14

 Table of Contents

5. CONCLUSION & RECOMMENDATION ..................................................... 14

6. REFERENCES .............................................................................................................. 15
 EXECUTIVE SUMMARY

The Government of Laos is inclined towards foreign investment in the sector of cement
manufacturing for Ordinary Portland Cement(OPC) to boost its export economy along with
the aim to reduce the high unemployment in the region. This represents an opportunity for
our enterprise to invest in OPC manufacturing project.

Apollo 1 Enterprise CEO Ms. Lakshmi Singh asked our team to evaluate this opportunity from
sustainability aspect with reference to future cash flows as the initial capital investment of
setting up this facility of US$250 million is substantial. To achieve this aim Apollo 1 team deep
dived into sustainability analysis of this project with the focus to highlight the negative impacts
on the Five Sustainability Capitals that affect the future cash flows from this unit as the
proposed life span for this OPC unit is around 40 years.

In the process of this analysis we could identify 6 major impact points. Each of these points
needed an in-depth stakeholder’s benefits and disadvantages analysis. Most of the stakeholder
engagement strategies were focused on to mitigate the negative impacts on the capitals so
that the total cost to fix these negative impact is less.

We performed an IRR analysis to account for the cashflow reduction with the new cost in view
due this sustainability analysis. The negative shift in IRR is considerable but still a very positive
signal for continuing with this project.

Apollo 1 team recommends that if all the major negative impact points are mitigated to a
certain level and all the stakeholder engagement strategies are followed, this project is surely
a success.

1
1. INTRODUCTION

1.1. BACKGROUND & PROJECT SYNOPSIS

Over the years, the economic development in the Greater Mekong Sub region (GMS) has
been effective in enhancing the reputation of the area as well as enabling it to be
economically sustainable. The area has been declared as one of the world’s best
biodiversity areas and consists of six states including Thailand, Laos, Myanmar, Vietnam,
Cambodia and the Yunnan Province of China (Krongkaew 2004, p. 978). Economic
development in the area has been facilitated by elements such as trade and investment as
well as industrial growth in different areas including the cement manufacturing industry
(Menon & Melendez 2011, p. 5). Cement is among the economic elements that are
responsible for shaping the private and public sector in GMS (Nam & Nam 2008, p. 328).
Although the cement industry is not common and effective in all countries in the region, it
is common in countries such as Laos. Vietnam is also a large producer of cement with over
91 million tonnes production every year while Myanmar produces approximately 3 million
tonnes of cement every year (News Desk 2018).

In Laos, cement industry produces over 4.4 million tons annually but this figure is expected
to rise to over 6 million tons (News Desk 2018). Currently, although the country meets over
80 percent of the cement demands, it also imports cement and other materials for
enhancing construction activities in the country (News Desk 2018). Laos exports to
countries such as Thailand in the GMS.

As of 2011, the population of Laos was around 6.75 million which is considered as the
smallest among the Lower Mekong countries (Open Development Initiative 2017). There
are around 55,503 populations in Vang Vieng and the average annual population growth
in Laos is 1.7% between 2010 and 2016. Most population in the Lower Mekong countries is
young people. Laos is one of the most poorly known Southeast Asian countries (Menon &
Melendez, 2011). However, over the years, the country has been improving and is currently
among the fastest-growing economies in the world and especially in the Greater Mekong
Sub region.

As the Government of Laos is constantly pushing for reducing imports and increasing
exports, construction boom and creating employment opportunities in the region to
reduce the high unemployment, The Government of Laos is inclined towards foreign
investment in the sector of cement manufacturing for Ordinary Portland Cement (OPC).
This represents a great opportunity for our enterprise to invest in this OPC project. A
preliminary investigation has shown that a site near Vang Vieng, 150 km north of Vientiane,
Laos is suitable for this development.

1
2. SUSTAINABILITY ANALYSIS

2.1. POSITIVE AND NEGATIVE IMPACT IDENTIFICATION

Table (1) outlines positive and negative impacts on each of the five capitals of capitals of
sustainability. This allowed key stakeholders (as given in Figure 1) to be identified to develop
engagement strategies for a successful project. Apollo 1 Enterprise must address the
potential impacts to this group of stakeholders as these stakeholders hold the key to the
success of the project.

Influence - Interest Matrix

12
Government

10

8 State Government

LandHolders
Influence

6
Local Businesses

Public
2

0
0 1 2 3 4 5 6 7 8 9 10
Interests

Figure (1) Major Stakeholder Recognition Matrix

Six critical impacts were identified using Figure 1, according to how much influence the
key stakeholders for that individual impact had. For this OPC project to be successful, clear
engagement strategies for all the six impacts addressing each stakeholder group must be
created and followed.

2
 Table (1) Positive and Negative Impacts

CAPITALS STAKEHOLDERS POSITIVE IMPACTS NEGATIVE IMPACTS

NATURAL • Government • Environmental reclamation • Cement manufacture results in
• programs will enhance carbon particulate emission which
CAPITAL State Government
environmental sustainability in are responsible for global warming
• Public
the area. (Chen et al. 2010).
• Landholders • Using Dry-process kilns have • Air pollution is also increased
consequently reduced energy because of smoke and dust
consumption by 40% and emissions during cement
carbon dioxide emissions by manufacture (Oss & Padovani 2003).
20%(Boyer, 2011). • Landscape and environmental
• Using Tire Derived Fuel will for degradation will be experienced
clinker production reduces because of the cement production
dependency on coal, thus activities resulting in the loss of
reducing carbon foot print. biodiversity in the area (Oss &
Padovani 2003).
HUMAN • Government • Increased employment • Respiratory health issues are
• opportunities for people in the experienced by the local community
CAPITAL State Government
area due to the establishment of based on the increased air pollution
• Local Businesses
this cement plant. (Schumacher et al. 2011)
• Public • Improved welfare of people in • The use of machines may also lead to
the region because of reduction injuries to the people which may
in unemployment. affect their way of life and living
• Residents of the area will benefit conditions.
from the growth of the cement • Noise pollution due to this OPC plant
industry (Schneider et al. 2011) can cause severe hearing loss in the
local community.
FINANCIAL • Government • Local cement sale and export of • High costs of investment in building
• cement will provide financial the cement plant with over US$250
CAPITAL State Government
revenue to Apollo 1 company
• Local Businesses million for the project.
(Schneider et al. 2011)
• Landholders • High health costs will be incurred
• Increased trade activities will be
experienced in the area because because of the health issues being
of this OPC plant. experienced by the local people.
• Landholders will be • The costs of compensation to local
compensated generously as this tourism authorities will be high due
OPC plant will be constructed on to disruptive construction activities
their lands. for this OPC plant.

3
 SOCIAL • Government • Profits from the cement plan
• sales can be used for corporate
CAPITAL State Government
social responsibility programs.
• Local Businesses
(Schneider et al. 2011)
• Public
• Social amenities such as parks,
social halls, hospitals and
schools will be developed for
enhancing the well-being of
the people in the area.
• This OPC plant will enhance
unity and increased social
support for local activities.
(Placet et al. 2005)
MANUFACTURED • Government • Ensure adequate levels of
CAPITAL • State government investment, research and
• Local Businesses maintenance of
infrastructure(Project,
• Public
2006).
• Locally available cement will
enhance improving roads and
other buildings in the region.
• Improvement in skills and
capabilities of the local
community because of
enhancement of technology.
(Schneider et al. 2011)
4
• The cement plant will increase
economic activities in the area which
may result in higher degree of
crimes and social disputes. (Placet et
al. 2005).
• There may be a protest during the
construction of this OPC plant by the
local community, since tourism
activities could be affected during its
construction.
• Social issues such as inequalities
may also increase because of
increased economic development
activities (Placet et al. 2005).
• Technological advancements may
be too costly for the cement plant to
implement in its practices (Oss &
Padovani 2003)
• Increased pressure on locally-built
buildings to adopt use of products
from cement factory
• Use of more of the land for the locals
hence displacing the people (Oss &
Padovani 2003).
2.2. IMPACT ENGAGEMENT STRATEGIES
Potential positive and negative impacts were selected according to major stakeholders
that have been identified in Figure 1 and how they are affected by the Five Capitals is as
described in section 2.1. Strategies have been developed to enhance the positive impacts
and mitigate the negative impacts.
POSITIVE IMPACTS:
GREATEST BENEFITS
Using Dry-process kilns have
consequently reduced energy
consumption by 40% and carbon dioxide
emissions by 20%.
Increased employment opportunities for
people in the area due to the
establishment of this cement plant.
Profits from the cement plant sales can
be used for corporate social responsibility
programs.
NEGATIVE IMPACTS:
GREATEST CONSEQUENCES
Air pollution is also increased because of
smoke and dust emissions during
cement manufacture.
The costs of compensation to local
tourism authorities will be high due to
disruptive construction activities for this
OPC plant.
There may be a protest during the
construction of this OPC plant by the local
community, since tourism activities could
be affected during its construction.
ENGAGEMENT STRATEGY
Multistage preheaters and pre-calciners make use of
the waste heat from the kiln and clinker cooler to pre-
heat and pre-process the kiln feed, and thereby allow
for considerable energy savings and reducing
dependence on coal. (http://ietd.iipnetwork.org, 2017)
The most effective engagement strategy is to enhance
the development of knowledge and skills of people
employed in the cement plant (Schneider et al. 2011).
Through enhancing the development of knowledge
and skills, people from the area can use these skills to
be self-sufficient and improve their living standards.
Corporate social responsibility should be aimed at
working with community groups and community
leaders so that community-based projects are
enhanced for the community (Ismail,2009).
ENGAGEMENT STRATEGY
Ensuring that pollution mitigation buffers are
enhanced in the cement plant (Schneider et al. 2011).
This means that the plant should engage in processes
that are effective in minimize harmful smoke as well as
ensuring that trees are planted around the plant to
trap dust particles (Schneider et al. 2011).
Ensuring that there is a limit for compensation and
choose these compensations carefully.
A referendum could be held to know whether the
local population would agree to the establishment of
this OPC plant and we need to outline the importance
of this OPC plant in case of providing job opportunities
to the local communities.
5
3. STAKEHOLDER ENGAGEMENT PLAN

The following section outlines the key messages and engagement activities for each of the
major stakeholders, along with a timeline of when Apollo 1 Enterprise should engage with
them for each strategy.

3.1. POSITIVE 1: USING DRY-PROCESS KILNS

KEY KEY MESSAGE SPECIFIC TIMELINE

STAKEHOLDERS ENGAGEMENT
ACTIVITIES
Government of Laos Using dry process 1. Give a September 2018:
kilns promise to presentation and Presentations to
Mr. Sommat reduce the energy explain how the explain the positive
usage approximately usage of dry- outcomes of using dry
Pholsena
by 40% and Co2 process kilns can process kilns
emissions by 20%. This reduce energy
Minister of Natural proves to be a big consumption and
Resources and advantage for the Co2 emission
Environment environment. levels. July 2022 - July 2062:
Submit reports every
Ban Dongnasok 2. When the industry 6 months as energy
Sikhottabong District is in full swing usage and emission
operation, submit levels are an
T: (021) 26 4543 a report after every important issue.
6 months to
inform the
ministry of the
progress.

Government of Laos Reduced levels of 1. Hold meetings September 2018:

energy usage and Co2 with other Official meetings with
Ms. Khemmany emissions should be stakeholders and other stakeholders
Pholsena the top priority for any assure them the
industry. The profits of dry-
Minister of Industry proposed project process skills.
and Commerce promises to do that.
2. Engage in
104/4-5 Phonesay feedback sessions
Road, Ban Phonesay, once a year to be
at par with the July 2022 - July 2062:
Vientiane. Feedback sessions
expectations from
the stakeholders. and submitting
T: (21) 453490/1/3/5
F: (21) 412-434 reports once a year.

6
3.2. POSITIVE 2: CORPORATE SOCIAL RESPONSIBILITY PROGRAMS

KEY KEY MESSAGE SPECIFIC TIMELINE

STAKEHOLDERS ENGAGEMENT
ACTIVITIES
Government of Laos A full swing operation 1. Give a detailed September 2018:
of this OPC plant will presentation on Hold Presentation
Mr Khampheng assure monetary aid how an upcoming Meeting 1.
which can be used for industry can help
Saysompheng
society development in the
projects and welfare development of November 2018:
Minister of Labor of the community. the society
and Social Welfare Hold Presentation
2. Send letters
Meeting 2 and
Pangkham St., Ban periodically discuss further
Sisaket, mentioning the issues if any.
Chanthaboury pros of the project
District, Vientiane, and detailing on January 2019:
what progress has Sending out first
Lao PDR P.O Box:
this OPC Plant official report.
347 made in the sector
of social welfare.
T: (856-20) 21219450 July 2022 - July 2062:
Send the progress
reports to the ministry
yearly.

Government of Laos Vang Vieng is a tourist 1. Give a September 2018:

spot and construction presentation and Hold a meeting along
Mr. Bosengkham of a new OPC Plant conduct a prior with the social welfare
might affect the meeting minister and explain
Vongdara
number of tourists explaining how the details of the
visiting the town. the new proposed outcomes of this
Minister of OPC plant will help project.
Information culture in making the
and Tourism environment even February 2019:
more progressive. Hold a general
T: (856-20) 21219455 meeting with the
Minister of Tourism for
discussing
enhancements.

July 2022 - July 2062:

Submit reports every
four years.

Public of Vang The funds from the 1. Conducting March 2019:

Vieng industry will enhance workshops and Conduct workshops
the facilities for the community to make the people
local people by meeting to ensure understand the
establishing society that people benefits of the project

7
 halls and refurbishing understand the June 2019:
deteriorated positive values of Conduct more
structures. enhancing the workshops and
environment. community meetings
to be assured that
2. Gathering everything is in place.
feedback after
specific amount of July 2022 - July 2062:
time to be sure Gather feedbacks and
whether the opinions from the
public agrees with public.
the improvements
occurred in the
surroundings.

3.3. POSITIVE 3: INCREASED EMPLOYMENT OPPORTUNITIES.

KEY KEY MESSAGE SPECIFIC TIMELINE

STAKEHOLDERS ENGAGEMENT
ACTIVITIES
Government of Laos Opening of a cement 1. Give a detailed August 2018:
plant will increase presentation on Hold Presentation
Mr Khampheng employment how the proposed Meeting 1.
opportunities as more cement industry
Saysompheng
laborers could be will increase labor October 2018:
engaged while the opportunities. Hold Presentation
Minister of Labor construction is on and 2. Send out reports Meeting 2 and discuss
and Social Welfare skilled labor can be about this OPC further issues if any.
employed when the plant progress in
Pangkham St., Ban plant is in operation. employing local January 2019:
Sisaket, workforce. Sending out first
Chanthaboury official report.
District, Vientiane,
Lao PDR P.O Box: July 2022 - July 2062:
347 Send the progress
reports to the ministry
T: (856-20) 21219450 yearly.

Vientiane The proposed cement 1. Give a detailed on August 2018:

Mayor industry will how the proposed Hold Presentation
guarantee improved cement industry Meeting 1.
livelihood of the local will increase the
M Sinlavong
people by offering labor October 2018:
Khoutphaythoune jobs. opportunities Hold Presentation
along with the Meeting 2 and discuss
T: (856-20) 21219555 further issues if any.

8
 Minister of Labor
and Social Welfare
2. Conduct group
meetings with the
project heads and January 2019:
discuss the Sending out first
prospects. official report.

July 2022 - July 2062:

Send the progress
reports to the ministry
yearly.

Public of Vang Assuring of increased 1. Conduct March 2019:

Vieng work opportunities workshops and Conduct workshops
and in turn better community to make the people
lifestyle for the local meetings understand the
people. including the benefits of the project.
town’s mayor as
well and June 2019:
explaining how Conduct community
the cement meetings to assure
industry will be the local community
benefiting every that hiring process is
person in one or in place and active.
the other way.
July 2022 - July 2062:
2. Gather feedback Gather feedback and
from the people opinions from the
after a certain public.
designated time.

3.4. Negative 1: AIR POLLUTION.

KEY KEY MESSAGE SPECIFIC TIMELINE

STAKEHOLDERS ENGAGEMENT
ACTIVITIES
Government of Laos 1. The impacts on 1. Organize August 2018:
the local meetings with Hold Presentation
Mr. Sommat environment local community Meeting 1.
caused by air councilors to get
Pholsena
pollution due to approval for
this OPC plant will construction.

9
Minister of Natural be controlled January 2019:
Resources and within the 2. To issue relevant Sending out first
Environment prescribed limits. policies to ensure official report.
the smooth
2. State-of-the-art progress of this
Ban Dongnasok
infrastructure will project.
Sikhottabong District
be utilized to
eliminate or
T: (021) 26 4543
reduce the
emission of
smoke and dust.

Vientiane Will make a specific 1. Provide air February 2019:

Mayor plan on controlling indicator reports Hold Meeting 1 with
the emission of smoke on the emission of residents.
and dust. smoke and dust
M Sinlavong
when the cement
Khoutphaythoune plant is under
construction.
T: (856-20) 21219555
May 2019:
Hold Meeting 1 with
residents.

July 2022 - July 2062:

Annually report on the
emission of smoke
and dust.

Public of Vang Assuring air pollution 1. Organize February 2019:

Vieng from this OPC plant meetings with Hold Meeting 1 with
will not affect the daily local resident residents.
life of the residents in representatives to
any way. discuss the
potential impacts July 2022 - July 2062:
on the local Gather feedback
environment. forms from the
representatives of the
2. Distribute and public.
retrieve feedback
forms from the July 2022- July 2062:
representatives of Gather the general
the public. public’s opinions on
the air level.
3. Set up a special
website or online
forum for the
public to express
their opinions.

10
3.5. Negative 2: THE COSTS OF COMPENSATION.

KEY KEY MESSAGE SPECIFIC TIMELINE

STAKEHOLDERS ENGAGEMENT
ACTIVITIES
Government of Laos A certain amount of 1. Compensation of July 2022 - July 2062:
compensation will be US $2 million per Annually US $2 million
Mr. Somdy paid to the affected year will be paid to compensation will be
tourism industry in the tourism industry in paid to tourism
Douangdy
Vang Vieng area. the Vang Vieng industry.
area to make up for
Deputy Prime the financial loss January 2020:
Minister and caused by the Organize meeting 1
Minister of Finance construction of the with Ministry of
new cement plant. Tourism Industry to
Thatluang Rd., Ban discuss about
Phonxay, Xiasettha 2. Organize meetings compensation
District, Vientiane, P.O with Ministry of scheme.
Box 46, Tourism Industry
to discuss about July 2020:
T: (856) 21-412409 compensation. Organize meeting 2
with Ministry of
3. All possible Tourism Industry to
disputes must be further discuss about
settled compensation
immediately. scheme.

Government of Laos A certain amount of 1. Allocate July 2022- July 2062:

compensation will be compensation to Annually organize
Mr. Bosengkham paid to the affected local tourism meetings with local
tourism industry in the authorities in the tourism authorities to
Vongdara
Vang Vieng area for Vang Vieng area. discuss about
making up for the loss 2. Organize meetings compensation
Minister of of income. with Ministry of schemes and allocate
Information, Culture Finance to discuss compensation.
and Tourism about
compensation
T: (856-20) 21219455 limit.
3. All possible
disputes must be
settled
immediately.
Local Businesses All local businesses 1. Provide contact July 2022 - July 2062:
(Tourism) that are affected by information with Gather feedback and
the construction of the local businesses to opinions from local
new cement plant will answer their business and quarterly
be made up for the questions and organize meetings.
loss of income. solve their issues.

2. Set up a special
website or online
forum to gather
feedback from
local businesses.

11
3.6. Negative 3: PROTEST DURING THE CONSTRUCTION

KEY KEY MESSAGE SPECIFIC TIMELINE

STAKEHOLDERS ENGAGEMENT
ACTIVITIES
Government of Laos Social security and 1. Implement August 2018-
stability are two critical practices that are December 2022:
Mr. Thongbanh factors to the success internationally Quarterly organize
of the project. This kind recognized as a meetings and provide
Sengaphone
of issue must be highly means of reducing reports on residents’
valued. such cases. attitudes towards the
Minister of Public construction of the
Security 2. Organize sufficient cement plant.
force (e.g. the August 2018-
Nongbone Rd, police) to stop or December 2022:
Vientiane timely deal with Send armed forces (i.e.
the potential the police) to stop
T: (856) 21-412409 occurrence of large-scale protest
protests. activities whenever
happened

Vientiane The potential 1. Manage and August 2018-

Mayor occurrence of the organize meetings December 2022:
protest would be a with local resident
serious issue. Effective representatives to Manage monthly
M Sinlavong
measures must be discuss organized meetings
Khoutphaythoune taken to placate the constructive with local resident
public mitigation representatives.
T: (856-20) 21219555 strategies.
August 2018-
2. Effective measures December 2022:
must be taken to
prevent social riots Take timely and
and large-scale effective actions to
people’s injury. prevent or avoid
protest activities
whenever happened
Public of Vang Any protest activity is 1. Organize meetings August 2018-
Vieng not desirable and with December 2022:
reasonable measures representatives of Monthly organize
should be taken to local public to meetings with
express thoughts or discuss about the representatives of
opinions. issue of affecting residents to discuss
local tourism the incurred issues of
activities the construction of the
cement plan
2. Gather and analyze
feedback forms

12
 from the August 2018-
representatives of December 2022:
the public.
Gather and analyze
3. Set up a special residents’ feedback in
website or online a timely manner to
forum for the local understand their
public to express thoughts and
their thoughts and opinions.
opinions

4. ETHICS ASSESSMENTS

4.1. SAFE MANUFACTURING ENVIRONMENT AND SECURE WORKPLACE

It is extremely important to have a safe and secure workplace environment for any kind of
industry to flourish. The proposed project of the cement plant in Vang Vieng town may
face one such ethical issue as a cement industry promises to employ a large number of
laborers. Hence, securing their safety and maintaining a peaceful environment for the
workers should be of prime importance.

• Cement plant engages in use of many huge machineries and raw materials. To
ensure adequate safety procedures, it is both legally mandatory and ethically
important(Smallbusiness.chron.com, 2010).
• There should be a perfect balance between inconvenience and safety factor; as
enforcing too many rules on the workers can create compliance problems while
not being strict about safety rules can lead to injury to an undesirable extent.
• It is employer’s legal as well as ethical responsibility that all their workers are not
subject to any kind of sexual harassment or other work place fights. The
employers are expected to pay the right wage to each worker and have fair
decisions taken in case of any issues.

4.2. REDUCING ENVIRONMENTAL EFFECTS

Vang Vieng in Laos, is a tourist attraction and construction of a cement plant in the town
itself can lead to a downfall in the tourism industry as there will be increased levels of
pollution. The proposed cement plant should focus on how they can save the environment
at their level. This is certainly an important dilemma for Apollo 1 Enterprise.

• A full swing operation of an industry requires lot of energy resources for proper
operation and this will lead to an increase in waste levels from the plant, be it any
form emissions or solid waste.
• The ethical concerns all in all influence the approach that how an industry
manages to get done with environmental degradation factors due to its
manufacturing processes.

13
 • This unit should start managing the emissions at its level by figuring out what
exactly is the source of heavy emissions and finding ways to curb it. Energy
efficiency should be also one of the major factors that this OPC plant should take
into consideration as well.

4.3. LAOS GOVERNMENT ETHICAL DILEMMAS

The government might have to face major dilemmas as convincing public for a project that
might harm their livelihood would not be easy. Be an industry small scale or large scale, it
does require huge amount of water for operation. The government must have right
balance between the water usage for its public and supplying to the industry as well. There
might be chances of community riots or rallies opposing the project proposal. The
government needs to be keen to handle such situations and assure the people that there
are going to be more benefits rather than downsides.

5. CONCLUSION AND RECOMMENDATION

This report has presented a deep investigation into understanding all the potential
stakeholder positions of this project. The investigation found five key holders:

• Landholders.
• State Government.
• Government of Laos.
• Public.
• Local Business (tourism).

Three positive and negative impacts affecting these stakeholders were identified and
stakeholder engagement strategies were presented. But to mitigate 3 negative impacts, it
requires some extra costs and thus, causing a reduction in cashflow for this OPC plant for
each operational year. IRR calculation after considering additional impact mitigation cost
shows a reductional shift from 63% to 61.9% which is considerable but it is still a very
positive signal on the rate of return. Apollo 1 team recommends that if these engagement
strategies are followed rigorously, it will ensure project success provided constant feedback
is collected from these key stakeholders regularly.

14
6. REFERENCES
Krongkaew, M 2004,’The development of the Greater Mekong Sub region (GMS): real
promise or false hope? Journal of Asian Economics, vol. 15, no. 5, pp.977-998.

Menon, J & Melendez, A 2011, Trade and Investment in the Greater Mekong Subregion:
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