Environmental and Social Review Summary. For. Uganda. Renewable Energy Development Program Lubilia Hydropower Project

Transcription

1 Public Disclosure Authorized Environmental and Social Review Summary Public Disclosure Authorized For Public Disclosure Authorized Uganda Public Disclosure Authorized Renewable Energy Development Program Lubilia Hydropower Project January 2014

2 -2 - Environmental and Social Review Summary Country: Uganda Project Name: Renewable Energy Development Program Lubilia Hydropower Project Project Number: P Environmental Category: B Project Description The proposed Series of IDA Partial Risk Guarantees for the Renewable Energy Development Program (IDA PRG Program) will support private sector investors to develop renewable energy based power plants in Uganda under the approved Renewable Energy Feed in Tariff (REFiT) structure. To create an enabling environment for private sector investment in renewable energy, the GoU is working with IDA and other development partners to introduce following instruments to enhance the market. These are: (i) Global Energy Transfer Feed in Tariff (GET FiT) Premium Payment, and (ii) IDA PRG Program. While these instruments will be offered independent of each other, and will be supported by different institutions, these will jointly work to enhance the renewable energy market development in Uganda. There are more than 40 subprojects that have already been identified that could be developed under the REFiT policy and considered within the proposed IDA PRG Program. These subprojects are at different stages of preparation. Lack of credit risk mitigation under the Power Purchase Agreement (PPA) and Implementation Agreement (IA) had been the major challenge to raise financing for these projects. The proposed IDA PRG Program will support and complement other efforts promoting small renewable energy development in Uganda that are being supported by a number of bilateral and multilateral parties, in particular, the GET FiT program, being coordinated by KfW. The GET FiT program is planned to support implementation of renewable energy based subprojects under the REFiT program. Based on agreed eligible criteria, renewable energy subprojects will be selected to receive GET FiT Premium payments. This will be a result-based top-up on the REFiT in Uganda on a per-kwh-basis, designed to cover the gap between the current REFiT levels and the Levelized Cost of Electricity (LCOE), thus enhancing subproject s financial viability. Payments will be availed on a grant basis. Lubilia Small Hydropower Plant (LSHP): The proposed Lubilia Small Hydropower Project (LSHP) is a 5.4 MW run of the river hydropower facility located on River Lubilia close to the village of Busyangwa in the Kasese District of Western Region in Uganda. The site is located 6.5 kilometers north of Bwera town. The weir at the selected location will have a maximum height of 4 meters and a conventional drop type intake arrangement. The channel intake controls and allows water from the pool at the weir to the channel. The 2,250 meter long headrace canal conveying water from the stream will lie on the left bank of the stream; it will take the power water up to the reinforced concrete fore-bay tank located at the end of the canal. The water will spill into a spill chamber located 500 meter before the fore-bay. This shall dissipate most of the energy in the spill water. The penstock will comprise of welded steel pipes approximately 780 meter, and laid generally above ground surface in a combination of buried pipe and above ground pipes. The section from 380 meter to 750 meter will comprise of buried penstocks. The penstock shall be a single pipe with diameters varying from 1.2 meter down to 0.9 meter, and then shall

3 -3 - bifurcate 42 meter before the powerhouse to two pipes of Diameter 0.7 meter each, to individually feed the two Francis/Pelton type turbines. An open air type powerhouse will be built adjacent to River Lubilia in the village of Kihondo. The powerhouse will include the proposed 2 Francis/Pelton type turbine-generator units, electrical control, switchgear, operator s room, two TRH sets and office. The turbine bay will contain a 25 MT capacity crane, for handling of the electromechanical equipment during installation and repairs. A substation and associated transmission equipment will be within the boundary, which will also include a control room, relay rooms, workshop and storage facilities, office accommodation, operator s facilities, and other necessary facilities for the operation and maintenance of the Power Station. The 33 kv transmission line will be 24 km long, and will connect up to the grid at Bwera where there is a 33 kv transmission line. Lubilia Kawembe Hydro Limited is a limited liability company incorporated in Uganda. It was incorporated on 10th August It intends to build a hydro power plant at River Lubilia on the foothills of Mount Rwenzori in Western Uganda. The power generated from the plant will be sold to the Uganda Electricity Transmission Company Limited (UETCL). Frontier, as the parent company for the Lubilia Small Hydro Power project, is in the process of finalizing a business plan elaborating practical terms and procedures for how Frontier as the main shareholder wants its project company; Lubilia Kawembe Hydro Limited to implement the project. The business plan will also include a section on Environment Health and safety (EHS), with goals, objectives, staffing and division of responsibilities in relation to EHS. Frontier as the parent company will employ an Environmental & Social (E&S) Manager to provide an oversight function on E&S related issues to Lubilia Kawembe Hydro Limited (LKHL) project. The E&S Manager will ensure that Frontier is in compliance with applicable rules and regulations in managing E&S issues for the project company. At the project level the E&S Manager will ensure that all environmental, health and safety issues are taken care of either by the EPC contractor or by the dedicated site team employed by the LSH project company. The site team will consist of a site manager, an E&S assistant and other support staff, all located at or near the site. Key Issues The assessment of the project does not indicate any major permanent adverse environment and social impacts, though the project will result in temporary dislocation of communities and loss of livelihood. The ESIA adequately identifies the social and environmental impacts. Permanent land take will result from the construction of the project infrastructure including the weir, headrace, penstock, powerhouse and the access road. Some land will be acquired temporarily for purposes of constructing workers camps. Land take will lead to loss of crops along the headrace, penstock and access roads and around the powerhouse area and workers construction camp. However, the project footprint is relatively small due to the nature and small scale of this project. The following Performance Standards apply to the project: Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts Performance Standard 2: Labor and Working Conditions Performance Standard 3: Resource Efficiency and Pollution Prevention

4 -4 - Performance Standard 4: Community Health, Safety, and Security Performance Standard 5: Land Acquisition and Involuntary Resettlement Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources Performance Standard 8: Cultural Heritage E&S categorization Rationale This is a category B project according to WB s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts that may result have been, or are being, avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The potential project impacts are site-specific, limited in number, and mitigation measures are readily available. Key Information Sources The ESIAs, ESMPs, ESAP and RAPs have been prepared and updated to incorporate comments received from the Bank s environmental and social staff and changes to land acquisition requirements associated with new access road alignments. The World Bank environmental and social staff conducted its social and environmental review of the Lubilia Hydropower Project jointly with consultants from GET FiT (ERM and Norplan). The review consisted of appraising technical, social development, environmental, and occupational health and safety information submitted by the Project Sponsors, together with analysis and site visits by sponsors technical experts. Key documents reviewed include the following: Environmental and Social Impact Assessment Environmental and Social Management/Action Plan Resettlement Action Plans A site visit by environmental and social specialists in May 2013 along with the GET FiT counterparts included meetings with the project sponsors. Based on this review and due diligence, the projects are expected to comply with Bank Performance Standards and relevant WBG Environmental, Health, and Safety Guidelines (EHSGs). PS1: Assessment and Management of Environmental and Social Risks and Impacts An ESIA and ESMP were developed in 2011 that covered all phases of the project (up to 100 MW) and was submitted for the National Environmental Management Authority s (NEMA) review and approval. Environmental Permit Certificate No. NEMA/EIA/4388 was issued on 22nd of February 2013 and is valid for 5 years. The Water Abstraction Permit and Construction Permit were issued in June 2013.The sponsor received a waiver for the Wetlands, River Banks and Lake Shore Management Permit and agreement of its integration in the EIA permit. The ESIA and RAPs satisfactorily follow all relevant Acts and Regulations of the Republic of Uganda. The detailed Environmental & Social Impact Assessment (ESIA) prepared by the developer Lubilia Kawembe Hydro Limited, adequately complies with the National Environmental Act, Cap. 153, Part V: Environmental Regulations (Section 20) of the Act of the Government of Uganda and the Performance Standards of the WBG. The ESIA provides a thorough review of the

5 -5 - existing environmental and social conditions within the Project area, an identification of potential impacts by their magnitude, extent and duration, and a detailed review of impact mitigation measures to be undertaken by the Project proponent. The ESIA also provides a detailed Environmental Management Plan that provides a framework for baseline, compliance and impact monitoring and reporting during the construction and operations of the project. The original ESIA has since been updated taking into account the identification of the new access road and comments from the Bank experts and the GET FiT consultants. The updated ESIA is a robust document and includes a comprehensive Social and Environmental Action Plan and satisfactorily responds to the requirement of PS1 and clearly identifies the social and environmental impacts both direct and indirect impacts and the corresponding mitigation actions. The socioeconomic baseline has been expanded to include the impact of the labor camps, storage areas and material source points such as, quarries. A comprehensive EHS Management System has been developed to mitigate environmental, health and safety matters as well as community relations. The environmental and social documents (ESIA and RAP) identify a total of 83 households affected by the project, of which 14 will require physical relocation and the rest will lose a small portion of the land. In addition there are a total of 10 graves in the area required by the project. About 7 of these are located in the access roads and the rest in canal. The graves in the access roads will be bypassed by slightly changing the design of the access road. These documents also present the positive impacts of the project. The access road starting from the bottom of the hill will positively improve accessibility and mobility for the villagers to services and markets. Improved access will therefore, directly benefit the communities and increase service delivery to the area. Construction of the proposed access road, the weir and diversion canal will directly affect some of the water sources along the way which include Busyangwa protected spring which is only about 5 meter from the proposed canal path way. Access to the river for household water use is rightly identified as a critical concern for the Project Affected Peoples (PAPs). The ESAP includes mitigation to ensure improved access to water for the affected communities. The Business Plan being developed for LSHP will clarify roles and responsibilities of the Developer and the Contractors throughout the Project implementation and operations phases. At the development phase the E&S Manager and the E&S Assistant will be closely involved in the land acquisition and first steps of implementing the Resettlement Action Plan (RAP). The construction phase is the critical phase in terms of environment, health and safety. All the issues which relate to the actual construction of the project will be passed onto the EPC contractor through an annex of the contract, the Environmental and Social Management Requirements. This annex is structured as per the WBG Performance Standards and requires the contractor to comply with each of these as well as the Environmental and Social Management Plan (ESMP). The ESMP and its sub-plans have been elaborated as part of the ESIA and deals on a more specific level with how to handle environmental, social, health and safety issues. However, some issues, in particular the interaction with the community, will be handled directly by the E&S staff of the project company. The operation phase will include regular monitoring by the E&S staff, both on Frontier and project company level. PS2: Labor and Working Conditions The business plan being developed by Frontier as the parent company of the LSHP will include a section on EHS, with goals, objectives, staffing and division of responsibilities in relation to

6 -6 - EHS. The project will be guided by Ugandan laws and regulations and the developer will be expected to comply with the Equator Principles and the WBG Performance Standards. Both Frontier as main shareholder and FMO as lender to the project are signatories to the Equator Principles, of which the IFC Performance Standards form a key part. The vast majority of workers will be Supply Chain Workers employed through the EPC Contractor. Frontier as the main shareholder, require the EPC Contractor to comply with child labor regulations and safety regulations. This is formulated in the Environment and Social Management Requirements as part of a more extensive section on labor working conditions. The main health and safety risks are potential construction related accidents, diseases such as HIV AIDS, malaria and exposure to electrical hazards, noise, and general accidents. Precautionary measures on occupational safety and health have been stipulated in the ESMP in accordance with World Bank s EHS Guidelines. During the construction and operation of the proposed project, safety, welfare and training will be of paramount importance. PS3: Resource Efficiency and Pollution Prevention Risk of erosion, including landslide risk, and sedimentation of the river are among the key issues identified by the ESIA as requiring adequate management, especially during construction. Erosion management will be important in connection with cutting and spoiling earth in steep terrain, e.g. for construction of access roads and conveyance system, as well as in the steep topography through which the access road to the weir will pass and where erosion of the slopes is possible. Sedimentation management will be important for all works adjacent to the Lubilia River and streams draining into it. Erosion and sedimentation management measures are readily available and well understood; experience exists from development of similar hydropower projects in the Rwenzori Mountains. ESMP contains the necessary mitigation measures. ESIA assesses potential for water pollution from accidental spills of fuels and lubricants used during construction; stream of both domestic and construction waste that will be generated; disposal of spoil, dust and noise pollution, handling of hazardous materials, and related issues likely to arise during construction. The ESMP, in its Annex 2, includes measures for managing these issues based on the World Bank Group Environmental, Health and Safety Guidelines, as well as relevant local laws and regulations, organized around compliance with PS 3 and other PSs. Like other small run of the river projects supported by the PRG, the project is not expected to lead to a significant increase of greenhouse gas emissions, although some incremental emission will occur from the use of construction machinery. PS4: Community Health, Safety, and Security The project ESMP has identified the risks and impacts to the health and safety of the affected communities during the project life-cycle. The ESMP establishes preventive and control measures consistent with GoU s Public Health Act Cap 281, good international industry practice and the World Bank Environmental, Health and Safety Guidelines. The ESMP and ESAP adequately identifies risks and impacts and propose mitigation measures that commensurate with their nature and magnitude, favoring avoidance of risks and impacts over minimization.

7 -7 - The ESIA has a robust Community Health and Safety and Security Plan to ensure that the safeguarding of personnel and property is carried out in accordance with relevant human rights principles and in a manner that avoids or minimizes risks to the affected communities. The sponsor has worked to develop a cordial relationship with the communities and has contracted a local teacher to work on community relations. The Grievance and Redress Mechanism (GRM) appropriately suggests resolving disputes through traditional and customary rules and practices rather than statutory and judicial processes. The Grievance and Redress Committee, comprising of 7 members drawn from the community elders, Village and Land Administration and 2 representatives from the developer and contractors is reasonable and acceptable to the affected community. Health and safety concerns are addressed through the company s Environmental & Social Management Requirement document and designation of a Community Manager. Training and sensitization of workers on environmental as well as on health and safety issues are adequate in their response to the health and safety risks recommended as continuous and ongoing process. Lubilia Kawembe Hydro Limited imposes fairly standard requirements on their EPC contractors which commensurate with the level of risk associated with their operations and consistent with WB s EHS General Guidelines. PS5: Land Acquisition and Involuntary Resettlement The Resettlement Action Plan prepared for the 143 project affected households, school and a health clinic satisfactorily meets the requirement of PS5. The Gap analysis identifies the differences between the World Bank policy and the legal framework such as; the Land Act, Cap 227; the Local Government Act (1997); Land Acquisition Act (1965); and the Access to Roads Act (1965) of the government of Uganda on Resettlement and Compensation. The higher of the two standards has been followed in preparing the Resettlement Action Plan, since that procedure also satisfies the requirements of the Government of Uganda s legal framework. The project will result in a permanent land-take of acres over a length of 4.6 kilometers (including access roads) affecting three communities. The RAP identifies a total of 143 project affected households, with 23 potentially physically displaced households and about 120 potentially economically displaced people. The affected people will only lose up to 40 meters of their agricultural land and this is likely to affect subsistence agriculture. The valuation and compensation reflected in the RAP is in accordance with rates set at district level for crops and non-permanent structures, enacted by District Land Boards and takes into account market values for land, structures and materials. The consultative process in the preparation of the RAP is satisfactory. A mechanism for managing grievances and disputes based on consultation and mediation is in place, comprising of local leaders and trusted citizens and is independent of the project. A training session for the Grievances Committee was also documented which clarifies the roles and responsibilities as well as the grievances management mechanisms. A detailed stakeholder report is appended to the RAP. Once construction has begun, regular communication to the affected communities on the progress of the project will be made.

8 -8 - PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources Although the project is downstream of the Rwenzori Mountains National Park it does not directly affect the Park nor constitute a risk due to indirect impacts, such as potential inflow of people due to construction. The project area is extensively modified by human activities, especially cultivation and grazing, and provides habitat to no species of conservation value except some Plystachia species of orchid family listed as threatened, and two regionally endemic reptile species. ESIA studies did not identify significant potential impact of the project on the habitat of these species. Only one species of fish was found in the Lubilia River, classified as of least conservation concern. ESIA assess the disturbance of fauna due to the project as low. Minimum Environmental flow of 80 l/sec was specified to maintain both ecological needs and human use needs for water supply of Bwera town. PS8: Cultural Heritage The ESIA and the RAP is responsive to the sensitive nature of the spiritual sites and graves that influences the daily lives of the communities. According to the socio-economic and valuation information, three graves located along the access road will require relocation by the project. The project will facilitate the relocation of the graves as agreed to with the local leaders according the local customary practice. Access to Client Documentation The sponsor has disclosed locally websitehttp:// and in the InfoShop on (date) the following key documents for the Renewable Energy Development Program Lubilia Hydro Power Project: Environmental and Social Impact Assessment Environmental and Social Management Plan Resettlement Action Plan The following listed documentation is available electronically on the client s websitehttp:// Environmental and Social Impact Assessment Environmental and Social Action Plan Resettlement Action Plan Action Plan: 1. Frontier as the parent company for the Lubilia Hydro Power Project will finalize and share its business plan to manage the Environmental and Social Impacts prior to the effectiveness date. 2. Prepare an Emergency Preparedness and Response plan and communicate in advance to the project affected and adjacent communities