SOCIO-ECONOMIC IMPACT ASSESSMENT

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1 SOCIO-ECONOMIC IMPACT ASSESSMENT Socio-Economic Specialist Mr Anton Hough from Coastal & Environmental Services (CES) was appointed to conduct a socio-economic specialist report in accordance with the potential socio-economic impacts identified during the scoping phase. Potential Impacts on Socio-Economy Wind Energy Facility The WEF will have different impacts upon stakeholders, depending upon various factors (as expanded upon in the Socio-economic Impact Assessment). Several interest groups are involved and will have different viewpoints and issues with the development in relation to how they will be affected. Other variables that influence the impact of the project are whether affected farm-owners feel a particular sense of place attachment towards the land, the tourism industry that might be affected, as well as whether the farms have permanent residents on them that might be affected by the turbines. Each variable is briefly discussed below: The Waaihoek Community Trust holds many local farms in the area; some of which are directly affected by the facility. It therefore follows that this trust would benefit from the project in terms of land lease agreements, employment preferences, but also additional LED initiatives as proposed in this project. It is therefore to be expected that the project is viewed in a positive light by community members belonging to this trust, and that the project would indeed be beneficial to this trust and its surrounding community members in terms of LED. Other communities and organisations within 50km of the site will also benefit from the proposed wind farm. Many farm-owners land has been in their families for several decades. This reinforces their attachment to the land from a cultural and individual perspective. It is therefore not surprising that impacts related to altering owners sense of land attachment have been listed as significant in the Socio-economic Impact Assessment report. Even though many recommendations are proposed to mitigate this impact, the reality is that land will be altered and that some owners might be against the project. For this reason, the socioeconomic specialist has proposed several benefit schemes in order to assist farmers to restore their income or become part of the project. Lastly, a key variable that determines how and to what extent the project influences stakeholders is whether the farm has permanent residents on them. Some of the farmowners live on their properties with their households, whereas most of the affected farms have several hamlets where traditional farm inhabitants live with their families according to historic farm labour arrangements. Proposed Mitigation Wind Energy Facility The following table summarises the proposed mitigation measures suggested in the Socioeconomic Impact Assessment. Health and Safety A Community Health and Safety Plan and policy should be developed; All the project employees should be subject to a health and HIV/AIDS awareness educational

2 programme; Local health care facilities and police stations should be supported; Establishing a community policing forum could also be considered; Changes in crime patterns will need to be monitored; School programmes could be supported or initiated with a focus on crime and social pathology prevention; Community out-reach programmes could be supported or initiated to deal with risky sexual behaviours and related issues; Gates should be erected at all the entrances to the WEF and traffic in and out of the project area monitored; Warning signs should be erected near the turbines to alert the public of possible risks; Local residents should use an established Grievance Mechanism to issue any complaints to the project proponent. The proponent must investigate and mitigate these issues to the best of their abilities; Farm-owners should be consulted prior to the construction or upgrading of any roads; Fences should be considered along access routes; Traffic should be controlled and regulated through speed limits and safety regulations; Emergency Preparedness Plan should be developed; and Fire-fighting equipment must be kept on site. Human Resource Management A Preferential Procurement Policy should be drafted that favours employing the current local residents, including from the Waaihoek Community Trust; A Recruitment and Influx Management Plan should be developed. This should include information dissemination strategies, recruitment and supply chain transparency principles, and influx management and security arrangements; A Stakeholder Engagement Plan (SEP) should be drafted and implemented; As far as possible, security personnel should be recruited from the surrounding communities; A code of conduct should be developed for the use of security personnel; All the PAC members and PAF owners need to be informed about the roles and responsibilities of the security personnel; A Skills Development Programme should be drafted in consultation with relevant local communities including the Waaihoek Community Trust. An Employment Equity Plan should be drafted; and The proponent should consider to establish a labour desk/employment committee to manage and implement labour recruitment policies. Income-Restoration Measures for Affected Landowners Project benefits or income-restoration measures should, where relevant, be discussed between the farm owners and the proponent. Tourism An information centre could enhance the project by educating the public on the need and benefits of wind power; Mechanisms could be developed to link established tourist routes to the WEF. Pollution and Nuisance Impacts Turbines should not be constructed in close proximity to residential buildings; and Affected farm owners should where necessary be involved in the project and in particular the placement of turbines. Conclusion & Specialist Opinion Wind Energy Facility

3 As wind farm developments are still a relatively new concept in South Africa, the effects of such development on affected farms and residents are still largely unknown. The socioeconomic specialist concluded that new social issues are emerging which should be subject to future social monitoring. These include the effects of turbines on land attachment values and tourist behaviours. A number of recommendations are proposed in the specialist report, which should also mitigate many of the negative issues listed. Many impacts can be sustainably mitigated and managed through proper stakeholder engagement and the involvement of farm owners and other relevant stakeholders from the inception of the project. Socio-Economic Impact Assessment Overall Significance (Post-Mitigation): MODERATE (+)

4 ISSUE DESCRIPTION OF IMPACT NATURE OF IMPACT Inadequate social involvement Construction and upgrading of roads Inadequate communication throughout the WEF design and planning phase could have negative social and economic implications. An influx of people into the Utrecht area and the expansion of hamlets could cause social pressures in terms of health. An increase in subsistence farmers adding pressure to the surrounding landscape Easing unrestricted access to farm roads could lead to an increase in crime (such as stock theft) on farms. An increase in crime related to the influx of people in the area TABLE 1: WAAIHOEK WIND ENERGY FACILITY (DEA REF: 14/12/16/3/3/2/655) IMPACTS DIRECT INDIRECT INDIRECT SPATIAL SCALE (EXTENT) TEMPORAL SCALE (DURATION) CERTAINTY SCALE (LIKELIHOOD) SEVERITY / BENEFICIAL SCALE SIGNIFICANCE PRE-MITIGATION MITIGATION MEASURES SIGNIFICANCE POST- MITIGATION PLANNING & DESIGN PHASE SOCIO-ECONOMIC IMPACT ASSESSMENT Localised Long-term Possible Severe HIGH The public participation process has been an on-going process designed to include, inform and educate individuals who may be impacted by the WEF development. CONSTRUCTION PHASE SOCIO-ECONOMIC IMPACT ASSESSMENT Short-term Localised Probable Very severe HIGH All the project employees should be subject to a health and HIV/AIDS awareness educational programme; The proponent could initiate programmes aimed at upgrading or Short-term Study Area May Occur Severe MODERATE lending support to local facilities, e.g. clinics and police stations. Alternatively, the proponent could assist with initiating DIRECT Long-term Study Area Probable Very Severe HIGH programmes aimed at encouraging voluntary workers to patrol particular areas (especially during the construction period). MODERATE INDIRECT Long-term Localised Probable Very Severe HIGH Changes in crime patterns will need to be monitored in consultation with the local police and community policing forums (if these exist); MODERATE Specifically for influx management, the consultant recommends that the proponent develops transparent Human Resources (HR) policies and procedures. Such procedures could include a Preferential Procurement Policy in favour of employing the current residents in local communities within 50km of the site such as the Waaihoek Community Trust; The proponent should develop a Recruitment and Influx Management Plan. The proponent should develop a Stakeholder Engagement Plan (SEP) which incorporates developing collaborative management strategies for in-migration; School programmes could be supported or initiated aimed at educating children from an early age about the effects and consequences of crime and social pathologies; Community out-reach programmes

5 Health and safety Risk of aircraft collisions with turbines leading to mortalities Turbine malfunctioning (e.g. blade throw and gearbox failure) could cause safety risks to people onsite. Electromagnetic interference leading to communication problems. Increased traffic and related security and safety risks could be supported or initiated to deal with issues related to unsafe sexual practices, sex work, teenage pregnancies and sexual violence; and Particular roads should be fenced and access to particular road networks should be monitored and controlled. Gates should be considered for particular road networks, and particular access routes should be denied for unauthorised individuals or cars. DIRECT Long-term Study Area Unlikely Very Severe HIGH The turbines should be accurately positioned to reduce any effects of possible malfunctioning; DIRECT Medium-term Localised Unlikely Severe If complaints are received, the proponent must investigate and mitigate these issues. The proponent must follow the DIRECT Medium-term Localised Unlikely Slight manufacturer s recommendations on frequency and detail of maintenance on the turbine structures to minimise the risk of malfunction; A Blade Monitoring System must be standard in the turbine technology used in the project; The proponent should establish safety setbacks, and design the facility in such a manner that no buildings or populated areas lie within the possible trajectory range of turbine blades; The developer must equip wind turbines with vibration sensors that can react to any imbalance in the rotor blades and shut down the turbine if necessary; Regular maintenance work on the turbines is necessary; and The facility should have warning signs to alert the public of risk. INDIRECT Short-term Localised Probable Very Severe HIGH Farm-owners should always be consulted (and permission should be given by owners where relevant) prior to the construction or upgrading of any road(s); Fencing along the access routes should be considered, as well as the construction of cattle grids at road crossings; Gates should be erected at all the entrances to the WEF and traffic in and out of the project area monitored. This should be discussed with the affected owners; Traffic calming measures should be

6 Nuisance impacts (i.e. ambient noise and shadow flickering) implemented and speed limits need to be introduced and managed, especially during the construction period. Traffic should be controlled and regulated, and truck drivers need to be aware of safety regulations through regular briefings and workshops; It is recommended that the proponent prepares and implements a Community Health and Safety Plan and policy. Such a plan/policy should include traffic safety rules, and would need to enforce particular guidelines, including those related to adequately fencing-off certain infrastructure. This plan should be communicated to all personnel, PAF residents and nearby affected PACs; Particular criteria need to be developed for the recruitment of security personnel (for the construction phase); When hiring security personnel, reasonable effort must be made to check whether the potential employees have criminal records or have been part of any other unscrupulous behaviour. As far as possible, security personnel should be recruited from the surrounding communities. This should allow them to distinguish between the local population and outsiders; Security personnel need to be properly trained in the use of force and, most importantly, appropriate conduct towards labourers, PAC members and farm-owners; A code of conduct must be developed for the security personnel; and All the PAC members and PAF-owners need to be informed about the roles and responsibilities of the security personnel. DIRECT Long-term Localised Probable Slight MODERATE The Noise Impact Assessment should be consulted; The Wetland and Hydrological Impact Assessment should be consulted; Turbines should not be constructed within 500m of households; The proponent should establish a Grievance Mechanism to allow the PAFowners and PAC members to lodge any complaints. Management feedback should be provided to claimants within two weeks of claimants submitting formal complaints. Section 7.3 of this

7 Stimulation of economic growth Lightning strikes to both turbines and powerlines which could cause large fires Employing local labour could stimulate the local economy Skills training and further training opportunities could have very positive impacts on the futures on the local people Contributing to local and regional businesses causing an improvement in local GDP Capital investment for farmers to expand their farms leading improved financial security. report provides a general procedural outline for establishing such a mechanism. DIRECT Long-term Study Area May Occur Severe MODERATE An Emergency Preparedness Plan should be developed in case the project gives rise to the need for an emergency response. This plan should include management procedures for fire; (Mainstream has already indicated that they intend to join the local Fire Protection Association in order to obtain their inputs into the management plan) The site should have warning signs to alert the public of potential fire risks; Ensure sufficient fire breaks surrounding the WEF in accordance with the Veld Fire Act of 1998; The proponent developer must follow the manufacturer s recommendations on frequency and detail of maintenance on the turbine structures. Particular reference is made to the regular maintenance of the gearbox and associated machinery; Fire-fighting equipment must be kept on site and in proper order to enable immediate responses to fires on site; and People living and working in the areas along the turbines should be made aware of the dangers of fire and should be informed of the Emergency Preparedness Plan. DIRECT DIRECT DIRECT INDIRECT Short-term Study Area May Occur Very Beneficial Medium-term Regional May Occur Slightly Beneficial Short-term Regional May Occur Slightly Beneficial INDIRECT Long-term Regional Definite Very Beneficial The proponent should investigate the development of a Skills Development Programme aimed at providing the following programmes to its employees and a selected number of community members: o Core business training; o Learnerships; o Portable skills training; and o At least one community bursary per year. Employment should be managed by selecting employees according to an electronic selection system that ensures recruitment from local, impacted communities. This should ensure a fair recruitment process. An Employment Equity Plan should be drafted to provide equal job opportunities. Employment preference HIGH

8 Altering the landscape features Soil erosion leading to a decrease in income due to the deterioration of grazing for cattle Change in farm-owners place attachment Effects on the areas tourism potential Decrease in income related to a decrease in available grazing land for cattle should be provided to local residents; In addition to appropriate HR policies and procedures, a labour desk/employment committee should be established to manage and implement labour recruitment policies. This should ensure that recruitment is done in a fair and transparent way, and that job creation opportunities are maximised; As far as possible, those labourers involved in the construction phase should be incorporated in the permanent staff for the operational phase; Attention should be paid to employment opportunities for women and disabled persons; and As far as reasonably possible, a plan for gradual replacement of expats and outsiders by local people should be developed and implemented. This might be unfeasible, however, since the construction period would be short. DIRECT Short-term Localised May Occur Severe MODERATE An information centre could enhance the project by educating the public about the need and benefits of wind power; The proponent could engage with the DIRECT Long-term Study Area Probable Moderate MODERATE ELM to establish a tourist route for the MODERATE area to encompass the turbines on the DIRECT Long-term Study Area May Occur Moderate MODERATE escarpment with a possible outlook on the escarpment overlooking some of the INDIRECT Short-term Localised May Occur Slight turbines etc.; The proponent should engage with the affected farm-owners and tourism businesses in the area to develop mechanisms to link the project with tourist routes and future plans; The visual and ecological impact assessments should be reviewed and the mitigation measures adopted; Affected farm-owners should where necessary be involved in the project. Through this process, owners could identify areas which they believe might be susceptible to environmental pollution or destruction, such as erosion, and measures could be discussed to avoid these; A Grievance Mechanism should be established to allow those affected to voice any issues and/or concerns to the project proponent; Where necessary, construction areas

9 Construction and upgrading of roads An influx of people into the Utrecht area and the expansion of hamlets An increase in subsistence famers Easing unrestricted access to farm roads An increase in crime related to the influx of people in the area should be fenced-off and access controlled; Project benefits or income-restoration measures should be discussed between the farm-owners and the proponent; Through a (stakeholder engagement plan) SEP, (project affected farms) PAFowners should be consulted regularly and be allowed to provide feedback on the development regarding relevant matters; IFC PS 8 recommends that any cultural heritage be identified and protected as far as reasonably possible. For this purposes, an Archaeological Impact Assessment has been drafted. All recommendations made in the latter report should be considered; and The proponent should rehabilitate or restore degraded areas after the construction period. Such restoration should be discussed with the affected farm-owners and implemented in such a way as to involve the affected farmers and community members. OPERATIONAL PHASE SOCIO-ECONOMIC IMPACT ASSESSMENT DIRECT Short-term Study Area Probable Moderate MODERATE All the project employees should be INDIRECT subject to a health and HIV/AIDS awareness educational programme; INDIRECT Short-term Study Area May Occur Moderate MODERATE The proponent could initiate programmes aimed at upgrading or DIRECT Long-term Study Area May Occur Very Severe HIGH lending support to local facilities, e.g. clinics and police stations. Alternatively, INDIRECT Long-term Localised May Occur Slight the proponent could assist with initiating programmes aimed at encouraging voluntary workers to patrol particular areas (especially during the construction period). Changes in crime patterns will need to be monitored in consultation with the local police and community policing forums (if these exist); Specifically for influx management, the consultant recommends that the proponent develops transparent Human Resources (HR) policies and procedures. Such procedures could include a Preferential Procurement Policy in favour of employing the current residents in local communities within 50km of the site such as the Waaihoek Community Trust;

10 Health and safety Risk of aircraft collisions with turbines Turbine malfunctioning (e.g. blade throw and gearbox failure) Electromagnetic interference The proponent should develop a Recruitment and Influx Management Plan. The proponent should develop a Stakeholder Engagement Plan (SEP) which incorporates developing collaborative management strategies for in-migration; School programmes could be supported or initiated aimed at educating children from an early age about the effects and consequences of crime and social pathologies; Community out-reach programmes could be supported or initiated to deal with issues related to unsafe sexual practices, sex work, teenage pregnancies and sexual violence; and Particular roads should be fenced and access to particular road networks should be monitored and controlled. Gates should be considered for particular road networks, and particular access routes should be denied for unauthorised individuals or cars. DIRECT Long-term Regional Unlikely Very Severe HIGH The turbines should be accurately positioned to reduce any effects of DIRECT Medium-term Localised Unlikely Severe possible malfunctioning; If complaints are received, the proponent must investigate and mitigate DIRECT Medium-term Localised Unlikely Slight these issues. The proponent must follow the manufacturer s recommendations on frequency and detail of maintenance on the turbine structures to minimise the risk of malfunction; A Blade Monitoring System must be standard in the turbine technology used in the project; The proponent should establish safety setbacks, and design the facility in such a manner that no buildings or populated areas lie within the possible trajectory range of turbine blades; The developer must equip wind turbines with vibration sensors that can react to any imbalance in the rotor blades and shut down the turbine if necessary; Regular maintenance work on the turbines is necessary; and The facility should have warning signs to alert the public of risk. Increased traffic and related DIRECT Short-term Localised Probable Very Severe HIGH Farm-owners should always be

11 security and safety risks INDIRECT consulted (and permission should be given by owners where relevant) prior to the construction or upgrading of any road(s); Fencing along the access routes should be considered, as well as the construction of cattle grids at road crossings; Gates should be erected at all the entrances to the WEF and traffic in and out of the project area monitored. This should be discussed with the affected owners; Traffic calming measures should be implemented and speed limits need to be introduced and managed, especially during the construction period. Traffic should be controlled and regulated, and truck drivers need to be aware of safety regulations through regular briefings and workshops; It is recommended that the proponent prepares and implements a Community Health and Safety Plan and policy. Such a plan/policy should include traffic safety rules, and would need to enforce particular guidelines, including those related to adequately fencing-off certain infrastructure. This plan should be communicated to all personnel, PAF residents and nearby affected PACs; Particular criteria need to be developed for the recruitment of security personnel (for the construction phase); When hiring security personnel, reasonable effort must be made to check whether the potential employees have criminal records or have been part of any other unscrupulous behaviour. As far as possible, security personnel should be recruited from the surrounding communities. This should allow them to distinguish between the local population and outsiders; Security personnel need to be properly trained in the use of force and, most importantly, appropriate conduct towards labourers, PAC members and farm-owners; A code of conduct must be developed for the security personnel; and All the PAC members and PAF-owners need to be informed about the roles and

12 Stimulation of economic growth responsibilities of the security personnel. Nuisance impacts (i.e. DIRECT Long-term Localised Probable Slight MODERATE The Noise Impact Assessment should be ambient noise and shadow consulted; flickering) The Wetland and Hydrological Impact Assessment should be consulted; Turbines should not be constructed in close proximity to household buildings; The proponent should establish a Grievance Mechanism to allow the PAFowners and PAC members to lodge any complaints. Management feedback should be provided to claimants within two weeks of claimants submitting formal complaints. Section 7.3 of this report provides a general procedural outline for establishing such a mechanism. Lightning strikes to both INDIRECT Long-term Study Area May Occur Severe MODERATE An Emergency Preparedness Plan should turbines and powerlines be developed in case the project gives which could cause large fires rise to the need for an emergency response. This plan should include management procedures for fire; (Mainstream has already indicated that they intend to join the local Fire Protection Association in order to obtain their inputs into the management plan) The site should have warning signs to alert the public of potential fire risks; Ensure sufficient fire breaks surrounding the WEF in accordance with the Veld Fire Act of 1998; The developer must follow the manufacturer s recommendations on frequency and detail of maintenance on the turbine structures. Particular reference is made to the regular maintenance of the gearbox and associated machinery; Fire-fighting equipment must be kept on site and in proper order to enable immediate responses to fires on site; and People living and working in the areas along the turbines should be made aware of the dangers of fire and should be informed of the Emergency Preparedness Plan. Employing local labour DIRECT Short-term Study Area May Occur Moderately The proponent should investigate the Beneficial development of a Skills Development Skills training and further DIRECT Medium-term Regional May Occur Slightly Beneficial Programme aimed at providing the training opportunities INDIRECT following programmes to its employees and a selected number of community Contributing to local and DIRECT Short-term Regional May Occur Slightly Beneficial members:

13 Altering the landscape features regional businesses o Core business training; Capital investment for DIRECT Long-term Regional Definite Very Beneficial o Learnerships; farmers to expand their o Portable skills training; and farms o At least one community bursary per year (ideally through the Waaihoek Community Trust). Employment should be managed by selecting employees according to an electronic selection system that ensures recruitment from local, impacted communities. This should ensure a fair recruitment process. An Employment Equity Plan should be drafted to provide equal job opportunities. Employment preference should be provided to local residents such as the PAF permanent residents and Waaihoek Community Trust members; In addition to appropriate HR policies and procedures, a labour desk/employment committee should be established to manage and implement labour recruitment policies. This should ensure that recruitment is done in a fair and transparent way, and that job creation opportunities are maximised; As far as possible, those labourers involved in the construction phase should be incorporated in the permanent staff for the operational phase; Attention should be paid to employment opportunities for women and disabled persons; and As far as reasonably possible, a plan for gradual replacement of expats and outsiders by local people should be developed and implemented. This might be unfeasible, however, since the construction period would be short. Soil erosion leading to a INDIRECT Medium-term Localised May Occur Severe MODERATE An information centre could enhance the decrease in income due to project by educating the public about the deterioration of grazing the need and benefits of wind power; for cattle The proponent could engage with the Change in farm-owners DIRECT Long-term Study Area Definite Severe MODERATE ELM to establish a tourist route for the MODERATE place attachment area to encompass the turbines on the Effects on the areas tourism DIRECT Long-term Study Area May Occur Moderate MODERATE escarpment with a possible outlook on potential the escarpment overlooking some of the Decrease in income related to a decrease in available grazing land for cattle INDIRECT Long-term Localised May Occur Slight turbines etc.; The proponent should engage with the affected farm-owners and tourism businesses in the area to develop

14 Stimulation of economic growth DECOMMISSIONING PHASE SOCIO-ECONOMIC IMPACT ASSESSMENT Employing local labour DIRECT Short-term Study Area May Occur Very Beneficial Skills training and further DIRECT Medium-term Regional May Occur Slightly Beneficial training opportunities Contributing to local and DIRECT Short-term Regional May Occur Slightly Beneficial regional businesses Capital investment for INDIRECT Long-term Regional Definite Very Beneficial farmers to expand their farms mechanisms to link the project with tourist routes and future plans; The visual and ecological impact assessments should be reviewed and the mitigation measures adopted; Affected farm-owners should where necessary be involved in the project and in particular the placement of turbines. Through this process, owners could identify areas which they believe might be susceptible to environmental pollution or destruction, such as erosion. Through such consultation, measures could be discussed to avoid soil erosion; A Grievance Mechanism should be established to allow those affected to voice any issues and/or concerns to the project proponent; Where necessary, construction areas should be fenced-off and access controlled; Project benefits or income-restoration measures should be discussed between the farm-owners and the proponent; Through an SEP, PAF-owners should be consulted regularly and be allowed to provide input into the development; IFC PS 8 recommends that any cultural heritage be identified and protected as far as reasonably possible. For this purposes, an Archaeological Impact Assessment has been drafted. All recommendations made in the latter report should be considered; and The proponent should rehabilitate or restore degraded areas after the construction period. Such restoration should be discussed with the affected farm-owners and implemented in such a way as to involve the affected farmers and community members. All the project employees should be subject to a health and HIV/AIDS awareness educational programme; The proponent could initiate programmes aimed at upgrading or lending support to local facilities, e.g. clinics and police stations. Alternatively, the proponent could assist with initiating programmes aimed at encouraging voluntary workers to patrol particular HIGH

15 areas (especially during the construction period). Changes in crime patterns will need to be monitored in consultation with the local police and community policing forums (if these exist); Specifically for influx management, the consultant recommends that the proponent develops transparent Human Resources (HR) policies and procedures. Such procedures could include a Preferential Procurement Policy in favour of employing the current residents in local communities within 50km of the site such as the Waaihoek Community Trust; The proponent should develop a Recruitment and Influx Management Plan. The proponent should develop a Stakeholder Engagement Plan (SEP) which incorporates developing collaborative management strategies for in-migration; School programmes could be supported or initiated aimed at educating children from an early age about the effects and consequences of crime and social pathologies; Community out-reach programmes could be supported or initiated to deal with issues related to unsafe sexual practices, sex work, teenage pregnancies and sexual violence; and Particular roads should be fenced and access to particular road networks should be monitored and controlled. Gates should be considered for particular road networks, and particular access routes should be denied for unauthorised individuals or cars.

16 Potential Impacts on Visual Sensitivity Powerline The development will have different impacts upon stakeholders, depending upon various factors (as expanded upon in the Socio-economic Impact Assessment). Several interest groups are involved and will have different viewpoints and issues with the development in relation to how they will be affected. Such factors include whether a project will benefit a local community trust, or whether farms will be affected by the erection of powerlines. Other variables that influence the impact of the project are whether affected farm-owners feel a particular sense of place attachment towards the land, as well as whether the farms have permanent residents on them that might be affected by the powerline. Each variable is briefly discussed below: The Waaihoek Community Trust holds many local farms in the area; some of which are directly affected by the facility. It therefore follows that this trust would benefit from the project in terms of land lease agreements, employment preferences, but also additional LED initiatives as proposed in this project. It is therefore to be expected that the project is viewed in a positive light by community members belonging to this trust, and that the project would indeed be beneficial to this trust and its surrounding community members in terms of LED. The erection of a powerline introduced different issues which have been flagged by those farm-owners that might be affected. Issues discussed ranged from fire prevention and management concerns and recommendations (under the powerline), as well as a possible health and safety issue if such lines are constructed in close proximity to any communities and household living houses. However, as the routes along which the powerline is proposed (i.e. primarily below the escarpment area) already have existing powerlines, the effect of an addition line from a visual and tourist perspective should not be significant. Many farm-owners land has been in their families for several decades. This reinforces their attachment to the land from a cultural and individual perspective. It is therefore not surprising that impacts related to altering owners sense of land attachment have been listed as significant in the Socio-economic Impact Assessment report. Even though many recommendations are proposed to mitigate this impact, the reality is that land will be altered and that some owners might be against the project. For this reason, the socioeconomic specialist has proposed several benefit schemes in order to assist farmers to restore their income or become part of the project. Lastly, a key variable that determines how and to what extent the project influences stakeholders is whether the farm has permanent residents on them. Some of the farmowners live on their properties with their households, whereas most of the affected farms have several hamlets where traditional farm inhabitants live with their families according to historic farm labour arrangements. Proposed Mitigation Powerline The following table summarises the proposed mitigation measures suggested in the Socioeconomic Impact Assessment. Health and Safety A Community Health and Safety Plan and policy should be developed; All the project employees should be subject to a health and HIV/AIDS awareness educational programme;

17 Local health care facilities and police stations should be supported; Establishing a community policing forum could also be considered; Changes in crime patterns will need to be monitored; School programmes could be supported or initiated with a focus on crime and social pathology prevention; Community out-reach programmes could be supported or initiated to deal with risky sexual behaviours and related issues; Gates should be erected at all the entrances to the powerline servitude and traffic in and out of the project area monitored; Local residents should use an established Grievance Mechanism to issue any complaints to the project proponent. The proponent must investigate and mitigate these issues to the best of their abilities; Farm-owners should be consulted prior to the construction or upgrading of any roads; Fences should be considered along access routes; Traffic should be controlled and regulated through speed limits and safety regulations; Emergency Preparedness Plan should be developed; and Fire-fighting equipment must be kept on site. Human Resource Management A Preferential Procurement Policy should be drafted that favours employing the current local residents, including from the Waaihoek Community Trust; A Recruitment and Influx Management Plan should be developed. This should include information dissemination strategies, recruitment and supply chain transparency principles, and influx management and security arrangements; A Stakeholder Engagement Plan (SEP) should be drafted and implemented; As far as possible, security personnel should be recruited from the surrounding communities; A code of conduct should be developed for the use of security personnel; All the PAC members and PAF owners need to be informed about the roles and responsibilities of the security personnel; A Skills Development Programme should be drafted in consultation with relevant local communities including the Waaihoek Community Trust. An Employment Equity Plan should be drafted; and The proponent should consider to establish a labour desk/employment committee to manage and implement labour recruitment policies. Income-Restoration Measures for Affected Landowners Project benefits or income-restoration measures should, where relevant, be discussed between the farm owners and the proponent. Conclusion & Specialist Opinion Powerline A number of recommendations are proposed in the specialist report, which should also mitigate many of the negative issues listed. Many impacts can be sustainably mitigated and managed through proper stakeholder engagement and the involvement of farm owners and other relevant stakeholders from the inception of the project. Socio-Economic Impact Assessment Overall Significance (Post-Mitigation): (+)

18 ISSUE DESCRIPTION OF IMPACT NATURE OF IMPACT Inadequate social involvement Stimulation of economic growth Inadequate communication throughout the powerline design and planning phase could have negative social and economic implications. Employing local labour could stimulate the local economy Skills training and further training opportunities could have very positive impacts on the futures on the local people Contributing to local and regional businesses causing an improvement in local GDP Capital investment for farmers to expand their farms leading improved financial security. DIRECT DIRECT DIRECT DIRECT INDIRECT TABLE 2: WAAIHOEK POWERLINE (DEA REF: 14/12/16/3/3/2/654) IMPACTS SPATIAL SCALE (EXTENT) TEMPORAL SCALE (DURATION) CERTAINTY SCALE (LIKELIHOOD) SEVERITY / BENEFICIAL SCALE SIGNIFICANCE PRE-MITIGATION MITIGATION MEASURES PLANNING & DESIGN PHASE SOCIO-ECONOMIC IMPACT ASSESSMENT Localised Long-term Possible Severe HIGH The public participation process has been an on-going process designed to include, inform and educate individuals who may be impacted by the powerline development. CONSTRUCTION PHASE SOCIO-ECONOMIC IMPACT ASSESSMENT Short-term Study Area May Occur Very Beneficial Medium-term Regional May Occur Slightly Beneficial Short-term Regional May Occur Slightly Beneficial INDIRECT Long-term Regional Definite Very Beneficial The proponent should investigate the development of a Skills Development Programme aimed at providing the following programmes to its employees and a selected number of community members: o Core business training; o Learnerships; o Portable skills training; and o At least one community bursary per year. Employment should be managed by selecting employees according to an electronic selection system that ensures recruitment from local, impacted communities. This should ensure a fair recruitment process. An Employment Equity Plan should be drafted to provide equal job opportunities. Employment preference should be provided to local residents; In addition to appropriate HR policies and procedures, a labour desk/employment committee should be established to manage and implement labour recruitment policies. This should ensure that recruitment is done in a fair and transparent way, and that job creation opportunities are maximised; As far as possible, those labourers involved in the construction phase should be incorporated in the permanent staff for the operational phase; Attention should be paid to employment opportunities for women and disabled persons; and As far as reasonably possible, a plan for gradual replacement of expats and outsiders by local people should be SIGNIFICANCE POST- MITIGATION HIGH

19 Health and safety Stimulation of economic growth developed and implemented. This might be unfeasible, however, since the construction period would be short. OPERATIONAL PHASE SOCIO-ECONOMIC IMPACT ASSESSMENT Lightning powerlines which DIRECT Long-term Study Area May Occur Severe MODERATE An Emergency Preparedness Plan should could cause large fires be developed in case the project gives rise to the need for an emergency response. This plan should include management procedures for fire; (Mainstream has already indicated that they intend to join the local Fire Protection Association in order to obtain their inputs into the management plan) The site should have warning signs to alert the public of potential fire risks; Ensure sufficient fire breaks surrounding the powerline in accordance with the Veld Fire Act of 1998; Fire-fighting equipment must be kept on site and in proper order to enable immediate responses to fires on site; and People living and working in the areas along the powerlines should be made aware of the dangers of fire and should be informed of the Emergency Preparedness Plan. Employing local labour DIRECT Short-term Study Area May Occur Moderately The proponent should investigate the Beneficial development of a Skills Development Skills training and further DIRECT Medium-term Regional May Occur Slightly Beneficial Programme aimed at providing the training opportunities INDIRECT following programmes to its employees and a selected number of community Contributing to local and DIRECT Short-term Regional May Occur Slightly Beneficial members: regional businesses o Core business training; Capital investment for farmers to expand their farms DIRECT Long-term Regional Definite Very Beneficial o o o Learnerships; Portable skills training; and At least one community bursary per year (ideally through the Waaihoek Community Trust). Employment should be managed by selecting employees according to an electronic selection system that ensures recruitment from local, impacted communities. This should ensure a fair recruitment process. An Employment Equity Plan should be drafted to provide equal job opportunities. Employment preference should be provided to local residents such as the PAF permanent residents and Waaihoek Community Trust members;

20 Stimulation of economic growth DECOMMISSIONING PHASE SOCIO-ECONOMIC IMPACT ASSESSMENT Employing local labour DIRECT Short-term Study Area May Occur Very Beneficial Skills training and further DIRECT Medium-term Regional May Occur Slightly Beneficial training opportunities Contributing to local and DIRECT Short-term Regional May Occur Slightly Beneficial regional businesses Capital investment for INDIRECT Long-term Regional Definite Very Beneficial farmers to expand their farms In addition to appropriate HR policies and procedures, a labour desk/employment committee should be established to manage and implement labour recruitment policies. This should ensure that recruitment is done in a fair and transparent way, and that job creation opportunities are maximised; As far as possible, those labourers involved in the construction phase should be incorporated in the permanent staff for the operational phase; Attention should be paid to employment opportunities for women and disabled persons; and As far as reasonably possible, a plan for gradual replacement of expats and outsiders by local people should be developed and implemented. This might be unfeasible, however, since the construction period would be short. All the project employees should be subject to a health and HIV/AIDS awareness educational programme; The proponent could initiate programmes aimed at upgrading or lending support to local facilities, e.g. clinics and police stations. Alternatively, the proponent could assist with initiating programmes aimed at encouraging voluntary workers to patrol particular areas (especially during the construction period). Changes in crime patterns will need to be monitored in consultation with the local police and community policing forums (if these exist); Specifically for influx management, the consultant recommends that the proponent develops transparent Human Resources (HR) policies and procedures. Such procedures could include a Preferential Procurement Policy in favour of employing the current residents in local communities within 50km of the site such as the Waaihoek Community Trust; The proponent should develop a Recruitment and Influx Management Plan. HIGH

21 The proponent should develop a Stakeholder Engagement Plan (SEP) which incorporates developing collaborative management strategies for in-migration; School programmes could be supported or initiated aimed at educating children from an early age about the effects and consequences of crime and social pathologies; Community out-reach programmes could be supported or initiated to deal with issues related to unsafe sexual practices, sex work, teenage pregnancies and sexual violence; and Particular roads should be fenced and access to particular road networks should be monitored and controlled. Gates should be considered for particular road networks, and particular access routes should be denied for unauthorised individuals or cars.

22 Please note that this letter serves as a summary of my impact report and serves as a guide which makes separate reference to both the Waaihoek Wind Energy Facility EIR (14/12/16/3/3/2/655) and the Waaihoek Powerline EIR (14/12/16/3/3/2/654). Regards Anton Hough Jan Anton Hough Social Scientist EOH Coastal & Environmental Services 67 African Street Grahamstown Eastern Cape South Africa tel: +27 (46) fax: +27 (46) cell: +27(79) anton.hough@eoh.co.za