The fish farming operations of Ferme Marine de Mahebourg is initiated (All shares of the company are held by Mauritian persons and entities)

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1 1 INTRODUCTION 1.1 BACKGROUND INFORMATION The Proponent The Proponent is Ferme Marine de Mahebourg Ltd, a company incorporated as a private company limited by shares under section 24 of the Companies Act 2001 on 19 October 2000 converted itself to a Public Company on 30 June (Refer to Certificate of Incorporation attached at Appendix A). Ferme Marine de Mahebourg, Mauritius (FMM) was conceived and planned by a group of Mauritian Entrepreneurs with a vision to establish, in the tropical paradise that is Mauritius, a top class aquaculture operation to supply high quality farmed fish products to the world. These entrepreneurs perceived the project as a stepping stone to establishing in the region an aquaculture operation based on best practice gathered from around the world. Today their vision has come to fruition and a highly successful fully integrated operation from hatchery to processing has been built over a period of five years. The Company has been financed entirely by private investment and now represents an important step in achieving their vision to establish a world class aquaculture operation that exports fresh and frozen products around the world. Fresh fish is supplied by air with daily connections available worldwide. Frozen products are supplied by sea containers. A brief history of FMM is provided below: 2000 The fish farming operations of Ferme Marine de Mahebourg is initiated (All shares of the company are held by Mauritian persons and entities) 2002 Construction of the hatchery started 2003 The first cage farm site was launched Construction of a new state of the art Processing Plant as per EU Norms The operation consists of a Hatchery, Two cage farming sites and a modern fish processing facility and Offices:- FMM employs at present 102 employees from villages along the lagoon The production at present is MT per annum of red drum (ombrine) and European sea bass (le bar) The annual turn-over Amounts to Rs 56 Million About 30% of the sales are realized on Mauritius the rest is export to USA and Europe Ferme Marine de Mahebourg holds an authorisation to carry out fish farming in the sea for two fish farming zones namely FMM1 & FMM2 as listed in the First Schedule (section 8A) of the Fisheries and Marine Resource Act 2008 (refer chapter 4 hereof ). Ferme Marine de Mahebourg is duly registered with the competent authority; the establishment is approved for production of fish and fishery products meant for export (refer to Registration Certificate attached at Appendix A); the competent authority has no objection for Ferme Marine de Mahebourg to move on to commercial production of the seabass in Mauritius subject to monitoring refer to letter from the Competent Authority attached at Appendix A) 1-1

2 Ferme Marine de Mahebourg also holds three Trade Licences from Grand Port Savanne District Council which are renewed yearly (refer to Trade Licences attached at Appendix A) Code of Practices & Certification at FMM Ferme Marine de Mahabeourg adheres to the below mentioned codes of practices and has obtained the below mentioned certifications and permits FAO Code of Conduct for Responsible Fisheries Aquaculture Initiated in 1991 by the Food and Agriculture Organisation (FAO) Committee on Fisheries (COFI), developed in a multi-stakeholder consultation process, and adopted in 1995 by over 170 Member Governments of FAO, the Code of Conduct for Responsible Fisheries (CCRF) represents the most significant globally recognized international framework relating to the world s marine, coastal and inland fisheries, including aquaculture. Based on major international agreements (UNCLOS, UNCED, CBD), the voluntary Code sets out principles and international standards of behaviour for responsible practices with a view to ensuring the effective conservation, management and development of living aquatic resources, with respect for the ecosystem and biodiversity. The Code recognises the nutritional, economic, social, environmental and cultural importance of fisheries, and the interests of all those concerned with the fishery sector. The Code takes into account the biological characteristics of the resources and their environment and the interests of consumers and other users. States and all those involved in fisheries are encouraged to apply the Code and give effect to it. Section 9 of the Code deals with Aquaculture Development over 4 articles as follows: Article 9.1 Responsible development of aquaculture under national jurisdiction Article 9.2 Responsible development within transboundary aquatic ecosystems Article 9.3 Use of aquatic genetic resources Article 9.4 Responsible aquaculture at the production level The FAO Code of Conduct focuses more on production process quality than food safety, labelling or traceability issues although these are included in Article 9 (Aquaculture) and Article 11 (Post-harvest Practices and Trade). For more information visit the FAO Fisheries Department website at FEAP Code of Conduct The Federation of European Aquaculture Producers (FEAP) produced a Code of Conduct in the spring of The primary goal of this Code is to promote the responsible development and management of a viable European aquaculture sector in order to assure a high standard of quality food production while respecting environmental considerations and consumer s demands. As a Code of Conduct, it serves to establish and recommend guiding principles for those in Europe who are producing live species through aquaculture. The Code does not seek to distinguish between the species nor the types or scales of farms that are encountered within the European aquaculture sector. Its purpose is to establish common ground, through effective self-regulation, for sectoral responsibility within society and demonstrate the considerations of the production sector towards the species it rears, the environment and the consumer. FEAP has developed this Code of Conduct with specific reference to: the provisions for responsible aquaculture development contained in the FAO Code of Conduct for Responsible Fisheries (FAO, 1995); the FAO Technical Guidelines for Responsible Fisheries No. 5: Aquaculture Development (FAO, 1997); the Holmenkollen Guidelines for Sustainable Industrial Fish Farming (Oslo, 1994); the Holmenkollen Guidelines for Sustainable Aquaculture (Oslo, 1997); the ICES Code of Practice on the Introductions and Transfers of Marine Organisms (Copenhagen, 1994); Codes of Practice and Manual of Procedures for Consideration of Introductions and Transfers of Marine and Freshwater Organisms (EIFAC, 1988); the Report on the Welfare of Farmed Fish (Farm Animal Welfare Council UK, 1996). 1-2

3 It is assumed that European and national legislation will provide minimum standards for aquaculture. The Code will then serve as the basis for the development of individual national Codes of Practice in order to interpret and apply existing standards and to develop, refine or improve standards, as required. The FEAP Code of Conduct focuses on production process quality rather than food safety, labelling or traceability issues. No mandatory independent third party verification, certification and/or surveillance is included. For more information visit the FEAP website at Friends of the Sea Sustainable Seafood Friend of the Sea is a non-profit non-governative organisation (NGO), whose mission is to conserve the marine habitat. Friend of the Sea is now a main international certification project for products originating from both sustainable fisheries and aquaculture. Friend of the Sea Criteria follow the FAO - Guidelines for the Ecolabelling of Fish and Fishery Products from Marine Capture Fisheries (refer section above). In particular, only products from stocks which are NOT OVEREXPLOITED can be certified (Art. 30 FAO Guidelines). Ferme Marine de Mahebourg holds two valid Product Certificates from Friends of the Sea, one for the farming of Red Drum (Sciaenops ocellatus) and one for the farming of Sea Bass (Dicentrarchus labrax) certifying that the farming is in conformity with Friends of the Sea Criteria for Sustainable Aquaculture (refer Appendix A) United States Food and Drug Administration The U.S. Food and Drug Administration falls under the U.S. Department of Health and Human Services. Ferme Marine de Mahebourg holds a valid Certificate of Registration with the U.S. Food and Drug Administration pursuant to the Federal Food Drug and Cosmetic Act, as amended by the Bioterrorism Act of 2002 and the FDA Food Safety Modernization Act (refer Appendix A) Carbon Footprint Certificate Ferme Marine de Mahebourg was granted Blue Carbon and Green Level based on an audit for carbon footprint relating to two year of progress in A life cycle assessment from cradle-to-grave in accordance with ISO and ISO guidelines, and BSI PAS2050 recommendations for 1, 2 scopes and partial scope 3 with commuting and business travelling including all green house gasses (GHG) stipulated within the Kyoto protocol were addressed using a set of reference materials representative of the most recent and geographical relevant emission factors available and published from respected technical sources. The certification was thereafter renewed in June 2013 (refer Appendix A). 1.2 THE PROJECT IN BRIEF Mauritius enjoys a warm tropical climate year round and, situated as it is in the middle of the Indian Ocean, is free from environmental contamination. The unique geography of Mauritius ensures that the farming operations are carried out in this pristine environment for now and the future. A key consideration in all aspects of the company is to protect and enhance the environment to ensure the long-term future of the business. FMM currently manages two fish farms close to Pointe aux Feuilles in two declared Fish Farming Zones under section 8A of the Fisheries and Marine Resources Act The two sites were both selected after extensive surveys to ensure excellent water quality whilst protecting the environment. Both sites are approximately 3km from the coast where the water depth is 25m and where the current is driven by the prevailing Trade Winds. Each site has today 10 circular floating cages ranging in size from 8m, 16m and 20m in diameter with a depth of 5m to 8m. 1-3

4 FMM now seeks to expand its activity by adding three new fish farms in three declared Fish Farming Zones under section 8A of the Fisheries and Marine Resources Act The present Environmental Impact Assessment (EIA) report refers to the addition of three fish farms in the approved fish farming zones for an existing fish farming activity; undertaking which warrants an EIA licence from the Ministry of Environment and Sustainable Development under section 18 of the Environmental Protection Act THE PROJECT TEAM FMM have appointed the following main consultants to provide consultancy services for the proposed project: Environmental Engineers : Enviro-Consult Ltd Marine Specialist (Hydrodynamic Studies) : D.A.Y. Marine & Services Ltd Marine Biodiversity and Aquaculture Specialist : Yann von Arnim All consultants embarked on this project have the necessary skills and experience having been involved in other projects of similar nature. 1.4 JUSTIFICATION OF THE PROJECT The current operations of FMM include a hatchery for production of fingerlings, two marine fish farms and a modern fish processing facility. FMM currently employs 102 persons mainly from surrounding villages. The production is currently of 400 to 500 metric tons (MT) per annum of Red Drum (ombrine) and European Seabass (bar européen) with an annual turnover of Rs56 million. About 30% of the sales are done in Mauritius, the balance is exported to Europe and USA (refer section ). FMM has incurred accumulated losses of over Rs300 millions since 2007 due primarily to 1. FMM is the pioneer in fish farming in Mauritius and has devoted extensive funds in its research to work out the best suitable method and type of fish farming in the Mauritian context. 2. The production is too small (400 to 500 MT per annum) to meet the breakeven point; resulting in a too high cost price The above unviable situation had been addressed and 1. FMM has now successfully completed its research selecting two species of fish for its production - and pilot phase of its project to ascertain the validity of the research - and is ready to launch the proper aquaculture project. 2. The financial analysis indicate that the breakeven point is situated at a production of 1,2500 to 1,500 MT per annum and that the business would be viable in the long term with a production twice the breakeven point, i.e. 3,000 MT per annum. 3. In order to meet this production target, a further investment of Rs230 million is planned over the next two years and financed by the shareholders 4. Following the expansion, FMM would employ at least 220 to 250 persons, and the 5. Turnover would increase to Rs475 million per annum. In the event that FMM cannot expand is planned, the business would not be viable and further losses would not be acceptable. 1-4

5 1.5 THE TIMEFRAME FOR PROJECT IMPLEMENTATION A tentative implementation schedule for the project is detailed hereafter: Baseline Data Surveys: o new sites : July-November 2013 o existing sites : since September 2003 EIA preparation : August-December 2013 EIA application : January 2014 Obtention of EIA licence : March 2014 Installation and Operation of the fish farms Fish Farm Installation Operation 1 st additional May 2014 July nd Additional November 2014 January rd Additional May 2015 July SCOPE AND METHODOLOGY OF THE ENVIRONMENTAL IMPACT ASSESSMENT As per the Environment Protection Act 2002 (EPA2002) as amended (ACT No. 18 of 2008), the following undertaking warrants an Environmental Impact Assessment (EIA) licence from the Ministry of Environment & Sustainable Development: 14A. Fish farm in the fish farming zones under section 8A of the Fisheries and Marine Resources Act 2007 The EIA has been carried out in accordance with the Mauritius Environmental Protection Act 2002 and Regulations and other declared environmental laws. The following guidelines and reports have been consulted in the preparation of this EIA report: EIA Guidelines for Fish Farming in the Sea, Department of Environment, Ministry of Environment & NDU, Mauritius, March 2009 Composite Guidelines for the Environmental Assessment of Coastal Aquaculture Development, prepared for the Secretariat for Eastern Africa Coastal Area Management, October 1999 Opportunities for Cage Farming of Ombrine/Red Drum (Sciaenops ocellatus) in South-East Mauritius, A report for the Fishermen Investment Trust, Regional Programme for the Sustainable Management of the Coastal Zones of the Countries of the Indian Ocean (ReCoMaP), January 2009 The methodology adopted in this EIA Report has been designed to fulfil the legislative requirements for EIA, as set out in the said Act. The aim of the EIA is to identify and address environmental issues in the early part of the Project, so that environmental impacts may be identified and efforts focused on the issues of main importance. It is widely recognised that not all impacts should be studied in equal depth; key impacts have to be identified and the main investigations centred on these. The EIA is also based on consultations with interested parties and a desk-based review of available information. Additional data collection, site visits and consultations with local specialists have also been undertaken as part of the process. Details of the methodology employed to carry out specific aspects of the EIA are contained within the relevant sections of this report. 1.7 LIAISON WITH AUTHORITIES AND STAKEHOLDERS Consultation with Relevant Authorities In the context of its current operations, FMM has dealings with the relevant authorities such as the Ministry of Fisheries the competent authority, the Albion Fishing and Research Centre - the competent authority s technical centre, the District Council for it Trade Licence, etc. 1-5

6 In the context of its expansion, FMM has been/shall be primarily dealing with the Board of Investment, the Prime Minister s Office, the Ministry of Fisheries and the Fishermen Investment Trust for the matter of fish farm zone location (refer Appendix A) The EIA process will be the second step consultation with the authorities Public Participation Process FMM is the only existing major economic activity in an area, otherwise void of any large or medium scale industrial or commercial activity, and employing currently some 102 persons from the region. FMM is engaged in the area, not only economically but also socially, as described in chapter 5 hereof. For the purpose of the EIA process, a public presentation was held at FMM on Monday 23 rd December people that were present, the majority were fishermen from the region. Members of the neighbouring village councils and also a District also attended the presentation and the rest were local residents. The attendance register, presentation and notes of meeting are attached at Appendix B and forming part of the present EIA report Permit / Clearances Requested and Obtained Board of Investment FMM has made an application to the Board of Investment in April 2013 for authorisation to carry out fish farming in the sea Ministry of Fisheries FMM was granted a Letter of Authorisation in principle from the Permanent Secretary of the Ministry of Fisheries on 7 August 2013 for their fish farming expansion project at sea at three sites (refer to Letter of Authorisation attached at Appendix A) Prime Minister s Office The Letter of Reservation for the fish farming zone from the Prime Minister s Office shall be issued once the EIA licence is in place (section 8B of the Fisheries and Marine Resource Act 2007). 1.8 STRUCTURE OF THE EIA REPORT The report is prefaced by an Executive Summary, which summarises the major findings of the EIA undertaken as part of the study, and sets out recommendations to mitigate adverse environmental effects. The report is structured as follows: Chapter 1: provides a general introduction to the Project, Proponent and Project Team, a tentative timeframe for development and an outline of the scope and methodology followed in the EIA. It also reports on liaison with authorities and stakeholders. Chapter 2: describes in detail the environmental policy, institutional and legal framework under which the project will be developed Chapter 3: provides a highlight of the fishing sector in Mauritius 1-6

7 Chapter 4: provides a description of the site and the project Chapter 5: describes the social and economic engagement of FMM Chapter 6: provides a description of the existing environment in the project area that may be affected, either directly or indirectly, by the project in sufficient detail to enable an adequate assessment of the potential environmental impacts Chapter 7: identifies the areas where significant environmental impacts would potentially occur as a result of the proposed project and describes appropriate potential mitigating measures Chapter 8: proposes the environmental monitoring plan which is currently implemented and the proposed one for the installation and operation stages of the project Chapter 9: presents the conclusion of this study 1-7