Mozambique - Energy Reform and Access Project

it K E692 __ ___,g January 2003 p s f t P AM_b, *MOZAMBI"R"UE ENERGY REFORM AND ACCESS PROGRAMME i0 * ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT January, 2003  Mozambique Energy Reform and Access Programme TABLE OF CONTENTS 1 PROJECT DESCRIPTION .............................................4 1.1 Background .............................................. 4 1.2 Government policy, strategy and objectives .............................................. 5 1.3 Mozambique Energy Reform and Access Programme . ................. ...... 5 1.4 Project components .............................................. .6 1.4.1 Grid electrification and power sector reforms .................................... 6 1.4.2 Renewable energy promotion ................................... 9 1.4.3 Institutional strengthening and capacity building ................................... 10 1.4.4 Principal sub-project types ................................... 11 1.4.5 Principal project activities ..................: 11 1.5 Objective and scope of the environmental and social impact assessment .... 11 1.5.1 Objective .........................1 ... 11 1.5.2 Scope ......................... 12 1.6 Approach and methodology ......................... 12 2 BASELINE DATA ... ...................... 14 3 ENVIRONMENTAL AND SOCIAL SAFEGUARD ISSUES AND TRIGGERS ....... 14 4 LEGISLATIVE AND REGULATORY FRAMEWORK ......................... 16 4.1 LEGISLATIVE FRAMEWORK ......................... 16 4.1.1 Environmental Laws ......................... 16 4.1.2 Land Laws ......................... 20 4.2 Institutional Framework ......................... 20 4.2.1 The Ministry for the Coordination of Environmental Affairs (MICOA) ..... 20 4.2.2 MICOA and Other Ministries ......................... 22 5 DETERMINATION, ASSESSMENT AND MITIGATION OF POTENTIAL SOCIO- ECONOMIC AND ENVIRONMENTAL IMPACTS... 23 5.1 SOCIO-ECONOMIC IMPACTS ....23 5.1.1 Distribution networks and sub-stations 23 5.1.2 Diesel and gas powered generators . .29 5.1.3 Solar PV systems ..31 5.1.4 Micro-hydropower systems ..33 5. ENVIRONMENTAL IMPACTS ....36 5.2.1. Distribution networks and substations . .......................... 36 5.2.2. Diesel powered generators .. .......................... 39 5.2.3. Gas powered generators .. ......................... 40 5.2.4. Solar PV systems .. ......................... 41 5.2.5. Micro-hydropower systems .. ......................... 42 6 ANALYSIS OF ALTERNATIVES . . . ........................ 43 7 ENVIRONMENTAL MANAGEMENT PLAN for sub-projects .... 44 7.1 Framework . . . .............................. 44 7.2 Responsibilities .............................................. .. 44 7.3 Sample Specifications for Inclusion in an Environmental Management Plan 45 8 INSTITUTIONAL ASSESSMENT AND CAPACITY . .48 8.1 Institutional Framework for Implementation .48 8.2 Current Structure of DNE .49 8.3 Capacity and Training .52 9 MONITORING ..55 9.1 Objectives .............................. 55 9.2 Monitoring Roles and Responsibilities .............................. 55 9.3 Monitoring Activities ............. 58 9.4 Costs......I ...... 67 10 CONSULTATION PLAN .............................. 69 11 IMPLEMENTATION OF ESIA RESULTS .............................. 69 Environmental and Social Impact Assessment 2  LIST OF ACRONYMS AND ABBREVIATIONS CNELEC - National Electricity Council DNE - National Directorate of Energy EA - Environmental Assessment EDM - Electricidade de Mocambique EIA - Environmental Impact Assessment EMP- Environmental Management Plan ERAP - Energy Reform and Access Programme ESIA - Environmental and Social Impact Assessment FUNAE - National Energy Fund. GEF - Global Environmental Facility GHG - Greenhouse gases GoM - Government of Mozambique MICOA - Ministry for Coordination of Environmental Affairs MIREME - Ministry of Mineral Resources and Energy NCSD - National Commission for Sustainable Development NEMP - National Environmental Management Programme NGO - non-Governmental organisations PV - Photovoltaic RPF - Resettlement Policy Framework WB -World Bank  Mozambique Energy Reform and Access Programme ANNEX A - TERMS OF REFERENCE ANNEX B - BASELINE DATA ANNEX C - PRE-EVALAUTION FORM (MICOA) ANNEX D - ENVIRONMENTAL AND SOCIAL SCREENING FORM ANNEX E - SOCIO-ECONOMIC AND ENVIRONMENTA,L CHECKLISTS ANNEX F - PUBLIC PARTICIPATION for an ENVIRONMENTAL IMPACT ASSESSMENT (EIA) Environmental and Social Impact Assessment 3  Mozambique Energy Reform and Access Programme INDEX I. THE MOZAMBIQUE ENERGY REFORM AND ACCESS PROGRAMME ......................2 2. OBJECTIVE AND SCOPE OF THE ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT ..2 2.1 Objective ................................................................2 2.2 Scope ...............................................................3 3. IMPLEMENTATION ........................... ...3 4. SOCIO-ECONOMIC AND ENVIRONMENTAL IMPACTS, MITIGATION, MANAGEMENT AND MONITORING ...........................3 5. CAPACITY AND TRAINrNG ........................... 14 Environmental and Social Impact Assessment -Executive Summary 1  Mozambique Energy Reform and Access Programme 1. THE MOZAMBIQUE ENERGY REFORM AND ACCESS PROGRAMME The Government of Mozambique with support from the World Bank, is preparing an eight-year, two-phase, Energy Reform and Access Programme (ERAP). The programme's development objectives are to: i. accelerate, in a commercially viable manner, the use of electricity for economic growth and improved quality of life in un-served and under-served rural and peri- urban areas; and ii. strengthen Mozambican capacity to expand the energy sector for both domestic and export markets. The project has been broken down into four main components, which are: I. Power Sector Reforms; II. Grid Electrification; Ill. Renewable Energy Promotion; IV. Institutional Strengthening and Capacity Building. Overall responsibility for project co-ordination will be with the Ministry of Mineral Resources and Energy (MIREME). Electrification investment components will be implemented as individual sub-projects by a number of agencies within both the public and private sectors. 2. OBJECTIVE AND SCOPE OF THE ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT 2.1 OBJECTIVE It is not envisaged that the institutional and capacity building components will result in significant environmental impacts. However, some potential environmental and social impacts may arise within the following sub-components of the project: i. main grid investments; ii. independent grid investments (diesel and gas), including the existing northern Inhambane gas systems; iii. investments in institutional/household solar PV systems; and iv. micro-hydropower systems. In terms of the World Bank Environmental Classification the project is considered to be Category "B". This requires that an environmental assessment be undertaken. The objective of this study is to identify, qualify and quantify the likely negative and positive Environmental and Social Impact Assessment -Executive Summary 2  Mozambique Energy Reform and Access Programme environmental and social impacts pertaining to the four relevant sub-components and to propose the required mitigating measures to be implemented to avoid negative impacts 2.2 SCOPE The scope of work is to: i. conduct an environmental and social impact assessment (ESIA); and ii. prepare a resettlement policy framework (RPF) for the relevant components in compliance with national and World Bank policies and guidelines. This ESIA is intended to present a framework for screening, monitoring and mitigating potential impacts. The RPF is prepared as a separate document according to procedures set forth in World Bank Operational Policy 4.12 (Involuntary Resettlement). 3. IMPLEMENTATION The National Directorate for Energy (DNE) will be responsible for co-ordination of all activities associated with the ERAP. The implementation of components of the programme will be carried out by EDM (distribution lines and generators), Ministry of Health (energy supply to rural clinics and health posts and the Ministry of Education (energy supply to rural schools). The DNE will form a Safeguards Working Group (SWG) with EDM and MICOA to manage compliance with GoM and World Bank environmental and social safeguards. Its work will be supported by the proposed new Environmental Unit in DNE. For the purposes of quality assurance and assessment of capacity building needs, the first six (6) sub-projects considered by the SWG will also be reviewed and cleared by the World Bank prior to approval. It is envisaged that individual projects will be awarded to private sector contractors and that a private sector (independent) works inspector will be contracted to control quality and disbursements. The Ministry for the Coordination of Environmental Affairs (MICOA) is responsible for ensuring that environmental considerations are incorporated into the design, implementation and operational phases of individual projects. 4. SOCIO-ECONOMIC AND ENVIRONMENTAL IMPACTS, MITIGATION, MANAGEMENT AND MONITORING The potential socio-economic and environmental impacts and associated mitigation measures related to the installation and operation of distribution networks and sub- Environmental and Social Impact Assessment -Executive Summafy 3  Mozambique Energy Reform and Access Programme stations, diesel and gas powered generators, solar PV systems and micro-hydropower systems have been identified. Based on the impacts and mitigating measures a framework environmental management plan (EMP) to manage environmental impacts during the construction and operational phases of the project has been developed. In addition, an environmental monitoring plan has been prepared. The plan enables the project proponent to evaluate the success of mitigation measures as part of project supervision and, if required, to adopt corrective and improved management actions. The monitoring will involve DNE, EDM, MICOA, Educati6h and Health authorities (in the case of solar panels for schools and clinics), independent consultants, construction companies, supervising engineers, NGOs and local communities affected by the project. The potential environmental impacts, mitigation measures and monitoring activities associated with the four sub-components of the ERAP are shown in the Tables below: Environmental and Social Impact Assessment -Executive Summary 4  Mozambique Energy Reform and Access Programme Distribution Networks and Sub-stations Socio-economic impacts Socio-economic Impact Mitigation measures Monitoring Measure Phase Responsibility Issues Permanent loss of land Route lines along public Check EA Pre-construction DNE/EDM and assets due to thoroughfares or on least recommendations for construction of productive "private" land. projects affecting natural distribution lines. Compensate for any land and habitats l assets taken. Check technical design Pre-construction regarding routes Permanent loss of land, In the event of loss of Construction and DNE/Community assets and access due productive, confirm just and post-construction Fora to construction of sub- fair compensation through Independent stations. community questionnaires Consultants Temporary loss of land Careful sitting of access routes, Site visit to confirm location Construction DNE; Independent and assets during work areas and storage areas,. of infrastructure Consultant . construction. Repair damage, replace losses Site visit to confirm Post Construction DNE; MICOA, and compensate for loss of rehabilitation Independent assets (e.g. crops). Consultant In the event of loss of Construction and DNE/Community productive, confirm just a6-qd post-construction For a fair compensation through Independent _______________________ community questionnaires Consultants Cultural sites and Locate infrastructure away from Interviews with Post-construction DNE; Independent graves interfered with graveyards. Agree mitigation communities to confirm Consultant during construction. measures when disturbance is adequate measures unavoidable. Health and safety risks Apply accepted and legally Regular site visits (check Construction (at 3 DNE; Community for workers and the required national and safety standards, protective monthly) Fora; MICIA, public during international health and safety gear, latrines wash areas Independent construction. standards. etc). Consultant Loss of assets during Inforrn public of need to keep Site visits along alignment Post construction DNE/Operator/Co operation. lines tall free of vegetation. community liaison mmunity Fora Environmental and Social Impact Assessment -Executive Summary 5  Mozambique Energy Reform and Access Programme Health and safety risks Inform public of potential Site to confirm rehabilitation Post construction DNE/Operator/Co during operation. dangers of electricity. Ensure mmunity fora good maintenance of electrical installations Environmental and Social-lmpact Assessment -Executive Summary 6  Mozambique Energy Reform and Access Programme Environmental Impacts Environmental Impact Mitigation measures Monitoring Measure Phase Responsibility Issues Increased erosion Carefully design drainage Check EA Pre-construction DNE/Consulting during construction of routes for pluvial waters. recommendations for Engineers substation projects affecting natural habitats Check technical design Pre-construction DNE/ Consulting .________________________ ._______________ E n g ine ers Site visit Construction DNE/EDM Plant grasses around the Site visit Construction DNEIEDM/ construction area in order to Independent improve water absorption Consultant capacity. Littering (solid waste) Mount awareness campaigns; Check waste generation Construction DNEIEDM/lndepe by workforce during remove and dispose of solid and disposal by the ndent Consultant eates health risks & waste in suitable sites. proponents of projects negative aesthetic impact. Confirm with workforce that Construction DNE/EDM/ awareness has been Independent provided . Consultant Destruction of Restrict width of corridor to Site visit to check status of Construction and DNEIEDMIMICON indigenous vegetation minimum (e.g., never solid waste disposit immediately after Independent along the corridor, exceeding 5 metres) construction Consultant beneath the Power line Site visit Construction Reduction of sensitive During the design phase the Check technical design re Pre-construction DNE/EDM habitats route of the power lines should routes be carefully thought in order to avoid destruction of sensible h,hit'atc ci *rh oc rinrrion Environmental and Social Impact Assessment -Executive Summary 7  Mozambique Energy Reform and Access Programme habitats such as riparian Site visits design to check Construction DNE/EDM/MICOA forests. status of intact natural Independent habitats in relation to Consultant project activities Propagation of invasive Physical elimination by Confirm that Post construction DNE/MICOA/ alien plants maintenance teams. Mount, maintenance teams have Operator . awareness programmes for been trained local communities to assist in Site visits to confirm the combat against alien eradication of alien plants invasive plants. Environmental and Social Impact Assessment -Executive Summary 8  Mozambique Energy Reform and Access Programme Diesel and Gas Generation Socio-economic impacts Impact Mitigating Measure Monitoring Measures Phase Responsibility Health and safety Apply national and Continuous on-site Construction Construction company/Consulting engineers risks for workers international health review and the public and safety standards. Regular, three monthly Construction DNE/EDM/MICOA/lndependent consultant during installation. site visits Loss of land and Repair damage; Site visits to check Construction DNE/EDM/MICOA/lndependent consultant assets due to replace and/or status regarding installation. compensate for location and (if relevant) losses. compensation Site visit to confirm Post DNE/EDM/MICOA/lndependent consultant rehabilitation construction Health and safety Apply national and Continuous on site Post DNE/Operator risks during international health review Construction operation. and safety standards Environmental and Social Impact Assessment -Executive Summary 9  Mozambique Energy Reform and Access Programme Environmental Impacts Impact Mitigating Measure Monitoring Measures Phase Responsibility Soil pollution from Storage area for diesel Regular, three monthly Construction DNE/Construction company/ Consulting incorrect storage of carefully selected and site visits. As required Engineer/independent consultant diesel fuel - properly bunded: soil samples taken for (construction and (construction phase) hydrocarbon analysis construction operational phases) . Proper storage and Continuous review Post DNE/Operator/MICOA handling of fuels- construction (operational phase) Increase in sound Proper sound-proofing Site visit by noise Post DNE/Operator/MICOA/lndependent Consultant pollution of building housing the expert construction (operational phase) generator. Increase in air Equip generators with Site visit by air Post DNE/Operator/MICOA/lndependent Consultant pollution air filters. pollution expert construction (operational phase) Ensure sufficient stock of air filters to guarantee continuous usage. Oil pollution from Store used engine in Continuous review Post DNE/Operator/MICOA used engine oil drums and retum to construction (operational phase) supplier for recycling or disposal in proper sites. Environmental and Social Impact Assessment -Executive Summary 10  Mozambique Energy Reform and Access Programme Photo-voltaic Solar Panels Socio-economic impacts Impact Mitigating Measures Monitoring Phase Responsibility Loss of productive Locate units and Check technical design Pre- DNE/Consulting Engineers land due to distribution lines on regarding location of construction installation of units least productive land. units and routes and distribution Compensate for any lines (Note: solar land and assets taken. One site visit to confirm Construction DNE/construction company/Independent power units location consultant occupy very small Community interviews Construction DNE/Consulting Engineers areas and this regarding impact is highly compensation (if unlikely). applicable) Environmental Impacts Impact Mitigating Measures Monitoring Phase Responsibility Destruction of The location of the Check EA Pre- DNE/Consulting Engineers sensitive habitats solar panels should be recommendations for construction for solar panels. selected to avoid projects affecting (also see note destruction of sensitive natural habitats above) habitats Check technical design Pre- DNE/Consulting Engineers regarding location and construction routes. One site visit to check Construction DNE/Construction Company/Independent location Consultant Pollution from Old batteries properly Continuous monitoring Post DNE/Operators/School or Health authorities, improper storage stored; send back to construction Community Fora and disposal of old supplier for recycling; batteries disposal on proper I sites. Environmental and Social Impact Assessment -Executive Summary 11  Mozambique Energy Reform and Access Programme Micro-hydropower Systems. Socio-economic impacts Impacts Mitigating Monitoring Phase Responsibility Permanent loss Locate infrastructure on least Check technical Pre-construction DNE/EDM of land and productive land. Compensate design regarding assets due to for any land and assets. routes construction. Temporary loss Locate access routes, work Check location, verify Construction and DNE/ Consulting Engineers/ Community For of land and areas and storage areas on rehabilitation and post-construction a/ assets during "waste" land. Repair damage, confirm compensation Independent Consultants construction. replace losses and through community compensate for loss of assets interviews (as (e.g. crops) applicable). Cultural sites Locate infrastructure away Site visit to confirm Construction DNE; Independent Consultant interfered with from cultural sites. Agree location of during mitigation measures when infrastructure construction. disturbance is unavoidable. Site visit to confirm Post Construction DNE; MICOA; Independent rehabilitation Consultant/Community Fora Verify compensation Construction and DNE/Community Fora through community post-construction Independent Consultants interviews (if applicable) Health and safety Inform public of potential Site visit to check Post construction DNE/Operator/Community Fora risks during dangers of electricity. Ensure safety standards and (continuous) operation. good maintenance of interviews with electrical installations. Secure communities regarding installations against risk awareness. unauthorised access. Design shallow canals. Build bridges across canals. : Environmental and Social Impact Assessment -Executive Summary 12  Mozambique Energy Reform and Access Programme Environmental Impacts Impacts Mitigating Monitoring Phase Responsibility Disruption of The diversion of stream Regular site visits to Construction Phase Construction company/Consulting stream ecology water must be designed measure downstream Engineers/ Independent consultant maintain stream ecology. water quality and quantity construction, Post Construction DNE/Operator/Independent Consultants and operation Choose areas where Confirm technical Pre-construction DNE/Consulting Engineers maximum power can be design generated from the shortest diversion, i.e. selecting areas with the steepest gradient. Risk of erosion in Discharge area should be Confirm technical Pre-construction DNE/Consulting Engineers the discharge carefully selected during design area. design Avoid discharges.onto high Downstream site visit Post Construction DNE/operator/lndependent Consultant slope areas. to assess erosion Protect the discharge area (together with a with gabions, vegetation etc. hydrologist) Monitor water quality and discharge areas. Environmental and Social Impact Assessment -Executive Summary 13  Mozambique Energy Reform and Access Programme 5. CAPACITY AND TRAINING There are 21 staff in place in the technical departments and sectors of DNE of which 15 are senior level technicians. Seven sectors currently have no staff. There is currently no "environmental unit" responsible for environmental matters across department and sectors. It is recommended that a small "Environmental Unit" be created comprising existing staff members with responsibility for ensuring that environmental considerations are incorporated in all components of the ERAP. Training in environment management should be provided not only to the staff member(s) of the environmental unit but also the heefr of departments as well as technical staff of various sectors. Technical capacity to identify, manage, and monitor the environmental impacts associated with the implementation of the sub-components of the ERAP within DNE is considered to be low. Nevertheless, this lack of capacity is not considered to be an obstacle to building short/medium term capacity as the type of knowledge required to manage environmental problems is of a practical (common sense) nature rather than of an academic nature. It is recommended that independent consultants be contracted to design and run short courses (in the form of four day workshops) that deal with environmental management specific to each of the four sub-components. The design (and running) of the courses should be carried out in participation with MICOA. The workshops should include the following components: * Relevant case studies. . A practical exercise using the screening form presented as an Appendix to the main Report. A review of environmental assessment procedures. Review of environmental and land legislation. * Designing effective public awareness campaigns. Environmental and Social Impact Assessment -Executive Summary 14  Programa de Reforma e Acesso a Energia em Mo,ambique 1. INTRODUC,AO ............................. , .. 2. OBJECTIVO E AMBITO DA AVALIAQAO DE IMPACTO AMBIENTAL E SOCIAL ...2 2.1. Objectivo .2 2.2. Ambito .3 3. IMPLEMENTA,AO .3 4. IMPACTOS SOCIO:ECONOMICOS E AMBIENTAIS, MITIGAQAO, GESTAO E MONITORAMENTO ................................ ... ... ...4 5. CAPACIDADE E TRINAMENTO .13 Avaliacao de Impacto Ambiental e Social - Sumaino Executivo 1  Programa de Reforma e Acesso a Energia em Mogamblque 1. INTRODU,AO O Governo de Mo,ambique esta a preparar, com o apoio do Banco Mundial, o Programa de Reforma e Acesso a Energia (PRAE), com a dura,co de oito anos, repartidos em duas fases. Os objectivos de desenvolvimento do programa s3o: i. Acelerar, de forma comercialmente viavel, o uso da electricidade para o crescimento econ6mico e a melhoria da qualidade de vida nas areas rurais e peri-urbanas n3o servidas ou mal servidas; e , ii. Refor,ar a capacidade de Mo,ambique de expandir o sector da energia para os mercados domestico e de exporta,3o. O projecto foi subdividido em quatro componentes principais, a saber: i. Reformas de Sector de Energia; ii. Electrifica,co de Rede; iii. Promo,co da Energia Renovavel; iv. Refor,o e Capacita,co Institucional; A responsabilidade total da coordena,co do projecto sera. do Ministerio dos Recursos Minerais e Energia (MIREME). As componentes de investimento em electrifica,cao serao implementadas como sub-projectos individuais por diversos agentes dos sectores publico e privado. 2. OBJECTIVO E AMBITO DA AVALIA,CAO DE IMPACTO AMBIENTAL E SOCIAL 2.1. OBJECTIVO N3o e de esperar que as componentes de reforco e capacita,ao institucional resultem em impactos ambientais significativos. Contudo, poderao ocorrer alguns impactos ambientais e sociais potenciais nas seguintes sub-componentes do projecto: i. investimentos na rede principal; ii. investimentos no rede independente (diesel e gas), incluindo os sistemas existentes de gas do norte de Inhambane; iii. investimentos em sistemas foto-voltaicos de energia solar a nivel institucional/domestico; e iv. micro-sistemas de energia hidroelectrica. Em termos de Classifica,co do Banco Mundial, o projecto e considerado de Categoria "B". Por essa raz3o, o mesmo requer uma avalia,co de impacto ambiental. 0 objectivo deste estudo e identificar, qualificar e quantificar os potenciais impactos ambientais e Avaliagao de Impacto Ambiental e Social - Sumario Executivo 2  Programa de Reforrna e Acesso a Energia em Mogambique sociais relacionados com as quatro sub-componentes relevantes e propor as medidas de mitiga,co necessarias para a minimiza,co dos impactos negativos. 2.2. AMBITO O ambito do trabalho 6 o seguinte: i. realizar uma avalia,co de impacto ambiental e social (AIAS); e ii. preparar um quadro de politica de reassentamento (QPR) para as componentes relevantes, de acordo com politicas e directrizes nacionais e do Banco Mundial. Esta AIAS pretende ser uma base para a avalia,ao preliminar, o monitoramento e a mitiga,cao dos impactos potenciais. O QPR 6 preparado como um documento separado, de acordo com os procedimentos descritos na Politica Operacional do Banco Mundial nrmero 4.12 (Reassentamento Involunt6rio). 3. IMPLEMENTAQAO A Direc,co Nacional de Energia (DNE) ser6 responsavel pela coordena,co de todas as actividades associadas ao PRAE. A implementa,ao das componentes do programa ser6 levada a cabo pela EDM (linhas de distribui,co e geradores), pelo Minist6rio da Saude (fornecimento de energia a unidades sanit6rias rurais) e pelo Minist6rio da Educa,co (fornecimento de energia a escolas rurais). A DNE formar6 um "Safeguards Working Group" com a EDM e o MICOA para assegurar a concordancia com as normas ambientais e sociais do Governo de Moarambique e do Banco Mundial. 0 trabalho deste grupo ser6 apoiado pela nova Unidade Ambiental proposta para a DNE. Com o objectivo de garantir a qualidade e avaliar as necessidades de capacita,co institucional, os primeiros seis (6) sub-projectos considerados pelo SWG serao revistos e;acordados pelo Banco Mundial antes de serem aprovados. Prev6-se que projectos individuais venham a ser atribuidos a empreiteiros do sector privado e que um inspector de obras (independente) do sector privado seja contratado para efectuar o controle da qualidade e dos desembolsos. O Ministerio para a Coordena,co da Ac,co Ambiental (MICOA) 6 respons6vel por assegurar que as- quest6es ambientais sejam incorporadas nas fases de desenho, implementa.co e opera,co dos projectos individuais. Avaliagio de Impacto Ambiental e Social - Sumaino Executivo 3  Programa de Reforma e Acesso a Energia em Mogambique 4. IMPACTOS SOCIO-ECONOMICOS E AMBIENTAIS, MITIGAcAO, GESTAO E MONITORAMENTO Foram identificados os potenciais impactos s6cio-econ6micos e ambientais e as medidas de mitiga,co associadas, relacionadas com a instala,co e opera,co de redes e subesta,6es de distribui,co, geradores alimentados a diesel e gas, sistemas solares foto-voltaicos e micro-sistemas de energia hidroelectrica. Com base nos impactos e nas medidas de mitiga,co, foi desenvolvido um Plano de Gest3o Ambiental (PGA), como base para a gest3o dos impactos ambientais durante as fases de constru,co e de operac3o do projecto. Por outro lado, foi preparado um plano de monitoramento ambiental. 0 piano permite ao proponente do projecto avaliar o sucesso da implementa,co das medidas de mitigac3o como parte da supervis3o do projecto e, caso necessario, adoptar medidas correctivas e melhoradas de gest3o. O monitoramento envolvera a DNE, a EDM, o MiCOA, as autoridades de Educac3o e Saude (no caso de paineis solares para escolas e unidades sanitarias), consultores independentes, empresas de constru,co, supervisores de engenharia, ONG's e comunidades locais afectadas pelo projecto. Os impactos ambientais potenciais, as medidas de mitigac,o e as actividades de monitoramento associadas as quatro sub-componentes do ERAP sao apresentados nas Tabelas abaixo: Avaliagcao de Impacto Ambiental e Social - Sumaiio Executivo 4  Programa de Reforma e Acesso a Energia em Mogambique Redes de Distribuicio e Subestac6es Impactos Sc5io-economicos Impacto Medidas de mitigagdo Medidas de Monitoramento Fase Responsabilidade Perda permanente de Rotas das linhas e subestac6es ao Verifique as recomenda96es d Pre-construr,co DNE/EOM terras e bens devido a longo devias de circulagao publicas ou EIA relativo a projectos que instaiaSao. terrenos niao produtivos. Compensaco afectam habitats naturais por qualquer terreno ou bem afectado. Verificar o desenho tecnico das Pre-constru,cao DNE/EDM . . ~~~~~~~~~~~~rotas Confirmar justica nas Constru,cio e p6s- DNE/F6runs Comunitarios; compensar6es atraves de constru,co Consultor Independente questionarios a comunidade Perda permanente de Selec,cao criteriosa dos locais para Visita ao local para confirmar ConstrucAo DNE; Consultor lndependente terras e bens durante a a instalagao de vias de acesso, das localizag5o da infra-estrutura instala,cao. areas de trabaiho e de instalar,5o. 6rearmazenamento. Visita ao local para confirmar P6s-constru,ao DNE; MICOA; Consultor armazenamento. reabilitatao Independente Reparar danos, reportar perdas e Confirmar justi,a nas Construcao e p6s- DNE/ F6runs Comunitarios compensar pela perda de bens compensar,6es atraves de construgao Consultor Independente (p.ex. culturas). questionarios a comunidade Interferencia com locais Localizar a infra-estrutura longe de Entrevistas com as comunidades P6s-constru,o DNE; Consultor Independente de importincia cultural e jazigos. Acordar sobre as medidas para confirmar se as medidas jazigos de mitiga,ao nos casos em que nio sao adequadas -D e possivel evitar danos. F_' Riscos de Saude e Aplicar padroes de Saude e Visitas regulares ao local Constru,co (de tres DNE; F6runs Comunitarios; Seguran,a para Seguranca nacionais e (verificar padr6es de seguranca, em tres meses) Consultor Independente trabalhadores e publico internacionais. protec,co, estado de higiene das em geral durante a latrinas e areas de lavagem, constru,co. etc.) Perda de bens durante a Informar o publico sobre a Visita ao local ao longo do P6s-constru,co DNE/Operador/ F6runs opera,cao (ao longo da necessidade de manter as linhas alinhamento e interaccao com a Comunitarios Faixa de Proteccao). livres da interferencia de vegetag5o. comunidade Riscos de Saude e lnformar o publico sobre os perigos Visitas ao local para confirmar P6s-constru,co DNE/Operador/ F6runs Seguran,ca durante a potenciais, da electricidade. padr6es de seguranca Comunitarios operagio. Assegurar uma boa manuten,co das instalao6es electricas Avalia,ao de Impacto Ambiental e Social - Sumario Executivo 5  Programa de Refonma e Acesso a Energia em Mo,ambique Impactos Ambientais Impacto Medidas de mitigacio Medidas de Monitoramento Fase Responsabilidade Aumento da erosio Esquematizar com cuidado o Verifique as recomenda,6es Pre-constru,co DNE/ Consultores de durante a constru,ao da sistema de drenagem de aguas do EIA relativo a projectos que Engenharia subestar,co pluviais. afectam habitats naturais Verificar o desenho tecnico Pre-constru,co DNE/ Consultores de Engenharia Visita ao local Constru,ao DNE/EDM Plantar gramineas ao longo da Visita ao local Construco DNE/EDMI area de constru,Ao, para melhorar Consultor Independente a capacidade de absor,ao de 9gua. Disposi,co desordenada Fazer campanhas de Confirmar junto dos Construr,co DNE/EDM/ de lixo (s6lido) pelos consciencializa,co; remover e trabalhadores se a Consultor Independente trabalhadores. depositar lixos s6lidos em locais consciencializa,co foi apropriados. realizada Visita ao local para verificar o Construc,o e DNE/EDMIMICOA/ estado da disposi,co dos lixos imediatamente apos Consultor Independente s6lidos a construcao Destrui,co de vegeta,co Restringir o mais possivel a largura Visita ao local Construc,o Empresa de Construco / indigena ao longo do do corredor (p.ex. nunca exceder .' Consultores de Engenharia/ corredor criado para a os 5 metros) MICOA/Consultor linha electrica Independentes Reduc,ao de habitates Seleccionar a rota de forma a Verificar o desenho tecnico Pre-constru,cao DNE/EDM sensiveis evitar a destWi,co de habitates das rotas sensiveis Visita ao local para confirmar Construcao DNE/EDM/MICOAI a nao interferencia das rotas Consultor Independente com habitates sensiveis Avalia,ao de Impacto Ambiental e Social - Sumnrio Executivo 6  Programa de Reforma e Acesso a Energia em Mo,ambique Propagac,ao de plantas Eliminac,o fisica pelas equipes de Confirmar se as equipes de P6s-construcao DNE/MICOA Operador alienigenas invasoras manutencao. Envolver as manutencao foram treinadas. comunidades locais no combate as plantas invasoras. Visita ao local para confirmar a erradicac,ao das plantasl Ialienigenasl Avalia,co de Impacto Ambiental e Social - Sumario Executivo  Programa de Reforma e Acesso a Energia em Mocambique Geracio de Diesel e Gas Impactos S6cio-economicos Impacto Medidas de mitigagdo Medidas de Monitoramento Fase Responsabilidade Riscos de Saude e Aplicar padr6es Revisao continua no Constru,co Empresa de Constru,co /Consultores Seguran,a para nacionais - e terreno de Engenhara trabalhadores e internacionais de Saude Visitas tnmestrais regulares Construgo DNEIEDM/MICOAJConsultor puiblico em geral e Seguran,a. durante a instala,cao.' Independente Perda de terras e Reparar danos; repor Visitas ao local para Constru,co DNE/EDM/MICOAlConsultor bens durante a e/ou compensar pelas verificar o estado no que Independente instala,ao. perdas. diz respeito a locaiiza,ao e (se for relevante) a compensaco Visita ao local para Pos-construr,co DNE/EDM/MICOA/Consultor .___________________ _______________________ confirmar a reabilita,ao Independente Riscos de Saude e Aplicar padr6es Revisao continua no P6s-constru,o DNE/Operador Seguranca durante a nacionais e terreno opera,ao. intemacionais de Saude e Seguranca A valiagao de Impacto Ambiental e Social - Sumario Executivo  Programa de Reforma e Acesso a Energia em Mogambique impactos Ambientais Impacto Medidas de mitigagdo Medidas de Monitoramento Fase Responsabilidade Poluicao do solo Selec,co e isolamento Visitas regulares Constru,co DNE/Empresa de constru,co devido ao criterioso da area de (trimestrais) ao local. Consultor de Engenharia /Consultor armazenamento armazenamento de diesel Conforme necessario, Independente inadequado de diesel (fase de constnu,co) colher amostras de solo P6s-constru,co DNE/Operador/MICOA (fases de construc, o para analise de e de opera,cao) hidrocarbonetos Armazenamento e Revisao continua P6s-construcao DNE/Operador/MICOA manuseamento adequados de combustiveis (fase de operacao) Aumento da polui,ao Isolamento sonoro Visita ao local por P6s-construc,o DNE/Operador/MICOA/Consultor sonora (fase . de adequado na constru,co especialista em ruido Independente opera,co) do local para a instalac,o do gerador. Aumento da polui,co Equipar os geradores com Visita ao local por P6s-construc,o DNE/Operador/MICOA/Consultor atmosferica (fase de filtros de ar. especialista em poluicao Independente opera,co) atmosferica Assegurar uma reserva suficiente de filtros de ar para garantir o uso continuo. Polui,co por 6leos Armazenar 6leos usados Revisao continua P6s-constru,co DNE/Operador/MlCOA usados nos motores nos motores em tambores 4 (fase de opera,ico) e retorna-los ao fornecedor para reciclagem ou disposicao aproprada. Avalia,ao de Impacto Ambiental e Social - Sumario Executivo 9  Programa de Reforma e Acesso a Energia em Morambique Paineis Solares Foto-voltaicos impactos S6cio-econ6micos Impacto Medidas de mitigagio Medidas de Monitoramento Fase Responsabilidade Perda de terrenos Localizar unidades e Verificar desenho tecnico Pr6-construrAo ONE/Consultores de Engenharia produtivos devido a linhas de distribui$3o nos relativamente a instalar,co de terrenos menos localiza$3o das unidades unidades e linhas de produtivos. Compensar e rotas distribui$0o (Nota: por quaisquer perdas de Uma visita ao local para Construg5o DNE/Empresa de Construc5o unidades de energia terrenos ou bens confirmar a localiza$o Consultor Independente solar ocupam areas afectados. muito pequenas e Entrevistas com a Construg5o DNE/ Consultores de Engenharia este impacto e comunidade relativas a altamente compensarbes (se improvavel). aplicavel) Impactos Ambientais Impacto Medidas de mitigagao Medidas de Monitoramento Fase Responsabilidade Destruic,o de A localizac,o dos paineis Verifique as Pre-constru,co DNE/ Consultores de Engenharia habitates sensiveis solares deve ser recomendac,6es do EIA para a instalaq5o de seleccionada de modo a relativo a projectos que paineis solares (veja evitar-se a destruigao de afectam habitats naturais tambem a nota habitates sensiveis Verificar desenho tecnico Pre-constru$3o DNE/ Consultores de Engenharia acima) relativamente a localizaSao das rotas Uma visita ao local para Construg5o DNE/ Empresa de Construc5o / confirmar a localiza$3o Consultores de Engenharia Poluigio derivada de Baterias velhas Monitoramento continuo P6s-constru$o DNElOperadores/Autoridades de armazenamento e acondicionadas de forma Educa$3o e Saude, F6runs disposigao adequada; enviar ao Comunitarios inadequada de fornecedor para baterias velhas reciclagem; disposigao em local adequado. _ Ava/iag5o de Impacto Ambiental e Social - Sumario Executivo 10  Programa de Reforma e Acesso a Energia em Mo,ambique Micro-sistemas de Energia Hidroelectrica Impactos Socio-economicos Impacto Medidas de mitigagdo Medidas de Monitoramento Fase Responsabilidade Perda permanente Localizar a infra-estrutura em terrenos Verificar o desenho tecnico no que diz respeito as Pre-constru,co DNE/EDM de terras e bens menos produtivos. Compensar por rotas devido a constru,o. quaisquer perdas de terras ou bens. Perda temporaia de Localizar rotas de acesso, areas de Verificar a localizarac3 e as ac,oes de reabilita,c3 e Constru,c3 e pos- DNE/ Consultores terras e bens trabalho e de armazenamento em confirmar as compensa,6es atraves de entrevistas constru,cao de Engenharial durante a terrenos "menos uteis". Reparar os a comunidade (se aplicavel). F6runs constru,c30. danos, reparar as perdas e compensar Comunitarios/ pela perda de bens (p.ex. culturas) Consuttores .__________ _ Independentes Interferencia com Lobalizar- as infra-estruturas longe de Visita ao local para confirmar a localiza,co da infra- Constru,co DNE; Consultor locais de locais de importancia cultural. Acordar estrutura Independente importancia cultural sobre as medidas de mitiga,ao nos durante a casos em que o dano e inevitavel. Visita ao local para confirmar a reabilita,c3 P6s-constru,c3 DNE; MICOA; constru,ao. Consultor I ndependente/Foru ns Comunitarios Verificar a compensa,c3 atraves de entrevistas as Construgco e p6s DNE/F6runs comunidades (se aplicavel) construc3o Comunitarios Consultores Independentes Riscos de Saude e Informar o publico sobre os potenciais Visita ao local para verificar os padroes de P6s-constru,c3 DNE/Operador/For Seguranca durante perigos associados a electricidade. seguran,ca e efectuar entrevistas as comunidades a (continuo) uns Comunitarios a fase de operacao. Assegurar uma boa manutencao das respeito da consciencializar,5o sobre os riscos. instalar,6es electricas. Assegurar que a instalac,3 n30 esteja sujeita ao acesso nao autorizado. Constnuir canais pouco profundos. Construir pontes sobre os canais. Avaha,ao de Impacto Ambiental e Social - Sumario Executivo 11  Programa de Reforna e Acesso a Energia em Mo,ambique Impactos Ambientais Impacto Medidas de mitigarao Medidas de Monitoramento Fase Responsabilidade Perturba,co das 0 desvio das correntes de agua devera Visitas regulares ao local para medi,ico da Fase de constru,co Empresa de condi,c6es ' ser planificado de modo a manter-se a qualidade e quantidade de agua a jusante nas fases Constru,cao I ecologicas das ecologia dos cursos de agua. de constru,o e opera,co. Consultores de correntes de agua Engenharia / Consultor I ndependente P6s-constru,ao DNE/Operador/Con sultores independentes Escolher areas onde a maxima forca Confirmar o desenho tecnico Pre-constru,co DNE/Consultores podera ser gerada atraves de um desvio de Engenharia minimo, i.e. seleccionar areas com o declive mais acentuado. Risco de erosao nas A area de descarga devera ser Confirmar o desenho tecnico Pre-construcao DNE/ Consultores areas de descarga. cuidadosamente seleccionada no de Engenharia desenho do projecto. Evitar descargas em .areas de declive Visita ao local a jusante, para avaliar a erosao (com P6s-constru,o DNE/operador/Con acentuado. uum hidrologista) sultor Independente Proteger as areas de descarga com Fa,a um monitoramento da qualidade de agua e gabi6es, vegeta,ao, etc. das areas de descarga Avalia,ao de Impacto Ambiental e Social - Sumario Executivo 12  Programa de Reforma e Acesso a Energla em Mogambique 5. CAPACIDADE E TREINAMENTO Existem 21 trabalhadores no activo nos departamentos e sectores tbcnicos da DNE, dos quais 15 sao t6cnicos de nivel superior. Actualmente, existem sete sectores sem pessoal. N3o existe uma "unidade ambiental" responsavel pelas quest6es ambientais nos departamentos e sectores. Recomenda-se a cria,co de uma pequena "Unidade Ambiental" que incorpore os tecnicos ja existentes, com a responsabilidade de assegurar que as considera,ces ambientais sejam consideradas em todas as componentes do PRAE. Devera ser providenciado treinamento em materiasqFdMbientais, nao apenas ao(s) tecnico(s) da unidade ambiental, como tambem aos chefes de departamento, bem como ao pessoal tecnico dos varios sectores. A capacidade tecnica para identificar, gerir e monitorizar os impactos ambientais associados a implementa,co das sub-componentes do ERAP na DNE e considerada baixa. No entanto, esta falta de capacidade nao e considerada um obstaculo a capacita,co a curto/medio prazo, uma vez que o tipo de conhecimento necessario para a gestao dos problemas ambientais e de natureza pratica (senso comum) e n3o acad6rmca. Recomenda-se a contrata,co de consultores independentes para preparar e ministrar cursos de curta dura,co (na forma de workshops de quatro dias), que abarquem a gestao ambiental especifica para cada uma das quatro sub-componentes. A prepara,co (e realiza,co) dos cursos devem ter a participa,co do MICOA. Os workshops devem incluir as seguintes componentes: * Casos de estudo relevantes. * Um exercicio pratico usando-se a ficha de pre-avalia,co apresentada como Anexo ao Relat6rio Principal. * Uma revisao dos procedimentos de avalia,co ambiental. * Uma revisao da legisla,co Ambiental e de Terras. * Um esquema efectivo de campanha de consciencializac,o ambient Avalia,cao de Impacto Ambiental e Social - Sumario Executivo 13  Mozambique Energy Reform and Access Programme 1 PROJECT DESCRIPTION 1.1 BACKGROUND Mozambique has a rich and diversified resource base with the capacity to satisfy most of its domestic energy needs, particularly electrical energy, and to supply neighbouring countries. The country is endowed with considerable hydropower potential, estimated to be around 12,5 GW. Places within Manica, Tete and Niassa provinces have mountainous terrain with perennial streams and rivers that have pbtential for developing micro- hydropower schemes to provide mechanical and electric energy to rural populations. Mozambique receives a considerable amount of sunshine. With an annual average radiation of 5 KWh/m2/day it has very favourable conditions for photovoltaic and solar thermal energy development. Limited parts of the country, such as places in Tete and Niassa provinces and a few coastal locations, have favourable wind conditions for energy generation using wind power. At the household level the main requirement for energy is for cooking and lighting. The principal energy source for the majority of Mozambicans is biomass, particularly wood fuel. Within rural communities this accounts for nearly all the total energy consumed. Charcoal production and use is widespread in small urban settlements, district capitals and around larger towns and cities. In Mozambique only around 5% of households have access to electricity with over half of these living in Maputo and the surrounding areas in the south of the country. All provincial capitals and most of the 20 or so municipal areas are also supplied with electricity. Most of these places are connected to the main national grid, which is owned and operated by Electricidade de Mo,ambique (EDM). The principal source of electricity is from hydropower plants'. The remaining centres have diesel or gas generators that supply electricity, which is distributed through mini-grids that are independent of the main national grid system. All except very few of these independent systems are owned by the State and operated by district administrations, municipalities or other Government institutions2. However, there are still many district capitals and other areas of relatively high population concentration in rural areas that are not currently supplied with electricity or have old installed generation and distribution systems that are not, for a number of reasons, functional. In low-demand centres in rural areas electricity development, connection and operation costs per customer are higher than those in the larger towns and cities. Revenues from consumers rarely cover costs. Most consumers fall within the domestic consumer category and very little electricity is used for economic purposes. There are very few large consumers. Under the current regime of uniform tariffs throughout the country there is an implicit cross-subsidy of consumers in these low-demand centres by consumers in the larger cities and towns. . The bulk of electrical energy is supplied from hydropower stations at Cahora Bassa, Chicamba Real, Mavuzi and Corumana. 2Three independent electrical energy generation and distribution mini systems, at Vilankulo, Inhassoro and Nova Mambone in Inhambane Province, are being operated by a private sector business under a management contract. Environmental and Social Impact Assessment 4  Mozambique Energy Reform and Access Programme 1.2 GOVERNMENT POLICY, STRATEGY AND OBJECTIVES Only a small fraction of the country's vast potential energy resources are currently being exploited, despite a considerable amount of international and domestic resources being targeted at expanding the main national grid network and the number of independent generation and mini-grid systems. At the same time, access to electricity remains extremely low. This unsatisfactory situation is partly due to the high cost of extending networks and increasing the number of connections in relatively low-demand areas using traditional technologies and design standards. The three primary challenges facing the Government of Mozambique (GoM) are: i. increasing access to modern energy, in particular electricity; ii. mitigating adverse environmental, livelihood and' health impacts of traditional bio-fuels production and use; and iii. promotion and prudent management of export-oriented energy projects. In recent years the GoM has taken significant steps towards adopting a policy and legislative framework to reform the energy sector to meet these challenges. Approval of the National Energy Strategy in 2000 provided the foundation for further reforms and competitive private sector participation. Steps have already been taken to provide a more enabling legislative environment for private sector participation in the energy sector (including electricity), which until recently, has been characterised by centrally planned, State-owned and operated monopolies. Emphasis has been placed on encouraging the entry of decentralised energy schemes into the sector to accelerate the access of rural communities to modern forms of energy, particularly electricity. The corporate status of EDM has been changed and implementing regulations to permit private sector participation in all stages of electricity business were passed in 2000. EDM is to be obliged to allow access to the national transmission grid by third parties. Participation in the electricity sector in many small towns and population centres in rural areas is currently unattractive to the private sector. This is largely due to the small number of consumers in these low-demand centres, the high costs per customer of service provision and the low sales revenues. It is recognised that private sector participation may be made more commercially attractive through: - reducing the cost per customer connected by applying more appropriate, lower- cost construction and management methods; - increasing revenue through the use of cost-based and site or area specific tariffs; - providing suppliers with performance-based capital subsidies; and - employing "light" regulation; 1.3 MOZAMBIQUE ENERGY REFORM AND ACCESS PROGRAMME In support of the National Energy Strategy, the GoM, with support from the World Bank, is preparing an eight-year, two-phase, Energy Reform and Access Programme (ERAP). The programme's development objectives are to: accelerate, in a commercially viable manner, the use of electricity for economic growth and improved quality of life in un-served and under-served rural and peri-urban areas; and Environmental and Social Impact Assessment 5  Mozambique Energy Reform and Access Programme ii. strengthen Mozambican capacity to expand the energy sector for both domestic and export markets. The global objective is to contribute to the reduction of greenhouse gasses (GHG) as some of the use of diesel for power generation would be displaced by renewable energy. The proposed global environmental objective is to initiate the process of eliminating barriers that impede the development of renewable energy, in particular solar photovoltaic (PV) systems and micro-hydropower. Phase 1 of the programme/project (four years) lays the foundation for accelerating electricity access via commercially oriented rural electrification, i.e. by improving efficiencies and cost recovery and employing lower-cost options.and "smiart" subsidies, and for small-scale renewable energy development. The feasibility of the development of a domestic natural gas market will also be investigated. The project will finance investments as well as technical assistance. Phase 1 will focus on capacity building, to create an enabling environment for private business, and on preparation for further scaling-up during Phase 2. 1.4 PROJECT COMPONENTS The project has been broken down into four main components, which are I. Power Sector Reforms; il. Grid Electrification; Ill. Renewable Energy Promotion; IV. Institutional Strengthening and Capacity Building. Overall responsibility for project co-ordination will be with the Ministry of Mineral Resources and Energy (MIREME). Electrification investment components will be implemented as individual sub-projects by a number of agencies within both the public and private sectors. 1.4.1 Grid electrification and power sector reforms The GoM is aiming at electrifying all 129 district capitals and providing 60 000 new household connections, in urban, peri-urban and rural areas, by 2004. This component consists of investment and technical assistance sub-components. It will focus on accelerating access to electricity via the main national grid and via existing, rehabilitated or new independent generation and reticulation (low and medium voltage) systems. Wherever possible private businesses will participate via equity and debt capital under a legal framework for private concessions. In peri-urban areas the focus will be on increasing the number of customer connections, i.e. intensification. In the rural areas high priority is being given to the electrification of around 40 district capitals that are currently (mid-2002) un-electrified. Most of these are located in the central and northern provinces of Mozambique. It is envisaged that some rural centres3 will be connected to the main national grid, while others will be electrified via connection to independent mini-grids supplied by local diesel or gas generation plants. 3I.e. district capitals, municipalities and concentrated population centres in rural areas. Environmental and Social Impact Assessment 6  Mozambique Energy Reform and Access Programme Some existing independent generation systems have excess capacity and the focus will be on expanding reticulation and increasing the number of connections. As the main national grid is expanded it may be possible for some existing independent mini- grids to be connected to the main grid. Power supplied from the main grid would then replace that currently produced by diesel or gas generators. Main grid investments (distribution only) The objective of this sub-component is to demonstrate that, along with policy changes contemplated under the technical assistance sub-component, main grid based access can be made commercially attractive through the use of cost-based, regionally differentiated tariffs and by providing up-front capital subsidies. The sub-component will lead to selected areas being supplied with electricitV from the main national grid Sub-project sites may include: - peri-urban areas that currently do not have electricity supply. New local reticulation networks will be established; - rural centres that currently do not have electricity supply. New local reticulation networks will be established; and - rural centres that currently have independent mini-grids supplied from diesel powered or gas fired generators, operated by district administrations or municipalities. Diesel powered or gas fired generation will be abandoned. Existing local reticulation networks will be rehabilitated, where necessary, and expanded to increase the number of customer connections. Farming areas and lower population areas outside of rural centres will only be supplied if it is found economically viable to do so. Individual sub-projects will be implemented primarily by EDM in the peri-urban areas and by the private sector in the rural centres. Private sector participants will be granted concessions to distribute and supply electricity to consumers in a rural centre using local reticulation networks. The supplier will purchase electricity in bulk from EDM. EDM will construct the transmission lines to deliver power from the main national grid to sub-project sites, although such investment is not part of the present project. Main grid distribution investments supported by the project will primarily consist of local distribution lines and sub-stations to be constructed or rehabilitated on a supply-and- install basis. Where required, equipment, such as switches and meters, will be supplied in order to improve grid operation and facilitate metering for third party access to the main national grid. The, project will introduce proven lower-cost distribution network designs, standards and construction and management procedures in order to substantially reduce the cost per customer connection and per unit load (kW) served. Private sector investors in sub-projects will be offered assistance by way of up-front capital subsidies to encourage increased customer connections by offsetting the high customer connection costs incurred at the beginning. With increased customer connections the cost per connection is expected to decline. IndeDendent grid investments (generation and medium and low voltage reticulation) The objective of the independent mini-grid sub-component is to demonstrate that it is possible to interest private sector businesses to accept the risk of independent grid electrification investments, while the Government provides the appropriate enabling environments. The sub-component will lead to selected rural centres being supplied Environmental and Social Impact Assessment 7  Mozambique Energy Reform and Access Programme with electricity from local diesel powered or gas fired generators, via local reticulation networks that are independent of the main national grid. Sub-project sites may include: - rural centres that currently do not have electricity supply. New local generation capacity and reticulation networks will be established; and - rural centres that currently have independent mini-grids supplied from diesel powered or gas fired generators, operated by district administrations, municipalities or other agencies. Existing generation plant and local reticulation networks may be rehabilitated, where necessary., and continue to be used. Replacement or additional generation capacity may be installed and internal distribution networks extended to increase the number of customer connections. Farming areas and lower population areas outside of ru$rai centres will only be supplied if it is found economically viable to do so. Depending on the context, diesel powered or gas fired generation may, in time, be replaced by connection of an independent mini- grid to the main national grid, from which it would draw bulk supplies. Individual sub-projects will be implemented primarily by the private sector for selected district capitals and other rural centres with a potential for income-generating uses of electricity. Private sector investors will be granted concessions to generate and distribute electricity to consumers in a rural centre using. It is recognised that, initially, that the viability of independent systems in some centres may be insufficient to attract private sector investment. Where it appears necessary, some independent grid investments may be undertaken by the public sector (e.g. via local government authorities). Independent mini-grid investments supported by the project will mainly consist of installation of diesel powered or gas fired generation plant to be installed and/or rehabilitated and local low and medium voltage distribution lines and sub-stations to be constructed or rehabilitated. The independent grid suppliers will be offered capital subsidy on a competitive basis, subject to pre-specified criteria for service quality and household access, in order to encourage increased customer connections, Divestiture of existing independent mini-grids Inhassoro, Vilankulo and Nova Mambone, in . Inhambane province, are three independent mini-grids constructed under the Urban Household Energy Project with IDA funding. Electricity is supplied by gas fired generators. They were originally operated by GoM until 1999 when a private management firm was contracted to operate all three. The project will assist in concessioning out these independent mini- grids and will provide capital subsidies to help accelerate the connection of new customers, similar to the green-field independent grid sub-projects. Technical assistance Proposed investments in grid electrification will require, and be supported by, changes in the sector structure and the creation of an enabling environment for private sector participation that will require a number of studies. These will include: main grid unbundling and EDM reorganisation; rule for third party access to the main and independent grids; design and rules for "smart" subsidy transfer; and Environmental and Social Impact Assessment 8  Mozambique Energy Reform and Access Programme - options for private sector participation in energy. 1.4.2 Renewable energy promotion Decentralised electricity technologies based on renewable energy sources hold a considerable promise to meet potential small, diverse demands for high value applications of electricity. However, in Mozambique the awareness of solar PV energy, for example, is minimal, equipment prices are high and the solar PV system market (e.g. supply chains) is very weakly developed. This component of the project consists of investments and technical assistance sub-components. It will focus on accelerating access by rural institutions and households to electrjcity using renewable energy sources, principally solar PV energy. 1r Institutional and household solar photovoltaic systems The purpose of the solar PV systems sub-component is to: - improve access to renewable energy by rural institutions by opening up the institutional market for solar PV systems to local competitive procurement; - improve access by individual rural households to household-size solar PV systems; and - establish the financial, technical and business development intermediation mechanisms for local suppliers. The sub-component will support cash purchases of institution-sized solar PV systems as well as smaller household-sized systems. It will implemented entirely by the private secretor, primarily in rural farming areas, and will focus on rural institutions (e.g. clinics, schools, administrative posts, non-Governmental organisation (NGO) facilities and private businesses) and individual households. For rural institutional consumers the project is directed at initiating the process for meeting efficiently the modern energy needs of the institutions by providing lighting, cooling for vaccines and electricity for other appliances using solar PV systems. It is envisaged that rural institutions would purchase, with cash, institution-sized solar PV systems from private sector vendors in Mozambique. It is estimated that some 300 systems, typically of 700 Wp, will be installed. The bulk of the financing would be from GoM sector allocations, NGOs and donor- sponsored investment programmes and the remainder from Global Environmental Facility (GEF) grant support under the project. Financial mediation would be via a National Rural Electrification Fund, which could possibly be a window within the National Energy Fund (FUNAE) for channelling GEF and/or bilateral grants. The vendors will be provided with technical, business development and marketing assistance as well as possible financial assistance to encourage them to enter the solar PV retail and installation business and thus expand the solar PV market. For individual rural households and small commercial users the project aims to provide solar home systems for lighting as well as for other uses, such as radio and television. It is estimated that around 1 600 small home systems (40 Wp) and 900 mobile systems (12 Wp) will be installed. An individual rural household would use its own finance (with some possible subsidies) to purchase a fixed small home system or mobile (lantern) Environmental and Social Impact Assessment 9  Mozambique Energy Reform and Access Programme solar PV system from private sector vendors in Mozambique. Dealers may be offered competitive subsidy support and may be able to refinance consumer credit. No major infrastructure investments are associated with solar PV sub-projects, the major equipment required being solar PV panels mounted on existing infrastructure or on poles or frame structures close to the point of use. Technical assistance Technical assistance for renewable energy market development and business support will include: - a study to prepare a programme design for post-project scale-up of the project's cross-sectorial energy/education/health initiativesjt - a study to prepare a broader, technology neutral renewable energy sector development plan; and - a marketing research, market development, training and outreach programme to be operated on a cost-shared basis with local and foreign solar businesses. Micro-hydro systems Within the renewable energy promotion component technical assistance will also be provided during Phase 1, focusing on micro-hydropower programme design and capacity building in preparation for possible implementation during Phase 2. Micro- hydropower systems4 may be used for mechanical energy (e.g. grinding cereal grains) and/or for electricity generation. They could be small, household-owned units or larger systems supplying a number of people or institutions and requiring a small reticulation system. Existing micro-hydropower units could be rehabilitated or new ones constructed. It is expected that implementation will be undertaken entirely by the private sector. 1.4.3 Institutional strengthening and capacity building It is likely that this component will have two sub-components. These are: i. institutional strengthening of MIREME, including: the development of operating rules for the National Electricity Council (CNELEC), the National Directorate of Energy (DNE) and FUNAE; and the development of regulatory capacity for the electricity sector; and ii. business development and support services to the private sector. Details will be identified after an on-going institutional diagnostic study for MIREME and a study concerning private sector participation in the energy sector have been completed. 4Micro-hydro schemes range from 5 to 200 kW. Environmental and Social Impact Assessment 10  Mozambique Energy Reform and Access Programme 1.4.4 Principal sub-project types Depending on specific circumstances, the principal types of sub-project that are likely to be implemented may include: i. Main grid investments in peri-urban areas: new electricity distribution networks in currently un-electrified peri-urban areas, using electricity supplied from the main national grid (or rehabilitated and or/or expanded existing distribution netwbrks in currently partly electrified areas); ii. Main grid investments in rural centres areas: new electricity distribution networks in currently un-electrified rural centres, using electricity supplied from the main national grid (or rehabilitated and or/or expanded existing distribution networks in currently electrified centres, using electricity supplied from the main national grid to replace existing diesel or gas generation systems); iii. Independent mini-grids in rural centres (diesel generation): new diesel powered generation systems and independent electricity distribution networks in currently un-electrified rural centres (or rehabilitated and or/or expanded existing generation systems and distribution networks in centres that are currently supplied by diesel generation systems); iv. Solar powered electrification of rural institutions: new institution size solar PV systems at rural institutions; v. Solar powered electrification of rural households: new household size solar PV systems in rural areas; vi. Development of micro-hydropower: new (or rehabilitated and or/or expanded existing) micro-hydropower systems in rural areas. 1.4.5 Principal project activities For each type of sub-project one or more of the following principal activities will be undertaken during project implementation: j. Supply of electricity to new consumers (including introduction of private sector ownership and operation of generation and/or distribution systems); ii. construction of new or rehabilitation of existing electricity distribution networks (including overhead lines, transformers and sub-stations); iii. installation' of new or rehabilitation of existing diesel generation systems (including associated buildings and infrastructure); iv. installation of new institutional size solar PV systems; v. installation of new household size solar PV systems; and vi. installation of new or rehabilitation of existing micro-hydropower systems. 1.5 OBJECTIVE AND SCOPE OF THE ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT 1.5.1 Objective Of particular concern is to ensure that environmental and social issues are considered in the Phase 1 implementation and within the decision-making process in Phase 1 and Environmental and Social Impact Assessment 11  Mozambique Energy Reform and Access Programme for future Phase 2 activities. It is not envisaged that the institutional and capacity building components will result in significant environmental impacts. However, some potential environmental and social impacts may arise within the following sub- components of the project: i. main grid investments; ii. independent grid investments (diesel and gas), including the existing northern Inhambane gas systems; iii. investments in institutional/household solar PV systems; and iv. micro-hydropower systems. Significant environmental and social impacts are not envisaged. In terms of the World Bank Environmental Classification the project is considered to be Category "B". This requires that an environmental assessment be undertaken. The objective of this study is to identify, qualify and quantify the likely negative and positive environmental and social impacts pertaining to the four relevant sub-components and to propose the required mitigating measures to be implemented to avoid negative impacts. 1.5.2 Scope The scope of work is to: i. conduct an environmental and social impact assessment (ESIA); and ii. prepare a resettlement policy framework (RPF) for the relevant components in compliance with national and World Bank policies and guidelines. This ESIA is intended to address implementation issues associated with Phase 1 activities and the design of certain Phase 2 activities. It is to present a framework for screening, monitoring and mitigating potential impacts, with a process for triggering subsequent environmental assessment, if necessary. The World Bank guidelines and requirements pertaining to sector or programme-wide environmental assessment are considered to be the most applicable for the ESIA of the project. Since identification of individual sub-project sites will be on-going a representative sample of the geographic areas covered by the project is to be used. The Rural Electrification Strategy Plan (draft, October 2000) will be a main basis for site selection and institutional design under the project. It is .expected that the independent grid and renewable energy sub-components will be mainly implemented in the provinces of Inhambane, Zambezia, Nampula and Cabo Delgado. The RPF is required to be presented as a separate document, prepared following the procedures set forth in World Bank Operational Policy 4.12 (Involuntary Resettlement). The ESIA does not consider impacts associated with main grid transmission lines delivering power to specific sub-project sites. It also does not consider gas pipelines or delivery of diesel fuels to sites. 1.6 APPROACH AND METHODOLOGY Approach Environmental and Social Impact Assessment 12  Mozambique Energy Reform and Access Programme Since sites for sub-projects have yet to be finalised and no design details (e.g. distribution network plans) are available a generic rather than site-specific approach to the ESIA has had to been adopted. However, a number of possible reference sites were selected together with DNE to serve as a basis for carrying out the ESIA. Due to time constraints the work mainly followed a desktop study approach, using available secondary data and the consultant's first hand knowledge of the selected sites. Methodology Discussions were held with DNE and EDM regarding the selection of representative sub-project sites. It was ascertained that although general areas for project implementation had been considered, no specific details were available. However, a number of sites that were most likely to be included in.1the project were identified and there inclusion as reference sites for the ESIA agreed to: A detailed review of the available literature was undertaken in Maputo and an environmental and social profile built up for each sample site. Secondary data used included thematic resources maps, aerial photographs, satellite imagery, 1997 National Census publications, examples of similar projects in Mozambique and elsewhere, scientific articles, legal instruments and World Bank and Mozambican environmental assessment policies and guidelines. Recent background information on possible independent mini-grid sites was obtained from the document "Pre-feasibility Studies for Selected Isolated Grid Electricity Supply Systems" undertaken by Innovation Energie Developpment for DNE. (draft report, February 2002). Discussions were held with a number of stakeholders, primarily personnel within DNE and EDM. Using the specific circumstances of each of the sample sites, key potential environmental and social impacts that are most likely to be encountered at most sub- project sites during project implementation were identified and assessed. Impacts were assessed and rated according to: i. extent and impact: of limited (i.e. local, the proposed site and immediate environments), regional (i.e. provincial), national (i.e. Mozambique) or international scale; ii. duration: of short-, medium, or long-term lifespan; iii. intensity: either low, medium or high intensity, with quantification of the magnitude where possible; iv. probability of occurrence: either improbable, probable, highly probable or definite; v. status of impact: either negative.(i.e. a cost), positive (i.e. a benefit) or neutral; and vi. degree of confidence in predication: either low, medium or high. Based on the assessment of impacts each was rated according to its significance as follows: i. no significance; ii. moderate significance; or iii. high significance. For the more significant impacts mitigation measures were then derived and have been presented according to: Environmental and Social Impact Assessment 13  Mozambique Energy Reform and Access Programme i. the construction activity; il. the potential impact; iii. the mitigation measure or action, iv. the responsible organisation; and v. when the measure is to be implemented. These tasks enabled the development of: - an environmental and social screening form to assist determining potential adverse impacts during project implementation; and - an environmental and social checklist of generic direct and indirect impacts and mitigation measures specific to the electricity sector. A generic environmental management plan (EMP) was then developed to provide guidelines to participants (e.g. DNE, EDM, local authorities, contractors and private sector investors) for implementation of mitigation measures. Responsibilities and roles for implementation were identified and costs included wherever possible. An analysis of alternatives has been undertaken to the extent possible given the little detailed information available, including the option of not implementing the project. 2 BASELINE DATA In the absence of field studies a limited amount of desktop data has been gathered for the social economic aspects and environmental aspects for three indicative small urban areas, namely Vilanculos, Morrumbala and Mocimboa da Praia. In the absence of more detailed baseline data as well as site-specific project details, it is not possible to determine or identify site-specific impacts for each of these indicative areas. Non-the less, social economic and environmental baseline data for these indicative sites is given in annex B. 3 ENVIRONMENTAL AND SOCIAL SAFEGUARD ISSUES AND TRIGGERS According to the World Bank's (WB) Procedures on Environmental Assessment (OP 4.01 January 1999), environmental assessment (EA) for a proposed Bank-financed operation is the responsibility of the borrower (the borrower here is taken to be the Government of Mozambique, through the National Directorate of Energy (Ministry of Mineral Resources and Energy). Bank staff may assist the borrower, as appropriate. According to WB Operational Policies on Environmental Assessment (OP 4.01 January 1999) the Bank classifies proposed projects into one of four categories, depending on the type, location, sensitivity, and scale of the project and the nature and magnitude of its potential environmental impacts: Category A: A proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or Environmental and Social Impact Assessment 14  Mozambique Energy Reform and Access Programme unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. EA for a Category A project examines the project's potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. For a Category A project, the borrower is responsible for preparing a report, normally an EIA (or a suitably comprehensive regional or sectoral EA). Category B: A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas- including wetlands, forests, grasslands, and other natural habitats-are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measureOdan be designed more readily than for Category A projects. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of a Category A EA. Like a Category A EA, it examines the project's potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. The findings and results of Category B EA are described in the project documentation (Project Appraisal Document and Project Information Document). Category C: A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project. Category Fl: A proposed project is classified as Category Fl if it involves investment of Bank funds through a financial intermediary, in subprojects that may result in adverse environmental impacts. The WB task team has assigned the proposed project as a Category B Project. The consultants concur with this assignation especially insofar that all identified potential impacts for the sub-projects are site-specific; few if any of them are irreversible; and in all cases mitigation measures can be readily designed. For Category B projects the borrower should consult project-affected groups and local nongovernmental organizations (NGOs) during the EA process about the 'project's environmental aspects and takes their views into account. (OP 4.01 January 1999). In order to comply with OP 4.01 the consultants have prepared a framework for public consultation that is included in this report. For Category B projects, the Concept Review decides whether an environmental management plan (EMP) will be required. As specific details of project design and project location are not currently known, the consultants have prepared and included an indicative EMP. The Bank Procedures on Natural Habitats (OP 4.04 June 2001) notes if the environmental assessment process screening indicates the potential for significant conversion or degradation of critical or other natural habitats, the project is classified as Category A; projects otherwise involving natural habitats are classified as Category A or B, depending on the degree of their ecological impacts. The sub-projects of the Mozambique Energy Reform and Access Programme (ERAP) will be implemented in small rural towns or centres and peri-urban areas where there are few, if any, critical natural habitats remaining. In the unlikely event of critical or Environmental and Social Impact Assessment 15  Mozambique Energy Reform and Access Programme sensitive being encountered mitigation measures have been designed to eliminate potential impacts on these habitats. The Bank Procedures on Involuntary Resettlement (OP 4.12, December 2001) recognizes that the planning of resettlement activities is an integral part of preparation for Bank-assisted projects. When a proposed project is likely to involve involuntary resettlement the Task Team and borrower are required to: (a) assess the nature and magnitude of the likely displacement; (b) explore all viable alternative project designs to avoid, where feasible, or minimize displacement; (c) assess the legal framework covering resettlement and the policies of the government and implementing agencies (identifying any inconsistencies between such policies and the Bank's policy); (d) review past borrower and likely implementing age6icies' experience with similar operations; (e) discuss with the agencies responsible for resettlement the policies and institutional, legal, and consultative arrangements for resettlement, including measures to address any inconsistencies between government or implementing agency policies and Bank policy; and (f) discuss any technical assistance to be provided to the borrower. The construction of distribution lines, substations, generation plant and other project related infrastructure is unlikely to require the acquisition of land over which individuals have land rights. The permanent loss of infrastructure and other assets is likely to be only minor. Existing trees and vegetation will be cut down along or near the path of the distribution lines during construction to prevent interference with the lines or to allow access to construction sites. This represents a loss of assets belonging to affected parties, particularly in respect of productive fruit trees - these will require compensation. The land requirement for a sub-station is estimated to be relatively small - in the order of 250 M2. It is common practice, wherever possible, to site sub- stations on public land or unused "waste" lands. The nature of the subprojects, therefore, precludes large-scale resettlement. Nonetheless, the consultants have prepared a stand-alone resettlement policy framework for the ERAP. Due to the type, location an potential impacts arising from sub-projects the Bank safeguards related to Indigenous Peoples (OD 4.20, September 1991), Forestry (OP 4.36 September 1993), Projects on International Waterways (OP 7.50, June 20b1) and Safety of Dams (OP 4.37,October 2001) are not considered to be applicable. 4 LEGISLATIVE AND REGULATORY FRAMEWORK 4.1 LEGISLATIVE FRAMEWORK 4.1.1 Environmental Laws The key elements for environmental management in Mozambique are: * National Environment Management Program * Environmental Law * EIA Regulations Environmental and Social Impact Assessment 16  Mozambique Energy Reform and Access Programme 0 EIA Guidelines These elements are discussed in the following sections Also of relevance to the construction of transmission lines and substations is the Land Law. National Environmental Management Programme (NEMP) The National Environmental Management Programme (NEMP), approved by the Council of Ministers in 1995, seeks to promote and implement sound environmental policy. It was formulated by the Ministry for Co-ordination of Environmental Affairs (MICOA) as the master plan for the environment in Mozambique. It contains a National Envirohment Policy, a proposal for Framework Environmental Legislation and an Environmental Strategy. The NEMP consists of sectoral plans, for the medium and long term, which are intended to lead to sustainable development in Mozambique. MICOA has been given the authority to oversee the implementation of the NEMP. As part of this authority environmental rules and regulations are being devised and enforced. MICOA also needs to evaluate the policies of other ministries as well as their capacity to promote and implement sound environmental policy. In accordance with the NEMP, MICOA, in close co-ordination with other ministries, private and civil groups, is working towards the: * development of sectoral policies for improved environmental management; . promotion of sector legislation and of establishment of guidelines for environmental protection; and * creation of conditions for law enforcement and environmental monitoring. The Framework Environment Law The Framework Environmental Law was passed by the Mozambican Parliament in July 1997. This law acknowledges the responsibility of the Government of Mozambique in the promotion and implementation of the National Environmental Management Programme. The aims of the Law are to provide a legal framework for the use and correct management of the environment and its components and to assure the sustainable development of Mozambique. The Environmental Law is applicable to all public or private activities, which may influence the environment either directly or indirectly. Salient features of the Law include: * Those who pollute, or in any way degrade the environment, are liable and under obligation to rehabilitate the environment or to compensate for the resulting damage. The Law forbids the pollution of the soil, subsoil, water or atmosphere by any polluting substances, or any other form of degradation of the environment, which fall outside the limits stipulated by the Law. Projects and operations that are likely to have a negative impact on the environment are subject to an environmental impact assessment by independent assessors. Environmental and Social Impact Assessment 17  Mozambique Energy Reform and Access Programme * All activities that may threaten the conservation, reproduction, quality and quantity of biological resources, especially those in danger of extinction are prohibited. . To protect environmental components that have a recognised ecological and socio-economic value, environmental protection zones can be created. . Licensing of activities that are liable to cause significant environmental impacts is required. The issuance of an environmental license is dependent on an appropriate level of environmental impact assessment being completed and accepted. A National Commission for Sustainable Development (l`ZCSD), linked to the Council of Ministers, was created by a provision in the Framework Environmental Law in October 2000. This was to ensure the effective co-ordination and integration of sectoral policies and plans related to environmental management at the highest level. EIA REGULATIONS The Framework Environmental Law establishes the regime of environmental licensing based on an environmental impact assessment. Decree no. 76/98 of 29 December 1998 defines EIA Regulations for Mozambique. The Regulations are contained in 19 Articles. Key Articles are outlined below. Article 2 specifies the scope of application. The provisions contained in the Decree are applicable to all public or private activities that may have a direct or indirect impact on the environment. Activities that relate to emergency situations resulting from natural disasters are exempt from the requirement for an environment impact study. They must, however, receive the guidelines from MICOA and may be subject to a later audit. Under Article 3 MICOA's responsibilities include the power to: a) issue and publicize general directives on environmental impact assessment procedures; b) approve Terms of Reference proposed by the proponent which will guide the environmental impact studies; c) undertake reviews of environmental impact studies, in collaboration with interested public entities, civil society and affected communities; and d) issue environmental licenses based on the EIA. To begin the environmental impact assessment the proponent must present the following documentation to MICOA (Article 4): a) a description, location and characterization of the activity; b) an executive summary of the project; and c) data on the environment where the activity is located. All activities not covered in the appendix of the EIA Regulations (discussed below) but capable of causing significant environmental impact, are subject to a pre-assessment undertaken by the MICOA (Article 5). Prior to granting permission to proceed with a project, a proponent is obliged to complete an environmental screening form ('Ficha de Avalia,co') that has been developed by the Ministry (see Annex C). The pre- assessment will determine whether or not an environmental impact study is necessary. Environmental and Social Impact Assessment 18  Mozambique Energy Reform and Access Programme According to the EIA Regulations (1998) all development projects are subject to environmental screening. Article 6 refers to the contents of an environmental impact study. The preparation of an environmental impact study and monitoring program is entirely the responsibility of the proponent. An environmental impact study must contain at least the following: a) geographical location of the area of influence of the activity, as well as a description the baseline environmental situation; b) a description of the activity and its alternatives, in the planning, construction, operation and (in the case of a temporary activity) de-commissioning phases; c) a comparison of the alternatives and a prediction of the environmental impacts of each alternative; d) identification and assessment of mitigation measures'," e) an environmental management program, including the monitoring of impacts, and accident prevention and contingency plans; and f) identification of the team that carried out the study. The environmental impact study must also contain a non-technical summary covering the main issues and conclusions for purposes of public consultation. Article 7 refers to public consultation. The public consultation process, including mechanisms for receiving petitions, must be publicised by a proponent so that it reaches all affected stakeholders. MICOA must call for public hearings whenever the scale or likely effects of the project justify, or when this is requested by affected parties, public or private. Article 8 establishes the criteria for assessing a proposed activity. The criteria are: a) The number of persons and communities affected; b) The ecosystems, plants and animals affected; c) The location and size of the area affected; d) The duration and intensity of the impact; e) The direct, indirect, potential, overall and cumulative effects of the impact; f) The reversibility or otherwise of the impact. Article 9 deals with the review procedures of the environmental impact study. On receipt of an environmental impact study MICOA undertakes a technical review provided that the EIA process is in compliance with the EIA regulations. The review is undertaken on the basis of the Terms of Reference approved during the pre- assessment period. Based on the review the MICOA makes a decision on the environmental viability of the proposed activity. An Appendix in the EIA Regulations lists activities which may have significant impact on the environment and which require environmental impact studies. Activities relevant to energy projects are: * Hydroelectric power station of any capacity * High tension electrical energy transmission lines with a capacity or greater than 150KV. * Clearing, dividing and exploiting the natural vegetation cover of individual or cumulative areas greater than 100 hectares. Environmental and Social Impact Assessment 19  Mozambique Energy Reform and Access Programme . Programmes and projects that imply the permanent or temporary displacement of populations and communities. * Plans, programmes and projects that may affect, directly or indirectly, sensitive areas such as a) coral reefs b) mangroves c) natural forests d) small islands e) zones of potential erosion, including dunes along the coastline 0 areas exposed to desertification g) conservation or protected zones or arease' h) wetlands i) zones where the habitats and ecosystems are in danger of extinction j) zones of outstanding landscape beauty k) zones of archaeological, historical and cultural value that should be preserved, zones where plant or animal species threatened with extinction are located I) ground waters used for public consumption m) areas for the protection of spring and water sources. 4.1.2 Land Laws The Mozambique Land Law is of relevance to energy sector. This may apply where land is acquired for construction of substations and transmission lines, including related purposes such as borrow pits. The Land Law (1998) determines that all land is State owned and therefore may not be sold. It also makes provision for the demarcation of particular areas for partial protection such as the right of way for transmission lines. Local communities occupying land according to customary practices acquire the rights over land except where it is reserved for a particular purpose or where it is contained within a Partial Protection Zone. Mozambican nationals who have used a parcel of land continuously for a 10 year period may also acquire the rights to use and benefit from that land. Individuals or associations (national and non-national) may also acquire rights for land based on the authorisation of a formal request. The latter includes a formal consultation process with local communities and requires that other land users be identified, and agreement obtained (signatures from three to ten members of the community) for the requested land use. 4.2 INSTITUTIONAL FRAMEWORK 4.2.1 The Ministry for the Coordination of Environmental Affairs (MICOA) Environmental and Social Impact Assessment 20  Mozambique Energy Reform and Access Programme The Ministry for the Coordination of Environmental Affairs (MICOA) is the main organization responsible for the environment. Other Ministries may become involved but only where an energy project directly influences something in their sphere of operation. For example if an energy project has a potential to affect natural forests the National Directorate of Forestry and under the Ministry of Agriculture and Rural Development may become involved. The Ministry for the Coordination of Environmental Affairs (MICOA) is responsible for implementing the National Environmental Management Program and associated environmental policy and legislation. The Ministry, as indicated by its title, has as its primary function, a coordinating role. The responsibilities of MICOA are: * to revise and develop policies and sustainaBt6, inter-sectoral development plans; * promote sectoral legislation; * co-ordinate policy implementation; * educate and promote public awareness; and * create regulations During the five years of its existence MICOA has been working on the development of its organization. Currently, MICOA comprises five National Directorates each headed by a National Director. The Directorates are: * Environmental Impact Assessment; * Management of Natural Resources; * Land Planning; * Promotion of Environmental Awareness; and * Planning. MICOA is also responsible for regulating and overseeing environmental impact assessment (EIA) procedures in Mozambique. All projects likely to have significant environmental impacts are obliged by the new Environmental Law to carry out an EIA prior to authorisation. Key areas of MICOA activity include: * Environmental Impact Assessment * Environmental Audit And Inspection * Environmental Quality Standard i Environmental Impact Assessment Regulating Environmental Impact Assessments (ElAs) is one of the most important roles of MICOA. This role requires significant interaction and coordination with other government sectors involved in development and investment projects and, consequently MICOA has assumed a much more visible and higher profile. ii Environmental Audit and Inspection Environmental audit and environmental inspection are the tools specified in the Environmental Law for the control of activities that were in operation before the passing Environmental and Social Impact Assessment 21  Mozambique Energy Reform and Access Programme of environmental legislation in 1997. They also cover all activities since 1997 that were implemented with or without an environmental licence. MICOA has started to draft environmental audit and inspection regulations for internal discussion and future external consultation. The present versions of the draft regulations require technical review and improvement prior to submission to the Council of Ministers for approval. iii Environmental Standards Since 1997 MICOA has been developing environmental quality standards through the Environmental Quality Standards of Mozambique Projects with the following objectives, to: . define and prepare adequate environmental quality standards for the country; and * prepare regulations through the establishment of a national committee. The regulations must be submitted to the Council of Ministers for approval. Draft environmental standard regulations have been prepared and discussed with representatives of relevant agencies. The draft is still undergoing revision before submission to the Council of Ministries. 4.2.2 MICOA and Other Ministries Legislation stipulates that it is MICOA's role to coordinate, assess, control and evaluate the utilization of the natural resources of the country, and in doing so, to promote their preservation and rational use. Due to its role as a coordinating ministry, MICOA's performance depends to a large extent on the degree to which it manages to co-operate with the other ministries and sectors (including the energy sector) as these sectors remain responsible for the integration of environmental matters in their own sectoral programmes. This means that MICOA has to establish a working relationship with each of the sectors that deal with the environment. Due to the interlinked and variable character of the envi'ronment the significance of the working relationship will vary. DNE and MICOA should be important partners in dealing with the development of energy projects in Mozambique. MICOA and the other ministries and sectors are still defining roles, positions and modes of co-operation. This in general, has taken time and historically there has been a limited coordinating role for MICOA with, at times, periods of limited co-operation. The situation has gradually improved. At the end of 1999, with the closing of the first mandate, MICOA had become an accepted Ministry is now consolidating and strengthening its acquired position. Environmental and Social Impact Assessment 22  Mozambique Energy Reform and Access Programme 5 DETERMINATION, ASSESSMENT AND MITIGATION OF POTENTIAL SOCIO-ECONOMIC AND ENVIRONMENTAL IMPACTS 5.1 SOCIO-ECONOMIC IMPACTS 5.1.1 Distribution networks and sub-stations 5.1.1.1. Construction phase Potential impact - Permanent losses of land and assets due to the construction of overhead distribution lines It is usual practice in Mozambique that poles supporting low and medium voltage distribution lines in small rural towns are erected along the sides of streets, public thoroughfares and stream banks, through open areas and, sometimes, along the boundaries between adjacent properties. This is done so as to cause as little disturbance as possible to people and property and also serves to provide ease of access for maintenance. In peri-urban environments lines are also erected along roads and thoroughfares but some, particularly 11 kV lines, may be erected across fields. Although the legislation provides for rights of way to be associated with all types of electricity installations it is seldom necessary for people and activities to be totally excluded from rights of way associated with medium and low voltage overhead distribution lines. It is common in built up areas in Mozambique for distribution lines to be routed very close to buildings and trees as it would be impractical to do otherwise. It is envisaged that these practices will be used for main grid and off-grid sub-projects supported by ERAP. Poles will remain in the ground permanently, or at least until they are replaced or the distribution network is dismantled but very small areas of land will be lost. The overhead lines themselves occupy a very narrow band above the ground and do not themselves occupy land. Existing trees and vegetation will be cut down along or near the path of the distribution lines during constriction to prevent interference with the lines or to allow access to construction sites. This represents a loss of assets belonging to affected parties, particularly in respect of productive fruit trees. It is usual that land underneath or close to medium and low voltage distribution lines may continue to be used after construction for a variety of activities, such as the production of crops and vegetables, as long as these activities do not interfere with the distribution network. Permanent restrictions will be placed on certain activities, such as the construction of buildings and planting of tall vegetation, immediately underneath or close to the lines. For affected people this will represent some reduction in access to land, although the amounts of land involved are likely to be very small. The construction of distribution lines is, therefore, unlikely to require the acquisition of land and the permanent loss of infrastructure and other assets are likely to be only minor. Mitiqation It will be necessary to ensure that, wherever possible low and medium voltage distribution lines are routed along the sides of roads and public thoroughfares and not through property over which people have use and benefit rights. Certain problems may be encountered in situations where there has been minimal physical town planning, but Environmental and Social Impact Assessment 23  Mozambique Energy Reform and Access Programme these would need to be assessed on a case by case basis. In cases where distribution lines have to traverse land over which other people have use and benefit rights they should be routed across areas for which the loss of land and access to land represents the least impact. In the few likely situations where land has to be permanently taken for distribution lines it should be fully and fairly compensated for in terms of an agreed resettlement (and compensation) action plan. Compensation should also be provided in situations where significant permanent restrictions of use are placed on pieces of land The distribution network should also be aligned so as to cause the minimum loss of assets belonging to affected people. Where this is unavoidable the loss of any infrastructure and assets, such as fruit trees, should be fully and fairlyfcompensated for in one way or another. Potential impact - Permanent losses of land and assets due to the construction of sub-stations For a main grid sub-project the main national grid high voltage transmission lines will deliver electricity to a sub-station in or close to a peri-urban area or small rural town. From the sub-station electricity will be distributed via a medium and low voltage network to various points in the supply area. The land requirement for a sub-station is variable but should not be very large - probably in the order of 250 m2. It is common practice, wherever possible, to site sub-stations on public land or unused "waste" lands and it is unusual for land over which people have use and benefit rights to be acquired. The construction of sub-stations is, therefore, unlikely to require the acquisition of land and the permanent loss of infrastructure and other assets are likely to be only minor. Mitigation Wherever possible sub-stations should be constructed on land, which causes no, or as little displacement or interference as possible. For sub-projects in peri-urban areas and small rural towns where there is currently no electricity supply new sub-stations should be sited on unused public or "waste" lands as far as is practically possible. In some cases this may require siting a sub-station on the outskirts of, for example, a small rural town or centre. For sub-projects that involve changing the electricity supply from existing local diesel or gas powered generation to the maih national grid, sub-stations should be constructed, where feasible, on sites occupied by the existing generation plant. This also facilitates connection of the main grid supply to the existing local distribution network. In situations where land over which people have use and benefit rights has to be acquired for a sub-station, the land should be acquired in accordance with the provisions of the relevant legislation and after fair and full compensation has been paid. Wherever possible, unproductive land should be selected to minimise interference with the owner's or occupier's livelihood activities Where a sub-station interferes with existing access routes, such as footpaths, adequate alternatives should be provided that are both environmentally and socially acceptable. Environmental and Social Impact Assessment 24  Mozambique Energy Reform and Access Programme Potential impact - Temporary losses of land and assets due to construction of overhead distribution lines and sub-stations During the construction of overhead distribution lines the path of the lines will be cleared, holes dug for poles, the poles erected and the lines strung between the poles. Construction teams will need to gain access to construction sites, temporarily store soil removed from holes, store construction materials nearby and perform activities, such as concrete mixing, in the vicinity. In the process small areas of land may be temporarily lost to people who have the rights of use and benefit over the land, although the impacts of this are not expected to be significant. The nature of land use is unlikely to be permanently altered. Some temporary losses of land and assets may result from construction activities related to sub-stations. Assets belonging to people may be temporarily interfeIFd with. For instance, crops, vegetables, fruit trees, lawns and ornamental plants may be cleared, cut or damaged and paving stones may be lifted and damaged. Mitigation Construction work sites should be carefully chosen so as to cause as little interference as possible to land and assets. Where possible, public land and "waste" areas should be used. Where this is unavoidable and the temporary use of land interferes with a person's activities or livelihood suitable compensation will need to be provided. Land used temporarily should be restored to its original condition. Damaged property should be replaced, restored or otherwise compensated for. The temporary loss of productive assets, such as crops, should be compensated for in one way or another. Potential impact - Interference with cultural sites by overhead distribution lines and sub-stations The only cultural sites of significance are likely to be cemeteries within small rural towns and isolated groups of graves in peri-urban areas. While overhead distribution lines would be unlikely to cause major disturbance there may be occasions where construction activities could threaten some of these sites. Mitigation As far as is possible overhead distribution lines and sub-stations should be located so as to avoid cultural sites. Where interference is unavoidable the issue should be discussed with the affected people or authorities and suitable mitigation measures agreed to. Potential impact - Temporary job creation during construction of overhead distribution lines and sub-stations A beneficial aspect of construction activities associated with sub-projects will be the temporary employment opportunities created. The likely numbers of unskilled and semi-skilled workers required will vary from one sub-project to another but is unlikely to be very high. Preference should be given to people who are adversely affected by sub- project activities. Environmental and Social Impact Assessment 25  Mozambique Energy Reform and Access Programme Potential impact - Local business development during construction of overhead distribution lines and sub-stations It is expected that local businesses will be able to benefit from construction activities by supplying certain equipment and materials, much of which can be obtained locally. Wherever possible contractors should be obliged to purchase locally. Potential impact - Health and safety issues during construction of overhead distribution lines and sub-stations Unsafe working practices can have a significant impact on the health of workers and the public. Worker productivity may also be adversely affected'. It is anticipated that most unskilled and semi-skilled workers will be recruited'-:cally so that there will be no significant influx of workers into a particular sub-project area. The incidence of diseases normally associated with the concentration of a large work force in an area is unlikely to rise. Slight increases in incidences in crime may occur. Mitigation Worker and public health and safety should be safeguarded at all times through application of health and safety measures required by law and the adoption of internationally accepted standards. 5.1.1.2. Operation and maintenance phase Potential impact - Loss of assets during routine maintenance of distribution lines For maintenance purposes vegetation touching or threatening overhead distribution lines will need to be removed. For instance, fruit trees or branches of fruit trees may need to be removed. For affected people this represents a loss of productive assets. The losses are not expected to be significant. Mitigation Public awareness programmes dealing with necessity of maintaining distribution lines clear of vegetation should be instituted. Local residents should not plant tall-growing trees under or close to the distribution lines. It should be made clear that if they do so they will not be eligible for compensation if the trees have to be cut or removed. Potential impact - Improvements to livelihoods due to the operation of overhead distribution lines (increased access to electricity) The introduction of new distribution networks and the expansion of existing systems will enable more people to have household access to electricity in peri-urban areas and small rural centres. Benefits will include: increased availability of lighting; clean and reliable energy for heating and cooking; clean and regular energy supply for radios, televisions and other electrical appliances; Environmental and Social Impact Assessment 26  Mozambique Energy Reform and Access Programme improved health conditions from reduced smoke and fumes due to decreased use of wood fuels and petroleum products in the home; and less noise and pollution from existing small privately operated generation sets which will no longer need to be used. Potential impact - Improvements to social services and facilities due to the operation of overhead distribution lines (increased access to electricity) Evidence from existing electrification initiatives in Mozambique, especially the three Inhambane north projects, indicates that electrification promotes improved social welfare in a very short period of time. Schools will be able to provide a better learning environijment and may be used at night for additional purposes beneficial to the community as a whole, such as adult literacy classes. Clinics will be able to operate for longer hours and provide safer services because of the reliable electricity supply. Street lights will provide safer streets and will prolong the economic and social life in the small towns. The availability of electricity in previously unnerved or under-served areas will enable new or improved telecommunications services to be established. Potential impact - Health and safety issues during operation of overhead distribution lines Unsafe working practices can have a significant impact on the health of workers and the public. Illegal or inadequate wiring in homes and businesses can lead to fire or electrocution. Improper use of electricity is also a serious health risk, particularly for people and children who are not fully aware of the dangers of electricity. Poorly maintained overhead distribution lines and electrical installations may pose a threat to maintenance workers and the public. Poorly insulated components and hanging or loose lines can cause electrocution. A probable consequence of expanded economic and social life in small rural centres, due to improved access to electricity, will be an increase in the number of bars, night clubs and other entertainment focal areas. If development is uncontrolled the possibility of unhygienic conditions (i.e. accumulation of litter and stagnant water) increases. Certain social phenomena, such as increased drunkenness and prostitution are likely to occur. The chances of increased transmission of HIV/AIDS and other sexually transmitted infections may thus increase. Mitigation * Worker and public health and safety should be safeguarded at all times through application of health and safety measures required by law and the adoption of internationally accepted standards. Environmental and Social Impact Assessment 27  Mozambique Energy Reform and Access Programme To avoid improper use of electricity and accidents occurring in homes and businesses a public awareness campaign should be instituted. All overhead distribution lines and electrical installations should be properly maintained at all times to avoid dangerous situations. Components, such as pole mounted transformers, should be placed out of the normal reach of people. To prevent unauthorised access sub-stations should be adequately fenced. Gates should be fitted with secure locks. Public awareness initiatives should be used to inform workers and the public of the potential dangers of faulty components and loose wires and hanging lines. Development should be planned and controlled and facilities 'to prevent unhygienic conditions developing instituted. These may include providing adequate clean water, sanitation and refuse disposal. Public awareness campaigns should be mounted or strengthened to warn people of the dangers of unhealthy practices (e.g. poor disposal of refuse) and of contracting HIV/AIDS and other sexually transmitted infections. Potential impact - Improved business and economic development during operation It is evident from existing rural electrification projects that increased access to electricity promotes economic activities. This is supported by the economic growth witnessed in the few years that the three Inhambane north projects have been in operation. Small businesses start up or expand their existing operations. Banks are able to offer improved services. More bars and restaurants with refrigeration equipment open. Potential impact - Loss of economic opportunity and income sources during operation of overhead distribution lines With the advent of increased access to electricity (both grid based and solar PV systems) and an increased number of connections, vendors who currently make a living by selling paraffin (kerosene), fuel-wood and charcoal may lose customers, although the reduction in fuel-wood and charcoal sales will have positive environmental impacts. Local vendors who make a living by selling and/or charging car batteries which are often used for lighting will also suffer some loss of business. As time goes on many adversely affected vendors may become absorbed into other expanding business opportunities that arise because of increased access to electricity. Examples may include small shops, bars, restaurants and light bulb and small electrical appliance hawking. Job losses may result in situations where an existing generator supplied independent min-grid is connected to the main national grid and gas or diesel generation is abandoned. Mitigation 'Where possible adversely affected vendors should be given preference with respect to employment and training within the local electricity supply company Environmental and Social Impact Assessment 28  Mozambique Energy Reform and Access Programme Potential impact - Improved local environment due to change from diesel or gas generation to bulk electricity supply from the main grid Connection of existing independent mini-grids that are currently fed from diesel or gas powered generators to the main national grid will enable diesel or gas generation to be abandoned. In some cases generation capacity may be maintained for use when main grid power supply is interrupted. Noise and fumes from generation plant will be done away with. People currently living close to existing generation plant will benefit from improved health and living conditions. Potential impact - Job creation and employment during operation Local distribution networks, whether linked to the rM6in national grid or part of independent grids, are unlikely to employ a large number of people on a full-time basis. Staff will primarily be required for service line connection, line and installation maintenance, metering, billing and collection. The number of employees will increase as the networks expand and the number of connections increases. 5.1.2 Diesel and gas powered generators 5.1.2.1. Construction phase Potential impact - Permanent losses of land and assets due to the installation of small-scale generation plant In rural centres where new gas or diesel powered generation plant is to be installed as part of an independent mini-grid system the infrastructure will require land. The generation plant will be housed in a building which will not itself occupy much land. Additional land will be needed for switching and metering gear, transformers, fuel storage, service buildings, offices and loading and service areas. In most rural centres there is public and "waste land" available for this purpose so that it will be very. unlikely that other land which is currently being occupied or used by other people will be required. In rural centres where sub-projects will rehabilitate or expand existing generation plant it is likely that the existing sites will continue to be used and in most cases additional land will not be needed. The installation of generation plant is, therefore, unlikely to.require the acquisition of land and the permanent loss of infrastructure and other assets are likely to be only minor. In some instances the legislation allows people to transfer "urban" buildings among one another. In such cases the associated rights to use and benefit from the land are also transferred. The possibility for "purchasing" land for generation plant thus exists. . Mitigation Wherever possible generation plant and associated infrastructure should be installed on land which causes no or as little displacement or interference as possible. New Environmental and Social Impact Assessment 29  Mozambique Energy Reform and Access Programme generation plant should be installed on unused public or "waste" lands as far as is practically possible. In some cases this may require locating the generation plant on the outskirts of a small rural town or centre. In situations where land which is currently being occupied or used by people, or over which people have use and benefit rights, has to be acquired for the generation plant, the land should be acquired in accordance with the provisions of the relevant legislation. Where existing buildings cannot be "purchased" the land should be acquired after fair and full compensation has been paid. Wherever possible, unproductive land should be selected to minimise interference with the owner's or occupier's livelihood activities Where the land to be occupied by generation plant interferes with existing access routes, such as footpaths, adequate alternatives shagd be provided that are both environmentally and socially acceptable. Potential impact - Temporary losses of land and assets due to installation of generation plant Some temporary losses of land and assets may result from construction activities related to generation plant and infrastructure. Mitiqation As for overhead distribution lines and sub-stations. Potential impact - Temporary job creation during installation generation plant As for construction of overhead distribution lines and sub-stations the installation of generation plant and ancillary infrastructure will provide limited temporary employment opportunities. The likely numbers of unskilled and semi-skilled workers required will vary from one sub-project to another but is unlikely to be very high. Preference should be given to people who are adversely affected by sub-project activities. Potential impact - Local business development during installation of generation plant Although generation plant and associated electrical machinery and equipment will be sourced from outside the sub-project sites it is expected that local businesses will be able to supply much of the construction equipment for buildings and other infrastructure. Wherever possible contractors should be obliged to purchase locally. Local businesses that participate in the solar PV component of ERAP are expected to benefit from improved revenues resulting from sales of institutional and household solar PV systems Potential impact - Health and safety issues during installation of generation plant As for the construction of overhead distribution lines unsafe working practices can have a significant impact on the health of workers and the public and on worker productivity. Environmental and Social Impact Assessment 30  Mozambique Energy Reform and Access Programme The incidence of diseases normally associated with the concentration of a large work force in an area is unlikely to rise as the installation of generation plant does not require a large work force. Mitigation Worker and public health and safety should be safeguarded at all times through application of health and safety measures required by law and the adoption of internationally accepted standards. 5.1.2.2. Operation and maintenance phase Potential impact - Health and safety issues during o'peration of generation plant Unsafe working practices can have a significant impact on the health of workers and the public. The introduction or expansion of diesel or gas powered generators will lead to constant noise in the immediate environment of the installations. There will be increased emissions of exhaust fumes. Both of these will threaten the health of workers and the public in affected locations. Mitigation Worker and public health and safety should be safeguarded at all times through application of health and safety measures required by law and the adoption of internationally accepted standards. Generation plant and associated infrastructure should be securely fenced and access strictly controlled. Potential impact - Job creation and employment during operation of generation plant The number of people employed to operate and maintain the generation plant of existing independent mini-grid systems in Mozambique varies according to the size of the system. A typical system in a small rural centre employs between five and twelve people, this being close to the minimum number of people required. As a new distribution system is established new permanent job positions will be created. It is estimated that an additional employee is required for every additional 300 consumers connected to a system. 5.1.3 Solar PV systems 5.1.3.1. Construction phase Potential impact- Losses of land and assets due to installation of solar PV systems Institutional and household solar PV systems sub-projects will mainly affect very localised areas in rural areas, outside of the larger rural centres. Solar PV systems Environmental and Social Impact Assessment 31  Mozambique Energy Reform and Access Programme typically occupy almost negligible areas of land. They are typically installed close to the point of demand on land allocated to, or under the influence of, the institution or individual household concerned. It is therefore most unlikely that any form of displacement may occur. Only very minor temporary losses may be attributed to institutional and household solar PV sub-projects Mitigation In the very few likely cases where temporary losses of land and assets occurs suitable replacement or compensation measures should be applied. Potential impact - Local business development during installation of solar PV systems Local businesses that participate in the solar PV component of ERAP are expected to benefit from improved revenues resulting from sales of institutional and household solar PV systems 5.1.3.2 Operation and maintenance phase Potential impact - Improvements to livelihoods due to the operation of solar PV systems (increased access to electricity) The introduction of household solar PV systems will enable more rural households to have access to electricity. Depending on the capacity of individual systems potential benefits will include: - increased availability of lighting; - clean and regular energy supply for radios, televisions and other electrical appliances; - in some cases, improved health conditions from reduced smoke and fumes due to decreased use of paraffin (kerosene) for lighting in the home; and - in some cases, less expenditure on other sources of lighting, such as candles. Potential impact - Improvements to social services and facilities due to the operation of institutional solar PV systems (increased access to electricity) Rural schools will be able to provide a better learning environment and may be used at night for additional purposes beneficial to the community as a whole, such as adult literacy classes. Clinics will be able to operate for longer hours and provide safer services because of the reliable electricity supply. Clinics will be able to install refrigeration for .keeping vaccines cool. Potential impact - Health and safety issues during operation of solar PV systems Solar PV systems are generally safe. There is a small risk of electrocution or shock, particularly among people, especially children, who are unaware of the potential dangers of electricity. There are also minor health and environmental risks associated with spillages of battery acid. Environmental and Social Impact Assessment 32  Mozambique Energy Reform and Access Programme Mitigation To minimise the few health and safety risks of solar PV systems vendors should be required to educate the users of the risks and dangers. Standard safety measures should be applied to ensure that bare wires are not left exposed. Potential impact - Business development during operation of solar PV systems It is possible that improved availability of solar PV systems in rural areas will result in the promotion of economic activities. Small businesses will be able to make use of solar PV energy to operate into the hours of darkness. 5.1.4 Micro-hydropower systems 5.1.4.1 Construction phase Potential impact - Permanent losses of land and assets due to the construction of micro-hydropower systems It is envisaged that micro-hydropower system sub-projects will mainly affect very localised rural areas. These may include areas occupied by rural communities but may also include very small centres of population concentration. The principal infrastructure likely to be associated with micro-hydropower developments include intake structures on streams, delivery pipelines or canals, mill or electricity generation installations (i.e. powerhouse), return pipelines or canals, transmission or distribution lines and transformers (usually mounted on distribution line poles). The area occupied by this infrastructure is dependent on the size of a scheme and circumstances specific to each site. Where schemes are used for mechanical energy only (e.g. milling) no transmission or reticulation network is needed. Micro-hydropower systems are most likely to be set up in rural farming areas which are most often occupied by rural communities. Depending on the purpose and size of a scheme electricity may be supplied to one or two households or a small village or to a larger rural centre or small town (e.g. a small district capital or administrative post). In the case of a small rural centre being supplied with electricity the socio-economic impacts of erecting distribution lines and supplying electricity to consumers in the centre will be similar to those occurring for main grid or independent mini-grid sub- projects. Laying of pipelines and' construction of canals and powerhouses will require that small strips or areas of land are required permanently. The siting of this infrastructure is often highly dependent on technical considerations.. It is possible that local communities or individuals may have the right to use and benefit from the land in question. Any such land used for a micro-hydropower scheme would represent a permanent loss of land for the owner or occupier. The amount of land required is likely to be very small and it would be normal practice to locate infrastructure so as to result in the least interference with people and their activities (i.e. on rough, unproductive land). Environmental and Social Impact Assessment 33  Mozambique Energy Reform and Access Programme Existing trees and vegetation will be cut down on and around infrastructure sites. This may represent a loss of productive assets belonging to affected parties, particularly in respect of crops, fruit trees, pasture for livestock and, possibly buildings and other structures. While land over buried pipelines may continue to be used for certain activities, such as livestock grazing, permanent restrictions will be placed on certain activities, such as the construction of buildings and planting of crops and trees. For affected people this will represent some reduction in access to land, although the amounts of land involved are likely to be very small. The development of a micro-hydropower scheme may also result in fhe reduction in stream flow along stretches where the stream is diverted. For people who currently rely on such stretches for water supplies this would repr6sent a reduction in access to resources. The need for land to be acquired, or access to land and assets restricted, for micro- hydropower sub-projects will be highly dependent on the nature of a specific sub- project. The installation of micro-hydropower systems is, however, unlikely to require the acquisition of land. The permanent loss of infrastructure and other assets is likely to be only minor. Mitigation It will be necessary to ensure that, wherever possible, micro-hydropower infrastructure (e.g. pipelines, canals, powerhouses and distribution lines) are located along or close to roads and on public land and not through property over which people have use and benefit rights. In cases where infrastructure has to be located on land over which other people have use and benefit rights it should be sited in areas for which the loss of land and access to land represents the least impact. In the few unlikely situations where land has to be permanently taken for infrastructure it should be fully and fairly compensated for. Compensation should also be provided in situations where significant permanent restrictions of use are placed on pieces of land. The infrastructure should also be aligned so as to cause the minimum loss of assets or resources belonging to or being used by other people. Where this is unavoidable the loss of any infrastructure and assets, such as fruit trees, should be fully and fairly compensated for in one way or another. Much will depend on the relationship between the micro-hydro scheme developer and the owners or occupiers of affected land. In a situation where, for instance, a local community is the sub-project developer most of the infrastructure is likely to be on land over which the community holds the land use and benefit rights. Adversely affected individual community members will usually be catered for and compensated for in terms of local community mechanisms. Where "common" land is affected no compensation measures are likely to be applied. In a situation where an "outsider" is the sub-project proponent the micro-hydropower infrastructure is likely to be on land over which a local community or an individual holds use and benefit rights. In such a case all adversely affected individual and "common" land and assets will need to be compensated. Environmental and Social Impact Assessment 34  Mozambique Energy Reform and Access Programme Potential impact - Temporary losses of land and assets due to installation of micro-hydropower systems During the construction of micro-hydropower sub-projects trenches for pipelines may be dug, canals may be executed, the areas of powerhouses cleared and the path of the distribution lines will be cleared. Construction teams will need to gain access to construction sites, store soil removed from trenches, store construction materials nearby and perform activities, such as concrete mixing, in the vicinity. In the process small areas of land may be temporarily lost to people who have the rights of use and benefit over the land, although the impacts of this are not expected to be significant. The nature of land use is unlikely to be permanently altered. Assets belonging to people may be temporarily interfered with. For instance, fences, crops and fruit trees may be damaged, cut or cleared. tJ Mitigation Construction work sites should be carefully chosen so as to cause as little interference as possible to land and assets. Where possible, public land and "waste" areas should be used. Where this is unavoidable and the temporary use of land interferes with a person's activities or livelihood suitable compensation will need to be provided. Land used temporarily should be restored to its original condition. Damaged property should be replaced, restored or otherwise compensated for. The temporary loss of productive assets, such as crops, should be compensated for in one way or another. Potential impact - Interference with cultural sites by micro-hydropower infrastructure Micro-hydropower infrastructure might, in some cases, interfere with important cultural sites and graves. Mitigation As far as is possible infrastructure should be located so as to avoid cultural sites and graves. Where interference is unavoidable the issue should be discussed with the affected people and the relevant authorities and suitable mitigation measures agreed to and implemented. 5.1.4.2. Operation and maintenance phase Potential impact - Improvements to livelihoods due to the operation of micro- hydropower systems (increased access to electricity) Depending on the size and nature of a particular micro-hydropower system, the introduction of new schemes or the rehabilitation of existing systems will enable more people to have household access to mechanical or electrical energy in rural areas and small rural centres. Possible benefits will include: - less time spent by women grinding grain by hand - increased availability of lighting; - clean and reliable energy for heating and cooking; - clean and regular energy supply for radios, televisions and other electrical appliances; and Environmental and Social Impact Assessment 35  Mozambique Energy Reform and Access Programme - improved health conditions from reduced smoke and fumes due to decreased use of wood fuels and petroleum products in the home; Potential impact - Improvements to local economies and social services due to the operation of micro-hydropower systems (increased access to electricity) Depending on the nature and scale of a particular sub-project, the improved availability of renewable energy sources in a rural area or small rural centre is likely to stimulate economic activities and enhance social services in a manner similar to that expected for larger main-grid or independent mini-grid sub-projects. Potential impact - Health and safety issues 4uring operation of micro- hydropower systems Illegal or inadequate wiring in homes and businesses can lead to fire or electrocution. Improper use of electricity is also a serious health risk, particularly for people and children who are not fully aware of the potential dangers of electricity. Poorly maintained overhead distribution lines and electrical installations may pose a threat to maintenance workers and the public. Poorly insulated components and hanging or loose lines can cause electrocution. Open canals pose a threat to people, particularly children, and livestock who may accidentally fall in and be injured or even drowned. Mitigation To avoid improper use of electricity and accidents occurring in homes and businesses a public awareness campaign should be instituted. All infrastructure and electrical installations should be properly maintained at all times to avoid dangerous situations. Components, such as pole mounted transformers, should be placed out of the normal reach of people. To prevent unauthorised access installations should be adequately fenced and unauthorised access prevented. Public awareness initiatives should be used to inform workers and the public of the potential dangers of faulty components and loose wires and hanging lines. Canals should be designed so that they are not too deep. Bridges to allow people and livestock to cross at various points should be constructed. 5. ENVIRONMENTAL IMPACTS 5.2.1. Distribution networks and substations 5.2.1.1. Construction Phase It is anticipated that minor and temporary land and habitat disturbances will occur due to construction of new distribution lines, and only in cases where such lines do not follow existing way-leave along roads, paths, etc. Distribution routes must not go through forest or wildlife reserves as well as other ecologically sensitive areas. In cases where it is unavoidable for the distribution line to go through a national park or a Environmental and Social Impact Assessment 36  Mozambique Energy Reform and Access Programme reserve, that section of the project should be subject to: (i) a rigorous Environmental Impact Assessment; (ii) permission from the park's board or relevant authority; (iii) incorporation of the project into the management plan of the park. The construction of substations will be mostly undertaken on unproductive government reducing possible impacts. Nevertheless site specific EAs will address the potential impacts and the required mitigatory measures. Potential Impact- Increased erosion during construction of substation Erosion can occur in cases such as when excavating and levelling for the construction of foundations, due to alterations of the natural drainage patterns, erosion problems can occur; and when compacting and paving the soils, by reduction of infiltration surface and alteration of the natural drainage patterns. Mitigation In order to reduced possible erosions it is important to carefully design drainage channels for pluvial waters. Planting grasses around the construction area will improve water absorption capacity, reducing superficial water flow and its consequent soil loss. Potential Impact- Waste pollution During construction, non-hazardous wastes such as old cement bags, and domestic waste may be disposed of ad hoc, polluting the environment. It is not predicted, due to the nature of this project to use hazardous and semi-hazardous materials during construction of distribution networks and substations. Mitiqation Littering and the random discard of solid waste on the site must be prevented. Proper storage and disposal of waste must be carefully planned. Potential Impact- Aesthetic Devaluation In this phase new distribution lines would be constructed in areas where none previously, impacting on the aesthetics of the area. Mitigation A common measure to minimize such impact is to align the distribution poles behind tree lines, or other existing infrastructure, i.e. hiding the poles and lines. Potential Impact- Removal of indigenous vegetation along the corridor beneath Distribution Lines In order to construct the distribution lines, it will be necessary to open a corridor, free of obstacles, along the route, which will permit the circulation of machinery to be employed. The opening of this corridor may result in the removal of indigenous Environmental and Social Impact Assessment 37  Mozambique Energy Reform and Access Programme vegetation. In slope areas or river banks, this may result in erosion and sedimentation in drainage lines/rivers. Mitigation From previous experience it is possible to recommend for the width of this corridor to be minimal, never exceeding 5 metres. This way, the impacts on the natural indigenous vegetation will be minimized. In areas of high erosion potential especially along river banks and streams, removal of vegetation must be reduced to a minimum. Where vegetation is removed this should be restored to ensure ground cover. Potential Impact- Destruction of sensitive habitats During construction of the distribution line or construction of substations, with removal of vegetation cover there will a decrease and destruction of existing habitats, some of them that might be sensitive habitats, such as riparian or dune forests, wetlands, etc. Mitigation The route for the distribution lines needs to be carefully planned in order to avoid destruction of sensitive habitats. 5.2.1.2. Operation and maintenance phase During operation/maintenance of the distribution lines and substations minimal environmental impacts are anticipated to occur. The following are examples of potential impacts that might occur. Potential Impact- Pollution by waste being produced during maintenance of substations and Distribution Lines During maintenance of substations, semi-hazardous wastes, such as lubricants and thermic isolator may be used, and might contaminate the soil. The disposal of oil containers needs also to be considered. Mitigation Maintenance technicians have to be inducted with respect to health, safety and environmental procedures on how to handle such materials. Semi-hazardous materials need to be stored in proper storing places that are well sealed, preventing soil contamination. Semi-hazardous wastes must not be disposed ad hoc. Potential Impact- Propagation of alien plants Having a clear corridor beneath the distribution lines, where regular maintenance is conducted opens a space for invasive alien plants such as Opuntia sp. and Lantana camara, to propagate. Environmental and Social Impact Assessment 38  Mozambique Energy Reform and Access Programme Mitigation The brigades doing maintenance work along the distribution line should be trained to identify such plants and proceed to its systematic physical elimination (i.e. labour intensive manual elimination of alien plants, respecting national labour laws). They should also teach communities close to the line about the necessity to combat alien invasive plants. 5.2.2. Diesel powered generators 5.2.2.1. Construction phase Potential Impact - Destruction of sensitive habitats An area will have to be set for the generator. This area will have to be cleared and fenced out. A pavement and infrastructures will be built to store the generator, fuels and oils. During construction of this facilities, sensitive habitats can be destroyed. Mitigation The area for the generator and other infrastructure must be carefully planned to avoid destruction of sensitive habitats. 5.2.2.2. Operation/Maintenance Phase Potential Impact- Soil pollution from incorrect storage and maintenance of diesel fuel Diesel generators, require setting up areas for storage of fuel. Storage tanks need to be well constructed and maintained in order to avoid soil contamination. Pumping and transport of fuel may cause localized pollution. Mitigation The storage site needs to be carefully selected and properly bunded, for security reasons (i.e., fire incidents, etc.). Pumping and transport of fuel needs to be well managed to avoid localized pollution. Potential Impact- Increase in sound pollution Diesel generators contribute to an increase in noise pollution in the surrounding areas. Mitigation The generator should be installed inside a building that has sound proofing. The generator should be located as far away from residential homes as possible. Environmental and Social Impact Assessment 39  Mozambique Energy Reform and Access Programme Potential Impact- Increase in air pollution Diesel generators produces gases such as nitrous oxides (NOx), which, if not regulated can pose significant threats to the air quality and human health in affected communities. Mitigation The diesel generator must be equipped with proper air filters to minimize gaseous emissions to the air. The managers should ensure that there is are sufficient filters in stock to guarantee replacement as required. Potential Impact- Oil pollution from used diesel enginte oil Incorrect disposal of used diesel engine oil can pollute the soil, causing significant localized environmental impacts in soil and groundwater. Mitigation Diesel generator produces large amount of used engine oil, which must not be disposed of ad hoc. The used oil should be stored in sealed drums and sent back to manufacturer or supplier for recycling or disposal at proper sites. Sludge from oil tanks should be properly stored and disposed in adequate landfill sites in provincial capitals. Soil contaminated from such oils can be recycled with the aid of hydrocarbon digesting bacteria. 5.2.3. Gas powered generators Despite gas generators being powered by natural gas, which is considered a "clean" source of energy, the use of these generators should adhere to environmental standards. Gas generators have less environmental impacts then diesel generators, but still operate as a normal engine and use semi-hazardous materials such oil for running and maintenance. t The following environmental impacts are common on the use of this type of generators. 5.2.3.1. Construction phase Potential Impact - Destruction of sensitive habitats An area will have to be set for the gas generator. This area will have to be cleared and fenced out. A pavement and infrastructures will be built to store the generator and oils. During construction of these facilities, sensitive habitats can be destroyed. Mitigation The area for the generator and other infrastructure must be carefully planned to avoid destruction of sensitive habitats. Environmental and Social Impact Assessment 40  Mozambique Energy Reform and Access Programme 5.2.3.2. Operation and maintenance phase Potential Impact- Sound pollution Gas generators operate with an engine producing high levels of noise that may affect surrounding areas. Mitigation The generator should be installed inside a building that has sound proofing. The generator should be located as far away from residential homes. Potential Impact- Oil pollution during maintenance Incorrect storage and disposal of oils used for maintenance may result in localized pollution of the soil. Mitigation The maintenance oils needs to be well managed to avoid localized pollution. Oils and other such hazardous materials need to be stored in proper areas, and only used by technicians that have been inducted into the health, safety and environmental guidelines on how to use such materials. 5.2.4. Solar PV systems Solar photovoltaic systems is considered on of the least environmentally damaging power generation options. Therefore little environmental impacts are foreseen as a result of the implementation of this system. Nevertheless the following impacts illustrate possible impacts that need to be considered. 5.2.4.1. Construction Phase Potential Impact- Destruction of ecologically sensitive habitats for solar panels In order to set up the solar panels on the ground areas need to be cleared and a security fence constructed. This may impinge upon natural or semi-natural habitats that might be destroyed. Mitigation When choosing an area to install the solar panels it is important to select an area where there will be'as less destruction of natural habitats as possible. Open areas or disturbed land should be chosen with preference over natural areas. Environmental and Social Impact Assessment 41  Mozambique Energy Reform and Access Programme 5.2.4.2. Operation and maintenance phase Potential Impact- Pollution from improper storage and disposal of batteries Solar photovoltaic systems make use of batteries that may contain acids and lead parts. Improper storage and ad hoc disposal of these batteries may pollute the environment, causing localized pollution of soil and water. Mitigation Old batteries must not be disposed ad hoc. They should be properly stored and sent back to manufacturer or supplier for recycling or disposal on proper sites. In cases where this cannot be achieved, used batteries should be disposed in adequate landfill sites in provincial capitals. ' 5.2.5. Micro-hydropower systems Micro-hydropower systems are one of the least environmentally damaging power generation options. General Environmental Guidelines from the World Bank's Pollution Prevention Handbook can form the basis for identifying mitigatory measures for projects applying this system. The following are potential environmental impacts that need to be considered for such systems. 5.2.5.1. Construction Phase Potential Impact- Destruction of stream bank habitat The diversion canals/pipes may be located in areas which would destroy sensitive stream bank habitats. Mitigation Location of diversion canal or pipes should be carefully planned to prevent destruction of sensitive stream bank habitats, especially riparian forests. 5.2.5.2. Operation and maintenance phase Potential Impact- Disruption of stream ecology A micro hydropower system uses a portion of the stream's flow. Diverting too much of the water from the stream may negatively affect the ecology of the diverted stretch of the stream. The longer the diversion, the greater the impact on the stream ecology. Mitigation During the design and construction phase, the diversion of stream water must be carefully planned to guarantee that sufficient water is flowing, maintaining stream ecology. Environmental and Social Impact Assessment 42  Mozambique Energy Reform and Access Programme Choose areas where maximum power can be generated from the shortest diversion, i.e. selecting areas with the steepest gradient and fall. Potential Impact- Risk of erosion in the discharge area Once water passes though the micro hydropower system it is discharged back into the stream. Erosion or scouring can occur in these areas. Mitiqation During the design phase the discharge area should be carefully selected to avoid downstream impacts, namely erosion and scouring. Avoid discharges in areas with steep sided banks. Protect the discharge area with gabions or energy dissipaters that will reduce erosion and scouring. A checklist of potential environmental impacts and associated mitigating measures is given in Annex E. 6 ANALYSIS OF ALTERNATIVES The GoM is committed to the provision of electricity to all the districts of Mozambique from the main grid. Currently a small number of district capitals receive electricity from the main grid. It is envisaged that the ambitious objective will only be achieved within the next 10 to 15 years. This implies that many district capitals will rely on costly diesel generators for the foreseeable future. The ERAP project is, in effect therefore an alternative to the current and long-term electrification programme, with the aim of providing an affordable energy supply more quickly to district capitals and larger urban areas. Consequently the 'do-nothing" alternative implies a dependence based wholly on the current GoM programme to eventually expand the grid system to cover all the districts of Mozambique. Other energy options such as wind-power could be considered. However, there is currently little information about suitable geographical location within Mozambique with consistent and sufficient wind velocities to provide a reliable source of energy. This option should be taken in consideration by DNE, when more information becomes available and new technologies developed. Alternative electricity supply options, sites and routes will be considered in preparing sub-project proposals, especially in considering their potential environmental and social impacts. Environmental and Social Impact Assessment 43  Mozambique Energy Reform and Access Programme 7 ENVIRONMENTAL MANAGEMENT PLAN FOR SUB-PROJECTS 7.1 FRAMEWORK Based on the impacts and mitigating measures the proponent of a sub-project shall develop an environmental management (EMP) plan for the project which shall be compliant with the requirements of the GoM and the World Bank. The EMP shall include, but not be limited to: * A description of potential environmental and social impacts, and of the mitigation measures built into the project design and plan to avoid or mitigate them. * A description of responsibilities, lines of communication and qualifications of staff responsible for environmental management of the project, and the implementation of the EMP, including the implementation of the mitigation measures. . Detailed plans and method statements for the elements of construction for which such information is required by the EMP. * Details of how the proponent will monitor project performance in respect of the environmental standard. * Indicators that will be used to determine if environmental and social impacts are occurring, and, if so, plan appropriate further mitigation measures. The EMP thus serves to identify the principles, responsibilities, activities and methodologies that the proponent shall adopt to effectively manage environmental aspects and impacts during the construction and operational phases of the project. The EMP should serve as a working document in a format that allows for easy use by the proponent, contractor and any environmental management staff that may be contracted to assist in the implementation of the EMP in the performance of their duties. The EMP should also de drafted in a format for the construction and maintenance persbnnel to understand the requirements. The Environmental Impact Assessment with the identification of potential impacts and associated mitigating measures shall serve as the foundation for the formulation of the EMP. A list of potential and environmental impacts and mitigation measures per sub- project is given in Section 5. 7.2 RESPONSIBILITIES An indication of the responsibilities of key members implementing is given below: The Proponents 5Note: the proponent may contract an environmental officer to act on his behalf. Environmental and Social Impact Assessment 44  Mozambique Energy Reform and Access Programme * Overall responsibility for ensuring that the project EMP are prepared and implemented, and that they comply with all legislative and contract requirements * Provide a regular report to DNE and MICOA to ensure that recommendations are implemented as necessary. * Ensure non-conformities are corrected. * Ensure subcontractors fulfil their environmental obligations. * Responsible for the management of relationships between DNE, MICOA and the affected public. ".F,' * Liaison with landowners and tenants. * Ensure that landowners and farmers requirements are fulfilled. Construction Manager (Contractor) . . Organisation of labour, plant, transport and equipment to perform the work in accordance with the environmental requirements. Responsible for ensuring all sub contractors are informed about the EMP. Ensure the project is implemented in accordance with the environmental requirements stated in the EMP, * Implement agreed actions resulting from audits or inspections. 7.3 SAMPLE SPECIFICATIONS FOR INCLUSION IN AN ENVIRONMENTAL MANAGEMENT PLAN Location and planning of infrastructure (construction of substations, distribution networks, micro-hydropower schemes and installation of diesel and gas turbine plants) General conditions: * Infrastructure will be constructed in areas that minimize the potential for environmental and socio-economic impacts. . The proponent will comply with all relevant laws and regulations in Mozambique related to land rights and protection of the environment disposal. ,Specific. conditions may preclude construction of infrastructure in the following circumstances: * In any area in which vegetation is pristine.