Key environmental and social issues and mitigationGiven KPLC’s ongoing engagement with institutions such as the World Bank and African Development Bank, compliance with environmental and social standards that are in general alignment with IFC’s Performance Standards is integral to their operations. KPLC have a dedicated Environmental, Health and Safety (“EHS”) Department staffed with qualified individuals and actively works towards continually improving environmental and social performance.
The Company has presented plans to address the potential environmental and social impacts to ensure that the project will, upon implementation of the specific agreed mitigation measures, comply with policies and standards internal to the company, applicable national laws and regulations, IFC’s Performance Standards on Social and Environmental Sustainability and the applicable World Bank Group (“WBG”) EHS Guidelines. The information about how these potential impacts will be addressed by the project is summarized in the paragraphs that follow, and in the project’s Environmental and Social Action Plan (“ESAP”) which is disclosed with this document.
Environmental, Health, and Safety (EHS) Management and Organization
Guided by a clearly defined Safety, Health and Environmental (“SHE”) Policy, KPLC’s overarching approach to managing environmental and social issues is contained in their Environmental and Social Management Framework (ESMF). As explained in the Framework, every project is subject to an initial screening process, the specific objective of which is to ensure the Company’s distribution and transmission projects “are designed and implemented in an environmentally and socially sustainable manner, taking into account Kenya’s relevant sector legislation as well as the donors’ Safeguard Policies”. The findings from the process are documented in an Environmental and Social Screening Form.
Kenya has relatively developed environmental legislation and the Environmental Management and Coordination Act of 1999 (“EMCA”) defines specific activities which require an Environmental Impact Assessment (“EIA”). KPLC’s activities that require an EIA include the construction of transmission lines and electrical sub-stations. The Environmental (Impact Assessment and Audit) Regulations of 2003 define the approach to EIA’s and the National Environmental Management Authority (“NEMA”) is the relevant authority responsible for implementation of EMCA and the associated Regulations. In accordance with the latter, the majority of KPLC’s projects require an EIA and approval from NEMA prior to construction commencing. All projects that require an EIA have a project specific Environmental Management Plan (“EMP”) that is implemented by KPLC, or the third party contractors, depending on who is responsible for construction. In addition to the EIA and as per the approach outlined in the Resettlement Policy Framework, a Resettlement Action Plan is compiled for projects where resettlement and or compensation is required; this aspect is discussed further in the sections that follow.
In 2007, KPLC formed a dedicated Health, Safety and Environment (“HSE”) Department which is staffed by the Departmental Manager, four environmental and social specialists, two socio-economists, a forestry officer and seven safety engineers and officers. All staff are qualified relative to their positions and are either located at the head office in Nairobi, or within the regions. The screening process is undertaken by the project implementation team in consultation with the HSE Department and representatives from NEMA. Most of the EIA’s are undertaken by external consultants who are accredited with NEMA, though EIA’s for smaller projects such as new 33 kV lines and off grid power projects may be undertaken by KPLC, depending on the availability of personnel.
The primary focus of the EHS department is on addressing environmental and social issues during the construction phase of projects. Typically during the operations environmental issues are limited and focused on waste management. Occupational health and safety (“OHS”) is however a key issue during both the construction and operational phases, and public safety is of specific relevance during operations. KPLC’s approach to OHS and public safety is detailed in the discussion of Performance Standard 2 below.
The KPLC EHS Department monitors and audits projects against compliance with the EMP and as per the Certificate of Approval issued by NEMA for each project, an annual project audit is required; this audit report is then submitted to NEMA for review.
Given every EIA has a project specific EMP, KPLC personnel need to be familiar with each management plan resulting in a uncoordinated approach to environmental management in the construction phase of projects. To improve environmental management in this phase allied to ensuring a consistent regulated approach to all projects, including those for which an EIA is not necessary, KPLC will develop a standardized EMP to be applied to all projects. Thereafter and as required, an addendum may then be compiled for projects that require project specific mitigation measures.
In addition to the regular auditing during construction, a number of projects are identified annually for an internal technical audit. This includes a review of the project EIA and the extent to which the findings were implemented, along with the conditions of approval as defined in the EIA Certificate of Approval. The audit findings are then reported to senior management. Monthly SHE reports are compiled and include information on the status quo of EIA’s and audits, key issues such as spills and waste management requirements, conservation efforts and awareness campaigns.
KPLC is accredited with ISO 9001, an internationally recognized quality management system. A key focus is on ensuring materials supplied are of an acceptable quality and as per the specifications ordered. In accordance with the Public Procurement and Disposal Act of 2033, KPLC has an Inspection and Acceptance Committee for procurement that vets all the quality of materials received. In addition, KPLC’s Research and Development Department prequalify all suppliers and undertake factory inspections prior to prequalification. This department also reviews new products and equipment available within the industry such that KPLC is up date with best available practice and products.
Labor and Working Conditions
KPLC has some 13,000 employees, of which 22% are women. Of these 8,543 are employed on a permanent basis or have a 3 year contract with the Company. Of the remaining employees, 1000 are employed on a temporary basis in that they have 2 or 3 month contracts with KPLC that are generally renewable. Finally, 4,500 individuals are employed on a daily basis and are generally artesians and craftsmen involved in construction projects. All employees, including the daily workers, have written contracts. In accordance with national law, no individuals under the age of 18 years are employed and the Company reviews personal details prior to employment to confirm an individual’s age.
National legislation allows for employees to join unions and all employees, aside from the management staff and daily workers, are unionized. Unionized members are affiliated with the Kenya Electrical Traders and Allied Workers Union (“KETAWU”) and there is a two year signed collective bargaining agreement with the Union that is currently being revised. While daily workers are currently not unionized, KETAWU is in discussions with KPLC to assess whether these employees may join the Union.
Human resources are managed by the Human Resources and Administration Division which is divided into four departments including that related to Benefits and Staff Relations, Human Resources Training, Human Resources Planning and Recruitments and Administration. Of the 300 employees within the broader division, approximately 225 are dedicated to human resources management and there is representation in all the regions.
The Company has documented staff regulations and procedures which apply to all staff with a common set of requirements for unionized and non-unionized staff, allied to specific requirements for unionized or non-unionized staff. These define terms of service, allowances, leave and medical benefits, retrenchment procedures and a non-discrimination and harassment policy. The Company also has an agreed grievance mechanism for unionized and nonunionized staff. However, KPLC do not have a Human Resources Policy that defines the Company’s approach to managing employees. Thus a Human Resources Policy will be developed consistent with this Performance Standard.
All potential employees are subject to a medical exam prior to formal employment and there is medical scheme for employees whereby they and their immediate family are allocated a specific amount of funds to assist with medical related issues. KPLC has a clearly defined and documented HIV/AIDS Policy and in the event that employees are infected, they are provided with anti-retrovirals up to a pre-defined monetary amount.
Training requirements are managed by the Human Resources Training Department and all employees are subject to induction training. Ongoing training is provided to all employees, including contractors, and this is defined via an annual documented needs assessment for all the divisions. Thereafter, a training schedule is defined and implemented. KPLC has a training school and training is either undertaken at the school, or in the field. Aside from the training of staff involved in construction and operational activities, there is also ongoing training for drivers of vehicles and motorcycles inclusive of defensive driving tactics. A fleet management system involving tracking devices is currently being established which allows speed, location, fuel consumption and stop/start times to be recorded and assessed. In the financial year ending June 2011, KPLC spent in excess of $3.2 million on training and the World Bank has provided KPLC with $1 million to support training initiatives for a period of 4 years.
KPLC’s commitment to providing a safe and healthy workplace environment is defined in the company SHE Policy. The Personal Protective Equipment requirements for all staff are detailed in the staff regulations and procedures according to the category of work they are involved in, and this is provided free to employees. KPLC has defined standards and work instruction for the maintenance of equipment and employees are required to undertake a competency test prior to being allowed to undertake specific tasks. Equally, various activities require a permit prior to being initiated and these may be only issued by individuals who have completed a competency test relative to the task for which a permit is required. As per national OHS legislation, there is a OHS committee in each region comprising management and union members. All committee members are required to undergo 30 hours of OHS training within one week. These committees oversee the management of OHS in the respective regions and report on OHS related issues. Consolidated monthly SHE reports are compiled and submitted to KPLC’s Managing Director and CEO. Information included in the report relates to the accident frequency rate, causes of injuries, general safety statistics including fatalities, lost time injuries and minor injuries relative to KPLC staff, contractors and the public, details of the incidents that have occurred, and occupational medical examinations and first aid training completed.
All construction projects require a qualified safety engineer experienced in electrical projects and approval is required from KPLC prior to their appointment. All contracts require compliance with national OHS legislation, along with requirements that may be specific to the project. In addition, KPLC undertakes ad hoc safety audits of construction projects.
The accident frequency rate per 100,000 hours worked was 1.4 (against a target of 1.7) and 1.0 (against a target of 1.2) in 2010 and 2011 respectively. For comparative purposes, United State reference data for the sector indicates an accident frequency rate of 0.5. However, KPLC is continually seeking to improve its target, and thus reduce the accident frequency rate.
Pollution Prevention and Abatement
As discussed, potential environmental impacts during the construction phase are managed via implementation of the project specific EMP’s which will be further reinforced via application of the standardized EMP to be applied to all projects.
All transformers are fitted with bunded oil sumps located below the transformer which can accommodate 110% of the total oil capacity of the transformers. On the newer transformers, waste water from these areas is discharged via an oil water separator. Additionally, plugs on distribution transformers are welded shut to limit the potential for theft of oil. All fuel storage facilities for the off grid generators are also bunded. To formalize the management of refilling and maintenance operations and the cleanup of oil or fuel should it be required, KPLC will develop a procedure for these activities taking into account the need for the safe disposal of contaminated material.
Transformer oil, or insulating oil, consists of a highly refined mineral oil which is stable at high temperatures and has dielectric (electrical insulating) properties. It is primarily used as a coolant and is recycled for reuse in the transformers. KPLC has two oil treatment re-generation units which allows for periodic heat treatment of this oil to remove impurities. One is located at the transformer repair yard in Nairobi, and the other at the repair yard in Mombasa; there is another transformer repair yard in Eldoret. The repair yard in Nairobi was established in the 1960’s and although the areas under roof are sealed, all the external areas are constructed of interlocking paving. New and repaired transformers are stored on the paved areas and there is evidence of ongoing spills throughout the site. Thus in agreement with IFC, KPLC will agree on a plan to rehabilitate the site inclusive of measures to contain potential spills and improve stormwater management. In addition, the Company will undertake a contamination assessment of the site and based on the finding thereof, the need for cleanup requirements will be defined.
Impurities extracted in the oil treatment regeneration units are contained within the units and disposal is only required after some 5-7 years. At the time of disposal, the method is agreed with NEMA. In Kenya the use of Polychlorinated Biphenyl’s (“PCB”) in transformer oil in Kenya ceased in 1985, however there is no evidence of a formalized approach to identifying transformers with PCB’s and thus eliminating oils containing PCB’s from KPLC’s operations. In addition, while there are test kits available at the transformer repair yards, they are not used. The undefined approach to identifying and eliminating PCB’s may have resulted in the cross contamination of non PCB containing oil with PCB contaminated oil during service and repair of transformers. The relevance of PCB contamination is that the transformer oil is considered hazardous and unsafe to handle and dispose of without special decontamination precautions. For employees, this means being trained in PCB handling and provided with adequate Personal Protective Equipment (PPE). Further, in the Kenya context whilst acknowledging the KPLC’s ongoing expansion program which has resulted in substantive improvement to environmental management in recent years, there is the ongoing issue of oil theft. Stolen oil is reportedly used for welding, hair products, wound treatment and lubrication. Some of these activities could be very hazardous if the oils contain PCBs. Likewise, significant leakage of such oil could cause contamination of water systems and enter the food chain (although the likelihood of this occurring is regarded to be low). As a result, KPLC has agreed to take further actions to address the potential contamination of oil with PCB’s; refer to the attached ESAP. Old oil that can no longer be used is disposed at cement kilns and this is considered an acceptable approach owing to the high combustion temperatures.
Aside from transformer oil and fuel, KPLC do not use many hazardous materials with paints, oils and greases stored in small quantities at the various facilities. All KPLC’s refueling requirements including that related to the off-site generators and the some 1,800 vehicles are outsourced. The Company has one vehicle storage and maintenance yard located in Nairobi. In all the regional areas, the maintenance of vehicles is outsourced. Oils, grease and paint are stored at the Nairobi yard in a covered sealed area. However, the management of used oil requires improvement. Prior to sale to recycling companies, the oil is stored in drums in an unbunded and uncovered area; this is resulting in stormwater contamination. Thus KPLC will construct a covered, bunded area for the storage of used oil and install an oil/water separator on the stormwater discharge drains discharging from the site. In addition, the Company will develop a procedure for the management of waste oil from vehicles across all operations, inclusive of when vehicles are repaired in the field.
KPLC’s dominant solid waste streams include used vehicles, general scrap including old transformers and treated utility poles. Aside from the poles, all materials are disposed of via a tender process as defined in terms of the Public Procurement and Disposal Act of 2003. Treated wood utility poles are currently sourced from South Africa and Brazil, amongst other countries. KPLC is introducing concrete poles for all the differing transmission lines sizes, however currently this only accounts for some 1% of all the poles used.
Wooden poles are pressure treated prior to use with one of two sorts of heavy duty wood preservatives. This is to protect the wood from decay fungi and wood attacking insects such as termites and borers, as well as improving weather resistance. Chromated Copper Arsenate (“CCA”) is a water-based compound and comprised of a mixture of copper, chromium and arsenic salts. Creosote is a black oily substance distilled from coal tar, comprised mainly of polycyclic aromatic hydrocarbons (“PAHs”), but also containing phenols and cresols. KPLC inspect the facilities of all pole suppliers for quality purposes.
Good industry practice in the disposal of poles involves one of three main options, namely a) landfilling in a sealed site; b) high temperature incineration or c) controlled recycling for uses which exclude burning on open fires and close skin contact. The first two options are not feasible in Kenya and poles are typically sold, mainly for fencing operations. Prior to sale, the recipient needs to confirm the intended use, though this does not provide for sufficient control and the disposal of poles is a challenge throughout the region. So as to formalize the approach to the sale and disposal of old utility poles, KPLC will engage with relevant stakeholders such as suppliers and NEMA to define a clear procedure to be applied to this activity.
All vegetation is controlled by cutting and no herbicides or similar are used in KPLC’s operations. In addition, the Company does not use burning to control vegetation.
KPLC’s annual fuel usage in the off grid generators and vehicles equates to 12,400 tons which, when combined with the annual electricity use of 8.5 million kWh at all facilities, equates to 36,200 tons of CO2 per annum.
Community Health, Safety and Security
There were 63 public fatalities in the year ending June 2011, while in the previous year there were 38. The majority of incidents are as result of illegal connections and wiring, along with vandalisms as result of copper theft. The latter is the primary reason for the increase in fatalities since 2010. Individuals also build too close to servitudes and cut trees or erect structures that come into contact with transmission lines. These activities along with wooden poles falling over also results in electrocutions. KPLC is continually assessing opportunities to reduce public fatalities and is currently piloting a system whereby alarms are located on transmission lines which are activated when the line is tampered with. In addition, there are alarms on substations and the larger substations have full time security personnel assigned to them.
To reduce the potential for illegal connections within informal settlements and low income areas, key property owners are identified to whom power is supplied and they then supply power to other residences in the area. Theft of transformer oil is also a concern which would be serious should the oils be contaminated with PCB’s. Thus KPLC weld the oils caps onto the transformers and are currently assessing the use of transformers that do not require oil.
The Customer Relations Department has various initiatives to educate the public and customers on safety issues and these include a toll free hotline whereby vandalism may be reported and there is national campaign, “Mulika Mwizi”, to make individuals aware that they should report individuals tampering with electrical installations to the police. Other public campaigns include awareness raising via radio stations on the hazards of tree cutting, providing customers with booklets on safety tips, and every second Saturday, safety information is published in the Daily Nation, a national daily paper.
KPLC monitor encroachment into wayleaves and servitudes and where this is identified, legal action is initiated to remove individuals and structures.
There is ongoing training of fire marshals and trained individuals are located at all facilities. Emergency response equipment at all operations is also inspected on an annual basis according to a pre-defined schedule. KPLC is in the process of ensuring all facilities have defined emergency response plans and implementation thereof is defined as a requirement in the project ESAP.
KPLC has a security department in all the differing regions and security is provided to KPLC by sub-contractors. No guards are armed and they may call on the national police service when required.
Land Acquisition and Involuntary Resettlement
KPLC attempt to avoid land acquisition and resettlement by constructing on Government owned land or within road servitudes. In addition, when land is required for substations, this is advertised in the local media and the majority of land acquired for substations has been on a willing buyer / seller basis. However, some linear projects do require resettlement and or compensation. KPLC has a property department that assesses all proposed transmission line routes with one of the objectives being to minimize the risks of resettlement. In the event that resettlement is required, KPLC has compiled a Resettlement Policy Framework that clearly defines the approach to resettlement. This is consistent with the World Bank Operational Policy (“OP”) 4.12: Involuntary Resettlement, and requires a project specific Resettlement Action Plan to be developed and implemented. In instances where resettlement is Government led, the approach as defined by OP 4.12 is consistent with that as defined by IFC’s PS5: Land Acquisition and Involuntary Resettlement.
Biodiversity and Natural Resource Management
For all new capital improvement projects, potential impacts on biodiversity are identified via the mandatory project screening process. The latter includes confirmation on whether the World Bank OP 4.04 Natural Habitats is triggered which has similar requirements to this Performance Standard. In the project planning phase, KPLC’s objective is to avoid impacts on sensitive areas, though this may be unavoidable in some instances. As the majority of new projects require an Environmental Impact Assessment, potential impacts on biodiversity are assessed via this process if applicable. Where projects access forested areas or a national park, consultation is required with and approval from the Kenya Forest Services, or the Kenya Wildlife Agency.
