The key environmental and social aspects of the Project include environmental management program for system renovation and operation; the control of encroachment and railway safety management in key areas such as level crossings; liquid effluent discharge and protection of water resources; solid and liquid waste management; risk assessment of the transportation and disposal of hazardous materials; vegetation management of the right-of-way; spill prevention and emergency response; and employee and public safety.
The 2010 EHS Audit and RAPs identified risks and issues arising from RVR’s current operations that must be systematically addressed as part of RVR’s investment program. Mitigating actions to address these issues are captured in the Investors’ Environmental and Social Action Plan (ESAP) agreed with RVR and that will be included as an investment condition. Implementation of the specific agreed measures in the Investors’ ESAP (attached to this disclosure) is expected to ensure that the proposed Project will comply with host country laws and regulations and the IFC’s Performance Standards. Information about how potential impacts within the control of RVR will be addressed, as well as associated impacts to be addressed by others is summarized in the paragraphs that follow:
PS1: Social and Environmental Assessment and Management Systems
Taken together, the EHS audit and resettlement action planning process appropriately identified the risks and impacts of the rail line privatization project. The concession agreement assigns responsibility to the governments of Kenya and Uganda for any environmental liabilities in existence at the time of that agreement, November 1, 2006. These environmental liabilities need to be properly identified and responsibilities correctly attributed between the parties. Previous EHS audits were carried out in 2005 by COWI/AS in Kenya and SMEC International in Uganda. In 2010, RVR contracted a consulting firm, GIBB Africa Ltd (GIBB), to undertake an updated Environmental and Social Audit on the entire conceded railway network in both countries and prepare a report on the current status of management and compliance of railway operations with regard to Environmental Health and Safety (EHS) issues. GIBB prepared an Environmental, Health and Safety Audit Report for these assets. GIBB also prepared Resettlement Action Plan (RAP) Reports on the majority of the railway reserve in both countries. The World Bank financed and oversaw the preparation of the RAP for the Kibera/ Mukuru section of the railway in Kenya.
The Investors’ ESAP outlines measures for implementing the audit’s EHS Action Plan and for bringing the railway network into compliance with local laws and regulations and with the Investors’ environmental policies and requirements. Under the ESAP, for example, RVR plans to conduct a Cleaner Production Audit of its operations to identify means to reduce energy consumption, water usage, wastewater, and solid waste in line with climate change considerations.
RVR will undertake various activities during 2011 to effectively manage the Project’s environmental risks and issues. RVR had previously established and partially implemented an environmental management system. As part of the restructuring, RVR is undertaking mapping and alignment of the EHS audit recommendations and all existing documentation to ISO 9001 (Quality), ISO 14001 (Environmental) and OHSAS 18001 (Occupational Health and Safety). Mapping the three standards will provide RVR with the framework for developing an integrated management system within a short time frame and with available resources.
The Company will update the existing environmental management system in accordance to the ISO 14001 guidelines. The implementation of the environmental management system is intended to result in improved environmental performance. RVR will periodically review and evaluate its environmental management system to identify opportunities for improvement and their implementation.
RVR will develop site specific Environmental and Safety Management Plans (ESMPs) in line with its EHS Action Plan to prioritize key audit findings, propose remedial actions for implementation at each facility, allocate responsibilities, and develop an agenda for implementation, monitoring and reporting.
RVR appointed a senior practitioner as General Manager for Safety, Health, Risk, Environment and Quality Assurance (SHREQ) Department in February 2011. The GM SHREQ has day-to-day responsibility for occupational health, safety and environmental management systems and reports directly to the RVR CEO, who has the overall corporate responsibility for safety and environmental performance.
The Company is in the process of establishing an independent SHREQ Department, responsible for ensuring compliance and implementation of Safety, Health & Environmental policies at all levels of operations, and ensuring compliance with host country safety, health and environmental regulations and Investors’ requirements. The SHREQ Department will comprise SHE Advisors, Technical Safety Auditors / Compliance officers, Environmental and ISO coordinators, Emergency/ Incident management coordinators and Community Liaison officers.
RVR is working towards ISO certification, and the monitoring mechanism provided by ISO Standards will be used. Day-to-day monitoring, corrective actions, and reporting to management will be conducted as part of the integrated management system now being implemented under the General Manager (SHREQ).
The Company will have a summary of the yearly performance as well as findings from an annual environmental, health and safety self-audit. Examples of items to be monitored and reported include high risk environmental, health and safety incidents and resulting action; environmental health safety requests from government authorities and responses; complaints from employees and/or the community and resulting action; non-compliance incidents and resulting action; OPEX and CAPEX necessary to address requirements of the ESMP; and training needs analysis.
RVR will also monitor the implementation of the three RAPs by government agencies until such activities have been completed and will report to Investors on progress as part of its Annual Monitoring Report (AMR). As part of the restructuring, RVR will appoint an Independent Environmental and Social Monitor (Independent Consultant/ Advisor) with responsibility for verifying its annual reporting and the implementation of the Investors’ ESAP.
PS2: Labor and Working Conditions
RVR has an existing human resources policy that includes: Recruitment & Selection Policy, Compensation and Reward Policies, Staff Performance Appraisal Policy, Training & Development Policy, Acting Appointment Policy, Promotions Policy, Transfer Policy, Occupational, Safety & Health Policy, Benefits Policy, HIV & AIDS Policy, Industrial Relations Policies, Separation Policy, & Communication Policy. It also includes a Grievance Handling Procedure. RVR does not discriminate based on gender, age, disability, tribal background, or participation in workers’ collective bargaining organization. As part of a process of continuous improvement, RVR will review and update, as needed, its human resources policy on at least an annual basis.
Retrenchment of former KRC employees that were not accepted by RVR was completed by the GOK with World Bank assistance in May 2010. The impact of this retrenchment is subject to ongoing evaluation by the government of Kenya. For URC, retrenchment was funded by the GOU and managed through retirements and attrition. It is expected that RVR will want to release additional staff as modernization programs are put in place. RVR is developing a Retrenchment Policy to comply with existing labor laws and Investors’ requirements that will lay out the principles under which any further significant reduction in the workforce will be carried out, including the need for a plan, the principle of nondiscrimination, and a commitment to consultation with employees and their organizations. The policy would be triggered 90 days prior to any significant reduction (10% as a guideline) in the RVR workforce.
To protect its workforce, RVR will develop an emergency management plan to provide employees and contract service providers with procedures for the management of emergency or railway safety occurrences. RVR had initiated development of a fire safety program early in the concession, and will update the program and its implementation. RVR’s integrated EHS management system will provide for recordkeeping and training for the fire safety program. RVR will proceed quickly with the provision of fire extinguishers and marking of fire exit routes.
Regarding its occupational health and safety program, RVR has procedures for the provision and use of personal protective equipment (PPE) for its employees, but has been unable to provide sufficient supplies of PPE such as uniforms, gloves and eye and hearing protection. Additionally, the procedures did not adequately address provision and use of PPE by contractors and suppliers while at RVR workshop and maintenance facilities. RVR will address these shortcomings in its EHS management system, and ensure that contracts for maintenance and other contracted work include appropriate requirements for supply and use of PPE. Regarding medical surveillance, the audit found that medical examinations for RVR staff are conducted on an irregular basis, and that recordkeeping is incomplete. RVR will prepare a guidance document on medical surveillance, and prioritize medical examinations for key employees such as locomotive drivers
PS3: Pollution Prevention and Abatement
The EHS Audit Report resulted in the development of EHS Action Plan, consisting of site-specific management plans for the entire railway network. Key proposals emanating from the EHS Audit Report recommendations include the following:
>> Solid and liquid waste: The audit noted lack of standards and procedures on handling, collection, and disposal of various waste types with the exception of hazardous waste. Effluent discharges are not being periodically monitored as required by law, and main oil interceptors are not fully functional. A Waste Management Plan will be developed at each RVR operating facility that generates waste, including a strategy for waste prevention or minimization and for reuse/recycling.
>> Contaminated land: Historical land contamination is a significant liability for railway operations in Kenya and Uganda. A number of sites have been identified and a register of contaminated sites is being compiled. Documentation of historical spills or other chemical releases from derailments and accidents will be established. The respective governments will retain responsibility and bear the cost for remediation of past environmental contamination, and each through the established Environmental Steering Committee (ESC) will engage consultants to carry out environmental assessment and remediation of contaminated land on conceded assets. Contractual obligations in the concession agreements bind the governments in undertaking this responsibility. RVR will support the governments in these matters, with a goal of achieving environmental compliance in a reasonable timetable.
>> Spill prevention and control: The audit found that none of the active bulk oil and fuel storage sites in RVR’s network have appropriate secondary containment, including procedures for the management of containment systems. There are also several abandoned and redundant fuel storage facilities across the network. RVR will implement a time-bound program to replace or upgrade the bulk oil and fuel storage facilities to current standards, and will put in place a spill prevention and control plan supported by the necessary resources and training. These requirements will also be extended to supply contractors while operating on RVR’s network.
>> Asbestos containing materials: Asbestos was commonly used in the past because it was durable, heat and fire resistant, and an excellent insulator, and can be found in older buildings and equipment. The audit found asbestos containing materials (ACM) in workshops, locomotive sheds, depots and stations, as well as on some train vehicles. ACM-containing roofing and building siding is common. RVR will develop an Asbestos Management Plan that identifies locations where ACM is present, its condition, and procedures for protecting intact ACM in place and for safe removal and disposal where required.
>> Green House Gas (GHG) emissions: The principal source of GHG emissions arising from the operation of the railway owes to the use of diesel to fuel the locomotives. Currently, RVR consumes approximately 20 million liters of fuel annually to operate the system. This translates to about 50 thousand tonnes of CO2eq/year. The total amount of fuel used is expected to increase as the volumes of goods and passengers transported increases over the life of the concession. To offset these increases, RVR expects to improve the efficiency of fuel consumption per ton of goods transported by reducing derailments, providing driver training, and installing automation systems that makes stops at every station unnecessary.
>> Pesticide Use and Management: Vegetation within railway right-of-way was not regularly maintained and thus interfered with train operations and track maintenance. Unchecked growth of trees and plants covered signals, compromised sight lines, or fell onto the tracks and prevented workers from getting to places of safety when trains are passing. RVR will implement an integrated approach to vegetation management that will include the use of herbicides to control fast-growing vegetation within railway rights-of-way. Detailed procedures will be prepared for herbicide use to protect workers, communities, and the environment.
PS4: Community Health, Safety and Security
The Project is the operation of an existing railway network, for which the risks to community health, safety, and security are known and can be mitigated.
Several areas along the track are heavily encroached by houses, business structures, schools, churches, latrines, kitchens, sheds, crops and trees. For the safe and efficient operation of trains, the Project will require the removal of these encroaching structures, crops and trees from the 10.4 m operational corridor – 5.2 m on either side of the centerline of the track - and, in some cases, beyond. The total railway estate is 60 m (30 m on either side of the track) in most areas, but in certain urban areas the estate is limited to 30 m. Any additional land clearance would fall within this larger railway estate. Areas beyond the 10.4 m operational corridor were identified based on residual risk. Trains can reduce the risk of accidents by operating at lower speeds and warning encroachers with the train whistle. In some areas, however, the topography and density of population mean that a tip over, even at low speed, could put the public at risk. In areas such as the Kibera irregular settlement, which the train passes through on high embankments that are completely covered with structures, a simple tip over can pose an unacceptable risk to the public. Other areas where encroachment in the railway reserve may need to be moved further back than 5.2 m are other heavily encroached areas and the “diamond” around level crossings that allows train and road transport drivers to see each other approaching. Statistically in Kenya and elsewhere, level crossings are the highest risk areas for accidents.
The Safety Management Program for RVR will be initiated by a review of existing risk management documentation. The risk management plan will identify the risks associated with RVR operations, determine their risk levels and mitigation measures. The plan will include measures to reduce risks to pedestrians and other from train operations, to include improved enforcement of track crossing near stations, sensitization of communities toward track use and risks from waste disposal on track, and train operating procedures for congested areas.
Level crossings where railway lines cross streets or highways represent high risk accident locations for railways. A review conducted in 2007 found unsafe conditions at many level crossings on the system. A comprehensive update to that study was conducted by GIBB Africa as part of the RAP fieldwork (see PS5 discussion below) for both Kenya and Uganda, as the RAP field teams were already engaged in an inventory of the railway lines. Encroachments were found at many level crossings and were captured in complimentary studies, which were part of the RAPs. The encroachments at the level crossings will require resettlement for safety purposes as part of the RAP processes in both countries. RVR will, in conjunction with the relevant stakeholders, develop a vehicle operator safety training program for highway safety and level crossing usage. The program will be part of the community safety program aimed at minimizing safety related risks to the public
RVR is developing and will put in place on an interim basis by end July 2011 an Emergency Response Management Plan for responses to train accidents, based on categories of cargo, potential impacted populations and environments. The plan will be overseen by the SHREQ GM as an integral part of the Safety Management System, and include coordination with local authorities, drills and training, response equipment and readiness, etc. To facilitate finalizing the plan, the company targets to conduct at least one desk top drill in the third quarter 2011 and at least one field drill for each of the three regions by year end, including one marine vessel drill.
Security services for RVR’s facilities and railway lies is provided variously by internal security personnel, security contractors, local police, and the military. KRC developed an interim Code of Conduct for Security service providers; RVR will review existing documentation and develop an interface document. The Code of Conduct will include selection criteria for private security service providers, rules of engagement, training requirements, and a grievance mechanism.
PS5: Land Acquisition and Involuntary Resettlement
Over the total 2,350 km track length in Kenya and Uganda, there will be a total of 13,410 people affected by the need to move back encroachers. Of these 9,567, or 71%, are in the two densely populated Nairobi irregular settlements of Kibera and Mukuru, which have a total track length of 9 km passing through them. In Kibera, the encroachers will be moved back by 20 m on each side of the track (40 m total) and 25 m (a total of 50 m) in Mukuru for the above mentioned safety reasons. For the rest of Kenya, the removal of encroachers will affect 1,094 project affected people, but only 23 temporary or permanent houses. Ninety-three percent of the assets affected will be farms, crops or trees. In Uganda, the total number of affected people will be 1,041. The affected assets are primarily business structures, 323, and residences, 233. Farms only make up 11% of affected assets in Uganda.
Three updates to the prior resettlement action plans have been prepared to address the impact on the people living and working within the areas to be cleared: (1) Kibera and Mukuru, (2) the rest of Kenya, and (3) all of Uganda. In all three cases, the people to be removed are without legal rights in land, so they do not receive compensation for the land, only for standing assets. In all cases, compensation is based on replacement cost, as required by PS 5. Also in all three instances, the respective government of Kenya (1) and (2) and Uganda (3) will carry out the resettlement, which they have the right to do given that the railway reserve is owned by the government, even if it has been granted for the use of RVR under the concession agreement. However, RVR has played an active role in preparing RAPs (2) and (3) to ensure that the clearance of the operational areas meets IFC Performance Standard requirements.
The Government of Kenya, with the assistance of the World Bank, prepared an update of the 2005 resettlement action plan for Kibera and Mukuru. The original one was limited to clearing the 10.4 m operational corridor going through the two areas. As noted, the additional width on either side of the tracks through these areas was increased for safety reasons. The impact in Kibera will primarily be on business and residences that line the track. A wall will be built on either side of the track to prevent future encroachment, and shops and houses will be built into the outside of that wall to accommodate the people who are being. The wall, shops, houses and a foot path will all be within the boundaries of the 60 m railway estate. In Mukuru, people will be relocated to another site because the land available in the railway reserve is already occupied by an oil pipeline and an electrical line.
For the rest of Kenya, people will receive priority for temporary leases on the railway estate outside of the 10.4 m operation corridor. Crop owners will be allowed to harvest crops, and will receive full replacement cost for perennial crops and trees. They will also be allowed to plant crops outside the 10.4 m area, with the possible establishment of leases (called Temporary Occupational Licenses) over those lands. Essentially, the same provisions will be in place for the land clearance in Uganda. With respect to the diamonds associated with level crossings, RVR will invoke a provision of the concession agreements that will result in a review of crossings by the two Governments. The review will lead to the possible upgrading of barriers and other devices to reduce the risk of accidents.
Because it is more complicated and involves a large number of people, the GOK will put in place a specific Project Implementation Unit responsible for the implementation of the Kibera and Mukuru RAP. The RAP is expected to take two and half years to implement. There will also be a three level, specific grievance mechanism for these segments, starting with local committees and ending with a Project Implementation Team Grievance Appeals Committee. Recourse to the national judicial system will still be possible if the party is not satisfied with the result.
The implementation for the rest of Kenya and all of Uganda will be done by KRC and URC respectively, but with specific committees set up to include village elders, women and youth on the local level. The implementation of the RAP in these areas is expected to be carried out over a 5 year period. With respect to grievances, a person with a grievance will file a complaint with a local conflict resolution committee, and the complaint will be entered into a grievance log. If the party is not satisfied with the decision of this committee, the grievance will go to the local RAP Implementation Committee, who will meet with the aggrieved party. If resolution doesn’t occur on this level, then the matter will be sent to the RAP Steering Committee.
In all cases, RVR will monitor progress of the implementation of the RAPs.
