PS7 - Indigenous Peoples is not considered applicable for this project as Indigenous peoples have not been identified and PS8 - Cultural Heritage have also not been identified as being applicable to this project as there are no known groups of indigenous persons in the project area and no items of cultural heritage were suspected or identified in the project area.  

 If WB guarantee and/or IFC’s investment proceeds, WB and/or IFC will periodically review the project’s ongoing compliance with the Performance Standards.                          

  This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability. The proposed investment is expected to have limited environmental and social impacts, which are site-specific, temporary and none is expected to be significant. Those impacts can be avoided or mitigated by adhering to applicable performance standards, procedures, guidelines and design criteria as described in the following sections. This categorization is consistent with categorization of other similar projects within this sub-sector. 

The main environmental, social, occupational health and safety risks identified for this project relate to the management of solid and liquid wastes; dust during construction, the capacity of Enel to manage their social, environmental and safety performance and engage with project stakeholders; assurance of fair, safe and healthy working conditions for all workers during construction and operations; and management of community health and safety.                                                 

  WB and IFC’s appraisal considered the environmental and social management planning process and documentation for the project and gaps, if any, between these and WBG requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through the implementation of these measures, the project is expected to be designed and operated in accordance with the Performance Standards objectives.                                                 

  WB and IFC’s assessment considered documentation of Enel’s management of its environmental, safety and health performance; compliance with Zambian permitting requirements; and stakeholder engagement and disclosure of information about the project and its operations.

Environmental and Social Assessment and Management System: As this is a greenfield project, The Company currently has no specific Environmental and Social Management System (ESMS) in place for the construction or operation of the project. For its international operations, the company has a Quality, Safety and Environmental Policy, which the EPC contractor for each specific project will review, update, develop associated systems and procedures relevant to the project and adopt for the project. Aspects related to the identification and management of environmental and social impacts are described in the paragraphs below. In order to manage the environmental and social risks and impacts associated with the construction and operation of the project, as indicated in ESAP action item 1, Enel will develop and implement an ESMS suitable to the scale of the project and which meets the requirements of applicable Zambian laws and the IFC Performance Standards. The ESMS will include policies, plans, manuals and procedures aligned with ISO 14001. The ESMS will incorporate the Environmental Management Plan (EMP) developed for the project as well as the aspects related to construction covered in the WBG General Environmental Health and Safety (EHS) Guidelines.

Policy: Enel has a corporate Quality, Safety and Environmental Policy, which describe the company’s commitment to the protection of the environment and people and the safety of its employees. The policy requires compliance with applicable laws and relevant health, safety, and environmental standards. The corporate policy applies to all aspects of its operations – construction, operation and maintenance; and is communicated to employees and other stakeholders. 

Identification of Risks and Impacts: In line with the Zambian environmental regulations, an Environmental and Social Impact Assessment (ESIA) was conducted for the project as required by the Zambian Environmental Management Agency (ZEMA). An EMP was prepared alongside the ESIA and submitted to ZEMA for approval (Environmental Authorization). The ESIA was conducted by Knight Piesold Consulting and ZEMA issued an Environmental Authorization  on June 5th, 2017. The ESIA covered the relevant local environmental and social regulations and the key aspects of the WBG Performance Standards relevant to the project. The ESIA covered the project design, construction, operations and decommissioning. The ESIA addressed project alternatives; identification and assessment of environmental and social risks and impacts; and measures to avoid, mitigate or offset the impacts identified. The potential impacts identified and assessed include air quality; biodiversity; hydrology and water quality; occupational health and safety (OHS); waste; noise; traffic and visual impacts; and geology and topography. The ESIA also included a socio-economic baseline and impact assessment of the communities around the project site. The project EMP identified measures to minimize and mitigate the impacts associated with the project.

Management Programs:  Project-specific management programs are developed as applicable for all Enel projects. The health, safety, environmental and social requirements for the construction phase have been identified in the Enel’s contract. As indicated above, for the Scaling Solar project, Enel will develop and implement a management system and will integrate the project EMP into the system. The ESMS and the associated documents will cover the construction phase and will be updated to cover the operations phase. 

Organizational Capacity and Competency: Enel will appoint a Health, Safety and Environmental (HSE) Officer to oversee the implementation of the ESMS and the associated procedures for the construction phase of the project and will ensure monitoring during operation. This is covered under ESAP action item 2. In addition, Enel will ensure that its subcontractors appoint HSE personnel for the construction phase.  Ngonye will also appoint a Community Liaison Officer (CLO) who will be responsible for overseeing the interaction with the affected communities and other stakeholders, through the CDP.

Emergency Preparedness and Response: The company will ensure that Enel develops and implements an Emergency Preparedness and Response Plan. The plan will identify emergency scenarios for both construction and operations phase, including – fires, explosions, medical emergencies, accidents, spills, property damage and extreme weather conditions. All emergency procedures and communication protocols will be documented in the plan.

Monitoring and Review: During construction and operations, all parameters that require monitoring in line with local regulations will be monitored, as defined in the project EMP. Periodic safety, health and environment audits/inspections will be conducted by the company; and monitoring data and reports will be provided to the local authorities as required. 

As covered in ESAP action item 1 for this project, for the operations phase, the company will define key performance indicators (KPIs) in order to monitor HSE parameters such as lost-time incidence frequency rate, accident free days, water consumption, wastewater parameters and air emissions. In addition, the HSE Officer will define an integrated HSE report to cover key HSE KPIs and present it to senior management for review. The HSE KPIs will include: compliance with legal and regulatory requirements; HSE management system progress report; water consumption; solid and liquid waste management; safety statistics, including leading and lagging indicators; community complaints and community engagement activities.                                                 

  During the construction phase, it is expected that the total workforce on the project will be up to approximately 100. It is also expected that a substantial number of workers will be recruited from the local community within a reasonable distance from the project site. There will be no workers’ accommodation erected on the project premises; workers from the nearby communities will be transported to and from the project site. When fully operational, the company is expected to have five full time professional technical employees for operations and maintenance as well as approximately twenty unskilled personnel third-party security and workers for cleaning and grounds-keeping.

Human Resources Policies and Procedures: During the construction phase, workers will be subject to a Project Labor Agreement (PLA) to be instituted by Enel. The PLA will incorporate information such as working hours, standard contracts, minimum wage requirements and security requirements, and will also be applicable to all sub-contractors. As indicated in the ESAP action item 4, the EPC contractor will ensure that the PLA as well as the HR Procedures for the operations phase meet the requirements of this Performance Standard as well as applicable Zambian labor laws.

Workers’ Organization: Due to the stage of the project, there is no indication as to the number of unionized employees expected to be involved in the construction phase. It is noted however that the PLA will be between Enel, the sub-contractors and the relevant unions as may be applicable to the project. During operations, Enel will allow freedom of association in line with the requirements of this Performance Standard.

Non-discrimination and Equal Opportunity: Enel is committed to the principles of employment equity, equal opportunities and empowerment, regardless of gender, race, color or creed. As part of the PLA and HR Policies and Procedures for the operations, Enel will develop and implement a formal policy on non-discrimination and equal opportunity to cover all aspects of the Scaling Solar Ngonye project.

Grievance Mechanism: As indicated in the labor requirements for the EPC contract, a worker grievance mechanism will be in place during the construction phase. For the operations phase, Enel will ensure the HR procedures incorporate an adequate grievance mechanism procedure.

Occupational Health and Safety: As this is a Greenfield project, Enel will develop appropriate OHS procedures for the construction and operations phases which are consistent with the requirements of this Performance Standard and local Zambian Laws including the Occupational Health and Safety Act and Construction Regulations. This has been included as action item 5 of the ESAP for this project. KPIs for this project will include OHS indicators which will be documented as part of the project improvement process. Enel will provide appropriate protective equipment for all its staff and project workers and provide the required training to ensure that staff and project workers work in a safe manner. Enel will also ensure that sub-contractors provide appropriate protective equipment and training and also comply with all the requirements of local Zambian Laws and this Performance Standard.

Workers Engaged by Third Parties: It is expected that during the construction and operational phases, Enel will make use of service providers for security and maintenance roles. As set forth in the ESAP action item 6, Enel will develop and implement a procedure to ensure contractors’ labor and working conditions comply with the requirements of this Performance Standard and Zambian Laws, including consideration for grievance mechanisms for third party workers and fair working conditions.                                                 

 Potential pollution issues during the project’s construction phase will be those typically associated with construction sites such as dust, noise, oil spills and traffic. All these impacts are limited and temporary and will be mitigated with standard mitigations measures which are included in the EMP approved by ZEMA. During operations, the main issues relate to water use and management, waste management, and visual impacts. Potential nuisance impacts during the construction and operations phases to the broader community are expected to be limited. It is noted that pollution impacts associated with solar PVs are not as significant as other solar power generation projects; these impacts are briefly described in the paragraphs below and can be largely mitigated through effective implementation of the EMP associated with this project. Where required, additional measures have been included in the ESAP for this project as indicated below.

Energy and Material Efficiency: The highest amount of resources and materials will be consumed during the construction phase. Energy for the construction project will be supplied by diesel/petrol generators. During operations, the energy supply will be drawn from the energy generated by the project.

Water: During the construction phase, water will be required for road construction, dust suppression, drinking water and domestic purposes. It is estimated that approximately 15,000 liters of water will be required per day during the construction phase. Given that the project involves PV rather than CSP technology, water consumption will be limited during operations; water will only be required for cleaning and domestic purposes. It is estimated that 15,000 liters of water will be required per week. Water for the project will be sourced locally from the LZ-MFEZ who will obtain the water abstraction authorization from the relevant authority.

Greenhouse Gas (GHG) Emissions: As this is a solar project, the GHG emissions associated with the operations phase of the project are minimal. The GHG emissions associated with the combustion of fossil fuels for power generation and transportation during construction will be limited and temporary. Therefore, the project will not be required to quantify and report the CO2-equivalent emissions as required under this Performance Standard.

Pollution Prevention: During the construction phase, air emissions from the project will primarily be dust/particulates from land clearing and earth works as well as particulate matter, nitrogen oxides (NOx), carbon monoxide (CO) and sulfur dioxide (SO2) from the combustion of fuels. The air quality assessment in the ESIA indicates that there will be temporary negligible impacts on sensitive receptors (residential areas). Measures to minimize these impacts have been identified in the project EMP.

Noise pollution is expected from the project during construction and operations. The baseline noise assessment conducted during the ESIA indicated that there were no major noise-emitting sources and no sensitive receptors within 500m of the project site. Noise attenuation analysis in the ESIA revealed that beyond 500m, noise from the project site during construction will on the average be 50dB or less. Measures to minimize noise impacts have been identified in the project EMP. Available data on noise generation by PV plants during operations indicates noise at source could be up to 60dB. With attenuation, noise impacts are expected to be minimal.

Solid Waste Management: Construction waste such as domestic waste, inert waste (rubble, spoil) recyclables (plastics, paper, metals.) and small quantities oil-contaminated rags will be sorted on site and collected by a licensed waste collector for recycling and disposal as appropriate. General waste generation during operations is expected to be minimal; the waste will be disposed of by a licensed waste contractor. Wastes from the solar panels during maintenance will be collected and recycled/disposed of appropriately. As part of the procedures for the ESMS, a Waste Management Plan will be developed and implemented by Enel; this has been included in the ESAP as action item 7 for this project.

Hazardous Materials Management: Chemicals to be used during construction and operation of the power plant may include herbicides for weed control and cleaning chemicals used for cleaning the solar panels. These chemicals will be stored in small quantities on site and the measures identified in the EMP will be implemented to minimize any impacts. Other hazardous materials include fuels and lubricating oils. Petrol/diesel for generators will be stored in above-ground storage tanks fitted with containment bunds.                                                  

   Community Health and Safety: The project is not expected to lead to significant safety and health impacts on the community. Increased traffic associated with the project, in particular during the construction phase, may pose some safety risks to the community. It is estimated that approximately 600 trips will be required to transport equipment to the site. In addition, daily traffic will include the transport of personnel to and from the site. During the operations phase, the site will be fenced and public access to the solar plant will be prevented. In addition, the LS-MFEZ is an area with controlled security access involving armed Zambia Police Force personnel and unarmed private security personnel. Traffic impacts will be greatly reduced as vehicles will only be required to transport employees to work on a daily basis. If required, infrastructure for routine maintenance and upgrading phases will also be transported to site by road. The implementation of measures identified in the EMP is expected to reduce any potential impacts due to traffic associated with the project.

Hazardous Materials Management and Safety: The project will require the use of limited quantities of hazardous materials such as cleaning chemicals, herbicides, fuels and oils. As discussed under Performance Standard 3, the quantities are limited and the materials will be managed in a suitable manner to avoid community exposure to these materials.

Security Personnel: Site security will be managed by a private security firm who will provide trained unarmed security personnel. The EPC contractor will assess the risks posed by its security arrangements to communities near the project site and ensure that the security contractor operates in a manner which meets the requirements of this Performance Standard. In making such arrangements, the company and its EPC contractor will be guided by the principles of proportionality and good international practice in relation to hiring, rules of conduct, training, equipping and monitoring of such workers, and by applicable Zambian law. The EPC contractor will make reasonable enquiries to ensure that security provider staff are not implicated in past abuses and will train them in appropriate conduct toward workers and affected communities. The project grievance mechanism (described below) will be available to communities should issues arise between them and security personnel.                                                

 Type of Habitat

The project overlaps the Southern Miombo woodlands ecoregion. The landscape is considered Modified Habitat under PS 6, largely urban or peri-urban, with remnants of degraded Natural Habitat within a protected area on the edge of Zambia’s capital city. No significant impact to Natural Habitats is expected.

Protected Areas or Recognized Areas

To adequately accommodate both scaling solar projects of Bangweulu and Ngonye, the Government of Zambia, through the Industrial Development Corporation (IDC), acquired an additional 11.9 ha of land outside of the MFEZ, which is on the edge of -the MFEZ land boundary and partially with - Lusaka National Park. Lusaka National Park was opened in 2015 and is being re-stocked with wildlife, including non-native species. The area was previously gazetted as a larger Forest Reserve but has been heavily encroached by urban development unrelated to the project. A request was therefore made to the Zambian Ministry of Tourism (MoT) for the additional land which is located between the boundary of MFEZ and the National Park fence. Several consultations were made between IDC and MoT through the Department of National Parks and Wildlife (“DNPW”) in relation to the use of the additional land. It was determined by MoT in consultation with DNPW, that the use of the identified land would not have any negative impact on the successful operation of the Park. The 11.9ha which is 0.1% of the National Park is area that was previously farmland and appear degraded. IDC and the project have been granted lease of the land under the authorization by the Ministry of Finance, the designated title holder by DNPW and GoZ. The additional land as part of the entire scaling solar project area was also subjected to the project’s ESIA which has been approved by the Zambia Environmental Management Agency. As part of the ESMS, the company will formalize existing engagement with protected area stakeholders to ensure the development continues to align with management objectives for the protected area. This engagement will include identification of opportunities to support the protected area where feasible.

Alien Invasive Species

Some non-native species of wildlife have been introduced to the national park to attract visitors. No alien invasive species have been identified at the site. As part of the ESMS and ongoing engagement with protected area stakeholders, the company shall develop and implement measures, to ensure no intentional introduction of alien invasive species are made that could pose a risk to the neighboring protected area.

The communities considered affected by the project and who were included in the stakeholder engagement and consultation activities processes, include those located relatively near to the project site, adjacent to the MFEZ; and those who were resettled as part of the Government –led resettlement scheme associated with the MFEZ as a whole (as described above).  

Those located adjacent to the MFEZ include residents of Shantumbu Villages (about 450 households, about 5-7 km to the South and Southwest of the project site); and Mahopo Village (370 households, around 9km from the project site). Shantumbu Village is relatively unsophisticated and characterized mainly by subsistence farming and a lack of social amenities. Villages from this area used to use the MFEZ area for farming, grazing and access to natural resources. Mahopo Village is more formalized, with most people involved in formal employment and with more improved social amenities. There are not likely to be direct impacts on this village besides a source of potential labour for the project. Leopards Hills, Chalala and New Kasama residential areas are relatively sophisticated suburban and commercial farming areas which are located on and around Leopards Hill Road, one of the main roads leading to the project site. They would therefore likely be most impacted by construction traffic associated with the project. The nearest residential houses are located about 2 km North of the project site while the nearest agricultural holdings in New Kasama are located within a kilometer of the site, on the eastern side of the site. The communities affected by the MFEZ Government-led resettlement include Kanchibiya in Mpika District (around 700km from the MFEZ); Milambo in Milenge District (over 700km from the MFEZ) and Dongwe in Kaoma District (450km from the project site). These were the households affected by the original DMMU resettlement. The Mphande Forest Resettlement Area (over 30km from the project site) includes those households included in the second resettlement scheme. 

Initial stakeholder consultations were conducted in October 2015 by WSP - Parsons Brinkerhoff consultants as part of the pre-ESIA consultations. The institutional stakeholders consulted were drawn from key project implementing agencies, which included Lusaka South Multi-Facility Economic Zone Management, ZESCO Management, ZEMA Management and IDC Management.

As part of the project ESIA process, public consultations were undertaken at ESIA Scoping meetings held on 11th and 12th March 2016 at Nakatindi Hall (Lusaka Civic Centre) and Cooperative College Conference Hall respectively. The stakeholders were invited to attend scoping meetings by way of written invitation letters and by placing public notices for the meetings in publicly and privately owned print media. These included the Zambia Daily Mail (public) and the Post Newspaper (private). The objective of the meeting was to inform all interested and affected parties of the project, and provide them with answers to any questions they had. Over 200 people attended the meetings from the affected communities. The main issues raised in the meeting were related to community benefits of the project. Another round of public meetings was similarly undertaken the 8th and 9th July with in addition the presence of the Project Company.

Further, more focused consultation meetings, in which IFC participated, were held on 25 and 26 August at the Shantumbu and Mphande communities respectively. The meeting was attended by IDC, Knight Piesold and representatives of the affected communities from the Mphande resettlement. The main issues raised in this meeting were around the project’s social responsibilities in the area, compensation for loss of assets and access to land, allocation of replacement land, and some technical questions around the operation of the solar panels. As noted above, compensation and identification of replacement land at Mphande are now known to be unrelated to this project and are being dealt with by the relevant Zambian agencies.

Ongoing informal consultation with authorities and village representatives has been undertaken by the Knight Piesold social specialist. As indicated in ESAP action item 3, the project will develop a stakeholder engagement plan (SEP) including a program for consultation with those affected, particularly those directly affected by the DMMU-led historic government-managed land acquisition process, and those who are most directly affected by the project. The SEP will be designed and implemented prior to construction, during construction and to a lesser degree, during operations. As indicated under Performance Standard 1, a project CLO will be recruited to be present in the local area and receive grievances as part of a broader project grievance mechanism that will allow for grievances to be addressed in a timely and effective manner.

Contact Person: Alexander Bianchi (Business Development); Francesco Carbonara (Finance)

Company Name: Enel Green Power

Address: Viale Regina Margherita 125 – Rome, Italy

Email : alexander.bianchi@enel.com; francesco.carbonara@enel.com 

Phone : +27 (0) 1034 40348 ; +39 06 8305 5159

Facsimile:

Please note project documentation will be available on site once the base camp is operational. Until then, please find below the administrative address in Zambia:

Company Name: Ngonye Power Company Limited 

Address: Provide address in Zambia – Lusaka - Zambia