This project involves construction of 2 grinding plants in Uganda and Kenya and one clinker line (with a roller press and 5,500 tons per day kiln) and 8 MW WHR based power plant next to the first clinker line in Merrueshi, Kenya. Grinding plants are relatively simple operations and do not present significant E&S issues. The clinker production facility is more complex, but will be part of an existing well-designed operation where its addition was already anticipated, and infrastructure to support it was included, when the first line was recently build. The project will therefore have potential limited adverse social or environmental impacts that are few in number, site-specific, largely reversible. The impacts can be avoided or mitigated by adhering to recognized international standards for design and operational performance of cement production plants in accordance with the World Bank Group (WBG) Environmental Health and Safety (EHS) guidelines for cement and lime manufacturing. Thus, this is a Category B project as per IFC’s Policy on Environmental and Social Sustainability.

Key E&S issues and risks related to this project include; the Company’s capacity to manage the social, environmental, health and safety performance of its employees and contractors in accordance with national requirements, IFC’s Performance Standards and good international industry practice as elaborated in the appropriate WBG EHS Guidelines. These requirements include: i) fair, safe and healthy working conditions during construction and operations for direct employees as well as for the contract workers; ii) proper handling of hazardous materials, and management of air emissions, wastewater, solid and hazardous waste during construction and operations; iii) proper management of the impacts of construction and operations on surrounding communities as necessary, as well as management of the potential impacts on those communities because of the influx of construction labor during construction; and iv) minimizing adverse impacts of construction and operations on the natural flora and fauna of the project area and surrounding habitat, including the adherence to continuously updated quarry management and rehabilitation plans.