EIS : Nestle Cereal Milling Plant Expansion Project

ENVIRONMENTAL IMPLICATION STUDIES

OF

NESTLE CEREALS MILLING PLANT FACILITY EXPANSION PROJECT

PREPARED BY

RAMBIGAS NIGERIA LIMITED

FOR

NESTLE NIGERIA PLC

AGBARA INDUSTRIAL ESTATE,

AGBARA, OGUN STATE

SUBMITTED TO

OGUN STATE ENVIRONMENTAL PROTECTION AGENCY, ABEOKUTA, OGUN STATE.

MAY, 2009

13

EIS : Nestle Cereal Milling Plant Expansion Project


TABLE OF CONTENTS

PAGE

TABLE OF CONTENTS ii

LIST OF TABLES v

LIST OF FIGURES vi

LIST OF APPENDICES vii

LIST OF ABBREVIATIONS & ACRONYMS viii

STUDY TEAM xii

EXECUTIVE SUMMARY xiii

ACKNOWLEDGEMENT xxiii

CHAPTER 1 INTRODUCTION

1.0 The Applicant And Background Information 1

1.1  Nestle Nigeria Plc 1

1.2  Background Information 1

1.3  Legal and Administrative Framework 4

1.4  Objectives of EIA / EIS 6

CHAPTER 2 PROJECT JUSTIFICATION AND VIABILITY

2.1  Need for the Project 7

2.2 Level of Investment and Envisaged Sustainability of

Project 9

2.3 Warehouse Expansion Project Justification and

Sustainability 10

2.4 Terms of Reference ( TOR ) 11

CHAPTER 3 PROJECT DESCRIPTION

3.1  Nature of Project 14

3.2  Project Location 14

3.3  Consideration of Project Alternatives 16

3.4 Overview of Project Facilities 18

3.5 Process Description 20

3.6 Life Cycle Analysis ( inputs & Output Data ) 25

CHAPTER 4 DESCRIPTION OF THE ENVIRONMENT AND BASELINE

INFORMATION

4.1  Focus / Approach 28

4.2  Site Selection, Preparation & Construction 28

4.3  Project Land Area & Ecological Characteristics 30

4.4  Geology, Hydrogeology & Climatic Conditions 32

4.5  Socio – economic Features 36

4.6  Infrastructural Facilities 37

4.7  Identification, Quantification & Characterisation of Waste 38

CHAPTER 5 ASSOCIATED AND POTENTIAL ENVIRONMENTAL

IMPACTS

5.1  Focus / Associated / Potential Impacts and Specific Risk / Hazard

Assessment 50

5.2  Impact Assessment Method 50

5.3  Estimate of Magnitude and Significance of Potential

Project impacts 58

5.4  Hazards and Effects Management Process (HEMP) 62

5.5  Summary of Potential Environmental Risks and

Hazards Associated with Nestle MWFE Project 63

CHAPTER 6 MITIGATION MEASURES

6.1 Summary of Impacts, Source of Impacts and

Mitigation Measures. 65

CHAPTER 7 ENVIRONMENTAL MANAGEMENT PLAN

7.1  EMP / NEMS 67

7.2  Objectives of EMP 69

7.3  Relationship Between EMS & EMP 70

7.4  Supplementary EMP 72

7.5  Nestle EMP/S 75

7.6  Rehabilitation Plan Following Decommissioning / Closure 77

CHAPTER 8 CONCLUSION AND RECOMMENDATIONS 78

BIBLIOGRAPHY 80


LIST OF TABLES

PAGE

Table 3.1 : Overview of Project Facilities 18

Table 3.2 : Life Cycle Analysis – Showing Inputs, Output &

Losses as Waste 25

Table 4.1 : Air Borne Particulates measurement For Factory

Complex / Project Site 40

Table 4.2 : Noxious Gases Measurement for Expansion Plant 41

Table 4.3 : Analytical Results of Treated Effluent Leaving the

Factory Complex 44

Table 4.4 : Analytical Results of Noise Level Measurement in

the Factory Complex 47

Table 5.1 : Environmental Components / Impact Indicators 53

Table 5.2 : Rating Quantification For Impact Assessment 54

Table 5.3 : Degree of Importance Rating 55

Table 5.4 : Impact Matrix For Project Construction Phase 56

Table 5.5 : Impact Matrix For Project Operation Phase 57

Table 5.6 : Estimation of Magnitude and Significance of

Potential impacts of project 58

Table 5.7 : Applicable Risks by Project Components 61

Table 5.8 : HEMP Methodology 62

Table 5.9 : Summary of Potential Environmental risk & Hazards

Associated with the Project 63

Table 6.1 : Potential Negative Impacts & Mitigation measures 65

Table 7.1 : Management Plan/ Programme for Nestle

MWFE (Project Specific) 72

LIST OF FIGURES

PAGE

Figure 3.1 : Schematic Diagram of EHPM Processing Line 22

Figure 3.2 : Mixing Line Process Flow Chart 23

Figure 3.3 : Culinary Processing Line Flow Chart 24

Figure 4.1 : Geological Map of part of South West

of Nigeria – Covering the MWFE Project Site 31

Figure 4.2: Well / Borehole log : Lithology &

Construction 35

Figure 7.3 : Relationship between EMS & EMP 70

Figure 7.4 : Nestle Environmental Management System

(NEMS) Flow Chart. 71


LIST OF APPENDICES

PAGES

APPENDIX 1 : Factory Complex layout / Master Plan – showing

the Maggi & Warehouse Facility Expansion Project

Site Location. 82

2 : NEMS – Policy on Environment. 83

3 : National & State Environmental laws applicable

to the Food and Drink Industries. 84

4 : NEMS – Manual to Staff on health & safety. 86

5 : NEMS – Structure / organogram 87


LIST OF ABBREVIATIONS & ACRONYMS

AIE – Agbara Industrial Estate.

AEPSL – Agbara Estate Property Services Limited

BOD – Biological (Biochemical) Oxygen Demand

Ca – Calcium

CacO3 – Calcium carbonate

Cm – Centimeter

CSTP – Central Sewage Treatment Plant

COD – Chemical Oxygen Demand

CFC – ChloroFloroCarbon

Cl – Centiliter

Cr – Chromium

Cu – Copper

DO – Dissolved Oxygen

CPFEP – Cereal Products Facility Expansion Programme

CPFE – Cereal Product Facility Expansion

dB – Decibel

DS – Dissolved Solids

EIA – Environmental Impact Assessment

EIS – Environmental Implication Studies / Statement

EMP – Environmental Management Plan

EMS – Environmental Management System

Fe – Iron

FEPA – Federal Environmental Protection Agency

Fig. – Figure

FMEnv – Federal Ministry of Environment

g – Gram

H2O – Water

h – hour

H2S – Hydrogen Sulphide

HCO3 – Bicarbonate

H – Hydrogen

ISO – International Organisation for Standardisation

Kg – Kilogram

LGA – Local Government Authority / Area

LP – Low Pressure

LPG – Liquefied Petroleum Gas (Natural Gas)

M3 / d – Meter Cube / Cubic Meter Per day

M2 – Meter Square

Mg / L – Milligram Per Liter

Mm – Millimeter

Mg – Manganese

MPWFEP – Maggi Products & Warehouse Facility Expansion

Project

MWth – MegaWatt Thermal

N - Nitrogen

NaOH – Sodium Hydroxide (Caustic Soda)

PHCN – Power Holding Company of Nigeria

NEMS / P – Nestle Environmental Management System / Plan

NESREA – National Environmental Standards and Regulatory

Enforcement Angency

NH3 – Ammonia

NOx – Nitrogen Oxides

NSE – Nigerian Stock Exchange

% - Percentage

ODS – Ozone Deplecting Substance

P – Phosphorus

Pb – Lead

PH – Hydrogen ion Concentration

PVC – Poly Vinyl Chloride

PPm – Part Per Million

QMS – Quality Monitoring Scheme

RH – Relative Humidity

SHE – Safety, Health & Environment

SO2 – Sulphur dioxide

TDS – Total Dissolved Solids

TSP – Total Suspended Particulates

TSS – Total Suspended Solids

µ - Micron

µg – Micro – gramme

µs – Micron Siemen

UV – Ultra violet

WHEP – Warehouse Expansion Project

WWTP – Waste Water Treatment Plant

µg/L – Microgram per Litre

VES – Vertical Electrical sounding

oC – Degree Celsius

WHO – World Health Organisation.


EIS TEAM

The following represents the EIS Report Prepares and their various roles :

AUTHORS

Alhaji Gbolahan A. Solabi, BSc, MSc FNIFST, FIPAN – Team Leader

Mr Joseph A. Bamtefa, BSc. – Project Coordinator

CONSULTANTS & PARTICIPANTS :

Alhaji Gbolahan A. Solabi, - Environmental Chemistry, Data

Analysis, Socio – economic &

Health Impact Assessment.

Mr Eppi Fanio Joseph, – Geology, Hydrogeology

AMITSA, BCF & Climatic Data Collection.

Mr Joseph A. Bamtefa Bsc – Environmental Biochemistry

and Data Processing.

Mr Adewunmi Okumodi MSc – Analytical Chemistry & Air

Quality Assessment

DR. Sola Ojosipe (BATO) – Laboratory Analysis & Results

(Associate) Presentation.

NESTLE

Engr. Alex Richoz – Project Manager.

Background Information– Technical .

Engr. Ezekiel Aluko – Project Engineer

(Process Data Collection Facilitator)

Engr. (Mrs) Adeola Remi - John – Factory Safety & Environment Manager.

(Project Plant Coordinator)

Engr. Femi Ojumu – Factory Safety & Environment Officer.

Mr Kingsley Augustine – Data Collection Facilitator.


EXECUTIVE SUMMARY

1. THE APPLICANT

Nestle Nigeria PLC is a Multinational Company. It operates from three locations. The Head office is located at ILUPEJU, Lagos State. Both the Factory Complex and Distribution Deport / Centre are sited at Agbara and Ota respectively in Ogun State.

Simple trading operations in Nigeria began in 1961. The Factory Complex commenced Manufacturing Operations since 1979.

Nestle Nigeria was listed on the Nigerian Stock Exchange (NSE) in 1979 with about 22,843 Nigerian Shareholders. Currently Nestle S. A. of Switzerland and Nestle CWA Limited, Ghana are the major Shareholders of the company. As at 31st December 2008, the number of Nigerian Shareholders was about 31,000 with 37.7% Shareholdings.

The local processing of Maggi Products (cubes / tablets) began at Ilupeju prior to the commissioning of the Factory Complex in Agbara Industrial Estate in 1980.

Today, three decades, after the introduction of the Maggi Products, the culinary / kitchen aids have become very popular household cooking items both at domestic level and for hospitality outlets in the country.

The acceptability of the products as seasoning / culinary items by consumers has necessitated the current facility and storage capacity expansion project

LEGAL AND ADMINISTRATIVE FRAMEWORK

Nestle Nigeria Plc (NNP) is an integral part of Nestle S. A of Switzerland, and therefore adheres to the principle of sustainable development which conforms with International and National Requirements on the protection of the environment with respect to new developments.

Some of the specific statutes, guidelines and standards which regulate the Food (and Drink) Industries in Nigeria include :

i)  Federal Environmental Protection Agency Decree No 58 of 1988 (now replaced by National Environmental Standards and Regulations Enforcement Agency (NESREA) Act 2007)

ii)  Federal Ministry of Environment (FMEnv) Act of 1999

iii)  Environmental Impact Assessment Decree (EIA) No 86, 1992. – This requires that EIA be prepared for all new major projects / activities.

iv)  Ogun State of Nigeria, Environmental Protection Agency (OGEPA) Edict No 1, 1995. – Under this Edict, an industry undertaking any new project / expansion that does not fall fully under EIA, must conduct Environmental Implication Studies (EIS) which is what applies to Maggi Products and Warehouse Facility Expansion Project (MPWFEP).

The layout of the MWFE Project is in conformance with the existing national and international requirements that a Modern Food Industry is expected to comply with, regarding environmental protection during construction and operation phases of the project. It has also been endorsed by the Bureau of Lands, Survey and Town Planning of Ogun State of Nigeria.

The EIS has been prepared as a Pseudo EIA, using the OGEPA approved guidelines / regulations (2005).

2.  PROJECT JUSTIFICATION & VIABILITY

The Maggi Products and Warehouse Facility Expansion (MWFE) Project was undertaken in order to :

o  Increase the volume of Maggi Products for the numerous consumers nationwide.

o  Introduce new generation of cubing and wrapping machinery for improved efficiency of processing the culinary products.

o  Increase the holding / storage capacity of the warehouse and there by reducing the movement of Raw / Packaging Materials and Finished Products between Agbara Factory and the Main Warehouse at Ota depot.

o  Provide additional job opportunities to Nigerians directly and indirectly and thereby assisting the country in her poverty alleviation programme.

o  Enlarge the scope of the company’s operations in Nigeria and to enhance its desire to remain an attractive financial investment to its shareholders.

2.2 The viability and / or sustainability of the Expansion Project is hinged on : -

§  Usage / acceptability of the products which cuts across social strata, affordability coupled with continuous quality improvement and aggressive marketing support.

§  High local contents of the products with relatively low inputs from importation.

3.  PROCESS DESCRIPTION / ACTIVITIES.

Maggi Products Facility Expansion (MPFE) project is best summarized from two perspectives, namely

1)  Facilities for Processing which include :

q  Those for Supply & Storage of Raw materials – weighbridge, forklift, pallets, Warehouse, platform weighing machine, Lansing, Big Bags, Big Bag Rings / Hangers / Cover, Chain Hoist, Big Bag Safety Bracket etc.

q  Those for Processing / Manufacturing – Hopper, Pressing & Wrapping Machines, Collecting Conveyor, Cubes / Tablets Collecting crates etc.

q  Those for Cleaning and Date Marking – Packers, Brushes, Scrappers, Printers & Computer.

2)  Processing Operations – which can be described in THREE distinctive stages, comprising of about EIGHTEEN different steps :

The 3 main stages are ; Maggi Mass Processing, Maggi Cubes / tablets Processing & maggi Machop Processing.

STAGE ONE involves – cleaning of soyabeans, Fermentation, Cooking, Drying, Milling, Tipping / Weighing, Mixing & Sampling for QC and Packing of Finished Maggi Mass.

STAGE TWO involves – Sieving of Maggi Mass, Pressing of Sieved Mass, Cubing / Tableting, Wrapping & Sampling for QC and Packaging, Date Marking of cubes / tablets.

STAGE THREE involves tipping of Raw materials for the Maggi Machop, Satcheting and Sealing, monitoring of foreign bodies (metals), palleting and QC testing.

4.  DESCRIPTION OF THE EXISTING ENVIRONMENT

The MWFE Project is located in Agbara Industrial Estate (AIE). This is a Private Estate, cited on about 454 hectares of land, in Ado – Odo Ota Local Government Area of Ogun State.

The Nestle Factory Complex, which houses the MWFE Project occupies an approximate 19.25 hectares of the total available land of the Estate (3.6%) while the Maggi Products Area and Warehouse Expansion cover a total of (1,600m2 + 5,000m2) which amounts to 3.4% of the Factory Complex.

The Project site required only minimal land preparation because the Factory Complex has been in operation for nearly three decades. The expansion location had been provided for in the factory.

Also the usual problem of land acquisition, ownership settlement / compensation payment and bush clearing, characteristic of new industrial project in Nigeria, were not encountered.

The Project site is not a VIRGIN Land. The Expansion sites (Maggi & Warehouse) are part of the existing processing and storage location.

However, some baseline information / data were obtained and presented. These include ;

4.1  Ecological Characteristics :

Showing that area falls within Lowland Rain Forest. The vegetation in and around the Estate is mainly farmland, bush fallow, secondary forest and fresh swamp forest.

4.2  Geology, Hydrogeology and Climatic Conditions :

Indicating that the Project location is part of Eastern portion of Dahomey (Benin) basin which extends into Ogun State (South West Nigeria). The sediments of the basin vary significantly in lithology and texture. The Vertical Electric Sounding (VES) data of the area revealed that the soil of the area is stratigraphically made up of FIVE geoelectric layers. These are essentially Sandy Ferrugenous / Reddish clay top soil, Clayey units, Sandy aquifers and Grayish Dark Clay.