EIS: NGC IVFs & Eye Drops Facility Expansion Project

ENVIRONMENTAL IMPLICATION STUDIES

OF

INTRAVENOUS INFUSION FLUIDS AND EYE DROPS PRODUCTION FACILITY PROJECT

PREPARED BY

RAMBIGAS NIGERIA LIMITED

FOR

NIGERIAN – GERMAN CHEMICALS PLC, OTA PLANT

KM 38, ABEOKUTA EXPRESSWAY,

OTA, OGUN STATE

SUBMITTED TO

OGUN STATE ENVIRONMENTAL PROTECTION AGENCY, ABEOKUTA, OGUN STATE.

FEBRUARY, 2010

1

EIS: NGC IVFs & Eye Drops Facility Expansion Project

TABLE OF CONTENTS

PAGE

TABLE OF CONTENTSii

LIST OF TABLESv

LIST OF FIGURESvi

LIST OF APPENDICESvii

LIST OF ABBREVIATIONS & ACRONYMSviii

STUDY TEAMxii

EXECUTIVE SUMMARYxiii

ACKNOWLEDGEMENTxxi

CHAPTER 1 INTRODUCTION

1.0 The Applicant And Background Information. 1

1.1 Nestle Nigeria Plc. 1

1.2 Background Information2

1.3 Legal And Administrative Framework4

1.4 Objectives of EIA / EIS 6

CHAPTER 2 PROJECT JUSTIFICATION AND VIABILITY

2.1 Need for the Project7

2.2 Level of Investment and Envisaged Sustainability of

Project8

2.3 Terms of Reference ( TOR )9

CHAPTER 3 PROJECT DESCRIPTION

3.1 Nature of Project12

3.2 Project Location12

3.3 Consideration of Project Alternatives 14

3.4 Overview of Project Facilities17

3.5 Process Description20

3.6 Life Cycle Analysis ( inputs & Output Data )25

CHAPTER 4 DESCRIPTION OF THE ENVIRONMENT AND BASELINE

INFORMATION

4.1 Focus / Approach27

4.2 Site Selection, Preparation & Construction27

4.3 Project Land Area & Ecological Characteristics29

4.4 Geology, Hydrogeology & Climatic Conditions31

4.5 Socio – economic Features34

4.6 Infrastructural Facilities35

4.7 Identification, Quantification & Characterisation of Waste37

CHAPTER 5 ASSOCIATED AND POTENTIAL ENVIRONMENTAL

IMPACTS

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

Assessment46

5.2 Impact Assessment Method46

5.3 Estimation of Magnitude and Significance of Potential

Project impacts55

5.4 Hazards and Effects Management Process (HEMP) 59

5.5 Summary of Potential Environmental Risks and

Hazards Associated with Nestle MFE Project60

CHAPTER 6 MITIGATION MEASURES

6.1 Summary of Impacts, Source of Impacts and

Mitigation Measures.62

CHAPTER 7 ENVIRONMENTAL MANAGEMENT PLAN

7.1 EMP / NEMS66

7.2 Objectives of EMP67

7.3 Relationship Between EMS & EMP68

7.4 Supplementary EMP70

7.5 Nestle EMP/S73

7.6 Rehabilitation Plan Following Decommissioning / Closure75

CHAPTER 8 CONCLUSION AND RECOMMENDATIONS 76

BIBLIOGRAPHY 78

LIST OF TABLES

PAGE

Table 3.1 : Overview of Project Facilities17

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

Losses as Wastes of Raw Material & Finished Products25

Table 3.3 : Life Cycle Analysis – Showing Inputs, Output &

Losses as Wastes of P/Material used for Finished Products26

Table 4.1 : Air Borne Particulates measurement For Factory Complex36

Table 4.2 : Noxious Gases measurement for Project Site (MFE) 38

Table 4.3 : Noxious Gases measurement for

Project Site39

Table 4.4 : Analytical Results of Liquid wastes41

Table 4.5 : Analytical Results of Liquid Wastes Leaving The Factory Complex42

Table 5.1 : Environmental Components / Impact Indicators49

Table 5.2 : Rating Quantification For Impact Assessment50

Table 5.3 : Impact Matrix For Project Construction Phase52

Table 5.4 : Impact Matrix For Project Operation Phase53

Table 5.5 : Estimation of Magnitude and Significance of

Potential impacts of project55

Table 5.6 : Applicable Risks by Project Components58

Table 5.7 : HEMP Methodology59

Table 5.8 : Summary of Potential Environmental risk & Hazards

Associated with the Project 60

Table 6.1 : Potential Negative Impacts & Mitigation measures62

Table 7.1 : Management Plan/ Programme for Nestle MFE (Project Specific)70

LIST OF FIGURES

PAGE

Figure 3.1 : Schematic Diagram of Old & New Milo Production

Technology Layout.22

Figure 3.2 : Flow Sheet Diagram for Milo Production Using

Band Dryer Technology23

Figure 3.3 : Flow Sheet Diagram for Milo Production Using

Oven Line Technology24

Figure 4.1 : Geological Map of part of South West

of Nigeria – Covering the MFE Project Site30

Figure 4.2 : Well / Borehole log : Lithology &

Construction33

Figure 7.3 : Relationship between EMS & EMP68

Figure 7.4 : Nestle Environmental Management System

(NEMS) Flow Chart.69

LIST OF APPENDICES

PAGES

APPENDIX 1 : Factory Complex layout / Master Plan – showing

the Milo Facility Expansion Project Site Location. 80

2 : Layout of Project Production Block

(Legend 16 & 17 of Appendix 1).80

3 : National & State Environmental laws applicable

to the Food and Drink Industries.82

4 : NEMS – Policy on Environment.84

5 : NEMS – Manual to Staff on health & safety.85

6 : NEMS – Structure / Organogram68

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

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

MFE – Milo Facility Expansion

Mg / L – Milligram Per Liter

Mm – Millimeter

Mg – Manganese

MWth – MegaWatt Thermal

N - Nitrogen

NaOH – Sodium Hydroxide (Caustic Soda)

PHCN – Power Holding Company of Nigeria

NEMS / P– Nestle Environmental Management System / Plan

NH3– Ammonia

NOx– Nitrogen Oxides

NSE – Nigerian Stock Exchange

% - Percentage

ODS – Ozone Depleting Substance

P– Phosphorus

Pb – Lead

PH – Hydrogen ion Concentration

PTF – Petroleum Trust Fund

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

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 Aminu Sulaiman, BSc– Analytical Chemistry & Air

Quality Assessment

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

(Associate) Presentation.

NESTLE

Engr. Emmanuel Omokaro – Project Manager.

Background Information– Technical .

Mr Timothy Ayeni – Production Manager

(Process Data Collection Facilitator)

Mr Gbenga Oladunjoye – Manufacturing Manager

(General Process Background Information)

Mrs Adeola Remi - John –Factory Safety & Environment Officer.

(Project Plant Coordinator)

Mr. Matthew A. Olota – Factory Safety & Environment Officer.

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.

The Company was listed on the Nigerian Stock Exchange (NSE) in 1979 with about 22,843 Nigerian Shareholders. Currently 62% of the Company’s equity is owned by Nestle S. A. of Switzerland while the remaining 38% is fully owned by Nigerian investors.

The local production of Milo Chocolate Beverage Drink began in Factory in 1981. The first capacity expansion programme was undertaken in 1998. The second Facility expansion is the subject of this report.

Specifically, the Milo Facility Expansion (MFE) is a Nestle Nigeria Project. It is however supported by NESTEC which is the scientific / technical arm of Nestle S. A of Switzerland.

LEGAL AND ADMINISTRATIVE FRAMEWORK

Nestle Nigeria Plc (NNP) is 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 59 of 1992 (Now Fed. Min. of Env.) / (FEPA)

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

iii)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 MFE.

The layout of the MFE Project conforms 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.

  1. PROJECT JUSTIFICATION & VIABILITY

The Milo Production Project has been embarked upon in order to :

  • Provide the much needed and acceptable Beverage drink (Milo) to Nigerian populace who want safe but affordable Product.
  • Provide job opportunities to Nigerians directly and indirectly and thereby assisting the country in her poverty alleviation programme.
  • Enlarge the scope of the company’s operations in Nigeria and to enhance its desire to remain an attractive financial investment to its shareholders.

  1. PROCESS DESCRIPTION / ACTIVITIES.

MFE Project / Production is best described from two perspectives

1)Facilities which include : the weighbridge, warehouse, forklift, platform weighing machine, the filling / sealing equipment, mixing chamber vat, feed kettle, band dryers, granulator hopper tote bin, tipping bay, palmolein tank,. date marking and shrink wrapping machines. Other minor facilities include : barometer, thermometer, hydrometer, pallets, Air extractor.

2)Nestle Milo Processing can be described under SEVEN concise Steps ; namely :

Supply of raw material.

Wet mixing / Pasting to form homogenous paste with specific solid weight.

Recycling / Reworking of some wastes / rejects products.

Drying / caking.

Crushing / Granulating into grains / powder .

Filling, Coding and Packing of finished Product.

Date marking / Labeling of filled products preceed packing and shrinked wrapping for distribution channel.

  1. DESCRIPTION OF THE EXISTING ENVIRONMENT

The MFE 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 MFE Project occupies an approximate 16.3 hectares of the total available land of the Estate (3.6%) while the Milo Production area takes 1,188m2.

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. It is indeed adjacent to the existing processing location.

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

4.1Ecological 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.

4.2Geology, 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 sediment 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.

The grain size analysis of the borehole(s) sediment samples from the Project / Factory Complex confirm the observation.

The water table lies between 12 – 15 meter below the surface, making the area very suitable for the erection of Processing Structures, machinery and equipments without any threat to load carrying capacity of the soil.

The groundwater analysis indicates slight acidic level, and relatively high Iron content.

This explained the need for treatment of the raw water before use for processing. The climatic condition in the area is relatively humid with temperature ranging between 22oc to 30oc during the wet and dry seasons respectively.

4.3Socio – economic Situation

This is typical of urban settlement in Nigeria. Fast growing population with the presence of the three tier of government in and around the area. The Project area and Communities around it, enjoy some basic social amenities which include electricity supply, though erratic in supply, primary, secondary and tertiary institutions of learning, fairly good transportation system, health centers among others.

The economic activities in the area are highly diversified.

It is estimated that 40% of the people in the project area is engaged in trading, 25% in farming while about 20% are in white collar jobs and artisans. With increasing industrial activities, which the MFE project reflects in the area, commercial activities are foreseen to increase. Poverty level may equally decrease.

4.4Wastes Generation and Management.

Agbara Estate and its immediate surrounding suffer generally from atmospheric pollution which is due partly to periodic leakages of SO2 from the neighbouring Sulphuric Acid Plant as well as occasional release of H2S from the Estate Central Sewage Treatment Plant (CSTP), especially when system breakdown occurred.

Nestle Factory Complex is not immuned from the impacts of these atmospheric pollution. Results of noxious gases concentration measurement in few locations within the open spaces of the factory complex showed levels above the national Standard Limits

Liquid Waste from the industries and the adjacent residential area of the Estate are effectively channeled, through network of underground drainage system, into the Estate CSTP for treatment before final discharge into the body of water (Ologe lagoon). Nestle Factory Complex / MFE Project site has in place an effluents pre – treatment facility which is currently undergoing up –grading for improved performance. Analysis of final wastes discharged from the Estate CSTP suggested the need for improved performance of the treatment plant by the AE Property Services Ltd, the facility Manager.

Solid Wastes from Nestle Factory Complex and vicinity are mostly of perishable nature. Organised disposal system operates in the Estate. Ogun State Environmental Protection Agency (OGEPA) accredited Private Solid Waste disposal Companies are responsible for collection and delivery to the various officially designated landfill areas within the locality. However, Nestle still adopts the principle of wastes to wealth in its solid wastes generation and disposal system. Spent grains are dried and sold to livestock farmers (Re – use / Re – cycle), damaged tins / cans are crushed / bundled and sold to metal / iron producers, Empty drums, damaged pallets are sold to appointed agents for further uses. Packaging Materials Source Reduction is a major element in Nestle Environmental Management System (NEMS)

Noise / Sound Pollution – The main sources of noise / sound generation in the Project area are vehicular traffic movement and construction activities. Available data from the processing units in Nestle Factory Complex showed that the generator room, Milling,

Filling and Packing rooms have noise level ranging from 91 to 97dBA, which are comparatively higher than national permissible limits for 8 hours per day exposure have been eliminated with the introduction of Band Dryer. The impacts of these units on the MFE project site is minimal. It is not envisaged that any operational activity within and around the MFE project on completion / commissioning, would result in the generation of noise pollution above the permissible level.

  1. POTENTIAL IMPACTS AND MITIGATION MEASURES

The purpose of conducting the EIS before the commissioning of the MFE Project is to allow a feedback of the anticipated / predicted adverse impacts into the final design / planning and consequently effect mitigation at that stage. The mitigation measures ensure that negative effects are brought to acceptable minimum level.

Assessment of existing environment, baseline data and associated / potential impacts revealed that the MFE project has minimal adverse environmental impacts. Most of the identified impacts of the project from the Construction Activities to anticipated Processing Operations on physical, biological and human parameters are beneficial.

However, sources of the identified negative impacts were indicated and mitigation measures were proposed.

  1. PROJECT SPECIFIC RISKS AND HAZARD ASSESSMENT

A risk and hazard assessment was undertaken for non – routine environmental hazards, which may arise during the construction and operational phases of the MFE Project.

Evaluation of the risks and the potential effects on human health, terrestrial and air / atmospheric environment suggested that the MFE project may not pose many serious / major risks and hazards. In cases where the magnitude is considered appreciable, possible actions to reduce the risk or eliminate the hazard were recommended. Hazards and Effects Management Process (HEMP) is emphasized.

  1. ENVIRONMENTAL MANAGEMENT PLAN (EMP)

The Corporate Policy of NESTLE worldwide, integrates Environmental Management System into the development and operational activities.

EIS report has taken into consideration the existing Nestle Environmental Management System (NEMS) which is based on the International Environmental Management Plan (ISO 14001 Standard). Records showed that NEMS has been in operation at Nestle Factory for about one decade and still effective.

However, a project specific Supplementary EMP was prepared to ensure that all the stated objectives of the EIS for the MFE Production are applicable not only during the construction phase but throughout operation and maintenance phases.

  1. CONCLUSION

The EIS has appropriately identified and drawn attention to the Nestle MFE Project and provided adequate mitigation measures.

The positive impacts (benefits) of the project far outweigh the few adverse / negative impacts.