NigeriaElectricity and Gas Improvement Project (NEGIP)
Environmental and Social Management Framework (ESMF)
Prepared by
The Environment, Resettlement and Social Unit (ERSU),
Project Management Unit (PMU)
Power Holding Company of Nigeria (PHCN),
7 Kampala Street,
Wuse II, Abuja, Nigeria
August, 2008.
Environmental and Social Management Framework (ESMF) for NEIP
Acronyms
AGISAbuja Geographic Information System
APLAdaptable Program Loan
CDPCommunity Development Program
CEOChief Executive Officer
CLOCommunity Liaison Officer
DisCoDistribution Company
DPRDepartment of Petroleum Resources
EAEnvironmental Audit
EIAEnvironmental Impact Assessment
EMF Electromotive Force
EMPEnvironmental Management Plan
EPIC Electric Power Implementation Committee
EPZExport Processing Zone
ERSUEnvironment, Resettlement and Social Unit
ESMFEnvironmental and Social Management Framework
FCDA Federal Capital Development Authority
FCTFederalCapitalTerritory
FEPA Federal Environmental Protection Agency
FGNFederal Government of Nigeria
FMEH Federal Ministry of Environment and Housing
FMEnv Federal Ministry of the Environment
GenCoGeneration Company
GHGGreen House Gas
IDA International Development Association
IFCInternational Finance Corporation
IOCInternational Oil Company
IPC Ibom Power Company
IUCN International Union for the Conservation of Nature
JVJoint Venture
Mmcfdmillion cubic feet per day
MWMega Watts
MYTOMulti-Year Tariff Order
NCP National Council on Privatization
NEIPNigeria Energy Infrastructure Project
NEPANationalElectric Power Authority
NERCNational Electricity Regulatory Commission
NGC Nigeria Gas Company
NIPP National Integrated Power Project
NMNautical Mile
NNPCNigeria National Petroleum Corporation
OPNOperational Policy Note
PHCNPower Holding Company of Nigeria
PMUProject Management Unit
PPAPower Purchase Agreement
PRGPartial Risk Guarantee
RAP Resettlement Action Plan
ROWRight of Way
RPFResettlement Policy Framework
RTMRegional Transmission Manager
TCFTrillion Cubic Feet
TCNTransmission Company of Nigeria
TTLTask Team Leader
WBGWorld Bank Group
WCMWork Centre Manager
WHOWorld Health Organization
Table of Contents
Acronyms
Table of Contents
Executive Summary
1Introduction
2Description of the Environment
2.1Bio-Physical Environment
2.2Vegetation
2.3Political Geography and Population
2.4Natural Resources and Land Use
3World Bank SAFEGUARD Policies
3.1OP/BP 4.01: Environmental Assessment
3.2OP/BP 4.04: Natural Habitat
3.3OP/BP 4.11: Physical Cultural Resources
3.4OP/BP 4.12: Involuntary Resettlement
3.5Sector Guidelines for Electrical Power Generation and Transmission
3.6Pollution Standards
4Nigeria Regulatory Framework
4.1Environmental Impact Assessment Act (Decree 86) of 1992
4.2Pollution Standards
4.3Land use Act of 1978 (amended in 1990)
4.4International Conventions and Treaties RATIFIED BY NIGERIA
5Description of the Energy Sector
5.1Reforms in the Energy Sector
5.2Sector Institutions
6Project Description
6.1Project Concept
6.2Project Components and Intervention Plan
7Safeguards Preparation, Review and Approval Process
8Potential Impacts of NEIP
8.1Impacts of the NEIP ON THENiger Delta
9Institutional Capacity for Environmental Management
9.1ERSU Skills and Gaps
9.2PHCN
9.3FMEnv
9.4Relationship between the Federal Government and States
Annex 1.Summary of Consultations
(Annex) 1.1NGO stakeholders workshop, WB office, Abuja, May 2, 2008
(Annex) 1.2Ibom Community Development Program
Annex 2.Cost Breakdown for ERSU in the NEIP
Annex 3.Safeguards Tables
Annex 4.Contents of an EIA
Annex 5.Guidelines for the preparation of EMP
Executive Summary
This Environmental and Social Management Framework (ESMF) is an assessment tool for the proposed Nigeria Energy Infrastructure Project (NEIP). The NEIP by environmental screening is a category ‘A’ project requiring a full EIA according to World Bank and Government standards.[1] The likely impacts of this project are large scale, covering a wide area, and affecting a large population and diverse habitats and ecosystems. NEIP is an Adaptable Program Loan (APL) aimed at assisting the Federal Government of Nigeria, through a combination of partial risk guarantees (PRG), International Development Association (IDA) investment and technical assistance, in improving and developing the Nigerian power sector. It follows a programmatic approach, and will consist of numerous investments and guarantees over an extended time period, some of which will be determined long after project initiation. This ESMF therefore sets a framework aimed at assisting the proponents in carrying out detailed environmental and social assessments for each of the new subprojects as it is proposed for investment, and it will direct the subproject sponsors in steps to be taken in making sure the project is environmentally sustainable. For work at existing power stations that may be included in this project, an environmental audit (EA) will be conducted as a first step in the implementation process to determine the physical state of the facilities, the viability of investing in their rehabilitation from an environmental management perspective, and the potential environmental and social impacts associated with the rehabilitation project. Minimum requirements for an EA in the power sector are presented in Annex 4.
A Resettlement Policy Framework (RPF) has been prepared and is disclosed as a separate document. Following the procedures set out in the RPF, a Resettlement Action Plan (RAP) will be prepared by each subproject sponsor using the template as specified in the NEIP RPFif relocation or loss of assets or means of livelihood will be involved.
The Bank policies on environmental assessment, natural habitats, physical and or cultural resources, and involuntary resettlement have been triggered. NEIP has the following potential impacts: loss of vegetation/habitat, fragmentation of habitat, chemical contamination of soil, water, air, and noise pollutionduring construction, liquid and solid wastes management, as well as potential impacts on local populations (loss of crops, fishing and hunting resources) and cultural assets (e.g. burial sites, places of worship) etc.
The Environment, Resettlement & Social Unit (ERSU) of PMU possesses demonstrated capacity to prepare and put into effect the EMPs and RAPs required for the successful implementation of NEIP investments in power generation, transmission and distribution. The more technical aspects of EIA preparation and environmental audit for these types of investments and for rehabilitation of existing generating plants will be outsourced. Private sector sponsors of investments in generation will be responsible for their own EIA preparation and implementation. The ERSU will serve as the utility’s reviewer and monitor of EIA implementation by private sponsors and needs to be trained and equipped to make up for gaps in capacity to carry out these functions.
1Introduction
The electric power sector in Nigeria suffered long periods of neglect with decades of virtually no investment during the military regimes. This led to the decay of electricity infrastructure, loss of assets of the sole government electric utility and a general lack of capacity to meet the electricity demands within the country. With the advent of democracy in 1999, the Federal Government of Nigeria took certain steps to restorethe electric power sector by investing in the rehabilitation of the transmission and distribution infrastructure while carrying out studies on the best ways to improve generation capacity. The government also embarked on the reform of the sector by passing the Electric Power Sector Reform Act into law in 2005. This Act was aimed at unbundling the National Electric Power Authority (NEPA) into eighteen Business Units that will eventually with time, become privately owned companies.
These efforts were aimed at bridging the gap between electric power demand and power generated by the government utility. This gap 2008 is in the region of 8,700 MW and is mainly due to (i) lack of adequate generating units to put energy on the national grid and (ii) lack of gas to fire the available plants. A number of existing power plants are out of service for reasons ranging from lack of maintenance to lack of spares. The Nigeria Gas Company (NGC) is also not able to supply enough gas to the thermal plants to ensure the running of all available units. Although Nigeria has vast reserves of gas, much of this is flared.
As part of its strategy, the Federal Government of Nigeria (FGN) has asked the Bank to support a Nigeria Energy Infrastructure Program (NEIP) that will promote private-sector development of gas-fired power generation, finance the rehabilitation of existing thermal generating stations to increase their energy production, and finance new transmission and distribution capacity to deliver the additional power to the national grid and to regional customers. The program will be in two phases.
Since the specific subprojects are not known with certainty during this time the project is being prepared for presentation to the Bank’s Board of Executive Directors, Bank environmental assessment policy requires the borrower to prepare an Environmental and Social Management. Framework (ESMF) that is to establish a mechanism for assessment of the environmental and social impacts of all program subprojects, and to set out in general the mitigation, monitoring and institutional measures to be taken during implementation and operation of the program to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. This ESMF therefore provides the expected guidelines and defines the procedures whereby environmental impact assessments (EIAs) and eventually environmental management plans (EMPs) will be prepared and implemented for each subproject of the NEIP as may be required. This document is in compliance with Bank safeguards policies and the relevant Nigerian environmental policies, laws, and regulations.
Furthermore, the borrower has also prepared a Resettlement Policy Framework (RPF) to address the needs of those who might be affected when a subproject supported by NEIP causes the involuntary taking of land and other assets resulting in: (a) relocation or loss of shelter, (b) loss of assets or access to assets (c) loss of income sources or means of livelihoods, whether or not the affected person must move to another location. The RPF has been prepared as a separate, stand-alone document.
The borrower is further required to disclose both documents (the ESMF and the RPF) in-country as two separate draft documents so that they are accessible by the general public, local communities, potential project-affected groups, local NGOs and all other stakeholders. They will also be disclosed by the Bank at its InfoShop in Washington and in the PublicInformationCenter of its field office in Abuja. The date for the disclosure of these documents will precede the date for appraisal of the investment program. Stakeholders must be consulted during preparation of the ESMF and RPF and must be given ample opportunity to review and comment on the drafts. The final versions of both documents will be disclosed at the same locations and will include summaries of the consultations, the comments and suggestions received, and their disposition.
2Description of the Nigerian Environment
2.1Bio-Physical Environment
The Federal Republic of Nigeria is located on the west coast of Africa and is bounded on the west by Benin Republic (with a boundary of about 773 km), on the north by Niger (with a boundary of 1,497 km), on the east by Chad and Cameroon (with a combined boundary of 1,777 km) and on the south by the Gulf of Guinea (853 km of coastline). Ithas a continental shelf of 200 m depth, an exclusive economic zone of 200 nautical miles (NM) and a territorial sea of 12 NM. Nigeria lies around latitude 10o00’N and Longitude 8o00’E and has a total area of 923,768 km2.
It consists of four major natural zones: a 60-km wide coastal band in the south indented by lagoons and by the immense Niger River Delta; a stretch of high forest-covered mountains (Shebshi Mountains) rising to heights of about 2,042 m above sea level in the west; the Jos Plateau (1,200 m) in the centre; the Highlands along the eastern border, south of the Benue River; and the plain of Sokoto and the Lake Chad Basin in the north, which forms part of the Sahel region, and is semi desert. The highest point in Nigeria is Chappal Waddi at 2,419 m (7,936 feet). The River Niger traverses the country from the northwest, meets the River Benue at Lokoja in the central part of the country before draining into the Atlantic in a deltaic fashion.
Nigeria is divided into three main climatic regions: the tropical rain forest region covering the southern part of the country with an annual rainfall of around 2,000 mm (80 inches), the near desert region covering the far north of the country with an annual rainfall around 500 mm (20 inches) and the savannah region with annual rains around 1,000 mm (40 inches) and covering the central portion of the country.
Niger Delta
The Niger Delta is one of the largest deltas in the world. Located in southeastern Nigeria, it covers over 20,000 square kilometers. The Niger Delta receives inputs from a total catchment area of 2.23 million km2 and has the fourth largest average annual discharge in Africa: 180 billion m3. Within the Delta floodplain, the river splits into six major tidal channels and innumerable smaller outlets. Fluvial sediments are deposited throughout the Delta with sand and silt suspension during both high and low flood regimes. Construction of dams along the Niger during the last twenty-five years has significantly modified flow regimes and sediment deposition. Tidal currents, which range up to 1.5 m/sec, determine sediment settling patterns near the coast.
The mean monthly temperature is 27°C and humidity remains constant around 80%.
The Delta can be roughly categorized into four ecological zones: coastal barrier islands, mangroves, freshwater swamp forests, and lowland rainforests. The hydrological boundaries between ecological zones are fluid and depend on seasonal river flows. Over 80% of the Delta is seasonally flooded, including all the swamp forest, except the riverbank levees. During most years, only select elevated areas remain dry. The flooding causes severe and extensive riverbank erosion. When the flood waters recede, the channels that spread out across the delta leave swamps and pools that drain only poorly, if at all. Through erosion, water accumulation, and sediment deposition, the Niger Delta is constantly reshaped by flooding. However, since the construction of the Kainji Dam on the Niger River in the late 1960s, peak discharge volumes have declined by approximately 30%, disrupting the hydrological balance.
2.2Vegetation
The vegetation of Nigeria is of four main types: Savannah, Forest and Montane. The savannah vegetation stretches from the central parts of Nigeria to the extreme northern parts. It is divided into marginal – Sahel – (in the northeastern borders), short grass – Sudan – savannah (stretching from upper western borders to the northwestern borders) and woodland and tall grass – Guinea – savannah (lying below the short grass savannah and covering the central states and parts of the eastern region of the country). The tropical forest vegetation covers the remaining southern portion of the country and is divided into three types: rain forest (with tall trees), fresh water swamp (consistingof both fresh and salt water swamps) and mangrove forest (made up of mangrove vegetation).
2.3Political Geography and Population
The Federal Republic of Nigeria is made up of thirty-six states with a federal capital territory ofAbuja. Each state is ruled by an elected governor and is assisted by a deputy. It is subdivided into local government areas, each headed by an elected Local Government Chairman. The country as a whole is ruled by a democratically elected President and assisted by a Vice President.
The 2006 national population census put the population of Nigeria at 140 million, the most populous in Africa. Of this number, 68.3 m are women, while 71.7 m are men. The population growth rate is 2.4%. In general, Nigeria has a young population with a median age of 18.7 years.
Nigeria has more than 250 ethnic groups, with varying languages and customs, creating a country of rich ethnic diversity. The largest ethnic groups are the Fulani/Hausa, Yoruba, and Igbo, accounting for 68% of population, while the Edo, Ijaw (10%), Kanuri, Ibibio, Ebira Nupe and Tiv comprise 27%; other minorities make up the remaining 7%.
Despite its vast government revenue from the mining of petroleum, Nigeria is beset by a number of societal problems. Some of these problems are listed below.
There is evidence that the key health indicators have either stagnated or declined. Life expectancy is 48.5 years for females and 47.2 years for males. The infant mortality rate is 94 per 1,000 live births. About 52% of under-five deaths are associated with malnutrition. The maternal mortality rate of 800 per 100,000 live births is one of the highest in the world.
Disease prevalence rates include malaria, 919/100,000; dysentery, 386/100,000; pneumonia, 146/100,000; and measles, 89/100,000. The national median prevalence rate of HIV is 5.8%. Over 40 million Nigerians are exposed to Onchocerciasis; and about 120,000 have gone blind from the disease. Schistosomiasis is prevalent in rural areas which lack potable water, and control of the infection has been limited by the high cost of the drug of choice.
Due to its multitude of diverse, sometimes competing ethno-linguistic groups, Nigeria has seen sectarian tensions and violence. There are significant tensions on a national scale, especially between the primarily Muslim, highly conservative northern population and the Christian population from the Southern part of the country. Violence between Muslims and Christians occurred until 2004, when the Federal Government introduced tough new measures against religious violence.
Politics of the Niger Delta
There is tension and conflict in the oil-producing Niger Delta region, where both state and civilian forces employ varying methods of coercion in attempts to gain control over petroleum resources. Conflict manifests itself as intra-community (between the leaders and the people) and inter-community (between different communities or ethnic groups).
Despite its vast oil reserves, the Delta region remains poor. GNP per capita is below the national average of US$280. Unemployment in Port Harcourt, the capital of RiversState, is 30% and is believed to be equally high in the rural areas of the Delta. The rural population commonly fish or practice subsistence agriculture, and supplement their diet and income with a wide variety of forest products. Education levels are below the national average and are particularly low for women. While 76% of Nigerian children attend primary school, this level drops to 30-40% in some parts of the Niger Delta.