Nigeria Solar Capital Partners Ltd/ Globeleq/ARM-Harith

Nigeria Solar Capital Partners Limited (NSCP) is developing a 100MW solar power plant (hereafter referred to as the “Project”) in Bauchi State, Nigeria. Pursuant to a Joint Development Agreement signed in 2016, the project is under co-development with Globeleq Advisors Limited and the ARM-Harith Infrastructure Fund.

The Project involves the construction and operation of a photovoltaic power plant with 100 MW installed capacity, in Zongoro Village, Bauchi State, Nigeria. The Project will also include an 18 km 330 kV overhead transmission line to interconnect the power plant with to the national grid, and ancillary infrastructure such as an internal substation, office buildings and control centre, and internal access roads.

NSCP is a joint venture between Industry Capital, a private equity group based in California, and Gigawatt Global, a Dutch-based renewable energy company focused on the development and management of solar power plants in emerging markets.

The proposed project will comprise of polycrystalline photovoltaic (PV) solar panels with a total installed capacity of 100 MW, occupying a total project area of approximately 200 ha. The project will also include an on-site substation, ancillary facilities such as a control building and residential quarters, lay down and staging area, and a 18km long 330 kV transmission line connecting the project to the national grid. The construction period is expected to be between 12 and 18 months. An EPC contractor for the Project has not yet been selected.  

The Project is a category A under MIGA’s Policy on Environmental and Social Sustainability (2013). The main environmental and social issues associated with the Project relate to land acquisition including physical resettlement, contextual security risks, workers and community health and safety risks, and waste management.

While all Performance Standards are applicable to this investment, our current information indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

• PS1:  Social and Environmental Assessment and Management Systems
• PS2:  Labor and Working Conditions
• PS3:  Pollution Prevention and Abatement
• PS4:  Community Health, Safety & Security
• PS5:  Land Acquisition & Involuntary Resettlement

E&S issues associated with the following PSs were not encountered during the assessment of the Projects:

• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources is not triggered because impacts on significant biodiversity values are not expected.
• PS7: Indigenous Peoples is not expected to be triggered as the Project does not adversely affect any Indigenous Communities, as defined by PS7.
• PS8: Cultural Heritage is not triggered as consultation with local regulatory organizations and the review of available records undertaken as part of the Environmental Impact Assessment (EIA) process did not identify any known sites of archaeological or cultural heritage value within the Project site boundaries. However, a chance finds procedure will be developed for the construction phase of the Project, consistent with PS8.

The World Bank Group (WBG) General Environmental, Health and Safety (EHS) Guidelines, and the EHS Guidelines for Electric Power Transmission and Distribution apply to this Project.

An Environmental and Social Action Plan (ESAP) has been agreed between the Project and MIGA, including any outstanding measures identified to ensure compliance with the requirements of the Performance Standards and EHS Guidelines (Annex 1).

In addition to reviewing environmental and social documentation, MIGA’s due diligence included visit to the Project site conducted by a consultant. The site visit included meetings with relevant Project representatives, local authorities and community leaders, and tour of the Project site.

The following documents were reviewed by MIGA:

• Final Environmental and Social Impact Assessment Report for the Proposed 100MW Solar Independent Power Plant and 18 KM Transmission Line Project. January 2016, EnvironQuest.
• Resettlement Action Plan for the Ganjuwa Solar Project, ERM on behalf of NSCP/Globeleq/ARM-Harith. June 2017.
• Cumulative Impact Assessment for the Ganjuwa Solar Project, Nigeria. ERM on behalf of NSCP/Globeleq/ARM-Harith. May 2017.
• Bauchi Solar Site Emergency Response Plan. GardaWorld.
• GigaWatt Global Health, Safety & Environmental Policy

PS1:  Assessment and Management of Environmental and Social Risks and Impacts

Environmental and Social Assessment:   An Environmental and Social Impact Assessment Report (ESIA) has been prepared for the Project, covering both construction and operations phases. The ESIA was prepared in accordance with Nigerian regulation and the Performance Standards, and describes the Project activities, provides physical and environmental baseline information and socio-economic baseline information, identifies and assesses environmental and social risks and impacts during preparation, construction and operations phases, and proposes measures to mitigate adverse environmental and social risks and impacts. There are no cumulative impacts anticipated in relation to the Project.

In accordance with Nigerian ESIA requirements, the Federal Ministry of Environment (FMEnv) disclosed the ESIA report to the public for review and comment, and has since approved the report after having scheduled a technical review by appointed experts. 

Management Program and Monitoring:  A framework for an Environmental and Social Management Plan (ESMP) has been prepared as part of the ESIA, and the EPC contractor will develop and implement a comprehensive Environmental and Social Management System for the Project as per the ESAP. The framework ESMP includes provisions and information related to roles and responsibilities, mitigation measures, monitoring, reporting and auditing. It provides a framework for the development of detailed construction management plans, which will be implemented by the construction contractors. Environmental Resources Management (ERM) has been contracted to develop a more detailed ERMP and relevant management programs, as specified in the ESAP.

A Health and Safety Plan will be implemented, including management of occupational health and safety, risk assessment, health and safety induction trainings, documentation and reporting, training of personnel and emergency prevention. The requirements will apply to the EPC contractor as well as all sub-contractors involved in the Project. Environmental, health and safety training for personnel and contractors will be managed through the ESMP.

The EPC contractor will develop an Occupational Health and Safety Plan for construction. Safety performance will be monitored internally by the EPC contractor, by the Project EHS department and an independent third party monitoring consultant.   

Emergency Preparedness Procedures: An emergency response preparedness system will be implemented, including a Project overall Emergency Response Plan, and separate plans for each construction contractor. The procedures cover capacity, training, risk assessment, incident prevention, reporting and instructions for potential emergencies. The procedures will be developed to be an integrated part of the ESMS, and will also include specific plans for medical emergencies, and environmental emergencies.

Organizational Capacity and Training: The primary responsibility of ensuring that environmental commitments are met throughout the life cycle of the proposed Project shall be retained by NSCP/Globeleq/ARM-Harith. For the construction and operation of the Project, NSCP/Globeleq/ARM-Harith will train employees in environmental management, and occupational health and safety. NSCP/Globeleq/ARM-Harith will provide resources to the development and implementation of the ESMP and related management procedures, including a qualified Project Health, Safety and Environment (HSE) team at site.

Reporting: Incidents will be reported to the HSE manager at site, whose responsibilities include preparation of monthly HSE report. External HSE reports will be submitted to FMEnv, summarizing monitoring results, incidents and corrective actions as applicable and Project status.   The FMEnv will also undertake scheduled site inspections to assess compliance with the measures in the EIA and ESMP. In addition to internal and Government reporting procedures, the Project will provide MIGA with a semi-annual Environmental and Social Monitoring Report during construction and an Annual Environmental and Social Monitoring Report during operations.

PS2:  Labor and Working Conditions

During the construction period, the Project expects to hire (directly or indirectly) approximately 600 workers, out of which approximately 525 will be staff hired by the construction contractors. During operations, it is anticipated that the Project will employ approximately 100 staff (including 30 security guards), the majority of whom will be local employees. In addition, there will be financial and managerial staff located in Abuja.

Human Resources Policy and Procedures: NSCP has an HR Policy in place that will be applied to the Project. Employees have contracts in line with the Nigerian Labor Act and include termination by notice, work hours, wages, benefits, and collective agreements terms.

Although a high percentage of the construction workforce will be local, foreign laborers and ex-pats are also expected during the construction phase of the Project.

Working Conditions: Working conditions, payment of wages and benefits will comply with applicable law. All workers to be hired for the Project will be remunerated in line with the existing conditions of service of the contractor negotiated with the relevant trade union to which workers of the contractor are organized by law. Remuneration package includes, but is not limited to basic salaries, housing allowance, meal subsidy, etc.

Workers accommodation: A construction workers camp will be developed to house approximately 750 people during the construction phase, located at the south-east corner of the Project site (within site boundaries). The camp will include the necessary amenities such as a dining hall and kitchen and a primary health care facility. Other services and infrastructure will likely include a water treatment plant, sewage treatment plant, power generation, fuel storage, miscellaneous storage and fire-fighting equipment.

PS3:  Resource Efficiency and Pollution Prevention

Risks and impacts are related to waste and hazardous materials management, noise emissions, soil erosion and runoff, and surface and ground water quality. These risks and impacts will be managed through Project design and mitigation measures provided in the ESIA and EMP, and implemented by contractors. Construction environmental management will be overseen by the Project through the management and monitoring procedures set out in the EMP.

Air emissions:   Construction related impacts to air quality resulting from site traffic and site vehicle emissions are considered minor.  The construction EMP will include procedures to minimize and control PM10 and NO2/NOx and dust emissions. 

Noise: Noise emissions will result from a variety of sources during construction, but noise emissions will be short-term, and limited to the immediate vicinity of the Project. The closest sensitive receptors will be the construction camp and the nearest community at a distance of approximately 500 meters.

Standard measures for the management of the impact of construction and traffic noise are included in the ESMP. The EIA indicates that during both construction and operation phases, noise impacts at the receptors will not be significant. The Project will regularly monitor noise levels to ensure that it is in compliance with guideline values.

Water resources and quality: During construction, water will primarily be used for dust suppression on roads and during earth moving works. Water usage during operations is limited to cleaning of the PV panels, which is estimated at 600 m3/year, a requirement which will be met through a combination of a rain water harvesting pond and groundwater extraction. Due to the low volume, water runoff from the cleaning will evaporate or be absorbed to the ground, no drainage canals will be necessary.

Waste management: The framework ESMP includes generic waste management procedures, and detailed Project-specific waste management plans will be developed for construction and operations phases, in line with Nigerian regulatory and PS3 requirements. Licensed third-party operators will be contractors for collection of both solid and hazardous waste.  Equipment and machinery maintenance will be done off-site. The plan will be complemented to include recycling of PV solar panels during operation.  During operation, the Project will not generate any type of solid, liquid or gaseous byproducts or use non-renewable resources.

PS4:  Community Health, Safety & Security

The Project is located in the Zongoro village, Ganjuwa Local Government Area of Bauchi State, approximately 20 km from Bauchi town. The Project is located in a rural area, where over 80% of the population lives below the poverty line. There are 3 settlements within the Project footprint, and another 7 partially affected by the transmission line RoW. The primary off-site health and safety issues associated with the Project is the movement of equipment, aggregate materials or spoils material to and from the Project site during construction, and impacts associated with the influx of workers.

The Project site is accessible by tar road from Bauchi and traffic-related impacts on the communities are expected to be limited. A traffic management plan will regardless be implemented to minimize the risk of traffic incidents, including transport procedures, vehicle fitness requirements, emergency response, defensive driving procedures etc.

Construction workers will be accommodated in an on-site workers camp, and a code of conduct will be implemented for all workers with respect to the expected ethics on and off site. A Community Liaison Officer will be appointed, managing all communication and grievances with neighboring communities and overseeing the implementation of the Stakeholder Engagement Plan (SEP).

In addition to consideration of safety risks, the ESMP will include measures to mitigate the risk of communicable diseases, including worker health screenings and the implementation of a HIV/AIDS awareness program in the local communities.

Security Arrangements: The Project site will have perimeter security in the form of concrete fencing and entry control points. During construction and operation, security arrangements will be amended with a CCTV system and an agreement with local police in the event that additional resources are needed.

A Site Security Plan will be developed as per the ESAP, including Project policies and standards related to employment, use and code of conduct for security guards, appropriate use of force and induction trainings for all workers on conflict avoidance, and reporting and management procedures for security incidents. 

PS5:  Land Acquisition & Involuntary Resettlement

The total Project footprint covers an area of approximately 200 ha, excluding the 50 m wide RoW for the 18 km overhead transmission line. Current land use in the Project area is primarily crop farming, mainly crops such as maize and rice, and livestock grazing.

The footprint of the Project will physically displace 46 households and economically displace a further 193 households. 43 households are living within the Project site and there are an additional three households living within the transmission line Right of Way (RoW). Additionally, there are 193 households who undertake livelihood activities, mainly farming and semi-free-range livestock (sheep, goats, cattle and free range poultry), within the Project footprint

With the inclusion of those losing access to vacant land, the total number of affected households is 297.

A Resettlement Action Plan (RAP) has been prepared by Environmental Resources Management, describing the principles for resettlement and compensation based on national regulatory requirements and PS5, results of the census with categorization of entitled Project-affected persons, eligibility matrix, and description of responsibilities, budgets and monitoring framework for the resettlement and compensation process.

Apart from Project staff and the communities, two bodies will be established for the implementation of the RAP, a Resettlement Steering Committee with a supervisory role made up of representatives from NSCP senior management, local leadership, key ministries, NGOs, etc., and a Community Resettlement Committee focused on implementation and facilitation of the RAP activities, with representatives from Project RAP team, displaced communities, local administration and NGOs.

Compensation and benefits: Based on the census of the affected population, nine categories of affected households were identified, taking into consideration both Nigerian land law and PS5 requirements: (1) House owner; (2) Agricultural land occupier; (3) Crop/tree cultivator; (4) Owners of non-habitable physical assets; (5) Owners of non-habitable movable assets; (6) Users of grazing land; (7) Fishermen; (8) Households along the RoW losing less than 10% of land and / or cash crops ; (9) Vacant / fallow land. Land/asset valuation will be conducted employing a replacement cost, and the Project will supplement (where necessary) the compensation set-out by national regulation to ensure that PS5 requirements are met. This will include top-up compensation to ensure that compensation is equivalent to full replacement value, relocation allowance, disturbance allowance, and livelihood restoration and improvement programmes.

Additional support will be provided to households identified as vulnerable, including but not restricted to, households with female head, households with disables or chronically sick members, elderly persons living alone, households with income below poverty line, etc. 

Resettlement sites: Resettlement sites have been identified in consultation with affected communities, including host-communities. The affected groups were actively incorporated in the decision-making process, which included an analysis of alternatives, establishment of site selection criteria, workshops and individual consultations with 100% of the affected households.

Six resettlement sites have been identified. During RAP implementation, the Project will continue to consult with the affected households to agree on the sites and generate statements of acceptance, as well as Memorandum of Understandings with the State Government and the traditional leadership of the host communities. 

Livelihood restoration: A Livelihood Restoration Programme (LRP) has been developed based on the RAP census and consultations with both affected households, traditional leadership and relevant ministries. The plan supports the overall aim of the RAP, to ensure measurable improvement of lives and livelihoods of the affected population. The main beneficiaries of the LRP are the economically displaced households who are actively using land within the Project footprint.

The programme consists of a package of options offered to the affected households, including land-based activities (support focused on farming) and non-land based activities such as occupational training, targeted credit, business development support etc.

Grievance management: A grievance mechanism will be available to affected persons specifically for complaints or claims related to the land acquisition and resettlement process, supplementary to the stakeholder engagement plan. The grievance mechanism involves Project staff, the Community Resettlement Committee, the Resettlement Steering Committee and the Governmental Land Use and Allocation Committee and a complaint can be filed with either of those bodies, via telephone, letter, in person or email.

The grievance mechanism includes procedures for receiving, categorizing, negotiation/identifying corrective action, and filing/reporting. All complaints should be closed out within 30 days of receipt, or if this is not possible the complainant should be informed of status and implementation of corrective actions.

Monitoring:   Monitoring activities will include workshops, site visits, surveys and training instruments to ensure participation and capture views of affected households. Monitoring will be carried out by the Project’s internal RAP team, as well as third party evaluations carried out by consultants. The third party evaluator will survey and report annually, and the annual report will be disclosed to the public. 

The ESIA for the power station was approved by FMEnv in February 2016. The Project has also received a power generation license from the Nigerian Electricity Regulatory Commission.

The RAP includes a detailed socio-economic assessment and description of the stakeholder engagement process and there is a Stakeholder Engagement Plan (SEP) in place specifically for the land acquisition process.  A community grievance redress mechanism will be established as part of the Community Engagement Plan, and implemented both by NSCP/Globeleq/ARM-Harith and the EPC contractor.

Key issues identified by stakeholders included community health and safety risks, loss of livelihoods, social tension, employment opportunities, and access to electricity. Details of all the issues raised and interactions with the various stakeholders are included in the RAP and SEP. The extent of the information provided about the Project was considered to be adequate and the stakeholder comments were considered to be free in their expression.

The following documentation is available electronically as PDF attachments to this ESRS at www.miga.org:

• Environmental and Social Impact Assessment Report for the Proposed 100MW Solar Independent Power Plant and 18 KM Transmission Line Project.
• Resettlement Action Plan for the Ganjuwa Solar Project
• Cumulative Impact Assessment for the Ganjuwa Solar Project

The above listed documentation is available electronically as PDF attachments to this ESRS at www.miga.org.  It is also available for viewing at the following location:

Nigeria Solar Capital Partners Ltd.
4th Floor Adamawa Plaza, Shehu Shagari Way, Abuja 900211, NIGERIA

MIGA supports its clients (as defined in MIGA Policy on Environmental and Social Sustainability) in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities.

In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for MIGA. The CAO is mandated to address complaints from people affected by MIGA-guaranteed business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of MIGA.

Independent of MIGA management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of MIGA’s environmental and social performance through its compliance arm.

Complaints may relate to any aspect of MIGA-guaranteed business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of a MIGA-guaranteed business activity. Complaints can be submitted to the CAO in writing to the address below:

Compliance Advisor/Ombudsman
International Finance Corporation
2121 Pennsylvania Avenue NW
Room F11K-232
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400
E-mail: cao-compliance@ifc.org