Kenya Annuity Roads Program - Lots 15 and 18

Mota-Engil Engenharia E Construção África S.A., Portugal (“Mota-Engil” or “the Contractor”); Harith General Partners (Pty) Ltd., GP Fund 2 (Pty) Ltd. (acting for Pan African Infrastructure Development Fund 2 SA en commandite partnership), PAIDF2 LLC, or other funds directly or indirectly managed by Harith General Partners (Pty) Limited, South Africa ; and Standard Bank of South Africa Ltd (the “Guarantee Holder” or “GH” or “Project Sponsor”) are seeking a MIGA guarantee for their investment in the Kenya Annuity Roads Program (“KARP”) Lots 15 and 18 (“Project roads” or “the Project”), against the risks of breach of contract, transfer restriction, expropriation, and war and civil disturbance for a period of up to 10 years. The Project Brief for the Project is available here .   

The Project is comprised of the construction, rehabilitation, upgrading, operation and maintenance of 16 roads that total 80 kilometers (km) in length, that will be upgraded from gravel to asphalt standards. The Project roads constitute part of a national road annuity program that is comprised of upgrading of up to 10,000 km roads in Kenya in the next five years with a total investment estimated at US$2.8 billion. The annuity program aims to assist the Government of Kenya (GoK) to close its infrastructure gap through several selected Public Private Partnership (PPP) road projects. Phase I of KARP entails the upgrading of 2,000 km of such roads. KARP is being implemented through a number of individual concessions awarded to investors on a PPP basis.

The Project was awarded to a consortium of Lee Construction Limited (LCL), Cape Consult Ltd (CCL) and Mota-Engil (“the Project Consortium”) in May 2019, following a competitive bidding process overseen by the country’s PPP Unit (under the National PPP Act). The Project will be governed by two Project Agreements for Lot 15 and Lot 18 respectively, signed by the GH and the Kenya Urban Roads Authority (“KURA” or “the Contracting Authority”). Angolo Raso Kenya are the design engineers for Lot 15, while CCL are the design engineers for Lot 18.

The Project Companies, which are yet to be incorporated, will finance, design, build, maintain and transfer the Project roads over a ten-year concession period (including two years of construction and eight years of operation) on an annuity basis. After the ten-year period, the Project roads will be handed over to KURA.

Lot 15 is comprised of ten roads varying in length from 0.90 km to 6.80 km in the central part of Kenya that total 44.90 km and are in Nyeri, Laikipia, Kirinyaga, Embu, Murang’a and Tharaka Nithi counties. Lot 18 are six roads varying in length from 3 km to 7.60 km, which are a total of 35.10 km in length, located in Kakamega, Vihiga, Bungoma and Busia Counties, in the western part of Kenya. The Project roads are classified as classes H (urban arterial), J (major urban collectors) and K (minor urban collectors), which as per the Kenya Roads Act of 2007, are primarily roads that link provincially important centers to each other or to higher class roads.

Based on the preliminary design, the main elements of the Project roads include the widening of the existing lanes to include the following: (i) carriageway width of 7 meters (m) (single carriage two-way road); (ii) walkway width of 1.5 m on both sides of the road (total walkway width of 3.0 m); and (iii) drainage facilities of 1.5 m on both sides of the road (total drainage facilities are of 3.0 m). Based on these specifications, the width of the Project roads will be approximately 14 m and the total Right of Way (RoW) allocated for the construction of the road is 20 m. The exact route within the RoW will be optimized to minimize environmental and social impacts.

The Project is expected to employ around 420 workers during peak construction. The number of works during the operations phase is yet to be confirmed. The construction stage is planned to commence in 2021 and is estimated to take approximately 2 years. 

The Project is classified as Category A project according to MIGA’s Policy on Environmental and Social Sustainability (2013). The key environmental and social (E&S) risks/impacts associated with the Project during construction and operation include: (i) physical displacement of four residential structures and the economic displacement of approximately 240 project affected households (PAH) owning non-residential structures and/or utilizing land within the Project area; (ii) labor and working conditions; (iii) community health and safety, including traffic safety; (iv) waste generation and management; (v) soil erosion; and (vi) occupational health and safety (OHS).  

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

• PS1:  Assessment and Management of Environmental and Social Risks and Impacts
• PS2:  Labor and Working Conditions
• PS3:  Resource Efficiency and Pollution Prevention
• PS4:  Community Health, Safety and Security
• PS5:  Land Acquisition and Involuntary Resettlement

PS6 Biodiversity Conservation and Sustainable Management of Living Natural Resource is not applicable since the proposed Project is located within modified habitats without any significant biodiversity value. PS 7 Indigenous Peoples and PS 8 Cultural Heritage are not applicable, since there are no Indigenous People (as defined in MIGA’s Performance Standards) and no Cultural Heritage sites/risks in the Project area identified from the documents reviewed and the site visit.  

In addition, the following World Bank Group Environmental, Health, and Safety (WBG EHS) Guidelines are applicable to the Project:

• General EHS Guidelines (2007);
• EHS Guidelines for Toll Roads (2007)[1]; and
• EHS Guidelines for Construction Materials Extraction (2007).

The following documents were reviewed by MIGA:

• Rehabilitation of Riamurkwa (Raimukurwe) - Gatitu Road (3.7 km) and Munungaine - Nyeri UCB4 - Nyeri (8.4 km) in Nyeri County, Kenya. ESIA Project Report (Final Copy). August 2019. (Lot 15).
• Rehabilitation of Upper Muthaiga Road (2.2 km) and Industrial Area Road (0.9 km) in Laikipia County, Kenya. ESIA Project Report (Final Copy). August 2019. (Lot 15).
• Rehabilitation of Kutus- Kiarie Road (4.0 km) in Kirinyaga County, Kenya. ESIA Project Report (Final Copy). September 2019. (Lot 15).
• Rehabilitation of Majimbo- Karurina Road (3.4 km) and Muthatari-Kimangaru Road (6.5) in Embu County, Kenya. ESIA Project Report (Final Copy). September 2019.  (Lot 15).
• Rehabilitation of Ndikwe-Kiria Road (3.90km) and Mucunguca-Kiangage Road (5.10km) in Murang'a County, Kenya. ESIA Project Report (Final Copy). September 2019. (Lot 15).
• Rehabilitation of Kanjuki - Athwana - Kathwana – Makutano Road (6.80 km) in Tharaka Nithi County, Kenya. ESIA Project Report (Draft 2 for KURA review). October 2019. (Lot 15).
• Rehabilitation of Upper Kakamega – Ilesi Road (7.6 km) and Lutonyi – Kakamega Road (3.0 km) in Kakamega County, Kenya ESIA Project Report (Final Copy). August 2019. (Lot 18).
• Rehabilitation of Chavakali - Munoywa – Kiritu Road (6.0 km) in Vihiga County, Kenya. ESIA Project Report (Final Copy). August 2019. (Lot 18).
• Rehabilitation of Mateka- Samoia Road Road (6.30) and Mateka-Mwanda- Siritanyi Road (7.20) in Bungoma County, Kenya/ ESIA Project Report (Final Copy). September 2019. (Lot 18).
• Rehabilitation of Busia (Jn B1) A lupe (Jnc C43) Bypass (5.0 km) in Busia County, Kenya. ESIA Project Report (Final Copy). September 2019. (Lot 18).
• Project Environmental and Social Management Manual. Annuity Roads Project Kenya. August 2019.
• Mota-Engil Africa Project HIV/AIDS Policy.
• Mota-Engil Africa Project Human Resources Policy.
• Mota-Engil Africa Project HSSE Policy.
• Construction Environmental and Social Management Plan. Annuity Roads Project Kenya. August 2019.
• Worker Relations Management Plan. Annuity Roads Project Kenya. August 2019.
• Traffic Management and Accommodation Plan. Annuity Roads Project Kenya. August 2019.
• Draft Construction Health and Safety Plan. Annuity Roads Project Kenya. February 2019.
• Stakeholder Engagement Plan. Annuity Roads Project: Lots 15 and 18/Kenya. November 2019.
• Livelihood Restoration Plan for Murang’a, Embu, Nyeri, Tharaka Nithi, Laikipia, and Kirinyaga County Roads. Kenya Urban Roads Authority (KURA).  December 2019.
• Livelihood Restoration Plan for Busia, Kakamega, Vihiga, and Bungoma County Roads. KURA. December 2019.

In addition to reviewing the above documents, MIGA carried out an E&S due diligence visit in November 2019 which included meetings with the GH and their E&S and technical Consultants, KURA, local authorities and affected communities, as well as a tour of the Project roads.

MIGA’s due diligence review considered the environmental and social management planning process and documentation for the Project, and identified gaps (if any) between these and MIGA’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable time period, are summarized in the paragraphs that follow and in the Environmental and Social Action Plan (ESAP) attached to this ESRS.  Through the implementation of these measures, the Project is expected to be designed and operated in accordance with the requirements of the applicable Performance Standards.

Key environmental and social (E&S) risks/impacts associated with the Project business activities are summarized in the paragraphs that follow.

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

Environmental and Social Assessment and Management System:

Policy:

Mota-Engil has prepared a Health, Safety and Environmental (HSE) Policy specific to the Project. The HSE policy, which is applicable to the construction and operation of the Project, sets out the Project’s commitments to protect the environment, health and safety of employees, contractors and the surrounding communities. As part of the ESAP, the GH will amend the HSE policy to include commitments towards compliance with Kenyan regulation and the PSs (ESAP action item #1). Additional Policies developed for the Project include: Human Resources Policy; Drug and Alcohol Policy; and a HIV and AIDS Policy. 

Identification of Risks and Impacts:

Environmental and Social Impact Assessment (ESIA) studies for the Project were carried out per County in August and September 2019, in line with national legislation and the IFC Performance Standards. The reports have been submitted to the Kenya National Environment Management Authority (NEMA) for review and approval. As part of the ESAP, the GH will provide MIGA with the approvals (and conditions of approval) once granted by NEMA (ESAP action item #2).

Potential cumulative impacts were considered as a part of the ESIA, and significant cumulative impacts were not identified. Mitigation and management for cumulative impacts were provided as part of the ESIA studies, including: (i) the preparation of a detailed Project schedule, that include including all the Project roads; (ii) E&S Management and Monitoring Plans (ESMMPs) of Project roads occurring simultaneously being jointly analyzed to ensure that cumulative impacts are addressed and any additional required mitigation measures identified; (iii) where possible, the Contractor to use the same sources of construction materials for the different roads; (iv) the Contractor to establish one major laydown area at an appropriate location for the bulk storage of construction materials equipment for all the roads in Lot 18 and another for all the roads in Lot 15. For each of the Project roads, only a small materials and equipment yard will be established where construction activities will be conducted simultaneously. 

Climate:

The Project roads in both Lots 15 and 18 occupy regions in which extreme rainfall events can result in extensive flooding.  This is especially true for roads in Lot 18 which are primarily located in Western Kenya and those roads in Lot 15 which are in Nyeri and Liakipia county as in this region, Mount Kenya often creates climatic gradients which strengthen rainfall frequency and intensity.

Mota-Engil along with their road design engineers have committed to construct or enhance drainage along all roads in Lots 15 and 18 to minimize the risk of flooding (ESAP action item #3).  This includes the construction of drainage channels, culverts, outflows following Kenyan road design standards as well as international good practice and operational maintenance plans to ensure drainage function impairment is limited over the life of the roads. 

Management Programs: 

ESMMPs for the Project roads have been developed as part of the ESIA studies. In addition, the Contractor has also developed and will implement an Environmental and Social Management System (ESMS) Manual for the construction and operation phases of the Project, in line with the Performance Standards and informed by the ISO 14001: 2015 (Environmental Management), as well as ISO45001:2018 (Occupational Health and Safety) Standards. The ESMS will incorporate the mitigation measures within the ESMMP. In addition, KURA will review the ESMMPs and provide input, where necessary. The ESMS Manual also contains a suite of plans, programs and procedures to manage E&S impacts and risks, including a Construction Environmental and Social Management Plan; Worker Relations plan; Traffic Management Plan and a Construction HSE Plan. The Contractor will also develop Decommissioning plans for the construction camps, borrow areas and asphalt plant sites (ESAP action item #4) 

Organizational Capacity and Training:

Mota-Engil currently has an Environmental Manager managing the Project preparation phase, and prior to construction, will appoint an HSE Manager for the Project, based in Nairobi, who will be responsible for keeping track of overall performance in terms of HSE. Furthermore, each Lot will have: (i) a HSE Officer; and (ii) Community Liaison Officer (CLO), based in the Project area. These four officers will report directly to the HSE Manager. 

In addition, a Training and Awareness procedure has been developed for all staff as part of the ESMS. This Procedure details the HSE training which will be identified and implemented during the Project. A Project Training Matrix will be developed prior to commencement of the Project in collaboration with the HSE Manager, which includes both formal and informal training requirements and a copy of this will be provided to MIGA, in line with the ESAP (ESAP action item #5).

Emergency Preparedness and Response:

An Emergency Preparedness and Response Procedure has been developed as part of the ESMS. This Procedure includes descriptions of potential emergency scenarios related to construction, and will be updated to include the operations phase and other subcontractor’s personnel in the event of an emergency (ESAP action item #6). The Procedure includes natural disaster and project-induced emergency scenarios and a description of the roles and responsibilities of emergency coordinators, available local services that can support in an emergency, and a description of the general evacuation and response training that will be required for emergency scenarios.

Monitoring and Review:   

The Project will compile and submit the following annual statutory reports in line with national legislation: (i) environmental audit reports; (ii) fire safety audit reports; and (iii) safety and health audit reports. The Project will also provide MIGA with an Annual Monitoring Report (AMR) that contains copies of these reports as well as reports on compliance with the PSs. In addition, the Contracting Authority will conduct regular E&S site visits to the Project roads. Findings from the site visits will be raised with the Contractor.

The ESMS also includes a Monitoring and Measurement Procedure, which describes the overall requirements to ensure that there is adequate control of significant environmental and social aspects, compliance with local HSE legislation and requirements, and to achieve objectives and target. This Procedure will be updated to include compliance with the Performance Standards and MIGA’s E&S requirements (ESAP action item #7).

Stakeholder Engagement:

Various rounds of stakeholder engagement were conducted as part of the ESIA and Livelihood Restoration Plan (LRP) studies that included community meetings, focus groups and key informant interviews. A full range of stakeholders were consulted in order to gather local knowledge for determining baseline conditions, understand perceptions of the community regarding impact significance, and propose meaningful mitigation measures. The results of consultation meetings indicated that the Project is well received by the local administration and communities; key questions and concerns raised by the various stakeholders and community members related to: employment opportunities; construction material sources; compensation for displaced structures, crops and trees; waste management; management of stormwater drainage; and Corporate Social Responsibility. A Stakeholder Engagement Plan (SEP) has been developed for the construction and operation of the Project, in line with the Performance Standards. The SEP includes the consultation and disclosure activities that will occur throughout Project construction and implementation. The SEP outlines the Project’s objectives in terms of stakeholder engagement and describes the activities to be conducted with the stakeholders during each stage of the Project’s development.

External Communication and Grievance Mechanisms:

As part of the ESMS, the Project has developed and will implement a Complaints and Grievance Procedure for both internal and external grievances. The Procedure describes the steps to be followed to collect, record, evaluate and respond to complaints and grievances raised by the employees and external stakeholders. The means for submitting the grievances include verbally or in writing to the supervisor, HSE Manager, HR Manager or placed anonymously in a complaints box located in the construction camps. The complaints box will be emptied on a weekly basis by the HR Manager.

PS2:  Labor and Working Conditions

As mentioned earlier, the Project is expected to employ around 420 workers during peak construction. Local labor will be prioritized for non-specialized tasks. As mentioned previously, the number of workers during operations has not been confirmed as yet.  During recruitment, priority will be given to the local community members for unskilled and semiskilled labor. These workers will be able to commute from home daily and as such, no worker accommodation will be developed. Project workers from outside the Project area (mainly skilled labor) will be accommodated at locally available hotels or residential apartments.

Working Conditions and Management of Worker Relationship:

The Project has prepared a project-specific Human Resources (HR) policy, including provisions for working conditions; terms of employment; non-discrimination and equal opportunity; grievance mechanism; and occupational health and safety. As per the ESAP, the HR policy will be updated to include the prohibition of child and forced labor (ESAP action item #8).

The Project will produce and actively use a project labor commitment (policy statement) in line with Performance Standard 2 including a specific gender commitment (ESAP action item #9). The Project will also implement a code of conduct and action plan to help prevent gender-based violence (“GBV”) both at management and worker level (ESAP action item #10). As part of the HR Policy, the Project will develop and implement a sexual harassment policy according to requirements under PS2 (ESAP action item #11).

Occupational Health and Safety:

During construction, the workers will be exposed to hazards and risks including, from moving machinery; noise, dust and exhaust emissions; confined spaces and excavations; working at heights; working over water bodies; hazardous and flammable materials; and hazardous waste.

As part of the ESMS, a Health, Safety, Social and Environmental (HSSE) Aspects and Risk Assessment Procedure has been developed. As part of this Procedure, the Project Management team together with the HSE Manager have committed to identify the HSSE hazards/aspects within the scope of the Project activities and consider normal and abnormal activities as well as reasonably foreseeable emergency situations which may have significant impacts or pose a hazard. Prior to the commencement of work, an assessment of the proposed impacts associated with the intended activities on the receiving environment will be undertaken.  In addition to the HSSE aspects/hazards under direct control of the Project, the scope will include an assessment of the aspects/hazards that the Project cannot influence.

On-site emergency capacity will include a medical station per Lot and the Project will also coordinate with the local emergency services in the local communities to assist in the event of an emergency.

Workers Engaged by Third Parties:

As per the ESAP (ESAP action item #12), the Project will include EHS provisions in contracts with other sub-contractors providing services to the Project’s operations. These provisions will include as a minimum: compliance with labor legislation and the Performance Standards, terms of OHS management, and access to a workers’ grievance mechanism including review and response to anonymous complaints. The Project will monitor third-party compliance with approved EHS requirements.

PS3:  Resource Efficiency and Pollution Prevention

The potential environmental impacts from construction and operational activities for the Project identified during the ESIA process include: impacts on local air quality; noise and vibrations; waste generation; and material sites and borrow pits. The relevant recommendations and mitigation measures suggested in the ESIA will be incorporated into the construction contract documents and monitored by Mota-Engil.

Resource Efficiency:

Rehabilitation of the proposed Project roads will require several resources such as water, aggregate, and fuel. All required resources will need to be used efficiently and all wastes managed in accordance with the waste management hierarchy, where avoidance of waste generation is the first priority to avoid or minimize pollution as much as possible. The Project aims to reduce consumption of primary resources and emissions of pollutants, and the ESMS includes application of adequate control measures for this purpose. The Project will monitor GHG emission continuously and including emissions in its reporting to MIGA.

As per the preliminary design, construction materials will include: gravel material for application as sub base; material for embankments (fill and improved subgrade); quarry stone for production of crushed stone and concrete; water for compaction and concrete (as well as dust control); sand for concrete and mortar works; and bitumen slurry and hot-mixed asphalt. There will be one industrial camp per Lot, managed by the Contractor. The industrial camps will include the batching plants, equipment maintenance areas as well as offices.

The Project proposes to obtain construction materials (soil, gravel and aggregates) from existing commercial and licensed sources, specifically quarries and borrow pits within the Project area. An Environmental and Social Due Dilligence will be carried out for the existing quarries and borrow pits (ESAP action item #13) and if new quarries and/or borrow pits will need to be developed, the Project will conduct the necessary assessments (including ESIAs) and obtain the required permits or licenses prior to their use (ESAP action item #14). The Project will also develop and implement a Water Management Plan for the construction and operations phase (ESAP action item #15) to reduce water consumption in line with PS3 requirements.

Pollution Prevention:

Most of the waste will be produced during the construction phase. These wastes will include earth material from excavations, hazardous waste and domestic waste that will be generated during the construction process. In addition, effluent waste will be generated in form of both grey and black water by the construction workers. As part of the ESMS, the Project will develop and implement a Waste Management Program in line with PS3 (ESAP action item #16).  

During construction, air emissions will consist of combustion gases from vehicles used for construction activities, and dust/particles generated from vehicle movement. Control measures to minimize emissions will be applied, including water spraying on access roads and areas with bare soil, enforcement of speed limits, covering trucks transporting soil and other materials prone to dust dispersion, and preventive maintenance and monitoring of the construction vehicle fleet.

Noise will be generated during the Project’s construction stage by vehicles, machinery used for installing the Project’s components, and building of internal and external roads. Construction activities are expected to be limited to daylight hours.

Excavated material, if not properly managed, will be eroded during the rainy seasons and may potentially flow into rivers and other surface water bodies within the Project area and cause sedimentation. Other potential sources of water contamination will be from small scale leaks and spills of fuel and oils from machinery and storage tanks. In order to avoid siltation, soil stock piles and spoil disposal sites will be located away from the surface water bodies.   

Hazardous Materials Management:  

Hazardous material waste during construction will include contaminated containers, used paint, engine oils, hydraulic fluids and waste fuel, spent solvents from equipment cleaning activities and spent batteries or spent acid/alkali from the maintenance of machinery on site. As part of the ESMS, the Project has developed and will implement a Hazardous Material Management Procedure which sets out the requirements for a proper system for hazardous materials storage and management at site to avoid any accidental spillages, documentation and record keeping of hazardous materials and wastes, which will be periodically reviewed by the Project’s HSE manager. Heavy machinery maintenance will be carried out at designated workshops.

As mentioned earlier, the Project will develop a Waste Management Plan (WMP) with provisions for hazardous waste storage, handling, transport, and disposal. As part of the ESAP, the WMP will be developed and implemented in line with the requirements of PS3.

PS4:  Community Health, Safety and Security

As mentioned earlier, the Project is comprised of 16 roads that traverse 10 Counties in the central and western parts of Kenya. The Project roads generally traverse rural areas with some settlements, social infrastructure and commercial activities along them.

Community Health and Safety:

Potentially negative community health impacts during construction stem from dust and noise due to the movement of heavy equipment, materials and project personnel, traffic accidents as well as influx of workers. During operations, negative impacts are expected to be related to noise, air emissions, traffic and potential emergency scenarios.  

Mitigation measures for noise and air emissions are described under PS3. A Community Health and Safety Plan for construction and operation will be developed and implemented as part of the ESAP (ESAP action item #17) including provisions for traffic safety management (including pedestrian and cyclist safety), emergency response procedures, coordination with traffic police, security and the safety of other road users. Traffic safety measures will include speed limitations, speed reduction systems, traffic control signs, pedestrian crossings and Project driver training. In terms of emergency response, the Plan will also include identification of potential emergency scenarios, how to address them, steps for setting up lines of communication for external liaison and reporting, and coordination between the Project’s internal, and external emergency services.

As per the ESAP, in locations that have black spots, i.e., areas where road traffic accidents have historically been concentrated, the Project will collaborate with traffic police and KURA to determine feasible mitigation measures (ESAP action item #18). The Project will also collaborate with KURA to monitoring traffic safety statistics for these sections of roads during construction and operation.

In addition, the Project shall ensure all workers and sub-contractors have access to free HIV/AIDS consultation, screening, retroviral medication and means of protection to avoid the spread of the disease, and coordinate any awareness and communication campaign among sex workers and the population in general. The Project roads will have and maintain the appropriate safety features, signs and markings.

As indicated in PS1, the management of stormwater drainage was raised by the local community as a key concern during the stakeholder engagement carried out in the ESIA. Therefore, the Project will conduct a flood mapping assessment to ensure that the road and drainage design prevent the erosion and flooding of properties in the Project area and those areas immediately downstream or at the outflows of the Project drainage areas (ESAP action item #19).  The assessment will include ensuring that the drainage channels and culverts have sufficient capacity to adequately minimize present-day and future flood risk as rainfall patterns shift under accelerated climate change. 

Security Personnel:

As part of the ESMS, a Security Management Plan will be established in line with the requirements of PS4, providing clear commitment by the Project in terms of recruitment, vetting and appropriate training of security contractors, as well as a Code of Conduct with respect to use of force (ESAP action item #20). The Plan will include incident reporting and follow-up procedures, and responding to any security-related complaints received through the external grievance mechanism.

The Project will ensure that Grievance Procedure is sensitive to GBV concerns (ESAP action item #21) and implement a code of conduct for employees and contractors that helps to prevent GBV (ESAP action item #10).

PS5:  Land Acquisition and Involuntary Resettlement

Based on the 20 m wide RoW, the total Project area/amount of area impacted is 134 hectares (ha), which is already legally owned by KURA. The Project will be developed within the exiting road corridor and no land acquisition will be carried out. Within the 20 m RoW the following assets were identified:

1. physical displacement of four residential structures; and
2. economic displacement of approximately:
   1. 1. 136 PAH owning non-residential structures and/or utilizing land within the Project area which consist of;
      2. 101 temporary and permanent business and non-residential structures; and
      3. 135 crops and trees.

Additional assets within the RoW that will be affected, but not result in significant impacts on livelihood are as follows:

1. 634 non-residential structures such as fences, perimeter walls, and gates;
2. 82 temporary commercial structures and shops that will be relocated further back from/outside of the RoW; and
3. 23,908 crops and trees where households will be given the opportunity to harvest before the land is reclaimed.

The exact number to be physically and economically displaced will be updated after the route is optimized within the 20 m RoW to minimize displacement. Physical displacement was avoided as much as possible through the realignment of the Project roads and narrowing of the required road reserve, where possible. All public/institutional structures have been avoided.

KURA developed and will implement LRPs per Lot and Mota Engil (with their E&S Consultants) reviewed the LRPs in order to align them with PS5 requirements. Both a census survey and an asset inventory were carried out in September and October 2019 as per the 20 m RoW to identify the people and assets to displaced by the Project (listed above) and determine who would be eligible for compensation and assistance.

Stakeholder engagement for the LRPs was carried out via Key Informant Interviews, public meetings (baraza) and Focus Group Discussions in both English and Swahili. At these meeting, the local communities were informed that compensation would be limited to existing infrastructure and assets within the RoW. Prior to the census and asset inventory, public consultation meetings were held to clearly explain the implications of the cut-off date as well as the survey process. The Project SEP (discussed in PS1) will continue to be updated throughout LRP implementation to ensure that it accurately reflects the needs of the PAHs and other stakeholders.

As vulnerable groups have not been identified yet, the Project will ensure that the vulnerable population is identified, and that mitigation measures are carried out during the implementation of the LRPs (ESAP action plan item #22).

The Project is still in preliminary design and the alignment is subject to further changes, specifically further narrowing of the RoW to reduce the numbers of displacement discussed above. Once these additional changes in design are implemented, the LRPs will be revised by KURA and Mota-Engil to reflect the reduced corridor width. The asset inventory and census survey will be updated to reflect any changes in the RoW width, as the updated asset inventory and census survey will enable KURA to determine the magnitude of displacement and to manage community expectations (ESAP action item #23). Once the LRPs are approved and prior to implementation, the documents will be disclosed to the PAHs and additional meetings will be held to finalize the compensation packages (ESAP action item #24). This will be carried out as part of the ongoing stakeholder engagement process.

In line with the ESAP, the Contracting Authority, together with the Project Sponsor will ensure that all negotiations and agreements are conducted in line with the PS5 definition of informed consent and fair compensation based on full replacement cost (ESAP action item #25). The Project Sponsor will also collaborate with KURA to ensure that compensation is paid in line with PS 5 requirements (ESAP action item #26). After completion of the LRP mitigation measures, the Project will commission an external completion audit of the LRPs to assess whether the provisions have been met and implement supplemental measures, where applicable (ESAP action item #27). 

As indicated under PS 1, the Project has submitted ESIA reports to NEMA for review and approval and will provide MIGA with copies of the approvals and any condition therein. Consultation undertaken during the ESIA and LRP process is also discussed under PS1.

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

• Rehabilitation of Riamurkwa (Raimukurwe) - Gatitu Road (3.7 km) and Munungaine - Nyeri UCB4 - Nyeri (8.4 km) in Nyeri County, Kenya. ESIA Project Report (Final Copy). August 2019
• Rehabilitation of Upper Muthaiga Road (2.2 km) and Industrial Area Road (0.9 km) in Laikipia County, Kenya. ESIA Project Report (Final Copy). August 2019.
• Rehabilitation of Kutus- Kiarie Road (4.0 km) in Kirinyaga County, Kenya. ESIA Project Report (Final Copy). September 2019.
• Rehabilitation of Majimbo- Karurina Road (3.4 km) and Muthatari-Kimangaru Road (6.5) in Embu County, Kenya. ESIA Project Report (Final Copy). September 2019.
• Rehabilitation of Ndikwe-Kiria Road (3.90km) and Mucunguca-Kiangage Road (5.10km) in Murang'a County, Kenya. ESIA Project Report (Final Copy). September 2019.
• Rehabilitation of Kanjuki - Athwana - Kathwana – Makutano Road (6.80 km) in Tharaka Nithi County, Kenya. ESIA Project Report (Draft 2 for KURA review). October 2019.
• Rehabilitation of Upper Kakamega – Ilesi Road (7.6 km) and Lutonyi – Kakamega Road (3.0 km) in Kakamega County, Kenya ESIA Project Report (Final Copy). August 2019.
• Rehabilitation of Chavakali - Munoywa – Kiritu Road (6.0 km) in Vihiga County, Kenya. ESIA Project Report (Final Copy). August 2019.
• Rehabilitation of Mateka- Samoia Road Road (6.30) and Mateka-Mwanda- Siritanyi Road (7.20) in Bungoma County, Kenya/ ESIA Project Report (Final Copy). September 2019
• Rehabilitation of Busia (Jn B1) A lupe (Jnc C43) Bypass (5.0 km) in Busia County, Kenya. ESIA Project Report (Final Copy). September 2019.

The above documentation has also been publicly disclosed by NEMA and by KURA (www.kura.go.ke).

For additional information, please contact:

Contact name: Ms Juanita Whitfield, Mota-Engil Africa

Contact number: +27 (0)11 269 2350/ +27 (0) 11 269 4960

Email: Juanita.whitfield@mota-engil.com

Broad Community Support is not applicable for this project.

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