Lobito-Luau Railway Corridor Project

MIGA has been requested to provide guarantees covering Equity/Quasi-Equity/Shareholder loans (EQS) from the Mota-Engil entity - ME Lobito SGPS, LDA (referred to as “Mota Engil” throughout the paper) and Trafigura Pte Ltd (Trafigura) (collectively referred to as “the Sponsors”) into Lobito Atlantic Railway, S.A. (LAR or the Project Enterprise or PE), for a duration of up to 20 years. Further information on the proposed MIGA guarantee is available in the Summary of Proposed Guarantee.

The Lobito – Luau railway line is an existing 1289 kilometer (km) railway that crosses Angola from Lobito on the Atlantic coast to the border town of Luau (between Angola and Democratic Republic of Congo (DRC)). The railway passes through four provinces: Benguela, Huambo, Bie and Moxico and includes 68 stations. The primary stations include: Lobito, Benguela, Cunje, Huambo, Luena and Luau Stations. The Lobito-Luau railway corridor is also significant from a regional perspective, providing a shorter route from the mineral rich areas in DRC and Zambia to the Port of Lobito. 

The railway was first built between 1903 and 1929 by the Portuguese. Operations were halted from 1975 to 2002 due to the Angolan civil war. Rehabilitation of the railway began in 2007 and was completed in 2014 by the China Railway Engineering Company. Operations resumed in 2014 under the Government of Angola (GoA) through the public company “Caminhos de Ferro de Benguela” Benguela railway Company (CFB). Besides passengers, the railway also transports fuel, butane gas, minerals and other goods. It currently has a maximum capacity of 22 metric tons per axle and the potential for 50 wagons per train.

The MIGA guarantee will be used to support the rehabilitation and upgrade of the existing Lobito corridor (the Project), which consists of the rehabilitation of the Lobito-Luau railway with the goal of improving the safety and operability of the Lobito corridor and improve the railway transport services within the country. The Project involves the following components: (i) the rehabilitation and upgrade, operation, management and maintenance of railway line and ancillary infrastructure, (ii) the operation and management of the railroad service for the transport of merchandise on the Lobito-Luau railway line, (iii) the construction, operation, and management of two freight transit terminals (in Lobito and Luau) to support the rail freight service, (iv) construction of two new train stations; (v) the management and maintenance of the transport training center in the city of Huambo, (vi) the operation, management and maintenance of railway workshops, located in Lobito, Huambo, Cubal and Luau and (vii) the use and rehabilitation of the port of Lobito mining terminal for the reception, loading, unloading, and transshipment of goods within the perimeter of the Lobito mining terminal. The majority of rehabilitation and upgrade activities will be within the existing railway line, workshops, bridges and the mineral terminal. However, some extension works such as approximately 4 km of new access roads, two new passenger train stations will be greenfield developments for which the scope of construction works and the land boundaries are not yet known. The width of the Lobito corridor (including stations) right-of-way (RoW) is 50 meters (m) each side of the track in urban areas and 100 m each side of the track in rural areas. 

Rehabilitation of the Lobito corridor aims to restore the proper functioning of the railway system by:

• Infrastructure improvement: covering extension of crossings, rehabilitation of stations and terminals, rehabilitation of bridges, improvement of maintenance equipment; 
• Rolling stock: acquisition of a new fleet of wagons and shunting locomotives;
• Workshops: rehabilitation and construction of new maintenance and depot facilities;
• Signals and telecommunications: improvement of the signaling system and the telecommunications network
• Operations: develop and train personnel in management systems capable of monitoring technical parameters and improving operational efficiency, including a derailment detection component.

In addition, LAR is planning to increase crossing loops from 450 m to 900 m when the traffic train is increased to 3 million metric tons per annum (mtpa) which is projected to be performed within the first years of the concession. Based on a detailed analysis of each station plan and possible options, considering curves, bridges, etc., approximately 19 km of track will be built/extended. Two new crossing loop points are planned to be built in the sections between: (i) Cassai-Caifuche and (ii) Mucussueje-Luau on the border of Cameia National Park. Extension and building of new crossing loops will be within the existing RoW of the Lobito corridor, within 10 – 20 m of the existing track. 

LAR will be responsible for the rehabilitation and improvements in the existing infrastructure and rolling stock and the operation of the freight service, aiming for improvements in transport efficiency. Meanwhile, CFB will continue to manage the transport of passengers. LAR took over operations and maintenance from CFB of the Lobito corridor on January 25, 2024. 

Mota-Engil is the Engineering Procurement and Construction (EPC) contractor responsible for the construction activities of the Lobito corridor. In the context of the Project and for purposes in the ESRS, construction mostly means rehabilitation of existing infrastructure. Mota-Engil will also be responsible for repair and maintenance of the Lobito corridor under a Maintenance Service Contract (MSC) with LAR. Mota-Engil has started repair and maintenance activities. Field inspections were undertaken to identify areas of priority for early works. Current early work activities include track stabilization between Lobito and Huambo which involves changing sleepers and improving track geometry to improve the safety of the track. Mota-Engil rehabilitation activities will be undertaken concurrently with regular operations of the railway but planned in a manner to avoid health and safety risks.

The Project is a Category A under MIGA’s Policy on Environmental and Social Sustainability (2013) as it includes business activities with potentially significant adverse environmental and social risks and impacts. Key environmental and social (E&S) risks/ impacts include: occupational health and safety of workers and community health and safety (including community and pedestrian safety and potential for gender-based violence (GBV)), pollution control, hazardous and non-hazardous waste management, potential land acquisition and resettlement, emergency preparedness and response, and impacts on biodiversity. Additional risks are introduced by the need for cooperation between LAR and CFB in areas where synergy is needed, such as in labor and working conditions of LAR and CFB employees.

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

• PS 1:  Assessment and Management of Environmental and Social Risks and Impacts
• PS 2:  Labor and Working Conditions
• PS 3:  Resource Efficiency and Pollution Prevention 
• PS 4:  Community Health, Safety and Security
• PS 5: Land Acquisition and Involuntary Resettlement
• PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources
• PS 8: Cultural Heritage

No indigenous people will be impacted in the course of this Project; therefore, there are no risks and impacts related to PS7 (Indigenous Peoples). 

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

• World Bank Group General EHS Guidelines (2007)
• World Bank Group EHS Guidelines for Railways (2007)

The following key documents were reviewed by MIGA, among other documents: Environmental and Social Due Diligence of the Lobito Railway Project, Royal HaskoningDHV, October 2023

• Environmental and Social Due Diligence of the Lobito Railway Project, Royal HaskoningDHV, October 2023
• Lobito Atlantic Railway S.A. Concession of Rail Services and Logistics Support for the Lobito Corridor – Preliminary Climate Change Risk Assessment Report, Quadrante, August 2023
• Lobito Atlantic Railway S.A. Concession of Rail Services and Logistics Support for the Lobito Corridor – Draft Environmental and Social Impact Assessment, Quadrante, July 2023
• Scoping Study Report for the Lobito Railway (CFB), Holisticos, April 2023
• Plano de Gestão de resíduos do Projecto de Concessão de Serviços ferroviários e da logística de suporte do corridor do Lobito (Waste Management Plan for the Railway Services Concession Project and support logistics for the Lobito corridor), Quadrante and Holisticos, August 2023
• Plano de Gestão Ambiental do Terminal de Minério do Lobito, Província de Benguela (Environmental management Plan of the Mineral Port, Benguela Province), Holisticos, November 2023
• Sistema de Gestão de Segurança (SGS) – Manual SGS Empresa de Transporte Ferroviário (Safety management System – SGS Manual Railway Transport Company), LAR, October 2023
• Plano Operacional (Operational Plan) 2024/2025, LAR, December 2023
• Safety Management System (SMS) Hazardous Materials Management Plan, LAR, October 2023
• Safety Management System (SMS), Emergency Plan, October 2023
• Sistema de Gestão de Segurança – Critérios de Avaliacao de Conformidade com os Requisitos Relacionados com o SGS.

In addition to reviewing the above documents, MIGA carried out a site visit in November 2023 and has held several discussions with the LAR team between November 2023 and November 2024. The visit included a train ride between Lobito and Benguela and a tour of: (i) the workshop in Lobito; (ii) a few stations; (iii) worker’s accommodation; (iv) the mineral port and others. Meetings were held with LAR and CFB staff, including staff responsible for environment, health and safety, and human resources. The MIGA team also visited and met with community representatives from along the railway corridor.The following key documents were reviewed by MIGA, among other documents: 

MIGA’s due diligence review considered the E&S 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 E&S 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 Performance Standards. Key E&S issues 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: LAR has elements of an Environmental and Social Management System (ESMS) in place. In line with ramping up of activities since taking over operations of the Lobito Concession in January 2024, LAR is developing an integrated, operational ESMS aligned with PS 1 requirements incorporating policies, plans and procedures and supported by an Environmental and Social (E&S) team. The ESMS will include, as a minimum: (i) policy; (ii) identification of risks and impacts; (iii) management programs; (iv) organizational capacity and competency; (v) emergency preparedness and response; (vi) stakeholder engagement; and (vii) monitoring and review (ESAP #1). 

Policy: LAR has developed an Environmental and Social (E&S) Policy as part of the Environmental and Social Management Plan (ESMP). The E&S Policy indicates commitment to protect the environment, compliance with national legislation and commitment for continuous improvement and social wellbeing. LAR has also developed a Health and Safety (H&S) Policy. 

Identification of Risks and Impacts: An Environmental and Social Impact Assessment (ESIA) was prepared in 2023 for statutory purposes and was approved by Ministério do Ambiente (Ministry of Environment) MINAMB in September 2023. The ESIA was revised and updated in March 2024 to be consistent with PS 1. Further baseline measurements will be undertaken for air quality at the main stations, water quality and sediment quality at locations where bridges are being rehabilitated and site assessment of potentially contaminated areas including soil analysis (ESAP #2). The Project ESIA and supplemental studies which have already been completed accompany this disclosure. 

A preliminary climate change risk assessment (CCRA) was undertaken as part of the ESIA with the objective to develop an initial framework of potential climate associated risks of the Lobito corridor. The following climate change risks for the Project were identified: increased heat, increased flooding water stress and wildfire hazards compounded by increased heat. LAR is currently using historical data for railway rehabilitation and maintenance and will incorporate future climate trends progression into terms of reference for improvement of drainage systems, bridges and other ancillary infrastructure to mitigate potential climate relates risks. LAR is in constant coordination with Instituto Nacional de Meteorologia e Geofisica (Meteorological Institute) and local emergency services to be informed and prepared for the extreme events and LAR has emergency procedures to cover such events.  

The ESIA identified that the contextual risk for Gender Based Violence (GBV) in Angola is persistent and widespread. To manage the risk of gender-based violence (GBV) in communities surrounding the Project, and in the workplace within construction sites or workers camps and accommodation a GBV risk assessment will be undertaken, and measures identified to prevent and to be ready to respond to incidents of GBV. The identified measures will be incorporated into relevant management plans and procedures as part of the Project’s ESMS (ESAP #3).

LAR has overall responsibility over the Lobito corridor including operation of freight train and CFB is responsible for operation and maintenance of passenger trains. There is a risk of lack of coordination between the two LAR and CFB regarding operator interface and operational and maintenance arrangements. LAR will demonstrate the Project E&S governance structure supported by a detailed organogram of project management roles and responsibilities, describing the interfaces between LAR and CFB (ESAP #1).

Management Programs: The ESIA includes an Environmental and Social Management Plan (ESMP) framework that includes a set of recommendation that will establish the basis for mitigation, management, and environmental monitoring of the Project’s potential E&S risks and impacts. LAR will develop and implement topic-specific E&S management plans for construction and operation phases of the Project in line with PS requirements (ESAP #4). The EPC contractor and/ or any sub-contractors will also develop their own management plans in line with LAR requirements which will be reviewed and validated by LAR before implementation (ESAP #4).

Organizational Capacity and Competency: LAR has developed an organizational structure that defines roles, responsibilities, and authority to implement E&S requirements. Specific personnel, including management representatives, with clear lines of responsibility and authority have been designated, with the structure undergoing periodic reviews. LAR will require the EPC contractor to identify and appoint key E&S related personnel including environmental and social manager, health and safety manager, E&S field community liaison manager, E&S technician social officer, human resources (HR) manager, EPC site supervisors. Per ESAP #5 LAR will recruit and fill all vacant E&S positions as per its organogram and require the EPC contractor to recruit E&S positions. 

Emergency Preparedness and Response: LAR developed an Emergency Preparedness and Response Plan (EPRP) as part of its safety management system. The EPRP includes the identification of areas where accidents and emergency situations may occur, response procedures and designation of responsibilities and communication. Per ESAP #4 the EPRP will be revised and updated to include (i) emergency scenarios related to the mineral port and (ii) emergency requirements for the EPC contractor and its subcontractors. 

Monitoring and Review: The ESMP framework included in the ESIA outlines LAR’s monitoring and review requirements. LAR will include monitoring and review requirements in its E&S management plans and procedures including contractor and sub-contractor performance (ESAP #4).

Stakeholder Engagement, External Communication, and Ongoing Reporting to Affected Communities: Stakeholder engagement for the Project has been undertaken through the disclosure and engagement on the ESIA. The ESIA public participation process is designed to provide sufficient, accessible, and objective information to interested and affected parties or stakeholders about the Project. Seven consultations between July and August 2023 at locations along the railway, hosting approximately 300 participants were held as part of the ESIA process. The meetings included representatives from provincial and local government, local communities, including representatives from traditional authorities, municipalities, religious authorities as well as project affected and interested parties. Key concerns raised during these consultations included employment, train ticketing system, measures to avoid and mitigate pollution related impacts, rehabilitation of stations, pedestrian safety. These concerns have been included and addressed in the ESIA. LAR will develop and implement a Stakeholder Engagement Plan (SEP) in line with PS requirements. The SEP will include stakeholder identification and matrix with consideration of vulnerable groups, roles and responsibilities, communication strategy and engagement approach during the rehabilitation by the EPC and operations phase (ESAP #4).

Grievance Mechanisms: Per ESAP #4, LAR will develop and implement an external grievance redress mechanism (GRM) including a dissemination strategy to inform potentially project affected communities and workers about it and will require the EPC contractor to develop and implement a commensurate GRM. 

PS2:  Labor and Working Conditions

The Project is expected to employ approximately 1800 workers for operations and maintenance. Per the concession agreement, LAR is predominantly recruiting and assimilating workers from CFB, taking into account the need to continue Project activities without interruption. No retrenchment is anticipated. The majority of the workers employed by LAR are Angolan nationals. At the peak of construction activities, the Project will employ approximately 250 workers. During repair and maintenance activities the Project will employ approximately 350 workers. The recruitment strategy will include prioritizing employment of workers from the vicinity of the railway.

Human Resources (HR) Policies and Procedures: Human Resources will be managed according to LAR’s HR policies and procedures. LAR drafted HR Internal Regulations in line with the Angolan Labor legislation and PS 2 requirements which includes workers terms and conditions. In addition, the following HR procedures have been drafted: complaint policy and procedures; annual leave policy; disciplinary procedure policy; performance management policy; policy for selection and recruitment; training policy; uniform and equipment policy; wage control policy; working hours and attendance control policy. LAR will review and finalize the HR procedures incorporating provision for gender aspects, code of conduct and labor grievance mechanism (ESAP #6). The development of the project HR policies, procedures, code of conduct and the labor grievance mechanism will be informed by the project’s GBV assessment (ESAP #3).

Per the ESIA, the EPC contractor will develop an Employment and Workforce Management Plan (EWMP) to manage employment and workforce risks that may result from Project-related activities. The EWMP be in line with national legislation and PS 2 requirements and will include provisions related: (i) to fair treatment, non-discrimination and equal opportunity of workers; (ii) workers health and safety (ESAP #6).

Working Conditions and Terms of Employment: Workers terms and conditions is included in the Internal regulations, in line with PS 2 requirements and national legislation. The terms of employment and working conditions include wages, benefits, working hours, overtime, rest days, breaks, and leave.  In addition, working conditions and terms of employment are specified in the written contracts signed by employees, provided and communicated to employees during induction. LAR is absorbing workers from CFB and will LAR workers will continue to operate in conjunction with CFB workers. LAR will coordinate with CFB on a best effort basis to align on working conditions and terms of employment between CFB and LAR workers, noting that CFB is an independent government entity and LAR has limited leverage on CFB. 

Most of the workforce will be sourced from the vicinity of the Project. The need for workers accommodation is not anticipated in urban areas. Expatriate personnel or Angolan workers from different locations will be housed within the existing housing market. The EPC may need to locate workers camps along the railway. These will be located away from populated areas and access will be controlled. The EPC will establish and manage the workers camp in line with the with guidance from the IFC and the European Bank for Reconstruction and Development (EBRD) Guidance Note on Worker Accommodation Process and Standards (2009) (ESAP #7). Workers’ accommodation, in the form of dormitories managed by the Human Resources department, are located at select railway stations used by LAR and CFB locomotive drivers. The current dormitories were verified and are generally in good condition.  LAR will develop a workers accommodation management plan in line with Guidance Note on Worker Accommodation Process and Standards (2009) with clear procedures for using the facilities, access restrictions, security, protection of women (ESAP #7). 

Workers’ Organization: LAR recognizes the right of workers to join workers organizations and elect their representatives.  Workers have the right to collective bargaining. Workers terms and conditions is reviewed and agreed with the workers representatives.

Non-discrimination and Equal Opportunity: LAR’s recruitment and selection policy states that during the recruitment and selection process, the Company shall respect social and cultural diversity in Angola. Any kind of discrimination and labelling of people shall not be allowed. LAR will also develop a code of conduct being explicit against the main forms of discrimination such as gender, race, nationality, ethnic, social and indigenous origin, religion or belief, disability, age, or sexual orientation. The code of conduct will also include measures to prevent and address harassment, intimidation, and/or exploitation, especially in regard to women and will apply to its staff and contractors (ESAP #6).

Grievance Mechanism: LAR has a Grievance Redress Mechanism (GRM) for workers that details the steps to lodge and address the grievances. The GRM will be updated to include: (i) provisions for anonymous complaints to be raised and addressed and (ii) incorporate mechanisms to handle complaints related to GBV (ESAP #6). The EPC contractor will also be required to develop a workers grievance mechanism substantially similar to LAR’s GRM or use LAR’s GRM for its workers and sub-contractors (ESAP #6).

Child and Forced labor: The Angolan legislation includes provisions against child labor. In addition, LAR’s policy for selection and recruitment states that the company will not hire anyone under the age of 16. LAR will update the HR policies and procedures on prohibition of child labor to include PS 2 requirements: (i) children under the age of 18 will not be employed in hazardous work. (ii) All work of persons under the age of 18 will be subject to an appropriate risk assessment and regular monitoring of health, working conditions, and hours of work (ESAP #8). Per its Anti-Slavery and Human Trafficking Policy, LAR also condemns slavery and human trafficking and are committed to ensuring that all people are treated with dignity and respect when tendering for, running projects and activities where they work. Provisions against child labor and forced labor also apply to the EPC contractor and subcontractors. 

Occupational Health and Safety: LAR’s Health and Safety Policy includes commitment from LAR to ensure the safe circulation of passengers and goods (including dangerous materials) in the Lobito corridor as well as the health, safety and social life of railway workers and neighboring communities.  LAR has also developed an Occupational Health and Safety Management Plan (OHSMP) as part of its ESMS, supported by relevant procedures for operational safety, regarding use of machinery and general work safety regarding personal protective equipment and fire prevention among others. The OHSMP includes provisions on the identification of potential hazards to workers, provision of preventive and protective measures, training of workers, documentation and reporting requirements, emergency prevention, preparedness, and response arrangements. The EPC contractor will be required to develop an OHS management plan for its activities (ESAP #4).

Workers Engaged by Third Parties: LAR may hire third-party contractors to provide services such as security, housekeeping and others. LAR will develop and implement: (i) contractor’s management plan and (ii) will incorporate provisions related to Project’s E&S requirements in contractual arrangements and (iii) establish an internal audit program for the EPC, subcontractors and other third parties to ensure alignment with contractual requirements and labor laws (ESAP #9). Contracted workers will have access to LAR’s GRM if not available through their own companies (ESAP #6). 

Supply Chain: LAR has an Anti-Slavery and Human Trafficking Policy that states that LAR is committed to ensure that there is no modern slavery or human trafficking in any moment of the value chain of its Project, as well as ensuring all its operations meet the requirements of local legislation. In the short term, LAR will be working with suppliers already approved by Mota-Engil since Mota-Engil is long established in Angola. In the meantime, LAR will develop a supply chain management plan that includes a procurement policy and procedures to screen suppliers and service providers to mitigate against the risks of forced, child labor and OHS (ESAP #10).

PS3:  Resource Efficiency and Pollution Prevention

The ESIA identified potential environmental impacts resulting from rehabilitation and operational activities including impacts on air quality; noise and vibrations; wastewater; waste generation among others. The relevant recommendations and mitigation measures suggested in the ESIA will be incorporated into LAR’s and the EPC’s management plans. Diesel will be used for the operation of the locomotives, machinery, equipment and generator sets. Diesel is stored at select workshop locations. Electricity for the stations will be from the grid where possible and powered by generators in remote areas. There is a plan to install solar panels to power the stations.

Resource Efficiency: The Project will require several resources including energy, water, fuel and aggregate. Per its E&S Policy, LAR has committed to using resources efficiently and manage wastes in accordance with the waste management hierarchy. Resource efficiency commitments will be demonstrated in LAR’s respective management plans and procedures (ESAP #4).

Greenhouse Gases (GHG): GHG emissions are estimated to be approximately 90,926 tonnes of Carbon Dioxide equivalent per year (CO2e/year) based on projected operations. GHG emissions accounting will be undertaken on an annual basis and provided to MIGA as part of the Annual Monitoring Report. 

Water Consumption: Water supply is present at 16 stations out of 68. The rehabilitation of the railway foresees that all stations in the future will be provided with water supply (to be used for domestic purposes and firefighting). LAR anticipates that water will be supplied from the following sources: public water network when available, bottled water will be delivered to the station, or by water wells (the volume of groundwater abstracted will be monitored on a monthly basis). Water will be stored in water cisterns at stations. LAR will implement a water monitoring as part of the E&S monitoring plan (ESAP #4) which will include monitoring of (i) water consumption and (ii) water quality in locations where LAR supplies water through its own installations.

Aggregates: Aggregates and other construction materials will be sourced from existing commercial and licensed quarries and borrow pits in proximity to the railway line. Preference will be given to quarries operated by the EPC contractor but some quarries may be operated by third-parties. In the event that the Project needs to open a new borrow pit or quarry, LAR will conduct an E&S assessment including an alternatives assessment and obtain the required permits or licenses prior to opening up new borrow pits or quarries (ESAP #11). 

Pollution Prevention Air Emissions: Air emissions will be generated during both phases of the project, e.g., Carbon Monoxide (CO), Nitrogen Oxides (NOx), Sulphur dioxide (SO2), Particulate Matter (PM10, PM2.5) and Volatile Organic Compound (VOC) and GHG emissions (discussed above). The main source of these emissions will be from burning of fuel by the locomotive. Dust will be generated during the refurbishment activities. The following locomotives GE 30ACi are used by the project. LAR will develop an ambient air quality monitoring program as part of its E&S monitoring plan (ESAP #4). Dust will be minimized through standard mitigation measures, such as watering roads, covering trucks carrying spoil, and progressively rehabilitating cleared areas.

Noise and Vibration: Noise and vibrations will be generated during rehabilitation and operations, mainly from heavy machinery/ equipment within active construction site and surrounding areas. Noise and vibration in the operation phase will be from the operation of trains. For technical and railway safety reasons, rehabilitation and maintenance works will take place primarily during the day, except where passenger trains schedules require work to be carried out at night. LAR will undertake noise monitoring in residential areas to verify compliance with WB EHS Guidelines (ESAP #4) and undertake abatement measures if necessary. The project will have a grievance procedure to address noise and vibration complaints.

Water Quality: Surface and groundwater quality may be impacted as a result of accidental spills or accidental releases of oil and petroleum products, sediment and turbidity build up as a result of bridge rehabilitation. Mitigation measures such as: (i) spill response and prevention (ii) diversion isolation techniques; (iii) sediment traps, netting; and (iv) monitoring of water turbidity upstream and downstream of river works; as well as (v) appropriate drainage measures in wetland areas and in the proximity of rivers to avoid or minimize impacts to natural drainage patterns will be incorporated in a water management plan (ESAP #12). 

Rehabilitation activities on the railway corridor may also exacerbate erosion rates as a result of natural subsurface characteristics and excavation works, soil movement and removal of top surface. A soil erosion, reinstatement and landscape management plan will be developed and implemented for the Project (ESAP #4) and will include measures such as scheduling of works to avoid the rainy season, contouring and minimizing length and steepness of slopes, mulching to stabilize exposed areas among others.

Wastes: Solid waste (including hazardous waste) and wastewater will be generated during rehabilitation and operations of the Project. Wastewater includes grey effluent from ablution facilities and industrial effluent from the maintenance workshops. A waste management plan has been prepared as part of the ESIA. The waste management plan will be revised and updated to specify: (i) dedicated waste collection and temporary storage areas; (ii) wastewater treatment plant or septic tanks to manage effluent waste in remote locations; (iii) establishment of retention basins, hydrocarbon separators for the product storage and parking areas; and (iv) final disposal options though authorized waste management companies where Project waste will be treated to meet national and WB EHS Guidelines - such companies shall have a license to operate and be audited by LAR before entering in contract with them (ESAP #13). 

Wooden sleepers are present at steel bridges. Wooden sleepers used to be treated with creosote or chromated copper arsenate as a wood preservative. LAR will conduct a study to assess creosote or chromated copper arsenate content in old sleepers in order to implement safe disposal options (ESAP #13).

Hazardous Materials Management: LAR has developed a hazardous materials management plan which includes: (i) chemical and dangerous good inventory, (ii) procedures in the event of an accident or incident involving hazardous materials and transport of dangerous good. Per ESAP #14, LAR will conduct an assessment to identify legacy contaminated areas which will include identification of contamination sources, characterization of soil and groundwater contamination and remedial plan to be implemented by LAR for contaminated sites. 

Pesticide Use and Management: Vegetation control will be carried out manually along the railway. LAR does not anticipate the use of herbicides or pesticides.

PS4:  Community Health, Safety and Security

Community Health and Safety: The railway industry is considered an industry with traditionally relative high risk for communities along the railway line. During the due diligence site visit, some encroachment on the railway line as well as the use of the railway line by pedestrians was noted.  The maximum design speed on the track infrastructure of the Lobito corridor is 90 km/h, which may vary depending on the geometric characteristics of each section. But due to the current conditions of the track infrastructure (deficit in the maintenance processes prior to LAR’s involvement) a restriction of 55 km/h for passenger trains and 45 km/h for goods trains has been imposed, and on the bridges the speed of passenger trains is 30 km/h and for goods trains 25 km/h. Expected evolution with the rehabilitation of the railway is – average speed of 40 km/h (excludes times for stops) average speed of 33km/h includes times for stops. After rehabilitation works, the maximum authorized speed on the mainline will increase to 80 km/h for passenger trains, 70 km/h for freight trains composed of recent and homogenous rolling stock, and 60 km/h for freight trains composed of diverse and/or older legacy rolling stock.  Per ESAP #15, LAR will conduct an audit of its rail operational safety and implement recommendations. In addition, LAR will develop and implement a community health and safety plan that includes the recommendations of the safety audit and incorporates a communication safety program and safety awareness campaigns.

The remoteness along certain sections of the railway corridor is a contributing factor to risks of gender-based violence in the community. As mentioned in PS 1, a Gender Action Plan (GAP) will be developed that will include provisions to manage GBV risks which include measures related to implementation of awareness campaigns with local communities, workers and health practitioners on sexual exploitation abuse and harassment (SEAH), and other health-related risks such as sexually transmitted infections and alcohol consumption. 

Infrastructure and Equipment Design and Safety: The Project aims to rehabilitate and modernize the Lobito corridor in order to improve the safety and the operability of the railway as well as improve the efficiency of railway transport services in the country. A key upgrade as a result of the Project is the signals and telecommunications and development of a train management system through an operational control center (OCC) capable of monitoring technical parameters and improving operational efficiency, including derailment detection component in line with good industry practice. In addition, regular maintenance work will be undertaken on the general operation of the railway and train stations to maintain infrastructure and equipment safety.

Security Personnel: Security personnel are engaged as a third-party service and national police monitors freight and passenger trains. LAR will develop a policy on the use of public and private security forces as well as a Security Management Plan (SMP) in line with PS 4 requirements. The SMP will be supported by the following: (i) security and human rights training plan covering topics such as appropriate use of force, human rights, gender considerations, appropriate conduct towards workers and affected communities; and (ii) training (to be provided by a qualified security firm with experience and knowledge of PS 4 requirements (ESAP #16). In addition, LAR will review and update the contracts with its security provider to include provisions related to vetting of personnel, training, procedures in the event of any incident or alleged violation to ensure effective oversight and accountability for the security personnel (ESAP #16).

PS5: Land Acquisition and Involuntary Resettlement

General: The majority of the Lobito railway corridor is sparsely populated, and LAR will seek to avoid resettlement. Considering that there might some greenfield developments for which the scope of construction and land boundaries are not yet known and/or the need to move informal users and settlers along the railway corridor, LAR will develop a Resettlement Framework in line with PS 5 that guides the resettlement process, eligibility criteria and compensation framework/entitlement matrix to be implemented for affected households that will be economically and/or physically displaced including an assessment of the gaps between PS 5 and the relevant Angolan legal requirements (ESAP #17).  

If needed, a  Resettlement Action Plan (RAP) and Livelihood Restoration Plan (LRP) consistent with PS 5 will be developed prior to any land-taking or site clearing which will include but not limited to: (i) compensation for loss of assets at full replacement value; (ii) assistance for informal users and settlers along the railway corridor; (iii) identification and monitoring of vulnerable households; (iv) no forced evictions (v)  process of informed consultation and participation; and (vi) monitoring arrangements to review that affected persons receive the entitlements and support for which they are eligible (ESAP #17). In addition, the grievance mechanism (ESAP #4) will be made available to the affected people. LAR will also develop an encroachment management plan to minimize/ prevent encroachment along the Lobito corridor RoW (ESAP #17).

In case land acquisition and resettlement are required, a completion audit will be conducted by independent resettlement consultants to verify that the objectives of the RAP have been met. If it is identified during the completion audit that affected people were not able to replace their living conditions and/or restore their livelihoods, LAR will implement additional compensation measures as required so that the outcomes of the resettlement process are consistent with PS5 requirements (ESAP #17).

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

Given that the infrastructure has been in existence for many decades, the footprint and RoW are Modified Habitat (MH). The landscape crossed by the railway includes areas with high human intervention and patches of Natural Habitat (NH); in the central plateau and eastern areas there are larger areas of NH. 

Most of the railway overlaps the Angolan Miombo woodlands ecoregion, which covers the majority of central Angola. The ecoregion's characteristic habitats are moist deciduous broadleaf savanna and woodland, with open grassland areas. Small portions of the alignment overlap the Angolan scarp savanna and woodlands ecoregion (after the town of Benguela) and Angolan montane forest-grassland mosaic ecoregion before Huambo. 

Outside the RoW, there are important habitats and sensitive areas towards the Eastern part of the alignment (e.g. the anharas do alto in the Cutato area, dry forest formations of the Eastern Moxico Plateau, panda/miombo forest in the Cuemba area, wet pseudo-steppes (anharas) in the Moxico area the wetland areas of the Savinguila River catchment). The existing railway line is adjacent to and indicates the border of Cameia National Park, and a new station is planned in the area. The railway also partially crosses the Buffalo Partial Reserve protected area in Benguela. 

Fauna species of importance that could be present in the wider area include the following mammals: Hippotragus niger ssp. variani CR and potentially range restricted, Lycaon Pictus EN and nationally threatened with extinction, Phataginus tricuspis EN, Aepyceros melampus ssp. petersi VU and potentially range restricted, Equus zebra ssp. Hartmannae VU and nationally threatened with extinction, Cercopithecus mitis mitis DD and endemic to western Angola. Other species of interest include: Dasymys nudipes DD and potentially range restricted, and the restricted range Pachydactylus angolensis.

Considering proximity to Cameia National Park, and the presence of important habitats and species throughout the alignment, while the Project is not likely to significantly impact biodiversity, it is precautionarily considered to be within a wider Critical Habitat (CH) area. LAR will undertake a CH assessment, and if CH is confirmed, the Project will achieve Net Gain for the relevant biodiversity values through conservation actions that may include habitat restoration, drainage improvements in wetland areas, contributions to existing conservation activities.  For work in the proximity of Cameia National Park and other protected areas, LAR will obtain all permits and authorizations required for the upgrade works, undertake consultation with protected area managers and identify contributions to the conservation objectives of the area.  A Biodiversity Action Plan will be prepared if CH is confirmed (ESAP #18).

Rehabilitation activities will have a minimal additional footprint and significant residual impacts to NH and CH will be avoided. LAR will identify and map sensitive areas along the Lobito corridor (including NH, CH, areas of conservation importance). Project activities and potential impacts in those areas will be assessed in detail. A Biodiversity Management Plan (BMP) will be developed and implemented in sensitive aeras to avoid significant residual impacts to natural or critical habitats (ESAP #19). The BMP will include mitigation to avoid or minimize additional footprint in sensitive areas, and the impacts of erosion, invasive species, pollution, dust, noise, invasive species, presence of workers and location of camps; and operational impacts such as bushmeat traffic, and risk of collisions. In addition, all restoration and rehabilitation post upgrade activities will be undertaken using native species (ESAP #20). 

Invasive species were identified along the corridor, mainly around settlements: Chromolaena odorata, Tithonia diversifolia, Leucauena leucocephalia, Prosopis juliflora, and Opnuntia ficus-indica. The BMP will include good practice mitigation measures to avoid spreading of invasive species by Project activities.

The project is not expected to impact any Priority Ecosystem Services. The ESMP will include mitigation to avoid erosion in proximity to watercourses and agricultural land (per ESAP #4 and ESAP #12). 

PS8: Cultural Heritage

The ESIA did not identify impacts resulting from the Project on Cultural Heritage. The Lobito corridor intersects in certain areas with the river route known as “Kwanza Corridor” which has been included by the Ministry of Culture and Tourism on the list of National Heritage. It is considered a cultural heritage site, because of its importance as part of the country's history and memories and is considered to be the "cradle of Angolanity". 

LAR will develop a Cultural Heritage Management Plan, covering tangible and intangible cultural heritage sites, including the Kwanza corridor, shrines, and graveyards. In the Plan, LAR will include a Chance Find Procedure, which covers criteria for potential temporary work stoppages in the event of a chance find, training requirements for workers on the chance find procedure, as well as reporting and recording protocols (if applicable) (ESAP #21).

A Broad Community Support determination is not required for the Project. 

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

• ESIA VOL 1

• ESIA VOL 2

For additional information on the Project, please contact:

• NAME, Position – Francisco Franca, Chief Executive Officer 

  Address: Lobito, Angola 
  E-mail: Francisco.Franca@lobitoatlantic.co.ao

  Phone: +244 945 025 716

   

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