Nyumba Ya Akiba S.A.

Project Description

Lucky Cement is requesting a MIGA guarantee for their US$66 million equity investment in Nyumba Ya Akiba S.A. (NYA), against the risks of Expropriation and Transfer Restriction, for a period of up to 10 years. NYA is a 50:50 joint venture between Lucky Cement Limited (LCL) of Pakistan and Groupe Rawji of the Democratic Republic of Congo (DRC). The company is headquartered in Kinshasa. Groupe Rawji is a DRC based multinational company with interests in logistics, banking, manufacturing, trading, real-estate development and port operations. Outside of DRC the Group also has operations in Angola, Belgium, China, Dubai, Germany, India, Nigeria, and South Africa. LCL is Pakistan’s largest producer of cement with a production capacity of 7.75 million tons per annum (tpa). LCL currently has two operational plants in Pakistan and employs over 2,200 employees. LCL is also a joint venture partner in an 871,000 tpa cement grinding facility in Basra, Iraq.

LCL, through the NYA joint venture, has developed a greenfield cement project in the Songologo Region of the Bas-Congo Province of DRC, approximately 250 km south-west of Kinshasa, the capital city of the DRC (“the Project”). The N1 (the main Kinshasa-Matadi port highway) passes around 2 km from the project site, while the main Kinshasa – Matadi national railway line passes through the Project site, south of the plant site. IFC provided an investment into the Project in 2014 (see IFC disclosure here: https://disclosures.ifc.org/#/projectDetailESRS/1207), and site preparation and construction began in late 2014. Construction is now complete, and commercial operations commenced in early-December 2016.

The key components of the Project include: a cement plant (with a production capacity of 1.18 million tpa); limestone quarry (to be exploited using opencast mining); overburden storage; storage silos for ground cement (2 silos with a capacity 15,000 tons each); waste management facilities; access and haul roads; and employee accommodations. A 220 kV power line (6 kilometers), which was constructed to provide power to the Project, is considered an associated facility (as defined by MIGA’s Performance Standard 1). The Project relies on existing public road (N1 highway) and rail infrastructure (to and from Matadi Port) to transport raw materials and the finished product to and from the plant. Limestone, clay and laterite will be mined, crushed and mixed with sand in the clinker production process, which will then be milled at an on-site grinding plant with limestone and (imported) gypsum to produce cement. A fully mechanized opencast method of mining will be used, utilizing excavator dumpers and deep-hole blasting. The clay present in the top layers of the deposit will also be used as part of the cement production process. The expected life of the mine is at least 40 years. The plant will have the capacity to bulk-load cement for commercial clients as well as to package and load cement in bags for sale in local retail markets.

NYA holds a lease of 28.56 km2 under an exploration permit and the total footprint of the project will be approximately 1.5 km2 (150 ha). Land concession rights have been issued for occupation of the land. The area in which the project is located is largely degraded and is considered a modified habitat. It is rural in nature and characterized by a lack of development or infrastructure. Approximately 10,000 people are estimated to live in the broader vicinity of the proposed project. There are 7 small settlements in the area, including Yuku, Kokolo, Nkonda, Mbemba, Kinsua, Mbamba and Minkelo.

The construction was undertaken by multiple contractors for civil, mechanical and electrical works. Both international (Pakistani and European) and local sub-contractors were used. Three Congolese sub-contractors are also involved in sourcing the local workforce for the Project. NYA is responsible for Operations and Maintenance of the Project. NYA employs national third-party sub-contractors primarily for the transport of coal from the port of Matadi and partial removal of overburden at the quarry

Environmental and Social Categorization

This is a Category A project according to MIGA’s Policy on Environmental and Social Sustainability (2013) because it has potential adverse environmental and social risks and/or impacts that are diverse and irreversible.

The environmental and social risks mainly relate to; i) Water: Potential impacts on the surficial water bodies in the vicinity of the project due to groundwater abstraction and contamination related to improper disposal of waste and discharge of untreated process water to these water bodies; ii) Biodiversity: Potential impacts on the aquatic biodiversity of the surficial water bodies in the vicinity of the project and loss of provisioning ecosystem services (fishing) to the local communities due to groundwater abstraction and contamination related to improper disposal of waste and discharge of untreated process water to these water bodies. In addition there are potential impacts (yet to be quantified) associated with the swamp and gallery forests of the Yuku River due to the haul road placement; iii) Resettlement: A limited number of households will be physically and economically displaced; and; iv) Community Health and Safety: Substantial traffic during both construction and operations has the potential to impact on the health and safety impacts on the local communities. Environmental and Social Management Plans have been developed for the management of these impacts.

Applicable Standards

While all Performance Standards are applicable to this investment, based on our current information indicates that the investment 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.

PS7 and PS8 are not applicable to this investment as there are no Indigenous People (as defined in MIGA’s Performance Standards) and no Cultural Heritage issues, respectively, in the Project area have been identified from the documents reviewed and the site visit. A Chance Find Procedure has also been prepared.  

In addition, the WBG EHS General Guidelines and Guidelines for Cement and Lime Manufacturing apply to this Project.

Key Documents and Scope of MIGA Review

MIGA’s environmental and social due diligence of this project largely relied on the due diligence previously undertaken by IFC, and IFC’s ongoing supervision of the Project. In addition to the documents previously disclosed by IFC, the following documents were reviewed by MIGA:

• Draft Environmental and Social Monitoring. Nyumba Ya Akiba – Cement Plant. Report from 6th Visit, February 2017 (ERM prepared for NYA, IFC, AfDB, FMFM, EKF and HBL).
• Environmental and Social Monitoring. Nyumba Ya Akiba – Cement Plant. Report from 4th Visit, March 2016 (ERM prepared for NYA, IFC, AfDB, FMFM, EKF and HBL).
• Environmental and Social Performance Monitoring Report (Semi-Annual) – January – June 2016. (Prepared by NYA for IFC, AfDB, FMFM, EKF and HBL).
• Information from IFC supervision missions between 2014 and 2017.
• Five Year Water Management Master Plan, October 2016;
• Final Biodiversity Action Plan (BAP), October 2016;
• Final Restoration protocol, October 2016; and
• Traffic Management Plan, September 2016.
• ESIA Addendum Report (SRK, December 2014)
• Security Risk Assessment (July 2014)
• Communicable Diseases Plan (June 2014)
• Construction Management Plan (June 2014)
• Labor and Human Resources Plan (June 2014)
• Occupational Health and Safety Plan (June 2014)
• Green House Gases Management Plan (June 2014)
• Waste Management Plan (June 2014)
• Emergency Preparedness and Response Plan (June 2014)
• Sustainable Development Plan (May 2014)
• Stakeholder Engagement Plan (December 2014)
• Community Health and Safety Plan (December 2015)
• Grievance Mechanism Report (November 2014)
• Malaria program (undated)
• Internal grievance mechanism (August 2015)
• Resettlement Action Plan (January 2016)

Key Issues and Mitigation

The following information is based largely on IFC’s appraisal of the Project, however, where relevant, updated information is provided.

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

Environmental and Social Assessment:

The Project was approved by local authorities in 2011, following an Environmental Impact Assessment (EIA) by an accredited local consultant, OEMS. Although this met DRC legislative requirements, it did not meet lender requirements; therefore an Environmental and Social Impact Assessment (ESIA) was commissioned and submitted in March 2013 by the Pakistani consulting firm ECTECH. The lenders subsequently engaged ERM, a recognized international environmental consulting firm, to undertake an environmental and social due diligence of the Project. This due diligence identified further gaps between lender requirements and the March 2013 ESIA. To address these gaps, NYA appointed SRK, another recognized international environmental consulting firm, to prepare an ESIA Addendum and updated Environmental and Social Management Plan (ESMP) in line with the requirements of the IFC Performance Standards. The SRK ESIA did not constitute a complete revision of the ECTECH ESIA but rather focused on addressing the gaps identified where possible, and noting remaining gaps requiring further investigations. Measures to address these gaps were summarized in an agreed Environmental and Social Action Plan (ESAP). Many of these studies have now been undertaken, and their findings are provided in the appropriate sections below.

A separate ESIA was undertaken and approved by the government prior to construction of the associated 220 kV transmission line.

The potential exists for cumulative impacts related to transport and influx of workers, and air quality due to the proposed Project. There are 2 other cement facilities in the vicinity of the Project – a new 1.25 metric tpa cement plant PPC (a South Africa cement producing company) is developing some 30 km east of the Project site and Cimenterie de Lukala (CILU), an existing cement facility is situated at Lukala, approximately 37 km east of project site on the road to Kinshasa. A high level assessment of cumulative impacts was undertaken as part of the initial ESIA, and then further assessment was included in the ESIA Addendum.

Management Program and Monitoring:

LCL has in place a comprehensive environmental management system which is strictly applied at all operations in Pakistan – both of which are certified against ISO 14001. The company is also committed to provide a safe work environment to its employees and conducts risk assessments on an ongoing basis to identify all risks that may cause harm in the workplace. Thus, to build up the management systems for NYA, the company is relying on expertise at the LCL corporate level in Pakistan, and from consultants.

As of February 2017 (the most recent Independent Environmental and Social Monitoring Report), NYA is still in the process of establishing an internal structure to implement their environmental, social, health and safety managements (ESMS). NYA has a Sustainable Development Policy; a Health and Safety Policy; and a Human Rights Policy in place. The Sustainable Development Policy states that NYA is committed to responsible management practices that avoid and minimize adverse health, safety, social and environmental impacts, and aim to enhance the benefits associated with its activities, products and services.

As part of the ESIA, SRK developed a series of Environmental, Health and Safety (EHS) management plans. These include: A Labor and Human Resources Plan (LHRP); Occupational Health and Safety Plan; Community Health and Safety Plan; Green House Gas (GHG) Emission Assessment and Management Plan; Waste Management Plan; Emergency Preparedness and Response Plan (EPRP); Stakeholder Engagement Plan; and a Framework Resettlement Action Plan. These high level plans were further developed into a series of detailed plans, including Construction Management Plan; Communicable Diseases Plan;  Greenhouse Gases Management Plan; Sustainable Development Plan; revised Community Health and Safety Plan; Grievance Redress Mechanism; Resettlement Action Plan (RAP); Traffic Management Plan; and Chance Find Procedure. The February 2017 monitoring report, however indicates that in addition to these plans, the Project is still working to develop tools and procedures to support ESMS implementation. Procedures for the development and operation of the quarry have also been prepared, including procedures related to safety; excavation of soil; dust management; and truck driving.

The Project has initiated the process to certify the EHS management system according to ISO 14001 and OHSAS 18001. Certification was expected by mid-2017, however it has been postponed to ensure that the management plans developed toward the end of 2016 are being fully implemented.

Organizational Capacity and Training:

During construction, environmental and social aspects on site were managed by the Sustainable Development Manager, who was supported by an EHS advisor; 4 coordinators (NYA health and safety coordinator; health and safety coordinator for sub-contractors; social coordinator; and environmental coordinator); and 5 officers who report to the coordinators (safety officer; community liaison officer; RAP officer; and 2 environmental officers). Each sub-contractor also had a safety representative on site. Subcontractors working on site are integrated within the Project ESMS and are working under the authority of the Project EHS team. For operations, NYA has an established environmental, health & safety, and social team  (also named EHS Team, approximately 20 staff) headed by the Environmental, Health & Safety, Security and Admin manager and his Deputy, who report to the NYA site General Manager.

There were initially communication issues on site – as few of the expatriate sub-contractors could speak English or French, and few of the local employees could speak Urdu. EHS documents, though, have now been translated into all three languages and translators have been hired to assist teams.

The EHS capacity of staff on site is still improving. The EHS team on site developed an induction presentation (in English, French and Urdu) that is now shared with workers before they start working on site. Training sessions are held on site. From September 2015 to March 2016, training in hazard identification and ISO14001 / OHSAS 18001 requirements was held. Toolbox talks are also held once per week, and typically focus on health and safety. The Lender’s Action Plan developed in the February 2017 monitoring report recommends strengthening the internal EHS training programs.

 Emergency Preparedness and Response:

NYA has developed an Emergency Preparedness and Response Plan as per the requirements of DRC’s Mining Code and the Performance Standards. This plan provides a description of the risks and associated response to potential incidents such as medical emergencies, fires, nonscheduled explosions, vehicle accidents, hazardous materials spills/release, security, as well as natural disasters. Emergency and evacuation drills are scheduled to be undertaken every 2 months. The drills are documented and any deficiencies and related corrective actions are identified.

Monitoring and Review:

An environmental monitoring plan and a social monitoring plan are provided in the ESIA. These were developed based on compliance with environmental standards as prescribed by the DRC Mining Regulations and the World Bank Group (WBG) EHS Guidelines. Monitoring of environmental and social issues such as drinking water quality, surface water quality, treated sewage effluent quality, noise, air quality, etc. is included in the various management plans as described above. NYA will include results of its monitoring activity in the Annual Monitoring Report (AMR) to be submitted to MIGA on an annual basis. 

Grievance Mechanism

A grievance mechanism has been established for the Project. Grievances are collected either by mail boxes that have been established in the surrounding villages or via the Cadre de Concertation Permanent’ (the consultation committee comprised of representatives of the affected communities). Once collected, the complaints are processed on site by the social team (social coordinator; community liaison officer and RAP officer). Monitoring indicates that this mechanism is functioning.  The primary complaints received are regarding the number of local employees / employment opportunities; recruitment practices of the local sub-contractor responsible for recruitment; and working conditions.

PS2:  Labor and Working Conditions

At the peak of construction there were approximately 1,250 people employed by NYA and sub-contractors – approximately 50 in the head office in Kinshasa and 1,200 at site. Of these, approximately 50% were expatriate and 50% were Congolese. About 80 employees (65 Congolese and 15 expatriate) were permanent NYA employees, the remaining employees were hired on temporary contracts as consultants (expatriate employees) or daily workers (Congolese). During operations, there are approximately 700 people employed on site and 50 in the head office. Local daily workers are engaged via various local sub-contractors.

Human Resources Policies and Procedures:

NYA has a Human Resources (HR) Policy and a HR Manual was developed by the head of NYA HR as well as a Workers’ Code of Conduct, applicable to all contractors and subcontractors employing workers on site. A HR Manager has been recruited permanently on-site. The policy and procedures relate to contracted employees during construction as well as operational staff, and cover general conditions of service; recruitment procedures; remuneration and compensation procedures; training and development; dispute settlement procedures and a policy on rights of association and bargaining. In terms of protecting the workforce (child labor and forced labor), NYA has included a Human Rights Policy within the LHRP that commits to ensuring fair treatment and work conditions for all employees, including rights to association and collective bargaining and prohibit forced, compulsory or child labor.

Congolese workers employed directly by NYA have employment contracts which include terms of employment, such as working hours and penalties. There is currently no workers union or collective bargaining, but there is nothing in employment contracts or the company’s by-laws to restrict employees from forming or joining a union. Pakistani expatriate workers (both permanent and consultants) are hired with the support of Lucky Cement in Pakistan. Their contracts also include terms of employment, such as working hours, holidays and repatriation. The term of employment is typically one year.

Congolese daily workers are employed via three interim companies, though written employment contracts and records are also maintained by NYA. Daily workers went on strike for 3 days in early 2016 due to delays in payments from 2 of the interim companies to the workers. In response, the NYA HR Department has revised the contracts with the interim companies to better define the required labor conditions.

While there is no requirement for interim companies to hire workers from local and affected communities, NYA has requested in writing that preference be given to local employees. The NYA HR team keeps statistics on local employment, and regularly shares these statistics with the community. Meals are provided for all workers on site (including daily workers) at no additional cost.

As per the requirements of the ESAP agreed with IFC, a third-party labor and OHS audit was undertaken in October 2015 by Okapi Environment, a local consulting firm. The audit identified a number of non-compliances, particularly related to proper use and wearing of PPE; need for risk assessments and emergency evacuation drills; improvement in incident reporting procedures; improvement in workers accommodation; and recording of proportion of expatriate workers. An action plan was developed to address these issues, which was subsequently implemented by the Project.

Grievance Mechanism:

An internal grievance procedure was developed in August 2015 by the Project’s HR department. This procedure, which applies to both direct employees and sub-contractors, has been presented to all workers on site. A review of the system undertaken by ERM indicated that both local and expatriate employees use the mechanism (grievances have been received in both French and Urdu).

The grievance mechanism is implemented by a grievance committee, which was established by the HR department. The committee is responsible for communication of the mechanism to employees and sub-contractors; complaints logging, processing and tracking; and ensuring redress.

Occupational Health and Safety:

An Occupational Health and Safety (OHS) Plan for both construction and operations was prepared by the Project in July 2014, and sub-contractor contracts require them comply with the Project OHS Plan. The plan references DRC, IFC and AfDB requirements. Implementation of the OHS Plan was identified to be weak during early construction, and corrective actions were put in place to improve implementation. As of December 2016, there were 7 health and safety staff on site – as indicated above, 3 employed by NYA and one employed by each of the sub-contractors. The review undertaken by ERM in March 2016 indicated that the authority of the safety officers was recognized by the rest of the staff, and that these officers had the authority to stop work if they saw unsafe conditions. Monitoring indicates that the number of health and safety accidents and incidents significantly decreased from early 2015 to the end of 2016. However, while some training has been undertaken, additional training is still required. The Project has developed and implemented several health and safety procedures to address identified risks, such as a “Lock Out / Tag Out” procedure (preventing accidental startup of hazardous machinery), to address identified risks.

The Project has a procedure in place to record, document and communicate on site health and safety incidents. The incidents are divided in different categories including first aid, medical treatment, incidents and lost time injury. There is a medical team on site, which consists of one doctor and 4 nurses.

Worker Accommodation:

During construction, employees were housed in temporary accommodation, including prefabricated buildings; temporary concrete buildings and tents at two temporary camp sites. Additionally, some houses were also rented in the city of Kimpese for Congolese management staff. Transportation is provided for the workers living in Kimpese. For operations, there are 2 camps on site – the first houses approximately 250 people and another houses approximately 70 people. Recent monitoring indicated that both camps are largely in compliance with IFC / EBRD Guidance Note on Worker’s Accommodation. There are 5 kitchens on site: 3 kitchens for expatriates and 2 for Congolese. The drinking water for the camp is pumped from both surface water and a well installed on site.  Drinking water is treated with charcoal filters and UV rays, and is tested regularly.

PS3:  Resource Efficiency and Pollution Prevention

Resource Efficiency:

Power supply for the Project is obtained from the DRC national energy grid via a new 6.6 km, 220kV power line from the Kwilu substation to the plant site. Maximum power demand for the proposed cement plant is approximately 16.5 MW. The electricity is mainly used in the cement production, namely; cement production plant, cement grinding, clinker production, packing and dispatch, etc. Back-up power is provided, if needed, by an 800 kVA 400 Volts 50 Hz diesel generator. When used, the back-up generator will only support essential plant equipment and emergency lighting and will not maintain operation of the plant as a whole (including the kiln).

The clinker production and cement grinding facilities have been built according to the Best Available Technologies defined for the cement industry, which include the adoption of preheating and pre-calcining technology in the clinker production and de-dusting bag filters for gases. At full production, the clinker production plant will consume approximately 396 tons/day or 118,800 ton/yr of coal which is imported from South Africa through the port of Matadi. The coal is consumed exclusively in the calcining process. Coal will not be used for electricity generation (as indicated above – electricity will be sourced from the grid). The clinker plant has a predicted thermal energy efficiency performance of 730 kcal/kg of clinker and an electrical power consumption of 57.0 kWh/ton clinker, which is within industry standards established by the European Union. In addition to coal, provision has been made to use heavy fuel oil for start-up and in case of an emergency.

Combined electricity consumption per ton of bagged cement, including clinker production, grinding, blending and bagging is approximately 90 kWh per ton of cement, which compares favorably to the industry standard of up to 105 kWh/ton cement.

The plant is based on a dry process with water only needed for cooling purposes, dust suppression on roads, and domestic water usage. The estimated water consumption is 1,080 m3 per day (approximately 750 m3 for the cement plant and the rest of dust suppression and domestic use). Water is pumped from the Sansikwa River that flows on the eastern side of the quarry concession area, and is treated at a water treatment plant prior to use. Water is stored in a combination of underground and over-ground tanks, and is recirculated after cooling for use in plant equipment.

Solid Waste Management: The Project will produce a wide range of waste from its operations, including office and household solid waste and non-hazardous industrial waste (paper, packaging material, kitchen waste, building rubble, non-hydrocarbon filters, etc.); salvageable/recyclable material (scrap metal, pipes and scrap wood); hazardous waste (used hydrocarbons, expired chemicals, paints, lead batteries etc.); medical waste; waste water; and top soil and overburden. All waste will be managed according to the Project Waste Management Plan (June 2014).

Domestic waste is currently collected in metal/ plastic bins installed around the camp site. The waste is sorted (organic, general and recyclable) and stored at an on-site waste storage area. Organic waste and general waste is disposed of in an unlined landfill on site. Recyclables are stored on site until they are picked up by contractors for reuse or recycling. Hazardous materials, such as used oil, filters and oily rags, are stored on site and then given to the informal market to be reused. Medical waste is stored in plastic bottles at the dispensary and are transferred to the hospital in Kimpese for disposal. During operations, most of the general waste produced is co-processed in the cement plant oven.

Topsoil and overburden from the quarry is stored for eventual reuse for quarry reclamation as the quarry operation proceeds. NYA has a Mine Closure plan which focuses on the end state of the operations for closure. The plan, which will be implemented at the start of production and thereafter updated on a regular basis, was prepared in accordance with the DRC requirements and WBG EHS Guidelines for mining. The closure plan includes details on decommissioning, rolling quarry management, overburden and topsoil storage and reapplication and restoration. According to the closure plan project infrastructure that has no post-closure use (such as the plant equipment) will be removed whilst the quarry and overburden site will be appropriately re-vegetated and secured to prevent inadvertent access by humans and animals.

Wastewater Management: For construction and operation, the domestic sewage is disposed of via a number of septic tanks/soakaways (approximately 15). These solutions, however, are not sustainable given the amount of sewage generated, and therefore NYA is currently exploring alternative solutions, including installation of additional septic tanks or a pre-fabricated sewage treatment plant.

In 2016, three reports were prepared by an international consulting firm summarizing the output of hydrological and hydrogeological studies and providing guidance on the monitoring of water quality during the operations phase. The reports also provided different options related to dewatering of the quarry and water discharge and use. Based on these reports, a ‘Five Year Water Management Master Plan was prepared for the operations phase. A groundwater monitoring program has also been developed, and monitoring wells have been placed at critical locations.

Hazardous Materials Management: During construction, hazardous materials, including lubricating oil and grease, were stored in drums on site in a covered area with an impermeable base. For operations, coal and fuel storage areas have been developed. Coal storage areas are covered, and have a 50,000 ton capacity. Some fuel is stored in underground storage tanks, designed in accordance with recognized industry standards, and some fuel is stored in special purpose above ground fuel tanks. The underground storage tanks are double skinned and are equipped with a continuous leak detection system. Approximately 27,000 liters and 3,000 kg of oils and greases respectively (of various types) are required on an annual basis for operation of the plant. These are stored in enclosed containers at the plant site, as per the manufacturer’s instructions.

A hazardous chemicals store is located within the plant area. Recent monitoring identified some gaps in compliance between current storage and the requirements of WBG EHS guidelines. Actions have been identified to address these gaps. The quarry operation requires the use of explosives. Explosive usage is strictly regulated by the authorities, and the Project follows all national laws and regulations in this respect. The storage for explosives has been established in a remote location, is fully fenced and guarded by security 24 hours per day / 7 days a week to avoid any interference with routine operations.

Air Quality: Prior to construction of the Project, the air shed in the project area was fairly un-degraded, as there was no industrial or commercial activity in the vicinity of the Project. Primary sources of air emissions from the implementation of the project will include particulates from quarrying, raw and finished materials as well as fuel combustion. Water based dust control measures are implemented within the perimeters of the quarry, on access roads and at the plant, where evacuation and filtration systems are not practical. Watering is conducted to reduce the dust concentrations to below the WBG EHS Guidelines for Cement and Lime threshold of 50 mg/Nm3 within the quarry area.

All plant units have dust control measures installed (e.g., bag filters at all emission points and electrostatic precipitators for the clinker cooler with guaranteed emissions of 20mg/Nm3 and 30mg/Nm3 respectively). The equipment supplier has guaranteed that these filters will achieve maximum emissions of 20 as well as 30 mg particulate/Nm3 which is consistent with WBG EHS Guidelines. 

Apart from particulate emissions, other major point source pollutants in the cement manufacturing process are sulfur dioxide and nitrogen oxides, which are related to the operation of the clinker kiln. Sulfur dioxide emissions are expected to be low, as the alkaline conditions in the clinker kiln will result in the absorption of the majority of the sulfur entering the systems either through the raw materials or the fuel. The sulfur dioxide emissions are not expected to exceed WBG EHS Guidelines value of 400 mg/Nm3. However, a detailed monitoring over a full 12 months is being carried out to provide information on air quality and assist in predicting routine and upset impacts that require management. The baseline air quality study will also assess the potential for cumulative impacts on air quality taking into account the new PPC plant; though this is considered unlikely at this stage taking into consideration it is located some 30 km distant. The Project has a plan in place to continuously monitor particulate, SOx and NOx emissions at the main stack and ambient air quality in local communities. The results of this monitoring will be provided to MIGA in the Annual Monitoring Report.

Greenhouse Gases (GHG): The Project is expected to produce approximately 950,000 tCO2e per year. A GHG Management Plan was developed with measures including energy efficiency improvements, raw material substitution and use of alternative fuels. GHG emissions will be quantified on annual basis and reported to MIGA in the Annual Monitoring Report.

Noise: Primary sources of noise from the Project includes excavation, blasting, drilling, road vehicles engine and movement, stockpiling, and loading and unloading of rock into dumper trucks. As the residences closest to the quarry have been relocated, there are no sensitive receptors in the immediate vicinity of the quarry. Quarry operation activities are mainly carried out during day-light only. In-plant shielding of noise emissions have been adopted to ensure that noise levels at the boundaries are within the regulatory limits. In addition to this, NYA has also adopted good practice methods in the prevention and control of noise, including having all equipment for the plant designed to operate with low noise levels, without exceeding the maximum allowable noise level for the surrounding receiving land use. Noise monitoring is undertaken regularly at the site boundary and at sensitive receptors near the plant site.

 PS4:  Community Health, Safety and Security

Infrastructure and Equipment Design and Safety: Potentially negative community health impacts stem from dust and noise due to the movement of heavy equipment, materials and project personnel during construction. During operations, blasting and heavy trucks transporting raw and processed materials will affect the population of rural villages and settlements located within a few kilometers of the cement plant, and along nearby roads which will be important conduits for importing raw materials and exporting the finished product i.e., cement.

A ‘Community Health and Safety Plan’ was developed in June 2014 and updated in March 2015 and again in December 2015. The next update of the plan is scheduled for the first quarter of 2017.

Traffic: Potential impacts of increased traffic and associated safety issues were found to be of major significance in the ESIA, reduced to medium with proper mitigation. A Traffic Management Plan was developed and implemented for the construction phase, which included the installation of speed limitation and traffic control signs, speed bumps, construction of sidewalks and alternative pedestrian routes, and driver training. A Traffic Management Plan has also been developed for the operations phase, which includes the design of the plant internal waiting area sufficiently large to accommodate 200 - 300 trucks per day. This area is secure and will be provisioned with sanitation, food services, and other small shops so as to minimize if not eliminate the need for waiting truckers to enter nearby villages for such services.

Blasting Management: Blasting and storage and handling of explosives is undertaken in accordance with the relevant international guidelines and DRC regulations. Potential impacts of blasting on surrounding communities is covered in the Community Health Management Plan and in the Emergency Preparedness and Response Plan.

Community Exposure to Disease: The increased potential for the spread of communicable diseases such as HIV/AIDs and other STDs linked to the influx of predominantly male job-seekers and workers was rated as of low significance in the ESIA for both the construction and operation stages. The Community Health and Safety Plan provides measures for reducing potential exposure and spread of infectious diseases including HIV/AIDS and other STDs, or malaria. The medical staff on site provide HIV/AIDS and other STD sensitization training to workers and a strong vector control program is in place on site and at the worker accommodation.

Emergency Preparedness and Response: As mentioned above, the Project has prepared an Emergency Preparedness and Response Plan (EPRP) in response to the requirements of DRC’s Mining Code and the requirements of the Performance Standards. The EPRP includes external steps for setting up lines of communication for external liaison and reporting, including coordination with emergency services, where they exist and appropriate communication with the media and reporting to, and liaison with the media. The EPRP is based on the assumption that there will be limited external emergency services available, and therefore NYA’s emergency procedures need to be robust and self-sufficient.

Security Arrangements:

A Security Risk Assessment was undertaken in October 2015 by the NYA security Manager. This security assessment was comprehensive and provided a clear risk matrix and control measures. The assessment included a Security Management Plan, which was implemented during the construction phase, and is now implemented during the operations phase. To support implementation of the plan, a series of security procedures have been developed. The Project has engaged an international security contractor to provide security guards for the site. National Police Officers also provide security for the site. The National Police Officers based at the site are managed by the international security contractor.

PS5:  Land Acquisition and Involuntary Resettlement

The project required the acquisition of approximately 150 ha of land for the construction of the cement plant, the quarry, the overburden stockpile and other project facilities. Of this, approximately 28 hectares were identified as currently owned/utilised by local communities and requiring physical and/or economic resettlement. This, in combination with other project impacts (dust, noise, safety etc.) will result in physical resettlement of one village of 9 households (Yuku village), and economic resettlement of approximately 56 households.

Due to the fact that the project footprint was not finalized at the time of the ESIA, a Framework Resettlement Action Plan (FRAP) was developed, with a view to developing Resettlement Action Plans (RAPs) and/or Livelihood Restoration Plans (LRPs) once the footprint is finalized. The detailed RAP was completed in January 2016. A census and asset inventory was undertaken by SRK in June 2013. This was done in the presence of a local government authority and owner of each asset/facility/field, and based on a sound methodology in line with PS5 requirements, and appropriate stakeholder consultation; however, detailed measurements for the fields associated with the final footprint must still be undertaken. This was incorporated into the detailed RAP.

Compensation and Benefits for Displaced Persons: All assets will be compensated for based on an agreed entitlement matrix. The principles for this entitleme

Environmental Permitting Process and Community Engagement

As indicated under PS 1, the Project submitted an EIA to the Government as per DRC laws in 2011. This EIA was approved, and the project was provided with a permit to construct the Project. The Project has also received appropriate permits for Project operation.

Community Engagement: Appropriate engagement was undertaken with PAPs and relevant stakeholders during the FRAP process, and a Stakeholder Engagement Plan (SEP) was developed for the Project in December 2014. The SEP summarizes the plan for engaging with project stakeholders and engagement activities undertaken up to December 2014. Additional engagement with physically and economically displaced people took place throughout 2015 and 2016, and the SEP continues to be implemented. All meetings are formally recorded in meeting minutes. As part of the SEP, a Community Grievance Mechanism was prepared.  The document, available in English and French, describes the main principles and tools of an efficient grievance mechanism. A simplified version of the mechanism has been disclosed via posters in local language in the surrounding villages. Review of implementation of the grievance mechanism undertaken in February 2017 indicated that it was functioning. Primary grievances are related to job opportunities for local residents.

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

Availability of Documentation

• ESIA Addendum (December 2014);
• Final Biodiversity Action Plan (October 2016);
• Resettlement Action Plan (January 2016).

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 NYA office in Kinshasa.

For inquiries and comments about the project contact:

Christian NGOY NDOMBE
EHSS Manager
+243816139388
mailto:cngoy@nya-cement.com
Nyumba Ya Akiba sarl
Immeuble Forescom 7ème Niveau, av.du Port N°4
Kinshasa GOMBE/RDC