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Malawi

Student Accommodation Public Private Partnership

$47 million
Manufacturing
Agribusiness
Services
Environmental and Social Review Summary
Proposed
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Environmental and Social Review Summary

Student Accommodation Public Private Partnership Project

This Environmental and Social Review Summary (ESRS) is prepared by MIGA staff and disclosed prior to the date on which MIGA’s Board of Directors considers the proposed issuance of a Contract of Guarantee. Its purpose is to enhance the transparency of MIGA’s activities. This document should not be construed as presuming the outcome of the decision by MIGA’s Board of Directors. Board dates are estimates only.

Any documentation that is attached to this ESRS has been prepared by the project sponsor, and authorization has been given for public release. MIGA has reviewed the attached documentation as provided by the applicant and considers it of adequate quality to be released to the public but does not endorse the content.

This Environmental and Social Review Summary (ESRS) covers the application of the Old Mutual Malawi (OMM) Limited (“Guarantee Holder”), for MIGA insurance coverage against the risks of Breach of Contract as well as Expropriation and War and Civil Disturbance on its equity investment of up to US$47 million for a period of 20 years. The Project entails the investment by OMM in OMIG Student Accommodation Limited (herein referred to as the “Project Enterprise” (PE) to construct and operate student accommodation facilities at three (3) universities in Malawi, which include (i) the Kamuzu University of Health Sciences Lilongwe Campus (KUHeS LL); (ii) Kamuzu University of Health Sciences Blantyre Campus (KUHeS Blantyre); and (iii) Lilongwe University of Agriculture and Natural Resources (LUANAR), Bunda Campus under a 35-year Public Private Partnership Agreement between OMM and the Government of Malawi (GoM) and the Universities Council. The PPP is structured on a Build Operate Transfer (BOT) basis.  OMM is 100% owner of the PE through Old Mutual Life Assurance Company (Malawi) Limited which is wholly owned by OMM. The intention of OMM is to transfer its investment in the PE into an Infrastructure Fund. Old Mutual Investment Group Limited (Malawi), which will act as manager of the PE. All Old Mutual entities in Malawi are ultimately 100% owned by the parent company Old Mutual Limited, South Africa.

The Project once constructed and completed will provide a total of 4,742 new beds in high-quality accommodations at the three universities. All developments are located on University land within established campus boundaries. The Project includes the construction and operation of the student accommodation facilities that includes: i) The Kamuzu University of Health Sciences Lilongwe Campus (KUHeS LL) consisting of 154 beds (102 rooms) with a development footprint of 3,063 m2;  ii) Kamuzu University of Health Sciences Blantyre Campus (KUHeS Blantyre) consisting of 560 beds (359 rooms) with a development footprint of 11,595 m2; and iii) Lilongwe University of Agriculture and Natural Resources (LUANAR), Bunda Campus consisting of 4030 beds (2,318 rooms) with a development footprint 61,834 m2.  The Projects will occur in three phases and the construction of KUHeS LL (phase 1) which is underway, commenced on June 1st, 2020 and will take 18 months to be completed.  KUHeS LL has been 80 % completed as of 30 June 2021. The construction of KUHeS Blantyre and LUANAR Bunda Campus (phases 2 and 3) are planned to start by the end of the fourth quarter of 2021 and end of 2021 and expected to be completed in 2024 and 2025 respectively.

Terrastone Construction Ltd has been appointed the Engineering Procurement and Construction (EPC) Contractor for the design and construction of the KUHeS LL (Phase 1). The EPC Contractors for the design and construction of KUHeS Blantyre and LUANAR Bunda Campus (Phase 2 and Phase 3) have yet to be appointed.

OMM will have operational responsibility for the student accommodation developments for a period of 20 years. The responsibilities include facilities maintenance, GBVH risks management, students’ safety, stakeholder engagement, solid wastes, life and fire safety, equipment maintenance and energy use among many others. OMM has appointed Malawi Property Investment Company Limited (MPICO) as the Operational and Maintenance (O&M) Contractor. However, MPICO contract signing is pending.  MPICO will be supported by a South African based student housing contractor.

KUHeS LL

The site is located on Mzimba Road, Lilongwe City District, Malawi. The geographical coordinates are 13°58’36.05” S and 33°46’57.15” E. The site is located within the Kamuzu University of Health Sciences Lilongwe Campus in a commercial land use area within the Lilongwe City Centre. Surrounding land-use primarily comprises commercial as well as the Kamuzu Hospital (main hospital in Lilongwe). The site is located at an elevation of approximately 1000 m above mean sea level.

KUHeS Blantyre

The site is located on Kapeni Road, Blantyre District, Malawi. The geographical coordinates are 15°48’24.92” S and 35°0’43.99” E. The site is located within the KUHeS Blantyre campus and surrounding land-use primarily comprises commercial and residential land-uses. The site is located at an elevation of approximately 1050 m above mean sea level.

 LUANAR Bunda Campus

The site is located near the Bunda Village, Lilongwe District, Malawi, approximately 21 km south of the country’s capital city, Lilongwe. The geographical coordinates are 14°10’37.45” S and 33°46’51.41” E. The site is located within the LUANAR Bunda Campus in an agricultural land use area and surrounding land-use primarily comprises agricultural land-uses, with various developments and university facilities in proximity. The site is located at an elevation of approximately 1170 – 1180 m above mean sea level.

The Project is categorized as B and is expected to have potentially limited adverse Environmental and Social (E&S) risks, generally project-specific and can be addressed through the implementation of applicable Performance Standards (PSs), E&S management plans and procedures, WBG General Environmental Health and Safety (EHS) guidelines. During construction, key E&S risks and impacts include PE’s and EPC’s Contractors E&S capacity to manage E&S risks (including contractor oversight and management), air emissions and noise, economic displacement of subsistence agricultural land-users (only for  KUHeS Blantyre Project ), Occupational Health and Safety (OHS), COVID-19 risks (to students , workers, contractors and communities), emergency preparedness, fire life safety,  adherence to the International Building Code (IBC) (including building design, safety and structural stability), Gender Based Violence and Harassment (GBVH), community health and safety risks, including influx of construction workers and potential increased Sexually Transmitted Infectious (STI) diseases including transmission of HIV/AIDS. The Project will develop and implement an STI/HIV Management Plan and is exploring to collaborate with NGOs that are addressing gender and GBVH issues in Malawi and in Project affected communities, to raise awareness on prevention and provide response services. During operations, risks and impacts are expected to include life and fire safety, water consumption, OHS, COVID-19 risks, solid and hazardous waste management, GBVH, and site security.

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

  • 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

There are no impacts related to the following PSs, thus they do not apply to these Projects:  PS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources; PS7 Indigenous Peoples or PS8 Cultural Heritage, however, the standard chance find procedure requirement will apply.

In addition to PSs, the Environmental, Health and Safety (WBG EHS) General Guidelines (2007) will apply to this Project.

For this Project, MIGA’s environmental and social due diligence (ESDD) consisted of reviewing and discussing the following documents:

  • IBIS Environmental and Social Due Diligence (ESDD) and Gender Based Violence and Harassment (GBVH) Risk Assessment for the three Student Accommodation Developments in Malawi (June 2021)
  • Terrastone Ltd Environmental and Social Management Plan (ESMP) for KUHeS Lilongwe (March 2020).
  • OMM Policy on Environmental Health & Safety Risk (September 2018).
  • The three Projects Environmental and Social Impact Assessment (ESIA) (May 2019).
  • Old Mutual Student Accommodation Ltd Residents Handbook (2021).
  • OMM l EPC Contract for KUHeS Lilongwe (April 2020).
  • Terrastone’s Ltd COVID-19 Response Plan (July 2020).
  • Terrastone’s Ltd Occupational Health and Safety Policy (March 2020).
  • Terrastone’s Ltd Emergency Preparedness Plan (July 2020).
  • Terrastone’s Ltd Workers Code of Conduct (March 2020).
  • Terrastone’s Ltd Workplace HIV and AIDS Policy (March 2020).
  • Geotechnical Report for LL KUHeS and LUANAR Project conducted by Geoconsult (April 2019).
  • Terrastone’s Ltd Labor Influx Management Plan (March 2020).
  • Terrastone’s Ltd Grievance Redress Mechanism (July 2020).
  • Terrastone’s Ltd Waste Management Plan (March 2020).

In addition to reviewing the above documents, MIGA hired IBIS Consulting (“IBIS”) in March 2021 to undertake the Environmental and Social Due Diligence (“ESDD”) and Gender Based Violence (GBVH) risk for the Project due to travel bans and restrictions as result of COVID-19. IBIS ESDD comprised of reviewing of PE and EPC’s E&S documentation, management interviews with OMM, site visits (March 22-25) to KUHeS LL, KUHeS Blantyre and LUANAR Bunda Campus including interviews with University/College staff, Terrastone’s Ltd (EPC) staff and identified stakeholders and performed a Reputational Risk Review (RRR).  MIGA also had follow up discussions with OMM on June 9th and the Malawi Public Private Partnership Commission (PPPC) on June 4th via teleconference to discuss the Project E&S and GBVH risks.

MIGA’s due diligence review considered the E&S management planning process and documentation for the Projects and identified gaps (if any) between these and MIGA’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable time, 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 Performance Standards (PSs).

Key environmental and social (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:

OMM has set up OMIG Student Accommodation Ltd as the PE to manage all the E&S risks and impacts during the construction and operation of student accommodation facilities at KUHeS LL, KUHeS Blantyre and LUANAR Bunda Campus. Given the structure and nature of the PE it is understood that the PE will delegate responsibility for E&S activities to the appointed EPC contractors during construction and operational contractors during operations. The PE is newly established business entity and currently does not have a formal ESMS. Therefore, the PE will develop Project specific ESMS to manage E&S risks during construction and operation phase for KUHeS LL, KUHeS Blantyre and LUANAR Bunda Campus per the ESAP. The ESMSs will have to conform with Malawian laws, aligned with MIGA PSs, as well as applicable WBG Environmental Health and Safety (EHS) guidelines. The ESMS will include the following items: (i) E&S Policy; (ii) Health and Safety (H&S) Policy (health safety and environmental monitoring and reporting); (iii) definition of organizational capacity, responsibilities and competence; and (iv) E&S management programs and plans (such as emergency preparedness and response mechanisms, management of hazardous and non-hazardous waste, and stakeholder engagement). The PE will require the EPC Contractors for KUHeS LL, KUHeS Blantyre and LUANAR Bunda Campus to develop and design the Projects specific ESMS and procedures and align it with PE’s ESMS systems and MIGA PS1 per the ESAP.

Due to contextual risks of high prevalence of Gender Based Violence and Harassment (GBVH) in Malawi, MIGA engaged an International Environmental and Social Consultant (IESC) to conduct a GBVH assessment on the potential GBVH risks that may be associated with the three Student accommodation development Projects in Malawi. 

Based on the IESC’s GBVH assessment it was found that the PE has yet to establish a Project GBVH Risk Management Plan for construction and operational phases. Therefore, as per the ESAP, the PE has agreed to develop and implement GBVH Risk Management Plans for all three student accommodation projects, which conform with Malawian laws and are aligned with MIGA’s PSs 1, 2, and 4.

Additionally, the PE is required to develop a strategy for addressing discriminatory practices and managing both internal and external GBVH related concerns as part of the overall ESMS and GBVH Risk Management Plan per ESAP. Therefore, as part of the ESMS, the GBVH Risk Management Plan and as per the  ESAP, the PE will ensure the following are in place:  a) development of a GBVH Policy and dissemination mechanism to all students residing in the hostels and to the staff who will be working in the hostels (especially security personnel);  b) that the  EPC Contractors contract includes GBVH clauses and possible sanctions if the Contractors/suppliers do not adhere to PE’s GBVH policies; c) monitoring the EPC Contactors activities to ensure that GBVH risks are adequately managed, e.g., regular training of workers on GBVH and review of EPC Contractors’s grievance mechanisms, among others. Moreover, during construction and operations, the PE will require the EPC and O&M Contractor to strictly enforce its policies which prohibit all forms of GBVH and possible dismissal of those who allegedly perpetrate GBVH.

The EPC Contractor contract is a key tool for ensuring compliance with the PE’ EHS requirements. The PE has included environmental and OHS related clauses into the contractual agreement between Terrastone Ltd and OMM for the KUHeS LL construction phase. The PE will ensure that similar environmental and OHS clauses have been included within the EPC contracts for KUHeS Blantyre and LUANAR Bunda Campus for the construction and operational phases. The PE will also include E&S risk management clauses requirement in the O&M Contractors contract. These clauses will include guidance on managing Project E&S risks such as on Occupational Health and safety, hazardous materials and hazardous waste management, pollution prevention, working conditions and workers safety, GBVH and community safety to comply with MIGA’s PSs and where applicable to subcontractors and main suppliers, as well as a provision of resources for E&S management, monitoring, and compliance of its subcontractors per the ESAP.

Policy:

During the due diligence, OMM indicated that they have a responsible investment policy/approach encompassing Environmental and Social Governance (ESG) issues in recognition of the need to invest sustainably. In addition, the PE have not established a formal policy for E&S performance. Therefore, the PE will develop EHS Policy as part of the ESMS update to include management of social risks to guide the project to achieve sound environmental and social performance in line with MIGA PS 1 per the ESAP. Per ESDD findings the PE have not established a Sexual Harassment Policy and a result the PE will develop and implement a Sexual Harassment Policy in line with national laws and MIGA PS 1 per the ESAP. The PE will also ensure that the EPC O&M Contractors will adopt and implement the policy, provide a copy to all their staff, and report any related sexual harassment allegations to PE management for action.

 

KUHeS LL

The EPC contractor has not established a formal policy for E&S performance. The PE will require the EPC contractor to develop an EHS Policy as part of the ESMS update to include management of social risks to guide the Project to achieve sound environmental and social performance in line with MIGA PS 1 per the ESAP. The EPC contractor’s EHS policy shall be consistent with PE’s EHS policy.

The EPC Contractor also has in place other policies that include OHS Policy, HIV/AIDS Policy, and Gender Policy. The OHS Policy commits EPC to ensuring a safe working environment and is aligned with the Malawi Occupational Safety, Health and Welfare Act (1997).

KUHeS Blantyre and LUANAR Bunda

The EPC Contractors for KUHeS Blantyre and LUANAR Projects have not been selected yet. Once established, the PE will require the EPC Contractors to develop an EHS Policy as part of the ESMS to guide the project to achieve sound environmental and social performance in line with MIGA PS 1 per the ESAP. The EPC contractor EHS policy shall be consistent with PE’ s EHS policy.

Identification of Risks and Impacts:

OMM has developed a Project Risk Assessment (PRA) tool that applies for the three development.  The PRA tool includes an assessment of the following risks: technical (engineering); logistical. financial; management; environment; and socio-political. PRA identified Environment and socio-political high-risk items that included the unexpected geotechnical/ground water issues and water shortages (detailed in PS3 underwater management section).  All other environmental and socio-political risks were rated as “medium” including soil conditions, severe weather events etc. No OHS or stakeholder related risks have been identified as part of the PRA Tool. OMM contracted Environment and Natural Resources Management Consultants to conduct the ESIA’s for each development and the ESIA for each development has been completed.  

Per the ESDD findings, OMM is responsible for obtaining the required environmental and operational permits, certificates and other authorizations required by national regulatory requirements based on approved ESIA. OMM indicated that the ESIA certificate has not yet been received for each development as the certificates are not yet signed. The PE will be required to obtain the ESIA certificate and operational permits for all the three developments and establish measures to implement and comply with the permit’s requirements in line with the Malawi national laws and MIGA’s E&S requirements per the ESAP.

KUHeS LL

For the KUHeS LL, the Project ESIA was completed in May 2019 and approval from Department of Environmental Affairs (DEA) was received in September 2019. The ESIA detailed the potential Projects E&S risks and impacts and includes an Environmental and Social Management Plan (ESMP) and Environmental and Social Monitoring Plan that is required to be implemented as part of the ESIA approval. Based on interactions with OMM staff and EPC Contractor, there are two sets of ESMPs: one that was developed as part of the ESIA and the other that was developed by the EPC Contractor for the Project.  The PE will ensure that these two sets of ESMPs are consolidated into one Project ESMP and implemented effectively.

KUHeS Blantyre and LUANAR Bunda

The ESIAs for KUHeS Blanyre and LUANAR Bunda were developed and completed in May 2019 and approved by DEA in September 2019.

As part of MIGA’s requirements the PE will ensure that environmental, social and Health and Safety risks and impacts identified in the ESIA and in the permit requirements are appropriately addressed in the PE’s ESMS. As part of addressing the permit requirements, the ESMS Management Plan (ESMS MP) will be further developed into a clear plan of action for the identified risks/impacts with assigned responsibilities and deadlines. This will also be implemented by the EPC Contractor and sub-contractors.

Management Programs:

OMM will rely on EPC and O&M Contractors to manage the E&S risks for the three-student accommodation facilities development during the construction and operational phases. Therefore, the PE will require the EPC and O&M Contractors to develop plans, process, and procedures for the Projects per the ESAP. The Environmental Social Management Plan (ESMP) will serve as a framework and will be part of the ESMS. The ESMP will include air quality, noise, water resources, solid waste, and health and safety amongst other topics. The management plans will also include details on monitoring actions, and the frequency of monitoring, along with the performance indicators and the responsible entity such as the EPC Contractors.  

KUHeS LL

For the KUHeS LL Project, based on discussions with Project management and team on site and a review of EHS documentations, various management plans have been developed by the EPC Contractor (such as Workers Code of Conduct, Emergency Response Plan, Project site specific ESMP, COVID 19 Management Plan). IBIS reviewed the ESMPS and identified gaps. Therefore, PE will require the EPC Contractor to update the Project ESMPs for construction and the O&M Contractor will develop ESMPs for operation and will include monitoring and reporting requirements in line with MIGA’s PSs and WBG EHS guidelines per the ESAP. Moreover, the PE will require that the EPC contractors train and ensure all workers and site management are aware of the Project management plans/procedures and their operational requirements per the ESAP.

KUHeS Blanyre and LUANAR Bunda. 

The EPC contractors for KUHeS Blantyre and LUANAR Projects have not been selected yet. Once established, PE will require the EPC and O&M Contractors to develop Project specific Project ESMPs for construction and operation phases to include monitoring and reporting requirements in line with MIGA’s PSs and WBG EHS guidelines per the ESAP. The ESMP will serve as a framework and will be part of the ESMS system. The management plans will include air quality, noise, soil, water resources, solid waste, and health and safety amongst other topics. The management plans will include details on monitoring actions, and the frequency of monitoring, along with the performance indicators and the responsible entity such as the EPC Contractor. In addition, it is imperative that, prior to the commencement of the construction of the LUANAR and KUHeS Blantyre developments, the ESIA ESMP should be reviewed and integrated into EPC Contractor plans to ensure it is implemented on site and covers all regulatory requirements and identified E&S risks on site.

The PE will ensure that workers understand the E&S requirements, measures, and protocols stipulated within the ESMPs through induction training and a workers’ manual in English. The PE will also ensure that all E&S personnel are competent to carry out their duties through the hiring and selection process, or where necessary, arrange for suitable training to be undertaken to achieve this level of competency before construction starts and during the operations.

Organizational Capacity and competency:

The PE does not have a dedicated E&S team for the Project.  The E&S related activities are managed by Project Managers within the OMM investment team. Therefore, the PE will be required to appoint a qualified EHS Manager to manage the three projects and any additional EHS officers if needed in line with the requirements of MIGA’s PS1 during the Projects construction and operations phases per the ESAP. The EPC Contract provides for competent persons to be employed at each Project development. The EPC contract reviewed included clauses that require the EPC contractors to hire competent qualified, and experienced personnel in their respective trades or occupations for each Project development. Additionally, the EPC Contractor will ensure that all the contractors and sub-contractors will meet and adequately implement E&S standards per contractual agreements.

KUHeS LL

The EPC contractor has appointed a qualified, full time H&S Officer for the KUHeS LL Project. The H&S Officer is responsible to manage the project related E&S risks.  During construction and operations, the EPC and O&M Contractors will be responsible for managing E&S risks and for implementation of the ESMS to improve E&S performance.

KUHeS Blantyre and LUANAR Bunda

The EPC Contractors for KUHeS Blantyre and LUANAR Bunda Campus have yet to be appointed and the E&S team to manage the Projects have not been hired. Once the EPC Contractors are appointed, The PE will require the EPC Contractor to appoint a qualified EHS Manager and additional EHS officers for both Projects to manage E&S risks and impacts in line with the requirements of MIGA’s PS1 during the Projects construction per the ESAP. During construction and Operations, the EPC and O&M Contractors will be responsible for managing E&S risks and for implementation of the ESMS to improve E&S performance.

Emergency Preparedness and Response:

Based on interactions with University administrators, the threat of fire at existing student accommodation is an ongoing risk. Although against tenancy agreements, students often cook in their bedrooms using high electricity usage equipment increasing the risk of fire. In terms of accommodation facilities design standards, OMM shall ensure that each of the accommodation facilities will be designed to conform with the Malawi Bureau of Standards specifications regarding fire safety (i.e., MS 658-1/2:2004 The classification, use and control of fire-fighting equipment –code of practice (fire extinguishers and fire hose reels). The PE will ensure that all development designs conform with relevant Malawi Bureau of Standards specifications and IFC/ US National Fire Protection Association (NFPA 101) guidelines per the ESAP. OMM confirmed that the fire equipment for the three Projects will be imported from South Africa and will be South African Bureau of Standards approved.

KUHeS LL

During ESDD, IBIS reviewed the building designs for the KUHeS LL  and the design includes provision for: i) 58m3emergency water tank and booster pumps; ii) Fire Hose Reel with 40m long reinforced rubber hose coiled on a volving drum fitted with a shut-off nozzle (Two on first floor and two on second floor);  iii) 9.0kg Dry Chemical Powder (Mono Ammonium Phosphate), Fire Extinguisher and 4.5kg Carbon Dioxide Fire Extinguisher (Two on first floor and four on second floor); iv) Fire alarm system including five fire alarm control panels, 34 multi sensor detectors, and 16 fire alarm bells; and  V) emergency exits including signage.

The EPC Contractor for KUHeS LL has developed an Emergency Preparedness and Response Plan (EPRP) for the Project. The Plan includes roles and responsibilities and actions to be undertaken in as part of the ESMS, the PE will require the EPC Contractor to update the EPRP to include training of staff, frequency of conducting emergency drills and ensuring there is adequate firefighting equipment during the Project construction and the PE will require the O&M contractor to develop Project specific EPRP for the operations phases, per the ESAP.

During ESDD, IBIS E&S team observed one fire extinguisher on Project sites. As a result, the PE will require the EPC Contractors to equip all sites with firefighting equipment including adequate fire extinguishers on sites that are regularly inspected and well maintained per the ESAP. Additionally, PE will ensure that the EPC Contractor will train all staff on how to operate the fire extinguishers in case of fire.

KUHeS Blanyre and LUANAR Bunda

Preliminary designs for the KUHeS Blantyre have been made available for review and firefighting measures include fire hydrants, fire hose reels, fire alarm bells, and emergency exits. LUANAR designs have not been made available for review. However, OMM has not confirmed if fire designs are aligned with IFC / US National Fire Protection Association (NFPA 101) guidelines. The PE will ensure that all students accommodation facilities designs conform with relevant Malawi Bureau of Standards specifications and IFC/ US National Fire Protection Association (NFPA 101) guidelines per the ESAP.

The EPRP for the KUHeS Blanyre and LUANAR Bunda Projects have not been developed yet. As part of the ESMS, the PE will require the EPC and O&M Contractors to develop Project specific EPRP to address the facility wide risks including fire and other external emergencies during the Projects construction and operations phases,per the ESAP. Moreover, the PE will require the EPC and O&M Contractors to equip all sites with firefighting equipment including adequate fire extinguishers on sites that are regularly inspected and well maintained per the ESAP. Additionally, PE will ensure that the EPC and O&M Contractors will train all staff, in particular the security guards on how to operate the fire extinguishers in case of fire.

The Projects EPRP will define the steps needed to collaborate with nearby communities, local government agencies, and relevant third parties to facilitate response to emergency situations to prevent and mitigate harm to people and/or the environment. In addition, the EPRP will detail emergency response procedures in the event of fire/explosion, severe traffic accidents, natural disasters, earthquakes, hazardous material spills, floods, and violence and/or social unrest. The plan will include broad response principles; a description of roles and responsibilities and the chain of command; site-specific management and response procedures under different emergency situations and awareness training. During construction and operations, basic first aid training and kits will be provided on site.

Monitoring and Review:

KUHeS LL

As Part of the ESIA, an Environmental and Social Monitoring Plan was developed. The monitoring plan requires the Project to monitor the implementation of mitigation measures set in the ESIA (air and noise pollution, soil erosion and contamination, employment statistics, waste management, accidents, etc.). The Project EPC Contract includes a provision for regular progress reporting. The EPC Contractor is required to submit monthly progress to the PE including EHS related information. During the ESDD, IBIS reviewed the ten-construction progress reports the EPC Contractor submitted to the PE. These reports did not include detail on incidents/accidents, legal requirements, and environmental management information. Therefore, as part of the ESMS, the PE will require the EPC and O&M Contractors to develops an EHS monitoring procedures and ensure that all the EHS monitoring reports detailed and includes EHS risks, OHS statistics, and mitigation measures during the construction and operation phase per the ESAP. To strengthen the GBVH monitoring and reporting, the PE will hire an independent party GBVH monitoring consultant who will conduct Project GBVH risks assessments, monitoring and reporting during the Project construction and operation per the ESAP.

During the ESDD, the EPC Contractor confirmed to IBIS that they undertake monthly H&S audits and issue monthly H&S reports to OMM.  In addition, OMM reported that they undertook EHS inspections of KUHeS LL in November 2020.  Per IBIS review, there is need for OMM to conduct periodic EHS inspections and assessments.   The inspection shall include working conditions (grievance mechanism, ablutions (toilets/washrooms, etc.), waste management, material storage, vehicles, plant, and equipment (servicing, etc.), fire and safety (equipment, signage, procedures, etc.), PPEs, working at heights, electricity, hazardous substances. The PE will ensure that the EPC contractor will conduct monthly construction EHS inspections and assessment and shall include all contractual requirement per the ESAP.  For the Operations phase, the PE will require the O&M contractor to conduct Project monitoring and EHS inspections per the ESAP

KUHeS Blantyre and LUANAR Bunda 

The EPC Contractors for KUHeS Blantyre and LUANAR Bunda Projects have not been selected and the ESMS has not been established. As such, a formal process to monitor and review environmental and social performance is not in place. The PE will ensure that the EPC and O&M Contractors will undertake regular on-site EHS monitoring and implement the key EHS plans and programs during the Project construction and operation phases in line with MIGA PS1 requirements. In addition, the EPC and O&M Contractors will internally monitor implementation of key EHS plans and procedures during construction and operations. Additionally, the EPC Contractor will monitor key environmental aspects that include solid and hazardous waste materials management, OHS, life and fire safety equipment maintenance, energy use, and water usage. The EPC and O&M Contractors shall systematically report all the findings to PE’s Management in a timely manner and will ensure that all identified corrective actions are addressed and well documented.

As a condition of MIGA’s contract of guarantee, the PE will be required to provide MIGA with an annual E&S performance report.

Stakeholder Engagement:

As part of the ESIA process for the three Students accommodations, the consultants undertook a public consultation to ensure that all interested and affected stakeholders are involved in the ESIA process and their views and concerns incorporated the ESIA report. The consultation meetings provided an opportunity for stakeholders, particularly community members around the project area to express their views on the project as well as to raise any issues of concern relating to the Project. The consultant conducted Public meetings (where general information about the project was delivered, questions and Answers conducted) and focus group discussions with only those who will be potentially affected by the project were conducted. Overall, the stakeholders engaged were very supportive of the Projects it will assist to provide the much-needed additional bed spaces for the students at KUHeS LL, KUHeS Blantyre and LUANAR Bunda Campus.

OMM will have the overall responsibility for the development and operations of the student’s accommodation facilities for KUHeS LL, KUHeS Blanyre and LUANAR Bunda campus. The PE is responsible for active engagement with external stakeholders as is required by national regulations or permit conditions. The PE will engage with stakeholders within area of influence and related to specific activities they undertake, including the construction and operation of the accommodation facilities.  The PE will be required to develop a Stakeholder Engagement Plan (SEP) which covers its construction and operations per the ESAP. The EPC’s contractors for KUHeS LL, KUHeS Blanyre and LUANAR Bunda will adopt PE’s SEP and apply it to the Project and develop an External communication and Grievance Mechanisms to address stakeholders concerns and issues per the ESAP detailed below.

External communication and Grievance Mechanisms:

The PE currently does not have a standard practice and a formal External communication and Grievance Mechanism (GM)in place for the Projects. As such, there is no formal external grievance mechanism available to stakeholders to use in the event of a grievance. At KUHeS LL, The EPC staff reported that that the only grievances from external stakeholders reported to them involve dust nuisance at the entrance to the development site. There have been complaints from food vendors and taxi drivers of dust causing a nuisance to their business operations. These grievances were reportedly informally resolved by the Site Manager; however, no grievance register is kept. Therefore, the PE, EPC and O&M Contractor will develop a Project specific Community Grievance and External Communication   Mechanism that includes GBVH reporting mechanisms, in line with the requirements of MIGA PS 1 for the construction and operation phases per the ESAP. The mechanisms shall include methods to receive, register, screen and assess, track, respond to, and act upon external inquiries and complaints from the public during construction and operations. The grievance mechanism shall ensure that grievances from affected communities and external communications from other stakeholders are responded to and managed appropriately.

As mentioned previously, MIGA engaged an IESC to conduct a GBVH assessment for the three student accommodation facilities. As GBVH is a contextual risk in Malawi, the GBVH risk assessment established that the KUHeS LL, KUHeS Blantyre and LUANAR Bunda should strengthen their grievance mechanisms and do to better prevent and respond to potential GBVH cases. Per the ESAP, the PE has agreed to have an integrated GM for the 3 universities, and in addition, for the PE and EPC Contractors to ensure that GBVH cases are reported, received, screened, assessed, tracked, and responded to in a manner consistent with the PSs.

The PE with the support of OMM and the Universities’ management will develop an effective external GM that includes GBVH reporting mechanisms, that is enforced, and implemented effectively throughout the Project lifecycle in line with the requirements of MIGA’s PS1 for the construction and operations phases per the ESAP. Additionally, the PE with the support of OMM, the College/University management, the Government of Malawi through the Malawi Human Rights Commission will identify and train university staff who will be responsible for investigating cases of GBVH that may be reported per the ESAP.

 

PS2: Labor and Working Conditions

The PE will have 15 employees who will be responsible to manage all the three Projects during construction and 400 employees during Operations of which 160 are women and 60% are men. During the operations, some of the services such as cleaning, ground maintenance, other maintenance activities may be outsourced hence some people will be indirectly employed.

KUHeS LL

The EPC Contractor has a total of 160 workers of which 15 are women and 145 are men. The workforce comprises of engineers, technical specialists, and various management functions.

KUHeS Blanyre and LUANAR Bunda 

The EPC Contractors for KUHeS Blanyre and LUANAR Bunda have not been selected yet. Once selected, the EPC Contractor for KUHeS Blanyre will have a total of 350employees of which 50 are women and 300 are men.   The EPC Contractor for LUANAR Bunda will have a total of 2200 employees of which 400 are women and 1800 are men. 

Working Conditions and Management of Worker Relationship:

The PE have not established HR Policies, requirements, or guidance which are applicable to three Projects developments (including collective bargaining, arrangements, worker grievance mechanism, child and forced labor policy, OHS training etc.). However, certain aspects related to labor and working conditions are included in the EPC Contract (working hours, labor laws, protection of personnel, rates and wages etc.) and these aspects are described in the relevant sections below. The PE will develop Project specific Human Resources (HR) policy and procedures and the PE will require the EPC and O&M Contractors to develop their HR policy and procedures and ensure that they are in line with MIGA’s PS2 and Malawian laws for the Project construction and operation phases per the ESAP. The PE will also engage a technical expert to support the PE’s Human Resources Manager and team to: (i) strengthen gender-related policies, (ii) develop and implement new GBVH policies; and (iii) develop a communication and training plan for sensitization of these policies across the staff, students and the entire workforce working in the three accommodation facilities during construction and operation phases. per the ESAP.

Per the ESDD findings, the HR Policies and Procedures for KUHeS LL, KUHeS Blantyre and LUANAR Bunda have not been established. As indicated in the ESAP, the PE will require the EPC and O&M Contractors to develop project specific HR policy and procedures for the construction and operation phases per the ESAP. The three Projects HR Policies will be required to also cover rules of interaction with students and communities per the ESAPAdditionally, the PE will develop Workers Code of Conduct (CoC) procedure for the Project construction and operation phase. The CoC will reflect respect for local beliefs and customs and with special attention for risks related to sexual harassment, sexual exploitation, and abuse and GBVH and ensure all existing Project personnel are trained on and have signed all gender-related policies, including awareness of the Code of Conduct, sexual harassment policy and the grievance redress mechanism for reporting allegations of sexual harassment in workplaces per the ESAP. The EPC and O&M contractors will adopt the PE’s CoC procedure and implement it. As part of communication and creating awareness on GBVH, the three projects will design and print posters of simplified versions of the workers Code of Conduct in (English and Chichewa) in the Project sites during construction and Students Code of Conduct in (English and Chichewa) in the student’s accommodation facilities once operational and ensure these are visibly displayed in multiple locations per the ESAP. A training plan on the HR policy and procedures are to be included in the EPC Contractor ’s procedures and will be provided to all workers.

The PE will ensure that the EPC and O&M Contractors’ HR Policies and procedures are:  i) aligned with the PE’s HR policies and procedures and meets MIGA PS 2 requirements; and ii) include in employee contracts terms of employment, such as wages and benefits, hours of work, overtime arrangements and overtime compensation, annual and sick leave, maternity and paternity leave, vacation, health insurance and end of service benefits per Malawian national labor regulations. The HR policy will be provided as a hard copy to new hires together with an employment contract which outlines the terms and conditions of their employment. Working conditions (including health, safety, and security), employee termination, prohibition of forced or child labor, disciplinary actions, non-discrimination and equal opportunity, workers’ rights and obligations, employer’s rights and obligations will be referenced. In addition, the PE will include in their HR Policies language on HIV/AIDS, gender-based violence, sexual harassment as part of the code of conduct of employees.

On Grievance Mechanism, KUHeS LL have developed a formal Worker Grievance Redress Mechanism (GRM) and KUHeS Blantyre and LUANAR Bunda have not yet established a GRM due to pending EPC Contractors appointments.  KUHeS LL EPC Contractor have put in place a Grievance Redress Committee (GRC) who are key players in handling Project related grievances and complaints.  The GRM outlines a process for documenting and addressing project grievances and complaints that may be raised by affected worker. However, in reviewing the GRM, gaps were identified, and the PE will ensure GRM establishes timeframes for resolving the grievances, GRC members trained on GBVH and GRM implemented effectively on the site.

Therefore, the PE will require the EPC Contractor for KUHeS LL to update the GRM and EPC Contractors for KUHeS Blantyre and LUANAR Bunda to develop a GRM and ensure it adequately capture how GBVH cases are received, screened, tracked, and responded to in line with MIGA PS2 requirements during construction and operation phase per the ESAP. The PE will ensure that the Project GRM is made available to all workers, implemented effectively, and all staff trained on it. The EPC’s GRM will clearly define tracking of grievances via grievance register, timelines for resolving grievances, and personnel should be adequately trained on how to handle GBVH cases. The grievance mechanism will also be accessible to contractors and subcontractors performing work in core business processes of the Project. Additionally, the PE will develop and implement the grievance redress mechanism so all gender-related allegations, including sexual harassment, are referred to and investigated by an internal sexual harassment and abuse committee, comprising the HR Manager/representative, the Student Advisor and at least one workers’ representative in line with the requirements of MIGA’s PS1 for the Projects construction and operations phases per the ESAP. The PE will commit that all complaints of GBVH will be seriously investigated and disciplinary action will be taken, per the ESAP above. GBVH grievances could still be recorded in the Company’s internal grievance register, but all details that could identify affected persons (e.g., names) should be omitted. The sexual harassment committee will be responsible for managing these grievances, including conducting investigations and recommending disciplinary actions, if required.

For the operational phase, the PE will require the O&M Contractor to develop a GRM and ensure it adequately capture how GBVH cases are received, screened, tracked, and responded to in line with MIGA PS2 requirements per the ESAP.

Workers’ Organization

In line with PS2, PE and EPC Contractor’s HR policies will not impede workers from freedom of association and collective bargaining. Workers will be able to organize among themselves and will not be intimidated, punished, or discriminated against for doing so.

Protecting the Work Force:

The current Project EPC Contract reviewed does not make provision for any specific commitments around non-discrimination and or equal opportunity. However, the PE and EPC Contractor for KUHeS LL are committed to avoiding all forms of discrimination against their employees, based on age, gender, sexual orientation, health, race, nationality, political opinions, or religious beliefs.  

For KUHeS Blanyre and LUANAR Bunda Projects, the PE will ensure that as part of contractual agreements, the EPC’s contracts will have clear provisions and requirements for non-discrimination and or equal opportunity. The requirements of non-discrimination and equal opportunities will be extended to contractors and subcontractors as part of contractual agreements. The PE and EPC Contractor ’s HR policy will exclude the use of any form of forced or compulsory labor and ensure to include clauses that prohibit sexual harassment and gender-based violence in accordance with Malawian national labor laws and MIGA’s PS2 requirements as detailed in the ESAP above under the working conditions and management of worker relationship.

Child and Forced Labor:

On child and forced labor, the EPC Contractor for KUHeS LL has a child protection policy in place. The policy applies to all company workers who must comply with its requirements and understand the sanctions that may be applied for breaches of the policy. The policy sets the minimum age of employment at of 18 years of age. The EPC Contractor confirmed that, prior to employment, workers are required to submit an ID to prove they are 18 years or older and copies of worker ID documents are kept in file.

As part of contractual agreements, the PE will ensure that the EPC Contractors selected for KUHeS Blantyre and LUANAR Bunda Projects will not employ forced labor or children and be committed to enforcing this requirement per the Malawian national labor laws and MIGA’s PS2 requirements. The PE will ensure that the EPC Contractors HR Policies and Procedures will be required to screen all employees to ensure they meet the legitimate age to work. The EPC Contractors will conduct further monitoring and verification of workers identification card and birth certificates to ensure all workers are of legal age. The EPC Contractors will have strong oversight over its local subcontractors to ensure this is strictly enforced.

Occupational Health and Safety:

The Projects key OHS risks for the Projects include slips and falls, working at heights, potential hazards from on-site moving machinery, heavy load lifting, exposure to electric shocks and burns, safety issues.

The KUHeS LL EPC Contractor has developed an OHS Policy and within this policy it includes basic health and safety rules on regulatory compliance, PPE, fall protection requirements, worker code of conduct, excavations, and warning signs. Additionally, per the ESDD findings, the EPC Contractor undertakes weekly toolbox talks and task level risks assessments (Job Hazard Analysis (JHA). JHA’s are typically undertaken for working at heights, use of portable electrical equipment, and housekeeping activities. The JHA presents likely risks and preventative measures. The EPC Contractor also undertakes monthly H&S audits and issue monthly H&S reports to PE. The monthly report includes a summary of statistics (first aid cases, induction completed, construction vehicle inspections, etc.). In addition, accident reporting occurs and was observed during the site visit, however there is no accident register/logs available.  There were no major incidents reported, except one lost time injury that occurred in December 2020 where an EPC Contractor worker cut his finger during offloading.

Per the ESDD findings, the EPC Contractor for KUHeS LL has not developed the OHS management procedures and since the PE has not yet selected the EPC contractors for KUHeS Blantyre and LUANAR Bunda, the OHS management procedures have not been established. Therefore, the PE will require that EPC and O&M Contractors for the three developments to develop and implement Project-specific OHS procedures during construction and operations phases per the ESAP. These procedures will cover the following issues: i) hazard identification and assessment; ii) construction site safety, iii) specific procedures for hazardous works, worker’s safety and training iv) use of personal protective equipment; v) implement a worker’s health program to screen the health of workers and measures to manage diseases (HIV AIDs, Malaria , Cholera  and COVID-19); vi) site supervision and audit procedures; vii) incident investigations and reporting system and, viii) intervention measures (medical surveillance programs and first aid etc.). The procedures will be designed to be specific to industry-specific hazards and the respective site. As part of the OHS Procedures for both the construction and operation phases, the OHS procedures will be aligned with the EPRP, which will include fire risk assessment and control systems, fire alarm systems and drills, and emergency preparedness and planning.

The Coronavirus Disease 2019 (COVID-19) has potential risks and impacts for the three Projects.  The EPC Contractor for KUHeS LL has developed and implemented COVID –19 Response Plan for the site. The plan includes provision for training and awareness, mitigation measures, during construction activities, actions in the event of a positive case, and hygiene precautions. The Project confirmed that they had zero positive COVID-19 cases. During the site visit many workers were observed wearing face masks and hand washing stations were available.

To reduce the potential impact of COVID-19 on students, workers, customers and communities, the PE will require the EPC Contractors for KUHeS Blantyre and LUANAR Bunda to develop COVID -19 policies and procedures to ensure that the risks associated with COVID-19 are adequately addressed during construction per the ESAP. During the operation phase, the PE will require the O&M Contractor develop COVID -19 policies and procedures to ensure COVID-19 risks are adequately addressed per the ESAP.

Workers Engaged by Third Parties:

KUHeS LL

During the ESDD, the EPC Contractor confirmed to IBIS that there are no workers engaged by third parties.

KUHeS Blanyre and LUANAR Bunda

The PE will take reasonable efforts to ascertain that third parties that are hiring employees are reputable and legitimate enterprises and have an appropriate E&S management system that allows them to operate in a manner consistent with the requirements of MIGA’s PS. If not available, the third parties will adopt the EPC Contractors E&S management. The PE will require the EPC Contractors to establish policies and procedures for managing and monitoring the E&S performance of such third-party employees per MIGA’s PSs, as well as incorporating these requirements in contractual agreements with third-party employees, as identified as per the ESAP.

Supply Chain:

The PE will procure all the building materials and equipment from Malawi and South Africa. For all the 3 Projects, OMM plans to procure 30 % of locally available materials and 70% will be imported.  Locally sourcing may be done for smaller items depending on in-country availability. The other items that will not be available locally will be procured from South Africa. The EPC Contractors plan to import Lifts from China.

The PE will ensure that the EPC Contractors conduct a supply chain assessment of the nominated primary suppliers to identify key E&S risks/impacts and ensure the supplier complies with the principles of MIGA’s PSs to appropriately manage E&S risks. Particular consideration in the assessment should be given to confirming the adequacy of the manufacturing facility’s management of hazardous material storage, waste storage/disposal, compliance with working conditions and occupational and community health and safety requirements to demonstrate that the project’s suppliers are complying with MIGA’s PSs and EHS Guidelines. The PE and EPC Contractor will include a clause in main supplier contracts regarding applicable PS2 requirements on child or forced labor and OHS.

 

PS3: Resource Efficiency and Pollution Prevention

Resource Efficiency:

The design for all three developments has considered Excellence in Design for Greater Efficiencies (EDGE) guidelines and includes solar water heaters and low flow water taps etc. OMM have submitted the buildings plans for Green Building approval and have received preliminary approval. No timeline was available for final approval of the designs. The design for all three developments has considered EDGE including water saving measures.

KUHeS LL

The Project is connected to the municipal supply and received water directly from the Lilongwe Water Board. Currently, the site does not have intensive water uses, the project uses water for construction activities (including concrete production and equipment cleaning), and domestic usage.

During operations water will be drawn from the Lilongwe Water Board (municipal connection) and water use will be mainly for domestic usage. The operations phase will consume more water predominantly due to usage at the student’s accommodation facilities. However, the impact of water use will not impact other users since the water is supplied to Project site from public water sources. The estimated water consumption during the construction and operations phase is approximately 5,900 m3/year and 130 m3/year respectively.

The EPC Contractor receives a monthly water bill for water use, however there is no active tracking of water use and therefore monthly consumption is not known. Water use will be a key performance indicator (KPI) and the EPC Contractor will be required to keep track of water usage and report to the PE. Moreover, the PE will require the EPC Contractor to develop a water management plan which details on water sources options available, water use, water quality, treatment requirements, water monitoring and estimated consumption during the construction and operation phase of the project and the water minimization programs to be adopted and KPIs to be used per the ESAP.

KUHeS Blantyre

Per the ESDD findings, the water required for the Project development will be sourced directly from the stream on site or from the Naperi River. Currently there is no water abstraction permit/license in place. For construction phase, the water usage amounts required have not been confirmed and based on available documentation, no water resource study has taken place to assess suitable water resources available and drawing surface resources does not impact any surrounding users or ecological flow. Therefore, the PE will be required to obtain water abstraction permits/license from regulatory authority and conduct a water risks assessment and consider the water resource/groundwater availability, impacts on surrounding users and ecological flow in line with MIGA PS3 per the ESAP.  

During operations, water will be sourced from the Blantyre Water Board (municipal connection). In addition, water tanks will be used to ensure uninterrupted water supply and water saving measures (such as low flow taps, etc.)  have been incorporated into the development design. Given that a water management plan has not been established, the PE will require the EPC and O&M Contractors to develop a Water Management Plan (WMP) which details on water sources options available, water use, treatment and storage requirements and estimated consumption during the construction and operation phase of the project and the water minimization programs to be adopted and KPIs to be used per the ESAPThe estimated water consumption during the construction and operations phase is expected to be approximately 17,900 m3/year and 403 m3/year respectively.

LUANAR Bunda Campus

The campus water is supplied by the Central Region Water Board, which supplies 450 m3 per day. However, due to erratic water supply and insufficient volumes, the campus also relies on 3 boreholes that are within the campus.  Water for construction purposes will be sourced from the Gomani Dam, located 4 km from the campus. Per the ESDD findings, there is lack of clarity if the project will require to obtain a water abstraction license to use the water from the Gomani dam.  Therefore, the PE will be required to obtain water abstraction permits/license to use the water from Gomani Dam from the regulatory authority and conduct a water risks assessment to include the impact of extracting the water from the dam, water availability and seasonality, water quality and impacts on surrounding dam users in line with MIGA PS3 per the ESAP. Additionally, given that a water management plan has not been established, the PE will require the EPC and O&M Contractors to develop a Water Management Plan (WMP) which details on water sources options available, water use, treatment and storage requirements and estimated consumption during the construction and operation phase of the project and the water minimization programs to be adopted and KPIs to be used per the ESAP.

During operations phase, water will be sourced via combination of Central Region Water Board (municipal connection) and the existing 3 boreholes within the campus. However, additional 3 boreholes might be required to meet the water requirement demand. Given the size of LUANAR development (approx. 4000 beds) it is possible that the development will create pressure on existing water resources. However, it must be noted that water saving measures (such as low flow taps, etc.) have been incorporated into the development design.  The estimated water consumption during the construction and operations phase is expected to be approximately 155,000 m3/year and 2,900 m3/year respectively.

Pollution Prevention:

KUHeS LL

Air emissions arise primarily from combustion engines (mobile machinery) and dust. Dust from movement of construction vehicles at the entrance of the site has been identified as issue. Dust emissions occur during high traffic periods (delivery of equipment to site) and is a regular (daily/weekly) issue. Dust emissions have been reported as nuisance by stakeholders and dust suppression (water spraying at entrance) is periodically undertaken.

Surface water runoff from the construction site, including the concrete batching plant, either discharges into an earth pit on-site or runs off in northerly direction to adjacent properties and soaks to ground.

On solid and hazardous waste management, during construction, the waste on site includes building rubble, steel, wood, plastics, cardboard, etc. There is no waste management plan for the site and no segregation or recycling of wastes is currently undertaken on-site. Waste is collected in one location on site and then removed by EPC Contractor to the Lilongwe Waste Dump Site.  The only hazardous waste on site is waste oils from mobile machinery. Waste oils are reportedly removed by a licensed contractor for recycling.  The PE will ensure that the EPC Contractor hires an accredited services provider to dispose hazardous waste in designated landfill sites. Per the Projects nature of construction and operations, the overall volume of both solid and hazardous waste generated during construction is expected to be low. The PE will require the EPC and O&M Contractors to develop waste management procedures in line with MIGA’s PSs per the ESAP. The plan shall promote avoiding generation of hazardous and non-hazardous waste materials and where waste generation cannot be avoided reduce the generation of waste.

During the operational phase, solid and hazardous waste management will be managed by the O&M Contractor. The O&M contractors will be required to develop a waste management plan for the operation phase per the ESAP.  The accommodation facility will be connected to the wastewater treatment plant at the Kamuzu Hospital.

KUHeS Blantyre and LUANAR Bunda Campus

For the construction phase, KUHeS Blantyre and LUANAR Bunda Campus pollution will be because of air emissions arising primarily from combustion engines (mobile machinery) and dust. Dust from movement of construction vehicles at the entrance of the site. KUHeS Blantyre is located on flat-lying ground at between the Naperi River and an ephemeral tributary of the Naperi River, the confluence of which marks the western-most corner of the site.  Given the development’s proximity to the river there is an increased risk that the development will directly impact the river (increased soil erosion, bank destabilization, increased sediment release/pollution etc.). As part of pollution management and prevention, the PE will ensure that the EPC Contractor for KUHeS LL and KUHeS Blantyre will develop environmental management plans and/or procedures per the ESMS, as detailed under the management programs section in PS1. The plans will be implemented at each site to manage pollution related aspects in line with MIGA’s PS3. The plans and procedures will include management of waste, hazardous materials, oil spillage, air emissions and occupational noise, etc.

On solid and hazardous waste management, during construction, the waste on site includes building rubble, steel, wood, plastics, cardboard, etc. There is no waste management plan for the site and no segregation or recycling of wastes is currently undertaken on-site.  The PE will ensure that the EPC Contractor hires an accredited services provider to dispose hazardous waste in designated landfill sites. Per the Projects nature of construction and operations, the overall volume of both solid and hazardous waste generated during construction is expected to be low. The PE will require the EPC and O&M Contractors to develop waste management procedures in line with MIGA’s PS 3 per the ESAP. The plan shall promote avoiding generation of hazardous and non-hazardous waste materials and where waste generation cannot be avoided reduce the generation of waste

For KUHeS Blantyre, the PE anticipate using the existing wastewater treatment facilities in Blantyre during operations. Therefore, PE should obtain a confirmation letter from the Blantyre City Water Board confirming there is available wastewater treatment capacity per the ESAP.

For wastewater treatment, LUANAR Bunda Campus currently has a total of 6 wastewater stabilization ponds and only two (2) are functional.  Therefore, the Project wastewater from the accommodation facilities will be treated via the existing two wastewater stabilization ponds and as part of the project, the other four (4) will be to be rehabilitated to accommodate and manage the increased capacity from the new buildings during operations.

It is expected that the businesses will achieve a major overall reduction in Greenhouse Gas emissions (GHGs) given that the design for all three developments has considered Excellence in Design for Greater Efficiencies (EDGE) guidelines. The Greenhouse gas (GHG) emissions from the Projects during the construction and operations phase are expected to be predominantly associated with the use EPC Contractor trucks, on-site equipment, and machinery and fuel on generators. The total GHG emissions are approximately 3,996t CO2/year and significantly less than 25,000 tons CO2e. The PE will be required to report to MIGA if the total GHG emissions exceed 25,000 tons C02e.

The three Projects will be connected to the national grid and therefore draws electricity directly from Electricity Supply Corporation of Malawi (ESCOM) for electricity needs.  The Project energy consumption is expected as follows; approximately 177.94 MWh per year in KUHeS LL, 753.92 MWh per year in KUHeS Blantyre and 6,276.82 MWh per year LUANAR Bunda Campus.

 

PS4: Community Health, Safety and Security

Community Health and Safety

During construction, community health and safety issues include dust, noise, accidents/incidents, and increased construction trucks in the area. During operations, potential risks include fire and safety issues, oil spillages, and electrical faults. The project will have in place strict life and fire safety measures both during construction and operation stages, to protect the students, university staff, guest, and communities’ members.  Fire and safety risks are minimized through the design and equipping all sites with firefighting equipment (water hydrants and sprinklers) including adequate fire extinguishers on sites and 24-hour security. Sites are fitted with fire extinguishers and security guards are trained in use of fire extinguisher. The PE will ensure that the fire extinguishers are functional, well maintained, and are regularly inspected.

The PE have not established the Projects Community Health and Safety Plan.  As part of the ESMS, the PE will develop a Community Health and Safety Plan (including STI HIV/AIDS, cholera, and malaria prevention) to mitigate for community exposure to disease at the three Projects for construction and operations phases per the ESAP. As detailed under the OHS section above, the PE will implement a worker’s health program to screen the health of workers and measures to manage diseases (HIV AIDs, Malaria, Cholera and COVID-19). Such information is not used in discriminatory manner and will not exclude workers from employment opportunities

KUHeS LL have developed a Labor Influx Management Plan. The plan highlights potential negative impacts due the presence of the development including risk of social conflict, risk of increase in crime, impacts to community dynamics, burden on public services, increased risk of communicable diseases, and GBVH, child labor and school dropout, increase in traffic and accidents, and increase pressure on housing/rents, accidents, and increase pressure on housing/rents. The Plan states that Project mitigate these risks via the ESIA ESMP (as it is contractually required to do so). Therefore, the PE will require the EPC Contractors for KUHeS Blantyre and LUANAR Bunda to develop their respective Projects

As part of the HR procedure, the PE and EPC Contractors will develop and implement a Worker Code of Conduct which will also apply to all subcontractors to ensure they maintain high standards within the community. The code of conduct will be amended to reflect respect for local beliefs and customs and with special attention for risks related to sexual harassment, sexual exploitation and GBVH. The PE has committed to develop and implement a system to register, review and address all complaints of sexual harassment and GBV by conducting serious investigations and implementing disciplinary measures, per the ESAP under PS2 above.  On potential for increased traffic risks and impacts to the communities, it is expected that the EPC contractors will not cause any disruption to communities as the EPC Contractors will not transport any heavy loads on the roads to lessen potential for traffic or road blockages.

On Community Health & Safety, IESC established that GBVH survivors from the surrounding areas where the Projects are located are served by three main healthcare facilities. The Centers are public facilities funded by the government and housed within the hospital. These are: i) KUHeS LL: One Stop Centre at Kamuzu Central Hospital; ii) KUHeS Blantyre: On Stop Centre at Queen Elizabeth Central Hospital; and iii) LUANAR clinic for students, financed by the schools. The ESDD identified the need to strengthen the following i) formally training all the medical personnel on handling of GBVH cases, (including psychosocial support) and ii) equipping the clinics to handle GBVH cases (including capacity to carry different tests such as for HIV/AIDs and pregnancy tests). Therefore, the PE shall partner with the Ministry of Health and Health-Based NGOs to carry out a health care facilities quality assessment to determine the medical needs of the health facilities on the campuses to manage cases of GBV which are reported. Based on the results of the quality assessment, identify opportunities, and develop measures to improve the services offered per the ESAP. Additionally, the PE will collaborate with OMM, University, Ministry of Health, Ministry of Gender, Children Disability and Social Welfare to develop a Trauma center to support and provide counseling for GBVH survivors per the ESAP.

During operations, the PE have defined a student’s resident handbook which describe rules that will apply to students who occupy rooms within the three developments. It is also anticipated that the operational contractors will apply the PE’s defined a student’s resident handbook procedures, however as the contractor has not been appointed these are pending. It is important that all students will be subject to University rules regarding behavior (alcohol and drug use, sexual harassment, theft etc.)

Security Personnel

The PE respective Project sites and assets are secured by fencing, controlled access, and guarded 24 hours per day by security guards. The security guards play a significant role in managing site security. The University/College has existing security guards and measures in place for access control and permitter monitoring

The EPC Contractor for KUHeS LL Project manages security on site and has hired security guards for during the construction phase. These security guards are directly appointed by the EPC Contractor and not subcontracted. Per the ESDD findings, Security management plan has not been established and no security risk assessment has taken in place.  Therefore, the PE will require the EPC Contractors for all the three Projects to develop and implement a Security Risk Assessment and a Security Management Plan (SMP), in line with MIGA’s PS4 requirements per the ESAP. Under the SMP, perimeter fences will be installed, access controlled, and access restricted to one point of entry. To ensure alignment with MIGA’s PS 4 requirements for security arrangements, the PE and the EPC Contractor will make reasonable inquiries to ensure that the security service provider has not been implicated in past abuses. Moreover, the EPC Contractors will train security workers on the appropriate use of force and conduct toward workers and nearby communities. The PE will also require security workers to act within the respective applicable national laws. The PE will not sanction any use of force except when used for preventive and defensive purposes in proportion to the nature and extent of the threat. The PE will ensure that the all the Security officers sign the SHP and CoC and they are all trained on GBVH and on the CoC so that they can assist in GBVH cases identification, reporting, enforcement, and implementation of CoC per the ESAP.

 

PS5: Land Acquisition and Involuntary Resettlement.

The land earmarked for the construction of the Project is owned by the 3 universities; therefore, the Projects will not lead to additional land acquisition. 

As part of the MIGA ESDD it was established that the construction of accommodation facilities at KUHeS Blantyre has yet to commence and the land owned by KUHeS Blantyre is currently being utilised by thirteen (13) individuals who have been cultivating crops (maize, sugar cane and peas) on the land for the past 10 years, but do not live nearby.  KUHeS Blantyre reported that these are informal users and there is no rental agreement in place.  KUHeS Blantyre confirmed that formal engagement (letters), with all 13 individuals has been undertaken and they are aware that they have been cultivating on KUHeS Blantyre land and do not contest the land ownership. Additionally, KUHeS Blantyre reported that the individuals are not seeking compensation and will be given the opportunity to harvest all crops prior to the construction commencing (effectively a cut-off date).

MIGA engaged a suitably qualified E&S consultant to conduct a gap analysis of the Project against MIGA PS 5 requirements. The consultant conducted a site visit to KUHeS Blantyre on September 28th, 2021 and conducted interviews with university staff, OMM personnel and 6 farmers (the consultant couldn’t trace and contact the other 7 farmers). Based on the E&S consultant PS5 gap analysis and assessment, the consultant’s findings and conclusions are summarized as follows: (i) The land that the 13 farmers were cultivating on is legally owned by KUHeS Blantyre (through the Ministry of Education). However, a copy of the title deed was not available. Therefore, as per the ESAP, the PE will obtain a copy of the title deed, demonstrating legal ownership of the land by Ministry of Education /KUHeS Blantyre (ii) The 13 farmers will be economically displaced and many of the farmers have not been able to access another area to farm, and most have limited options in terms of other livelihoods.  (iii) In 2018, KUHeS Blantyre engaged the farmers and advised them to vacate the land. The University sent formal letters to the farmers requesting them to stop cultivating the land. The Engagements continued through 2019 while farmers were still cultivating the land. (iv)  In November 2019, Cut-Off date was established, and the university sent the second batch of letters to the farmers (v) In 2020, when the project started to gain momentum, the farmers were verbally informed about the likelihood of imminent development and they were advised that the coming harvest would be their last one on the land. (vi) In Oct/Nov 2020, the university had a meeting with the farmers where it was agreed that farmers will harvest their crops and not replant (vii) As of Oct 2021, the land has since been graded and lies idle in preparation for construction and there is no cultivation currently being undertaken on the land.

Given the economic displacement that has taken place, per the ESAP, The PE shall undertake a vulnerability assessment of 13 displaced farmers and determine household vulnerability to be included in the Livelihood Restoration Plan. The assessment should inform the approaches that will be provided to identify and support vulnerable groups that may have pre-existing vulnerability or be disproportionately affected by Project land-take (legally owned by KUHeS Blantyre). Additionally, the PE will be required to develop and implement a livelihood restoration plan (“LRP”). The plan shall be designed to compensate affected 13 farmers and offer other assistance to meet the objectives of PS5.  The LRP shall establish the entitlements of affected persons and/or communities and shall ensure that these are provided in a transparent, consistent, and equitable manner. To manage the land related grievances, per the ESAP the PE will develop a Grievance Mechanism that is transparent, accessible, and accountable through which affected parties can express grievances and to sustain good relations between the project and its stakeholders. The grievance mechanism should include a mechanism for identifying and validating the 7 remaining displaced households (farmers) that have not been contacted during the ESDD due to lack of their contact information and the fact that they have moved out of the area.

LUANAR Bunda

Construction at LUANAR Bunda has yet to commence and land on which the accommodation will be constructed is currently cultivated (maize, sweet potato, ground nuts). Land on which the development will be constructed is owned by LUANAR and cultivation is undertaken by the University and staff and they have been informed that the development will commence soon. Informal interactions with community stakeholders at the LUANAR campus confirmed that no surrounding community members cultivate on the land on which the development will be constructed.

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

The three Projects Environmental and Social Impact Assessment (ESIA) (May 2019):

 

Project Contact Information

Contact: Mark Mikwamba

Position: Managing Director

E-mail: MMikwamba@oldmutual.co.mw

Address: 30 Glyn Jones Road, P.O. Box 393, Blantyre, Malawi

 

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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

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