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FINAL PRINT READY VERSION Report Number: 1776816-318548-3 Distribution June 2018 CNOOC UGANDA LIMITED KINGFISHER OIL PROJECT, HOIMA DISTRICT, UGANDA - SOCIO-ECONOMIC ASSESSMENT VERSION Submitted to: The Executive Director National Environment Management Authority, NEMA House, Plot 17/19/21 Jinja Road, P. O. Box 22255 Kampala, Uganda READY PRINT FINAL PRINT READY VERSION Report Number: 1776816-318548-3 Distribution: REPORT – VOLUME 4, STUDY 10 1 x electronic copy CNOOC Uganda Limited 1 x electronic copy NEMA 1 x electronic copy Eco & Partner 1 x electronic copy Golder VERSION READY PRINT FINAL SIA: CNOOC KINGFISHER OIL PROJECT, UGANDA Executive Summary This report presents the Socio-economic Impact Assessment for the CNOOC ESIA for Kingfisher 3A Block, Hoima District in Uganda (13615730-12964-15) and has been undertaken by Golder Associates in association with Eco & Partner Consult (Ltd). The ESIA has been conducted in accordance with all relevant Ugandan legislation, as well as the International Finance Corporation (IFC) Standards (2012). The report related to the SIA is divided into eight chapters, viz.: Chapter 1: Introduction; Chapter 2: Methodology, including the description of the affected environment; Chapter 3: Baseline Data, including in respect of the regional and local study areas; Section 4: Human Rights Assessment, including risks and vulnerabilities; Section 5: Impact identification, assessment and mitigation/optimisation measures for the Kingfisher Central Processing Facility Local Study Area; VERSION Section 6: Impact identification, assessment and mitigation/optimisation measures for the Feeder Pipeline Local Study Area; Section 7: Cumulative Impact Assessment Focus Areas; and Section 8: Conclusions and Recommendations For the purposes of the SIA, a regional study area and two local study areas have been defined. The regional study area has been defined as the Hoima District and the sub-counties of Kyangwali (Buhuka, Butoole and Kyangwali parishes); Buseruka (Kaseeta and Kabale parishes); and Kabwoya which has Kabwoya parish. The two Local Study Areas (LSAs) are (i) for the CentralREADY Processing Facility situated in the Buhuka Parish within the Kyangwali Sub-County and (ii) the Feeder Pipeline area comprising 22 villages within vicinity of the pipeline within a portion of the Kyangwali Sub-county (Butoole and Kyangwali parishes), the Buseruka Sub-county (Kaseeta and Kabale parishes) and Kabwoya Sub-county. Secondary data was collected and reviewed, including a substantial number of studies previously undertaken within the Albertine region, the most recent Uganda Bureau of Statistics census data (2014), data from the Relocation Action Planning for this project, as as well as a review of recent aerial imagery through GIS. Primary data collection included focus group discussions, key stakeholder interviews, a sample household socio- economic survey, village level questionnaires and a land use constraints mapping ground truthing exercise. Based on projections fromPRINT the 2002 census, the population of Hoima District was expected to grow to 349,204 persons (50.4% males and 49.6% females) by 2014. However, the recent figures from the Uganda Bureau of Statistics (2016), based on the National Population and Housing Census of 2014 shows that the expected growth has been surpassed significantly, with the Hoima district population being measured at 572,986 persons (467,042 (rural); 105,944 (urban)) at the time of the 2014 census. This rapid increase was mainly due the high fertility rates, early marriage patterns (2% of males and 3% of females are married between the age 10 to 14) and immigrants from other parts of Uganda as well as internationally. There is a relatively equal male to female ratio in the Hoima District population, with a higher ratio of female to male in the 20 to 39 years as well as in the 60 plus age groups. Almost 60% of the District’s population is FINALbelow 19 years of age and only 13.59% is above the age of 40 years. Hoima District includes a multitude of ethnic groups with a significant shift in the proportional distribution of ethnic groups over the past one and a half decades. Whereas the National Housing and Population Census done in 2002 showed that the indigenous Banyoro and Bagungu formed the largest ethnic groups (comprising about 77% of the population) in 2003, followed by the Alur and Jonam (7%) and Bakiga (4%) this has changed comprehensively, with the project household survey (2013) indicating that 68.9% of household heads reported that they were from the Alur tribe. June 2018 Report No. 1776816-318548-3 i SIA: CNOOC KINGFISHER OIL PROJECT, UGANDA Village level surveys undertaken during 2017 found that all villages in the Buhuka and Kabaale parishes indicated a predominance of Alur, whereas the Butoole Parish indicated that the Bakiga group comprised the large majority of ethnic presence in 80% of villages, followed by the Banyankole. Out of seven affected villages in the Kaseeta Parish three indicated a predominance of Lugbara, two the Bafumbira, one predominantly comprised of Bakiga and one of Banyankole. Based on the 2013 household survey, it was strongly suspected that some of the Alur households may originate fairly recently from the Congo, with nearly one third of households having moved into the area in the previous five years at that stage and a further near one-third having moved into the area in the previous ten years. The influx of migrants from the Congo was confirmed by the immigration office in Nsonga as well as LC Is from the settlements alongside Lake Albert. The majority of household heads are married in the project areas, with approximately 6% being single mothers and approximately 5% being widows. The local study areas also house a mixture of religious beliefs. There are continuing indications of tensions between tribal groups in some of the villages first picked up in 2013, which are reported to be driven largely by issues surrounding village leadership and land disputes. However, disputes within villages are strongly fuelled by and/or aggravated by the reported abuse of alcohol and drugs which is a substantial problem, particularly in the KCPFLSA. At the time of the household survey, land related conflicts accounted for 14% of disputes, though there are reports that there has been a substantial increase in land-related disputes in the past two years due to speculation around land, in part fuelled by opportunistic land speculation in both LSAs. It is hoped that the formation of theVERSION Buhuka Communal Land Association in the KCPFLSA will be successful in mitigating against further land speculation. The formation of the Hoima Municipality in July 2010 resulted in sharing of a number of education resources which reduced the amount of primary schools and teaching staff, overloading existing educational infrastructure and compromising teacher to pupil ratios which, in some areas are said to be as high as 1:100, All parishes have a shortage of safe drinking water. Commonly reported diseases include respiratory tract infections, malaria, diarrhoea, HIV/AIDS, eye diseases, malnutrition, skin diseases and dental diseases and in general, the Kingfisher LSA has a health profile that is significantly more compromised than that for Hoima as a district. No formal waste disposal services or facilities exist in the Hoima District. The majority (approximately 98.9%) of the population in Hoima District use wood fuel as the most dominant source of energy, symptomatic of the lack of adequate social infrastructure in the district and the LSAs, and the lack of capacity to meet demands. READY Education facilities are also lacking in both local study areas. All schools in the LSAs are under-resourced and understaffed, and many children drop out after completing primary school. There appears to be significant gender parity in attendance of schools at all levels although there is a statistically small difference between the percentage of males that finish schooling versus girls in both LSAs. The district has four main types of land uses namely; agriculture, settlements, forest conservation and wildlife conservation. Subsistence farming and small scale commercial farming are the main economic activities in the Hoima District. Both the crop farmingPRINT and livestock sectors in the various sub-counties are faced with a number of challenges, including unpredictable rainfall, increases in vermin attacks and crop diseases, rudimentary farming practices and land degradation. This, coupled with the demands of high levels of in-migration and associated need for land as well as land take for developments including that related to the project, is leading to shortages of land for cultivation. There is increasing environmental degradation and deforestation because of increases in clearing of land for farming practices as well as for wood fuel and other basic subsistence needs. Inhabitants of the Buhuka Parish villages directly depend on subsistence fishing activities as a source of food, FINALlivelihoods and a cash income. The fishing sector is being threatened by declining catches mainly due to the use of destructive fishing methods such as illegal fishing gear, fishing in breeding areas, non-compliance with regulations and inadequate control of catches. The main economic activities of villages in the KCPF local study area are fishing and related selling of produce (nearly 70% of households engage in this) and cattle keeping. There is evidence of radical exploitation of fishing for sale into the interior via the escarpment road, with fish catches also being sold locally at markets June 2018 Report No. 1776816-318548-3 ii SIA: CNOOC KINGFISHER OIL PROJECT, UGANDA and at distant trading posts such as Panyimur, Ntoroko and Bwera. There are numerous reports of declining fish numbers, driven by unsustainable fishing practises and an increasing population engaging in fishing activities. Livestock keeping accounts for a smaller percentage of households but is a substantial socio- economic challenge on both regional and local scale. Livestock numbers are large and there is clear evidence of a high degree of overgrazing already in both the local study area and the sub-county.
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