Environmental and Social Impact Assessment (ESIA) Study Report for 30,000 MT Liquefied Petroleum Gas (LPG) Mounded Storage Depot on Plot NO. MN/VI/4794, Chaani Location, Changamwe Sub-County, Mombabasa County, Kenya ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA) STUDY REPORT FOR 30,000 METRIC TONNES (MT) LIQUIFIED PETROLEUM GAS (LPG) MOUNDED STORAGE DEPOT ON PLOT NO. MN/VI/4794, CHAANI LOCATION, CHANGAMWE SUB- COUNTY, MOMBASA COUNTY, KENYA BY: WEEN Consult Limited, Glory Driving School, Mkoma Road, South B, P.O Box 28329-00200, Nairobi Mobile: +254 721 810 504, +254 721 639 140 Email: [email protected] Email: [email protected] (Attn. Mr. Steve Nyamori, Director) NEMA Registration 7854 Client AEVITAS INVESTMENT COMPANY LIMITED P.O Box 45675 GPO, NAIROBI Tel: +254 701139710 E-mail: [email protected] SEPTEMBER, 2020 1 Environmental and Social Impact Assessment (ESIA) Study Report for 30,000 MT Liquefied Petroleum Gas (LPG) Mounded Storage Depot on Plot NO. MN/VI/4794, Chaani Location, Changamwe Sub-County, Mombabasa County, Kenya REPORT AUTHENTICATION FORM We the WEEN Consult Limited as a firm of experts to: Proponent AEVITAS INVESTMENT COMPANY LIMITED on Terms of Reference for an Environmental and Social Impact Assessment (ESIA) Study for 30,000 metric tons LPG Mounded Storage Depot on plot No. MN/VI/4794, KIBARANI-MOMBASA in Kipevu, Mombasa County, Kenya Do hereby certify that these Terms of Reference have been prepared based on the information provided by AEVITAS INVESTMENT COMPANY LIMITED management as well as information collected from other primary and secondary sources and on the best understanding and interpretation of the facts by the environmental assessors. It is issued without any prejudice under the EMCA 2015 amendments. Consultant Mr. Steve Onserio Nyamori WEEN Consult Limited Signature…………………………………………………………………………………... Date…………………………………………………. NEMA Reg. Number 7854 Project Proponent Director: Mr. Mustafa M Dodh AEVITAS INVESTMENT COMPANY LIMITED Signature…………………………………………………………………………………. Date………………………………………………………………………………………. 2 Environmental and Social Impact Assessment (ESIA) Study Report for 30,000 MT Liquefied Petroleum Gas (LPG) Mounded Storage Depot on Plot NO. MN/VI/4794, Chaani Location, Changamwe Sub-County, Mombabasa County, Kenya List of acronyms Acronyms Full Name AGOL Africa Gas and Oil Limited API American Petroleum Institute BS British Standards EPRA Energy and Petroleum Regulatory Authority IEC International Electro-technical Commission ISO International Organization for Standardization KENGEN Kenya Electricity Generation KENHA Kenya National Highway Authority KETRACO Kenya Electricity Transmission Company KOT Kipevu Oil Terminal KPA Kenya Ports Authority KPC Kenya Pipeline Company KPLC Kenya Power and Lighting Company KRC Kenya Railway Corporation RECP Resource Efficient and Cleaner Production NEMA National Environment Management Authority SOT Shimanzi Oil Terminal 3 Environmental and Social Impact Assessment (ESIA) Study Report for 30,000 MT Liquefied Petroleum Gas (LPG) Mounded Storage Depot on Plot NO. MN/VI/4794, Chaani Location, Changamwe Sub-County, Mombabasa County, Kenya EXECUTIVE SUMMARY Aevitas Investment Company Limited is proposing to construct a 30,000 metric tons LPG Mounded Storage Depot on plot No. MN/VI/4794, KIBARANI-MOMBASA, in Chaani Location, Changamwe Sub County, Mombasa County, Kenya that shall be constructed in two phases whereby phase one will involve the construction of 25,750 metric tons (MT) capacity mounded storage tanks in the next two years and phase two that will involve the construction of 4,250 metric tons capacity mounded storage tanks. The second phase shall be commenced ones phase one is operational. This mounded depot shall be constructed in part of the 7.796Ha (i.e. 19.3acres) of land registered as plot No. MN/VI/4794, KIBARANI-MOMBASA leased by the company from Kipevu Inland Container EPZ Limited (attached lease agreement and title). This project is located in an energy generating zone whereby the immediate neighbours are Kipevu 3 and Kipevu 1 (which are owned by KenGen) and Tsavo Power which is operated by Wartsila Eastern Africa Limited. These three plants are generating electricity using heavy furnace oil. This indeed makes the project site suitable for the proposed project. The GPS coordinates for the proposed project site are A (Latitude -4.03705, Longitude 39.63238), B (Latitude -4.03748, Longitude 39.63426) and C (Latitude -4.03530, Longitude 39.63349). This Kshs 4 Billion project is aimed at m to developing an LPG storage depot near a common user terminal (CUM) in order to increase LPG storage for ease of distribution and onward use in Kenya and the region. This project is meant to contribute to the Big 4 Agenda as envisioned by His Excellency the President. The construction of this depot and subsequent operationalization shall employ over 250 people directly. Indirectly it is meant to employ over 1000 people. Based on studies to inform policy development on use of LPG, in Kenyan households, firewood, charcoal and kerosene are widely used as the home heat source mainly for cooking. This has made the Kenyan government to recommend LPG use as a restraint on deforestation and the countermeasure against pollution (smoke/air pollution). The government of Kenya is also developing policies like exemption of the value added tax and cylinder purchase subsidy to entice the populace to embrace the use of LPG. With such an enticement, the use of LPG is growing in Kenya and in 2017 there was a 59% increase in the use of LPG from the year 2003. There is a projected increase of 14% of LPG use. With the projected increase in the use of LPG, 4 Environmental and Social Impact Assessment (ESIA) Study Report for 30,000 MT Liquefied Petroleum Gas (LPG) Mounded Storage Depot on Plot NO. MN/VI/4794, Chaani Location, Changamwe Sub-County, Mombabasa County, Kenya AEVITAS Investment Company Limited with the technical and financial ability plans to construct a 30,000 metric tons LPG mounded depot that shall be sold in bulk to the local and regional LPG dealers. For such a project, it is a mandatory requirement that it undergoes an environmental and social impact assessment study in order for it to be given an EIA License from the National Environment Management Authority (NEMA). It is with this reason that the proponent commissioned WEEN Consult Ltd to develop terms of reference (ToR) and subsequent environmental and social impact assessment (ESIA) study as guided by the Environmental Management and Co-Ordination Act amendments of 2015. It is important to note that the terms of reference were submitted (NEMA/TOR/5/2/143) and accepted by NEMA on 7th August 2020. With the approved TORs by NEMA, the consulting firm (WEEN Consult Limited) set out to undertake the full study Environmental and Social Impact Assessment (ESIA) with the aim of assisting the Proponent to ensure environmental concerns are integrated and accounted for in all stages of the project development and implementation activities. The specific objectives being: i) To comply and fulfil the legal requirements as outlined in section 58 of the Environmental Management and Coordination Act,(EMCA), 2015 and Section 3&4 of Environmental (Impact Assessment / Audit) Regulation, 2003 as well as other relevant regulations. ii) To examine the location of the proposed 30,000MT LPG mounded depot and establish the key environmental concerns associated with the project to be addressed at the ESIA stage iii) To identify whether or not the project is likely to have significant impacts, and if yes, identify potential significant environmental impacts, analyze significance of the adverse impacts, determine whether adverse impacts can be mitigated and recommend mitigation measures iv) To establish the stakeholders to be involved in the community/public participation process, methods of reporting the project to the public, procedures to be used for community participation and aspects to be considered in the community participation plan during the development and review of the study. v) To develop an Environmental and Social Management Plan for the project outlining anticipated impacts and their mitigation measures. 5 Environmental and Social Impact Assessment (ESIA) Study Report for 30,000 MT Liquefied Petroleum Gas (LPG) Mounded Storage Depot on Plot NO. MN/VI/4794, Chaani Location, Changamwe Sub-County, Mombabasa County, Kenya vi) To generate baseline data for monitoring and evaluation of how well the proposed mitigation measures shall be implemented during the project cycle. vii) To provide a description of the proposed project activities with a potential focus on potential adverse impacts in the design, construction and operation phases caused by the inputs, waste generated and disposal and social economic aspects. viii) To establish the legal and regulatory aspects, administrative frame of reference, to identify Legal and Industry Standards as well as Best Practices standards, legislation and guidelines, and to determine permits and authorizations which will be required for the different sectors agencies and institutions involved in this project ix) To describe the area of influence, and select methods of measuring the environmental aspects of concern including physical (water, air, soil and noise), biotic environment (vegetation, flora and fauna), chemical, socioeconomic (socio and economic structure, demographic, and socioeconomic background), cultural (aspects of cultural, archaeological, or anthropological