SOCIO-ECONOMIC IMPACT ASSESSMENT REPORT Scoping and Environmental Impact Assessment for the Proposed Nuweveld 132/400 kV Powerline near Beaufort West, Western Cape Province Final Scoping Report September 2020 Prepared for: Aurecon South Africa (Pty) Ltd Prepared by: Dr Hugo van Zyl and James Kinghorn Independent Economic Researchers APPENDIX 6 OF NEMA EIA REGULATIONS: REQUIREMENTS OF SPECIALIST REPORTS REQUIREMENT SECTION (1) A specialist report prepared in terms of these Regulations must contain— (a) details of— (i) the specialist who prepared the report; and Appendix D (i) the expertise of that specialist to compile a specialist report including a curriculum Appendix D vitae; (b) a declaration that the specialist is independent in a form as may be specified by the Appendix E competent authority; (c) an indication of the scope of, and the purpose for which, the report was prepared; Section 2 (cA) an indication of the quality and age of base data used for the specialist report; Section 3 (cB) a description of existing impacts on the site, cumulative impacts of the proposed Sections 4, 5 development and levels of acceptable change; and 6 (d) the duration, date and season of the site investigation and the relevance of the season to N/A the outcome of the assessment; (e) a description of the methodology adopted in preparing the report or carrying out the Appendix A specialised process inclusive of equipment and modelling used; (f) details of an assessment of the specific identified sensitivity of the site related to the Section 5 proposed activity or activities and its associated structures and infrastructure, inclusive of a site plan identifying site alternatives; (g) an identification of any areas to be avoided, including buffers; Section 5 (h) a map superimposing the activity including the associated structures and infrastructure Section 3.8 on the environmental sensitivities of the site including areas to be avoided, including buffers; (i) a description of any assumptions made and any uncertainties or gaps in knowledge; Section 3 (j) a description of the findings and potential implications of such findings on the impact of Section 5 the proposed activity or activities; (k) any mitigation measures for inclusion in the EMPr; Section 5 (l) any conditions for inclusion in the environmental authorisation; N/A (m) any monitoring requirements for inclusion in the EMPr or environmental authorisation; Section 5 (n) a reasoned opinion— (i) whether the proposed activity, activities or portions thereof should be authorised; Section 7 (iA) regarding the acceptability of the proposed activity or activities; and (ii) if the opinion is that the proposed activity, activities or portions thereof should be Section 6 authorised, any avoidance, management and mitigation measures that should be included in the EMPr, and where applicable, the closure plan; (o) a description of any consultation process that was undertaken during the course of Section 3 preparing the specialist report; (p) a summary and copies of any comments received during any consultation process and Appendix F where applicable all responses thereto; and (q) any other information requested by the competent authority. N/A (2) Where a government notice gazetted by the Minister provides for any protocol or minimum N/A information requirement to be applied to a specialist report, the requirements as indicated in such notice will apply. EXECUTIVE SUMMARY Red Cap Energy (Pty) Ltd (Red Cap) is proposing to develop up to three wind farms on a site in the Beaufort West Local Municipality, Central Karoo District Municipality, Western Cape. The wind farms are located approximately 65km north of Beaufort West and approximately 30km south of Loxton (see figure below) on an area ±32,000ha in extent. The proposal includes the development of an approximately 120km long 132/400kV powerline/grid line which will connect the proposed wind farms to the Eskom Droërivier Substation located south west of Beaufort West. The project includes four discreet applications all subject to the Scoping and EIA process in terms of the National Environmental Management Act (NEMA). This report deals with the Nuweveld Grid line corridor application. The proposed project’s key strategic objectives can be summarised as supporting additional electricity generation capacity whilst meeting national renewable energy and climate change targets. The project was assessed in terms of its compatibility with South African grid infrastructure policy and strategic spatial planning, as well as with socio-economic development planning with a focus on local and regional planning. It was found to be broadly supported by policy objectives, provided environmental impacts and impacts on other land uses and potentials are found to be acceptable. Long-term positive economic impacts can only flow from a project that is financially sustainable (i.e. financially viable in the long term with enough income to cover costs). The powerline in itself is not a profit-making development. It would be financed by wind farms, developed as part of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), that connect to it. After construction, the line and switching stations will be handed over to Eskom at no cost. The REIPPPP essentially ensures that once a renewable project is operational there are relatively low levels of financial risks in order to encourage these types of projects. The proposed powerline is thus highly likely to prove financially viable assuming the one or more of the Nuweveld Wind Farms are able to secure a long-term contract through the REIPPPP and then proceed to operation. The expenditure associated with the construction phase of the project would be between R500 million and R600 million in the case of the 132kV option and between R1 million and R1.3 million in the case of the 400kV option. In the case of both the 132kV option and the 400kV option, roughly 80 to 110 jobs of 18 to 24-month duration would be associated with construction, of which it is estimated that between 43 and 58 would accrue to workers from the local municipal area. The project’s operational phase would result in some marginal direct and indirect economic opportunities associated with ongoing maintenance and support efforts for the powerline. Positive impacts resulting from expenditure on the construction and operation of the project were thus found to be of a moderate positive significance during construction and of a minor positive significance during operations. Impacts associated primarily with the influx of people were considered. There was a focus on the increased risk of social ills such as increased alcohol and drug use, increased teenage and unwanted pregnancies, increased prostitution and increases in sexually transmitted diseases (STDs such as HIV) in the wider community and potential strain on services (municipal and accommodation) stemming from ‘new’ people coming to the area. Given that relatively few people are likely to be employed during construction, and given the marginal nature level of economic activity associated with the operations phase, impacts were found to be of minor negative significance during construction and of negligible significance during operations. Risks to tourism would be driven by visual and associated heritage impacts on a relatively isolated area with wilderness quality and limited signs of civilisation. A review of the local tourism industry found that tourism facilities and attractions in the areas surrounding the project site are limited and sparsely distributed, consisting mainly of accommodation facilities with some cultural attractions, commercial hunting and wildlife viewing in the wider area. The tourism context itself should thus limit impacts to a minor negative significance during construction as well as during operations provided that the mitigation measures prescribed in the other specialist studies are implemented. Impacts on surrounding landowners and communities are expected to result from an increase in the risk of crime, potential damage to farm infrastructure, increased littering, increased potential for veld fires, greater risk of increased dust and noise levels and safety concerns associated mostly with presence of large trucks and machinery. Particular attention was given to the increased traffic and other activity which would be experienced by residents of Loxton and 1-1 the more isolated communities in the area. The resulting impacts on surrounding landowners and communities, including to their sense of place, are expected to be minor negative with mitigation during construction and operations. The table below presents an assessment of the worst-case-scenario considering both the 132kV option and the 400kV option for each of the impacts assessed. As depicted the impacts are the same for both the 132kV and the 400kV option and thus also for the “worst-case-scenario”. Impact 132 kV powerline 400 kV powerline Worst -case -scenario Pre -mitigation Post -mitigation Pre -mitigation Post -mitigation Pre -mitigation Post -mitigation Impacts from expenditure on the Moderate (+) Moderate (+) Moderate (+) Moderate (+) Moderate (+) Moderate (+) construction of the project Impacts from expenditure on the Minor (+) Minor (+) Minor (+) Minor (+) Minor (+) Minor (+) operation of the project Impacts from expenditure on the Moderate (+) Moderate (+) Moderate (+) Moderate (+) Moderate (+) Moderate (+) decommissioning of the project Impacts associated primarily with the influx Minor