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Mocuba Solar Project Simplified Environmental Study Client: Scatec Solar, Norfund & EDM Prepared by: ERM, in partnership with Impacto In partnership with Version: 1.0 20th of October 2015 www.erm.com Scatec Solar, Norfund and EDM (Sponsors of the Project) ERM & Impacto Simplified Environmental Study 20th of October 2015 Reference: 0306121 Compiled by: Reviewed by: Approved by: Ricardo Pereira Susana Serra Paula Gonzalez This report was prepared by Environmental Resources Management and Impacto, with all reasonable competence, care and diligence in the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and considering the resources dedicated to it in agreement with the client. We do not accept any responsibility before the client and others relative to any matter outside the above mentioned scope. This report is confidential for the client and we do not accept any responsibility before third parties to whom this report or parts of it may be disclosed. Such parties would refer to the report at their own risk. ENVIRONMENTAL RESOURCES MANAGEMENT SCATEC SOLAR, NORFUND & EDM I LIST OF ACRONYMS Acronym Description AC Alternative current ADI Area of Direct Influence AII Area of Indirect Influence EIA (AIA) Environmental Impact Assessment (Avaliação de Impacto Ambiental) APA Agência Portuguesa de Ambiente (Portuguese Environment Agency) ARA-Sul Administração Regional das Águas do Sul (Regional Administration of Southern Waters) ASR Air Sensitive Receptors CFM Caminhos de Ferro de Moçambique (Mozambique Railways) CO Carbon Monoxide dB (A) Decibel DC Direct Current DEM Digital Elevation Module DTA Departamento de Terras e Águas (Department of Lands and Waters) DLM Digital Land Module DNPC Direcção Nacional de Património e Cultura (National Directorate of Heritage and Culture) DPCA Direcção Provincial de Coordenação Ambiental (Provincial Directorate of Environmental Coordination) DPACZ Direcção Provincial de Coordenação Ambiental da Zambézia (Zambezia Provincial Directorate of Environmental Coordination) DUAT Direito de Uso e Aproveitamento da Terra (Right to the Use and Exploitation of the Land) SES (EAS) Simplified Environmental Study (Estudo Ambiental Simplificado) EASD Estratégia Ambiental para o Desenvolvimento Sustentável (Environmental Strategy for Sustainable Development) EIS (EIA) Environmental Impact Study (Estudo de Impacto Ambiental) EDM Electricidade de Moçambique (Mozambique Electricity) EPC Engineering, Procurement and Construction contractor (empreiteiro de Engenharia, Aprovisionamento e Construção) EPDA Estudo de Pre-viabilidade Ambiental e Definição de Âmbito (Pre- Viability Study and Scope Definition) ERM Environmental Resources Management GEG (GEE) Greenhouse Effect Gases (Gases de Efeito de Estufa) GIS Geographic Information System GPS Global Positioning System ha Hectare HCB Hidroeléctrica de Cahora Bassa (Hydroelectric of Cahora Bassa) IBA Important Bird Conservation Area ICP Inductively Coupled Plasma Spectroscopy IDF Intensity-Duration-Frequency IEA Instituto de Estudos Avançados (Institute of Advanced Studies) IFC International Finance Corporation INE Instituto Nacional de Estatística (National Statistics Institute) M amsl Meters above Mean Sea Level MAP Mean Annual Precipitation MITADER Ministério da Terra, Ambiente e Desenvolvimento Rural (Ministry of Land, Environment and Rural Development) ENVIRONMENTAL RESOURCES MANAGEMENT SCATEC SOLAR, NORFUND & EDM II MWp Megawatts at peak NOx Nitrogen Oxides NO2 Nitrogen Dioxide PGA /EMP Plano de Gestão Ambiental (Environmental Management Plan) WHO /OMS World Health Organization (Organização Mundial da Saúde) PM Particulate Matter suspended in the air PM10 is airborne particulate matter with an aerodynamic diameter less than 10 microns (m); PM2.5 is less than 2.5 m. PV Photovoltaic PPA Power Purchase Agreement PPP Processo de Participação Pública (Public Participation Process) SANS South Africa National Standards SDAE Serviços de Actividades Económicas (Economic Activity Services) SCS Serviços de Conservação do Solo (Soil Conservation Services) SRTM Shuttle Radar Topography Mission SO2 Sulphur Dioxide TdR Termos de Referência (Terms of Reference) USDA United States Department of Agriculture ULSD Ultra-Low Sulfur Diesel UNEP United Nations Environmental Program UNESCO United Nations Education, Science and Culture Organization ZEE Zona Económica Especial (Special Economic Zone) ENVIRONMENTAL RESOURCES MANAGEMENT SCATEC SOLAR, NORFUND & EDM III TABLE OF CONTENTS LIST OF FIGURES VII LIST OF TABLES IX 1 INTRODUCTION 1-1 1.1 PROJECT JUSTIFICATION 1-1 1.2 NEED AND OBJECTIVE OF THE PROJECT 1-2 1.3 PROPONENT OF THE PROJECT 1-5 2 LOCATION AND DESCRIPTION OF THE ACTIVITY 2-1 2.1 LOCATION 2-1 2.2 SUMMARY OF THE PROCESS 2-3 2.3 COMPONENTS OF THE PROJECT 2-3 2.4 PHASES OF THE PROJECT 2-11 2.5 LABOUR 2-13 2.6 ENVIRONMENTAL MANAGEMENT 2-14 3 LEGAL FRAMEWORK 3-1 3.1 CONSTITUTION OF THE REPUBLIC OF MOZAMBIQUE 3-1 3.2 ENVIRONMENTAL LAW 3-1 3.3 NATIONAL ENVIRONMENTAL POLICY 3-1 3.4 REGULATION OF THE ENVIRONMENTAL IMPACT ASSESSMENT PROCESS 3-2 3.5 AIR QUALITY STANDARDS 3-3 3.6 STANDARDS FOR MANAGEMENT OF URBAN SOLID RESIDUE AND HAZARDOUS RESIDUES 3-6 3.7 STANDARDS FOR WATER USE AND QUALITY 3-6 3.8 STANDARDS ASSOCIATED WITH NOISE MANAGEMENT 3-7 3.9 STANDARDS ASSOCIATED WITH MANAGEMENT OF CULTURAL HERITAGE 3-7 3.10 LAND LAW 3-8 3.11 INSTITUTIONAL FRAMEWORK 3-8 3.12 ENERGY LEGISLATION 3-9 4 BIOPHYSICAL AND SOCIO-ECONOMIC BASELINE 4-1 4.1 PROJECT AREA OF INFLUENCE 4-1 4.2 CLIMATE AND AIR QUALITY 4-5 4.3 GREENHOUSE EFFECT GASES 4-10 4.4 GEOLOGY AND GEOMORPHOLOGY 4-11 4.5 SOILS AND LAND USE 4-14 4.6 SURFACE WATER 4-20 4.7 NOISE 4-28 4.8 LANDSCAPE 4-32 4.9 BIOLOGICAL ASPECTS 4-37 ENVIRONMENTAL RESOURCES MANAGEMENT SCATEC SOLAR, NORFUND & EDM IV 4.10 SOCIO-ECONOMIC 4-39 4.11 ARCHAEOLOGICAL, HISTORIC, ETHNOGRAPHIC AND CULTURAL HERITAGE 4-61 5 IMPACT ASSESSMENT 5-1 5.1 CLIMATE AND AIR QUALITY 5-1 5.2 GREENHOUSE EFFECT GASES 5-6 5.3 GEOLOGY AND GEOMORPHOLOGY 5-7 5.4 SOILS AND LAND USE 5-8 5.5 NOISE 5-14 5.6 LANDSCAPE 5-19 5.7 SURFACE WATER (RUNOFF) 5-27 5.8 BIOLOGICAL ASPECTS 5-32 5.9 SOCIO-ECONOMIC IMPACTS 5-39 5.10 ARCHAEOLOGICAL, HISTORIC, ETHNOGRAPHIC AND CULTURAL HERITAGE 5-63 6 ENVIRONMENTAL MANAGEMENT PLAN 6-1 6.1 SCOPE AND OBJECTIVES OF THE ENVIRONMENTAL MANAGEMENT PLAN 6-1 6.2 ENVIRONMENTAL POLICY AND LEGAL FRAMEWORK 6-1 6.3 ENVIRONMENTAL MANAGEMENT STRUCTURE 6-2 6.4 MEASURES AND MONITORING OF ENVIRONMENTAL MANAGEMENT 6-4 7 ENVIRONMENTAL MANAGEMENT PLAN 7-1 8 CONCLUSIONS 8-1 9 IDENTIFICATION OF THE TEAM OF THE ENVIRONMENT ASSESSMENT STUDY 9-1 10 REPORT OF PUBLIC CONSULTATION 10-1 10.1 SIMPLIFIED PLAN FOR COMPENSATION AND LAND USE 10-1 REFERENCES 10-3 ENVIRONMENTAL RESOURCES MANAGEMENT SCATEC SOLAR, NORFUND & EDM V APPENDIXES APPENDIX I – Project Categorization Letter (DPCA) APPENDIX II – Terms of Reference and Approval Letter APPENDIX III – Results of soil samples analysis APPENDIX IV – Results of water samples analysis APPENDIX V – Archaeological Prospection Coordinates APPENDIX VI – Potential noise receptors APPENDIX VII – Socio-economic Tables APPENDIX VIII – Compensation Plan and Appendixes APPENDIX IX – Information Meeting Report ENVIRONMENTAL RESOURCES MANAGEMENT SCATEC SOLAR, NORFUND & EDM VI LIST OF FIGURES Figure 1.1 EDM's energy transmission system 1-4 Figure 1.2 Demand on the center-north transmission line (%) 1-5 Figure 2.1 Location of the Proposed Project 2-2 Figure 2.2 Cell, module and photovoltaic array 2-3 Figure 2.3 Solar modules section 2-5 Figure 2.4 Typical configuration of a solar power plant with tracker technology 2-5 Figure 2.5 Detailed development of the site including solar modules, transformers and buildings 2-7 Figure 2.6 Development of the site relative to the existing Mocuba substation 2-8 Figure 2.7 Simplified connection diagram 2-9 Figure 2.8 Standard inverter unit 2-10 Figure 2.9 Standard transformer unit 2-10 Figure 4.1 Area of Direct Influence of the Project 4-2 Figure 4.2 Area of Indirect Influence of the Project: the District of Mocuba 4-4 Figure 4.3 Area of Influence for Air Quality and identified Air Sensitive Receptors 4-7 Figure 4.4 Average Monthly Temperature for Mocuba 4-8 Figure 4.5 Mean monthly rainfall and rainfall days for Mocuba 4-8 Figure 4.6 Mean Wind Speed from 2009 to 2013 4-9 Figure 4.7 Wind Rose for 2009 – 2013 4-9 Figure 4.8 Geology of the Project Area 4-13 Figure 4.9 Soil Types, Land Use Capability and Soil Sample Locations 4-16 Figure 4.10 Hardened Ironstone Layer Present in Post-Mananga Coarse Textured Soil 4-17 Figure 4.11 White Sandy Soils 4-18 Figure 4.12 Typical Cultivated Field with Beans (Example A) 4-19 Figure 4.13 Typical Cultivated Field with Manioc (Example B) 4-20 Figure 4.14 Example of Grass Harvested for Thatch 4-20 Figure 4.15 The Licungo River Basin 4-23 Figure 4.16 Egaro River 4-24 Figure 4.17 Surface Water Catchments and Drainage 4-26 Figure 4.18 Well used for Washing Water 4-27 Figure 4.19 Drinking Water Well 4-27 Figure 4.20 Location of the Noise Sensitive Receptors 4-30 Figure 4.21 Map of the existing Landscape in the Study Area 4-34 Figure 4.22 Substation of Mocuba 4-35 Figure 4.23 Licungo River 4-36 Figure 4.24 Predominant vegetation 4-36 Figure 4.25 Residences and farms (machambas) 4-37 Figure 4.26 Examples of Modified Habitats in the Project Area 4-38 Figure 4.27 Organization Chart of District Government 4-41 Figure 4.28 Configuration of the Political and Administrative Organization of the Mocuba District 4-43 Figure 4.29 Population Centers Mapped in the Indirect

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