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(ECMG) Chad Export Project Cameroon Petroleum Environment

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(ECMG) Chad Export Project Cameroon Petroleum Environment 28 June 2001 -1- REPORT OF THE EXTERNAL COMPLIANCE MONITORING GROUP (ECMG) SECOND SITE VISIT MAY-JUNE 2001 Chad Export Project Cameroon Petroleum Environment Capacity Enhancement Project Chad Petroleum Sector Management Capacity Building Project 28 June 2001 -2- Prepared by D'Appolonia S.p.A. ECMG team members: Roberto Carpaneto - Project Manager, Pipeline Engineering, HSE specialist Paolo Lombardo - Project Coordinator, Environmental Engineering specialist Frédéric Giovannetti - Socio-Economic specialist Jean Le Bloas - Environmental specialist William Johnson - Earth Science specialist Jorge Ossanai – Public Health specialist SUBJECT: SECOND VISIT OF THE D’APPOLONIA ECMG TEAM TO CHAD AND CAMEROON, MAY 29 THROUGH JUNE 10, 2001 SCOPE 1. Under contract by the International Finance Corporation (IFC), D’Appolonia S.p.A. (D’Appolonia) of Genoa, Italy, as the Environmental Management Plan (EMP) External Compliance Monitoring Consultant for the Chad/Cameroon Oil Development and Transportation Project (referred to as the External Compliance Monitoring Group – ECMG), is responsible for providing an independent assessment of the compliance of the development Consortium [Esso Exploration and Production Chad Inc., Petronas Carigali (Chad EP) Inc., and Chevron Petroleum Chad Company Ltd.], the Tchad Oil Transportation Company S.A. (TOTCO) and the Cameroon Oil Transportation Company S.A. (COTCO) with obligations under the EMP and the relevant Environmental Commitments in the Finance Documents and the World Bank Project documents. 2. D’Appolonia is also responsible for monitoring performance on two World Bank Technical Assistance/Capacity Building (WBTA) projects. This monitoring is being conducted under a parallel contract between the World Bank and D’Appolonia. Under this contract D’Appolonia will monitor: § Chad: Petroleum Sector Management Capacity-Building Project; § Cameroon: Petroleum Environment Capacity Enhancement Project (CAPECE project). 3. This report summarizes observations related to both contracts. 4. The Lender Group and the World Bank will use the information provided by D’Appolonia, as well as other available relevant information, to determine, subject to provision of the Finance Documents and the World Bank Project Documents, whether it 28 June 2001 -3- finds the Consortium, TOTCO and COTCO are in compliance with the EMP and the relevant the Environmental Commitments. The World Bank, subject to provisions of the World Bank Project Documents, will similarly determine if the capacity building programs are being implemented in a timely manner and, in particular, if the specific EMP obligations of the respective Governments are being met. D’Appolonia’s engagement as the ECMG does not affect the continuation of the current practices of the World Bank Group and the Lender Group for consultation with NGOs, both local and international, universities, governmental agencies and other resources. 5. The Chad/Cameroon Oil Development and Transportation Project (referred to as the Chad Export Project) is still conducting infrastructure development prior to the placement of pipeline. Both of the capacity-building projects are in their initial stages of implementation. Because of the nature of this activity, this second visit has focused on those aspects of infrastructure development identified from the initial visit in February – March 2001 as having the greatest potential environmental and human impact, as well as the status of the capacity-building projects and the ecological offsets in Cameroon. Specific activities conducted during this second trip have included: § Visit Project and Oilfield Development work sites and associated infrastructure upgrades in Chad and Cameroon; § Visit representative ecological areas and representative impacted communities; § Meet with representative NGOs in both Chad and Cameroon; § Meet with representatives of the Chad and Cameroon governments who have responsibility for the capacity-building projects; § Meet with parties responsible for EMP compliance monitoring and review relevant monitoring records; § Conclude a closeout meeting with representatives of the development Consortium, TOTCO, COTCO and Lender Group, the World Bank and Chad government representatives focusing on key findings, correction of any factual inaccuracies and discussing possible corrective actions. 6. The closeout meeting was conducted on June 9 and the information presented in that meeting has formed the basis for this report as related to the Chad Export Project. The information and opinions presented in this report are those of D’Appolonia and are independent of those of the development Consortium, the Lender Group and the World Bank Group. 28 June 2001 -4- Highlights · The ECMG team did not identify any critical non-compliance situations such that damage was observed to a specifically protected sensitive resource or there was a reasonable expectation of impending damage. However, several Level 1 and 2 non-compliance situations have been identified by the Project EMP monitors. All of them were or are being addressed by the Project and/or EPC Contractors. · Significant progress has been done on several of the issues that had been mentioned during the 1st ECMG mission. (See Table 1 at the end of text) · In spite of TOTCO/COTCO’s and the contractors’ efforts to hire locally, a significant proportion of the workforce is non-local nationals. As a result, in-migration into the work area is taking place and is likely to increase in the next few months. The potential environmental and social impacts of these new communities, comprised mainly of Project workers and their families, need to be addressed more pro-actively, especially in Komé. · No significant progress has been made to address the concerns about the possible erosion at M’bere Bridge. A detailed erosion study is still needed so that the design can either be validated as is, or changed. · EMP monitors need to maintain a high level of vigilance for compliance with lower-level requirements such as PPE usage, road speed, road controls, etc. · Both Capacity-Building projects, in Chad and Cameroon, have started. · The ECMG noted that both Governments are interested in participating more actively in ECMG’s missions, and specifically in the close-out meetings. · Management of communications and relevant records should be improved between the Project and the civil society to avoid complaints and misunderstandings. · The Foundation is still not operational and this may have significant adverse impact to the IPP and the two Offsets in Cameroon. 28 June 2001 -5- DAILY ACTIVITY SUMMARY 7. Between May 29 and June 10, 2001, the D’Appolonia ECMG team conducted the second site visit and audit of the Chad Export Project in Chad and Cameroon and the assessment of capacity building programs in Chad and Cameroon. Specific activities were (see location map): § May 29 — ECMG group arrives in Douala. § May 30 — safety briefing, review of logistics, and project overview with COTCO in Douala, Cameroon; fly to Yaoundé where the group splits: one to visit construction operations at the Ngoumou storage yard and the other to interview COTCO medical staff; § May 31 — entire group reunites and attends meeting with Cameroonian government officials on capacity building issues (CAPECE, WBTA project) at the offices of the Cameroonian Société Nationale des Hydrocarbures (SNH); the group then splits in three, with one part attending a meeting of NGOs at the World Bank resident mission in Yaoundé, another flying to Dompla Camp in Cameroon to review public health issues at and around the Dompla Camp and the remaining team members flying to Bélel Camp in Cameroon to review the progress of infrastructure development and socioeconomic issues south of the Camp, as well as to attend presentations on road safety and borrow pit management; § June 1 — the portion of group remaining in Yaoundé attends a meeting at the World Bank resident mission with the members of the provisional Foundation (FEDEC) board and then travels to Kribi; the Dompla team reviews the contractor health 28 June 2001 -6- program and visits a typical local health facility; the remaining team members drive from Bélel Camp to Dompla Camp, join with the Dompla team and continue driving to the Mbéré River to review infrastructure development activities and socioeconomic issues. § June 2 — the portion of the team in Kribi visits the Campo Ma’an Unité Technique Operationelle (UTO) with representatives from the World Bank, MINEF (Ministry of Environment and Forests), a military delegation, COTCO and TROPENBOS; the portion of the team at Dompla Camp attends a presentation on the status of EMP monitoring by COTCO and infrastructure contractor Sogea-Satom and the ECMG team leader presents preliminary findings; after tour of Dompla Camp, the group departs by plane to Yaoundé; § June 3 — the portion of the team in Kribi attends a meeting with the participants of the previous day’s visit to the Campo Ma’an UTO at the Campo Ma’an Project office in Kribi; the remainder of the team drives to the Lolodorf storage yard and separates to visit local medical facilities and the infrastructure development around Lolodorf; this team then reunites to visit the sous-Prefect of Lolodorf and again separates with one portion visiting the Bipindi and Kribi storage yards and the other to interview Bakola Pygmies at several locations; the entire ECMG team reunites in Kribi; § June 4 — the entire team drives to COTCO’s offices in Douala, with a portion stopping at the Campo
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