Station Site at Kisiizi

RP195 Public Disclosure Authorized

THE REPUBLIC OF UGANDA

MINISTRY OF ENERGY AND MINERAL DEVELOPMENT Public Disclosure Authorized

ENERGY FOR RURAL TRANSFORMATION PROJECT

Expansion of a Micro-hydro Station at Kisiizi: Environmental Impact Study Public Disclosure Authorized

Final Report October, 2001

Prepared by: NORPLAN (U) Ltd. P.O.Box 7544 KAMPALA, UGANDA Tel: 257276, 34024415 Fax: 257861 Public Disclosure Authorized Email: [email protected] FiL | ^ Ministry of Energy and Mineral Development (MoE&MD) Environment and Social Assessment for the Rural Transformation Projects Page i

EXECUTIVE SUMMARY

Backqround There is growing demand for electricity in rural Uganda, which is currently not being met by the present supply. The Government of Uganda (GoU) and the Uganda Electricity Board (UEB) have recently introduced measures to decentralise the sector as part of a strategy to correct shortfalls and encourage private participation in the power market.

The World Bank (WB) is providing assistance through the Energy for Rural Transformation (ERT) project as part of a large initiative entitled African Rural Renewable Energy Initiative (AFRREI). The objective for the programme is to facilitate private sector involvement in supplying electricity as a catalyst for general rural development. The proposed Kisiizi mini-hydropower project in the West Nile falls under the category of 'independent grid systems in isolated areas' and is thus eligible for financial support through the programme.

The objective of this study was to conduct a scoping exercise in order to ensure that the first phase of the project would conform to GoU and WB guidelines on environmental and social safeguards. This en- tailed a review of an existing Business Plan and the Project Design and Cost Estimates Report, site visits and consultations with various stakeholders. The method used in appraising the project consists of three steps: evaluating baseline data, assessing impacts according to magnitude and duration, and arriving at an overall impact assessment. A review of the policy, legal and institutional framework is also provided.

Project Description The proposed Kisiizi Electrification project (Phase I) is a an expansion of existing micro-hydro station from 60kW to 250kW and construction of distribution lines to serve the surrounding communities. The present project is currently supplying the Hospital Energy needs.

The project is targeting; Kisiizi hospital, Kisiizi trading centre, Kisiizi market and the Kihanga area with a total peak demand of 182 kW. The local mini grid is to be extended to serve communities within a distance of 2km from the generation centre. The project will use local eucalyptus poles obtained from within their forest reserves within the site for construction of the 11 kV overhead lines.

The project is estimated to cost USD 0.5 million plus additional distribution costs of USD 0.2 million, proposes to manage billing system by using smart card boxes or prepayment wherby one gets automati- cally disconnected once the prepaid bill expires. The tariffs to be lev- ied have been studied and are expected to be affordable compared with the current expenditures on alternative energy uses.

Proiect Settinq The project is located at the Rushoma River, near Kisiizi Falls, Ru- kungiri District on the Rushoma River. There are no scale industries

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in the vicinity of the site and the resultant air and water quality is considered to be fairly high. Vegetation and wildlife were considered as having a low value along with the aquatic ecosystem and biodiversity for the region. This is primarily because the area is highly cultivated and inhabited by native Bakiga people. The majority are subsistence farmers practising customary land tenure and limited crop rotation. Kisiizi Falls are within freehold lands owned by the hospital of the church of Uganda. There is little in the way of cash crop or other economic activity except petty trading. A few of the households derive their livelihood from employment income. Services and infrastructure are poor to inadequate. As a result, the local population welcome the project as a development opportunity.

Proiect Impacts The most important impacts to consider are changes in river flow, water quality and aquatic ecosystem as a result of reduced flow between the intake and the outlet, and general changes in water conditions and characteristics. Impacts on vegetation, wildlife and other environmental issues are considered low or minimal.

Impacts on the human environment that warrant consideration are the loss of land and agricultural and eucalyptus production due to inundation by the reservoir. In addition, the creation of the reservoir may lead to increase in some water-borne diseases. Also influx of people into the project area may lead to an increased incidence of sexually transmitted diseases (STDs), including HIV/AIDS. Finally, the visual and aesthetic aspects of the rapids along this stretch of the Rushoma River will be diminished during the dry season.

The potential benefits of the project are also highlighted. Clearly the demand for a regular supply of electricity to Kisiizi hospital and surrounding areas is most welcome and should lead to considerable economic development as well as social improvements touching on very many aspects of people's lives. In investments in anticipation of the project being built, the value of land has gone up and investments seem to be increasing.

Recommendations In order to eliminate or reduce negative impacts a number of mitigation measures are recommended. They include restrictions on clearing for construction, erosion prevention, waste disposal, awareness creation.

There is spearheaded initiated need for optimising positive impacts through the employment of locals for non-skilled labour, improved infrastructure by the district administration and credit schemes initiated by NGOs in the vicinity of the project.

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TABLE OF CONTENTS

1 INTRODUCTION ...... 1-1

1.1 Background ...... 1-1 1.2 Objectives of the study ...... 1-2 1.3 Study team ...... 1-2 1.4 Methods ...... 1-2 1.5 Policy, legal and administrative framework ...... 1-4 1.5.1 Environment Management ...... 1-4 1.5.2 Wildlife Management ...... 1-5 1.5.3 Electricity Regulation ...... 1-5 1.5.4 Water Resource Management ...... 1-6 1.5.5 Land ...... 1-6 1.5.6 Privatisation and Investment ...... 1-6 1.5.7 Local Government Act ...... 1-7 1.5.8 Local Councils ...... 1-7 1.5.9 Private Sector, Civil Society Institutions, NGOs ...... 1-7 1.5.100ther Relevant Legislation ...... 1-7 1.5. 11 International Agreements (To be revisited) ...... 1-8 1.5.12 Donors and Financing Institutions ...... 1-8

2 PROJECT DESCRIPTION ...... 2-1

2.1 Project development objectives ...... 2-1 2.2 Studies and present state of the project ...... 2-1 2.3 Technical Description ...... 2-1 2.3.1 The Present Scheme ...... 2-1 2.3.2 The Proposed Scheme ...... 2-2 2.4 Alternatives to the project ...... 2-2 2.44.1 Extend the UEB National Grid ...... 2-2 2.4.2 Diesel Generation ...... 2-3 2.4.3 The Zero Option ...... 2-3

3 PROJECT SETTING ...... 3-1

3.1 Biophysical environment ...... 3-1 3.1.1 Location ...... 3-1 3.1.2 Air quality ...... 3-1 3.1.3 Water quality ...... 3-1 3.1.4 Vegetation ...... 3-3 3.1.5 Wildlife ...... 3-3 3.1.6 Aquatic ecosystem ...... 3-4 3.1.7 Biodiversity ...... 3-5 3.2 Human Environment .. 3-5 3.2.1 Human Population .3-5 3.2.2 Agriculture .3-6 3.2.3 Economy and Trade .3-7 3.2.4 Land Tenure and Administration .3-7 3.2.5 Energy .3-8 3.2.6 Health .3-8 3.2.7 Education .3-9 3.2.8 Other Services .3-9

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3.2.9 Cultural heritage ...... 3-10 3.2. 1OAttitudes to the projects ...... 3-10

4 PROJECT IMPACTS ...... 4-1

4.1 Impacts on the biophysical environment ...... 4-1 4.1.1 River flow ...... 4-1 4.1.2 Water quality ...... 4-1 4.1.3 Soil degradation and erosion ...... 4-2 4.1.4 Air pollution and noise ...... 4-2 4.1.5 Vegetation ...... 4-3 4.1.6 Wildlife ...... 4-4 4.1.7 Aquatic ecosystem ...... 4-4 4.1.8 Biodiversity ...... 4-5 4.1.9 Potential benefits ...... 4-5 4.2 Impacts on Human Environment ...... 4-6 4.2.1 Loss of agricultural land ...... 4-6 4.2.2 Resettlement ...... 4-7 4.2.3 Population influx ...... 4-7 4.2.4 Health risks ...... 4-8 4.2.5 Visual aspects ...... 4-8 4.2.6 Potential benefits ...... 4-9 4.3 Overall impact assessment ...... 4-11

5 RECOMMENDATIONS AND CONCLUSIONS ...... 5-1

5.1 Environmental Management Plan ...... 5-1 5.2 Mitigation Measures ...... 5-1 5.22.1 Minimum bypass flow ...... 5-2 5.2.2 Compensation plan ...... 5-3 5.2.3 Measures to optimise positive impacts...... 5-3 5.3 Proposed Monitoring ...... 5-4 5.3.1 Biophysical environment ...... 5-4 5.3.2 Human environment ...... 5-5 5.3.3 Monitoring plan for Kisiizi Waterfalls ...... 5-5 5.4 Conclusion ...... 5-6

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LIST OF TABLES

TABLE 3-1 PLANT SPECIES RECORDED IN THE PROJECT AREA ...... 3-3 TABLE 3-2 BIRD SPECIES IN THE PROJECT AREA ...... 3-4 TABLE 3-3 DEMOGRAPHIC FEATURES OF THE FORMER RUKUNGIRI DISTRICT (I.E.KANUNGU AND RUKUNGIRI) ...... 3-6 TABLE 3-4 MAJOR CROPS GROWN ARE DISPLAYED IN THE TABLE BELOW ...... 3-7 TABLE 3-5 THE SIX LEADING CAUSES OF DEATH IN THE DISTRICT ARE GIVEN IN TH E TA BLE BELO W ...... 3-9 TABLE 3-6 POPULATION SERVED BY A PROTECTED WATER SOURCE IN RUBABO COUNTY ...... 3-10 TABLE 4-1 OVERALL IMPACT ASSESSMENT ...... 4-7 TABLE 5-1: MITIGATION MEASURES OVERVIEW ...... 5-7

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ABBREVIATIONS AND ACRONYMS

AIDS Acquired Immune Deficiency Syndrome EIA Environmental Impact Assessment HIV Human Immuno-deficiency Virus km/s kilometre per second kmM2 square kilometre m2 ~square metre m3/s cubic metres per second masl metres above sea level MW Megawatt MWh Megawatt-hour NGO Non Government Organisations OD Operational Directive (World Bank) STD Sexually Transmitted Decease ToR Terms of Reference UNDP United Nation Development Programme USD United States of America Dollar WB World Bank

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ACKNOWLEDGEMENTS

The Environmental and Social Study Team, NORPLAN (U) Ltd. Con- sulting Engineers and Planners wishes to express gratitude to all the persons who were consulted for the useful contribution that made the studies successful. In this regard, the Commissioner of the Ministry of Energy and Mineral Development; Mr. Godfrey Turyahikayo, the As- sistant Commissioner of the Ministry of Energy and Mineral Devel- opment; Eng. Paul Mubiru are acknowledged. Gratitude is also due to Mr. W. Tibanyenda (Deputy Chief Executive Officer), Mr. Patterson (Hospital Finance Manager) and Mr. M. Mugume (Hospital Adminis- trator), for being very helpful and making very useful contribution to the studies. Local Officials and residents in the proposed Kisiizi project area were very responsive for which the team is grateful.

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1 INTRODUCTION

1.1 Background In order to meet the growing demand for rural electricity, the Government of Uganda (GOU) and the Uganda Electricity Board (UEB) has recently introduced measures to decentralise electricity generation as part of a strategy to correct serious shortfalls in performance. With one of the lowest per capita electricity consumption in the world (62 kWh/year) and with approximately 5% of households having access to grid-supplied electricity, the present rate of additional customs of 10,000 per year is not sufficient. With a population growth of 2% per year, 90,000 customers are required merely to retain the present low level of electricity consumption (ToR, p. 1).

The new Electricity Law provides for measures of 'unbundling' UEB and encourages private participation in the growing power market. This commercially oriented approach could have important consequences for rural electrification. The government has sought the assistance of the World Bank (WB) in implementing a new rural electrification strategy. This consists of the following elements:

* Level playing field for private sector participants

* Enabling regulatory framework

* Cost recovery and cost-based tariffs

* Subsidy transfer and financing mechanism

Energy for Rural Transformation (ERT) for Uganda is under a large WB initiative entitled African Rural Renewable Energy Initiative (AFRREI) whose objectives are to facilitate private sector energy development schemes in rural Africa and to utilise these schemes as a catalyst for general rural development. The ERT is a proposed 10- year loan programme that aims to provide rural households with reliable supplies of electricity and the benefits that come from this. In addition, rural enterprises should receive assistance in switching over from traditional other sources of energy. The global objective of the programme is the promotion of renewable energy. Each programme will have capacity building aspects and conform to GOU's and WB's social and environmental standards. These projects in general terms, fall into category 'B' of the WB assessments, that is projects with some impacts of the social and biophysical environments - (b) rural electrification.

The first phase of the ERT programme will have the following components:

Main grid related power distribution and generation, that is connecting rural areas to the main grid

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* Independent grid systems in isolated areas

* Individual or institutional solar photovoltaic systems (PV) in dispersed areas

* Pilot schemes for scaling up traditional energy uses

The Kisiizi micro-hydropower project at the Kisiizi Hospital in Rukungiri District in southern Uganda can be considered under the second component of this programme.

1.2 Objectives of the study

According to the ToR, the objectives are to ensure the investments for the first phase of the ERT comply with GOU and WB standards and social safeguard policies. In addition, recommendations for a framework for ensuring compliance of future projects within the ERT programme will be worked out based on reviews of this and other studies.

This particular study involves an assessment of the Kisiizi micro- hydropower project in Rukungiri District in relation to GoU standards, environmental legislation, regulations and administrative framework and WB's 10 Environmental and Social Safeguard Policies.

1.3 Study team

The study team comprised of both local and international consultants with backgrounds in Environmental Assessment in Uganda and with familiarity with WB projects and standards.

The core NORPLAN team consisted of:

Prof. Mary Okwakol- Team Leader/EIA Specialist Nakandha Dr. Stephen Sparkes Social Impacts/Resettlement Specialist Stephen Ajalu Physical Impacts/Material Engineer Katrin Lervik Environmental Planner/Hydrologist Gertrude B. Magezi SociologistVSocio-Economist Backstopping Quinto A. Ouma Technical advice on: Power generation; Power distribution; Transmission lines; Rural Electrifi- cation Deo R. Nkunzingoma Technical advice on: Environmental Legislation; Institutional Legislation and Regulations Lawrence L. Omulen Project administrative issues and technical advice on economic issues of the study. 1.4 Methods

Three main methods were used by the consultant in formulating this report:

. Literature review of reports, documents and other information about the project (see Section 2.2 below)

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* Site visit, including the project area (proposed reservoir and powerhouse, canals and penstock) and the Kisiizi Hospital site and surrounding areas

* Consultations with the Client, the developer, district officials, local leaders and project affected persons at the site and potential project beneficiaries.

The methods used for assessing project impacts and arriving at recommendations and conclusions is a method that NORPLAN has worked out on other EIA scoping studies. This is based on a three-step procedure making assessment of impacts, conclusions and recommendations more objective, easier to understand and possible to trace back if desired. The core of the procedure is to combine the 'value' of the affected environment and the 'magnitude of impacts' to arrive at an 'overall impact assessment'.

Step 1

Firstly, baseline conditions both environmental and social are described in detail and a value, on a scale from 'low value' to 'high value', is as- signed to the impact zones and the characteristics thereof. This value is related to international, national or local guidelines, standards and evaluations. In the case of the human environment, people, cultures and health can not be ranked in such a manner and, unlike the varying values of the biophysical environments, are all classified as having a 'high value'.

Low Medium High

… ------I------

Step 2

The second step is to describe and evaluate the magnitude of potential project impacts. The impacts are measured in terms of their extent in time and space, the vulnerability of the environments affected, the probability that impacts will occur and the reversibility of impacts. The magnitude of impacts is evaluated on a scale from 'high negative' to 'high positive'.

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'hase Magnitude of impacts on .. Negative Positive High Medium Little / no Medium High j ~ ~~~~~~~~~~~~~~~~~ I

Step 3

The third and final step is combining the "value" (step 1) and "the magnitude of impacts" (step 2) to obtain the "overall impact assessment" (step 3). This assessment evaluated the importance of an impact on a scale from "very large negative" to "very large positive". For instance, an area of 'high value' affected by a 'high negative impact' results in an overall impact assessment of 'very large negative impact', while an area of 'low value' affected by a 'high negative impact' may give an overall assessment of 'small negative impact'

1.5 Policy, legal and administrative framework This section discusses the policy, legal and administrative framework within which the TOR for the EIA for the Kisiizi Hydropower Project has been prepared. National and International environmental requirements and guidelines are discussed along with relevant international environmental agreements and conventions.

1.5.1 Environment Management Under the National Environment Statute, 1995 (GoU, 1995) the Na- tional Environment Management Authority (NEMA) is the principal agency in Uganda for the management of the environment and shall co-ordinate, monitor and supervise all activities in the field of the environment (GoU 1995a:18). NEMA is under the Ministry of Lands, Water and Environment, and has a cross-sectoral mandate and is also to review and approve ElAs.

NEMA has issued guidelines on ElAs (NEMA 1997). In 1998 'The Environmental Impact Assessment Regulations' (GoU 1998) was ap- proved by the Ugandan Parliament. The actual implementation of the EIA process remains a function of the relevant line ministries and de- partments, the private sector, NGOs and the general public.

The National Environment Statute, 1995 (GoU 1995a) provides tools for environmental management that hitherto had not been employed, including ElAs. The statute imposes a mandatory duty on a project developer to have an Environmental Impact Assessment conducted before implementing the project.

The EIA Regulations, 1998 (GoU 1998) specifies the types of projects to be subject to ElAs. An EIA should be conducted for planned activities that may, are likely to, or will have significant impacts on the environment. The EIA required should be appropriate to the scale

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and possible effects of the project, and therefor the Environment Statute recognises three levels of EIA:

1. An Environmental Impact Review shall be required for small-scale activities that Day have significant impact.

2. An Environmental Impact Evaluation for activities that are likely to have significant impacts.

3. A Environmental Impact Study for activities that will have significant impacts.

Determination of the level of the EIA required is done through the screening stage, and the National Environment Guidelines provide a checklist where environmental factors potentially affected are listed. This is a useful tool in the first stage in determining the category under which the projects fall.

1.5.2 Wildlife Management Uganda Wildlife Statute, 1996 sets out the procedure of declaring Wildlife conservation areas and sets out the purposes for which areas may be declared "Wildlife Conservation Areas". This statute es- tablishes a body corporate called the "Uganda Wildlife Authority" (UWA). The Statute designates the Authority as the Lead Agency for the purposes of the EIA and in consultation with NEMA is supposed to carry out Environmental Audits.

Section 16 of the Uganda Wildlife Statute, 1996 also requires an EIA. It states: "Any developer desiring to undertake any project which may have a significant effect on any wildlife species or community shall undertake an environmental impact assessment in accordance with the National Environment Statute, 1995." (GoU 1996:22).

This Statute is relevant for the operations of UEB or its successor companies especially for activities such as transmission and distribution line construction in areas designated as National Parks, Wildlife conservation and protected areas.

1.5.3 Electricity Regulation The Electricity Act of 1964 provided the Legal Framework for operation, empowered UEB to supply electricity to or take it away from any person inside or outside Uganda. The Electricity Act, Cap 135 had established UEB as a statutory power to exercise Corporate and monopoly functions relating to the generation, transmission, distribution, supply of electricity, licensing and other regulatory functions.

The Electricity Act 1964 was recently reviewed and the Electricity Act 1999 enacted. The Electricity Act 1999 creates the Electricity Regula- tory Authority (ERA) which is supported by a secretariat. The Act also allows for entry of private players in the Electricity Sector through a detailed licensing mechanism overseen by the ERA. The Authority has the power to issue licenses to any person intending to participate in generation, transmission and distribution of electricity. The sale,

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export and import of electricity are also licensable. However this Elec- tricity Act 1999 is not yet fully operational.

Kisiizi Hospital, as an Independent Power Producer (IPP), can be licensed to generate and sell power in accordance with its Implemen- tation and Power Purchase Agreements with ERA. The electricity act 1999 requires the IPP to pay royalties to the district Local Govern- ment in which the generating station is located.

Before the Electricity Regulatory Authority, issues a license for any of the activities supposed to be licensed under the Electricity Act, it shall require that the applicant first produces a certificate of approval from NEMA.

1.5.4 Water Resource Management The Water Statute, 1995 (GoU 1995b) provides for the use, protection and management of water resources and supply. The objectives of the statute are:

* to promote the national management and use of Uganda waters through the introduction and application of standards and techniques and co-ordination of all public and private activities that may influence water quality and quantity and

* to allow for the orderly development and use of water resources such activities as generation of hydroelectric or geothermal energy. (Rephrase).

1.5.5 Land The land Act 1998 provides for the ownership and management of land. It provides for four different types of land tenures (Customary, Leasehold, Mailo and free hold) and the procedure for applying for grant of any of these tenures. The Act provides that non-citizens of Uganda may only be granted leases not exceeding 99 years.

The Act inter alia provides that the construction of electric lines, dams and hydropower plants are public works. Any person authorised to execute public works on any land may enter into mutual agreement with an occupier or owner of the land in accordance with the act. (Not clear).

1.5.6 Privatisation and Investment The Investment Code Statute, sets out the procedure for an investment license and the kind of information to be included therein. It makes provision for the Investment Authority as a body corporate to distinguish between foreign and non-foreign investors. The code provides that Investment in the energy conservation industry is priority and requires the investor to perform an Environmental Impact As- sessment for approval by NEMA before the project is implemented.

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1.5.7 Local Govemment Act The Local Government Act 1997 provides for decentralisation and devolution of government functions, powers and services. The Act sets up the political and administrative functions of local governments. The Electricity Act 1999 authorises the ERA to delegate some of its licensing functions to local governments and to be paid royalties by the developers.

Rukunqiri District Administration Kisiizi Hydropower Project is located at Rushoma River in Nya- rushanje Sub county, Rubabo County in Rukungiri District. The district was created under the Local Government Legislation. Its top administrators include the Resident District Commissioner (RDC), the chairman Local Council Five (LC V) and the Chief Administrative Of- ficer (CAO).

Although technical expertise for hydropower project may not exist among the district officials, the Central Government will fill the gap by sourcing the required personnel.

1.5.8 Local Councils The Local Councils and the entire community in the project area are well organised. During the site visits, the local officials mobilised the community for consultations. They seem to have established good co-operative arrangements and therefore the capacity to deal with resettlement issues at the time of project implementation.

The Local Councils and the communities have the potential to participate in further studies of catchment area especially mobilisation although the capacity to deal with technical aspects does not exist. A village awareness seminar on social studies would enhance village capacity. This could be organised within the broad framework of the catchment studies, should it be finally decided to have it done.

1.5.9 Private Sector, Civil Society Institutions, NGOs Interested private sector institutions and NGOs will be given an opportunity to participate in project implementation. The Kisiizi Hospital Administration for instance, plans to hire a competent private com- pany to manage the sale of power. NGOs on the other hand have relevant experience in the district and could play an important role in carrying out some of the mitigation and monitoring activities, in particular related to social issues.

1.5.10 Other Relevant Legislation The Uganda Constitution, 1995

The Constitution of 1995, Articles 39 and 41 provide that everyone has a duty to maintain a sound environment. Every person in Uganda has a right to a healthy and clean environment and as such can bring legal action for any pollution or disposal of wastes. Chapter three section 245 stipulates that Parliament shall by law provide

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measures intended to protect and preserve the environment from abuse, pollution and degradation.

The Town and Country Planning Act Cap 30

This act provides for the orderly and progressive development of land in towns and other rural areas of the country. It defines building operations to include the making accessible of electrical installations and development in relation to any land. Any placing of new poles for transmission and distribution of electricity and construction of substa- tions would have to comply with the provisions of this Act.

1.5.11 Intemational Agreements (To be revisited). Uganda has signed and ratified several international agreements relating to the environment, both global and regional. They include the following:

a The Convention on Biological Diversity (CBD) has a major objective to ensure the conservation of biological diversity and the sustainable use of its components. * The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) seeks to ensure that the international trade in species of wild fauna and flora does not threaten survival in the wild of the species concerned. a Others such as the African Convention on the Conservation of Nature and Natural Resources (1968), signed the Protocol Agreement on the Conservation of Common Natural Resources (1982) and the Lusaka Agreement of Co-operative Enforcement and Operations Directed at Illegal Trade in Wild Fauna and Flora (1994).

1.5.12 Donors and Financing Institutions This scoping exercise follows international standards and procedures. It will therefore be possible, upon approval from NEMA, for developers to seek financing and donor support from private and government organisations.

The World Bank (IDA) has a range of relevant requirements and guidelines, including:

* Environmental Assessment Sourcebook (WB 1991a,b,c) and Up- dates (No.1-25). * Operational Policies (OP), Bank Procedures (BP) and Good Prac- tice (GP) 4.01, Environmental Assessment (WB 1999a,b,c) (re- placing OD 4.00 and OD 4.01, WB 1989a,b). * Operational Policies (OP) and Bank Procedures (BP) 4.04, Natu- ral Habitats (WB 1995 a,b). . Operational Policies (OP) 4.07, Water Resources Management (WB 1993a).

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. Operational Directive (OD) 4.20, Indigenous Peoples (WB 1991 d). . Operational Directive (OD) 4.30, Involuntary Resettlement (WB 1990a).

Similarly, the International Finance Corporation (IFC), which is the private sector arm of the World Bank Group, has adopted 'Environ- mental and Social Safeguard Policies' which are quite similar to the requirements of the International Development Association (IDA) of the World Bank Group. The 'Environmental and Social Safeguard Policies' of IFC consist of the following Operational Procedures (OP):

• OP 4.01, Environmental Assessment (IFC 1998a). * OP 4.04, Natural Habitats (IFC 1998b). * OP 4.10, Indigenous People (IFC 1998c). * OP 4.11, Safeguarding Cultural Property (IFC 1998d). * OP 4.12, Involuntary Resettlement (IFC 1998e). * OP 4.36, Forestry (IFC 1998f). * OP 4.37, Safety of Dams (IFC 1998g). * OP 7.50, Projects on International Waterways (IFC 1998h).

In addition, bilateral donors have their specific guidelines for incorpo- ration of environmental and social concerns in to project planning and implementation. This EIA has paid particular attention to Safeguards of the World Bank.

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2 PROJECT DESCRIPTION

2.1 Project development objectives The aim of the project is to upgrade the micro-hydropower project that is already at the site from 60kW to 250kW in order to meet growing demand at the hospital and to sell excess electricity to the nearby community and trading centre. The upgrading also aims at providing a reliable source of electricity in a sustainable and environmentally acceptable manner.

2.2 Studies and present state of the project There have been a number of studies for the proposed micro- hydropower project. The Consultant obtained the following documents of the previous studies for review:

* Sub-Project investments, Annex 3

* Business Plan

* Project design and Cost Estimates Report compiled by a Sri Lankan Consultant

* Socio-econom ic data was gathered by the District and is included in the District Development Plan (2000).

The present project status can be described as in the 'Feasibility Stage' of development pending social and environmental approval and financing. The Business Plan outlines a demand and the technical reports and studies provide detailed plans. Several consultant teams have visited the site and there are high expectations from local community.

2.3 Technical Description

2.3.1 The Present Scheme

The present micro-hydro electric power project at Kisiizi was built in 1986 and is currently meeting the Hospital energy needs. The project is a run-of-the river scheme using water diverted from the Rushoma River by a weir located some 10 m up stream of the Kisiizi falls. A small reservoir of approximately 80 m2 is formed behind the weir. The scheme consist of a concrete weir, a head-race channel at 90 de- grees to the river flow, a 90 m long open channel 1.2 x 1.0 m and a 75 m long, 350 mm diameter steel penstock leading to the power house.

The intake is not regulated and there is no desilting tank except for the trash rack installed across the channel upstream of the penstock entry. The existing channel has been designed to convey 0.26 m3/s to the turbine utilising a gross head of 31 m. The channel velocity has

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been estimated at 0.31 m/s. The hydropower station currently supplies the hospital with power using 1.2 km of an underground ar- moured transmission cables.

2.3.2 The Proposed Scheme The proposed project is a run-of-the river scheme with a capacity of 250 kW. The scheme will entail increasing the height of the existing concrete weir by 0.7 m and extending the riverbank walls (wing walls) a distance of 12 m up stream to create a reservoir. The fully open intake is to be transformed into a controlled intake with an opening of 1.2 m wide and 0.8 m height. A sluice gate will be introduced down stream to regulate the flow from 1.2 m3/s to 1.0. m3/s A new penstock will have a diameter of at least 600 mm. Furthermore, a desilting tank and forebay are to be introduced just before the intake to the penstock by widening the existing channel to 4.5 m.

The project is targeting four load centres namely; Kisiizi hospital, Kisiizi trading centre, Kisiizi market and the Kihanga area with a total peak demand of 182 kW. The local mini grid is to be extended to serve communities within a distance of 2 km from the generation centre. The project will use local eucalyptus poles obtained from within their forest reserves within the site for construction of the 11 kV overhead lines.

The hospital has a good reputation with the local communities and it does not want to get involved with debt collections and hence lose name. The project therefore proposes to manage billing system by using smart card boxes or prepayment whereby one gets automati- cally disconnected once the prepaid bill expires. The tariffs to be lev- ied have been studied and are expected to be affordable compared with the current expenditures on alternative energy uses.

The project is estimated to cost USD 0.5 million. No cost estimates for environmental and social mitigation and monitoring activities have been included. Furthermore, the costs for distribution is expected to cost some additional US D 0.2 million.

2.4 Alternatives to the project Other alternatives for improving power supply in the area are considered below.

2.4.1 Extend the UEB National Grid The nearest national UEB grid to Kisiizi is at least 25 km . According to the study conducted by ESKOM, a South African utility firm, extending the grid was considered a cheaper option. However, the current demand of electricity on the National grid exceeds the energy generated from the Owen Falls Dam. As a result of load shedding, most people will need a back up from the generators to make up for the power shortages. This option would therefore be viable only when the proposed Bujagali Hydropower project is completed in 2005.

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2.4.2 Diesel Generation Diesel power stations have high operation and maintenance costs because of the high cost of diesel and spare parts. The economic life of the diesel generators is low and the spare parts are usually difficult to get due to technology changes. Diesel power has also generation limitations making it difficult to extend to the potential load centres. Diesel power stations only operate for duration and at particular times of the day (e.g. 4 hours in the evenings). The demand for power during daytime is therefore not met. Finally, emission of gases from the diesel generators is a source of pollution.

2.4.3 The Zero Option The zero option assumes that no action is taken to improve the power supply in the area, i.e. the situation continues as today. First, the hospital energy demand has exceeded the present generated capacity. Secondly, most people in Kisiizi area utilise paraffin and dry cells as the main source of energy. This energy source is not only expensive but also limiting the development in the area.

There is a very high demand for power in the area. There is high initiative among the communities and most people are willing to pay.

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3 PROJECT SETTING

3.1 Biophysical environment

3.1.1 Location The Kisiizi micro-hydro power Project is located at the Rushoma River near Kisiizi Falls in Kisiizi Hospital, Rukungiri District. The site can be accessed by the main highway from Kampala to Kabale via Masaka and Mbarara towns branching of at Rubare town about 370 km, then travelling some 40 km on a narrow rough gravel road to Kisiizi Hospital.

The Rushoma river has got a catchment of 320 km2 at Kisiizi and it is part of the large catchment of 1746 km2 at Kanungu-Rwenshama area. The average peak and low flows at Kisiizi are 4.17 m3/s (Nov - Dec) and 0.83 m3/s (Jul- Aug) res-pectively. In general, the river has a flow of at least 1.0 m3/s during 10 months of the year.

The topography within the project site varies from 1600 m to 1650 m masl and the terrain can be described as rolling and undulating with gentle to steep slopes devoid of forest cover. The river flows through flat bottom valley bounded by gentle slopes that are cultivated and meanders slightly towards the falls.

3.1.2 Air quality No large-scale industries, urban areas or other major sources of air pollution exist in the project areas. The only source of air pollution is the burning of hospital waste at a small incinerator near the present powerhouse. Ambient air pollution levels are generally very low. Noise levels in the areas are low as there are no significant sources of noise. No air quality or noise measurements have been made. Air quality is considered to be fairly high.

Air Quality Value Low Medium High

3.1.3 Water quality In the absence of industrial activities and population pressure on catchment resources, the water quality of the river in the study area is generally good. However no water quality sampling was performed. The water is not used for drinking purposes due to relatively high levels of sediment and water quality is given the value medium for the Rushoma River due to the fact that the area upstream and in the project area is affected by human activities, in particular intensive cultivation along the right bank.

Water Quality Value Low Medium High

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MAP OF UGANDA SHOWING THE DISTRICTS WHERE ERT SUB-PROJECTS ARE LOCATED

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3. 1.4 Vegetation The vegetation classifications and descriptions still used in Uganda are based on concepts of Langdale-Brown and Osmaston (1967). Forest/savanna vegetation is found in many parts of Uganda and is dominated by elephant grass (Pennisetum purpureum) with isolated forest and savanna. This type of vegetation covers most of South- western Uganda, where Kisiizi is located.

The vegetation of Rukungiri District is typical grass-savanna with Acacia species dominating. There are also some forests doting most of the undulating hills and river valleys. However, Nyarushanje subcounty where Kisiizi is located is generally covered by Pygenum Moist Montane Forest, a high altitude Forest.

Table 3-1 Plant Species recorded in the Project Area

Catchment Area River Bank Diversion and Power House Eucalyptus species Acanthus pubescens Setaria sphacelata Truirafetta macrophylla Pennisetum purpureum Pinns sp Impatiens Eucalyptus spp Artocerpus nimniamiensis integritolia Pennisetum purpureum Melananthera sp Zea mays Eunsete ventricosum Acalympha sp Hibiscus sp Typha sp Arundinaria alpina sp Trinfetta macrophylla

The value of the vegetation in upstream of the intake is low, consist- ing of production forest (Eucalyptus) and cultivated areas with only a small section of the river having natural vegetation cover. There are no species of plants of regional or local importance in this part of the river. The vicinity of the waterfalls has its own ecosystem due to the constant spray and water.

Vegetation Value Low Medium High

3.1.5 Wildlife There are about 380 species of mammals in Uganda and a large diversity of birds, reptiles and insects. Wildlife in terms of larger animals is, however, very sparse in the project area, probably due to the human activities in the surroundings. The mammal fauna of the direct impact zone and the surrounding areas is dominated by small mammals. The locals reported that they were in the vicinity of the

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project.

The rivers and riverine vegetation, along with the surrounding areas, support various bird species, including the ones in Table 3-2 below. One bird species, the Slender-bill starling (Onychognathus tenui- rostris), is a unique bird found in the vicinity of the waterfall where it nests and feeds. This is not classified as endangered but Uganda has a regional responsibility for its survival. The local community reported few snakes in the area. Some men- tioned the presence of mangoose and wild cats.

Table 3-2 Bird species in the project area

Common Name Scientific (Latin) Name Crowned crane Baleanca pavonina Pied crow Corvus albus African hawk eagle Hieraaetus spilogaster Black kite Milvus migrans Black billed dove Turtur abyssinicus Glossy ibis Plegadis falcinellus Slender-billed starling Onychognathus tenuirostnis African pied wagtail Motacilla aguimp Black chinned qualfinch Ortygospiza gabonensis African mash owl Asio capensis Red necked spurfowl Francolinus afer

The major disturbance in the project area is indirectly caused by habitat changes resulting from extensive cultivation. Species adapted to forest habitats have disappeared whereas species adapted to grass- land and human presence are favoured. The local population also directly affects local wildlife through various forms of hunting. At present the most common wildlife in the area are birds, and therefore these are the most hunted item.

Overall, the diversity and abundance of wildlife in the project areas is low and heavily influenced by human presence. Small animals like giant rat dominate. The only larger animals reported were the mon- keys. All these species are common to the region and Uganda.

Wildlife Value Low Medium High

3. 1.6 Aquatic ecosystem Although Uganda has a large number of fresh water fish in its various lakes and rivers, the only few fish reported in the river that were harvested by the local community is Clarius spp. No reports of fish mi- gration or other species were reported in interviews. The waterfall

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acts, of course, as a natural barrier. Other acquatic organisms reported were frogs, crabs and worms.

Aquatic Ecosystem Low Medium High ValueI

3.1. 7 Biodiversity No species, habitats on ecosystems of particular conservation concern have been reported. There have not been any rare, threatened or endangered species identified. In general species diversity is low as the project area is disturbed by human activities. Overall assessment in the whole project area is rated at having a medium value since most of the impacted area is cultivated.

Biodiversity Value Low Medium High

3.2 Human Environment Rukungiri has been divided into two Districts of Kanungu and Ru- kungiri. The project is within Rukungiri which comprises of Rubabo and Rujumbura Counties. Kisiizi is in Rubabo County.

3.2.1 Human Population According to the 1991 Population and Housing Census, the total population of the then Rukungiri District was 390,780 persons of which 187,885 were male and 202,895 were females.

Kisiizi is in Nyarushanje subcounty whose population density range is 150-199 persons per sq. km.

Population Trends The population consists of a high proportion of children estimated at over 50% leading to higher overall dependency ratio of 113.8 compared to the national average of 102.5. By 1991 female population accounted for 52% of the total population of which 98% live in the rural areas. The major ethnic groups in Rukungiri are Bakiga 65%, Ba- hororo 29%, Bafumbira 2.9% and Banyankole 1.4% (Bahima). In Kisiizi the majority of the people are Bahororo but all are Bantu speaking ethnic groups.

Population Growth The population growth rate of Rukungiri is one of the highest in Uganda standing at about 4.0% (ref. Rukungiri district profile 1998). This reflects a high fertility rate. This growth rate is higher than the

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regional average of about 3.0 and the national level of about 2.5% per annum.

Population Density Although the project area has one of the highest population density (150 199 persons per sq. km) some of the other subcounties have sparse population due to the presence of National parks and game reserves. Table 3.3 shows key demographic features of the former Rukungiri district.

Table 3-3 Demographic features of the former Rukungiri district (i.e. Kanungu and Ruk ungiri)

Population Populat. Populat. Literacy rate (Age 10 plus) Census Male Female Total Density Growth 1991 % Year ('000) ('000) ('000) lnh./km2 p.a. 1969 117.09 127.49 244.58 94.7 - Male53.9 1980 142.97 153.58 296.55 114.8 1.85 Female 46.1 1991 187.88 202.89 390.78 151.2 2.51 Average 56.6 Source: Adapted from the 1991 Population and Housing Census Re- port

Settlements The settlement pattern in Rukungiri district is characterised by de- tached housing units (53%). These are either permanent or semi- permanent housing units. Up to 23% of the housing,units are mostly huts made out of temporary structures.

Within the project area, there exists at least 50 modern buildings within the Kisiizi hospital campus. Within a radius of about 1-2 kms from the project site there are over 300 individuals and of either permanent or semi-permanent structures. These households showed willingness to have power connected to their residences/shops at a reasonable cost.

3.2.2 Agriculture Agriculture provides livelihood to over 80% to the rural population in Rukungiri district. The 1991 population census indicates that between 80% and 83% of the families are involved mainly in crop and livestock production.

Agricultural production, which is predominantly rain fed, is carried out mostly on smallholdings using traditional technologies. In many areas there is a high level of land degradation on account of increasing population pressure and unsustainable agricultural practices.

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Table 3-4 Major crops grown are displayed in the table below. Crop Total Average Total Production (UT) Maize 1513.75 2724.73 Sweet Potatoes 1608.7 1624.8 Finger Millet 693.05 1384.10 Sorghum 970.43 2232.0 Beans 1255.8 2260.4 Groundnuts 4519.0 5423.0 Coffee 2720.0 2176.0 Tobacco 320.0 320.0 Bananas Source: District Environment Profile - Rukungiri 1998.

The project area of Rubabo county grows a lot of bananas. Inter- cropping is common although bananas, beans, finger millet, coffee and groundnuts are usually grown in pure stands. Physical degradation in agricultural land has led to declining output levels resulting into current problems of food insecurity.

Livestock: Management of Livestock is the second most important economic activity in the project area. Key livestock include cattle, goats, sheep, pigs and poultry whose numbers have been increasing over years. The most dominant livestock system is communal graz- ing. The highest number of cattle is in Nyarushanje (7075) followed by Kebisoni (6940) both of which are in the immediate vicinity of Kisiizi.

Fishing: The major fishing area is Lake Edward, which is shared between Uganda and Congo. It is far from the project area. There was no information regarding fishing activities within the Kisiizi River. However, a number of fishponds have been rehabilitated. There are 77 fishponds in Rubabo county.

3.2.3 Economy and Trade The economy of Rukungiri district is based on agricultural production. The majority of the people (97%) are involved in subsistence farming. By 1991 the economically active population stood at 61%. About 74% of the total households derive their livelihood from farming, followed by employment income (9.8%) and trading (4.8%). Only about 60,000 people (12%) of the total population in Rukungiri have been assessed for payment of graduated tax. This accounts for about less than 15% of the District income. The most significant cash crops are coffee and bananas. Livestock (cattle) is the second most important economic activity.

3.2.4 Land Tenure and Administration Within Rukungiri district, three main types of land tenure system exist. These are customary tenure, leaseholds and freehold. Customary tenure is the most widespread.

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Kisiizi Falls are within freehold lands owned by the hospital of Church of Uganda. This has some advantages in case of need for compensation or other development obstacles. There is only one landlord to deal with.

The dominant form of land use in the project area is small-scale of the total land area in Rukungiri district is under protected areas man- aged by the Uganda Wildlife Authority. In Rubabo county, there are no protected areas.

3.2.5 Energy The main source of energy in the district is fuelwood which accounts for about 93% of the mean monthly household fuelwood consumption. The main source of charcoal is Nyarushanje subcounty where Kisiizi parish is found. Only a few places in the district have substan- tial bio-mass for charcoal production. There is a danger, therefore of depleting the available tree stock, which may lead to increased land degradation.

There is a limited supply of electricity mostly to Rukungiri town via a 32 kVA powerline. There about 600 consumers. There is virtually no supply to the rural areas apart from the supply to Buyanja with just over 30 consumers.

Some power is generated at Kisiizi Falls but is privately owned by the local hospital. There have been demands for the extension of the Kisiizi power scheme to accommodate a bigger area and serve more potential customers.

The district gets petroleum products from Kampala depots. By 1997, the combined supply of petroleum product in the district was 88,430 litres of petrol, 51,638 litres of diesel and 46,010 litres of kerosene. Kerosene is the most widely used fuel for lighting purposes.

3.2.6 Health The Health condition of the people in the Project area is not different from other districts in the country.

Table 3-5 The six leading causes of death in the district are given in the table below. Disease/Condition Percentage of Disease Burden

1. Malaria 29.7 2. HIV/AIDS 17.5 3. Material and Peri-natal Mortality 16.4 4. Pneumonia 10.9 5. Diarrhoea Diseases and Dyenstry 6. Tuberculosis 4.2 Source: Community Diagnosis Survey, 1994

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There are three hospitals, six-health centres, six dispensaries in the district. In Rubabo county, where Kisiizi is located, there is one NGO hospital, one health centre, two maternity units and five subdispensa- ries.

3.2.7 Education There was a dramatic increase in primary school enrolment at the introduction of UIPE in 1996. There was a 2% decline in enrolment by 1998. The enrolment in 1998 was 65,673 boys and 64,187 girls.

There is a high dropout rate in the district most of which are ill - equipped. As a result student performance is generally poor.

Enrolment in secondary schools is low particularly for girls. The female population aged 20 years and above who completed secondary education is 4% compared to 20% for men.

3.2.8 Other Services The low level of development of infrastructure in the district is seen as one of the major hindrances to development. Most of the roads are in a poor state, making travel during the wet seasons difficult. There are no telephones in the project area but -the hospital has a satellite link for E-mail that is used once a day. Radio contact is also a means of communicating with the outside world.

Housinq and Sanitation The district has very few designated urban centres. Settlements in urban centres are neglected and often congested. The majority of the dwelling units 59.8% were of a temporary structure (1991 census) while semi-permanent dwellings accounted for 36.9%. The majority of the dwelling units (87%) are owner occupied.

Sanitation The 1991 census showed that 89% of the county households had pit latrines. Rubabo county, Nyarushanje sub-county has an 83% pit la- trine coverage. It is one of the highest in the districts. Water Supply Some areas in the district have limited potential accessing safe water. Rubabo county is one of those which are better served with safe water. Percentage of population served by a protected water source in Rubabo is shown in table.

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Table 3-6 Population served by a protected water source in Rubabo County Subcounty Total Population Percent served

1. Nyarushanje 35,601 34.8 2. Nyakishenye 27,205 62.6 3. Kebisoni 24,417 35.9 4. Buyanja 31,460 46.7 Source: Water Department, Rukungiri District 1994.

As a result of the water shortage both people and livestock crowd around the few available safe water sources including Kisiizi Dam.

3.2.9 Cultural heritage Kisiizi Falls were used by the community to banish girls who became pregnant outside wedlock. This practice however was abandoned in 1916 when the victim pulled her brother and they perished together. Currently the falls are a tourist attraction and the hospital vision is to preserve it at all costs.

3.2.10 Attitudes to the projects There have been several demand studies undertaken for the project. Not only do the local residences say that they would be willing to pay for electricity in lieu of their present use of generators and paraffin, but there would be a number of benefits to small businesses, 3-4 schools in the vicinity and lights for the market at Kisiizi Town.

Interviews with affected persons at the site revealed that those interviewed welcomed the project as a development opportunity.

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4 PROJECT IMPACTS

4.1 Impacts on the biophysical environment

4.1.1 River flow The increased capacity will in the dry season divert a large portion of the natural flow into the channel, hence the bypass flow pass the falls will be dramatically reduced. There is no mention of any minimum bypass criteria in the reports available.

The impacts of reduced flow past the falls are not known in detail, but are expected to affect:

- microclimate past the falls in terms of reduced spray, lower humidity, changes in temperature. How this change again will affect the ecosystem, vegetation and biodiversity is unknown as there is little detailed data about the falls.

- the eastethic aspect of the falls. The falls are well known and attracted by tourists, and this will change with increased diversion

The impacts of the reduced bypass flow should be studied in more detail, and should emerge in detailed recommendations on what should be the minimum bypass flow in the dry season. This study should be linked with the economical viability of the project. Further studies should also emerge in recommendation for the technical design of the intake structure, ensuring the possibility of detailed operation of bypass in dry season

Impacts on river flow are expected to be minimal during construction, but could be medium negative during operation, depending on the minimum bypass flow criterions.

'hase Magnitude of impacts on river flow Negative Positive High Medium Little / no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.1.2 Water quality During the construction period there will be local water quality changes, Handling of fuel, oil, lubricants and other chemicals implies a risk of spills and accidents, which could have local neg ative impacts on water quality. Water quality changes will mostly have short-term duration during and soon after the construction phase.

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The magnitude of impacts on water quality is expected to be little - medium negative during the construction phase and minimal during long term operation.

Phase Magnitude of impacts on water quality Negative Positive High Medium Little / no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.1.3 Soil degradation and erosion All areas disturbed during construction phase are likely to experience some soil degradation (compaction, erosion). The magnitude of impacts on soil degradation and erosion is expected to be a little negative during the construction phase and minimal during long-term operation.

In discussions with the hospital administration, the topic of catchment management was discussed. Increased agricultural activity in the catchment might lead to increased erosion and a higher sediment load. This will affect the lifetime of the turbines. No intake or forebay tank is designed, so there is nowhere sediments can settle and be removed. The 900 intake channel will prevent the largest sediments to enter the hydroelectric plant.

Phase Magnitude of impacts on soil degradation and erosion Negative Positive High Medium Little / no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4. 1.4 Air pollution and noise Construction activities will result in only minimal local increase in air pollution due to burning of fossil fuels from the temporary diesel generator and construction activities in general. There will be some noise disturbance during project construction that will affect nearby communities and wildlife. The impact is considered little-medium negative during construction.

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'hase Magnitude of impacts on air pollution and noise Negative Positive High Medium Little /no Medium High I I li i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.1.5 Vegetation No areas of high value will be affected during construction. The major concern is the reduction of water flow over the waterfall and the micro ecosystem in the vicinity of the waterfall during the operation phase. There will be some changes in species composition towards more droughts tolerating plant species along the river and species less reliant on the humid environment of the waterfall and the spray. Due to the rather steep sloping riverbanks, the belt of vegetation that will be affected is small. There will, however, be a reduced river flow downstream of the falls and over the falls itself (approximately 90 metres in length). The magnitude of impacts is estimated as medium negative during project construction and possibly medium during project operation (permanent impact), the latter depending on further studies and the agreed upon minimum bypass flow.

It is anticipated that if the project is constructed, there will be some influx of people seeking employment and other opportunities in association with the project, but may not be considerable given the relative isolation of the project area and the nature of upgrading an existing hydropower scheme. These people will need food, water, energy and shelter, which will increase the pressure on various natural resources by direct harvesting of natural resources and changes in land-use (e.g. collection of wood fuel, increase in and intensification of subsistence cropping). This is expected to be the most serious impact on terrestrial vegetation. The impacts may be small to medium negative and may be both short-term and long-term.

Increasing and stabilising the water level by dam construction will inundate an area upstream of the dam. Some vegetation will be permanently lost and surrounding vegetation will experience changes in species composition towards more riparian species. No unique flora or sites of particular importance for the local population have been identified in this area. Impacts are expected to be small negative but permanent. The land in the inundated area is owned by the hospital (Church of Uganda) and is presently being used by hospital staff for gardens to supplement income. Alternative sights should be available in the same vicinity.

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'hase Magnitude of impacts on vegetation Negative Positive High Medium Little / no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.1.6 Wildlife During the construction period there will be some habitat destruction and general disturbance causing the displacement of some species. However, since the area for the proposed project is already highly cultivated and large mammals are very rare, impacts due to change of land use will be small negative but long-term. In general, animals which are less mobile (often small animals) or species requiring habitat types with limited distribution will be more seriously affected than larger and often more mobile species (for instance many bird species).

With the anticipated population influx, the demand for natural resources such as fuel wood, building materials (e.g. poles and thatch- ing grass), land for cultivation and game for meat will increase. Birds, being more mobile than mammals, are likely to be less affected by the construction and changes to the environment.

'hase Magnitude of impacts on wildlife Negative Positive High Medium Little / no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.1.7 Aquatic ecosystem Impacts on aquatic ecology will arise from changes in the natural flow regime in a short section of the river and water quality changes. Spills of liquid hydrocarbon fuel from trucks and the transfer from trucks to storage facilities pose a hazard. Other petroleum products associated with equipment maintenance (e.g. hydraulic fluids, oil, solvents) and chemicals are used in relatively small quantities. These fuels and chemicals, as a rule, are damaging to aquatic organisms.

The most important changes in water quality in terms of aquatic life are increased sediment load and pollution during the project

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construction phase. This will result in temporary avoidance by aquatic life of some areas just downstream of construction activities in the river. Water quality impacts on aquatic life are likely to be small and short-term.

Construction of the dam will result in reduced river flow along the 90 metre stretch between the intake and the outlet. Depth, cross sectional area and velocity will be changed. The changes will be most pronounced in the dry season when the largest proportion of the river flow will be diverted. The exact amount of water in this section of the river will be dependent on the future hydrology of the river.

Parts of the riverbed will become dry at least parts of the year, reducing potential available habitat for aquatic life. There will be a decrease in available aquatic habitats and aquatic life in the short river section under consideration. The magnitude of impacts will be small negative and long-term.

'hase Magnitude of impacts on aquatic ecology Negative Positive High Medium Little / no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4. 1.8 Biodiversity No species of particular conservation concern have yet been identified in the project area and therefore no major negative impacts are expected on biodiversity. However, further studies of the ecosystem near the waterfall should be undertaken to confirm this.

'hase Magnitude of impacts on biodiversity Negative Positive High Medium Little / no Medium High j~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4. 1.9 Potential benefits Creation of a small reservoir will favour some aquatic species (for instance invertebrates and fish) and birds adapted to more slow flowing conditions rather than rapid flowing conditions that dominate the affected stretch of the river at present. This impact is considered small positive for these species.

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'hase Magnitude of impacts - potential benefits Negative Positive High Medium Little / no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.2 Impacts on Human Environment

4.2.1 Loss of agricultural land There will be a permanent loss of some land due to inundation by the reservoir. This will comprise approximately 2 hectares. Most of this land is at present agricultural land, cultivated/fallow fields with a small section of Eucalyptus production forest owned by the hospital on the right bank of the river just before the intake. The exact amount of land needed for project construction and operation is not yet defined pending final layout.

A study of the Environmental District Profile revealed that during drought both livestock and people crowd around the few available water sources including Kisiizi dam. On completion of the dam, access by both livestock and humans will be prohibited otherwise the rate of siltation will increase.

Compensation will be required for the loss of agricultural land and crops. Some of the land take may only be temporarily (during project construction) and the land will be available for agricultural production after project construction - camps and storage places, etc. In future, cultivation around the reservoir should be carefully controlled or prohibited in order to avoid soil erosion that leads to dam sedimentation. Hence some people may lose agricultural land above the reservoir. Loss of agricultural production associated with the construction phases also needs to be compensated in a fair and timely manner. The magnitude of impacts on agriculture is medium negative during project construction and small negative during project operation.

3hase Magnitude of impacts on agriculture Negative Positive High Medium Little / no Medium High j~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~F

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

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4.2.2 Resettlement There is no need for resettlement in the project area. No settlements or buildings are located in the direct impact zone. However, since some agricultural land will be inundated, relocation of households dependent on this land (owned by the hospital but used by staff for gardens) may chose to move closer to their new fields. Further clarification of this issue is necessary but it is not expected that more than a few households may choose to relocate. However, for distribution of power to neighbouring communities there is likelihood of temporary displacementland take to make way for powerlines. Hence the rating of little impact during the construction and operation phases.

'hase Magnitude of impacts on resettlement Negative Positive High Medium Little / no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.2.3 Population influx Part of the skilled workforce will be imported as not all required labour can be met in the project area. All non-skilled labour should be covered by the local communities. In addition to this small influx of the actual workforce, the influx of people seeking employment directly from the project or indirectly from the increased economic activities in the area will occur. Population influx is likely to cause a small 'boom-town' phenomenon. Typical characteristics of such situations are sudden increase in demand and needs for various goods and services, both physical (e.g. housing, food, energy, water, transport, waste disposal and social (e.g. health, education, law enforcement, entertainment). It is no expected that this result in a large population increase given the relative isolation of the project area and the small amount of extra power that will be available.

Population influx will put some additional strains on already inadequate facilities and services. However, the small scale of the project is likely to avoid major and long-term social disruption and severe socio-economic impacts. The impacts could be significant during the construction period, when the magnitude is expected to be medium negative, while impacts are small negative during project operation.

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'hase Magnitude of impacts of population influx Negative Positive High Medium Little /no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.2.4 Health risks The creation of the reservoir and changes to the aquatic environment may lead to an increase in some water borne diseases (Malaria and possibly encephalitis and schistomiasis) but may limit incidence of others such as river-blindness (Onchocerciasis). In addition, if proper water supply and sanitary conditions are not put in place during construction, the population influx might result in negative health impacts. Also, influx of people into the project area may lead to an increased incidence of sexually transmitted diseases, including HIV/AIDS. Safety issues (increased traffic, electrocution and accidents caused by machinery) are also a concern. The magnitude impacts is expected to be small to medium negative during project construction and negligible during project operation.

'hase Magnitude of impacts on health Negative Positive High Medium Little / no Medium High j~~~~~~~~~~~~~~~~~~~~~~~~~ I

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.2.5 Visual aspects Dam construction, enlarging the canals and other activities will result in some minor changes in topography and other landscape characteristics. Secondly, during construction the falls area may not b easily accessible to members of the public. The reservoir will change the landscape significantly, submerging cultivated areas but little in the way of forest or land with aesthetic value. Thus small to medium negative impacts are expected during the construction phase and small negative impacts during the operational phase, both upstream of the dam and to a minor extent due to the presence of transmission lines to households along the road and to the trading centre.

The major touristic attraction in the vicinity of the site are the Kisiizi waterfalls. During times of drought there may not be enough water flow to run both the power station and waterfalls. With regard to the waterfall, the reducing in flow could have serious consequences on

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the immediate environment and the micro ecosystem in the vicinity. A careful study of this ecosystem should be undertaken to ensure that all is done to preserve it and the vegetation and wildlife found in this area. From an aesthetic point of view, the reduction of flow over the falls after operation will have a medium to high negative affect in the dry but will be far less noticeable during the wet seasons. Again further studies should be conducted to confirm this assumption.

'hase Magnitude of impacts on visual aspects Negative Positive High Medium Little / no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

4.2.6 Potential benefits * The generation of a reliable supply of electricity in Kisiizi will have enormous positive benefits for the region. However, it is necessary also to ensure that benefits also reach affected communities and they do not lose out on any development opportunities.

* Besides receiving more power, the hospital will generate income from sale of extra power. This income will be used to improve remuneration of staff thereby mitigating the current high turnover.

* The project will require a number of wage labourers during the construction phase, but few people will be needed to operate the power plant. Other long-term employment opportunities may, however, result from an expanded local economy.

* The construction of the project and the presence of the labour force will increase the demand for food and basic consumer goods. This increase will be beneficial to farmers who can increase their produce and sell surpluses on the local markets. For a few people, the growth in retail business will provide opportunities to expand businesses such as restaurants, guesthouses, shops and stalls selling basic goods and small business enterprises.

* The present population in the project area is poor and basic social services are inadequate. The project might act as a catalyst to improve the general welfare of the people. The magnitude of impacts during project construction is expected to be medium positive and small positive during project operation.

* Improved power supply for Nyarushanje subcounty will increase investment in electrical equipment which is inevitable if electrification is to lead to increases in productivity.

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* Power supply to households in and around the mini grid will fall into three categories: those within the grid areas and are connected. These will be consumers and business persons in higher income brackets. These will benefit directly both economically and socially.

* There will be those within the grid areas but are unconnected, These belong to the lower income brackets. The third category will be those outside the grid area, households of all incomes and are not connected. Those will make up the majority. These two categories of households will have indirect benefits of the hydropower hence the widest impact.

* Power supply will enhance local demand for agricultural produce. Currently, agricultural crops are harvested and sold off unprocessed and yet some farmers would prefer to process their produce for higher values. Reliable power supply will stimulate them into small processing activities.

* Communities are yearning for cold storage facilities, car-baftery charging, baking, photocopying studios, refrigeration and recreational facilities are limited and expensive. These will expand once power supply is abundant and reliable; hence people's income will increase and the quality of life will improve as well.

* Upcountry communities suffer higher prices because power supply and transport costs are high. Power supply will lead to a reduction in transaction costs and the prices of customer goods and production inputs.

* The quality of education in the project area is particularly disadvantaged due to lack of power supply. Children in boarding schools in this region have limited lighting hence shorter periods of study compared to their urban counterparts. All children in the project area are not exposed to the media. Power supply will open them up to the new world.

* The potential to introduce telecommunications is high with improved power supply, the communities in the subcounty will have been connected to a wider world and will get new ideas in social and economic development.

'hase Magnitude of impacts - potential benefits Negative Positive High Medium Little /no Medium High

i - Construction phase including the pre-construction phase (short-term). ii - The long-term operation phase.

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4.3 Overall impact assessment The overall impact assessment, combining the values discussed in Chapter 1 with the magnitude of impacts described in this chapter, is shown in Table 2-1 below. Given the scale of the project and the fact that it is merely an upgrading, most impacts are quite low. The major concern is the ecosystem of the waterfall and how unique this is in terms of vegetation and wildlife and the resultant aesthetic and tourist value the falls have. Without further study accurate estimates of the value of biodiversity and other characteristics on the biophysical environment are uncertain.

Table 4-1 Overall Impact Assessment

Overall Impact Aspects Value Magnitude of Impacts * Assessment Biophysical environment

River flow Medium i - Little/no Medium negative ii - Medium/high negative impact

Water quality Medium i - Medium negative Small negative ii - Little/no impact i- Medium negative Salngtv Soil degradation Medium Small negabve /erosion ii - Little/no impact Air pollution/noise Medium i - Small negative Minimal/no impact ii - Little/no

Vegetation Medium i - Medium negative Medium negative ii - Medium negative impact i - Medium negative Medium negative Wildlife Medium Mdu eav ii - Medium negative impact i - Medium/small negative Small negative Aquaticecology Low Salngtv ii - Small negative impact Biodiversity Medium i -Small negative Medium negative ii - Medium impact i - Little/no benefits Potential benefits Medium Little/no benefits ii - Little/no benefits

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Human environment

Agricultural Medium- i - Small negative Small negative high ii- Small/medium negative impact i - Little/no Resettlement Medium- Little/no high ii - Little/no

Population influx Medium - Small/medium negative Small negative ii - Small negative impact i - Small/medium negative Small negative Health Medium Salngtv ii - Small negative impact

Visual aspects Medium- i - Small negative Medium negative high ii - Medium/high negative impact i- Medium positiveMeimpstv Potential benefits Medium Medium positive i - Medium positive impact

* Magnitude is in terms of i) construction phase, and ii) operational phase.

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5 RECOMMENDATIONS AND CONCLUSIONS

5.1 Environmental Management Plan The Hospital Administration should establish a management environment unit to oversee environment issues during both construction and operation. An environmental monitoring plan should be devel- oped, on the basis of the monitoring and mitigation measures recommended below. Detailed schedules, budgets and responsibilities should be allocated.

5.2 Mitigation Measures The following measures are recommended to reduce or eliminate negative impacts:

* Clearing for construction activities shall be confined to those areas designated and marked. If clearing of sensitive slopes and land adjacent to rivers is necessary, this should be done by hand clearing. The construction area should be fenced off so as to avoid any unplanned, additional land take and reduce the risk of accidents. A temporary alternate access to the bottom of the falls should be made to ensure continued enjoyment of the touristic site. * Restrictions on land use around reservoir should be established with the long-term goal of reducing erosion. This should be part of a catchment management strategy with the goal of prolonging the life of the reservoir by limiting sedimentation. Full compensation for crops destroyed/temporary landtake during extension of powerlines should be done. * Awareness raising and preventive health campaigns should be carried out to reduce the threat of the spread of various diseases. Sanitary problems must be controlled during project construction by providing adequate sanitary amenities like latrines and provision of safe drinking water if necessary. Work practices and safety should be monitored. Alternative safe sources of water for both livestock and humans should be established to ensure that the dam is not invaded. Consideration for introducing appropriate species of fish in the reservoir should be done. * It is recommended that engineering requirements regarding drainage/erosion prevention and construction techniques for all construction actions be strictly enforced. These will include the provision and maintenance of suitable drainage networks, slope control, compaction or re-vegetation of exposed surfaces and protection of surfaces prone to submersion by water. All waste materials, garbage and debris shall be removed and disposed of by incineration or landfilling, whichever is appropriate. Fuel shall be stored in specified areas only. Refuelling, oil changes and lubricating mobile equipment shall be conducted

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on a pad that drains into a temporary retention pond. • It is not recommended to introduce fish species in the reservoir. The size of the reservoir is small and so will additional catches due to such an introduction be. Introducing a new species is highly undesirable from an ecological point of view. The reservoir size should be of such a size to withstand the twenty year return drought to ensure that the falls always have adequate water. * Alternative safe sources of water for both livestock and humans should be established to ensure that the dam is not invaded. Consideration for introducing appropriate species of fish in the reservoir should be done. * Local communities should be involved in the discussions leading to the design and laying of distribution lines (community participation). * Works in submerged work places should have protective clothing to avoid infections from water-borne diseases e.g. bilharzia, worms etc. * Workers should have access to the facilities at the Kisiizi Hospital. * To avoid a contractor's camp and associated health problems, workers should be encouraged to rent private accommodation in the nearby trading centre/villages, efforts to recruit local labour should be encouraged.

5.2.1 Minimum bypass flow The issue of a minimum bypass flow (MBF) is vital since it influence all the salient issues of vegetation, wildlife and biodiversity as well as visual and aesthetic aspects. These areas should studied more in detail, to identify a suitable criterion for MBF.

Issues to be studied are:

- further ecological/vegetation studies in and around the waterfalls

- wildlife/biodiversity issues

- visual and aesthetic aspects

- hydrological dry season conditions

- economical viability

The dry season flow is essential for this study. Previously there has not been regular flow recordings for the Kisiizi river, and data from neighbouring rivers have been used and scaled. This might give mis- leading information, and for a study of dry season flow and MBF it is not sufficient. From Jan 2000 weekly recordings has been done on the river stretch upstream the intake, and the dry season recording should be studied in detail. If one more dry season can be included that would strengthen the data series. The data series has not been made available for this study.

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The study of the environmental components near the falls will give if there are high-value findings which might risk medium-large negative impacts due to the planned water abstraction in the dry season. The recommendation on MBF and on the design of the intake arrangement should be related to these findings. The economical viability of the hydropower project should also be included in the assessment. The recommendation on MBF should be a weighed decision based on the relationship between the cost-benefit ratio for the HPP and magnitude of the environmental impacts.

A preliminary recommendation for MBF can be based upon the his- torical hydrological series, as it is a proven value of what the local ecosystem can manage. The MBF should temporarily be set to equal the monthly average flow of the driest month in the year, until further studies has been carried out. The exact figure of the driest month flow should be extracted from the new data of weekly recordings. The intake should be designed to ensure that the MFB criterion will be kept.

5.2.2 Compensation plan If any resettlement is carried out (maybe only voluntarily as a result of inundation of fields), it should be according to international standards (WB) and with the overall objective of improving the standard of living for those being resettled. All buildings and materials should be replaced and suitable sites chosen as close as possible to the original homesteads, or in other locations after consultation with affected persons. Compensation in cash is usually discouraged in relation to resettlement but in this case may be acceptable since materials are readily available in the area for the construction of new dwellings.

Compensation for lost crops and permanent loss of land should be provided following NEMA or international standards. Cash compensation is the mostly likely means of compensation for the loss of production.

5.2.3 Measures to optimise positive impacts In order to optimise positive impacts of the project, the following is recommended:

• The Contractor should recruit non-skilled labour only from the local villages and in close co-operation with the local authorities as long as required the skills are available. * The resident population, for the most part, lack adequate resources to take full advantage of the changes the project will cause. Rotating credit schemes for businesses and local entrepreneurs and co-operation with local authorities to tackle the new situation would allow for greater benefits to the local population. However, this would have to be set up well before the project commences in order to reap benefits. * Co-ordination with local and district authorities regarding improved infrastructure development could enhance mitigation

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measures dealing with health, drinking water supply, education, electricity supply and general social uplift. This emphasises that the project could become a development opportunity with long- term, positive implications for the project area and the region.

Table 5-1: Mitigation measures overview

Issue Mitigation measure Responsible party Erosion of slopes Hand-clearing of sensitive Contractor slopes and general precau- tions regarding erosion prevention Catchment management Measures to preserve vege- (hospital) tation, reduction of agricultural activities and perhaps minimal relocation of households Health issues Awareness programme - (hospital) traffic safety, sanitation issues and STDs - possibly an extension of existing awareness programmes in the area Waste materials Disposal of waste in burrow Contractor/owner areas, landfill or incinerator. Fuel and pollution Fuel storage in specified Contractor/owner areas; refuelling and oil changes plus lubricating equipment on a pad. Minimum Bypass Flow Compensation Cash compensation for lost Owner crops and permanent loss of land; NEMA and World Bank standards. Employment Recruitment of un-skilled Contractor/Owner labour only from local communities Credit schemes Revolving credit schemes for NGOs, Micro-financial local entrepreneurs. Institutions District development Infrastructural development Local Authorities. 5.3 Proposed Monitoring

5.3.1 Biophysical environment Water quality and Hydroloqy It is recommended that water quality samples are taken before the hydropower projects commences in order to provide a basis for monitoring subsequent changes. Samples should also be taken during construction and continue into the operational phase.

The water flow recordings should be continued on a weekly basis. Af- ter construction is completed measurements should be carried out both upstream and downstream of the intake to record total flow and MBF.

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Flora Monitoring of terrestrial vegetation is important to measure habitat changes and excessive exploitation of natural resources. Focus will be on the area around the waterfall. During construction, areas that come under additional pressure due to population influx and increased demand for various natural resources for food, energy and building materials should also be considered.

5.3.2 Human environment Monitoring the human environment will focus primarily on economic and health issues. The most outstanding issues are how the project affected people cope with the influx of workers and outsiders, and the possible health consequences. The risks of impoverishment due to resettlement and the impact of a large, more educated and better trained group on a resident population are many. Continued monitoring of number of visitors to the falls should be done. Monitoring of the local communities, population growth, gender, public health and other disease vectors should be carried out systematically. Compensation

Compensation for land and loss of crops needs to be monitored during the pre-construction phase and to a limited extent during the construction and the start of the operation phase since some of the land will be returned. Monitors will need to check whether individual farmers have received proper and prompt compensation according to district rates and/or been given other land to cultivate on a temporary or permanent basis. If resettlement is chosen by affected households, the same follow-up on compensation should be undertaken.

Health

A number of health issues are vital to the safety of the people during the construction and operational phases of the project. It is recommended that monitoring be ongoing but that more thorough checks be made during the construction phase.

5.3.3 Monitoring plan for Kisiizi Waterfalls In this section brief overview of the possible contents of a monitoring plan for Kisiizi Waterfalls is presented. The goal of such a plan is to ensure that mitigating measures are satisfactorily carried out and that regular monitoring is undertaken in a systematic and responsible manner for the ecosystem. In order to achieve this it will be necessary to work together with the hospital (project owners) and local authorities who will most likely to implement the plan and co- ordinate efforts with contractors and stakeholders. This plan should include the following steps:

1. Detailed investigation of the micro ecosystem of the waterfall - this will involve 2-3 weeks input from a trained biologisVecologist to chart vegetation and wildlife in the vicinity of the waterfall. The results of this investigation will determine the value of the

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biodiversity in the ecosystem and the degree of impact as well as provide data for further monitoring. It will also influence to a considerable deg ree the Minimum Bypass Flow.

2. Devise a detailed monitoring plan for the construction and operation phases for the project, including identification of focus areas, methodologies, possible interventions and budget requirements. It will be important to define parameters for monitoring and the costs for further mitigation measures.

3. Implement monitoring plan during the construction and for the operation phase for a specified period. This should also involve the training of a local person, possibly connected to the hospital, to carry out long-term monitoring and data collection.

5.4 Conclusion This scoping report has reviewed baseline data, accessed potential project impacts on the biophysical and social environments and proposed mitigation measures and an outline for monitoring.

This report together with previous reports provides adequate analysis to conclude that a 'full-blown' EIA, covering all aspects of the environment is not required. Project impacts are for the most part small in most areas or fields of study. For the areas of concern (medium negative impacts) such as water flow and quality and biodiversity in relation to the ecosystem of the waterfall, further detailed sampling and planning is required. This should be in the form of implementation plans for mitigation measures and monitoring.

It is recommended that the project now move ahead in preparation for financing and eventually implementation. This requires implementation plans that concentrate on practical arrangements related to environmental monitoring of the Kisiizi Waterfalls.

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REFERENCES/BIBLIOGRAPHY

Atlas of Uganda 1995. Atlas of Uganda. Uganda Geology. Depart- ment of Geological Survey and Mines, Uganda 1966.

Biswas, A.K. & Agarwala, S.B.C. (eds.) 1992. Environmental Impact Assessment for Developing Countries. Butterworth-Heinemann Ltd., Oxford, UK.

Dr. A.Barr & Dr. W. Cavendish; Monitoring and Evaluation in AF- FREI/ERT Projects. A Programme Outline and Baseline Proposals.

GoU Equity and Vulnerability: A Situational Analysis of Women, Adolescents and children in Uganda, 1994.

GoU 1995a. The National Environment Statute. Statute No. 4 1995. Uganda Printing and Publishing Corporation (UPPC), Entebbe.

GoU 1995b. The Water Statute. Statute No. 9 1995. Uganda Printing and Publishing Corporation (UPPC), Entebbe.

GoU 1996. Uganda Wildlife Statute. Statute No. 14 1996. Uganda Printing and Publishing Corporation (UPPC), Entebbe.

GoU 1998a. The Environmental Impact Assessment Regulations, 1998. Statutory Instruments No. 13 1998. Uganda Printing and Publishing Corporation (UPPC), Entebbe.

GoU 1998b. The Land Act 1998 (Act No. 16 of 1998). The Law Devel- opment Centre, Kampala.

GoU 1999. The Uganda Electricity Board Act.

IFC 1998c. OP 4.10, Indigenous People. International Finance Corpo- ration (IFC), Washington, D.C.

IFC 1998e. OP 4.12, Involuntary Resettlement. International Finance Corporation (IFC), Washington, D.C.

IUCN / UNEP I WWF 1991. Biological Diversity. World Conservation Union, United Nations Environmental Programme and World Fund For Nature. Gland, Switzerland.

Langdale-Brown, I., Osmaston, H.A. & Wilson, G. 1964. The Vegeta- tion of Uganda and its bearing on land-use. Government Printer, En- tebbe, Uganda.

MOFPED 1999 Uganda Poverty Status Report.

NEMA Environmental District Profiles, Rukungiri

NEMA 1996. State of the Environment Report for Uganda 1996. Na- tional Environment Management Authority (NEMA), Kampala.

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NEMA 1997. Guidelines for Environmental Impact Assessment in Uganda. National Environment Management Authority (NEMA), Kampala.

NORPLAN 1999c. Karuma Falls Hydropower Project. Environmental Impact Assessment - Volume 1: Main Report. NORPAK POWER Ltd., Kampala.

NORPLAN 1999d. Karuma Falls Hydropower Project. Environmental Impact Assessment - Volume 2A: Annexes Biological Environment. NORPAK POWER Ltd., Kampala.

NORPLAN 1999e. Karuma Falls Hydropower Project. Environmental Impact Assessment - Volume 2B: Annexes Human Environment. NORPAK POWER Ltd., Kampala.

Republic of Uganda 1992. The 1991 Population and Housing Census (District Summary Series) Masindi District. Statistic Department, Min- istry of Finance and Economic Planning (MFEP), Entebbe, Uganda.

WB 1991 a. Environmental Assessment Sourcebook. Volume I: Poli- cies, Procedures, and Cross-Sectoral Issues. WB Technical Paper No. 139. Environment Department, World Bank, Washington D.C., USA.

WB 1991 b. Environmental Assessment Sourcebook. Volume Il: Sec- toral Guidelines. WB Technical Paper No. 140. Environment Depart- ment, World Bank, Washington D.C., USA.

WB 1991d. Operational Directive 4.20: Indigenous Peoples. World Bank, Washington D.C., USA.

WB 1995a. Operational Policies 4.04: Natural Habitats. World Bank, Washington D.C., USA.

WB 1995b. Bank Procedures 4.04: Natural Habitats. World Bank, Washington D.C., USA.

WB 1995c. An Integrated Approach to Water Resource Management: A strategy for Sub-Saharan Africa. World Bank, Washington D.C., USA.

WB 1996. The World Bank Participation Sourcebook. World Bank, Washington D.C., USA.

WB 1997a. Biodiversity and environmental assessment. Environ- mental Assessment Sourcebook Update No. 20. World Bank, Wash- ington D.C., USA.

WB 1999a. Operational Policies 4.01: Environmental Assessment. World Bank, Washington D.C., USA.

WB 1999b. Bank Procedures 4.01: Environmental Assessment. World Bank, Washington D.C., USA.

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WB 1999c. Good Practices 4.01: Environmental Assessment. World Bank, Washington D.C., USA.

WB 1999d. Environmental Management Plans. Environmental As- sessment Sourcebook Update No. 25. Environmental Department, World Bank, Washington D.C., USA.

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APPENDICES APPENDIX A: TERMS OF REFERENCE FOR THE STUDY

BACKGROUND

At present, Uganda's power sector's performance is poor. The Elec- tricity Board (UEB) which no longer has a legal monopoly in the power sector after the enactment of the Electricity Act of 1999 still continues to undertake generation, transmission and distribution activities in the country. UEB suffers from poor finance performance, operating inefficiency, low productivity and inadequate funds for required investments. Uganda is experiencing loadshedding of once a week of around 20 MW. Uganda's main grid installed capacity now stands at about 260 MW. In addition, Uganda currently has one of the lowest per capita electricity consumption (62 kWh/year) in the world (India - 300, China - 580, USA - 11,000 in 1996). Only an estimated 5% of Uganda's total 4.7 million households - and less than 1% of the rural population has access to the grid supplied electricity. At present, UEB connects less than an additional 10,00 customers per year, which implies that Uganda is losing the access race as population growth at the rate of 2% per year which would add 90,000 or more new households per year. Also, despite the availability of a wealth of indigenous renewable energy resources including power generation from a variety of sources such as biomass residues, small hydro, wind and geothermal as well as solar energy for stand-alone photovoltaic systems. Only a small fraction of the country's renewable energy resource potential has been tapped todate.

In recent years, the government has taken steps to correct this serious shortfall in electricity supply and in the past year has enacted a new electricity law which provides for the unbundling of UEB and also encourages private participation in the power market. The Govern- ment has also acted to provide much needed new generation capacity by:

The commissioning of Unit 11 and Unit 12 of the Kiira Power Station; and Signing of the first Independent Power Producer Contract for a 200 MW plant at Bujagali, also on the Nile River. In the area of rural electrification, the Government has adopted a commercially oriented approach - with the Government playing the role of market enabler.

The main elements of this strategy are:

* Level playing field for private sector participants;

* Enabling regulatory framework;

* Cost recovery and cost benefit tariffs; and

* A subsidy transfer and financing mechanism.

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The Government has also requested World Bank assistance in implementing a broad scale rural electrification programme, entitled Energy for Rural Transformation (ERT), aimed at catalysing economic transformation of the rural economy

The ERT Project is proposed as a 10-year Adaptable Programme Loan, supported by three separate but linked to World Bank credits- roughly equal in duration. The development objectives of the proposed programme are to provide:

Rural households the direct and indirect benefits of increased access to adequate and reliable supplies of electricity; and

Rural enterprises, the benefits of increased productivity and income arising from electricity access - with technical assistance provided to accelerate switch over to electricity - and/or more efficient use of traditional fuels, whose use is likely to continue in heat - intensive appli- cations such as brick-making. In addition, the global objective of the proposed programme is to contribute to global environmental protection by promoting the use of stand-alone solar photovoltaic (PV) systems and the generation of conventional power from small renewable energy resources.

The first phase of the ERT Programme would have four components:

Component 1: Main grid related power distribution and generation. The power distribution would be to presently unserved rural areas that would be connected to the main grid. The power generation would also be from small, renewable energy resources, such as sugar mills, that are close, or already connected to the main grid.

Component 2: Independent grid systems for relatively con- centrated isolated areas with a potential for the use of electricity by rural enterprises. This component would support relatively larger systems that may require some transmission (such as in the West Nile Region) and smaller systems, such as those located in rural trading centres that require only generation and distribution facilities. It is expected that a significant part of the power generation would be from renewable energy resources.

Component 3: Individual/institutionalsolar PV systems for, relatively dispersed areas where even small independent grid systems are not viable.

Component 4: Pilots for scale up in later tranches, including energy efficiency in use of traditional wood fuels by rural SMEs and public institutions, provision of telecommunications and connectivity in rural areas, low-cost household water disinfecting, and energised water pumping.

Capacity building within the programme would include sector reforms, building of local project development capacity, low cost rural electrification designs, renewable energy development and light-handed regulation to be undertaken at the local level.

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During the project preparation, it will be necessary to ensure that the specific project activities (i.e. the initial sub-project investment) known at project appraisal are fully compliant with Government and World Bank requirement on environmental and social safeguards. In addition, a framework must be identified which ensures that future investments also are compliant.

The specific sub-projects which are being prepared for ERT Project appraisal are:

Description Review Expansion of current bagasse-based co- Assessment has been conducted. generation plant to allow sale of excess NEMA approval certificate issued. power to the interconnected UEB grid. Expansion of current bagasse-based co- Assessment has been conducted generation plant to allow sale of excess power to the interconnected UEB grid. Concession - development of a mini-hydro An approval certificate issued. station near Paidha and construction of electrical transmission and distribution facilities to serve the Nebbi and Arua areas. Electrification - Construction of electrical undertaken. transmission and distribution facilities as well as mini-hydro, diesel or other generation station to serve Kagadi Town. Expansion of an existing micro-hydro station undertaken. and construction of distribution lines to serve the surrounding community undertaken.

OBJECTIVE OF THE STUDY

The objectives of the environmental and Social Safeguard Analysis are to:

• Ensure that specific Phase I project investments listed above are compliant with Government of Uganda and World Bank Environ- mental and Social Safeguard Policies; and

* Recommend a framework for ensuring similar compliance of future projects within the ERT Programme.

SCOPE OF WORK

Task 1 - Assessment of Phase I sites - The Consultants will review Uganda's national Environmental Legislation, Regulations and Administrative Framework as well as the World Bank's 10 Environ- mental and Social Safeguard Policies as they relate to the Proposed Programme.

This will include land acquisition and resettlement issues such as for mini-hydro power plants and transmission lines. Best on this review, the Consultant will assess the compliance of Phase I sites. This will include a review of the existing (Kakira and Lugazi) environmental

Kiziisi Scoping study 03.11.26 NORPLAN A.S Ministry of Energy and Mineral Development (MoE&MD) Environment and Social Assessment for the Rural Transformation Projects

assessments and will also include conducting of a screening exercise and assessments if necessary for the Kagadi and Kisiizi sites. For West Nile, the consultant will prepare a ToR for the Social Safeguard Analysis, to be conducted under separate contract.

The Consultant will prepare on behalf of the Project sponsors separate reports for each of the unstudied sites (i.e. kagadi and Kisiizi). These reports will be suitable in format, scope and detail for submis- sion to NEMA and/or other necessary approving authorities. The reports will include:

• A description of the site and the proposed project;

* The projected area of land, air and water that may be affected;

* The materials that the project shall use, including both construction materials and inputs;

* An assessment of potential environmental and social impacts of the proposed project;

• The possible products and by-products including waste generation of the project;

* The environmental effects of the materials, methods, products of the projects and how they will be eliminated or mitigated and;

. Appropriately costed environment and social mitigation plan (which could be presented in a tabular format).

For Kakira and Lugazi, it is possible that some of the World Bank required safeguards were not considered in the existing studies. The consultant will assess whether all appropriate Safeguards were considered in the assessment and will undertake additional safeguard analysis if required. In the case additional analysis is needed, the Consultant will prepare a report as described above.

Task 2 - Definition of Safeguard Framework

The Consultant will also carry out an evaluation of the existing safeguard framework to ensure that an adequate institutional approach exists to address all safeguard issues which could reasonably be expected to arise within the ERT programme. This includes both the availability of adequate consulting expertise to conduct the needed studies as well as an adequate structure for review and approval as provided by Ugandan Law and World Bank requirements. In the event that gaps are found, the Consultant will work with relevant institutions (NEMA), MEMD, Private Sector, etc) to develop practical solu- tions. The results of this work will be described in the Proposed Man- agement Plan. The Plan will describe institutional arrangements as well as clear rules and regulations to ensure compliance of the Na- tional Laws and the Bank's Safeguard Policies.

The Consultant also will access the institutional and human resource capacity within the proposed framework to effectively undertake in a

Kiziisi Scoping study 03.11.26 NORPLAN A.S Ministry of Energy and Mineral Development (MoE&MD) Environment and Social Assessment for the Rural Transformation Projects

timely manner the necessary safeguard studies as well as approval and implementation and monitoring measures. If appropriate, the Consultant will recommend capacity building measures to address any deficiencies found. The recommendations will include proposed recipient institutions and the type of assistance, a draft plan, including ToR, schedule, and estimated costs.

Reporting - as described above, the Consultant will prepare individual screening and/or EIA reports prepared for the phase I sites, as well as a ToR for the West Nile EIA. In addition, the Consultant will prepare a consolidated Safeguard Management Programme Report. This report will be in English and will include an Executive Summary suitable for use as a free-standing document. The Report also will include:

i) A description of the proposed project; a description of the safeguard issues likely to be encountered in the project execution; the potential impacts of the proposed investment, including phase I investment as well as an over view of potential future investments; a description of the mitigation measures; and ii) A description of the policy, legal and administrative safeguard framework including assessment and approval procedures to be followed as well as the capacity building and monitoring plan.

The Consultant will assist in the public hearing process as required for individual sub-projects as well as for the project as a whole. Cop- ies of the report shall be provided to the Government of Uganda and the Bank's Africa Safeguard Policies Enhancement Team for review and clearance.

Issues of compensation

Issues of compensation for any persons that might be displaced be included and be discussed at an early stage in the project including consultation with the respective local authorities in the area of concern.

Consultinq Team

The EIA will be conducted by a Consultant Team with a mix of intern- tional and local staff. The team should include back grounds in Ugandan environmental assessment experience; social development; international environmental assessment on World Bank project; and familiarity with the Energy sector and the Bank's safeguard policies. Duration of the assiqnment

The assignment will take approximately 8 person weeks, review and clearance by the Bank and the Government of Uganda should be de- livered before November 1. 2000.

Kiziis" Scoping study 0311 26 NORPLAN A.S Ministry of Energy and Mineral Development (MoE&MD) Environment and Social Assessment for the Rural Transformation Projects

APPENDIX B: LIST OF PERSONS CONSULTED

Name Position

G.R. Turyahikayo Commissioner, Ministry of Energy

P. Mubiru Ass. Commissioner, Ministry of Energy

W. Tibanyenda Deputy Chief Administrative Officer, Rukungiri

B. Patterson Hospital Finance Manager

Moses Mugume Hospital Administrator

Frank Kwesiga LC 1, Chairman, Kisiizi Hospital

Mathias Byandusya CBHC Trainer

Kellen Kamugisha Trader

Fiddel Tumwesigye Trader

Nancy Mwebesa Vice Chairperson

Venice Kyomugisha Villager

Gereson Kabafuuzaki Villager

Pulisi Mubakali Villager

Gideon Habomugisha Electrician

Wilson Tibagyenda Deputy Chief Administrative Officer

Kiziisi Scoping study 03.11.26 NORPLAN A.S Ministry of Energy and Mineral Development (MoE&MD) Environment and Social Assessment for the Rural Transformation Projects

APPENDIX D: LAYOUT OF THE EXISTING HYDROELECTRIC PLANT IN KISIIZI

Kiziisi Scoping study 03.11.26 NORPLAN A.S Ministry of Energy and Mineral Development (MoE&MD) Environment and Social Assessment for the Rural Transformation Projects

APPENDIX E: PHOTOGRAPHIC RECORD OF THE PROPOSED MINI-HYDRO STATION SITE AT KISIIZI

Plate 1: The Kisiizi hospital, presently operating a micro-hydro station that is to be expanded.

Plate 2: Part of the catchment area showing the eucalyptus plantation and a valley that will be submerged on expansion of the station.

Kiziisi Scoping study 03.11.26 NORPLAN A.S Ministry of Energy and Mineral Development (MoE&MD) Environment and Social Assessment for the Rural Transformation Projects

Plate 3: The catchment area, just before the dam, showing part of the eucalyptus plantation and the thick vegetation.

Plate 4: Downstream River Rushoma where the waterfall water joins the mainstream river water.

Kiziisi Scoping study 03.11.26 NORPLAN A.S Ministry of Energy and Mineral Development (MoE&MD) Environment and Social Assessment for the Rural Transformation Projects

Plate 5: The Kisiizi waterfalls showing the eucalyptus plantation and many climbers downstream.

Plate 6: The canal at Kisiizi showing silted water, indicating the effect of erosion at source as a result of cultivation.

Kiziisr Scoping study 0311.26 NORPLAN A.S PPFENDIX C: ACTIVITY PROGRAMME FOR ERT ENVIRONMENT AND SOCIAL SAFEGUARD ANALYSIS

Ainistry of Energy and Mineral Development - Energy for Rural Transformation Project, Environmental and Social Safeguard Analysis

Activity Weeks 1 2 3 4 5 6 7 8 9 10 A. PREPARATIONS | I II Afinal milestone for collecting information Al, Planning and Mobilisation _ A2. Gather information, reports, maps

B. TASK 1: ASSESSMENT OF PHASE I SITES

B.1 Review of Regulations B.2 Site Visits B. Review of Kakira and Lugazi reports B.4 Sc:re6ning/ ToR for Paidha in West Nile B.5 Screening for Kagadi and Kisiizi B.5 Quality Assurance

C. TASK 2: DEFINITION OF SAFEGUARD FRAMEWORK

CA Evaluate existing safeguard framework C.2 Evaluate institutional and human resource capacity of proposed framework

D. REPORTING Ideadline for feedback for 5 report!

D.1 Writing of Reports Al D.2 Review of the Reports by the Client Rdeadline for feedack for 1 report Reports ,

I Kakira EIA Review Report 2 Lugazi EIA Review Report 3 Screening / ToR for West Nile - Paidha 4. Screening Kisiizi 5i Screening Kagadi - 6 Safeguard Framework

* draft clivluuml,--rij azia zoacliz Asse5smFFg tor mie R

APPENDIX D: LAYOUT OF THE HYDRO-ELECTRIC PLANT IN KISIIZI

Annex 2 Layout of the existing hydroelectric plant in Kisizi

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-7 s I j-I l I IC22 1 SEC TION 1-1 IEXISTINGI

Drawing 4 Section of the existing weir and intake arrangement.

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LEF T VIEW IEXISTINGI

Drawing 5 Front view of the weir and headrace channel. | Proposid vertical Sl2b/wall

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SECTION 1-1 IPROPOSEDI

Drawing 4 Proposed alteraHon of the weir and intake arrangement

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LEFT.VIEWIPROPOD D .h*nn:g rotieohewerndhedc . I * ,j .X

LEFT VIEW IPROPQSEDI

Drawing 5 Front view of the weir and headrace channel with proposed alteraons. APPENDIX E: PHOTOGR A PHIC RECORD OF THE PROPOSED MINI-HYDRO STATION SITE AT KISIIZI

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Plate 1: The Kisiizi hospital, presently operating a micro-hydro station that is to be expanded.

Plate 2: Part of the catchment area showing the eucalyptus plantabon and a valiay that will be submerged on _ ^ ~~~expansion of the station. F; &; i;;r lDb h -Id7rsmstornzation Projects

.u,,,''.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Z, 4"V Catchment area; just be-fore the-d-n, showing part of-

----yeeucalyptusAJ plantation and the thick vegetation. ti

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jon h misramrvrmiter rent and Social Assessment for-the Rural Transformation Projects

Plate 5: The-Kisiizi waterfalls showing the eucalyptus p!ntatin

and many climbers downstream.

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-*, (MUm-&MD) of Energy and Miners! sDveiopmaint Projects rment and Social Assessrnent for the Rural Transformation

indicating the * Pla'. 6: Th.e rkkn= at Wizi showing silted water, effect of erosion at source as a result of cultivation.

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