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Environmental and Social Impact Assessment Study Report (SR) for the Expansion of OLA Energy LPG Marine Terminal in Shimanzi, Mombasa County

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Environmental and Social Impact Assessment Study Report (SR) for the Expansion of OLA Energy LPG Marine Terminal in Shimanzi, Mombasa County Environmental and Social Impact Assessment Study Report (SR) for the Expansion of OLA Energy LPG Marine Terminal in Shimanzi, Mombasa County. Prepared for Prepared by OLA Energy Kenya Limited Kurrent Technologies Ltd OiLibya Plaza, Muthaiga Road Hass Plaza, 4th Floor, Nairobi, Kenya Lower Hill Road, Upper Hill Environmental and Social Impact Assessment Study Report (SR) for the Expansion of OLA Energy LPG Marine Terminal in Shimanzi, Mombasa County. Executive Summary Executive summary Introduction OLA Energy Kenya (OEKE, the “Proponent”) intends to expand its 510 MT Liquid Petroleum Gas (LPG) depot at Shimanzi, Mombasa to a marine LPG terminal with a capacity of 14,500 MT (the “Project”). The proposed terminal will consist of 6 mounded LPG spheres with a total water capacity of 30,000m3, 4 truck loading facilities, 6 Rail Tank Carrier (RTC) facilities and a delivery line of 14 inches from Shimanzi Oil Terminal (SOT) and later to Kipevu Oil Terminal (KOT). OLA Energy is one of the leading downstream petroleum companies in Africa with operations in 17 countries comprising of over 1,200 service stations, 8 blending plants over 60 fuel terminals and presence in over 50 Airports. The proposed expansion of the LPG terminal will be undertaken by OLA Energy Kenya with the support of OLA Energy Operations Headquarters in Dubai and OLA Holdings Ltd. OLA Energy Kenya has engaged Kurrent Technologies Ltd to undertake Front End Engineering Design (FEED), prepare tender documents, acquire construction permits including Environmental Impact Assessment (EIA) license and undertake the tendering process. The project will be implemented through an Engineering, Procurement and Construction (EPC) contractor. As part of the Environmental and Social Impact Assessment (ESIA) process, Kurrent Technologies Ltd prepared and submitted the Terms of Reference (TOR) for the ESIA which was approved by the National Environment Management Authority (NEMA) on 17th August, 2020. Subsequently, this ESIA Study Report (SR) is being undertaken for submission to NEMA. This ESIA study has been undertaken based on available information and data out of which a SR has been prepared for submission to NEMA for consideration. An appraisal of the current baseline status of the project area and the anticipated impacts, mitigation measures as well as development of an environmental and social management plan (ESMP) is the focus of the assignment. Overview of the proposed project The proposed project will be located at OLA Energy’s site along Kismayu Road off Makande Road in Shimanzi area, Mombasa County (the “Site”). The Site’s coordinates are Latitude 4° 2'26.20"S and Longitude 39°38'51.35"E. The proposed project site’s immediate neighbours include Makupa Transit shade CFS, Total GAPCO Terminal 1, Kenya Ports Authority (KPA) Estate, Solvochem East Africa, East African Terminals, OLA Energy Terminal and AA Transporters as shown in Figure 1-1 The project will be established on three plots of land leased from KPA with a total area of 5.8 ha. The site has several existing structures that will be decommissioned, dismantled, and demolished to create adequate space for the proposed project. The structures include: • 2 decommissioned tanks to be dismantled and demolished • An LPG filling plant, 8 bullet tanks and associated pipelines and fittings to be dismantled and relocated to other OEKE’s sites within the country • Office building, weigh bridge office, switch room, ablution block and security house to be demolished • Substructures including foundations, utilities ducts, underground water tank to be demolished • Weighbridge to be dismantled for re-use ©Kurrent Technologies .Page ii Environmental and Social Impact Assessment Study Report (SR) for the Expansion of OLA Energy LPG Marine Terminal in Shimanzi, Mombasa County. Executive Summary • Meter Gauge Railway (MGR) siding to be dismantled and relocated. • Masonry walls to be demolished ©Kurrent Technologies .Page iii Environmental and Social Impact Assessment Study Report (SR) for the Expansion of OLA Energy LPG Marine Terminal in Shimanzi, Mombasa County. Executive Summary Figure 1-1: Google map image showing the location of the proposed Project ©Kurrent Technologies .Page iv Environmental and Social Impact Assessment Study Report (SR) for the Expansion of OLA Energy LPG Marine Terminal in Shimanzi, Mombasa County. Executive Summary In summary, the proposed project will involve construction of the following components • an approximately 600m long access road from Kismayu road • 6 mounded LPG sphere tanks with a total capacity of 14500MT and the associated pipelines • 4 truck loading racks • 6 Rail Tank Carriers (RTC) loading bays • A 3.5km, 14-inch delivery line from SOT and from the proposed KOT2 Common User Manifold (CUM) • Firefighting water tank (2500m3), pump house and pipe network • Weigh bridge for trucks • Administration, utility, and security buildings The operation phase of the project will include the following activities • Receiving LPG from vessels at both SOT and KOT (Via the proposed Common User Manifold) • Storage of LPG in the six LPG mounded spheres • Trucks and Rail wagons loading and • Facility maintenance activities • Safety, fire protection and emergency response • Traffic Management Overview of the Project Area Baseline Project area social • The project will be situated at Shimanzi, Railways sub-location, baseline Railways Location, in Shimanzi/Ganjoni ward, Mvita Sub-County, Mombasa County. Railways Location has one sub-location namely, Railways Sub-location. • The general project area is the wider Mombasa County, which covers an area of 219.9 Km2 excluding 65 Km2 of water mass which is 200 nautical miles inside the Indian Ocean. The County is located in the coastal region of Kenya and it is one of the 47 counties covering an area of 219.9 Km2. The County lies between longitudes 390 34’ East and 39o 46’ East and latitude 3o 56’ South and 4o 10’ South of the Equator. It borders Kwale County to the South West and Kilifi County to the North and the Indian Ocean to the East. • Administratively, the County is divided into six sub-counties namely: Mvita, Nyali, Changamwe, Jomvu, Kisauni, and Likoni and thirty county assembly wards. These are further sub-divided into 30 locations and 47 sub-locations. Politically, the county has 30 wards: Changamwe (5 wards), Jomvu (3 wards), Likoni (5 wards), Kisauni (7 wards), Mvita (5 wards), Nyali (5 wards) • The project area is located in the Shimanzi industrial zone in Mombasa Island (city) characterized by Oil storage terminals, ©Kurrent Technologies .Page v Environmental and Social Impact Assessment Study Report (SR) for the Expansion of OLA Energy LPG Marine Terminal in Shimanzi, Mombasa County. Executive Summary warehouses, and container freight stations (CFS) and the vessel docking zone within the KPA jurisdiction. Other businesses include warehousing for chemicals, go downs, and offices. Additionally, the residential area consists of the KPA and Kenya Railways Estates. There are small scale traders operating small shops within the two estates and small-scale vendors of food and clothing within the project area. • There are 7 villages within Railways sub-location namely: Shimanzi KPA village (adjacent to the project site) Shimanzi Railways village (adjacent to the project site) Makande 49 village Mwangeka Village High Level village Labour compound village Railway Mosque village • The proposed project site is approximately 4 Hectares, which was leased from KPA. Project area Physical • The project area slopes northwards towards Indian ocean and the and Bio physical highest point is 20m above sea level (asl) on the south west of the baseline site. • The soil in the project area ranges from Luvisols to acrisols characterized by brownish sandy to yellowish clay from 0-1m, yellow brownish silt clay to clayey sand from 1-2 m and dark brownish clayey silt with coral limestone fragments from 2-3m. • Geologically, the project area is characterized by coral limestone and lagoonal deposit. • The project site is near the ocean and has a storm drain channel and culverts from shimanzi road area transecting through the site. It was also observed that the land slopes gently westward along Makande road where some surface runoff water flows into Indian Ocean via the rail track drainage and some end up in the site. The right of way (ROW) for the pipeline to SOT slopes southwards towards the port while the ROW for the KOT line is a slope from the Kipevu mainland towards Indian Ocean. • Mombasa is in seismic area VI on Mercalli scale, 5.4 on Richter scale), • Mombasa has a tropical climate with warm and cool seasons with an average temperature of 26.7 °C | 80.0 °F and average precipitation of 1196 mm | 47.1 inch. • The ambient noise levels at the proposed development site and its environ was between 57.3dB(A) and 67.1dB(A) during the day, and 47.5 - 52.8 during the evening. • The proposed project will be established in Mombasa’s Industrial Area and there is no significant natural terrestrial or aquatic ©Kurrent Technologies .Page vi Environmental and Social Impact Assessment Study Report (SR) for the Expansion of OLA Energy LPG Marine Terminal in Shimanzi, Mombasa County. Executive Summary ecosystem existing within the area. Therefore, Biophysical environment will not be significantly impacted by the proposed project. There are only few trees (approximately 10) and shrubs as well as grass cover that will be cleared from the site during construction. The trees include coconut, palm
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