PROPOSED DEVELOPMENT OF THE MAKALU B DISTRIBUTION LINES, ,

SOCIO-ECONOMIC IMPACT ASSESSMENT

AUGUST 2017

PREPARED FOR: ESKOM HOLDINGS SOC LIMITED Title and Approval Page

Proposed Development of the Makalu B Distribution Lines, Sasolburg, Project Name: Free State

Report Title: Socio-Economic Impact Assessment

Authority Reference: Not yet assigned

Report Status Draft

Client: Eskom Holdings SOC Limited

Prepared By: Nemai Consulting

 +27 11 781 1730 147 Bram Fischer Drive,   +27 11 781 1731 FERNDALE, 2194

[email protected] PO Box 1673, SUNNINGHILL,   www.nemai.co.za 2157

Report Reference: 10581 R-PRO-REP|20170216

Authorisation Name Signature Date

Author: Sameera Munshi 24 August 2017

Reviewer: Ciaran Chidley

This Document is Confidential Intellectual Property of Nemai Consulting C.C. © copyright and all other rights reserved by Nemai Consulting C.C. This document may only be used for its intended purpose

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Amendments Page

Amendment Date: Nature of Amendment Number:

31 August 2017 First Draft for Client Review 0

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Executive Summary

Eskom studies indicated that the 88 kV fault levels are higher than the equipment rating at Makalu substation which will result in the 275 / 88 kV transformation at Makalu substation becoming unfirm in 2022 and the Distribution network will result in constraints. Investigations indicated that Makalu B substation should be established such that load and current embedded generation be shifted off the existing substation to the new proposed substation. This includes a loop in of one of the existing 275 kV Lethabo – Makalu Lines. This change requires that the existing Distribution network be reconfigured. The project is being planned jointly by both Eskom Transmission and Distribution in order to ensure alignment, however, each project will be implemented separately by the relevant division.

The proposed project entails reconfiguring the network such that generation and motor loads are supplied at the new Makalu B substation and residential and industrial loads are supplied from the existing Makalu substation.

Nemai Consulting was appointed by Eskom Holdings SOC Limited to conduct the environmental assessments, in terms of Government Notice No. R 982 of 4 December 2014 (as amended), for the following proposed projects in Sasolburg, Free State Province:

1. The development of the Makalu B substation and associated Transmission Loop-in Lines; and 2. The Makalu B Distribution Line Strengthening.

This document serves as the draft Socio-Economic Impact Assessment for the proposed development of the Makalu B Distribution Line Strengthening Basic Assessment Process. A separate Environmental Impact Assessment will be undertaken for the Substation and associated Transmission loop-in lines; however, a combined public participation process is being conducted for both of these projects.

Project Location

The project is located within the Metsimaholo Local Municipality and Fezile Dabi District Municipality, in the north of the Free State Province. The site is located east of the town Sasolburg, which forms part of the Vaal Triangle (, and Sasolburg regions). The proposed infrastructure is bordered by petro-chemical industries to the west and is located on a combination of agricultural and undeveloped land.

Project Components and Proposed Alternatives

The existing Makalu substation is situated on the Farm Vaalbank 238, which is accessed from the to the west. The area required for the proposed Makalu B substation is 500 m x 500 m, which covers a total area of 25 Ha.

- i –

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Two alternative routes for the Distribution alignment have been considered; namely Distribution Lines Option 1 to Makalu B Site Option 1, and Distribution Lines Option 2 to Makalu B Site Option 2, which are 3.3km and 7.5km, respectively. The selected distribution line will depend on the selected preferred Makalu B site option.

The study area includes a 1km corridor around the distribution lines (i.e. 500 m on either side of the centre line). This is to allow for any possible deviations from the current proposed alignment

Google Earth image of the Project Components and Location to the Existing Makalu Substation

Methodology

The methodology adopted for this report was to conduct a desktop and site based review of the receiving environment. This was then followed by a review of the public participation process which was undertaken as part of the application and scoping phase. Then followed the impact analysis using the framework provided by the environmental impact practitioner.

Situational Analysis

Sasolburg is approximately 80 km south of . It is accessible from the regional road passing through Vanderbijlpark. The residential areas of Sasolburg, Sasolburg town and Zamdela, lie to the west of the R57. The industrial areas such as Sasol Chemical Industries lies to the east of the R57.

Sasolburg is a chemical city with limited diversification of the industrial and commercial base. The towns economy is heavily reliant on Sasol Chemical Industries. Landuse outside of the urban residential and industrial areas largely comprises of agriculture and open cast and

- ii –

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment underground mining. Vaalpark is the closest residential area to the proposed Development of the Makalu B Substation and Associated Transmission Loop-In Lines and is located between Vanderbijlpark and Sasolburg.

According the Metsimaholo LM SDF, there is a scarcity of developable land in the Sasolburg, mainly due to open cast mines and undermined areas (due to coal extraction) which has resulted in limited expansion possibilities of the urban area.

The total population in the study area 11 898 persons. The working age population is classified as persons aged 15 – 64 and accounts for seventy percent of the total population. Similarly, the population of men of working age is larger than women. The variance of the age and gender profile is attributed to the migration of men in search of economic opportunity. Specifically, the migration to Sasolburg would be for opportunities in the chemical and mining industries

Majority of the households in the study area have formal dwellings on a separate stand or yard on a farm. Over twenty-five percent of the population in the study area have no education or have not completed primary education and are considered to be functionally illiterate. Functional illiteracy is defined as a person who has received skills to read and write, but are inadequate to manage daily living and employment tasks that require reading skills beyond a basic level. Usually persons who have a low level of education, up to primary education, are classified as functionally illiterate.

There were no salient matters raised during the public participation phase that have a bearing on the social or economic environment. As the landowner, AOL requested that the project team are mindful of the impact they have on the property during site visits and that the project team are respectful of the safety of the farm. Sasol Satellite Operations provide comments regarding the technical aspects of the project as they have existing pipelines and servitude restrictions which Eskom would need to be mindful of. Other comments related to the public participation process as part of the EIA process.

A site visit was undertaken on the 22 August 2017 to the Stols Vervoer farm, the lessee of the land on which the development is proposed. Stols Vervoer prefer distribution lines Option 1 as it is on the edge of the farm resulting in less conflict in land use. The area is used to farm mielies which is the core business of the farm. In addition, the line will be shorted and located close to existing distribution lines. In contrast, distribution lines Option 2 would result in the closing of the horse riding club. It also located closer to the cattle kraal, horse stables and residences thus having a greater potential impact from a visual and health perspective

Findings

The socio-economic impacts of the proposed development were identified as follows:

• Security of Electricity Supply • Land Use Conflict • Access Control

- iii –

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

• Visual Impact • Exposure to Electromagnetic Fields • Impacts Arising from the Construction Phase

 Economic Opportunity  Dust Disturbance  Noise Disturbance  Influx of workers  Constriction Access Control, Safety and Security  Traffic Disruption

The socio-economic impacts of the proposed development were identified are listed in the below.

Dx Lines Dx Lines Identified Impact Option 1 Option 2

Security of Electricity Supply No Preference - Land Use Conflict ✓  Access Control ✓  Visual Impact ✓  Exposure to Electromagnetic Fields ✓  Construction related impacts Economic Opportunity No Preference Dust Disturbance ✓  Noise Disturbance No Preference Influx of workers No Preference Constriction Access Control, Safety and Security No Preference Traffic Disruption No Preference

While electricity provision is a public good, the proximity impacts on the receiving environment can alter the current sense of place and result in changes or conflicts in current land use activities. The proposed Development of the Makalu B Distribution Lines is located on private land away from residential areas, thus reducing the impacts on the receiving environment.

There remains a considerable anticipated impact owing to a conflict of land use. Eskom has the permission to proceed with the project from the landowner. Continued engagements with the landowner is encouraged in order to effectively mitigate the loss of land. That said, there is a need for engagement with the lessee of the land there is a loss of income generation owing to a potential loss of agricultural fields and fragmentation of farming activities.

When assessing the cumulative impacts of the Makalu B project, i.e. the Makalu B Distribution Line Strengthening together with the Makalu B Substation and Associated Transmission Loop- In Lines, the anticipated impacts of Dx Lines Option 2 are considerable greater than when

- iv –

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment viewed in isolation. It is anticipated that there will be a loss of the Sasolburg Ruiteklub which is the only known horse club in Sasolburg. The loss of the social asset will result in a loss of employment, income generation and recreational activity for the community. Unless Eskom can relocate the club, it is not recommended that Dx Lines Option 2 is considered as a suitable alternative for the proposed development. Therefore, Dx Lines Option 1 is preferred from a SEIA point of view.

The proposed project serves as an enabling infrastructure to allow Eskom to continue to meet the electrical demand for residential and commercial use. When implementing the proposed project, it must be done in a manner that reduces the identified impacts on the receiving environment. This is done through prudent and planned interventions that allow for the project to be sustainable

- v –

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Table of Contents

1 INTRODUCTION ______1 1.1 Project Background and Motivation 1 1.1.1 No-Go Option 3 1.2 Project Location 4 1.3 Project Life cycle 5 1.3.1 Pre-construction 5 1.3.2 Construction Phase 5 1.3.3 Operation and Maintenance 5 1.4 Environmental Triggers 6 1.5 Terms of Reference 6 1.6 Structure of the report 6

2 LEGISLATIVE OVERVIEW ______7 2.1 Sustainable Development Goals, 2016 7 2.2 Constitution of the Republic of South Africa (Act 108 of 1996) 8 2.3 National Development Plan (2011) 10 2.4 National Environmental Management Act (Act 107 of 1998) 10 2.5 Electricity Regulation Act (Act 4 of 2006) 12 2.6 The National Energy Act (34 of 2008) 12 2.7 Department of Energy Strategic Plan 2015-2020 12 2.8 White Paper on the Energy Policy of the Republic of South Africa (1998) 13 2.9 National Integrated Resource Plan for South Africa (2010-2030) 13 2.10 Promotion of Administrative Justice Act (Act 3 of 2000) 14 2.11 Health Act (Act No. 63 of 1977) 14 2.12 Health and Safety Act 14 2.13 Integrated Development Plan 14 2.14 Spatial Development Frameworks 15 2.15 International Organisation for Standardization, ISO 14001:2004 15

3 METHODOLOGY ______16 3.1 Assumptions and Limitations 17

4 SITUATIONAL ANALYSIS ______18 4.1 Defining the study area 18 4.2 Land Use 18 - vi –

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

4.3 Population, Age and Gender 20 4.4 Dwelling 20 4.5 Education 21 4.6 Access to piped water 23 4.7 Stakeholder Engagement 24

5 IMPACTS ASSESSMENT ______27 5.1 Methodology to Assess the Identified Impacts 28 5.2 Identification of Impacts 29 5.3 Security of Electricity Supply 29 5.4 Land Use Conflict 30 5.5 Access Control 32 5.6 Visual Impact 32 5.7 Exposure to Electromagnetic Fields 33 5.8 Impacts Arising from the Construction Phase 34 5.8.1 Economic Opportunity 34 5.8.2 Dust Disturbance 35 5.8.3 Noise Disturbance 36 5.8.4 Influx of workers 37 5.8.5 Constriction Access Control, Safety and Security 37 5.8.6 Traffic Disruption 38

6 CONCLUSION ______40

- vii –

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

List of Tables

Table 1: Population Age and Gender 20 Table 2: Table outlining the Activity, Aspects and Impacts of the project 29 Table 3: Identified Impacts and Preferred Alternative 40

List of Figures

Figure 1: Illustration of the transmission and distribution of electricity 2 Figure 2: Map of the Proposed Distribution Lines 3 Figure 3: Locality Map 4 Figure 4: Google Earth image showing the Ward Boundaries that form part fo the study area Error! Bookmark not defined. Figure 5: Google Earth image showing the Land Use around the study area 19 Figure 6: Type of Dwelling 21 Figure 7: Highest Education Level (age 20+) 22 Figure 8: Labour force participation, employment and unemployment rates by years of education (2007) (Evelien & Altbeker, 2013) 22 Figure 9: Access to Piped Water 23 Figure 10: Cattle on the Farm 26 Figure 11: Water Tanker 26 Figure 12: Horse grazing 26 Figure 13: Saolburg Ruiterklub Facilities and area 26 Figure 14: Entrance to Stols Vervoer 26 Figure 15: Current Powerline infrastructure 26

- viii –

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

List of Abbreviations

CLN Customer Load Network Dx Distribution BAR Basic Assessment Report EIA Environmental Impact Assessment EMF Electromagnetic Field EMPr Environmental Management Programme GIS Geographic Information System GN Government Notice IDP Integrated Development Plan ISO International Organisation for Standardization km Kilometre LM Local Municipality MDG Millennium Development Goals MVA Mega Volt Amp NDP National Development Plan NEMA National Environmental Management Act PAJA Promotion of Administrative Justice Act SDF Spatial Development Framework SDG Sustainable Development Goals SEIA Socio-Economic Impact Assessment SMME Small Medium and Micro Enterprises Ss Substation Tx Transmission

- ix –

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

1 INTRODUCTION

Nemai Consulting was appointed by Eskom Holdings SOC Limited to conduct the environmental assessments, in terms of Government Notice (GN) No. R 982 of 4 December 2014 (as amended), for the following proposed projects in Sasolburg, Free State Province:

1. Environmental Impact Assessment Process for the development of the Makalu B substation and associated Transmission Loop-in Lines; and 2. Basic Assessment Process for the The Makalu B Distribution Line Strengthening.

This document serves as the draft Socio-Economic Impact Assessment (SEIA) for the proposed development of the Makalu B Distribution (Dx) Line Strengthening Basic Assessment Process (BAR). A separate Environmental Impact Assessment (EIA) will be undertaken for the Substation and associated Transmission (Tx) loop-in lines; however, a combined public participation process is being conducted for both of these projects.

1.1 Project Background and Motivation

High voltage Tx Lines (i.e. 765 kV, 400 kV and 275 kV) transmit electricity, which is predominantly generated at the power stations located within the Mpumalanga Province, to Eskom’s major substations. At these major substations, the voltage is stepped down to a lower voltage and transmitted to smaller substations via Dx Lines (e.g. 132 kV, 88 kV and 66 kV). The voltage is again stepped down at substations for distribution to the various users via Reticulation Lines. Refer to Figure 1 for an illustration of the various components associated with the transmission and distribution of electricity.

The existing Makalu substation forms part of the Sasolburg Customer Load Network (CLN) in the Free State Grid. The current nature of the load at Makalu substation is predominately industrial / mining, as well as small commercial, residential and traction loads. Makalu substation is connected to the Tx network by four 275 kV lines, namely two from Lethabo Power Station, one to Everest substation and one to Scafell substation.

In 2012 studies indicated that the 88 kV fault levels are higher than the equipment rating at Makalu substation which will result in the 275 / 88 kV transformation at Makalu substation becoming unfirm in 2022 and the Dx network will result in constraints.

A study was initiated to assess a number of options. The findings of the study indicated that Makalu B substation should be established such that load and current embedded generation be shifted off the existing substation to the new proposed substation. This includes a loop in of one of the existing 275 kV Lethabo – Makalu Lines. This constitutes the scope of a separate SEIA Report as part of the Environmental Impact Assessment. The change requires that the existing Dx network be reconfigured, which constitutes the scope of this SEIA Report. The

1

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment project is being planned jointly by both Eskom Tx and Dx in order to ensure alignment, however, each project will be implemented separately by the relevant division.

The proposed project entails reconfiguring the network such that generation and motor loads are supplied at the new Makalu B substation and residential and industrial loads are supplied from the existing Makalu substation.

Figure 1: Illustration of the transmission and distribution of electricity

Two alternative routes for the Dx alignment have been considered; namely Dx Lines Option 1 to Makalu B Site Option 1, and Dx Lines Option 2 to Makalu B Site Option 2, which are 3.3km and 7.5km, respectively (Figure 2).

The study area includes a 1km corridor around the Dx lines (i.e. 500 m on either side of the centre line). This is to allow for any possible deviations from the current proposed alignment of the powerline within this corridor, which may be necessary due to the following factors:

• Findings of the impact assessment and specialist studies; • Outcome of Eskom negotiations with landowners; and • Technical requirements.

2

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Figure 2: Map of the Proposed Distribution Lines

1.1.1 No-Go Option

As standard practice and to satisfy regulatory requirements, the option of not proceeding with the project is included in the evaluation of the alternatives.

• The implications of the no-go option are as follows: • The fault level at the existing Makalu substation will not be decreased, which will prevent the accommodation of the embedded generation; • The Makalu substation will become unfirm in 2022, as indicated by the Tx load forecast; and • The network will not be able to supply load growth in the area.

In contrast, should the proposed Makalu B development not go ahead, any potentially significant environmental issues associated with the project would be irrelevant and the status quo of the local receiving environment would not be affected by the project-related activities. The objectives of the project would however not materialise.

3

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

1.2 Project Location

The project is located within the Metsimaholo Local Municipality and Fezile Dabi District Municipality, in the north of the Free State Province (refer to Figure 3).

Figure 3: Locality Map

The site is located east of the town Sasolburg, which forms part of the Vaal Triangle (Vanderbijlpark, Vereeniging and Sasolburg regions). The proposed infrastructure is bordered by petro-chemical industries to the west and is located on a combination of agricultural and undeveloped land.

The area is already disturbed by urban development, mining and industrial development. There are a few man-made dams/wetlands and natural streams and rivers mostly on the Western side of Sasolburg which may be home to a few animal and plant species.

4

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

1.3 Project Life cycle

1.3.1 Pre-construction

Pre-construction activities include the following two phases:

1. Feasibility phase - This includes selecting a suitable location for the Dx lines as well as a corridor for the line route, which is assessed as part of the BAR. Servitude negotiations are also initiated during this phase. 2. Planning and design phase - This phase, which is only undertaken should environmental authorisation be obtained.

1.3.2 Construction Phase

During the implementation of the project, the construction activities related to the installation of the necessary infrastructure and equipment is undertaken.

The construction period of the Makalu B Dx Lines will take approximately 24 months. It involves the following activities, which are most often undertaken sequentially and by different crews:

• Vegetation Clearance; • Tower pegging; • Construction camp establishment; • Gate installation; • Access roads; • Excavation for foundations; • Foundation of steelwork; • Concrete works; • Erection of steel structures; • Stringing of transmission cables; and • Rehabilitation.

The appointed Contractor will mostly make use of skilled labour for the construction. In those instances where temporary labour is required, Eskom must request that such persons are sourced from local communities as far as possible.

1.3.3 Operation and Maintenance Phase

This phase includes operational activities associated with the maintenance and control of the Dx lines. During operations, Eskom needs to reach the servitude via access roads to perform maintenance of the Dx line. Line inspections are undertaken on an average of 1 – 2 times per year, depending on the area.

5

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

1.4 Environmental Triggers

The following served as triggers for this SEIA.

• Land use: The proposed infrastructure is to be located on land currently used for agriculture (cultivated commercial pivots and fields) and grassland; and • Socio-Economic Environment: Possible impacts to the socio-economic environment during the construction phase and operational phase including a potential loss of livestock though improper access control; land use restrictions associated with the Dx line servitude; and threats to human and animal health.

1.5 Terms of Reference

Summary of Key Issues & Triggers

• Loss of land in project footprint. • Construction-related impacts.

Approach

• Determine the specific local socio-economic, land utilisation and acquisition implications of the project. • Collect baseline data on the current socio-economic environment. • Assess socio-economic impacts (positive and negative) of the project, and quantify the economic impacts. • Undertake a thorough review of the following:

 Minutes of public meetings and individual meetings; and  Comments and Response Report.

• Suggest suitable mitigation measures to address the identified impacts.

1.6 Structure of the report

The remainder of the report is structured as follows:

Section 2: Legal Framework – A description of the statutory and regulatory requirements that inform this report. Section 3: Methodology – Outline of the methodology used to determine the socio-economic impacts of the proposed project. Section 4: Situational Analysis– A desktop analysis into the baseline context on the study area as well as stakeholder engagements undertaken. Section 6: Impact Assessment – The identification of the project activities and an investigation into what aspects of these activities will result in socio-economic impacts. An impact assessment with proposed mitigation measures and recommendations. Section 7: Conclusion – Analysis of alternatives, final remarks and management guidelines for a way forward.

6

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

2 LEGISLATIVE OVERVIEW

Legislated Acts, Policy, Plans and Strategy provide an important framework and governance of the SEIA. This section provides a summary of the important Acts, Policy, Plans and Strategy which were accounted for in this study. Note: this list does not attempt to provide an exhaustive explanation, but rather represents an identification of the most appropriate sections from pertinent pieces of legislation.

2.1 Sustainable Development Goals, 2016

The Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. There are 17 SDG which require that all 3 dimensions of sustainable development – economic, social and environmental – are addressed in an integrated manner. Almost all the SDGs are directly related to health or will contribute to health indirectly.

Goal 1. End poverty in all its forms everywhere

Goal 2. End hunger, achieve food security and improved nutrition, and promote sustainable agriculture

Goal 3. Ensure healthy lives and promote well-being for all at all ages

Goal 4. Ensure inclusive and equitable quality education and promote life-long learning opportunities for all

Goal 5. Achieve gender equality and empower all women and girls

Goal 6. Ensure availability and sustainable management of water and sanitation for all

Goal 7. Ensure access to affordable, reliable, sustainable, and modern energy for all

Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Goal 10. Reduce inequality within and among countries

Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable

Goal 12. Ensure sustainable consumption and production patterns

Goal 13. Take urgent action to combat climate change and its impacts*

Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

7

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Goal 17. Strengthen the means of implementation and revitalize the global partnership for sustainable development

These goals build on the successes of the Millennium Development Goals (MDGs) which were established after the Millennium Summit in 2000 by the United Nations Development Programme. The MDGs aim to promote and hasten development among the world’s poorer countries, after economic growth on its own was deemed an inadequate measure of a country’s developmental progress (NPC, 2013).

The South African Government developed the National Development Plan (NDP) which aims to eliminate poverty and reduce inequality by 2030. The objectives of the NDP have similar aims to a number of the SDGs.

The proposed Development of the Makalu B Distribution Lines directly contributes to the achievement of Goal 7, Goal 9, Goal 12.

2.2 Constitution of the Republic of South Africa (Act 108 of 1996)

As contained in the South Africa Constitution, the rights of all South Africans are protected as outlined in Chapter 2: The Bill of Rights. These rights form the basis of democracy in South Africa. The Constitution (including the Bill of Rights) binds the Legislature, the Executive, the Judiciary and all organs of state and is the overriding legislation of South Africa.

While all items in the Bill of Rights are considered to be of equal importance, key items in the Bill of Rights that have a bearing in this project include (but are not necessarily limited to):

• Life - everyone has the right to life; • Human Dignity - everyone has inherent dignity and the right to have their dignity respected and protected; • Equality - everyone is equal before the law and has the right to equal protection and benefit from the law; • Health care, food, water and social security - Everyone has the right to have access to health care services; sufficient food and water; and social security. • Environment - everyone has the right to an environment that is not harmful to their health or well-being, and to have the environment protected for the benefit of present and future generations, through reasonable legislative and other measures that prevent pollution and ecological degradation, promote conservation and secure

8

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

ecologically sustainable development and the use of natural resources while promoting justifiable economic and social development; • Property - no person may be deprived of property except in terms of the law of general application, and no law may permit arbitrary deprivation of property. Property may be expropriated only in terms of the law of general application for a public purpose or in the public interest. The public interest includes South Africa’s commitment to land reform and to reforms to bring about equitable access to all South Africa’s natural resources - property is not limited to land; • Health care, food, water and social security: Everyone has the right to have access to health care services, including reproductive health care, sufficient food and water and social security, including, if they are unable to support themselves and their dependents, appropriate social assistance; • Freedom and security of the person - Everyone has the right to freedom and security of the person. Everyone has the right to bodily and psychological integrity. • Language and culture - everyone has the right to use the language and participate in the cultural life of their choice, but no one exercising these rights may do so in a manner inconsistent with any provision of the Bill of Rights; • Cultural, religious and linguistic communities - persons belonging to cultural, religious or linguistic communities may not be denied the right, with other members of the that community to enjoy their culture, practice their religion and use their language, and to form, join and maintain cultural, religious and linguistic associations and other organs of civil society. These rights must be exercised in a manner that is consistent with any provision in the Bill of Rights; • Freedom of religion, belief and opinion - everyone has the right of freedom of conscience, religion, thought, belief and opinion; • Access to information - everyone has the right of access to any information held by the state and any information that is held by another person and that is required for the exercise or protection of any rights; and • Just administrative action – everyone has the right to administrative action that is lawful, reasonable and procedurally fair. Everyone whose rights have been adversely affected by administrative action has the right to be given written reasons. This right has been given effect via the Promotion of Administrative Justice Act (Act 3 of 2000) (PAJA).

Chapter 7 of the Constitution of South Africa provides municipalities with the mandate and the right to govern, on its own initiative, the local government affairs of its community, subject to national and provincial legislation. The national or a provincial government may not compromise or impede a municipality’s ability or right to exercise its powers or perform its functions.

9

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

2.3 National Development Plan (2011)

The National Development Plan (NDP) of 2010 proposes to “invigorate and expand economic opportunity through infrastructure, more innovation, private investment and entrepreneurialism.

The NDP aims to ensure that all South Africans attain a decent standard of living through the elimination of poverty and reduction of inequality. The core elements pertaining to a decent standard of living identified in the NDP are:

• Housing, water, electricity and sanitation; • Safe and reliable public transport; • Quality education and skills development; • Safety and security; • Quality health care; • Social protection; • Employment; • Recreation and leisure; • Clean environment; and • Adequate nutrition.

This project will directly address the first point of providing electricity as part of creating a decent standard of living for South Africans.

2.4 National Environmental Management Act (Act 107 of 1998)

The National Environmental Management Act (NEMA) (Act 107 of 1998) and the principles contained therein have a significant influence on the need to identify and assess socio- economic impacts. The NEMA principles are based on the basic rights as set out in Chapter 2 (Bill of Rights) of the Constitution.

According to Barber (2007:16) the following NEMA principles have an important impact on social issues:

• Environmental management must place people and their needs at the forefront of its concern, and serve their physical, psychological, developmental, cultural and social interests equitably; • Development must be socially, environmentally and economically sustainable; • Environmental management must be integrated, acknowledging that all elements of the environment are linked and interrelated, and it must take into account the effects of decisions on all aspects of the environment and all people in the environment by pursuing the selection of the best practicable environmental option;

10

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

• Environmental justice must be pursued so that adverse environmental impacts shall not be distributed in such a manner as to unfairly discriminate against any person, particularly vulnerable and disadvantaged persons; • Equitable access to environmental resources, benefits and services to meet basic human needs and ensure human well-being must be pursued and special measures may be taken to ensure access thereto by categories of persons disadvantaged by unfair discrimination; • The participation of all interested and affected parties in environmental governance must be promoted, and all people must have the opportunity to develop the understanding, skills and capacity necessary for achieving equitable and effective participation, and participation by vulnerable and disadvantaged persons must be ensured; • Decisions must take into account the interests, needs and values of all interested and affected parties, and this includes recognising all forms of knowledge, including traditional and ordinary knowledge; • Community well-being and empowerment must be promoted through environmental education, the raising of environmental awareness, the sharing of knowledge and experience and other appropriate means; • The social, economic and environmental impacts of activities, including disadvantages and benefits, must be considered, assessed and evaluated, and decisions must be appropriate in light of such consideration and assessment; • The right of workers to refuse work that is harmful to human health or the environment and to be informed of dangers must be respected and protected; • Decisions must be taken in an open and transparent manner, and access to information must be provided in accordance with the law; • The environment is held in public trust for the people. The beneficial use of environmental resources must serve the public interest and the environment must be protected as the peoples’ common heritage; and • The vital role of women and youth in environmental management and development must be recognised and their full participation therein must be promoted.

As part of the BAR Process, an assessment on how the proposed activities may affect the social, economic and cultural aspects of the environment must be undertaken through a process of consultation. The SEIA creates the opportunity for the inclusion/participation of communities in the Environmental Management Process. Participation in a SEIA can lead to the empowerment of a community by giving it a channel through which its voice can be heard. This report complies to the Appendix 6 of the 2014 EIA Regulations as amended.

11

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

2.5 Electricity Regulation Act (Act 4 of 2006)

The aim of the Act is “To establish a national regulatory framework for the electricity supply industry; to make the National Energy Regulator the custodian and enforcer of the national electricity regulatory framework; to provide for licences and registration as the manner in which generation, transmission, distribution, trading and the import and export of electricity are regulated; and to provide for matters connected therewith.”

The Development of the Makalu B Distribution Lines Strengthening will supplement the supply of electricity to municipalities on the region.

2.6 The National Energy Act (34 of 2008)

Amongst others an objective of the Act is to:

“To ensure that diverse energy resources are available, in sustainable quantities and at affordable prices, to the South African economy in support of economic growth and poverty alleviation, taking into account environmental management requirements and interactions amongst economic sectors; to provide for energy planning, increased generation and consumption of renewable energies, contingency energy supply, holding of strategic energy feedstocks and carriers, adequate investment in, appropriate upkeep and access to energy infrastructure; to provide measures for the furnishing of certain data and information regarding energy demand, supply and generation; to establish an institution to be responsible for promotion of efficient generation and consumption of energy and energy research; and to provide for all matters connected therewith.”

The aim of the proposed Development of the Makalu B Distribution Lines Strengthening is to ensure the supply of electrical energy to the Sasolburg Area.

2.7 Department of Energy Strategic Plan 2015-2020

The aim of the Department of Energy Strategic Plan is to “Formulate energy policies, regulatory frameworks and legislation, and oversee their implementation to ensure energy security, promotion of environmentally-friendly energy carriers and access to affordable and reliable energy for all South Africans.”

The DoE strategic outcome-orientated goals include:

“1. Security of Supply: To ensure that energy supply is secure and demand is well managed.

1. Infrastructure: To facilitate an efficient, competitive and responsive energy infrastructure network. 2. Regulation and Competition: To ensure that there is improved energy regulation and competition.

12

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

3. Universal Access and Transformation: To ensure that there is an efficient and diverse energy mix for universal access within a transformed energy sector. 4. Environmental Assets: To ensure that environmental assets & natural resources are protected and continually enhanced by cleaner energy technologies. 5. Climate Change: To implement policies that adapt to & mitigate the effects of climate change. 6. Corporate Governance: To implement good corporate governance for effective and efficient service delivery.

Considering the above the proposed project is in line with the DoE Strategic Plan 2015-2020 as the Development of the Makalu B Distribution Lines Strengthening will contribute towards facilitating an efficient, competitive and responsive energy infrastructure.

2.8 White Paper on the Energy Policy of the Republic of South Africa (1998)

The White Paper indicates that: “Before deriving detailed energy policy objectives, however, it is necessary to understand the energy policy context and energy sector challenges. Three aspects are considered:

• economic, social and environmental policies and forces; • the nature of the South African energy sector and its linkages with broader forces; and • what the sector needs to achieve overall policy goals.”

2.9 National Integrated Resource Plan for South Africa (2010-2030)

One of the points in the conclusions of the Plan indicates that: “The assessment of the transmission impact of the Update indicates that five possible Transmission Power Corridors will be required to enable key generation scenarios. The main difference between these scenarios is the physical amount of transmission infrastructure within these corridors and their timing. The transmission impact assessment has been based on the reasonable spatial location of the future generation taking into account current knowledge and information. Therefore, there is still opportunity to consider better generation location strategies in the longer term. One generation strategy that can provide advantages in terms of reducing the network integration costs and minimising system losses is to consider a large distributed generation network with more appropriately sized units. These would be smaller sized plants that can be integrated into the distribution networks utilising their infrastructure and reducing the loading of the Transmission Grid. Initially this can be achieved with PV but later extended, with the associated transport infrastructure, to gas and even coal plants located near large loads or major load centres.”

Considering the above the Development of the Makalu B Distribution Lines Strengthening will increase the capacity within the existing Dx Power Corridors.

13

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

2.10 Promotion of Administrative Justice Act (Act 3 of 2000)

The right to administrative action stated in the Bill of Rights has been given effect via the Promotion of Administrative Justice Act (PAJA) (Act 3 of 2000). The provisions of the PAJA apply to all decisions of all organs of state exercising public power or performing a public function in terms of any legislation that adversely affects the rights of any person (Babour, 2007).

PAJA also prescribes the procedure that must be followed by an organ of state when it takes decisions. If an organ of state implements a decision that impacts on an individual or community without granting them an opportunity to comment, the ultimate decision will be unlawful and therefore may be set aside. The Act also imposes a duty on organs of state to explain and justify the manner in which they have reached their decisions and, in the case of social issues, how these issues were considered in the decision-making process (Babour, 2007).

2.11 Health Act (Act No. 63 of 1977)

The Health Act (Act No. 63 of 1977) provides for measures for the promotion of the health of the inhabitants of the Republic; to that end to provide for the rendering of health services; to define the duties, powers and responsibilities of certain authorities which render health services in the Republic; to provide for the co-ordination of such health services; to repeal the Public Health Act of 1919; and to provide for incidental matters.

2.12 Health and Safety Act

The purpose of this Act is “To provide for the health and safety of persons at work and for the health and safety of persons in connection with the use of plant and machinery; the protection of persons other than persons at work against hazards to health and safety arising out of or in connection with the activities of persons at work; to establish an advisory council for occupational health and safety; to provide for matters connected therewith.”

The activities associated with the construction of the project will be subjected to the provisions of this Act and will influence the construction associated mitigation measures throughout this report.

2.13 Integrated Development Plan

The Municipal Systems Act 32 of 2000 requires municipalities to adopt and review their Integrated Development Plans (IDP), and throughout this process must consult and involve the public. Every municipality in South Africa is required to produce an IDP, in which the city's future is mapped over the short, medium and long term. Issues that are considered include

14

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment spatial planning, disaster management, finances, performance targets and economic development.

The IDPs consulted in this report include the 2016/17 Fezile Dabi DM IDP and 2015/16 Metsimaholo LM IDP.

2.14 Spatial Development Frameworks

A Spatial Development Framework (SDF) is one of the key service delivery tool and a component of a municipality’s IDP as required by the Municipal Systems Act 32 of 2000. Preparation of the SDF is the responsibility of both the local and district municipalities. It is a tool that is meant to effectively and sufficiently address the spatial inequities as well as inefficiencies of our society.

The primary purpose of the spatial framework is to create a competent spatial form thus providing, in NDP terms, a framework within which to discuss future development of the local/district space economy in the context of the provincial and national space economies.

The SDFs consulted in this report include 2016/17 Reviewed Spatial Development Framework for the Metsimaholo LM, 2014 Free State Provincial Spatial Development Framework; and 2016/17 Reviewed Spatial Development Framework for the Metsimaholo LM.

The proposed footprint of Makalu B falls within an area designated for industrial use, according to the Metsimaholo Local Municipality SDF for 2016 / 2017, and is thus not in conflict with the desired state of the land.

2.15 International Organisation for Standardization, ISO 14001:2004

The International Organisation for Standardization (ISO) is used for identifying impacts. The ISO 14001: 2004 – Environmental Management Systems definitions for aspect, activity and impact are used in keeping with best practice.

ISO 14001:2004 specifies requirements for an environmental management system to enable an organisation to develop and implement a policy and objectives and information about significant environmental aspects. It applies to the environmental aspects that the organisation identifies, namely, those which it can control and those which it can influence.

15

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

3 METHODOLOGY

A SEIA is an interactive process by nature which relies on both desktop research as well as input from the community. SEIA’s assist the community in being part of the environmental decision-making process, and empowering communities to participate in decisions that will affect their livelihoods (Department of Environmental Affairs and Tourism, 2005).

The aim of the SEIA is to minimise the unintended consequences of the project on the receiving environment and to anticipate implementation risks to encourage measures to mitigate them.

The SEIA will focus on minimising adverse impacts of the proposed development while aiming to maximise the beneficial impacts. The SEIA sets out the socio-economic baseline which is then used to predict impacts and produce recommendations for mitigation. Therefore, the report is largely structured in two parts. First, a social and economic baseline is provided which is then followed by the anticipated and proposed impacts of the project.

The socio-economic baseline is based on both primary and secondary data. Primary data was collected through a site visits which took place on 22 August 2017 and stakeholder engagements. As the public participation process for the proposed Makalu B Substation and Associated Transmission Loop-In Lines included informing the public on the proposed Makalu B Distribution Line Strengthening, a review of the public participation process as part of the application and scoping phase followed. The outcomes of these engagements and its relevance on the social and economic environment are provided.

Secondary data was accessed through South African databases, available reports and articles, internet searches, all of which are referenced in the text. The required information was collected using different sources from Statistics South Africa Census data; Quantec Research EasyData and through the review of municipal, district and private sector reports.

The discussion of the demographics and the development profile of the municipality were carried out using Census 2011 data, produced by Statistics South Africa. The Census 2011 data is the most comprehensive dataset available for the area at hand. The analysis was conducted using the Census 2011 Ward data.

Data such as gross value added and the unemployment rate were sourced from Quantec Research. Quantec Research (Pty) Ltd is a South African based consultancy which focuses on the marketing, distribution and support of economic and financial data, country intelligence and quantitative analytical software. Quantec Research maintains and distributes a comprehensive set of data collection covering macro and regional socio-economic, industry and international trade data.

A Geographic Information System (GIS) was used to conduct a thorough analysis of the area. The use of GIS brings together the demographic and economic data into graphic form which enables a thorough and accurate analysis.

16

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Impact assessments allows for an estimate of the significance of the identified social and economic impacts to those who will be affected. In addition, the response of the affected parties to such impacts also needs to be clarified (Centre for Good Governance, 2006). All impacts will be analysed with regard to their nature, extent, magnitude, duration, probability and significance (Barbour, 2007).

The determined impacts are clustered around a common issue and are assessed before and after mitigation. The identification of the socio-economic impacts associated with the project is issues-based, with the main headings referring to a common theme addressing several related impacts. Under each of these issues the specific impacts and potential mitigation strategies are discussed for, where relevant, pre-construction, construction and operation phases.

3.1 Assumptions and Limitations

• The study was undertaken with the information available to the specialist at the time of executing the study, within the available time frames and budget. The sources consulted are not exhaustive, and additional information which might strengthen arguments, and/or identify additional information might exist. However, the specialist did endeavour to take an evidence-based approach in the compilation of this report and did not intentionally exclude information relevant to the assessment. • This report is the result of a short-term study; no long-term studies were conducted on site. As a result, the opportunity for primary data collection was limited. This study therefore depends heavily on secondary or existing data sources mentioned in Section 3. It is assumed that these sources are dependable and of good quality. • Regardless of the analytical and predictive method employed to determine the potential impacts associated with the project, the impacts are only predicted on a probability basis. The accuracy of the predictions is largely dependent on the availability of data and the degree of understanding of the socio-economic fabric of the receiving environment. • It is assumed that all information provided by the Environmental Assessment Practitioner is accurate, as is the information provided in other specialist studies. • It was assumed that the information gathered through the public participation process is a true reflection of the attitude of the public towards the project and as such is accurately recorded. • The study was completed using the Statistics South Africa Census 2011 data. While it is acknowledged that the data is somewhat outdated, it is the most comprehensive primary data available. • It is assumed that information obtained during the interviews provide an honest account of community relationship to the project. It must be noted, however, that meetings are not statistically representative.

17

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

4 SITUATIONAL ANALYSIS

This section provides a detailed description of the social and economic environment. Demographics such as population and gender, education, and utilities are discussed. An economic overview follows with information on employment and industry.

4.1 Defining the study area

There is a geographical impact related to the physical infrastructure. A vast majority of the impacts that are likely to occur from the proposed project will be geographically bound. The closer the proximity to the bulk infrastructure, the higher the impact will be. In order to assess this geographical impact, the Statistics South Africa 2011 Municipal Ward boundaries has been used to analyse data.

Figure 4: Google Earth image showing the Ward Boundaries that form part of the study area

The Ward boundaries relating the proposed development are shown in Figure 4 above. There are three Wards which are directly affected by the proposed development namely, Ward 6, Ward 7 and Ward 18.

4.2 Land Use

Sasolburg is approximately 80 km south of Johannesburg. It is accessible from the regional R57 road passing through Vanderbijlpark (Figure 5). The residential areas in the project area

18

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment include Sasolburg, Zamdela and Vaalpark which lie to the west of the R57. The industrial areas such as Sasol Chemical Industries lies to the east of the R57.

Sasolburg is a chemical city with limited diversification of the industrial and commercial base. The towns economy is heavily reliant on Sasol Chemical Industries. Landuse outside of the urban residential and industrial areas largely comprises of agriculture, open cast and underground mining.

According the Metsimaholo LM SDF, there is a scarcity of developable land in the Sasolburg, mainly due to open cast mines and undermined areas (due to coal extraction) which has resulted in limited expansion possibilities of the urban area.

Figure 5: Google Earth image showing the Land Use around the study area

The development is located just north Sasol Chemical Industries and is situated on agricultural land. The infrastructure is located on the Stols Vervoer farm which is currently houses the Sasolburg Ruiteklub which is the only known horse riding club in Sasolburg. Farming includes cattle farming and mielie plantations. In addition, the head office of Stols Vervoer, a transportation company, is located on the farm.

In terms of land use along the proposed infrastructure, the area is mostly ploughed mielie fields and fields used for cattle grazing. The northern section of the proposed Dx line Option 2 is located on natural fields used for horse grazing.

19

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

4.3 Population, Age and Gender

The total population in the study area 11 898 persons (Table 1). Ward 19 has the highest population of12 660 persons due to a portion of Zamdela falling within the Ward boundary. Ward 18 has the lowest population as the ward largely comprises of agricultural land between Sasolburg and Vanderbijlpark.

Table 1: Population Age and Gender

Age 00 - 14 15 - 34 35 - 64 64 + Total Total Gender M F M F M F M F M F

Ward 6 24% 22% 22% 19% 19% 20% 11% 22% 21% 20% 4 908 Ward 7 18% 17% 18% 16% 14% 17% 12% 23% 17% 17% 4 002 Ward 18 10% 9% 15% 10% 16% 14% 14% 18% 14% 11% 2 988 Age and 52% 48% 55% 45% 49% 51% 37% 63% 52% 48% Gender 11 898 Total 3 258 4 731 3 492 417 11 898 Population The working age population is classified as persons aged 15 – 64 and accounts for seventy percent of the total population. Similarly, the population of men of working age is larger than women. According to the gender profile, the population in the study area varies from the national average as there are slightly more males than females in the area. The variance of the age and gender profile is attributed to the migration of men in search of economic opportunity. Specifically, the migration to Sasolburg would be for opportunities in the chemical and mining industries.

4.4 Dwelling

The characteristics of the dwellings in which households live and their access to various services and facilities provide an important indication of the well‐being of household members. It is widely recognised that shelter satisfies a basic human need for physical security and comfort. According to the Statistics South Africa household classification for 2011, the following definitions apply to formal and informal housing (Figure 6):

• Formal dwelling refers to a structure built according to approved plans, i.e. house on a separate stand, flat or apartment, townhouse, room in backyard, rooms or flatlet elsewhere.; and • Informal dwelling is a makeshift structure not erected according to approved architectural plans, for example shacks or shanties in informal settlements or in backyards.

20

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Type of dwelling

0%0% 15%

Formal Informal Traditional Other

85%

Figure 6: Type of Dwelling

Majority of the households in the study area have formal dwellings on a separate stand or yard on a farm. Fifteen percent of households in the study are informal dwellings.

4.5 Education

Education levels are assessed in order to understand the potential grade or level of employment as well as livelihood of the community. Furthermore, it indicates the functional literacy and skill level of a community (Figure 7).

Over twenty-five percent of the population in all three Wards have no education or have not completed primary education and are considered to be functionally illiterate. Functional illiteracy is defined as a person who has received skills to read and write, but are inadequate to manage daily living and employment tasks that require reading skills beyond a basic level. Usually persons who have a low level of education, up to primary education, are classified as functionally illiterate.

Economic theory proves that education improves the level and quality of human capital, in turn increasing the productivity of individuals. Thus, increasing the output generated per worker. Education facilitates long term growth and is critical to escape the poverty trap.

Economic theory is proven in practice in a study conducted by Altbeker and Storme (2013). The study shows that while the number of graduates in South Africa has more than doubled in the past fifteen years; the unemployment rate amongst graduates has declined to around five percent. Furthermore, the study shows that the change of employment increases as the 21

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment years of education increase. In Figure 8 below a graph taken from the Altbeker and Storme (2013) study that depicts the labour force participation (LFP), and the employment and unemployment rates by years of education in 2007.

Highest educational level (grouped) (Age 20+)

No schooling 0% 11% 5% Some primary 7% 24% Completed primary Some secondary 18% Grade 12/Std 10 5% Higher Unspecified 30% Not applicable

Figure 7: Highest Education Level (age 20+)

Figure 8: Labour force participation, employment and unemployment rates by years of education (2007) (Evelien & Altbeker, 2013)

The study demonstrates that only thirty-three percent of those who had less than secondary education (eleven years or fewer) had jobs. This rose by twenty percent on completion of secondary school. With one extra year of education after secondary school, employment increased to seventy-one percent. Those with higher education again enjoyed ten percent rise

22

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment in employment while post-graduate degree holder’s employment was the highest at ninety-six percent (Evelien & Altbeker, 2013).

The Altbeker and Storme (2013) study, in conjunction with the data shown above, reveal that education levels in the study area are so low that the communities in this study area are structurally geared towards unemployment and thus poverty. The community is economically dependent on the twenty-five percent of the population who have completed high school or some form of higher education.

The intervention of an external entity is required to improve current education levels. A generation of youth with some form of higher education is required to break the poverty cycle in this area.

4.6 Access to piped water

Understanding the water supply provides insight into the municipal service level of service of a community as well as the standard of living (Figure 9).

Access to piped water

Inside dwelling/institution

Water inside yard

0%0%1%0% Community stand: distance 20% less than 200m Community stand: distance 200m and 500m Community stand: distance between 500m and 1km Community stand: distance 79% greater than 1km No access to piped (tap) water Unspecified

Figure 9: Access to Piped Water

Access to piped water is important to understand the level of health in an area. In each of the Wards, while household have access to piped water within the basic level of service, there is a need for improvement of water services in the study area as four percent of households have no access to water services.

23

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Ninety-nine percent of household in the study area have access to piped water with seventy- nine percent of households having piped water within the dwelling.

4.7 Stakeholder Engagement

The following public participation process was undertaken as part of the Application and Scoping Phase of the EIA Process for the Makalu B Substation and Associated Transmission Loop-In Lines. The purpose of public participation includes:

1. Providing IAPs with an opportunity to obtain information about the project; 2. Allowing IAPs to express their views, issues and concerns with regard to the project; 3. Granting IAPs an opportunity to recommend measures to avoid or reduce adverse impacts and enhance positive impacts associated with the project; and 4. Enabling Eskom and the project team to incorporate the needs, concerns and recommendations of IAPs into the project, where feasible.

The public participation process that was followed for the proposed Makalu B development is governed by NEMA and GN No. R 982 of 4 December 2014 (as amended). This process included the following:

• Landowner Notification; • Project Announcement, Review of the Draft Scoping Report and Review of the Final Scoping Report; and • Comments Received on the Draft Scoping Report and Final Scoping Report.

There were no salient matters raised during the public participation phase that have a bearing on the social or economic environment. As the landowner, AOL requested that the project team are mindful of the impact they have on the property during site visits and that the project team are respectful of the safety of the farm. Sasol Satellite Operations provide comments regarding the technical aspects of the project as they have existing pipelines and servitude restrictions which Eskom would need to be mindful of. Other comments related to the public participation process as part of the EIA Process.

A site visit was undertaken at the farm on which the proposed developments are located on 22 August 2017. Stols Vervoer is owned by Mr Fanie Stols and Mr Ivan Stols. The outcome of the meeting and site visit with Mr Ivan Stols produced the following findings:

• The core business is the transport company, Stols Vervoer. Other activities on the farm include cattle farming, mielie plantations and the Sasolburg Horse Riding Club. • Stols Vervoer has been renting from Anglo for the past 15 years. • The Sasolburg Horse Riding Club / Sasolburg Ruiteklub is operational for 30-years and currently has 60 horses. The and is involved in community work. Thus, not only will employment be an issue, the communities of Zamdela, Sasolburg and VaalPark will

24

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

lose a recreational resource. According to Mr Stols, the club cannot be relocated as it is situated on an area which allows for natural feed where the rest of the farm has already been ploughed. • Mr Stols has a strong preference for Dx Line Option 1 as it is on the edge of the farm resulting in less conflict in land use and minimal fragmentation of the farm. Currently there are existing Dx lines in close proximity to the proposed Dx Line Option. The area is used to farm mielies which is the core business of the farm. In addition, the line will be shorter which will be less costly to the project proponent. • Stols Vervoer would object to Dx Line Option 2 based on the cumulative impacts of the B Substation and Associated Transmission Loop-In Lines. The projects in combination would result in the closing of the Sasolburg Ruiterklub or warrant its relocation. In addition, Stols Verveor would be impacted on from a visual and health perspective from the power lines as it closer to the residential area, cattle kraal, horse stables and commercial property. Mr Stols indicated that there are a number of services around the proposed Site 2 which may conflict with the development. • Apart from the Stols family there are no permanent residents on the farm. A hostel is located on the farm but the accommodation serves as temporary stop-over to truck drivers employed by Stols Vervoer. • The farm accesses water via a borehole which is connected to one of the many natural springs on the farm. Septic tanks are used for sanitation services. • Criminal activity on the farm is largely concern rated around cable theft from Eskom infrastructure. Cattle theft is not an issue as it is largely mitigated through security measures.

25

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Figure 10: Cattle on the Farm Figure 11: Water Tanker

Figure 12: View of Industrial Activity Figure 13: Saolburg Ruiterklub Facilities

Figure 14: Entrance to Stols Vervoer Figure 15: Current Powerline infrastructure

26

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

5 IMPACTS ASSESSMENT

The methodology for the identification of impacts comprised three phases. Firstly, the assessment at a screening (or scoping) phase was important to understand the project details, location and possible impacts. In this section, the Geographic Information System was used to conduct a thorough analysis of the area. Project details were understood and located.

Secondly, a desktop study was undertaken. Data on the community such as population statistics; education; and services were analysed using Census 2011 data. The economic environment of the community was also analysed. A desktop study is important to understand the social and economic conditions of the area. It allows one to identify the challenges faced by the community.

Finally, an assessment of the Comments and Responses as well as of all engagements undertaken as part of the public participation process were reviewed. The assessment of social impacts is complex because of the multi-dimensional nature of human interactions, where an impact can a group of stakeholders differently. There is also the inter-connectedness of impacts, whereby a number of impacts are related and when assessed cumulatively, the implications may be of significance.

Using this methodology, aspects were identified from the proposed activities. These aspects have triggered impacts which are discussed in Section 5. In order to contextualise the impacts, the activity and aspects have been outlined and discussed below.

For the purposes of this section, ISO 14001-2015 definitions applicable to the project include: Activity – Defined as a distinct process undertaken by an organisation for which a responsibility can be assigned, these include facilities or pieces of infrastructure that are possessed by an organisation. Aspect – Defined as elements of an organisation’s activities or products or services that can interact with the environment. Impact – Defined as any change to the environment, whether adverse or beneficial, wholly or partially resulting from an organisation’s environmental aspects.

27

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

5.1 Methodology to Assess the Identified Impacts

When considering an assessment of the impacts, the following definitions apply.

Nature The project could have a positive, negative or neutral impact on the environment.

Local – extend to the site and its immediate surroundings. Regional – impact on the region but within the province. Extent National – impact on an interprovincial scale. International – impact outside of South Africa. Degree to which impact may cause irreplaceable loss of resources: Low – natural and social functions and processes are not affected or minimally affected. Magnitude Medium – affected environment is notably altered; natural and social functions and processes continue albeit in a modified way. High – natural or social functions or processes could be substantially affected or altered to the extent that they could temporarily or permanently cease. Short term – 0-5 years. Medium term – 5-11 years. Long term – impact ceases after the operational life cycle of the activity either Duration because of natural processes or by human intervention. Permanent – mitigation either by natural process or by human intervention will not occur in such a way or in such a time span that the impact can be considered transient. Almost certain – the event is expected to occur in most circumstances. Likely – the event will probably occur in most circumstances. Probability Moderate – the event should occur at some time. Unlikely – the event could occur at some time. Rare/Remote – the event may occur only in exceptional circumstances. Provides an overall impression of an impact’s importance, and the degree to which it can be mitigated. The range for significance ratings is as follows- 0 – Impact will not affect the environment. No mitigation necessary. Significance 1 – No impact after mitigation. 2 – Residual impact after mitigation. 3 – Impact cannot be mitigated. Information on the impacts together with literature from social science journals, case Mitigation studies and field work will be used to provide mitigation recommendations to ensure that any negative impacts are decreased and positive benefits are enhanced. Monitoring usually involves developing and implementing a monitoring programme Monitoring to identify deviations from the proposed action and to manage any negative impacts. The recommended mitigation measures will also include monitoring measures.

28

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

5.2 Identification of Impacts

In an effort to capture the potential impacts associated with the proposed infrastructure, an activity – aspect – impact table was created (Table 2). The Table presents an overview of the potential impacts associated with aspects during the various stages of the project. Some impacts including proposed mitigation measures are thereafter discussed in detail while the remaining impacts not discussed in this report are addressed in a separate specialist study as part of the EIA study. If the impact is not significant then no further investigation is recommended.

Table 2: Table outlining the Activity, Aspects and Impacts of the project

Activity Aspect Potential Impact

Conflicted land uses Alteration of land use Loss of income and employment Economic value of local land Supply of Electricity Conflicted land uses Loss of livelihood related to loss of land for Electricity Generation agricultural activity Sustained economic and social beneficiation from the continued supply of electricity Proximity to construction work and associated inconvenience and dangers. Vegetation Clearance; Sense of place Tower pegging; Construction camp Employment of local people establishment; Gate Sourcing of equipment, machinery and services installation; Excavation locally Construction of for foundations; substation and Noise Foundation of power lines steelwork; Concrete Dust works; Erection of steel Influx of workers structures; Stringing of transmission cables; Temporary road closures and increased traffic and Rehabilitation. Impact on heritage and culture Increased Access Purchase of land / Acquisition of land establishment of Conflict of land use as a result of the servitude servitude

5.3 Security of Electricity Supply

The Transmission Development Plan (TDP) 2014 – 2023 indicated that load growth in the area will result in the 275 / 88 kV transformation at Makalu substation becoming unfirm in 2022. The introduction of Makalu B and the reconfiguration of the Dx network will result in decreasing the fault level at Makalu substation and enabling embedded generation to be accommodated with ease. 29

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Electricity provision is one of the key development priorities of the Metsimaholo Local Municipality. Two of the strategies listed in the municipal IDP include (1) addressing electricity bulk infrastructure backlog and (2) electricity network connection and bulk supply. The municipality purchases electricity from Eskom.

The construction of the proposed Tx line has become necessary as part of Eskom’s undertaking to upgrade the country’s existing electricity infrastructure. The existing Makalu substation forms part of the Sasolburg Customer Load Network (CLN) in the Free State Grid. The current nature of the load at Makalu substation is predominately industrial / mining, as well as small commercial, residential and traction loads.

The proposed footprint of Makalu B falls within an area designated for industrial use, according to the Metsimaholo Local Municipality SDF for 2016 / 2017, and is thus not in conflict with the desired state of the land. The final selected substation site will sterilise land for other development.

The economic opportunities and benefits from sustained electricity supply will continue to benefit the local area irrespective of which of the alternatives are preferred.

Environmental Feature Impact on the Economy from Sustained Electricity Supply Project life-cycle Construction and Operational Phase Potential Impact Proposed Management Objectives / Mitigation Measures • The development potential of the supply area is increased through the improved provision of electricity services. This will be Sustained Economic a positive impact for the municipality and the community as it Support allows for security of supply. • The project will result in sustained social and economic opportunities and benefits from electricity supply. Nature Extent Magnitude Duration Probability Significance Before Positive Local High Permanent Likely 2 Mitigation After Mitigation Positive Regional High Permanent Likely 3 Significance of The economic opportunities and benefits from sustained electricity supply will Impact and continue to benefit the local area irrespective of which of the alternatives are Preferred preferred. Alternatives

5.4 Land Use Conflict

It is anticipated that the current land use activities will conflict with the proposed development. In order to minimise the opportunity cost of future economic use of the land, Eskom had engaged with the landowner regarding its future development plans for the land in questions. The proposed layouts have been amended to have limited impact on future plans of the landowner. However, until such time that AOL intends to alter the land use to away from agriculture to mining, there exists an opportunity cost of agricultural activity owing the land use being denied as a result of the proposed Dx lines which is borne by the farmer.

30

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

The scale of the loss is anticipated to vary based on the site selection. Dx lines Option 1 is a short route located on mielie plantations. The loss of land will be substantially less than what is required for Dx Line Option 2. More land will be subjected to restriction should Option 2 be selected.

Site 1 is situated on the edge of the farm boundary which limits the fragmentation of the affected farm. There are currently Dx lines within the vicinity of the proposed Site 1 and therefore the is less visual conflict of land use based on aesthetic value of the land.

At Site 2, the impact has greater significance visually as it is located more central to farming and residential operations. There proposed Dx Lines Option 2 will be visible from the entrance road into the farm. additionally, given the extra length of the lines, there will be greater fragmentation of the farm.

It is noted that the project is running in conjunction with the proposed Makalu B Substation and Tranmission Loop-in Lines. The proposed Substation Site 2 will result in the loss of the Sasolburg Ruiterklub, an operational horse riding club. The loss of the Sasolburg Ruiterklub will have an impact on employment, income and recreation within the community. The club employs two families full time and provides services to private clients. It also runs a community service given access to its horses and facilities to disadvantaged families who cannot afford the service. While the Dx lines form part of a separate environmental authorisation process, the processes have been aligned to account for cumulative impacts of the Makalu B project. The cumulative impact on land use for Dx Option 2 is significantly higher than Dx Option 1.

Apart from the farming infrastructure, there are a number of pipelines that are located on along the internal road granting access to the Stols Vervoer. Eskom have already engaged with Sasol and other industries regarding the placement and construction limitations of the proposed infrastructure.

Environmental Feature Land Use Conflicts Project life-cycle Pre-Construction, Construction and Operational Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Agreements with directly affected must be reached. These agreements must discuss compensation if required by the landowner. Compensation should not be limited to only land, but Land use conflicts should include compensation for the business, for loss of current and future income as well as for compensation of all structures, restriction of land use and loss of income due to land use being denied. Nature Extent Magnitude Duration Probability Significance Before Negative Local Medium Permanent Likely 2 Mitigation After Mitigation Negative Local Low Permanent Moderate 2 The project will create land use conflicts irrespective of the alternative that is Significance of chosen. However, in consideration of the above, preference is shown to Dx line Impact and Option 1 as it has reduced visual impacts and results in less fragmentation of the Preferred property. In addition, the cumulative impact social and economic is of less Alternatives significance than.

31

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Environmental Feature Land Use Conflicts Project life-cycle Pre-Construction, Construction and Operational Phase Potential Impact Proposed Management Objectives / Mitigation Measures Dx Line Option 2 is considered close to a fatal flaw unless the Sasolburg Ruiterklub can be relocated to a suitable location.

5.5 Access Control

Eskom will require access to the proposed infrastructure for maintenance activities. Maintenance activities are specialised and are, therefore, carried out by Eskom employees.

The contractor should be mindful of the landowner’s current security practices to mitigate against the risk to livestock as a result of construction-related hazards as well as damage to property (e.g. gates, fences, structures).

In order to ensure the safety of the land users who have Eskom Infrastructure, mitigation measures that serve as deterrents to cable theft should be applied.

Environmental Feature Access Control Project life-cycle Operational Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Consult with property owners, local authorities and communities Access Control to ensure that all affected parties are informed of the timing and extent of maintenance works. Nature Extent Magnitude Duration Probability Significance Before Almost Negative Local Low Short Term 2 Mitigation Certain Almost After Mitigation Negative Local Low Short Term 1 Certain Access to the site will be limited during the operation for short period of time. Significance of Maintenance of the lines is required irrespective of the site alternatives chosen. Impact and Dx Lines Option 1 is situated further away from the residential and commercial Preferred operations on Stols Vervoer. It is therefore slightly preferred as it increases Alternatives proximity from cable theft and other potential opportunistic criminal activity related to the proposed development.

5.6 Visual Impact

Visual and aesthetic impacts are highly subjective. The impacts are usually considered to be most obstructive when the development is dissimilar to other developments in the receiving environment. Mitigation for visual intrusiveness of large elements of electrical infrastructure is unachievable.

Dx Line Option 1 is situated close to the existing railway line and existing Dx lines. As Dx Lines Option 2 is longer, it traverses away from existing Eksom infrastructure towards the main access road to the farm and then traverses north towards the kraal, Sasolburg Ruiteklub and

32

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment residences. The kraal. Sasolburg Ruiteklub and residences have more aesthetic value. Of the two alternatives, Dx Lines Option 2 has a greater anticipated visual impact.

Environmental Feature Visual Impact Project life-cycle Construction Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Consult with affected landowner on the effect of visual impacts. Visual Impact • Ensure rehabilitation activity takes place as swiftly as possible. Nature Extent Magnitude Duration Probability Significance Before Negative Local High Permanent Likely 3 Mitigation After Mitigation Negative Local High Permanent Likely 3 Significance of Negative impacts owing to the erection of electrical infrastructure will be Impact and experienced irrespective of the site alternative that is chosen. Dx Lines Option 1 Preferred is preferred as there are existing Dx lines thus the erection of new power lines will Alternatives not alter the visual impact as significantly as Dx Lines Option 2.

5.7 Exposure to Electromagnetic Fields

Electromagnetic Fields (EMFs) are produced from Extra High Voltage electrical equipment. The electric field is an invisible “force” generated by the voltage on a conductor. Close to the conductor this field is at its maximum and decreases the further one moves away from the conductor. The magnetic field is also an invisible force, generated by the current flowing in the conductors. The intensity of the magnetic field also drops rapidly the further one moves away from the conductor. Apart from the magnitude of the voltage and current applied to a conductor, the intensity of the EMF depends on the height of the conductors above ground, and the spacing between the conductors.

Eskom is guided by exposure guidelines for electric and magnetic fields as given by the International Commission on Non-Ionising Radiation Protection. Furthermore, substations are designed in accordance with standards of the International Radioactive Protection Agency.

A number of studies have been undertaken internationally on the biological impact of EMF fields. To date, no conclusive evidence of any health-related impacts has been advanced. Eskom itself is involved in local research on the impact on EMFs on human and animal health. The main drive is to measure the electromagnetic environment around it’s lines and substations to determine the levels of public and employee exposure.

The determination of health impacts falls beyond the scope of this report; however, it is important to bring attention to the uncertainty of health-related impacts from EMF exposure. In the case of the proposed development, there are no nearby residential areas located in proximity to the proposed development. Rather, Eskom staff, farm workers and livestock are most likely to be affected exposure to EMFs.

33

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

A calculation on the approximate linear distance to areas of human population was conducted for the proposed substations. It is noted that livestock and wild animals are not accounted for in this calculation.

• Dx Lines Option 1: o The Stols family residence and cattle kraal is situated approximately 3.5 km away; and o Zamdela is located approximately 600 meters away. • Dx Lines Option 2: o The Stols family residence is situated approximately 800 m away; o The cattle kraal is situated 500 m away; and o Zamdela is located approximately 600 meters away.

It is assumed that should Dx Lines Option 2 be selected, there will be no EMF exposure to the Sasolburg Ruiterklub as it will have either been shut down or relocated.

Environmental Feature Exposure to Electromagnetic Fields Project life-cycle Construction and Operational Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Education the affected landowner on EMFs. Eskom should bring the landowners and farmers attention to the fact that reduced Exposure to EMF proximity of farm workers and livestock may reduce any potential for harmful effects on exposure to EMF. Nature Extent Magnitude Duration Probability Significance Before Negative Local Medium Permanent Likely 3 Mitigation After Mitigation Negative Local Low Permanent Likely 2 Significance of Negative impacts owing to the exposure of EMFs will take place irrespective of the Impact and site alternative is chosen. However, Dx Lines Option 1 is situated further from Preferred people, livestock and commercial activity and is therefore the preferred alternative. Alternatives

5.8 Impacts Arising from the Construction Phase

The construction activity will impact the social environment both positively and negatively. Given the nature of the project area, construction activity is likely to cause a number of social nuisances as well as possible economic implications on the communities and commercial activities.

5.8.1 Economic Opportunity

It is important to note that the construction of a substation is a specialised undertaking requiring skilled people. It is likely that the appointed contractors will bring in skilled staff who may not be based in Sasolburg. Thus, there will be limited job opportunities to unskilled job seekers on-site and in construction camps.

34

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

The local community can benefit from direct employment as well as through the supply of goods and services to the appointed contractors. It is recommended that Eskom ensures that the appointed contractor maximises SMME involvement in the supply of material goods and services to offset the limited job opportunities that will be available.

Through local participation in the construction, profits generated will stay in the area raising the economic activity and increasing welfare resulting in induced economic opportunity. In South Africa, most employment is generated through small and medium business. Given the size of the proposed project, the impact will be localised to Sasolburg.

Employment is a sensitive issue and this project has the potential to impact positively. Education levels indicate the level of skill one may have and the degree to which one can be skilled. In a sub-regional study area where less than twenty percent of the population over age 20 have matriculated, it is not likely that many people are skilled and highly skilled.

Attempts to break the poverty cycle of the area require more than secondary school education. Higher education or further skills training is required. The benefits arising out of the construction phase will be temporary and therefore it is recommended that SMME involvement is maximised.

Environmental Feature Economic Opportunities arising from the Construction Phase Project life-cycle Construction Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Local SMMEs should be given an opportunity to participate in the SMME Creation construction through the supply of services, material or equipment. • The main contractor should employ local labour from residential Job Creation and Skills the three Wards as far as possible during the construction phase. Development • The principles of Expanded Public Works Programme can be used during construction. Nature Extent Magnitude Duration Probability Significance Before Short Positive Local Medium Likely 1 Mitigation Term Short After Mitigation Positive Local Low Likely 3 Term Those who will benefit during the construction is limited to those who actively Significance of participate in the construction activity through employment, sub-contracting or Impact and other economic opportunities. Active participation should be encouraged. The Preferred benefits on such a construction will take place irrespective of which site is Alternatives preferred.

5.8.2 Dust Disturbance

During the construction phase the communities will be exposed to increased dust. The generation of dust stems from activities such as earthworks as well as vehicular movement during construction. This situation will be worse during the dry season and during windy seasons. Air borne particulates may pose a hazard to residents in the vicinity or downwind of the construction site that suffer from upper respiratory tract problems. Mitigation through dust suppression methods will allow for this impact to be effectively managed.

35

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Environmental Feature Dust Disturbance Project life-cycle Construction Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Dust and disturbance can be mitigated through the use of appropriate dust suppression mechanisms. • Mitigation measures management should be adhered to according to the relevant specialist studies. Increase in Dust • Disturbances during the construction phase can be successfully mitigated through contractor specifications issued at tender stage and through monitoring of contractor performance during the construction phase. Nature Extent Magnitude Duration Probability Significance Before Negative Local Medium Short Term Moderate 2 Mitigation After Mitigation Negative Local Low Short Term Moderate 1 Significance of Impact and Negative impacts owing to the dust disturbance will be experienced irrespective of Preferred the site alternative that is chosen. Alternatives

5.8.3 Noise Disturbance

During the construction, heavy equipment will be required for the site clearance, road construction and the construction of the substation itself. Noise generation will be unavoidable. The degree of noise, frequency of noise and individual perception are all important considerations when determining the impact on noise. There is no residential community adjacent to the site so the impact of noise disturbance is not anticipated to be of significance. However, the contractor should be mindful of the proximity to livestock during the construction.

Environmental Feature Noise Disturbance Project life-cycle Construction Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Restrict construction activities and vehicle movement to normal working hours. • Where necessary engage with the land owner to ensure livestock are not in close proximity to the construction activity during times Noise impacts where noise levels are of significance. • Disturbances during the construction phase can be successfully mitigated through contractor specifications issued at tender stage and through monitoring of contractor performance during the construction phase. Nature Extent Magnitude Duration Probability Significance Before Negative Local Medium Short Term Likely 2 Mitigation After Mitigation Negative Local Low Short Term Moderate 1 Significance of Impact and Negative impacts owing to the noise levels will be experienced irrespective of the Preferred site alternative and layout that is chosen. Alternatives

36

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

5.8.4 Influx of workers

It is not expected that this project will bring in a large number of job seekers to the area, given the specialisation of the work. There is not expected to be a large change in the demographics of the area as a result of the project.

Environmental Feature Dust Disturbance Project life-cycle Construction Phase Potential Impact Proposed Management Objectives / Mitigation Measures • All employment of locally sourced labour should be controlled on a contractual basis. If possible, and if the relevant Ward Councillors deem it necessary, the employment process should include the affected Ward Councillors. Influx of workers • People in search of work are likely to move into the area however, the project will create a limited number of job opportunities. Locally based people should be given an opportunity. No staff accommodation should be allowed on site. Nature Extent Magnitude Duration Probability Significance Before Negative Local Medium Short Term Moderate 1 Mitigation After Mitigation Negative Local Low Short Term Moderate 1 Significance of Negative impacts owing to the construction will be experienced irrespective of the Impact and site alternative is chosen. Slight preference is given to Option 1 as it is further away Preferred from the cattle and horse grazing areas. Alternatives

5.8.5 Constriction Access Control, Safety and Security

The contractor should be mindful of the landowner’s current security practices to mitigate against the risk to livestock as a result of construction-related hazards as well as damage to property (e.g. gates, fences, structures). In addition, the safety of workers as well residents and industry are maintained at all times.

The impacts of construction can affect the health and safety of those working on the construction site; disturbance, health and income of the host communities; and disturbance to the environment and animals. These impacts can be mitigated in the Environmental Management Programme (EMPr) and through adherence to the Occupational Health and Safety Act 85 of 1993.

A possibility exists that, during the construction phase of the project, an opportunistic criminal element may take advantage of increased activities in some areas around the construction site. The site should be fenced off at all times and access control measures should be in place to ensure that there is no trespassing on the site.

Environmental Feature Access Control, Safety and Security Project life-cycle Construction Phase Potential Impact Proposed Management Objectives / Mitigation Measures Construction Access • All contractors staff should be easily identifiable through their Control uniforms.

37

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Environmental Feature Access Control, Safety and Security Project life-cycle Construction Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Provide strategically distributed crossing points to secure existing routes currently used by farmers. • Consult with property owners, local authorities and communities to ensure that all affected parties are informed of the timing and extent of any disruptions. • The site should be fenced off at all times. • Disturbances during the construction phase can be successfully mitigated through contractor specifications issued at tender stage and through monitoring of contractor performance during the construction phase. • Ensure all workers wear Personal Protective Equipment at all times. • The site should be fenced off at all times to prevent unwanted Safety access of people and livestock. • Compliance to the Environmental Management Programme (EMPr) and adherence to the Occupational Health and Safety Act 85 of 1993. • Access control measures such should be implemented to prevent trespassing on site. Opportunistic Crime • If required, the local police station should be contacted to increase visibility around the construction site. Nature Extent Magnitude Duration Probability Significance Before Negative Local Medium Short Term Likely 2 Mitigation After Mitigation Negative Local Low Short Term Moderate 1 Significance of Impact and Negative impacts owing to the construction will be experienced irrespective of the Preferred site alternative is chosen. Alternatives

5.8.6 Traffic Disruption

During the construction phase, there may be traffic disruptions as the construction will increase the number of vehicles in the area. These speed limitations of heavy construction vehicles will further affect congestion. Heavy construction vehicles may cause damage to the roads and may require new roads to be built on private property. All vehicles are to be mindful of speed limits and should be required to stick to designated haul or transport routes. In this manner, the impact on road infrastructure related to mining can be controlled.

Environmental Feature Traffic Disruption Project life-cycle Construction Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Ensure that the necessary signage and traffic measures are implemented for safe and convenient access to the site. • The EMPr must include restrictions on the Contractor and its sub- Impact on Traffic contractors related to minimising impacts on the safety of road users. Restrictions should include appropriate speed limitations, travel times, communication measures etc.

38

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

Environmental Feature Traffic Disruption Project life-cycle Construction Phase Potential Impact Proposed Management Objectives / Mitigation Measures • Measures must be put in place to prevent construction vehicles from entraining dirt onto public roads. • Disturbances during the construction phase can be successfully mitigated through contractor specifications issued at tender stage and through monitoring of contractor performance during the construction phase. Nature Extent Magnitude Duration Probability Significance Before Negative Local Medium Short Term Likely 2 Mitigation After Mitigation Negative Local Low Short Term Moderate 1 Significance of Impact and Negative impacts owing to the construction will be experienced irrespective of the Preferred site alternative is chosen. Alternatives

39

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

6 CONCLUSION

The socio-economic impacts of the proposed development were identified are listed in Table 3 below with the results also shown.

Table 3: Identified Impacts and Preferred Alternative

Dx Lines Dx Lines Identified Impact Option 1 Option 2

Security of Electricity Supply No Preference Land Use Conflict ✓  Access Control ✓  Visual Impact ✓  Exposure to Electromagnetic Fields ✓  Construction related impacts Economic Opportunity No Preference Dust Disturbance No Preference Noise Disturbance No Preference Influx of workers No Preference Constriction Access Control, Safety and Security No Preference Traffic Disruption No Preference

While electricity provision is a public good, the proximity impacts on the receiving environment can alter the current sense of place and result in changes or conflicts in current land use activities. The proposed Development of the Makalu B Distribution Lines is located on private land away from residential areas, thus reducing the impacts on the receiving environment.

There remains a considerable anticipated impact owing to a conflict of land use. Eskom has the permission to proceed with the project from the landowner. Continued engagements with the landowner is encouraged in order to effectively mitigate the loss of land. That said, there is a need for engagement with the lessee of the land there is a loss of income generation owing to a potential loss of agricultural fields and fragmentation of farming activities.

When assessing the cumulative impacts of the Makalu B project, i.e. the Makalu B Distribution Line Strengthening together with the Makalu B Substation and Associated Transmission Loop- In Lines, the anticipated impacts of Dx Lines Option 2 are considerable greater than when viewed in isolation. It is anticipated that there will be a loss of the Sasolburg Ruiteklub which is the only known horse club in Sasolburg. The loss of the social asset will result in a loss of employment, income generation and recreational activity for the community. Unless Eskom can relocate the club, it is not recommended that Dx Lines Option 2 is considered as a suitable alternative for the proposed development. Therefore, Dx Lines Option 1 is preferred from a SEIA point of view.

40

20170825

Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment

The proposed project serves as an enabling infrastructure to allow Eskom to continue to meet the electrical demand for residential and commercial use. When implementing the proposed project, it must be done in a manner that reduces the identified impacts on the receiving environment. This is done through prudent and planned interventions that allow for the project to be sustainable.

41

20170825