Kalangala Infrastructure Project (KIP), Uganda

Kalangala Infrastructure Project (KIP), Uganda Environmental and Social Impact Assessment Report Executive Summary AWE Engineers I Kalangala Infrastructure Project 2007 www.awe-engineers.com EXECUTIVE SUMMARY 0.1 FOREWORD The proposed Kalangala Infrastructure Project (KIP or the “Project”) comprises four key components, namely: rehabilitation of the main island road and ferry landings, potable water supply, improvement of ferry services and construction of a hybrid (solar/diesel) electricity plant on Buggala Island, Kalangala District, Uganda. The project company is Kalangala Infrastructure Services Limited (KIS), registered in Uganda, and a wholly- owned subsidiary of the project sponsor InfraCo Limited, registered in the United Kingdom. The purpose of the Executive Summary is to provide an overview, in non-technical language, of the main findings of the ESIA. Detailed information, including references and sources, can be found in respective chapters of the ESIA. 0.2 PROJECT BACKGROUND In September 2005, the Government of Uganda (GoU) and InfraCo Limited entered into a Memorandum of Understanding (MoU), pursuant to which InfraCo was designated as the developer of the Kalangala Infrastructure Project on behalf of the GoU. Following conclusion of the first phase of work under the MoU, in March 2006, InfraCo submitted to the Steering Committee a Project Development Plan. Following comments and approval by the Steering Committee, a Project Development Plan was submitted for consideration and approval by the Cabinet of the GoU, which formally approved the Project Development Plan on September 13, 2006. InfraCo has duly registered a local company, Kalangala Infrastructure Services Limited (“KIS” or “Project Company”), to undertake implementation of the Project. 0.3 APPLICABLE POLICIES, REGULATIONS AND INSTITUTIONAL FRAMEWORK KIS conducted the ESIA to conform to regulations and policies (Box ES 3) of Uganda, international best practice of the World Bank Group and those of InfraCo’s shareholder, the Private Infrastructure Development Group (PIDG). PIDG is a multi-donor, member- managed organisation, which provides financial and strategic support to encourage private infrastructure investment that contributes to growth and poverty reduction in developing countries. Member institutions include: the UK Department for International Development (DFID), the Swiss State Secretariat for Economic Affairs (SECO), the Netherlands Ministry of Foreign Affairs (DGIS), the Swedish International Development Cooperation Agency (Sida), the World Bank and the Austrian Development Agency (ADA). AWE Engineers II Kalangala Infrastructure Project 2007 www.awe-engineers.com In Uganda, the National Environmental Management Authority (NEMA), which was created by the National Environmental Act, is the agency responsible for impact assessment of projects. NEMA is mandated with the responsibility to oversee, coordinate and supervise environmental management in Uganda. Box ES 3: Policies and regulations reviewed Policy Framework: • The National Environment Management Policy, 1994 • The Uganda Forestry Policy, 2001 • The National Water Policy, 1999 • Energy Policy, 2001 Legal Framework: • The Constitution of the Republic of Uganda, 1995 • National Environment Act, Cap 153 • Water Act, Cap 152 • Land Act, Cap 227 • The Road Act, Cap 358 • Town and Country Planning Act, Cap 246 • Local Governments Act, Cap 243 • Public Health Act, Cap 281 • National Forestry and Tree Planting Act, 2003 • Electricity Act, Cap 145 • Investment Code Act, Cap 92 • The National Environment (Wetlands, River Banks, and Lakeshores management) Regulations, 2000 • Uganda Wildlife Act, Cap 200 International Conventions and Agreements: • The Convention on Biological Diversity (CBD) • The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) • The Ramsar Convention on Wetlands, 1971 • Protocol Agreement on Conservation of Common Natural Resources (1982) • Protocol Agreement on the Conservation of Common Natural Resources (1982) Institutional Framework: • National Environmental Management Authority (NEMA) • Ministry of Energy and Mineral Development, (MEMD) • Electricity Regulatory Authority (ERA) • Ministry of Works and Transport (MoWT) and RAFU • Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) • Ministry of Water and Environment (MoWE) • National Forestry Authority (NFA) • District Land Board • Town and Country Planning Board • Local Administration Structures • Community Based Organisations (CBO) • Development Partners AWE Engineers III Kalangala Infrastructure Project 2007 www.awe-engineers.com 0.4 PROJECT COMPONENTS AND THEIR DESIGN a) Upgrade of main island road This component will involve the rehabilitation of the 66 km main road from Luku landing site on the northwestern side of the island towards Kalangala town ending at Mulabana landing site on the southern end of the island. Currently, the road is not in a good condition and in the wet season certain stretches are not passable. Introduction of a new ferry service (the MV Kalangala) on Nakiwogo–Lutoboka route, in April 2006, noticeably increased vehicular traffic on the road. Developments such as the BIDCO plantation operations, construction of the oil mill and Bidco power station and components of the KIP, are expected to contribute to further increases in road traffic. These reasons justify upgrading the road to be able to cope with this expected increase in traffic. The main road will be upgraded to a Class B gravel road 8.6 meters wide (with a 5.66 m carriageway and 1.5 m shoulder on each side) with a 200 mm wearing course/ road base of natural gravel and a 300 mm natural gravel sub base. The existing alignment will be retained where possible, to minimise social and environmental impacts. The expected construction period is 12 months. b) Power generation plant Although, Buggala Island was identified by the GoU as a priority area for rural electrification, currently there is no grid-based electricity supply. Power is generated mainly via independent diesel generators and some solar panels, primarily to serve the tourist establishments, some commercial enterprises and the mobile phone masts in Kalangala Town. A diesel generator has recently (2006) been installed near Kalangala Town, mainly to serve the local government offices in Kalangala for a few hours each day. The significant majority of households, commercial enterprises, schools and healthcare facilities on the island lack access to grid-based electricity. To meet some of the energy needs of communities, businesses and institutions on Buggala Island, KIS is proposing to establish a complete integrated power supply system comprised of a power generation system, a transmission/distribution system and domestic connections. The solar power generation system will comprise of a photovoltaic (PV) power plant with a peak capacity of 600 kW, supplemented by two 250 kW diesel generators. The solar system will include a battery bank and inverter system which will act as the synchronising unit of the entire power generation system, securing the correct power quality on the network. The batteries to be housed in two or four 20 ft containers are expected to have a useful life of six years, after which they would be recycled at Uganda Batteries Limited (UBL) or other similar facility which currently recycles similar large backup batteries disposed of by local telecommunication companies. AWE Engineers IV Kalangala Infrastructure Project 2007 www.awe-engineers.com The power plant, requiring a footprint of about four acres, will be located on public land which has been leased to KIS under a 49-year lease agreement. A 50,000 litre fuel storage tank will be installed at the power station site. The principle structures of the transmission line/distribution system will consist of a two-circuit 33 kV power line, transformers, wooden poles and supports. The grid will mainly follow the alignment of Luku–Kalangala–Mulabana main island road so as to minimise effects on private property and environmental resources and ease access during construction operation and maintenance. It is expected that the grid will pass through several forests, some of which are gazetted reserves controlled by the National Forest Authority (NFA). c) Improvement of ferry operations and repair and upgrade of the ferry landings Currently, two ferry services operate between the mainland and Buggala Island: Bukakata-Luku and Nakiwogo Pier (in Entebbe) to Lutoboka on the island. A demand assessment carried out by NERA (2006), on behalf of the Project Developer, projected a 51% increase in ferry passenger and vehicle traffic from 2007 to 2012, on assumption that the road will be rehabilitated. It is unlikely that the capacity of both existing ferry services will be sufficient to service this increase in traffic. KIS proposes to develop a private, fee-paying commercial ferry service between Bukakata and Luku. The Project Company is finalising the purchase of two new ferries, the first of which will be put in service within 12-14 months of contract signing and the second one within 10 months after delivery of the first ferry. The Project has also retained the alternative option of purchasing, refurbishing and operating two second-hand ferries, one of which is the existing ferry, on the Bukakata-Luku route. The first ferry, purchased in the Netherlands will take about 12 months to be refurbished while the existing ferry is estimated to take 8 months. The project developer will ensure

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