Lichtenburg 2

LICHTENBURG 2

North West Province

Social Impact Assessment (SIA) Scoping Report

August 2018 Social Impact Assessment – Scoping Report August 2018 Lichtenburg 2 North West Province

Prepared for:

ABO Wind Lichtenburg 2 PV (Pty) Ltd

Lichtenburg 2 North West Province August 2018

PROJECT DETAILS

Title : Social Impact Assessment (SIA) Scoping Report for the Lichtenburg 2 PV Facility near Lichtenburg, in the North West Province

Authors : Savannah Environmental (Pty) Ltd Sarah Watson

Client : ABO Wind Lichtenburg 2 PV (Pty) Ltd

Report Revision : Revision 1

Date : August 2018

When used as a reference this report should be cited as: Savannah Environmental (2018). Social Impact Assessment (SIA) Scoping Report for the Lichtenburg 2 PV Facility near Lichtenburg, in the North West Province.

COPYRIGHT RESERVED This technical report has been produced for ABO Wind Lichtenburg 2 PV (Pty) Ltd. The intellectual property contained in this report remains vested in Savannah Environmental (Pty) Ltd. No part of the report may be reproduced in any manner without written permission from Savannah Environmental (Pty) Ltd or ABO Wind Lichtenburg 2 PV (Pty) Ltd.

Project Details Page i Lichtenburg 2 North West Province August 2018

SPECIALIST DECLARATION OF INTEREST

I, Sarah Watson, declare that –

» I act as the independent specialist in this application. » I will perform the work relating to the application in an objective manner, even if this results in views and findings that are not favourable to the applicant. » I declare that there are no circumstances that may compromise my objectivity in performing such work. » I have expertise in conducting the specialist report relevant to this application, including knowledge of the Act, Regulations and any guidelines that have relevance to the proposed activity. » I will comply with the Act, Regulations and all other applicable legislation. » I have no, and will not engage in, conflicting interests in the undertaking of the activity. » I undertake to disclose to the applicant and the competent authority all material information in my possession that reasonably has or may have the potential of influencing – any decision to be taken with respect to the application by the competent authority; and – the objectivity of any report, plan or document to be prepared by myself for submission to the competent authority. » All the particulars furnished by me in this form are true and correct. » I realise that a false declaration is an offence in terms of Regulation 48 and is punishable in terms of section 24F of the Act.

Sarah Watson Name Signature

August 2018 Date

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TABLE OF CONTENTS

PAGE PROJECT DETAILS ...... i SPECIALIST DECLARATION OF INTEREST ...... ii TABLE OF CONTENTS ...... iii ACRONYMS ...... v 1. INTRODUCTION ...... 1 Project Description ...... 1 Objective of the Scoping Process ...... Error! Bookmark not defined. Details of the Independent Specialist ...... Error! Bookmark not defined. Structure of this SIA Scoping Report ...... 5 2. METHODOLOGY AND APPROACH ...... 6 2.1. Purpose of the Study ...... 6 2.2. Approach to the Study ...... 6 2.2.1. Collection and Review of Existing Information ...... 7 2.3. Limitations and Assumptions ...... 7 3. LEGISLATION AND POLICY REVIEW ...... 9 3.1. National Policy and Planning Context ...... 9 3.1.1. Constitution of the Republic of South Africa, 1996 ...... 10 3.1.2. National Environmental Management Act (No. 107 of 1998) (NEMA) ...... 10 3.1.3. White Paper on the Energy Policy of the Republic of South Africa (1998) ...... 11 3.1.4. White Paper on the Renewable Energy Policy of the Republic of South Africa (2003) ...... 11 3.1.5. National Energy Act (No. 34 of 2008) ...... 12 3.1.6. Integrated Energy Plan (IEP), 2015 ...... 12 3.1.7. Integrated Resource Plan for Electricity (2010-2030) ...... 13 3.1.8. National Development Plan 2030 (2012) ...... 13 3.1.9. Strategic Infrastructure Projects (SIPs) ...... 14 3.2. Provincial Policies ...... 15 3.2.1. North West Provincial Development Plan (PDP), 2030 (2013) ...... 15 3.2.2. North West Provincial Growth and Development Strategy (PGDS) (2004 – 2014) ...... 15 3.2.3. Renewable Energy Strategy for the North West Province (2012) ...... 16 3.2.4. North West Provincial Spatial Development Framework (2017) ...... 18 3.3. District and Local Municipalities Policies...... 20 3.3.1. Ngaka Modiri Molema District Municipality Integrated Development Plan (IDP), 2017 – 2022 ...... 20 3.3.2. Ditsobotla Local Municipality Integrated Development Plan (IDP), 2017 – 2018 ...... 21 3.4. Conclusion ...... 22 4. SOCIO-ECONOMIC PROFILE ...... 23 4.1. North West Province ...... 23 4.2. Ngaka Modiri Molema District ...... 24 4.3. Ditsobotla Local Municipality ...... 25 4.4. Project Site ...... 26 4.5. Baseline Description of the Social Environment ...... 26 4.6. Population Size ...... 27 4.7. Population Group ...... 27 4.7.1. Sex Profile ...... 28 4.7.2. Age Profile ...... 29

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4.8. Dependency Ratio ...... 31 4.8.1. Education Levels ...... 31 4.9. Employment ...... 32 4.10. Annual Average Household Income levels ...... 34 4.11. Economic Activities ...... 35 4.12. Health ...... 36 4.13. Type of Households ...... 36 4.14. Access to Basic Services ...... 37 4.14.1. Access to Water ...... 38 4.14.2. Access to Sanitation ...... 38 4.14.3. Access to Electricity ...... 39 4.14.4. Access to Refuse Removal ...... 39 4.15. Baseline summary ...... 40 5. IDENTIFICATION OF POTENTIAL SOCIAL IMPACTS ...... 42 5.1. Detailed Design and Construction Phase...... 42 5.1.1. Construction Phase Impacts ...... 42 5.1.2. Operation Phase Impacts ...... 45 6. CONCLUSION AND RECOMMENDATIONS ...... 49 6.1. Conclusion ...... 49 6.1.1. Recommendations for Further Study (Plan of Study for EIA) ...... 50 7. REFERENCES...... 51

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ACRONYMS

DEA Department of Environmental Affairs DoE Department of Energy DM District Municipality EAP Economically Active Population EIA Environmental Impact Assessment EMPr Environmental Management Programme GNR Government Notice I&AP Interested and Affected Party IDP Integrated Development Plan IFC International Finance Corporation IPP Independent Power Producer km Kilometre kV Kilovolt LED Local Economic Development LHWP Lesotho Highlands Water Project LM Local Municipality MW Mega Watt NEMA National Environmental Management Act (No. 107 of 1998) NC Northern Cape PGDS Provincial Growth and Development Strategy PSDF Provincial Spatial Development Framework PV Photovoltaic RE Renewable Energy READ Department of Rural, Environment, and Agricultural Development REIPPP Renewable Energy Independent Power Producer Procurement S&EIA Scoping and Environmental Impact Assessment SDF Spatial Development Framework SIA Social Impact Assessment

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1. INTRODUCTION

ABO Wind Lichtenburg 2 PV (Pty) Ltd proposes the development of Lichtenburg 2, a PV solar energy facility and associated infrastructure on a site near Lichtenburg, in the North West Province. The proposed project comprises a commercial solar energy facility, and is intended to form part of the Department of Energy’s (DoE’s) Renewable Energy Independent Power Producer Procurement (REIPPP) Programme. The REIPPP Programme aims to secure 14 725MW of new generation capacity from renewable energy sources, while simultaneously diversifying South Africa’s electricity mix, and positively contributing towards socio-economic and environmentally sustainable growth.

The proposed development of Lichtenburg 2 requires Environmental Authorisation (EA) from the National Department of Environmental Affairs (DEA) in accordance with the National Environmental Management Act (No. 107 of 1998) (NEMA), and the 2014 Environmental Impact Assessment (EIA) Regulations (GNR 326) subject to the completion of a full Scoping and EIA Process.

Sarah Watson of Savannah Environmental (Pty) Ltd has been appointed as the independent social consultant responsible for undertaking a Social Impact Assessment (SIA) as part of the EIA process being undertaken for the project.

Project Description

Lichtenburg 2 will have a generation capacity of up to 100MW, and will make use of photovoltaic (PV) solar technology for the generation of electricity. The proposed project will comprise of the following key infrastructure and components:

» Arrays of PV solar panels with a contracted capacity of up to 100MW. » Mounting structures to support the PV panels (utilising either fixed-tilt / static, single-axis tracking, or double-axis tracking systems). » On-site inverters to convert power from Direct Current (DC) to Alternating Current (AC), and a 132kV on- site substation to facilitate the connection between the solar facility and the Eskom grid connection point. » A new 132kV power line between the on-site substation and the Eskom grid connection point. Two alternatives are currently being considered in this regard:  Alternative 1 (this is the preferred alternative): Development of a power line from the project to Eskom’s Watershed Main Transmission Substation (MTS), located approximately 4km south-west of the project site.  Alternative 2: Loop-in / Loop-out to the Watershed / Zeerust 1 132kV power line traversing east of the project property (this alternative is dependent on the line capacity of the Watershed / Zeerust 1 132kV power line, and is less preferred from a technical perspective). » Cabling between the project’s components, to be laid underground where practical. » Auxiliary buildings such as offices and workshop areas for maintenance and storage. » Temporary laydown areas required during construction. » Internal access roads and perimeter security fencing around the development area.

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The project is proposed on Portion 23 of the Farm Houthaalbomen No. 31 (the project site), which is located approximately 10km north-west of Lichtenburg and 7.5km south of Bakerville, and falls within Ward 16 of the Ditsobotla Local Municipality, of the Ngaka Modiri Molema District, in the North West Province (refer to Figure 1.1). Access to the site is obtained directly via the R505 regional road, which traverses the eastern half of the project site in a north-west to south-east direction.

Table 1.1 provides information regarding the proposed project site identified for Lichtenburg 2, and also includes information regarding the properties that may be affected by the development of a 132kV power line between the on-site substation and Eskom’s Watershed MTS.

Table 1.1: A description of the project site identified for Lichtenburg 2 (including a 132kV power line between the project site and Eskom’s Watershed MTS). Province North West Province District Municipality Ngaka Modiri Molema District Municipality Local Municipality Ditsobotla Local Municipality Ward Number(s) Ward 16 Nearest Town(s) Lichtenburg (approximately 10km south-east of the project site) Bakerville (approximately 7.5km north of the project site) Farm Portion(s), Name(s) and Number(s) Lichtenburg 2: » Portion 23 of the Farm Houthaalbomen No. 31 Grid Connection Alternative 1: » Portion 23 of the Farm Houthaalbomen No. 31 » Remaining Extent of Portion 02 of the Farm Zamenkomst No. 04 » Portion 10 of the Farm Lichtenburg Town & Townlands No. 27 » Remainder of Portion 01 of the Farm Lichtenburg Town & Townlands No. 27 Grid Connection Alternative 2: » Portion 23 of the Farm Houthaalbomen No. 31 » Remaining Extent of Portion 02 of the Farm Zamenkomst No. 04 SG 21 Digit Code (s) Lichtenburg 2: » T0IP00000000003100023 Grid Connection Alternative 1: » T0IP00000000003100023 » T0IP00000000000400002 » T0IP00000000002700010 » T0IP00000000002700001 Grid Connection Alternative 2: » T0IP00000000003100023 » T0IP00000000000400002 Current Zoning Agriculture Current land use Agriculture Site Extent Lichtenburg 2: » 496ha Grid Connection Alternative 1: » 496ha » 429ha » 3 415ha » 39ha Grid Connection Alternative 2:

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» 496ha » 429ha

Objective of the Scoping Process

This SIA Scoping Report has been prepared as part of the Scoping Process being undertaken for Lichtenburg 2. The purpose of this SIA Scoping Report is to provide details on the nature and extent of Lichtenburg 2, and the potential social impacts associated with the construction, operation, and decommissioning of the project. The inputs contained within this SIA Scoping Report are intended to provide a high-level overview of the social environment within which the project is proposed, and set the scene for issues which will be addressed in detail as part of the EIA Phase specialist investigations.

The objective of this SIA Scoping Report is therefore to:

» Identify and review policies and legislation which may have relevance to the activity from a social perspective. » Provide comment on the need and desirability of the proposed activity from a social perspective. » Identify potential impacts and risks associated with the preferred activity and technology alternatives. » Identify key social issues to be addressed in the EIA phase. » Agree on the level of assessment to be undertaken, including the methodology to be applied to determine the impacts and risks the activity will impose on the preferred site through the life of the activity, including the nature, significance, consequence, extent, duration and probability of the impacts to inform the location of the development footprint within the preferred site. » Identify suitable measures to avoid, manage or mitigate identified social impacts and determine the extent of residual risks that need to be managed and monitored.

Details of the Independent Specialist

This SIA has been undertaken by Sarah Watson of Savannah Environmental.

» Sarah Watson is an Environmental Consultant at Savannah Environmental. She has a Bachelor of Social Science Honours Degree in Geography and Environmental Management (B.Soc.Sci. Honours GEM) from the University of KwaZulu-Natal (UKZN). Sarah has over 8 years of experience as an Environmental Consultant in the field of impact assessment and management. Sarah has experience conducting environmental and social impact assessment processes for a range of projects in the telecommunications, residential, industrial, bulk infrastructure, rural development, and energy sectors.

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Figure 1.1: Locality map for Lichtenburg 2.

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Structure of this SIA Scoping Report

This SIA Scoping Report has been structured as follows:

» Chapter 2 provides an overview of the methodology and approach utilised in preparing this SIA Scoping Report. » Chapter 3 provides an overview of the legislative and policy environmental within which Lichtenburg 2 is proposed. » Chapter 4 provides the socio-economic profile of the Ditsobotla Local Municipality, Ngaka Modiri Molema District, North West Province, and South Africa as a whole. » Chapter 5 describes the potential social impacts which have been identified for the project and which will be assessed in more detail as part of the EIA. » Chapter 6 provides the conclusion of the scoping study and recommendations for further study to be incorporated into the Plan of Study for EIA to be approved by DEA.

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2. METHODOLOGY AND APPROACH

2.1. Purpose of the Study

The International Principles for Social Impact Assessment define SIA as:

“The processes of analysing, monitoring and managing the intended and unintended social consequences, both positive and negative, of planned interventions (policies, programs, plans, projects) and any social change processes invoked by those interventions”.

The International Principles for Social Impact Assessment define social impacts as changes to one or more of the following:

» People’s way of life – that is, how they live, work, play and interact with one another on a day-to-day basis. » Their culture – that is, their shared beliefs, customs, values and language or dialect. » Their community – its cohesion, stability, character, services and facilities. » Their political systems – the extent to which people are able to participate in decisions that affect their lives, the level of democratisation that is taking place, and the resources provided for this purpose. » Their environment – the quality of the air and water people use; the availability and quality of the food they eat; the level of hazard or risk, dust and noise they are exposed to; the adequacy of sanitation, their physical safety, and their access to and control over resources. » Their health and wellbeing – health is a state of complete physical, mental, social and spiritual wellbeing and not merely the absence of disease or infirmity; » Their personal and property rights – particularly whether people are economically affected, or experience personal disadvantage which may include a violation of their civil liberties. » Their fears and aspirations – their perceptions about their safety, their fears about the future of their community, and their aspirations for their future and the future of their children.

The purpose of this SIA Scoping Report is therefore to:

» Provide baseline information describing the social environment within which the project is proposed, and which may be impacted (both positively and negatively) as a result of the proposed development. » Identify, describe and assess possible social risks/fatal flaws and social impacts that may arise as a result of the proposed development (in terms of the detailed design and construction, operation, and decommissioning phases of the project). » Suggest ways in which negative impacts can be avoided, minimised, or their significance reduced; and positive impacts maximised or enhanced.

2.2. Approach to the Study

This SIA Scoping Report provides a snapshot of the current social setting within which Lichtenburg 2 is proposed. It provides an overview of the manner and degree to which the current status quo is likely to change or be impacted on by the construction, operation and decommissioning of the project; as well as the manner in which the social environment is likely to impact the development itself.

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The SIA Scoping process completed to date comprised the following:

» Collection and review of existing information, including Provincial, District, and Local plans; policies; programmes; Census data; and available literature from previous studies conducted within the area. Project specific information was obtained from the project proponent. » Identification of potential direct, indirect and cumulative impacts likely to be associated with the construction, operation, and decommissioning of the proposed project. » Preparation of a SIA Scoping Report for inclusion in the Scoping Report to be prepared for the project.

2.2.1. Collection and Review of Existing Information

Existing desktop information which has relevance to the proposed project, project area and / or surrounds was collected and reviewed. The following information was examined as part of this process:

» Project maps. » Google Earth imagery. » A description of the project (as provided by the project proponent). » Census data (2011). » Planning documentation such as Provincial Growth and Development Strategies (PGDSs), Local and District Municipality Integrated Development Plans (IDPs), Spatial Development Frameworks (SDFs), and development goals and objectives. » Relevant legislation, guidelines, policies, plans, and frameworks. » Available literature pertaining to social issues associated with the development and operation of solar PV power plants and associated infrastructure.

2.3. Limitations and Assumptions

The following assumptions and limitations are applicable to this SIA Scoping Report:

» Data derived from the 2011 Census, North West Provincial Development Plan (PDP), 2030 (2013), North West Provincial Growth and Development Strategy (PGDS) (2004 – 2014), Renewable Energy Strategy for the North West Province (2012), North West Provincial Spatial Development Framework (2017), Ngaka Modiri Molema District Municipality Integrated Development Plan (IDP), 2017 – 2022, and Ditsobotla Local Municipality Integrated Development Plan (IDP), 2017 – 2018 was used to generate the majority of information provided in the baseline profile of the study area. The possibility therefore exists that the data utilised may be out of date, and may not provide an accurate reflection of the current status quo. » This SIA Scoping Report is intended to provide an overview of the current social environmental and assist in the identification of potential social impacts which require further investigation as part of the EIA phase. As a result no consultation has been conducted with key stakeholders as part of the Scoping process to date. » This SIA Scoping Report was prepared based on information which was available to the specialist at the time of preparing the report. The sources consulted are not exhaustive, and the possibility exists that additional information which might strengthen arguments, contradict information in this report, and / or identify additional information might exist.

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» Some of the project projections reflected in this SIA Scoping Report (i.e. with regards to job creation and local content) may be subject to change, and therefore may be higher or lower than those estimated by the project proponent. » It is assumed that the motivation for, and planning and feasibility study of the project were undertaken with integrity; and that information provided by the project proponent was accurate and true at the time of preparing this SIA Scoping Report.

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3. LEGISLATION AND POLICY REVIEW

The legislative and policy context applicable to a project plays an important role in identifying and assessing the potential social impacts associated with the development. In this regard a key component of the SIA process is to assess a proposed development in terms of its suitability with regards to key planning and policy documents.

The following key pieces of documentation were reviewed as part of this legislation and policy review process:

National Policy and Planning Context: » Constitution of the Republic of South Africa (1996) » National Environmental Management Act (No. 107 of 1998) (NEMA) » White Paper on the Energy Policy of the Republic of South Africa (1998) » White Paper on the Renewable Energy Policy of the Republic of South Africa (2003) » National Energy Act (No. 34 of 2008) » Integrated Energy Plan (IEP) (2016) » Integrated Resource Plan for Electricity (IRP) 2010 – 2030 (2011) (and subsequent updates thereto) » National Development Plan (NDP) 2030 (2012) » Strategic Infrastructure Projects (SIPs)

Provincial Policy and Planning Context: » North West Provincial Development Plan (PDP) 2030 (2013) » North West Provincial Growth and Development Strategy (PGDS) 2004 – 2014 » Renewable Energy Strategy for the North West Province (2012) » North West Provincial Spatial Development Framework (PSDF) (2017)

Local Policy and Planning Context: » Ngaka Modiri Molema District Municipality Integrated Development Plan (IDP) 2017 – 2022 » Ditsobotla Local Municipality Integrated Development Plan (IDP) 2017 – 2018

3.1. National Policy and Planning Context

Any project which contributes positively towards the objectives mentioned within national policies could be considered strategically important for the country. A review of the national policy environment suggests that the increased utilisation of Renewable Energy (RE) sources is considered integral to reducing South Africa’s carbon footprint, diversifying the national economy, and contributing towards social upliftment and economic development. As the project comprises a RE project and would contribute RE supply to provincial and national targets set out and supported within these national policies, it is considered that the project fits within the national policy framework.

A brief review of the most relevant national legislation and policies is provided below.

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3.1.1. Constitution of the Republic of South Africa (1996)

The Constitution of the Republic of South Africa (1996) is the supreme law of South Africa, and forms the foundations for a democratic society in which fundamental human rights are protected. The Bill of Rights contained in Chapter 2 of the Constitution enshrines the rights of all people in South Africa and affirms the democratic values of human dignity, equality and freedom. Section 24 of the Constitution pertains specifically to the environment. It states that:

24. Everyone has the right – (a) To an environment that is not harmful to their health or well‐being; and (b) To have the environment protected, for the benefit of present and future generations, through reasonable legislative and other measures that: (i) Prevent pollution and ecological degradation. (ii) Promote conservation. (iii) Secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development.

The Constitution outlines the need to promote social and economic development. Section 24 of the Constitution therefore requires that development be conducted in such a manner that it does not infringe on an individual’s environmental rights, health, or well-being. This is especially significant for previously disadvantaged individuals who are most at risk to environmental impacts.

3.1.2. National Environmental Management Act (No. 107 of 1998) (NEMA)

The National Environmental Management Act (No. 107 of 1998) (NEMA) is South Africa’s key piece of environmental legislation, and sets the framework for environmental management in South Africa. It provides for co-operative environmental governance by establishing principles for decision-making on matters affecting the environment. NEMA is founded on the principle that everyone has the right to an environment that is not harmful to their health or well‐being as contained within the Bill of Rights. In accordance with this it states that:

» The State must respect, protect, promote and fulfil the social, economic and environmental rights of everyone and strive to meet the basic needs of previously disadvantaged communities. » Sustainable development requires the integration of social, economic and environmental factors in the planning, implementation and evaluation of decisions to ensure that development serves present and future generations. » Everyone has the right 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 ecologically sustainable development and use of natural resources while promoting justifiable economic and social development.

In addition, the national environmental management principles contained within NEMA state that:

» 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.

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» The social, economic and environmental impacts of activities, including disadvantages and benefits, must be considered, assessed and evaluated, and decisions must be appropriate in the light of such consideration and assessment

The need for responsible and informed decision-making by government on the acceptability of environmental impacts is therefore enshrined within NEMA.

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

The White Paper on Energy Policy places emphasis on the expansion of energy supply options to enhance South Africa’s energy security. This can be achieved through increased use of RE and encouraging new entries into the generation market. South Africa has an attractive range of cost effective renewable resources, taking into consideration social and environmental costs. Government policy RE is thus concerned with meeting the following challenges:

» Ensuring that economically feasible technologies and applications are implemented. » Ensuring that an equitable level of national resources is invested in renewable technologies, given their potential and compared to investments in other energy supply options. » Addressing constraints on the development of the renewable industry.

The policy states that the advantages of RE include; minimal environmental impacts during operation in comparison with traditional supply technologies, generally lower running costs, and high labour intensities. Disadvantages include; higher capital costs in some cases; lower energy densities; and lower levels of availability, depending on specific conditions, especially with sun and wind based systems. Nonetheless, renewable resources generally operate from an unlimited resource base and, as such, can increasingly contribute towards a long-term sustainable energy future. The White Paper on Energy Policy therefore supports the advancement of RE sources and ensuring energy security through the diversification of supply.

3.1.4. White Paper on the Renewable Energy Policy of the Republic of South Africa (2003)

The White Paper on Renewable Energy Policy supplements Government’s predominant policy on energy as set out in the White Paper on the Energy Policy of the Republic of South Africa (DME, 1998). The policy recognises the potential of RE, and aims to create the necessary conditions for the development and commercial implementation of RE technologies. The position of the White Paper on RE is based on the integrated resource planning criterion of:

“Ensuring that an equitable level of national resources is invested in renewable technologies, given their potential and compared to investments in other energy supply options.”

The White Paper on RE sets out Government’s vision, policy principles, strategic goals and objectives for promoting and implementing RE in South Africa. The country relies heavily on coal to meet its energy needs due to its abundant, and fairly accessible and affordable coal resources. However, massive RE resources that can be sustainable alternatives to fossil fuels, have so far remained largely untapped. The White Paper on Renewable Energy Policy fosters the uptake of RE in the economy and has a number of objectives that include: ensuring equitable resources are invested in renewable technologies; directing public resources for implementation of RE technologies; introducing suitable fiscal incentives for RE and; creating an investment climate for the development of the RE sector.

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The White Paper on Renewable Energy of 2003 set a target of 10 000GWh to be generated from RE by 2013 to be produced mainly from biomass, wind, solar and small-scale hydro. The target was subsequently reviewed in 2009 during the RE summit of 2009. The objectives of the White Paper on Renewable Energy Policy are considered in six focal areas, namely; financial instruments, legal instruments, technology development, awareness raising, capacity building and education, and market based and regulatory instruments. The policy supports the investment in RE facilities as they contribute towards ensuring energy security through the diversification of energy supply, reducing GHG emissions and the promotion of RE sources.

3.1.5. National Energy Act (No. 34 of 2008)

The purpose of the National Energy Act (No. 34 of 2008) is 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; while taking environmental management requirements into account. In addition, the Act also provides for energy planning, and increased generation and consumption of Renewable Energies (REs).

The objectives of the Act, are to amongst other things, to:

» Ensure uninterrupted supply of energy to the Republic. » Promote diversity of supply of energy and its sources. » Facilitate energy access for improvement of the quality of life of the people of the Republic. » Contribute to the sustainable development of South Africa’s economy.

The National Energy Act therefore recognises the significant role which electricity plays growing the economy while improving citizens’ quality of life. The Act provides the legal framework which supports the development of RE facilities for the greater environmental and social good, and provides the backdrop against which South Africa’s strategic planning regarding future electricity provision and supply takes place. It also provides the legal framework which supports the development of RE facilities for the greater environmental and social good.

3.1.6. Integrated Energy Plan (IEP) (2016)

The Integrated Energy Plan (IEP) (which was developed under the National Energy Act (No. 34 of 2008)), recognises that energy is essential to many human activities, and is critical to the social and economic development of a country. The purpose of the IEP is essentially to ensure the availability of energy resources, and access to energy services in an affordable and sustainable manner, while minimising associated adverse environmental impacts. Energy planning therefore needs to balance the need for continued economic growth with social needs, and the need to protect the natural environment.

The IEP is a multi-faceted, long-term energy framework which has multiple aims, some of which include:

» To guide the development of energy policies and, where relevant, set the framework for regulations in the energy sector. » To guide the selection of appropriate technologies to meet energy demand (i.e. the types and sizes of new power plants and refineries to be built and the prices that should be charged for fuels).

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» To guide investment in and the development of energy infrastructure in South Africa. » To propose alternative energy strategies which are informed by testing the potential impacts of various factors such as proposed policies, introduction of new technologies, and effects of exogenous macro- economic factors.

A draft version of the Integrated Energy Plan (IEP) was released for comment on 25 November 2016. The purpose of the IEP is to provide a roadmap of the future energy landscape for South Africa which guides future energy infrastructure investments and policy development. The development of the IEP is an ongoing continuous process. It is reviewed periodically to take into account changes in the macroeconomic environment, developments in new technologies and changes in national priorities and imperatives, amongst others.

The 8 key objectives of the integrated energy planning process, are as follows:

» Objective 1: Ensure security of supply. » Objective 2: Minimise the cost of energy. » Objective 3: Promote the creation of jobs and localisation. » Objective 4: Minimise negative environmental impacts from the energy sector. » Objective 5: Promote the conservation of water. » Objective 6: Diversify supply sources and primary sources of energy. » Objective 7: Promote energy efficiency in the economy. » Objective 8: Increase access to modern energy.

3.1.7. Integrated Resource Plan for Electricity (IRP) 2010 – 2030 (2011)

The Integrated Resource Plan for Electricity (IRP) 2010 – 2030 is a subset of the IEP and constitutes South Africa’s national electricity plan. The primary objective of the IRP is to determine the long term electricity demand and detail how this demand should be met in terms of generating capacity, type, timing and cost. The IRP also serves as input to other planning functions, including amongst others, economic development and funding, and environmental and social policy formulation.

The current iteration of the IRP, led to the Revised Balanced Scenario (RBS) that was published in October 2010. Following a round of public participation which was conducted in November / December 2010, several changes were made to the IRP model assumptions. The document outlines the proposed generation new-build fleet for South Africa for the period 2010 to 2030. This scenario was derived based on a cost- optimal solution for new-build options (considering the direct costs of new build power plants), which was then “balanced” in accordance with qualitative measures such as local job creation.

The Policy-Adjusted IRP reflects recent developments with respect to prices for renewables. In addition to all existing and committed power plants, the plan includes 9.6GW of nuclear; 6.25GW of coal; 17.8GW of renewables; and approximately 8.9GW of other generation sources such as hydro, and gas.

3.1.8. National Development Plan 2030 (2012)

The National Development Plan (NDP) 2030 is a plan prepared by the National Planning Commission in consultation with the South African public which is aimed at eliminating poverty and reducing inequality by 2030. The NDP aims to achieve this by drawing on the energies of its people, growing and inclusive

SIA Scoping Report Page 13 Lichtenburg 2 North West Province August 2018 economy, building capabilities, enhancing the capacity of the state and promoting leaderships and partnerships throughout society. While the achievement of the objectives of the NDP requires progress on a broad front, three priorities stand out, namely:

» Raising employment through faster economic growth. » Improving the quality of education, skills development and innovation. » Building the capability of the state to play a developmental, transformative role.

In terms of the Energy Sectors role in empowering South Africa, the NDP envisages that, by 2030, South Africa will have an energy sector that promotes:

» Economic growth and development through adequate investment in energy infrastructure. The sector should provide reliable and efficient energy service at competitive rates, while supporting economic growth through job creation. » Social equity through expanded access to energy at affordable tariffs and through targeted, sustainable subsidies for needy households. » Environmental sustainability through efforts to reduce pollution and mitigate the effects of climate change.

The NDP aims to provide a supportive environment for growth and development, while promoting a more labour-absorbing economy. The proposed project will assist in reducing carbon emissions targets and creating jobs in the local area as well as assist in creating a competitive infrastructure based on terms of energy contribution to the national grid.

3.1.9. Strategic Infrastructure Projects (SIPs)

The Presidential Infrastructure Coordinating Committee (PICC) are integrating and phasing investment plans across 18 Strategic Infrastructure Projects (SIPs) which have the following 5 core functions:

» To unlock opportunity. » Transform the economic landscape. » Create new jobs. » Strengthen the delivery of basic services. » Support the integration of African economies.

A balanced approach is being fostered through greening of the economy, boosting energy security, promoting integrated municipal infrastructure investment, facilitating integrated urban development, accelerating skills development, investing in rural development and enabling regional integration.

SIP 8 of the energy SIPs supports the development of RE projects as follow:

» SIP 8: Green energy in support of the South African economy:

Support sustainable green energy initiatives on a national scale through a diverse range of clean energy options as envisaged in the Integrated Resource Plan (IRP 2010) and supports bio-fuel production facilities.

SIA Scoping Report Page 14 Lichtenburg 2 North West Province August 2018

The development of the proposed project is therefore also aligned with SIP 8 as it constitutes a green energy initiative which would contribute clean energy in accordance with the IRP 2010 – 2030.

3.2. Provincial Policies

This section provides an overview of the most relevant provincial policies. Lichtenburg 2 is considered to align with the aims of these policies, even if contributions to achieving the goals therein are only minor.

3.2.1. North West Provincial Development Plan (PDP) 2030 (2013)

The North West Provincial Development Plan (PDP), 2030, is largely based on, and intended to apply the objectives of, the National Development Plan (NDP) 2030. The overall targets of the PDP have been identified as follows:

By 2030: » Eliminate income poverty: reduce the percentage of the population living in poverty from 46% to 0% in 2030. » Reduce inequality: the Gini coefficient should fall from 0.61 to 0.53. » The targets for poverty reduction and the GINI coefficient compliments the national targets set out for the elimination of poverty and reduction of inequality. » The unemployment rate should fall from 24% in 2010 to 14% by 2020 and to 6% by 2030. This requires an additional 815 000 jobs. Total employment should rise from 748 000 to 1 563 000. » The NDP projects that total employment should rise from 13 million to 24 million in South-Africa. 7% of additional jobs that has to be created will be located in the North West Province. By 2030 the North West will be responsible for 6.5% of employment in South-Africa. » The provincial Gross Value Added (GVA) should increase by 2.9 times in real terms. Such growth will require an average annual Gross Value Added (GVA) growth of 5.4%.

The development of Lichtenburg 2 has the potential to contribute towards a number of the targets set by the PDP, including:

» Job creation and increased income, which woud have a positivie impact on the current unemployment rate, standard of living, levels of inequality, and poverty levels within the Province. » Contribute towards the capita income, and improve on labour force participation rates. » Production of clean energy.

3.2.2. North West Provincial Growth and Development Strategy (PGDS) 2004 – 2014

The North West Provincial Growth and Development Strategy (PGDS) provides a framework for integrated and sustainable growth and economic development for the province and its people. Challenges facing the Province can be summarised as follows: the Province is mostly rural in nature; has a low population density, and relative inadequate infrastructure, especially in the remote rural areas; has inherited an enormous backlog in basic service delivery and maintenance that will take time to eradicate; the population is predominantly poor with high levels of illiteracy and dependency that seriously affect their productivity and ability to compete for jobs; is characterised by great inequalities between the rich and poor as well as disparities between urban and rural; is faced with HIV / AIDS as a social and economic challenge; available resources are unevenly distributed, and there is limited potential for improved delivery

SIA Scoping Report Page 15 Lichtenburg 2 North West Province August 2018 of services and growth. From the above, job creation and poverty eradication together with the low level of expertise and skills; stand out as the greatest challenges to be resolved within the Province.

Goals and objectives of the PGDS are to fight poverty and unemployment, improve the low level of expertise and skills which are classified as both immediate and long term goals and require primary goals for sustained growth and economic development. The proposed solar farm will contribute to employment creation and skills development which is in line with the goals and objectives of the North West PGDS.

The North West PGDS aims at building a sustainable economy to eradicate poverty and improve social development. The proposed solar farm will contribute to growth and development of the local area by expanding the economic base and creating employment opportunities.

3.2.3. Renewable Energy Strategy for the North West Province (2012)

In 2012 the North West Province’s then Department of Economic Development, Environment, Conservation and Tourism (DEDECT) developed the Renewable Energy Strategy for the North West Province. The strategy was developed in response to the need of the North West Province to participate meaningfully within South Africa’s RE sector. The RE strategy aims to improve the North West Province’s environment, reduce its contribution to climate change, and alleviate energy poverty, whilst promoting economic development and job creation whilst developing its green economy.

According to the strategy the North West Province consumes approximately 12% of South Africa’s available electricity, and is rated as the country’s fourth largest electricity consuming province. This is mainly due to the high demand of the electrical energy-intensive mining and related industrial sector, with approximately 63% of the electricity supplied to the province being consumed in its mining sector.

While the strategy recognises that South Africa has an abundance of RE resources available, it is cognisant of the fact that the applicability of these RE resources depend on a number of factors and as a result are not equally viable for the North West Province. The RE sources that were identified to hold the most potential and a competitive strength for the North West Province are Solar Energy (photovoltaic as well as solar water heaters), Municipal Solid Waste, hydrogen and fuel cell technologies, bio-mass, and energy efficiency.

The advantages and benefits for the North West Province associated with the implementation and use of RE technologies include:

» Provision of energy for rural communities, schools and clinics that are far from the national electricity grid. » Creation of an environment where access to electricity provides rural communities with the opportunity to create an economic base via agricultural and home-based industries and Small, Medium and Micro Enterprises (SMMEs) in order to grow their income-generating potential. » The supply of water within rural communities. » It would result in less time taken for the collection of wood and water, thus improving the quality of life within communities and specifically for women. » Improved health through the reduced use of fuelwood as energy source for cooking and heating that causes respiratory and other hazards.

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» Solar water heating for households in urban and rural settings, reducing the need for either electricity (in urban settings) and fuelwood (in rural settings) to heat water, thus lowering our National peak demand and conservation of woodlands in a sustainable manner. » Large-scale utilisation of renewable energy will also reduce the emissions of carbon dioxide, thus contributing to an improved environment. » The fact that RE go hand-in-hand with energy efficiency, it will result in additional financial benefit and the need for smaller RE systems. » The development of a strong localised RE industry within the NWP holds substantial potential for Black Economic Empowerment (BEE) and job creation within the Province. » The establishment of a strong RE base in the North West Province, especially in the manufacturing of fuel cells could stimulate the market for Platinum Group Metals (PGM), which would in turn help the local mining sector.

This is due to RE sources having considerable potential for increasing security of supply by diversifying the energy supply portfolio and increasingly contributes towards a long-term sustainable energy future. In terms of environmental impacts, RE results in the emission of less GHGs than fossil fuels, as well as fewer airborne particulates, and other pollutants. Furthermore, RE generation technologies save on water consumption in comparison with coal-fired power plants.

Solar Energy

With an average daily solar radiation of approximately 7 500 MJ/m² South Africa experiences some of the highest levels of solar radiation in the World. Most areas in South Africa average more than 2 500 hours of sunshine per year, which makes solar energy the most readily accessible resource in South Africa and specifically the North West Province which has a very good solar potential with an average daily solar radiation greater than 8 000 MJ/m².

The relative values for the annual solar radiation were determined for each of the four district municipalities in the North West Province compared to the maximum and minimum values for South Africa (refer to Table 3.1).

Table 3.1: Global annual solar radiation of the North West Province relative to South African Maximum and Minimum location values. Relative to South Relative to South Description Annual Solar Radiation Range (MJ/m²) African Maximum African Minimum Maximum in South 9 001 9 500 - - Africa Dr Ruth Segomotsi Mompati District 8 501 9 000 -5% 40% Municipality Ngaka Modiri- Molema District 8 501 9 000 -5% 40% Municipality Bojanala Platinum 8 001 8 500 -11% 32% District Municipality Dr Kenneth Kaunda 8 001 8 500 -11% 32% District Municipality

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Relative to South Relative to South Description Annual Solar Radiation Range (MJ/m²) African Maximum African Minimum Minimum in South 6 000 6 500 - - Africa

While Upington in the Northern Cape Province is located within the area of maximum solar radiation, and is considered a prime location for solar energy projects, the Ngaka Modiri-Molema District Municipality of the North West Province receives on average only 5% less solar radiation than Upington. In addition, all four district municipalities on average receive 40% to 32% more solar radiation than the locations with the least solar radiation in South Africa (such as Durban). The North West Province therefore shows considerable potential for solar applications in RE as a whole, with higher potential in the Ngaka Modiri-Molema and Dr. Ruth Mompati Districts. The development of commercial PV solar energy facility within the Ngaka Modiri- Molema District of North West Province specifically is therefore strongly supported in terms of the Renewable Energy Strategy for the North West Province (2012).

3.2.4. North West Provincial Spatial Development Framework (2017)

As per the North West Provincial Spatial Development Framework (PSDF) (2017) electricity within the province is primarily provided by Eskom to re-distributors – mainly municipalities (10%), commercial (5%), agriculture (5%), mining (30%), industrial (30%) and Residential (20%). Electricity for supply to the North West Province is mostly generated by Eskom’s Matimba coal-fired Power Station in Limpopo which will in future be augmented by Eskom’s Medupi coal-fired Power Station.

According to the North West PSDF the proposed project site is located within the Mahikeng Distribution Area, which is characterised by minor developments, including Commercial, Industrial, and Major Electrification; and has a projected growth of 125MW (Eskom, 2015).

Eskom’s Transmission Development Plan 2015 – 2024 represents the transmission network infrastructure investment requirements over the 10 year period between 2015 and 2024. Projects proposed for the North West Province for the next 10 years include the introduction of 400kV power lines and transformation to support or relieve the existing networks. Five transmission power corridors have been identified as critical to providing a flexible and robust network that could respond to meet the needs of future IPPs and IRP requirements. The location of the potential MTS substation projects for additional grid access and the transmission power corridor routes are shown in Figure 3.1.

SIA Scoping Report Page 18 Lichtenburg 2 North West Province August 2018

Figure 3.1: Planned Transmission Power Corridors (Source: North West PSDF, 2017). The proposed project location is indicated by the yellow star.

According to the North West Province PSDF, and Statistics South Africa, the proposed project area is characterised by fairly low levels of access to electricity (i.e. 60% - 70%), when compared to other areas within the Province (refer to Figure 3.2).

SIA Scoping Report Page 19 Lichtenburg 2 North West Province August 2018

Figure 3.2: Access to Electricity (Source: Statistics South Africa). The proposed project location is indicated by the yellow star.

The implementation of Lichtenburg 2 at the proposed project site would result in the generation of additional electricity within an area which is characterised by a fairly low level of access (i.e. between 60% - 70%). In addition, the project has the potential to somewhat alleviate the Province’s reliance on electricity generated by coal-fired power stations such as Eskom’s Matimba and Medupi coal-fired Power Stations as is currently the case.

3.3. District and Local Municipalities Policies

The strategic policies at district and local level have similar objectives for the respective areas, namely to accelerate economic growth, create jobs, and uplift communities. Lichtenburg 2 is considered to also align with the aims of these policies, even if contributions to achieving the goals therein are only minor.

3.3.1. Ngaka Modiri Molema District Municipality Integrated Development Plan (IDP), 2017 – 2022

The vision of the Ngaka Modiri Molema District Municipality as contained within its 2017 – 2022 Integrated Development Plan (IDP) is as follows:

“Leaders in integrated municipal governance”.

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The vision of the Ngaka Modiri Molema District Municipality is:

“To provide a developmental municipal governance system for a better life for all”.

In recognition of its vision and mission, the Ngaka Modiri Molema District Municipality has adopted the following strategic development goals for the District:

» Institutional Transformation and Organisational Development. » Provision of Infrastructure for Basic Service Delivery. » Economic Development. » Financial Viability. » Good Governance.

With regards to “Economic Development”, the following additional strategic objectives have been identified:

» To facilitate economic development by creating a conducive environment for business development. » Unlock opportunities to increase participation amongst all sectors of society in the mainstream economy to ultimately create decent job opportunities. » To promote Local Economic Development » To enhance rural development and agriculture » To Expand Public Works Programme

The implementation of Lichtenburg 2 would contribute positively towards local economic development as well as the creation of new job opportunities within the Ngaka Modiri Molema District Municipality, and would therefore be in line with these objectives.

3.3.2. Ditsobotla Local Municipality Integrated Development Plan (IDP), 2017 – 2018

The vision statement for the Ditsobotla Local Municipality as contained within the Integrated Development Plan (IDP) 2017 – 2018 is as follows:

“A developmental municipality dedicated to the social and economic upliftment of its communities.”

The Mission Statement of the Ditsobotla Local Municipality is as follows:

“Sustainable service delivery through: transparent administration, dedicated staff, implementation of municipal programmes, and consultation with communities.”

The following key issues and objectives have been identified for the Ditsobotla Local Municipality:

Key Issue Key Objective The municipality’s financial position is poor due to A fully capacitated municipal administration capable of inadequate capacity as well as poor finance developing and implementing effective financial management controls / systems. controls.

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The organizational design does not respond to service Capacitated institution structured in a way that enables delivery challenges. There is no adequate capacity in efficient and effective service delivery. technical functions of the municipality. High levels of poverty and unemployment, skills shortage, Create an environment conducive for economic growth, and inequalities within the Ditsobotla Local Municipality. sustainable employment opportunities and growth in personal income levels of communities. Backlogs in the provision of social services, infrastructure, A well-structured Ditsobotla Local Municipality able to service delivery and economic opportunities. support sustainable human settlement and enable residents meets their social and economic needs.

The implementation of Lichtenburg 2 would contribute towards addressing the Ditsobotla LM’s key issue regarding high levels of poverty and unemployment, skills shortage, and inequalities through the creation of employment opportunities, the provision of skills training opportunities, and local economic growth, including growth in personal income levels of those community members who would be employed on the project.

3.4. Conclusion

The review of relevant legislation, policies and documentation pertaining to the energy sector indicate that renewable or green energy (i.e. energy generated by naturally occurring renewable resources) and therefore the establishment of Lichtenburg 2 is supported at a national, provincial, and local level, and that the proposed project will contribute positively towards a number of targets and policy aims. Specifically those relating to employment creation, social and economic development and upliftment, and an increase in RE and electricity supply which has the potential to further improve individuals’ standard of living.

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4. SOCIO-ECONOMIC PROFILE

Lichtenburg 2 is proposed on Portion 23 of the Farm Houthaalbomen No. 31 within Ward 16 of the Ditsobotla Local Municipality, of the Ngaka Modiri Molema District, in the North West Province (refer to Table 4.1).

Table 4.1: Spatial Context of the Proposed Project Site. Component Description / Dimensions Portion Number Portion 23 Farm Name and Number Farm Houthaalbomen No. 31 Closest Town Lichtenburg (approximately 10km south-east) Bakerville (approximately 7.5km north) Municipal Ward Ward 16 Local Municipality Ditsobotla Local Municipality District Municipality Ngaka Modiri Molema District Municipality Province North West Province Preferred Access Access to the site is obtained directly via the R505 regional road which traverses the eastern half of the project site in a north-west to south-east direction.

This Chapter provides an overview of the socio-economic environment within which Lichtenburg 2 is proposed for development, and provides the socio-economic basis against which potential issues can be identified.

4.1. North West Province

The North West Province is situated in the central-northern extent of South Africa. The Province is bordered by Northern Cape Province to the west, and south-west; Free State Province to the south; Gauteng Province to the east; Limpopo Province to the north-east; and Botswana to the north. It occupies an area of land approximately 104 882km² in extent, making it South Africa’s 6th largest in terms of area; and has a population of 3 509 953 (2011) and population density of 33/km² (2011), making it South Africa’s 7th most densely populated Province.

The North West Province is characterised by altitudes ranging from 920 - 1782m amsl, which makes it one of the Provinces with the most uniform terrain. The central and western extents of the Province are characterised by gently undulating plains, while the eastern extent is characterised as mountainous, and includes the Magaliesberg mountain range. Ancient igneous rock formations dominate the north-eastern and north-central extent of the Province; and the Gatsrand between Potchefstroom and Carletonville is considered to be one of the most ancient preserved landscapes in the world. The geology of the Province is significant given its mineral resources which are rich in platinum, gold, uranium, iron, chrome, manganese and diamonds.

In terms of land use patterns, approximately 69% of the North West Province is in a natural, or near-natural state; while 31% of the province is irreversibly modified as a result of croplands (25.6%), urban (3.5%), and mining (0.7%) activities. The Province is predominantly rural with the main economic activities comprising mining and agriculture.

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The North West Province comprises 4 Districts, namely Bojanala Platinum, Ngaka Modiri Molema, Dr Ruth Segomotsi Mompati, and Dr Kenneth Kaunda (refer to Figure 4.1).

Figure 4.1: Districts of the North West Province (Source: Municipalities of South Africa).

4.2. Ngaka Modiri Molema District

Ngaka Modiri Molema District is in the north-central extent of the North West Province, and is bordered by Dr Ruth Segomotsi Mompati District to the west, south-west, and south; Dr Kenneth Kaunda District to the south, and south-east; Bojanala Platinum District to the east; and Botswana to the north. The Ngaka Modiri Molema District occupies an area of land approximately 25 206km² in extent, making it the 2nd largest District in the North West Province; with the second highest population (842 699 in 2011), and 3rd highest population density (30/km² in 2011).

The Ngaka Modiri Molema District is home to Mahikeng (previously Mafikeng), the capital of the North West Province. Other prominent cities and towns found within the District include Biesiesvlei, Coligny, Delareyville, Disaneng, Groot Marico, Kraaipan, Lichtenburg, Madibogo, Mahikeng, Mmabatho, Ottosdal, Ottoshoop, Sannieshof, Setlagole, and Zeerust. The main economic sectors include agriculture, tourism, and mining.

Ngaka Modiri Molema District comprises five Local Municipalities (LMs) namely, Ditsobotla, Mahikeng, Ramotshere Moiloa, Ratlou and Tswaing LMs (refer to Figure 4.2).

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Figure 4.2: Local Municipalities of Ngaka Modiri Molema District (Source: Municipalities of South Africa).

4.3. Ditsobotla Local Municipality

Ditsobotla LM is located in the south-eastern extent of the Ngaka Modiri Molema District. It is bordered by Ramotshere Moiloa LM to the north; Mahikeng LM to the north-west, and west; Tswaing LM to the south-west; the City of Matlosana LM, and JB Marks LM of Dr Kenneth Kaunda District to the south, and south-east; and Kgetlengrivier LM of Bonjala Platinum District to the north-east. The Ditsobotla LM is approximately 6 387km² in extent, making it the second largest LM in the District; with the 2nd largest population (168 902 in 2011), and 2nd highest population density (26/km² in 2011).

The Ditsobotla LM was established through the amalgamation of the former Lichtenburg, Coligny and Biesiesvlei Transitional Councils. The seat of the Ditsobotla LM is Lichtenburg. Its main attractions include cultural, heritage, and agricultural museums; the burning vlei, which is a unique vlei consisting of the thick layers of subterranean peat that burnt for years, creating a rare natural phenomenon; the Lichtenburg Game Breeding Centre (which has since closed down); Eufees and Duch Roode Dams; and Molopo Oog/Wondergat. Major cities and towns found within the Ditsobotla LM include Biesiesvlei, Coligny, and Lichtenburg. The main economic sectors within the municipality include manufacturing (38.5%), agriculture (16.5%), and wholesale and retail (7.4%).

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4.4. Project Site

Lichtenburg 2 is proposed on Portion 23 of the Farm Houthaalbomen No. 31 within Ward 16 of the Ditsobotla Local Municipality, of the Ngaka Modiri Molema District. The closest major town to the project site is Lichtenburg, which is located approximately 10km south-east of the project site. Other towns in proximity of the project site include Bakerville, located approximately 7.5km north, and Itsoseng located approximately 24km west of the project site. Mahikeng, the provincial capital, is located approximately 53km north-west of the project site.

Lichtenburg serves as the administrative centre of the Ditsobotla LM. Lichtenburg is located at the centre of the maize triangle, considered to be the primary maize growing area in South Africa, and Lichtenburg’s main economic activity is the production of maize (corn). The production of cement is also considered to be a major economic activity with three large cement producers located within 80km of the town. Several factories manufacturing liquid fertilizer, animal feed and agricultural equipment have also been established.

The Lichtenburg area is considered to have a unique historical background and houses a number of places of interest including the Lichtenburg Diggings Museum, Bakerville, the Burning Vlei, Wondergat, and monuments such as the General De la Rey Square.

The surrounding area within which Lichtenburg 2 is proposed is characterised by a number of small holdings which are used for small-scale agriculture (i.e. maize and livestock), residential, and semi-industrial (earth moving and agricultural equipment). Existing built infrastructure is present within and surrounding the study area, some of which are expected to be occupied. It is assumed that these buildings include farm homesteads, workers quarters and warehouses. There are a number of centre pivots on the project site, which are used for irrigated agriculture. Access to the project site is obtained directly via the R505 regional road, which traverses the eastern half of the project site in a north-west to south-east direction. The vertical and horizontal landscapes are also disturbed due to the presence of linear infrastructure within the surrounding area, including:

» Four power lines which run parallel to one another and traverse east of the project site in a north-south direction, namely:  Mmabatho Bulk / Watershed DS 1 88kV power line.  Watershed / Zeerust 1 132kV power line.  Slurry PPC / Watershed 1 88kV power line from A/B206 to Watershed Conductor.  Mmabatho Bulk / Watershed DS 2 88kV power line. » Regional road:  R505 Regional Road traverses the eastern half of the project site in a north-west to south-east direction.

No scenic drives have been identified within or in-close proximity to the project site.

4.5. Baseline Description of the Social Environment

The following subsections provide an overview of the socio-economic profile of the Ditsobotla Local Municipality within which Lichtenburg 2 is proposed. In order to provide context against which the Local Municipality’s socio-economic profile can be compared, the socio-economic profiles of the Ngaka Modiri Molema District, North West Province, and South Africa as a whole have also been provided where

SIA Scoping Report Page 26 Lichtenburg 2 North West Province August 2018 applicable. The data presented in this section have been derived from the 2011 Census, the North West Provincial Spatial Development Framework (PSDF), and the Ngaka Modiri Molema DM and Ditsobotla LM IDPs.1

4.6. Population Size

Understanding the population dynamics of an area is important as it provides an overview of the human capital present within an area. It therefore provides an insight into the potential labour pool, from which workers may be sourced; as well as the local communities which may either be impacted on, or benefit from, a particular project. Population trends within an area also affect economic growth, and the demand for goods and services.

The Ditsobotla LM has a population of 168 902 which is equivalent to approximately 20% of the DM population, 4.8% of the provincial population, and 0.3% of the national population. The LM occupies an area of land approximately 6 465km² in extent and has a population density of 26/km². Between 2001 and 2011 the LM experienced a positive population growth of 1.3% per year. This is higher than the DM population growth of 1.0% between 2001 and 2011.

Table 4.2: Overview of general statistics for South Africa, North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM (Source: Census 2011). Census 2011 Area (km²) Population Male Female Population Population total density/km² growth rate (2001 – 2011) South Africa 1 220 813 51 770 560 25 188 791 26 581 769 42.4 1.5% North West Province 104 882 3 509 953 1 779 903 1 730 050 33 1.6% Ngaka Modiri Molema DM 28 206 842 692 413 395 429 297 30 1.0% Ditsobotla LM 6 465 168 902 85 297 83 605 26 1.3%

4.7. Population Group

Information on population group dynamics provides a better understanding of the cultural dynamics which may be prevalent within the area. This is important in terms of determining the potential for community support, the likely community structure and appropriate / most-suited consultation practises to utilise when engaging with the local communities (and whether different communication strategies should be adopted for different community groups).

1 While information has been derived from the North West PSDF, and Ngaka Modiri Molema DM and Ditsobotla LM IDPs, these sources largely made use of statistical information derived from the Census 2011. The information presented in this Chapter may therefore be somewhat outdated, but is considered sufficient for the purposes of this assessment (i.e. to provide an overview of the socio-economic characteristics against which impacts can be identified).

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According to Census 2011, the significant majority of 89.1% of the Ditsobotla LM population are Black African, followed secondly by 8.2% which are White, 1.9% which are Coloured, and 0.6% which are Indian / Asian. This population structure corresponds to that of the Ngaka Modiri Molema DM, and North West Province.

Population Groups

100% 93,9% 89,8% 89,1% 90% 79,2% 80%

70%

60%

50%

40%

30%

20%

10%

0% South Africa North West Ngaka Modiri Molema DM Ditsobotla LM

Black African White Coloured Indian/Asian Other

Figure 4.3: Population groups of South Africa, North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM (Source: Census 2011).

4.7.1. Sex Profile

The sex profile of a population has significance in terms of gender distribution, and understanding the gender roles prevalent within the area. The Ditsobotla LM is slightly male dominated with males making up just over half (50.5%) of the municipal population, and females the remaining 49.5% of the population. This correlates with the Provincial population which is also slightly female dominated (comprising 50.7% males, and 49.3% females), but differs from the District and National populations which are both female dominated.

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Sex Profile

52% 51,3% 50,9% 51% 50,7% 50,5% 51%

50% 49,5% 50% 49,3% 49,1% 49% 48,7%

49%

48%

48%

47% South Africa North West Ngaka Modiri Molema Ditsobotla LM DM

Male Female

Figure 4.4: Sex profile within South Africa, North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM (Source: Census 2011).

4.7.2. Age Profile

The age structure of a population is important for planning purposes, as it provides insight into what services may be required, and the level to which such services are required. For example, populations which are youth dominated (between 0 and 14 years of age) indicate a large school going population, and highlight the need for youth care and education (i.e. crèche, primary, secondary, and tertiary) facilities across different levels. Similarly populations which are dominated by an economically active age group (between 15 and 64 years of age) highlight the need to provide suitable employment and business opportunities, while populations with a predominately aged structure (i.e. over 65 years of age) indicate a high proportion of the population which are of retirement age. Such a portion of the population would no longer be economically active, and would indicate a need for services which cater to the elderly members of society, including the provision of adequate health care and nursing facilities.

According to Figure 4.5 the age structure of the Ditsobotla LM correlates closely with that of the Ngaka Modiri Molema DM. When assessing five year age groups the largest proportion of the population are between the ages of 0 to 4 years old, with the proportion decreasing uniformly as age increases. There are no significant outliers within any one age group. The age structure of the North West Province and South African national populations are similar to one another, but differ somewhat from that of the Ditsobotla LM and Ngaka Modiri Molema DM. The age pyramids for the provincial and national populations reflects populations which are characterised by a large proportion of youth specifically between 0 to 4 years, and 15 to 29 years in age (as represented by the convex shape), and a smaller proportion of the population comprising age groups 5 to 14 years of age. The high proportion of potentially economically active persons within the Ditsobotla LM implies that there is a sufficient human resource base for development projects to involve the local population. The youth (below 35 years of age) represents the largest proportion of the population, which indicates that focus needs to be placed on youth development.

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South African Population Graph North West Population Graph

0-4 0-4

10-14 10-14

20-24 20-24

30-34 30-34

40-44 40-44

50-54 50-54

60-64 60-64

70-74 70-74

80-84 80-84

-8,0% -6,0% -4,0% -2,0% 0,0% 2,0% 4,0% 6,0% -8,0% -6,0% -4,0% -2,0% 0,0% 2,0% 4,0% 6,0% 8,0%

Male Female Male Female

Ngaka Modiri Molema DM Population Graph Ditsobotla LM Population Graph

0-4 0-4

10-14 10-14

20-24 20-24

30-34 30-34

40-44 40-44

50-54 50-54

60-64 60-64

70-74 70-74

80-84 80-84

-8,0% -6,0% -4,0% -2,0% 0,0% 2,0% 4,0% 6,0% 8,0% -8,0% -6,0% -4,0% -2,0% 0,0% 2,0% 4,0% 6,0% 8,0%

Male Female Male Female

Figure 4.5: Age profile within South Africa, North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM (Source: Census 2011).

SIA Scoping Report Page 30 Lichtenburg 2 North West Province August 2018

4.8. Dependency Ratio

An area’s dependency ratio provides an indication of that portion of the population which is dependent on the economically active portion of the population based on functional age groups. The dependent portion of the population typically comprises youth below 15 years of age which are yet to enter the workforce, and individuals 65 years and older which would typically already have retired from the workforce. In addition to not contributing towards the economy, such individuals are also likely to have additional needs which need to be catered for, such as access to suitable education facilities for the school going population, and access to health care facilities in the case of the aged population. The dependency ratio is calculated by combining the number of children aged under 15 years, and the number of adults aged 65 years and older, and dividing this by the working age population (i.e. those ages between 15 and 64 years of age.

The Ditsobotla LM has a dependency ratio of 38.1; implying that for every 100 people within the Ditsobotla LM, over two thirds (i.e. 38.1) of them are considered dependent. This figure is slightly lower than the Ngaka Modiri Molema DM (39.2), but higher than the provincial (35.3) and national (34.5) dependency ratios.

Dependency Ratio

40 39,2 39 38,1 38

37

36 35,3

35 34,5

34

33

32 South Africa North West Ngaka Modiri Molema Ditsobotla LM DM

Figure 4.6: Dependency ratio in South Africa, North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM (Source: Census 2011).

4.8.1. Education Levels

Education plays a pivotal role in community development. The level of education influences growth and economic productivity of a region. There is a positive correlation between a higher level of education and the level of development, and standard of living. Education levels in any given population will influence both economic and human development. While low levels of education typically lead to a low skills base within an area, high levels of education have the opposite effect, resulting in a skilled or highly skilled population. Household and personal income levels are also either positively or adversely affected by education levels.

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Figure 4.7 depicts the highest level of education received by the adult population aged 20 years and older in South Africa, the North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM.

Highest Level of Education

40% 33,9%

35% 33,2%

29,9% 28,7%

30% 28,5% 25,2%

25%

22,6%

20,7%

20,2% 20,0%

20%

17,0%

16,8% 14,7%

15%

12,3%

12,1%

11,8% 8,6%

10% 8,1%

7,7%

6,8%

6,0%

5,3%

5,2% 4,6% 5%

0% South Africa North West Ngaka Modiri Molema DM Ditsobotla LM

No Schooling Some Primary Completed Primary Some Secondary Grade 12 / Matric Higher

Figure 4.7: Highest Level of Education in South Africa, North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM (Source: Census 2011).

Approximately 14.7% of the Ditsobotla LM population aged 20 years and older have received no formal form of schooling. This figure is slightly lower than the DM (17%), but higher than the Provincial (11.8%), and national (8.6%) averages. The majority of 29.9% of the LM population have received some secondary education (which correlates with the DM, Provincial, and national averages), followed closely by 22.6% which have received some primary schooling. Approximately one fifth (20%) of the LM population have completed Grade 12 / Matric, with 6.8% having received some form of higher / tertiary education.

Due to the fact that the majority of almost three quarters (73.2%) of the Ditsobotla LM population have not completed Grade 12 / Matric, it can be expected that a large proportion of the population will either be unskilled or have a low-skill level, and would therefore either require employment in non-skilled or low-skilled sectors; or alternatively would require skills development opportunities in order to improve the skills, and income levels of the area.

4.9. Employment

The employment profile of an area is an important indicator of human development, as poverty and unemployment are closely correlated. The quality of labour is reflected, amongst other things, by the educational profile of the economically active population and the availability of training facilities in the region. The term labour force refers to those people who are available for employment in a certain area. According to Statistics South Africa, the definitions of the following employment indicators are:

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» Economically active person: “A person of working age (between 15 and 65 years inclusive) who is available for work, and is either employed, or is unemployed but has taken active steps to find work in the reference period.” » Employed: “Those who performed work for pay, profit or family gain for at least one hour in the seven days prior to the interview or who were absent from work during these seven days, but did have some form of paid work to return to.” » Official and expanded definition of unemployment: “The unemployed are those people within the economically active population who: (a) did not work during the seven days prior to the interview, (b) want to work and are available to start work within two weeks of the interview, and (c) have taken active steps to look for work or start some form of self-employment in the four weeks prior to the interview.” » Labour force: “All employed and unemployed persons of working age”. » Unemployment rate: “The percentage of the economically active population that is unemployed.”

The employment profile of an area is also an important indicator of the level of disposable income and subsequently the expenditure capital of the residing population.

Employment Status

60%

50% 47,9%

43,2%

40,2%

39,2% 38,9%

40% 37,1% 35,5%

30% 29,2% 17,1%

20% 16,5%

14,8%

14,3% 8,1%

10% 6,9%

5,6% 5,4%

0% South Africa North West Ngaka Modiri Molema Ditsobotla LM DM

Discouraged Work Seeker Employed Other not economically active Unemployed

Figure 4.8: Employment Status in South Africa, North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM (Source: Census 2011).

The Ditsobotla LM has an unemployment rate of 28.3%. Of the Ditsobotla LM’s labour force (i.e. individuals ages between 15 and 64 years of age) the majority of 43.2% are not economically active. This refers to the economically inactive portion of the population who are able and available to work, but who do not work, and who are not looking for work. Such a figure is of significance as it demonstrates a population’s willingness and desire to find employment. The economically inactive proportion of the Ditsobotla LM’s labour force is slightly lower than the DM (47.9%), but higher than the Provincial (40.2%), and national (39.2%) averages.

Approximately 14.3% of the Ditsobotla LM’s labour force is unemployed. This means that 14.3% of the economically active population within the LM are currently unemployed, but are willing and able to work, and are actively seeking employment. The unemployment rate for the LM is fractionally lower than the DM

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(14.8%), as well as the Provincial (17.1%), and national averages (16.5%). This high proportion of the economically inactive population implies that irrespective of the size of the Ditsobotla LM’s labour force, a far smaller proportion would be available to absorb employment opportunities. The possibility therefore exists that labour may need to be sourced from elsewhere (i.e. from outside of the Ditsobotla LM). This implies that there is limited human capital available within the Ditsobotla LM, without the provision of training and development of young and economically active people in occupations in the relevant fields needed.

4.10. Annual Average Household Income levels

The income levels of the employed population are analysed in order to determine the population’s standard of living as well as their ability to pay for basic services. Household income levels are one avenue for determining poverty levels in a community. Households that have either no income or low income (i.e. R0 – R38 400 per annum) fall within the poverty level, indicating the difficulty to meet basic need requirements. Middle-income households are classified as earning between R38 401 – R307 200 per annum, and high income households are classified as earning R307 201 or more per annum.

Annual Avergae Household Income

35% 31,0%

30% 26,5%

25%

20,0% 18,7%

20% 18,6%

17,8%

16,8%

16,7%

15,7% 14,7%

15%

12,5%

11,7%

11,4%

10,5%

10,0%

9,9%

9,7%

9,5%

9,2%

9,1% 8,6%

10% 8,4%

7,8%

7,2%

7,2%

6,5%

6,2%

6,0%

4,7%

3,9%

3,8%

3,8% 3,6%

5% 3,3%

3,2%

3,2%

2,3%

2,0%

2,0%

1,7%

1,2%

0,5%

0,5%

0,5%

0,4%

0,3%

0,3%

0,3%

0,2%

0,2%

0,2% 0,1% 0% South Africa North West Ngaka Modiri Molema DM Ditsobotla LM

No income R1 - R4,800 R4,801 - R9,600 R9,601 - R19,200 R19,201 - R38,400

R38,401 - R76,8000 R76,801 - R153,600 R153,601 - R307,200 R307,201 - R614,400 R614,401 - R1,228,800

R1,228,801 - R2,457,600 R2,457,601+ Unspecified

Figure 4.9: Average Annual Income in South Africa, North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM (Source: Census 2011).

Over two thirds (68.4%) of households within the Ditsobotla LM fall within the low income (poverty level) bracket (i.e. below R38 400 per annum). This figure is higher than the Ngaka Modiri Molema DM (65.5%), North West Provincial (57.5%) and South African National (53.3%) averages. Approximately one quarter (25.9%) of households within the LM fall within the medium income bracket, while the remaining 5.7% fall within the high income bracket.

SIA Scoping Report Page 34 Lichtenburg 2 North West Province August 2018

South African Income Brackets North West Income Brackets

6% 7%

38% 36%

56% 57%

Low Income (Poverty Level) Medium Income High Income Low Income (Poverty Level) Middle Income High Income

Ngaka Modiri Molema DM Ditsobotla LM Income Brackets Income Brackets 6% 5%

26% 29%

66% 68%

Low Income (Poverty Level) Middle Income High Income Low Income (Poverty Level) Middle Income High Income

Figure 4.10: Average Income Levels in South Africa, North West Province, Ngaka Modiri Molema DM, and Ditsobotla LM (Source: Census 2011).

The high poverty level prevalent within the LM can be attributed with social consequences such as an inability to pay for basic needs and services, which in turn has influence on an individuals’ standard of living.

4.11. Economic Activities

According to the Ditsobotla LM IDP 2017 – 2018 the LM contributes 22.7% to the DM economy. The finance and business services sector represent the largest contributing sector with a contribution of 24.7%, followed by the trade sector with a contribution of 19.1%, the manufacturing sector which contributes 11.8%, and the general government service which contributes 11.4%.

The dominant economic sectors within the LM include finance and business services (25%); wholesale and retail trade, catering and accommodation (19%); manufacturing (12.2%); and general government services (11.5%).

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4.12. Health

South Africa’s health sector is most concerned with communicable, non-communicable, pre-natal and maternal, and injury-related conditions. According to the Ditsobotla LM IDP 2017 – 2018 the Ditsobotla LM is not expected to provide municipal health services except through an agreement with the Ngaka Modiri Molema DM. The LM has a Service Level Agreement (SLA) with the DM to provide the municipal health services on an agency basis. The provision of health services within the Ditsobotla LM is the responsibility of the provincial government, however the LM has a responsibility to consider the health needs of communities through its planning processes.

There are currently two hospitals within the Ditsobotla LM, namely: General de La Rey Hospital and Thusong Community Hospital. General de La Rey Hospital provides services such as admitted patient care and maternity services. The outpatient department provides emergency care for patients before the patient is referred to the Thusong Community Hospital. Thusong Community Hospital is located approximately 25km from Lichtenburg on the Mafikeng road at the turn off to Itsoseng. The hospital consists of theatres, male and female medical wards, gynaecology ward, paediatric ward, maternity ward, tuberculosis ward, out patients; and casualty.

There are also nine clinics in the LM which includes the recently built state-of-the-art medical centre in Itsoseng aimed at compensating for the already stressed Thusong Community Hospital. There is a total estimated backlog of 31 health facilities to cater for a population estimated at 168 902 for all municipal areas. Based on the planning standards or norms of one clinic per 5 000 people it would appear the Ditsobotla LM is underprovided in terms of health clinics.

4.13. Type of Households

As of 2011 there were a total of 44 897 households within the Ditsobotla LM. This is equivalent to approximately 19.3% of the total number of households within the Ngaka Modiri Molema DM (231 851), 4.1% of the total number of households within North West Province (1 097 610), and 0.3% of the total number of households within South Africa (15 065 018). Of the total number of households within the Ditsobotla LM the majority of 69.2% comprise houses (i.e. house or brick / concrete block structure on a separate stand or yard or on a farm), followed by 13.7% which comprise informal dwellings (i.e. a shack not in a back yard).

The average household size within the Ditsobotla LM is 3.7 persons per household. This figure is higher than the DM (3.2), Provincial (3.2), and National (3.4) average household sizes.

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Type of Household

Unspecified 0,4% Traditional dwelling/hut/structure made of traditional 7,5% materials

Townhouse (semi-detached house in a complex) 0,3%

Semi-detached house 0,6% Room / flatlet on a property or larger dwelling / servants 0,5% quarters / granny flat

Other 0,9%

Not applicable 1,9%

Informal dwelling (shack, not in backyard) 13,7%

Informal dwelling (shack, in backyard) 2,6%

House or brick / concrete block structure on a separate stand 69,2%

House / flat / room in backyard 1,0%

Flat or apartment in a block of flats 1,1%

Cluster house in complex 0,2%

Caravan / tent 0,1%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Figure 4.11: Households by Type of Dwelling within the Ditsobotla LM (Source: Census 2011).

4.14. Access to Basic Services

Basic services such as electricity, water and sanitation, and refuse and waste removal are considered critical for the improvement of people’s quality of life, and adequate supplies of basic services are also necessary to ensure life, well-being, and human dignity (Stats SA, 2017). Individuals’ rights to basic services is largely enshrined in Section 24 of the Constitution which states that everyone has the right to an environment that is not harmful to their health or well-being. The accessibility of basic services is closely related to social inclusion and social capital, and the failure of municipalities to deliver services can have a detrimental impact on social and economic development (IDASA, 2010 in Stats SA, 2017). In terms of Section 73 of the Local Government Municipal Systems Act (No. 32 of 2000), municipalities have a general duty to give effect to the provisions of the Constitution and give priority to the basic needs of the local community; promote the development of the local community; and ensure that all members of the local community have access to at least the minimum level of basic municipal services. In addition, municipal services must be equitable and accessible; be provided in a manner that is conducive to the prudent, economic, efficient and effective use of available resources, and the improvement of standards of quality over time; be financially sustainable; be environmentally sustainable; and be regularly reviewed with a view to upgrading, extension and improvement. Table 4.3 provides the classification of infrastructure quality and different levels of service provision developed by Statistics South Africa following World Bank studies (Stats SA, 2017).

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Table 4.3: Classification of infrastructure quality (Stats SA, 2017). Service Level Water Sanitation Solid Waste Electricity None No access to piped No sanitation. No facilities / dump No access to water. anywhere electricity Minimal Communal Bucket toilets. Communal / own Generator / solar standpipe > 200m. refuse dump Basic Communal Pit toilet without Communal Access to electricity standpipe < 200m ventilation pipe. container / don’t pay for collection point Intermediate Piped water in the VIP, Chemical, or Removed less than Connected to yard. ecological toilets. once per week source and paid for Full Piped water in Conventional Removed once per In-house pre- and dwelling waterborne week post-paid meters.

Access to basic services is assessed at a household level. An overview of households within the Ditsobotla LM’s access to basic services is described in the following sub-sections.

4.14.1. Access to Water

Approximately two thirds (66%) of households within the Ditsobotla LM have access to piped water inside their yard / dwelling which is equivalent to the basic level of service provision. Approximately 23.2% of households receive piped water outside of their yard, while 10.9% have no access to water services.

Source of Water

Water vendor 0,6%

Water tanker 5,9%

Spring 0,6%

River/stream 0,2% Regional/local water scheme (operated by municipality 57,7% or other water services provider)

Rain water tank 0,3%

Other 4,2%

Not applicable 0,1%

Dam/pool/stagnant water 0,6%

Borehole 29,8%

0% 10% 20% 30% 40% 50% 60% 70%

Figure 4.12: Access to Water within the Ditsobotla LM (Source: Census 2011).

4.14.2. Access to Sanitation

The majority of 34.8% of the Ditsobotla LM households make use of the bucket system, followed by 33.7% which have access to and make use of flush or chemical toilets. A quarter (25%) of households within the

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LM have access to pit latrines, and 6.5% of households have no access to sanitation services. Approximately only 16% of households within the LM experience access to sanitation services above the minimum RDP standard. Households within the Ditsobotla LM are therefore characterised by poor access to sanitation services.

Access to Sanitation Services

Unspecified 0,4%

Pit latrine with ventilation (VIP) 8,9%

Pit latrine without ventilation 26,3%

Other 2,5%

None 8,7%

Flush toilet (with septic tank) 3,4%

Flush toilet (connected to sewerage system) 44,3%

Chemical toilet 0,6%

Bucket latrine 4,9%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Figure 4.13: Access to Sanitation Services within the Ditsobotla LM (Source: Census 2011).

4.14.3. Access to Electricity

Energy is required for cooking, heating, and lighting purposes. Individuals’ access to different energy sources for cooking, heating, and lighting purposes is significant; as the burning of fuel sources such as wood, coal, and / or animal dung over extensive periods of time could result in negative health impacts for household members. Health impacts would be most significantly experienced by those vulnerable members of society, such as young children, pregnant women, and the elderly.

According to the Ditsobotla LM IDP 2017 – 2018 the LM is licensed to provide electricity in the areas of Lichtenburg, Blydeville, and Coligny while the remainder of the LM is serviced by Eskom. Approximately 32 933 (74%) of households within the LM are connected to the electricity grid. The LM has a total backlog of 11 567 (26%) of households without access to electricity.

4.14.4. Access to Refuse Removal

The majority of just over half (50.8%) of households within the Ditsobotla LM dispose of their refuse by making use of their own refuse dump, which is considered to be below the basic level of service provision for refuse removal. Approximately 35% of households have their refuse removed by a local authority at least once a week, while 6.7% of households have no form of refuse removal.

According to the Ditsobotla LM IDP 2017 – 2018 the spatial distribution of refuse removal clearly indicates that provision of formal refuse removal services by the LM only occurs in formal towns / residential areas of Lichtenburg, Blydeville, Boikhutso, Coligny, Tlhabologang, Itsoseng and Itekeng. The challenge facing the

SIA Scoping Report Page 39 Lichtenburg 2 North West Province August 2018 municipality is to extend the refuse removal service to the rural and village communities in the long-term and to initiate waste recycling projects.

Access to Refuse Removal Services

Unspecified 0,3%

Removed by local authority less often 1,7%

Removed by local authority at least once a week 35,0%

Own refuse dump 50,8%

Other 1,7%

Not applicable 0,1%

No rubbish disposal 6,7%

Communal refuse dump 3,6%

0% 10% 20% 30% 40% 50% 60%

Figure 4.14: Access to Refuse Removal Services within the Ditsobotla LM (Source: Census 2011).

4.15. Baseline summary

In summary, the area was found to have the following socio-economic characteristics:

» The project is proposed within the North West Province, which is South Africa’s 6th largest, and 7th most densely populated Province. » Between 2001 and 2011 the Ngaka Modiri Molema DM experienced a positive population growth rate of 1%, while the Ditsobotla LM experienced a positive growth rate of 1.3%. » Black Africans comprise the predominant population group within the Ditsobotla LM, Ngaka Modiri Molema DM, and North West Province. » Both the Ditsobotla LM and North West Province are slightly male dominated, whereas the Ngaka Modiri Molema DM is slightly female dominated. » The Ditsobotla LM, Ngaka Modiri Molema DM, and North West Provincial population age structures consists predominantly of the economically active population between the ages of 15 – 64. This implies that there is a larger human resource base for development projects to involve the local populations. » The Ditsobotla LM has a slightly lower dependency ratio than the Ngaka Modiri Molema DM. » There are relatively low education levels within the area, with the majority of the Ditsobotla LM and Ngaka Modiri Molema DM having received some secondary schooling. The majority of the population can be expected to have a relatively low-skill level and would either require employment within low- skilled sectors, or skills development opportunities in order to improve the skills level of the area, and therefore income levels. » The unemployment rate of the economically active population within the Ditsobotla LM is fractionally lower than that in the Ngaka Modiri Molema DM. However the high unemployment rates in both the Local and District Municipalities implies that there is efficient local human capital available for work.

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» Household income levels are low within the area, with the vast majority falling within the poverty level. The area can therefore be expected to have a high poverty level with associated social consequences such as not being able to pay for basic needs and services and poor living conditions. » The primary economic activity within the Ditsobotla LM is finance and business services sector, followed by the trade sector, the manufacturing sector, and general government services. » There are 2 hospitals and 9 clinics within the Ditsobotla LM, however the LM is considered to be under- serviced with regard to health facilities. » Approximately 16.3% of households within the Ditsobotla LM comprise informal dwellings, and 7.5% comprise traditional dwellings. » The majority of households within the Ditsobotla LM are well serviced with regards to water, and electricity. However over a quarter of households make use of pit latrines without ventilation, and over half of the municipal households make use of their own refuse dumps.

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5. IDENTIFICATION OF POTENTIAL SOCIAL IMPACTS

This Chapter provides an overview of the potential social impacts that have been identified, which may be associated with the development of Lichtenburg 2. Potential impacts have been identified based on the current understanding of the project and the socio-economic environment within which it is proposed. The potential social impacts identified for the project will be investigated further during the EIA phase.

5.1. Detailed Design and Construction Phase

Potential impacts associated with the detailed design and construction phase of a project are usually of a short duration (i.e. 12 to 18 months; equivalent to the length of the construction phase) and temporary in nature, but could have long-term effects on the social environment if not planned or managed appropriately. It is necessary, for example, that the detailed design phase be conducted in such a manner so as not to result in permanent impacts associated with the ill-placement of project components or associated infrastructure.

5.1.1. Construction Phase Impacts

Impact Creation of direct and indirect employment opportunities and skills development.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Construction of the project Positive – The creation of The impact will occur at a None identified. will result in the creation of employment opportunities local, regional, and a number of direct and will assist to an extent in national level. indirect employment alleviating unemployment opportunities, which will levels within the area. assist in addressing unemployment levels within the area and aid in skills development of communities in the area. Description of expected significance of impact At its peak, the construction is likely to result in the creation of approximately 300 – 400 employment opportunities. Of those employment opportunities available, approximately 60% will comprise opportunities for low skilled workers, 25% for semi-skilled workers, and 15% for skilled workers. Skills developed through experience in the construction of the facility will be retained by the community members involved. The impact is likely to be positive, local to national in extent, short-term, and of medium significance Gaps in knowledge and recommendations for further study » Information on the exact direct and indirect employment opportunities and skills development opportunities likely to be created during construction.

SIA Scoping Report Page 42 Lichtenburg 2 North West Province August 2018

Impact Economic multiplier effects.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Economic multiplier effects Positive – There are likely to The impact will occur at a None identified. from the use of local goods be opportunities for local local, and regional level. and services during the businesses to provide construction phase. goods and services during the construction phase of development. Description of expected significance of impact Economic multiplier effects from the use of local goods and services opportunities include but are not limited to, the provision of construction materials and equipment, and workforce essentials such as services, safety equipment, ablution, accommodation, transportation and other goods. The increase in demand for goods and services may stimulate local business and local economic development (however locally sourced materials and services may be limited due to availability). There is likely to be a direct increase in industry and indirect increase in secondary businesses. The impact is likely to be positive, local to regional in extent, short-term, and of medium significance. Gaps in knowledge and recommendations for further study » Information on capital expenditure to be spent on local goods and services.

Impact In-migration of people (non-local workforce and jobseekers).

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Increased pressure on Negative – The in-migration The impact will occur at a None identified. infrastructure and basic of job seekers to the area local level. services, and social could result in increased conflicts during pressure being placed on construction as a result of infrastructure and basic in-migration of people. services, and a rise in social conflicts. Description of expected significance of impact The in-migration of people to the area as either non-local workforce and / or jobseekers could result in increased pressure being placed on infrastructure and basic services on the local population (rise in social conflicts). An influx of people into the area, could lead to a temporary increase in crime levels, cause social disruption, and put pressure on basic services. An influx of people looking for economic opportunities could result in pressure on the local population such as rise in social conflicts and change in social dynamics, increase in HIV, pregnancies and drug abuse. Adverse impacts could occur if a large in-migrant workforce, which is culturally different from the local

SIA Scoping Report Page 43 Lichtenburg 2 North West Province August 2018

population, is brought in during construction. The impact is likely to be negative, local in extent, short-term2, and of medium significance due to the number of jobs expected to be created. Gaps in knowledge and recommendations for further study » Information on the exact number of employment opportunities likely to accrue to the local labour force, versus the number of employment opportunities likely to accrue to the non-local workforce and jobseekers. » Mechanisms for employment of local labour and minimisation of in-migration.

Impact Safety and security impacts.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Temporary increase in Negative – The in-migration The impact will occur at a None identified. No safety and security of job seekers to the area local level. workers should be allowed concerns associated with could be perceived to to reside on-site during the influx of people during result in increased criminal construction. the construction phase. activity. Description of expected significance of impact The perception exists that an influx of jobseekers, and / or construction workers to an area is a contributor to increased criminal activities in an area; such as increased safety and security risk for neighbouring properties and damage to property, increased risk of veld fire, stock theft, and crime etc. The impact is likely to be negative, local in extent, short-term, and of medium significance due to the number of jobs expected to accrue to the non-local workforce. Gaps in knowledge and recommendations for further study » Information on existing crime levels within the area. » Mechanisms for employment of local labour and minimisation of in-migration.

Impact Impacts on daily living and movement patterns.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Temporary increase in Negative – An increase in The impact will occur at a None identified. traffic disruptions and traffic due to construction local level. movement patterns during vehicles and heavy construction. vehicles could create short-term disruptions and safety hazards for current road users. Description of expected significance of impact

2 While the extent of the impact may be short-term (i.e. people are only likely to move into the area in search of employment prior to and possibly during construction), the implications thereof may be long-term, as people are likely to have settled in the area, and are unlikely to leave immediately after the completion of construction.

SIA Scoping Report Page 44 Lichtenburg 2 North West Province August 2018

Increased traffic due to construction vehicles and heavy vehicles could cause disruptions to road users and increase safety hazards. The use of local roads and transport systems may cause road deterioration and congestion. The impact is likely to be negative, local in extent, short-term, and of low significance given the proximity of the project to existing mining operations within the area. Gaps in knowledge and recommendations for further study » Number of vehicle trips anticipated during construction.

Impact Nuisance impacts (noise and dust).

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Nuisance impacts in terms Negative – The impact will The impact will occur at a None identified. of temporary increase in negatively impact sensitive local level. noise and dust, and wear receptors, and could and tear on access roads cause disruptions for to the site. neighbouring properties. Description of expected significance of impact Impacts associated with construction related activities include noise, dust and disruption or damage to adjacent properties. Site clearing activities increase the risk of dust and noise being generated, which can in turn negatively impact on adjacent properties. The impact is likely to be negative, local in extent, short-term, and of low significance. Gaps in knowledge and recommendations for further study » Impact of noise and dust on surrounding landowners.

Impact Visual and sense of place impacts.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Intrusion impacts from Negative – The project The impact will occur at a None identified. construction activities will could alter the area’s sense local level. have an impact on the of place which could area’s “sense of place”. negatively impact on sensitive receptors. Description of expected significance of impact Intrusion impacts such as aesthetic pollution (i.e. building materials, construction vehicles, etc.), noise and light pollution, and impacts could impact the “sense of place” for the local community. The impact is likely to be negative, local in extent, short-term, and of medium significance. Gaps in knowledge and recommendations for further study » Potential sensitive visual receptors need to be identified. » Visual Impact Assessment to inform the impact on the sense of place.

5.1.2. Operation Phase Impacts

Potential impacts associated with the operation phase are anticipated to be of a long-term duration (i.e. 20 years equivalent to the operational lifespan of the project).

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Impact Direct and indirect employment opportunities and skills development.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Creation of direct and Positive – The creation of The impact will occur at None identified. indirect employment and employment opportunities local, regional, and skills development and skills development will national levels. opportunities and skills assist to an extent in development as a result of alleviating unemployment the operation of the levels within the area. project. Description of expected significance of impact During operation a number of direct full time employment opportunities will be created. Of those employment opportunities created approximately 70% will comprise opportunities for low-skilled workers, 25% will comprise opportunities for semi-skilled workers, and approximately 5% will comprise opportunities for skilled workers. Employment opportunities include safety and security staff, operation and monitoring; and maintenance crew. Maintenance activities will be carried out throughout the lifespan of the project, and will include washing of solar panels, vegetation control, and general maintenance around the solar energy facility. The impact is likely to be positive, local to national in extent, long-term, and of medium significance. Gaps in knowledge and recommendations for further study » Information on exact direct and indirect employment opportunities and skills development programmes likely to be created during operation.

Impact Development of non-polluting, renewable energy infrastructure.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Development of non- Positive – Increasing the The impact will occur at None identified. polluting, renewable contribution of the RE local, regional, and energy infrastructure. sector to the local national levels. economy would contribute to the diversification of the local economy and provide greater economic stability. Description of expected significance of impact The generation of renewable energy will contribute to South Africa’s electricity market, and may contribute to the diversification of the local economy. The growth in the RE sector as a whole could introduce new skills and development into the area. The impact is likely to be positive, local to national in extent, long-term, and of medium significance. Gaps in knowledge and recommendations for further study » Information on the proposed project’s contribution towards diversifying the local economy.

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Impact Contribution to local economic development and social upliftment.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Benefits to the local area Positive – The creation of The impact will occur at None identified. from Socio-Economic employment opportunities, local, regional, and Development (SED) / skills development, and the national levels. Enterprise Development proposed projects (ED) programmes and contributions to local community trust from economic development REIPPP Programme social will assist to an extent in responsibilities. both alleviating unemployment levels within the area, and improving the quality of life. Description of expected significance of impact Under the REIPPP Programme renewable energy projects are required to contribute to local economic development in the area. Awarded projects are required to spend a certain amount of their generated revenue (as defined in the agreement with DoE) on Socio-Economic Development (SED) and Enterprise Development (ED) and share ownership in the project company with local communities. The impact is likely to be positive, local to national in extent, long- term, and of high significance. Gaps in knowledge and recommendations for further study » Information on the project’s proposed contributions to SED and ED.

Impact Visual and sense of place impacts.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas Sense of place impacts Negative – The project The impact will occur at a None identified. from a social perspective could alter the areas sense local level. associated with the of place which could operation phase of the negatively impact on solar energy facility and sensitive receptors. associated infrastructure. Description of expected significance of impact The presence of the solar energy facility could impact the “sense of place” for the local community. The impact is likely to be negative, local in extent, long-term, and of low significance. Gaps in knowledge and recommendations for further study » Potential sensitive visual receptors need to be identified. » Visual Impact Assessment to inform impact on sense of place.

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Impact Impacts associated with the loss of agricultural land.

Desktop Sensitivity Analysis of the Site: No sensitivity identified. Issue Nature of Impact Extent of Impact No-Go Areas The development footprint Negative – Impacts The impact will occur at a None identified. on which the solar energy associated with loss of local level. facility will be developed agricultural land due to will be removed from occupation of land by the agricultural production. solar energy facility. Description of expected significance of impact The development of the proposed project on an agricultural property would result in the area of land required to support the development footprint being removed from potential agricultural production. This could have negative implications in terms of food production and security, and could also threaten jobs of workers employed in the agricultural activities. The Soils, Land Use, Land Capability and Agricultural Potential Impact Assessment undertaken as part of the Scoping Phase determined that the project site has two degrees of sensitivity to the proposed project. Areas where irrigation infrastructure is present are considered moderately sensitive to the proposed development. As there are very limited areas available with deep soil suitable for crop production, these areas are considered “unique agricultural land”. Areas around the centre pivots consist of shallow, rocky soils with low land capability. These areas have low sensitivity to the proposed project and are considered most suitable for the project layout. The impact is likely to be negative, local in extent, long-term, and of low significance. Gaps in knowledge and recommendations for further study » The current land use and agricultural potential of the area likely to be removed from agricultural production needs to be determined.

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6. CONCLUSION AND RECOMMENDATIONS

This SIA Scoping Report focused on the collection of available secondary information in order to provide a social baseline against which potential social impacts which may be associated with the development of Lichtenburg 2 could be identified. A summary of the potential positive and negative impacts identified for the detailed design and construction, and operation phase are presented in Table 6.1 and Table 6.2.

Table 6.1: Summary of potential social impacts identified for the detailed design and construction phase. Impact Status Significance Creation of direct and indirect employment Positive Medium and skills development opportunities. Economic multiplier effects Positive Medium In-migration of people (non-local workforce Negative Medium and jobseekers). Safety and security impacts Negative Medium Impacts on daily living and movement Negative Low patterns Nuisance impact (noise and dust) Negative Low Visual and sense of place impacts Negative Medium

Table 6.2: Summary of potential social impacts identified for the operation phase. Impact Status Significance Direct and indirect employment and skills Positive Medium development opportunities Development of clean, renewable energy Positive Medium infrastructure Contribution to Local Economic Positive High Development and Social Upliftment Visual and sense of place impacts Negative Low Impacts associated with the loss of Negative Low agricultural land.

The potential social impacts identified for the project and listed in Table 6.1 and Table 6.2 have been identified based on an assessment of available information and the current understanding of the proposed project; and are not exhaustive. The possibility therefore exists that additional impacts may be identified as part of the public review period, or during the collection of primary data as part of the EIA level SIA. All potential social impacts identified as part of the SIA process will be assessed in detail during the EIA Phase.

6.1. Conclusion

A number of potential positive and negative social impacts have been identified for the project, which require further investigation as part of the EIA phase. Based on the findings of this SIA Scoping Report, no red flags or fatal flaws have been identified from a social perspective which could preclude the development of Lichtenburg 2 on Portion 06 of the Farm Zamenkomst No. 04 in the Ditsobotla Local Municipality, of the Ngaka Modiri Molema District, in the North West Province, pending the successful

SIA Scoping Report Page 49 Lichtenburg 2 North West Province August 2018 completion of the EIA and the receipt of Environmental Authorisation (EA) from the Department of Environmental Affairs (DEA).

6.1.1. Recommendations for Further Study (Plan of Study for EIA)

It is recommended that a full EIA level Social Impact Assessment (SIA) be conducted as part of the EIA phase. The following activities should be undertaken as part of this process:

» Review comments pertaining to social impacts received from members of the public, key stakeholders, and any organ of state during the public review of the Scoping Report. Where applicable, comments received from the Department of Environmental Affairs (DEA) on the Final Scoping Report (FSR), which may pertain to social impacts or have relevance to the SIA, will also be reviewed. » Collect primary data during a site visit. Interview directly affected and adjacent landowners, and key stakeholders to obtain primary information related to the project site, social environment, and to gain their inputs on the proposed project and its perceived social impact (positive and /or negative). » Update the baseline information with information received during the site visit, as well as any additional information received from the client, or updates to the project description. » Assess impacts identified for the project in terms of their nature, extent, duration, magnitude, probability, status, and significance; as well as the degree to which the impact can be reversed, may cause irreplaceable loss of resources, and can be mitigated. » Identify mitigation measures with which to reduce negative impacts, and enhance positive impacts for inclusion in the Environmental Management Programme (EMPr). As far as possible the mitigation hierarchy of “avoid, minimise, and reduce” will be followed in the mitigation of potential negative impacts. » Identify any conditions for inclusion in the Environmental Authorisation (EA). » Identify any monitoring requirements for inclusion in the EMPr or EA. » Provide a reasoned opinion regarding the acceptability of the project, and whether the proposed project should be authorised. » Prepare a SIA Report for inclusion in the EIA Report to be prepared for the project. » Subject the SIA Report prepared for the project for inclusion in the EIA Report to external peer review.

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7. REFERENCES

Department of Energy (DoE). (2008). National Energy Act (No. 34 of 2008). Republic of South Africa.

Department of Energy (DoE). (2011). National Integrated Resource Plan for Electricity 2010-2030. Republic of South Africa.

Department of Energy (DoE). (2003). White Paper on Renewable Energy. Republic of South Africa.

Department of Environmental Affairs (DEA). (1998). National Environmental Management Act 107 of 1998 (No. 107 of 1998). Republic of South Africa.

Department of Environmental Affairs (DEA). (2010). National Climate Change Response Green Paper. Republic of South Africa.

Department of Justice (DoJ). (1996). The Constitution of the Republic of South Africa (Act 108 of 1996). ISBN 978-0-621-39063-6. Republic of South Africa.

Department of Minerals and Energy (DME). (1998). White Paper on Energy Policy of the Republic of South Africa. Republic of South Africa.

Ditsobotla Local Municipality. (2017). Ditsobotla Local Municipality Integrated Development Plan (IDP), 2017 – 2018.

International Finance Corporation (IFC). (2007). Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business in Emerging Markets. International Finance Corporation: Washington.

Interorganizational Committee on Principles and Guidelines for Social Impact Assessment. US Principles and Guidelines – Principals and guidelines for social impact assessment in the USA. Impact Assessment and Project Appraisal, 21(3): 231-250.

National Development Agency (NDA). (2014). Beyond 10 years of unlocking potential. Available from: http://www.nda.org.za/?option=3&id=1&com_id=198 &parent_id= 186&com_task=1

National Planning Commission. (2012). National Development Plan 2030. ISBN: 978-0-621-41180-5. Republic of South Africa.

Ngaka Modiri Molema District Municipality. (2017). Ngaka Modiri Molema District Municipality Integrated Development Plan (IDP) 2017 – 2022.

North West Provincial Government. (2013). North West Provincial Development Plan (PDP) 2030.

North West Provincial Government. (2004). North West Provincial Growth and Development Strategy (PGDS) (2004 – 2014).

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North West Provincial Government. (2017). North West Provincial Spatial Development Framework.

North West Provincial Government. (2012). Renewable Energy Strategy for the North West Province.

Statistics South Africa. (2011). Census 2011 Community Profiles Database. Pretoria.

United Nations Environment Programme (UNEP). (2002). EIA Training Resource Manual. 2nd Ed. UNEP.

United Nations Economic and Social Commission for Asia and the Pacific (UN). (2001). Guidelines for Stakeholders: Participation in Strategic Environmental Management. New York, NY: United Nations.

Vanclay, F. (2003). Conceptual and methodological advances in Social Impact Assessment. In Vanclay, F. & Becker, H.A. 2003. The International Handbook for Social Impact Assessment. Cheltenham: Edward Elgar Publishing Limited.

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