Eskom Generation Fleet Renewal Project: Socio-Economic Study
Report Prepared for Eskom
Report Number 506503/F1
Report Prepared by
February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page i
Eskom Generation Fleet Renewal Project: Socio-Economic Study
Eskom
SRK Consulting (South Africa) (Pty) Ltd 265 Oxford Rd Illovo 2196 Johannesburg South Africa
e-mail: [email protected] website: www.srk.co.za
Tel: +27 (0) 11 441 1111 Fax: +27 (0) 11 880 8086
SRK Project Number 506503
February 2017
Compiled by: Peer Reviewed by:
Victoria Braham Anita Bron Social Scientist Principal Social Scientist
Adel Malebana Vassie Maharaj Senior Social Scientist Partner
Email: [email protected] Authors (in alphabetical order): Victoria Braham, Anita Bron, Andrew Hart, Adel Malebana, SSueue Reuther
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page ii Executive Summary Eskom owns and operates fourteen coal-fired power stations in South Africa, and is responsible for generation, transmission and distribution of electricity to South Africa. The majority of Eskom power stations are nearing their end of life, and Eskom has commenced with studies to assess fleet renewal options for dealing with these power stations.
The power stations under discussion in this study are Hendrina, Arnot and Komati in the Steve Tshwete Local Municipality, as well as Camden power station in the Msukaligwa Local Municipality. These power stations are situated in the Mpumalanga Province. All these power stations use coal, sourced from local mines, for the generation of electricity. The result is that electricity generation
has been widely associated with the emissions of carbon dioxide (CO 2), sulphur dioxide (SO 2) and
nitrogen dioxide (NO 2), which contribute to health related issues at local level, and climate change impacts on a broader scale.
Eskom has identified four fleet renewal options that could be implemented at these four power stations. The options are classified as follows:
x Option 1A/1B, referred to as Option 1 in this report (506503/F1): Lifex and Modernisation (Refurbishment);
x Option 2, which according to technical studies, was not considered technically feasible and was therefore not assessed as part of this study: Repower with Biomass or Gas;
x Option 3A/3B, referred to as Option 3 in this report (506503/F1): Rebuild as Pulverized Fuel or Circulating Fluidised Bed Combustion (Demolish and rebuild); and,
x Option 4: Do not renew (Decommission). Overall, Eskom seeks to ensure that the chosen fleet renewal option cost effectively contributes to meeting the electricity demand in South Africa, thereby generating further revenue from electricity sales. In order to assist Eskom in selecting the option that will best meet their objective, the key objectives that the socio-economic study aim to fulfil were:
x Undertake a baseline study/overview of the project’s zones of influence to understand the socio- economic landscape locally, regionally and nationally;
x Assess the socio-economic implications of the proposed project options and associated infrastructure per power station;
x Identify stakeholder issues, opportunities, potential socio-economic impacts and risks, and areas that would require mitigation for the options;
x Assess the resilience/vulnerability of the communities in the context of the options and how they would respond to these options;
x Place the socio-economic considerations of the local communities into the broader context of national priorities and sustainable development goals (social, economic and environment);
x Rate and rank the three options in light of the above information; and,
x Assess the socio-economic risks of the project. To meet the socio-economic study objectives, five components to the socio-economic study were identified:
1. Macro-economic and socio-economic baseline analysis;
2. Identification of applicable national priorities and sustainable development goals;
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page iii 3. Stakeholder analysis;
4. Assessment of impacts of the options by way of an options analysis; and,
5. Risk assessment.
The study components were informed by the application of the following methods:
x Desktop review: the review of current and available secondary data sources.
x Interviews with internal and external stakeholders: key informants included internal corporate stakeholders, internal power station stakeholders, and selected external stakeholders.
Regarding component 1 (Macro-economic and socio-economic baseline analysis), key social and economic characteristics at play in the municipalities within which the power stations are situated included:
There are high levels of poverty and high unemployment rates, which are associated with low incomes for those employed;
x The local and regional economy is mostly based on manufacturing, energy, mining and trade;
x Across the regional zone of influence, the majority of the population is of working age and below the ages of 35, with a high dependency rate associated with a significant youthful population below 18 years old;
x The region experiences population increases due to in-migration from within the province and the rest of the country. Linked to this is the growth of informal settlements and the demand for services;
x Levels of education in the local zone of influence are high, however the number of those having attained tertiary education is low and can be attributed to (amongst other reasons) lack of tertiary education campuses in the municipalities as well as financial constraints presented by attending tertiary institutes;
x Access to health care facilities is low, with Camden power station being the only one with a hospital within a 20km radius. The rest of the hospitals are between 40km and 53km radius of the power stations; and,
x Apart from Camden power station, all the power stations, (through the local municipality), provide potable water, sanitation and electricity to their zones of influence.
In terms of component 2 (Identification of applicable national priorities and sustainable development goals), as a state-owned enterprise Eskom needs to align its activities with those of government in order to contribute towards government reaching its development targets. With the adoption of the National Development Priorities and the associated Sustainable Development Goals, Eskom is required to limit the emissions from their operations in an attempt to respond to national priorities.
As such, options were assessed against national priorities to determine the extent to which they were synergistic or conflicting with the identified priorities and goals. The National Development Plan priorities identified as most relevant to this study were therefore: social, economic, and environmental, linking to the following Sustainable Development Goals: Goal 1 “End poverty”, Goal 4 “Inclusive and equitable quality education”, Goal 3 “Ensure healthy lives and promote well-being for all”, and Goal 9 “Build resilient infrastructure”.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page iv Regarding component 3 (Stakeholder analysis), key stakeholders identified included:
x Government, (national, provincial, district and local);
x Host communities;
x Competent and commenting authorities;
x Neighbouring mines;
x Non-Governmental Organisations,
x Business forums;
x Transportation forums;
x Internal stakeholders; and,
x Neighbouring farmers. The high-level stakeholder analysis indicated similar stakeholder relationships and patterns amongst the four power stations. Stakeholder forums were identified across all four power stations, with forums representative of adjacent farmers, municipalities and receiving communities. All the power stations indicated having continuous engagement with their stakeholders through these forums. However, in terms of engagement with non-government organisations, Camden power station was not strong when compared to other power stations.
In terms of component 4 (Assessment of impacts of the options by way of an options analysis) an option analysis was used to identify and assess the potential changes and impacts of each of the three options for each power station, in order to identify a preferred option. Seven impact categories were identified, These were further broken down into nineteen impact sub-categories. A basic decision matrix was developed, consisting of a set of weighted criteria to rate the options against. The seven impact categories were:
x Employment and procurement;
x Environmental;
x Corporate social investment and training;
x Service delivery;
x Coal sourcing;
x Land take; and,
x Regional and national economic contribution impacts. The findings of this option analysis for all the four power stations were:
x Options 1 and 3 were the preferred options in that their implementation would lead to continued maintenance of current employment, as well as creating new employment opportunities into the future. Both options would allow for the continuation of the Corporate Social Investment spend through the Eskom Foundation, thus providing the beneficiaries with skills to increase their employability, as well as access to other livelihoods opportunities such as small businesses.
x However, from an environmental point of view, these two options differed in that Option 1 would continue to use more water due to its wet cooling system, while Option 3 would be using a dry
cooling system. Both options however reduced the emissions of CO 2, SO 2 and NO 2 due to the installation of Flue Gas Desulphurisation.
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x From a land take point of view, Option 1 was the most preferred option in that it would not require additional land, whereas Option 3 would require additional land for ash storage and limestone and gypsum quarrying.
x In terms of the relationship between the power station and the communities, Options 1 and 3 were less likely to result in community dissatisfactions that would normally occur during job losses associated with decommissioning. However, regarding Option 4, Camden and Komati power stations were previously mothballed and later returned to service. As a result, the power stations and communities had dealt with the impacts of decommissioning previously, and would more likely be able to handle these impacts should Option 4 be implemented.
Having recommended Options 1 and 3 as the preferred options for each of the power station, a rapid vulnerability assessment of the local communities was developed in order to assess the community response to these options and how adaptive they would be to these changes. Across all four power stations, it was found that the communities’ adaptive capacity was low to moderate, based on their ability to cope relevant to current and future stresses, future impacts and access to social capital and resources.
Component 5 comprised of a risk assessment to understand the threats and/or opportunities of implementing any of the three options. The following key findings were made:
x The threats that were identified and assessed per option were related to potential economic and physical displacement, community and employees grievances, communication with stakeholders, and continued dependency of the communities on Eskom for service delivery,
health impacts and continued CO 2 emissions.
x The opportunities for Options 1 and 3 were rated in accordance with maintenance of current employment, extension of the life of the operation, development of small businesses as a result of continued Corporate Social Investment and procurement. For Option 4, reduced health and safety liability, sale of components and handing over of services to local municipalities were identified as opportunities.
x From an economic and social point of view, the highest threat remained the loss of direct and indirect employment due to the implementation of Option 4 (Decommissioning). However, this was balanced by the opportunity for improved health and safety impacts due to decreased air emissions, dust, water contamination and other environmental and socio-economic impacts.
x For Options 1 and 3, physical and economic displacement, as well as continued dependence on Eskom to provide municipal infrastructure to local communities were identified as significant risks.
SRK recommended that other studies, i.e. financial, engineering and technical studies, inform the final decision regarding a preferred option. This was due to the absence of a resolute socio- economic difference between Option 1 and Option 3.
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Table of Contents Executive Summary ...... ii Disclaimer ...... x List of Abbreviations ...... xi 1 Introduction ...... 1 Background ...... 1 Overview of Renewal Options ...... 2 Socio-Economic Study Objectives ...... 4 Scope of the Report ...... 5 Methodology...... 6 Limitations ...... 6 2 Macro-Economic Baseline Analysis ...... 7 Energy Generation, Enabling Economic Activity and Development ...... 7 2.1.1 Importance and Role of Energy ...... 7 2.1.2 Contribution by Eskom to the South African Economy ...... 8 2.1.3 Costs to the South African Economy Associated with Coal-based Energy ...... 9 Contribution to State Revenue through Taxation...... 9 Employment and Skills Development ...... 10 Enabling and Driving Social Development and Transformation ...... 11 2.4.1 Role of Energy in Human Development ...... 11 2.4.2 Contribution by Eskom to South African Electrification ...... 12 2.4.3 Contribution by Eskom to Transformation and Economic Empowerment ...... 12 2.4.4 Community Development and Funding of CSI Programmes ...... 13 2.4.5 Regional/Local Perspective ...... 13 Economic Implications of Decommissioning Power Stations ...... 14 2.5.1 Continued Operation ...... 14 2.5.2 Decommissioning ...... 14 Opportunities for Enhancement ...... 16 3 Socio-Economic Baseline Analysis ...... 17 Provincial Context Summary ...... 17 3.1.1 Demographic Overview ...... 18 3.1.2 Provincial Economy ...... 18 Regional Context ...... 20 3.2.1 Introduction ...... 20 3.2.2 Summary of Baseline ...... 20 Local ZoI Context ...... 22 3.3.1 Hendrina ZoI ...... 23 3.3.2 Arnot ZoI ...... 24 3.3.3 Komati ZoI ...... 26 3.3.4 Camden ZoI ...... 27
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page vii Relevant Strategies and Plans ...... 31 3.4.1 Eskom’s SED and CSI Plans ...... 31 3.4.2 Municipalities’ Local Economic Development ...... 32 3.4.3 Provincial Growth and Development Strategy ...... 37 3.4.4 NDP Priorities and SDGs ...... 37 4 Stakeholder Analysis ...... 39 Stakeholder Profiling ...... 39 Stakeholder Issues ...... 43 5 Impact Assessment and Options Analysis ...... 45 Hendrina Power Station ...... 47 Arnot Power Station ...... 51 Komati Power Station ...... 54 Camden Power Station ...... 57 Rapid Vulnerability/Self-sustenance Assessment of Local ZoI ...... 60 5.5.1 Hendrina Power Station ...... 60 5.5.2 Arnot Power Station ...... 61 5.5.3 Komati Power Station ...... 61 5.5.4 Camden Power Station ...... 62 6 Risk Assessment ...... 63 Risk Assessment Matrix Development ...... 63 Risk Assessment ...... 63 7 Conclusions and Recommendations ...... 66 Conclusions and Recommendations per Focus Area of Study ...... 66 Response to Socio-Economic Consequences: Mitigation and Enhancement Measures ...... 71 Improving the Sustainability of the SED/CSI Initiatives ...... 75 8 Sources Consulted ...... 76 Appendices ...... 79 Appendix A: Interview Schedules ...... 80 Appendix B: Discussion Guides ...... 85 Appendix C: Regional Context ...... 86 Appendix D: Local Context ...... 103 Appendix E: Options Analysis ...... 133
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page viii List of Tables Table 2-1: Employees in State Owned Enterprises in 2010 ...... 10 Table 2-2: Key economic sectors of the Steve Tshwete Local Municipality ...... 13 Table 3-1: Population structure of the Mpumalanga Province ...... 18 Table 3-2: Socio-economic summary of the four local ZoIs ...... 29 Table 3-3: Relevant NDP priorities and SDGs ...... 38 Table 4-1: Stakeholder engagement protocol ...... 40 Table 5-1: Rating definitions...... 45 Table 5-2: Weighting multiplied by rating scores ...... 45 Table 5-3: Final score definition ...... 46 Table 5-4: Hendrina power station options analysis ...... 48 Table 5-5: Arnot power station options analysis ...... 51 Table 5-6: Komati power station options analysis ...... 54 Table 5-7: Camden power station options analysis ...... 57 Table 6-1: Threat risk rating ...... 63 Table 6-2: Opportunity risk rating ...... 63 Table 6-3: Risk analysis ...... 64 Table 7-1: Conclusions and recommendations per study component ...... 67 Table 7-2: Mitigation and enhancement measures ...... 72
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page ix List of Figures Figure 1-1: Location of Arnot, Hendrina, Komati and Camden power stations ...... 1 Figure 1-2: Power station renewal options ...... 3 Figure 1-3: Study components ...... 6 Figure 2-1: Electricity consumption by different sectors in South Africa ...... 8 Figure 2-2: Human Development Index versus electrification rates...... 11 Figure 3-1: Social issues ...... 17 Figure 3-2: Province, municipalities and wards relevant to the study ...... 18 Figure 3-3: Allocation of district and local municipalities in the regional ZoI ...... 20 Figure 3-4: ZoI wards demarcation ...... 22 Figure 3-5: Hendrina power station ...... 23 Figure 3-6: Hendrina ZoI locality ...... 24 Figure 3-7: Arnot power station ...... 24 Figure 3-8: Arnot ZoI locality ...... 25 Figure 3-9: Komati power station ...... 26 Figure 3-10: Komati ZoI locality ...... 27 Figure 3-11: Camden power station ...... 27 Figure 3-12: Camden ZoI locality ...... 28 Figure 4-1: Stakeholder analysis matrix ...... 39 Figure 4-2: Stakeholder mapping ...... 42 Figure 4-3: Stakeholder issues per power station ...... 44 Figure 5-1: Hendrina power station option analysis ...... 50 Figure 5-2: Arnot power station options analysis ...... 53 Figure 5-3: Komati power station options analysis ...... 56 Figure 5-4: Camden power station options analysis ...... 59
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page x Disclaimer The opinions expressed in this Report have been based on the information supplied to SRK Consulting (South Africa) (Pty) Ltd (SRK) by Eskom. The opinions in this Report are provided in response to a specific request from Eskom to do so. SRK has exercised all due care in reviewing the supplied information. Whilst SRK has compared key supplied data with expected values, the accuracy of the results and conclusions from the review are entirely reliant on the accuracy and completeness of the supplied data. SRK does not accept responsibility for any errors or omissions in the supplied information and does not accept any consequential liability arising from commercial decisions or actions resulting from them. Opinions presented in this report apply to the site conditions and features as they existed at the time of SRK’s investigations, and those reasonably foreseeable. These opinions do not necessarily apply to conditions and features that may arise after the date of this Report, about which SRK had no prior knowledge nor had the opportunity to evaluate.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page xi List of Abbreviations
AA Automobile Association B-BBEE Broad-Based Black Economic Empowerment CFBC Circulating Fluidised Bed Combustion CO2 Carbon dioxide CSI Corporate Social Investment DM/s District Municipality/ies FET Further Education and Training GDP Gross Domestic Product HIV/Aids Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome HDI Human Development Index IDP Integrated Development Plan LED Local Economic Development LM/s Local Municipality/ies MDEDET Mpumalanga Department of Economic Development, Environment and Tourism NDP National Development Plan NGO Non-Government Organisation NOx Nitrogen dioxide PF Pulverized Fuel PGDS Provincial Growth and Development Strategy SDF Spatial Development Frameworks SDGs Sustainable Development Goals SED Socio-economic Development SEP Stakeholder Engagement Plan SMME Small Medium Micro-sized Enterprises SOx Sulphur dioxide SRK SRK Consulting (South Africa) (Pty) Ltd StatsSA Statistics South Africa TB Tuberculosis VIP Ventilation Improved Pit ZoI Zone of Influence
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page 1 1 Introduction
Background Eskom owns and operates thirteen power stations in South Africa, and is responsible for generation, transmission and distribution of electricity to South Africa. Of the thirteen power stations, eleven are located in Mpumalanga Province. Most of these power stations are nearing their end of life, and Eskom has commenced with the Generation Fleet Renewal Project to consider whether the continuation of these power stations could play a role in meeting the electricity demand in South Africa cost effectively. Eskom has identified four renewal options for consideration: refurbishment, repower with biomass or gas, demolish and rebuild, and decommission).
The selection and identification of a preferred option will have implications for Eskom, the communities surrounding the power stations, and the country as a whole. Eskom is therefore taking the opportunity to proactively assess and understand the potential technical, financial and socio- economic implications of the renewal options. The socio-economic considerations are to compliment the technical and financial studies, since the socio-economic factors may have a significant influence on the overall success of the chosen option as well as the long-term wellbeing and sustainability of the affected communities.
SRK Consulting (SA) (Pty) Ltd (SRK) was appointed by Eskom to complete an early pre-feasibility stage socio-economic assessment of the renewal options for four power stations: Hendrina, Arnot, Komati and Camden. Camden Power station is located in the Msukaligwa Local Municipality in the Mpumalanga Province. Arnot, Hendrina and Komati power stations are located in the Steve Tshwete Local Municipality in the Mpumalanga Province. Figure 1-1 below provides an overview of the locations of these four power stations.
Figure 1-1: Location of Arnot, Hendrina, Komati and Camden power stations
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 Socio-Economic Study Page 2 Overview of Renewal Options As mentioned, Eskom identified four fleet renewal options:
x Option 1A/1B: Lifex and Modernisation (Refurbishment);
x Option 2: Repower with Biomass or Gas;
x Option 3A/3B: Rebuild as PF or CFBC (Demolish and rebuild); and,
x Option 4: Do not renew (Decommission) 1. Technical studies concluded that Option 2 was not technically viable, and this option is therefore not assessed as part of this study. Figure 1-2 provides an overview of the three options under consideration. Option 1A/1B is referred to as Option 1 in this report (506503/F1), and Option 3A/3B is referred to as Option 3.
1 While generally known as decommissioning, this option has other variations such as: - To continue operating the power station five years at a time until there is certainty on CO² budgets and demand profiles - Sell the power station - Mothball the plant - Utilise power plant components as spares for Eskom plants
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Figure 1-2: Power station renewal options
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Socio-Economic Study Objectives The business objective of the project is to ensure that fleet renewal cost effectively contributes to meeting the electricity demand in South Africa, generating further revenue from electricity sales. In light of the business objective, this pre-feasibility socio-economic study has to meet the following key objectives:
x Undertake a baseline study to understand the socio-economic landscape of the project’s Zone of Influence (ZoI) (local and regional 2), and understand the status quo in relation to the national baseline;
x Assess the socio-economic implications of the proposed project options and associated infrastructure;
x Identify stakeholder issues, opportunities, potential socio-economic impacts and risks, and areas that would require mitigation for the options;
x Assess the resilience/vulnerability of the communities in the context of the options; and,
x Place the socio-economic considerations of the local communities into the broader context of national priorities and sustainable development goals (social, economic and environment).
To meet the above key objectives, the socio-economic study needs to answer the following secondary objectives:
Socio-Economic Baseline Assessment
x Determine the socio-economic ZoI at each of the four sites;
x Determine the current status of the prevailing socio-economic baseline at each of the four sites (local and regional), historical and current social trends – population demographics, education levels, income, migration, employment, health and social well-being, infrastructure and social services;
x Indicate labour and skills availability in the project area;
x Identify predominant cultural and heritage aspects for consideration;
x Establish links and integration of settlements with other regional communities;
x Assess level of vulnerability/self-sustenance of communities in terms of how adaptive they will be should any of the options be implemented;
x Examine the contribution of the ZoI economy to the regional and provincial economy;
x Review local development plans to establish local economic development (LED) in the area including the nature and level of business activity, and indicating the level of dependence on Eskom expenditure;
x Determine whether or what the local institutional, legal and political aspects are; and,
x Rate and rank the various options in light of the above information.
2 Regional refers to the relevant district and local municipalities, and local refers to communities adjacent to the power stations on ward level
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Stakeholder Engagement Present information on stakeholder engagement including:
x Identification of relevant stakeholders (local and surrounding communities)3 with an indication of their roles and interests; and,
x Indicate current stakeholder engagement with Eskom with details regarding any relevant commitments and/or agreements between Eskom and stakeholders/authorities.
Overarching National Priorities and Sustainable Development Goals
x Identify and agree on a list of relevant national priorities and sustainable development goals as per the South African National Development Plan (NDP) 2030 and Sustainable Development Goals (SDGs); and,
x Determine the extent to which the three options (refurbish, demolish and rebuild, decommission) is synergistic or conflicting with the identified priorities and goals.
Impact Assessment and Options Analysis
x Develop a methodology to rank and weigh the various project alternatives. This will consider the added value to the national development goals and priorities as well as other socio- economic considerations identified in the social baseline;
x Identify up and down-stream activities that may be affected by the proposed alternatives including water use/demand; and,
x Conduct a high-level analysis to determine the potential socio-economic issues for the three alternatives (locally and regionally).
Risk Assessment
x In a risk matrix, for each option, identify high-level socio-economic risks to the project, and ways in which to address these.
Scope of the Report To meet the socio-economic objectives, the report (506503/F1) consists of the main components outlined in Figure 1-3. The study commenced with a project initiation meeting, where after primary and secondary data sources were consulted to: analyse the macro-economic and socio-economic baseline, identify national priorities and SDGs relevant to the study, and to identify analyse stakeholders. The results informed the impact assessment and options analysis, and the risk assessment. The report (506503F/1) is structured in accordance with the order of the study components in Figure 1-3.
3 Due to the sensitivity of the project and the fact that it is at early pre-feasibility stage, stakeholder engagement was limited to discussions with relevant stakeholders at the district and local municipalities and internal Eskom and power station stakeholders
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Figure 1-3: Study components
Methodology Primary and secondary data sources were consulted to inform the macro-economic and socio- economic baseline, to identify national priorities and SDGs relevant to the study, and to analyse stakeholders. Section 8 lists the secondary data sources consulted.
In terms of primary data sources consulted, key informants were divided into the following three categories: internal corporate stakeholders, internal power station stakeholders, and selected external stakeholders. External stakeholders included relevant representatives from Nkangala and Gert Sibande District Municipalities, and Steve Tshwete and Msukaligwa Local Municipalities. Appendix A contains the details of meetings that were held.
Semi-structured interviews and discussions were conducted with these stakeholders, and a discussion guide was developed to ensure that all the relevant aspects were covered. Appendix B contains the discussion guides that were used.
Limitations The limitations that apply to the socio-economic study are:
x Different informants from Eskom provided contradicting information regarding the different options;
x Due to the confidentiality of the project, stakeholder engagement was limited to the two district and two local municipalities;
x Due to differences in timeframes between the socio-economic study and the technical study, it was not possible to have an integration workshop. This report (506503/F1) uses the technical information received from the technical team before 13 January 2017 to enhance and inform the socio-economic study; and,
x Technical studies were completed on 30 January 2017, and it is possible that information changed since 13 January 2017.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 7 2 Macro-Economic Baseline Analysis Eskom, as the de facto sole power supplier to South Africa, plays a very important role in the South African economy. Key roles of Eskom include:
x Energy generation, thereby enabling economic activity and development in South Africa;
x Contribution to State revenue through taxation;
x Employment and skills development through direct and indirect employment and enabling of wider socio-economic activity; and,
x Enabling and driving social development and transformation in South Africa through provision of power to previously unconnected communities, preferential procurement / employment and funding of Corporate Social Investment (CSI) programmes.
These are briefly discussed below.
Energy Generation, Enabling Economic Activity and Development
2.1.1 Importance and Role of Energy Energy, and electricity in particular, is a critical ingredient in modern economies, as it is an input to nearly every good and service produced in an economy. A lack of access to a reliable source of power is cited as a main constraint to doing business, before access to finance and corruption, by nearly 7 out of 10 businesses in Africa (One, undated) . A review of nearly 100 studies on the relationship between energy provision and economic growth identified a clear positive correlation between energy use and economic growth. Although the causal relationship is not always clear, energy use is either the cause or the facilitator of economic growth. Insufficient, unreliable or costly energy is a binding constraint for all sizes of business, especially those operating in the manufacturing sector (CDC Group, 2016).
However, PRODUSE (2013) note that electricity is a ‘quintessential’ intermediate good and does not represent an end in itself: it is an input factor to a large set of activities (“uses”) that can improve welfare, increase productivity or generate income. These, however, also depend on complex interactions and synergies between other multiple development factors, including other infrastructure investments and enabling political, socio-economic and cultural conditions, and it is increasingly recognised that certain “complementary” inputs or services – such as business development services or access to finance – can increase the chances that access to electricity leads to significant income generation and poverty alleviation.
The South African economy is relatively well developed and highly reliant on electricity. The economy is closely linked to energy consumption, meaning that energy use tracks Gross Domestic Product (GDP). As energy generation was cheap due to an abundance of easily accessible and cheap coal, South Africa developed an energy intensive industry sector (Winkler 2009 in DEA, 2016). However, energy intensity decreased from 6.99 Mega joules per Rand of GDP in 2002 to 4.18 Mega joules per Rand of GDP in 2009 (DEA, 2016). In South Africa, mining and energy go hand-in-hand, as mining is an energy intense activity and offers the country access to energy embedded in the locally abundant coal reserves (DEA, 2016).
Energy use differs between economic sectors in South Africa (DEA, 2016) (Figure 2-1):
x The industrial sector is the largest user, consuming 51.0% in 2009. Manufacturing, in particular, is the most energy intensive sub-sector and includes several energy heavy activities such as metal smelters, petrochemical facilities, as well as paper, sugar and pulp mills;
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x The transport sector is a significant energy user, accounting for 22.0% of energy use;
x The residential or domestic sector accounted for 15.0% of national electricity consumption;
x The commercial sector (including public services) uses relatively little energy at 10.0% in 2009, but was growing at a fast rate. This sector consists of government, office buildings, financial institutions, shops, recreation and education; and,
x The agricultural sector consumed less than 2.0% in 2009; it uses liquid fuels alongside electricity and gas.
. Agriculture Commercial 2% 10%
Residential 15% Industrial 51%
Transport 22%
Figure 2-1: Electricity consumption by different sectors in South Africa Source: DEA, 2016. The importance of electricity to the South African economy is exemplified by the estimated economic impact of load shedding in 2007/08 and 2015. Dawie Roodt estimated that the electricity crunch from 2007 to 2015 cost the economy more than R300 billion in lost output (Fin24, 2015). Chris Yelland estimated the cost of Stage 1 4 load shedding as R20 billion per month, Stage 2 5 as R40 billion per month and Stage 3 6 as R80 billion per month. Based on an approximate South African GDP of R4 trillion in 2014, load shedding could have reduced GDP by approximately 1-2% per month of load shedding (Tralac, 2015).
Considered from the aspect of pricing, the 2010 – 2013 price increases in South Africa were estimated to result in negative impact on GDP of 1.1% and a loss of 16 000 jobs in the overall economy, based on 2009 employment figures (Eskom, 2011).
2.1.2 Contribution by Eskom to the South African Economy Eskom generates approximately 90.0% of the electricity used in South Africa (Eskom, 2016), and, by indirectly enabling economic activity requiring electricity, added some R40 billion in direct value
4 Stage 1 allows for up to 1000 MW of the national load to be shed 5 Stage 2 allows for up to 2000 MW of the national load to be shed 6 Stage 3 allows for up to 3000 MW of the national load to be shed
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Eskom also directly sources goods and services from different industries, ranging from power plant maintenance to business services. Procurement amounted to more than R25 billion in 2011 for normal operations. Eskom’s capital expansion (build) programme adds further stimulus to the South African economy. By 2014/15, Eskom had invested more than R200 billion (excluding capitalised borrowing cost) in the build programme. Another R293 billion are expected to be invested in the build programme by 2021. The direct, indirect and induced economic impact of Eskom’s build programme between 2008 and 2020 was estimated at R883 billion by KPMG (undated).
A study by Quantec Research found that Eskom’s direct impact on the South African GDP as a result of its operational and capital expenditure is 3.0%, taking into account only initial impacts and first-round effects in the economy. When considering economy-wide (indirect and induced) effects, Eskom’s impact is estimated to be more than 7.0% on GDP (Eskom, 2011). A KPMG study found that Eskom’s GDP impact, due to Eskom’s generated revenue, represented 5.0% of South Africa’s GDP in 2014/15 (KPMG, undated).
2.1.3 Costs to the South African Economy Associated with Coal-based Energy The historic low cost of commercial energy, achieved by not internalising externalities associated with coal, led to inefficient energy use in South Africa, accelerated national reserve depletion and pollution and made South Africa one of the highest carbon (greenhouse gas) emitters in the world (Winkler et al., 2006 in DEA, 2016). In comparison with the low cost at which coal-based energy could be supplied at the time, renewable energy technologies appeared particularly expensive, further entrenching structural reliance on centralized coal-based energy. Affordable renewable power remained largely out of reach for the poor and rural areas and individualised off-grid, mini- grid or micro generation opportunities were limited. A number of government policy documents have recently promoted a large-scale switch to more environmentally sustainable energy sources (DEA, 2016).
While Eskom will undoubtedly remain critical to South African energy provision, electricity sales in key segments, such as industry, mining and commerce, are relatively stagnant, either at or nearing a 15-year low. Prices of a number of alternative energy generating technologies are declining and consumers are increasingly defecting from the grid, negatively impacting Eskom’s revenue and business model. In response to recent price increases and supply concerns, customers are improving energy efficiency and making their own generation decisions (Eskom, 2016).
Contribution to State Revenue through Taxation Eskom achieved a net profit after tax of R4.6 billion for the year ending 31 March 2016 (up from R200 million in 2015), and is thus currently contributing positively to the income of the South African Government. Eskom operations were liable for income tax of some R2.5 billion in 2016, of which some R500 million were paid to the South African Government and some R2 billion were deferred in 2016 (Eskom, 2016).
The effective tax rate for Eskom for the year 2016 was 35.0% (compared to 13.3% in 2015) due to an increase in non-deductible expenditure (Eskom, 2016). For comparison, the corporate income tax rate in South Africa in 2016 is 28.0% (SARS, 2016).
KPMG (undated) estimates that Eskom’s new build programme contributed some R85 billion to government revenue between 2008 and 2014 and will contribute R88 billion between 2015 to 2020 through direct and indirect taxes as well as broader fiscal impacts generated through linkages with other economic sectors.
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Employment and Skills Development Eskom had some 48 000 direct employees (permanent staff and full-time contractors) in 2016, up from 40 000 in 2011 (Eskom, 2016 and 2011). Together with Transnet, Eskom is one of the top employment-generating State Owned Enterprises in South Africa (Table 2-1).
Indirect employment in sectors providing inputs to Eskom amounted to some 219 083 jobs in 2014/15, while some 290 000 induced jobs were created through the multiplier effect of Eskom’s salaries and wages (KPMG, undated).
Table 2-1: Employees in State Owned Enterprises in 2010
State Owned Enterprise Sector Employees (in 2010) Transnet Transport 45 564 Eskom Energy 39 222 South African Airways Transport 7 989 Denel Defence 5 067 South African Broadcasting Corporation Communication 3 346 Airports Company South Africa Transport 2 582 South African Forestry Company Forestry 2 255 South African Express Airways Transport 839 Alexkor Mining 112 Broadband Infraco Communications 79
Source: Klopper (2010). In 2011, Eskom provided its workforce with 298 000 training days, equivalent to an average of seven days of training per employee, which represented an investment of R998 million. In addition, Eskom trains current and potential business partners and creates training opportunities at its major suppliers (Eskom, 2011). Eskom also runs additional skills development programmes to train engineers, technicians and artisans to meet Eskom’s future need for skilled workers (Eskom, 2011).
Eskom procures from a wide range of industries and service providers, including mining, construction, cement and steel manufacturing and manufacturers of machines and other industrial equipment. The jobs that are directly and indirectly supported through Eskom’s activities are distributed and require a wide range of different skill sets, thereby benefitting people from different educational backgrounds and regions and stimulating economic diversification in South Africa. (Eskom, 2011).
At least 50.0% of procurement in Eskom’s new build programme is sourced locally (KPMG, undated). KPMG (undated) estimates that the new build programme sustained some 763 000 direct, indirect and induced jobs between 2008 and 2014. This figure rises to 783 000 direct, indirect and induced jobs that are expected to be sustained by the new build programme between 2015 and 2020.
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2.4.1 Role of Energy in Human Development Electrification is deemed to have strong social benefits above and beyond economic growth. Electrification, particularly of rural areas, is associated with improved literacy rates, health and general living conditions as well as new prospects such as the ability to work at night and business and trade expansion. Electrified households in Bangladesh have demonstrated higher improvement on all quality of life indicators, including life longevity, per capita real income and human development index, than households that are not electrified (GENI, 2007). In Brazil, electrification was associated with a modest increase in house values and a significant increase in the Human Development Index (HDI) in the connected area (Lipscomb et al, 2013).
Such improvements are achieved by allowing families to allocate time more effectively, e.g. by reducing the time spent collecting firewood and/or extend working/learning hours into the night, providing access to modern technology and information and enhancing people’s perception of safety through electric lighting. The domestic burden may be reduced particularly for women, thus contributing to a reduction in the gender gap. Improved health outcomes can be achieved by enabling refrigeration (of medicines and food) and medical technologies. Indoor pollution can be reduced or avoided through displacement of domestic wood and coal burning (Eskom, 2011, IEG, 2008).
However, while a better HDI is associated with higher levels of electricity access across the world, the magnitude of the impact on HDI varies among countries with the same level of energy access (Iyer, 2013) (Figure 2-2).
Figure 2-2: Human Development Index versus electrification rates Source: Eskom, 2011. As noted with regards to energy’s role in enabling of economic activity, electricity is a ‘quintessential’ intermediate good and does not represent an end in itself. Cook (2013) notes in this context that rural electrification programmes are most effective when implemented with complementary infrastructure, including educational initiatives that influence change to enable the users of electricity to put energy to productive uses; such programmes are not normally part of rural electrification programmes.
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Eskom connected more than four million users to electricity from 1991 to 2011 as part of its electrification programme. By 2011, 83.0% of South African households had access to electricity, with some 2.5 million households remaining unconnected. In the same period, Eskom brought electricity to more than 11 000 schools and more than 350 clinics throughout South Africa. By 2016, almost 90.0% of South African households had access to electricity (eNCA, 2016).
Initially high connection rates (averaging at 290 000 connections per year between 1994 and 2000) slowed to less than 200 000 new connections per year on average between 2001 and 2009 (Eskom, 2011). Some 158 016 new electrification connections were achieved in 2016 (compared to 159 853 in 2015), below the target of 194 374 (Eskom, 2016). Eskom and municipalities are planning to spend R17.6-billion between 2017 and 2020 to connect more than 840 000 additional households to the national grid, and 70 000 households to non-grid solar electrification programmes (eNCA, 2016). Universal access to electricity is envisaged by 2025 (Eskom, 2016).
As such, by significantly increasing access to electricity across rural and poor urban areas, Eskom is deemed to make a significant contribution to human and social development across South Africa. However, affordability of electricity by households connected to the grid remains a challenge, as exemplified by the number of illegal connections and outstanding payments. Cook (2013) also notes that, in an international context, connection and electricity charges continue to represent serious constraints for the poor.
Poor households still constitute a very small proportion of residential electricity consumption and account for 0.5% of total national electricity consumption (Winkler & Tait, 2012 in DEA, 2016). At the same time, poor households spend up to 20.0% or more of their household budget on energy, compared with 2-3% for wealthier households (SEA, 2006 in DEA, 2016). The resulting energy poverty, despite being connected to the grid, results in remaining challenges such as inadequate access to appropriate and safe energy sources and appliances, hazards such as fires and burns due to illegal connections and compromising of income-generating activities. As noted above, electrification programmes should be accompanied by complementary programmes and an appropriate pricing/subsidy structure.
2.4.3 Contribution by Eskom to Transformation and Economic Empowerment South Africa's government implements a Broad-Based Black Economic Empowerment (B-BBEE) strategy to redress the political, social and economic inequalities of the past. The fundamental objective of the B-BBEE is to advance economic transformation and enhance the economic participation of black people in the South African economy (DTI, undated) and to further create capacity within the broader economic landscape at all levels through skills development, employment equity, socio economic development, preferential procurement, enterprise development (especially of small and medium enterprises), promoting the entry of black entrepreneurs into the mainstream of economic activity and the advancement of co-operatives (Economic Development Department, undated).
Eskom actively contributes to transformation and the implementation of B-BBEE through notably preferential procurement and employment. Some 82.0% of Eskom’s procurement was spent on B- BBEE compliant providers in 2016, and racial equity in senior management is 61.0% (Eskom, 2016).
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The Eskom Foundation focuses on socio-economic development needs in the following key areas:
x Support to small and medium enterprises (through networking, training and incubator support);
x Education programmes (from pre-school to tertiary level);
x Health support programmes (through mobile clinics and provision of equipment); and,
x Community development and welfare programmes (such as funding specific needs, food security and facilitating employee volunteering).
The effectiveness of Eskom’s CSI spending in community development will depend on a number of factors, and analysis thereof falls outside of the scope of this study.
2.4.5 Regional/Local Perspective The economy of the Steve Tshwete Local Municipality, where three of the four power stations are located, is dominated by mining, manufacturing and finance (Steve Tshwete Local Municipality, 2015). While Eskom contributes to the local economy, other sectors, such as mining and steel manufacturing, contribute significantly more to GDP and employment than the electricity/utilities sector (see Table 2-2) (Steve Tshwete Local Municipality, 2015).
Table 2-2: Key economic sectors of the Steve Tshwete Local Municipality
Sector Contribution to GDP Contribution to Employment Mining 45.8% 20.7% Manufacturing 17.2% 6.5% Community Services 9.4% 13.6% Finance 8.7% 11.3% Trade 7.1% 21.4% Electricity/Utilities 5.2% 2.5% Source: Steve Tshwete Local Municipality (2015). Limited quantitative information is available on Eskom’s economic role at the regional/local level. The current economic contribution of the operation of the four power stations relates primarily to:
x Long-term direct employment during operations of 690 employees at Hendrina power station and 710 employees at Arnot power station, 470 employees at Komati power station and 373 employees at Camden power station;
x Indirect employment: at Eskom, this amounts to twice the number of direct employees, deemed to support a total population 13 times the number of direct employees (Eskom, 2011); and,
x Procurement spending related to operating the above power stations: as the power stations have been operating for many years, it is assumed that many of the services procured during operations are available in and sourced from the region, thus benefitting the local economy.
Most negative externalities (impacts) associated with electricity generation, on the other hand, are also localised in the vicinity of the power stations, including impacts on water quality and quantity,
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Economic Implications of Decommissioning Power Stations
2.5.1 Continued Operation Two end of life options include the continued operation of the power stations – either as refurbished (Option 1) coal-fired power stations or as demolished and rebuild power stations (Option 3). Both are discussed in this section, as the overall impacts will be similar.
The economic impacts of upgrading and continuing to operate the four power stations are likely to be more limited than those of decommissioning the plants, and relate particularly to the following aspects, which may manifest at a national and/or regional level:
x Increase in procurement spending: It is expected that substantial procurement spending will be made during refurbishment/modification of the power stations, far above levels associated with ongoing operations-related procurement. As goods and services required during refurbishment/modification are likely to differ from those required during normal operations, procurement spending may go to different service providers than those historically working with Eskom in the region, and possibly to providers outside of the region if the skill/service does not exist locally. High procurement spending is expected to last over the short- to medium-term until works are completed, whereupon lower operations-related procurement would resume;
x Cost of energy: The future cost of energy, relative to the current cost, will depend on the procurement and operating costs of the technology installed in the refurbished/modified power stations. An increase in the cost of energy could result in reduction in economic output similar to those estimated for historic price increases and/or stimulate further energy efficiency gains;
x Energy supply: The quantity of generated energy is likely to remain stable in the long run, assuming the refurbished/modified power stations will have a similar installed capacity and operating workforce as the present power stations. A drop in energy-generating capacity can be expected during the refurbishment / modification of the plants;
x Employment: The number of jobs at the power plants is likely to remain stable in the long run, assuming the refurbished/modified power stations will have a similar installed capacity and operating workforce as the present power stations. Different skills and workforces might be required during refurbishment/modification of the plants, which may lead to short- to medium- term fluctuations in job opportunities in the region.
Any induced cumulative effects on coal mines in the area if power stations are modified to operate on alternative energy, through reduced demand from the power stations, are likely to result in a decrease in employment in the regional mining sector. Depending on the alternative energy source, the loss of mining jobs may be compensated by increased employment in other sectors providing the alternative energy source.
2.5.2 Decommissioning As per section 1 of this report, decommissioning options include continuing operating the power
station for five years at a time until there is certainty on carbon dioxide (CO 2) budgets and demand profiles, selling the power station, mothball the plant or utilise power plant components as spares for other Eskom plants. All are classified as decommissioning and are discussed in this section, as the overall impacts will be similar, although impacts are likely to occur more gradually over a longer timeframe with the slow stripping of power stations for spares.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 15 National Perspective The key potential economic impacts at a national level of decommissioning the four power stations are related to the following:
x Reduction in energy supply: The impact is deemed minimal at a national level if the loss of ~6 500 MW installed capacity as a result of the decommissioning of the four power stations is replaced with a similar or higher capacity at other facilities. If lost power generating capacity is not replaced, a shortage in energy supply could result in loss of economic output similar to that experienced during load shedding in 2007/08 and 2015;
x Cost of energy: The future cost of energy, relative to the current cost, will depend on the procurement and operating costs of the technology replacing the decommissioned power stations. An increase in the cost of energy could result in reduction in economic output similar to that estimated for historic price increases and/or stimulate further energy efficiency gains; and,
x Loss of jobs: The four power plants currently employ some 2 250 staff. Even if all of these jobs are lost in decommissioning, the impact is deemed minimal at a national level if the number of direct and indirect jobs lost at the four power stations following decommissioning is offset by jobs created in other / new power generating industries in South Africa. Regional/Local Perspective The economic implications of decommissioning at a regional and local level are, to some extent, a reversal of the impacts and benefits experienced during operation:
x Loss of jobs: The number of directly and indirectly employed staff at the four power stations is likely to reduce as soon as decommissioning begins, as it is anticipated that a smaller workforce is required for the decommissioning phase. Depending on timing, job losses during decommissioning of the four power stations could be cumulative with the reduction of construction jobs experienced in the region following the construction of newly built power stations (e.g. the Kusile construction workforce of up to 11 000 reduces to less than 1 000 operation staff); and,
x Reduction in procurement spending: It is expected that substantial procurement spending will be made during decommissioning. However, as goods and services required during decommissioning are likely to differ from those required during operations, procurement spending may go to different service providers than those historically working with Eskom in the region, and possibly to providers outside of the region if the skill/service does not exist locally. Following decommissioning, procurement spending would cease.
As the electricity / utilities sector makes a comparatively limited contribution to local GDP and employment, the overall negative impact on the local and regional economy from decommissioning the power stations is likely to be relatively limited. However, any induced cumulative effects from the decommissioning on coal mines in the area, through reduced demand from the power stations, are likely to have a higher and cumulative impact on the regional economy.
These impacts are unlikely to be offset at the local scale, as may be the case at national scale, as jobs created in alternative energy-generating industries (e.g. renewables, nuclear or more modern technology) may not be accessible to the existing workforce at the four power plants as they may:
x Require different skills; and,
x Be located in a different region of South Africa, which is likely to already have a local labour force in need of employment.
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x In cooperation with the municipality, identify alternative projects that can provide continued employment to workers after decommissioning;
x In cooperation with the municipality, encourage projects and/or networks that provide training and support for small and medium enterprises. Initiate such programmes as early as possible;
x Provide workers with personal finance and skills training to manage the transition period into new employment; and,
x Maintain good communication with workers about the decommissioning process.
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3 Socio-Economic Baseline Analysis This section describes the socio-economic baseline characteristics and socio-economic trends. An emphasis is placed on aspects that may potentially be impacted by the various options. This information, in turn, informs the development of the criteria for assessing options. In summary, the following key characteristics are considered in the development of the impact assessment and options analysis (Figure 3-1):
Alternative Employment Opportunities: Will there be adequate opportunities for employment elsewhere should an option result in job losses?
Procurement: Will there be sufficient alternative opportunities for local contractors should an option result in loss of contracts with local contractors?
Service Delivery: Will local services to communities be impacted negatively?
Health Impacts: Will an option contribute to negative environmental impacts?
Education and Skills: Will there be sufficiently educated and skilled local people to work at the power stations should the preferred option require additional staff/contractors with specific skills and experience?
Figure 3-1: Social issues
Provincial Context Summary The focus of this section is to provide a context for the ZoI as identified in section 3.3. A baseline of the province is also important as the implementation of one of the three options may potentially create impacts on a provincial level (Figure 3-2).
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Figure 3-2: Province, municipalities and wards relevant to the study 7
3.1.1 Demographic Overview The Mpumalanga Province comprises of three district municipalities, which are in turn, divided into 18 local municipalities. The province has a population of 4 039 939 people. The population of 2.6 million in 1996 has grown to over 4 million in 2011, now representing approximately 8.0% of the South African population (South African Census, 2011). Table 3-1 provides the structure of this population. Black Africans are in the majority, representing 90.6% of the total population.
Table 3-1: Population structure of the Mpumalanga Province
Population Group Male Female Total Black 1 781 368 1 880 850 3 662 219 White 151 557 152 038 303 595 Coloured 18 149 18 462 36 611 Indian/Asian 16 165 11 753 27 917 Other 6 817 2 780 9 597 Total 1 974 055 2 065 883 4 039 939 Source: StatsSA, 2011.
3.1.2 Provincial Economy
Economic growth All four of the power stations under review in this report are located in Mpumalanga Province. The Mpumalanga Province is considered the generation hub of South Africa’s electricity network due to the concentration of power stations in this region and their close proximity to the large centres of loads. Currently, 11 of 13 Eskom coal-fired power stations, namely, Arnot, Camden, Duvha, Grootvlei, Hendrina, Kendal, Komati, Kriel, Matla, Majuba and Tutuka are located in the Mpumalanga Province.
7 For the purposes of this report, “Local Municipality” and “District Municipality” have been abbreviated in figures to LM and DM respectively
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In addition to the 11 coal-fired power stations, one of the two Eskom power stations that are currently under construction, namely, Kusile Power Station is located in the Mpumalanga Province ( Eskom Transmission Development Plan, 2016-2025).
In the mid-1990s, the Mpumalanga Province had one of the fastest growing economies in South Africa. Although it is one of the less populated and second smallest of the provinces in the country, the Mpumalanga Province has the fourth largest economy, based largely on the rich natural resources of the area. However, as with the rest of the South African economy, this growth rate has slowed down considerably (Mpumalanga Department of Economic Development, Environment and Tourism (MDEDET), 2009).
The main industrial and manufacturing activities in the Mpumalanga Province include iron, steel, stainless steel, petrochemicals and chemical products, agricultural products, mining, power generation, timber and wood products and food processing. The potential for further development in these sectors, as well as tourism, is considerable. The favourable location of the province enhances its development potential with the Maputo Corridor linking the province to Maputo in Mozambique, the close proximity to the substantial Gauteng market and the rail and road infrastructure allowing access to ports at Durban and Richards Bay (Mpumalanga Provincial Government, 2016).
The Mpumalanga Province’s economy is dominated by mining, mostly coal for the Eskom power plants located in the province, although some of the coal is sold to international clients. As a result, it benefited from the commodity boom that lasted from 2003 to 2011 (Real Economy Bulletin, 2016). However, it has experienced much slower growth since then. The Mpumalanga Province also has extensive heavy industry, which forms part of the long-standing Highveld complex, and a strong commercial agricultural sector. These industries have driven its growth since 2011.
The strength of the province’s major sectors has meant it has been mainly at, or above, the national average for employment and income levels. Despite this, two fifths of the population (40%) – substantially more than the national average – live in former homeland regions, where infrastructure, employment and incomes lag behind national norms (Real Economy Bulletin, 2016).
While the Mpumalanga Province, with 4.3 million residents, accounted for 8.0% of South Africa’s population in 2014/5, it contributed 7.0% of the GDP. In 2014, the real economy (represented by agriculture, mining, manufacturing and construction) made up 40.0% of its output. The real economy sector was dominated by mining, at 22.0% of the provincial economy as per Statistics South Africa (StatsSA, 2016).
The average annual growth rate for the country and the Mpumalanga Province over the period 1996 to 2011 was 3.2% for South Africa and 2.7% for Mpumalanga, respectively. The NDP targets average national GDP growth of over 5% up to 2030 (StatsSA, 2016).
The Mpumalanga Province had a labour force of approximately 1.9 million individuals in the third quarter of 2015 (StatsSA, 2016). This has decreased by approximately 40 000 in the fourth quarter of 2015 (StatsSA, 2016). This is predominantly due to the international and national economic downturn. The province has an estimated unemployment rate of 25.7% (StatsSA, 2016).
Manufacturing is the biggest contributor to employment at 40.5%. Coal dominated mining With coal mining dominating employment in employment in Mpumalanga, producing mainly to the province, the decommissioning of any supply Eskom as well as for export. While Eskom power stations will lead to significant job may take higher volumes of coal, the majority of the losses in an already stressed socio- profits earned come from the export market. Thus, economic environment. the dependency on coal exports is also high.
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Generally, gold mining saw job losses during the commodity boom, while platinum mining, coal and iron ore created employment. According to Department of Mineral Resources data, total mining employment in the Mpumalanga Province climbed from 53 500 in 2003 to 102 000 in 2011 and over 103 000 in 2015. Total employment in Mpumalanga constituted 7.5% of employment in the country in 2014 (Real Economy Bulletin, 2016). The area’s dependency on minerals and mineral prices implies that a downturn in commodity prices may affect the economic growth of the area.
Regional Context
3.2.1 Introduction For the purpose of this report, the regional ZoI describes the district and local municipal context of the four Eskom power stations under discussion. The Arnot, Hendrina and Komati power stations are located in the Steve Tshwete Local Municipality within the Nkangala District Municipality, while Camden power station is located in the Msukaligwa Local Municipality in the Gert Sibande District Municipality(Figure 3-3).. Appendix contains the detailed baseline description of the regional ZoI.
Figure 3-3: Allocation of district and local municipalities in the regional ZoI
3.2.2 Summary of Baseline This section is based on StatSA (2011) information and summarises the detailed description in Appendix C.
Nkangala District Municipality and Steve Tshwete Local Municipality
x Nkangala District Municipality has six local municipalities namely, Steve Tshwete, Dr JS Moroka, Emakhazeni, Emalahleni, Thembisile Hani and Victor Khanye;
x Approximately one third of the population of Mpumalanga Province lives in the Nkangala District Municipality;
x Nkangala District Municipality has a higher average annual population growth rate than the province;
x Nkangala District Municipality is considered an energy, mining and trade hub of the province, and contributed to close on half of the provincial GDP in 2014;
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x Coal mining and energy generation are big sectors in Steve Tshwete Local Municipality, and as a result, Steve Tshwete Local Municipality is a significant contributor to the Nkangala District Municipality economy, contributing to a third (33.0%) of the district GDP in 2014.
Gert Sibande District Municipality and Msukaligwa Local Municipality
x Gert Sibande District Municipality has seven local municipalities, namely Msukaligwa, Chief Albert Luthuli, Dipaleseng, Dr Pixley Ka Seme, Govan Mbeki, Lekwa and Mkhondo;
x Gert Sibande District Municipality’s economy is largely based on manufacturing, which contributed to close on two thirds of the GDP in 2013; and,
x Msukaligwa Local Municipality’s economy is based largely on finance, community services, transport, trade and mining. Regional Patterns The following general patterns for the region are evident:
x The majority of the population in the region is comprised of Black Africans;
x Apart from Gert Sibande District Municipality, settlement distribution is largely urban, with dispersed farm settlements throughout the Steve Tshwete Local Municipality in Nkangala District;
x Steve Tshwete Local Municipality has a high population growth rate, which exceeds all other local municipalities in Nkangala District Municipality;
x Across the regional ZoI, the majority of the population is of working age and below the ages of 35, with a high dependency rate associated with a significant youthful population below 18 years old;
x Females account for the larger portion of the populations in all but Steve Tshwete Local Municipality, where there is a larger male population which may be liked to high levels of migration into Steve Tshwete Local Municipality;
x Migration into the regional ZoI is above national average (0.9 migrants per 1 000 people), which could be for a number of reasons including push factors from sending countries as well as pull factors from South Africa, traditionally a labour intensive economy;
x Land use in the regional ZoI can be broadly defined as largely residential, with more agricultural (farm) land use occurring in Gert Sibande District Municipality and Msukaligwa Local Municipality. Industrial land uses occurred proportionately more in Steve Tshwete Local Municipality than the other local and district municipalities, while informal residential settlements were notably higher in Msukaligwa Local Municipality;
x Across all four municipal designations, most houses are brick structures on separate stands or yards;
x Steve Tshwete Local Municipality has the highest percentage of working-aged (15+ years) employed people and the lowest percentage of economically inactive people;
x Nkangala District Municipality has the higher unemployment rate of the two districts, however it is marginal;
x Both community services and trade feature as one of the top three employment sectors in the regional ZoI. The locality of the municipalities on important transport and trade corridors can be seen as the reason for the high employment in the trade sector;
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x Annual household income is distributed similarly across the four district and local municipalities. Nkangala District Municipality has the greatest prevalence of no income. However, Steve Tshwete Local Municipality has the lowest instance of no income households. Excluding Steve Tshwete Local Municipality, the most prescribed income bracket is R19 601-R38 200, which is classified as a low to middle income bracket;
x The level of education in all four municipalities is better than the provincial average, with Nkangala District Municipality having the best education out of the two district municipalities;
x Gert Sibande District Municipality has the higher prevalence of non-educated people over 20 years old; primary education prevalence was higher in both the Gert Sibande District Municipality and Msukaligwa Local Municipality, when compared to Nkangala District Municipality and Steve Tshwete Local Municipality. Secondary education levels of Gert Sibande District Municipality are in line with the Nkangala District Municipality in Gert Sibande District Municipality and Msukaligwa Local Municipality, but lower than Steve Tshwete Local Municipality. Tertiary education, like much of South Africa and Mpumalanga, is low, which can be attributed to (amongst other reasons) lack of tertiary education campuses in the municipalities (other than Further Education and Training (FET) colleges) as well as financial constraints presented by attending tertiary institutes;
x Human Immunodeficiency Virus/Acquired immunodeficiency syndrome (HIV/Aids) is a common cause of death across the municipalities, and Aids related deaths including Tuberculosis (TB), pneumonia and diabetes could mean that HIV/Aids related deaths are in fact higher; and,
x Road accidents and external accidental incidents feature highly and could be an indication of poor road conditions as well as negligent driving and un-roadworthy vehicles.
Local ZoI Context For the purpose of this report, the local ZoI is defined as municipal wards in which each Eskom power station is located or has significant influence in. As such, the ZoI’s are defined as per Figure 3-4. For detailed socio-economic and demographic information of each ZoI, please see Appendix D. A socio- economic and socio-demographic summary is provided in Table 3-2.
Figure 3-4: ZoI wards demarcation
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3.3.1 Hendrina ZoI Overview
Hendrina power station is located in Ward 3 of the Steve Tshwete Local Municipality, approximately 17 km North-West of Hendrina and 35km East of Emalahleni. The first operations were commissioned in 1970 making it the largest in the world with ten turbines. The decommissioning date for Hendrina power station is 2030 8.
Hendrina is supplied by coal from the surrounding Optimum Colliery and Woestalleen Mines. Additional coal is also trucked in to ensure that the necessary stockpile levels are maintained.
Figure 3-5: Hendrina power station
Settlement Distribution and Density The Hendrina ZoI is bordered by Emalahleni and Kriel to the west, Belfast and Carolina to the East and Bethal and Ermelo to the South. It is situated in the Mpumalanga coal fields and as such, much of the land in the ZoI is owned by private mining companies and Eskom. A Google Earth satellite image from August 2016 is provided in Figure 3-6.
The Hendrina ZoI is largely urban, and the current settlement distribution and settlement Pullenshope is considered as the ‘host’ dynamics within the Hendrina ZoI are indicative community for Hendrina. This town was of this. The highest concentration of settlement originally constructed to house Eskom is within Hendrina, Kwazamakuhle and employees. Kwazamakuhle Township and Pullenshope. It is evident from time-lapse Hendrina Town are also considered important satellite imagery (Google Earth, 2016) that the as they are the main receptors of fugitive dust expansion of the towns and other human and air emissions from the stacks – Hendrina settlements has, to an extent, been limited by power station, 2016. topography, service infrastructure and the historical demarcation of the area.
The Hendrina ZoI is part of the N4 Maputo Corridor, and settlement in the area has been dictated by transportation routes economics and service requirements (N11 and N4). Privately owned land with commercial coal mining, power generation facilities and the N4 highway have limited the plausibility of urban, residential expansion outwards in parts.
8 As per the document: Enquiry on requirements for Environmental Impact Assessment (EIA) for the Generation Fleet Renewal Programme: Option 4 Do not Renew (Eskom, 2016)
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ESKOM SOCIAL BASELINE Project No. HENDRINA ZOI LOCALITY 506503
Figure 3-6: Hendrina ZoI locality Source: Google Earth, 25 August 2016.
3.3.2 Arnot ZoI Overview Arnot power station is located approximately 34km South-East of Emalahleni within Ward 7 of the Steve Tshwete Local Municipality. The power station is only 20km North-East of Hendrina and therefore has many similarities, particularly in terms of stakeholder relations and zone of influence.
The first of six units at Arnot power station was originally commissioned in 1971, with a current anticipated decommissioning date of 2036 9. Many parts of the power stations, including the boilers, have already passed their anticipated life cycle.
Figure 3-7: Arnot power station The Exxaro Mine that has always supplied coal to the power station has now closed, therefore the required coal supply is now transported via road and conveyor.
9 Ibid (Eskom 2016)
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Settlement Distribution and Density StatsSA’s Census 2011 and settlement patterns viewed on Google Earth (2016) While Rietkuil is considered the host suggest the ZoI population lives largely in community, Hendrina and Kwazamakhule urban areas. The highest concentration of are also included. Arnot often partners with human settlement is within the settlements Hendrina as they share this ZoI – Arnot of Arnot and Rietkuil town. It is evident that power station, 2016. the expansion of the towns has, to an extent, been limited by commercial agricultural and mining operations in the area, and many households are located on farms. Rietkuil itself is a mining town, and has developed around coal mining operations on its peripheries. The Arnot ZoI is bordered by Emalahleni in the northwest and is serviced by the N4 and R104 in the North of the ward. Commercial agriculture is largely found in the north of the Arnot ZoI, with mining prevalent in the southern quarters of the Arnot ZoI. A Google Earth image from June 2016 is provided in Figure 3-8.
ESKOM SOCIAL BASELINE Project No. ARNOT ZOI LOCALITY 506503
Figure 3-8: Arnot ZoI locality Source: Google Earth, 25 June 2016.
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3.3.3 Komati ZoI
Overview Komati power station is located approximately 37km South of Emalahleni within Ward 4 of the Steve Tshwete Local Municipality. The power station is 40km South-East of Emalahleni and is just under 20km from the Hendrina power station.
Komati power station was one of the first pulverised fuel firing stations and its first of nine units was commissioned in 1961 and is due to be decommissioned in 2026 10 . Many parts of the power station, including the boilers, have already passed their anticipated life cycle.
Figure 3-9: Komati power station The Koornfontein Mine supplies coal to the power station, while surplus coal requirements are trucked in from elsewhere.
Settlement Distribution and Density The Komati ZoI is bordered by Pullenshope to the north east and Hendrina to the east. It is situated in the Mpumalanga coal fields and as such, much of While Komati village and Blinkpan are the land in the ZoI is owned by private mining considered the host communities, and companies, private and commercial farm owners Hendrina fall into the secondary ZoI. and Eskom. The Komati ZoI is approximately two Adjacent farmers are also considered to thirds urban and one third rural; however, the urban be part of the primary ZoI. population are concentrated in Komati, in the north of the ward. Apart from Komati town, households are largely located on farms and disbursed.
The ward is small and land area is largely occupied by Komati Mine and power station in the north and farms elsewhere. The settlement pattern has been largely influenced by mining and agriculture in the area. Important road service infrastructure in and outside of the ZoI includes the R35 and the R542. A Google Earth image from April 2016 is provided in Figure 3-10.
10 Ibid (Eskom 2016)
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ESKOM SOCIAL BASELINE Project No. KOMATI ZOI LOCALITY 506503
Figure 3-10: Komati ZoI locality Source: Google Earth, 16 April 2016.
3.3.4 Camden ZoI Overview Camden power station is located approximately 19km South-East of Ermelo within Ward 11 of the Msukaligwa Local Municipality.
The first of eight units at Camden power station was originally commissioned in 1967. The power station is due to be decommissioned in 2030. 11 Many parts of the power stations, including the boilers, have already passed their anticipated life cycle.
Camden acquires its coal supply from outlying mines, and as such is required to transport their coal supply via road and conveyor.
Figure 3-11: Camden power station
11 Ibid (Eskom 2016)
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Settlement Distribution and Density The Camden ZoI is bordered to the northwest by Ermelo, an economic hub. It is bordered to the east by intensive forestry activities, which also occur in the surrounds of Sheepmoor and eastern parts of Camden ZoI itself. The national, provincial and district roads N2, N11 R39 and R65 are the primary transport routes in the Camden ZoI but have not resulted or stimulated ribbon development to any degree, probably due to the agricultural focus in the area and the multitude of informal secondary sand tracks that link homesteads and communities.
The Camden ZoI is 50:50 rural and urban. The highest concentration of the population is within the Camden Village and Sheepmoor are settlements of Camden and Sheepmoor, with considered the host communities of the disbursed farm settlements throughout. Farming is Camden power station. However, adjacent the predominant land use in the area and as such, farmers are also considered to fall within farm and homesteads are the typical settlement the primary ZoI, with Ermelo and its types in the area, with limited urban infrastructure surrounds, falling into the secondary ZoI. and services outside of Camden and Sheepmoor. A Google Earth image from August 2016 is provided in Figure 3-12.
ESKOM SOCIAL BASELINE Project No. CAMDEN ZOI LOCALITY 506503
Figure 3-12: Camden ZoI locality Source: Google Earth, 15 August 2016.
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Hendrina ZoI Arnot ZoI Komati ZoI Camden ZoI
x The population size is 28 287; x The population size is 5 817; x The population size is 5 010; x The population is 7 269; x It is made up largely of Black African people; x It is made up largely of Black African people; x It has a majority Black African population; x It has a majority Black African population; x There are marginally more males than females; x There are marginally more males than females; x There are more males than females, which supports the x There are marginally more females than males; conclusion that migration is high in the area; x The majority of the population are under the age of 35 x The majority of the population are under the age of 35 x The majority of the population are under the age of 35 years and the ZoI has an overall young population. years and the area can be classified as being an overall x The population spikes in the working age groups, years and the area therefore has an overall young young population. particularly amongst the 20-34 year group. population.
x An increase in the population is evident, due to the in- x In terms of migration into the Arnot ZoI, it is minimal. x Migration has been significant and gradually growing in x There had been an increase in the Camden ZoI migration of people from the greater Mpumalanga region However, migrants have been identified as largely the Komati ZoI since 2007. Although some migrants have population; and from neighbouring Southern African countries, as well foreigners in search of living space and employment come from within South Africa, the majority have come x Migration statistics appear to be incomplete for StatsSA as the natural increase in the size of families; opportunities. from outside of South Africa. Census 2011 statistics suggest there have been no x The portion of the population leaving the area is those migrations into the Camden ZoI between 2007 and 2011; aged between 16 and 25, most who leave in an effort to however, this is unlikely if compared with migration find employment elsewhere. patterns in surrounding wards and within Mpumalanga province.
x The majority of housing in the Hendrina ZoI is formal x Primary land use in the Arnot ZoI is mostly formal x Komati ZoI has varied land uses, most of which is x Camden ZoI has more designated farmland than any of housing (brick structures on a separate stands or yards), residential; residential. High informal and formal residential patterns the other three ZoI’s. The remaining two thirds of land use however second to this is informal dwellings, largely suggest that in-migration is significant, and the increasing is formal residential. At a third of the population (67.0%), x The majority of housing in the Arnot ZoI is formal housing shacks; or brick structures on separate stands or yards, however population has led to urban sprawl and the growth of the Camden ZoI also has the highest number of residents informal settlements, where most occupants are renting; living rent free (mostly farm workers); x Influx and population growth has led to an increase in second to this is informal dwellings, largely shacks. Influx informal dwellings in informal settlements and on farms, and population growth has led to an increase in informal x The majority of houses are formal housing or brick x The majority of housing in the Camden ZoI is formal which can be attributed to the labour intense industries, dwellings in informal settlements and on farms. This can structures as well as informal dwellings, largely shacks, housing made of brick on separate stands or yard, including mining and energy generation, in the Hendrina be attributed to the labour intense industries, including many of which are to be found in Komati. however, traditional dwellings are the next most prevalent; ZoI. mining and energy generation, in the Arnot ZoI. x Population growth has led to an increase in informal dwellings in informal settlements and on farms, which can also be attributed to seasonal farm work and ex-farm employees continuing to reside on farms following termination of employment.
x Trends suggest that unemployment in the Hendrina ZoI is x Unemployment in the Arnot ZoI is moderate, however only x The Komati ZoI has the lowest level of not economically x Unemployment in the Camden ZoI is low, with one in five moderate, however only close on half of the working age 40.0% of the working age population is employed, and active population compared to the three other ZoI’s. of the adult population not economically active; population is employed. In addition, a third of the 40.0% of the population is not economically active; Employment is estimated at close on half of the adult x The majority of those employed in the Camden ZoI are population is not economically active; population; x The vast majority of the population is employed in the thought to be employed on farms; More than half of those employed are employed in the formal sector; Many of those employed in the Komati ZoI are employed x x x One in ten of households in the Camden ZoI do not earn formal sector. The informal sector provides significant on farms; x Close on three quarters of the households earn between any income, and one in five earn between R9 601.00 and employment at close on a third of employment R19 601.00 and R307 600.00 annually. However, a third x The formal sector accounts for 80.0% of the employed; R38 200.00 annually. Close on half of households have opportunities; of households are comprised of one person, and as such, four or more occupants, and as such the household x One in five households do not earn an annual income, with x About one in ten households in the Hendrina ZoI do not dependency is possibly lower than other wards in the close on two thirds of households earning an income of incomes are often stretched and insufficient to support earn any income. municipal area. between R19 601.00 and R153 800.00 annually. whole households.
Komati power station currently employs 470 people, Camden currently has 373 employees, 321 of Hendrina Power station currently employs 690 Arnot currently has 710 employees. The majority of of which 352 are permanent. The majority of the which are permanent. The majority of employees people, of which 665 are permanent. The majority of employees (93%) reside in Rietkuil. Approximately employees (439) are sourced from Emalahleni. 67% (351) reside in Ermelo. Approximately 35% are the employees (97%) are locally sourced from 27% are female and 63% male. Eskom, 2016. female and 65% male. Eskom, 2016. Pullens Hope. Of employees, 76% are male while of employees are male while 33% are female. 24% are female. Eskom, 2016. Eskom, 2016.
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Hendrina ZoI Arnot ZoI Komati ZoI Camden ZoI
x Education levels in the Hendrina ZoI are relatively high. x Education levels in the Arnot ZoI are relatively high with x Of the people over the age of 20, 67% completed x Approximately 20% of the population have a primary The majority of the population have a secondary school about 10% of community members over the age of 20 not secondary school. Like many wards in the province, education and a secondary school education. The more education (just over half); having any form of education. Close on half of the tertiary education success is dire; concerning factor in the ZoI is the fact that only 0.5% of population (50%) has a secondary school education. The the community over the age of 20 have any form of tertiary x Only 3% of the community over the age of 20 have any x It appears that there is a primary school (Laerskool form of tertiary education. more concerning factor in the Arnot ZoI is the fact that less Koorfontein) in Komati Village. education; than 5% of the people over the age of 20 have any form x There are at least two primary schools and one secondary of tertiary education. school in Sheepmoor.
Despite a relatively high education level in the area, Despite a positive education level in the area, Hendrina currently struggles to source the required Komati currently struggles to source the required skills from the local communities – Hendrina power skills from the local communities – Komati power station, 2016. station, 2016.
x There is no hospital in the ZoI, with the closest hospital in x There is no hospital in the Arnot ZoI, with the closest x There is no hospital in the Komati ZoI and the nearest x The closest hospital to the Camden ZoI is located in Emalahleni some 46 km away. There are two clinics in hospital in Middleburg (53km away). There is a clinic in hospitals are Emalahleni, 40 km, Bethal, 43 km and Ermelo, some 20km away. There is also a clinic in Hendrina and one in Pullenshope. Rietkuil. Emalahleni, 45km. There is a clinic in Komati. Sheepmoor.
x The majority of households in the Hendrina ZoI have x The majority of households in the Arnot ZoI have either x Refuse disposal by the municipality or private companies x 33% of households in the Camden ZoI have either either municipal or private refuse removal services. municipal or private refuse removal services; is afforded to half of the households, and is focused in the municipal or private refuse removal services, Currently Hendrina power station provides all refuse urban pockets of the Komati ZoI (including Komati concentrated in the urban pockets of Camden; x Sanitation services are improved and flushing toilets are removal services in Pullenshope and the Woestalleen Village); utilised by just over two quarters of the households in x Pit latrines are the dominant sanitation method for mines. The power station also utilises their own landfill site Arnot ZoI; x Sanitation in the Komati ZoI is different in various places, households, and as many as one in five households (20%) for waste disposal; with urban pockets enjoying better services when had no sanitation facilities; x Close on all households have access to a water compared to rural and informal settlements. Flushing connection either in their yard, within their dwelling or at a x Close on 50% of households do not have access to piped communal standpipe; toilets are utilised by about 50% of the households; water; the rest of households have access to a water Currently all sewerage from Pullenshope is treated connection either in their yard, within their dwelling or at a x Eskom is the sole distributor of bulk electricity in the Arnot at the Hendrina water treatment works – Hendrina ZoI: The majority of households in the ZoI have access to communal standpipe; power station, 2016. municipal electricity; Currently, the local municipality is responsible for x Eskom is the sole distributor of bulk electricity. However, electrical connections are not widely prevalent due to x The majority of households rely on electricity for cooking, sanitation provision and services in Blinkpan and disbursed settlement and the rurality of farms; heating, and lighting. Komati Village – Komati power station, 2016. x Flushing toilets are utilised by 67% of the households; x The majority of households in the ZoI do not use municipal x Close on all the households have access to a water electricity for cooking and heating; connection either in their yard, within their dwelling or at a x The majority of households rely on wood for cooking and communal standpipe; heating; x Eskom is the sole distributor of bulk electricity in the x The majority of households rely on electricity for lighting; Hendrina ZoI and electrical connections are prevalent in Candles are a significant source of lighting. the area, particularly in Pullenshope and Hendrina town; x About 67% of households have access to a water x connection either in their yard or within their dwelling; x The majority of households in the ZoI have access to municipal electricity; x Eskom is the sole distributor of bulk electricity in the Komati ZoI; x The majority of households rely on electricity for cooking, heating, and lighting.
Komati currently provides both water and electricity Hendrina currently provides both Pullenshope and to the Komati Village – Komati power station, 2016. Woestalleen mine with potable water and electricity – Hendrina power station, 2016.
x Electricity is available and used by over 50% of households for cooking, heating and lighting. However, in the instance of heating, 20% of households do not use electricity, and candles still account for a large percentage of lighting in the Komati ZoI.
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Relevant Strategies and Plans The development of criteria to assess options need to consider relevant strategies and plans. This section outlines Eskom’s Socio-economic Development (SED) scope; the CSI activities of the four power stations, followed by the LEDs of the municipalities in question, the Provincial Growth and Development Strategy (PGDS), where after the relevant NDP and SDGs are outlined. The linkage of the SDGs with the option selection criteria as defined in section 5 is outlined in Table 3-3.
3.4.1 Eskom’s SED and CSI Plans Eskom’s SED Scope Eskom’s SED scope includes initiatives, which address the following (Integrated Socio-economic Development Policy for Eskom, 240-69723512, November 2013):
x Community development;
x Education;
x Employment creation;
x Skills development;
x Technology development and access to technology;
x Health;
x Wealth and income creation;
x Social investment; and,
x Stakeholder engagement. Of the SDGs identified (Table 3-3), Goal 1 “End poverty”, Goal 4 “Inclusive and equitable quality education”, Goal 3 “Ensure healthy lives and promote well-being for all”, and Goal 9 “Build resilient infrastructure” have relevance to the Eskom SED scope. Eskom Power Stations’ SED/CSI The four power stations have approximately R1 million annually to spend on CSI. In addition, the Eskom Foundation also contributes R34 million per annum for SED. The focus on CSI spend leans towards education, skills development and community development:
x Hendrina’s main LED activity is the air emissions off-setting project, which involves providing energy efficient coal burning stoves in Kwazamakhule. In addition, funding is provided to local home-based care programmes. The power station is looking at opportunities to utilise the ash to start brick manufacturing, and to formalise the collection of rubbish at the landfill site for recycling. There are ongoing requests for transport from the surrounding communities.
x Arnot currently has over R9 million in CSI activities earmarked for local school refurbishment and the construction of computer labs, funding and donations to orphanages and old age homes, and support to clinics, hospice, mobile clinics and home based care. Through the Eskom Foundation, there is also a Contractor Academy on site who assist learners with the development of key skills, including artisans and operators. The academy takes approximately 25 students per 18-month cycle, to secure funding for initiatives such as education (school refurbishment, computer labs).
x Komati provides donations to approved applicants. Current CSI initiatives include the construction and maintenance of boreholes, provision of school uniforms and construction of bus shelters. Where possible support to local farm schools is prioritised.
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x Camden provides donations to approved applicants. Camden has provided computers to Cebisa secondary school and assisted Netherlands Park, as well as chairs, projectors, interactive boards etc. to local primary and secondary schools, and donations to a local day care center.
x The Eskom Foundation is also involved in initiatives such as Health Mobile Clinics, Maths Centre for Professional Teachers, Contractor Academies, Eskom expos, etc. A welding programme to the value of R1 434 098, was conducted for 28 community members from Ermelo to empower these members to become employable. They were trained in basic welding training. Further training was requested, and 18 members completed the full course. Their details were given to the power stations to look at possible employment (Eskom Foundation Presentation, 10 July 2016).
3.4.2 Municipalities’ Local Economic Development Nkangala District Municipality (Final Draft Integrated Development Plan (IDP) 2016/17-2020/2021) To enhance local economic development, the focus is on job creation and poverty alleviation through:
x Economic diversification;
x Marketing and market research;
x Institutional development;
x Green economy mainstreaming; and,
x Business retention, attraction and development.
Anchor projects identified by the district municipality for Steve Tshwete Local Municipality are:
x Establishment of a catalytic converter plant; and,
x Establishment of a steel and metal fabrication hub. Anchor projects in other municipalities within Nkangala District Municipality are: establishment of a glass recycling plant, bio diesel plant, shopping complex, sawmill project, fly ash beneficiation plant, high altitude sport centre, international airport, Small Medium Macro Enterprises (SMME) hub, business convention centre, tourism belt, mining museum and convention centre, and a theme park development.
Current strategies and plans for the district include:
x Feasibility study for an agro-processing plant;
x Develop and review LED strategies;
x Development of investment attraction and promotion strategies;
x Feasibility study for integrated rural development strategy;
x Business plan for fresh produce market (agri-hub);
x Anchor projects completed; and,
x Feasibility study for the fresh produce market completed.
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Relevant sector specific strategies are listed as follows:
Tourism strategy
The following clusters have been identified to improve the tourism spread: Mining cluster; Eco-nature cluster; Cultural, historic and political cluster; and, Conference and convention cluster.
Industrial strategy
The following industrial clusters are planned: Food and beverages; Non-metallic mineral products; Metal and products of metal; Support for the ICT; and, SMME development.
Regional industrial roadmap
This roadmap provides a guideline that will stimulate industrial development and a focused approach to economic development.
Sector interventions
x Agriculture, hunting, forestry and fishing interventions: Integrate current small- scale/emerging farmers into the commercial farming arena;
x Mining: Small-scale mining, mine rehabilitation and mine procurement.
x Food products, beverages and tobacco products interventions: Promote agro-processing.
x Textiles, clothing and leather goods interventions: Develop a business plan for the establishment of organic cotton textiles and clothing community hubs.
x Wood and products of wood, manufacture of articles of straw, manufacture of paper and paper products: Develop furniture training centres in appropriate local municipalities.
x Agro-Pharmaceuticals: Develop an agro- pharmaceutical cluster; pharmaceuticals should focus on developing country illnesses.
x Chemicals: Undertake a feasibility study to determine which products are appropriate for manufacturing in Nkangala.
x Machinery: Determine the feasibility of machinery manufacturing.
x Automotive industry: Conduct a market analysis to determine whether there will be a demand for Nkangala’s exhaust systems.
x Tourism: A study must be conducted to determine the status quo.
Corridor development opportunities
The N4 Maputo Corridor, N12 Corridor, and the Moloto Corridor hold significant opportunities for the Nkangala District area, both in terms of economic spin-offs from the corridor, and tourism potential. Development along these corridors could include intensive agriculture, agro-processing and hospitality uses. The significance of the railway lines in the district in terms of export opportunities to the Maputo and Richards Bay harbours is also investigated.
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Gert Sibande District Municipality (IDP 2016-2017) Key sectors driving the economy of the district have been identified as:
x Manufacturing;
x Mining;
x Energy generation and supply;
x Agriculture;
x Forestry;
x Tourism; and,
x Transportation and logistics.
In terms of local economic development, the strategies are seated in the following areas:
Development and support for the agricultural sector
x Establishment of commercial farmers;
x Agro-processing facilities; and,
x Establishment of a fresh produce market is being considered to take advantage of value chain opportunities that it presents, e.g. storage, warehousing, transportation, and packaging.
Development Agency
The intention is to establish the Gert Sibande District Municipality Development Agency to ensure strategic focus to deliver the municipality’s mandate for LED.
Potential Economic Development Corridors
Towns and settlements are to be linked to encourage economic development opportunities. Strategic road and rail networks are to be maintained to support internal and external linkages.
Strategic Development Initiatives
A number of strategic development studies are discussed in the IDP, these being:
x Heyshope Dam scoping study;
x District Industrial Development Strategy, focusing on chemicals, plastic fabrication, and pharmaceuticals. Industrial zones and workshops as part of the development initiatives are mentioned;
x Capital or transport equipment and metals sector development;
x Mining Beneficiation Masterplan to encourage benefits and economic empowerment to the surrounding communities;
x New regional information management and tourism exhibition centre, since tourism is rated high in the Mpumalanga Provincial Economic Growth Strategy. Linked to this is responsible tourism development and support and the development of a regional library and exhibition centre;
x Development of a district biodiesel plant;
x SMME/Co-operatives Development Support;
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x Development of a regional airport (Ermelo);
x Promotion of urban renewal programmes within the municipality;
x Promotion of the expansion of the greening economy in the district, since the municipality falls in the Highveld’s high intervention priority area in regard. Environmental degradation because of coal-fired power station is mentioned as one of the drivers for the promotion of clean energy generation. In this regard, the implementation of the Air Quality Management Plan and Pollution Control Plan have been identified as a key performance indicator to advance community well- being;
x Regional training (skills development);
x Establishment of a Regional Sports Complex;
x Building more united, non-racial, integrated and safer communities; and,
x Comprehensive Rural Development Programme. Steve Tshwete Local Municipality (IDP 2012-2017) The following initiatives are of importance:
x The municipality sold a total of 37 industrial sites, and the plan is to make more sites available. A site for an industrial park has been made available. The municipality wants to specifically focus on enhancing the stainless steel sector in Emalahleni.
x In line with the district, the municipality plans to develop a green economy policy, as well as draft green building guidelines.
x Part of the local economic development strategy is to develop agriculture. The promotion of Hydroponic farming is considered. Community Garden Projects was developed with 27 beneficiaries sponsored by Black Wattle Mine.
x Developing a strong SMME sector is a focus area, with specific focus on establishing the following hubs: industrial, agricultural, steel and metal fabrication, logistical. The intention is to make more land available to SMMEs. New malls are planned for Mhluzi and Emalahleni. Land for industrial stands will be acquired. Msukaligwa Local Municipality (IDP 2016-2017) The following plans are identified as key to economic development in the municipality:
x SMME and community development support: The municipality and private sector to work together to develop SMME.
x Future local economic development projects (subject to availability of funding): The municipality has applied for funding at the Department of Environmental Affairs to implement environmental protection and infrastructure projects as part of the Greening Flagship projects.
x Regional fruits and vegetables cold storage and distribution centre: Through funding assistance, establish a regional fruits and vegetables cold storage and distribution centre, which will assist small-scale producers with market opportunities.
x Chicken abattoir: investigate the establishment of a regional chicken abattoir and cold storage to support small-scale chicken producers.
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Municipalities’ Electricity Situation and its Influence on the Execution of LED The indication is that the successful implementation of the plans outlined in the IDPs rely on the coal- fired power station operations continuing, and no consideration is given to the discontinuation of these power stations.
Nkangala District Municipality
The IDP (2016/17-2020/2021) acknowledges that the security of coal supply for some existing coal power stations is increasingly under threat due to better returns for coal miners through exports to India and other Asian countries. The IDP (2016/17-2020/2021) also highlights that a reliable electricity supply depends on a sufficient number of functioning power stations, and a reliable grid network. Increasing local supply failures in some areas requires a more pragmatic corrective approach, according to the IDP (2016/17-2020/2021). Strategic interventions mentioned are the Kusile project and the Komati power station.
Gert Sibande District Municipality
The Gert Sibande IDP (2016-2017) highlights key issues pertaining to electricity, and these are summarised as follows:
x Limited capacity is available to support new developments;
x Backlogs are mostly as a result of informal settlements not yet proclaimed or where township extensions are taking place;
x New houses are not immediately electrified upon completion;
x Electrification in rural areas has slowed down due to a focus on building bulk electrical infrastructure which requires major funding; and,
x Additional bulk infrastructure to eradicate backlogs are required.
Flagship projects that will be implemented as part of the Planning and Economic Development Portfolio, when funds are available, include Chief Albert Luthuli wind energy project, Mkhondo hydro electrical power plant, and power generation from solid waste through gasification.
The IDP (2016-2017) reports that coal haulage trucks transporting coal from the mines to four power stations within the municipal area cause damage to the roads. Maintenance requirements of these roads place additional stress on the budget up to national and provincial level. Strategies are to reduce the number of trucks on the road, improve on overload monitoring, and support the rail developments.
Steve Tshwete Local Municipality and Msukaligwa Local Municipality
The IDPs of the two local municipalities relevant to this study, i.e. Steve Tshwete Local Municipality (IDP, 2012-2017) and Msukaligwa Local Municipality (IDP, 2016-2017), mainly refer to the challenges related to the electrification of informal settlements, and provision of electricity to rural households. Maintenance of infrastructure remains a challenge, more so of aging infrastructure.
Steve Tshwete Local Municipality’s IDP (2012-2017) reports that bulk electricity purchases remain the main increasing factor on operating expenditure totalling R2,7-billion over the next five (5) years with an average rate increase of 12%. The provision of electricity is guided by the Electricity Master Plan that was developed and adopted in 2006. Eskom supplies electricity to the rural and farm dweller homes.
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A shortage of electrical supply capacity from Eskom to newly built council substations is reportedly a challenge. The municipality is in the process of upgrading the main electrical intake substations to Emalahleni, Hendrina, Kwazamokuhle, and Gholfsig. Two new intake substations are being erected in Aerorand and Nasaret (Steve Tshwete IDP, 2012-2017).
Msukaligwa IDP (2016-2017) reports that there are no electricity supply backlogs, apart from provision of electricity to rural households. The two main substations at Ermelo and Wesselton are reportedly insufficient to meet demand, and the supply capacity has to be increased. To address this shortfall, the municipality has commissioned a new substation at Ermelo extension 33. Load shedding is identified as a threat to development, as well as rising Eskom tariffs.
3.4.3 Provincial Growth and Development Strategy The PGDS is a strategic and integrated provincial development plan that provides direction and scope for province-wide development programmes and projects, within the context of a long-term perspective and taking into consideration resources available and constraints.
In essence then, the PGDSs are aimed at A PGDS should build on the approach established providing strategic directives to district and in the NDP and engage with both district and local local municipalities in formulating their more municipalities to deepen the sub-provincial detailed IDPs, and Spatial Development application of the NDP – Department of Provincial Frameworks (SDFs). It is thus essential that and Local Government, 2005. the issues and directives emanating from PGDSs be compatible with the vision, priority areas, and guidelines of SDFs of local and district municipalities.
Mpumalanga has identified six priority areas of intervention as part of the PGDS, namely:
x Economic development (i.e. investment, job creation, business and tourism development and SMME development);
x Infrastructure development (i.e. urban/rural infrastructure, housing and land reform);
x Human resource development (i.e. adequate education opportunities for all);
x Social infrastructure (i.e. access to full social infrastructure);
x Environmental development (i.e. protection of the environment and sustainable development); and,
x Good governance (i.e. effective and efficient public sector management and service delivery).
3.4.4 NDP Priorities and SDGs 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 plan also envisages that by 2030 South Africa will have an adequate supply of electricity and liquid fuels to ensure that economic activity and welfare are not disrupted, and that at least 95.0% of the population will have access to grid or off-grid electricity (South African Government, Pocket Guide to South Africa 2015-2016).
The NDP priorities and SDGs that are relevant to this study were identified in consultation with Eskom and are listed in Table 3-3. The linkage of the SDGs with the option selection criteria as defined in section 5 is illustrated in column 4 of Table 3-3.
.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 38 Table 3-3: Relevant NDP priorities and SDGs
Key Focus National Sustainable Development Goals (SDGs) Impact Assessment and Options Analysis criteria Area Development Plan Priorities (NDP) Social Social Protection Goal 1 : End poverty Employment and procurement: Considers the levels of employment and Goal 2 : End hunger and achieve food security procurement at each power station. Nation Building and Goal 5 : Gender equality and empower women LED and CSI: Considers the power station's CSI and LED activities. Social Cohesion and girls Goal 16 : Peaceful and inclusive societies Human Settlements Goal 6 : Access to water and sanitation Service Delivery: Considers service delivery activities of the power station. Goal 7 : Access to affordable, reliable and These services include water, electricity, sanitation, and refuse removal. sustainable energy Considers the investigation of alternative energy options to abate emissions. Goal 11: Inclusive cities and human settlements Regional and National Energy Investment: Opportunities for investment into renewable and/or alternative energy options at a national level.
Healthcare Goal 3 : Ensure healthy lives and promote well- LED and CSI: Considers the power station's CSI and LED activities. being for all Education, Training and Goal 4 : Inclusive and equitable quality education LED and CSI: Considers the power station's CSI and LED activities. Development Economic Economy and Goal 1 : End poverty Employment and procurement: Considers the levels of employment and Employment Goal 2 : End hunger and achieve food security procurement at each power station.
Economic Infrastructure Goal 9 : Build resilient infrastructure x LED and CSI: Considers the power station's CSI and LED activities. x Regional and National Contribution: Considers the broader socio- economic implications of each option such as pressure on the national power grid, GDP contribution and local and regional economic multipliers. x Coal Sourcing: Considers the various coal-sourcing options. Particular attention is given to trucking of coal.
Environment Environmental Goal 13 : Action to combat climate change and its x Environmental Impacts: Considers the power station's environmental Sustainability and impacts impacts on the socio-economic context locally, regionally and nationally. Resilience Goal 15 : Protect sustainable use of terrestrial Includes air emissions, water pollution, water usage and dust generated ecosystems, manage forests and prevent land in the utilisation of PF and CFBC technologies. Considers the power degradation stations exceeding the allocated emissions cap and taking on a larger responsibility for overall emissions into the atmosphere and the climate change phenomenon. x Land take: Considers the potential for land take for additional ash dam requirements .
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4 Stakeholder Analysis This section briefly addresses stakeholder profiling, stakeholder engagement protocols, and stakeholder issues. The objectives of including these aspects are discussed in the sub-sections ahead.
Stakeholder Profiling During the stakeholder identification exercise, a stakeholder analysis matrix was developed to determine:
x The extent to which the project will impact stakeholders, and/or the extent to which stakeholders have an interest in the project;
x The degree of influence that stakeholders might have over the progress (and even success) of the project; and,
x The nature of the engagement required, based on the impact/influence and impact scales of stakeholders, i.e. consult, collaborate, inform.
As illustrated in Figure 4-1, engagement with stakeholders should intensify as impact/interest and influence increase. The following criteria were used to place stakeholders within the matrix:
x Zone of influence: Physical location relative to the project site and potential impacts. Generally, the closer stakeholders live to a project site the higher their interest and the potential impacts of the project;
x Stakeholder values: The value stakeholders attach to the area that might be affected by the intervention. This includes aspects such as livelihoods, resilience, land use, ownership, heritage and sense of place; and,
x Jurisdiction: The mandate/influence of institutions over regulatory and public opinion, with attention to the area within the ZoI.
Figure 4-1: Stakeholder analysis matrix According to Figure 4-1, depending on the stakeholder interest in the project and the level of impact by the project, several engagement protocols should be considered as follows (Table 4-1):
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 40 Table 4-1: Stakeholder engagement protocol
Type of stakeholder Level of Engagement Goal (s) Communication Nature of relationship engagement Bystander Inform Inform or educate One-way communication from the company to Short-term relationship with stakeholders, Low interest/low impact and stakeholders the stakeholder, there is no invitation to reply usually for the duration of the project. low degree of influence or platform to engage from stakeholder. Influencer Consult Gain information and Limited two-way communication: Eskom asks Long-term involvement. The company Low interest/ low impact and feedback from stakeholders questions and the stakeholders answer. commits to ongoing information high degree of influence to inform decisions made dissemination, capturing and responding to internally stakeholder issues and concerns, incorporate stakeholder inputs into decision-making Follower process, and provide feedback on decisions High interest/ high impact and taken. low degree of influence - Collaborate Partner with or convene a Two-way, or multi-way between company/ies Long- term involvement, with the company Consult and collaborate network of stakeholders to and stakeholders. Learning, negotiation, and seeking direct input, advice and participation develop mutually agreed decision making on both sides. Stakeholders of a stakeholder. Regard stakeholder as a solutions and joint plan of work together and influence each other for partner and advisor. action joint action and resolution of issues.
Shaper Collaborate Partner with or convene a Two-way, or multi-way between company/ies Long- term involvement, with the company High interest/ high impact and network of stakeholders to and stakeholders. Learning, negotiation, and seeking direct input, advice and participation high degree of influence develop mutually agreed decision making on both sides. Stakeholders of a stakeholder. Regard stakeholder as a solutions and joint plan of work together and influence each other for partner and advisor. action joint action and resolution of issues.
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Key stakeholders identified in the key informant interviews include:
x Government (National, Provincial, District and Local);
x Host communities;
x Competent and commenting authorities;
x Neighbouring mines/businesses (e.g. Transnet);
x Non-Governmental Organisations (NGOs);
x Business forums;
x Transportation forums (e.g. trucking companies);
x Internal stakeholders; and,
x Neighbouring farmers. The high-level stakeholder analysis illustrated in Figure 4-2 indicates similar stakeholder relationships and patterns amongst the four power stations. However, some differentiators have been identified and are highlighted here. It was noted that Camden has less interaction with influencers (specifically NGO’s), when compared to the other three power stations. In addition, the shapers in all four power stations are made up largely by governmental structures, many of whom play a compliance role. Stakeholder forums were identified across all four power stations’, ZoI, with forums representative of adjacent farmers, municipalities and receiving communities.
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Figure 4-2: Stakeholder mapping
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Stakeholder Issues Current issues identified by external stakeholders were discussed with the internal power station stakeholders. The purpose of identifying these risks was to inform the selection of the relevant options based on existing issues and how the power stations currently manage them. SRK did not receive any grievances or comments and response reports from the power stations. As a result, the stakeholder issues stated in the report are as provided verbally by the internal and power station stakeholders.
These issues were considered in the impact assessment and options analysis. Most of the issues mentioned related to environmental impacts such as water and air contamination, as well as employment and procurement opportunities at the power stations. With the power stations sourcing most of their labour from their immediate host communities, there are still dissatisfactions by these communities that contractors do not employ locally, especially during scheduled power outages.
Figure 4-3 provides a list of stakeholder issues per power station. The number 0 means that a particular issue has not been mentioned at a power station; while a 1 means that, a particular issue was mentioned.
According to this diagram, the following issues were commonly identified across all the four power stations:
x Host communities not being able to differentiate between power station impacts and impacts from other industries;
x Groundwater pollution;
x Air pollution (emission related); and,
x Air pollution (dust related). Three out of four power stations identified water pollution as a stakeholder issue. These issues should form the basis for engaging with communities and surrounding stakeholders at the power stations should any of the options under investigation be implemented.
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Figure 4-3: Stakeholder issues per power station
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 45 5 Impact Assessment and Options Analysis Following the completion of the compilation of the macro-economic and socio-economic baseline, the review of strategies and plans, and the stakeholder analysis, SRK completed the identification and assessment of the potential changes and impacts of each of the three options for each power station.
The Pugh Matrix Method, a quantitative, multi-dimensional decision analysis technique, is used to compare the three options against the current baseline in order to identify a preferred option. To do this, a basic decision matrix was developed, consisting of a set of weighted criteria to rate the potential options against. Seven criteria were identified and further expanded, ending with 19 sub- criteria.
The performance of each option for each power station was rated against these sub-criteria on a scale from 1 to 5, as per Table 5-1.The rating was multiplied by the weighting, to give an overall score. The weighting was done on a scale from 1 to 3, where a category with a weighting of 3 is more important than a category with a weighting of 1. The maximum score that can be reached is 15, and the minimum score is 1 as per Table 5-2. The higher the final score of sub-criteria, the better/more ideal the change/impact of the option in regards to the sub-criteria under assessment.
Table 5-1: Rating definitions
Rating Definition 1 The power station will be responsible for significant and sustained negative impact/change 2 The power station will be responsible for a small negative impact/change 3 The power station will be responsible for limited positive or negative socio-economic impacts/changes 4 The powers station will be responsible for positive (possibly intermittent) socio-economic impacts/changes 5 The power station will be a significant contributor to the socio-economic environment
Table 5-2: Weighting multiplied by rating scores
3 3 6 9 12 15
2 2 4 6 8 10 Weighting 1 1 2 3 4 5
1 2 3 4 5
Rating
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 46 As mentioned, the final score of each sub-category was completed by multiplying the weighting by the rating. The final rating score was placed into three categories, as per Table 5-3.
Table 5-3: Final score definition
Score Definition Poor - The outcome will result in overall negative socio-economic changes/impacts. Increased 1-5 grievances and community/stakeholder dissatisfactions, and stakeholder instability, could occur. Medium - 6-10 The outcome will result in manageable socio-economic changes/impacts. Some grievances may still occur. Good - 11-15 The outcome will have potentially positive socio-economic results. As mentioned, seven impact categories with 19 impact sub-categories in total were identified to assess the options against. These are:
x Employment and Procurement Impacts o Direct employment – current and expected total number of permanent employees and contractors; and,
o Procurement – current and expected services provided to the power stations such as trucking, catering, maintenance, etc.
x Environmental Impacts o Air emissions – current and expected reported grievances related to stack emissions based;
o Fugitive dust – current and expected reported grievances related to dust emanating from the ash dams and stockpiles;
o Surface water pollution – current and expected reported grievances related to contamination of surrounding water sources;
o Ground water pollution – current and expected reported grievances related to contamination of groundwater due to seepage; and,
o Water usage – current and expected water requirements for the power station.
x CSI and Training Impacts o CSI contribution – current and expected contribution of the Eskom Foundation to the socio- economic development of the area; and,
o Education and training – current and expected training and upskilling of employees per site.
x Service Delivery Impacts o Water – current and expected provision of potable water to local communities and municipalities;
o Electricity – current and expected provision of electricity to local communities and the municipalities;
o Sanitation – current and expected provision of water treatment works to the municipality and maintenance of infrastructure; and,
o Waste removal – current and expected provision of waste removal services and land fill sites.
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x Coal Sourcing Impacts o Trucking – current and expected transportation of coal from source to stockpiles (negative impacts related to safety, environment, damage to roads and nuisance impacts).
x Land Take Impacts o Current and expected environmental impacts linked to the potential loss of biodiversity and wetland health; and,
o Current and expected socio-economic impacts linked to potential economic and/ physical displacement.
x Regional and National Economic Contribution Impacts o Power supply – current and expected capacity available to the national power grid;
o GDP contribution – current and expected contribution to the GDP; and,
o Local and regional economic multipliers – current and expected cumulative contribution to the local economy.
The options analysis against these criteria is summarised in this section, and the details are documented in Appendix E. These options, as discussed in section 1 of this report, are listed again below:
x Option 1: Lifex and Modernisation (Refurbishment);
x Option 2 : Repower with Biomass or Gas;
x Option 3: Rebuild as PF or CFBC (Demolish and rebuild); and,
x Option 4: Do not renew (Decommission).
Hendrina Power Station Hendrina power station is analysed against the assessment criteria in the table below, as illustrated in Figure 5-1.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 48 Table 5-4: Hendrina power station options analysis
Socio- Hendrina Overall Assessment economic Criteria Employment Options 1 and 3 will result in a medium to high positive impact. Hendrina power station and currently employs a total of 690 employees, 670 of which reside in Pullenshope, which is Procurement ± 4km away from the power station. Pullenshope is a settlement that came into existence to house Eskom employees. No labour will be lost for Options 1 and 3, and continuous employment will be maintained for an additional 50 years. However, both Options 1 and 3 will not require permanent employees during the refurbishment and rebuilding process. The impact on employees will be higher for Option 3 (Fleet Renewal Assumptions, 2016). Additionally, Hendrina provides procurement opportunities for coal trucking and several other businesses such as coal sourcing, construction and engineering, catering, accommodation, cleaning services etc., which in turn provide spin-off employment opportunities to the local and regional communities. Sourcing of components for the refurbishment and rebuild (Options 1 and 3) could potentially lead to additional jobs, although for a short period. Implementing Option 4 at Hendrina power station will lead to loss of employment for the community of Pullenshope (670), which, with a household size of 3.3 in Steve Tshwete Local Municipality, could potentially affect over 2000 dependents of these employees. This also has a potential to result in dissatisfactions in the surrounding communities, loss of businesses, especially coal trucking, transportation and other services, as well as loss of income to the local GDP from employee taxes. However, on a regional and national scale, this impact is moderate, especially if the decommissioned stations will be replaced elsewhere, and more job opportunities will be created for the benefit of the country. Environmental Options 1 and 3 will result in a continuation in environmental impacts, particularly fugitive Impacts dust with a rating of 2 and surface water pollution with a rating of 4, if not properly managed. Due to the continuation of wet cooling for Option 1, a lot more water will be used as compared to Option 3, which will use a dry cooling system, resulting in water shortages and/or restrictions for other users. On the other hand, groundwater and surface water pollution from operations of the power station will further limit the amount of potable water available for domestic use. Because Hendrina power station supplies potable water to the Pullenshope community and Hendrina, demand for additional water at the power station might affect these communities, especially during drought periods and water restrictions. Option 4 will result in a medium rating for air emissions, while water usage for the operation will reduce significantly, and can be freed up for continued allocation to other water users. LED and CSI Options 1 and 3 will allow Eskom Foundation to continue with these initiatives, as well as the allocation to each power station with a CSI fund. However, should Option 4 be implemented, it is possible for all these initiatives to cease, thus leading to increased levels of vulnerability for the organisations and individuals currently supported by these activities. Service Hendrina power station supplies potable water, electricity and waste removal services to Delivery Pullenshope and Woestalleen mines. Water and electricity are supplied to the municipality who then provide it to the community. The power station assists with waste removal and utilises their landfill site. Sewerage is treated at the Eskom treatment plant. Options 1 and 3 have the potential to maintain or increase the provision of services to the surrounding communities and the municipality, resulting in a positive socio-economic impact to the area. Option 4 on the other hand, might lead to the services currently enjoyed by the community being transferred to the municipality, thus potentially limiting access of these services for the community. Coal Sourcing Hendrina power station sources its coal from the surrounding mines of Optimum and Woestalleen. Some coal is also trucked in to ensure necessary stockpile levels are maintained. On the other hand, the negative environmental impacts of trucking coal into the power station i.e. damage to roads, grievances by local farmers and communities could potentially decrease should Option 4 be implemented. Land Take Option 1 will require additional land for the storage of ash, gypsum and limestone. Eskom does not have land available within the current footprint, and land will have to be acquired from external stakeholders. Option 3 will also require access to additional land for rebuilding, thus triggering the environmental and socio-economic impacts on land that is not on the existing footprint of the power station. Impacts of land take could result in economic and/or physical displacement, which could potentially lead to further impacts such as community
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Socio- Hendrina Overall Assessment economic Criteria grievances, deterioration of relationships between the power station and communities, disturbance/ loss of existing livelihoods and vulnerability of those affected. Option 4 will not require additional land and is therefore the most preferred option from this sub-category’s point of view. Local and Options 1 and 3 will allow for Hendrina power station to continue contributing to the national Regional and regional power supply in the area, thus maintaining the status quo. Economic With Option 4, it is possible that Hendrina will no longer contribute towards the national Multipliers grid thus reducing capacity and access. Contribution to the economy will also decline significantly. Other service providers that are reliant on the power station for business might also get out of business, further compounding the issue of unemployment and poverty in the region. Although there may be a proliferation of services related to decommissioning, it will be on a small scale compared to opportunities afforded by Options 1 and 3. Recommended option based on social situation analysis: x Options 1 and 3 are the preferred options in that their implementation will lead to continued maintenance of current employment, as well as creating new employment opportunities into the future. Furthermore, the CSI spend through the Eskom Foundation will also continue, thus providing the beneficiaries with skills to increase their employability, as well as access to other livelihoods opportunities such as small businesses. x However, from an environmental point of view, these two options differ in that Option 1 will continue to use more water due to its wet cooling system while Option 3 will be using a dry cooling system. Both options however reduce the emissions of CO 2, sulphur dioxide (SO x) , and nitrogen dioxide (NO x due to the installation of FGD. x In terms of the relationship between the power station and the communities, these Options 1 and 3 are less likely to result in community dissatisfactions that would normally occur during job losses associated with decommissioning. x From a land take point of view, Option 1 is the most preferred option in that it will not require additional land, whereas Option 3 will require additional land for ash, limestone and gypsum. Due to the marginal difference between Option 1 and Option 3, and the fact that both score differently for each of the criteria, it is important that other studies, i.e. financial, engineering and technical are considered in making a decision to choose either of the two.
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Figure 5-1: Hendrina power station option analysis
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Arnot Power Station Arnot power station is analysed against the assessment criteria in the table below, as illustrated in Figure 5-2.
Table 5-5: Arnot power station options analysis
Socio- Arnot Overall Assessment economic Criteria Employment Arnot power station currently employs a total of 710 employees, 94.0% (666) residing in and Rietkuil. Arnot power station also provides procurement opportunities for coal trucking and Procurement several other businesses, which in turn provide employment to about 300 people. No labour will be lost for Options 1 and 3, and continuous employment will be maintained for an additional 50 years. Coal was previously supplied to Arnot from Exxaro (this mine has now closed). Arnot power station now trucks in all of their coal requirements (sourced from Glencore and Goedehoop mines). However, both Options 1 and 3 will not require permanent employees during the refurbishment and rebuilding process. The impact on employees will be higher for Option 3 (Fleet Renewal Assumptions, 2016). Options 1 and 3 will result in a medium to good positive impact to the local communities, current employees and business service providers of the power station such as coal sourcing, construction and engineering, catering, accommodation, cleaning services etc, which in turn provide additional jobs regionally and locally. During the construction phase of the units being refurbished or rebuilding the power station (Options 1 and 3), it is possible that procurement could increase, thus leading to more people being employed although for a shorter period of time. Implementing Option 4 at Arnot power station could lead to job losses for current employees in the community of Rietkuil and surroundings (666), which, with a household size of 3.3 in Steve Tshwete Local Municipality, could potentially affect over 2 000 dependents of these employees. Job losses could potentially result in dissatisfactions in the surrounding communities, loss of businesses, especially coal trucking, transportation and other services, as well as loss of income to the local GDP from employee taxes. However, on a regional scale, this impact is moderate, especially if the decommissioned stations will be replaced elsewhere, and more job opportunities will be created for the benefit of the country. Environmental Options 1 and 3 may result in continuation in environmental impacts, particularly fugitive Impacts dust and surface water pollution, which have ratings of 3 and 4 respectively and could both lead to continued negative impact to the surrounding community, if not managed. Water usage for Option 1 will be higher as it will be continuing with the wet cooling systems, whereas Option 3 will be using dry cooling for the installation of FGD technologies that will enable Eskom to meet new emissions requirements. As a result, Option 1 will potentially result in water shortages and/or restrictions for other users especially in the wake of climate change and resultant impacts. Option 4 will result in a medium rating for air emissions and fugitive dust, while water usage for the operation will reduce significantly, and can be freed up for continued allocation to other water users. There will however, still be residual groundwater and air quality impacts from the existing waste facilities. LED and CSI Options 1 and 3 will allow the Eskom Foundation to continue with these initiatives, as well as the allocation to each power station with a CSI fund. However, should Option 4 be implemented, it is possible for all these initiatives to cease, thus leading to increased levels of vulnerability for the organisations and individuals currently supported by these activities. Service Arnot power station supplies potable water, and electricity to Rietkuil and Arnot mines at Delivery heavily subsidised rates. Other services such as waste removal are managed by the municipality. All upkeep and maintenance are also well managed by the municipality. Options 1 and 3 have the potential to maintain or increase the provision of services to the Rietkuil and Arnot mine, resulting in a positive socio-economic impact to the area. Option 4 on the other hand, might lead to the services currently enjoyed by the community being transferred to the municipality, potentially limiting access of these services for the community should there be capacity constraints at the municipality. Coal Sourcing Arnot power station sources its coal from Goedehoop mine. Some coal is also trucked in to ensure necessary stockpile levels are maintained. On the other hand, the negative environmental impacts of trucking coal into the power station i.e. damage to roads,
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Socio- Arnot Overall Assessment economic Criteria grievances by local farmers and communities, social ills associated with trucking such as prostitution could potentially decrease should Option 4 be implemented. Land Take Option 1 will require additional land for the storage of ash, gypsum and limestone. Eskom does not have land available within the current footprint, and land will have to be acquired from external stakeholders. Option 3 will require access to additional land for rebuilding, thus triggering the environmental and socio-economic impacts on land that is not on the existing footprint of the power station. Impacts of land take could result in economic and/or physical displacement, which could potentially lead to further impacts such as community grievances, disturbance of relationships between the power station and communities, disturbance/loss of existing livelihoods and vulnerability of those affected. Option 4 will not require additional land and is therefore the most preferred option from this sub-category’s point of view. Local and Options 1 and 3 will allow for Arnot power station to continue contributing to the national Regional and regional power supply in the area, thus maintaining the status quo. With Option 4, it is Economic possible that Arnot power station will no longer contribute towards the national grid thus Multipliers reducing capacity and access. Contribution to the economy will also decline significantly. Other service providers that are reliant on the continued operation of the power station for business might also get out of business, further compounding the issue of unemployment and poverty in the region. Although there may be a proliferation of services related to decommissioning, it will be on a small scale compared to opportunities afforded by Options 1 and 3. Recommended option based on social situation analysis: x Options 1 and 3 are the preferred options in that their implementation will lead to continued maintenance of current employment levels, as well as creating new employment opportunities into the future. Furthermore, the CSI spend through the Eskom Foundation will also continue, thus providing the beneficiaries with skills to increase their employability, as well as access to other livelihoods opportunities such as small businesses. x However, from an environmental point of view, these two options differ in that Option 1 will continue to use more water due to its wet cooling system while Option 3 will be using a dry cooling system. Both options however reduce the emissions of CO 2, SO x, and NO x, due to the installation of FGD. x In terms of the relationship between the power station and the communities, Options 1 and 3 are less likely to result in community dissatisfactions that would normally occur during job losses associated with decommissioning. x From a land take point of view, Option 1 is the most preferred option in that it will not require additional land, whereas Option 3 will require additional land for ash, limestone and gypsum. Due to the marginal difference between Option 1 and Option 3, and the fact that both score differently for each of the criteria, it is important that other studies, i.e. financial, engineering and technical are considered in making a decision to choose either of the two.
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Figure 5-2: Arnot power station options analysis
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Komati Power Station Komati power station is analysed against the assessment criteria in the table below, as illustrated in Figure 5-3.
Table 5-6: Komati power station options analysis
Socio- Komati Overall Assessment economic Criteria Employment Options 1 and 3 will result in a medium to good positive impact on the local and communities, current employees and business service providers of the power Procurement station. Komati power station currently employs a total of 470 employees, 439 (93.0%) of which reside in Emalahleni. However, both Options 1 and 3 will not require permanent employees during the refurbishment and rebuilding process. The impact on employees will be similar for both options (Fleet Renewal Assumptions, 2016). Additionally, Komati provides procurement opportunities for coal trucking and several other businesses such as coal sourcing, construction and engineering, catering, accommodation, cleaning services etc, which in turn provide further employment opportunities locally and regionally. No labour will be lost for Option 1 and 3, and continuous employment will be maintained for an additional 50 years. During the construction phase of the units being refurbished or the rebuilding of the power station (Options 1 and 3), it is possible that procurement could increase, thus leading to more people being employed although for a shorter period of time. Implementing Option 4 at Komati power station could lead to job losses for the communities within the ZoI. Currently Komati employs a total of 439 people from the local areas, which, with a household size of 3.3 in Steve Tshwete Local Municipality, could potentially affect over 1 500 dependents of these employees. Job losses could potentially result in dissatisfactions in the surrounding communities, loss of businesses, especially coal trucking, transportation and other services, as well as loss of income to the local GDP from employee taxes. However, on a regional scale, this impact is moderate, especially if the decommissioned stations will be replaced elsewhere, and more job opportunities will be created for the benefit of the country. Environmental Options 1 and 3 will result in continuation in environmental impacts, particularly air Impacts emissions and groundwater pollution with a rating of six and a medium impact to the surrounding communities, if not properly managed. Although FGD will be installed to abate emissions, this installation will require a lot more water since the wet cooling system will continue. This will potentially result in water shortages and/or restrictions for other users. Surface water pollution and fugitive dust remain high, with grievances received from local farmers who also claimed that the power station was responsible for fluoride pollution in the water, which was killing cattle. Option 4 will result in a medium rating for air emissions and fugitive dust, while water usage for the operation will reduce significantly, and can be freed up for continued allocation to other water users. LED and CSI Options 1 and 3 will allow Eskom Foundation to continue with these initiatives, as well as the allocation to each power station with a CSI fund. However, should Option 4 be implemented, it is possible for all these initiatives to cease, thus leading to increased levels of vulnerability for the organisations and individuals currently supported by these activities. Service Komati power station supplies potable water, and electricity to Komati at heavily subsidised Delivery rates. Other services such as waste removal are managed by the municipality. All upkeep and maintenance are also well managed by the municipality. Options 1 and 3 have the potential to maintain or increase the provision of services to the Komati Village and the municipality, resulting in a positive socio-economic impact to the area. Option 4 on the other hand, might lead to the services currently enjoyed by the community being transferred to the municipality, thus potentially limiting access of these services for the community due to possible capacity constraints at the municipality.
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Socio- Komati Overall Assessment economic Criteria Coal Sourcing Komati power station sources its coal from the Koornfontein mine (Optimum) and surplus trucked in. Some coal is also trucked in to ensure necessary stockpile levels are maintained. On the other hand, the negative environmental impacts of trucking coal into the power station i.e. damage to roads, grievances by local farmers and communities, social ills associated with trucking such as prostitution could potentially decrease should Option 4 be implemented.
Land Take Option 1 will require additional land for the storage of ash, gypsum and lime. Eskom does not have land available within the current footprint, and land will have to be acquired from external stakeholders. Option 3 might also require access to additional land for rebuilding, thus triggering the environmental and socio-economic impacts on land that is not on the existing footprint of the power station. Impacts of land take could result in economic and/or physical displacement, which could potentially lead to further impacts such as community grievances, disturbance of relationships between the power station and communities, disturbance/ loss of existing livelihoods and vulnerability of those affected. Option 4 will not require additional land and is therefore the most preferred option from this point of view. Local and Options 1 and 3 will allow for Komati power station to continue contributing to the national Regional and regional power supply in the area, thus maintaining the status quo. With Option 4, it is Economic possible that Komati will no longer contribute towards the national grid thus reducing Multipliers capacity and access. Contribution to the local economy in terms of payments of rates and taxes to the municipality will also decline significantly. Other service providers that are reliant on the power station for business might also get out of business, further compounding the issue of unemployment and poverty in the region. Although there may be a proliferation of services related to decommissioning, it will be on a small scale compared to opportunities afforded by Options 1 and 3. Recommended option based on social situation analysis: x Options 1 and 3 are the preferred options in that their implementation will lead to continued maintenance of current employment, as well as creating new employment opportunities into the future. Furthermore, the CSI spend through the Eskom Foundation will also continue, thus providing the beneficiaries with skills to increase their employability, as well as access to other livelihoods opportunities such as small businesses. x However, from an environmental point of view, these two options differ in that Option 1 will continue to use more water due to its wet cooling system while Option 3 will be using a dry cooling system. Both options however reduce the emissions of CO 2, SO x, and NO x due to the installation of FGD. x In terms of the relationship between the power station and the communities, Options 1 and 3 are less likely to result in community dissatisfactions that would normally occur during job losses associated with decommissioning. x From a land take point of view, Option 1 is the most preferred option in that it will not require additional land, whereas Option 3 will require additional land for ash, limestone and gypsum. Due to the marginal difference between Option 1 and Option 3, and the fact that both score differently for each of the criteria, it is important that other studies, i.e. financial, engineering and technical are considered in making a decision to choose either of the two.
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Figure 5-3: Komati power station options analysis
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Camden Power Station Camden power station is analysed against the assessment criteria in the table below, as illustrated in Figure 5-4.
Table 5-7: Camden power station options analysis
Socio- Camden Overall Assessment economic Criteria Employment Options 1 and 3 will result in a medium to high positive impact. Camden power station and currently employs a total of 373 employees, 363 of them coming from within Mpumalanga Procurement Province. Although 351 of employees reside in Ermelo, it is not clear if all of them are permanent residents or if they have migrated to the area to seek employment. No labour will be lost for Options 1 and 3, and continuous employment will be maintained for an additional 50 years. However, both Options 1 and 3 will not require permanent employees during the refurbishment and rebuilding process. The impact on employees will be similar for both options (Fleet Renewal Assumptions, 2016). With the life span increasing to 70 years, the employment created and procurement opportunities will be prolonged. Additionally, Camden provides procurement opportunities for coal trucking and several other businesses, which in turn provide employment to about 300 people. During the construction phase of the units being refurbished or the power station being rebuilt (Options 1 and 3), it is possible that procurement could increase, thus leading to more people being employed although for a shorter period of time. Option 4 will result in a significant loss of employment for the current employees of Camden, which will potentially result in dissatisfactions in the surrounding communities, loss of businesses, especially coal trucking, transportation and other services, as well as loss of income to the local GDP from employee taxes. However, on a regional and national scale, this impact is moderate, especially if the decommissioned stations will be replaced elsewhere, and more job opportunities will be created for the benefit of the country. Environmental Options 1 and 3 will result in continuation in environmental impacts, which will be more Impacts than the status quo. Fugitive dust and surface water pollution will be the same for all the three options. However, surface water pollution for all the options remains a big environmental issue, with a rating of 3 out of 15. Option 1 will use a lot more water than the other 2 options, which might result in water shortages and/ or restrictions for other users. With Option 4, environmental impacts of air emissions, fugitive dust will decrease, whereas water usage for the operation will reduce significantly, and can be freed up for other users in the region such as mining, farming and domestic use. LED and CSI Options 1 and 3 will allow Eskom Foundation to continue with these initiatives, as well as the allocation to each power station with a CSI fund. However, should Option 4 be implemented, it is possible for all these initiatives to cease, thus leading to increased levels of vulnerability for the organisations and individuals currently supported by these activities. Service Camden power station supplies water to the Vunene Mine and to Camden Village Army Delivery Base, with the Department of Public Works paying for this service for the Army Base. Water from Camden is not supplied to the Municipality and the community. Not all other services are provided by Camden. As a result, none of the options will have a negative impact to the community and Municipality, thus maintaining the existing status quo. On the other hand, should the life of the power station be extended due to Options 1 and 3, there is a possibility of the power station staring to provide these services to the municipality, or contributing. Coal Sourcing Coal from Camden is sourced from Vunene Mine, ± 12km from Camden. In total, road trucks- meaning coal trucks moving coal from Vunene to Camden (12km distance) are 200 to 300 per day, while trucks offloading the train internally at Camden (no public road) are 300 to 400 per day. This in total processes about 700 trucks per day. On the other hand, the negative environmental impacts of trucking coal into the power station i.e. damage to roads, grievances by local farmers and communities could potentially decrease should Option 4 be implemented. Land Take Option 1 will require additional land for the storage of ash, gypsum and lime. Eskom does not have land available within the current footprint, and land will have to be acquired from external stakeholders.
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Socio- Camden Overall Assessment economic Criteria Option 3 might also require access to additional land for rebuilding, thus triggering the environmental and socio-economic impacts on land that is not on the existing footprint of the power station. Impacts of land takes could result in economic and/or physical displacement, which could potentially lead to further impacts such as community grievances, disturbance of relationships between the power station and communities, disturbance/loss of existing livelihoods and vulnerability of those affected. Option 4 will not require additional land and is therefore the most preferred option from this sub-category’s point of view. Local and Options 1 and 3 will allow for Camden power station to continue contributing to the national Regional and regional power supply in the area, thus maintaining the status quo. With Option 4, it is Economic possible that Camden will no longer contribute towards the national grid thus reducing Multipliers capacity and access. Contribution to the local economy in terms of payments of rates and taxes to the Municipality will also decline significantly. Other service providers that are existent due to the power station might also get out of business, further compounding the issue of unemployment and poverty in the region. Although there may be a proliferation of services related to decommissioning, it will be on a small scale compared to opportunities afforded by Options 1 and 3. Recommended option based on social situation analysis: x Options 1 and 3 are the preferred options in that their implementation will lead to continued maintenance of current employment, as well as creating new employment opportunities into the future. Furthermore, the CSI spend through the Eskom Foundation will also continue, thus providing the beneficiaries with skills to increase their employability, as well as access to other livelihoods opportunities such as small businesses. x However, from an environmental point of view, these two options differ in that Option 1 will continue to use more water due to its wet cooling system while Option 3 will be using a dry cooling system. Both options however reduce the emissions of CO 2, SO x, and NO x, due to the installation of FGD. x In terms of the relationship between the power station and the communities, Options 1 and 3 are less likely to result in community dissatisfactions that would normally occur during job losses associated with decommissioning. x From a land take point of view, Option 1 is the most preferred option in that it will not require additional land, whereas Option 3 will require additional land for ash, limestone and gypsum. Due to the marginal difference between Option 1 and Option 3, and the fact that both score differently for each of the criteria, it is important that other studies, i.e. financial, engineering and technical are considered in making a decision to choose either of the two.
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Figure 5-4: Camden power station options analysis
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Rapid Vulnerability/Self-sustenance Assessment of Local ZoI Due to the pre-feasibility level of this study, as well as the socio-economic and situational similarities between the power stations, determining vulnerability and communities’ resilience to the changes brought about by each option for each of the power stations will be discussed here.
In summary, the communities adjacent to all the power stations have adaptive capacities ranging from low to moderate. As such, for Options 1 and 3 communities vulnerability would ultimately be lower. However, Option 4 will increase the vulnerability of the communities, especially due to the lack of skills, high dependency rates, etc. The common patterns that might develop would be the outmigration of the retrenched employees to the new build power stations in Limpopo Province or to Gauteng Province, or elsewhere in search of employment.
For the purpose of this report, the following definitions apply to this assessment:
x Community: Social system interactions encompassed within a definite geographic space;
x Vulnerability: State of susceptibility to harm, powerlessness, and marginality of both physical and social systems; and,
x Adaptive capacity: Ability of a social system to respond/recover and/or absorb impacts 12 . The vulnerability assessment is not reflected as an assessment criterion, since it will result in a double count of aspects contained in the assessment criteria identified. Based on the information in this report (506503/F1) the following existing stresses to the system have been noted:
Existing stresses to the system
x Dependency on power stations for service delivery;
x Significant levels of poverty, particularly in communities surrounding Camden;
x Poor housing infrastructure: a large percentage of the communities living in informal settlements including Kwazamakuhle;
x High local unemployment;
x Low skills level; and,
x “one sector economy”: i.e. reliance on coal supply and energy generation. Following careful consideration of the above existing socio-economic stresses and projected changes, as well as narrative supplied in the socio-economic baseline, each power station’s vulnerability and adaptive capacity is dealt with in the sub sections to follow.
5.5.1 Hendrina Power Station Hendrina is an important local employer and the second biggest employer of the three power stations after Arnot, directly employing 670 people from Pullenshope alone. Should the power station be decommissioned, a large percentage of the Pullenshope community will be without a job, many of whom are breadwinners for large households. This, along with a dependency on the power station for the delivery of potable water, electricity and sanitation leave the Pullenshope community highly vulnerable to change, specifically decommissioning. Pullenshope has grown around the Hendrina power station, although it is also home to a number of people employed in other economic activities, including mining and logistics. It can thus be assumed that the adaptive capacity of the Pullenshope community can be deemed low to moderate, however, the broader receiving
12 Definitions sourced at: Colburn, L. (2011). Resilience, vulnerability, adaptive capacity and social capital.
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Important to note is the growth and existence of informal settlements in the greater receiving area of the Hendrina power station, specifically the Kwazamakuhle township. Limited socio-economic conditions, legacies of segregated South Africa, and ongoing reliance on parastatals and non- governmental entities for the maintenance and formalisation thereof continue to hinder the stabilisation of informal settlements in the receiving communities, which reduce the overall adaptive capacity of the Hendrina power station’s receiving community. As with Arnot, Hendrina’s receiving communities stands to lose larger socio-economic standpoints, specifically from an employment and service delivery perspective. Options 1 and 3 would suggest the least impact in a socio- economic vulnerability sense when compared to Option 4, however, greater thought and action would increase adaptive capacity in terms of dependency on a “single” economy and non-diversified economic activities.
5.5.2 Arnot Power Station The towns of Arnot and Rietkuil were initially developed to accommodate employees at the Arnot power station, later growing to accommodate employees on the surrounding mines as well. As such, both towns are still reliant on the power station for direct and indirect employment, as well as service delivery. Arnot provides sanitation, potable water and electricity to both Rietkuil and Arnot Villages, as well as maintenance of parks and sidewalks in Rietkuil. As a result, the communities have come to rely heavily on the power station for socio-economic opportunities and services. This has resulted in a significant dependency on the power station, which renders the communities vulnerable to changes at the operation, should they occur.
Coupled with this, existing socio-economic conditions (high unemployment and poverty levels, low skills levels and poor housing and health care facilities) highlight the communities’ low adaptive capacity and ability to absorb changes.
Therefore, the communities’ adaptive capacity can be considered low to moderate 13 . Should Options 1 or 3 be chosen, it will be far easier for the communities to adapt to changes as in both options, the power station will continue to operate and carry employment status quo and service delivery. However, should Option 4 go ahead, communities stand to lose 710 direct jobs and 600 plus indirect employment and procurement opportunities.
5.5.3 Komati Power Station Komati power station, although not as large as Arnot and Hendrina, is still a significant socio- economic contributor to the regional and local economy of the receiving community, specifically in terms of employment. Currently, the Komati power station provides 470 direct jobs. As experienced in receiving communities for both Arnot and Hendrina, Komati power station provides electricity, sanitation and potable water for receiving communities (including to the informal settlement of Kwazamakuhle township).
However, on a spatial scale, Komati can be considered less significant to human settlement in terms of local economics and social significance. While the communities of Komati and Blinkpan are the closest receiving communities to the power station, the size of each is significantly smaller than both Arnot and Hendrina. Furthermore, while not the sole alternative economic contributor to the local
13 Adaptive capacity deemed to be between non-resilience (low) to reasonably resilient (moderate). Capacity has been based on ability to cope relevant to current and future stresses, future impacts and access to social capital and resources.
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When all of the above considerations, compared with other socio-economic factors are drawn into this vulnerability assessment, like the previous two power stations, Options 1 and 3 remain the options more likely to be preferred by receiving communities. As such, Komati power station’s receiving community can be deemed to carry a moderate to fair adaptive capacity to Options 1 or 3, however, a change due to Option 4 could potentially see adaptive capacity slipping to low to moderate.
5.5.4 Camden Power Station The apparent rural status quo of Camden suggests that while the power station is an important contributor to the regional economy, farming and other livelihood activities leave the communities’ adaptive capacity moderate to fair. While the existing socio-economics of the receiving community are poor, the local economy is more diversified and not necessarily as reliant on the power station as the other three power stations. Camden is the lowest employer of the three power stations (373 permanent) and, although a significant employer to the surrounding community, it is not the biggest employer. The social baseline study indicates farm labour to be the largest employer of the local community.
An exception to this, however, is areas where adaptive capacity of the local communities of Camden and Sheepmoor remain highly dependent on the power station not only for service delivery (potable water and electricity in isolated parts of the receiving community) but also for limited housing, infrastructure and training opportunities.
The receiving area of Camden power station has the poorest existing socio-economic conditions and municipality funding shortfalls (district and local). Although it does not have the lowest adaptive capacity directly related to this project, it is imperative to note that Camden power station’s receiving community continues to experience socio-economic issues over and beyond what can be directly related to the power station. As such, should Option 4 (decommissioning) be considered, the receiving community might be seen as highly vulnerable to any social capital and/or community change, regardless.
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Risk Assessment Matrix Development A socio-economic risk assessment was completed for each option and was informed by the results of the economic and socio-economic context as well as the results of the options analysis. These factors informed the identification and characterisation of threats and opportunities.
A 5x5 matrix was used to identify and characterise the threats and opportunities by assessing the consequence and probability thereof. This technique is primarily a Probability-Consequence Matrix where each threat/opportunity is assessed against defined scales and placed on a matrix where the calculation thereof represents the relative significance of the threat/opportunity, allowing it to be ranked. Table 6-1 is the key to the characterisation of the threats and Table 6-2 the key to the characterisation of the opportunities.
Table 6-1: Threat risk rating
Risk Rating Risk Level Guidelines for Risk Matrix A high risk exists that management’s objectives may not be achieved. 21 to 25 High Appropriate mitigation strategy to be devised immediately. A significant risk exists that management’s objectives may not be achieved. 13 to 20 Significant Appropriate mitigation strategy to be devised as soon as possible. A moderate risk exists that management’s objectives may not be achieved. 6 to 12 Medium Appropriate mitigation strategy to be devised as part of the normal management process. A low risk exists that management’s objectives may not be achieved. 1 to5 Low Monitor risk , no further miti gation re quired.
Table 6-2: Opportunity risk rating
Opportunity Rating Opportunity Level Guidelines for Opportunity Matrix A high opportunity exists that management’s objectives may be achieved. 21 to 25 High Appropriate strategy and monitor opportunities/related/policies/plans A significant opportunity exists that management’s objectives may be achieved. 13 to 20 Significant Appropriate strategy to be devised as as part of the normal management process. A moderate opportunity exists that management’s objectives may not be achieved. 6 to 12 Medium Appropriate strategy to be devised as soon as possible A low opportunity exists that mana gement’s ob jectives may not be achieved. 1 to5 Low App ro priate strate gy to be devised immediatel y if linked to threat
Risk Assessment The risk assessment per option is reflected in Table 6-3.
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Consequence rating (1-5) Probability rating (1-5) Threat/ Opportunity Description Cause(s) Consequence(s) 1 is low consequence a5 is 1 is low consequence a5 Rating high consequence is high consequence Option 1: Lifex and Modernisation (Refurbishment) Potential economic and /or Additional land requirements for Construction of additional ash dam/s Could impact on operation and construction timelines physical displacement construction of new ash dams leading to and/or infrastructure Budget implications for resettlement involuntary displacement 4 4 16 Social unrest Reputational damage/risk
Community and employee unrest Potential job loss during downtime to Potential loss of employment during Could impact on operation and construction timelines, as and disruption complete refurbishment downtime well as budget 4 2 8
Inadequate communication with Potential ineffective communication with Lack of clear engagement strategy Loss of stakeholder support stakeholders stakeholders could lead to confusion, Reputational damage 3 5 15 unrealistic expectations and unrest
Increased health impacts Due to increased fugitive dust levels, Continued operations from coal as a Health impacts and increased grievances health-related impacts could potentially source of energy increase Increased number of trucks, specifically during construction 2 4 8 Continued and increased environmental impacts from continued operations and from installation of FGD (additional ash, gypsum, disposal facilities) respectively Continued dependency on Eskom Currently Eskom provides municipal Lack of resources within local Reputational damage due to perceived responsibility to for service delivery services to local communities municipalities to address growing service Eskom for service delivery 4 5 20 requirements Financial implications
Increased CO 2 emissions Increased CO² by-product due to new All units will need to be installed with a Exceeding the CO 2 emissions cap resulting in non- technology requirements for Option 1 FGD to reduce sulphur dioxide emissions. compliance and penalisation However, installing FGD will increase 2 4 8 relative CO 2 emissions from the power stations Option 3: Rebuild as PF or CFBC (Demolish and rebuild)
Potential economic and/or physical Additional land requirements for Construction of additional ash dam/s Could impact on operation and construction timelines displacement construction of new ash dams leading to and/or infrastructure Budget implications for resettlement involuntary displacement 5 4 20 Social unrest Reputational damage/risk Community and employee unrest Potential job loss during downtime to Potential loss of employment during Could impact on operation and construction timelines, as and disruption complete refurbishment downtime well as budget 4 3 12
Inadequate communication with Potential ineffective communication with Lack of clear engagement strategy Loss of stakeholder support stakeholders stakeholders could lead to confusion, Reputational damage 3 5 15 unrealistic expectations and unrest
Increased health impacts Due to increased fugitive dust levels, Additional ash dams and stockpiles will be Health impacts an increased grievances health-related impacts could potentially constructed 2 4 8 increase Increased number of trucks, specifically during construction
Increased CO² emissions Increased CO 2 by-product due to new All units will need to be installed with a Exceeding the CO 2 emissions cap resulting in non- 2 4 8 technology requirements for Option 3 FGD to reduce sulphur dioxide emissions. compliance and penalisation However, installing FGD will increase relative CO 2 emissions from the power stations Continued dependency on Eskom Currently Eskom provides municipal Lack of resources within local Reputational damage due to perceived responsibility to for service delivery services to local communities municipalities to address growing service Eskom for service delivery 4 5 20 requirements Financial implications
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Consequence rating (1-5) Probability rating (1-5) Threat/ Opportunity Description Cause(s) Consequence(s) 1 is low consequence a5 is 1 is low consequence a5 Rating high consequence is high consequence Option 4: Do not renew (Decommissioning)
Loss of direct and indirect Due to the decommissioning and closure Decommissioning of power stations Reputational damage employment of power stations, jobs will no longer be Lack of social closure plan Loss of stakeholder support available 5 5 25 Social unrest Financial implications Safety risks around existing sites Decommissioned sites will require Unauthorised access to decommissioned Opportunistic settlement monitoring and management for a sites Potential for injuries or fatalities protracted period Lack of social closure plan Reputational damage 5 2 10 Litigation risk Financial implications Inadequate communication with Potential ineffective communication with Lack of clear engagement strategy Loss of stakeholder support stakeholders stakeholders could lead to confusion, Lack of social closure plan Reputational damage 4 5 20 unrealistic expectations and unrest
OPPORTUNITIES
Option 1A/1B: Lifex and Modernisation (Refurbishment) and Option 3A/3B: Rebuild as PF or CFBC ( Demolish and rebuild)
Maintenance and/or increase of Maintaining existing direct and indirect Refurbishment or rebuild of existing Increase in contractor opportunities during refurbishment current employment numbers employment positions power station or rebuild 3 4 12 Maintain current socio-economic baseline Extension of life of operation Extending the life of the operation will Extension of the operations by 50 years as Maintenance or enhancement of reputation prolong employment opportunities, CSI a result of refurbishment or rebuild spend and regional socio-economic 4 4 16 development
Development of SMME’s Continued operation will allow for further Extension of the operations by 50 years as Maintenance or enhancement of reputation development of local businesses a result of refurbishment or rebuild 2 3 6 Availability of ash for brickmaking
Option 4: Do not renew (Decommissioning)
Reduced health and safety liability If properly managed, decommissioning Decommissioning without demolishing If properly managed, improved reputation should result in decreased air emissions, Reduced financial responsibilities dust, water contamination and other 4 4 16 environmental and socio-economic impacts Sale of components and salvage Due to decommissioning, parts may be Decommissioning without demolishing Cost saving sold or re-used at other operations 3 3 9
Handing over of services to local Following decommissioning, additional Decommissioning without demolishing Cost saving municipalities services would be handed over to local 4 2 8 municipalities
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 66 7 Conclusions and Recommendations This section summarises the conclusions and recommendations per study component, and then proposes mitigation and enhancement measures to manage potential impacts.
Conclusions and Recommendations per Focus Area of Study The findings of this study related to each option are provided in this section, for all the four power stations. With the level of information available at the time of writing this report, it is important to note that these are only indicative and should not be regarded as conclusive. Input from other studies such as the technical and financial specialist reports is required to increase SRK’s confidence level.
The conclusions are based on the following key components as per the scope of work and are further discussed in Table 7-1.
x Adherence to overarching national priorities and sustainable development goals;
x Baseline information of the four power stations and vulnerability assessment;
x Contribution to the local, regional and national economy;
x Contribution to the national power grid;
x Engagement with stakeholders;
x Risk assessment; and,
x Generation collaboration between local, regional and national contexts.
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Table 7-1: Conclusions and recommendations per study component
Option 1: Lifex and Modernisation Option 3: Rebuild as PF or CFBC Option 4: Do not renew (Refurbishment) (Demolish and Rebuild) (Decommissioning) Key Focus Area: Adherence to NDPs and SDGs
Conclusions Option 1 meets the social and economic Option 1 meets the social and economic Potential job losses related to this option are requirements of the NDP, which further relate requirements of the NDP, which further relate in opposition to the SDGs 1, 2, 6 and 7. As a to SDGs provided in Table 3-3 of this report. to SDGs provided in Table 3-3 of this report. result, levels of poverty are likely to increase, Continued employment is in alignment with Continued employment is in alignment with especially because the four power stations SDGs 1 and 2. However, from an SDGs 1 and 2. However, from an are the main employers of the surrounding environmental point of view, the potential environmental point of view, Option 3 will use communities. Comparing this to the regional usage of more water due to FGD installations more water than current usage due to FGD and national context, these job losses are and continued wet cooling systems might be installations. However, it will use less water less significant, especially if alternative in conflict with SDG 6, which will further limit than Option 1 because it will be using a dry power/ replacement stations will be access for other water users, especially cooling system, This, however, will still be in established elsewhere in the country and communities relying on the power stations for conflict with SDG 6, which will further limit provide jobs. The negative aspect to this for water supply. In addition, CO 2 emissions access for other water users, especially the local communities is that these associated with FGD are also in contradiction communities relying on the power stations for communities might not necessarily have the to SDG 13, and as a result, this will likely water supply. In addition, CO² emissions skills to compete for these new jobs with new result in power stations exceeding the associated with FGD are also in contradiction technologies, and might not be able to move allocated emissions cap, and taking on a to SDG 13 and, as a result, this will likely to where these jobs will be. If they follow the larger responsibility for overall emissions into result in power stations exceeding the jobs, there is still potential for social ills the atmosphere. allocated emissions cap, and taking on a developing such as family disruptions caused Continuing with coal as a fuel for these power larger responsibility for overall emissions into by migration. However, due to discontinued stations means that alternative energy the atmosphere. operations of the power stations, options, which could potentially be cheaper Continuing with coal as a fuel for these power environmental concerns including water and and more sustainable will not be investigated, stations means that alternative energy CO² emissions will improve. in contradiction with SDG 7. options, which could potentially be cheaper and more sustainable will not be investigated, in contradiction with SDG 7. Recommendations Information relating to the level of skills Information relating to the level of skills Re-training of existing employees in potable required for the options was not available. required for the options was not available. skills to afford them opportunities for However, should there be a need for new However, should there be a need for new employment elsewhere, or alternative skills sets for this option, Eskom should skills sets for this option; Eskom should livelihoods, is important. Re-training should consider providing skills to current consider providing skills to current ideally be aligned with local skills employees and surrounding community employees and surrounding community development and/or empowerment members in preparation for the members in preparation for the initiatives. Alternatively, plans for implementation of this option. This could be implementation of this option. This could be redeployment of employees to neighboring done through the Eskom Foundation. done through the Eskom Foundation. power stations, or severance packages for those who are ready to find alternatives on their own should be put in place.
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Option 1: Lifex and Modernisation Option 3: Rebuild as PF or CFBC Option 4: Do not renew (Refurbishment) (Demolish and Rebuild) (Decommissioning) Key Focus Area: Baseline information of the four power stations and vulnerability assessment Conclusions The socio economic data for the four power The socio economic data for the four power The socio economic data for the four power stations has revealed key socio-economic stations has revealed key socio-economic stations has revealed key socio-economic stresses per power station, albeit in slightly stresses per power station, albeit in slightly stresses per power station, albeit in slightly different levels. These are dependency on different levels. These are dependency on different levels. These are dependency on the power stations for service delivery, the power stations for service delivery, power stations for service delivery, significant significant levels of poverty, poor housing significant levels of poverty, poor housing levels of poverty, poor housing infrastructure, infrastructure, high local unemployment and infrastructure, high local unemployment and high local unemployment and low levels of low levels of skills. Based on this information, low levels of skills. Based on this information, skills. Based on this information, if not this option might not be able to change this this option might not be able to change this properly managed, this option will potentially socio-economic status, but could possibly socio-economic status, but could possibly increase the levels of poverty in the area, maintain the current status quo, ensuring that maintain the current status quo, ensuring that thus going against the SDGs 1, 2 6 and 7. these communities are not further pushed these communities are not further pushed into poverty. into poverty.
Recommendations Eskom should consider providing skills to Eskom should consider providing skills to Potable skills training for existing employees current employees and surrounding current employees and surrounding to afford them opportunities for re- community members in preparation for the community members in preparation for the employment elsewhere, or alternative implementation of this option. This could be implementation of this option. This could be livelihoods is important. Alternatively, plans done through the Eskom Foundation. done through the Eskom Foundation. for redeployment of employees to neighbouring power stations, or severance packages for those who are ready to find alternatives should be put in place.
Key Focus Area: Contribution to the local, regional and national economy Conclusions As part of Eskom, these four power stations As part of Eskom, these four power stations Implementing this option will lead to a contribute significantly to the economy of the contribute significantly to the economy of the decrease in the contribution of these power area. In total, Eskom added some R53 billion area. In total, Eskom added some R53 billion stations to the national and regional in revenue to government in financial year in revenue to government in financial year economy. This impact will be felt more 2014/15. When considering direct and 2014/15. When considering direct and intensely at the regional and local scale, thus induced effects, i.e. goods and services, induced effects, i.e. goods and services, further leading to decreased financial Eskom’s impact was estimated to be more Eskom’s impact was estimated to be more capacity of the province and municipality to than 5% of the GDP in financial year 2014/15 than 5% of the GDP in financial year 2014/15 provide services to the local communities. (KPMG Report, undated). This option will (KPMG Report, undated). This option will maintain the current status quo but also maintain the current status quo but also continue the contribution of the power continue the contribution of the power stations towards the GDP for a prolonged stations towards the GDP for a prolonged period of time. period of time.
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Option 1: Lifex and Modernisation Option 3: Rebuild as PF or CFBC Option 4: Do not renew (Refurbishment) (Demolish and Rebuild) (Decommissioning) Recommendations Maintain the status quo. Maintain the status quo. In consultation with other partners such as government, local businesses such as mines and other key players in the region, identify and plan for alternative means of ensuring continued contribution to the economy of the region. Key Focus Area: Contribution to the National Power Grid Conclusions Should this option be implemented, the life of Should this option be implemented, the life of Taking the four power stations off the national the power station will be increased to 60 the power station will be increased to 60 power grid will reduce the national capacity of years, thus continuing to address the existing years, thus continuing to address the existing electricity provision associated with load power constraints in the country. It is also power constraints in the country. It is also shedding and the potential increase in the possible that during this time, alternative possible that during this time, alternative cost of energy. However, it is anticipated that power generation options could be found in power generation options could be found in the new build power stations (Medupi and other areas. other areas. Kusile) might augment for the loss of power generated at these power stations, thus maintaining the current status quo. Recommendations Maintain the status quo. Maintain the status quo. Investigate the potential for increasing the capacity of the newly built power stations (Medupi and Kusile) to augment energy supply. Key Focus Area: Engagement with stakeholders Conclusions This option will require extensive This option will require extensive This option will require extensive engagement with stakeholders in an attempt engagement with stakeholders in an attempt engagement with stakeholders in an attempt to manage expectations and fears but also to manage expectations and fears but also to manage expectations and fears but also keep lines communication open and keep lines communication open and keep lines communication open and transparent, and grievances monitored. transparent, and grievances monitored. transparent, and grievances monitored. Recommendations Each power station is allocated a Each power station is allocated a Each power station is allocated a communications manager/officer who should communications manager/officer who should communications manager/officer who should be leading this engagement with be leading this engagement with be leading this engagement with stakeholders. The development of a stakeholders. The development of a stakeholders. The development of a Stakeholder Engagement Plan (SEP) to Stakeholder Engagement Plan (SEP) to Stakeholder Engagement Plan (SEP) to guide these engagements is important, guide these engagements is important, guide these engagements is important, coupled with the proper identification of key coupled with the proper identification of key coupled with the proper identification of key stakeholders who will potentially be affected stakeholders who will potentially be affected stakeholders who will potentially be affected by this option. The SEP should also provide by this option. The SEP should also provide by this option. The SEP should also provide guidance on issues surrounding key guidance on issues surrounding key guidance on issues surrounding key messages and managing stakeholder messages and managing stakeholder messages and managing stakeholder relations and expectations. A grievances relations and expectations. A grievances relations and expectations. A grievances
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Option 1: Lifex and Modernisation Option 3: Rebuild as PF or CFBC Option 4: Do not renew (Refurbishment) (Demolish and Rebuild) (Decommissioning) resolution process should form part of the resolution process should form part of the resolution process should form part of the SEP. SEP. SEP. The SEP should take into account that The SEP should take into account that The SEP should take into account that stakeholder groups might respond differently stakeholder groups might respond differently stakeholder groups might respond differently to different options. Appropriate information to different options. Appropriate information to different options. Appropriate information and messages should be developed and messages should be developed and messages should be developed accordingly. accordingly. accordingly. Key Focus Area: Risk assessment Conclusions Potential risks to Eskom relating to this option Potential risks to Eskom relating to this option Potential risks to Eskom relating to this option are potential economic and physical are potential economic and physical are loss of direct and indirect employment, displacement, community dissatisfactions, displacement; community dissatisfactions, safety risks around decommissioned sites, unmanaged expectations and continued unmanaged expectations and continued and unmanaged stakeholder expectations. dependence for services by the municipality dependence for services by the municipality Consequences of these risks are reputational and local communities. Consequences of and local communities. Consequences of damage and the loss of a Social License to these risks are reputational damage and the these risks are reputational damage and the Operate, community dissatisfactions, which loss of a Social License to Operate, budget loss of a Social License to Operate, budget could also result in litigation risks, and implications for resettlement, community implications for resettlement, community financial implications for keeping the sites dissatisfactions, which could also lead to dissatisfactions, which could also lead to secured. operations and construction time delays. operations and construction time delays. Recommendations Proper and planned engagement with Proper and planned engagement with Proper and planned engagement with stakeholders is required as part of the SEP. stakeholders is required as part of the SEP. stakeholders is required as part of the SEP. This plan should also provide guidance on This plan should also provide guidance on This plan should also provide guidance on issues surrounding key messages regarding issues surrounding key messages regarding issues surrounding key messages regarding the risks identified and managing stakeholder the risks identified and managing stakeholder the risks identified and managing stakeholder relations and expectations going forward. relations and expectations going forward. relations and expectations going forward. Key Focus Area: National, regional and local generation collaboration
Conclusions Should Option 1 be implemented, it is Should Option 2 be implemented, it is If Option 3 is implemented for any of the possible that together with the new build possible that together with the new build power stations, the loss of generation projects (Medupi and Kusile,) there could projects (Medupi and Kusile,) there could capacity nationwide will be augmented by the potentially be surplus energy for the country, potentially be surplus energy for the country, supply from the new build power stations. leading to cheaper electricity overall. leading to cheaper electricity overall.
Recommendations Maintain the status quo. Maintain the status quo. Impacts relating to local employment and local economic development should take precedence over nationwide energy requirements.
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Response to Socio-Economic Consequences: Mitigation and Enhancement Measures Pursuit of any of the three options assessed in this report will result in a variety of socio-economic consequences. A number of these will be negative overall, with significant impacts on communities and other stakeholders, and with the potential to generate negative sentiment, community dissatisfaction and potential push back in the form of legal or other forms or recourse. In some cases, the execution of specific options may have a net positive medium to long-term outcome.
Table 7-2 lists a series of mitigation and enhancement measures that might be considered for particular options, at affected sites. The measures are described, and the context in which they apply is outlined. The relevance of the measure to each of the options is then assessed. Whilst socio-economic consequences vary somewhat from location to location, the variation is not significant enough to warrant discussion site by site.
Some of these would be led and implemented by Eskom, whilst others could be undertaken in partnership with others. Many of the mitigation and enhancement measures require significant lead- time, and planning for implementation should begin timeously. The costs of the mitigation and enhancement measures discussed here are not calculated for the purposes of this report, but the potential for a cost should be taken into account in the evaluation of options.
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Relevance Option 1A/1B: Lifex Option 3A/3B: Option 4: Do not Mitigation/Enhancement Measure Context and Modernisation Rebuild as PF or renew (Refurbishment) CFBC (Demolish (Decommissioning) and Rebuild) Employee redeployment and/or severance planning and Direct employment Arrangements for Arrangements for Full redeployment and implementation. (permanent and temporary redeployment medium term severance planning Includes: contract) or short-term lay-off redeployment and and implementation during refurbishment function-related x Consultation and engagement severance x Planning and implementing redeployment to other functions/operations x Planning and implementing benefit continuation/replacement x Planning and implementing severance options Pre-closure counselling and capacity building (short term and Direct employment Counselling and Counselling and Counselling and permanent closure). (permanent and communication communication communication Includes: contract) appropriate to partial or appropriate to appropriate to Small service short-term closure medium -term permanent closure. x Communication on operation short staffing and/or closure closure Full suite of measures arrangements providers (especially x Counselling on retirement planning, investment, money management, debt management empowerment companies) x Advice on small business development and management x Skills assessment and targeted enhancement Contractor / service provider redeployment and/or capacity building Procurement Arrangements for Arrangements for Full redeployment and / (latter especially in the case of empowerment contractors). temporary redeployment medium term or business counselling Includes: redeployment and possible loss of x Consultation and engagement contacts due to x Planning and implementing redeployment to other functions / changes in function operations x Planning and implementing business counselling for small and vulnerable contractors / providers Closure–related stakeholder engagement (curtailed operations, Direct employment As appropriate for As appropriate for As appropriate for temporary and permanent closure). Procurement curtailed operations and medium-term permanent closure Includes engagement with: LED and CSI temporary closure closure x Employees (see above) Service delivery x Local government Coal sourcing x Supply chain contractors Land take
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Relevance Option 1A/1B: Lifex Option 3A/3B: Option 4: Do not Mitigation/Enhancement Measure Context and Modernisation Rebuild as PF or renew (Refurbishment) CFBC (Demolish (Decommissioning) and Rebuild) x Local business and service providers x Regulators Asset transfer planning and implementation (where assets can be Direct employment Limited opportunity for Moderate Opportunity for donated/sold/transferred to mitigate impacts). Procurement asset transfer, except for opportunity for asset extensive asset redundant assets transfer transfer Includes: LED and CSI Early engagement and x Inventory of assets (movable and immovable) Service delivery Information on the use and management of immovable assets careful planning x required to secure Legal arrangements for asset transfer x potential x Stakeholder consultation regarding asset transfer x Capacity building for asset management (as necessary) Land access, land use, and land rehabilitation planning and Land use and land Land take and land use Land take possible Full closure and implementation. take change unlikely for expanded or rehabilitation required Includes: reconfigured Opportunity for land operations beneficiation and x Determination of land requirements, land uses, and rehabilitation responsibilities under applicable options Beneficiation alternative land use possible if land is x Mobilisation of land – related engagement and planning under applicable options (resettlement action planning in the case of released displacement, land use and land beneficiation planning where land might be released for other uses, and rehabilitation planning in the case of closure Service sustainability planning and implementation. Service delivery Planning for possible Planning for possible Full transfer of service Includes: temporary service medium term service responsibilities disruption required disruption required required x Inventory of services provided or supported by the operation (education, health, water and sanitation, housing, Potential to transfer security/policing, infrastructure maintenance) service Information on management and costs responsibilities to x other parties x Requirements for temporary or permanent operation and maintenance by other parties x Negotiation (allowing sufficient time) with organisations assuming temporary or permanent responsibility
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Relevance Option 1A/1B: Lifex Option 3A/3B: Option 4: Do not Mitigation/Enhancement Measure Context and Modernisation Rebuild as PF or renew (Refurbishment) CFBC (Demolish (Decommissioning) and Rebuild) Economic sustainability planning (local and regional). LED and CSI Sustainability planning Sustainability Should start well in Includes: Local and regional relevant for future planning relevant for advance of development closure future closure decommissioning if x Promotion of economic diversification (through inclusive social possible development planning and development partnerships). Medium to long term measure x Establishment of durable multi-stakeholder development institutions (for example a Development Foundation with multiple private sector, public sector and community participants) Environmental management planning. Environmental Management largely Management Full closure Includes: impacts under existing framework substantially under environmental and plans existing framework management planning x Determination of environmental management legal requirements, Requirement for a full and plans and implementation tasks and responsibilities under different options (including required. Depending permanent closure) Environmental Impact Requirement for a full Assessment and a Environmental on the several options x Preparation of revised environmental permitting processes and for “Do not Renew” implementation arrangements for different options Waste Management Impact Assessment Licence, as well as the and a Waste Arnot and Hendrina will Briefing of regulators regarding plans and implementation x revision of the Water Use Management require and a for a full Closure and rehabilitation programme (if required) x Licence and Atmospheric Licence, as well as Environmental Impact x Public and stakeholder briefing on management arrangements Emissions Licence the revision of the Assessment and a x Monitoring arrangements Water Use Licence Waste Management and Atmospheric Licence for additional Emissions Licence storage facilities and Opportunity to where the plant is sold, improve technology the applicable licences and management will need to be regimes transferred following the applicable amendment process
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Improving the Sustainability of the SED/CSI Initiatives Following the review of the information received from the power stations and the Eskom Foundation, the following recommendations could be made to improve the sustainability of the initiatives.
x Multi-stakeholder collaboration: Collaboration between the power stations, Eskom, the district and local municipalities, surrounding mines and other businesses is important to ensure that resources are pooled and the impact of the projects are increased. The collaboration goal could be to share project costs, management responsibilities and information;
x Engagement with potential beneficiaries/communities: Assess community needs and strengths and tailor the SED initiatives accordingly. This could also be through identifying materials available locally for projects e.g. ash dams;
x Research regarding local resources: Investigate the use of waste from power station activities (grey water and recycled water) for vegetable gardening. Where there is excess water from the power stations, investigate how this water can be used for community use. In installing FGD components, consider the use of synthetic gypsum for establishing small businesses using cement and grout, making wallboards, structural fill, mining applications, and road aggregate;
x Diversification of economic activities: Promote economic diversification through inclusive social development planning and development partnerships to ensure that projects identified are not directly related to power station existence;
x Food security projects: Identify land-based projects such as agriculture and stock farming to respond to SDG2 of ending hunger and achieving food security; and,
x Monitoring and evaluation: Following the implementation of the SED projects, conduct a post implementation survey with the beneficiaries to assess the effectiveness of these projects and to implement corrective measures where necessary.
Prepared by
Adel Malebana Anita Bron Senior Social Scientist Principal Social Scientist
Reviewed by
Vassie Maharaj
All data used as source material plus the text, tables, figures, and attachments of this document have been reviewed and prepared in accordance with generally accepted professional engineering and environmental practices.
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Department of Health. (2013). Mpumalanga: Gert Sibande District Profile (pp. 1-25). Department of Health. Available online: https://www.health-e.org.za/wp-content/uploads/2012/04/Gert-Sibande- District-Profile.pdf Department of Trade and Industry (undated). Economic Empowerment. Available online: https://www.thedti.gov.za/economic_empowerment/bee.jsp Economic Development Department (undated). Available online: http://www.economic.gov.za/about-us/programmes/economic-policy-development/b-bbee eNCA (2016). Nearly 90 percent of SA households have electricity, says Eskom. Available online: https://www.enca.com/south-africa/stats-show-that-nearly-90-percent-of-sa-households-have- electricity-says-eskom Eskom. (undated). Eskom Transmission Development Plan (2016-2025) Eskom. (2011). The Eskom factor. Available online: http://www.eskom.co.za/OurCompany/SustainableDevelopment/Documents/EskomFactor.pdf Eskom. (2013). Integrated socio-economic development policy – 24069723512 Eskom. (2016). Integrated Report 31 March 2016. Available online: http://www.eskom.co.za/IR2016/Documents/Eskom_integrated_report_2016.pdf Eskom. (2016). Enquiry on requirements for Environmental Impact Assessment (EIA) process for the Generation Fleet Renewal Programme: Option 1, Refurbish current Power Stations within existing footprints Eskom. (2016). Enquiry on requirements for Environmental Impact Assessment (EIA) process for the Generation Fleet Renewal Programme: Option 3, Demolish and Rebuild (PF and CFBC) Eskom. (2016). Enquiry on requirements for Environmental Impact Assessment (EIA) process for the Generation Fleet Renewal Programme: Option 4, Do not Renew Eskom. (2016). Sustainability Mapping at Eskom: Eskom’s Sustainable Development Framework- 240101385485
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Eskom Fleet Renewal Project Team. (2016). Fleet Renewal Assumptions. Excel spreadsheet. Eskom Foundation. (2016). Presentation: Eskom DPE Meeting Presidential Siyahlola. Monday, 18 July 2016 Fin24. (2015). Eskom is load shedding SA's GDP - World Bank. 14 April 2015. Available online: http://www.fin24.com/Economy/Eskom-is-load-shedding-SAs-GDP-World-Bank-20150414 GENI. (2007). Rural Electrification, Human Development and the Renewable Energy Potential of China. Available online: http://www.geni.org/globalenergy/research/china-development/china- development.pdf Gert Sibande District Municipality. (2016). Gert Sibande District Municipality 2016/2017 Draft IDP (pp. 1-500). Available online: http://www.gsibande.gov.za IEG. (2008). The Welfare Impact of Rural Electrification: A Reassessment of the Costs and Benefits. Available online: http://siteresources.worldbank.org/EXTRURELECT/Resources/full_doc.pdf Iyer, Srinivasan. (2013). Energy access and human development. Available online: http://www.in.undp.org/content/dam/india/docs/human- development/Energy%20access%20and%20human%20development%20IC4HD_Session%204_I yer.pdf Klopper H. (2010). Research Report on State Owned Enterprises. Available online: http://www.thepresidency.gov.za/electronicreport/downloads/volume_4/business_case_viability/B C1_Research_Material/State_Owned_Enterprises_July_2010.pdf KPMG. (undated ). SD Value Assessment for Eskom: An economic impact analysis for Eskom on the South African economy Lipscomb M., Mobarak A.M., Barham T. (2013). Development Effects of Electrification: Evidence from the Topographic Placement of Hydropower Plants in Brazil. Available online: http://faculty.som.yale.edu/mushfiqmobarak/papers/development%20effects%20of%20electrificati on.pdf News24. 2013. Mpumalanga's Gert Sibande district has highest HIV rate . Available online: http://www.news24.com/Archives/City-Press/Mpumalangas-Gert-Sibande-district-has-highest-HIV- rate-20150430 Mpumalanga Department of Economic Development & Tourism (MDEDET). 2009. Msukaligwa Local Municipality. (2016). Msukaligwa Local Municipality 2016-2017 IDP (pp. 1-194). Available online: http://www.msukaligwa.gov.za/MsukWeb/Documents/Reports/2016%202017%20IDP.pdf NFM, A. (2013). Traditional breadwinner families, largest group in poverty. Available online: http://www.nfm.org.uk/index.php/about-nfm/news/260-traditional-breadwinner-families-largest- group-in-poverty Nkangala District Municipality. (2016). Nkangala District Municipality 2016/17-2020/21 Final Draft Integrated Development Plan (pp. 1-316). Available online: http://www.nkangaladm.gov.za/index.php/2014-02-25-17-38-07/viewcategory/13-idp-reports One (undated). Available online: https://www.one.org/us/2013/07/16/4-ways-electricity-can- jumpstart-african-economic-development/ Pheladi, B. (2015). Many pupils still walk long distances to school . The Citizen . Available online: http://citizen.co.za/361621/bp-walking-to-school/ PRODUSE. (2013). The Impact of Electricity Access on Economic Development: A Literature Review . Available Available online:
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 78 http://www.produse.org/imglib/downloads/PRODUSE_study/PRODUSE%20Study_Literature%20 Review.pdf Real Economy Bulletin. (2016) Fin24. 2015. Shocking cost of SA’s universities . (2015). Available online: http://www.fin24.com/Economy/Shocking-cost-of-SAs-universities-20150118
SARS (2016). Available online: http://www.sars.gov.za/Tax-Rates/Income-Tax/Pages/Companies- Trusts-and-Small-Business-Corporations.aspx. South African Government. (2016). Pocket Guide to South Africa 2015-2016: Energy and Water. Available online: http://gcis.gov.za/sites/www.gcis.gov.za/files/docs/resourcecentre/pocketguide/PocketGuide15- 16SA_water.pdf Statistics South Africa. (2016). The South Africa I Know, The Home I Understand .Statssa.gov.za . Available online: http://www.statssa.gov.za/ Statistics South Africa. (2011) Census 2011; Interactive data in SuperCROSS (Version 2011). South Africa: SuperCROSS Steve Tshwete Local Municipality. (2016). Steve Tshwete Local Municipality 2012-2017 Integrated Development Plan 2016/17 IDP Review (pp. 1-326). Available online: http://www.stevetshwetelm.gov.za/IDP/20162017/IDP%20201617%20Final.pdf Steve Tshwete Local Municipality (2015). Steve Tshwete Local Municipality. 2012-2017 Integrated Development Plan. 2015-26 IDP Review. Available online: http://www.stevetshwetelm.gov.za/IDP/2015/idp%20final%20201516.pdf Tralac. (2015). The economic consequences of load shedding in South Africa and the state of the electrical grid. 11 February 2015. Available online: https://www.tralac.org/discussions/article/7000- the-economic-consequences-of-load-shedding-in-south-africa-and-the-state-of-the-electrical- grid.html
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Appendices
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Appendix A: Interview Schedules
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 81 Stakeholder Engagement
The Senior Consultant Socio-economic Development, the Eskom Fleet Renewal Project Manager, Ms Beauty Mazibuko, sent letters of introduction to the internal stakeholders and the stakeholders at the power stations. The letter provided a brief background to the project, requesting their attendance to meetings with SRK, and indicating the input required. For external stakeholders, the Senior Manager for Stakeholder Management in Mpumalanga, Mr. Simangaliso Shongwe, invited the IDP and LED Managers of the four municipalities within which the power stations fall. He also accompanied SRK to these meetings. Eskom Corporate Stakeholders
Meetings were held with the Eskom corporate stakeholders as reflected in Table A-1.
Table A-1: Meetings conducted with Eskom corporate stakeholders
Date of Purpose Meeting attendees Designation meeting Senior Consultant: Socio- Beauty Mazibuko economic Development Engineering Technical Team 15 September meeting to provide a broad Corporate Consultant: Gina Downes 2016 technical overview of the Environmental Economics different options. Group Technology: Tshifhiwa Tshamano Engineering Senior Consultant: Socio- Beauty Mazibuko economic Development Corporate Consultant: Gina Downes Environmental Department Environmental Economics meeting to gain an 15 September Environmental understanding of the different Tobile Bokwe 2016 Management environmental implications of each of the options. Environmental Kristy Langerman Management Environmental Warren Funston Management Stakeholder engagement Senior Consultant: Socio- Beauty Mazibuko (Primary Energy) meeting to economic Development 15 September provide an overview of 2016 stakeholders at the different Stakeholder Management sites, how they are engaged, Sebata Zondo and Communication and what their issues are. Practitioner Eskom Development Senior Consultant: Socio- Beauty Mazibuko Foundation meeting to provide economic Development inputs regarding the CSI 15 September activities at each of the sites, 2016 Eskom Development and the implications of each of Brenda Kruger these options on the current Foundation CSI activities. Senior Consultant: Socio- Beauty Mazibuko economic Development
Water Department meeting to Chief Chemical Engineer : provide input into water usage Dheneshree Lalla Chemical Centre of 16 September requirements per project site, Excellence 2016 and potential water Chemical Centre of Nthabiseng Dingaan requirements per option. Excellence Boiler Auxiliary: Annikie Moganelwa Mechanical Engineer
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Date of Purpose Meeting attendees Designation meeting
Fuel Sourcing (Primary Energy Department) meeting to provide information regarding Senior Consultant: Socio- 16 September Beauty Mazibuko different sources of coal per economic Development 2016 station currently, and the sourcing requirements for each of the options. Keith London Fuel Sourcing PED Senior Consultant: Socio- Beauty Mazibuko 16 September Project Manager to provide a economic Development 2016 broad overview of the project. Chief Advisor: Project Beth O’ Connor Development Stakeholder Management to Senior Consultant: Socio- Beauty Mazibuko provide an overview of economic Development 23 September stakeholders at the different 2016 Corporate Affairs Business sites and how they are Vanessa Carpel engaged. Partner Corporate Consultant: Gina Downes Environmental Economics
Eskom Water Supply meeting Sustainability Manager: 30 September Mpetjane Kgole to understand sources of water Water 2016 for each of the power stations. Chief Technologist: Frits Thynsma Mechanical Ian Midgley Chief Consultant: Water
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 83 Eskom Power Station Stakeholders
The following key stakeholders at the power stations were identified:
x Power station managers;
x Engineering managers;
x Environmental managers;
x Communications managers;
x Maintenance managers; and,
x Finance managers. SRK conducted meetings at the four power stations as per Table A-2 below. The purpose of these meetings was to get an understanding of the technical, environmental and community issues regarding each power station.
Table A-2: Meetings conducted at the Eskom power stations
Power station Purpose Meeting attendees Designation and date of meeting The purpose of these Justice Ramagoma Environmental Manager meetings was to get an Hendrina Power Aubrey Sambo Communications Manager Station understanding of the technical, environmental 19 September Morongwe Raphasha Engineering Manager and community issues 2016 Acting Power station regarding each power Ashwin Rampersad station. Manager Climate Change and Beauty Mazibuko Sustainable Development Arnot Power Advisor Station Teboho Ntshabiseng Communications Manager 21 September 2016 Mariam Joseph Environmental Manager Tshepo Mokgatle Engineering Manager Komati Power Thabile Mahlangu Communications Manager Station 22 September Lawrence Machebe Environmental Coordinator 2016 Acting Engineering Sifiso Mzulwini Manager Fikile Sithole Environmental Coordinator Augustine Sebothoma Maintenance Manager Camden Power Station Senior Manager 7 October 2016 Arnold Geuns Engineering and Maintenance Thandiwe Mzoyi Communication Officer (Telecon) Mosekami Mokgala Finance Manager
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 84 External Stakeholders
Eskom Climate Change and Sustainable Development (Eskom Fleet Renewal Project Team) raised concerns regarding the possible pre-mature engagement of external stakeholders, which could potentially lead to unmanaged stakeholder expectations of the project. Secondly, the project is still at an early pre-feasibility phase and is treated as confidential. It was therefore decided that only the relevant representatives at the district and local municipalities within which the power stations fall would be interviewed. These are Gert Sibande and Nkangala District Municipalities, as well as Msukaligwa and Gert Sibande Local Municipalities. The LED and IDP personnel were identified as key informants to the socio-economic status as well as the social development of the areas under discussion. Local communities were not engaged.
Table A-3 provides a list of meetings with the district and local municipalities.
Table A-3: Meetings with external stakeholders
Date of Organisation Meeting attendees Designation meeting Stakeholder Eskom Simangaliso Shongwe Engagement 28 September Gert Sibande District 2016 Pretty Chiloane Senior LED Manager Municipality Msukaligwa Local Municipality Bongani Zwane IDP Manager Senior Advisor Eskom Mpumalanga Smangaliso Shongwe Stakeholder Management
30 September Nkangala District Municipality Bheki Matimba Municipal Economist 2016 Spatial Planning and Nkangala District Municipality Prince Magana Land Use Steve Tshwete Local Mike Nkosi LED Manager Municipality
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Appendix B: Discussion Guides
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Eskom Generation Fleet Renewal Project: Socio-Economic Study Discussion Guide: Technical Team
Purpose x Establish a detailed overview of the 4 options that are being considered for each of the power stations x Get an understanding of the current status of each power station x Cross reference certain findings with other internal discussions.
1 What is the current status of each Power Station? 1.1 Are they all coal fired? Where do they source this coal from and how is it transported to site? 1.2 How long have they been in operation? 1.3 What is their current life expectancy and employment figures and/ or projections? 1.4 Does each plant have the same importance in the Eskom ‘fleet’ or are some considered more strategically important? 2 Can you provide us with an overview of the 4 options that are being considered?
Author/Reviewer Technical Discussion Guide 3-Feb-17 SRK Consulting Page 2 2.1 What fuel source will be used for each option? (coal, biofuel, gas etc.) 2.2 Where would this fuel be sourced from? 2.3 How would this be transported to the site? 2.4 What timelines does each option have from start to finish? 2.5 Will the options at different sites be implemented simultaneously or will they be phased? 2.6 Would any of the options require an expansion of the existing plant footprint? Ownership of surrounding land in case of expansion and engagement with current landowners? 2.7 What are the environmental impacts (air pollution, noise) of each option? (to be confirmed with environmental team) 2.8 What are the water implications of each option? Will they require more or less water? What will the implications be for surrounding communities and where would the water be sourced from? (to be confirmed with the water team) 3 Would any of the options require additional employees or are they more mechanised hence requiring fewer employees? 3.1 What preliminary plans are in place in cases of retrenchments? 3.2 What labour requirements will be considered should mechanisation take place? 4 From a purely technical and financial perspective, which options are currently favoured and why?
Author/Reviewer Technical Discussion Guide 3-Feb-17 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Eskom Generation Fleet Renewal Project: Socio-Economic Study Discussion Guide: Environmental Impacts
Purpose x Get an understanding of what the current and future environmental impacts might be. x Look in particular at impacts such as dust and noise.
1 What current environmental authorisations do the power stations have? 1.1 What new authorisations will be required for each of the new options? 1.2 Is there any current modelling particularly around air pollution? 1.3 What sort of monitoring is done around each of the power stations? Are there records of this monitoring? 2 What is the role of the environmental officer at each of the power stations? 3 What current community grievances do the power stations encounter from an environmental perspective? 3.1 Dust and air pollution in particular 3.2 Are the surrounding communities aware and active around environmental issues? 3.3 Have there been any health issues and/or claims at any of the power stations? 3.4 Are environmental NGOs active around any of the power stations? 4 Have there been any incidents and/or claims of water pollution emanating from any of the power stations? 4.1 How do the power stations actively mitigate the possibility of water contamination 4.2 Is there ongoing monitoring of pollution? 5 Do any of the power stations contribute to any environmental causes?
Author/Reviewer Environmental Impacts Discussion Guide 3-Feb-17 SRK Consulting Page 2 5.1 Do any of the power stations have long term rehabilitation plans and closure plans? 6 Depending on the preferred option, what sort of mitigation measures do you think might be necessary? 7 From a purely environmental perspective, what would the preferred option be?
Author/Reviewer Environmental Impacts Discussion Guide 3-Feb-17 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Eskom Generation Fleet Renewal Project: Socio-Economic Study Discussion Guide: Stakeholder Engagement
Purpose x Get an understanding of the key stakeholders at each of the four sites and how Eskom engages with them x Look in particular at the stakeholder engagement programmes for communities at all the four Power Stations
1 Key stakeholders and organisations at each of the sites (database) 1.1 Who are the key stakeholders? 1.2 How do you define a key stakeholder? 1.3 What is the importance or role of these stakeholders in Eskom’s operations? 2 Is there a stakeholder engagement plan for the communities at the four sites and how does it work in terms of the following? 2.1 Focus of engagement 2.2 Means of engagement 2.3 Frequency of engagement 3 Would any of the options require additional employees or are they more mechanised hence requiring fewer employees? 3.1 What preliminary plans are in place in cases of retrenchments? 3.2 What labour requirements will be considered for each of the options? 4 What relationships exist between Eskom and their key stakeholders and organisations? Is it positive, negative or neutral?
Author/Reviewer Stakeholder Engagement Discussion Guide 3-Feb-17 SRK Consulting Page 2 5 Stakeholder networks: What relationships are there between the key stakeholders? 6 Stakeholders’ power and influence: Which stakeholders have the influence in the communities to positively or negatively affect the operations? 7 Stakeholder issues at each of the four Power Stations? 7.1 What are the key issues? 7.2 How can these issues be resolved and by whom? 7.3 Have there been times where operations had to stop because of stakeholder issues? How was this resolved? 8 What engagement strategy is being planned to communicate the options to the key stakeholders and by when?
Author/Reviewer Stakeholder Engagement Discussion Guide 3-Feb-17 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Eskom Generation Fleet Renewal Project: Socio-Economic Study Discussion Guide: Water
1 Where do the Power Stations get their supply of water from? 2 Do the Power Stations have Water Use Licences? 2.1 Are the Power Stations currently adhering to the conditions of the WUL? 2.2 If not, what management measures have been put in place to ensure adherence? 3 Do any of the stations currently supply surrounding communities and/or municipalities with water? 3.1 Is this potable water or is it utilised for other purposes such as agriculture? 3.2 Do the communities pay for the water? 3.3 Are there any existing agreements regarding this and with whom? 3.4 How long are these agreements for? 4 What challenges are the Power Stations experiencing regarding water currently, and how are these being managed? 4.1 How will these affect the options under discussion? 5 Are there any water saving mechanisms that the Power Stations are already embarking on, and how will these affect any of the options discussed? 6 Which of the 4 options will have significant water implications and how? Will there be a requirement for more or less water?
Author/Reviewer Water Discussion Guide 3-Feb-17 SRK Consulting Page 2 6.1 If they require more water, will this have any potential implications on the communities’ current water supply? 6.2 Will they continue getting water, or if they do not pay for water currently, will there be a need to start paying for water? 6.3 If water is no longer available for the communities based on the demands for any of the options, are there any specific plans for alternative water supply? Will the municipalities have the resources to supply additional water if required? 7 What happens during drought periods, do any of the communities that rely on Eskom for water supply experience water restrictions? How is this communicated to the communities and what are the reactions? 8 Have there been instances at any of the Power Stations where communities expressed concerns regarding the quality of water and how are these managed?
Author/Reviewer Water Discussion Guide 3-Feb-17 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Eskom Generation Fleet Renewal Project: Socio-Economic Study Discussion Guide: Eskom Foundation
Purpose x Get an understanding of the key focus areas of the Eskom Foundation x Look in particular at the programmes in communities surrounding the four power stations and their impacts
1 What is Eskom Foundation’s current involvement at the four Power Stations? 1.1 Which communities and which groups are beneficiaries? 2 Current status of these projects/ programmes per site? 3 Criteria for selecting key beneficiaries and how does one qualify to become a beneficiary? 4 What are the impacts of these projects and programmes on the surrounding communities in terms of: 4.1 Employment 4.2 Skills development 4.3 Capacity building 4.4 Procurement 4.5 Other? 5 Have there been any incidences where the projects or programmes could not be implemented and how was this managed? 6 Who are the key developmental partners at the four sites? 7 What are the key developmental priorities for each of the 4 sites into the future? 8 How resilient are the communities in these areas in terms of their capacity to absorb change?
Author/Reviewer Eskom Foundation Discussion Guide 3-Feb-17 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Eskom Generation Fleet Renewal Project: Socio-Economic Study Discussion Guide: Nkangala and Steve Tshwete Municipalities Purpose x Socio-economic information for communities surrounding Hendrina, Komati and Arnot Power Stations. x Key stakeholders and community groups at the above power stations and how the Municipalities engage with them. x Potential impacts of the above power stations on the municipalities and surrounding communities
1 Socio-economic data of the affected communities- demographics, employment, income, skills, education, health, services, infrastructure etc. 2 What are the communities and key stakeholders around Hendrina, Komati and Arnot Power Stations? What are their needs, issues, interests and what power or influence do they potentially wield? 3 How are these stakeholders engaged by the municipalities? 4 What community issues and grievances are commonly recorded and how are these addressed? 5 Is there a structured engagement process between the power stations and the Municipalities and how is this carried out? 6 Are there any commitments made by the municipalities to the surrounding communities and what are the implications for the different options? 7 What are the current CSI, IDP and LED commitments made by the Municipalities to the surrounding communities? Do the power stations play a role in this process?
Author/Reviewer Nkangala and Steve Tshwete 3-Feb-17 SRK Consulting Page 2 8 How dependent are the surrounding communities and the municipality on the Power Stations, and how will these be affected by the different options? E.g. water provision, employment etc. 9 What were the social and economic impacts of the mothballing of Power Stations and the Return to Service?
Author/Reviewer Nkangala and Steve Tshwete 3-Feb-17 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Eskom Generation Fleet Renewal Project: Socio-Economic Study Discussion Guide: Gert Sibande and Msukaligwa Municipalities Purpose x Socio-economic information for communities surrounding Camden Power Station. x Key stakeholders and community groups at the above power stations and how the Municipalities engage with them. x Potential impacts of the above power stations on the municipalities and surrounding communities
1 Socio-economic data of the affected communities- demographics, employment, income, skills, education, health, services, infrastructure etc. 2 What are the communities and key stakeholders around Camden Power Station? What are their needs, issues, interests and what power or influence do they potentially wield? 3 How are these stakeholders engaged by the municipalities? 4 What community issues and grievances are commonly recorded and how are these addressed? 5 Is there a structured engagement process between the power stations and the Municipalities and how is this carried out? 6 Are there any commitments made by the municipalities to the surrounding communities and what are the implications for the different options? 7 What are the current CSI, IDP and LED commitments made by the Municipalities to the surrounding communities? Do the power stations play a role in this process?
Author/Reviewer Gert Sibande and Msukaligwa 3-Feb-17 SRK Consulting Page 2 8 How dependent are the surrounding communities and the municipality on the Power Stations, and how will these be affected by the different options? E.g. water provision, employment etc. 9 What were the social and economic impacts of the mothballing of Power Stations and the Return to Service?
Author/Reviewer Gert Sibande and Msukaligwa 3-Feb-17 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Generation Fleet Renewal Project- Socio-Economic Study Hendrina Power Station, 19 September 2016
Distribution: Andrew Hart (SRK Consulting) Beauty Mazibuko (Eskom) Ashwin Rampersad (Eskom) Justice Ramagoma (Eskom) Morongwe Raphasha (Eskom)
Agenda
1 Welcome and Introduction
2 Overview of the Fleet Renewal Project – Socio-economic studies
3 Information requirements and outcomes
4 Overview of the Hendrina Power Station 4.1 Technical/Engineering 4.1.1 Technical overview 4.1.2 Employment (direct and indirect) 4.1.3 Fuel sourcing 4.1.4 Strategic importance 4.2 Environmental 4.2.1 Air pollution 4.2.2 Water pollution and supply 4.2.3 Management plans and authorisations 4.2.4 Grievances and resolution 4.3 Stakeholder/community 4.3.1 Definition of the Zone of Influence (host communities) 4.3.2 Engagement and interactions (include local communities and municipality) 4.3.3 Grievances and resolution 4.3.4 Current CSI/LED
5 General discussion and questions
6 Way forward and meeting close
Notice prepared by: Andrew Hart
HARA Eskom Fleet – Hendrina PS 19 Sept 2016 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Generation Fleet Renewal Project- Socio-Economic Study Arnot Power Station, 21 September 2016
Distribution: Andrew Hart (SRK Consulting) Beauty Mazibuko (Eskom) Shamiel Jappie (Eskom) Mariam Joseph (Eskom) Tshepo Mokgatle (Eskom)
Agenda
1 Welcome and Introduction
2 Overview of the Fleet Renewal Project – Socio-economic studies
3 Information requirements and outcomes
4 Overview of the Arnot Power Station 4.1 Technical/Engineering 4.1.1 Technical overview 4.1.2 Employment (direct and indirect) 4.1.3 Fuel sourcing 4.1.4 Strategic importance 4.2 Environmental 4.2.1 Air pollution 4.2.2 Water pollution and supply 4.2.3 Management plans and authorisations 4.2.4 Grievances and resolution 4.3 Stakeholder/community 4.3.1 Definition of the Zone of Influence (host communities) 4.3.2 Engagement and interactions (include local communities and municipality) 4.3.3 Grievances and resolution 4.3.4 Current CSI/LED
5 General discussion and questions
6 Way forward and meeting close
Notice prepared by: Andrew Hart
HARA Eskom Fleet – Arnot PS 21 Sept 2016 SRK House 265 Oxford Road Illovo 2196 P O Box 55291 Northlands 2116 South Africa T: +27 (0) 11 441 1111 F: +27 (0) 11 880 8086 E: [email protected] www.srk.co.za
Generation Fleet Renewal Project: Socio-economic Study
Camden Power Station, 07 October 2016 at 08:45-09:45
Distribution: Beauty Mazibuko (Eskom), Adel Malebana (SRK), Ulindi Muller (Eskom), Fikile Sithole (Eskom), Gerda Janse van Vuuren, (Eskom), Sifiso Mzuliwini (Eskom) Thabiso Mpongo (Eskom)
Agenda
1 Welcome and introductions
2 Overview of the Fleet Renewal Project – Socio-economic studies
3 Information requirements and outcomes
4 Overview of Camden Power Station 4.1 Technical and engineering 4.1.1 Technical Overview 4.1.2 Employment (direct and indirect) 4.1.3 Fuel Sourcing 4.1.4 Strategic Importance 4.2 Environmental 4.2.1 Air pollution 4.2.2 Water pollution and supply 4.2.3 Management plans and authorisations 4.2.4 Grievances and resolutions 4.3 Stakeholder/ Community 4.3.1 Definition of the Zone of Influence (host communities) 4.3.2 Engagement and interactions (local communities and the municipality 4.3.3 Grievances and resolutions 4.3.4 Current CSI/LED
5 General discussions and questions
6 Way forward and meeting close
Notice prepared by: Adel Malebana
MALA Eskom Fleet – Camden Power Station 06 October 2016 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 86
Appendix C: Regional Context
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 87 Regional Context: District and Local Municipal Summary
For the purpose of this report, the regional ZoI describes the district and local municipal context of the four Eskom power stations. The Arnot, Hendrina, and Komati power stations are located in the Steve Tshwete Local Municipality within the Nkangala District Municipality, while Camden power station is located in the Msukaligwa Local Municipality in the Gert Sibande District Municipality (Figure C-1 and Figure C-2).
Figure C-1: Allocation of district and local municipalities in the regional ZoI District Context Nkangala District Municipality
Nkangala District Municipality is one of three district municipalities in Mpumalanga Province, and has its seat in Emalahleni in the Steve Tshwete Local Municipality. The Nkangala District Municipality is further comprised of six local municipalities (Delmas, Dr J.S. Moroka, Emalahleni, Emakhazeni, Steve Tshwete, and Thembisile). The Nkangala District Municipality contributes 32.0% to the overall Mpumalanga province and has a higher average annual population growth rate than the province (Nkangala District Municipality IDP, 2016/2017). Gert Sibande District Municipality
Gert Sibande District Municipality, like Nkangala District Municipality, is one of three district municipalities in the Mpumalanga Province, with its administrative seat in Ermelo in the Msukaligwa Local Municipality. It is the largest district municipality in the province spatially, and covers a total of 40.0% of Mpumalanga’s surface area. It is made up of seven local municipalities (Govan Mbeki, Albert Luthuli, Mkhondo, Msukaligwa, Lekwa, Pixley Ka Seme and Dipaleseng). Important transport corridors in the Gert Sibande District Municipality are the N11, N3 and the N17/N2, all of which are significant national and regional trade and transport routes.
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Figure C-2: Locality of power stations
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 89 Local Context Steve Tshwete Local Municipality
Steve Tshwete Local Municipality is located in the central part of Nkangala District Municipality, 150km east of Pretoria on the N4. Its towns are critical to numerous transport and development corridors, including the Maputo Corridor (N4), Emalahleni/Steelpoort Mining Resource Link and Emalahleni/Bethal/Richards Bay Corridor. Much of the economy and communication services of the Steve Tshwete Local Municipality are focused on these transport corridors. The Steve Tshwete Local Municipality is divided into three spatial settlement types, including:
x The small agricultural service villages which service the rural and farming community, including Kwa-Makalane, Mafube and Doornkop;
x Leisure towns of Presidentsrus and Kranspoort, where development is regulated to prevent identity and aesthetic loss; and,
x Towns and villages associated with power stations and mine operations, which have been developed by Eskom. These include Rietkuil, Pullenshope and Komati, all of which form part of this specific study’s ZoIs. Other mine-based towns such as Blinkpan, Naledi and Lesedi are home to many mine employees, and like the Eskom towns, are centres for social services and amenities.
Coal mining and energy generation are big sectors in the Steve Tshwete Local Municipality, and as a result, Steve Tshwete Local Municipality is a significant contributor to the Nkangala District Municipality economy, contributing 35.0% to the district GDP in 2014. This is second only to Emalahleni Local Municipality at 48.0% (Nkangala District Municipality IDP, 2016/2017). Msukaligwa Local Municipality
The Msukaligwa Local Municipality is the third largest economy in Gert Sibande District Municipality and comprises both rural and urban settlements, farmlands and nature reserves. The administrative seat of the Msukaligwa Local Municipality is in Ermelo, which is 19.5km northwest of the Camden power station. The Msukaligwa Local Municipality accounts for 14.3% of the Gert Sibande District Municipality population, and the economy is based largely on finance, community services, transport, trade and mining. Important centres include Ermelo, Breyten, Davel, Sheepmoor, Chrissiesmeer, Lothair and Warburton (Municipalities of South Africa, 2016).
Like the Steve Tshwete Local Municipality, Msukaligwa Local Municipality is a transport hub in terms of National roads, and its roads systems radiate outwards from Ermelo towards numerous trade centres and ports, including Johannesburg (N17), Durban, Richards Bay (N2/N11) and Swaziland (N17).
The age and gender composition of the population is a key determinant of population change and dynamics. Age distribution is an important indicator of both current and future needs regarding education, health care for children and elderly, employment opportunities for those in the economic age group and provision of social services such as pensions to those in need.
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A summary table of demographic indicators collected from StatsSA Census 2011, with inputs from IDP’s has been provided in Table C-1. Indicators across both districts and local municipalities suggest the following general patterns for the region:
x The majority of the population in the region is comprised of Black Africans;
x Excluding Gert Sibande District Municipality, settlement distribution is largely urban, with dispersed farm settlements throughout the Steve Tshwete Local Municipality;
x Steve Tshwete Local Municipality has a high population growth rate, which exceeds all other local municipalities in Nkangala District Municipality;
x Across the regional ZoI, the majority of the population is of working age and below the ages of 35, with a high dependency rate associated with a significant youthful population below 18 years old; and,
x Females account for the larger portion of the populations in all but the Steve Tshwete Local Municipality, where there is a larger male population, which may be liked to high levels of migration into the Steve Tshwete Local Municipality discussed later on in this report.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 91 Table C-1: Summary demographic table for district and local municipalities applicable to the regional ZoI
2001-2011 Population Structure Age Gender Settlement type (%) Growth rate Area (%) (%) ratio (%) Population Persons / (%) (km 2) size km 2 Traditional / Population Urban % % Age group % F M Farm group Black African: 87.9 0-14 years 28.5 White 9.9 15-64 years 66.5 Nkangala District 16 758 1 308 129 78 62.9 37.1 2.5 Indian/Asian 0.7 51.9 48.1 Municipality Coloured 1.1 65+ years: 5.0 Other 0.4 Black African: 73.6 0-14 years 25.0
Steve White 21.8 15-64 years 70.7 Tshwete 3 976 229 831 58 88.7 11.3 4.8 Indian/Asian 1.6 48.0 52.0 Local Municipality Coloured 2.6 65+ years: 4.3 Other 0.4 Black African: 88.6 0-14 years 31.6 White 9.0 15-64 years 63.9 Gert Sibande District 31 841 1 043 194 33 39.0 61.0 1.5 Indian/Asian 1.1 51.8 48.2 Municipality Coloured 1.0 65+ years: 4.5
Other 0.3 Black African: 88.1 0-14 years 30.4 White 9.8 15-64 years 65.5 Msukaligwa Local 6 016 149 377 25 80.1 19.9 1.8 Indian/Asian 1.1 50.4 49.6 Municipality Coloured 0.6 65+ years: 4.1 Other 0.4 Source: StatsSA, 2011.
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Migration into the regional ZoI is above national average (0.9 migrants per 1 000 people), which could be for a number of reasons including push factors from sending countries as well as pull factors from South Africa, traditionally a labour intensive economy. Mining, industry and agriculture, which are prevalent in the region would all attract outside work seekers in search of employment. StatsSA census data suggests that there are a significant number of migrants coming from outside of South Africa into the ZoI region (StatsSA, 2011). Figure C-3 below illustrates the in migration of people from outside of South Africa between 2001 and 2011 into the ZoI region.
25 000
20 000
15 000
10 000 No of migrants migrants of No
5 000
0 2007 2008 2009 2010 2011 Total NDM 2 616 3 651 3 936 4 224 5 505 19 932 STLM 606 891 918 921 1 305 4 641 GSDM 1 458 1 839 2 241 2 391 2 964 10 893 MLM 210 267 285 303 336 1 401
ESKOM SOCIAL BASELINE Project No. MIGRATION INTO REGIONAL ZOI FROM OUTSIDE 506503 OF SOUTH AFRICA
Figure C-3: Migration into regional ZoI from outside of South Africa Source: StatsSA, 2011. Land Use
As outlined in Table C-2, land use in the regional ZoI can be broadly defined as largely residential, with more agricultural (farm) land use occurring in the Gert Sibande District Municipality and Msukaligwa Local Municipality. Industrial land uses occurred proportionately more in Steve Tshwete Local Municipality than the other local and district municipalities, while informal residential settlements were notably higher in Msukaligwa Local Municipality. Very little vacant land or parks and recreational land was observed in any of the municipalities (StatsSA, 2011).
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 93 Table C-2: Land use in the regional ZoI
Land Use % of land Nkangala Steve Tshwete Gert Sibande Msukaligwa District Local District Local Municipality Municipality Municipality Municipality Formal Residential 54.7 80.8 61.5 67.1 Informal Residential 6.4 7.3 5.0 11.2 Traditional Residential 31.1 - 16.3 - Farms 4.5 8.8 14.8 19.7 Parks and Recreation 0.0 0.1 0.1 0.1 Collective Living Quarters 1.1 1.1 0.7 1.2 Industrial 0.6 1.5 0.4 0.4 Small Holdings 1.1 - 0.8 - Vacant 0.2 0.0 0.2 0.1 Commercial 0.4 0.5 0.4 0.1 Source: StatsSA, 2011. Housing
Across all four municipal designations, most houses are brick structures on separate stands or yards. However, traditional dwellings are more prevalent in Camden power station’s district and local Municipalities, where perhaps the presence of more rural, farm-based livelihoods are apparent and there are less mines and industry. Informal dwellings, in keeping with the higher population growth rates and more labour intensive job opportunities, are more prevalent in the Nkangala District Municipality and Steve Tshwete Local Municipality (StatsSA, 2011). A full breakdown of housing types is provided in Table C-3.
Table C-3: Housing types in the regional ZoI
Type of main dwelling No. of houses per type Nkangala Steve Gert Sibande Msukaligwa District Tshwete District Local Municipality Local Municipality Municipality Municipality House or brick structure on a separate 271 206 46 875 184 248 28 362 stand or yard Traditional dwelling/hut/structure 8 646 1 101 27 144 3 993 made of traditional materials Flat in block of apartments 6 537 2 148 5 295 1 275 Cluster house in complex 1 407 504 723 87 Townhouse 2 895 1 092 1 299 156 Semi-detached house 1 374 441 1 260 51 House/flat/room in backyard 7 512 2 247 3 744 687 Informal dwelling/shack (in backyard) 15 849 4 014 13 509 1 509 Informal dwelling (shack not in 33 666 5 175 32 424 4 206 backyard) Room/flatlet not in back yard but on a 4 419 624 1 311 213 shared property Caravan or tent 435 114 321 54 Source: StatsSA, 2011.
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As illustrated in Table C-4, employment in the regional ZoI is varied. The Steve Tshwete Local Municipality has the highest percentage of working-aged (15+ years) employed people at 52.9% and the lowest percentage of economically inactive people (30.9%). The Nkangala District Municipality has the higher unemployment rate of the two districts, however it is marginal. Dependency on the employed population can be assumed high, with all four municipalities occupied by upwards of 30.0% not economically active people (StatsSA, 2011).
Table C-4: Employment levels in the regional ZoI
% of population Nkangala Steve Tshwete Gert Sibande Msukaligwa District Local District Local Municipality Municipality Municipality Municipality Employed 40.9 52.9 38.9 42.6 Unemployed 17.5 13.0 16.5 15.6 Discouraged work-seeker 4.9 3.1 5.3 5.4 Not economically active 36.7 30.9 39.4 36.4 Source: StatsSA, 2011. Employment Sectors
A comprehensive breakdown of employment per sector is provided in Table C-5. Both community services and trade feature as one of the top three employment sectors in the regional ZoI. The locality of the municipalities on important transport and trade corridors can be seen as the reason for the high employment in the trade sector.
Community services are a big employment sector in most parts of South Africa, with many social service requirements and resources responsible for local and district population’s social services and well-being. This is particularly true of the Nkangala District Municipality, which has a rapidly growing population. Excluding the Msukaligwa Local Municipality, mining is also a significant employment sector. In Msukaligwa Local Municipality, due to its rurality and land use, agriculture is the second largest employment sector (StatsSA, 2011).
Table C-5: Employment sectors in the regional ZoI
% of population Nkangala Steve Tshwete Gert Sibande Msukaligwa District Local District Local Sector Municipality Municipality Municipality Municipality Agriculture 3.4 5.6 9.9 20.3 Mining 18.3 22.7 8.4 9.8 Manufacturing 7.1 12.6 10.6 5.4 Utilities 3.8 2.2 1.5 0.7 Construction 7.0 6.7 6.7 5.3 Trade 20.0 19.4 22.1 17.7 Transport 4.5 3.1 3.6 5.4 Finance 11.5 6.7 9.8 5.7 Community Services 13.6 13.7 18.3 20.8 Private Household 10.7 7.2 9.1 8.9 Source: StatsSA, 2011.
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Annual household income is distributed similarly across the four municipalities (See Figure C-3). The greatest prevalence of no income was found in the Nkangala District Municipality. However, the Steve Tshwete Local Municipality had the lowest instance of no income households. Excluding the Steve Tshwete Local Municipality, the most prescribed income bracket was R19 601- Household income is a useful variable to consider R38 200, which is classified as a low to because it brings to light the fact that although middle income bracket. This, along with the households are comprised of individual members remaining prescription to income brackets of the community, income earning individuals are suggests that the municipalities are made not spread equally throughout these households. up of households, which have relatively to Low or no income makes a household more extremely low incomes, which are vulnerable. exceeded by the needs and means by which households require to live. This is further exacerbated by household size, where larger households have very little income to equally distribute amongst dependants as household size increases (NFM, 2013). Steve Tshwete Local Municipality has the largest percentage of middle to upper income earners when compared to Msukaligwa Local Municipality.
45
40 none 35 R 1 - R 9 600 30 R 9 601 - R 38 200 25
20 R 38 201 - R 76 400
15 R 76 401 - R 307 600 % households % of 10 R 307 601 - R 614 400 5 Over R 614 001 0 NDM STLM GSDM MLM Municipality
ESKOM SOCIAL BASELINE Project No. ANNUAL HOUSEHOLD INCOME IN THE REGIONAL 506503 ZOI
Figure C-3: Annual household income in the regional ZoI Source: StatsSA, 2011.
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The level of education in all four Education and literacy levels are key indicators municipalities (Table C-6) is better than of development in a population. Education the provincial average, with Nkangala attainment levels as well as access to District Municipality having the best education facilities are also important indicators education out of the two district to take into account. municipalities. In the Nkangala District Municipality IDP 2016/2017, Steve Tshwete Local Municipality is listed as the local municipality with the highest number of people over 20 with a matric, the highest matric pass rate, as well as the second lowest percentage of non- educated people in the province (Nkangala District Municipality IDP 2016/2017).
The Gert Sibande District Municipality has the higher prevalence of non-educated people over 20; however, primary education was higher in both the Gert Sibande District Municipality and Msukaligwa Local Municipality when compared to Nkangala District Municipality and Steve Tshwete Local Municipality. Secondary education levels were in line with the Nkangala District Municipality in Gert Sibande District Municipality and Msukaligwa Local Municipality, but lower than Steve Tshwete Local Municipality. Tertiary education, like much of South Africa and Mpumalanga, is low which can be attributed to (amongst other reasons) lack of tertiary education campuses in the municipalities (other than Further Education and Training (FET) colleges) as well as financial constraints presented by attending tertiary institutes.
Table C-6: Highest education level achieved in regional ZoI
% of population over 20 years No Certificate/Diploma Primary Secondary Tertiary Schooling with less than Matric Nkangala District 9.6 32.6 55.8 0.4 1.6 Municipality Steve Tshwete 7.2 27.8 61.7 0.6 2.7 Local Municipality Gert Sibande District 10.4 35.4 52.3 0.3 1.7 Municipality Msukaligwa Local 9.9 33.7 54.4 0.4 1.7 Municipality Source: StatsSA, 2011. The presence of rural, farm schools in the Gert Sibande District Municipality and Msukaligwa Local Municipality provide many in the municipality with an education. In both instances of the Gert Sibande District Municipality and Msukaligwa Local Municipality, primary school facilities exceed secondary facilities (Gert Sibande District Municipality, 2016). This is reflected in the figures in Table C-7, where there is a decline in level of education following primary school. As such it can be said there is a link between the number of schools available and the number of students who are then able to attend school.
The figures for Steve Tshwete Local Municipality are concerning, with a total of 45 schools, even though the municipality has the best education levels of all four municipalities concerned. All four municipalities have an FET college, but as mentioned previously, no university tertiary institution. Skills levels are an important indicator, because employment of local personnel is important for local economic development.
It could therefore be assumed that the number of educational facilities in the four municipalities does not allow for the growth of the skills base in the area, which appears low.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 97 Table C-7: Educational facilities in the regional ZoI
Municipality Primary Secondary Combined Tertiary / FET Total School School School Nkangala District 218 102 - 1 (5 FET 321 Municipality campus’) Steve Tshwete Local 25 19 - 1 (FET) 45 Municipality Gert Sibande District 150 77 - 1 228 Municipality Msukaligwa Local 96 12 7 1 116 Municipality Source: StatsSA, 2011; Msukaligwa Local Municipality IDP 2016/2017; Steve Tshwete Local Municipality IDP 2016/2017; Gert Sibande District Municipality Draft IDP 2016/2017; Nkangala District Municipality IDP 2016/2017. Health Healthcare Infrastructure
The healthcare facilities available to municipalities are illustrated in Table C-8. Both districts have a similar number of facilities available, however the large populations in the districts, compounded by accessibility mean these facilities are inadequate to cope with the populations healthcare needs. Lack of beds, staff and chronic medication are all issues identified in IDPs for municipalities. Steve Tshwete Local Municipality and Msukaligwa Local Municipality have very few healthcare facilities, and only four mobile clinics each.
Table C-8: Healthcare facilities in the regional ZoI
Municipality Government Private Primary Mobile Total Hospital Hospitals Healthcare Clinics Clinics Nkangala District 9 - 86 21 116 Municipality Steve Tshwete 1 0 13 4 18 Local Municipality Gert Sibande 9 - 81 28 118 District Municipality Msukaligwa Local 1 1 10 4 16 Municipality Source: Msukaligwa Local Municipality IDP 2017/2017. Common Ailments
The top ten most common causes of death in three of the municipalities (excluding Msukaligwa Local Municipality) are listed in Table C-9. It is clear that HIV/Aids is a common cause of death across the municipalities, and that Aids related deaths including TB, pneumonia and diabetes could mean that HIV/Aids related deaths are in fact higher.
Road accidents and external accidental incidents feature highly and could be an indication of poor road conditions as well as negligent driving and un-roadworthy vehicles.
The presence of stillbirth/premature births are concerning, and highlights birthing shortfalls in the municipalities, in which resources, including beds, midwives and accessibility remain a problem for the majority of the population.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 98 Table C-9: Common ailments in the regional ZoI
Common ailment Municipality Nkangala Steve Tshwete Gert Sibande Msukaligwa District Local District Local Municipality Municipality Municipality Municipality Pneumonia 9 9 Data not immediately available in desktop format.
Acute respiratory infections 9 9 9 Data not immediately Bronchitis and available in bronchopneumonia 9 desktop format. Immune suppression/HIV/Aids 9 9 9
Head injuries arising from motor vehicle accidents 9 Gastro cardiac conditions/ heart disease 9 9 9 Diabetes 9 9 9
Mellitus 9 9
Stillbirths/prematurity 9 9
Tuberculosis 9 9 9
Diarrhoeal/intestinal disease 9 9
Road injuries 9
Meningitis/Encephalitis 9
Cerebrovascular disease 9 9
External causes of accidental injury 9 Source: Nkangala District Municipality IDP 2016/2017; Steve Tshwete Local Municipality IDP, 2016/2017; Department of Health, 2013 HIV/Aids
The HIV/Aids prevalence in the Nkangala District Municipality is the lowest in the province, however HIV/Aids it nevertheless high. The prevalence has increased from 27.2% in 2010 to 34.5% in 2013 (7.0% increase). Rapid economic development, population growth, immigration, low education levels and social pathologies (including crime and prostitution) can be linked to the increase over the past few years. Access and inadequate protective and preventative knowledge in the rural parts of the municipality are exacerbating factors. Steve Tshwete Local Municipality has experienced the second highest increase in HIV/Aids prevalence in the Nkangala District Municipality (by 24.0%), from 28.8% in 2010 to 52.2% in 2013 (Nkangala District Municipality IDP 2016/2017 and Steve Tshwete Local Municipality IDP, 2016/2017).
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 99 In comparison, the Gert Sibande District Municipality has the highest HIV/Aids rate among women (46.0% in 2012) which has repercussions for mother to child transfer levels in the district. Gert Sibande District Municipality also has the highest infection rate in Mpumalanga, which as a province has the second highest infection rate next to KwaZulu Natal (Department of Health, 2013). Additionally, Gert Sibande District Municipality has a significant vulnerable group: namely HIV/Aids orphans, who account for the largest orphan group in the district (Gert Sibande District Municipality IDP, 20176/2017). According to the Department of Health, in 2013, Msukaligwa Local Municipality had an HIV prevalence rate of 38.0%. Both the Gert Sibande District Municipality and the Msukaligwa Local Municipality have been identified and are now involved in the National Health Insurance pilot project, which aims to improve health infrastructure and services in areas where they are most needed. Part of this includes the role out of anti-retroviral drugs, HIV/Aids testing and counselling for those infected with the virus (News24, 2013). Services Infrastructure Transport
Transport covers both the road infrastructure and public transport system operating in the ZoI.
The main access roads in the ZoI are the N2 and N17. Provincial and regional roads include the R35, R39, R65 and R542. There are a number of dirt roads that criss-cross the area linking these official roads to settlements and amenities. The servicing of the provincial and district roads is the responsibility of the Department of Transport, Nkangala District Municipality, Steve Tshwete Local Municipality, Gert Sibande District Municipality and the Msukaligwa Local Municipality in their respective municipal areas. The roads in the area are generally in a varied condition, ranging from very poor (secondary and district roads that experience high volumes of heavy vehicle traffic as well as those within informal settlements) to fair (in the case of the N2) condition. Based on Automobile Association of South Africa (AA) assessment of the roads, a summary of the road types and condition is summarised in Table C-10 (AA, 2016).
It should be noted that several of these roads are currently being upgraded or will be upgraded in the future as part of general maintenance and improvement projects.
Table C-10: Provincial and district roads within the regional ZOI
Road Surface Type Road Condition N2 Tar Fair to poor; uneven in places N17 Tar The road is in fair to poor condition, uneven and potholed in places R65 Tar Fair R35 Fair to poor, subsistence in areas R39 Tar Fair Source: AA, 2016. The primary form of transport throughout the area is walking. Public transport in the ZoI includes private busses and mini bus taxis. Private busses do not service the outer lying areas of the regional ZoI and generally stick to the provincial roads. Poor road conditions impact on the wear and tear of the mini bus taxis and limit their services provided to the outer lying rural areas. As such, people walk long distance to get to where they need to be.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 100 Refuse Removal
Refuse removal services in the municipalities (Table C-11) are varied, with Steve Tshwete Local Municipality having the most comprehensive removal services available, which is significantly better than the district access, which can be deemed as low (49.7%). The percentage of people with no access to refuse removal is low overall, however the use of households own refuse dumps is above 20.0% in all municipalities except Steve Tshwete Local Municipality (StatsSA, 2011). Rurality is listed in both the Nkangala District Municipality and the Msukaligwa Local Municipality as a constraint in access for refuse removal systems into areas that currently are not serviced (Msukaligwa Local Municipality IDP, 2016/2017; Nkangala District Municipality IDP, 2016/2017). Refuse removal access to those that are not serviced was listed in all four municipalities IDPs as an issue and priority area.
Table C-11: Refuse facilities in the regional ZoI
Type of refuse removal % of households Nkangala Steve Tshwete Gert Sibande Msukaligwa District Local District Local Municipality Municipality Municipality Municipality Refuse removed by municipality or private 49.7 86.3 64.6 66.9 company Own refuse dump 39.8 9.6 25.0 20.9
No refuse removal 6.3 2.4 8.0 8.1 Other 4.2 1.7 2.5 4.1 Source: StatsSA, 2011. Sanitation
As illustrated in Table C-12, a small percentage of the regional ZoI does not have access to any sanitation facilities (below 3.0% in Nkangala District Municipality and Steve Tshwete Local Municipality and 6.0% in Gert Sibande District Municipality and Msukaligwa Local Municipality). However, access to flush toilet facilities is low (51.9%) in the Nkangala District Municipality when compared to the other three municipalities. Steve Tshwete Local Municipality has the highest percentage of people using flush toilets (84.6%), but also the highest number of people forced to use bucket toilet for their ablutions (3.2%), an indication of high poverty and poor service delivery experienced by those households. Although sanitation is improving in the regional ZoI according to IDP’s, the use of pit toilets is still significant, particularly in the Nkangala District Municipality (StatsSA, 2011).
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 101 Table C-12: Sanitation facilities in the regional ZoI
% of households
Type of sanitation Nkangala Steve Tshwete Gert Sibande Msukaligwa District Local District Local Municipality Municipality Municipality Municipality
None 2.5 2.1 5.2 5.1 Flush toilets connected 49.4 82.6 65.8 74.7 to a sewage system Flush toilets with a 2.3 2.0 2.1 2.4 septic tank Pit toilets with 10.7 3.3 10.7 3.6 ventilation Pit toilet without 32.7 5.7 14.4 12.3 ventilation Chemical toilets 1.1 1.2 2.2 0.8
Bucket toilet system 1.3 3.2 0.8 1.2
Source: StatsSA, 2011. Water
As provided in Table C-13, both the Steve Tshwete Local Municipality and Msukaligwa Local Municipality have, generally, better access to piped water. Steve Tshwete Local Municipality has the smallest instances of no access to piped water (1.8%), while Msukaligwa Local Municipality has the highest number of households without access to piped water. The most prescribed source in three of the municipalities is piped water in the house, however in the Nkangala District Municipality, piped water in the yard is fractionally more (StatsSA, 2011).
In the Msukaligwa Local Municipality IDP (2016/2017), access to piped water is considered a challenge due to the rurality of the local municipality; with projects underway to ensure that borehole water can be accessed on farms. This is further challenging for the Msukaligwa Local Municipality because there is resistance from landowners to allow access to boreholes on their property for distribution to residents of rural Msukaligwa Local Municipality (Msukaligwa Local Municipality IDP 2016/2017). Water supply is a development priority in Steve Tshwete Local Municipality and access to piped water on and off site increased from 88.9% in 1996 to 98.2% in 2011 (Steve Tshwete Local Municipality IDP, 2016/2017).
Table C-13: Water sources in the regional ZoI
Source of Water % of households Nkangala Steve Tshwete Gert Sibande Msukaligwa District Local District Local Municipality Municipality Municipality Municipality No access to piped water 7.3 1.8 8.9 9.4 Piped water inside the 40.6 62.2 44.3 53.0 house Piped water in the yard 41.6 23.5 37.0 25.0 Communal standpipe 11.0 12.5 9.9 12.5 Source: StatsSA, 2011.
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Access to electricity for lighting is the highest electrical usage across the municipalities (Figure C- 4). Steve Tshwete Local Municipality has the largest percentage of households with access to electricity for cooking, heating and lighting, however, electricity for heating remains moderate (63.0%) (StatsSA, 2011).
100 90 80 70 60 50 40 NDM 30 STLM % population % of 20 GSDM 10 MLM 0 Electricity for cooking Electricity for heating Electricity for lighting NDM 73.2 60.4 85.7 STLM 81.8 63.0 90.8 GSDM 62.9 49.4 83.4 MLM 49.1 42.7 74.7 Usage format (%)
ESKOM SOCIAL BASELINE Project No. ELECTRICITY ACCESS FOR COOKING, HEATING 506503 AND LIGHTING IN THE REGIONAL ZOI
Figure C-4: Electricity access for cooking, heating and lighting in the regional ZoI Source: StatsSA, 2011.
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Appendix D: Local Context
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 104 Hendrina ZoI Population Structure
StatsSA 2011 Census data shows that the population of the Hendrina ZoI is 28 287. Although no figure was available it was stated in the Steve Tshwete Local Municipality IDP that there had been an increase in the populations of wards 1, 2, 3 and 5. Reasons cited for the increase included the in-migration of people from the greater Mpumalanga region and from neighbouring Southern African countries, as well as the natural increase in the size of families (Steve Tshwete Local Municipality IDP, 2016/2017). The portion of the population leaving the area is those aged between 16 and 25 who leave in an effort to find employment (StatsSA, 2011). A breakdown of population structure per population group is provided in Table D-1 and represents a majority Black African population.
Table D-1: Population structure of Hendrina ZOI
Wards 1, 2, 3 and 5 Race Number Black African 25 326 Coloured 228 Indian/Asian 99 White 2634 Total 28 287 Source: StatsSA, 2011. Age and Gender
Attempting to understand the age distribution and gender stratification within the Hendrina ZoI is an important process as this can help to determine future needs in terms of employment, service delivery and health care.
The structure of the population in the ZoI appears to indicate that the majority of the population are under the age of 35 years (Figure D-1) and the ZoI has an overall young population. There are marginally more males than females in the population within the ZoI (StatsSA, 2011).
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80+
65 Ͳ 79
50 Ͳ 64
group 35 49
Ͳ Female Age 20 Ͳ 34 Male
10 Ͳ 19
0Ͳ 9
Ͳ20 Ͳ15 Ͳ10 Ͳ5 0 5 10 15 %of population
ESKOM SOCIAL BASELINE Project No. AGE TO GENDER DISTRIBUTION IN HENDRINA 506503 ZOI
Figure D-1: Age to gender distribution in Hendrina ZoI, 2011 Source: StatsSA, 2011. While a young population provides for a potentially physically strong workforce, this is also the age bracket most likely to contract HIV/Aids (Aids.gov, 2016). This results in associated health and social problems. Additionally, this age bracket is most likely to become despondent if tertiary education and employment opportunities are lacking, which can lead to social pathologies, such as crime. Finally, the high proportion of the population under the age of 15 increases the level of dependency in the Hendrina ZoI. Migration
In terms of migration into the Hendrina ZoI, migrants have been identified as largely foreigners (see Table D-2) in search of living space and employment opportunities (StatsSA, 2011).
Table D-2: Migration into Hendrina ZoI
2007 2008 2009 2010 2011 Province M F M F M F M F M F Gauteng 3 3 ------Mpumalanga 3 3 9 - - 3 3 3 3 - Limpopo ------3 Outside SA 6 6 24 15 3 21 30 12 48 27 Sub-total 12 12 33 15 3 24 33 15- 51 30- Grand Total 24 48 27 48 89 Source: StatsSA, 2011.
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As illustrated in Figure D-2, the major land use in the Hendrina ZoI is formal residential, which makes up 87.7% of all land use. Ownership statistics from the StatsSA 2011 Census indicate that 39.0% of the population rented accommodation, while 44.0% of the population occupy their properties rent- free (StatsSA, 2011).
Wards Land use 1, 2, 3 and 5 Ownership % Formal Residential 87.7 Rented Informal Residential 5.5
Traditional Residential - Owned but not yet paid off Farms 3.7 44% 39% Parks and Recreation - Occupied rent-free Collective Living Quarters -
Industrial 2.8 11% Owned and 6% Small Holdings - fully paid off Vacant - Commercial 0.4 Figure D-2: Land use and ownership in the Hendrina ZoI Source: StatsSA, 2011. Housing
The Hendrina ZoI consists of 8 106 households (StatsSA, 2011). These households include free standing formal structures, informal structures generally constructed from corrugated iron, and traditional structures built using materials such as mud, stone, and sticks using traditional methods.
As indicated in Table D-4, the majority of housing in the Hendrina ZoI is formal housing (brick structures on a separate stands or yards), however second to this is informal dwellings, largely shacks. Influx and population growth has led to an increase in informal dwellings in informal settlements and on farms, which can be attributed to the labour intense industries, including mining and energy generation, in the Hendrina ZoI.
The Steve Tshwete Local Municipality is currently assisting the community with the roll out of housing in a number of housing programmes, specifically the social housing and gap housing initiatives. Social housing projects aim to provide 10 000 housing units in the next 10 years to low income households, while the gap housing initiative includes a loan funded gap housing programme and a self-help housing programme (Steve Tshwete Local Municipality IDP, 2016/2017).
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 107 Table D-4: Housing types in Hendrina ZoI
Wards 1, 2, 3 and 5 Type of main dwelling Number
House or brick structure on a separate stand or yard 6 777 Traditional dwelling/hut/structure made of traditional materials 117 Flat in block of apartments 90 Cluster house in complex 6 Townhouse 24 Semi-detached house 3 House/flat/room in backyard 57 Informal dwelling/shack (in backyard ) 351 Informal dwelling (shack not in backyard e.g. in an informal settlement or on a farm) 624 Room/flatlet (not in back yard but on a shared property) 48 Caravan or tent 9 Source: StatsSA, 2011. Employment
Trends identified from an analysis of the available data sources (Table D-5) suggest that unemployment in the Hendrina ZoI is moderate, however only 44.6% of the working age population is employed. In addition, 32.2% of the population are not economically active, which indicates high dependency on those that are employed (StatsSA, 2011).
Table D-5: Employment levels in the Hendrina ZoI
Wards 1, 2, 3 and 5 Employment level % Employed 44.6 Unemployed 17.3 Discouraged work-seeker 5.9 Not economically active 32.2 Source: StatsSA, 2011. Employment Sectors
The improved access to formal education since 1996 is likely to increase the number of people available to be employed in skilled occupations. Much of those employed in the Hendrina ZoI are employed on farms.
Table D-6: Employment sectors in Hendrina ZoI
Wards 1, 2, 3 and 5 Sector % Formal 58.9 Informal 28.2 Private household 12.9 Source: StatsSA, 2011.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 108 Table D-6 suggests that more than half of those employed are employed in the formal sector (58.9%), while 12.9% are Hendrina Power station currently employs engaged in subsistence, home based 690 people, of which 665 are permanent. activities. The informal sector provides The majority of the employees (97%) are significant employment at 28.2% locally sourced from Pullens Hope. 76% of (StatsSA, 2011). The majority of employees are male while 24% are female temporarily and formally employed people - Eskom, 2016. in the area work in the local area. Household Income
According to the StatsSA 2011 Census data and as provided in Table D-7, only 12.4% of households in the Hendrina ZoI do not earn any income, while 29.2% respectively earn between R9 601.00 and R38 200.00 (StatsSA, 2011). However, 35.0% of households are comprised of one person, and as such, dependency is lower than other wards in the municipal area. This is indicative of migrant labourers and those living in small rooms and informal room lets in informal settlements. Other means of supplementing household incomes includes the growing of fruit and vegetables and the keeping of livestock, and 14.0% of the population rely on a household-based income.
Table D-7: Annual household income in Hendrina ZoI
Wards 1, 2, 3 and 5 Income % None 12.4 R 1 – R 4800 3.2 R 4801-R 9600 6.0 R 9601-R 19 600 11.6 R 19 601 – R38 200 17.6 R 38 201- R 76 400 20.0 R 76 401- R 153 800 15.3 R 153 801-R 307 600 9.1 R 307 601-614 400 3.5 R 614 001 – R 1 228 800 0.8 R 1 228 801 – R 2 457 600 0.4 Over R 2 457 600 0.3 Source: StatsSA, 2011. Education
Education levels in the Hendrina ZoI are relatively high with only 7.4% of community members over the age of 20 not having any form of education. The majority of the population have a secondary school education (55.7%). The more concerning factor in the Hendrina ZoI is the fact Despite a relatively high education level in the that only 3.1% of the community over the age of area, Hendrina currently struggles to source 20 have any form of tertiary education (StatsSA, the required skills from the local communities 2011). This is mainly due to the fact that tertiary – Hendrina Power station, 2016. education it is too expensive for most households to afford (Fin24, 2015). Education statistics are included in Table D-8.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 109 Table D-8: Highest level of education for people over 20 years of age in Hendrina ZoI
Wards 1, 2, 3 and 5 Highest level of education attained % No education 7.4 Primary School 33.4 Secondary School 55.7 Certificate/Diploma (without matric) 0.4 Tertiary Education 3.1 Source: StatsSA, 2011. The exact number of schools in the Hendrina ZoI was not immediately known to the specialist.
The distance that some learners are required to walk to school will have detrimental effects on access to education. Having to walk in excess of 10km daily is likely to reduce a learner’s desire and ability to access education. Additionally, the high proportion of learners walking to school raises issues of road safety and makes them susceptible to criminal activity (Pheladi, 2015). This is not necessarily true of the Hendrina ZoI, however may be relevant for the few living in more rural parts of the Hendrina ZoI. Health Infrastructure
There is no hospital in the ZoI, with the closest hospital in Ermelo. There are two clinics in Hendrina and one in Pullenshope. There are no clinics in ward 2, and upgrades are required to clinics in wards 1 and 5 (Steve Tshwete Local Municipality, 2016).
Issues raised by the community in ward 1, 2, 3 and 5 in terms of health infrastructure related specifically to the absence of a mobile clinic and 24-hour clinic service in each ward (Steve Tshwete Local Municipality, 2016). Services and Infrastructure Refuse Removal
As indicated in Table D-9, the majority of households in the Hendrina ZoI have either municipal or private refuse removal services (87.8%). Only 1.7% of households do not have any sort of refuse removal and therefore households are well serviced, which is in line with ease of access for services in urban areas (StatsSA, 2011). Currently Hendrina provides all refuse removal services in Pullenshope and the Woestalleen mines. The power station also utilises their own landfill site for waste disposal.
Table D-9: Refuse facilities in the Hendrina ZoI
Wards 1, 2, 3 and 5 Type of refuse removal % Refuse removed by municipality or private company 87.8 Own refuse dump 10.5 No refuse removal 1.7 Other 3.0 Source: StatsSA, 2011.
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The availability and access to sanitation services is an important social service, and can often be an indicator of a community’s social wellbeing. From Table D-10 it is clear that sanitation services are improved and flushing toilets are utilised by 61.4% of the ZoI, and only 5.3% of households had no sanitation facilities (StatsSA, 2011). Issues raised by communities in the ZoI in the 2016/2017 IDP for Steve Tshwete Local Municipality suggest that most farms in the Hendrina ZoI have no access to sanitation Currently all sewerage from Pullens Hope is infrastructure. Recent government treated at the Hendrina water treatment programmes have introduced Ventilation works – Hendrina power station, 2016. Improved Pit Latrines (VIPs) into communities. The lack of flushing toilets is due mainly to infrastructural constraints such as limited access to running water (Steve Tshwete Local Municipality, 2016).
Table D-10: Sanitation facilities in Hendrina ZoI
Wards 1, 2, 3 and 5 Type of sanitation % None 5.3 Flush toilets connected to a sewage system 58.3 Flush toilets with a septic tank 3.1 Pit toilets with ventilation 9.0 Pit toilet without ventilation 19.7 Chemical toilets 2.6 Bucket toilet system 2.1 Source: StatsSA, 2011. Water
The availability and access to reliable and clean drinking water is one of the fundamental services required by communities. Access to piped water is good in the Hendrina ZoI, and only 1.6% of households do not have access to piped water. An estimated 98.4% of households had access to a water connection either Hendrina currently provides both in their yard, within their dwelling or at a Pullenshope and Woestalleen mine with communal standpipe (StatsSA, 2016). potable water and electricity – Hendrina Areas without access were generally power station, 2016. more remote homesteads on farms. See Table D-11 for complete statistics.
Table D-11: Water sources in the Hendrina ZoI
Wards 1, 2, 3 and 5 Source of water % No access to piped water 1.6 Piped water inside the house 56.9 Piped water in the yard 32.0 Communal standpipe 9.5 Source: StatsSA, 2011.
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Electricity
Eskom is the sole distributor of bulk electricity in the Hendrina ZoI and electrical connections are prevalent in the area, particularly in Pullenshope and Hendrina town. The availability of electricity as an energy source is vitally important as households utilise it for cooking, heating and lighting. A summary of StatsSA Census 2011 in Table D-12 concludes that:
x The majority of households in the ZoI have access to municipal electricity; and, x The majority of households rely on electricity for cooking (69.8%), heating (66.6%) and lighting 89.7%).
Table D-12: Energy sources for cooking, heating and lighting in the Hendrina ZoI
Wards 1, 2, 3 and 5 Energy Source % Cooking Heating Lighting Electricity 69.8 66.6 89.7 Gas 1.5 1.5 0.5 Paraffin 2.6 0.7 0.4 Candles - - 9.2 Wood 2.2 2.6 - Charcoal 23.8 28.3 - Solar 0.2 0.2 0.3 Source: StatsSA, 2011.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 112 Arnot ZoI Population Structure
StatsSA Census 2011 data and Table D-13 shows that the population of the ZoI is 5 817, made up largely of Black African people (StatsSA, 2011).
Table D-13: Population structure of Arnot ZoI
Ward 7 Race Number Black African 4 677 Coloured 42 Indian/Asian 3 White 1 095 Total 5 817 Source: StatsSA, 2011. Age and Gender
The age distribution and gender structure of the population in the Arnot ZoI indicates that the majority of the population are under the age of 35 years (Figure D-3) and the area can be classified as having an overall young population. There are marginally more males than females in the population within the Arnot ZoI (StatsSA, 2011).
80 +
65 Ͳ 79
50 Ͳ 64
group 35 49
Ͳ Male Age 20 Ͳ 34 Female
10 Ͳ 19
0Ͳ 9
Ͳ20 Ͳ15 Ͳ10 Ͳ5 0 5 10 15 20 %of population
ESKOM SOCIAL BASELINE Project No. AGE TO GENDER DISTRIBUTION IN ARNOT ZOI 506503
Figure D-3: Age to gender distribution in Arnot ZoI Source: StatsSA, 2011.
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In terms of migration into the Arnot ZoI, it is minimal. However, migrants have been identified as largely foreigners in search of living space and employment opportunities. Table D-14 represents migration statistics (StatsSA, 2011).
Table D-14: Migration into Arnot ZoI
2007 2008 2009 2010 2011 Province M F M F M F M F M F Mpumalanga - - 3 - - - - - 3 - Limpopo - - - - 3 - - - - - Outside SA - - - - 9 6 3 - - 9 Sub-total - - - - 12 6 3 - 3 9 Grand Total - 3 18 3 12 Source: StatsSA, 2011. Land Use and Ownership
As indicated in Figure D-4, primary land use in the Arnot ZoI is formal residential (62.1%), however a significant amount of land is used for farming (24.9%) and industrial activities (13.1%). The land use data supports economic sectors active in the area, as well as ownership statistics, which suggest 53.0% of the population is renting (StatsSA, 2011). This would indicate a larger migrant and or labour force renting in the area where they work.
Ward 7 Land use % Ownership Formal Residential 62.1 Rented Informal Residential -
Traditional Residential - 17% Owned but not yet paid Farms 24.9 off Parks and Recreation - 16% Occupied 53% rent-free Collective Living Quarters - Industrial 13.1 14% Owned and fully paid off Small Holdings - Vacant - Commercial -
Figure D-4: Land use and ownership in Arnot ZoI
Source: StatsSA, 2011.
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The Arnot ZoI consists of 1 461 households (StatsSA, 2011). These households include free standing formal structures, informal structures generally constructed from corrugated iron and traditional structures built using materials such as mud, stone, and sticks using traditional methods.
The majority of housing in the Arnot ZoI is formal housing or brick structures on a separate stands or yards, however second to this is informal dwellings, largely shacks. A comprehensive account of housing types in the Arnot ZoI is illustrated in Table D-15 (StatsSA, 2011). Influx and population growth has led to an increase in informal dwellings in informal settlements and on farms. This can be attributed to the labour intense industries, including mining and energy generation, in the Arnot ZoI.
Like the Hendrina ZoI, the Steve Tshwete Local Municipality is currently assisting the community with the roll out of housing in a number of housing programmes, specifically the social housing and gap housing initiatives. Social housing projects aim to provide 10 000 housing units in the next 10 years to low income households, while the gap housing initiative includes a loan funded gap housing programme and a self-help housing programme (Steve Tshwete Local Municipality IDP, 2016/2017).
Table D-15: Types of housing in Arnot ZoI
Ward 7 Type of main dwelling Number House or brick structure on a separate stand or yard 1 326 Traditional dwelling/hut/structure made of traditional materials 120 Flat in block of apartments 6 Cluster house in complex - Townhouse - Semi-detached house 3 House/flat/room in backyard 6 Informal dwelling/shack (In backyard) 3 Informal dwelling (shack not in backyard e.g. in an informal settlement or on a 9 farm) Room/flatlet (not in back yard but on a shared property) 3 Caravan or tent - Source: StatsSA, 2011. Employment
Trends identified from an analysis of the available data sources and represented in Table D-16 suggest that unemployment in Arnot currently has 710 employees. The the Arnot ZoI is moderate, however only majority of employees (93%) reside in 38.9% of the working age population is Rietkuil. Approximately 27% are female employed. A high percentage (39.2%) of the and 63% male – Eskom, 2016. population is not economically active, which indicates high dependency on those that are employed (StatsSA, 2011).
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 115 Table D-16: Employment levels in Arnot ZoI
Ward 7 Employment level % Employed 38.9 Unemployed 16.5 Discouraged work-seeker 5.4 Not economically active 39.2 Source: StatsSA, 2011. Employment Sectors
The improved access to formal education since 1996 is likely to increase the number of people available to be employed in skilled occupations. Much of those employed in the Arnot ZoI are employed on farms. Employment per sector is detailed in Table D-17.
Table D-17: Employment sectors in Arnot ZoI
Ward 7 Sector % Formal 80.2 Informal 10.4 Private household 9.4 Source: StatsSA, 2011. The vast majority of the population is employed in the formal sector (80.2%), while 9.4% are engaged in subsistence, home based activities. The informal sector employs 10.4% (StatsSA, 2011). The majority of temporarily and formally employed people in the area work in the local area. Household Income
According to the StatsSA 2011 Census data and illustrated in Table D-18, only 6.2% of households in the Arnot ZoI do not earn any income, while 70% earn between R19 601.00 and R307 600.00. However, 35.0% of households are comprised of one person, and as such dependency is lower than other wards in the municipal area (StatsSA, 2011). This household size is indicative of migrant labourers and those living in small rooms and informal room lets in informal settlements. Other means of supplementing household incomes includes the growing of fruit and vegetables and the keeping of livestock.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 116 Table D-18: Annual household income in Arnot ZoI
Ward 7 Income % None 6.2 R 1 – R 4800 2.2 R 4801-R 9600 3.6 R 9601-R 19 600 8.4 R 19 601 – R38 200 12.0 R 38 201- R 76 400 19.6 R 76 401- R 153 800 20.8 R 153 801-R 307 600 17.6 R 307 601-614 400 7.4 R 614 001 – R 1 228 800 1.2 R 1 228 801 – R 2 457 600 0.4 Over R 2 457 600 0.4 Source: StatsSA, 2011 Education
Table D-19 suggests education levels in the Arnot ZoI are relatively high with only 7.4% of community members over the age of 20 not having any form of education. The majority of the population have a secondary school education (55.7%). The more concerning factor in the Arnot ZoI is the fact that only 3.1% of the community over the age of 20 have any form of tertiary education (StatsSA, 2011). This is mainly due to the fact that tertiary education it is too expensive for most households to afford (Fin24, 2015).
Table D-19: Highest level of education for people over 20 years of age in Arnot ZoI
Ward 7 Highest level of education attained % No education 7.4 Primary School 33.4 Secondary School 55.7 Certificate/Diploma (without matric) 0.4 Tertiary Education 3.1 Source: StatsSA, 2011. The exact number of schools in the Arnot ZoI was not immediately known to the specialist. Health Infrastructure
There is no hospital in the Arnot ZoI, with the closest hospital in Ermelo, and other healthcare facilities are not immediately apparent on facility maps for the Arnot ZoI, however there is a clinic in Rietkuil (Google Earth, 2016).
Issues raised by the community in the Arnot ZoI did not address healthcare facilities and infrastructure.
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The majority of households in the Arnot ZoI have either municipal or private refuse removal services (75.7%). Only 2.2% do not have any sort of refuse removal and therefore households are well serviced, which is in line with ease of access for services in urban areas (StatsSA, 2011). Refuse facilities are outlined in Table D-20.
Table D-20: Refuse facilities in Arnot ZoI
Ward 7 Type of refuse removal % Refuse removed by municipality or private company 75.7 Own refuse dump 20.7 No refuse removal 2.2 Other 1.4 Source: StatsSA, 2011. Sanitation
The availability and access to sanitation services is an important social service, and can often be an indicator of a community’s social wellbeing. Table D-21 displays the StatsSA 2011 Census data for sanitation in the Arnot ZoI. Sanitation services are improved and flushing toilets are utilised by 82.3% of the Arnot ZoI, and only 0.6% of households had no sanitation facilities (StatsSA, 2011). Issues raised by communities in the Arnot ZoI in the 2016/2017 IDP for Steve Tshwete Local Municipality suggest that waterborne sanitation facilities are required in Sikhululiwe Village (Steve Tshwete Local Municipality, 2016). Table D-21: Sanitation facilities in Arnot ZoI
Ward 7 Type of sanitation % None 0.6 Flush toilets connected to a sewage system 80.4 Flush toilets with a septic tank 1.8 Pit toilets with ventilation 6.5 Pit toilet without ventilation 8.7 Chemical toilets 0.6 Bucket toilet system 1.4 Source: StatsSA, 2011. Water
The availability and access to reliable and clean drinking water is one of the fundamental services required by communities. As per Table D-22, access to piped water is good in the Arnot ZoI, and only 3.2% of households do not have access to piped water. A total of 96.8% of households had access to a water connection either in their yard, within their dwelling or at a communal standpipe (StatsSA, 2011). Areas without access included Sikhululiwe Township, which has poor service delivery (Steve Tshwete Local Municipality, 2016).
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 118 Table D-22: Water sources in Arnot ZoI
Ward 7 Source of Water % No access to piped water 3.2 Piped water inside the house 57.6 Piped water in the yard 26.5 Communal standpipe 12.7 Source: StatsSA, 2011. Electricity
Eskom is the sole distributor of bulk electricity in the Arnot ZOI, and household access to electricity is good. The availability of electricity as an energy source is vitally important as households utilise it for cooking, heating and lighting. A summary of StatsSA Census 2011 statistics concludes that:
x The majority of households in the ZoI have access to municipal electricity; and,
x The majority of households rely on electricity for cooking (81.6%), heating (80.9%) and lighting (91.6%).
Access to electricity in Arnot ZoI is summarised in Table D-23.
Table D-23: Energy sources for cooking, heating and lighting in Arnot ZoI
Ward 7 Energy Source % Cooking Heating Lighting Electricity 81.6 80.9 91.6 Gas 0.4 0.6 0.4 Paraffin 1.4 0.4 0.4 Candles - - 7.4 Wood 10.0 10.4 - Charcoal 6.2 7.3 - Solar 0.2 0.2 0.2 Source: StatsSA, 2011.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 119 Komati ZoI Population Structure
As per Table D-24, the population of the Komati ZoI is estimated at 5 010 according to the StatsSA 2011 Census data. It has a majority Black African population and the white population second most represented group in the ZoI (StatsSA, 2011).
Table D-24: Population structure of Komati ZoI
Ward 4 Race Number Black African 3 966 Coloured 45 Indian/Asian 15 White 948 Other 6 Total 5 010 Source: StatsSA, 2011. Age and Gender
There are more males than females in the Komati ZoI (StatsSA, 2011), which supports the conclusion that migration is high in the area due to males seeking migrant work on mines and in some instances, farms. The population spikes in the working age groups, particularly amongst the 20-34 year groups, which is another indication of immigration (Figure D-5).
80 +
65 Ͳ 79
50 Ͳ 64
group 35 49
Ͳ Male Age Female 20 Ͳ 34
10 Ͳ 19
0Ͳ 9
Ͳ30 Ͳ20 Ͳ10 0 10 20 %of population
ESKOM SOCIAL BASELINE Project No. AGE TO GENDER DISTRIBUTION IN KOMATI ZOI 506503
Figure D-5: Age to gender distribution in Komati ZoI Source: StatsSA, 2011.
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Migration has been significant and gradually growing in the Komati ZoI since 2007 (Table D-25). Although some migrants have come from within South Africa, the majority (123 known migrants) have come from outside of South Africa (StatsSA, 2011). This is a trend across the country and within Mpumalanga Province, and is a result of neighbouring countries working population travelling to find perceived better living space and employment opportunities.
Table D-25: Migration into Komati ZoI
2007 2008 2009 2010 2011 Province M F M F M F M F M F North West - - 3 ------Mpumalanga - - - 3 - - - - 3 - Outside SA 9 6 12 15 12 21 3 3 18 24 Unspecified 3 3 9 Sub-total 9 6 18 18 12 21 6 3 27 27 Grand Total 15 36 33 9 54
Source: StatsSA: Census 2011 Land Use and Ownership
As indicated in Figure D-6, the Komati ZoI has varied land uses, most of which is residential. (of which 54.0% is formal and 27.6% informal). Land used for farming accounts for 17.4% of the Komati ZoI. High informal and formal residential patterns suggest that in-migration is significant, and the increasing population has led to urban sprawl and the growth of informal settlements, where most occupants are renting (StatsSA Census, 2011).
Ward 4 Land use Ownership % Formal Residential 54.0 Rented Informal Residential 27.6 11% Traditional Residential - Farms 17.4 19% Owned but not yet paid Parks and Recreation - off 67% Collective Living Quarters - 3% Occupied Industrial 1.1 rent-free Small Holdings - Vacant - Commercial -
Figure D-6: Land use and ownership in Komati ZoI
Source: StatsSA, 2011.
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Housing
As per Table D-25, the Komati ZoI consists of 1 137 households. Unlike some neighbouring wards, the Komati ZoI has very few traditional dwellings. The majority of houses are formal housing or brick structures as well as Informal dwellings, largely shacks, many of which are to be found in Komati (StatsSA, 2011). Influx and population growth has led to an increase in informal dwellings in informal settlements and on farms, which can be attributed to the labour intense industries, including mining and energy generation, in the Komati ZoI.
Table D-25: Types of housing in the Komati ZoI
Ward 4 Type of main dwelling Number House or brick structure on a separate stand or yard 1 137 Traditional dwelling/hut/structure made of traditional materials 21 Flat in block of apartments 9 Cluster house in complex 6 Townhouse - Semi-detached house 18 House/flat/room in backyard 36 Informal dwelling/shack: In backyard 45 Informal dwelling (shack; not in backyard e.g. in an informal settlement or on a farm) 624 Room/flatlet not in back yard but on a shared property 3 Caravan or tent 3 Source: StatsSA, 2011. Employment
The Komati ZoI has the lowest level of not economically employed population compared to the three other ZoI’s (see Table D-26). Employment is estimated at 56.5% of the population, a positive statistic. Only 14.7% are unemployed, however the 25.6% of the population that is not economically active will be reliant on members of the household that are, thus creating a significant dependency ratio for the ZoI (StatsSA, 2011).
Table D-26: Employment levels in Komati ZoI
Ward 4 Employment level % Employed 56.5 Unemployed 14.7 Discouraged work-seeker 3.2 Not economically active 25.6 Source: StatsSA, 2011.
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The improved access to formal education since 1996 is likely to increase the number of people available to be employed in skilled occupations. Many of those employed in the Komati ZoI are employed on farms. A summary of employment per sector is in Table D-27.
Table D-27: Employment sectors in Komati ZoI
Ward 4 Sector % Formal 82.1 Informal 12.4 Private household 5.5 Source: StatsSA, 2011. The formal sector accounts for 82.1% of all employment in the Komati ZoI, with only 12.4% working in the informal Komati power station currently employs 470 sector (StatsSA, 2011). Compared to people, of which 352 are permanent. The surrounding wards, the Komati ZoI has majority of the employees (439) are sourced a low number of people employed by from Emalahleni. 67% of employees are male private households, indicating less while 33% are female - Eskom, 2016. reliance on subsistence livelihoods. Household Income
As indicated in Table D-28, a notable percentage of households do not earn an annual income (17.9%), with the largest percentage of those earning an income of between R19 601.00 and R153 800.00 annually (57.0%). With 55.3% of households only averaging one person, dependency is relatively low in single households; however, in the 24.1% of households that have three or more occupants, dependency can be expected to be higher (StatsSA, 2011).
Table D-28: Annual household income in Komati ZoI
Ward 4 Income % None 17.9 R 1 – R 4800 2.0 R 4801-R 9600 2.8 R 9601-R 19 600 6.4 R 19 601 – R38 200 16.7 R 38 201- R 76 400 23.4 R 76 401- R 153 800 16.9 R 153 801-R 307 600 8.9 R 307 601-614 400 3.7 R 614 001 – R 1 228 800 0.8 R 1 228 801 – R 2 457 600 0.3 Over R 2 457 600 0.3 Source: StatsSA, 2011.
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Table D-29 suggests education levels in the Komati ZoI are positive, with 63.3% Despite a positive education level in the area, having completed secondary school Komati currently struggles to source the over the age of 20. Only 7.9% of the required skills from the local communities – population over 20 have not received Komati power station, 2016. any formal education. Like many wards in the province, tertiary education success is dire at only 0.7% of the population (StatsSA, 2011). This is again due to tertiary education costs (Fin24, 2015) and accessibility constraints for those wards and municipalities that do not have tertiary facilities in close proximity (Pheladi, 2015).
Table D-29: Highest level of education for people over 20 years of age in Komati ZoI
Ward 7 Highest level of education attained % No education 7.9 Primary School 27.9 Secondary School 63.3 Certificate/Diploma (without matric) 0.2 Tertiary Education 0.7 Source: StatsSA, 2011. According to the Steve Tshwete Local Municipality, there is the need for either an additional or new school in the Komati ZoI, and as such it has been listed as an urgent community need (Steve Tshwete Local Municipality, 2016). It appears that there is a primary school (Laerskool Koorfontein) in Komati Village, where the majority of the population reside (Google Earth, 2016). Rurality of farm communities is listed as a constraint to education progress in the ZoI, and initiatives have been put in place to improve public transport accessibility to schools in and around the ZoI. These include the grading of roads in rural areas of the ZoI to allow learners to travel to and from school using means other than walking, often across great distances (Steve Tshwete Local Municipality, 2016). Health Infrastructure
There is no hospital in the Komati ZoI and the nearest hospital is in Ermelo. The clinic in the ZoI (located in Komati) requires maintenance, however while this was listed as a need by the municipality, it was not a raised as a concern by the community (Steve Tshwete Local Municipality, 2016). Services Infrastructure Refuse Removal
Referring to Table D-30, refuse disposal by the municipality or private companies is afforded to 55.1% of the population, and is focused in the urban pockets of the Komati ZoI (including Komati Village). Only 1.8% of households that do not have any sort of refuse removal, while a significant 39.9% have their own refuse dumps (StatsSA, 2011). This is a hygiene concern and as such a health hazard, as stagnant refuse can both pollute and degenerate the land and water on/in which it sits.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 124 Table D-30: Refuse facilities in Komati ZoI
Ward 4 Type of refuse removal % Refuse removed by municipality or private company 55.1 Own refuse dump 39.9 No refuse removal 1.8 Other 3.2 Source: StatsSA, 2011. Sanitation
Sanitation in the Komati ZoI is varied (Table D-31); with urban pockets enjoying better services when compared to rural and informal settlements. The availability and access to sanitation services is an important social service, and can often be an indicator of a community’s social wellbeing. Flushing toilets are utilised by 55.7% of the Komati ZoI, and a significant 18.1% of households had no sanitation facilities available to them (StatsSA, 2011). Issues raised by Currently, the local municipality is responsible communities in the Komati ZoI in the for sanitation provision and services in Blinkpan 2016/2017 IDP for Steve Tshwete Local and Komati Village – Komati power station, Municipality, did not identify sanitary needs; 2016. however, statistics suggest the delivery of sanitation can be improved upon (Steve Tshwete Local Municipality, 2016).
Table D-31: Sanitation facilities in Komati ZoI
Ward 4 Sanitation type % None 18.1 Flush toilets connected to a sewage system 55.4 Flush toilets with a septic tank 0.3 Pit toilets with ventilation 1.9 Pit toilet without ventilation 20.0 Chemical toilets 0.5 Bucket toilet system 3.9 Source: StatsSA, 2011. Water
The availability and access to reliable and clean drinking water is one of the fundamental services required by Komati currently provides both water and communities. Access to piped water is good electricity to the Komati Village – Komati in Komati ZoI (see Table D-32). There are power station, 2016. 5.2% of households that do not have access to piped water and 61.3% of households that have access to a water connection either in their yard or within their dwelling. Communal standpipes provide a substantial portion of the population with water at 33.6% (StatsSA, 2011).
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Ward 4 Source of Water % No access to piped water 5.2 Piped water inside the house 50.1 Piped water in the yard 11.2 Communal standpipe 33.6 Source: StatsSA, 2011. Electricity
Eskom is the sole distributor of bulk electricity in the Komati ZoI. Electricity is available and used by over 56.0% of households for cooking, heating and lighting. However, in the instance of heating, 18.5% of households have no resources available to them, and candles still account for a large percentage of lighting in the Komati ZoI (37.4%). The availability of electricity as an energy source is vitally important for households, and is described in Table D-33 (StatsSA, 2011). The Steve Tshwete Local Municipality IDP for 2016/2017 indicated that Eskom had identified 373 houses in the following areas for future electrification, many of which are located in the rural localities of the Komati ZoI:
x Big House Farm: 52;
x Bronsy Farm: 18;
x Haasfontein Farm:15;
x Dericky's Farm: 15;
x Gelug Farm: 20;
x Mahlathini Farm: 180;
x Schoeman Farm: 29;
x Geluk Farm:8;
x Komati: 12;
x Driefontein Farm: 13; and,
x General: 11. Table D-33: Energy sources for cooking, heating and lighting in Komati ZoI
Ward 4 Energy Source % Cooking Heating Lighting Electricity 54.4 52.8 56.5 Gas 1.1 1.1 0.2 Paraffin 33.9 5.7 5.3 Candles - - 37.4 Wood 1.2 3.8 - Charcoal 9.2 18.5 - Solar 0.2 0.2 0.2 None 0.2 18.5 0.5 Source: StatsSA, 2011.
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National census data (illustrated in Table D-34) shows that the population of the Camden ZoI is 7 269 (StatsSA, 2011). Although no figure was available it was stated in the Msukaligwa Local Municipality 2016/2017 IDP that there had been an increase in the Camden ZoI population. Reasons cited for the increase include the in-migration of people from the greater Mpumalanga region and from neighbouring Southern African countries, as well as the natural increase in the size of families (Msukaligwa Local Municipality, 2016). The largest portion of the population leaving the area is those aged between 16 and 25 who leave in an effort to find employment.
Table D-34: Population Structure of Camden ZoI
Ward 11 Race Number Black African 7 122 Coloured 18 Indian/Asian 18 White 111 Total 7 269 Source: StatsSA, 2011. Age and Gender
Attempting to understand the age distribution and gender stratification within the Camden ZoI is an important process. The structure of the population in the Camden ZoI appears to indicate that the majority of the population are under the age of 35 years (Figure D-7) and the area can be classified as having an overall young population. There are marginally more females than males in the population within the ZoI (StatsSA, 2011).
80 +
65 - 79
50 - 64
35 - 49 Male
Age group Age 20 - 34 Female
10 - 19
0 - 9
-15 -10 -5 0 5 10 15 % of population
ESKOM SOCIAL BASELINE Project No. AGE TO GENDER DISTRIBUTION IN CAMDEN ZOI 506503
Figure D-7: Age to gender distribution in Camden ZoI Source: StatsSA, 2011.
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 127 While a young population provides for a potentially strong workforce, this is also the age bracket most likely to contract HIV/Aids (Aids.gov, 2016), resulting in associated health and social problems, and also the age bracket most likely to become despondent if tertiary education and employment opportunities are lacking, which can lead to social problems, such as crime. In addition, the high proportion of the population under the age of 15 increases the level of dependency in the Camden ZoI. Migration
Migration statistics appear incomplete for the Camden ZoI. StatsSA Census 2011 statistics suggest there have been no migrations into the Camden ZoI between 2007 and 2011 (StatsSA, 2011); however, this is unlikely if compared with migration patterns in surrounding wards and within Mpumalanga province. Land Use and Ownership
In terms of land use (see Table D-35), Camden ZoI has more designated farmland (37.7%) than any of the other three ZoI’s. The remaining 62.34% of land use is formal residential. At 34.0%, the Camden ZoI also has the highest number of residents living rent free (StatsSA, 2011), which is indicative of a community typically living on the farms they are employed on, with their families. Table D-35: Land use and ownership in Camden ZoI
Ward 11 Land use Ownership % Formal Residential 62.3 Rented Informal Residential - Owned but not Traditional Residential - 27% 27% yet paid off Farms 37.7 Parks and Recreation - Occupied rent- 12% free Collective Living Quarters - 34% Industrial - Owned and fully paid off Small Holdings - Vacant - Commercial - Source: StatsSA, 2011. Housing
The Camden ZoI consists of 1 527 households (see Table D-36). These households include free standing formal structures, informal structures generally constructed from corrugated iron and traditional structures built using materials such as mud, stone, and sticks using traditional methods. The majority of housing in the Camden ZoI is formal housing made of brick on separate stands or yard, however, traditional dwellings are the next most prevalent (StatsSA, 2011). Population growth has led to an increase in informal dwellings in informal settlements and on farms, which can also be attributed to seasonal farm work and ex-farm employees continuing to reside on farms following termination of employment. The Msukaligwa Local Municipality is currently assisting the farm community in Sheepmoor with the consolidation and subdivision of land for housing; however dilapidated Reconstruction and Development Programme (RDP) housing and lack of housing have been raised as issues by the communities living in Sheepmoor and the KwaMahlafuna and De Emigrattie farm areas (Msukaligwa Local Municipality, 2016).
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 128 Table D-36: Types of housing in the Camden ZoI
Ward 11 Type of main dwelling Number House or brick structure on a separate stand or yard 873 Traditional dwelling/hut/structure made of traditional materials 540 Flat in block of apartments - Cluster house in complex - Townhouse - Semi-detached house - House/flat/room in backyard 36 Informal dwelling/shack: In backyard 21 Informal dwelling (shack; not in backyard e.g. in an informal settlement or on a farm) 57 Room/flatlet not in back yard but on a shared property - Caravan or tent - Source: StatsSA, 2011. It should be noted that the above table represents the type of structure of the main dwelling. Many traditional homesteads in the Camden ZoI have more than one building on their property. Extra buildings per homestead are likely to be used for housing extended family, ablution facilities and for livestock such as chickens. Typically, the majority of these buildings would be made from traditional materials and/or informal materials. Employment
Trends identified from an analysis of the StatsSA Census 2011 statistics (Table D-37), suggest that Camden currently has 373 employees, 321 of unemployment in the Camden ZoI is which are permanent. The majority of employees low, however 41.5% of the population (351) reside in Ermelo. Approximately 35% are are not economically active, which female and 65% male – Eskom, 2016. indicates high dependency on the 31.6% of the population that are employed (StatsSA, 2011).
Table D-37: Employment levels in Camden ZoI
Ward 11 Employment level % Employed 31.6 Unemployed 17.8 Discouraged work-seeker 9.0 Not economically active 41.5 Source: StatsSA, 2011. Employment Sectors
The improved access to formal education since 1996 is likely to increase the number of people available to be employed in skilled occupations. Much of those employed in the Camden ZoI are thought to be employed on farms. Table D-38 provides a summary of the above (StatsSA, 2011).
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 129 Table D-38: Employment sectors in Camden ZoI
Ward 11 Sector % Formal 69.8 Informal 23.5 Private household 6.7 Source: StatsSA, 2011. Household Income
According to StatsSA 2011 Census data (illustrated in Table D-39), only 10.2% of households in the Camden ZoI do not earn any income, while 42.5% earn between R9 601.00 and R38 200.00 (StatsSA, 2011). There are however 47.2% of households with four or more occupants, and as such the household incomes is often stretched and insufficient to support whole households. This puts an enormous amount of pressure on higher income earning individuals who often support the entire household. Other means of supplementing household incomes includes the growing of fruit and vegetables and the keeping of livestock, and 6.9% of the population rely on a household-based income (StatsSA, 2011).
Table D-39: Annual monthly income in Camden ZoI
Ward 11 Income % None 10.2 R 1 – R 4800 3.6 R 4801-R 9600 10.0 R 9601-R 19 600 18.6 R 19 601 – R38 200 23.9 R 38 201- R 76 400 18.1 R 76 401- R 153 800 10.0 R 153 801-R 307 600 4.1 R 307 601-614 400 1.3 R 614 001 – R 1 228 800 - R 1 228 801 – R 2 457 600 - Over R 2 457 600 0.4 Source: StatsSA, 2011. Education
Education levels in Camden ZoI communities are moderate (Table D-40) Education level in the area are not high with 15.2% of community members over the and as such, Camden currently struggles age of 20 not having any form of education. to source the required skills from the local Approximately 42.6% of the population communities – Camden power station, have a primary education and 41.5% a secondary school education. The more concerning factor in the ZoI is the fact that only 0.5% of the community over the age of 20 have any form of tertiary education (StatsSA, 2011). This is mainly due to the fact that there is no tertiary institution in the Msukaligwa Local Municipality and tertiary education is not readily available in the more rural areas as it is too expensive for most households to afford (Fin24, 2015).
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 130 Table D-40: Highest level of education for people over 20 years of age in Camden ZoI
Ward 11 Highest level of education attained % No education 15.2 Primary School 42.6 Secondary School 41.5 Certificate/Diploma (without matric) 0.1 Tertiary Education 0.5 Source: StatsSA, 2011. Desktop studies suggest there are two primary schools and one secondary school in Sheepmoor (Msukaligwa Local Municipality IDP 2016/2017).
The distance that some learners are required to walk to school will have detrimental effects on access to education. Having to walk in excess of 10km daily is likely to reduce a learner’s desire and ability to access education. Additionally, the high proportion of learners walking to school raises issues of road safety and makes them susceptible to criminal activity (Pheladi, 2015). This is particularly the case in an area with urban pockets and large rural spaces such as the Camden ZoI. Health Infrastructure
The closest hospital to the Camden ZoI is located in Ermelo, and as such, there are no hospitals in the Camden ZoI. There is a clinic in Sheepmoor; however, it does not open on weekends according to community members and operates for 8 hours a day, Monday to Friday (Msukaligwa Local Municipality SDF, 2010 and Msukaligwa Local Municipality IDP, 2016/2017). Services Infrastructure Refuse Removal
As illustrated in Table D-41, only 16.9% of households in the Camden ZoI have either municipal or private refuse removal services, concentrated in the urban pockets of Camden. A moderate number of households in the Camden ZoI do not have any sort of refuse removal (15.4%) and therefore households are forced to dispose of their own refuse in their own refuse dumps (64.1%). This is generally done by either burying or burning it. Sheepmoor does not have a refuse removal service (Msukaligwa Local Municipality IDP 2016/2017; StatsSA, 2011).
Table D-41: Refuse facilities in Camden ZoI
Ward 11 Type of refuse removal % Refuse removed by municipality or private company 16.9 Own refuse dump 64.1 No refuse removal 15.4 Other 3.6 Source: StatsSA, 2011. A lack of suitable refuse removal has both environmental and community health implications, and the without regular servicing, refuse builds up can to the point that it spills over onto the area around, it creating unhygienic conditions.
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Sanitation
The availability and access to sanitation services is an important social service, and can often be an indicator of a community’s social wellbeing. From the StatsSA Census 2011 data (Table D-42) it is clear that pit latrines are the dominant sanitation method per household throughout the Camden ZoI, and that as many as 19.4% of households had no sanitation facilities (StatsSA, 2011). Issues raised by communities in Camden ZoI in the 2016/2017 IDP for Msukaligwa Local Municipality suggest that low cost housing in Sheepmoor was without functioning sewerage systems, and as such the community are forced to rely on pit latrines and in some instances, no facilities at all. The KwaMahlafuna and De Emigrattie farm areas had new VIP toilets installed recently, but complained they had since become full and could no longer be used (Msukaligwa Local Municipality, 2016).
Table D-42: Sanitation facilities in Camden ZoI
Ward 11 Type % None 19.4 Flush toilets connected to a sewage system 21.5
Flush toilets with a septic tank 3.1 Pit toilets with ventilation 12.5
Pit toilet without ventilation 41.4 Chemical toilets 1.4
Bucket toilet system 0.8 Source: StatsSA, 2011. Water
The availability and access to reliable and clean drinking water is one of the fundamental services required by communities. Access to piped water is poor in the Camden ZoI (see Table D-43), and 46.9% of households do not have access to piped water. However, 53.1% of households had access to a water connection either in their yard, within their dwelling or at a communal standpipe (StatsSA, 2011). Areas without access are generally more remote homesteads on farms, which rely on boreholes for water. Sheepmoor residents claim these boreholes dry up in winter, resulting in water insecurity (Msukaligwa Local Municipality, 2016).
Table D-43: Water sources in Camden ZoI
Ward 11 Source of Water % No access to piped water 46.9 Piped water inside the house 20.8 Piped water in the yard 18.3 Communal standpipe 14.0 Source: StatsSA, 2011.
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Eskom is the sole distributor of bulk electricity in the Camden ZoI. However, electrical connections are not widely prevalent in the Camden ZoI due to disbursed settlement and the rurality of farms. The availability of electricity as an energy source is vitally important as households utilise it for cooking, heating and lighting. A summary of StatsSA Census 2011 statistics in Table D-44 concludes that (StatsSA, 2011):
x The majority of households in the ZoI do not use municipal electricity for cooking and heating;
x The majority of households rely on wood for cooking (60.5%) and heating (66.1%);
x The majority of households rely on electricity for lighting (62.0%); and,
x Despite this, candles are a significant source of lighting at 36.9%. Table D-44: Energy sources for cooking, heating and lighting in the Camden ZoI
Ward 11 Energy Source % Cooking Heating Lighting Electricity 37.2 31.8 62.0 Gas 0.6 0.6 0.2 Paraffin 0.4 0.4 0.6 Candles - - 36.9 Wood 60.5 66.1 - Charcoal 1.3 1.2 - Solar - - 0.4 Source: StatsSA, 2011. The Msukaligwa Local Municipality IDP (2016/2017) indicated that electrification was required in parts of Sheepmoor as well as farm area in KwaMahlafuna and De Emigrattie. The IDP suggests that this challenge is a result of some land owners are not willing to contribute towards electrification of their farm dwellers accommodation. Five electrification projects (funded by Eskom) had been undertaken in the following settlements:
x 34 units Thandanani Khululekani;
x 24 units Mbalenhle;
x 37 units Sizenzela;
x 31 units on The Siyanyakaza; and,
x 25 units on Hooland- Thuthukani.
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Appendix E: Options Analysis
BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017 HENDRINA POWER STATION
Status Option 1: Rating: Option 3: Demolish Rating: Option 4: Rating: Socio-economic Considerations Weighting (1-3) Rating Poor Medium Good Quo Refurbishment Option 1 and Rebuild Option 3 Decommission Option 4
Direct Employment 2 5 10 5 10 4 8 1 2 5 10 15 Employment and Procurement Procurement 3 4 12 4 12 5 15 1 3 5 10 15 Air Emissions 2 3 6 3 6 3 6 5 10 5 10 15 Fugitive Dust 2 2 4 1 2 1 2 2 4 5 10 15 Environmental Impacts Surface Water Pollution 1 4 4 4 4 4 4 4 4 5 10 15 Ground Water Pollution 3 1 3 2 6 2 6 1 3 5 10 15 Water Usage 3 2 6 1 3 3 9 5 15 5 10 15 CSI Contribution 2 4 8 4 8 4 8 1 2 5 10 15 LED and CSI Education and Training 1 3 3 3 3 3 3 1 1 5 10 15 Water 3 4 12 3 9 4 12 3 9 5 10 15 Electricity 3 4 12 4 12 4 12 2 6 5 10 15 Service Delivery Sanitation 2 3 6 3 6 3 6 3 6 5 10 15 Waste Removal 1 3 3 3 3 3 3 3 3 5 10 15 Coal Sourcing Trucking 2 3 6 3 6 3 6 4 8 5 10 15 Environmental 2 3 6 3 6 2 4 3 6 5 10 15 Land Take Socio-economic 3 2 6 2 6 1 3 3 9 5 10 15 Power Supply 3 4 12 4 12 3 9 1 3 5 10 15 Regional and National GDP Contribution 3 3 9 3 9 3 9 1 3 5 10 15 Economic Multipliers 3 3 9 3 9 3 9 1 3 5 10 15
1-5 Poor - The outcome will have an overall negative socio-economic impact. Increased grievances and community dissatisfaction could occur. 6-10 Medium - The outcome will result in manageable socio-economic impacts. Some grievances may still occur. 11-15 Good - The outcome will have a potentially positive socio-economic result ARNOT POWER STATION
Rating: Option Option 3: Demolish and Rating: Option 4: Rating: Socio-economic Considerations Weighting (1-3) Status Quo Rating Option 1: Refurbishment Poor Medium Good 1 Rebuild Option 3 Decommission Option 4
Direct Employment 2 5 10 5 10 4 8 1 2 5 10 15 Employment and Procurement Procurement 3 4 12 4 12 5 15 1 3 5 10 15 Air Emissions 2 4 8 3 6 3 6 5 10 5 10 15 Fugitive Dust 2 3 6 2 4 2 4 3 6 5 10 15 Environmental Impacts Surface Water Pollution 1 3 3 3 3 3 3 4 4 5 10 15 Ground Water Pollution 3 1 3 2 6 2 6 1 3 5 10 15 Water Usage 3 2 6 1 3 4 12 5 15 5 10 15 CSI Contribution 2 4 8 4 8 4 8 1 2 5 10 15 LED and CSI Education and Training 1 4 4 4 4 4 4 1 1 5 10 15 Water 3 4 12 3 9 4 12 3 9 5 10 15 Electricity 3 4 12 4 12 4 12 2 6 5 10 15 Service Delivery Sanitation 2 3 6 3 6 3 6 3 6 5 10 15 Waste Removal 1 3 3 3 3 3 3 3 3 5 10 15 Coal Sourcing Trucking 2 2 4 2 4 2 4 4 8 5 10 15 Environmental 2 3 6 3 6 2 4 3 6 5 10 15 Land Take Socio-economic 3 4 12 3 9 2 6 5 15 5 10 15 Power Supply 3 3 9 3 9 2 6 1 3 5 10 15 Regional and National GDP Contribution 3 3 9 3 9 3 9 1 3 5 10 15 Economic Multipliers 3 3 9 3 9 3 9 1 3 5 10 15
1-5 Poor - The outcome will have an overall negative socio-economic impact. Increased grievances and community dissatisfaction could occur. 6-10 Medium - The outcome will result in manageable socio-economic impacts. Some grievances may still occur. 11-15 Good - The outcome will have a potentially positive socio-economic result KOMATI POWER STATION
Option 1: Rating: Option 3: Demolish and Rating: Option 4: Rating: Option Socio-economic Considerations Weighting (1-3) Status Quo Rating Poor Medium Good Refurbishment Option 1 Rebuild Option 3 Decommission 4
Direct Employment 2 5 10 4 8 4 8 1 2 5 10 15 Employment and Procurement Procurement 3 4 12 4 12 5 15 1 3 5 10 15 Air Emissions 2 3 6 3 6 3 6 5 10 5 10 15 Fugitive Dust 2 3 6 2 4 2 4 3 6 5 10 15 Environmental Impacts Surface Water Pollution 1 3 3 3 3 3 3 3 3 5 10 15 Ground Water Pollution 3 1 3 2 6 2 6 1 3 5 10 15 Water Usage 3 2 6 1 3 3 9 5 15 5 10 15 CSI Contribution 2 4 8 4 8 4 8 1 2 5 10 15 LED and CSI Education and Training 1 2 2 2 2 2 2 1 1 5 10 15 Water 3 4 12 3 9 4 12 3 9 5 10 15 Electricity 3 4 12 4 12 4 12 2 6 5 10 15 Service Delivery Sanitation 2 2 4 2 4 2 4 2 4 5 10 15 Waste Removal 1 2 2 2 2 2 2 2 2 5 10 15 Coal Sourcing Trucking 2 3 6 3 6 3 6 4 8 5 10 15 Environmental 2 2 4 2 4 1 2 2 4 5 10 15 Land Take Socio-economic 3 1 3 1 3 1 3 1 3 5 10 15 Power Supply 3 5 15 5 15 4 12 1 3 5 10 15 Regional and National GDP Contribution 3 3 9 3 9 3 9 1 3 5 10 15 Economic Multipliers 3 3 9 3 9 3 9 1 3 5 10 15
1-5 Poor - The outcome will have an overall negative socio-economic impact. Increased grievances and community dissatisfaction could occur. 6-10 Medium - The outcome will result in manageable socio-economic impacts. Some grievances may still occur. 11-15 Good - The outcome will have a potentially positive socio-economic result CAMDEN POWER STATION
Weighting (1 Ͳ Rating: Status Option 1: Rating: Option 3: Demolish Option 4: Rating: Socio Ͳeconomic Considerations Status Quo Rating: Option 3 Poor Medium Good 3) Quo Refurbishment Option 1 and Rebuild Decommission Option 4
Direct Employment 2 5 10 4 8 4 8 1 2 5 10 15 Employment and Procurement Procurement 3 4 12 4 12 5 15 1 3 5 10 15 Air Emissions 2 4 8 4 8 4 8 5 10 5 10 15 Fugitive Dust 2 4 8 3 6 3 6 3 6 5 10 15 Environmental Impacts Surface Water Pollution 1 3 3 3 3 3 3 3 3 5 10 15 Ground Water Pollution 3 2 6 3 9 3 9 1 3 5 10 15 Water Usage 3 2 6 1 3 3 9 5 15 5 10 15 CSI Contribution 2 4 8 4 8 4 8 1 2 5 10 15 LED and CSI Education and Training 1 3 3 3 3 3 3 1 1 5 10 15 Water 3 3 9 3 9 3 9 2 6 5 10 15 Electricity 3 3 9 3 9 3 9 2 6 5 10 15 Service Delivery Sanitation 2 1 2 1 2 1 2 1 2 5 10 15 Waste Removal 1 1 1 1 1 1 1 1 1 5 10 15 Coal Sourcing Trucking 2 2 4 2 4 2 4 4 8 5 10 15 Environmental 2 3 6 3 6 2 4 3 6 5 10 15 Land Take Socio-economic 3 3 9 3 9 2 6 3 9 5 10 15 Power Supply 3 3 9 3 9 3 9 1 3 5 10 15 Regional and National GDP Contribution 3 3 9 3 9 3 9 1 3 5 10 15 Economic Multipliers 3 3 9 3 9 3 9 1 3 5 10 15
1Ͳ5 Poor Ͳ The outcome will have an overall negative socio Ͳeconomic impact. Increased grievances and community dissatisfaction could occur. 6Ͳ10 Medium Ͳ The outcome will result in manageable socio Ͳeconomic impacts. Some grievances may still occur. 11 Ͳ15 Good Ͳ The outcome will have apotentially positive socio Ͳeconomic result SRK Consulting: Project No: 506503 SIA Eskom Fleet Renewal Page 134
SRK Report Distribution Record
Report No. 506503/F1
Copy No. Electronic
Name/Title Company Copy Date Authorised by Beauty Mazibuko Eskom Electronic 03/02/2017 MAVA Gina Downes Eskom Electronic 03/02/2017 MAVA
Approval Signature:
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BRAV/MALA/HARA/BRAN/MAVA FINAL SIA Report_Eskom_srk_506503_03022017 February 2017