PROPOSED DEVELOPMENT OF THE MAKALU B DISTRIBUTION LINES, SASOLBURG, FREE STATE SOCIO-ECONOMIC IMPACT ASSESSMENT AUGUST 2017 PREPARED FOR: ESKOM HOLDINGS SOC LIMITED Title and Approval Page Proposed Development of the Makalu B Distribution Lines, Sasolburg, Project Name: Free State Report Title: Socio-Economic Impact Assessment Authority Reference: Not yet assigned Report Status Draft Client: Eskom Holdings SOC Limited Prepared By: Nemai Consulting +27 11 781 1730 147 Bram Fischer Drive, +27 11 781 1731 FERNDALE, 2194 [email protected] PO Box 1673, SUNNINGHILL, www.nemai.co.za 2157 Report Reference: 10581 R-PRO-REP|20170216 Authorisation Name Signature Date Author: Sameera Munshi 24 August 2017 Reviewer: Ciaran Chidley This Document is Confidential Intellectual Property of Nemai Consulting C.C. © copyright and all other rights reserved by Nemai Consulting C.C. This document may only be used for its intended purpose Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment Amendments Page Amendment Date: Nature of Amendment Number: 31 August 2017 First Draft for Client Review 0 Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment Executive Summary Eskom studies indicated that the 88 kV fault levels are higher than the equipment rating at Makalu substation which will result in the 275 / 88 kV transformation at Makalu substation becoming unfirm in 2022 and the Distribution network will result in constraints. Investigations indicated that Makalu B substation should be established such that load and current embedded generation be shifted off the existing substation to the new proposed substation. This includes a loop in of one of the existing 275 kV Lethabo – Makalu Lines. This change requires that the existing Distribution network be reconfigured. The project is being planned jointly by both Eskom Transmission and Distribution in order to ensure alignment, however, each project will be implemented separately by the relevant division. The proposed project entails reconfiguring the network such that generation and motor loads are supplied at the new Makalu B substation and residential and industrial loads are supplied from the existing Makalu substation. Nemai Consulting was appointed by Eskom Holdings SOC Limited to conduct the environmental assessments, in terms of Government Notice No. R 982 of 4 December 2014 (as amended), for the following proposed projects in Sasolburg, Free State Province: 1. The development of the Makalu B substation and associated Transmission Loop-in Lines; and 2. The Makalu B Distribution Line Strengthening. This document serves as the draft Socio-Economic Impact Assessment for the proposed development of the Makalu B Distribution Line Strengthening Basic Assessment Process. A separate Environmental Impact Assessment will be undertaken for the Substation and associated Transmission loop-in lines; however, a combined public participation process is being conducted for both of these projects. Project Location The project is located within the Metsimaholo Local Municipality and Fezile Dabi District Municipality, in the north of the Free State Province. The site is located east of the town Sasolburg, which forms part of the Vaal Triangle (Vanderbijlpark, Vereeniging and Sasolburg regions). The proposed infrastructure is bordered by petro-chemical industries to the west and is located on a combination of agricultural and undeveloped land. Project Components and Proposed Alternatives The existing Makalu substation is situated on the Farm Vaalbank 238, which is accessed from the R82 to the west. The area required for the proposed Makalu B substation is 500 m x 500 m, which covers a total area of 25 Ha. - i – 20170825 Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment Two alternative routes for the Distribution alignment have been considered; namely Distribution Lines Option 1 to Makalu B Site Option 1, and Distribution Lines Option 2 to Makalu B Site Option 2, which are 3.3km and 7.5km, respectively. The selected distribution line will depend on the selected preferred Makalu B site option. The study area includes a 1km corridor around the distribution lines (i.e. 500 m on either side of the centre line). This is to allow for any possible deviations from the current proposed alignment Google Earth image of the Project Components and Location to the Existing Makalu Substation Methodology The methodology adopted for this report was to conduct a desktop and site based review of the receiving environment. This was then followed by a review of the public participation process which was undertaken as part of the application and scoping phase. Then followed the impact analysis using the framework provided by the environmental impact practitioner. Situational Analysis Sasolburg is approximately 80 km south of Johannesburg. It is accessible from the regional R57 road passing through Vanderbijlpark. The residential areas of Sasolburg, Sasolburg town and Zamdela, lie to the west of the R57. The industrial areas such as Sasol Chemical Industries lies to the east of the R57. Sasolburg is a chemical city with limited diversification of the industrial and commercial base. The towns economy is heavily reliant on Sasol Chemical Industries. Landuse outside of the urban residential and industrial areas largely comprises of agriculture and open cast and - ii – 20170825 Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment underground mining. Vaalpark is the closest residential area to the proposed Development of the Makalu B Substation and Associated Transmission Loop-In Lines and is located between Vanderbijlpark and Sasolburg. According the Metsimaholo LM SDF, there is a scarcity of developable land in the Sasolburg, mainly due to open cast mines and undermined areas (due to coal extraction) which has resulted in limited expansion possibilities of the urban area. The total population in the study area 11 898 persons. The working age population is classified as persons aged 15 – 64 and accounts for seventy percent of the total population. Similarly, the population of men of working age is larger than women. The variance of the age and gender profile is attributed to the migration of men in search of economic opportunity. Specifically, the migration to Sasolburg would be for opportunities in the chemical and mining industries Majority of the households in the study area have formal dwellings on a separate stand or yard on a farm. Over twenty-five percent of the population in the study area have no education or have not completed primary education and are considered to be functionally illiterate. Functional illiteracy is defined as a person who has received skills to read and write, but are inadequate to manage daily living and employment tasks that require reading skills beyond a basic level. Usually persons who have a low level of education, up to primary education, are classified as functionally illiterate. There were no salient matters raised during the public participation phase that have a bearing on the social or economic environment. As the landowner, AOL requested that the project team are mindful of the impact they have on the property during site visits and that the project team are respectful of the safety of the farm. Sasol Satellite Operations provide comments regarding the technical aspects of the project as they have existing pipelines and servitude restrictions which Eskom would need to be mindful of. Other comments related to the public participation process as part of the EIA process. A site visit was undertaken on the 22 August 2017 to the Stols Vervoer farm, the lessee of the land on which the development is proposed. Stols Vervoer prefer distribution lines Option 1 as it is on the edge of the farm resulting in less conflict in land use. The area is used to farm mielies which is the core business of the farm. In addition, the line will be shorted and located close to existing distribution lines. In contrast, distribution lines Option 2 would result in the closing of the horse riding club. It also located closer to the cattle kraal, horse stables and residences thus having a greater potential impact from a visual and health perspective Findings The socio-economic impacts of the proposed development were identified as follows: • Security of Electricity Supply • Land Use Conflict • Access Control - iii – 20170825 Proposed Development of the Makalu B Distribution Line Strengthening, Sasolburg, Free State Socio-Economic Impact Assessment • Visual Impact • Exposure to Electromagnetic Fields • Impacts Arising from the Construction Phase Economic Opportunity Dust Disturbance Noise Disturbance Influx of workers Constriction Access Control, Safety and Security Traffic Disruption The socio-economic impacts of the proposed development were identified are listed in the below. Dx Lines Dx Lines Identified Impact Option 1 Option 2 Security of Electricity Supply No Preference - Land Use Conflict ✓ Access Control ✓ Visual Impact ✓ Exposure to Electromagnetic Fields ✓ Construction related impacts Economic Opportunity No Preference Dust Disturbance ✓ Noise Disturbance No Preference Influx of workers No Preference Constriction Access Control, Safety and Security No Preference Traffic Disruption No Preference While electricity