DLanguage: English Original: English PROJECT: DERNAN SALT & TRADING LIMITED (DSTL) COUNTRY: GHANA SUMMARY OF ENVIRONMENTAL AND SOCIAL ASSESSMENT (ESIA) F. Rodrigues (OPSD2)– Senior Task Manager OPSD.2 1791 Investment Officer R. Fusi (OPSD2), Senior Investment Officer OPSD.2 Co-Task Manager O. Owojobi (OPSD2) , Investment Project Team Officer Felix Oku Senior Environmental ONEC3 4395 Specialist Division Manager Cisse Mahib Ag. Division Manager OPSD.2 1906 Sector Director Kokeidja Diallo, Director OPSD 2147 Abdellatif Bernoussi , Acting Director , Regional Director ORWA 2705 Director TABLE OF CONTENTS 1. INTRODUCTION ...................................................................................................................................... 3 2. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK .............................................................................. 4 2.1 RELEVANT GHANA POLICIES AND LEGISLATION .................................................................................................... 4 2.1.1 Environmental Protection Agency Act, 1994 (Act 490) ................................................................... 4 2.1.2 Environmental Assessment Regulations, 1999 (LI 1652) ................................................................ 4 2.1.3 Water Resources Commission Act, 1996 (Act 522) ......................................................................... 4 2.1.4 Minerals and Mining (Compensation and Resettlement) Regulations, 2012 (L.I. 2175) ................ 4 2.1.5 Minerals and Mining Act, 2006 (Act 703) ....................................................................................... 4 2.1.6 The Minerals and Mining (Health & Safety and Technical) Regulations, 2012 (L.I. 2182) .............. 4 2.1.7 EPA GUIDELINES ................................................................................................................................. 5 2.3 DONORS AND FINANCING INSTITUTIONS ............................................................................................................ 5 3. PROJECT DESCRIPTION AND JUSTIFICATION ........................................................................................... 6 3.1 PROJECT DESCRIPTION ................................................................................................................................... 6 3.2 PROJECT LOCATION ....................................................................................................................................... 7 3.3 JUSTIFICATION FOR THE PROJECT ........................................................................................................... 9 4. DESCRIPTION OF THE PROJECT ENVIRONMENT ...................................................................................... 9 4.1 PHYSICAL BASELINE ENVIRONMENT .................................................................................................................. 9 4.1.1 Ambient Air Quality and Noise levels .............................................................................................. 9 4.1.3 Soil Studies .................................................................................................................................... 10 4.1.4 Hydrology and Water quality: ....................................................................................................... 10 4.2 BIOLOGICAL BASELINE ENVIRONMENT ............................................................................................................. 10 4.2.4 Terrestrial vegetation/habitats ..................................................................................................... 10 4.2.5 Terrestrial fauna ........................................................................................................................... 10 4.3 HUMAN AND SOCIOECONOMIC ENVIRONMENT ................................................................................................. 10 4.3.1 Local Economy .............................................................................................................................. 11 4.3.2 Health ........................................................................................................................................... 11 4.3.3 Education ...................................................................................................................................... 11 4.4 PROJECT ALTERNATIVES ................................................................................................................................ 11 4.4.1 Location Alternatives .................................................................................................................... 11 4.4.2 Brine Alternatives .......................................................................................................................... 11 4.4.3 Zero Project Option ....................................................................................................................... 12 5. POTENTIAL IMPACTS ............................................................................................................................ 12 6. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT ..................................................................... 12 7. MITIGATION/ENHANCEMENT MEASURES AND COMPLEMENTARY INITIATIVES ................................... 12 7.1 ENVIRONNEMENTAL SOCIAL MANAGEMENT PLAN (ESMP) ................................................................................. 13 7.2 CLOSURE PLAN ........................................................................................................................................... 13 8. PUBLIC CONSULTATIONS AND PUBLIC DISCLOSURE .............................................................................. 10 9. CONCLUSION ........................................................................................................................................ 10 REFERENCES AND CONTACTS ......................................................................................................................... 10 APPENDIX A ................................................................................................................................................... 12 P a g e 1 | 29 Project Title: DSTL Project Project Number: P-GH-BAA-002 Country: Ghana Department: OPSD.2 Division: OPSD.2 Project Category: 2 1. INTRODUCTION Dernan Salt and Trading Limited (the “Company” or “DSTL”) is proposing to develop a vacuum salt Project (the “Project”). The project will utilize a state-of-the-art Multiple-Effect crystallisation system with the capacity to produce 45 mt of salt per hour on an approximately 40 acre and additional 1,000 acres of land zoned for salt production at Mankoadze and Bewadze respectively in the Gomoa West District of the Central Region of Ghana. The proposed Project is targeting an annual production of about 324,000 mt of high quality edible and industrial salt for the local market, sub-regional market and the international market especially Europe and the Americas. The production facilities and infrastructure required for the Project will comprise: Crystallisation plant; Reservoirs; Warehouse; Iodization plant; Steam boiler; Pure water plant; Office complex; Laboratory; Workers’ accommodation camps and other auxiliary infrastructure facilities for the construction and operation periods; Supporting infrastructure in the form of local roads, bridges (for stream and river crossings), aerial electrical transmission lines, workshops, fuel storage and refuelling area, water treatment facilities, waste management facilities and other workers’ facilities In accordance with the Bank’s Integrated Safeguard System (ISS) and Ghana national requirements, this project has been categorized as 2. Accordingly, this Environment &Social Management Plan (ESMP) summary has been prepared based on AfDB environmental and social (E&S) assessment guidelines and procedures for Category 2 projects. The ESMP summary starts with a presentation of a brief summary of the rationale and description of the project, followed by the applicable legal and institutional framework within the host country, Ghana. A brief description of the main environmental and social baseline conditions of the project area is given for the project components, focusing on the physical, biological and human and wider environmental receptors. Project alternative analysis have also been in terms of technical, economic, environmental and social feasibility which is followed by the most significant positive and negative impacts on the biophysical and human (socio-economic) environments. Mitigation measures proposed to boost project benefits and/or prevent, reduce, mitigate or offset any negative impact, as well as the P a g e 3 | 29 monitoring programme has also been proposed. The public consultations held, as well as additional initiatives implemented under the project, are also presented. 2. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK The applicable national, international lender group and international conventions applicable to the project are summarized in the following sections. 2.1 Relevant Ghana Policies and legislation 2.1.1 Environmental Protection Agency Act, 1994 (Act 490) The Environmental Protection Agency Act, 1994 (Act 490) stipulates that every undertaking or project that may have an impact on the environment must be registered with EPA. The EPA has the mandate to request an Environmental Impact Assessment (EIA) in respect of any