DELEGATION OF THE EUROPEAN COMMISSION ZAMBIA “Strategic Environmental Assessment (SEA) of the Sugar Sector in Zambia” Contract Nº 2009/209305 FWC BENEFICIARIES - LOT N° 6 SEA Study January 2010 This report has been prepared with financial assistance from the European Commission. The views expressed herein are those of the consultants and therefore in no way reflect the official opinion of the European Commission or the Government of Zambia. A contract implemented by AGRECO Consortium This contract is funded by ([email protected]) The European Union Strategic Environmental Assessment (SEA) of the Sugar Sector in Zambia SEA Study Prepared by: Juan Palerm (Team Leader) Tonnis Sierevogel Munguzwe Hichaambwa Strategic Environmental Assessment for the Zambia National Sugar Strategy SEA Study Table of Contents List of Tables................................................................................................................v List of Figures..............................................................................................................vi Acronyms and Abbreviations......................................................................................vii Acknowledgements.....................................................................................................xii 0. Executive Summary ...............................................................................................xiii PART I INTRODUCTION AND BACKGROUND...................................................1 1. Background...............................................................................................................1 2. The sugar sector in Zambia .......................................................................................1 2.1. Introduction........................................................................................................1 2.2. Current situation of the Zambia Sugar Industry ..................................................2 2.3. Outgrower and Smallholder Schemes .................................................................2 2.4. The Zambia National Sugar Strategy (ZNSS) .....................................................5 2.5. Key Stakeholders ...............................................................................................7 2.6. Main policies, plans and programmes relevant to the ZNSS................................7 2.7. Legislative framework relevant to the ZNSS ......................................................7 2.8. Methodology and tools.......................................................................................8 2.9. Key environmental aspects.................................................................................8 2.10. Non-issues........................................................................................................8 2.11. Assumptions, uncertainties and constraints of the SEA.....................................9 3. State of the environment in Zambia...........................................................................9 PART II ENVIRONMENTAL IMPACTS OF THE ZNSS ......................................11 4. Introduction ............................................................................................................11 5. Key aspect 1: Water resources in the lower Kafue River basin (high priority) .........11 6. Key aspect 2: Regulatory framework and capacities for vinasse management (high priority)..................................................................................................................21 7. Key aspect 3: Minimisation of increased risk of HIV/AIDS associated to new sugar cane cultivation areas (high priority).......................................................................24 8. Key aspect 4: Enhancing opportunities in the sugar industry to enhance gender balance (high priority) ............................................................................................28 9. Key aspect 5: Securing a sound policy for ethanol production, fuel blending and gel fuel that will optimise the positive effects on the environment (medium priority) ...29 10. Key aspect 6: Securing an environmentally integrated strategy for roads upgrading/construction and upgrading/expansion of the railway system (medium priority)..................................................................................................................37 page ii Strategic Environmental Assessment for the Zambia National Sugar Strategy SEA Study 11. Key aspect 7: Implications of the POPs Convention for the regulation of sugar cane burning (low priority).............................................................................................40 12. Key aspect 8: Securing a co-generation policy that optimises efficient use of bagasse from the sugar sector (low priority) ........................................................................44 13. Other aspects.........................................................................................................45 14. Performance indicators..........................................................................................47 PART III RECOMMENDATIONS..........................................................................50 14. Recommendations.................................................................................................50 14.1. Addressing high-priority aspects.....................................................................50 14.1.1. Water efficiency in the lower Kafue River Basin ...............................50 14.1.2. Vinasse management .........................................................................50 14.1.3. HIV/AIDS ........................................................................................51 14.1.4. Gender ........................................................................................52 14.2. Addressing medium-priority aspects...............................................................52 14.2.1. Ethanol production, fuel blending and gel fuel...................................52 14.2.2. Environmentally integrated roads and railways policy .......................52 14.3. Addressing low-priority aspects......................................................................53 14.3.1. POPs ........................................................................................53 14.3.2. Co-generation....................................................................................53 14.4. Recommendations of a general nature ............................................................54 14.4.1. Environmental and Social Management Systems ...............................54 14.4.2. Environmental capacity-building for new out-growers.......................54 14.4.3. Promote sound environmental and management practices of farmers and the general population around sugar cane developments..............54 14.4.4. Waste water discharges and atmospheric emissions licensing ............54 14.4.5. Water balance study for the Luena Farming Block.............................54 14.4.6. Fleshing-out and wording of the ZNSS ..............................................54 14.4.7. Use of the SEA findings and SEA follow-up......................................55 TECHNICAL APPENDICES .......................................................................................1 Appendix 1: Maps and other illustrative information.................................................2 Appendix 2: Sugar production, field and factory operations ....................................10 Appendix 3: Key stakeholders.................................................................................15 Appendix 4: Main policy documents and legislation relevant to the ZNSS and SEA20 Appendix 5: Stakeholder engagement methodology ................................................27 Appendix 6: List of stakeholders engaged or consulted ...........................................28 page iii Strategic Environmental Assessment for the Zambia National Sugar Strategy SEA Study OTHER APPENDICES ..............................................................................................30 Appendix 7: List of participants to the SEA workshop ............................................31 Appendix 8 Agenda for the Stakeholders’ Workshop ..............................................34 Appendix 9 Study methodology/work plan..............................................................35 Appendix 10 Consultants’ itinerary.........................................................................38 Appendix 11 List of documents consulted...............................................................39 Appendix 12 Curricula vitae of the consultants .......................................................45 Appendix 13 Terms of Reference............................................................................51 page iv Strategic Environmental Assessment for the Zambia National Sugar Strategy SEA Study List of Tables Table 1. Basic information on sugar production in Zambia............................................2 Table 2. Basic information on smallholder schemes ......................................................3 Table 3. ZNSS components...........................................................................................5 Table 4. Summary of water balance variables for the Kafue Flats area ........................13 Table 5. Water rights allocated in the sugar sector.......................................................14 Table 6. Areas under centre-pivot