Annex A Chinguetti Project SIA Terms of Reference TERMS OF REFERENCE Woodside Mauritania Pty. Ltd. Chinguetti Development Project: Social Impact Assessment Terms of Reference for SIA May 2005 Reference: 0024310 For and on behalf of Environmental Resources Management Australia Pty Ltd Approved by: Keryn James Signed: Position: Project Director Date: 20 May 2005 CONTENTS 1 INTRODUCTION 2 BACKGROUND 2.1 PROJECT DESCRIPTION 2 2.2 SOCIAL IMPACT ASSESSMENT AND SUSTAINABILITY 2 3 SIA OBJECTIVES AND APPROACH 3.1 OBJECTIVES 3 3.2 OVERVIEW OF PROCESS 3 3.3 SCOPING CONSULTATION 4 4 SCOPE OF ASSESSMENT 4.1 PRELIMINARY ASSESSMENT OF PROJECT ISSUES 5 4.2 OVERVIEW 5 4.3 SCOPING 6 4.3.1 TASK 1: DESCRIPTION OF THE PROPOSED PROJECT 6 4.3.2 TASK 2: DESCRIPTION OF THE BASELINE SOCIAL ENVIRONMENT 7 4.3.3 TASK 3: LEGISLATIVE AND REGULATORY FRAMEWORK 9 4.3.4 TASK 4: DETERMINATION OF THE POTENTIAL IMPACTS OF THE PROJECT 9 4.3.5 TASK 5: PUBLIC CONSULTATION PROCESS 11 4.3.6 TASK 6: MEASURES TO MITIGATE NEGATIVE IMPACTS AND DEVELOP OPPORTUNITIES 12 4.3.7 TASK 7: DEVELOPMENT OF SOCIAL AND ENVIRONMENTAL MANAGEMENT PLAN 12 4.3.8 TASK 8: PRESENTATION OF SOCIAL ASSESSMENT REPORT 13 5 TIMETABLE AND DELIVERABLES 6 SKILL REQUIREMENTS OF CONSULTANT TEAM 1 INTRODUCTION Woodside Mauritania Pty. Ltd. (Woodside) has commissioned Environmental Resources Management Australia Pty Ltd (ERM) to conduct a Social Impact Assessment (SIA) for the Chinguetti project (the Project) in Mauritania. This document was reviewed by stakeholders in a draft format during a series of workshops in Nouakchott, Mauritania, and Dakar, Senegal during March 2005. A report on the mission will be published in May 2005. A Terms of Reference Development Report has been prepared that outlines the basis for the scope of the ToR. The ToR Development Report document is available to stakeholders by contacting Woodside. ENVIRONMENTAL RESOURCES MANAGEMENT 1 2 BACKGROUND 2.1 PROJECT DESCRIPTION A summary project description has been provided to stakeholders in the Chinguetti Development SIA Information Pack. Additional copies are available on request to Woodside. A detailed project description has been published in the Project’s Environmental Impact Statement (EIS) and is also available on Woodside’s website at www.woodside.com.au. 2.2 SOCIAL IMPACT ASSESSMENT AND SUSTAINABILITY The SIA is one of a number of initiatives being undertaken by Woodside to enhance the contribution of its operations to the development of Mauritania. Other significant activities include: · providing capacity building in Environmental Impact Assessment (EIA); · local procurement, employment and oil industry capacity building (at including requirements under the terms of the Production Sharing Contract); · providing leadership in oil spill emergency response capability planning in Mauritania and Senegal including developing the capacity of Government authorities to respond to any oil spill incidents in the busy shipping lanes off these coastlines; and · corporate social investment projects including an investment by Woodside (in excess of AUD$1m in 2005) in Groupe Projet de Chinguetti (GPC), which will ensure GPC personnel have access to training providers and are prepared for the commencement of first oil production in 2006. SIA is a systematic process to examine potential socio-economic impacts of a project with the objectives of reducing negative impacts on local communities and wider society and optimising potential benefits. The process is strongly enhanced by the participation of those most likely to be impacted and other stakeholders (ie those affected by, or who are able to affect, the project). ENVIRONMENTAL RESOURCES MANAGEMENT 2 3 SIA OBJECTIVES AND APPROACH 3.1 OBJECTIVES The SIA for the Chinguetti Development Project is proposed to be undertaken in accordance with ‘best-practice’ approaches on similar projects in the oil and gas industry and adhering to guidelines published by International Finance Corporation (IFC) and others. The applicable standards are set out in the Terms of Reference Development Report. It is intended that the SIA will: · identify and characterise potential social and economic issues, including transboundary issues, and risks related to project activities; · involve potentially Project Affected People and stakeholders in identification and assessment of opportunities and risks (through mechanisms identified in a published Public Consultation and Disclosure Plan); · indicate ways in which potential adverse social and economic impacts can be avoided, minimized or mitigated; · assess risk and how this can be managed; · indicate ways in which the Project can contribute to sustainable development; · communicate specific Woodside commitments and establish responsibilities; · formulate a social management and monitoring plan which is likely to be integrated with the Project’s environmental management plan and will include an unambiguous chain of responsibilities within the Project; and · assess government and Operator capacities to manage the Project’s social and economic issues and proposing measures to reinforce these capabilities. 3.2 OVERVIEW OF PROCESS The Chinguetti Development Project SIA will be the first SIA for the oil industry in Mauritania. ENVIRONMENTAL RESOURCES MANAGEMENT 3 The Project is regulated by the Ministry of Oil and Energy under the terms of the Production Sharing Contract. The Ministry has authority oversight of the SIA. It is expected the following process will occur: · Draft ToR are reviewed by Government and stakeholders; · ToR finalised by SIA consultants; · preparation of Draft Social Impact Assessment (including stakeholder participation) by consultants; · Government and stakeholders invited to comment on the Draft SIA; · preparation of final SIA by consultants; and · preparation of detailed social management and sustainable development plans. 3.3 SCOPING CONSULTATION Since September 2004, ERM has been scoping the SIA. From November 25 to December 13, 2004, a team of ERM and Woodside personnel visited Senegal and Mauritania to engage with stakeholders, collect data and identify the main issues likely to be associated with the Project. Details of this consultation and earlier consultations during the Project’s Environmental Impact Assessment (EIA) are provided in the Project’s Public Consultation and Disclosure Plan available from Woodside upon request. ENVIRONMENTAL RESOURCES MANAGEMENT 4 4 SCOPE OF ASSESSMENT 4.1 PRELIMINARY ASSESSMENT OF PROJECT ISSUES An interactions matrix for the Project has been prepared and provides a preliminary assessment of the relationship between Project activities and identified receptors. This is presented in Figure 4.1. A description of each of these impacts and the methodology employed in this preliminary assessment is contained in the Terms of Reference Development Report. 4.2 OVERVIEW Broadly, impacts can be anticipated at three main levels: national and transboundary; consequences of Project activities in Nouakchott; and non- routine impacts on coastal settlements in Mauritania and Senegal. ENVIRONMENTAL RESOURCES MANAGEMENT 5 As the Project is almost all offshore, no planned resettlement will take place. Onshore activities are limited to the port, airport, accommodation/offices and waste management facilities. In the FSPO’s surroundings, proposed exclusion zones are unlikely to have significant impacts on industrial fishing and will be via the Fisheries Interaction Management Plan that is being developed in parallel with the SIA. The SIA work will take into account the entire territory of Mauritania to study the consequences of the Project on the country’s economy, the effects of increased public sector revenues and spending, and on overall social conditions. This analysis will attempt to define and provide measures to detect cultural impacts. The economic impacts on other countries in the region will not be assessed. In Nouakchott, the focus will be on communities neighbouring the existing waste management facility and the port and those with the most disadvantaged residents. Another area of interest is the coastal areas in Mauritania, particular those located in the Parc National du Diawling, and the northern settlements in Senegal on the coastline from Dakar to St Louis. The SIA will consider impacts from the planning, construction, operation and decommissioning phases of the Project. ERM has been commissioned to carry out the assessment and will be responsible for the SIA. ERM will collaborate with Office National des Statistiques (ONS - National Office of Statistics) and Tenmiya (a Mauritanian Non-Government Organisation) to undertake baseline data collection. In Senegal, ERM will work with Ecole Nationale D’Economie Appliquee (ENEA). Local consultants will be paid for by Woodside and directed by ERM. 4.3 SCOPING The Terms of Reference comprise eight tasks: 4.3.1 Task 1: Description of the Proposed Project The consultant will concisely describe and map the Project, its location and the general layout of facilities. Information on construction activities, procurement plans and timescales, facilities and services, operation and maintenance activities will be included. Employment and training components of the Project will be described and the legislative context for conduct of the SIA will be summarised. This description will be based on Woodside’s reports (including EIS), schemes and maps, as well as interviews with relevant Woodside staff. ENVIRONMENTAL RESOURCES MANAGEMENT 6 4.3.2 Task 2: Description of the Baseline Social