SRK Consulting: : PPC Barnet_Framework ESIA and ESMP Page 389. Appendix A: Gap Analysis

Gap Analysis of the Environmental

Impact Assessment for the PPC

New Songololo Cement Plant in

DRC

Report Prepared for

PPC Ltd

Report Number 467328

_{Source: PPC Photo Gallery}

Report Prepared by

Gap Analysis of the Environmental Impact

Assessment for the PPC New Songololo

Cement Plant in DRC

PPC Ltd

PPC Building 1

180 Katherine Street

Barlow Extension Sandton Johannesburg

PO Box 787416 Sandton 246 South Africa

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 467328

September 2013

Compiled by:

Peer Reviewed by:

L Brown

Principal Environmental Scientist

D Kilian

Partner

Email:

[email protected]

Authors:

Table of Contents

Disclaimer ... iii

1

Introduction and Scope of Report ... 1

2

Background and Brief ... 1

2.1 Background of the project ... 1

2.2 Nature of the brief ... 2

3

Project Objectives and Work Program ... 2

3.1 Program objectives ... 2

3.2 Purpose of the Report ... 3

3.3 Work program ... 3

3.4 Statement of SRK Independence ... 3

4

Overview of findings of the gap analysis ... 3

5

Conclusions and Recommendations ... 6

5.1 Conclusions ... 6

5.2 Recommendations ... 7

5.2.1 Approach to addressing identified gaps ... 7

5.2.2 Acceptance of process by preferred lenders... 7

5.2.3 Streamlining of baseline investigations ... 7

5.2.4 Scoping and stakeholder engagement ... 8

5.2.5 Timing of the ESIA update ... 8

6

Proposed next steps ... 8

7

References ... 10

Appendices ... 11

Appendix A: Detailed Gap Analysis ... 12

List of Tables

Disclaimer

The opinions expressed in this Report have been based on the information supplied to SRK Consulting (South Africa) Pty Ltd (SRK) by PPC Ltd (PPC). The opinions in this Report are provided in response to a specific request from PPC 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.

1

Introduction and Scope of Report

PPC Ltd (PPC) through the Barnet Group S.P.R.L. (No. 01-93-N34963R) proposes developing a new cement project at Songololo (hereafter referred to as the ‘proposed project’) in the Lower-Congo Province, Cataractes District, Songololo District of the Democratic Republic of Congo (DRC). The project area is located about 200km from Kinshasa (Figure 1). As PPC intends to apply for funding from international lenders, it has decided to prepare an Environmental and Social Impact Assessment (ESIA) that meets international environmental and social standards.

SRK Consulting (South Africa) Pty Ltd (SRK) was commissioned by PPC to review the Environmental Impact Assessment (EIA) undertaken in fulfilment of DRC environmental and social legal requirements to identify any gaps in meeting the Equator Principles III (June 2013) and the requirements of Equator Principles Finance Institutions (EPFI) requirements, including the International Finance Corporation (IFC) Performance Standards (PS) on Environmental and Social Sustainability (January 2012).

This report presents the findings of SRK’s gap analysis, and proposes an approach to preparing an ESIA for the project that meets EPFI and IFC PS requirements, as set out in SRK’s proposal dated 23 August 2013.

Figure 1: Project location

2

Background and Brief

2.1 Background of the project

The area of proposed project is located near the National Cement Plant (CINAT) on the outskirts of the town of Kimpese, between the villages of Malanga and Zamba which are located at 5km and 8.5km respectively along the National Road No.1. The N1 links the town of Matadi to Kinshasa. A railway linking Matadi and Kinshasa is located approximately 5km from the project site.

The exploitation right for the project area was granted to the Barnet Group in accordance with Articles 47 and 137 of Law No. 007/2002 of July 11, 2002 relating to the Mining Code and Article 281

of the Mining Regulations (Decree No. 038/2003) (EIA, 2010). The Barnet Group applied for and

obtained a Permanent Quarry Exploitation Authorisation in 2011 (Certificate No.

CAMI/CECP/6389/11) to quarry limestone. There are no other land tenure, mining or quarry rights included in the proposed project area.

The project feasibility study anticipates an annual production of 900,000 tons of clinker based on a kiln supply of 1,440,000 tons of raw material at 77% of CaCO3. It is estimated that the limestone reserve is approximately 127 million tons and is covered by 45 million tons of clay, laterite and overburden. This resource will allow the company to increase its production capacity 2,000 to 3,000 tons per day for a period of 30 years.

In fulfilment of DRC Law No. 007/2002 relating to the Mining Code and the Mining Regulations (Decree No. 038/2003 of March 26, 2003), a local Congolese consultant (name of company to be provided by PPC) was commissioned to prepare an EIA for the proposed project. The EIA was conducted in December 2010 and approved by the DRC Government (DPEM).

2.2 Nature of the brief

PPC’s scope of work based on discussion on 21 August 2013 involves the following tasks:

 Conclude a Confidentiality Agreement prior to the commencement of the assignment

 Translate the EIA from French to English

 Conduct a technical review of the translated EIA to identify any gaps in meeting the requirements of international good practice principles, standards and guidelines including:

o Equator Principles III

o International Finance Corporation’s Performance Standards on Environmental and Social Sustainability

o World Bank Group (WBG) Environmental, Health and Safety (EHS) Guidelines, including the General Guideline and Sector-specific guideline on Cement and Lime Manufacturing

o International Labour Organisation (ILO) Core Conventions and other standards such as the Voluntary Principles on Security and Human Rights

o Prepare a report that presents the findings of the gap analysis and provides an approach and plan of action for addressing identified gaps in order to prepare an ESIA that meets international environmental requirements.

3

Project Objectives and Work Program

3.1 Program objectives

 Task A: Sign a Confidentiality Agreement with PPC

 Task B: Translate the EIEIAS from French into English, and provide this document to PPC for their record

 Task C: Review the translated EIA against international requirements for environmental and social sustainability to identify gaps

3.2 Purpose of the Report

This report has been prepared to advise PPC on gaps in the EIA that need to be addressed in order to prepare an ESIA that meets international environmental and social requirements. This document is not meant for wider circulation.

The report also sets out SRK’s proposed approach to preparing an ESIA that meets EPFI requirements as well as aligns with the likely timing of PPC’s negotiations with relevant lenders.

3.3 Work program

The assignment was conducted from 23 August to 13 September 2013 and the time was allocated as follows:

 Task A: Sign Confidentiality Agreement – 1 day

 Task B: Translation undertaken by a professional translator – 14 days

 Task C: Technical review of language and gap analysis – 7 days

 Task D: Report development – 2 days

Task A was completed prior to the commencement of Tasks B, C and D, which were run concurrently. It is assumed that SRK will meet with the PPC project team to discuss its findings and proposed approach to preparing an internationally compliant ESIA that addresses gaps in the EIA.

3.4 Statement of SRK Independence

Neither SRK nor any of the authors of this Report have any material present or contingent interest in the outcome of this Report, nor do they have any pecuniary or other interest that could be reasonably regarded as being capable of affecting their independence or that of SRK.

SRK has no beneficial interest in the outcome of the technical assessment being capable of affecting its independence.

4

Overview of findings of the gap analysis

The gaps the gaps that were identified in the EIA relate to:

 Lack of an environmental and social management system (ESMS) for the proposed project, including policies, institutional arrangement and staffing for environmental health and safety (EHS)

 Key details pertaining to the project description

 Legal framework for environmental and social assessment and management

 Environmental and social baseline studies, including wet and dry season data pertaining to surface and groundwater and air quality as well as socio-economic conditions of villages living and practicing their livelihoods in close proximity to the proposed project

 Identification of sensitive environmental and social areas relative to the siting and layout of the proposed project

 Impact assessment methodology and presentation of ratings

 Management planning

Table 4-1 presents the key gaps that need to be filled in order to ensure that the Environmental and Social Impact Assessment (EISA) report meets the requirements of the EPFIs, IFC PSs and good international practice (GIIP).

Appendix A provides a detailed analysis of the EIA against the eight IFC PSs, which provide a comprehensive framework for assessing compliance with globally accepted international standards. It is anticipated that the IFC PS broadly encompass the principles and standards internationally. The ESIA will however need to align and reference all relevant standards and guidelines of those lenders that are being approached by PPC. The ESIA will need to be updated to address additional lender requirements identified in the course of the development of the document, should these be identified.

Table 4-1:

Gaps found in the EIA

Issue

Gap to be filled

PS reference

ESMS



An ESMS needs to be developed which will set out policies plans

and programmes, as well as organisational arrangements and

capacity for mitigating and managing identified risks and impacts.

Monitoring and review should be an integral part of this system.



The corporate policies must be aligned to the objectives of the

ESMS, and any policy gaps filled. Typical policies might include:

o

Sustainable development

o

Environment

o

Human resources

o

Human rights

o

Corporate social responsibility

o

Health and safety

o

Community development

o

Resource efficiency

o

Supply chain management

PS1, PS2

Project

description

Project information to be supplied includes the following:



Project motivation, to include description of export markets (if

any), volumes and routes



Source of coal, and how is this being transported



Water volume requirements during different project phases



Staff requirements during different project phases



Staff accommodation (temporary and permanent, to include the

use of migrant and expatriate staff



Transport volumes and frequency



Topsoil management



Design and management of the overburden facility



Hours of operation or the quarry and the plant



Full layout of the quarry, plant and associated infrastructure



Power supply and measures for power outages



Road and rail infrastructure, as well as powerlines and conveyors



Waste management, including management of hazardous waste



Explosives and hazardous chemicals management and storage



Management and storage of hydrocarbons



Water pollution management systems



Efficiency aimed at minimising resource and avoidance of waste



Service providers and contractors

Issue

Gap to be filled

PS reference

sustainability

Baseline

conditions

Data to be provided by PPC includes:



High resolution aerial photography of the entire project site and

surrounds

Comprehensive baseline data needs to be gathered as follows:



Surface and groundwater



Air quality and climate, including greenhouse gases



Ambient noise levels



Socioeconomic conditions including ecosystem services



Soil, land capability and land use



Natural habitat classification including of the aquatic environment



Cultural heritage



Traffic

Baseline data needs to be collected using methods such as site

observation, surveys, sampling, census, as well as secondary sources.

Predictive modelling needs to be undertaken for water, air and noise.

PS3, PS4,

PS6, PS8

Determining

sensitivities



The footprint of the development needs to be aligned carefully to

avoid environmental and social sensitivities



Overlay information from the specialists to determine the relative

sensitivity of parts of the site



Inform layout and design

PS1

Impact

assessment



The ESIA needs expanding to meet international standards



Systematic identification and assessment of risks and impacts

applying a standardised methodology which assesses impacts

before and after mitigation during difference project phases



Cumulative assessment of impacts from other developments in the

vicinity needs to be assessed



Define the zones of influence for impacts utilising spatially

represented data

PS1

Management

plans and

programmes

A comprehensive environmental and social management plan (ESMP)

which presents the following:



Mitigation or enhancement measures need to be identified for

each impact by project phase



Institutional roles and responsibilities



Monitoring, review, reporting and corrective action



Develop an environmental and social action plan, timeframes,

responsibilities, performance indicators and targets, as well as

resources required for implementation



Develop operational plans to cover:

o

Emergency preparedness and response

o

Community health and safety

o

Labour and human resources plan

o

Greenhouse gas inventory and management plan

o

Framework resettlement action plan (including economic

displacement)

o

Occupational health and safety

o

Waste management plan

o

Sustainable development plan

o

Cultural heritage management plan (including chance find

procedure)

o

Biodiversity management plan

Issue

Gap to be filled

PS reference

o

Water quality monitoring plan

o

Air quality management plan

o

Stormwater management plan

o

Resource efficiency plan

o

Noise abatement

o

Closure and rehabilitation plan

Stakeholder

engagement



Stakeholder analysis needs to be undertaken to identify

stakeholders from government, civil society, local affected

communities and non-governmental organisations. The document

currently only notes engagement with villages. Vulnerable interest

groups, notably women, children and disabled need to be

identified, and engagement needs to be structure ensure

engagement



A tailored stakeholder engagement plan (SEP) needs to be

developed to guide an ongoing engagement process. Information

needs to be disclosed systematic and clear manner, to include a

background information document (BID) and non-technical

summary and comment forms.



The SEP needs to include a grievance mechanism



Language barriers need to be overcome through and appropriate

means of communication utilised



The stakeholder engagement process needs to be clearly

documented



Establish stakeholder engagement forum

PS 1, PS2,

PS3, PS8

5

Conclusions and Recommendations

5.1 Conclusions

The key conclusions of the Gap Analysis are as follows:

 The EIA approved by the DRC Government will need to be significantly expanded to ensure that it meets international standard for ESIA

 Key gaps identified relate to the need for the development of a comprehensive ESMS, the description of the project, baseline studies and impact assessment, preparation of management plans to mitigate project impacts and stakeholder engagement

 The gaps relating to the legislative framework, project description, identifying sensitive areas impacted by the proposed project and assessing the impacts and preparing management plans can be addressed relatively quickly (i.e. about 2 months) assuming the information is available

 The following identified gaps are likely to require more time (i.e. minimum of 6 months) to address: wet and dry season monitoring as part of the baseline investigation of surface water, groundwater, air quality and biodiversity; and stakeholder engagement with local communities, government institutions (national, regional and local), traditional leaders and special interests groups

 The timing of longer lead components of the ESIA (e.g. baseline studies for water, air and biodiversity and stakeholder engagement) will be influenced by seasonal monitoring and the review/comment periods of stakeholders

 It does not appear that the proposed project will result in physical displacement of local communities but it will be necessary to survey the area to determine if there will be economic displacement through loss of access to land for subsistence cultivation and use of goods and services. This will necessitate field surveys and analysis of aerial photography (if available)

 There does not appear to be high resolution aerial photography of the project area and surrounds which will be essential for reviewing the location and extent of farming activities within the project area

 Based on the above conclusions, the updating of the EIA to an international standard ESIA will not be completed by the November 2013 but will need to be phased.

5.2 Recommendations

The key recommendations arising from the Gap Analysis are as follows:

5.2.1 Approach to addressing identified gaps

SRK proposes a phased approach to the updating of the bankable ESIA. In order to meet tight

timeframes, it suggested that the process be phased as follows:

 Phase 1: Gap Analysis and High Level Action Plan (this document) which highlights the areas that need to be addressed in order to ensure that the requirements of EPFIs are met.

 Phase 2:Preparation of ESIA and ESMP. This process should be completed in two steps as follows:

o Phase 2a: Draft ESIA. This will present the legal framework, sensitivity analysis, baseline studies for social, cultural heritage and traffic, preliminary findings for water, air and biodiversity baseline studies, as well as an interim impact assessment and ESMP. It will further provide a Detailed Plan of Action for addressing outstanding information. The document will be provided to preferred lenders for review and comment)

o Phase 2b: Comprehensive ESIA. – that includes the findings of remaining baseline

studies and updates to the impact assessment and ESMP and management plans

 Phase 3: Review and finalisation of ESIA. The comprehensive ESIA report should be distributed to stakeholders (including lenders) for review. Following any updates based on feedback from stakeholders, the ESIA report should be finalised including the Issues and Responses Report and submitted to lenders for disclosure and decision making.

5.2.2 Acceptance of process by preferred lenders

 In order to avoid any challenges to the proposed phased approach, it is recommended that PPC meet with preferred lenders as soon as is feasible to get their buy-in to the process. SRK can present the approach if required.

 Consideration should be given to submitting the Draft ESIA to preferred lenders to ascertain their comments which can be addressed prior to the finalisation of the ESIA. This can also give PPC an opportunity to secure commitments from the lenders for their disclosure of the ESIA based on the detailed plan of action.

5.2.3 Streamlining of baseline investigations

 Where possible, baseline environmental and social investigations should be completed during Phase 2a so as to feed into the Draft ESIA report.

 Baseline investigations relating to socio-economic, cultural heritage, noise and traffic should be fast tracked and ideally organised to take place during the first site visit (refer to Appendix B for proposed scope for specialist investigations).

 Baseline investigations that require longer term monitoring to cover both wet and dry seasons (i.e. surface water, groundwater, biodiversity (if required) and air quality) should be scheduled to commence at the first site visit (refer to Appendix B for proposed scope for specialist investigations).

5.2.4 Scoping and stakeholder engagement

 Scoping of issues should be undertaken during Phase 2a in order to inform the Draft ESIA

 Stakeholder engagement should comprise a minimum of two rounds of engagement namely: o Notification of stakeholders regarding the updating of the EIA

o Release of Comprehensive ESIA for review and comment

o Formal presentation of documentation to stakeholders, and engagement to gather feedback and comment

 The Draft ESIA should be provided to lenders for their input and review

 The Comprehensive ESIA should be released to the lenders concurrently as it is being reviewed by DRC stakeholders

 The feedback from DRC stakeholders should be captured in the form of an Issues and Responses Report and used to updated the Stakeholder Engagement Plan.

5.2.5 Timing of the ESIA update

Based on the phased approach recommended above, it is envisaged that the ESIA update for the proposed project can be scheduled as follows:

 Phase 2a: Mid-September to end-November 2013

 Phase 2b: Mid-November 2013 to Mid-June 2014

 Phase 3: July 2014.

6

Proposed next steps

Following PPC’s review of the Gap Analysis and proposed approach to updating the EIA to meet EPFI requirements, it is proposed that:

 The PPC project team for the proposed project meet with SRK to discuss the findings and recommended approach set out in the Gap Analysis

 SRK to amend the proposed approach to the EIA update based on feedback from PPC

 PPC confirm the scope of work and timing of the proposed project and request SRK to proceed with the preparation of a proposal and estimate of costs

 SRK submit the proposal and budget for updating the EIA for consideration by PPC

As noted above, it is recommended that PPC approach the lenders as soon as feasible to gather feedback on the proposed approach.

Prepared by

L Brown

Principal Environmental Scientist

Reviewed by

D Kilian Partner

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.

7

References

Anonymous (2010). PPC Cement: EIA and EMP for New Cement Plant, December 2010. Study commissioned for PPC Barnet.

IFC (2012). Performance Standards on Environmental and Social Sustainability, including the Guidance Notes. Published by the International Finance Corporation, 1 January, 2012.

The Equator Principles (2012). A financial industry benchmark for determining, assessing and managing environmental and social risk in projects. Draft published June 2013

Appendix A

2012 IFC Performance Standards Review of PPC Barnet EIA

Table of Contents

1

PS1: Assessment and Management of Environmental and Social Risks

and Impacts 2

2

PS2: Labour and working conditions ... 7

3

PS3: Resource Efficiency and Pollution Prevention ... 9

4

PS4: Community health and safety, and security ... 11

5

PS5: Land Acquisition and Involuntary Resettlement ... 13

6

PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources 18

7

PS7 Indigenous Peoples ... 21

Table 1-1:

IFC Performance Standards Review for PPC Barnet

1

Ref.

Detail Review comment Recommendation

1

PS1: Assessment and Management of Environmental and Social Risks

and Impacts

 Identify and evaluate environmental and social (E&S) risks and impacts of the project;

 Adopt a mitigation hierarchy to anticipate and avoid, or where avoidance is not possible, minimize4, and, where residual impacts remain, compensate/offset for risks and impacts to workers, Affected Communities, and the environment;  Promote improved environmental and social performance of clients through the effective use of management systems;

 Ensure that grievances from Affected Communities and external communications from other stakeholders5 are responded to and managed appropriately;

 Promote and provide means for adequate engagement with Affected Communities throughout the project cycle on issues that could potentially affect them and to ensure that relevant environmental and social information is disclosed and disseminated. The company that carried out the drafting of the EIA is not stated,

the date that the work was done, nor the status of approval is not stated

Environmental and social assessment and management system

5 Conduct a process of environmental and social assessment and establish and maintain an Environmental and Social Management System (ESMS)6 incorporating the following elements:

 policy;

 identification of risks and impacts;  management programs;

 organizational capacity and competency; a  emergency preparedness and response;  stakeholder engagement; and

 monitoring and review.

An environmental impact assessment to comply with DRC requirements has been completed and authorisation provided. While the report covers some of the international standards, significant gaps and areas of further detail remain to be filled to meet IFC requirements. The EIA covers numerous elements of a management system, including various measures for

management of aspects of construction and operational equipment. A formal management system, such as an internationally accredited system) could be considered for implementation.

Company activities have been updated since the EA was carried out and the assessments do not cover the full extent of

production envisaged.

As key components of the ESMS, PPC Barnet will need to develop a policy, a suitable EHS management structure which will include competencies for emergency preparedness and response, as well as stakeholder engagement to be associated with appropriate plans incorporating monitoring and review. The full extent of requirements is elaborated on within this table below and in the associated action plan.

Revise the ESIA/ESAP documentation in line with recommendations made in this report.

Develop a management system, to be in alignment with identified risks and priorities for management.

Policy 6 Establish an overarching, stand-alone, project-specific policy, which defines E&S objectives and principles that guide the project to achieve sound E&S performance. The policy should:

 specify that the project will comply with applicable host country and international laws and regulations;

 be consistent with the principles of the Performance Standards;

 include other internationally recognised standards, certification, codes of practice subscribed to;

 indicate who, within the client’s organisation, will ensure conformance with the policy and be responsible for its execution (reference third parties as relevant).

Communicate the policy to all levels of the organisation.

It needs to be identified which policies PPC Barnet has in place are applicable to the DRC project. , to become the basis for the ESMS for the project. These should be adapted (where relevant policies exist) and gaps filled to be compliant with the IFC requirements.

PPC Barnet to review its existing policies and, with the assistance

of SRK, identify where new policy is required or where updates to

fill gaps are necessary. The corporate policies must be aligned to

the objectives of the ESMS, and any policy gaps filled. Typical

policies might include:



Sustainable development



Environment



Human resources



Human rights



Corporate social responsibility



Health and safety



Community development



Resource efficiency



Supply chain management

1

NOTE TO THE USER: This table is an SRK Consulting prepared summary of the IFC Performance Standards (2012) and is not intended to substitute the PS’ Guidance Notes.

2 _{E&S risk is a combination of the probability of certain hazard occurrences and the severity of impacts resulting from such an occurrence.} 3

E&S impacts refer to any change, potential or actual, to (i) the physical, natural, or cultural environment, and (ii) impacts on surrounding community and workers, resulting from the business activity to be supported. 4

PS heading Para. Ref.

Detail Review comment Recommendation

Identification of risks and impacts

7 Establish and maintain a process7 for identifying project-related E&S risks and impacts, in accordance with good international industry practice (GIIP)8.

Ensure that the risks and impacts identification process:

 is based on recent E&S baseline data at an appropriate level of detail;

 considers all relevant E&S risks and impacts of the project, including those from PS2 to PS8, and those who are likely to be affected by such risks and impacts (including individuals/groups that are considered disadvantaged or vulnerable9) and complement this with a human rights due diligence in high risk circumstances;

 considers the emissions of greenhouse gases, the risks associated with a changing climate (and adaptation opportunities), and potential transboundary effects.

The EIA includes a generic and qualitative description of a range of project related risks and impacts. However, there is insufficient baseline information presented upon which to base the impacts assessed covering aspects including water, air quality, social, cultural heritage and climate change (GHG emissions). The risk and impact identification and evaluation process is not

comprehensive, systematic or based on an internationally accepted rating method. The impact assessment method does not deal with the project in phases (construction, operation and decommissioning/ closure), nor does it deal with pre-and post-mitiation impacts. .

E&S risks and impacts are not in general based on detailed baseline data and substantial deficiencies in baseline and monitoring data exist (notably water quantity (wet and dry season data and modelling not presented), water quality, air quality, noise, social, biodiversity (dry and wet season data does not appear to have been gathered) and cultural heritage). The risks and impacts are described generically in the ESIA. There are no modelling studies, no quantification of impacts, no rating system used to assess significance, and thus no relative importance assigned to understand materiality for management, although the ESAP does list the key priorities for management. There is also no consideration of impacts per project phase, and none for closure and decommissioning. Receptors are not described and sources of impacts are generic and so auditability is difficult. Limited labour, security or workplace health and safety impacts are considered in the ESIA.

The emission of greenhouse gases is briefly considered in the EIA check, but no quantification is given based on emitting sources and land use change.

PPC Barnet should determine whether in-house risk assessment and management documentation is available for analogous projects. If available, these should guide the identification of potential risks and impacts for the current project.

Revise the ESIA documents to ensure that all relevant risks and impacts have been identified in accordance with GIIP. Carry out impact

identification and rating using an internationally credible method to be applied to individual project phases (construction, operation and decommission/ closure as relevant) per impact. Assessment must cover both pre-and post-mitigation impact assessment

There further needs to be revision and expansion of the monitoring plans as well as prioritisation of management actions.

Carry out a comprehensive social baseline assessment, to ensure attention is paid to identification of vulnerable groups.

Conduct a greenhouse gas inventory and compile a greenhouse gas management plan.

8

Analyse risks and impacts in the context of the project’s area of influence encompassing:  the area likely to be affected by:

o the project and related facilities that the client and its contractors develops or controls;

o unplanned but predictable developments caused by the project that may occur later or at a different location;

o indirect project impacts on biodiversity or on ecosystem services.

 associated facilities not funded as part of this project and whose viability and existence depend exclusively on the project and are essential for the successful operation of the project;

 areas potentially impacted by cumulative impacts for further planned development of the project, any existing project or condition and other project-related developments.

Area of influence is not clearly specified for the baseline data or impact assessment. It is not explicit or clear in the ESIA what project activities are included in the assessment, and unplanned but predictable developments, as well as cumulative impacts are not assessed.

Few indirect impacts are considered although these could potentially be the most significant impacts that require management intervention.

There appears to be insufficient consideration of associated facilities such as road infrastructure.

A cumulative impact description should include impacts associated with regional development which could result in significant environmental and social impacts.

Assessments and management plans should be compiled that focus on the area of influence of each project activity, as well as incorporating indirect and associated facilities, and regional development and cumulative impacts. Checking of the project description in the EIA should be carried out to ensure that all development activities have been identified, the footprint of the development is clearly depicted in a map (shapefile-based), which needs to include the plant, quarry, and

associated infrastructure. These features need to be shown in relation to surrounding receptors including villages. Verify which additional associated facilities such as transport infrastructure should be included in the project description.

9 Consider risks and impacts resulting from third party involvement (where the client can reasonably exercise control).

While it is SRK’s current understanding that there will not be any physical displacement of communities caused by the

development footprint, it is possible that there will be economic displacement involved (displacement of crop production, as well as impacts on ecosystem services). Compensation for economic displacement would need to be undertaken in line with DRC and IFC requirements, while impacts on ecosystem services will need to be addressed through management planning. A resettlement action planning process will need to be implemented should there be economic displacement.

Should the project result in economic displacement, (to be determined through a detailed baseline survey) compensation agreements will need to be negotiated with displaced stakeholders. Transparency and fairness in compensation processes will need to be ensured, including through the development of a disclosed Resettlement Action Plan. PPC Barnet should review government compensation framework to see alignment with PS5.

10 Consider risk and impacts associated with primary supply chains (where the client can reasonably exercise control) defined in PS2 and PS6.

PPC Barnet will need to take steps to ensure that key suppliers such as hospitality management, security, local suppliers of construction materials and other service providers do not contravene child and forced labour guidelines, or place their

A protocol will need to be put into place for the checking of supply chains and service providers, to include the safe disposal of wastes. This will need to include a monitoring programme to ensure compliance with PS2

7 The process may comprise a full-scale ESIA; a limited or focused ESIA; application of environmental siting, pollution standards, design criteria, or construction standards; E&S audits; E&S risk/hazard assessments.

8 The exercise of professional skill, diligence, prudence, and foresight that would reasonably be expected from skilled and experienced professionals engaged in the same type of undertaking under the same or similar circumstances globally or regionally.

9 This disadvantaged or vulnerable status may stem from an individual’s or group’s race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth, or other status. The client should also consider factors such as gender, age, ethnicity, culture, literacy, sickness, physical or mental disability, poverty or economic disadvantage, and dependence on unique natural resources.

PS heading Para. Ref.

Detail Review comment Recommendation

workers in life threatening situations. Supplies received based on conversion natural resources such as food, fibre and construction materials should be considered, as should the disposal of wastes.

and PS6

11 Take cognisance of the findings and conclusions of related plans, studies or assessments that are directly related to the project and its area of influence and the outcome of engagement with Affected Communities.

PPC Barnet will need to undertake a process of identifying and obtaining governmental and civil society plans relevant to the project area of influence, to include national plans and strategic assessments which pertain to the development of the cement industry in DRC.

The updated ESIA documentation, procedures and activities need to take account of national policy and planning initiatives, including at the local level.

Stakeholder engagement will need to take cognisance of risks and impacts as identified by affected communities.

12 Identify individuals and groups directly and differentially or disproportionately affected by the project because of their disadvantaged or vulnerable status and implement

differentiated measures to ensure they are not disproportionally impacted or disadvantaged in terms of benefits and opportunities.

The project may reduce the land available for subsistence agriculture or food harvesting, which is likely to place an added burden on communities including women.

If it is identified that there will be economic displacement through development of the project (such as subsistence crop production), a Resettlement Action Plan will need to be developed to address this issue. Further, a more detailed Community (Sustainable) Development Plan should be developed which sets out measures for vulnerable people including women, disabled adults, HIV infected people and others. Management

Programs10 11

13 Establish management programmes that describe mitigation and performance improvement measures and actions that address the identified risks and impacts.

Mitigation measures are included in the discussion of impacts is contained in the EIA, with an overarching management plan. However no detailed management programme exists with appropriate, criteria, responsibilities, timelines and budget. There are currently no detailed programmes and plans encompassing community (sustainable) development, emergency preparedness and response, mine reclamation and closure, stakeholder engagement, waste management, occupational health and safety, community health and safety, labour and human resources, stormwater management, air pollution management as well as resettlement should be developed. Plans are further required for biodiversity management and resource use efficiency.

The development of standards, policies and procedures should be aligned, with the custodian of these being company management, not divisional management.

compile plans for community (sustainable) development, emergency preparedness and response, mine reclamation and closure, stakeholder engagement, waste management, occupational health and safety, community health and safety, labour and human resources, air pollution, stormwater management as well as resettlement. These should include detailed planning including standards, operating procedures and implementation details.

Contractor management plans should form an important part of the plans. Implement a standardised system of policies, procedures and systems for the organisation, with the custodian for performance being company management and the sustainability department.

14 Favour impact and risk avoidance over minimization, and where residual impacts remain, compensate or offset these, where technically and financially feasible.

Strong focus needs to be placed on the avoidance to damage of ecosystems, livelihoods and pollution, rather than end-of-pipe solutions. This should encompass a screening exercise to ensure the as the careful siting of the development in relation to crop production (economic displacement), communities in relation to ambient wind direction (health and nuisance impacts), watercourses and water bodies (flooding, erosion and pollution risks), and careful siting of waste management facilities (health and pollution risks).

Baseline assessments and identification and mapping of important environmental and social assets should be strengthened to inform project layout and design (screening).

Develop a hierarchy of policies, programmes and plans as outlined in this table.

15 Ensure mitigation and performance measures comply with applicable laws and regulations and meet PS1 to PS8.

The impact assessment and mitigation measures are generic, and will need to be revised. Importantly, existing measures do not consider the IFC Environmental, Health and Safety Guidelines.

Revise impact assessments and develop management plans to incorporate the IFC EHS Guidelines.

16 Establish E&S Action Plans12 defining desired outcomes as measurable events with performance indicators, targets and acceptable criteria that can be tracked over defined periods, with estimates of resources and responsibilities for implementation.

Plans must recognise the role of third parties and must be responsive to changes in circumstances, unforeseen events and results of monitoring and review.

The ESAP and Management Plans do not define specific outcomes, measurable events with performance indicators, targets and acceptable criteria. It is not clear what criteria are tracked in monitoring programmes, and responsibilities for implementation are not clearly described.

Consideration of the role of third parties is not provided.

A management structure should be set in place, matched with an environmental and social management system. Management programmes and action plans including these elements should be compiled for each area of critical management.

The management system should be designed so that plans are implemented throughout the organisation.

Organizational capacity and competency

17 Establish, maintain and strengthen as appropriate an organisational structure that defines roles and responsibilities, authority to implement the ESMS. Specific personnel with clear lines of responsibility and authority should be designated. Key social and environmental responsibilities should be well defined and communicated to relevant personnel and the rest of the organisation. Sufficient management sponsorship and human and financial resources will be provided on an ongoing basis to achieve and continuous performance.

The organisational structure for the project is not yet in place given the early stage of development. However, the IFC requires that structures are identified, including identification of the persons responsible for community liaison, as well as environmental health and safety.

An environmental and social management system, incorporating an organogram should be developed. Environmental and social roles and responsibilities should be clearly defined.

PS heading Para. Ref.

Detail Review comment Recommendation

18 Personnel with direct responsibility for E&S performance must have the appropriate

knowledge, skills, and experience necessary to perform their work, including

implementation of the measures and actions in the ESMS and current knowledge of host country regulation and the requirements of PS1 to PS8.

Staff required for E&S performance, including for management of DRC regulatory and IFC compliance, have not yet been appointed by PPC Barnet

Appropriate staff appointments should be implemented in a phased manner for the project, to ensure that structure are in place prior to commencement of construction

19 E&S process must consist of an adequate, accurate, and objective evaluation and presentation, prepared by competent professionals. External experts must assist in the risks and impacts identification process for projects with significant adverse impacts or that are technically complex.

An EIA was commissioned by PPC Barnet and was developed by XXXXX (PPC to supply) in order to meet in-country legal requirements for which approval for the project was granted by the DRC authorities. Significant updating of the documentation is required to become an IFC- compliant ESIA, as outlined in this table and the accompanying action plan. This is of significance, particularly since the proposed project poses significant risks and potential impacts, both in terms of the social as well as the environmental baselines.

Specialist input will be required to ensure that key material risks and potential impacts have been identified, that avoidance and mitigation management measures are comprehensive, impacts have been

adequately assessed using replicable and established methodology, and to assist with setting up a formal environmental and social management system.

Emergency preparedness and response

20 Establish and maintain an emergency preparedness and response system identifying:  areas where incidents may occur;

 communities and individuals that may be impacted;  response procedures;

 provision of equipment and resources;  designation of responsibilities;

 communication (including Affected Communities) and training to ensure effective response.

 Review and revise activities periodically.

No comprehensive emergency preparedness and response system has been developed for the project which adequately identifies potential incidents, affected communities and

individuals, and means of dealing with and updating the system.

The organogram for the project should be developed for PPC Barnet, including the identification of roles and responsibilities for emergency preparedness and response. Emergency preparedness and response plan(s) covering both on-site and off-site emergencies related to the project should be developed as part of the EIA update process. Emergency plans should be updated prior to construction once design has been finalised.

21 Assist potentially affected communities and local government with preparations to enable effective response to emergency situations (if applicable). Where local government agencies have little or no capacity to respond effectively, the Client will play an active role in preparing for and responding to emergencies associated with the project. Document and disclose to Affected Communities and government agencies.

The government agencies have little capacity to respond to emergencies and will be reliant on PPC Barnet for assistance.

Ensure that the emergency preparedness and response plans (applying to both on- and offsite emergencies) incorporates the input of relevant government agencies. Incorporate the documentation developed into stakeholder engagement to ensure disclosure

Monitoring and review 22 Establish procedures for monitoring and measuring effectiveness of the management programme and compliance with legal/contractual obligations and regulatory

requirements. Include representatives from Affected Communities in the monitoring activities (where appropriate). Retain qualified external experts to verify monitoring information.

The EIA includes a section on monitoring which does not define indicators and therefore measuring its effectiveness is difficult.

Compile and document a comprehensive monitoring system in line with the updated impact assessment to be carried out.

Compile a legal register to be used as the basis of regular legal compliance reviews, particularly for potentially onerous requirements of new legislation.

Experts should be appointed prior to the commencement of construction, and at regular intervals thereafter (at least annually) to verify monitoring information. Where relevant, representatives from affected communities should form part of monitoring activities.

23 Use inspections and audits to verify compliance and progress toward desired outcomes. Document results and corrective and preventative actions implemented and followed up.

While the EIA lists various monitoring activities, it does not contain measures for verifying and corrective action towards desired outcomes (including audit procedures)

The monitoring programme in the updated ESIA will need to be expanded upon to provide clarity on roles, responsibilities and frequencies of reporting, indicators, means of verification and auditing procedures. From commencement of construction and to be continued through all project phases, internal inspections of facilities will need to be commenced by PPC Barnet’s environmental health and safety staff. Results of internal inspections and non-conformances should be recorded and documented. Corrective and preventative actions and responsibilities should be included.

24 Relay the effectiveness of the ESMS to senior management on a periodic basis. Senior management should take appropriate steps to ensure that the intent of the client’s policy is met, the ESMS is being implemented and is effective.

The ESMS for the project still needs development. A program for reporting and reviewing also need to be developed.

The ESMS must be developed to include environmental health and safety reporting requirements. Frequencies of reporting, roles and

responsibilities will need to be clearly defined. A programme of reporting and reviewing will also need to be developed as part of the updated ESIA.

On commencement of construction, systematic monitoring of the progress on implementation of the management system will need to be undertaken by management. EHS issues will need to be addressed on a frequently (weekly) basis by management, with regular (monthly) reports are submitted by the EHS department for review by top management structures. An appropriately constituted safety committee should meet on a monthly to review results. .Management and the Board should

PS heading Para. Ref.

Detail Review comment Recommendation

Stakeholder engagement

25 Stakeholder engagement is an ongoing process that may involve the following elements:  stakeholder analysis and planning;

 disclosure and dissemination of information;  consultation and participation;

 grievance mechanism;

 ongoing reporting to Affected Communities.

Stakeholder engagement has taken place to date on the project to meet DRC legal requirements. No comprehensive stakeholder engagement plan (SEP) has yet been developed for the project, and neither has a grievance mechanism been established. Stakeholder engagement needs to be in place for the full project life cycle.

A comprehensive SEP should be developed, to incorporate a grievance mechanism. The updated ESIA including the SEP and the grievance mechanism will need to be disclosed as an ongoing stakeholder engagement process for the project.

Stakeholder analysis and engagement planning

26 Identify stakeholders, including Affected Communities, and consider external communications to facilitate a dialog with them.

Stakeholder engagement took place during the development of the EIA, with a stakeholder database having been developed . Villages where consultation has taken place are Zamba and Malange Village. Stakeholder engagement will need to be continued and expanded to ensure adequate disclosure of the updated ESIA.

The SEP to be developed as part of the updated ESIA will set out a procedure for communicating externally for the full life of project.

27 Develop and implement a SEP tailored to the characteristics and interests of the Affected Communities. Include differentiated measures to allow effective participation of those identified as disadvantaged or vulnerable. Where the process depends on community representatives, verify that they represent the community views and can be relied on to communicate results to constituents.

The SEP to be developed as part of the updated ESIA will need to be tailored to ensure, in particular, participation by vulnerable groups including women and disadvantaged people.

Tailor the SEP to be developed as part of the updated ESIA to ensure participation by vulnerable groups including women and disadvantaged people.

28 Where the project location is not known, prepare a stakeholder engagement framework including general principles and strategy to:

 identify Affected Communities and other stakeholders;  plan for an engagement process.

Not applicable Not applicable

Disclosure of information

29

Disclose information on the purpose, nature, scale of the project, duration of activities, risks and impacts on communities , the envisaged stakeholder engagement process and grievance mechanism.

The EIA does not clearly indicate what content or information was provided to community members during stakeholder engagement for the EIA. A SEP and grievance mechanism has not yet been developed and has not been disclosed to communities.

Further detail is required on what documentation/information was provided to communities during stakeholder engagement for the EIA. Develop a SEP and grievance mechanism to disclose to communities along with the updated ESIA

Consultation 30 Undertake a consultation process that provides Affected Communities with opportunities to express their views on project risks, impacts and mitigation measures. The client will consider and respond to these.

Ensure the consultation is a two-way process that:

 commences early in the assessment process and continues on an ongoing basis;  is based on prior disclosure and dissemination of relevant, transparent, objective,

meaningful and easily accessible information which is in a culturally appropriate local language(s) and format and is understandable to Affected Communities;

 is inclusive for those directly affected;

 is free of external manipulation, interference or coercion and intimidation;  enables meaningful participation;

 is documented.

The principles of stakeholder consultation and disclosure need to be clearly presented through PPC Barnet corporate policies, and further need to be reflected in the SEP to be developed. Stakeholder engagement needs to be a key component in the updated ESIA, with implementation taking place for the lifetime of the project. It was not clearly indicated in the EIA whether or not the stakeholder engagement process has been conducted to date using independent stakeholder engagement specialists skilled at ensuring meaningful participation.

Detail on what was presented to the communities is not documented in the EIA. Questions were asked o the stakeholders regarding their response to the project. It is not clear whether they were provided sufficient opportunity to raise their concerns about the project. No documentation of the issues and concerns raised is provided. It is also unknown whether responses were provided to community members regarding concerns raised (if any),

Appoint stakeholder engagement practitioners who are independent of PPC Barnet to conduct the stakeholder engagement and to review and update and stakeholder database.

Commission the development of a SEP and grievance mechanism to disclose to communities along with the updated ESIA. A non-technical summary of the updated ESIA should be provided in appropriate language (such as Lingala as well as French) to ensure accessibility of text. A register of stakeholder issues and comments should be kept. Appropriate engagement should take place to as to encourage the participation of vulnerable and disadvantaged stakeholders. Maintain the engagement process and grievance mechanism on an ongoing process for the lifetime of the project.

Informed consultation and participation (ICP)

31 Conduct an Informed Consultation and Participation (ICP) process for projects that may have significant adverse impacts. ICP involves a more in-depth exchange of views and information, and an organized and iterative consultation, leading to the incorporation of Affected Communities views into the project decision-making process. The ICP process should:

 capture both men’s and women’s views, separately if necessary;

 reflect men’s and women’s differing concerns and priorities about impacts, mitigation mechanisms, and benefits;

 be documented, particularly measures taken to avoid or minimise risks and impacts;  inform those affected how their concerns have been considered.

Stakeholder engagement for the project has not taken place in a structured way to date, so as to ensure that both men and women can provide comment on an equal basis. Stakeholders will further need to be informed of how their concerns have been considered which has not taken place so far on the project.

An ICP process should form part of a detailed socioeconomic survey of the study area, to form part of the updating of the ESIA.

Structured stakeholder engagement should take place to ensure that both men and women’s views on the project are captures.

The stakeholder engagement process must provide feedback to communities on how their concerns have been addressed.

Indigenous peoples 32 Conduct an ICP process for projects that may have adverse impacts to Indigenous Peoples. In certain circumstances the client may be required to obtain their free, prior and informed consent (FPIC) (refer PS 7).

Not applicable as far as has been determined. Not applicable as far as has been determined.

Private sector responsibilities under government-led stakeholder

33 When stakeholder engagement is the responsibility of the host Government:  collaborate with the responsible agencies (to the extent permitted) to achieve

outcomes consistent with the objectives of this PS. 

PS heading Para. Ref.

Detail Review comment Recommendation

 conduct a complementary process when the Government-led process does not meet the relevant requirements of this PS.

External

communications

34 Implement and maintain a procedure for external communication including methods to:  receive and register communications from the public;

 screen and assess issue raised and how to address them;  provide, track and document responses;

 adjust the management program.

Make public periodic reports on E&S sustainability.

A process for tracking and addressing stakeholder concerns has not yet been established , and should be put in place prior to commencement of construction.

Prior to commencement of construction, develop a SEP. This should incorporate the holding of regular minuted meetings with communities and regular reporting both to communities, as well as to PPC Barnet structures.

A clear protocol for when and how reports are made available to the public should be developed. Set up a system that is able to track and document responses to issues raised by communities, and that actions plans are appropriately updated in response to issues raised.

Grievance mechanisms 35 Establish a grievance mechanism to receive and facilitate resolution of Affected Communities concerns about the project’s environmental and social performance. Concerns will be addressed promptly, using an understandable and transparent consultative process that is culturally appropriate and readily accessible at no cost and without retribution. It will not impede access to judicial or administrative remedies. Communities will be informed about the mechanism as part of the stakeholder engagement process.

A grievance mechanism has not yet been developed for the project.

A grievance mechanism should be developed aligned to PS1, with roles and responsibilities within PPC Barnet for addressing complaints. This should incorporate the procedure for recording and addressing complaints, to include a hardcopy register with electronic backup. The register should record when complaints were addressed and closed out. Communities should be informed about the grievance procedure. Ongoing reporting to

Affected Communities

36 Provide periodic reports (not less than annually) to Affected Communities that describe progress with implementation of project Action Plans on issues of ongoing risk or impact on Communities and on issues that are of concern to Affected Communities.

Communicate material changes or additions to mitigation measures or actions described in the Action Plans to Affected Communities not less than annually.

Since the project has not yet been implemented, regular reporting to communities on ongoing risk or impacts has not yet

commenced.

Prior to commencement of construction, develop a SEP. This should incorporate the holding of regular minuted meetings with communities and regular reporting both to communities, as well as to PPC Barnet structures.

A clear protocol for when and how reports are made available to the public should be developed. Set up a system that is able to track and document responses to issues raised by communities, and that actions plans are appropriately updated in response to issues raised.

2

PS2

: Labour and working conditions

 Promote the fair treatment, non-discrimination, and equal opportunity of workers;  Establish, maintain, and improve the worker-management relationship;

 Promote compliance with national employment and labour laws;

 Protect workers, including vulnerable categories of workers such as children, migrant workers, workers engaged by third parties, and workers in the client’s supply chain;  Promote safe and healthy working conditions, and the health of workers;

 Avoid the use of forced labour.

Working Conditions and Management of Worker Relationship Human resources

policies and procedures

8 Adopt and implement appropriate human resource policies and procedures that set out the approach to managing workers in line with national law and PS2.

No Labour and Human Resources policies and procedures have yet been incorporated into the ESMS for the project in line with DRC legislation and IFC requirements, as well as relevant organisations such as the International Labour Organisation (ILO).

Since the project has not yet commenced implementation, there is not as yet a systematic system of recruitment.

Prior to construction develop a Labour and Human Resources Plan which sets out policies and procedures for the employment of workers in line with national law and PS2.

9 Provide workers with clear and understandable, documented information regarding their rights under national labour and employment law and any applicable collective

agreements including rights related to: hours of work, wages, overtime, compensation, benefits upon beginning the working relationship, and when any material changes occur.

No Labour and Human Resources policies and procedures have yet been incorporated into the ESMS for the project in line with DRC legislation and IFC requirements, as well as relevant organisations such as the International Labour Organisation (ILO).

Prior to construction develop a Labour and Human Resources Plan which sets out policies and procedures for the employment of workers in line with national law and PS2.

Working conditions and terms of employment

10 Respect collective bargaining agreements with workers’ organisations.

Provide reasonable working conditions and terms of employment where collective bargaining agreements do not exist, or do no address working conditions and terms of employment.

The Labour and Human Resources Plan must clearly set out respect of collective bargaining with workers’ organisations.

11 Ensure migrant workers are identified and engaged on substantially equivalent terms and No clear description is provided on the estimated number of workers per project phase, nor has information been provided on

Prior to construction develop a Labour and Human Resources Plan which sets out policies and procedures for the employment of workers in

13

PS2 is guided by a number of international conventions and instruments, including those of the International Labour Organization and the United Nations.

14 _{PS2 applies to workers directly engaged by the client (direct workers), workers engaged through third parties to perform work related to core business processes 3 of the project for a substantial duration (contracted workers), as well as workers engaged by the client’s primary suppliers (supply chain} workers).