chapter 11fred.csir.co.za/project/cip_eia/pages/ess_ch11.pdf · impact assessment on the...
Post on 22-Jul-2018
215 Views
Preview:
TRANSCRIPT
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
CONTENTS 11. IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC
ENVIRONMENT_____________________________________ 11-1 11.1 Approach to the Socio-economic study ______________________11-1
11.1.1 Terms of Reference ___________________________________________11-1 11.1.2 Information sources ___________________________________________11-1 11.1.3 Specific assumptions and limitations ______________________________11-2
11.2 Description of key socio-economic elements of the project______11-2 11.3 Description of the local socio-economic environment __________11-3
11.3.1 Existing development initiatives __________________________________11-3 11.4 Identification of applicable policies, legislation, guidelines or standards______________________________________________________11-5
11.4.1 Implications for the Coega Integrated Power Project __________________11-6 11.5 Description of socio-economic issues _______________________11-7 11.6 Scenarios to be considered in the Socio-economic study ______11-11 11.7 Project alternatives ______________________________________11-11 11.8 Impact assessment ______________________________________11-11
11.8.1 Construction phase___________________________________________11-11 11.8.2 Operations phase ____________________________________________11-12 11.8.3 Decommissioning phase_______________________________________11-13
11.9 Specification of environmental thresholds___________________11-17 11.10 Recommendations for project planning and design ___________11-17 11.11 Recommendations for baseline monitoring __________________11-17
TABLES Table 11.1: Direct employment opportunities created for local and foreign employees during
the construction and operations phase of the CIPP .......................................11-2 Table 11.2: Construction phase socio-economic issues .....................................................11-8 Table 11.3: Operations phase socio-economic issues........................................................11-9 Table 11.4: Decommissioning phase socio-economic issues ...........................................11-10 Table 11.5: Construction phase socio-economic impacts .................................................11-14 Table 11.6: Operations phase socio-economic impacts....................................................11-15 Table 11.7: Decommissioning phase socio-economic impacts.........................................11-16
Coega Integrated Power Project: Environmental Screening Study Final Report, February 2004 - Confidential
page i
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
11. IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
11.1 Approach to the Socio-economic study This chapter covers the socio-economic impacts associated directly and indirectly with the Coega Integrated Power Project (CIPP). It is based on a synthesis of information from the Aluminium Pechiney EIA specialist study on socio-economic impacts (van der Walt, et al,, 2002). 11.1.1 Terms of Reference The assessment of impacts associated with the project included the following:
Identification of the key socio-economic components of the CIPP
Overview of the socio-economic characteristics of the environment in which the CIPP would be constructed and operated
Identification of policies, legislation, guidelines or standards that are applicable to the management of socio-economic aspects of the project
Description of socio-economic issues associated with the project
Identification of alternatives considered by the project proponents (where relevant)
Assessment of socio-economic impacts associated with the project
Recommendations for project planning and design, baseline monitoring and further studies.
11.1.2 Information sources Information on employment numbers for construction and operations was obtained from the “Economic Impact Assessment of the proposed Coega Integrated Project: Macro-economic and regional impact assessment of scenario S3a(2)” completed by Global Insight Southern Africa (Pty) Ltd in October 2003 (Global Insight, 2003). Information on the socio-economic environment and issues related to the development of projects within the Coega IDZ were sourced from the socio-economic specialist study undertaken by ACER (Africa) for the Environmental Impact Assessment (EIA) for the Aluminium Pechiney smelter in 2002 (van der Walt et al., 2002; CSIR, 2002).
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-1
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
11.1.3 Specific assumptions and limitations For the purposes of this Environmental Screening Study it was assumed that the local socio-economic impacts would be similar to those predicted for the construction and operation of an aluminium smelter within the Coega IDZ. Based on previous communications with NPA it is assumed that the CDC’s policies and systems for recruitment, employment, skills development and housing of construction workers will continue to apply to NPA and tenants within the Port of Ngqura. It is assumed that the employment figures provided within the Global Insight report define “local” as being South African employees. For the purposes of recruitment, the CDC defines “local” as the NMMM for unskilled and semi-skilled jobs, and the rest of the Eastern Cape for higher skills. To accurately evaluate projects based on their comparative “local content” it is important that a single definition of “local” is applied. It is suggested that for further socio-economic and macro-economic studies undertaken for this project, that employment figures are reported in terms of the CDC’s definition as well as their skills categories. Employment figures reported in the Global Insight report are assumed to be maximums, i.e. peak employment during construction. 11.2 Description of key socio-economic elements of the project The direct employment opportunities created by the project are summarized in Table 11.1.
Table 11.1: Direct employment opportunities created for local and foreign employees during the construction and operations phase of the CIPP
Number of South Africans employed
Number of foreigners employed
Total number of jobs created
Construction phase 2556 77 2633
Operations phase 129 3 132 During construction, workers originating from outside of the NMMM will be accommodated in the construction villages which have been established by the CDC and NPA. It is expected that the project will provide a number of opportunities for sub-contracting services to small, medium and micro-enterprises (SMMEs) and to black economic empowerment (BEE) entities.
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-2
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
11.3 Description of the local socio-economic environment As described in the Global Insight Southern Africa report, the Nelson Mandela Metropolitan Municipality (NMMM) had a population of approximately 1 million inhabitants in 2002. A significant percentage of this population is living in poverty (39%) and unemployment levels in the NMMM are high. Despite these realities, even higher levels of poverty and unemployment in the wider Eastern Cape province is contributing to the in-migration of job-seekers to the NMMM, and in particular, to areas in close proximity to the IDZ. An initial assessment for the proposed Port of Ngqura suggested that the population of Motherwell may be growing at a rate of 4.5% a year (CES, 2001). This trend may be expected to increase as the development of the port and the Coega IDZ progresses. The influx of people from surrounding areas is exacerbating the shortage of housing and other services such as schools and hospitals within the NMMM. Interviews conducted by the socio-economic specialist for the EIA of the proposed Aluminium Pechiney smelter in 2002 established that housing schemes are, however, being developed to the north of Motherwell to provide for people residing in informal settlements around areas such as KwaZakhele and Zwide. The NMMM plans to construct approximately 25 000 houses in the area within the next five years (Mentz, M and Africa, D. City Engineer’s Administrative Unit, NMMM, 2002. pers comm., 29 May 2002. In order to reverse the above trends and stimulate and support socio-economic development, a number of initiatives are currently underway in the NMMM and surrounding areas. Key amongst these are the establishment of the Coega IDZ and the development of the Port of Ngqura, support services for the development of small-, medium- and micro-enterprises (SMMEs) and corporate social investment programmes. In addition, the expansion of the Addo Elephant National Park and the growth of the ecotourism sector in the Eastern Cape is being promoted for its conservation value as well as for the contribution that tourism and conservation initiatives can make to employment creation. These initiatives are described in Section 11.3.1 below. 11.3.1 Existing development initiatives Coega Industrial Development Zone and Port of Ngqura In order to redress the inequities of the apartheid-era economic system and stimulate economic growth and development, South Africa’s macroeconomic policy is currently based on the Growth, Employment and Redistribution (GEAR) strategy. Within this strategy a strong emphasis is placed on sectoral and regional industrial and infrastructure development through spatial development initiatives (SDIs) and industrial development zones (IDZs). The NMMM is included in the Fish River SDI, which is one of three SDIs in the Eastern Cape.
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-3
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
The vision behind the SDIs is the unlocking of economic potential in specific underdeveloped areas of South Africa. The Coega IDZ is the first IDZ to be established in South Africa, and forms part of the South African government’s vision for the country to become one of the world’s key manufacturing centres. Through the provision of serviced land and world-class infrastructure, the Coega Development Corporation (the operators of the Coega IDZ) aims to attract investors to the IDZ. The current large-scale construction of infrastructure associated with the development of the IDZ and the Port of Ngqura is, amongst others, providing short-term employment opportunities for unskilled and semi-skilled workers, as well as for SMMEs and black economic empowerment (BEE) initiatives. SMME development Currently there is a strong focus on empowerment and the development of small, medium and micro enterprises (SMMEs) within the NMMM. The Port Elizabeth Chamber of Commerce and Industry (PERCCI) and other business chambers play a significant role in such enterprises. A number of organisations and institutions are currently in existence, some of which are purely tasked with SMME development and empowerment. These include the Port Elizabeth Regional Manufacturing Advisory Centre (PERMAC), the Commercial Self Employment Centre (COMSEC) and the Black Economic Empowerment Forum (BEEF). Corporate Social Investment Programmes The commercial sector of the NMMM, ranging from small businesses to large multi-nationals, has become increasingly involved with projects in surrounding communities. Over the past few years the local community has benefited tremendously from these Corporate Social Investment (CSI) projects, which include: housing, land and education and skill development initiatives; entrepreneurship programmes and business mentorships; and programmes that support the provision and maintenance of infrastructure such as children’s homes. Tourism A number of tourism related developments are currently underway within the NMMM, or in the close proximity to the Coega IDZ. South African National Parks (SANParks) is currently in the process of substantially expanding the Addo Elephant National Park from the existing approximately 125 000 ha to around 372 000 ha (there is further potential to expand it ultimately to around 400 000 ha). The Park draws approximately 115 000 tourists annually, of which an estimated 50% are foreign. Part of the expansion project is to relocate the main entrance gate from near the town of Addo, to Colchester thereby easing tourist access from the N2 national road.
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-4
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
11.4 Identification of applicable policies, legislation, guidelines or standards This section focuses on the policies, agreements and mechanisms which the CDC has established to guide tenants in the implementation of employment and equity principles such as maximizing the use of local labour, provision of equitable employment opportunities, supporting SMME and BEE development and skills training. The CDC has established a Labour and Business Management Service (LBMS) as part of their ”one-stop-shop” service provided to potential IDZ and Port of Ngqura tenants. This is based upon the:
IDZ Industrial Relations Policy;
IDZ Labour Agreement; and
Project Labour Agreements.
Industrial relations policy and guidelines are being developed by the CDC in consultation with stakeholders for the IDZ. The objective is to provide guidance for all prospective tenants within the IDZ, in order to promote a common understanding of industrial relations, eliminate duplication, and ensure consistency in the application of labour management issues. The guidelines will provide principles to guide labour matters on all contracts with prospective tenants, including recruitment target areas and priorities. The IDZ Industrial Relations Policy is contractually binding upon all contractors and served as a basis for the development of the Zone Labour Agreement (ZLA) and subsequent Project Labour Agreements (PLA). The Zone Labour Agreement has been completed and signed by the relevant parties (including the CDC, NPA and Labour). The Zone Labour Agreement includes:
Zone wide employment standards governing employment conditions and benefits.
Fixed job titles and job descriptions per industry.
Standardised job categories based on unit standards and outcomes.
Standardised Contracts of Employment.
A no-poaching clause.
A standard disciplinary and grievance procedure.
The Project Labour Agreement may be developed and negotiated between the appointed construction manager and the respective industry employer associations and trade unions, to deal with specific issues that are not covered in the ZLA. The PLA then becomes an addendum to the ZLA and will be contractually binding on all contractors working on a specific project.
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-5
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
The objective of the LBMS is to ensure the optimum use of available local resources (which includes labour, goods and services) and to facilitate buy-in and support from local stakeholders. The emphasis is, therefore, strongly on the use of local labour and on providing a fair and equitable opportunity for all individuals currently employed in the region (NMMM) to be involved in the development of the Coega IDZ through training, assessment and employment by contractors. For the purposes of recruitment, the CDC defines “local” as the NMMM for unskilled and semi skilled jobs, and the rest of Eastern Cape for higher skills. Based on communications with the CDC during the Aluminium Pechiney EIA, recruitment from further afield will only be considered if skills are not available locally and/or training programmes are unable to provide the necessary skills timeously, (Fourie, J. CDC, 2002. pers comm.., 18 June 2002). The specific percentage targets for gender, age and disability will be set through a Labour Consultative Forum. The Labour and Business Management Services have two components:
Labour Management Services
This includes labour supply and labour demand management, training management and industrial relations management. The CDC has invited potential job-seekers to register their interest in employment opportunities within the IDZ.
Business Management Services
This includes procurement management and Small, Medium and Micro Enterprise (SMME) development management. Procurement management aims to facilitate, optimise and manage the participation of local enterprises in goods, services and works contracts. SMME development management aims to create an enabling environment, that will facilitate optimum and equal access to business opportunities for SMMEs, and supporting such access with training and development programmes.
11.4.1 Implications for the Coega Integrated Power Project The CIPP will be required to make use of the Labour Management Service for recruitment purposes. No recruitment will be allowed on-site or near site, only at recruitment centres set up by the CDC. Of the nine skill levels identified, use of local labour for the first two levels is compulsory. The IDZ Industrial Relations policy is contractually binding and is the basis for the ZLA. All developers will have to adhere to the Industrial Relations policy and ZLA and implement it in their own industrial relations and human resources activities.
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-6
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
It is not compulsory for contractors to make use of the Business Management Service for procurement and SMME involvement. However, it will be to any developer’s benefit at least, to investigate the merits of the system based on individual requirements. 11.5 Description of socio-economic issues The proposed CIPP would result in both positive and negative impacts over the lifespan of the project. Positive impacts during both construction and operation include employment creation, increasing opportunities for the employment of local labour, economic development, opportunities for SMMEs and BEE groups, training and skill development opportunities, development through a Corporate Social Investment programme, increased investor confidence and greater stability in the power supply to the Eastern Cape. Negative impacts include potential for transport operator conflicts, induced migration, increased pressure on infrastructure and services, potential health impacts, and the potential increase in the spread of HIV/AIDS. The key socio-economic issue associated with decommissioning is the retrenchment of employees. These issues are summarized in Tables 11.2 to 11.4.
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-7
IMP
AC
T A
SSE
SSM
EN
T O
N T
HE
SO
CIO
-EC
ON
OM
IC E
NV
IRO
NM
EN
T
CH
AP
TE
R 1
1 Ta
ble
11.2
: Con
stru
ctio
n ph
ase
soci
o-ec
onom
ic is
sues
Issu
e/co
ncer
n id
entif
ied
Pote
ntia
l sou
rce
of im
pact
Po
tent
ial i
mpa
ct
Situ
atio
n un
der w
hich
neg
ativ
e im
pact
occ
urs o
r ben
efits
will
not
m
ater
ialis
e W
ill th
e pr
ojec
t sup
port
loca
l em
ploy
men
t cre
atio
n?
E
mpl
oym
ent d
urin
g co
nstru
ctio
n S
hort-
term
job
crea
tion
for l
ocal
la
bour
and
tem
pora
ry s
ourc
e of
in
com
e.
Em
ploy
men
t of
non
-loca
l la
bour
w
ill re
duce
opp
ortu
nitie
s fo
r loc
al
labo
ur.
Will
the
proj
ect s
uppo
rt tra
inin
g an
d sk
ills d
evel
opm
ent o
f the
wor
kfor
ce?
E
stab
lishm
ent o
f tra
inin
g an
d sk
ills d
evel
opm
ent p
rogr
amm
es
for e
mpl
oyee
s.
Ski
lls d
evel
opm
ent o
f wor
kfor
ce,
pote
ntia
lly re
sulti
ng in
gre
ater
op
portu
nitie
s fo
r re-
empl
oym
ent a
t th
e en
d of
con
stru
ctio
n.
Con
stru
ctio
n sc
hedu
les
are
pres
suris
ed a
nd in
suffi
cien
t tim
e is
allo
cate
d to
trai
ning
and
ski
lls
deve
lopm
ent.
Will
the
proj
ect p
rovi
de o
ppor
tuni
ties
for S
MM
Es
and
BE
E g
roup
s?
S
ub-c
ontra
ctin
g S
MM
Es
and
BE
E g
roup
s to
sup
ply
good
s an
d se
rvic
es d
urin
g co
nstru
ctio
n
SM
ME
and
BE
E d
evel
opm
ent a
nd
grea
ter d
istri
butio
n of
con
stru
ctio
n ph
ase
expe
nditu
re.
No
suita
ble
SMM
Es
or B
EE
grou
ps a
re id
entif
ied
to te
nder
fo
r out
sour
ced
activ
ities
or
cont
ract
s ar
e no
t aw
arde
d to
S
MM
Es
or B
EE
gro
ups.
W
ill th
e pr
ojec
t inc
reas
e in
vest
or
conf
iden
ce in
the
Coe
ga ID
Z?
C
onst
ruct
ion
of th
e C
IPP
with
in
the
Coe
ga ID
Z/P
ort o
f Ngq
ura.
Fu
rther
inve
stm
ent i
n th
e C
oega
ID
Z, p
oten
tially
lead
ing
to g
reat
er
job
crea
tion
and
econ
omic
gro
wth
.
Stre
ngth
enin
g R
and
or p
oliti
cal
inst
abilit
y re
duce
s th
e in
cent
ive
for i
nter
natio
nal c
ompa
nies
to
inve
st in
Sou
th A
frica
. W
ill th
e pr
ojec
t lea
d to
furth
er in
-m
igra
tion
of jo
b-se
eker
s to
the
NM
MM
?
P
erce
ived
dire
ct a
nd in
dire
ct
empl
oym
ent o
ppor
tuni
ties
durin
g co
nstru
ctio
n fo
r uns
kille
d w
orke
rs.
In-m
igra
tion
of jo
b-se
eker
s fro
m
surr
ound
ing
area
s, w
hich
pla
ces
incr
ease
d pr
essu
re o
n so
cial
in
frast
ruct
ure
and
serv
ices
and
in
crea
ses
conf
lict o
ver l
imite
d em
ploy
men
t opp
ortu
nitie
s.
Exp
ecta
tions
and
co
mm
unic
atio
ns a
re n
ot
man
aged
and
infla
ted
job
oppo
rtuni
ties
are
publ
iciz
ed. N
o ad
ditio
nal g
over
nmen
t spe
ndin
g is
allo
cate
d to
pro
vide
bas
ic
infra
stru
ctur
e an
d se
rvic
es.
Will
the
influ
x of
con
stru
ctio
n w
orke
rs
and
job-
seek
ers
incr
ease
the
spre
ad
of H
IV/A
IDS
?
U
npro
tect
ed s
ex b
etw
een
cons
truct
ion
wor
kers
or m
igra
nt
job-
seek
ers
and
mem
bers
of
the
loca
l com
mun
ity.
Incr
ease
d sp
read
of H
IV/A
IDs
amon
gst t
he lo
cal p
opul
atio
n, th
e co
nstru
ctio
n w
orke
rs a
nd jo
b-se
eker
s, th
eir f
amili
es a
nd th
eir
hom
e co
mm
uniti
es.
Con
stru
ctio
n w
orke
rs re
mai
n un
awar
e of
the
risk
of H
IV/A
IDS
an
d/or
unw
illin
g to
cha
nge
sexu
al b
ehav
iour
.
C
oega
Int
egra
ted
Pow
er P
roje
ct: E
nvir
onm
enta
l Scr
eeni
ng S
tudy
Fi
nal R
epor
t, F
ebru
ary
2004
- C
onfi
dent
ial
page
11-
8
IMP
AC
T A
SSE
SSM
EN
T O
N T
HE
SO
CIO
-EC
ON
OM
IC E
NV
IRO
NM
EN
T
CH
AP
TE
R 1
1
Tabl
e 11
.3: O
pera
tions
pha
se so
cio-
econ
omic
issu
es
Issu
e/co
ncer
n id
entif
ied
Pote
ntia
l sou
rce
of im
pact
Po
tent
ial i
mpa
ct
Situ
atio
n un
der w
hich
neg
ativ
e im
pact
occ
urs o
r ben
efits
will
not
m
ater
ialis
e W
ill th
e pr
ojec
t sup
port
loca
l em
ploy
men
t cre
atio
n?
E
mpl
oym
ent d
urin
g op
erat
ions
. Lo
ng-te
rm e
mpl
oym
ent
oppo
rtuni
ties
for a
sm
all n
umbe
r of
loca
ls.
Em
ploy
men
t of n
on-lo
cal l
abou
r w
ill re
duce
opp
ortu
nitie
s fo
r loc
al
labo
ur.
Will
the
proj
ect s
uppo
rt tra
inin
g an
d sk
ills d
evel
opm
ent o
f the
wor
kfor
ce?
E
stab
lishm
ent o
f tra
inin
g an
d sk
ills d
evel
opm
ent p
rogr
amm
es
for e
mpl
oyee
s.
Ski
lls d
evel
opm
ent o
f wor
kfor
ce,
pote
ntia
lly re
sulti
ng in
gre
ater
op
portu
nitie
s fo
r re-
empl
oym
ent.
Ski
lls d
evel
opm
ent a
nd tr
aini
ng
prog
ram
mes
are
not
im
plem
ente
d.
Will
the
proj
ect p
rovi
de o
ppor
tuni
ties
for S
MM
Es
and
BE
E g
roup
s?
S
ub-c
ontra
ctin
g S
MM
Es
and
BE
E g
roup
s to
sup
ply
good
s an
d se
rvic
es d
urin
g op
erat
ions
.
SM
ME
and
BE
E d
evel
opm
ent
and
grea
ter d
istri
butio
n of
op
erat
ions
pha
se e
xpen
ditu
re
No
suita
ble
SMM
Es
or B
EE
grou
ps a
re id
entif
ied
to te
nder
for
outs
ourc
ed a
ctiv
ities
or c
ontra
cts
are
not a
war
ded
to S
MM
Es
or
BE
E g
roup
s.
Will
the
proj
ect i
ncre
ase
inve
stor
co
nfid
ence
in th
e C
oega
IDZ?
Ope
ratio
n of
the
CIP
P w
ithin
the
Coe
ga ID
Z/Po
rt of
Ngq
ura
and
the
avai
labi
lity
of g
as fo
r in
dust
rial p
roce
sses
.
Furth
er in
vest
men
t in
the
Coe
ga
IDZ,
pot
entia
lly le
adin
g to
gre
ater
jo
b cr
eatio
n an
d ec
onom
ic
grow
th.
Stre
ngth
enin
g R
and
or p
oliti
cal
inst
abilit
y re
duce
s th
e in
cent
ive
for i
nter
natio
nal c
ompa
nies
to
inve
st in
Sou
th A
frica
. W
ill th
e pr
ojec
t lea
d to
furth
er in
-m
igra
tion
of jo
b-se
eker
s to
the
NM
MM
?
U
nrea
listic
exp
ecta
tions
of
empl
oym
ent o
ppor
tuni
ties
for
unsk
illed
wor
kers
dur
ing
oper
atio
ns p
hase
.
In-m
igra
tion
of jo
b-se
eker
s fro
m
surr
ound
ing
area
s, w
hich
pla
ces
incr
ease
d pr
essu
re o
n so
cial
in
frast
ruct
ure
and
serv
ices
and
in
crea
ses
conf
lict o
ver l
imite
d em
ploy
men
t opp
ortu
nitie
s.
Exp
ecta
tions
and
co
mm
unic
atio
ns a
re n
ot
man
aged
and
infla
ted
job
oppo
rtuni
ties
are
publ
iciz
ed. N
o ad
ditio
nal g
over
nmen
t spe
ndin
g is
allo
cate
d to
pro
vide
bas
ic
infra
stru
ctur
e an
d se
rvic
es.
Will
the
oper
atio
n of
the
CIP
P
incr
ease
the
stab
ility
of p
ower
sup
ply
in th
e E
aste
rn C
ape?
P
ower
gen
erat
ion
by th
e C
IPP
pr
ojec
t in
the
Eas
tern
Cap
e.
Low
er ri
sk o
f pow
er fa
ilure
in th
e E
aste
rn C
ape.
C
IPP
pow
er g
ener
atio
n op
tion
not d
evel
oped
.
C
oega
Int
egra
ted
Pow
er P
roje
ct: E
nvir
onm
enta
l Scr
eeni
ng S
tudy
Fi
nal R
epor
t, F
ebru
ary
2004
- C
onfi
dent
ial
page
11-
9
IMP
AC
T A
SSE
SSM
EN
T O
N T
HE
SO
CIO
-EC
ON
OM
IC E
NV
IRO
NM
EN
T
CH
AP
TE
R 1
1
Tabl
e 11
.4: D
ecom
mis
sion
ing
phas
e so
cio-
econ
omic
issu
es
Issu
e/co
ncer
n id
entif
ied
Pote
ntia
l sou
rce
of im
pact
Po
tent
ial i
mpa
ct
Situ
atio
n un
der w
hich
neg
ativ
e im
pact
occ
urs o
r ben
efits
will
not
m
ater
ialis
e W
ill d
ecom
mis
sion
ing
resu
lt in
the
retre
nchm
ent o
f em
ploy
ees?
Dec
omm
issi
onin
g or
clo
sure
of
the
faci
litie
s.
Em
ploy
ees
are
retre
nche
d an
d en
ter i
nto
unem
ploy
men
t. N
o fin
anci
al p
lann
ing
or p
rovi
sion
of
ski
lls d
evel
opm
ent p
rogr
amm
e ha
s be
en m
ade
to s
uppo
rt re
trenc
hed
wor
kers
.
C
oega
Int
egra
ted
Pow
er P
roje
ct: E
nvir
onm
enta
l Scr
eeni
ng S
tudy
Fi
nal R
epor
t, F
ebru
ary
2004
- C
onfi
dent
ial
page
11-
10
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
11.6 Scenarios to be considered in the Socio-economic study No alternative scenarios were considered. 11.7 Project alternatives No project alternatives were assessed. 11.8 Impact assessment Socio-economic impacts associated with the construction, operation and decommissioning of the CIPP are summarized in Tables 11.5 to 11.7 and discussed in the following section. 11.8.1 Construction phase During the three-four year construction phase, 2633 direct employment opportunities will be created during peak construction of which 2556 are expected to be local employment (refer to Table 11.1). The project will therefore support the short-term employment of unskilled and semi-skilled workers. The CDC’s Labour and Business Management Services aims to promote greater skills training and SMME development. The Labour Supply Services of the CDC are structured to supply personnel to contactors based on their individual needs. Should there be inadequate numbers of capable individuals on the LMS, it is expected that suitable individuals would be trained at local training institutions with funding from the Skills Development Levy Fund of the Department of Labour. Local training and skills development centers, organizations and institutions would be used for this purpose and may, therefore, also benefit through an increase in the number of enrolled trainees. The extent to which the project proponent adopts these principles, utilizes the CDC’s services and actively works to translate principles into practice will largely determine the magnitude of the positive impact and the success of these initiatives. The Coega IDZ is still in the process of securing its first anchor tenant. It can be expected that the provision of gas, as well as the increased stability of power supply in the Eastern Cape, resulting from the successful development of the CIPP would provide further incentive and confidence to foreign investors to locate their operations within the Coega IDZ. By requiring that job-seekers register on the CDC’s employment database, and with the emphasis on the use of local labour for unskilled or skilled jobs, very few construction workers from outside the NMMM are expected to be employed. In this way the CDC hopes to minimize the influx of opportunistic job-seekers from outside of the NMMM. However, in light
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-11
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
of the pressures driving people from the rural areas to urban areas, in-migration is unavoidable. It would be virtually impossible to determine the percentage of migrants coming into the NMMM due to the proposed CIPP alone. While the CIPP cannot be expected to assume sole responsibility for the in-migration, it cannot ignore partial responsibility. Potential impacts, which could be associated with the influx of people, are:
Increased demand for land and housing.
Increased demand for municipal services.
Health risks associated with inadequate sanitation facilities where informal settlement occurs.
Increased demands on health and community services.
Increased criminal activity associated with a swelling of the ranks of poor people in the area but also by criminal opportunists intent on exploiting the situation.
Conflict with current residents over economic and natural resources.
In order to minimize pressure on housing required during the construction period to accommodate semi-skilled and skilled personnel who cannot be sourced locally, the CDC has taken responsibility for the establishment of a construction village for IDZ developments at Joorst Park and Wells Estate. In terms of the rezoning of the IDZ, no residential area is to be allowed within the zone. Therefore, no developer will be allowed to construct and run their own on-site construction village and will be required to make use of the CDC construction village.
Construction activities are renowned for increasing the spread of diseases such as HIV/AIDS through the sexual behaviour of construction workers and other migrant job-seekers who are on temporary contracts away from their homes and families. The negative impact of the disease is experienced both in the local community as well as in the communities from which the construction worker or job-seeker originates.
11.8.2 Operations phase Operation of the CIPP would require approximately 132 full-time, permanent, long-term employment positions. About 129 of these positions would be occupied by South Africans. Although the operations phase provides fewer employment opportunities for the unskilled and semi-skilled workforce, the positive impact of employment creation at the local scale during operations remains important. Despite the smaller workforce during operations and the decreased number of opportunities for outsourcing the delivery of goods and services to SMMEs and BEEs, positive impacts in the form of greater distribution of wealth and skills development are expected. This is,
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-12
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
however, largely dependent on the development and implementation of appropriate and supportive procurement policies, mentorship and training programmes. As for the construction phase, the establishment of the CIPP within the Coega IDZ is expected to serve as an additional incentive to attract additional foreign investors who require gas for their industrial processes and are looking for a secure power supply. Despite the small number of jobs created by the project during the operations phase, in-migration to the area is still expected by job-seekers hoping to secure some form of employment on projects within the Coega IDZ or Port of Ngqura. The magnitude of this influx of job-seekers and it’s potential negative impact on available infrastructure and services is difficult, if not impossible, to predict. The current power supply system to the Eastern Cape is reaching maximum capacity and will require the establishment of additional infrastructure to increase the security of supply in the near future. The development of the Coega IDZ and the potential for high-energy users to locate within the IDZ will place increasing pressure on the existing transmission line system. Local power generation in the form of the gas fired power plant therefore provides an opportunity to meet this shortfall, as well as to potentially reduce the immediate requirement for additional transmission lines through the important tourist routes in the near future. 11.8.3 Decommissioning phase Decommissioning of the LNG terminal and/or the CCGT power plant will result in the retrenchment of employees, as well as the termination of services provided by sub-contractors. If these individuals are unable to find alternative employment, they will increase the unemployment numbers in the NMMM.
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-13
IMP
AC
T A
SSE
SSM
EN
T O
N T
HE
SO
CIO
-EC
ON
OM
IC E
NV
IRO
NM
EN
T
CH
AP
TE
R 1
1 Ta
ble
11.5
: Con
stru
ctio
n ph
ase
soci
o-ec
onom
ic im
pact
s
C
oega
Int
egra
ted
Pow
er P
roje
ct: E
nvir
onm
enta
l Scr
eeni
ng S
tudy
Fi
nal R
epor
t, F
ebru
ary
2004
- C
onfi
dent
ial
page
11-
14
Pote
ntia
l im
pact
St
atus
Si
gnifi
canc
e D
egre
e of
con
fiden
ce
Pote
ntia
l fat
al fl
aw
Sho
rt-te
rm jo
b cr
eatio
n fo
r loc
al la
bour
an
d te
mpo
rary
sou
rce
of in
com
e.
Pos
itive
H
igh,
255
6 lo
cal
empl
oym
ent o
ppor
tuni
ties
will
be c
reat
ed fo
r a s
hort
perio
d of
tim
e du
ring
peak
co
nstru
ctio
n.
Hig
h, a
s th
ere
is a
def
inite
re
quire
men
t for
con
stru
ctio
n w
orke
rs a
nd th
e C
DC
’s jo
b-se
eker
s re
gist
er e
nsur
es
pref
eren
tial e
mpl
oym
ent o
f loc
al
labo
ur.
No,
this
is a
pos
itive
impa
ct.
Ski
lls d
evel
opm
ent o
f wor
kfor
ce,
pote
ntia
lly re
sulti
ng in
gre
ater
op
portu
nitie
s fo
r re-
empl
oym
ent.
Posi
tive
Hig
h, a
s sk
ill de
velo
pmen
t is
a c
ritic
al c
ompo
nent
of
soci
o-ec
onom
ic
deve
lopm
ent.
Low
, as
fu
rther
in
form
atio
n is
re
quire
d on
the
CD
C’s
and
EP
C’s
sk
ills
deve
lopm
ent
and
train
ing
prog
ram
mes
.
No,
this
is a
pos
itive
impa
ct.
SM
ME
and
BE
E d
evel
opm
ent a
nd
grea
ter d
istri
butio
n of
con
stru
ctio
n ph
ase
expe
nditu
re.
Posi
tive
Hig
h, a
s th
e pr
ojec
t is
expe
cted
to p
rovi
de
oppo
rtuni
ties
for s
ub-
cont
ract
ing
serv
ices
to
SM
ME
s an
d B
EE
s.
Low
, as
fu
rther
in
form
atio
n is
re
quire
on
th
e ty
pe
of
oppo
rtuni
ties
avai
labl
e to
SM
ME
s an
d B
EE
ent
ities
.
No,
this
is a
pos
itive
impa
ct.
Furth
er in
vest
men
t in
the
Coe
ga ID
Z,
pote
ntia
lly le
adin
g to
gre
ater
job
crea
tion
and
econ
omic
gro
wth
.
Posi
tive
Hig
h, a
s th
e ec
onom
ic
viab
ility
and
succ
ess
of th
e ID
Z an
d th
e P
ort o
f Ngq
ura
hing
es o
n in
vest
men
t by
key
anch
or te
nant
s.
Hig
h.
No,
this
is a
pos
itive
impa
ct.
In-m
igra
tion
of jo
b-se
eker
s fro
m
surr
ound
ing
area
s w
hich
pla
ces
incr
ease
d pr
essu
re o
n so
cial
in
frast
ruct
ure
and
serv
ices
and
in
crea
ses
conf
lict o
ver l
imite
d em
ploy
men
t opp
ortu
nitie
s.
Neg
ativ
e H
igh,
as
soci
al s
ervi
ces
and
infra
stru
ctur
e is
al
read
y in
suffi
cien
t to
mee
t cu
rren
t dem
ands
.
Hig
h,
as
in-m
igra
tion
will
defin
itely
re
sult
in
incr
ease
d pr
essu
re b
eing
pla
ced
on s
ocia
l se
rvic
es a
nd in
frast
ruct
ure.
No,
in
-mig
ratio
n is
ex
pect
ed
to
occu
r w
heth
er o
r no
t th
e pr
ojec
t pr
ocee
ds.
Incr
ease
d sp
read
of H
IV/A
IDs
amon
gst
the
loca
l pop
ulat
ion,
the
cons
truct
ion
wor
kers
, the
ir fa
mili
es a
nd th
eir h
ome
com
mun
ities
.
Neg
ativ
e H
igh,
as
the
spre
ad o
f H
IV/A
IDS
has
sig
nific
ant
soci
al, e
cono
mic
and
cu
ltura
l con
sequ
ence
s.
Hig
h, i
t is
gen
eral
ly u
ndis
pute
d th
at
HIV
/AID
S
is
a se
rious
co
ncer
n in
Sou
th A
frica
.
No,
thi
s im
pact
is a
ssoc
iate
d w
ith
any
cons
truct
ion
proj
ect.
IMP
AC
T A
SSE
SSM
EN
T O
N T
HE
SO
CIO
-EC
ON
OM
IC E
NV
IRO
NM
EN
T
CH
AP
TE
R 1
1 Ta
ble
11.6
: Ope
ratio
ns p
hase
soci
o-ec
onom
ic im
pact
s
Pote
ntia
l Im
pact
St
atus
Si
gnifi
canc
e D
egre
e of
con
fiden
ce
Pote
ntia
l fat
al fl
aw
Long
-term
em
ploy
men
t opp
ortu
nitie
s fo
r a s
mal
l num
ber o
f loc
als.
P
ositi
ve
Low
, per
man
ent
empl
oym
ent
oppo
rtuni
ties
asso
ciat
ed
with
the
proj
ect a
re
smal
l.
Hig
h, e
mpl
oym
ent n
umbe
rs
are
unlik
ely
to c
hang
e si
gnifi
cant
ly fr
om th
ose
incl
uded
in th
e G
loba
l Ins
ight
re
port.
No,
this
is a
pos
itive
impa
ct.
Ski
lls d
evel
opm
ent o
f wor
kfor
ce,
pote
ntia
lly re
sulti
ng in
gre
ater
op
portu
nitie
s fo
r re-
empl
oym
ent.
Posi
tive
Hig
h, a
s sk
ill de
velo
pmen
t is
a cr
itica
l co
mpo
nent
of s
ocio
-ec
onom
ic d
evel
opm
ent.
Low
, as
furth
er in
form
atio
n is
re
quire
d on
the
JPD
A’s
ski
lls
deve
lopm
ent a
nd tr
aini
ng
prog
ram
mes
.
No,
this
is a
pos
itive
impa
ct.
SM
ME
dev
elop
men
t and
gre
ater
di
strib
utio
n of
ope
ratio
ns p
hase
ex
pend
iture
Posi
tive
Med
ium
, as
the
proj
ect i
s ex
pect
ed to
pro
vide
fe
wer
opp
ortu
nitie
s fo
r su
b-co
ntra
ctin
g se
rvic
es
to S
MM
Es a
nd B
EEs
than
dur
ing
the
cons
truct
ion
phas
e.
Low
, as
furth
er in
form
atio
n is
re
quire
on
the
type
of
oppo
rtuni
ties
avai
labl
e to
S
MM
Es
and
BE
E e
ntiti
es.
No,
this
is a
pos
itive
impa
ct.
Furth
er in
vest
men
t in
the
Coe
ga ID
Z,
pote
ntia
lly le
adin
g to
gre
ater
job
crea
tion
and
econ
omic
gro
wth
.
Posi
tive
Hig
h, a
s th
e ec
onom
ic
viab
ility
and
succ
ess
of
the
IDZ
and
the
Por
t of
Ngq
ura
hing
es o
n in
vest
men
t by
key
anch
or te
nant
s.
Hig
h.
No,
this
is a
pos
itive
impa
ct.
In-m
igra
tion
of jo
b-se
eker
s fro
m
surr
ound
ing
area
s w
hich
pla
ces
incr
ease
d pr
essu
re o
n so
cial
in
frast
ruct
ure
and
serv
ices
and
in
crea
ses
conf
lict o
ver l
imite
d em
ploy
men
t opp
ortu
nitie
s.
Neg
ativ
e H
igh,
as
soci
al s
ervi
ces
and
infra
stru
ctur
e is
al
read
y in
suffi
cien
t to
mee
t cur
rent
dem
ands
.
Hig
h, a
s in
-mig
ratio
n w
ill
defin
itely
resu
lt in
incr
ease
d pr
essu
re b
eing
pla
ced
on
soci
al s
ervi
ces
and
infra
stru
ctur
e.
No,
in-
mig
ratio
n is
exp
ecte
d to
oc
cur w
heth
er o
r not
the
proj
ect
proc
eeds
.
Low
er ri
sk o
f pow
er fa
ilure
in th
e E
aste
rn C
ape.
Po
sitiv
e H
igh,
as
soci
o-ec
onom
ic
deve
lopm
ent i
n th
e E
aste
rn C
ape
hing
es o
n th
e su
pply
of e
lect
ricity
.
Hig
h, a
s it
is w
idel
y st
ated
that
cu
rren
t po
wer
sup
plie
s to
the
E
aste
rn C
ape
are
unst
able
.
No,
this
is a
pos
itive
impa
ct.
C
oega
Int
egra
ted
Pow
er P
roje
ct: E
nvir
onm
enta
l Scr
eeni
ng S
tudy
Fi
nal R
epor
t, F
ebru
ary
2004
- C
onfi
dent
ial
page
11-
15
IMP
AC
T A
SSE
SSM
EN
T O
N T
HE
SO
CIO
-EC
ON
OM
IC E
NV
IRO
NM
EN
T
CH
AP
TE
R 1
1
Tabl
e 11
.7: D
ecom
mis
sion
ing
phas
e so
cio-
econ
omic
impa
cts
Po
tent
ial I
mpa
ct
Stat
us
Sign
ifica
nce
Deg
ree
of c
onfid
ence
Po
tent
ial f
atal
flaw
E
mpl
oyee
s ar
e re
trenc
hed
and
ente
r in
to u
nem
ploy
men
t. N
egat
ive
Med
ium
, as
the
CIP
P
empl
oys
a re
lativ
ely
smal
l num
ber o
f em
ploy
ees
durin
g th
e op
erat
ions
pha
se.
Med
ium
, as
the
sign
ifica
nce
of
the
impa
ct
depe
nds
on
surr
ound
ing
soci
o-ec
onom
ic
circ
umst
ance
s at
the
tim
e of
de
com
mis
sion
ing.
No,
how
ever
, ear
ly p
lann
ing
for
man
agin
g de
com
mis
sion
ing
impa
cts
will
redu
ce th
e se
verit
y of
this
impa
ct.
C
oega
Int
egra
ted
Pow
er P
roje
ct: E
nvir
onm
enta
l Scr
eeni
ng S
tudy
Fi
nal R
epor
t, F
ebru
ary
2004
- C
onfi
dent
ial
page
11-
16
IMPACT ASSESSMENT ON THE SOCIO-ECONOMIC ENVIRONMENT
CHAPTER 11
11.9 Specification of environmental thresholds No environmental thresholds have been identified. 11.10 Recommendations for project planning and design
Maximise the use of local labour as far as possible through the use of the CDC’s Labour Management Services.
Ensure recruitment measures are aimed particularly at construction workers classified as designated employees in terms of the Employment Equity Act (black people, as defined in the Act, women and disabled people).
Consider employment opportunities and the needs of disabled people during the planning of construction and operational activities.
Ensure that contractors stipulate percentages of local labour to be employed, use of SMMEs and training provision in their contract (as stipulated in the Zone Labour Agreement and Project Labour Agreement).
Facilitate opportunities for SMMEs, where appropriate and applicable, through requiring the inclusion of SMME partners in the submission of bids for contract tenders.
Establish linkages with the CDC’s SMME Development Management to determine which areas of SMME expertise are in existence and which can be used during construction and operation.
Establish linkages with local institutions involved in the development and promotion of SMMEs such as COMSEC, PERMAC and BEEF in order to benefit from the experience gained through existing initiatives.
Make multi-skilling of construction workers an important priority as employment opportunities during construction are only temporary. This refers, not necessarily to providing the skills necessary for operational jobs on the CIPP, but also skills which can be applied in other industries in the Coega IDZ and the NMMM.
Actively downplay (through clear, simple and persistent communication) inflated expectations of employment opportunities. Also, communicate in the same manner that recruitment will only take place through the CDC’s Labour Management System, at designated recruitment centres and not on-site.
Establish an HIV/AIDS awareness programme for construction workers in conjunction with the CDC and NPA.
11.11 Recommendations for baseline monitoring No recommendations for baseline monitoring prior to the EIA have been identified.
Coega Integrated Power Project: Environmental Screening Study
Final Report, February 2004 - Confidential
page 11-17
top related