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Title: Document Title Unique Identifier: 36·366

PROCEDURE FOR THE INVOLUNTARY Document Type: GPC

REsemEMENT OF LEGAL AND IL.LEOAL OOOUPANTS ON OR FROM ESKOM PROCURED Functional Area: FINANCE LAND

Discipline: PROPERTIES

Revision: 1

Effective date: July 2009

Total pages: 12

this document has been seen and accepted by: Revision date: July 2011

Stefaan Cronje M Generation Finance Manager Classification PUBLIC Deldre Herbst-Generation Environmental Manager Jan Coetzee M Chief Advisor Properties KrUesh Bedessle • Chief Advisor Properties Susan Kotze - Chief Advisor Properties

ILEDBY FUNCTIONAL RESP.

.........~............. . en ratIon Properties Generation Finance Manag aneral Manager Generation

ger Inance Portfolio

Stefaan CronJe Name & Surname

Jan de Klerk Name & Surname

Martin Buys Name & Surname

Date' Date' Date'. REVISION DESCRIPTION OF REVISIONS APPROVAL DATE

Applfcabllily and ClasslllcaUon of Document MD(GO) October'09 I1

Directors: RM Godsell (ChalllTlan) PJ Maroge (Chief Executive) LCZ Cele SO Oube LG Josefsson (SwedIsh) HB Lee (Korean) WE Lucas-Bull PM Makwana J Mfrenge (Rwandan) JRO Modlse AJ MorganU Nene Company Secretary: TN Msoml Eskom Holdings Limited Reg No 20021015521106

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PROCEDURE FOR THE INVOlUNTARY RESeTILeMeNT OF Unique Identifier: 36·366L£QAi. AND IllEGAL OCCUPANTS ON OR FROM eSKOM PROCURED LAND

Page: 20f12 Revision: 1

Contents Page

Introduction

1 SOOpe .....................................................................................................................................3

1.1 Purpose .............. ,..........,....".........,.. ,' ................ t.'•• '''''''f.II'' i.~ ••,.,.t.••••••••••••• , ••••,. ,••• ~ ...JI.lf •• I •• ' •• ~., .. 3

1.2 Applicability ............................................................................................................................3

2 References.............................................................................................................................4

3 Deflnlllons and abbrevlallons.................................................................................................4

4 Procedure..... '.. f •••• ' •••a."ut' ••••••••• ,., ........... ,., ••• 'f•• I ••~ •• ~ ••• I •••l.f•• I •••••••••• tf •• f ••••,'I .... '., • ........... ,." •••••• ,.5 6 Records ..................................................................................................................................11

6 Annexes ..................................................................................................................................12

PUBLIC GeneraUon Group Document$/ ope Procedure Template Rev 2 July 2009

PROCEDURE FOR THE INVOLUNTARY RESETTLEMENT OF Unique Identifier; 36-356 LEGAL AND ILI.EGAl OCCUPANTS ON OR FROM ESKOM PROCURED LAND

Revision: 1 Page: 30112

Introduction

Involuntary resetllement under development projects, If unmitigated, often gives rise to severe economic, socIal, and environmental risks for unregistered right holders, legally or Illegally occupying land at the time the land Is procured by Eskom. To mitigate these risks the South African Government Introduced legislation that must be adhered to. Intemallonal Financiers for development projects also prescribe that developers adhere to the Equator Principles as based on the polletes and guidelines of the World Bank and International FInance Corporation, which principles are applicable to Involuntary resettfements before financing will be approved. This process ensures safeguards to address and mitigate these risks.

1 Scope

1.1 Purpose

To ensure that a sustainable resettlement plen be developed, contractually concluded and Implemented through a meaningfully consultative process between the persons being displaced, Government, Eskom and other Identified role players. The resettfement plen and process followed must as a minimum address the requIrements 8S per applicable South African legislation In line with the Equator Principles where applicable to the South African environment and legislation.

1.2 Applicability

This procedure applies to all Generation Business projects as well as any Generation Business linked/associated facilities project upon whlch a maIn project Is dependent and cannot be functional without.

This procedure will be applied where a project requires Eskom Generation to take full ownership rights of any parcel of land and will strive to reseWe affected people In an environment whereby they can restore or provide alternative sustainable Income streams for themselves. Where Eskom Generation only requires limited linear servitude rights over a parcel of land leaving the parcel of land an uneconomIc commercial unIt In the hands of the land owner as a result, Eskorn Generation shall procure full ownership of the parcel and this procedure will be applied to such a parcel of land. Where Eskom Generation procures limited linear servitude rights over a parcel of land where such rights taken does not render the parcel of land an uneconomic commercial unit, Eskom Generation shall either;

• Compensate the landowner In full to replace and reposition any Infrastructure/dwelUngs to be demolished due to the taking of the servitude, to a posItion outside of the servitude area to Its orIginal extent and SABS standards as II minimum. Eakom must contractually bind the landowner to perform on such an agreement reached In writing.

• Or, contractually agree to reconstruct any infrastructure/dwellings to be demolished due to the taking of the servitude, at a position agreed to outside of the servitude area to Its original extend and SABS standards 8S a minimum.

• Or, for pensioners, resettle such dwellem wishing to rellre to town according to this procedure.

In Implementing the Equator Principles, banks currently have or will put In place Internal policies and processes consistent with the principles. In adopUng the Equator Principles, a bank undertakes to provide loans only to those projects whose sponsors Can demonstrate to the eatJsfacUon of the bank their ability and willingness to comply with comprehensive processes aimed at ensuring that projects are developed In a soclafly responsible manner and according to sound environmental management practices. The banks will apply the Equator Principles to all loans for proJecta with a capital cost of USC 50 million or more. For a project scope where persons to be relocated amounts to less than 200 people In total a basIc resetHement plan and where persons to be relocated amounts to more than 200 people In total a detailed reseHlament plan must be produced as per WORLD BANK GROUP _OPERATIONAL POLICY _ OP 4.12 for Involuntary Resettlement (revised March 2007).

PUBLIC Generation Group Documents I GPC Procedure Template Rev 2 July 2009

PROCEDURE fOR THi INVOLUNTARY RESETTLEMENT OF Unique Identifier: 36·366lEOALAND ILLEGAL OCOUPANTS ON OR FROM ESKOM PROCURED LAND

Revision: 1 Pege: 40f12

2 References

The following document(a) contaln(s) provisions that, through reference In the t&xt, constitute requirements of this document. At the lime of publication, the edlllon(s) Indicated were (was) valid. Thes& documents are subject to revision and users are responsible to ensure that the most recent edIUon(s) of the document(s) listed below are used I referenced. I

• Expropriation Act No.63 of 1976 1

• Restitution of Land Rights Act 22 of 1994

• Land Reform (labour Tenants) Act No.3 of 1996

• Extension of Security of Tenure Act No.62 of 1997

• Prevention of Illegal Eviction from and Unlawful Occupation of Land Act No.19 of 1998

• Constitution of the Republlo of South Africa No. 108 of 1996

References to the follOWing document(s) will enhance the understanding of the reader on the subject covered In this document. The requirements of these document(s) are, however, not 8n extension of Ihls document.

• WORLD BANK GROllP _OPERATIONAL POLICY _ OP 4.12 • Involuntary Resettlement (revlsed March 2007)

• The Equator PrInciples as based on the policies and guIdelines of the World Bank and Intematlonal Finance Corporation.

3 Definitions and abbreviations

land owner ....... Any Individual or Legal Entity having the regIstered surface rights to the land as reflected In the various Provincial RegIstrar of Deeds offices In South Africa.

Legal OccupIer •• Any Individual or group of people having occupational or use rights to the land either with the consent of the land owner or by means of applIcable South African legislation. .

Illegal Occupier.. Any Individual or group of people having no permission from the land owner for occupational or use rights In the land nor having any rights thereto by means of applicable South African legislation.

Tenant/lessee ... Any IndivIdual or group of people having a contractual agreement with the land owner for occupational or use rights to the land.

PUBLIC Generallon Group Documents I GPe Procedure Template Rev 2July 2(l09

PROCEDURE FOR THE IHVOlUNTARY RESeTIlEMENT OF Unique Identifier: 38·366 LEGAL AND ILLEGAL OCCUPANTS ON OR fROM ESKOM PROCURED lAND

Revision: 1 Page: 60f12

4 Procedure

land management prooeM for unregltlered rights holder.

Activity 1

The Environmental Impact Assessment which Includes a full suite of specialist studies selects a preferred sIte for the construction of the project. The appOinted Esi<om Properties Advisor to the project Influences the scope of relevant studIes and reviews the Jioalsocla\ Impact study. This study will provide a basis for Activity 2.

Activity 2

Eskom Properties Advisor Identifies and categorizes unregistered (informal) right holders on the land according to their legal stalus as at the date of purchase agreement contractually concluded between the land owner and Eskom. The purchase agreement contract date Is also the cut off date for any person claiming enjoyment of oooupaney rights on the land. The foHowlng categories must be identified as a minimum:

legal occupants of the land:

Tenants/Lessees of land or Infrastrueture thereon.

labourers to previous landowner and theIr affected families.

Other occupants on the land enjoytng occupational 01 use rights with the prevIous land owner's consent or by means of applicable South AfrIcan legIslation.

PUBLIC Generation Group Documents/ GPO Procedure Temp/ate Rev 2 July 2000

PROCEOURE FOR THE INVOlUI'4TARY RESETTLEMENT OF Unique Identifier: 38-366LEGAL AND ILLEGAL OCCUPANTS ON OR FROM ESKOM PROCURED lAND

Revision: 1 Page: 60'12

--~"ftM _________ N ________________________ H~_" __________ ____ _

Illegal occupants oHIle land:

Occupants of the land without the consent of the previous land owner that has no rights by means of applicable South African legislation.

Activity 3

In certain cases the previous land owner wishes to retain the services of previous occupants where the landowner Intends to continue operations on additional land owned or land to be purchased from the proceeds of the land procured by Eskom;The Eskom Propertles advisor must clearly determine whlcll occupants wish to relocate with the previous land owner under the same conditions and employment enjoyed previously. A detailed Hst of occupants relocating with the previous land owner must be drawn up and agreed to between the previous land owner, Eskom and the applicable occupants.

Activity 4

Where the previous land owner agreed with occupants that they will be moving with the previous land owner under the same conditions and employment enjoyed previously. such relocation must be monitored by the Advisor to ensure that these occupants are not left to their own means and that they are Indeed Incorporated Into the addlUonal andlor future operations of the previous land owner. Where a previous land owner does not perform to the agreement and occupants gets left behind, the occupants must be allowed to enter Eskom's resetUement program.

Actlvlly5

Where Eskom Is responsible to resettle occupants the Eskom Properties Advisor must appoint the relevant economic and financial conSUltants to advise and report on matters relating to the resettlement and valuation of occupanfs rights to the land.

Activity 8

Where Eskom Is responsible to resetUe occupants the Eskom Properties Advisor must appoint the relevant social/resettlement speclaUsf/s to faCilitate, advise and report on matters relating to the resetUement and to produce a detailed social base line study IncorporatIng the following as a minimum as per the WORLD BANK GROUP _OPERATIONAL POLICY _ OP 4.12 for Involuntary Reselliemeni (revised March 2007):

Socl08conomfo studies. The findings of socioeconomic studies to be conducted In the early stages of project preparation and with the Involvement of potentially displaced people, Including

la> the re8ults of a census survey covering: (I) current occupants of the affected area to establish a basis for the design of the resetUement program and to exclude subsequent Inflows of people from eligIbility for compensation and resetllement assistance;

(II) standard characteristics of displaced households. Including a description of production systems, labour, and household organlsallon; and baseline Information on livelihoods (Including. as relevant, production levels and Income derived from botn formal and Informal economic activities) and standards of HYIng (IncludIng health stalus) of the displaced population:

(III) the magnitude of the expected Ioss--total or partlal--of assets, and the extent of displacement, physical or economic;

(Iv) Information on vulnerable groups or persons for whom special provIsions may have to be made; and

PUBLIC GeneraUon Group Documents' GPe Procedure Template Rev 2 July 2009

PROCEDURE FOR THE INVOlUNTARY RESElTLEMENT OF Unique Identifier: 36-355lEGAl. AND ILLEGAL OCCUPANTS ON OR FROM ESKOM PROCUReo LAND


(v) provisions to update Information on the displaced people's livelihoods and standards of living at regular Inlervals 60 that the latest Information Is available at the time of their displacement.

(b) Other studl•• describing Ih' following:

0) land tenure and transfer systems, Including an Inventory of common property natural resources from which people derive their livelihoods and sustenance. non-title-based usufruct systems (Including fishing, grazing, or use of forest areas) governed by local recognized land allocation mechanisms, and any Issues raised by different tenure systems i·· In the project area; !

01) the patterns of soclallnteracllon In the affected communities, Including social networks and social support systems, and how they will be affected by the project;

(III) public Infrastructure and social services that will be affected; and

(Iv) social end cultural characteristics of displaced communities, Including a description of formal and Informal Institutions (e.g., community organizations, ritual groups, nongovernmental organizations (NGOs» that maybe relevant to the consultation strategy and to designing and Implementing the reseWement activilles.

Actlvlty 7

The Eskom Properties Advisor must engage with Govemment Department of Rural Development and land Reform for the allocation of a government official to the resettlement process as required by South African IeglslaUon. The Eskom Properties Advisor with the govemment officIal determInes the current status of any historical land claims that could have been lodged with the department against the land.

Activity 8

The Eskom Properties Advisor to consolidate with appoInted consultants a final regIster of unregistered right holders In the land to be addressed withIn the resettlement plan.

Activity 9 Knowing the scale of the resettlement project, the Eskom Properties Advisor with the govemment I· official and soclallresettlement consultant determines the core project team necessary to successfully engage with In negotiating an Implementing a resettlement plan with the persons being displaced.

The core team must be made up oul of the followIng but not limited thereto:

Eskom Properties Advisor representing Eskom - compulsory.

Govemment official representing the Department of Rural Development and Land Reform compulsory for Government's account Social/resettlement consultant as Independent advl60r/faclHtator to the process compulsory for Es1<om's account. Government official representing the local Government authority for Government's account.

Various specialists, conSUltants and legal advisor as and when required for Eskom's account.

Eskom Development Foundation repre8ent~tlve for social uplifting program when applicable. local community forumslassoclatlonalinsututlonsltrtbal authorlUes representatives If and when applicable.

The chair of the core team must ensure that meetings are well documented and administrated according to IS09001 standards. Minutes of meetings must clearly Identify actIons, responsibility and due dates.

Activity 10,11,16,19, & 27 Eskom Properties Advisor together with the Social Advisor determInes contact details and sets up Initial meetings between the core tesm and all displaced persons for every identified legal group.

PUBLIC Generation Group Documents I GPC Procedure Template Rev 2July 2009

I

PROCEDURE FOR THE INVOLUNTARY RESETIlEMENT OF Unique Identifier: 36·366lEGAL AND ILLEGAL OCCUPANTS ON OR FROM ESKOM PROCURED LAND


------------------------------.---------------------------. Activity 17, 20 & 28

At the Initial meeting with each legal grouping the core team with the group to be displaced agrees to and sets up communication structures for determination and Implementation of a resettlement plan. This communication plan must address at least the following elements:

a) Formal structured meeting schedule between the core team and resettlement group representatives through the negotiation. conclUsion and ImplementaUon of a resettlement plan.

b) Format and governance that will apply with formal meetings that must be adhered to when meeting.

c) Representation of famllfes, social and/or tribal groupings at the meetIng.

d) Lodging of grIevances and disputes withIn and external to the reseUlement process.

e) Adjudication process on deadlocked negotiation Items. grievances and dIsputes.

f) Integration wIth the greater Stakeholder Management Forum of the development project H8uch project warrants the establishment of auch a forum.

g) Forum to be established wIth the stakeholders to the resettlement program If a greater Stakeholder Management Forum has not been established for the development project.

Activity 12,18,21 & 29

Eskom Properties Advisor to Instruct SocIal Consultant to produce a detailed final social baseline study per Individual. household or group as requIred In consultation wIth Individuals and representatives of famllfes and groupings of persons to be resettled. Detail to be addressed In the study as stated under activity 6.

From thIs point onwards In the process a monthly updated resettlement plan must be produced by the Eskom PropertIes Advisor with the assistance of the Social Consultant containing the following ! . Information as a minimum:

! 1

For a project scope where persons to be relocated amounts to less than 200 people In total a basic resettlement plan as per WORLD BANK GROUP _OPERATIONAL POLICY _ OP 4.12 for Involuntary Resettlement (revised March 2007) containing the following Information:

(a) a census survey of displaced persons and valuation of assets;

(b) description of compensation and other resettlement assIstance to be provided;

(c) consultations with displaced people about acceptable alternatives:

(d) Institutional responsibility for Implementation and procedures for grievance redress;

(e) arrangements for monitorIng and ImplementatIon; and

(f) a timetable and budget

For a project scope where persons to be relocated amounts to more than 200 people In total-

A detailed reseUlem~nt plan In line with the WORLD BANK GROUP _OPERATIONAL POLICY _ OP 4.12 for Involuntary Resettlements must be drafted.

Activity 22 & 23 Core team determine out of the updated social baseline study If there Is any social development InfrastrUcture needed wtder than only the displaced community needs which will require Individual attention and mitigation. If such a need Is ldenUfied the Eskom PropertIes Advisor must Involve the Eskom Development FOUndation responsible for such developments as well as the main Eskom Project Manager appointed over the development project to come on board wtth the core team to address any mltlgatton measures.

PUBLIC Gener.Uon Oroup Documents I OPC Procedure Template Rev 2 July 2009

PROCEDURE FOR THE INVOLUNTARY ReSEmeMENT OF Unique Identifier: 36·355LEOAlAND ILLEGAL OCCUPANTS ON OR fROM ESKOM PROCURED LAND


Activity 12, 24 & 30

Final mitigation measures to conclude a successful resettlement plan Is agreed upon In meetings with the representatives of the community to be resettled and the core team. Lessees shall be dealt with In B one on one negotlaUon by the Eskom Properties Advisor.

Notwithstanding final mitigation measures agreed to Eskom shall as a minimum, for labourer and other legal households enjoying permanent resident rights on the land, supply the followIng:

a) A residence to not less than the same size enjoyed before resettlement to South Afrloan Bureau of Standards specification where the household needs to be relocated.

b) Piped potable water withIn the new dWelling.

c) Acceptable sanitation system to South African Bureau of Standards specification. d) Additional rights to land where applicable to ensure at least the same carrying capacIty

for agricultural purposes enjoyed before relocation. This to be verified by an Independent agrloultural conSUltant.

e) New residence to be wired In readiness for a prepaid electrical connection.

f) Full security of tenure via registered ownership where resettled on land not being required by Eskom for operational reasons. Where rights are given within Eskom owned land, permanent security of tenure to the agreed rIghts shall be established via contractual agreement.

Activity 13, 26 & 31 Eskom Properties Advisor submIts requests to and obtains mandates from the relevant Eskom Procurement Tender committees to negotiate and conclude resettlement agreements per Individual, household or grouping of persons. ActMty 14, 26 & 32

Eskom Properties Advisor andlor Social Consullant If mandated negotiates final setUement agreement per Individual, household or grouping of persons. If any new resettlement requirement Is identified during this final round of negotiations that faUs outside of the epproved Eskom Procurement Tender Committee mandate, such request shall revert back to activity 12, 24 or 30, whichever Is applicable and the process repeated from there.

Activity 33 & 34

Where Hlegal occupants on the land do not accept the final resettlement agreement established by the core team In conSUltation with the community to be resettled representatives, the Eskom Properties Advisor via Eskom's Corporate Legal department, must appoint legal council to assist In resettlement of the community according to South African Jeglslalive requirements drafted specifically to protect basic human rights with the resettlement of Illegal occupants of land. Activity 36

Eskom Properties Advisor with legal council prepares application to court for a court ruling according to Act 19/1998.

Activity 36

Eskom to honour the court ruling and Implement the resettlement according to the court's Interpretation of a Juet and faIr resettlement plan. ActlvHy 15, 28 & 37 Eskom Properties Advisor andlor Social Consultant If mandated. concludes contractual agreements with Individuals, households and groupings of persons to be resettled as applicable. Activity 38 & 39

If any financial payment$ are due to Individuals, households and groupings of persons to be resetlled then the Eskom Properties Advisor process such payments vta the Eskom approved commercial and financial procedures.

Activity 40 & 41 PUBLIC

Generation Group Documents I GPC Procedure Template Rev 2 July 2009

PROCEDURE FOR THE INVOLUNTARY RESETILEMENT OF UnIque Identifier: 36-365LEGAL AND ILLEGAL OCCUPANTS ON OR FROM ESKOM PROCURED LAND


If any additional land acquisitions are required as IdentiRed In tile resettlement plan than the Eskom Properties Advisor procures such land via the Eskom approved commercial land procurement process. Activity 42 & 43

If any engineering solutions and or training and assistance programs are required then the Eskom Properties Advisor appoInts an external contractor's via the Eskom commercial process or arrange wllh the relevant authorities to deliver a turnkey project according to the contracted resettlement plan. Throughout this Implementation phase the core team stili meets with the representallves of the persons to be resettled to ensure compliance to the agreed resettlement plan. meeting as per the communication plan established under acllvltles 17, 20 and 28.

Ac1lvlty44

The Eskom Properties Advisor facilitates Eskom assistance with the moving and transport of people and their assets and belongings to their new resettlement locations at Eskom's cost, resulUng In a successfully Implemented resetUement solution. Activity 46

Once the resettlement has been completed Eskom properties will engage an appropriately qualifled extemal auditor to review the process and Implementation of the relocation/resettlement confirming that relevant legal requirements and Eskom procedures have been compiled with.

The Eskom Properties Advisor assisted by the Social Consultant forward the final conclusion of resettlement agreements reached to the Generation Environmental Management Department for pubnshlng on the publicly assessable Eskom Generation Environmental Impact Assessment website. The Information Is laslly shared with the resettlement or greater project stakeholder forum, whIchever forum was established for the project. The E,ekom Properties AdvIsor transfers responsibility to the appointed operational Generation Unit Manager to monitor and comply with further outstanding conditions relating to training and assistance programs as contained within the resettlement agreements.

PUBLIC Generation Group Documents I GPC Procedure Template Rev 2 .My 2009

PROCEDURE FOR THE INVOLUNTARY RESETILEM!NT OF Unique Identifier: 36-366 LEGALANO ILLEGAL OCCUPANTS ON OR FROM ESKOM PROCURED lAND


6 Records

Activity number

Record, produced Retention period after completion of project. (year.)

1 Social Study from Initial project Environmental Impact Report 3

2 Provisional Register of persons to be resettled 3

3.4 Previous Land Owner Resettlement Report for persons wIshing to be relocated with the previous land owner

Indefinitely

5,6 Contract Strategy and Management Documentation

Procurement Tender Committee Documentation

6

6

1 Historical land Claims Register IndefinItely

8 Finalised RegIster of persons to be resetHed 3

9 Register of Resettlement Core Team and Ad Hoc members

Minutes of Meetings

3

10

11,20, 18

Contact details register of persons to be resettled 3

12. 18, 21,29

Detailed SOcial Baseline Study

Resettlement Plan updated on a monthly basis

Indeflnllely

IndefinHely

22.23 Local community development Register 6

12, 24, 30

Minutes of MeetIngs and Negotiations 10

13. 26, 31

Mandates from relevant Eskom Proourement Tender Committees 6

14, 26, 32

Draft Reseltlement Agreements 3

33,34 Legal Council appointment lelter from Corporate Legal 5

35,36 Appllcatlon to Court

Court Ruling

6

Indefinitely

16, 26, 37

Final Resettlement Agreements contractually concluded

Feedback Reports to relevant Eskom Procurement Tender Committees

Indefinitely

Indefinitely

38,39 Documents as proof of Financial Compensation Indefinitely

PUBLIC Generation Group Documents I GPC Procedure Template R&I 2 July 2000

PROCEDURE FOR THE INVOLUNTARY RESETnEMENT OF Unique Identifier: 36-366 LEGAL AND ILlEOAl OCCUPANTS ON OR FROM ESKOM PROCURED lAND

Revision: 1 Page: 12 of 12

40.41 Title Deeds to Land Indefinitely

42.43 Contract Strategy and Management Documentation 5

Procurement Tender Committee Documentation 6

44 Contract Strategy and Management Documentation 6

Procurement Tender CommlUee Documentation 6

46 Final ConclUsion/Audit Report on Resettlement agreements for 6 public Information

Handover Documentation for responsibility transfer to the appointed operatIonal Generation Unit Manager 6

General Correspondence to the project 3

6 Annexes

No prescribed format for lists and reports to this process.

PUBLIC Generation Group Documents lope Procedure Template Rev 2 July 2009

~Eskom

STATUS, AND PROCESS, OF LAND

ACQUISITION AND RESETTLEMENT FOR

ESKOM'S CONCENTRATING SOLAR PLANT

(CSP), WIND ENERGY FACILITY, MAJUBA

RAIL AND TRANSMISSION PROJECTS

@Eskom

Status, and process, of land acquisition and resettlement for

Eskom's concentrating solar plant (CSP), wind energy facility, Majuba rail

and Transmission projects

Doc No. GEM09_R070

IRev. 02Date: Ocl2009

Page 2 of 26

Table of Contents

1.0 INTRODUCTION ............................................................................................ 3 2.0 WIND ENERGY FACILITY (WEF) .................................................................. 5

2.1 Project description ....................................................................................... 5 2.2 Public Participation Process (PPP) in EIA ................................................... 8 2.3 Land required and acquisition ..................................................................... 9 2.4 Social assessment .................................................................................... 1 0 2.5 Resettlements ........................................................................................... 10

3.0 CONCENTRATING SOLAR PLANT (CSP) .................................................. 11 3.1 Project description ..................................................................................... 11 3.2 Public Participation Process (PPP) in EIA ................................................. 13 3.3 Land required and acquisition ................................................................... 13 3.4 Social assessment .................................................................................... 14 3.5 Resettlements ........................................................................................... 14

4.0 MAJUBA RAIL PROJECT ............................................................................. 15 4.1 Project description ..................................................................................... 15 4.2 Public Participation Process (PPP) in EIA ................................................. 17 4.3 Land required and acquisition ................................................................... 17 4.4 Social assessment .................................................................................... 17 4.5 Resettlements ........................................................................................... 18

5.0 TRANSMISSION LINES ............................................................................... 20 5.1 Projects Description .................................................................................. 20 5.2 Public Participation Process (PPP) in EIA ................................................. 20

6.0 AUDIT (All projects) ...................................................................................... 22 7.0 DISCLOSURE (All projects} .......................................................................... 22 8.0 ENGAGEMENTS AND COMMUNICATION FOR RESETTLEMENT ........... 23

8.2.1 Data verification phase: ...................................................................... 23 8.2.2 Negotiation phase: ................................................................. : ............ 24 8.2.3 Implementation phase: ........................................................................ 25 8.2.4 Close-out phase: ................................................................................. 25

8.3 General Reporting: .................................................................................... 25 8.4 Grievance channels: .................................................................................. 26

2

Status, and process, of land Doc No. GEM09_R070

acquisition and resettlement for IRev. 02@Eskom Eskom's concentrating solar plant Date: Oct 2009

, (CSP), wind energy facility, Majuba rail Page30f26


1.0 INTRODUCTION

This document summarises information on the status and processes followed for

land acquisition and resettlement processes undertaken for the Concentrating

Solar Plant, the Wind Energy Facility, the Majuba Rail and transmission lines.

The process of land acquisition can be seen as commencing with the site and

route identification process. The site and route identification process uses the

principles of trying to avoid alternatives of heavy human inhabitation or areas

with communities, as a means to minimise potential social impacts and

relocations. For Transmission lines, this is achieved by identifying and

investigating a corridor wide enough to allow re-routing within, to avoid

displacement of occupants. This document describes each project, provides the

public participation process undertaken in the EIA process as a means of initial

engagement of the landowners and Interested and Affected Parties (I&APs);

provides the engagement process for, relocation and resettlements; assesses

the land acquisition in terms of social assessments and describes the closure

and review of the resettlement process.

The social assessment process includes identifying potentially affected

communities and undertaking socio-economic surveys of such, and identifying

the economic impacts which could result from complete purchase of land or

restricted access to the land.

The resettlement process, undertaken in Eskom resettlement processes,

complies with Eskom's "Procedure for the involuntary resettlement of legal and

illegal occupants on or from Eskom procured land". This procedure is applicable

on land where a project requires Eskom Generation to take full ownership rights

of land, and Eskom strives to resettle affected people in an environment whereby

they can restore or provide alternative sustainable income streams for

themselves. In areas where Eskom Generation only requires limited linear

servitude rights over a parcel of land, leaving the parcel of land an uneconomic

commercial unit in the hands of the landowner as a result, Eskom Generation

3

@Eskom

Status, and process, of land

acquisition and resettlement for

Eskom's concentrating solar plant

(CSP), wind energy facility, Majuba rail


Doc No. GEM09_R070

IRev. 02Dale: Oct 2009

Page4of26

procures full ownership of the parcel. In areas where Eskom Generation procures

limited linear servitude rights over a parcel of land, where taking such rights

renders the parcel of land an uneconomic commercial unit, Eskom Generation

either:

• compensates the landowner in full to replace and reposition any

infrastructure/dwellings to be demolished due to the taking of the

servitude, to a position outside of the servitude area to its original extend

and· SABS standards as a minimum. Eskom contractually binds the

landowner to perform on such an agreement reached in writing;

• or, contractually agrees to reconstruct any infrastructure/dwellings to be

demolished due to the taking of the servitude, at a position agreed to

outside of the servitude area to its original extent and SABS standards as

a minimum;

• or, for pensioners, resettles such dwellers wishing to retire to town.

The resettlement processes ensures that occupants are afforded their

Constitutional Rights, and allowed thorough participation/engagement and

support by Eskom. Furthermore, Eskom seeks to ensure land-based

resettlement for people whose livelihoods are land-based. The Resettlement

Plans that are being implemented will be made available through the Eskom

website (www.eskom.co.zaleia). with the first version due in October 2009.

The identification of impacts is done through the EIA processes undertaken, and

it addresses cumulative impacts from activities related to the development. The

process further develops an Environmental Management Plan (EMP), which

addresses general social impacts. The EMP gets approved for compliance with

good environmental practices, compliance to appropriate legislation and good

social standing by the authorities. Compliance to the requirements and

compliance to EMP are monitored through external independent audits, and such

reports are submitted to the authorities. As part of continuous monitoring, the

project establishes an Environmental Monitoring Committee (EMC), which

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comprises participation from all interested parties. This forum also addresses

social issues.

2.0 WIND ENERGY FACILITY (WEF)

2. 1 Project description

The project is a wind energy generating facility with a combined capacity of

200MW, and requires an area of approximately 25km2 to position the wind

turbines. The infrastructure associated with the project includes:

• up to 100 wind turbine units (approximately 80 m high steel towers and nacelle, with a hub height of 80 ; 90 m diameter rotor, consisting of 3 x 45 m blades);

• a concrete foundation (of 15 m x 15 m) to support each turbine tower; • underground electrical cabling between turbines and substations; • one or more substations (in order of 80 m x 80 m footprint size) on the site

in an appropriate position to receive generated power via underground distribution cabling from each wind turbine;

• overhead powerlines (132 kV distribution lines) from the wind farm substation/s feeding into the electricity distribution network/grid at the Koekenaap Distribution Substation or the Juno Transmission Substation near Vredental)

• an access/haul road to the site trom the main R363 road at Koekenap; • an internal access road to each wind turbine (approximately 6 m in width); • (possibly) a small office building and visitors centre at the facility entrance.

The project received an Environmental Authorisation (EA) (previously referred to

as a Record of Decision, RoD) on the 24th April 2008, for location of the wind

farm on Portion 5 of the farm Gravewaterkop 158 (known as Skaapvlei), a portion

ot Portion/Ert 620 of the farm Olifants River Settlement (known as Skilpadvlei),

and a portion of Portion/Erf 617 ot the farm Olifants River Settlement (known as

Nooitgedag), which fall in the jurisdiction of the Matzikama Local Municipality of

the West Coast District Municipality, in the Western Cape Province. These farms,

and their location, are shown on Figure 2.1 below.

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_ .... _ .... IoW""' mill ... ,... ~ ... 140,,_Joo , ...

-.., 100 eli] 200

10111.......-_----- ... Figure 2.1 Showing locality map of study area, with affected farms, on the West Coast of Olifants River.

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The approved Transmission corridor (Alternative 1 a) from Juno Substation (near

Vredendal), crosses the R362 and follows the existing Juno-Koekenaap

distribution power line for a total distance of 20km until it reaches the R363

(south of the Koekenaap Substation). At this point, the power line crosses this

road and head west towards the wind energy facility, following the alignment of

the Skaapvlei road. A sUb-alternative (referred to as Alternative 1 a) has been

proposed to avoid an area of high botanical sensitivity, and follows the existing

distribution line for about 15 km before heading due west across the R363 (north

of the Keerweder settlement) towards the proposed wind energy facility.

Alternative 1 a is 39 km in total length. The alternative Transmission corridors are

shown in Figure 2.2 below.

Figure 2.2 Showing the alternative Tx corridors for the project

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2.2 Public Participation Process (PPP) in EIA

The public consultation process commenced at the commencement of the site

selection process, and was continued all throughout the Environmental Impact

Assessment (EIA) process for the project. Through this, a process of identifying

Interested and Affected Parties (I&APs), their registration and creation of an

electronic database was undertaken by following existing contact and databases,

advertisements through site notices and newspapers, and through networking.

The result of this process was identification of provincial and local government

departments, government structures, potentially affected and neighbouring

landowners, local authorities, conservation authorities, industry and Community

Based Organisations.

Upon the identification, a series of Focus group meetings were held from which

key issues for inclusion into the process were identified and documented at site

selection phase.

At the Scoping Phase, site notices and newspaper adverts were placed; and a

Background Information Document (BID) was distributed. Contract initiatives

included Focus Group Meetings, One-on-One consultation meetings and

telephonic consultation sessions; and written/faxed/e-mailed correspondence

was also used. On development of the Draft Scoping Report, the report was

placed at places of public access and on Savannah's and Eskom's websites, to

allow the public an opportunity to review the document. Within this review period,

stakeholder and public meetings were held to facilitate comments on the

document. The issues brought about from these interventions were included in

the Final Scoping Report that was submitted, and approved, by the authorities.

Furthermore, these issues were included into the EIA process. Records of all the

consultation processes were kept.

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In the EIA phase of the process, a draft Environmental Impact Report (EIR) was

developed and placed in places of public access and on the consultant's and

Eskom's websites for the review. The public was well notified of the availability of

the report and their role in the review process. Again, a public meeting and

stakeholder meeting were held during the public review period, to provide

feedback on the findings of the environmental impact assessment studies, and

invite and facilitate the public input into the report.

2.3 Land required and acquisition

This process of land acquisition commences in parallel with the EIA process. To

obtain the required land or rights in land (Le. servitude) Eskom negotiates with

each landowner on each property that is required for the project so tha Eskom is

able to acquire the land and rights over the property. Negotiations are done to

ensure landowner's property rights as per the South African Constitution are

respected. Eskom, as a State Owned Enterprise, must apply all legislation

related to the acquisition of land and rights.

Consideration for the property is determined by the EXPROPRIATION ACT No.

63 of 1975, which states that compensation is to be the amount which the

property would have realised if sold in the open market by a willing seller to a willing buyer; plus an amount to make good any actual financial loss caused by

the expropriation.

Valuations are done by independent valuers who determine the willing buyer

willing seller value. Before and after valuations are also determined by

professional independent valuers as and when required. Other business or

agricultural related actual financial losses are determined by a recognised expert

in the related field. If a property is no longer economically viable as a result of

Eskom's intended project that only affects part of the property, that property will

then be purchased as a whole. It is noted that the rights Eskom require for rural

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power lines e.g. 11 kV and 22kV are not paid for because these rights are directly

benefiting the public and are built for public interest. The cost of these lines is

kept low to ensure that connection charges are kept to the minimum.

For the WEF, Eskom has purchased Portion 5 of the farm Skaapvlei and Portion

620 of the farm Olifants River Settlement. A section of portion 617 is also

required, however the property must be sub-divided first since the owner is not

willing to sell the entire farm to Eskom but only the required portion. The land

purchase process was based and undertaken on willing buyer-willing seller

principles.

2.4 Social assessment

The social study recommended that an agricultural specialist study be

commissioned once the final footprint for the proposed Wind Energy Facility has

been finalised. This study was recommended because the impact on farming

activities was deemed to have a potential to impact on the livelihoods of the farm

workers who resided on the affected farm. According to this study, if the

livelihoods of these families would be negatively affected, Eskom would have to

consider compensation and means of restoring their livelihoods. Examples

included possible payment of resettlement packages to the affected families.

2.5 Resettlements

The Land Reform (Labour Tenants) Act No. 3 of 1996, among others, makes

provision for security of tenure for labour tenants and those persons occupying or

using land as a result of their association with labour tenants. The Act ensures

the protection of labour tenants, who are persons previously disadvantaged ~y

unfair discrimination, and institutes measures to assist them in obtaining security

of tenure and ownership of land without further prejudice. Therefore when Eskom

acquires land which is burdened by such unregistered rights holders, legislation

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dictates that these persons must be relocated or provided for according to

described processes. Reference on the Eskom processes can be seen in the

"Procedure for the involuntary resettlement of legal and illegal occupants on or

from Eskom procured land".

For the WEF, the Generation Properties Team advises that there are no

resettlements necessary as there are no people staying on the farms

permanently. Also, for the power line corridors, no people will be relocated /

resettled as there are no inhabitants under the proposed Distribution lines.

3.0 CONCENTRATING SOLAR PLANT (CSP)

3. 1 Project description The project involves the proposed establishment of a new concentrating solar

power plant and associated infrastructure in the Northern Cape Province. The

power station is proposed to operate at an installed capacity of approximately

100 MW. The exact output will depend on the generating technology utilised, the

specification of the equipment installed, and the ambient operating conditions.

The potential impacts associated with the maximum output of 100 MW have

been evaluated within the environmental studies.

The footprint of the proposed new concentrating solar power plant is approximately 4 square kilometres of terrain with little relief to satisfy the

construction needs. The key factor, however, is the amount of thermal storage

required, as this determines the number of heliostats to be installed.

It is envisaged that the proposed power plant will utilise dry cooling technology as

a result of unavailability of water in the proposed area; but alternative cooling

technologies are being investigated. Dry-cooled technology reduces the total

amount of water consumed at power stations when compared to conventional

wet-cooling systems. According to design specification, the dry-cooled station

would utilise approximately 200 000 cubic metres of water per year.

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The CSP plant is required to be sited on a technically feasible site. A Pre

Environmental Scoping Study (an environmental screening study) - undertaken

by independent consultants - together with Pre-Feasibility Study undertaken by

Eskom, considered land availability and land use capability, fuel availability and

costs and other related aspects. Through this study, Northern Cape Province

was identified as a feasible locality for the establishment of the CSP plant. In

addition to the above aspects, the Northern Cape Province has one of the

highest solar potential values (figure 3.1 below) in the world, with a Direct Normal

Insolation (ON I) level of approximately 2900 kWh/m2 per year.

South Aftlcan Renewable Energy Resource Database· Annual SoJa, Radlalion

Annual ~(~~"'.:iII'uw1 ~tllC!91iO<'1·1I~1)l'I'_.....ta.,.

Figure 3.1. Annual incoming short wave radiation for South Africa.

An Environmental Authorisation was obtained on14 September 2007 for the site

on the farm Olyvenhouts Drift, 15km west of the town Upington in Northern Cape

Province, as shown in Figure 3.2 below.

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Map 1: I.oo"'''v '"w....,..., ..-..-_... -" ..._..........-.-l;...

"''''''~''''''''-

Figure 3.2. Showing locality map of study area, with affected farm

3.2 Public Participation Process (PPP) in EtA

The PPP was undertaken as part of the EIA process, following the same

principles as the WEF PPP to ensure all Interested and Affected Parties (I&APs)

are afforded an opportunity to fully participate and influence the project.


As presented in the WEF document, this process of land acquisition commences

in parallel with the EIA process

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For the esp, the land required for the project is the Farm Olyvenhoutsdrift. The

property is privately owned by Allepad 8dy Pty' Ltd for the purposes of a cattle

farming operations.

Eskom has not as yet acquired rights to the property and is still in negotiations

with the land owner. However, initial discussions with Mr Van Schalkwyk indicate

that he is willing to grant Eskom the required servitude area of 2500 hectares.

Negotiations are continuing.


As part of the environmental impact assessment process for the concentrating

solar thermal power plant, a social impact assessment (SIA) was undertaken.

Based on the findings derived from the SIA it was concluded that the proposed

project does not pose severe social risks and/or threats to the local communities.

Studies on this project have also indicated that no communities would have to be

relocated as a result of the proposed project.

3.5 Resettlements

The Land Reform (Labour Tenants) Act No.3 of 1996, among others, makes



the protection of labour tenants, who are persons previously disadvantaged by







from Eskom procured land"

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In the CSP, the property is privately owned by Allepad Bdy Pty Ltd for the

purposes of a cattle farming operations. This land forms part of a bigger

operation within the area. Eskom's acquisition of the servitude will not impact on

the farm labourers in any way given that they will remain in Mr Van Schalkwyk's

employ since his farming operation extends over an area of 12 796.32 in extent,

and will continue unabated.

For the CSP, the EIA process covered 132 kV power lines that would be linked to

a nearby Transmission line, at the bottom of the farm. No occupants had to be

resettled or relocated as no families resided on the route of the lines.

4.0 MAJUBA RAIL PROJECT

4. 1 Project description

The Ermelo-Majuba railway line is a 67km railway line that will transport coal

from the Richards Bay Coal Terminal (RBCT) line and Majuba Power Station. It

is intended that this be a private siding to supply Majuba Power Station.

The route starts to the west of Ermelo with an off-take from the RBCT line that

allows trains to enter from the Davel and Ermelo directions. The route then

follows a southerly direction, roughly parallel to the N11. The route crosses the

Vaal River roughly halfway to Majuba.

The route is aligned through or close to farms owned by 43 landowners and

comprising the following farms: De Roodepoort 435 IS; Uitgezocht 436 IS;

Rietspruit 446; De Vereeniging 448 IS; Kromdraai 441 IS; Dorpsplaats 470 IS;

Transvalia 441 IS; Holland 471 IS; Tweefontein 479 IS; Grabes Rust 495 IS;

Rietspruit 507 IS; Sterkspruit 508 IS; Platberg 510 IS; Brakfontein 529 IS;

Vlakplaats 58 HS; Amersfoort Townlands 57 HS; Koppieskraal 56 Hs; and

Roodekopjes 57 HS. The route of the rail is shown in Figure 4.1 below.

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Figure 4.1 Showing location of the proposed route of the Ermelo-Majuba Majuba railway

route

A positive Environmental Authorisation was received from the Mpumalanga

Department of Agriculture and Land Administration (MDALA) on 8 September

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2005. This authorisation has subsequently been extended twice on 4 April 2007

and 14 February 2008 respectively. The authorisation does not need further

extension of time as the clearing of the servitude and fencing has commenced

and is deemed as part of the construction activities.




are afforded an opportunity to fully participate and influence the project.


As presented in the WEF document, this process of land acquisition commences

in parallel with the EIA process.

For the Majuba rail project, the properties are privately owned for the purposes of cattle and maize farming operations.

Eskom has, in most cases; acquired rights to the properties and, in some, outright purchases have taken place.


Findings from the socio-economic study conducted during the EIA phase

concluded the following:

The route affects 64 portions of farms. Approximately 240 households residing

on the affected properties may be said to constitute the directly affected

population. Following information provided by 28 owners/managers the

composition of these farms was extrapolated to the following:

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• 40 households of farm owners and family members, who either own the

properties privately or as part of family and other trusts, as well as tenants;

• 200 households of labourers working and residing on the farms. On average

there are 5 labour families per farm (where information was provided) but

these vary greatly from zero through to 38 families per farm. In addition to

permanent labourers, a number of landowners employ seasonal labourers

on occasion.

4.5 Resettlements

The Land Reform (Labour Tenants) Act No.3 of 1996, among others, makes



the protection of labour tenants, who are persons previously disadvantaged by







from Eskom procured land"

In the Majuba rail project, baseline studies of the farm labourers have been

conducted where applicable, as not all the farms have farm labourers affected.

Further, where labourers are affected, on-farm relocations are required. Hence,

the impact on labourers' livelihoods is small or nothing as the existing farming

operations are not affected.

At this stage none of the required relocations have been initiated as the project

has not gone ahead, although Table 1 below shows occupants that might be

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affected. Presently, there is no impact on anyone of the farm labourers and their

daily activities

Farm Name Household HH Members Mitigation i

Uitgezocht 436 - IS, P19

Uitgezocht 436 - IS, P19

Jabulani Twala

Aaron Zwane

1 On farm resettlement

1 On farm resettlement

UitQezocht 436 - IS,16 Elfas NQwenya 7 On farm resettlement i Dorpsplaats 470 - IS,P36 Joseph Msibi 7 On farm resettlement i

Dorpsplaats 470 - IS,P36 JoanaZwane 5 On farm resettlement I

Dorpsplaats 470 - IS,P36 Paulos Mahlangu 4 On farm resettlement i

Dorpsplaats 470 - IS,30 Andries Msibi 10 On farm resettlement

Dorpsplaats 470 - IS 30 Florah Mnisi 4 On farm resettlement

Tweefontein 479 - IS, P27 Paulos Kuhlase 5 Off-farm resettlement !

i Tweefontein 479 • IS, P27 Noki Nkosi 7 Off-farm resettlement !

Grabes's Rust 495 - IS P4 Jacob Ngwenya 16 On farm resettlement

Grabes's Rust 495 • IS, P4 Elinah Nkosi 13 On farm resettlement

Grabes's Rust 495 - IS. P4 John Ngwenya 8 On farm resettlement

Grabes's Rust 495 ISP3 Christinah Nkosi 19 On farm resettlement

Grabes's Rust 495 • IS, P3 Sabet Kubheka 8 On farm resettlement : i Grabes's Rust 495 - IS P3 Mlandu Msezane 7 Off·farm resettlement

Rietspruit 507 - IS, P4 Annah Nhlabathi 16 On farm resettlement

Rietspruit 507 • IS, P4 Maria Mthethwa 14 Off-farm resettlement

Sterkspruit 508 • IS, PO Michael Msibi 7 On farm resettlement

Platberg 51 O-IS, P4 Elias Mahlinza 3 On farm resettlement

Total Household members 152

Table 1. ShOWing perceived number of households that could be affected

The total numbers of household members that are impacted on are 152. It must

be noted that these are the preliminary figures obtained from the initial base line

studies that was conducted. However, the figures may change due to changes in

the horizontal alignment of the railway line. This will be confirmed closer to

construction and when finances becoming available.

Due to the lack of finances in the undertaking of the project in its entirety, no

resettlements were initiated. However, the resettlement of the affected individuals

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whether on/off-farm, will be dealt with in accordance to the Eskom's 'Procedure

for the involuntary resettlement of Legal and Illegal occupants on or fro the

Eskom procured land'.

5.0 TRANSMISSION LINES

5. 1 Projects Description

The Transmission projects are needed for the transmission of power from

generating stations. These projects are for lines of different capacities, e.g.

400kV, 765kV lines. The EIA projects, and planning, of these projects are at

different stages of the project cycle. From the acquisition of the Environmental

Authorisation (EA), these projects follow into the Servitude Acquisition phase and

EMP stages.




are afforded an opportunity to fully participate and influence the project. This

process is clearly outlined in each EIA, and basically what actual PP occurred

and via which media.

5.3 Land required and servitude acquisition

Acquisition of servitudes are conducted with each and every landowner and

stakeholder, and the basis of the consideration price will be based on 100% of

market related land value for the area to be taken by the servitude or 100% of the

actual financial loss incurred as a result of the power line / substation as

determined by an independent registered professional valuer.

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Each EIA conducts an individual and unique Social assessment and they are

available on the Eskom web site (www.eskom.co.zaJeia)

5.5 Resettlements

Issues that can be identified during the servitude acquisition stage for example

but not limited to: Houses, both formal and informal, sheds, dams, windmills,

trees, water tanks, car ports, boreholes, landing strips, irrigation, etc.

Depending on the circumstances these are either compensated for or replaced

by Eskom, the unique circumstances of each case are determined. Payment of

these are negotiated and an agreement reached. With regards to tribal land each

transaction will be guided by the tribal authority and the occupant.

During the EIA process a social impact assessment is done for each individual

Transmission line. Generally the related resettlement issues will be avoided,

however in some cases houses will have to be relocated, which usually amounts

to the rebuilding of the infrastructure on the same parcel or portion of land,

outside the servitude and to a position acceptable to the party to be resettled.

Transmission generally only acquires servitudes on the property and the land

and its use remains in the hands of the owner, the servitude agreement allows

Eskom to erect and maintain the transmission line on someone else's property. In

extreme cases where the property is purchased, Eskom adopts the position of

"Procedure for the involuntary resettlement of Legal and Illegal occupants on or

from the Eskom procured land".

Typically, in the Matimba B-Dinaledi & Marang Transmission power line project,

the details of the resettlement required depends on final negotiation of the

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alignment of the powerline with the affected landowner, within the approved

environmental corridor. The Matimba B-Dinaledi identified that five (5) houses

may have to be resettled, impacting approximately seventeen (17) people.

Furthermore, it has been observed that some informal houses have since been

established in the corridors, and would need resettlement as well. The relocation

process has not commenced and it will be undertaken prior to construction. At

that stage, appropriate assessments will be done to ensure that the final routes

avoid impacting on people, and minimise any necessary resettlements. The

resettlement process undertaken always ensures that the lives of the

occupiersllandowners are not impacted negatively by the resettlement.

6.0 AUDIT (All projects)

All social impacts identified in the EIA process will be closed out as determined in

the Environmental Management Plan (EMP), and through the regular

independent compliance audits carried out for each project.

Review of the relocation process takes place once the relocation is complete.

The relocation plan and negotiations with affected parties is initiated prior to

construction; the implementation of the plan is implemented throughout the

construction process.

7.0 DISCLOSURE (All projects)

The Eskom Property Teams are constantly following up on the resettlement

processes that are being undertaken for the build projects. To this end, a monthly

report is generated that will, as of the effective date of the procedure, be

captured on the EIA website, in association with each EIA project.

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8.0 ENGAGEMENTS AND COMMUNICATION FOR RESETTLEMENT

8.1 The larger community

The wider community surrounding a major Eskom project is afforded the

opportunity to engage with Eskom via open Stakeholder Management meetings

to voice their concerns and gain information towards any aspect of Eskom's

planned project and progress thereto. Resettlement as a sub activity to the

overall Eskom project therefore should and is raised at these Stakeholder

Meetings. Representation of the resettlement project at the Stakeholder

Management meeting is via the appointed Generation Property Advisor to the

resettlement project or a delegated member of the resettlement committee as

formed under Activity 9 of Eskom Generation's resettlement procedure titled

"Procedure for the involuntary reselt1ement of legal and illegal occupants on or

from Eskom procured land". Any member of the public, and therefore the people

directly affected by the resettlement program, can utilise the Stakeholder

Management meeting to formally lodge any concerns and/or grievances. These

concerns/grievances are then taken up by Stakeholder Management with those

responsible to address the concerns raised. Feedback of the resettlement project

and progress thereto is also shared at these meetings.

8.2 The resettlement community

8.2.1 Data verification phase:

Once an Environmental Authorisation for a specific site has been acquired the

Property Advisor appointed to the project and/or the appointed Social Consultant

to the resettlement project shall engage with affected land owners and occupiers

to their land on a one-to-one basis to verify, update and produce a detailed social

base line study incorporating information as per the WORLD BANK GROUP

OPERATIONAL POLlCY OP 4.12 for Involuntary Resettlement (revised March

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2007) - (Activities 1 to 8 of Eskom Generation's resettlement procedure are

undertaken to address this).

Once the total extent of the resettlement has been determined and verified the

relevant affected parties to form part of a committee to engage with the

community to be resettled is identified and a committee formed (Activity 9 of Eskom Generation's resettlement procedure is undertaken).

8.2.2 Negotiation phase:

An initial open meeting is then organised between the committee and the

resettlement community where process, legal rights and any other aspects to the

resettlement are shared and agreed to and information made available to the

community. Depending on the size of the relocation formal representation to

future meetings are determined and communication strategy and channels

agreed upon (Activities 17, 20 & 28 of Eskom Generation's resettlement

procedure are undertaken).

Resettlement plans are then developed through formal scheduled meetings

between the resettlement committee and representatives of the resettlement

community. During this phase the committee, with the resettlement community

representatives, can agree on separate meetings with individual groupings

having similar needs or one-on-one meetings by appointed delegates with

individual families. The outcome of this phase is individually tailored resettlement

plans (Activities 12 to 14, 18, 21 to 25 and 29 to 32 of Eskom Generation's

resettlement procedure).

With agreement reached on resettlement packages approved by a relevant

Eskom Tender Committee, a delegation meets with individual families and

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contractually signs the resettlement agreements (Activities 15, 26 and 37 of

Eskom Generation's resettlement procedure).

8.2.3 Implementation phase:

The resettlement committee meets with community representatives on an agreed

schedule to monitor implementation, receive and address complaints/grievances

to ensure the successful implementation of the agreed to resettlement plans

(Activities 38 to 44 of Eskom Generation's resettlement procedure).

8.2.4 Close-out phase:

After the successful resettlement an external, appropriately qualified auditor will

be appointed to review the process and implementation of the

relocation/resettlement confirming that relevant legal requirements and Eskom

procedures have been complied with. The results of this review will also be

shared with all interested and affected parties to the resettlement program

(Activity 45 of Eskom Generation's resettlement procedure).

8.3 General Reporting: As from the effective date of this procedure and following on from the above

phases a monthly report on progress is made available and published on the

Eskom Environmental Web site accessible to the public and any interested and

affected party. Similarly the Eskom Generation's resettlement procedure titled

"Procedure for the involuntary resettlement of legal and illegal occupants

on or from Eskom procured land" is also made publicly available for the

purposes of transparency and compliance to South African legislation with

respect to the resettlement of people.

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Status, and process, of land i Doc No. GEM09_R070

acquisition and resettlement for IRev.02@Eskom Eskom's concentrating solar plant Date: Oct 2009



8.4 Grievance channels: Anyone of the Stakeholder Management/Resettlement committees, Government

Department of Rural Development & Land Reform or the Local

Government/Mayor's offices can be contacted towards lodging a formal

grievance against any aspect of the resettlement project. This information,

together with all rights, is also shared with the initial open meeting held with the

community to be resettled.

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