ENVIRONMENTAL IMPACT ASSESSMENT 7.1 ENVIRONMENTAL .

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7. ENVIRONMENTAL IMPACT ASSESSMENT7.1 ENVIRONMENTAL ASSESSMENT PROCESSThe main objective of the Environmental Impact Assessment (EIA) is to evaluatethe Project likely impacts on the environment as described in section 4 of thisESIA. One of the key objectives of the ESIA is to assist in ensuringenvironmentally and socially sound management of the Project during its entirelifecycle. The description of the existing conditions of the local environmentprovides a comprehensive data collection and analysis of the baseline conditionsat the Project site. The baseline data permits the identification of the main socio‐environmental factors that might be associated with the Project activities.The interaction between the Project activities and the environmental and socialbaseline conditions of the ecosystem at the Project site is at the core of the ESIA.The ESIA is designed to forecast the positive and negative effects that may occurto the receiving environment. The early identification of impacts that may occurin the area leads to a reduction of the risk of future adverse environmentaleffects, and permits the proposal of mitigation guidelines/measures to avoid,reduce or remediate significant adverse effects.The ESIA also acknowledges potential socio‐economic impacts, and predicts theeffect on people and communities occurring as a result of the Project.In this section, key biological, physical, and human receptors are selected fromthe baseline data. The impacts of the Project activities on each of these “ValuedEcosystem Components” are evaluated using a significance ranking process.7.2 VALUED ECOSYSTEM COMPONENTSValued Ecosystem Components (VECs) are ecosystem components that areconsidered to be important or valuable and that merit detailed consideration inthe EIA process (Treweek, 1999). The concept of VECs has been used in EIAs asa tool to highlight important receptors (individuals or groups) which could beaffected (positively or negatively) by the different aspects of a project underevaluation.The VECs are selected depending on the identification of pathways linkingimportant environmental components with the totality of the project’s activities,and as such, VECs are fundamental to the EIA process.The environmental resources can be divided into their key characteristics orcategories from which the VECs can be selected. Table 6‐1 presents a list of eachenvironmental resource associated with the VECs that are deemed significant interms of environmental and social importance in the context of this Project.Each of these VECs have been evaluated in terms of the construction andoperational aspects of the Project and relevant mitigation measures will berecommended to ensure that all negative impacts are mitigated.

OSSIOMO AMMONIA UREA PROJECTEnvironmental Social Impact AssessmentTable 7.1: Valued Ecosystems ComponentsEnvironmentalResourceAir and ClimateLandValuedEcosystemsComponentAir Quality Effects on air for local residents Health implications for all users Effects on the ecosystemClimate Contribution to global warmingGeomorphology andLandscape Changes in land morphology Use of non‐renewable resources Importance to local communityGroundwaterQualityWaterSurface WaterQualityRiver Water QualityTerrestrial Ecologyand BiodiversityEcology andBiodiversityMarine Ecology andBiodiversityHuman EnvironmentSocio‐EconomicActivitiesCommunity Healthand SafetyNoise PollutionAgricultureLight PollutionJanuary 2011Importance of the Valued EcosystemComponent Effects of waste disposal methods Sustainability issues (is groundwaterconsidered a highly limited renewableresource in the area?) Effects on local use (irrigation anddrinking). Sustainability issues Effects on local use (irrigation, drinkingand transportation) Health implications for all users Effects on local use (fisheries,transportation) Health implications for all users Importance to biodiversity value(International, National and Regional) Important for ecosystem well being andproper functioning Use to community Importance to the well being of allbiological content of the ecosystem High biological value (International,National and Regional) Economic use to community Employment opportunities Community welfare Operations impact on community safety Reduction of gas flaring Nuisance to local community Influence on biological diversity Socio‐economic importance National and community value creation Nuisance to local community andecosystem2

OSSIOMO AMMONIA UREA PROJECTEnvironmental Social Impact Assessment7.3 ENVIRONMENTAL ASPECTSThe environmental aspects are defined as the elements of an operation orproject’s activities, products, or services that can or does interact with theenvironment. The key environmental aspects associated with the Project arepresented in Table 6‐2 below.Table 7.2: Environmental AspectsProject ComponentEnvironmental AspectSoil clearing and land levelingConstruction Activities – SitePreparationTransport and equipment usePurchase and delivery of construction materials andservicesStaffingWorker’s temporary accommodationExcavation and earthworks for Plant foundation andbuildingsConstruction Activities – CivilWorks and Mechanical ErectionTransport and use of vehicles and construction equipmentConstruction of infrastructure OSBL (outside Plant BatteryLimits) including freshwater intake pipelinePlant equipment testing and start‐up/commissioningWaste disposalOperation of ammonia and urea process plantsOperation of freshwater intake pipelineOperation ActivitiesJanuary 2011Traffic operation for ingress and egress from Plant site3

OSSIOMO AMMONIA UREA PROJECTEnvironmental Social Impact AssessmentTraffic operation for transport of urea product ex Plant siteWaste disposalAccidental (non routine) EventsFire and explosionSpills and leaksThe environmental impact resulting from an environmental aspect can bepositive or negative. A number of the impacts for this Project are actuallypositive.7.4 PREDICTED IMPACTSEnvironmental impacts are caused by environmental aspects and can have adirect impact on the environment, contribute indirectly to a largerenvironmental change, or be cumulative. This section reviews each of the VECspotentially affected and discusses the predicted impacts that may result from theenvironmental aspects listed above.7.4.1 PREDICTED IMPACTS DURING CONSTRUCTION PHASEThe construction phase of the project is described in Section 3.2. This phase isplanned to extend for a period of 29 months and to finish during the secondquarter of 2013. The main potential impacts anticipated during the constructionphase of the Project are outlined in the following sections.7.4.1.1 AIR AND CLIMATEAir quality may be affected during site preparation, construction activities, andby the potential occurrence of non‐routine events. Impacts could result from thefollowing environmental aspects listed in Table 6‐2.Dust and ParticulatesDuring construction, there may be a localized and temporary reduction in airquality as a result of dust and particulate generation. It is considered to besignificant, with the potential to affect workers on‐site. However impact on off‐site receptors will be minimal as the actual Project site is circa 7 Kilometers fromthe nearest habitation.Creation of access roads, excavation and earthworks ISBL (inside the plantbattery limits) may lead to the temporary air borne transport of particulates(increased dust). The majority of the dust generated during construction islikely to be deposited within 100 Meters of the site. According to the UKEnvironment Agency Technical Guidance Document (Monitoring) M17, circa85% of particulate matter in the ambient air is deposited within 100 Meters ofthe source while approximately 10% is deposited between 100 and 500 Meters.It is important to note that the entire area around the Project site is essentiallyJanuary 20114

OSSIOMO AMMONIA UREA PROJECTEnvironmental Social Impact Assessmentundeveloped for over 3 Kilometers radius around the site. Indeed most of theundeveloped land around the site is owned by the Project Sponsor. The nearestresidential area is located about 7 Kilometers from the site.Air quality will also be reduced by emissions from machinery and vehicles usedfor transportation to and from the site and on the site. These emissions are notexpected to be significant. Note that most of the equipment is planned to betransported to the Project site with marine vessels via the Ossiomo river.Gaseous and Exhaust EmissionsEmissions of pollutants during the testing and start‐up phase of the Project. Thegaseous emissions may include: NOx, CO2, CO, NH3, SOx, and particulate matter.The start‐up phase is necessary to enable testing of the machinery andinstallations. The start‐up/pre‐commissioning stage generally lasts for fewweeks.During construction, there may be a localized and temporary reduction in airquality as a result of emissions from site machinery and equipment.Furthermore, heavy equipment such as bulldozers and other constructionequipment will produce exhaust emissions from diesel engines leading totemporary increase in SOx, NOx, and CO2 concentrations. Emissions may occur inthe event of an emergency.The main gases of concern include:Sulphur dioxide SO2The amount of SO2 in exhaust gases is directly dependent on the sulphur contentof the used fuel. Reducing SO2 emissions from engines can be implemented byusing low sulphur fuel for machinery and equipment. The Project Company willinstruct the contractors to use low sulphur fuel, to the extent available locally.Nitrogen oxides NOxNOx emissions from contractor equipment/activities will need to be minimized.Construction equipment and machinery may need to modified, to the extentnecessary.Carbon OxidesCO2 is a greenhouse gas and emissions may occur during the construction phase.The emission of carbon dioxide, while not directly harmful to human health orthe environment, contributes to global warming and climate change. Carbondioxide may be generated and emitted both directly and indirectly during theconstruction phase of the project. It is important that all energy consuming andCO2‐generating activities are conducted as efficiently as possible to minimize CO2emissions.The release of carbon monoxide (CO) may occur as a result of incompletecombustion of fuel in engines. Under normal conditions, air emissions will haveminor impacts on the surrounding environment during the construction phase.7.4.1.2 LANDJanuary 20115

OSSIOMO AMMONIA UREA PROJECTEnvironmental Social Impact AssessmentDuring site preparation, construction activities may impact the land. It isimportant to note that the Project area is benign from a geological perspectivewith no known history of flooding, tornadoes, earthquakes or other climatic norseismic events.However site clearance and ground leveling, necessary for plant construction,will change the geomorphology of the site. The area designated for theconstruction of the process plants, pipeline, and product storage are notconsidered as areas where geological features require protection.Excavation and earthworks are not regarded as sources of negative impact onlocal geology. As a means of recovery, surface deposits that will be removedduring construction phase may be used for leveling or backfill to raise andrestore the landscape.Overall, no significant impacts on geology are considered likely during theProject construction.During the construction phase of the Project, the site area will be re‐landscaped.Any existing vegetation will be removed, the soil will be graded, leveled andcompacted to produce a flat and even surface. The Plant facilities andinstallations completed during the construction phase will be visible and mayhave a negative visual impact. However, this is consistent with the designationand licensing of the site for the development of a petrochemical complex. Inaddition there are already a number of oil and gas installations andinfrastructure in the Project area.Solid waste generated during the construction phase may negatively impact thesite if handled inappropriately, but contractors will develop a solid wastemanagement plan to ensure that any solid wastes generated by the constructionactivities are handled appropriately.7.4.1.3 WATERGroundwater QualityGroundwater is a major VEC that needs to be preserved and monitored duringthe construction of the Project.The local community mainly uses underground water for subsistence andagricultural activites. The project does not intend to use underground water –the plan is to focus on taking water from the nearby Ossiomo River locatedbeside the site for the Project freshwater intake.Groundwater quality may be affected by construction activities as well as by theoccurrence of non‐routine events. The key accidental event risk is mainlyattributable to seepage of contaminants from accumulation of solid wastes orinappropriate sanitation facility.Appropriate mitigation measures discussed in section 8 need to be implementedand monitored. A large number of personnel (up to 1,000 during peakconstruction) will be required to work on site. The presence of such a largeJanuary 20116

OSSIOMO AMMONIA UREA PROJECTEnvironmental Social Impact Assessmentnumber of workers will require a sanitation facility which, if not adequate, couldlead to pollution of the soil, surface water and eventually groundwater andmarine water via the introduction of coliform contamination and/orbiodegradable organic matter which would result in a high biochemical oxygendemand (“BOD”) load in certain situations. The BOD is a measure of waterquality. As BOD load increases, consequently the water quality decreases (i.e.water degradation is associated with an increase in BOD load).Groundwater quality may also be impacted by inappropriate waste disposal andspillages during construction. Inadequate management of construction materialsand fuel could lead to spillages, notably of machine oil. Other hazardoussubstances that may be in use during the construction phase include paints,solvents, acids, and bases. A spill prevention and response plan should becompleted to prevent any effects to groundwater.Freshwater QualityFreshwater needed for the operation activities will be supplied from theOssiomo River located beside the Project site. The water flow on the Ossiomoriver at the Project site is about [80 – 120 liters/second] on average based ondata collected by the Benin‐Owena River Basin Authority over the last 30 years.This is far in excess of the Project requirement during the construction andoperation phase. In essence, the Project’s use of water from the Ossiomo Riverwill have negligible effect on other users. However it will be a major priority ofthe Project Company and its Sponsors to protect existing freshwater users and toensure that the increased demand from Plant use is sustainable.7.4.1.4 ECOLOGY AND BIODIVERSITYTerrestrial Ecology and BiodiversityThe Project site area is located in the equatorial belt with an alternating wet anddry season influenced by its proximity to the Atlantic Ocean, wind patterns andsunshine. The area is characterized by high rainfall, relatively high ambienttemperatures and high humidity due to its proximity to the coast of the AtlanticOcean. A number of small mammals and some bird tracks were observed in thesite area.Terrestrial ecology and biodiversity may be affected during site preparation, andconstruction activities. It may also be affected by the occurrence of non‐routineevents. Impacts could result from the following environmental aspects:Creation of access roadsTransport and equipment useExcavation and earthworks for civil worksWaste disposal during constructionAccidental (non‐routine) events: spills, leaks and solids disposalDuring the construction phase of the Project, there will be an overall loss ofterrestrial habitat, for example, loss of feeding areas, cover and nesting of fauna.However any habitat loss will be minimized through the construction phase.January 20117

OSSIOMO AMMONIA UREA PROJECTEnvironmental Social Impact AssessmentAccidental (non routine) events: spills, leaks and solids disposalAccidental hydrocarbon and chemical spills from motorized constructionequipment may occur and impact a great number of VECs.Under normal conditions, solid waste is not expected to reach or impact theenvironment if properly disposed. The application of prevention measures, inaddition to proper handling of hazardous waste will be mandated to eachcontractor operating at the site to ensure protection of the marine environmentfrom accidental spills.7.4.1.5 HUMAN ENVIRONMENTValued components that should be evaluated in the context of this impactassessment include the neighboring residents including local farmers. Generally,there will be positive benefits for the local community in terms of enhancementof employment opportunities and increased economic activity for the localeconomy resulting from the Project activities.Socio Economic ActivitiesSocio‐economic activities may be affected during site preparation andconstruction activities. Impacts could result from the following environmentalaspects: Purchasing of supplies and services Staffing and human resourcingThe site is currently unoccupied and thus no relocation or resettlement willoccur. The nearest habitation to the Project site is located about 7KM away.There are no identifiable social concerns in terms of impacting any localindigenous populations and the socio‐economic impacts of construction of theproject will be positive.Consultations and discussions with local residents that there is no expectation ofnegative impact on the socio‐economic activity of the local community.Moreover local residents of all categories have explicitly showed considerableinterest in exploiting any employment opportunity resulting directly orindirectly from the Project.Employment prospects will be generated for skilled and unskilled labor,administration staff, caterers and medical staff. Where available, thesepersonnel will be pooled from the local community which, by definition, not onlyincludes the neighboring villages but Benin‐City as well.One major challenge for the Project Company will be A how to balance andmanage the expectations of the local community with the real levels ofopportunities accessible to them during the construction phase given therelatively low skill and experience levels that currently exits within the localcommunity.However the Project Company will plan significant trainingprograms to enhance technical skills amongst the local community work force.In conclusion, the socio‐economic impact of the Project construction will bepositive provided that the Project Company effectively manages the expectationsJanuary 20118

OSSIOMO AMMONIA UREA PROJECTEnvironmental Social Impact Assessmentof the community.Community Health and SafetyCommunity safety may be affected by the occurrence of non‐routine events.Impacts could result from the following environmental aspects: Transport and use of vehicles and motorized equipment Waste disposalDuring the construction of the Plant, a number of trucks and heavy equipmentwill be deployed. The increase in vehicular traffic on existing road networks mayresult in increased safety risks.However these risks will be significantly mitigated by:a Maximizing the use of marine transport via the Ossiomo river, as much aspossible to reduce vehicular traffic on the local roadsb Operators of construction equipment and operations vehicles will berequired to adhere to local speed limits and rules.Full contingency plans would be in place to prevent adverse actions fromaccidental events.NoiseNoise pollution may be increased during site preparation and constructionactivities. Impacts could result from the following environmental aspects: Creation of access roads Transport and equipment use Excavation and earthworks for nitrogenous project constructionHowever these impacts will be temporary and

Environmental impacts are caused by environmental aspects and can have a direct impact on the environment, contribute indirectly to a larger environmental change, or be cumulative. This section reviews each of the VECs otentially affected and discusses the predicted impacts that may result from the

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