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Environmental and Social Review Summary

Lucky Cement

This Environmental and Social Review Summary (ESRS) is prepared by MIGA staff and disclosed prior to

the date on which MIGA’s Board of Directors considers the proposed issuance of a Contract of Guarantee.

Its purpose is to enhance the transparency of MIGA’s activities. This document should not be construed as

presuming the outcome of the decision by MIGA’s Board of Directors. Board dates are estimates only.

Any documentation that is attached to this ESRS has been prepared by the project sponsor, and authorization

has been given for public release. MIGA has reviewed the attached documentation as provided by the

applicant, and considers it of adequate quality to be released to the public, but does not endorse the content.

Country: Democratic Republic of Congo

Sector: Manufacturing

Project Enterprise: Nymba Ya Akiba S.A.

Environmental Category: A

Date ESRS Disclosed: April 6, 2017

Status: Due Diligence

A. Project Description

Lucky Cement is requesting a MIGA guarantee for their US$66 million equity investment in

Nyumba Ya Akiba S.A. (NYA), against the risks of Expropriation and Transfer Restriction, for

a period of up to 10 years. NYA is a 50:50 joint venture between Lucky Cement Limited (LCL) of

Pakistan and Groupe Rawji of the Democratic Republic of Congo (DRC). The company is

headquartered in Kinshasa. Groupe Rawji is a DRC based multinational company with interests in

logistics, banking, manufacturing, trading, real-estate development and port operations. Outside of

DRC the Group also has operations in Angola, Belgium, China, Dubai, Germany, India, Nigeria,

and South Africa. LCL is Pakistan’s largest producer of cement with a production capacity of 7.75

million tons per annum (tpa). LCL currently has two operational plants in Pakistan and employs

over 2,200 employees. LCL is also a joint venture partner in an 871,000 tpa cement grinding facility

in Basra, Iraq.

LCL, through the NYA joint venture, has developed a greenfield cement project in the Songologo

Region of the Bas-Congo Province of DRC, approximately 250 km south-west of Kinshasa, the

capital city of the DRC (“the Project”). The N1 (the main Kinshasa-Matadi port highway) passes

around 2 km from the project site, while the main Kinshasa – Matadi national railway line passes

through the Project site, south of the plant site. IFC provided an investment into the Project in 2014

(see IFC disclosure here: https://disclosures.ifc.org/#/projectDetailESRS/1207), and site

preparation and construction began in late 2014. Construction is now complete, and commercial

operations commenced in early-December 2016.

The key components of the Project include: a cement plant (with a production capacity of 1.18

million tpa); limestone quarry (to be exploited using opencast mining); overburden storage; storage

silos for ground cement (2 silos with a capacity 15,000 tons each); waste management facilities;

https://disclosures.ifc.org/#/projectDetailESRS/1207

Environmental and Social Review Summary -2 - April 6, 2017

Nymuba Ya Akiba / Democratic Republic of Congo

access and haul roads; and employee accommodations. A 220 kV power line (6 kilometers), which

was constructed to provide power to the Project, is considered an associated facility (as defined by

MIGA’s Performance Standard 1). The Project relies on existing public road (N1 highway) and rail

infrastructure (to and from Matadi Port) to transport raw materials and the finished product to and

from the plant. Limestone, clay and laterite will be mined, crushed and mixed with sand in the

clinker production process, which will then be milled at an on-site grinding plant with limestone

and (imported) gypsum to produce cement. A fully mechanized opencast method of mining will be

used, utilizing excavator dumpers and deep-hole blasting. The clay present in the top layers of the

deposit will also be used as part of the cement production process. The expected life of the mine is

at least 40 years. The plant will have the capacity to bulk-load cement for commercial clients as

well as to package and load cement in bags for sale in local retail markets.

NYA holds a lease of 28.56 km2 under an exploration permit and the total footprint of the project

will be approximately 1.5 km2 (150 ha). Land concession rights have been issued for occupation of

the land. The area in which the project is located is largely degraded and is considered a modified

habitat. It is rural in nature and characterized by a lack of development or infrastructure.

Approximately 10,000 people are estimated to live in the broader vicinity of the proposed project.

There are 7 small settlements in the area, including Yuku, Kokolo, Nkonda, Mbemba, Kinsua,

Mbamba and Minkelo.

The construction was undertaken by multiple contractors for civil, mechanical and electrical works.

Both international (Pakistani and European) and local sub-contractors were used. Three Congolese

sub-contractors are also involved in sourcing the local workforce for the Project. NYA is

responsible for Operations and Maintenance of the Project. NYA employs national third-party sub-

contractors primarily for the transport of coal from the port of Matadi and partial removal of

overburden at the quarry

B. Environmental and Social Categorization

This is a Category A project according to MIGA’s Policy on Environmental and Social

Sustainability (2013) because it has potential adverse environmental and social risks and/or impacts

that are diverse and irreversible.

The environmental and social risks mainly relate to; i) Water: Potential impacts on the surficial

water bodies in the vicinity of the project due to groundwater abstraction and contamination related

to improper disposal of waste and discharge of untreated process water to these water bodies; ii)

Biodiversity: Potential impacts on the aquatic biodiversity of the surficial water bodies in the

vicinity of the project and loss of provisioning ecosystem services (fishing) to the local

communities due to groundwater abstraction and contamination related to improper disposal of

waste and discharge of untreated process water to these water bodies. In addition there are potential

impacts (yet to be quantified) associated with the swamp and gallery forests of the Yuku River due

to the haul road placement; iii) Resettlement: A limited number of households will be physically

and economically displaced; and; iv) Community Health and Safety: Substantial traffic during both

construction and operations has the potential to impact on the health and safety impacts on the local

communities. Environmental and Social Management Plans have been developed for the

management of these impacts.

C. Applicable Standards



While all Performance Standards are applicable to this investment, based on our current

information indicates that the investment will have impacts which must be managed in a manner

consistent with the following Performance Standards:

PS1: Assessment and Management of Environmental and Social Risks and Impacts

PS2: Labor and Working Conditions

PS3: Resource Efficiency and Pollution Prevention

PS4: Community Health, Safety and Security

PS5: Land Acquisition and Involuntary Resettlement

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resource.

PS7 and PS8 are not applicable to this investment as there are no Indigenous People (as defined in

MIGA’s Performance Standards) and no Cultural Heritage issues, respectively, in the Project area

have been identified from the documents reviewed and the site visit. A Chance Find Procedure has

also been prepared.

In addition, the WBG EHS General Guidelines and Guidelines for Cement and Lime

Manufacturing apply to this Project.

D. Key Documents and Scope of MIGA Review

MIGA’s environmental and social due diligence of this project largely relied on the due diligence

previously undertaken by IFC, and IFC’s ongoing supervision of the Project. In addition to the

documents previously disclosed by IFC, the following documents were reviewed by MIGA:

Draft Environmental and Social Monitoring. Nyumba Ya Akiba – Cement Plant. Report

from 6th Visit, February 2017 (ERM prepared for NYA, IFC, AfDB, FMFM, EKF and

HBL).

Environmental and Social Monitoring. Nyumba Ya Akiba – Cement Plant. Report from

4th Visit, March 2016 (ERM prepared for NYA, IFC, AfDB, FMFM, EKF and HBL).

Environmental and Social Performance Monitoring Report (Semi-Annual) – January –

June 2016. (Prepared by NYA for IFC, AfDB, FMFM, EKF and HBL).

Information from IFC supervision missions between 2014 and 2017.

Five Year Water Management Master Plan, October 2016;

Final Biodiversity Action Plan (BAP), October 2016;

Final Restoration protocol, October 2016; and

Traffic Management Plan, September 2016.

ESIA Addendum Report (SRK, December 2014)

Security Risk Assessment (July 2014)

Communicable Diseases Plan (June 2014)

Construction Management Plan (June 2014)

Labor and Human Resources Plan (June 2014)

Occupational Health and Safety Plan (June 2014)



Green House Gases Management Plan (June 2014)

Waste Management Plan (June 2014)

Emergency Preparedness and Response Plan (June 2014)

Sustainable Development Plan (May 2014)

Stakeholder Engagement Plan (December 2014)

Community Health and Safety Plan (December 2015)

Grievance Mechanism Report (November 2014)

Malaria program (undated)

Internal grievance mechanism (August 2015)

Resettlement Action Plan (January 2016)

E. Key Issues and Mitigation

The following information is based largely on IFC’s appraisal of the Project, however, where

relevant, updated information is provided.

PS1: Assessment and Management of Environmental and Social Risks and Impacts

Environmental and Social Assessment:

The Project was approved by local authorities in 2011, following an Environmental Impact

Assessment (EIA) by an accredited local consultant, OEMS. Although this met DRC legislative

requirements, it did not meet lender requirements; therefore an Environmental and Social Impact

Assessment (ESIA) was commissioned and submitted in March 2013 by the Pakistani consulting

firm ECTECH. The lenders subsequently engaged ERM, a recognized international environmental

consulting firm, to undertake an environmental and social due diligence of the Project. This due

diligence identified further gaps between lender requirements and the March 2013 ESIA. To

address these gaps, NYA appointed SRK, another recognized international environmental

consulting firm, to prepare an ESIA Addendum and updated Environmental and Social

Management Plan (ESMP) in line with the requirements of the IFC Performance Standards. The

SRK ESIA did not constitute a complete revision of the ECTECH ESIA but rather focused on

addressing the gaps identified where possible, and noting remaining gaps requiring further

investigations. Measures to address these gaps were summarized in an agreed Environmental and

Social Action Plan (ESAP). Many of these studies have now been undertaken, and their findings

are provided in the appropriate sections below.

A separate ESIA was undertaken and approved by the government prior to construction of the

associated 220 kV transmission line.

The potential exists for cumulative impacts related to transport and influx of workers, and air

quality due to the proposed Project. There are 2 other cement facilities in the vicinity of the Project

– a new 1.25 metric tpa cement plant PPC (a South Africa cement producing company) is

developing some 30 km east of the Project site and Cimenterie de Lukala (CILU), an existing

cement facility is situated at Lukala, approximately 37 km east of project site on the road to

Kinshasa. A high level assessment of cumulative impacts was undertaken as part of the initial ESIA,

and then further assessment was included in the ESIA Addendum.

https://www.miga.org/Documents/SPGDisclosures/DRC%20-%20Lucky%20Cement%20ESAP%20For%20Disclosure%20.pdf

https://www.miga.org/Documents/SPGDisclosures/DRC%20-%20Lucky%20Cement%20ESAP%20For%20Disclosure%20.pdf



Management Program and Monitoring:

LCL has in place a comprehensive environmental management system which is strictly applied at

all operations in Pakistan – both of which are certified against ISO 14001. The company is also

committed to provide a safe work environment to its employees and conducts risk assessments on

an ongoing basis to identify all risks that may cause harm in the workplace. Thus, to build up the

management systems for NYA, the company is relying on expertise at the LCL corporate level in

Pakistan, and from consultants.

As of February 2017 (the most recent Independent Environmental and Social Monitoring Report),

NYA is still in the process of establishing an internal structure to implement their environmental,

social, health and safety managements (ESMS). NYA has a Sustainable Development Policy; a

Health and Safety Policy; and a Human Rights Policy in place. The Sustainable Development

Policy states that NYA is committed to responsible management practices that avoid and minimize

adverse health, safety, social and environmental impacts, and aim to enhance the benefits associated

with its activities, products and services.

As part of the ESIA, SRK developed a series of Environmental, Health and Safety (EHS)

management plans. These include: A Labor and Human Resources Plan (LHRP); Occupational

Health and Safety Plan; Community Health and Safety Plan; Green House Gas (GHG) Emission

Assessment and Management Plan; Waste Management Plan; Emergency Preparedness and

Response Plan (EPRP); Stakeholder Engagement Plan; and a Framework Resettlement Action

Plan. These high level plans were further developed into a series of detailed plans, including

Construction Management Plan; Communicable Diseases Plan; Greenhouse Gases Management

Plan; Sustainable Development Plan; revised Community Health and Safety Plan; Grievance

Redress Mechanism; Resettlement Action Plan (RAP); Traffic Management Plan; and Chance Find

Procedure. The February 2017 monitoring report, however indicates that in addition to these plans,

the Project is still working to develop tools and procedures to support ESMS implementation.

Procedures for the development and operation of the quarry have also been prepared, including

procedures related to safety; excavation of soil; dust management; and truck driving.

The Project has initiated the process to certify the EHS management system according to ISO 14001

and OHSAS 18001. Certification was expected by mid-2017, however it has been postponed to

ensure that the management plans developed toward the end of 2016 are being fully implemented.

Organizational Capacity and Training:

During construction, environmental and social aspects on site were managed by the Sustainable

Development Manager, who was supported by an EHS advisor; 4 coordinators (NYA health and

safety coordinator; health and safety coordinator for sub-contractors; social coordinator; and

environmental coordinator); and 5 officers who report to the coordinators (safety officer;

community liaison officer; RAP officer; and 2 environmental officers). Each sub-contractor also

had a safety representative on site. Subcontractors working on site are integrated within the Project

ESMS and are working under the authority of the Project EHS team. For operations, NYA has an

established environmental, health & safety, and social team (also named EHS Team,

approximately 20 staff) headed by the Environmental, Health & Safety, Security and Admin

manager and his Deputy, who report to the NYA site General Manager.



There were initially communication issues on site – as few of the expatriate sub-contractors could

speak English or French, and few of the local employees could speak Urdu. EHS documents,

though, have now been translated into all three languages and translators have been hired to assist

teams.

The EHS capacity of staff on site is still improving. The EHS team on site developed an induction

presentation (in English, French and Urdu) that is now shared with workers before they start

working on site. Training sessions are held on site. From September 2015 to March 2016, training

in hazard identification and ISO14001 / OHSAS 18001 requirements was held. Toolbox talks are

also held once per week, and typically focus on health and safety. The Lender’s Action Plan

developed in the February 2017 monitoring report recommends strengthening the internal EHS

training programs.

Emergency Preparedness and Response:

NYA has developed an Emergency Preparedness and Response Plan as per the requirements of

DRC’s Mining Code and the Performance Standards. This plan provides a description of the risks

and associated response to potential incidents such as medical emergencies, fires, nonscheduled

explosions, vehicle accidents, hazardous materials spills/release, security, as well as natural

disasters. Emergency and evacuation drills are scheduled to be undertaken every 2 months. The

drills are documented and any deficiencies and related corrective actions are identified.

Monitoring and Review:

An environmental monitoring plan and a social monitoring plan are provided in the ESIA. These

were developed based on compliance with environmental standards as prescribed by the DRC

Mining Regulations and the World Bank Group (WBG) EHS Guidelines. Monitoring of

environmental and social issues such as drinking water quality, surface water quality, treated

sewage effluent quality, noise, air quality, etc. is included in the various management plans as

described above. NYA will include results of its monitoring activity in the Annual Monitoring

Report (AMR) to be submitted to MIGA on an annual basis.

Grievance Mechanism

A grievance mechanism has been established for the Project. Grievances are collected either by

mail boxes that have been established in the surrounding villages or via the Cadre de Concertation

Permanent’ (the consultation committee comprised of representatives of the affected

communities). Once collected, the complaints are processed on site by the social team (social

coordinator; community liaison officer and RAP officer). Monitoring indicates that this mechanism

is functioning. The primary complaints received are regarding the number of local employees /

employment opportunities; recruitment practices of the local sub-contractor responsible for

recruitment; and working conditions.

PS2: Labor and Working Conditions

At the peak of construction there were approximately 1,250 people employed by NYA and sub-

contractors – approximately 50 in the head office in Kinshasa and 1,200 at site. Of these,

approximately 50% were expatriate and 50% were Congolese. About 80 employees (65 Congolese

and 15 expatriate) were permanent NYA employees, the remaining employees were hired on



temporary contracts as consultants (expatriate employees) or daily workers (Congolese). During

operations, there are approximately 700 people employed on site and 50 in the head office. Local

daily workers are engaged via various local sub-contractors.

Human Resources Policies and Procedures:

NYA has a Human Resources (HR) Policy and a HR Manual was developed by the head of NYA

HR as well as a Workers’ Code of Conduct, applicable to all contractors and subcontractors

employing workers on site. A HR Manager has been recruited permanently on-site. The policy and

procedures relate to contracted employees during construction as well as operational staff, and

cover general conditions of service; recruitment procedures; remuneration and compensation

procedures; training and development; dispute settlement procedures and a policy on rights of

association and bargaining. In terms of protecting the workforce (child labor and forced labor),

NYA has included a Human Rights Policy within the LHRP that commits to ensuring fair treatment

and work conditions for all employees, including rights to association and collective bargaining

and prohibit forced, compulsory or child labor.

Congolese workers employed directly by NYA have employment contracts which include terms of

employment, such as working hours and penalties. There is currently no workers union or collective

bargaining, but there is nothing in employment contracts or the company’s by-laws to restrict

employees from forming or joining a union. Pakistani expatriate workers (both permanent and

consultants) are hired with the support of Lucky Cement in Pakistan. Their contracts also include

terms of employment, such as working hours, holidays and repatriation. The term of employment

is typically one year.

Congolese daily workers are employed via three interim companies, though written employment

contracts and records are also maintained by NYA. Daily workers went on strike for 3 days in early

2016 due to delays in payments from 2 of the interim companies to the workers. In response, the

NYA HR Department has revised the contracts with the interim companies to better define the

required labor conditions.

While there is no requirement for interim companies to hire workers from local and affected

communities, NYA has requested in writing that preference be given to local employees. The NYA

HR team keeps statistics on local employment, and regularly shares these statistics with the

community. Meals are provided for all workers on site (including daily workers) at no additional

cost.

As per the requirements of the ESAP agreed with IFC, a third-party labor and OHS audit was

undertaken in October 2015 by Okapi Environment, a local consulting firm. The audit identified a

number of non-compliances, particularly related to proper use and wearing of PPE; need for risk

assessments and emergency evacuation drills; improvement in incident reporting procedures;

improvement in workers accommodation; and recording of proportion of expatriate workers. An

action plan was developed to address these issues, which was subsequently implemented by the

Project.

Grievance Mechanism:

An internal grievance procedure was developed in August 2015 by the Project’s HR department.

This procedure, which applies to both direct employees and sub-contractors, has been presented to



all workers on site. A review of the system undertaken by ERM indicated that both local and

expatriate employees use the mechanism (grievances have been received in both French and Urdu).

The grievance mechanism is implemented by a grievance committee, which was established by the

HR department. The committee is responsible for communication of the mechanism to employees

and sub-contractors; complaints logging, processing and tracking; and ensuring redress.

Occupational Health and Safety:

An Occupational Health and Safety (OHS) Plan for both construction and operations was prepared

by the Project in July 2014, and sub-contractor contracts require them comply with the Project OHS

Plan. The plan references DRC, IFC and AfDB requirements. Implementation of the OHS Plan was

identified to be weak during early construction, and corrective actions were put in place to improve

implementation. As of December 2016, there were 7 health and safety staff on site – as indicated

above, 3 employed by NYA and one employed by each of the sub-contractors. The review

undertaken by ERM in March 2016 indicated that the authority of the safety officers was recognized

by the rest of the staff, and that these officers had the authority to stop work if they saw unsafe

conditions. Monitoring indicates that the number of health and safety accidents and incidents

significantly decreased from early 2015 to the end of 2016. However, while some training has been

undertaken, additional training is still required. The Project has developed and implemented several

health and safety procedures to address identified risks, such as a “Lock Out / Tag Out” procedure

(preventing accidental startup of hazardous machinery), to address identified risks.

The Project has a procedure in place to record, document and communicate on site health and safety

incidents. The incidents are divided in different categories including first aid, medical treatment,

incidents and lost time injury. There is a medical team on site, which consists of one doctor and 4

nurses.

Worker Accommodation:

During construction, employees were housed in temporary accommodation, including

prefabricated buildings; temporary concrete buildings and tents at two temporary camp sites.

Additionally, some houses were also rented in the city of Kimpese for Congolese management

staff. Transportation is provided for the workers living in Kimpese. For operations, there are 2

camps on site – the first houses approximately 250 people and another houses approximately 70

people. Recent monitoring indicated that both camps are largely in compliance with IFC / EBRD

Guidance Note on Worker’s Accommodation. There are 5 kitchens on site: 3 kitchens for

expatriates and 2 for Congolese. The drinking water for the camp is pumped from both surface

water and a well installed on site. Drinking water is treated with charcoal filters and UV rays, and

is tested regularly.

PS3: Resource Efficiency and Pollution Prevention

Resource Efficiency:

Power supply for the Project is obtained from the DRC national energy grid via a new 6.6 km,

220kV power line from the Kwilu substation to the plant site. Maximum power demand for the

proposed cement plant is approximately 16.5 MW. The electricity is mainly used in the cement



production, namely; cement production plant, cement grinding, clinker production, packing and

dispatch, etc. Back-up power is provided, if needed, by an 800 kVA 400 Volts 50 Hz diesel

generator. When used, the back-up generator will only support essential plant equipment and

emergency lighting and will not maintain operation of the plant as a whole (including the kiln).

The clinker production and cement grinding facilities have been built according to the Best

Available Technologies defined for the cement industry, which include the adoption of preheating

and pre-calcining technology in the clinker production and de-dusting bag filters for gases. At full

production, the clinker production plant will consume approximately 396 tons/day or 118,800

ton/yr of coal which is imported from South Africa through the port of Matadi. The coal is

consumed exclusively in the calcining process. Coal will not be used for electricity generation (as

indicated above – electricity will be sourced from the grid). The clinker plant has a predicted

thermal energy efficiency performance of 730 kcal/kg of clinker and an electrical power

consumption of 57.0 kWh/ton clinker, which is within industry standards established by the

European Union. In addition to coal, provision has been made to use heavy fuel oil for start-up and

in case of an emergency.

Combined electricity consumption per ton of bagged cement, including clinker production,

grinding, blending and bagging is approximately 90 kWh per ton of cement, which compares

favorably to the industry standard of up to 105 kWh/ton cement.

The plant is based on a dry process with water only needed for cooling purposes, dust suppression

on roads, and domestic water usage. The estimated water consumption is 1,080 m3 per day

(approximately 750 m3 for the cement plant and the rest of dust suppression and domestic use).

Water is pumped from the Sansikwa River that flows on the eastern side of the quarry concession

area, and is treated at a water treatment plant prior to use. Water is stored in a combination of

underground and over-ground tanks, and is recirculated after cooling for use in plant equipment.

Solid Waste Management: The Project will produce a wide range of waste from its operations,

including office and household solid waste and non-hazardous industrial waste (paper, packaging

material, kitchen waste, building rubble, non-hydrocarbon filters, etc.); salvageable/recyclable

material (scrap metal, pipes and scrap wood); hazardous waste (used hydrocarbons, expired

chemicals, paints, lead batteries etc.); medical waste; waste water; and top soil and overburden. All

waste will be managed according to the Project Waste Management Plan (June 2014).

Domestic waste is currently collected in metal/ plastic bins installed around the camp site. The

waste is sorted (organic, general and recyclable) and stored at an on-site waste storage area. Organic

waste and general waste is disposed of in an unlined landfill on site. Recyclables are stored on site

until they are picked up by contractors for reuse or recycling. Hazardous materials, such as used

oil, filters and oily rags, are stored on site and then given to the informal market to be reused.

Medical waste is stored in plastic bottles at the dispensary and are transferred to the hospital in

Kimpese for disposal. During operations, most of the general waste produced is co-processed in

the cement plant oven.

Topsoil and overburden from the quarry is stored for eventual reuse for quarry reclamation as the

quarry operation proceeds. NYA has a Mine Closure plan which focuses on the end state of the

operations for closure. The plan, which will be implemented at the start of production and thereafter

updated on a regular basis, was prepared in accordance with the DRC requirements and WBG EHS



Guidelines for mining. The closure plan includes details on decommissioning, rolling quarry

management, overburden and topsoil storage and reapplication and restoration. According to the

closure plan project infrastructure that has no post-closure use (such as the plant equipment) will

be removed whilst the quarry and overburden site will be appropriately re-vegetated and secured

to prevent inadvertent access by humans and animals.

Wastewater Management: For construction and operation, the domestic sewage is disposed of via

a number of septic tanks/soakaways (approximately 15). These solutions, however, are not

sustainable given the amount of sewage generated, and therefore NYA is currently exploring

alternative solutions, including installation of additional septic tanks or a pre-fabricated sewage

treatment plant.

In 2016, three reports were prepared by an international consulting firm summarizing the output of

hydrological and hydrogeological studies and providing guidance on the monitoring of water

quality during the operations phase. The reports also provided different options related to

dewatering of the quarry and water discharge and use. Based on these reports, a ‘Five Year Water

Management Master Plan was prepared for the operations phase. A groundwater monitoring

program has also been developed, and monitoring wells have been placed at critical locations.

Hazardous Materials Management: During construction, hazardous materials, including lubricating

oil and grease, were stored in drums on site in a covered area with an impermeable base. For

operations, coal and fuel storage areas have been developed. Coal storage areas are covered, and

have a 50,000 ton capacity. Some fuel is stored in underground storage tanks, designed in

accordance with recognized industry standards, and some fuel is stored in special purpose above

ground fuel tanks. The underground storage tanks are double skinned and are equipped with a

continuous leak detection system. Approximately 27,000 liters and 3,000 kg of oils and greases

respectively (of various types) are required on an annual basis for operation of the plant. These are

stored in enclosed containers at the plant site, as per the manufacturer’s instructions.

A hazardous chemicals store is located within the plant area. Recent monitoring identified some

gaps in compliance between current storage and the requirements of WBG EHS guidelines. Actions

have been identified to address these gaps. The quarry operation requires the use of explosives.

Explosive usage is strictly regulated by the authorities, and the Project follows all national laws

and regulations in this respect. The storage for explosives has been established in a remote location,

is fully fenced and guarded by security 24 hours per day / 7 days a week to avoid any interference

with routine operations.

Air Quality: Prior to construction of the Project, the air shed in the project area was fairly un-

degraded, as there was no industrial or commercial activity in the vicinity of the Project. Primary

sources of air emissions from the implementation of the project will include particulates from

quarrying, raw and finished materials as well as fuel combustion. Water based dust control

measures are implemented within the perimeters of the quarry, on access roads and at the plant,

where evacuation and filtration systems are not practical. Watering is conducted to reduce the dust

concentrations to below the WBG EHS Guidelines for Cement and Lime threshold of 50 mg/Nm3

within the quarry area.



All plant units have dust control measures installed (e.g., bag filters at all emission points and

electrostatic precipitators for the clinker cooler with guaranteed emissions of 20mg/Nm3 and

30mg/Nm3 respectively). The equipment supplier has guaranteed that these filters will achieve

maximum emissions of 20 as well as 30 mg particulate/Nm3 which is consistent with WBG EHS

Guidelines.

Apart from particulate emissions, other major point source pollutants in the cement manufacturing

process are sulfur dioxide and nitrogen oxides, which are related to the operation of the clinker kiln.

Sulfur dioxide emissions are expected to be low, as the alkaline conditions in the clinker kiln will

result in the absorption of the majority of the sulfur entering the systems either through the raw

materials or the fuel. The sulfur dioxide emissions are not expected to exceed WBG EHS

Guidelines value of 400 mg/Nm3. However, a detailed monitoring over a full 12 months is being

carried out to provide information on air quality and assist in predicting routine and upset impacts

that require management. The baseline air quality study will also assess the potential for cumulative

impacts on air quality taking into account the new PPC plant; though this is considered unlikely at

this stage taking into consideration it is located some 30 km distant. The Project has a plan in place

to continuously monitor particulate, SOx and NOx emissions at the main stack and ambient air

quality in local communities. The results of this monitoring will be provided to MIGA in the Annual

Monitoring Report.

Greenhouse Gases (GHG): The Project is expected to produce approximately 950,000 tCO2e per

year. A GHG Management Plan was developed with measures including energy efficiency

improvements, raw material substitution and use of alternative fuels. GHG emissions will be

quantified on annual basis and reported to MIGA in the Annual Monitoring Report.

Noise: Primary sources of noise from the Project includes excavation, blasting, drilling, road

vehicles engine and movement, stockpiling, and loading and unloading of rock into dumper trucks.

As the residences closest to the quarry have been relocated, there are no sensitive receptors in the

immediate vicinity of the quarry. Quarry operation activities are mainly carried out during day-

light only. In-plant shielding of noise emissions have been adopted to ensure that noise levels at

the boundaries are within the regulatory limits. In addition to this, NYA has also adopted good

practice methods in the prevention and control of noise, including having all equipment for the

plant designed to operate with low noise levels, without exceeding the maximum allowable noise

level for the surrounding receiving land use. Noise monitoring is undertaken regularly at the site

boundary and at sensitive receptors near the plant site.

PS4: Community Health, Safety and Security

Infrastructure and Equipment Design and Safety: Potentially negative community health impacts

stem from dust and noise due to the movement of heavy equipment, materials and project personnel

during construction. During operations, blasting and heavy trucks transporting raw and processed

materials will affect the population of rural villages and settlements located within a few kilometers

of the cement plant, and along nearby roads which will be important conduits for importing raw

materials and exporting the finished product i.e., cement.

A ‘Community Health and Safety Plan’ was developed in June 2014 and updated in March 2015

and again in December 2015. The next update of the plan is scheduled for the first quarter of 2017.



Traffic: Potential impacts of increased traffic and associated safety issues were found to be of major

significance in the ESIA, reduced to medium with proper mitigation. A Traffic Management Plan

was developed and implemented for the construction phase, which included the installation of

speed limitation and traffic control signs, speed bumps, construction of sidewalks and alternative

pedestrian routes, and driver training. A Traffic Management Plan has also been developed for the

operations phase, which includes the design of the plant internal waiting area sufficiently large to

accommodate 200 - 300 trucks per day. This area is secure and will be provisioned with sanitation,

food services, and other small shops so as to minimize if not eliminate the need for waiting truckers

to enter nearby villages for such services.

Blasting Management: Blasting and storage and handling of explosives is undertaken in accordance

with the relevant international guidelines and DRC regulations. Potential impacts of blasting on

surrounding communities is covered in the Community Health Management Plan and in the

Emergency Preparedness and Response Plan.

Community Exposure to Disease: The increased potential for the spread of communicable diseases

such as HIV/AIDs and other STDs linked to the influx of predominantly male job-seekers and

workers was rated as of low significance in the ESIA for both the construction and operation stages.

The Community Health and Safety Plan provides measures for reducing potential exposure and

spread of infectious diseases including HIV/AIDS and other STDs, or malaria. The medical staff

on site provide HIV/AIDS and other STD sensitization training to workers and a strong vector

control program is in place on site and at the worker accommodation.

Emergency Preparedness and Response: As mentioned above, the Project has prepared an

Emergency Preparedness and Response Plan (EPRP) in response to the requirements of DRC’s

Mining Code and the requirements of the Performance Standards. The EPRP includes external steps

for setting up lines of communication for external liaison and reporting, including coordination

with emergency services, where they exist and appropriate communication with the media and

reporting to, and liaison with the media. The EPRP is based on the assumption that there will be

limited external emergency services available, and therefore NYA’s emergency procedures need

to be robust and self-sufficient.

Security Arrangements:

A Security Risk Assessment was undertaken in October 2015 by the NYA security Manager. This

security assessment was comprehensive and provided a clear risk matrix and control measures. The

assessment included a Security Management Plan, which was implemented during the construction

phase, and is now implemented during the operations phase. To support implementation of the plan,

a series of security procedures have been developed. The Project has engaged an international

security contractor to provide security guards for the site. National Police Officers also provide

security for the site. The National Police Officers based at the site are managed by the international

security contractor.

PS5: Land Acquisition and Involuntary Resettlement

The project required the acquisition of approximately 150 ha of land for the construction of the

cement plant, the quarry, the overburden stockpile and other project facilities. Of this,

approximately 28 hectares were identified as currently owned/utilised by local communities and

requiring physical and/or economic resettlement. This, in combination with other project impacts



(dust, noise, safety etc.) will result in physical resettlement of one village of 9 households (Yuku

village), and economic resettlement of approximately 56 households.

Due to the fact that the project footprint was not finalized at the time of the ESIA, a Framework

Resettlement Action Plan (FRAP) was developed, with a view to developing Resettlement Action

Plans (RAPs) and/or Livelihood Restoration Plans (LRPs) once the footprint is finalized. The

detailed RAP was completed in January 2016. A census and asset inventory was undertaken by

SRK in June 2013. This was done in the presence of a local government authority and owner of

each asset/facility/field, and based on a sound methodology in line with PS5 requirements, and

appropriate stakeholder consultation; however, detailed measurements for the fields associated

with the final footprint must still be undertaken. This was incorporated into the detailed RAP.

Compensation and Benefits for Displaced Persons: All assets will be compensated for based on an

agreed entitlement matrix. The principles for this entitlement matrix were determined in the FRAP,

and a detailed entitlement matrix was developed as part of the RAP process. A review of RAP

implementation undertaken in November 2015 indicated that resettlement and compensation was

undertaken according to the RAP and the requirements of IFC PS 5. The review also indicated that

all compensation payments had been made, but physical relocation had not occurred yet. Physical

relocation took place in early 2016.

The selection of a host site for the resettlement of Yuku village was undertaken in conjunction with

the chief of Mbemba Village, to which Yuku is affiliated. This site is located very near to the

Mbemba Village and, according to the chief as discussed during the site visit, will satisfy the needs

of those from Yuku, while not causing negative impacts for those in Mbemba Village.

NYA did not provide affected households with cash compensation for housing structures and

agricultural land; rather they provided like-for-like assets. A Livelihood Restoration Plan (LRP)

was developed and is being implemented with the assistance of two local NGOs. The LRP includes

agricultural enhancement programs; health and hygiene programs; and assistance programs for

vulnerable households. Implementation of the RAP and LRP, including maintaining contact with

affected communities and supervision of the two NGOs, is the responsibility of the Project’s RAP

Coordinator.

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resource

The area in which the project is located is considered a modified habitat. The area mainly consists

of savannah grasslands with a few scattered trees. It has been modified for many years due to

grazing, agriculture, charcoal production, etc. Despite modification, remnant patches of more intact

habitat, such as swamp and gallery forests along the Yuku River and small patches of wetlands

exist. As a condition of IFC’s investment in the Project, an updated biodiversity assessment was

undertaken as part of the ESIA Addendum Report (December 2014). This assessment indicated

that two freshwater habitats potentially affected by the Project (Kawenga Lake and Yuku Stream)

could potentially be considered critical habitats according to PS 6. Kawenga Lake, which is located

adjacent to the cement plant site, is largely in a natural ecological state. The presence of a rare

colonial ciliate Ophrydium indicates that the Lake likely supports subterranean aquatic biota,

however the assessment undertaken in 2014 was not able to collect further data on this aspect. Yuku

Stream was identified to support an unusual composition of diatoms and aquatic



macroinvertebrates. To confirm whether either habitat could be considered ‘critical habitat’

according to PS 6, NYA engaged a consultant to undertake targeted biodiversity studies during

both the wet season and the dry season. Field work was undertaken in late 2015 and mid-2016, and

the results of these studies were compiled into a detailed Biodiversity Action Plan (BAP), which

was completed in October 2016. The surveys indicated that the two freshwater habitats did not

qualify as ‘critical habitat’. Despite being modified habitat, however, both habitats were found to

be in good ecological state. The surveys also indicated that Yuku Steam supports an unusual

composition of diatoms and aquatic macroinvertebrates. Therefore, the BAP has been designed to

achieve no net loss of biodiversity in these habitats. A review of the BAP undertaken in February

2017 indicated that the BAP is fairly comprehensive, except that an additional inventory of species

is still pending. BAP implementation commenced in 2017, and progress is being closely monitored

by NYA and lenders.

Ecosystem Services: The communities in the area are reliant on the provisioning and regulating

ecosystem services in the project area. Natural resources regularly used by local residents include

wood, fish, and wild animals, building materials, medicinal plants, grazing for livestock and potable

water. Many of the resources in the area are being depleted due to pressure from unsustainable

agricultural practices. The significance of ecosystem services during project implementation,

operation and decommissioning were assessed during the detailed biodiversity studies and

livelihood restoration assessment. Based on the findings, ecosystems services related mitigation

measures were incorporated into the LRP and BAP.

F. Environmental Permitting Process and Community Engagement

As indicated under PS 1, the Project submitted an EIA to the Government as per DRC laws in 2011.

This EIA was approved, and the project was provided with a permit to construct the Project. The

Project has also received appropriate permits for Project operation.

Community Engagement: Appropriate engagement was undertaken with PAPs and relevant

stakeholders during the FRAP process, and a Stakeholder Engagement Plan (SEP) was developed

for the Project in December 2014. The SEP summarizes the plan for engaging with project

stakeholders and engagement activities undertaken up to December 2014. Additional engagement

with physically and economically displaced people took place throughout 2015 and 2016, and the

SEP continues to be implemented. All meetings are formally recorded in meeting minutes. As part

of the SEP, a Community Grievance Mechanism was prepared. The document, available in English

and French, describes the main principles and tools of an efficient grievance mechanism. A

simplified version of the mechanism has been disclosed via posters in local language in the

surrounding villages. Review of implementation of the grievance mechanism undertaken in

February 2017 indicated that it was functioning. Primary grievances are related to job opportunities

for local residents.

MIGA supports its clients (as defined in MIGA Policy on Environmental and Social Sustainability)

in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities.

In addition, Affected Communities have unrestricted access to the Compliance

Advisor/Ombudsman (CAO), the independent accountability mechanism for MIGA. The CAO is mandated to address complaints from people affected by MIGA-guaranteed business activities



in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of MIGA. Independent of MIGA management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of MIGA’s environmental and social performance through its compliance arm.

Complaints may relate to any aspect of MIGA-guaranteed business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of a MIGA-guaranteed business activity. Complaints can be submitted to the CAO in writing to the address

below:

Compliance Advisor/Ombudsman International Finance Corporation 2121 Pennsylvania Avenue NW Room F11K-232 Washington, DC 20433 USA Tel: 1 202 458 1973 Fax: 1 202 522 7400

E-mail: [email protected]

G. Availability of Documentation

ESIA Addendum (December 2014);

Final Biodiversity Action Plan (October 2016);

Resettlement Action Plan (January 2016).

The above listed documentation is available electronically as PDF attachments to this ESRS at

www.miga.org. It is also available for viewing at the NYA office in Kinshasa.

For inquiries and comments about the project contact:

Christian NGOY NDOMBE

EHSS Manager

+243816139388

mailto:[email protected]

Nyumba Ya Akiba sarl

Immeuble Forescom 7ème Niveau, av.du Port N°4

Kinshasa GOMBE/RDC


https://www.miga.org/Documents/SPGDisclosures/1.%20ESIA%20Addendum%20Report%20(SRK%2018.Dec.2015).pdf

https://www.miga.org/Documents/SPGDisclosures/2.%20Final%20NYA%202016%20Biodiversity%20Action%20Plan%20-%20Oct2016.pdf

https://www.miga.org/Documents/SPGDisclosures/3.%20Resettlement%20Action%20Plan%2029Jan2016.pdf

http://www.miga.org/


Environmental and Social Review Summary - miga.org - Lucky Cement ESRS For... · Environmental and...

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