Adb BD If 2008 25 en Ethiopia Esia Derba Midroc Cement Project
Adb BD If 2008 25 en Ethiopia Esia Derba Midroc Cement Project
Adb BD If 2008 25 en Ethiopia Esia Derba Midroc Cement Project
Plant site
ETHIOPIA
OPSM
FEBRUARY 2008
ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
ESIA SUMMARY
1. INTRODUCTION
MIDROC HOLDING (Al-Muwakaba For Industrial Development and Overseas Commerce) is a large
company having many business interests in Ethiopia, Saudi Arabia and other countries.
DERBA MIDROC CEMENT PLC is proposing to establish a green field cement plant of capacity 5,600
tonnes per day (tpd) of clinker (cement capacity of 7000 tpd) based on Derba limestone deposit in
Ethiopia.
This ESIA Summary outlines the Summary of the Environmental and Social Impact Assessment (ESIA),
the Environmental and Social Management Plan (ESMP) and the Resettlement Action Plan (RAP)
formulated for the proposed project, which includes the cement plant, captive raw material mines,
proposed roads from the plant to the mines and from Derba village to the plant, belt conveyor from mines
to plant, water pipeline and the power transmission lines.
2. PROJECT DESCRIPTION
The cement plant is proposed to be located about 8 km from Derba village in Sululta Wereda in Shoa Zone
of Oromiya Regional State. The proposed mining area is located within the Aanda Weizero Peasant
Association in Sululta Wereda, Shoa Zone of Oromiya Regional State and is about 7 km (crow fly
distance) from the plant site.
The Derba Cement plant site is about 70 km from Addis Ababa the capital of Ethiopia. The coordinates
and elevations of the plant and mining areas are given below. The project location is shown in the map
below.
0 0 0 0
Coordinates : Latitude : 09 27’28” to 09 28’25”’N : Longitude : 38 34’31” to 38 35’23” E
Elevation of Plant site : 2380 m to 2420 m above Mean Sea Level (MSL)
Elevation of Mining area : 1550 m to 1650 m above MSL
Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC) will be manufactured at the
DMC Plant. Both the cements shall meet the requirements of Ethiopian National Standard No. EN-197.
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
OPC shall be produced as per CEM-I - 42.5 grade and shall contain 95% clinker and 5% gypsum. PPC
shall be produced as per CEM-II - 32.5 grade and shall contain 67% clinker, 28% pumice and 5% gypsum.
The annual cement capacity of the plant shall be 2.46 million tonnes per annum.
Cement consumption in Ethiopia during the period 1997-2007 has grown well, with a Cumulative Annual
Growth Rate (CAGR) of around 10% per annum (pa). In the last 5 years, the growth rate was around
16.1% pa.
The cement consumption for the year 2006-07 is estimated to be around 2.05 million tonnes. The demand
supply gap for cement has been estimated as given below.
Year Demand (million tonnes) Supply (million tonnes) Gap (million tonnes)
2007 2.05 1.75 0.30
2008 2.66 2.01 0.65
2009 3.38 2.82 0.56
2010 4.19 3.50 0.69
The proposed plant capacity is primarily based on market considerations and the availability of raw
materials. The proposed location enjoys the twin advantage of proximity to raw material sources as well as
market offered by the Addis Ababa, which is the capital and largest city of Ethiopia. Addis Ababa is also
an important trade center of East Africa.
DMC is expected to command a market share of around 37% in its 1st year of operation, which will
increase to 41% in its 4th year of operation. The plant will achieve 100% capacity utilization in its 4th year
of operations.
The raw material and fuel requirements for the proposed plant are to be met from different sources as
given below.
Distance
Sn Material Source Locality Remarks
from plant (km)
Raw materials
1 Limestone & Mugher 6.5 The crusher, located in the mine, would
Marl be connected to the plant by a 7 km long
belt conveyor.
2 Clay Mulu Seyo 18 Considered as a corrective.
3 Sand Mugher 15 Considered as a corrective.
4 Basalt Near Gimbichu 10 Considered as a corrective.
5 Gypsum Mugher 15 Considered as an additive
6 Pumice Dera Ararate/ Nazerat 125 Considered as an additive
Fuel
1 HFO Middle East - Transport by sea up to Djibouti port, land
2 Imported coal South Africa - transport 925 km
The limestone deposit at present is accessible by about 12 km foot track from Derba Cement plant site,
which is situated at a distance of 70 km from Addis Ababa.
The deposit is surrounded by Mugher river and its tributaries. Due to the natural topography of the area,
the limestone deposit lies in the valley (1550-1650 m above MSL) whereas the flat area where the plant is
proposed to be located is at an altitude of 2380-2420 m above MSL. There is a sharp fall in elevation of
approximately 800 to 850 m between the plant and the mining areas.
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
The best available technology, which is the dry process, shall be used for manufacture of cement. Cement
manufacturing consists of raw meal grinding, blending, calcining to form clinker and cement grinding. In
short, limestone and other materials containing calcium, silica, aluminium and iron oxides are crushed and
milled into a raw meal. This raw meal is blended and is then heated in the pre-heater to initiate the
dissociation of carbonate to calcium oxide and carbon dioxide. The meal then proceeds to the kiln for
heating and reaction between calcium oxide and other elements to form calcium silicates and aluminates at
a temperature up to 1450oC. The products
leave the kiln as a nodular material called
clinker. The clinker is inter-ground with
gypsum and other additives like pumice to a
fine product called cement. The adjacent
Figure shows the cement manufacturing
process from raw material quarrying to the
bagging of the cement.
The manpower requirement for operation of
the proposed plant is estimated as 474.
UTILITIES
The maximum power demand for the proposed plant is estimated at about 45 MVA. The power demand
will be meet from the national grid. The main feeder line passes near Chancho, where a sub-station will be
constructed and a power line drawn over 20 km.
Water supply will be met from ground water sources. Borewells will be located near Mulo Seya village
around 16 km away and pipelines will be laid up to the plant. The total requirement of water for the
project including drinking and sanitation is around 2,000 m3/day.
A Sewage Treatment Plant (STP) to treat sewage effluent will be installed. The STP will cater to the plant
and colony both and will have a capacity of 300 m3/ day.
A residential colony to provide accommodation for plant personnel will be built. The Colony will have
facilities like a health centre, school, shopping complex, recreation centre, guesthouse, gymnasium, sports
playgrounds, etc.
Ethiopia adopted its Constitution in 1995, which provides the basic and comprehensive principles and
guidelines for environmental protection, and management in the country.
The FDRE consists of the Federal State and Regional States. Proclamations 33/ 1992, 41/ 1993 and 4/
1995 define the duties and responsibilities of the Regional States which include planning, directing and
developing social and economic development programs as well as protection of natural resources.
The Environment Protection Authority (EPA) has established an Environmental Impact Assessment
system for Ethiopia including the preparation of Procedural and Sectoral Guidelines as a prerequisite for
the approval of new development activities and projects. The EIA Process as applicable to development
projects is detailed in the ‘Environmental Impact Assessment Procedural Guidelines Series 1’ of
November 2003. As per Schedule I of the Guidelines, both cement plants as well as mining projects have
significant environmental impacts, and, therefore, require a full EIA/ EA study.
The Derba Cement plant will be responsible for implementing environmental management plans at its
facilities in coordination with the Federal EPA and the Regional EPA for Oromiya Region. The
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
environmental performance of the project will be monitored on a regular basis through DMC’s own set up
and through external/ third party audits.
The proposed cement project falls under Category A as per IFC Performance Standards and its procedures
for project appraisals. The WB and IFC provide detailed guidelines for the EA process. As of April 30,
2007, new versions of the World Bank Group Environmental, Health and Safety Guidelines (EHS) are in
use. The EHS Guidelines also include sector specific:
EHS Guidelines for Cement and Lime Manufacturing
EHS Guidelines for Construction Material Extraction
In addition, IFC’s eight Performance Standards, viz., Social and Environmental Assessment and
Management System; Labour and Working Conditions; Pollution Prevention and Abatement; Community
Health, Safety and Security; Land Acquisition and Involuntary Resettlement; Biodiversity Conservation
and Sustainable Natural resource Management; Indigenous People; and Cultural Heritage, will be adhered
to throughout the operation of the project.
As per the Environmental and Social Assessment Procedures of AfDB, the proposed cement project
including its associated raw material mining operations and utility connections is classified as Category 1.
The projects assigned to Category 1 require a full ESIA, including the preparation of an ESIA report and
ESMP.
4.2 CLIMATE
The climate of the area is characterized by two distinct seasonal weather patterns; the wet season
extending from June to September, contributing about 70% of the annual rainfall, and the dry season
which covers the period from October to May. The minimum and maximum temperature in the area vary
from 9oC to 23.5oC. The average relative humidity during the year is 62%. The mean annual rainfall in the
area is about 1158 mm.
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
4.3 HYDROLOGY
A detailed hydro-geological study has been carried out in the area. The groundwater recharge of the study
area of 10 km radius around the plant and mining sites is estimated at 25 mio m3/ year. The total existing
abstraction in the area is 5.1 mio m3/ year, which is only 20% of the available groundwater resources. The
net available ground water in the area is 19.9 mio m3/ year. Thus it is safe to extract water from the area to
meet DMC’s total water requirement of 0.73 mio m3/ year (∼2000 m3/ day).
Surface water samples from three (3) rivers, three (3) springs and a river confluence and ground water
samples from six borewells in the area have been analysed for their physico-chemical properties. All
samples are within the stipulated WHO/ Ethiopian Standards.
4.7 ECOLOGY
4.7.1 Flora
The vegetation composition, abundance, cover, and other relevant ecological information of the areas has
been conducted. The study has covered both the core area, i.e., the plant and mining sites, as well as the
buffer area, i.e., an area of 10 km radius around the plant and mining sites.
The area is rich in species composition though the abundance and distribution is highly influenced by
anthropogenic factors such as crop cultivation, grazing, charcoal production and wood cutting for
domestic uses. A total of 241 floral species belonging to 79 families have been recorded in the buffer
zone. Most of these species are indigenous while a few others are exotic or naturalized. A total of 23
cultivated plant species and 60 medicinal plants were recorded in the buffer area. The plant species
encountered include 15 endemic species of which 5 are highly endangered and 10 are of least concern as
per Ethiopian statutes.
4.7.2 Fauna
Few fauna were observed in the core and buffer zones, as the area is highly impacted by deforestation and
wildlife hunting. The fauna recorded in the buffer area include monkeys, baboons, hyenas, jackals, bush
pig, serval, etc. There are no faunal species recorded from the Muger valley area that can be categorized as
endangered, threatened or vulnerable. The species encountered are common forms that are observed in
other parts of Ethiopia.
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
No visible archaeological remains, which have scientific, cultural, public, economic, ethnic and historic
significances, have been observed in the area. The risk value of both the plant and the mining sites is very
low, where no significant observable archaeological evidence is found. The sites have no archaeological
importance. However, a Chance Find protocol will nevertheless be prepared to cover any unexpected
finds.
A detailed socio-economic survey has been carried out in the 10 km area around the project site. The
poverty profile of the area is given below.
4.9.1 Income/ Consumption Dimension of Poverty
Consumption/ Expenditure
The results of the household survey carried out for the project area comprising of plant and mining areas
reveal that the per capita consumption/ expenditure of the household and the population in the project area
is estimated to be Birr 9214.37 and Birr 1722.77 respectively. According to the 2002 Development and
Poverty Profile of Ethiopia the real per capita consumption expenditure of North and West Shoa zone, the
area where the project is located, amounts to Birr 1087.2. The higher figure arrived at during the primary
survey may partly be attributed to the time gap and current prices used in the calculation of the data.
In accordance with the 2002 Development and Poverty Profile of Ethiopia, the proportion of people in
absolute poverty is about 31.7% in North and West Shoa Zones. This is by far better than the National and
Oromiya Region absolute poverty figures of 39.9% and 44.2% respectively.
As indicated by the survey a significant portion of the expenditure incurred by people in the area is
incurred on food. Food on average accounts for 56.4% of the household budget. Within the non-food
category, clothing and house maintenance account for greater share of total expenditure (10.5 and 8.7%).
Medical care and education budget contribute 4% and 0.8 % of the total household budget respectively.
Income
The major source of employment and income in the project area is mixed farming, i.e. crop production and
livestock. Apart from the heads of the households who are often the breadwinners of the family, other
family members also contribute to family income through employment in farming and off-farm activities.
The most important part of the income accounting to over 88.5% originates from agricultural and related
activities mainly from the production of cereals and vegetables, perennial crops, domestic animals and its
products, agro-forestry products and renting of farming lands. The remaining activities, i.e., trading,
employment, handicrafts and others bring in the remaining income of the people. On the bases of the
survey result, the annual per capita income of the households and population is computed to be Birr
10,287.62 and Birr 1923.4 respectively.
4.9.2 Non-Income/ Consumption Dimension of Poverty
Demography
The Plant and Mining sites are located close to Becho Dibdibe and Gimbichu villages within Becho
Kidane Mehret and Handa Weizero Peasant Associations (PAs) respectively. The demographic details of
the three PAs, viz., Becho Kidane Mehret (Plant area), Handa Weizero (Mining area) and Derba Gulele
Beresa (the closest habitation of Derba) are given below:
Sn PA Population Number of Households Avg. Population
Male Female Total Male Female Total Family Density
Size (persons/sq km)
1 Becho Kidane Mehret 804 872 1676 269 18 287 5.8 31.59
2 Handa Weizero 891 1611 2502 514 235 749 3.3 33.62
3 Derba Gulele Beresa 1825 2065 3890 1161 107 1268 3.1 147.46
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
Female headed households are few. The average population density is 70.9 persons/ sq km, which is, more
than the national average of 50 persons/ km2.
Females constitute 51.3% of the total population. Out of the total surveyed household heads (244) only
12.3% were female-headed households. The average family size in the project area is about 5.3. This is
classified as a large family size, which usually indicates the characteristics of a poor family.
Residents of the project area are predominantly followers of the Orthodox Christian Religion (98.4%). The
population of the project affected area is almost entirely of the Oromo ethnic group (97.5%) and Oromiffa
is the major language spoken in the area. The Local Consultation is therefore carried out verbally and in
Oromiffa language. The remaining 2.5% of the total households belong to Amhara ethnic group. None of
the Project Affected Persons belong to ethnic minority groups.
Education
According to findings of the socio-economic survey, the overall literacy rate in the project area is very
low. 81.5% of the surveyed household heads are illiterate whereas the remaining 18.5% are literate. Of
this, less than a quarter of the household heads had formal education of which the majority was only till
primary level.
Literacy rates are also disproportionate between sexes. While 88.5% of females are illiterate, the figure is
69.8% for males. Literacy rates are consistently higher for men than women throughout all levels of
education.
Of the total household heads in the project area, 3.5%, 4.0%, 7.6%, and 1.5% and 1.5% have attained
Lower Primary (1-4), Primary (5-8), and Secondary (9-10), Technical school and above grade 10 level
education respectively.
Farm Assets
The main source of livelihood in the project area is agriculture. Therefore, land ownership in the project
area becomes an important determinant of welfare. The major crops of the area are teff, barley, maize,
sorghum, chickpeas, wheat, etc. Trees grown include banana, orange, mango, coffee, chat and eucalyptus
tree is the dominant tree species. The area is mainly cultivated by means of traditional rainfed subsistence
farming.
According to the survey results, average landholding of the surveyed household is found to be 2.8 ha. The
majority, nearly 90.9% of the surveyed households own more than 2 ha of land. In general the size of
individual land holding of the farmers in the study area is better than the average holdings on Regional and
country levels. Thus farmers in the study area are likely to have better welfare status.
5. PROJECT ALTERNATIVES
Prior to arriving at a decision regarding establishment of a greenfield cement plant at Derba, different
project alternatives were examined and reviewed. The options considered were:
No project option
Establishment of a new cement plant close to the quarry for production of cement.
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
Option 2 (Derba): This village has a good road connection. However, locating the plant close to
habitation of Derba village is not advisable since it may lead to detrimental impacts on the local
population.
Option 3 (8 km from Derba): The plant site can be connected to the mining area by a 7 km long
conveyor. The flat area available is suitable for locating the plant with a residential complex. The site is
also far from Derba village.
Thus Option 3 i.e. location of plant about 8 km from Derba has been selected to allow for minimal site
disturbance and to avoid a site close to habitation.
The proposed new project works out to be economically viable, socially beneficial and environment
friendly. The existence of abundant raw materials for cement production close to the proposed plant site,
and the area being far away from habitation are the factors in favour of the selection of the proposed
location at Derba.
The Operation phase of the proposed cement plant mainly comprises of the following activities:
Excavation of limestone from the captive mines
Transportation of crushed limestone from mines to plant site
Transportation of other correctives/ additives to the plant site
Preparation of raw meal by adding correctives to limestone
Clinkerisation of raw meal
Cooling and heat recovery
Blending & grinding of clinker by adding additives
Packing & Despatch
The details of main activities and actions to be undertaken and their impacts during operation phase of
plant and mines are summarized below. Similar summaries have been prepared for the construction stage
and plant closure stage.
Sn Component Activities Potential Impacts
1 Transportation of Increase in traffic movement Disturbance to community & its safety
raw materials and Washing and maintenance of Contribution of dust and gaseous pollutants like
products vehicles SO2, NOx, CO, VOC to ambient air quality
Contribution to ambient noise level
Disposal of solid waste & waste water
2 Operation of plant Mines Air emissions from operations are Dust, NOx, SO2,
/ mines Drilling GHG and unburnt hydrocarbons.
Blasting Generation of noise and vibrations from blasting
Loading & transportation Waste water generation from:
Operation of mining o Water treatment plant
machinery o Domestic usages in plant
Plant Solid waste from wastewater treatment plant as dry
Crushing of limestone/ other sludge, waste lubricating oil from machinery and
raw materials municipal waste from domestic usages
Preparation of raw meal Accidental spillage of oil, if any.
Clinkerisation of raw meal
Cooling and heat recovery
Blending & grinding of
clinker
Packing & Dispatch
3 Socio-economic Acquisition of land Loss of agricultural land
Payment of taxes and royalty Loss of grazing area
Direct and indirect Employment to locals
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
The mitigation measures for the identified impacts are described below.
Sn Potential Main Source of Risk Mitigation Measures
Impact
1 Natural Depletion of Limestone Availability of raw materials shall be estimated properly
Resources reserves and other Regular review of raw mix to get consistent quality of products
corrective materials and
additives Continuous attempt to control wastages during transportation, storage
and handling of raw materials
Mining plan shall be prepared to optimize the mining methodology
and ensure the implementation of a progressive reclamation plan to
replant in areas where limestone has been excavated
Regular monitoring of availability of stocks and consumption of raw
materials, dispatch of products and loss of material
2 Air Emissions
A Emission o Drilling Dust emissions from crusher will be controlled by bag filter.
from mines o Blasting All dumps will be suitably vegetated.
o Loading and A speed limit shall be defined for the trucks/ dumpers moving within
unloading the mining area.
o Crusher Dust suppression systems (water spraying) shall be adopted at faces/
o Transportation sites before and after blasting and while loading
o Wind erosion Dust generated due to blast hole drilling shall be suppressed by using
o Traffic movement water injecting system of dust collectors in the drills.
Use of sharp drill bits for drilling holes and drills with water flushing
systems (wet drilling) to reduce dust generation,
Use of sharp teeth for shovels to reduce dust generation,
Regular water spraying shall be carried out on haulage roads by water
sprinklers during transportation of raw materials.
All vehicles and their exhausts would be well maintained and regularly
tested for emission concentration.
Dust masks shall be provided to workers engaged at dust generation
points like drills, loading, unloading points, etc.
Extensive plantation shall be carried out in and around the mining area
Use of good quality explosives having proper oxygen balance with
regular monitoring.
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
DMC will actively contribute to improve the socio-economic conditions of the area. The details of the
Socio-economic Development Plan are given below:
DMC is committing an annual contribution of Birr 250,000 per year for establishing a revolving fund to
support/ supplement the efforts to help finance small scale businesses for the local communities. A
Committee comprising of officials from Sululta Wereda, PAs, and DMC will oversee the implementation
of the fund. DMC shall continue the contribution till the cumulative contribution reaches Birr 2.5 million.
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
Undertaking health awareness and education initiatives by imparting information and counseling to
influence individual behaviour as well as promote individual protection, and protect others from
infection.
Training health workers in disease treatment
DMC shall ensure ready access to medical treatment, confidentiality and appropriate care, particularly
with respect to migrant workers
A number of measures are proposed to reduce the impact of vector-borne diseases like malaria in the
workers and the local communities.
Sanitation in and around the project area will be improved to eliminate breeding habitats. Use of
repellants, clothing, netting, etc. will be promoted. DMC will make efforts to provide appropriate drugs to
workers and collaborate with public health officials to help eradicate disease reservoirs. It is proposed to
monitor and treat the migrating population to prevent disease spread and also educate project personnel
and area residents on risks, prevention, and available treatment.
Education
DMC commits to build new or expand the existing elementary school at the plant and quarry sites and
hand over the same to the concerned Government office for managing them. DMC is allocating in its
budget for expanding and upgrading the educational facilities at Derba town and quarry. The estimated
costs are:
Cost of additional classrooms at plant site and quarry : Birr 500,000
Cost of facilities like desks, laboratory equipment, etc. : Birr 250,000
Total : Birr 750,000
A Regional Vocational Training Center is proposed to be established by Sululta Wereda at Chancho.
DMC will contribute about Birr 224,000 for the establishment of Vocational (Health Extension Workers
and Farmers’ Training) Centre.
Water Supply
DMC will help in improving the water supply in the area. As observed during the socio-economic baseline
survey, almost all villages rely on dirty, unpotable stream water for their water requirement. This has lead
to prevalence of water borne diseases.
Water supply access will be extended to a total of seven villages around the plant and mining sites. These
villages are Adero, Abale, Becho Kidanemehrat, Debedebe, Muger, Anda Wezero and Anda Botero. The
amount of water, which shall be made available, is estimated to be 83,560 litres per day (assuming
consumption of 20 l/ day) in the form of one water point per village. The water points shall be run by a
Water Committee, which shall be established comprising of members of the community. The community
will be expected to generate a small amount of revenue from the sale of water, so as to cover at least the
maintenance cost of the system.
Communication
With the establishment of the plant, DMC will set up modern communication facilities like telephones,
internet, etc. in the area, which will also be available to the local population.
Electricity
DMC will extend to 2MW electric power line for the community along the Derba-plant road and around
the plant site to facilitate personal connections for the community. However, the cost of individual
connections and bills based on the consumption will be borne by the individuals.
Environmental monitoring and audits will be undertaken during & after the construction and development
phase and during operation phase to check that the environmental management measures are being
satisfactorily implemented and that they are delivering the appropriate level of environmental
performance. A summary of the proposed monitoring plan is given below.
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
The Federal EPA has no capacity for monitoring or environmental auditing. DMC will have a dedicated
Environmental Management Cell within the plant to oversee environmental management of its operations.
Like the EPA, the Government institutions like Wereda level offices at Chancho and PAs do not have the
capacity to undertake or assist in implementing social development schemes in the area on behalf of DMC.
Thus the Environmental Management Cell will have a strong Social set up to take care of the social
development plans in the surrounding area. A Grievance Cell will also be established to address the
complaints/ grievances of the local communities.
7. PUBLIC CONSULTATION
Public consultation plays a key role in enabling the public to participate in the planning of project that
affects the people directly. The project is proposed to be located within Oromiya Regional State of the
country. There are five Weredas located within and around the project. There are twenty eight (28)
Kebeles or Peasant Associations that are organized under the Weredas consisting of a number of
settlement villages. The Kebele Peasant Association (PA) is the lowest governmental administrative unit
of the rural area.
The consultative participants from administrative and community levels total to 1,247 consisting of 40
Wereda officials, 28 Kebele Peasant Associations council members, 223 community members consulted
through community discussions and 956 individual household heads consulted privately.
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
The major issues identified and the suggestions proposed during the Public Consultation include:
Contain smoke, dust, noise, hazardous discharge and minimize environmental pollution;
Extend health services to the local residents by constructing hospital or health center;
Create awareness among the people to combat the spread of HIV/AIDS and other STDs and provide
treatment for patients;
Provide appropriate compensation for the People to be evicted from their land. In addition, project
should seek ways and means of restoring their livelihood;
Create awareness among the people to benefit from project related activities such as trading, etc.;
Develop infrastructure, school, electricity, telecommunications, hospital and the like for the
community;
Jointly seek remedial measures to regulate the unemployment rate in the project area;
Assist the creation and operation of small and micro institutions;
Launch reforestation program near the project site and the quarry;
Community level discussion should continue to jointly identify and recommend corrective measures
for the potential problems.
8. RESETTLEMENT PLAN
The Cement project comprises of the following sections, which necessitate acquisition of land:
Plant area
Mining area
Road from Derba to plant site
Road from Plant to Mines
Road from Chancho to Derba
Right of way for disturbances caused by power line, water pipeline and conveyor belt
As per the statutes of FDRE, DMC is required to pay lease rent for the land for the project, which is
acquired by the Oromiya Regional Government. DMC is paying the Compensation for acquisition of this
land, which is on account payment for the lease rent. The acquisition of the total plant area (125 ha), road
from Derba to plant (4.83 ha), road from Chancho to plant (8.2 ha), land for water supply (4.35 ha) is
already complete. Land acquisition for conveyor belt, mining area, power transmission line and road from
plant to mines is under progress.
A total compensation of Birr 13,330,736.80 has been paid to 354 landowners who have lost part of their
landholdings and 74 house owners who have lost their houses. The details of the compensation paid are
summarized below:
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
Purpose Site/ Village Land owners who have lost Landowners who Land owners who have lost houses Total Whether
total land have lost part of their land Compen- acquisition
Nos. Total Compen- Nos. Total Compen- Nos. Total Compen- sation paid completed or in
area (ha) sation area sation paid area (ha) sation paid (Birr) progress
paid (ha) (Birr) (Birr)
(Birr)
Plant site
Becho Kidanemeheret - - - 94 125.104 4,466,034.36 4,466,034.36 Completed
Road from Derba to Plant
Derba Gulele Berisa - - - 37 4.83 349,143.60 349,143.60 Completed
PA
Due to Quarry site
Becho Kidanemeheret - - - 4 0.75 41,607.00 41,607.00 Completed
Road from Plant to Mines
Ada Gimbichu - - - 116 139.70 5,186,497.10 74 1,229,898.50 6,416,395.60 In progress
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ESIA Summary: Greenfield Derba Cement Project: DMC, Ethiopia
9. CONCLUSIONS
The proposed cement project will impact on the physical, natural and socio-economic environments at
Derba. The plant and mining operations will result in permanent changes in the land use of the area.
Agricultural and grazing land will be converted to industrial and mining. However, the soil quality of
the area will remain unchanged.
Air emissions from the plant will be highly controlled and the installation of state of the art pollution
equipment will limit the dust and gaseous pollutants levels much below the norms specified by the
IFC to ensure a continued good air quality in the area.
The proposed plant and mines will not affect the hydrology of the region. The drainage pattern will
not be affected and the quality of the water will also not be affected by the mining operations. The
vegetation in the mining area may be disturbed, causing a loss of crops, fruit trees and natural
vegetation. However, the flora and fauna existing in the area are of common species. Mitigation
measures including a rehabilitation and management program and a green belt/ afforestation plan will
reduce the overall ecological impacts and in the long term improve the forest cover to the benefit of
the fauna diversity.
Employment resulting from plant and mining operations and associated services and improved
infrastructure and facilities in the area will be the main socio-economic benefits for the affected
community. The acquisition of land in the plant and mining area and the access roads and the
resettlement of people living in these areas are the major negative impacts of the project. The
implementation of the resettlement action plan will mitigate these impacts in terms of compensation
and improvement of livelihood of the affected families.
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