Darway Coast Environmental and Social

Policy

Environmental and Social Management System: Environmental & Social

Policy

Issue Number

Issue Date

December 2024

Document Number

Document Pages

DCN - 103

106

Approved by:

Name

Title

Date

Henry Ureh

Chairman/CEO

December 2024

Cyril Okoye

ESG Specialist

December 2024

Abbreviation

CBO Community-Based Organization

E&S Environmental and Social

ESIA Environmental and Social Impact Assessment

ESMP Environmental and Social Management Plan

ESMS Environmental and Social Management System

GRM Grievance Redress Mechanism

LRP Livelihood Restoration Plan

NGO Non-Government Organization

RAP Resettlement Action Plan

REA Rural Electrification Agency (Nigeria)

SIA Social Impact Assessment

GIP Good International Practices

PR Performance Requirements

CONTENTS

Introduction. ...................................................................................................................................... 3

Overall Workflow ..............................................................................................................................

Environmental and Social Objectives ...............................................................................................

Ownership and Accountability ........................................................................................................

Purpose of this Policy .................................................................................................................

Darway’s Commitment ............................................................................................................... 17

Integrating environmental and social considerations into the project cycle ...............................

Overall Workflow ............................................................................................................................

E&S Risk Categorization .................................................................................................................

Initial E&S Screening ......................................................................................................................

E&S Risk Management Instruments for Category I Mini grids ...................................................... 40

E&S Risk Management Instruments for Category II Mini grids ....................................................

Performance Requirement 1: Assessment and Management of Environmental and Social

Impacts and Issues ..........................................................................................................................

Performance Requirement 2: Labour and Working Conditions .....................................................

Performance Requirement 3: Resource Efficiency, Pollution Prevention and Control ...............

Performance Requirement 4: Health and Safety ..............................................................................

Performance Requirement 5: Land Acquisition, Involuntary Resettlement and Economic

Displacement .....................................................................................................................................

Performance Requirement 6: Biodiversity Conservation and Sustainable Management of Living

Natural Resources .............................................................................................................................

Performance Requirement 7: Indigenous Peoples ...........................................................................

Performance Requirement 8: Cultural Heritage ..............................................................................

Performance Requirement 9: Information Disclosure and Stakeholder Management ................

Annexes. ......................................................................................................................................

75-106

Annex A: Exclusion List for Mini grid Site Selection

Annex B: Sample Checklist for Initial E&S Screening

Annex C : Sample Environnemental & Social Impact Assessment (ESIA)

Annex D : Sample Environmental & Social Management Plan (ESMP)

Annex E: Sample Resettlement Action Plan (RAP)

Annex F: Sample Livelihood Restoration Plan (LRP)

Annex G: Sample Stakeholder Engagement Plan

Annex H: Sample Grievance Redress Mechanism (GRM) Plan

Annex I: Sample Regular Self-Mentoring Checklist

Annex J: Sample Regular E&S Report to REA

Annex K: Voluntary Land Donation Guidelines

Darway Environmental and Social Policy

Introduction

Darway Coast has integrated environmental and social risk management into its core operations, focusing on mini-

grid development and renewable energy solutions. This policy reinforces Darway's commitment to sustainability and

compliance with national and international E&S standards.

Environmental and Social Objectives

Environmental Goals:



Sustainability: Promote low-carbon, renewable energy projects.



Biodiversity Conservation: Avoid projects in ecologically sensitive areas.



Resource Efficiency: Minimize water and energy consumption in operations.

Social Goals:



Community Engagement: Foster inclusive participation in project planning and implementation.



Equity and Inclusion: Ensure benefits for vulnerable groups, particularly women and economically

disadvantaged populations.



Grievance Management: Provide accessible and effective channels for addressing community

Ownership and Accountability

1. Governance Structure:

 Ultimate accountability for E&S compliance resides with the CEO.

 Oversight is provided by the Board.

 Day-to-day E&S management is led by a dedicated E&S Manager, supported by site managers

and project teams.

2. Roles and Responsibilities:

 Board of Directors: Approves policy updates and ensures integration into strategic planning.

 E&S Manager: Develops and implements the Environmental and Social Management System

(ESMS).

 Project Teams: Incorporate E&S measures into planning, execution, and monitoring phases.

 All Employees: Adhere to E&S guidelines, contributing to sustainable operations.

A. Purpose of this Policy

1. The aim of this policy is to demonstrate how Darway Coast Nig. Ltd (Darway) has promoted

sustainable development by integrating environmental and social considerations into all aspects

of its mini- grid development and renewable energy operations. This policy defines how Darway

approached managing environmental and social risks while leveraging opportunities for positive

impact. It showcases how Darway exemplified leadership in environmental stewardship and

social responsibility.

Specifically, the purpose of this policy include how Darway:

i. Aligned operations with national regulations and international E&S standards.

ii. Minimized adverse impacts and maximized benefits to the environment and society.

iii. Supported the achievement of sustainable development goals (SDGs).

2. In this Policy, the term “project” refers to the defined set of business and mini grid development

activities for which Darway is engaged.

3. This Policy outlines how the Darway addressed the environmental and social impacts of its

projects by:

 Defining its roles and responsibilities in designing, implementing and operating projects in

line with this Policy and the Performance Requirements;

 Setting a strategic goal to promote projects with high environmental and social benefits; and

 Mainstreaming environmental and social sustainability considerations into all its activities.

B. Darway’s Commitment

4. All projects executed by Darway were structured to meet the requirements of this Policy.

5. Darway ensured through its environmental and social appraisal and monitoring processes

that projects are designed, implemented, and operated in compliance with applicable regulatory

requirements of the Federal Republic of Nigeria and Local Laws and Regulations where

applicable.

6. The company did not support mini grid construction on sites that of involved any of the following:

●

Sites that do not comply with relevant environmental and social national or state

regulations of Nigeria.

●

Sites located in legally protected areas (e.g. national parks, conservation areas,

●

forests).

●

Sites located in internationally recognized areas.

●

Sites located in critical natural habitats.

●

Sites where mini grid construction and operation will cause significant degradation of

natural habitats (e.g. mangroves).

●

Sites in flood-prone zones.

●

Sites located on land from which government agencies or builders have removed /

involuntarily resettled local communities, including squatters or encroachers, without

proper compensation.

●

Sites located on land associated with illegal forced evictions of previous owners or

occupants.

●

Sites in locations and / or developed in a manner that involves significant adverse

impacts on physical cultural property.

7. Darway complied with Environmental and Social (E&S) standards of lenders, investors and

shareholders.

8. Darway dedicated capacity and resources to implement and maintain the Environmental and

Social Management System (ESMS) which included:

●

A dedicated environmental department/unit/ E&S Manager or Coordinator within

the company.

●

Senior management involvement and commitment to E&S compliance.

●

Provided internal training/capacity building on E&S issues to relevant staff (such

as engineers, site managers, construction managers, contractors etc.), including

on:

○

Screening of investments for potential environmental and social impacts, scoping

assessments, planning mitigation options, public consultation to assess the

feasibility and acceptability options;

○

Environment: site selection to minimize environmental impacts and social

disruption; mitigation measures for contractors and subcontractors (through

adequate language in contracts); management of impacts during construction;

monitoring of effectiveness of measures;

○

Monitoring and grievance redress: transparency and supervision responsibilities.

9. Darway maintained good track record on E&S compliance, i.e:

●

Established and maintained a Grievance Redress Mechanism; kept proper

records of complaints received and resolution of each one.

●

Good record keeping for any incidents of legal E&S non-compliance, fines, or

complains.

●

Reported to relevant government agencies (such as Rural Electrification Agency),

lenders, investors, including prompt reporting of any incidents or accidents

10. Darway adopted a comprehensive set of specific Performance Requirements (“PRs”) that the

projects are expected to meet. Wel managed the environmental and social issues associated

with the projects to meet the PRs over a reasonable period of time.

11. Darway recognised and still recognises that the responsibility of business to respect human

rights is an integral aspect of sustainable development. The responsibility of business to respect

human rights involves avoiding infringement on the human rights of others and addressing

adverse human rights impacts that their operations may cause or to which they may contribute

as well as mitigating adverse human rights impacts that are directly linked to their operations.

12. Darway believes that gender equality is a fundamental aspect of a modern, well-functioning

market economy and society. During the projects, Darway identified and, where possible,

enhanced the positive gender impact of projects and developed mitigating measures to reduce

any potential gender specific and disproportionate adverse gender impact. Darway promoted

equality of opportunity and women’s socio-economic empowerment, particularly with respect to

access to services and employment.

13. Through the implementation of this policy, Darway worked towards adding value to its

activities, improved long-term sustainability and strengthened their environmental and social

management capacity.

14. Darway recognised the importance of addressing both the causes and the consequences of

climate change in its countries of operations. Darway engaged, whenever appropriate, in

innovative investments and technical assistance to support no/low-carbon investments and

climate-change mitigation and adaptation opportunities. Darway also developed adaptation

measures that promote climate resilient investments.

15. Darway was precautionary in its approach to the conservation, management and

sustainable use of living natural resources and required relevant projects to include measures to

safeguard and, where feasible, enhance habitats and the biodiversity they support.

16. Darway committed to the principles of transparency, accountability and stakeholder

engagement. It disclosed, on an on-going basis, summary information about the it’s

performance on environmental and social issues and engaged in meaningful dialogue with the

it’s stakeholders.

17. Through its technical cooperation and policy dialogue, Darway supported the development

of an enabling environment to achieve environmentally and socially sustainable outcomes in

their projects.

18. In its internal operations, Darway employed, whenever appropriate, GIP with regards to

environmental and social sustainability and worked with suppliers and contractors who follow

similarly high standards.

C. Integrating environmental and social considerations into the project cycle

Overall Workflow

The workflow chart below demonstrates the steps and E&S roles during the mini grid design, development,

construction, and operation cycle.

Overall Workflow for Darway Mini grid Development

Tasks E&S Responsibilities

Initial E&S Screening

Reporting During

Construction and

Operation

Self- Monitoring

During Construction

and Operation

Acquire Necessary

Clearance &Permit



Initial site survey for overall basic information



Check against Exclusion List (Annex A)



Fill out initial E&S Screen Checklist (Annex B)

Categorize E&S Risk

Based on the results from initial E&S Screening Checklist:



Category I: High risk sites such as those in sensitive

habitats, with potential physical and/or economic

displacement, substantive number of migrant

workers stationed in communities

 Category II: No high-risk activities expected

Conduct E&S Studies

Based on Category



Category I: ESIA (Annex C), ESMP (Annex D),

RAP (Annex E) and / or LRP (Annex F), as

appropriate



Category II: only ESMP (Annex D)



Both: Stakeholder Engagement Plan (Annex G) and

Grievance Redress Mechanism (Annex H)



Continuous compliance with applicable policies

 Compliance check regularly trough Self-Mentoring

Checklist (Annex I)

 Maintain a GRM to address construction/operation

related issues

All clearance/permit(s) must be acquired properly

before start of construction



Reporting to REA (Annex J)



Reporting to lenders and investors, as needed

Darway’s role and responsibilities

19. Darway refrained from executing high risk projects on environmental or social grounds. In

addition, there are several types of activities that Darway did not execute in accordance with the

Darway Environmental and Social Exclusion List included in [B.6].

E&S Risk Categorization

20. Darway categorised projects based on environmental and social criteria to:

(i) reflect the level of potential environmental and social impacts and issues associated with the

project, and

(ii) determine the nature and level of environmental and social investigations, information

disclosure and stakeholder engagement required for each project, commensurate with the nature,

location, sensitivity and scale of the project, and the nature and significance of its potential

environmental and social impacts and issues.

Direct Investments

21. Initial E&S Screening: Prior to any construction or preparation of construction started,

Darway conducted an initial E&S screening before or during project design stage, to (1) ensure

the proposed construction site is not under any situation in the Exclusion List (Annex A); and (2)

identify any E&S issues and mitigation opportunities.

Based on the results of the initial E&S Screening, all mini grid projects were be divided into two

E&S Impacts Categories:



Category I: High-risk projects requiring comprehensive E&S studies (e.g., ESIA,

ESMP, RAP, or LRP).



Category II: Medium/low-risk projects needing an ESMP only.

It is important to note that all Darway projects are under category II classification.

22. E&S Risk Management Instruments for Category I Mini grids:

Projects in this category are expected to have significant environmental and social (E&S) impacts, such as

physical or economic displacement, adverse effects on ecologically sensitive areas or cultural heritage, and

challenges related to migrant workers and labor camps. The extent and likelihood of these impacts must be

assessed comprehensively.

E&S Studies Required:

1. Environmental and Social Impact Assessment (ESIA): Identifies potential adverse effects,

recommends mitigation measures, and outlines their implementation.

2. Environmental and Social Management Plan (ESMP): Details how mitigation measures will be

implemented, including responsibilities, timelines, costs, and funding sources.

3. Resettlement Action Plan (RAP) and/or Livelihood Restoration Plan (LRP): Required if

displacement is involved, ensuring compensation and resettlement assistance align with legal and

community standards.

4. Stakeholder Engagement Plan (SEP): Ensures ongoing communication, consultation, and

participation with stakeholders throughout the project lifecycle.

Key E&S Concerns:

 Pollution (air, water, noise)

 Traffic and labor management (including impacts of migrant workforces)

 Occupational health and safety

 Worker-community interactions (e.g., HIV/AIDS concerns)

 Community engagement and benefit sharing

 Environmental issues (drainage, erosion, habitat degradation, land loss)

 Displacement or economic impacts

 Risks of Sexual Exploitation and Abuse/Harassment (SEA/SH)

23. E&S Risk Management Instruments for Category II Mini grids:

For constructions with perceived medium or low E&S adverse impacts, only the ESMP is needed.

Before any actual construction can begin, all necessary government and non-governmental

clearance and permit(s) must be acquired properly and timely.

Overall Approach to Project Appraisal

24. All projects underwent environmental and social appraisal both to help Darway decide if the

project should be financed and, if so, the way in which environmental and social issues should be

addressed in its planning, implementation and operation. The appraisal was designed to

appropriate to the nature and scale of the project, commensurate with the level of environmental

and social impacts and issues, and with due regard to the mitigation hierarchy. The appraisal

assessed whether the project is capable of being implemented in accordance with this Policy

and its PRs and include an assessment of the potential financial, legal and reputational risks as

well as identify potential environmental or social opportunities. The social and environmental

appraisal was integrated into Darway’s overall project appraisal. Darway retained specialist third

party advice to assist in the assessment of specialised or technical issues.

25. Darway’s environmental and social appraisal included consideration of three key elements:

(i) the environmental and social impacts and issues associated with the project,

(ii) the capacity and commitment of the Darway to implement the project in accordance with the

relevant PRs, and

(iii) to the extent appropriate, the facilities and activities that are associated with the project, but

are not financed by Darway. The scope of Darway’s environmental and social appraisal were

defined on a case by case basis, and also reviewed potential risks and liabilities associated with

assets pledged as security.

26. Darway recognised that the projects may have different levels of information available at the

time of appraisal. To the best of its abilities, Darway (i) assessed the risks of its investment

based on the risks and impacts inherent to the particular sector and the context of the business

activity’s setting, and (ii) assessed clients’ and partners’ capacity to implement the project in

accordance with the PRs.

Performance Requirements

27. Projects were expected to meet GIP related to environmental and social sustainability. To

help Darway achieve this, it defined specific PRs for key areas of environmental and social

sustainability as listed below:

•

PR 1 - Assessment and Management of Environmental and Social Impacts and Issues

•

PR 2 - Labour and Working Conditions

•

PR 3 - Resource Efficiency, Pollution Prevention and Control

•

PR 4 - Health and Safety

•

PR 5 - Land Acquisition, Involuntary Resettlement and Economic Displacement

•

PR 6- Biodiversity Conservation and Sustainable Management of Living Natural

Resources

•

PR 7 - Indigenous Peoples

•

PR 8 - Cultural Heritage

•

PR 9 - Information Disclosure and Stakeholder Management

Each PR defines, in its objectives, the desired outcomes, followed by specific requirements

for projects to help Darway achieve these outcomes. Compliance with relevant national law

is an integral part of all PRs.

28. Projects involving new facilities or business activities were designed to meet the PRs from

the outset. For projects that involved existing facilities or activities that did not meet the PRs at

the time of participation, Darway adopted measures that were technically and financially

feasible and cost-effective to achieve compliance of these facilities or activities with the PRs

within an acceptable time frame. In addition, Darway managed environmental and social risks

consistent with the PRs in their other operations that were associated with but not part of the

project.

29. Where the project involved general corporate finance, working capital or equity financing

for a multi-site partner company, the client/partner will be required to develop measures at the

corporate level (as opposed to the project-specific level) to meet the PRs over a reasonable

time period.

Third party performance

30. At times, the project’s ability to meet the PRs were dependent on third party activities.

Darway ensured that the projects it executes achieved outcomes consistent with the PRs even

if the outcomes were dependent upon the performance of third parties. When the third party

risk was high and the client/partner had control or influence over the actions and behaviour of

the third party, Darway required the client to collaborate with the third party to achieve

outcomes consistent with the PRs. Specific requirements and actions were determined on a

case by case basis. Certain third party risks resulted in Darway deciding to refrain from

participating in the project.

Decision-making

31. The documentation submitted to Darway’s Board of Directors or other Darway decision-

making body for approval of the project included a description of the environmental and

social appraisal, substantive impacts and issues identified, mitigation measures and a

summary of the stakeholder engagement, and the way in which these impacts and issues

were being or was addressed by clients. The Board of Directors or other Darway decision-

making body took the comments and concerns of stakeholders into account in its decision-

making process as part of assessing the overall benefits and risks of the project.

32. Darway’s Board of Directors had the discretion to agree a deferred level of project

appraisal following Board approval and after the signing of the agreements in specific

circumstances. This approval required completion of further environmental and social

appraisal in compliance with this Policy and the PRs prior to disbursement or within an agreed

implementation schedule (e.g., prior to acquisition of future assets). In cases where deferred

appraisal were agreed, the Project Summary Document included a description of the

approach agreed.

33. Where alternative approaches to those described in this Policy were required by the

circumstances of a particular project, such approaches were subject to Board consideration on

a case-by-case basis. In deciding whether to approve an alternative approach to this Policy, the

Board balanced the proposed approach against the overall environmental and/or social

impacts, risks and benefits of the project. In all cases, alternative approaches approved by the

Board were summarised in the Project Summary Document.

Monitoring

34. Darway reviewed project performance against clients’ and partners’ commitments as agreed

in the legal documentation. The extent of monitoring was commensurate with the potential

environmental and social impacts and issues associated with the project, including both direct

investment projects. As a minimum, monitoring requirements and commitments included

reviewing Annual Environmental and Social Reports on projects prepared by clients.

35. For cases where the client or partner fails to comply with its social and environmental

commitments, as set out in the legal agreements, Darway agreed with the client/partner

remedial measures to be

taken by the client/partner to achieve compliance. In a situation where the client/partner failed to

comply with the agreed remedial measures, Darway took such action and/or exercise such

remedies contained in the agreements that it deemed appropriate. Darway also reviewed with the

client any performance improvement opportunities related to projects.

Operational Changes

36. Changes can occur in the nature and scope of the project following the approval and signing

of the agreements. Such changes may have significant environmental or social implications

associated with them. When such material changes were envisaged, Darway carried out an

environmental and social appraisal of the relevant changes in accordance with this Policy and

any additional appraisal and stakeholder engagement requirements, and environmental and

social mitigation measures were incorporated into the modified/restructured project

documentation. Where operational changes resulted in a materially different environmental

and/or social scenario to the one approved by the Board, the change was reported to senior

management and, if appropriate, consistent with applicable Darway policies, submitted to the

Board for information or approval.

D. Darway Public Reporting and Accountability

37. Darway published an annual report on the environmental and social sustainability issues

relating to its activities and on the implementation of this Policy.

38. Environmental and social issues relating to Darway projects were summarised in Darway’s

Project Summary Documents as required by the Public Information Policy.

39. In accordance with the Evaluation Policy and relevant guidance notes, the Evaluation

Department evaluates the environmental and social performance dimensions of Darway projects

as appropriate.

40. Darway has established the Project Complaint Mechanism (“PCM”) to assess and review

complaints about its projects. The PCM gave local individuals, organisations and local groups

that perceive harm from a Darway project, a means of raising complaints and seek assistance

with problem solving independently from mini grid operations. It was also used by individuals or

groups to file a complaint if they believe that the Darway has not complied with this Policy or

project-specific components of the Public Information Policy.

F. Institutional and Implementation Arrangements

41. In order to ensure that the strategic directions described above were sufficiently addressed,

Darway allocated responsibilities and appropriate resources to effective implementation of this

Policy. It maintained adequate staff resources to oversee the environmental and social appraisal

and monitoring processes and to initiate and develop environmentally and socially beneficial

projects.

42. This Policy entered into force after its approval by the Board of Directors. Projects that

receive initial approval by management prior to the entry into force of this Policy will be subject

to the policy in force at the time of the initial approval of the project.

43. Darway developed and maintained environmental and social procedures and appropriate

guidance notes and tools to assist in implementing this Policy, and ensured that staff received

appropriate training on the requirements of this Policy.

44. Darway continued to be assisted by its Environmental and Social Advisory Council

(“ESAC”) whose views were sought on general policy-related issues and on sector policies and

strategies prior to their finalisation. Its views were also sought on specific issues related to the

Darway’s projects and activities.

45. Darway monitored and evaluated the environmental and social performance of the projects it

finances against the aims of this Policy on a continuing basis. This Policy was reviewed on an

on-going basis and was amended or updated, subject to approval of the Board of Directors. In

addition, this Policy will be subject to review by the Board of Directors every five years.

Darway Performance Requirement 1: Assessment and management of Environmental and Social

Impacts Issues

Introduction

1. This Performance Requirement (“PR”) established the importance of integrated assessment to

identify the environmental and social impacts and issues associated with projects and Darway’s

management of environmental and social performance throughout the life of the project. A

successful and efficient Environmental and Social Management System (“ESMS”) is a dynamic,

continuous process, initiated and supported by management, and involves meaningful

communication between its workers, and the local communities affected by the project and/or

other client’s activities, and where appropriate, other stakeholders. It requires a methodical

systems approach comprising planning, implementing, reviewing and reacting to outcomes in a

structured way with the aim of achieving a continuous improvement in performance management.

ESMS appropriate to the nature and scale of the project promotes sound and sustainable

environmental and social performance, and can lead to improved financial, environmental and

social outcomes.

2. This PR outlined the Darway’s responsibilities in the process of assessing the project’s

potential environmental and social impacts and issues, and developing and implementing

procedures for managing and monitoring these impacts and issues. Engagement with the project

stakeholders is an integral part of this process.

Objectives

3. The objectives or this PR are:

•

To identify and evaluate environmental and social impacts and issues of the project.

•

To adopt a mitigation hierarchy approach to address adverse environmental or social impacts

and issues to workers, affected communities, and the environment from project activities.

•

To promote improved environmental and social performance of Darway through the effective

use of management systems.

•

To develop an ESMS tailored to the nature of the project, for assessing and managing

environmental and social issues and impacts in a manner consistent with relevant PRs.

Scope of application

4. This PR applied to projects with potential environmental or social impacts and issues.

5. For the purposes of this PR, the term “project” refers to the defined set of business activities

for which Darway expertise is sought, or where Darway financing has already been committed,

the set of business activities defined in the agreements, and as approved by Darway Board of

Directors.

Requirements

General

6. Projects involving new facilities or business activities were designed to meet the PRs from the

outset. Where the project relates to existing facilities, or where the project did not meet the PRs

from the outset, Darway were required to develop and implement an Environmental and Social

Action Plan (“ESAP”), which included a series of measures that were needed to achieve

compliance of these facilities with the PRs within a reasonable time frame.

Environmental and social assessment

7. Through the environmental and social assessment process, which may include assessment of

future impacts, risk assessment, or auditing, Darway identified and considered the potential

environmental and social impacts and issues of the project in an integrated manner. Central to

this approach is the application of the mitigation hierarchy. The assessment process was based

on recent information, including an accurate description and delineation of the project and the

associated activities, and social and environmental baseline data at an appropriate level of

detail. The assessment process identified: (i) applicable environmental and social laws and

regulatory requirements of the jurisdictions in which the project operates, including those laws

implementing Nigeria’s obligations under international law; and (ii) applicable requirements

under the PRs. For projects that could have adverse environmental and social impacts, Darway,

as an integral part of the assessment process, identified the project’s stakeholders and designed

a plan for engaging with stakeholders in a meaningful manner to take their views and concerns

into consideration in planning, implementing and operating the project.

8. The assessment process were commensurate and proportional with the potential impacts

and issues of the project and will cover, in an integrated way, all relevant direct and indirect

environmental and social impacts and issues of the project, and the relevant stages of the project

cycle. These included preconstruction, construction, operation, and decommissioning or closure

and reinstatement. Depending on the potential significance of impacts and issues, some of the

required assessment studies were required to be conducted by an independent third party

specialists.

9. The environmental and social assessment process identified and characterised, to the extent

appropriate, potentially significant environmental and social issues associated with activities,

facilities or other aspects which are not part of the project, but which may be influenced by the

project or which may affect the project’s ability to meet the PRs. These activities or facilities were

essential for the viability of the project, but were carried out by, or belong to, third parties. While

the Darway cannot control or influence these activities or facilities to meet the PRs, the

environmental and social assessment process identified the

corresponding risks they present to the project. Where potentially significant adverse

environmental and/or social risks are identified, the Darway collaborated with those relevant

third parties to manage and mitigate these risks and helped the project meet the PRs. Similarly,

where there are opportunities to enhance benefits, Darway exercised its leverage and influence

on third parties. Additionally, the assessment process considered cumulative impacts of the

project in combination with impacts from other relevant past, present and reasonably

foreseeable developments as well as unplanned but predictable activities enabled by the project

that may occur later or at a different location.

10. Projects which involved greenfield developments or major expansions of activities, or which

were in a sensitive location, and could result in potentially significant adverse future

environmental and/or social impacts which cannot readily be identified and avoided or

addressed through mitigation measures required a comprehensive Environmental and Social

Impact Assessment (“ESIA”). The ESIA process will include a scoping stage to identify and

assess the potential future environmental and social impacts associated with the project. It will

also identify potential improvement opportunities; and recommend any measures needed to

avoid, or where avoidance is not possible, minimise and mitigate adverse impacts. The ESIA will

include an examination of technically and financially feasible alternatives to the source of such

impacts, including the non- project alternative, and document the rationale for selecting the

particular course of action proposed. The ESIA may need to be carried out or verified by

independent experts.

11. Projects that are likely to have impacts which are site-specific, and/or readily identified and

addressed through mitigation measures may require a variety of environmental and social

investigations, depending on the project’s nature, size and location, as well as the characteristics

of the potential environmental and social impacts and issues. The assessment should identify and

evaluate any potential future impacts associated with the project, identify potential improvement

opportunities, and recommend any measures needed to avoid, or where avoidance is not

possible, minimise, and mitigate adverse impacts. Depending on the potential environmental and

social risks, the Darway may require that existing facilities be subject to an assessment of the

environmental and social issues of past and current operations of the existing facilities. The

purpose of such assessments is to identify past or present concerns, current status of regulatory

compliance, management systems and performance as well as potential risks, liabilities and

opportunities associated with the project. Any investigations of existing facilities must be carried

out by specialists that are independent from the facility being investigated.

Environmental and Social Management Systems

Darway established and maintained an ESMS appropriate to the nature and scale of the project and

commensurate with the level of its environmental and social impacts and issues. The objective of the

management system was to integrate the implementation of

environmental and social requirements into a streamlined and coordinated process and to embed

it in the main operational activities of the assessment of impacts and issues. The ESMS

incorporated in an integrated manner the following elements: (i) policy; (ii) management plans;

(iii) organisational capacity and competency; (iv) emergency preparedness and response; (v)

stakeholder engagement including a grievance mechanism that is accessible to individuals and

communities who may be adversely impacted by the project; and (vi) monitoring and review.

Environmental and Social Policy

12. Darway established as appropriate an overarching policy defining the environmental and

social objectives and principles that guide the project to achieve sound environmental and social

performance. The policy provided a framework for the environmental and social assessment and

management process, and specified that the project complies with the applicable laws and

regulatory requirements of the jurisdictions in which it is being undertaken and the PRs. The

policy was consistent with the principles of the PRs.

Environmental and Social Management Plan

13. Taking into account the findings of the environmental and social assessment process and the

results of stakeholder engagement, Darway developed and implemented a programme of

actions to address the identified project’s environmental and social impacts and issues and

other performance improvement measures to meet the PRs. Depending on the project, the

programme may consist of a combination of documented operational policies, management

systems, procedures, plans, practices and capital investments, collectively known as

Environmental and Social Management Plans.

14. The ESMP reflected the mitigation hierarchy and, where technically and financially feasible,

favoured the avoidance and prevention of impacts over minimisation, mitigation or

compensation, and ensure that all relevant stages of the project (e.g. preconstruction,

construction, operation, closure, decommissioning/reinstatement) were structured to meet

applicable laws and regulatory requirements and the PRs. Where affected individuals or groups

were identified as disadvantaged or vulnerable during the appraisal process, the ESMP included

differentiated measures so that adverse impacts did not fall disproportionately on them and they

are not disadvantaged in sharing any development benefits and opportunities resulting from the

project. Where relevant, the ESMP also covered management of third party and supply chain

issues.

15. The level of detail and complexity of the ESMP was commensurate with the project’s

impacts and issues addressing risks, impacts and opportunities specific to the project. The ESMP

defined desired outcomes as measurable events to the extent possible with elements such as

targets and performance indicators that were tracked over defined time periods. Recognising

the dynamic nature of the project development and implementation process, the ESMPs was

responsive to changes in project circumstances, unforeseen events, regulatory

changes and the results of monitoring and review, and was updated from time to time.

16. The ESMS, including any specific requirements and actions it sets out, applied to the project

regardless of whether it was carried out directly by Darway or through contractors or

subcontractors. It was the Darway’s responsibility to ensure that contractors working on project

sites met these requirements by adopting and implementing an appropriate contractor

management system. Effective contractor management included:

•

assessing environmental and social risks associated with contracted works and services and

incorporating relevant ESMP/conditions into tender documents as appropriate, contractually

requiring contractors to apply these standards and include appropriate non-compliance remedies;

•

overseeing that contractors have the knowledge and skills to perform their project tasks in

accordance with the contract conditions;

•

monitoring contractor compliance with the contract conditions, and;

•

in the case of subcontracting, requiring contractors to have similar arrangements with their

subcontractors.

Organisational Capacity and Commitment

17. Darway, in collaboration with appropriate and relevant third parties, established,

maintained, and strengthened, as necessary, an organisational structure that defines roles,

responsibilities, and authority to implement the ESMS for ensuring on-going compliance with

relevant national regulatory requirements, and the PRs. Darway designated specific personnel,

including management representative(s), with clear lines of responsibility and authority to

maintain and implement the ESMS. Key environmental and social responsibilities were well

defined and communicated to the relevant personnel and to the rest of the Developer’s

organisation. Sufficient management sponsorship and human and financial resources were

provided on an on-going basis to achieve effective and continuous environmental and social

performance.

18. Darway ensured that employees with direct responsibility for activities relevant to the

project’s or the company’s environmental and social performance were adequately qualified

and trained so that they have the knowledge and skills necessary to perform the action items in

a competent and efficient manner.

Supply chain management

19. Where the Darway could reasonably exercise control over its primary suppliers, the

environmental and social assessment process also considered whether the project’s primary

supply chains central to the project’s core functions were likely to be associated with

environmental and social issues. In this situation, Darway adopted and implemented a supply

chain management system commensurate to the complexity of these supply chains and

associated environmental and social issues appropriate for the nature and scale of the project.

The management system included processes for taking action to address environmental and

social issues identified during the supply chain assessment or ongoing monitoring, taking into

account: (a) whether the Darway caused or contributed to the issues; (b) the Darway’s leverage

over the supplier; (c) how crucial the relationship is to the Darway; (d) the severity of the issues,

and; (e) whether terminating the relationship with the supplier would itself have adverse

consequences. Requirements for labour standards in the supply chain were outlined in PR2;

requirements for supply chains for living natural resources were defined in PR6.

Project Monitoring and Reporting

20. Darway monitored the environmental and social performance of the project. This monitoring

intendeded: (i) to determine whether the project was being implemented in accordance with the

PRs and (ii) to learn lessons, allocate resources and identify opportunities for continuous

improvement. Monitoring was an integral part of the ESMP and the ESMS.

21. Monitoring requirements were commensurate and proportional with the nature of the

project and its environmental and social impacts and issues. Monitoring addressed:

•

Any significant environmental and social impacts and issues identified during

the environmental and social assessment process;

•

Relevant parts of the PRs as identified during project assessment process and

subsequent monitoring as appropriate;

•

Actions specified in the ESMP or ESAP, where relevant;

•

Grievances received from workers and external stakeholders, and how they were

resolved;

•

Any regulatory monitoring and reporting requirements, and;

•

Any monitoring /reporting required by other parties (for example, off-takers,

financiers; certification bodies).

22. Darway ensured that adequate systems, resources and personnel were in place to carry out

monitoring. Darway reviewed the results of monitoring and initiated corrective actions as

necessary. In addition, Darway used third parties, such as independent experts, local

communities or civil society organisations, to complement or verify its own monitoring information.

Where relevant authorities or other third party had responsibility for managing specific impacts

and issues and associated mitigation measures, Darway collaborated with the relevant

authorities or other third parties in establishing and monitoring such mitigation measures.

23. Darway prepared regular reports on the environmental and social performance of the

project, including compliance with the PRs and implementation of the ESMS, ESMP, ESAP

and Stakeholder Engagement Plan where appropriate. Based on the monitoring results Darway

identified and reflected any necessary corrective and preventive actions in an amended ESMP

or ESAP. Darway implemented agreed corrective and preventive actions, and follow up on these

actions to ensure their effectiveness.

24. For projects that could have significant adverse environmental and social impacts and

issues, Darway engaged specialists to perform periodic independent audits of the project, or to

carry out monitoring of specific environmental or social issues. The scope of this work and

follow-up actions were determined on case-by-case basis.

29. Consistent with the goal of continuous improvement, Darway used the results of monitoring to

identify opportunities to reduce the project’s environmental and social impact and enhance

environmental and social performance.

Darway Performance Requirement 2: Labour and Working Conditions

Introduction

1. This Performance Requirement (“PR”) recognises that for any business, the workforce is a

valuable asset, and that good human resources management and a sound worker- management

relationship based on respect for workers’ rights, including freedom of association and right to

collective bargaining, are key ingredients to the sustainability of the enterprise. By treating

workers fairly and providing them with safe and healthy working conditions, Darway created

tangible benefits, such as enhancement of the efficiency and productivity of their operations.

Conversely, failure to establish and foster a sound worker/management relationship can

undermine worker commitment and retention, jeopardise a project and damage the Darway’s

reputation.

Objectives

2. The objectives of this PR are to:

•

Promote the fair treatment, non-discrimination, and equal opportunity of workers;

•

Establish, maintain and improve a sound worker-management relationship;

•

Promote compliance with any collective agreements to which Darway is a party, national labour

and employment laws, and the fundamental principles and key regulatory standards embodied in

the ILO conventions that are central to this relationship;

•

Protect and promote the safety and health of workers, especially by promoting safe and healthy

working conditions, and;

•

Avoid the use of forced labour and child labour (as defined by the ILO).

Scope of application

3. Darway, as part of its environmental and social assessment process, identified the relevant

requirements of this PR, and how they would be addressed as an integral part of the Darway’s

overall Environmental and Social Management System (“ESMS”) and/or the project’s

Environmental and Social Management Plan (“ESMP”). The environmental and social appraisal

and management requirements are outlined in PR 1.

4. Throughout this PR, the term “workers” is used to refer to the employees of Darway, including

part-time, temporary, seasonal, and migrant workers. The applicability of the PR to non-employee

workers is set out in paragraph 21. Supply chain related labour issues are addressed in

paragraphs 24 and 25.

Requirements

Management of Worker Relationships

Human Resources Policies

5. Darway adopted and/or maintained human resources policies and management systems or

procedures appropriate to its size and workforce that sets out its approach to managing the

workforce consistent with the requirements of this PR and national law. These policies were

clear, understandable and accessible to workers. At a minimum, the Darway’s human resources

policies, procedures and standards were designed to meet the objectives of this PR outlined

under paragraph 2 above.

Working Relationships

6. Darway documented and communicated to all workers their rights under national labour and

employment law and any applicable collective agreements, working conditions and terms of

employment including their entitlement to wages, hours of work, overtime arrangements and

overtime compensation, and any benefits (such as leave for illness, maternity/paternity, or

holiday), and when any material changes occur. Human resources management systems will

respect the worker’s right to privacy and data protection.

7. Worker communications were managed with a view to providing the workers with: (i)

adequate information on changes anticipated that might affect the workforce on a regular basis

in accordance with national law and practice and the provisions of any agreement with worker

representatives; and (ii) the opportunity to provide comments as part of continuous improvement,

including how to raise grievances as detailed in paragraph 17.

Working Conditions and Terms of Employment

General

8. Projects were required to comply, at a minimum, with:

•

national labour, social security and occupational health and safety laws, and;

•

the principles and standards embodied in the ILO conventions related to:

a) the abolition of child labour; b) the elimination of forced labour; c) the elimination of

discrimination related to employment; and d) the freedom of association and collective bargaining.

Child labour

9. Darway did not employ children in a manner that is economically exploitative, or is likely to be

hazardous or to interfere with the child’s education, or to be harmful to the child’s health or

physical, mental, spiritual, moral, or social development. Young people below the age of 18 years

were identified by Darway and were not employed in hazardous work.

Forced labour

10. Darway did not employ forced labour, which consists of any work or service, not voluntarily

performed that is exacted from an individual under threat of force or penalty.

This covers any kind of involuntary or compulsory labour, such as indentured labour,

bonded labour or similar labour-contracting arrangements, or trafficked persons.

Non-Discrimination and Equal Opportunity

11. Projects complied with Nigeria’s requirements on non-discrimination related to

employment. In particular, with reference to the project, Darway:

•

did not make employment decisions on the basis of personal characteristics, such as gender,

race, nationality, ethnic, social or indigenous origin, religion or belief, marital or family status,

disability, age or sexual orientation, unrelated to inherent job requirements;

•

based the employment relationship on the principle of equal opportunity and fair treatment,

and did not discriminate with respect to all aspects of the employment relationship, including

recruitment and hiring, job assignment, compensation (including wages and benefits), working

conditions and terms of employment, access to training, promotion, termination of employment or

retirement, and discipline, and;

•

took measures to prevent and address harassment, including sexual harassment, bullying,

intimidation, and/or exploitation.

Special measures of protection or assistance to remedy past discrimination or promote local

employment opportunities or selection for a particular job based on the inherent requirements of

the job, which are in accordance with national law, were not be deemed discrimination.

Workers’ Organisations

Darway did not discourage workers from electing workers’ representatives, forming or joining

workers’ organisations of their choice or from bargaining collectively, and did not discriminate or

retaliate against workers who act as representatives, participate, or seek to participate, in such

organisations or bargain collectively. In accordance with national law, Darway engaged with such

workers’ representatives or organisations and provided them with information needed for

meaningful negotiation in a timely manner. Where national law substantially restricts the

establishment or functioning of workers’ organisations, Darway enabled means for workers to

express their grievances and protect their rights regarding working conditions and terms of

employment. These means were not under the influence or control of Darway.

Wages, benefits and conditions of work

12. Wages, benefits and conditions of work (including hours of work) offered were, overall, be at

least comparable to those offered by equivalent employers in the relevant country/region and

sector concerned. Where Darway is a party to a collective bargaining agreement or is otherwise

bound by it, such agreement will be respected. Since there are no unions or association yet,

Darway is not party to collective bargaining or agreement yet.

Occupational Health and Safety (OHS)

13. Darway provided the workers with a safe and healthy work environment, and projects

complied with the provisions of PR4 Health and Safety.

Worker Accommodation

14. Where Darway provided accommodation for workers, the accommodation was appropriate

for its location and clean, safe and, at a minimum, met the basic needs of workers. In particular,

the provision of accommodation met good international industry practice. Workers’ freedom of

association and freedom of movement to and from the employer-provided accommodation was

unduly restricted.

Retrenchment

15. There was no case of retrenchment yet but prior to implementing any collective dismissals in

connection with a project, Darway will carry out an analysis of alternatives to retrenchment. If the

analysis does not identify viable alternatives to retrenchment, Darway will develop and

implement a retrenchment plan to assess, reduce and mitigate the adverse impacts of

retrenchment on workers, in line with national law and good international industry practice and

based on the principles of non-discrimination and consultation. The selection process for

redundancy will be transparent, based on fair, objective, consistently applied criteria, and

subject to a grievance procedure.

Without prejudice to more stringent provisions in national law, consultation will involve reasonable

notice of employment changes to workers and their representatives and, where appropriate,

relevant public authorities, so that the retrenchment plan may be examined jointly in order to

reduce and mitigate adverse effects of job losses on the workers concerned. The outcome of the

consultations will be reflected in the final retrenchment plan. All outstanding back pay, pension

contributions and benefits will be paid: (i) on or before termination of the working relationship to

the workers; (ii) where appropriate, for the benefit of the workers; or (iii) payment will be made in

accordance with a timeline agreed through a collective agreement.

Grievance Mechanism

16. Darway provided a grievance mechanism for workers (and their organisations, where

they exist) to raise reasonable workplace concerns. Darway informed the workers of the

grievance mechanism at the time of hiring, and made it easily accessible to them. The mechanism

involved an appropriate level of management and address concerns promptly, using an

understandable and transparent process that provides timely feedback to those concerned,

without any retribution. The mechanism allowed for confidential complaints to be raised and

addressed. The mechanism did not impede access to other judicial or administrative remedies

that might be available under law or through existing arbitration procedures, or substitute for

grievance mechanisms provided through collective agreements.

Non-Employee Workers

In the case of non-employee workers engaged by Darway through contractors or other

intermediaries to work on project sites or perform work directly related to the core functions of

the project, Darway: (i) ascertained that these contractors or intermediaries were reputable and

legitimate enterprises; and (ii) required that they apply the requirements stated in paragraphs 6

to 17 above. When Darway contracted non-employee workers directly, Darway applied the

requirements of paragraphs 6 to 15 and 17 above.

17. In accordance with PR1, Darway established policies and procedures for managing and

monitoring the performance of third party employers in relation to the project and requirements of

this PR. In addition, Darway used reasonable efforts to incorporate these requirements in

contractual agreements with such third party employers and where relevant, developed and

implemented a contractor management plan.

18. Darway ensured that non-employee workers as described in PR2.18 had access to a

grievance mechanism that meets the requirements of PR2. In cases where the third party was

not able to provide a grievance mechanism Darway extended its own grievance mechanism to

serve workers engaged by the third party.

Supply Chain

19. As part of the environmental and social assessment process outlined in PR1, where Darway

could reasonably exercise control over its primary suppliers, Darway assessed the risk of child

labour and forced labour being used in its supply chains of goods and materials which are central

to the core functions of the project (“core supply chains”).

20. We do not have a case like this yet but if Darway learns that child labour or forced labour in

contravention with ILO standards are present in a core supply chain, Darway will take

appropriate steps to remedy this in accordance with the following requirements:

(i) In relation to child labour, Darway will only continue to procure such goods or materials

having received satisfactory undertakings or evidence that the supplier is

committed to implementing a programme in line with good international practice to

eliminate such practices within a reasonable time frame. Darway will report on progress

with the implementation of such programmes on a regular basis.

(ii) In relation to forced labour, Darway will only continue to procure such goods or

materials having received satisfactory undertakings or evidence that the supplier has taken

appropriate steps to eliminate the conditions that constitute forced labour.

Additionally, where significant safety issues are identified among core supply chain workers,

Darway will introduce procedures and mitigation measures to ensure that relevant suppliers are

taking steps to prevent or correct life-threatening situations.

21. The ability of Darway to fully address these risks will depend upon the Darway’s level of

management control or influence over its primary suppliers. Where remedy is not possible,

Darway will shift the affected core supply chain over time to suppliers that can demonstrate that

they are complying with this Performance Requirement.

Darway Performance Requirement 3: Resource Efficiency and Pollution Prevention and Control

Introduction

1. This Performance Requirement (“PR”) recognises that increased economic activity and

urbanisation often generate increased levels of pollution to air, water, and land, and consume

finite resources in a manner that may threaten people and the environment at the local, regional,

and global levels. Therefore, resource efficiency and pollution prevention and control are essential

elements of environmental and social sustainability and projects must meet good international

practices (“GIP”) in this regard.

2. This PR acknowledges the importance of using best available techniques and GIP to optimise

resource use and efficiently prevent and control the release of pollutants into the environment.

3. This PR outlines a project-level approach to resource management and pollution prevention

and control, building on the mitigation hierarchy, the principle that environmental damage

should as a priority be rectified at its source, and the “polluter pays” principle. The impacts and

issues associated with resource use, and the generation of waste and emissions need to be

considered for a project in the context of its location and local environmental conditions, as

appropriate.

Objectives

4. The objectives of this PR are:

•

To identify project-related opportunities for energy, water and resource efficiency

improvements and waste minimisation;

•

To adopt the mitigation hierarchy approach to addressing adverse impacts on human health

and the environment arising from the resource use and pollution released from the project; and,

•

To promote the reduction of project-related greenhouse gas emissions.

Scope of Application

5. Darway, as part of its environmental and social assessment process, identified the relevant

requirements of this PR, and how they addressed and managed through the project design,

construction, operations, and decommissioning or closure and reinstatement. The implementation

of the actions necessary to meet the requirements of this PR were managed under the Darway’s

overall environmental and social management system (“ESMS”) and project specific

environmental and social management plans (“ESMPs”). The environmental and social appraisal

and management requirements are outlined in PR 1.

Requirements

Resource Efficiency

6. Darway’s environmental and social assessment process identified opportunities for resource

efficiency relating to the project in accordance with GIP. Darway identified and adopted

technically and financially feasible and cost effective measures for minimising its consumption

and improving efficiency in its use of energy, water and other resources and material inputs as

well as for recovering and re-utilising waste materials in implementing the project. The key focus

was on activities that are considered the project’s core functions, but similar opportunities in the

Darway’s other business activities that are not part of the project were also considered. Where

benchmarking data are available, the Darway’s assessment made a comparison of its

operations with GIP to establish the relative level of efficiency.

7. Resource efficiency measures integrated the principles of cleaner production into product

design and production processes with the objective of conserving raw materials, energy and water

and at the same time reducing release of pollutants into the environment. Darway’s assessment

also reviewed alternative sources and supplies or resources and consumption offsets to reduce

total demand for resources within the available supply, and evaluated alternative project

locations.

Pollution Prevention and Control

8. Darway’s environmental and social assessment process determined the appropriate pollution

prevention and control methods, technologies and practices (“techniques”) to be applied to the

project. The assessment took into consideration the characteristics of the facilities and

operations that are part of the project, the project’s geographical location and local ambient

environmental conditions. The assessment process identified technically and financially feasible

and cost effective pollution prevention and control techniques that are best suited to avoid or

minimise adverse impacts on human health and the environment.

The techniques applied to the project favoured the prevention or avoidance of risks and impacts

over minimisation and reduction in line with the mitigation hierarchy approach and consistent with

GIP, and were appropriate to the nature and scale of the project’s adverse impacts and issues.

9. Throughout the project lifecycle, Darway applied pollution prevention and control techniques

consistent with the mitigation hierarchy approach to minimise potential adverse impacts on human

health and the environment while remaining technically and financially feasible and cost effective.

This applied to the release of pollutants due to routine, non- routine or accidental circumstances.

Greenhouse Gases

10. Darway’s environmental and social assessment process considered alternatives and

implement technically and financially feasible and cost-effective options to avoid or minimise

project-related greenhouse gases (“GHG”) emissions during the design and operation of the

project. These options included, but were not limited to, alternative project locations, adoption of

renewable or low carbon energy sources, sustainable agricultural, forestry and livestock

management practices, the reduction of fugitive emissions and the reduction of gas flaring.

11. For projects that currently produce, or are expected to produce post-investment, more than

25,000 tonnes of CO2-equivalent annually, Darway quantified these emissions in accordance

with Darway Methodology for Assessment of Greenhouse Gas Emissions. The scope of GHG

assessment included all direct emissions from the facilities, activities and operations that are

part of the project or system, as well as indirect emissions associated with the production of

energy used by the project. Quantification of GHG emissions were conducted by Darway

annually in accordance with Darway Methodology for Assessment of Greenhouse Gas Emissions.

Water

12. Darway minimised the project’s water use, and in situations where a project specific water

supply needs to be developed, Darway utilised water for technical purposes that is not fit for

human consumption, where feasible.

13. All reasonable opportunities for water minimisation, reuse and recycling in accordance with

GIP were evaluated as part of the project design.

14. For projects with a high water demand (greater than 5,000 m3/day), the following were

applied:

•

A detailed water balance must be developed, maintained and reported annually;

•

Opportunities for continuous improvement in terms of water use efficiency;

•

Specific water use (measured by volume of water used per unit production) must be

assessed; and

•

Benchmark operations to available industry standards of water use efficiency.

15. Darway considered the potential cumulative impacts of water abstraction upon third party

users and local ecosystems. Where relevant, Darway assessed the impacts of its activities on

the water supply to third parties and demonstrated that its proposed water supply will not have

adverse impacts to the water resources crucial to third parties or to sensitive ecosystems. As

part of Darway’s environmental assessment process, Darway will identified and implemented

appropriate mitigation measures that favour the prevention or avoidance of risks and

impacts over minimisation and reduction in line with the mitigation hierarchy approach and GIP.

Wastes

16. Darway avoided or minimised the generation of hazardous and non-hazardous waste

materials and reduce their harmfulness as far as practicable. Where waste generation could not

be avoided but has been minimised, Darway reused, recycled or recovered waste, or use it as a

source of energy; where waste cannot be recovered or reused, Darway treated, destroyed, and

disposed of it in an environmentally sound manner. When the generated waste was considered

hazardous, Darway assessed economically feasible alternatives for its environmentally sound

disposal considering the limitations applicable to its transboundary movement. When waste

disposal was conducted by third parties, Darway used contractors that are reputable and

legitimate enterprises licensed by the relevant regulatory agencies.

Safe Use and Management of Hazardous Substances and Materials

17. In all activities directly related to the project, Darway avoided or minimised the use of

hazardous substances and materials, and consider the use of less hazardous substitutes for such

substances and materials so as to protect human health and the environment from their potential

harmful impacts. Where avoidance was not feasible, Darway considered the safety of their uses

and apply appropriate risk management measures in order to minimise or control the release of

such substances/materials into air, water and/or land resulting from their production,

transportation, handling, storage, use and disposal relating to project activities. Darway avoided

the manufacture, trade, and use of hazardous substances and materials subject to international

bans or phase-outs due to their high toxicity to living organisms, environmental persistence,

potential for bioaccumulation, or potential for depletion of the ozone layer.

For the purposes of this PR, waste is defined as any substance or object which the holder discards or intends or is

required to discard.

Darway Performance Requirement 4: Health and Safety

Introduction

1. This Performance Requirement (“PR”) recognises the importance of avoiding or mitigating a

project’s adverse health and safety impacts and issues on workers, project- affected communities

and consumers as a priority.

2. Project activities, equipment, and infrastructure may increase the potential for worker and

community exposure to health and safety risks and impacts arising from project activities,

including those associated with construction, operations and decommissioning; or of transport

of raw and finished materials.

3. Communities may also be affected by a project’s direct or indirect impacts on resources,

exposure to diseases, and temporary or permanent changes in population. While

acknowledging relevant authorities’ role in promoting the health and safety of the public, this PR

addresses Darway’s responsibility to identify, avoid, minimise or mitigate the risks and adverse

impacts health and safety of the affected communities that may arise from the project.

4. This PR recognises that both Darway and their workers have the responsibility to look

after health and safety at work. Darway is responsible for ensuring workers are appropriately

informed, instructed, trained and consulted on health and safety. The workers have the

responsibility to take care of their own and other people’s health and safety, cooperate actively

with their employer on safety and health, follow the training they have received for doing their

job safely, and for using equipment, tools, substances, etc., and tell someone (employer,

supervisor or worker representative) if they think the work itself – or inadequate safety measures

are putting anyone’s safety and health at risk.

Objectives

5. The objectives of this PR are:

•

Protect and promote the safety and health of workers, by ensuring safe and healthy working

conditions and implementing a health and safety management system, appropriate to the relevant

issues and risks associated with the project;

•

To anticipate, evaluate, and prevent or minimise adverse impacts on the health and safety of

project-affected communities and consumers during the project life cycle from both routine and

non-routine circumstances.

Scope of Application

6. Darway, as part of its environmental and social assessment process, identified the relevant

requirements of this PR, and how they addressed and managed through the project

life-cycle. The implementation of the actions necessary to meet the requirements of this PR was

managed as an integral part of Darway’s overall Environmental and Social Management System

(“ESMS”) and/or the project’s Environmental and Social Management Plan (“ESMP”), as outlined

in PR1.

7. The applicable requirements to address potential risks and impacts to the workers and affected

communities may vary from stage to stage of the project, including construction, start-up,

operation, and decommissioning. Detailed requirements for the prevention and control of impacts

on human health and the environment due to release of pollution are found in PR 3; while labour

and working conditions other than worker health and safety are addressed in PR 2.

8. Throughout this PR, the term “workers” is used to refer to the employees of Darway, including

part-time, temporary, seasonal, and migrant workers, and non-employee workers engaged by

Darway through contractors or other intermediaries, employed to work on project sites or perform

work directly related to the core functions of the project.

Requirements

General

9. Darway took steps to prevent accidents, injury, and disease arising from, associated with, or

occurring in the course of work associated with the project and establish preventative measures

and plans, so far as reasonably practicable, to manage risks to an acceptable level. These

measures followed the mitigation hierarchy approach and GIP.

10. At times, measures to avoid or mitigate community health and safety impacts of the project

may be the responsibility of the relevant public authorities as established by law. Under these

circumstances, Darway specified its role and its responsibility to notify and collaborate with the

relevant authorities.

11. Darway provided workers and affected communities with relevant information, instruction

and training relating to health and safety hazards, risks, protective and preventive measures and

emergency arrangements that are necessary for their safety throughout the project.

12. Where any accident, injury and disease arise or occur in the course of works associated with

the project, or there is a high potential of such an event, Darway investigated, documented and

analysed the findings and adopted measures to prevent reoccurrence and, where required by

law, notified and collaborated with the relevant authorities.

Occupational Health and Safety

13. Darway provided workers with a safe and healthy workplace, taking into account inherent

risks in its particular sector and specific classes of hazards in Darway’s work areas and relevant

Nigeria Occupational Health and Safety (“OHS”) standards. Darway identified the specific

actions and/or measures to be taken in line with GIP, appropriate to the stage, size and nature of

the project, and manage these measures through Darway’s overall ESMS and integrated into the

project-specific ESMP.

14. During the course of any work activity Darway ensured that all workers were provided with

continued and appropriate supervision to ensure adequate implementation, maintenance and

enforcement of control measures during all work activities.

15. Darway consulted and encouraged their workers to participate in matters related to health

and safety in the workplace. That included, although not limited to, accident investigation, risk

assessment and selection work of equipment.

16. Where there were specific risks associated with certain work activities that could result in

adverse effect on the health and safety of workers with sensitivities such as age, gender,

disability or other short or long term health conditions, Darway carried out an individual risk

assessment and make reasonable adjustments to prevent injury and ill health.

Community Health and Safety

17. Darway, as part of its environmental and social assessment process, identified and

evaluated the risks and potential adverse impacts to the health and safety of the potentially

affected communities and collaborate with the relevant authorities and other stakeholders, as

appropriate, on mitigation measures and plans, in a manner commensurate and proportional with

the identified risks and impacts. These measures favoured the prevention or avoidance of risks

and impacts over minimisation and reduction in line with the mitigation hierarchy approach and

GIP.

Infrastructure, Building, and Equipment Design and Safety

18. Darway incorporated health and safety considerations into the design, construction,

operation and decommissioning of the structural elements or components of the project in

accordance with GIP taking into consideration safety risks to third parties and affected

communities. Structural elements were designed and constructed by qualified and experienced

professionals. Third-party life and fire safety audits were undertaken both for existing buildings,

which are used for communal purposes and for new buildings prior to their commissioning or

use.

19. Buildings used for communal purposes were designed and constructed in accordance with

the concept of universal access.

20. We do not have such cases yet but when structural elements or components, such as

dams, tailings dams or ash ponds, are situated in high-risk locations and their failure or

malfunction may threaten the safety of communities, Darway will engage one or more qualified

experts with relevant and recognised experience in similar projects, separate from those

responsible for the design and construction, to conduct a review as early as possible in project

development and throughout the stages of project design, construction, operation, and

commissioning. For projects that operate moving equipment on public roads and other forms of

infrastructure, Darway will seek to prevent the occurrence of incidents and injuries to members

of the public associated with the operation of such equipment.

Hazardous Materials Safety

21. Darway prevented or minimised the potential for community and worker exposure to

hazardous materials that were released by the project. Where there is a potential for workers

and the affected community to be exposed to hazards, Darway exercised due care to avoid or

minimise their exposure by modifying, substituting or eliminating the condition or substance

causing the hazards.

22. Where hazardous materials are part of existing facilities or operations associated with the

project, Darway exercised due care when conducting start-up and decommissioning activities in

order to prevent exposure of the workers and the affected community to such hazardous

materials.

Universal access means free access for people of all ages and abilities in different situations and under various

circumstances.

23. Darway took reasonable efforts to ensure the safe transport of raw materials, and

products, and transportation and disposal of wastes, and implemented measures to avoid

or control community exposure.

Product and Services Safety

24. Darway identified and evaluated potential risks and impacts of their products on consumers’

health and safety during the project assessment process. The approach to product safety

adhered to mitigation hierarchy and ensure adequate information on the product’s health and

safety risks was provided to consumers. For situations involving products which may pose

serious health threats, Darway ensured product recall and product withdrawal policy and

procedures are in place.

25. Darway complied with specified safety limitations, did not use substances prohibited by

national or international regulations, and labelled products with warnings about effects on

consumer health and safety.

26. Where the project involves provision of services to communities, Darway ensured safety

and quality of such services through appropriate quality management systems to make sure that

such services did not pose risks and impacts on community health and safety.

Traffic and Road Safety

27. Darway identified, evaluated and monitored the potential traffic and road safety risks to

workers and potentially affected communities throughout the project life-cycle and, where

appropriate, developed measures and plans to address them.

28. Darway took into consideration relevant National Road and Traffic Safety Management

standards, identified road safety measures and incorporated technically and economically

feasible road safety components into the project design to mitigate potential road safety impacts

on the local affected communities. Where appropriate, Darway undertook a road safety audit for

each phase of the project and routinely monitor incident and accident reports to identify and

resolve problems or negative safety trends. Regarding vehicles or fleets of vehicles (owned or

leased), Darway provided appropriate training to workers on driver and vehicle safety. Darway

ensured regular maintenance of all project vehicles.

Natural Hazards

29. Darway avoided or minimised the exacerbation of impacts caused by natural hazards, such

as landslides or floods that could arise from land use changes due to project activities.

Exposure to Disease

30. Darway identified those diseases that could be transmitted by the project activities or its

workers. Where appropriate, action plans were developed, in collaboration with relevant

authorities, to help prevent or minimise the potential for worker and community exposure to

diseases that could result from, or be adversely influenced by the project, taking into consideration

differentiated exposure to and higher sensitivity of vulnerable groups. Where specific diseases

are endemic in communities affected by the project, Darway identified opportunities throughout

the project life-cycle to improve conditions that could help reduce their incidence, both among the

workers and communities. Darway took measures to avoid or minimise transmission of

communicable diseases that may be associated with the influx of temporary and/or permanent

project labour.

Emergency Preparedness and Response

31. Darway was prepared to respond to process upsets, accidental and emergency situations in

a manner appropriate to the operational risks related to the project and the need to prevent or

minimise their potential adverse impacts.

32. As part of Darway’s assessment of worker and community health and safety risks related to

the project, Darway identified major-accident hazards, and took all measures necessary to

prevent major accidents or limit their adverse impacts on workers, affected communities and the

environment, with a view to ensuring high levels of protection to humans and the environment in

a consistent and effective manner. Such measures were identified in a major-accident

prevention/emergency preparedness policy and an appropriate management plan, integrated into

Darway’s overall ESMS, including organisational structures, responsibilities, procedures,

communication, training, resources and other aspects required to implement such a policy to

ensure Darway had the capacity to respond effectively to emergencies associated with project

hazards, with the overall objective to:

•

contain and control incidents so as to minimise the effects, and to limit damage to humans, the

environment and property;

•

implement measures necessary to protect humans and the environment from the effects of

major accidents;

•

communicate the necessary information to relevant emergency services or authorities, as well

as to the potentially affected workers and public; and,

•

provide for the restoration and clean-up of the environment following a major accident.

33. For projects where major-accident risk is present, Darway assisted and collaborated with the

relevant authorities and the project affected community in their preparations to respond effectively

to emergency situations, especially when their participation and collaboration were included in

the emergency response plans. When local authorities or responders have little or no capacity to

respond effectively, Darway played an active role in preparing for and responding to

emergencies associated with the project, and will provide adequate evidence to demonstrate

capacity to respond to reasonably predictable incidents, either directly or indirectly (e.g. with the

assistance of emergency responders, third party contracted responders, insurance).

Security Personnel Requirements

34. When Darway retained employees or contractors to provide security to safeguard its

personnel and property, it agreed a standard of practice and behaviour for the security personnel,

guided by the principle of proportionality and GIP, in terms of hiring, rules of conduct, training,

equipping and monitoring of such personnel. Darway made reasonable inquiries to satisfy itself

that those providing security services were not implicated in past abuses, ensured they were

trained adequately in the use of force (and where applicable, firearms) and appropriate conduct

toward workers and the local community, and require them to act within the applicable law.

Darway did not sanction any use of force except when used for preventive and defensive

purposes in proportion to the nature and extent of the threat. Darway established and

maintained grievance mechanisms to allow the affected community and workers to express

concerns about the security arrangements and actions of security personnel, and informed

communities and workers of the availability and use of the grievance mechanisms, in

accordance with PR 2.

35. When government security personnel are deployed to provide security services for Darway,

Darway identified and assessed potential risks arising from such use, communicated to the

relevant public authorities its intent that the security personnel act in a manner consistent with

paragraph 30 above, and encourage the relevant public authorities to disclose the security

arrangements for the Darway’s facilities to the public, subject to overriding security concerns.

36. Though no such cases yet but Darway will investigate any allegations of unlawful or abusive

acts of security personnel, take action (or urge appropriate parties to take action) to prevent

recurrence, and report unlawful and abusive acts to public authorities when appropriate.

Darway Performance Requirement 5: Land Acquisition, Involuntary Resettlement and Economic

Displacement

Introduction

1. Involuntary resettlement refers both to physical displacement (relocation or loss of shelter) and

economic displacement (loss of assets or resources, and/or loss of access to assets or resources

that leads to loss of income sources or means of livelihood) as a result of project- related land

acquisition

and/or restrictions on land use.

2. Resettlement is considered involuntary when affected individuals or communities do not have

the right to refuse land acquisition or restrictions on land use that result in displacement. This

occurs in cases of: (i) lawful expropriation or restrictions on land use based on eminent domain;

and (ii) negotiated settlements in which the buyer can resort to expropriation or impose legal

restrictions on land use if negotiations with the seller fails.

3. Darway will not knowingly participate in projects which either involve or result in forced

Evictions.

4. Application of this Performance Requirement (“PR”) supports and is consistent with the

universal respect for, and observance of, human rights and freedoms and specifically the right to

adequate housing and the continuous improvement of living conditions. In cases where there has

already been displacement as a result of conflict, this PR is guided by the Guiding Principles on

Internal Displacement.

5. Unless properly managed, involuntary resettlement may result in long-term hardship and

impoverishment for affected persons and communities, as well as environmental damage, and

adverse socio-economic impacts in areas to which they have been displaced. Under some

circumstances, poorly executed involuntary resettlement may leave Darway exposed to legal

action. For these reasons, involuntary resettlement were avoided. However, where it is

unavoidable, resettlement were minimised and appropriate measures to mitigate adverse

impacts on displaced persons and host communities were carefully planned and implemented.

Experience demonstrates that the direct involvement of Darway in resettlement activities and an

assessment at the earliest stage possible in the project design, could result in cost- effective,

efficient, and timely implementation of those activities, as well as promote innovative

approaches to improving the livelihoods and standards of living of those affected by resettlement

Land acquisition includes both outright purchases of property and purchases of access rights, such as easements or

rights-of way. 2

Examples include loss of access to state-owned sub-surface mineral rights by artisanal miners; loss of

access to

marine fishing grounds due to project activities; restriction of access to resources located within

state-determined exclusion zones not acquired by Darway; and demonstrated decreases in agricultural, livestock,

forest, hunting and fishing yields resulting from project-related disturbance and/or pollution.

Objectives

6. The objectives of this PR are:

•

To avoid or, when unavoidable, minimise, involuntary resettlement by exploring alternative

project designs;

•

To mitigate adverse social and economic impacts from land acquisition or restrictions on

affected persons’ use of and access to assets and land by: (i) providing compensation for

loss of assets at replacement cost; and (ii) ensuring that resettlement activities are

implemented with appropriate disclosure of information, consultation, and the informed

participation of those affected;

•

To improve or, at a minimum, restore the livelihoods and standards of living of displaced

persons to pre-displacement levels; and,

•

To improve living conditions among physically displaced persons through the provision of

adequate housing with security of tenure at resettlement sites.

Scope of Application

7. This PR applies to physical or economic displacement, that can be full, partial, permanent, or

temporary, resulting from the following types of transactions:

•

Land rights or land use rights for a project acquired through expropriation or other

compulsory procedures.

•

Land rights for a project acquired through negotiated resettlements with property owners

or those with legal rights to land, including customary or traditional rights recognised or

recognisable under the laws of the country, if expropriation or other compulsory process

would have resulted upon the failure of negotiation.

•

Imposition of restrictions that result in people experiencing loss of access to physical

assets or natural resources irrespective of whether such rights of restriction are acquired

through negotiation, expropriation, compulsory purchase, or by means of government

regulation.

8. Requirements and responsibilities towards displaced persons with no recognisable legal right

or claim to the land they occupy are contained in paragraphs 19, 33 and 38 below.

9. This PR does not apply to resettlement resulting from voluntary land transactions (i.e., market

transactions in which the seller is not obliged to sell and the buyer cannot resort to expropriation

or other compulsory procedures if negotiations fail) and where such a transaction affects only

those with legal rights.

10. The applicability of this PR will be determined during the environmental and social

assessment process according to the criteria set out in Paragraphs 7 to 9 above during the

environmental and social due diligence process. Where involuntary resettlement has already

occurred, the assessment will identify a) any gaps and b) the corrective actions that may be

required to ensure compliance with this PR. An action plan shall then be agreed.

Requirements

General Requirements

11. Darway acquired land rights through negotiated settlements even if it has the legal means to

gain access to the land without the seller’s consent. Negotiated settlements help avoid

expropriation and eliminate the need to use governmental authority to remove people forcibly.

Negotiated settlements can usually be achieved by providing fair and appropriate compensation

and other incentives or benefits to affected persons or communities, and by mitigating the risks

of asymmetry of information and bargaining power.

Avoid or Minimise Displacement

12. Darway considered feasible alternative project designs to avoid or at least minimise physical

and/or economic displacement, while balancing environmental, social, and economic costs and

benefits.

Consultation

13. From the earliest stages and through all resettlement activities Darway consulted with

affected persons and communities, including host communities, and facilitate their early and

informed participation in decision-making processes related to resettlement.

•

Affected persons were given the opportunity to participate in the negotiation of the

compensation packages, eligibility requirements, resettlement assistance, suitability of proposed

resettlement sites and the proposed timing.

•

Additional requirements applied to consultations which involve Indigenous Peoples (See PR 7)

as well as individuals belonging to vulnerable groups.

•

Consultation continued during the implementation, monitoring, and evaluation of

compensation payment and resettlement so as to achieve outcomes that are consistent with the

objectives of this PR.

14. The consultation process specifically took into account any individuals or groups that may

be disadvantaged or vulnerable. In particular, it must be ensured that vulnerable groups and

women are not disadvantaged in the resettlement process, are fully informed and aware of their

rights, and are able to benefit equally from the resettlement opportunities and benefits.

Socio-Economic Assessment and Census

15. Darway carried out a socio-economic baseline assessment to describe and analyse impacts

on people affected by the project, including impacts related to land acquisition and restrictions

on land use. The assessment helped to understand the scope of impacts within a project’s

social context and the needs and rights of the affected people so as to devise appropriate actions

to minimise and mitigate resettlement impacts. This assessment was a part of broader appraisal

studies.

16. Darway carried out a detailed census as appropriate to identify persons who were to be

displaced by the project , determined those eligible for compensation and assistance, and take

an inventory of affected land and property. Seasonal resource users may not be present in the

project area during the time of the census and so special consideration should be given to the

claims of these communities.

17. In the absence of specific national government procedures, Darway would establish the cut-

off date for eligibility based on the applicable legislation and project timeline as appropriate.

Often the most practicable cut-off date is during the baseline assessment or census. Information

regarding the cut-off date will be well documented and disseminated throughout the project area.

Setting a cut-off date will discourage inflow of people who are ineligible for compensation and

assistance. Persons moving into the project location after the cut-off date such as opportunistic

squatters and recently arrived economic migrants are not entitled to compensation or other

assistance.

Compensation for Displaced Persons

18. Darway offered all displaced persons and communities compensation for loss of assets at

full replacement cost and other assistance to help them improve or at least restore their standards

of living or livelihoods of displaced persons to pre-displacement levels, through measures that

could be land based, wage based and/or enterprise based, so as to facilitate sustainable

improvements to their socio-economic status. Standards for compensation were transparent and

consistent within the project. Compensation was provided before displacement or imposition of

access restrictions. Where livelihoods of displaced persons were land-based, or where land was

collectively owned, where feasible Darway would offer land-based compensation, taking into

account seasonal and agricultural timing requirements as appropriate. Darway provided

opportunities to displaced persons and communities to derive appropriate development benefits

from the project.

19. Displaced persons may be classified as persons: (i) who have formal legal rights to the

land (including customary and traditional rights recognised under national laws); (ii) who do not

have formal legal rights to land at the time of the census, but who have a claim to land that is

recognised or recognisable under national laws

;

or (iii) who have no recognisable legal right or

claim to the land they occupy.

20. The documentation for ownership or occupancy, such as title deeds and lease agreements

and compensation (including the bank accounts established for payment of compensation),

should be issued in the names of both spouses or women single head of households, as

relevant to each situation, and that other resettlement assistance, such as skills training, access

to credit and job opportunities are equally available to women and adapted to their needs.

21. We did not encounter this kind of situation but Darway will consider offering alternative

methods and/or modalities for compensation especially in regions where women are less likely

to have access to formal financial institutions or have bank accounts. Under circumstances in

which national law and tenure systems do not recognise the rights of women to hold or contract in

property, provision should be made to ensure, to the extent possible, that the access of women to

security of tenure is equivalent to that of men.

Grievance Mechanism

22. The grievance mechanism was established by Darway consistent with this PR and in

accordance with the objectives and principles of PR 9 will be set up as early as possible to receive

and address in a timely fashion specific concerns about compensation and relocation that were

raised by displaced persons and/or members of host communities, including a recourse

mechanism designed to resolve disputes in an impartial manner.

Resettlement Policy and/or Livelihood Restoration Framework

23. Where the exact nature or magnitude of the land acquisition or restrictions on land use related

to a project with potential to cause physical and/or economic displacement is unknown due to the

project development stage, Darway developed a Resettlement Policy and/or Livelihood

Restoration Framework outlining general principles, procedures and entitlement framework

compatible with this Performance Requirement. Once the individual project components are

defined and the required information becomes available, the framework will serve as a basis for

the development of a detailed Resettlement Action Plan (“RAP”) or Livelihood Restoration Plan

(“LRP”) in accordance with paragraphs 28 to 40 below.

Monitoring

24. Monitoring of the resettlement and livelihood restoration process were carried out in

accordance with PR 1 and may involve the participation of key stakeholders such as affected

communities.

25. This PR will consider resettlement complete when the adverse impacts of resettlement have

been addressed in a manner that is consistent with the objectives stated in the RAP/LRP as well

as the objectives of this PR.

26. Depending on the scale of a project’s resettlement, it was appropriate for Darway to

commission an external completion report of the RAP/LRP to determine that the provisions have

been met. The completion report should be undertaken after all inputs in the process– including

any developmental initiatives – have been completed. The report will enable Darway to complete

corrective actions, if any, as recommended by the report. Based on the outcome of the completion

report, an evaluation will be carried out to determine if the objectives of this PR have been met.

In the majority of cases, the completion of corrective actions identified by the completion report

should bring Darway’s responsibility for resettlement, compensation, livelihood restoration and

development benefits to a close.

Specific Requirements

Displacement

27. Project-related land acquisition and/or restrictions on land use often leads to both – physical

displacement of people as well as their economic displacement. Thus, the requirements of this

PR in respect of physical displacement and economic displacement may apply simultaneously.

In such case, the specific requirements concerning economic displacement established in

paragraphs 36 through 40 should be incorporated into the Resettlement Action Plans or

Frameworks respectively.

Physical Displacement

28. In the case of transactions as described in paragraph 7 that involve the physical displacement

of people, Darway developed a Resettlement Action Plan (“RAP”) that covers, at a minimum, the

applicable requirements set forth this PR, regardless of the number of people affected. The plan

was designed to mitigate the negative impacts of displacement, identify potential benefits and

establish the entitlements of all categories of affected persons (including host communities), with

particular attention paid to the needs of the vulnerable. The plan documented all procedures to

acquire land rights, as well as compensation measures and relocation activities. It established

procedures to monitor and evaluate the implementation of resettlement activities and take

corrective action as necessary.

29. The scope and level of detail of the RAP will vary with the magnitude of displacement and the

complexity of the measures required to mitigate adverse impacts. In all cases, it will describe the

ways and means by which the objectives of this PR will be achieved.

30. Darway consulted with the affected persons in preparing the RAP and summarised the

information contained in the RAP for public disclosure to ensure that affected people understand

the compensation procedures and know what to expect at the various stages of the project (e.g.,

when an offer will be made to them, how long they will have to respond, grievance procedures,

legal procedures to be followed if negotiations fail.)

31. When people living in the project area must move to another location, Darway: (i) offered

displaced persons choices among feasible resettlement options, including adequate replacement

housing or cash compensation where appropriate; and (ii) provide relocation assistance suited to

the needs of each group of displaced persons, with particular attention paid to the needs of the

poor and the vulnerable. Alternative housing and/or cash compensation will be made available

prior to relocation. New resettlement sites built for displaced persons will offer improved living

conditions.

32. In the case of physically displaced persons under paragraph 19 (i) or (ii), Darway offered the

choice of replacement property of equal or higher value, with equivalent or better characteristics

and advantages of location, or cash compensation at full replacement value where appropriate.

33. In the case of physically displaced persons under paragraph 19 (iii), Darway would offer them

a choice of options for adequate housing with security of tenure so that they can resettle legally

without having to face the risk of forced eviction.

•

Compensation in kind will be offered in lieu of cash compensation where feasible, unless

the conditions described in footnote 1 can be demonstrated to exist at a level that would

ensure outcomes consistent with this PR. This applies to those who have customary and

traditional rights recognised under the laws of the country; to claimants who, prior to the cut-

off date, do not have formal legal rights to land, but who have a claim to such land or assets,

for example, through adverse possession

; and, subject to the qualifications noted in

paragraph 19, to those who have no recognisable legal right or claim to the land they occupy.

•

Based on consultation with such displaced persons, Darway will provide relocation

assistance sufficient for them to restore their standards of living at an adequate alternative

site

34. In cases where affected persons reject compensation offers that meet the requirements of

this PR and, as a result, expropriation or other legal procedures are initiated, Darway would

explore opportunities to collaborate with the responsible government authority, and if permitted

by the authority, play an active role in the resettlement planning, implementation and

monitoring.

35. Where communities of Indigenous Peoples are to be physically displaced from their

communally held traditional or customary lands under use, Darway would meet the

applicable requirements of this PR as well as those of PR 7.

Economic Displacement

36. In the case of transactions as described in paragraph 7 involving economic displacement

only, Darway developed and implemented procedures to offer the affected persons and

communities compensation and other assistance that meet the objectives of this PR. This shall

take the form of a Livelihood Restoration Plan (“LRP”) which documents all actions undertaken

in the livelihood restoration process.

37. The LRP will establish the entitlements of affected persons and communities and will

ensure that these are provided in a transparent, consistent, and equitable manner.

38. If a transaction of the types described in paragraph 7 causes temporary or permanent loss

of income or livelihood, through for example interruption or elimination of a person’s access to

his/her employment or productive assets, regardless of whether or not the affected people are

physically displaced, Darway would:

Payment of cash compensation for lost assets may be appropriate where: (a) livelihoods are not land-based;

(b)

livelihoods are land-based but the land taken for the project is a small fraction of the affected asset and the

residual land is economically viable; or (c) active markets for land, housing, and labour exist, displaced persons

use such markets, and there is sufficient supply of land and housing. Cash compensation levels

should be sufficient to replace the lost land and other assets at full replacement cost in local markets.. 2

method

of acquisition of title to real property by possession for a statutory period under certain conditions

Relocation of informal settlers in urban areas often has trade-offs. For example, the relocated families may

gain

security of tenure, but they may lose advantages of location.

•

Promptly compensate economically displaced persons for loss of assets or access to

assets. This process should be initiated prior to displacement. Where compensation is to

be paid by a responsible government agency, Darway should collaborate with the agency

to help accelerate the payments.

•

Compensate, in cases where land acquisition affects commercial structures, the affected

business owner for (i) the cost of re-establishing commercial activities elsewhere, (ii) lost

net income during the period of transition, and (iii) the costs of the transfer and

reinstallation of the plant, machinery or other equipment, as applicable.

•

Provide replacement property (e.g., agricultural or commercial sites) of equal or greater

value, or cash compensation at full replacement cost where appropriate, to persons with

legal rights or claims to land which are recognised or recognisable under the national laws

(see paragraph 19 (i) and (ii));

•

Provide assistance that will off-set any loss of a community’s commonly held resources.

This could take the form of initiatives that enhance the productivity of the remaining

resources to which the community has access, in-kind or cash compensation for loss of

access or provision of access to alternative sources of the lost resource.

•

Compensate economically displaced persons who are without legally recognisable

claims to land (see paragraph 19 (iii)) for lost assets (such as crops, irrigation infrastructure

and other improvements made to the land) other than land, at full replacement cost.

Darway is not required to compensate or assist opportunistic settlers who encroach on the

project area after the cut-off date.

•

Provide additional targeted assistance (e.g., credit facilities, training, or job

opportunities) and opportunities to improve or at least restore their income-earning

capacity, production levels, and standards of living to economically displaced persons

whose livelihoods or income levels are adversely affected. In case of businesses

experiencing temporary losses or having to close as a result of project-related

displacement, both the owner of the business and employees losing pay or employment

are eligible for such assistance.

•

Provide transitional support to economically displaced persons, as necessary, based on

a reasonable estimate of the time required to restore their income-earning capacity,

production levels, and standards of living;

39. Darway summarised the information contained in the LRP for public disclosure to ensure

that affected people understand the compensation procedures and know what to expect at the

various stages of the project.

40. Where communities of Indigenous Peoples are economically displaced (but not relocated) as

a result of project-related land acquisition, Darway met the applicable principles of this PR as

well as those of PR 7.

Loss of Public Amenities

41. This never happened but where a project involves the loss of public amenities, Darway shall

undertake meaningful consultation, in accordance with PR9, with the locally affected community

to identify and, where possible, agree upon a suitable alternative.

Private Sector Responsibilities under Government-Managed Resettlement

42. There may be cases where land acquisition and resettlement are the responsibility of the host

government. In such cases, Darway will collaborate with the responsible government agency, to

the extent permitted by the agency, to achieve outcomes that are consistent with the objectives

of this PR. In addition, where government capacity is limited, Darway will play an active role during

resettlement planning, implementation and monitoring. Darway will prepare a plan (or a

framework) that together with the documents prepared by the responsible government agency,

will meet the requirements of this PR. Darway may need to include in its plan: (i) a description of

the entitlements of displaced persons provided under applicable laws and regulations; (ii) the

measures proposed to bridge any gaps between such entitlements and the requirements of this

PR; and (iii) the financial and implementation responsibilities of the government agency

and/or Darway.

Darway Performance Requirement 6: Biodiversity Conservation and Sustainable Management of

Living Natural Resources

Introduction:

1. This Performance Requirement (“PR”) recognises that the conservation of biodiversity

and

sustainable management of living natural resources

are fundamental to environmental and social

sustainability.

2. This PR recognises the importance of maintaining core ecological functions of habitats and the

biodiversity they support and that all habitats support complexities of living organisms and vary in

terms of species diversity, abundance, and importance. The objectives of biodiversity

conservation and sustainable management of living natural resources must be balanced with the

potential for utilising the multiple economic, social and cultural values of biodiversity and living

natural resources in an optimised manner.

3. The need to consider the livelihood of indigenous peoples and affected communities whose

access to, or use of, biodiversity or living natural resources may be affected by a project

, as well

as their potential positive role in biodiversity conservation and sustainable use of living natural

resources are fundamental principles of PR6.

Objectives:

4. The objectives of this PR are:

•

To conserve and restore biodiversity using a precautionary approach;

•

To adopt the mitigation hierarchy approach, with the aim of achieving no net loss of

biodiversity, and where appropriate, a net gain of biodiversity; and

•

To promote good international practices (“GIP”) in the sustainable management and use of

natural living resources.

Conservation of Biodiversity

Scope of Application

5. This PR applies to projects that could potentially have adverse impacts on habitats and the

biodiversity they support, irrespective of their quality or legal status.

6. The nature and scope of this PR’s applicability will be established during the environmental

and social assessment process. The assessment process will identify the specific investigations,

actions and/or measures to be taken by Darway, and will be managed through Darway’s overall

environmental and social management system (“ESMS”), project-specific

Environmental and Social Management Plans (“ESMPs”), or where appropriate, a specific

Biodiversity Action Plan,

to structure the project to meet this PR within an acceptable timeframe.

For the purpose of this PR, biodiversity is defined in accordance with the Convention on Biological Diversity as the

“variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic

ecosystems and the ecological complexes of which they are a part; this includes diversity within species, between

species and of ecosystems”. 2

“Living natural resources” are defined as being “the plants and animals cultivated for

human or animal consumption and

use, whether in the wild or in a cultivated situation. It includes all types of forestry,

agriculture, including both annual and perennial crops and animal husbandry, including livestock; and both wild and

capture fisheries including all types of marine and freshwater organisms, both vertebrate and invertebrate”. 3

For

projects that could potentially have such impacts on indigenous peoples and local communities, Darway will provide for

fair and equitable sharing of the benefits from the utilisation of living natural resources in accordance with: (i) the

requirements for environmental and social management and assessment in PR1; (ii) the requirements for addressing

economic displacement issues in PR5; (iii) the specific requirements relating to managing potential issues and impacts

on Indigenous Peoples in PR7; and (iv) the stakeholder engagement requirements in PR 9.

Requirements

Assessment of issues and impacts

7. Through the environmental and social assessment process, Darway identified and

characterised the potential project-related impacts on habitats and the biodiversity that they

support, focusing on habitat loss, degradation and fragmentation, invasive alien species,

overexploitation, hydrological changes, nutrient loading, and pollution as well as any projected

climate change impacts. The assessment process undertaken by Darway included consideration

of potential impacts on the ecological integrity of the habitats, independent of their protection

status and regardless of the degree of their disturbance or degradation. The extent of the

appraisal were sufficient to characterise the issues and impacts, based on their likelihood and the

significance and severity of impact, and reflect the concerns of potentially affected communities

and, where relevant, other stakeholders. Darway’s assessment also considered direct, indirect

and cumulative impacts and evaluate the effectiveness and feasibility of the mitigation measures

to be applied to the project.

8. Darway’s appraisal process characterised the baseline conditions to a degree that is

proportional and specific to the anticipated risk and significance of impacts. In planning and

implementing biodiversity related baseline and impact assessments, Darway referred to

relevant good practice guidance, utilising desktop and field-based approaches as required. Where

further investigations are needed to provide greater certainty of the significance of potential

impacts, Darway may carry out additional studies and/or monitoring before undertaking any

project-related activities that could cause irreversible impacts to potentially affected habitats and

the biodiversity that they support.

9. Where applicable, the appraisal considered the use of and dependence on natural resources

by indigenous peoples and project affected communities who live in or around the project area

and whose use of biodiversity resources may be affected by the project, as well as their potential

role in the conservation and sustainable use of such biodiversity resources.

10. Where projects could present biodiversity risks and impacts, Darway would adopt a practice

of adaptive management in which the implementation of mitigation and management measures

are responsive to changing conditions and the results of monitoring throughout the project’s

lifecycle.

Biodiversity conservation

11. Where priority biodiversity features

are identified as part of the appraisal process, Darway

avoided impacts on such priority biodiversity features in accordance with the mitigation

hierarchy. When avoidance of impacts to priority biodiversity features is not possible, measures

to minimise and/or mitigate these impacts and rehabilitate impacted biodiversity were

implemented. As a last resort where any residual impacts remain, Darway would consider the

use of compensatory measures where appropriate, such as biodiversity offsets.

12. Where priority biodiversity features have the potential to be adversely impacted by the

project, Darway did not implement any project related activities unless:

•

there are no technically and economically feasible alternatives; and

•

appropriate mitigation measures are put in place, in accordance with the mitigation

hierarchy, to ensure no net loss and preferably a net gain of priority biodiversity features over

the long term, or, where appropriate and supported by relevant stakeholders, the

conservation of biodiversity of greater importance.

13. Notwithstanding the above, some areas affected by the project may be considered “critical

habitat” by virtue of their importance of at least one of the following features: (i) the presence of

highly threatened habitats; (ii) Endangered

or Critically Endangered species; (iii) geographically

restricted species; (iv) migratory or congregatory species; or (v) biodiversity features that are vital

to maintaining the viability of biodiversity features described in this paragraph.

14. Where the habitat to be adversely impacted by the project is considered to be a critical habitat,

such habitat must not be further converted or degraded to the extent that its ecological

integrity or biodiversity importance is compromised. Consequently, in areas of critical habitat,

Darway did not implement any project activities unless the following conditions are met:

•

No other viable alternatives within the region exist for development of the project in habitats

of lesser biodiversity value;

•

Any due process required under international obligations or domestic law that is a

prerequisite to a country granting approval for project activities in or adjacent to a critical

habitat has been complied with;

•

The potential adverse impacts, or likelihood of such, on the habitat will not impair its ability

to function in the way(s) outlined in paragraph 13;

•

The project is designed to deliver net gains

for critical biodiversity features impacted by the

project;

•

The project is not anticipated to lead to a net reduction in the population

of any Endangered

or Critically Endangered species, over a reasonable time period;

and

•

A robust and appropriately designed, long-term biodiversity monitoring and evaluation

program aimed at assessing the status of critical habitat is integrated into Darway’s

management program.

Biodiversity Actions Plans (BAP) should typically include a series of goals, objectives and management measures

mitigate residual impacts in critical habitat to achieve net gains of priority biodiversity features. The goal/objectives

should be realistic and based on measurable targets. Each objective should outline a series of actions and include

completion indicators or monitoring targets, and the responsible party and a timeframe. BAPs should be developed in

consultation with relevant stakeholders, including government, external specialists, local/international conservation

organizations and project affected communities. 5

Priority biodiversity features are here defined as a sub-set of

biodiversity that are particularly irreplaceable or vulnerable,

but at a lower priority level than critical biodiversity

features

(as defined in Paragraph 15). As such, they comprise significant concentrations of at least one of the following features:

(i) threatened habitats; (ii) Vulnerable species; (iii) priority biodiversity identified by a broad set of stakeholders or

government; (iv) ecological integrity; and (v) biodiversity that is vital to maintaining the viability of

priority biodiversity features described in this paragraph.6

Biodiversity offsets should follow GIP and be developed

with relevant stakeholders.

As listed on the International Union for the Conservation of Nature (IUCN) Red List of

Threatened Species. The

determination of critical habitat based on other listings is as follows: (i) If the species is listed

nationally / regionally as critically endangered or endangered, in countries that have adhered to IUCN guidance, the

critical habitat determination will be made on a project by project basis in consultation with competent professionals;

and (ii) in instances where nationally or regionally listed species’ categorizations do not correspond well to those of the

IUCN (e.g., some countries more generally list species as “protected” or “restricted”), an assessment will be conducted

to determine the rationale and purpose of the listing. In this case, the critical habitat

determination will be based on such an assessment. 8

Net gains are additional conservation outcomes that can be

achieved for the biodiversity values for which the critical

habitat was designated. Net gains may be achieved through

the development of a biodiversity offset and/or, in instances where Darway could meet the requirements of paragraph

14 of this Performance Requirement without a biodiversity offset, Darway should achieve net gains

through the implementation of programs that could be implemented in situ (on-the- ground) to enhance habitat, and

protect and conserve biodiversity. 9

Net reduction is a singular or cumulative loss of individuals that impacts on the

species’ ability to persist at the global

and/or regional/national scales for many generations or over a long period of

time. The scale (i.e., global and/or regional/national) of the potential net reduction is determined based on the species’

listing on either the (global) IUCN Red List and/or on regional/national lists. For species listed on both the (global)

IUCN Red List and the national/regional lists, the net reduction will be based on the national/regional

population. 10

The timeframe in which Darway must demonstrate “no net reduction” of Critically Endangered and

Endangered species

will be determined on a case-by-case basis and, where appropriate, in consultation with external

experts.

15. In such cases where Darway was able to meet the requirements defined in paragraph 14,

the project’s mitigation strategy would be described in a Biodiversity Action Plan.

16. In instances where biodiversity offsets are proposed as part of the mitigation strategy, Darway

would demonstrate through an assessment that the project’s significant residual impacts on

biodiversity would be adequately mitigated to meet the requirements of paragraph 14.

Legally Protected and Internationally Recognised Areas of Biodiversity Value

17. Where the project occurs within or has the potential to adversely affect an area that is legally

protected

or internationally recognised

or designated for protection, Darway would identify

and assess potential project-related impacts and apply the mitigation hierarchy so as to prevent

or mitigate impacts from projects that could compromise the integrity, conservation objectives or

biodiversity importance of such an area.

Invasive Alien Species

18. Darway would avoid and proactively prevent accidental or deliberate introduction of alien

species that could have significant adverse impacts on biodiversity, specifically:

•

Darway did not intentionally introduce alien species into areas where they are not normally

found unless this is carried out in accordance with the regulatory framework governing such

introduction. Under no circumstances must species known to be invasive be introduced into

new environments.

•

During project appraisal, Darway would identify potential risks, impacts and mitigation

options related to the accidental transfer and release of alien species.

Sustainable Management of Living Natural Resources

Scope of Application

19. This PR applies to projects which involve the primary production of living natural resources

or where such resources are central to the project’s core function.

20. Darway managed living natural resources in a sustainable manner, through the application of

GIP, relevant industry-specific sustainable management practices, and the standards contained

in relevant national law, as applicable at project level.

21. Darway was responsible for adopting the specific measures to be taken to ensure

compliance with this PR, as part of the Darway’s overall ESMS and/or ESMP. Environmental

and social assessment and management requirements are outlined in PR1 and PR9.

This PR guided by the IUCN definition of ‘Protected Area’ as “a clearly defined geographical space, recognised,

dedicated and managed, through legal or other effective means, to achieve the long-term conservation of nature with

associated ecosystem services and cultural values”. 12

Defined as UNESCO Natural World Heritage Sites, UNESCO

Man-and-Biosphere Reserves, Key Biodiversity Areas and

wetlands designated under the Convention on Wetlands of

International Importance (Ramsar wetlands).

Requirements

Assessment of issues and impacts

22. Darway assessed the sustainability of the resource and its use, taking into account the rest

of PR6 and the following principles:

•

The use of any living natural resources needs to be considered in the context of the

functions it plays within the ecosystem;

•

Consideration of aggregate and cumulative impacts;

•

Users of living natural resources will follow the mitigation hierarchy approach and seek to

optimise benefits from uses; and

•

Production and/or use of species or populations that are not natural to the location and not

tested for their invasiveness and/or dominance over local species should be restricted or be

subject to adequate studies and approval by the relevant national competent authorities,

prior to production or use.

Crop and livestock production

23. Darway, when involved in the production animals would ensure that they are employing GIP

to avoid or minimise negative impacts and resource consumption.

24. Darway, when involved in the farming of animals for meat or by-products (e.g. milk, eggs,

wool) would employ good international practices and relevant national animal welfare standards

in animal husbandry techniques.

Darway Performance Requirement 7: Indigenous Peoples

Introduction

1. This Performance Requirement (“PR”) recognises that projects can create opportunities for

Indigenous Peoples to participate in and benefit from project-related activities that may help them

fulfil their aspirations for economic and social development. As government often plays a central

role in the management of issues related to Indigenous Peoples, Darway cooperated and

collaborated, as appropriate, with the responsible authorities and relevant communities in

managing the risks and impacts of their activities.

2. Partnership. This PR approaches Indigenous Peoples as partners, respecting them as people

and peoples whose values can contribute greatly to not only their own, but also to national socio-

economic development. This PR recognises, however, that Indigenous Peoples, as social groups

with identities that are distinct from dominant groups in national societies, may be among the most

marginalised and vulnerable segments of the population. Their economic, social and legal status

often limits their capacity to defend their interests in, and rights to lands and natural and cultural

resources, and may restrict their ability to participate in and benefit from development. They are

particularly vulnerable if their lands and resources are transformed, encroached upon by those

who are not members of their communities.

3. Need for Special Measures. This PR recognises that the identities, cultures, lands and

resources of Indigenous Peoples are uniquely intertwined and especially vulnerable to changes

caused by some types of investments so that their languages, cultures, religions, spiritual beliefs,

and institutions may be threatened. These characteristics expose Indigenous Peoples to

different types of risks and severity of impacts, including loss of identity, culture, and natural

resource-based livelihoods, as well as exposure to impoverishment and disease. It is further

recognised that the roles of men and women in indigenous cultures are often different from those

in the dominant groups, and that women and their children have different roles and have

frequently been marginalised both within their own communities and as a result of external

developments and may have specific needs. Due to these realities, issues related to Indigenous

Peoples are frequently complex. Moreover, the dominant culture may sometimes be unaware of

or reluctant to admit the existence of an indigenous status for certain groups of people. Thus,

special measures are required to ensure that indigenous men and women are not disadvantaged

and that they are included in, and benefit from, Darway-supported projects as appropriate.

4. Darway States of Operation. This PR recognises that the circumstances of Indigenous Peoples

in Darway’s states of operations are unique due to their particular history. Indigenous Peoples

are no longer involved solely in customary subsistence livelihoods nor can their identity be

associated solely with the pursuit of such traditional livelihoods and lifestyles. Furthermore, it is

recognised that Indigenous Peoples often live in mixed ethnicity settlements while at the

same time the continued existence of nomadism or transhumance and a history of involuntary

resettlement means that the expectation of continuing fixed links to specific territories is not

always appropriate. It is understood by this PR that Indigenous Peoples’ means and patterns of

livelihood may be quite distinct from the dominant culture, and may have also experienced

change over time.

Objectives

5. Specific objectives are as follows:

•

To ensure that the transition process fosters full respect for the dignity, human rights,

aspirations, cultures and natural resource-based livelihoods of Indigenous Peoples;

•

To both anticipate and avoid adverse impacts of projects on the lives and livelihoods of

Indigenous Peoples’ communities, or when avoidance is not feasible, to minimise, mitigate, or

compensate for such impacts;

•

To enable Indigenous Peoples to benefit from projects in a culturally appropriate manner;

•

To establish and maintain an ongoing relationship with the Indigenous Peoples affected by a

project throughout the life of the project;

•

To foster good faith negotiation with, and the informed participation of, Indigenous Peoples when

projects are to be located on traditional or customary lands used by the Indigenous Peoples, when

customary or non-traditional livelihoods will be affected by the project, or in the case of

commercial exploitation of the Indigenous Peoples’ cultural resources;

•

To recognise the principle, outlined in the UN Declaration on the rights of Indigenous Peoples

that the prior informed consent of affected Indigenous Peoples is required for the project-related

activities identified in paragraphs 33-39 below, given the specific vulnerability of Indigenous

Peoples to the adverse impacts of such projects;

•

To recognise the specific needs of women and girls of Indigenous Peoples by addressing

gender issues and mitigating potential disproportionate gender impacts of a project;

•

To recognise and respect the customary laws and customs of Indigenous Peoples and to take

these into full consideration;

•

To respect and preserve the culture, knowledge and practices of Indigenous Peoples in

accordance with their wishes.

Scope of Application

6. This PR will apply when a project is likely to affect Indigenous Peoples.

7. The applicability of this PR will be established during the environmental and social appraisal

process according to the criteria outlined in paragraphs 8-11 below. Implementation of the actions

necessary to meet these requirements is to be managed in accordance with this PR, and PRs 1,

5, 8 and 9 as appropriate.

8. There is no universally accepted definition of “Indigenous Peoples”. Indigenous Peoples may

also be referred to in different countries by different terms. It is also recognised that groups who

might not be classified as Indigenous People in one country or region, may be classified as such

in another.

9. In the Policy and this PR, the term “Indigenous Peoples” is used in a technical sense to

refer to a social and cultural minority group, distinct from dominant groups within national

societies, possessing the following characteristics in varying degrees:

•

Self-identification as members of a distinct indigenous ethnic or cultural group and recognition

of this identity by others;

•

Collective attachment to geographically distinct habitats, traditional lands or ancestral territories

in the project area and to the natural resources in these habitats and territories;

•

Descent from populations who have traditionally pursued non-wage (and often

nomadic/transhumant) subsistence strategies and whose status was regulated by their own

customs or traditions or by special laws or regulations;

•

Customary cultural, economic, social, or political institutions that are separate from those of the

dominant society or culture;

•

A distinct language or dialect, often different from the official language or dialect of the country

or region.

10. The fact that a group, or members of a group, lead a nomadic or transhumant way of life, live

in mixed or urban communities and /or only visit their traditional lands on a seasonal basis, having

experienced forced severance, is no prima facie bar to the application of this PR.

General Assembly Declaration on the Rights of Indigenous Peoples adopted on 13 September 2007

11. In ascertaining whether a particular group is considered as Indigenous Peoples for the

purpose of this PR, Darway will seek expert advice.

Requirements

12. In projects where Indigenous Peoples are likely to be affected, Darway is required to carry

out an assessment of impacts on Indigenous Peoples. Depending upon the outcome of this,

Darway is expected to first avoid adverse effects and where this is not feasible, to prepare an

Indigenous Peoples’ Development Plan as per paragraph 21 below so as to minimise and/or

mitigate any potential adverse impacts and identify benefits. Darway is also expected to engage

in informed consultation and participation with the affected indigenous communities, implement a

specific grievance mechanism and identify and determine appropriate modalities for

compensation and benefit-sharing. In carrying out consultation Darway will be mindful of the fact

that in some cases there is a seasonality to the livelihood structure of Indigenous People and

Darway should design the consultation in a way that ensures that Indigenous Peoples views are

obtained with enough time to ensure adequate input into the design process.

13. Where Darway commenced project activities that may have affected and/or may affect

Indigenous Peoples, the assessment would identify (i) any gaps and (ii) the corrective actions

that may be required to ensure compliance with this PR. An action plan shall then be agreed.

14. Where the appropriate resource is not available within Darway’s organisation, the advice of

experienced and independent social specialists would be sought throughout the course of the

Project development and implementation.

Assessment

15. Where there is a national legal requirement for a specific type of social assessment, Darway

would carry this out, in addition to carrying out any additional social assessment required by this

PR.

16. In cases where the project has not yet commenced, Darway would identify through a social

assessment process all communities of Indigenous Peoples who may be directly or indirectly

affected, both positively and negatively, by the project, as well as the nature and degree of the

expected social, cultural (including cultural heritage), and environmental impacts on them, and

the measures planned to (i) avoid or mitigate adverse impacts and (ii) share any project-related

benefits.

17. In cases where construction, project-related activities or operations have already

commenced in respect of a project, Darway provided all relevant information and documents

(including those regarding Darway’s past performance) together with a record of documents

already submitted to the authorities, to demonstrate that they have sought and acted upon the

opinions of project-affected Indigenous Peoples following, to the extent possible, the process

outlined in this PR.

18. If the requirements of paragraph 17 are not satisfied, Darway would commission an

objective and independent study of both the effects of the project on the Indigenous Peoples

population and their views regarding the project. This study, to be conducted in a culturally

appropriate manner, will review the effects to date on the lives and livelihoods of Indigenous

Peoples, the efforts of Darway to both mitigate adverse effects and to identify and share project

benefits, and the level of Indigenous Peoples’ participation in project planning and

implementation.

Avoidance of Adverse Effects

19. All efforts should first be directed towards avoiding any adverse project effects on Indigenous

Peoples. When avoidance of adverse effects is not feasible, Darway would minimise, mitigate or

compensate for these impacts in an appropriate and proportional manner.

Preparation of an Indigenous Peoples Development Plan

20. Darway’s proposed actions to minimise, mitigate and compensate for adverse effects and to

identify and share benefits will be developed with the informed participation of affected Indigenous

Peoples and contained in a time-bound plan, such as an Indigenous Peoples Development Plan

(“IPDP”), or a broader community development plan with separate components for Indigenous

Peoples. Darway would retain qualified social scientists with relevant and appropriate technical

expertise to prepare the IPDP. The IPDP would systematically assess projects’ differentiated

impact on men and women and will include actions to address differentiated impacts on groups

in the community.

The level of details and the scope of an IPDP will vary according to the specific project and nature

and scope of the project activities.

In general an IPDP will comprise the following components:

Section I – Summary of the Social Assessment

•

Baseline Information: It is important that the baseline provides an understanding of both

the community social structure of Indigenous Peoples and also the intra- household roles

and responsibilities. This will assist in developing an appropriate implementation plan.

•

Key findings: analysis of impacts, risks and opportunities.

Section II – Consultation and Participation

•

Result of consultations and plan for future engagement.

Implementation Plan

•

Measures to avoid, minimise and mitigate negative impacts and enhance

positive impacts.

•

Measures to ensure continuation of community based natural resource

management.

•

Measures to derive project benefits and/or development

opportunities.

•

Grievance mechanism.

•

Costs, budget, time table and organisational responsibilities.

•

Monitoring, evaluation and reporting.

Information Disclosure, Meaningful Consultation and Informed Participation

21. Darway established an ongoing relationship with the affected communities of Indigenous

Peoples from as early as possible in the project planning process and throughout the life of the

project. The engagement process ensured their meaningful consultation in order to facilitate

their informed participation on matters that affect them directly, proposed mitigation measures,

the sharing of development benefits and opportunities, and implementation issues.

22. Darway ensured that the project-affected Indigenous Peoples are adequately informed in a

culturally appropriate manner about the relevant PRs and about project plans affecting them,

ensuring, where relevant, measures for effective participation by all parts of the community.

23. The process of community engagement will be culturally appropriate, respectful of the

Indigenous Peoples’ collective decision making process, and commensurate with the risks and

potential impacts on the Indigenous Peoples. Darway provided adequate documented evidence

to demonstrate that this process has been adequately carried out.

24. In particular, the engagement process included the following:

•

Involvement of Indigenous Peoples’ representative bodies (for example, councils of

elders or village councils, among others), Indigenous Peoples’ organisations as well as

individually affected indigenous persons;

•

Understanding and respect for any relevant customary laws;

•

Provision of sufficient time for Indigenous Peoples’ collective decision-making process;

•

Facilitation of the Indigenous Peoples’ expression of their views, concerns, and

proposals in the language of their choice, and without external manipulation, interference,

or intimidation and in a culturally appropriate manner;

•

Disclosure to Indigenous Peoples of all relevant plans and information on potential social

and ecological impacts affecting indigenous communities in a culturally appropriate

manner and language, and without jargon;

•

Recognition of community heterogeneity, taking into account the following:

- Indigenous Peoples live in mixed communities with non-Indigenous Peoples;

- Indigenous communities are multi-vocal; consultations and participation must be

inclusive of gender, generational, and excluded groups;

•

Full documentation of the consultation process.

Grievance Mechanism and Prevention of Ethnically Based Discrimination

25. Darway ensured that the grievance mechanism established for the project, as described in

PR 9 is culturally appropriate and accessible for Indigenous Peoples; that entailed less reliance

on written procedures and more use of verbal reporting channels.

26. In Darway-financed projects where implicit factors exist that exclude Indigenous Peoples and

individuals from the benefits, such as employment opportunities, on ethnic grounds, the project

activities included such corrective measures as: (i) informing Indigenous Peoples’ organisations

and individuals of their rights under labour, social, financial, and business legislation and of the

recourse mechanisms available; (ii) appropriate and effective information dissemination, training,

and measures to eliminate barriers to benefits and resources such as

credit, employment, business services, health services and education services, and other benefits

generated or facilitated by the projects; and (iii) granting to Indigenous workers, entrepreneurs,

and beneficiaries, the same protection afforded under national legislation to other individuals in

similar sectors and categories, taking into account gender issues and ethnic segmentation in

goods and labour markets, as well as linguistic factors.

Compensation and Benefit-Sharing

27. Participatory approaches were the foundation of determining mitigation, benefits-sharing

and customary lifestyle-supporting measures. Darway ensured that the affected Indigenous

Peoples are compensated directly for any loss of livelihood (as calculated in accordance with this

PR) incurred as a result of project-related activities and reinstate any land used to its previous

status. Eligibility for compensation can either be individually or collectively-based, or be a

combination of both. Compensation will be available both for adverse effects on customary

livelihoods and for negative impacts on wage or profit- dependent economic initiatives. The nature

of “customary livelihoods” is to be interpreted flexibly (so as to include contemporary adaptations

such as ethno-tourism and food processing). When calculating compensation, Darway

adequately took into consideration the adverse social effects of the project on the traditional

lifestyles and family life of Indigenous Peoples. This shall be undertaken in cooperation with

Indigenous Peoples’ representatives and experts. The provisions of this paragraph also apply in

cases where Darway has to pay compensation to local or regional government bodies.

28. Acceptable and legally feasible ways of compensation and implementation of IPDPs were

discussed during consultations with Indigenous Peoples. Based on these consultations a

mechanism for transferring the compensation and/or resources were developed and agreed

upon. If necessary assistance/support would be facilitated by Darway so as to enable the

establishment of appropriate management and governance systems.

29. Darway provided, through the process of meaningful consultation with, and the

informed participation of the affected communities of Indigenous Peoples as provided for in

paragraphs 22 to 25 above, opportunities for culturally appropriate development benefits. Such

opportunities should be commensurate with the degree of project impacts, with the aim of

improving their standard of living and livelihoods in an appropriate manner and of fostering the

long-term sustainability of the natural resources on which they may depend. Darway

documented identified development benefits consistent with the requirements of this PR, and

provide them in a timely manner. Strong support was given to customary subsistence activities,

including traditional economic activities and their modern derivatives such as crafts and ethno-

tourism.

Special Requirements

30. As Indigenous Peoples may be particularly vulnerable in the project circumstances described

below, the following special requirements will also apply, in addition to the general requirements

above. Common to these requirements is the need for the Darway to:

•

enter into good faith negotiation with Indigenous Peoples;

•

ensure the Indigenous Peoples’ informed and inclusive participation; and

•

obtain the free, prior and informed consent of Indigenous Peoples before starting with an activity

described below.

In the case of any of the following circumstances, Darway will retain qualified independent social

scientists to assist in conducting and documenting the activities described in paragraphs 32 to 37

of this PR.

Impacts on Traditional or Customary Lands under Use

31. Indigenous Peoples are often closely tied to their customary lands and its forests, water,

wildlife, and other natural resources, and therefore special considerations apply if the project

affects such ties. While these lands may not be under legal ownership pursuant to national law,

use of these lands, including seasonal or cyclical use, by communities of Indigenous Peoples

for their livelihoods, or cultural, ceremonial, or spiritual purposes that define their identity and

community, can often be substantiated and documented.

32. If Darway proposes to locate the project on, or commercially develop natural resources

located within customary lands under use, and adverse impacts can be expected on the

livelihoods, or cultural, ceremonial, or spiritual uses that define the identity and community of the

Indigenous Peoples, Darway would respect their use as follows :

•

Entering into good faith negotiation with the affected communities of Indigenous Peoples, and

document their informed participation and consent as a result of the negotiation.

•

Documenting its efforts to avoid or at least minimise the size of land used, occupied and/or

owned by Indigenous Peoples which is proposed for the project.

•

Documenting the Indigenous Peoples’ land use by experts in collaboration with the affected

communities of Indigenous Peoples without prejudicing any other Indigenous Peoples’ land claim.

•

Informing the affected communities of Indigenous People of their rights with respect to these

lands under national laws, including any national law recognising customary rights or use.

•

Offering affected communities of Indigenous Peoples, at the minimum, compensation and due

process available to those with full legal title to land in the case of commercial development of

their land under national laws, together with culturally appropriate development opportunities;

land-based compensation or compensation in kind will be offered in lieu of cash compensation

where feasible.

•

Giving adequate time to the affected indigenous communities to come to an internal agreement,

without Darway imposing its will directly or indirectly.

•

Use functions such as an ombudsman and/or other such public institution within the relevant

national system to facilitate community consent to the project and/or the proposed land use by

Darway and the mitigation package.

•

Ensuring continued access to natural resources, identifying the equivalent replacement of

resources, or, as a final option, providing compensation.

•

Ensuring fair and equitable sharing of benefits associated with project usage of the resources

that are integral to the identity and livelihood of Affected Communities of Indigenous People.

•

Providing Affected Communities of Indigenous Peoples with access, usage and transit on land

Darway was developing subject to overriding health, safety and security considerations.

33. During project implementation, Darway would bring to the immediate attention of relevant

authorities any conflicts between Indigenous Peoples and Darway that remain unresolved despite

having gone through the project grievance mechanism, assess the facts and develop an

appropriate approach to resolve the issue.

Relocation of Indigenous Peoples from Traditional or Customary Lands

34. Darway explored feasible alternative project designs to avoid the relocation of Indigenous

Peoples from their communally held traditional or customary lands. When relocation is

unavoidable, Darway would not carry out such relocation without obtaining free, prior and

informed consent for it from the affected Indigenous Peoples’ communities as a result of good

faith negotiations. These negotiations shall take into consideration Indigenous Peoples’ laws,

traditions, customs and land tenure and involve their full participation. Any relocation of

Indigenous Peoples will be consistent with [the Resettlement Planning and Implementation

requirements of] PR 5. Indigenous Peoples shall receive fair and equitable compensation for the

lands, territories and resources which they have traditionally owned or otherwise occupied or

used, and which have been confiscated, taken, occupied, used or damaged as a result of the

project without their free, prior and informed consent.

35. Where feasible, the relocated Indigenous Peoples should be able to return to their traditional

or customary lands, should the reason for their relocation cease to exist and the land should be

fully reinstated.

Cultural Heritage

36. Where a project proposes to use the cultural resources, knowledge, innovations, or practices

of Indigenous Peoples for commercial purposes, Darway would inform the Indigenous Peoples

of:

(i) their rights under national and international law; (ii) the scope and nature of the proposed

commercial development; and (iii) the potential consequences of such development. Darway will

not proceed with such commercialisation unless it: (i) enters into a good faith negotiation with the

affected communities of Indigenous People; (ii) documents their informed participation and their

free, prior, informed consent to such an activity; and (iii) provides for fair

and equitable sharing of benefits from commercialisation of such knowledge, innovation, or

practice, consistent with their customs and traditions.

Darway Performance Requirement 8: Cultural Heritage

Introduction

1. This Performance Requirement (“PR”) recognises the importance of cultural heritage for

present and future generations. The aim is to protect cultural heritage and to guide Darway to

avoiding or mitigating adverse impacts on cultural heritage in the course of their business

operations. Darway is expected to be precautionary in its approach to the management and

sustainable use of cultural heritage.

2. Cultural heritage is important as a source of valuable historical and scientific information, as an

asset for economic and social development, and as an integral part of a people’s cultural identity,

practices, and continuity. Although potential impacts on intangible cultural heritage might be less

obvious than impacts on tangible cultural heritage, they may be of equal significance. If the

environment is crucial for maintaining traditional skills, knowledge and beliefs, any relocation,

detachment or significant change in the environment could trigger the loss of traditional

knowledge, beliefs and/or loss of minor dialects and languages and ultimately result in the

disintegration of a community.

3. In pursuing these aims of protection and conservation, this PR is guided by applicable

international conventions and other instruments. It also recognises the need for all parties to

respect the laws and regulations that pertain to cultural heritage that could be affected by a project

and the obligations under relevant international treaties and agreements ratified by host countries.

These laws may be on cultural heritage or antiquities, planning or building consent, conservation

areas, protected areas, and other laws and regulations governing the built historic environment,

or laws relating to the protection of cultures of Indigenous Peoples. Detailed requirements for

protecting Indigenous Peoples are in PR 7.

Objectives

4. The objectives of this PR are:

•

To support the protection and conservation of cultural heritage.

•

To adopt the mitigation hierarchy approach to protecting cultural heritage from adverse

impacts arising from the project.

•

To promote the equitable sharing of benefits from the use of cultural heritage in business

activities.

•

To promote the awareness and appreciation of cultural heritage where possible.

Scope of Application

5. This PR will apply to projects that are likely to have adverse impact on cultural heritage. The

provisions of this PR apply whether or not the cultural heritage has been legally protected,

internationally recognised or previously disturbed.

6. Darway, as part of its environmental and social assessment process, identified the relevant

requirements of this PR, and how they addressed as an integral part of its overall Environmental

and Social Management System (“ESMS”) and/or the project’s Environmental and Social

Management Plan (“ESMP”). The environmental and social appraisal and management

requirements are outlined in PR 1. In addition, Darway applied this PR during project

implementation if the project affects, or has the potential to affect, cultural heritage (tangible and

intangible) which had not been previously identified.

7. For the purposes of this PR, the term cultural heritage is defined as a group of resources

inherited from the past which people identify, independently of ownership, as a reflection and

expression of their evolving values, beliefs, knowledge and traditions. It encompasses tangible

(physical) and intangible cultural heritage, which is recognised at the local, regional, or national

level, or within the international community.

•

Physical cultural heritage refers to movable or immovable objects, sites, groups of

structures as well as cultural or sacred spaces associated therewith, and natural features

and landscapes that have archaeological, paleontological, historical, architectural,

religious, aesthetic or other cultural significance.

•

Intangible cultural heritage refers to practices, representations, expressions, knowledge

and skills that communities, groups and, in some cases, individuals recognise as part of

their cultural heritage and which are transmitted from generation to generation.

8. Recognising that sites, objects or cultural traditions representing cultural heritage value or

significance could be discovered in unexpected locations, a project is subject to the provisions of

this PR if it:

•

involves significant excavations, demolitions, movement of earth, flooding or other

changes in the physical environment;

•

is located in, or in the vicinity of, a cultural heritage site recognized by the Federal

Republic of Nigeria; or

•

may have an adverse impact on the culture, knowledge and practices of people

including Indigenous Peoples.

Requirements

Assessment process

Screening for impacts on cultural heritage

At an early stage of the environmental and social assessment, Darway identified if any cultural

heritage was likely to be adversely affected by the project, and assess the likelihood of any

chance finds. In doing so, Darway will consult with relevant authorities, experts, local

communities and other stakeholders as appropriate. The intensity of the study of cultural

resources should be adequate for characterising the potential impacts and issues of the project

and reflecting the concerns of relevant stakeholders.

Avoiding impacts

9. Darway, based on the outcomes of the screening process, selected the location for and

designed the project so as to avoid significant impacts on cultural heritage. Where Darway’s

screening process identified potential adverse impacts at the early stages of project development,

preference were given to avoiding adverse impacts during the design and site selection phases.

Assessing impacts that cannot be avoided

10. Where impacts cannot be avoided, Darway would, on the basis of the results of the

preliminary screening, undertake studies and consultation to assess potential impacts and, if

necessary, the required changes in design. The scope of these studies and consultation would

be determined on a case-by-case basis in consultation with the national or local regulatory

authorities entrusted with the protection of cultural heritage. The studies would be conducted by

qualified and experienced cultural heritage specialists, either as part of the overall environmental

and social assessment process, or separately.

11. The assessment and mitigation of impacts on cultural heritage was conducted in

accordance with relevant provisions of national and/or local laws, protected area management

plans and regulations, national obligations under international laws and good international

practice.

Managing Impacts on Cultural Heritage

12. Darway developed appropriate measures for minimising and mitigating adverse impacts on

the cultural heritage. The mitigation measures addressed the results of the field surveys, expert

assessment of the significance of cultural heritage, national legislation and relevant international

conventions, and the results of consultations with affected communities and other relevant

stakeholders. Such mitigation measures was included in Darway’s overall ESMS and project-

specific ESMP, or in a specific Cultural Heritage Management Plan that also included an

implementation timeline and a resource need estimate for each of the mitigation measures.

Darway also ensured that trained and qualified personnel are available to oversee the

implementation of mitigation measures, and that any third parties, such as contractors, working

on the project have the necessary skills and expertise and are managed and monitored in

accordance with PR 1.

13. Where the project site is associated with impacts to cultural heritage or prevents access to

previously accessible cultural heritage sites, Darway would assess the use of the site by

affected communities. Where the site has been used by affected communities within living

memory for long-standing cultural purposes, Darway would, based on consultation, allow

continued access to the cultural site or would provide an alternative access route, subject to

overriding health, safety, and security considerations.

Chance finds procedure

14. Darway ensured that provisions for managing chance finds, defined as physical cultural

heritage encountered unexpectedly during project implementation, were in place. Such

provisions included notification of relevant competent bodies of found objects or sites; alerting

project personnel to the possibility of chance finds being discovered; and securing the area of

finds to avoid any further disturbance or destruction. Darway would not disturb any chance finds

until an assessment by a designated and qualified specialist is made and actions consistent with

national legislation and this PR are identified.

Consultation with affected communities and other stakeholders

15. Where a project may affect cultural heritage, Darway would consult with affected

communities within the host country who use or have used the cultural heritage within living

memory for longstanding cultural purposes to identify cultural heritage of importance, and to

incorporate into the Darway’s decision-making process the views of the affected communities on

such cultural heritage. Darway would provide information to affected communities, in a

transparent and appropriate language, on the scope, location, duration of a project, and any

activities that might involve impacts on cultural heritage. Such consultation must follow the

requirements of PR 10 and could be a part of a wider consultation process on the projects’

environmental and social impacts. Consultation would also involve other relevant stakeholders

such as national or local authorities entrusted with the protection of cultural heritage, cultural

heritage experts and non- governmental and civil society organisations. Impacts on cultural

heritage would be appropriately mitigated with the free prior and informed participation of the

affected communities.

16. Where the project may significantly impact cultural heritage, and the impact, damage or loss

may endanger the cultural or economic survival of communities within the country of operation,

who use the cultural heritage for long-standing cultural purposes, Darway would apply the

requirements of paragraph 18 and will not proceed unless it: (i) enters into a good faith negotiation

with the relevant authorities and affected communities; and (ii) documents their informed

participation and the successful outcome of the negotiation.

Project’s Use of Cultural Heritage

17. Where a project will entail the use of cultural resources, knowledge, innovations, or practices

of local communities embodying traditional lifestyles for commercial purposes,

Darway would inform these communities of: (i) their rights under national law; (ii) the scope and

nature of the proposed commercial development; and (iii) the potential consequences of such

development. Darway will proceed with such commercialisation only when it: (i) enters into a good

faith negotiation with the affected local communities embodying traditional lifestyles; (ii)

documents their informed participation and the successful outcome of the negotiation; and (iii)

provides affected local communities with fair and equitable sharing of benefits from

commercialisation of such knowledge, innovation, or practice, consistent with their customs and

traditions. Where a project proposes to use the cultural resources, knowledge, innovations or

practices of Indigenous Peoples, the requirements of PR 7 will apply.

Darway Performance Requirement 9: Information Disclosure and Stakeholder Engagement

Introduction

1. This PR recognises the importance of open and transparent engagement between Darway, its

workers, local communities directly affected by the project and, where appropriate, other

stakeholders as an essential element of good international practice and corporate citizenship

. It

is also a way of improving the environmental and social sustainability of projects. In particular,

effective community engagement appropriate to the nature and scale of the project promotes

sound and sustainable environmental and social performance, and can lead to improved financial,

social and environmental outcomes, and enhanced community benefits. It is central to building

strong, constructive, and responsive relationships that are essential for the successful

management of a project's environmental and social impacts and issues. Stakeholder

engagement is often most effective when initiated at an early stage of the project cycle.

2. This PR identifies good international practice relating to stakeholder engagement as an on-

going process involving (i) Darway’s public disclosure of appropriate information, (ii) meaningful

consultation with stakeholders, and (iii) a procedure or mechanism by which people can make

comments or raise grievances. The process of stakeholder engagement should begin at the

earliest stage of project planning and continue throughout the life of the project. It is an integral

part of the assessment, management and monitoring of environmental and social impacts and

issues of the project. Therefore, this PR should be read in conjunction with PR1, and with the

requirements in PR2 regarding engagement with workers. In the case of projects involving

involuntary resettlement and/or economic displacement, affecting indigenous people or having an

adverse impact on cultural heritage, Darway will also apply the special disclosure and

consultation requirements of PR 5, PR 7 and PR 8.

Objectives

3. The objectives of this PR are:

•

To outline a systematic approach to stakeholder engagement that will help Darway build and

maintain a constructive relationship with their stakeholders, in particular the directly affected

communities.

•

To promote improved environmental and social performance of Darway through effective

engagement with the project’s stakeholders.

•

To promote and provide means for adequate engagement with affected communities

throughout the project cycle on issues that could potentially affect them and to ensure that

meaningful environmental and social information is disclosed to the project’s stakeholders.

•

To ensure that grievances from affected communities and other stakeholders are responded to

and managed appropriately.

This Performance Requirement is guided by the spirit, principles and ultimate goals on public disclosure and

stakeholder engagement comprised in the United Nations Economic Commission for Europe (UNECE) Convention

on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters.

Scope of application

4. This PR applies to all projects that are likely to have adverse environmental and social impacts

and issues on the environment, Darway’s workers or local communities directly affected by the

project. Darway is expected to carry out engagement with the project’s stakeholders as an integral

part of Darway’s overall environmental and social management systems (“ESMS”), the project’s

environmental and social assessment process and the environmental and social management

plan (“ESMP”) as outlined in PR1.

Requirements

5. Darway conducted stakeholder engagement on the basis of providing local communities

directly affected by the project and other relevant stakeholders with access to timely, relevant,

understandable and accessible information, in a culturally appropriate format, and free of

manipulation, interference, coercion, and intimidation.

6. Stakeholder engagement involved, in varying degrees, the following elements: stakeholder

identification and analysis, stakeholder engagement planning, disclosure of information,

consultation and participation, grievance mechanism, and ongoing reporting to relevant

stakeholders.

7. The nature and frequency of stakeholder engagement was commensurate and proportionate

to the nature and scale of the project and its potential adverse impacts on the affected

communities, the sensitivity of the environment, and the level of public interest. In order to tailor

the engagement to the specifics of Darway and the project, it was essential that when

developing projects that were likely to have adverse environmental and social impacts and

issues identified and analysed the project’s stakeholders as outlined below. The requirements of

national law with respect to public information and consultation, including those laws

implementing host country obligations under international law must always be met.

Engagement during project preparation

Stakeholder Identification and Analysis

8. Darway identified and documented the various individuals or groups who (i) were affected or

likely to be affected (directly or indirectly) by the project (“affected parties”), or (ii) might have an

interest in the project (“other interested parties”).

9. Darway identified individuals and groups that might be differentially or disproportionately

affected by the project because of their disadvantaged or vulnerable status. Where relevant,

Darway also identified different interests within the identified groups, such as representing

different ages, gender and ethnic and cultural diversity, who might have different concerns and

priorities about project impacts, mitigation mechanisms and benefits, and may require different,

or separate, forms of engagement. Darway also identified how stakeholders may be affected

and the extent of the potential (actual or perceived) impacts. Where impacts are perceived,

additional communication may be required to provide information and reassurance of the

assessed level of impacts. An adequate level of detail were included in the stakeholder

identification and analysis so as to determine the level of communication that is appropriate for

the project.

Stakeholder Engagement Plan

10. For projects that are likely to have adverse environmental or social impacts and issues,

Darway would develop and implement a Stakeholder Engagement Plan (“SEP”) appropriate to

the nature and scale or the risks, impacts and development stage of the project. For any project

that requires an Environmental and Social Impact Assessment (“ESIA”), the SEP would apply

the disclosure and consultation requirements outlined below in paragraphs 19 to 23. The SEP

would be tailored to take into account the main characteristics and interests of the affected

parties, and different levels of engagement and consultation might be appropriate for affected

parties and other interested parties. The SEP would outline how communication with identified

stakeholders will be handled throughout project preparation and implementation, including the

grievance procedure (see below) envisaged. The level of detail needed will be determined on a

case-by-case basis. Resources for public information and consultation should focus on affected

parties, in the first instance.

11. The SEP should document how consultation would be held with different groups in the

community, clarifying what measures would be implemented to remove obstacles from

participation, such as those based on gender, age, or other differences, and how the views of

differently affected groups will be captured. Where applicable, the SEP would include

differentiated measures to allow the effective participation of those identified as disadvantaged

or vulnerable. Dedicated approaches and an increased level of resources might be needed for

communication with such stakeholders so that they fully understand the issues that are

potentially affecting them. When the stakeholder engagement depends substantially on

community representatives, Darway would make reasonable efforts to verify that such persons

do, in fact, represent the views of affected communities and that they are facilitating the

communication process by communicating the information to their constituents and conveying

their comments to Darway or authorities, as appropriate.

12. Where stakeholder engagement is the responsibility of the relevant governmental authorities,

Darway collaborated with the responsible government authority to the extent permitted to

achieve outcomes that are consistent with this PR. Where there are gaps between the local

regulatory requirements and this PR, Darway identified engagement activities to

supplement the formal regulatory process, and where appropriate, commit to supplemental

actions.

13. In cases where the exact location of the project is not known, the SEP will take the format of

a framework approach as part of Darway’s overall ESMS, outlining general principles and a

strategy to identify affected stakeholders and plan for an engagement process in accordance with

this PR that will be implemented once the location is known.

14. Darway, if with multi-site operations and projects involving general corporate finance, working

capital or equity financing, adopted and implement a corporate SEP. The corporate SEP were

commensurate to the nature of Darway’s business and its associated environmental and social

impacts, and the level of public interest. The SEP were rolled out to facilities in a timely manner.

It included procedures and resources to ensure that adequate stakeholder engagement is

conducted at the facility level, and that stakeholders proximal to its facilities receive information on

the relevant facility’s environmental and social performance.

Information Disclosure

15. Disclosure of relevant project information helps stakeholders understand the risks, impacts

and opportunities of the project. If communities may be affected by adverse environmental or

social impacts from the project, Darway provided them with access to the following information

(“the Information”):

•

the purpose, nature and scale of the project;

•

the duration of proposed project activities;

•

any risks to and potential impacts on such communities and proposed mitigation plans;

•

the envisaged stakeholder engagement process, if any, and opportunities and ways in which

the public can participate;

•

the time and venue of any envisaged public consultation meetings, and the process by which

meetings are notified, summarised, and reported; and

•

the process by which any grievances will be managed.

16. The Information was disclosed in the local language(s), as identified in the SEP, and in a

manner that is accessible and culturally appropriate, taking into account any specific needs of

groups that may be differentially or disproportionately affected by the project because of their

status or groups of the population with specific information needs (e.g. literacy, gender,

differences in language or accessibility of technical information).

Meaningful Consultation

17. The need for and nature of any specific consultation was determined on the basis of

stakeholder identification and analysis, and depending on the nature and scale of the project’s

potential adverse impacts on affected communities. Where affected communities may be

subject to significant adverse future impacts and issues from a project, Darway undertook a

process of meaningful consultation in a manner that provides stakeholders with opportunities to

express their views on project risks, impacts, and mitigation measures, and allowed Darway to

consider and respond to them. Meaningful consultation will be carried out on an ongoing basis as

the nature of issues, impacts and opportunities evolves. If Darway have already engaged in such

a process, they would provide adequate documented evidence of such engagement.

18. The consultation process with affected parties was undertaken in a manner that is inclusive

and culturally appropriate, and which represents the views and specific needs of various groups

as identified in the SEP or made aware to Darway during the implementation of the SEP. The

consultation will also include, beyond the affected parties, any groups or individuals who have

been identified as other interested parties. Meaningful consultation is a two-way process that

should:

•

begin early in the process of identification of environmental and social risks and impacts and

continue on an ongoing basis as risks and impacts arise;

•

be based on the prior disclosure and dissemination of relevant, transparent, objective,

meaningful and easily accessible information which is in a culturally appropriate local language(s)

and format and is understandable to affected parties;

•

focus inclusive engagement on those directly affected as opposed to those not directly affected;

•

be free of external manipulation, interference, coercion, or intimidation;

•

enable meaningful participation, where applicable; and

•

be documented (by Darway).

Darway tailored its consultation process to any specific language preferences of the affected

parties, their decision-making process, and the needs of disadvantaged or vulnerable groups.

Darway informed those who have participated in the public consultation process in a timely

manner of the final decision on the project, associated environmental and social mitigation

measures and any benefits of the project for the local communities, along with reasons and

considerations on which the decision is based, and the grievance or complaint mechanism or

process available.

Disclosure and consultation on projects requiring an ESIA

19. Projects that could result in potentially significant and diverse adverse future environmental

and/or social impacts that cannot be readily identified, assessed and mitigated require a

formalised, informed and participatory ESIA process. Disclosure and consultation requirements

would be built into each stage of the ESIA process on a case-by-case basis. Informed

participation involves organised and iterative consultation, leading to Darway’s incorporating into

their decision-making process the views of the affected parties on matters that affect them directly

such as proposed mitigation measures, the sharing of benefits and opportunities, and

implementation issues.

20. In the case of projects requiring an ESIA, Darway would carry out the information disclosure

and meaningful consultation with affected parties and facilitate their informed participation in the

decision-making process, in accordance with paragraphs 15 to 18. In addition, Darway would

engage in a scoping process with interested parties and identified stakeholders at an early stage

of the ESIA process to ensure identification of key issues to be investigated as part of the ESIA.

As part of the scoping process, stakeholders should be able to provide comments and

recommendations on a draft SEP and any other scoping documents.

21. If an environmental and social action plan (“ESAP”) has been agreed for a project requiring

an ESIA, Darway would disclose the ESAP to the affected parties in accordance with the SEP.

22. In addition, the consultation process must meet any applicable requirements under national

environmental impact assessment laws and other relevant laws. Darway would keep the ESIA in

the public domain throughout the life of the project, but it may be amended from time to time, with

additional information, or archived following project completion, as long as it is available on

request in a timely manner.

23. In the case of projects requiring an ESIA, Darway was required to provide regular reports to

their interested stakeholders on their environmental and social performance, as a separate

publication, or on their website, as detailed in the SEP. These reports would be in a format

accessible to the affected communities and their frequency will be proportionate to the concerns

of affected communities, but not less than annually.

Engagement during project implementation and external reporting

24. Darway provided ongoing information to identified stakeholders, appropriate to the nature of

the project and its adverse environmental and social impacts and issues, and the level of public

interest throughout the life of the project. Additional information might need to be disclosed at

key stages in the project cycle, for example prior to start-up of operations, and on any specific

issues that the disclosure and consultation process or grievance mechanism has identified as of

concern to the affected communities. This ongoing engagement were build upon the channels of

communication and engagement established during the stakeholder engagement carried out as

part of the assessment process and reviewed periodically. Darway used appropriate stakeholder

engagement practices to disclose information and receive feedback on the effectiveness of their

ESMS and the implementation of the mitigation measures in the ESMP as well as the affected

communities’ on-going interests and concerns about the project.

25. If there are material changes to the project which results in additional adverse impacts or

issues of concern to the affected communities, Darway would inform them how these impacts

and issues are being addressed and disclose an updated ESMP in accordance with the SEP. If

these additional adverse impacts on affected communities are significant, Darway may, on a

case-by-case basis, be required to carry out additional information disclosure and consultation

in line with paragraphs 15 to 18.

Grievance Mechanism

26. Darway were aware of and responded to stakeholders’ concerns related to the project in a

timely manner. For this purpose, Darway established a grievance mechanism, process, or

procedure to receive and facilitate resolution of stakeholders’ concerns and grievances, in

particular, about Darway’s environmental and social performance. The grievance mechanism

were scaled to the risks and potential adverse impacts of the project.

•

The grievance mechanism process or procedures addressed concerns promptly and

effectively, in a transparent manner that is culturally appropriate and readily accessible to all

segments of the affected communities, at no cost and without retribution. The mechanism,

process or procedure must not prevent access to judicial or administrative remedies. Darway

informed the affected communities about the grievance process in the course of its community

engagement activities, and report regularly to the public on its implementation, protecting the

privacy of affected individuals.

•

Handling of grievances should be done in a culturally appropriate manner and be discreet,

objective, sensitive, and responsive to the stakeholders’ needs and concerns. The mechanism

should also allow for anonymous complaints to be raised and addressed.

Organisational Capacity and Commitment

27. Darway defined clear roles, responsibilities, and authority as well as designate specific

personnel to be responsible for: the implementation and monitoring of stakeholder engagement

activities; compliance with this PR; external reporting on environmental and social issues; and the

grievance mechanism, process, or procedure.

The purpose of this checklist is to identify potential environment and social issues related

to project development, construction and operation.

Annex A: Exclusion List for Mini-Grid Site Selection for Darway Coast

This exclusion list ensures adherence to sustainability principles and legal

frameworks while minimizing environmental and social impacts. The following

exclusion criteria apply to ensure responsible and sustainable mini-grid site

selection:

Project Information

Project Name

Darway Coast- Akpoku Mini-grid

State

Rivers State

LGA

Etche

Community

Akpoku

Assessor’s Name

Cyril Okoye

Signature

Date

17/01/2022

Question

Yes

N/A

Remarks

General Exclusions

1. Does the site comply with all relevant environmental and

social regulations of Nigeria?

√

2. Is the site located in a legally protected area (e.g., national

parks, conservation areas)?

√

3. Is the site located in an internationally recognized area (e.g.,

UNESCO World Heritage Site, Biosphere Reserve, Ramsar

Wetland)?

√

4. Is the site located in a critical natural habitat with high

biodiversity value or supporting endangered/migratory species?

√

Environmental Exclusions

5. Will construction or operations significantly damage natural

habitats (e.g., mangroves)?

√

6. Is the site located in a high-risk flood-prone zone?

√

Social Exclusions

7. Is the site on land where communities were improperly

resettled without compensation or consultation?

√

8. Is the site associated with illegal or involuntary displacement

of individuals/communities?

√

9. Will the site adversely affect physical cultural properties (e.g.,

archaeological, historical, or religious landmarks)?

√

Additional Notes

10. Are the company and/or site operations associated with

forced or child labor?

√

11. Does the site involve cross-border waste trade violating

Basel Convention standards?

√

Checklist For Initial Environmental And Social Screening- Akpoku

(A)

Project Background

Name of Proposed Project

Darway Coast- Akpoku Mini-grid

Location

Akpoku, Etchie LGA, Rivers State

Size of the Community (Population)

2000

Project objectives

To electrify the community

Brief description of the project

This project involves the design and deployment of a

Scalable mini-grid to provide energy access to over

800 off-grid connections, benefiting local communities

and businesses

Capacity or size of the project

56.93kWp

Number of Solar Panels

144

Capacity per solar panel

395

Powerhouse area, m

900m

10.

Distribution length, m

41892

(B)

Project selection criteria

Sl.

Screening Question

Yes

Comments

(In the case select "yes",

provide detailed information)

Are there any activities on the REA

Exclusion Criteria for Mini-Grid and

Power Generation Sites?

Is there indication of:

Significant adverse impacts on

ecologically sensitive areas

b. Involuntary resettlement or

economic displacement

c. Significant adverse impacts on

cultural heritage

If yes, can these impacts be eliminated or

reduced to acceptable levels through adequate

application of mitigation

measures?

(C)

Environmental and Social Screening

Sl.

Screening Questions

Yes

Comments

(In the case select "yes", provide

detailed information)

Project’s siting

Significant adverse impacts on ecologically sensitive areas will be determined using international best practice

and tools, as well as based on the outcomes of relevant studies within the ESIA.

Sl.

Screening Questions

Yes

Comments

(In the case select "yes", provide

detailed information)

Define project’s boundaries and area of influence

Is the project site adjacent to or within any of the

following sensitive receptors?

i. Natural habitats and/ or legally protected areas

(wetlands, forests, estuary, buffer zones, nature

reserves); if yes, is there possibility of a critical

habitat present

ii. Cultural heritage site

iii. Fragmentation of habitat of flora and fauna

(Avifauna and mammalian fauna)?

iv. Is the proposed site located on agricultural

land?

v. Is the proposed site located on area used by

vulnerable groups

vi. Unique or aesthetically valuable land

ii. Is the proposed site located nearby airport

iii. Is the proposed site located in migratory

route of birds

Potential Environmental Impacts

Impacts on natural resources that constitute

livelihoods of community (e.g. grazing or hunting

grounds)?

Disfiguration of landscape?

Is there potential for landslide and soil erosion

impacts?

Increase in waste generation?

Yes

But adequate waste management

plan has been put in place to

address the waste generated

Waste water from camping sites to be directly

discharged to the surface water resources or not?

Construction waste directly discharged to the

surface water?

Other potential biodiversity impacts (specify)?

Loss or destruction of unique or aesthetically valuable

land

Disturbance of large areas due to material

quarrying

10.

Disposal of large quantities of construction spoils

Critical habitat is defined based on global good practice as a subset of both natural and modified habitat that

deserves particular attention. Critical habitat includes areas with high biodiversity value that meet the criteria of

the World Conservation Union (IUCN) classification, including habitats of significant importance for required for

critically endangered or endangered species as defined by the IUCN Red List of Threatened Species; habitats of

significant importance for endemic or restricted-range species; habitats supporting globally significant

concentrations of migratory species and /or congregatory species; areas with unique assemblages of species or

which are associated with key evolutionary processes. Primary Forests or forests of High Conservation Value

shall be considered Critical Habitats. This includes HCV forests. HCV areas do not directly correspond with

definitions for modified, natural, and critical habitat. The HCV Resource Network, an internationally recognized

group, provides information and support on the evolving usage of HCV to ensure a consistent approach.

https://www.hcvnetwork.org/.

Sl.

Screening Questions

Yes

Comments

(In the case select "yes", provide

detailed information)

Potential Community and Occupational Health and Safety Impacts

Will the construction works disturb other

commercial/community/residential activities?

Will the project create major noise/vibration?

Closest residence to the solar panel

10 meters

Will it create dust problem around the sites?

Will project’s construction cause disturbance to

the transportation in the project’s site?

Will batteries be removed/disposed (lead-acid or

nickel-cadmium batteries) from battery-powered

or battery-backup items?

Yes

Collected hazardous

waste will be routed to a

processing facility, and

waste batteries will be

returned to their

manufacturers for

refurbishment and

recycling.

Will there be social conflict in case of workers

hired from other region?

Potential Social Impacts

Permanent land acquisition

Temporary land acquisition

Yes

The land is rented under a

renewable contract, with the

term subject to negotiation

10.

Type of land

Private land Public land

Government land

Leasehold land

Private Land

11.

Type of land procurement

Voluntary land donation (VLD)

Involuntary

acquisition

Negotiation

12.

Loss of productive land

13.

Impacts on livelihoods/ economic displacement?

This community is expected

to experience economic

growth, as there are no known

negative implications

to deter investment and

development

14.

Is there any household need to be relocated?

15.

Is the resettlement site environmentally and/or

culturally sensitive?

Voluntary land donation is strictly defined in international practice as the ceding of a property by an owner who

is: a) fully informed; and b) can exercise free will, i.e., can refuse to sell or to donate. “Fully informed” means

that the owner has complete information regarding the proposed activity and its impacts, its land requirements

and its alternate activity sites, as well as his or her rights to compensation. The owner has also been provided with

sufficient time to consider his or her disposition of the property, and the owner has knowingly rejected the right

to renege on his or her initial decision. “Free will” means that the owner can reject the possibility of giving up his

or her land.

Sl.

Screening Questions

Yes

Comments

(In the case select "yes", provide

detailed information)

16.

Project’s construction will cause any damage to

the existing local roads system?

17.

Will soil excavation during project’s construction

cause soil erosion?

18.

Will project need to open new access roads?

19.

Will project cause encroachment on

historical/cultural/religious areas?

20.

Acquisition of private land leading to loss of

shelter and livelihood

21.

Involuntary land taking resulting in loss of income,

livelihood, sources of livelihood, loss of access to

common property resources and/or private

residential and/or property resources

22.

Adverse impact to women and girls including

economic and safety concerns

23.

Cultural, gender, and social norms and practices,

particularly those which are harmful to women and

girls that would be exacerbated as a result of

project implementation.

24.

Possible conflicts with and/or disruption to local

communities

25.

Any significant issues raised by the stakeholders

during consultation including potential impacts of

GBV/SEA

26.

Uncontrolled human migration into the area, made

possibly by the subproject activities and risk of

GBV/SEA

27.

Disproportionate impacts on the poor, children and

other vulnerable groups

28.

Community health and safety risks due to the

transport, storage, and use and/or disposal of

materials likely to create physical, chemical and

biological hazards

29.

Risks to community safety due to both accidental

and natural hazards during project construction and

operation

Annex C: Sample Environmental and Social Impact Assessment (ESIA)

Executive Summary

This section shall describe the project activities, critical environmental and social issues,

significant findings and recommended actions.

1. Introduction

i. Background of the project

ii. Scope and objectives of the ESIA study

iii. Study methodology in details

iv. Limitations of the study

v. Composition of study team

2. Policy, Legal and Administrative Framework

i. National and local requirements and relevant legislation

ii. REA’s requirements and guidelines

iii. Investors requirements and guidelines (if applicable)

3. Description of the project

i. Background and Rational of the Project

ii. Project Site and Location

Description of the location of the proposed project with maps

Project area of influence

Nearby communities, environmentally sensitive areas, and heritage sites (For solar

mini grid buffer zone should be 1 km)

iv. Technical Aspects

Description of the project components, permanent and temporary facilities

Project equipment and civil works

Project ownership

Summary of project structures and operating regime

Construction activities

Operation and maintenance

Manpower requirements (including local and migrant workforce)

Construction machinery, materials and other supplies (including estimated

numbers/quantities)

Land filling activities (if any)

Power supply arrangements

Waste generation and disposal (including estimated quantities)

4. Baseline Environmental Conditions

4.1 Physical Environment

i. Topography

ii. Geological Condition

iii. Meteorological Condition (Rainfall, Temperature, Humidity, Wind speed)

iv. Air Quality

v. Noise Quality

vi. Surface and Ground water quality

Surface:(testing of: pH, TDS, DO, COD, BOD)

Ground:(testing of: pH, Arsenic, TDS, alkalinity, Cl, Fe)

vii. Project location from flood level

viii. Soil Quality

ix. Water resources

x. Agroecological zones within project area of influence

xi. Seismicity

xii. Climate change and natural disasters

xiii. Land use

4.2 Biological Environment

i. Bio-ecological environment

ii. Flora and Fauna

iii. Protected areas

iv. Terrestrial Ecosystem, Protected areas and red book species

v. Vulnerability to Climate Change and Natural hazard

Explain in detail about how the project will be affected by the climate change

impact

Explain how the project is vulnerable to various natural calamities including flood,

earthquake, drought, cyclone and so on

5. Social Impact Assessment

5.1 Baseline Socio-economic Conditions

i. Distribution of population in the project area in terms of religion, age, sex, ethnicity,

income, household size, occupational patterns and their relevance with the project,

poverty

ii. Project land

iii. Land use and ownership (including traditional use and ownership)

iv. Cropping and/or grazing patterns

v. Vulnerability of the Affected Peoples (APs)

vi. Employment

vii. Livelihood

viii. Physical and cultural resources (school, health post/ hospital, college, temple,

monasteries etc.) in the project area

ix. Communication facility

x. Local amenities

5.2

Potential Social Impacts

i. Overview of stakeholder and institutional analyses and a description of the data and

information gathered

ii. Description of potential adverse impacts on communities

iii. Description of the legal and institutional context pertaining to vulnerable groups in the

country

iv. Description of potential benefits for communities, especially vulnerable groups

May include annexes on specific issues, such as: outline of the social assessment process, relevant maps, minutes of

meetings and consultation with affected communities and other key stakeholders, etc.

v. Recommendations for project design and implementation, including recommendations to

ensure that project benefits are culturally appropriate and sustainable, and recommendation

for appropriate mitigation measures for any adverse impacts.

vi. Recommendation for capacity building and institutional strengthening of local communities

6. Analysis of Project Alternatives

i. Reason to choose the technology

ii. Without project alternative

iii. Site Alternative

iv. Distribution line routes

v. Other temporary and permanent facilities

7. Stakeholder engagement including Grievance Redress Mechanism

Stakeholder engagement process shall be conducted with the community and other stakeholders,

and especially take into account modalities where vulnerable groups may be involved. The

consultation shall include prior disclosure of information in a manner accessible and

understandable to communities, key informant interviews, focus group discussion (male& female,

youth) and public consultation. The consultation shall be documented with required facts, figures

and evidence including participant list with contact details, photographs. Information shall be

disclosed as per the requirement of National Regulations and relevant requirements of REA. This

section shall describe the grievance redress mechanism.

8. Anticipated Environmental and Social Impacts and Mitigation Measures

i. General

ii. Area of Influence (AoI)

iii. Pre-construction Phase

Land taking/Land use / land filling

Flood Hazards

iv. Construction Phase, Operational Phase and Decommissioning Phase

Visual Amenity

Birds and Bats Mortality

Air Quality

Noise

Soil

Water Resources

Terrestrial Ecology

Waste Generation

Occupational Health and Safety

Community Health and Safety

Vulnerable Community

Employment Opportunities

Traffic Management

Archaeology and Cultural Resources

Cumulative and induced impacts

v. Summary of Anticipated Impacts

9. Environmental and Social Management Plan (ESMP)

This section deals with the set of mitigation management measures to be taken to avoid, reduce, mitigate

or compensate for adverse environmental, occupational and social impacts with the institutional

arrangement, monitoring schedule, parameters to be monitored and soon including tentative monitoring

budget. It would include the following aspects:

Types of impacts and their mitigations

Mitigation measures

Environmental Code of Practices (to be attached to bidding documents and/ or

contracts)

Monitoring Plan

Communication and documentation

Cost of ESMP

Integration with Project (contract clauses, others)

Grievance resolution process

Plan for stakeholder/ community engagement during pre-construction, construction,

and operation phases; the plan should include community mobilization approach from

both social and commercial perspectives.

10. Resettlement Action Plan (RAP) and Livelihood Restoration Plan (LRP) (if applicable)

This section deals with potential project activities involving land acquisition and/or restrictions on

land use resulting in involuntary resettlement or economic displacement. A detailed RAP

and/or LRP will be required in case of any displacement.

11. Environmental and Social Benefits

This section will summarize how the project will provide benefits in environmental sector and

social life, directly and/or indirectly.

12. Conclusion

This section shall provide the conclusion drawn from the assessment and provides

recommendations.

Annex D: Sample Environmental and Social Management Plan (ESMP)

Project: Mini-Grid in Akpoku, Etche Local Government Area, Rivers State

Objective

To identify potential environmental and social impacts associated with the mini-grid project and propose mitigation

measures to minimize negative impacts while enhancing project benefits.

1. Introduction

The mini-grid project in Akpoku aims to provide sustainable electricity to the local community, improving socio-economic

development while ensuring environmental protection and community well-being.

2. Potential Impacts and Mitigation Measures

Construction Phase

Activity

Potential Impact

Mitigation Measures

Responsibility

Estimated

Cost

Site preparation

and clearing

Damage to vegetation

Use manual clearing techniques.

Replant native vegetation where

feasible.

Darway

Coast

Included in

budget

Excavation and

leveling

Loss of topsoil and

erosion

Stockpile topsoil for later use in re-

vegetation. Use erosion control

measures like silt fences.

Darway

Coast

Included in

budget

Construction

activities

Air pollution from dust

Water sprinkling on dusty areas

during dry and windy conditions.

Darway

Coast

Included in

budget

Machinery

operation

Noise pollution

Limit construction activities to 8 AM -

6 PM. Notify communities of any

extended hours.

Darway

Coast

Included in

budget

Transport of

materials

Increased road traffic

and safety risks

Use traffic signage, speed limits,

and train drivers on safe driving

practices.

Darway

Coast

Included in

budget

Worker influx

Increased waste

generation and

community conflicts

Provide waste collection and

disposal facilities. Conduct cultural

orientation for workers.

Darway

Coast

Included in

budget

Operational Phase

Activity

Potential Impact

Mitigation Measures

Responsibility

Estimated

Cost

Power generation

and distribution

Noise from operation

of equipment

Install noise-dampening

equipment. Conduct periodic

maintenance to minimize noise

levels.

Darway

Coast

Maintenance

budget

Regular

maintenance of

mini-grid

Improper waste

disposal

Develop and enforce a waste

management plan for used

batteries and electronic

components.

Darway

Coast

Maintenance

budget

Community power

usage

Safety hazards from

electrical

infrastructure

Conduct community sensitization

on electrical safety. Install proper

signage at key locations.

Darway

Coast

Maintenance

budget

3. Monitoring Plan

Parameter

Frequency

Method

Responsibility

Air quality

Weekly during

construction

Visual inspection and air quality tests

Darway

Coast

Noise levels

Weekly during

construction

Use decibel meters at sensitive locations

Darway

Coast

Waste management

practices

Bi-weekly

Site inspections and records review

Darway

Coast

Community grievances

Continuous

Maintain grievance register and resolve

issues promptly

Darway

Coast

4. Institutional Arrangements

Darway Coast:

 Appointd an ESG Specialist to oversee ESMP implementation.

 Ensured all workers are trained on environmental, social, and safety procedures.

 Engaged with local stakeholders to ensure project transparency and community cooperation.

5. Budget Summary

Item

Cost Estimate (NGN)

Environmental mitigation measures

5,000,000

Monitoring activities

2,000,000

Community engagement programs

1,500,000

Training and capacity building

1,000,000

Total

9,500,000

6. Grievance Redress Mechanism

A grievance redress mechanism (GRM) has been established to address community concerns promptly. The GRM

includes:

 A designated contact point for receiving complaints.

 Regular follow-up and resolution within agreed timelines.

 Transparent documentation of grievances and resolutions.

Annex E: Sample of Outline of Resettlement Action Plan (RAP)

Resettlement Action Plan (RAP) for Darway Coast Mini-Grid Project

1. Description of the Project

The Darway Coast Mini-Grid Project aims to provide sustainable energy access to underserved communities. The project

involves the installation of mini-grid systems, which require land for infrastructure. Some of the selected sites include

farmlands, making it necessary to address land acquisition and associated resettlement impacts.

2. Potential Impacts

(a) Project Components or Activities Leading to Resettlement

 Installation of mini-grid infrastructure.

 Clearing and preparation of land for construction.

(b) Zone of Impact

 Farmlands within the designated project area.

 Adjacent lands potentially affected by construction activities.

 Selection of non-agricultural land where feasible.

 Use of marginal or less productive land to minimize impacts.

(d) Mechanisms to Minimize Resettlement

 Prioritizing unused or barren lands.

 Engaging stakeholders in site selection to identify and address concerns early.

3. Objectives and Studies Undertaken

Objectives:

 To minimize displacement and ensure fair compensation.

 To restore or improve livelihoods of affected individuals.

Studies Conducted:

 Census surveys of affected persons and properties.

 Socio-economic studies to assess impacts.

 Stakeholder meetings for consultation and feedback.

 Site selection studies to identify optimal locations.

4. Regulatory Framework

 National land acquisition laws.

 Compensation standards aligned with international performance standards.

 Policies on resettlement and environmental protection.

5. Stakeholder Engagement

 Public consultations with affected landowners and farmers.

 Engagement with local authorities and community-based organizations (CBOs).

 Disclosure of resettlement plans to stakeholders.

6. Socioeconomic Characteristics

Findings from socio-economic studies reveal that:

 Affected populations primarily depend on farming for their livelihood.

 Land ownership patterns include both individual owners and those who lease lands for cultivation.

7. Eligibility

Displaced Persons Include:

 Landowners who lose their land.

 Cultivators who lose access to leased or owned farmland.

Eligibility Criteria:

 Ownership or tenancy records.

 Proof of cultivation activities.

 Cut-off date established during the census survey.

10. Valuation of and Compensation for Losses

 Valuation Methodology: Replacement cost based on market value and transaction costs.

 Compensation:

o For landowners: Market value of land.

o For cultivators: Compensation for crops based on yield estimates.

11. Magnitude of Displacement

 Total number of affected persons: [Insert number based on census data].

 Affected households, structures, and farmlands: [Insert summary details].

12. Entitlement Framework