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Environmental and Social Impact Assessment for the Proposed LPG Filling Plant at the KenolKobil Depot Off

Old Airport Road, Kisumu, Kenya

Bharat LPG Tanks (above) and Mounded LPG Tanks (Mellcom Eng.) - India

Final EIA Study Report


June 2012
Proponent
Kenol Kobil Limited I.C.E.A Building, Kenyatta Avenue P.O. Box 44202 or 30322 - 00100, Nairobi, Kenya Tel:+254 20 2755000 / 2249333 Email: kenkob@kenkob.co.ke

Consultant
Panafcon Ltd ACK Garden House, 2nd Floor Wing C 1st Ngong Avenue, Off Bishops Road P.O. Box 53147, 00200 City Square Nairobi, Kenya Tel; email:+254 20 2732230; info@panafcon.net

Original

PANAFCON Ltd.

CONTENTS PROJECT SUMMARY ACKNOWLEDGEMENTS CERTIFICATION LIST OF ACRONYMS EXECUTIVE SUMMARY 1 1.1 1.2 1.3 1.4 PROJECT INTRODUCTION AND BACKGROUND Introduction Background Objectives of the Environmental Impact Assessment (EIA) Location of Proposed LPG Plant

PAGE V VI VII VIII IX 1 1 1 2 2 3 3 3 3 3 3 4 7 7 7 8 8 8 9 9 10 10 10 12 12 13

DESCRIPTION OF THE PROPOSED PROJECT DESCRIPTION OF THE PROPOSED PROJECT 1.5 Project Objectives 1.6 Project Justification 1.6.1 Current LPG Supply Situation 1.6.2 LPG Demand Study 1.7 Project Location 1.8 Project Design Consideration 1.9 Project Activities 1.10 Description of the Projects Construction Activities 1.10.1 Civil works 1.10.2 Electrical Works 1.10.3 Main Plant works and Mechanical Works 1.10.4 Construction Materials 1.10.5 Construction Supervision 1.11 Site Alteration during Construction 1.11.1 Existing Vegetation 1.11.2 Soil Excavation 1.12 Description of the Projects Operation Activities 1.13 Description of the Projects Decommissioning Activities 1.14 Cost of Proposed Project

2 EIA APPROACH AND METHODOLOGY 15 2.1 Phase 1: Desk Top Study and Project Area Reconnaissance Survey 15 2.2 Phase 2: Detailed Site Assessment Survey 16 2.3 Phase 3: Stakeholder Consultation and Public Consultation Meeting 16 2.3.1 Purpose of Stakeholder Consultation 16 2.3.2 Stakeholder Consultation, Questionnaire Administration and Public Consultation Meeting 16 2.4 Phase 4: Environmental Impact Assessment (EIA) Study Report Preparation 17 3 POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK 3.1 Environmental Management & Coordination Act and Related Regulations 18 18

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3.1.1 Environmental Management and Coordination (Noise and Excessive Vibration Pollution Control) Regulations, 2009 3.2 The Energy Act, 2002 3.2.1 The Liquefied Petroleum Gas (LPG) Regulations, 2008 3.3 The Water Act, 2002 3.4 The Physical Planning Act, Cap 286 3.5 The Local Government Act, Cap 265 3.6 The Public Health Act, Cap 242 3.7 The Occupational Safety and Health Act, 2007 3.8 Public Roads and Roads of Access Act Cap 399 3.9 Building Code 1997. 3.10 Land Registration Act, 2012. 4 BASELINE INFORMATION 4.1 Background Information 4.1.1 Settlement Patterns 4.1.2 Socio-Economic Environment 4.2 Physical Environment 4.2.1 Topography 4.2.2 Climate 4.2.3 Soils and Geology 4.2.4 Baseline Air Quality 4.2.5 Water Resources 4.2.6 Forestry 4.2.7 Flora 4.2.8 Fauna 4.2.9 Diseases and Disease Vectors of the Project Area 4.3 Infrastructure Facilities 4.3.1 Telecommunication 4.3.2 Roads 4.3.3 Airports 4.3.4 Water 4.3.5 Fire Services and Police Response Teams 4.4 Demographic Characteristics 4.5 Land Tenure 4.5.1 Special Conditions of the Land Title. 4.6 Employment Opportunities and Provision of LPG 5 5.1 5.2 5.3 PUBLIC PARTICIPATION AND CONSULTATION Consulted Stakeholders Public Consultation Meeting Public Meeting and Stakeholder Consultation Results

23 25 26 28 29 30 31 32 36 37 37 39 39 39 39 40 40 40 40 41 42 42 42 42 42 42 42 43 43 43 43 44 44 44 44 45 45 45 47 49 49 49 49 50 50 51

6 ANALYSIS OF PROJECT ALTERNATIVES 6.1.1 The No Action Alternative 6.1.2 Alternative to LPG Site 6.1.3 Alternative to Design 7 POTENTIAL ENVIRONMENTAL IMPACTS 7.1 Potential Positive Impacts 7.2 Potential Negative Impacts

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7.2.1 Potential Impacts of Construction Activities 7.2.2 Potential Impacts of Operation Activities 7.3 Mitigation Measures 7.3.1 Mitigation Measures against Potential Impacts of Construction Activities 7.3.2 Mitigation Measures against Potential Impacts of Operational Activities 7.3.3 Mitigation Measures against Potential Impacts of Decommissioning Activities 8 ENVIRONMENT MANAGEMENT PLAN 8.1 Environmental Monitoring Plan 8.1.1 Sound Environmental Monitoring 8.2 Internal Audit (Environmental Operation Survey) 8.3 External Annual Environmental Audits 9 CONCLUSIONS AND RECOMMENDATIONS 9.1 Conclusions 9.2 Recommendations 9.2.1 Stakeholder Recommendations 9.2.2 Waste Management Recommendations 9.2.3 Environment Management Plan Recommendations 9.2.4 Project Approval Recommendation 10 EIA STUDY TEAM MEMBERS

51 51 51 51 53 54 56 56 56 57 58 64 64 65 65 65 65 67 68 69 71

REFERENCES 11 COLOPHON

List of Maps Map 1: Location of the Proposed LPG Plant in Kisumu Map 2: Location of the Proposed LPG Plant along Old Airport Road List of Plates Plate 1: Part of the LPG Plant Site showing stored LPG Cylinders Plate 2: Former Tank Farm Area. Baseline Soil Sample collection in Progress Plate 3: Public Consultation Meeting in Progress at the Nyanza Golf Club Plate 4: KenolKobil Staff answering questions during the Meeting Plate 5: One of the Stakeholders contributing to the discussion at the Meeting Plate 6: An Example of a Mounded LPG Tank System that will be installed. List of Tables Table 1: Population Distribution by Division Table 2: Soil TPH Analysis Results in mg/kg Table 3: Air Quality Exposure Levels Table 4: Potential Positive impacts of the proposed LPG Plant and the Justification Table 5: Environmental Management Plan 39 41 41 50 59 11 11 46 46 47 49 5 6

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Annexes Annex 1: People Contacted During the EIA Study Annex 2: Panafcon NEMA EIA Certificates Annex 3: Stakeholder/Neighbour Questionnaires Annex 4: Soil TPH Analysis Results Annex 5: Public Consultation Minutes Annex 6: Public Consultation Attendance Register Annex 7: Land Title and Project Approval Plan Annex 8: Projects Budget Estimate Annex 9: Terms of Reference (ToR) Annex 10: Photographic Plates

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PANAFCON Ltd. PROJECT SUMMARY

Project Title: Consulting Services for: Objectives:

Proposed KenolKobil LPG Bulk Storage and Filling Plant located Off Old Airport Road, Kisumu. Environmental Impact Assessment (EIA) Study

Objectives of the LPG Filling Plant: The objectives of the Proposed LPG Bulk Storage and Filling Plant are to Receive and Store Bulk LPG, Fill Cylinders with LPG for Distribution to Retail Outlets like Service Stations and Supermarkets in Nyanza, Western and Part of Rift Valley Regions. Objective of the LPG Bulk Storage and Filling Plant EIA Study assignment are: To identify and assess potential Environmental Impacts of the proposed project. To identify all significant and adverse Environmental Impacts of the proposed LPG Bulk Storage and Filling Plant and recommend appropriate mitigation measures. To generate baseline data for monitoring and evaluation of how well the mitigation measures will be implemented during the project cycle. To recommend cost effective measures to be implemented to mitigate the expected impacts. To evaluate and identify viable project alternatives To prepare an Environmental and Social Impact Assessment Study Report compliant to the Environmental Management and Coordination Act (1999) including the subsequent NEMA Regulations and detailing findings and recommendations

Client: Consultants: Report Title: Submission Date:

KenolKobil Limited PANAFCON Ltd Final Draft EIA Study Report 14 June 2012

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PANAFCON Ltd. ACKNOWLEDGEMENTS Panafcon Ltd takes this opportunity to sincerely thank KenolKobil Limited for providing her the opportunity to carry out this Environmental Impact Assessment (EIA) Study exercise on their behalf. Special thanks goes to Mr. Daniel O. Oyile (Quality Environment Health and Safety Manager - KenolKobil Limited), Mr. Lawrence Oloo (Depots Manager - KenolKobil Limited), Mr. Joash Oloo (Kisumu Depot Manager KenolKobil Limited), Mr. Pius Kioko (Project Engineer KenolKobil Limited), Mr. Wilson Wambugu (Head of Operations and Project Development KenolKobil Limited) and Ms Sharon Gitau (Mechanical Engineer KenolKobil Limited) for providing management support, availing project information and facilitating field visits by issuing the necessary Introduction Letter used to access the site. Further appreciation goes to Mr. Dan Oyile, Mr. Lawrence Oloo and Mr. Joash Oloo for finding time to attend the Public Consultation Meeting and clarifying issues raised by the stakeholders during the discussion session. Our sincere thanks goes to Mr. Kenneth Njaramba (KenolKobil Limited Kisumu Depot) for receiving the EIA Study Team and providing on site Depot information. We sincerely appreciate the coordination support and valuable input by Mr. Solomon Chazira. (District Officer Winam Division Kisumu East District) and Mr. Willis Onyona Ochieng (Chief Kisumu Town Location, Winam Division). A lot of gratitude goes to Mr. Nashon Opiyo (Assistant Chief Bandani Sub-Location, Kisumu Town Location) for finding time to attend the Public Consultation Meeting at the Nyanza Golf Club and contributing to the discussion Many thanks go to the SGS Laboratory and in particular Mr. Philip Abuor (Environmental Services Manager SGS Kenya Limited, Nairobi) for accepting to carry out laboratory analysis of the soil samples to establish the baseline status and promptly availing the Analysis Results. We also extend our gratitude to Albert Muriuki for carrying out butane and propane analysis of the site baseline status.

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PANAFCON Ltd. CERTIFICATION Preparedby: Panafcon Ltd ACKGarden House, 2nd FloorWing C 1st Ngong Avenue,Off Bishops Road P.O.Box 53147,00200 Square City Nairobi, Kenya Tel:+25420 27322302792291 I Email:info@panafcon. net

For and on behalfof: KenolKobil Limited. P.O. Box 44202or 30322- 00100 Nairobi, Tel:+254-20-2755000 I 2249333 Email: oyile@kenkob.ke co.

Environmental lmpac't Assessment plant,Kisumu Study ReporyPrcpGed KenolKobil BulkSbrageandFilling LPG Pan-12-071

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PANAFCON Ltd. LIST OF ACRONYMS

CBD DC DDO DDP DEO DO EMCA EMP EIA LPG Mg/l Mg/kg NEMA PPE

Central Business District District Commissioner District Development Officer District Development Plan District Environment Officer District Officer Environmental Management and Coordination Act Environmental Management Plan Environmental Impact Assessment Liquefied Petroleum Gas Milligrams per litre Milligrams per kilogram National Environment Management Authority Personal Protective Clothing

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PANAFCON Ltd. EXECUTIVE SUMMARY INTRODUCTION KenolKobil proposes to construct a Liquefied Petroleum Gas (LPG) Bulk Storage and Filling Plant for receiving, storage of bulk LPG and filling of gas cylinders for use in Kisumu and the neighbouring region of Nyanza, Western and part of Rift Valley Provinces. Storage Depots falls in the category listed in the Second Schedule of the Environmental Management and Co-ordination Act (EMCA), 1999 under item 10 Management of Hydrocarbons including The Storage of Natural Gas and Combustible or Explosive Fuels and is therefore required to undergo Environmental Impact Assessment (EIA). Having reviewed the project proposal, project design, and the Local Legislation and conducting the field surveys, the Consultant has prepared this EIA Study Report. A ToR was prepared and approved by NEMA. Refer to Annex 9. EIA Study Report This EIA Study Report comprises the following: Executive Summary; Chapter 1: Project Introduction and Background; Chapter 2: Description of Proposed Project; Chapter 3: EIA Approach and Methodology; Chapter 4: Policy, Legal and Institutional Framework; Chapter 5: Baseline Information; Chapter 6: Public Participation and Consultation; Chapter 7: Analysis of Project Alternatives; Chapter 8: Potential Environmental Impacts; Chapter 9: Environmental Management Plan; Chapter 10: Conclusions and Recommendations; Chapter 11: EIA Study Team Members; List of References; Annexes DESCRIPTION OF THE PROPOSED PROJECT Project Background KenolKobil Ltd is committed and dedicated to the sustenance, maintenance and enhancement of the environment in conjunction with the communities in which they carry out their business activities. Adequate and reliable supply of LPG Gas is not only a basic pre-requisite for the supply of clean and safe energy for domestic, commercial and industrial sectors, but it will also contribute to availability of affordable energy significantly reduce reliance on wood fuel and charcoal which is a very common source of energy for majority of the local population. This will in turn enhance conservation of our environment. Project Objectives The Proposed KenolKobil LPG Plant is intended to provide Bulk Storage and Filling of Liquefied Petroleum Gas into cylinders locally instead of transporting gas cylinders from Nairobi or Mombasa for use in Kisumu Town and the surrounding region (Nyanza, Western and part of Rift Valley Provinces). This is intended to ensure a steady supply of gas at competitive prices.

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PANAFCON Ltd. Components of LPG and other Properties The normal components of LPG are propane (C3H8) and butane (C4H10). Small concentrations of other hydrocarbons may also be present . LPG is a colorless, odorless (when pure) gas. The commercially supplied by LPG contains a strong smelling compound called ethyl mercapton (C2H5SH) to permit its detection in the case of any leakage. It is heavier than air and may therefore flow along the ground or through drains and will sink to the lowest point of the surrounding. LPG is highly combustible and forms an explosive mixture with air. It burns with a blue flame Project Justification The LPG used in Kisumu and the surrounding region is currently transported in cylinders from Nairobi and Mombasa. This has resulted in unsteady supply of the product and occasionally the supply runs out. As reported in The East African paper of Saturday, February 11 2012, The Ministry of Energy in 2004 through World Banks credit for Energy Sector Recovery Project commissioned Petroleum Development Consultants (PDC) to undertake study of LPG demand in East Africa and preliminary design of infrastructure to meet needs of Kenya. The study recommended development of LPG facilities in Mombasa, Nairobi, Eldoret, Kisumu, Nakuru and Sagana. The facilities have not been developed to date due to unavoidable circumstances. Meanwhile Kenyan consumers desire for affordable liquefied petroleum gas will not be realised until March 2012 due to limitations of storage in Mombasa. The LPG Bulk Storage and Filling Plant will ensure a steady supply of gas within the region which will in turn stabilise prices which have been fluctuating with supply. Steady supply of LPG will also encourage its use and reduce reliance on alternative energy sources like wood fuel and charcoal. This will enhance environmental protection. Project Location The proposed LPG Bulk Storage and Filling Plant site is located Off Old Airport Road in Bandani Sub-Location, Kisumu Town Location, Winam Division, Kisumu East District, Nyanza Province. The site was formally used as a Petroleum Storage and Distribution Depot handling PMS, Diesel, Kerosene and Lubricants. These operations ceased when KPC Petroleum Pipeline reached Kisumu and started providing refined fuel from the KPC Depot. The Kenol Depot activities of handling refined fuel were stopped and facilities decommissioned in the 1990s. The site is situated at latitude S 00 05 05.1 and longitude E 034 44 26.1 Soils and Geology The site area is composed of well drained shallow to moderately deep dark reddish brown to brown friable, clay loam to clay soil, in some places with a humic top soil or gravelly over soft rock (cambisols). The geology of the site area is largely composed of Quaternary Sediments of Pleistocene Age consisting of thick deposits of lacustrine and fluviatile sediments. In some places Tertiary Volcanics of alkaline type including nephelinites, trachytes and alkali ryolites and their pyroclastic equivalents are present. The Proposed Depot Project Development The proposed project will involve the installation of 8 Mounded 54MT Tanks and all associated Civil Works, Installation of Filling Station and related conveyor system, Construction of a filling hall, Concreting of all driveway within the plant, Construction of Office and Ablution Blocks, Installation of Fire Fighting System for the entire plant and Construction of a fire water storage tank.

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PANAFCON Ltd. Projects Decommissioning Activities The proponent owns the land where the LPG Bulk Storage and Filling Plant facilities shall be installed. However should the lease lapse, the proponent shall be expected to decommission & demolish the facilities at the Depot and restore the host environment close to its original state prior to the development. Cost of Proposed Project The project is estimated to cost the proponent Kshs 120,794,297/= to set up. Refer to Annex 8 for bill of quantities signed by a registered Quantity Surveyor. The proponent is expected to pay a fee to NEMA for the EIA License of 0.05% of the total cost of the Project. (0.05% of Kshs 120,794,297/=) which gives KShs 60, 397/= to NEMA. EIA APPROACH & METHODOLOGY The Environmental Impact Assessment (EIA) Study for the Proposed LPG Bulk Storage and Filling Plant was divided into four phases namely: Desk Top Study Detailed Site Assessment Survey Stakeholder Consultation, Public Consultation Meeting and Questionnaire Administration and Environmental Impact Assessment (EIA) Study Report Preparation The Consultant conducted extensive literature review pertaining to the proposed project. During the field investigations, reconnaissance survey was conducted to gather information on the biophysical and socio-economic aspects of the area and its environs. POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK The EIA Study has been conducted in accordance with all the relevant local legislation pertaining Building and Construction, Safety, Conservation of Natural Resources and Biodiversity among others. The Governing Legal Frameworks reviewed include The Energy Act of 2006, The Energy (Liquefied Petroleum Gas) Regulations, 2009 with references to other special legislation and to Kenya Standards (KS) for technical details. The Project was evaluated and considerations were made on how the legislations are complied with as presented in Chapter 4 of this EIA Study Report. POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS Positive Impacts The proposed LPG Filling Plant is envisaged to have positive impacts which include the following: Improved and organized outlook of the area blending with the existing environment; Generation of direct & indirect employment and income to local people and the business community through direct and indirect employment and other services during construction and operation of the LPG Facility. Provision of modern LPG Bulk Storage facility (mounded LPG Tanks); Provision of Regular supply of LPG Cooking Gas in the Region; Contribution to Government Revenue through license fees, levies and taxes;

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PANAFCON Ltd. Restoration of the project area biodiversity through appropriate rehabilitation and promotion of organized development of the site. Stabilisation/lowering of cooking gas prices through regular supply Promotion of increased cooking gas uptake by local population resulting in reduced use of wood fuel and charcoal and therefore conservation of the environment Promotion of use of clean energy that will eventually contribute to reduction of air pollution arising from use of wood fuel and charcoal and Generation of income and revenue for the proponent. Potential Sources of Negative Impacts Although the proposed development will have immense positive benefits there are some negative environmental implications associated with its implementation that are mitigable and will require attention. The potential negative impacts of this project include: Clearance of site to create area to pave way for Construction. Excavation and disturbance of soils and geological formation causing soil erosion and loss of topsoil during construction. The excavated soil shall require appropriate collection and disposal. Construction activities of the proposed Mounded 54MT Tanks, a Filling Station, a Filling Hall, Driveway, Office and Ablution Blocks, Fire Fighting System and a Fire Water Storage Tank and other activities associated with civil works will create disturbance and generate waste requiring mitigation. Fire Risk within the site or neighbouring operations. Generation of excess dust during construction. Potential Negative Impacts Terrestrial habitat alteration and disruption (disruption of breeding areas for birds and insects Site Construction Waste generation and Dust Emission Noise from construction machinery Risk of new HIV and Aids infection due to movement of construction workers exposing them to new situations, meeting new people and hence increased risk of acquiring HIV and other sexually transmitted diseases. Effects of the construction and maintenance activities to human environment Increase in heavy vehicle traffic during construction and operation activities. Potential destruction of property by fire due to combustible nature of LPG. LPG forms an explosive mixture with air. Effect of dust on the industrial and commercial activities neighbouring the site Potential Safety/Occupational risks during construction activities MITIGATION MEASURES Solid Waste The proposed Depot is expected to generate several types of waste during construction and operation activities. Excavated soil will require proper collection and appropriate disposal. Site waste materials will include metal, sand, cement. Solid waste will include empty containers, raw material wrappings and left over construction materials that will require appropriate disposal. Storage of excavated material (soils) will require proper temporary storage before disposal to avoid causing visual intrusion and being a nuisance or obstruction to neighbouring operations.
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PANAFCON Ltd. Air Quality During Construction Dust and other particulates will need to be arrested during construction through sprinkling of water regularly. The contractor shall be required to use well maintained machinery and vehicles with reduced smoke emission. Air Quality During Operation The proponent shall ensure that operations governing LPG offloading from Trucks to LPG Tanks and the filling of cylinders will be done with utmost care ensuring that there is no accidental release of the gas. LPG Quality Specifications and Technical Standards KenoKobil undertakes to install the latest state of the art LPG Tanks and Filling Equipment that complies with local and international standards. KenlKobil will comply with the Energy Regulatory Commission (ERC) requirements and the Installations will conform with Kenya Bureau of Standards and International Quality and Technical Standards. Installation of Mounded LPG Tanks
The Safety Aspect

The LPG Tanks to be installed at the facility will be mounded. By mounding LPG tanks with an adequate layer of sand and earth, the possibility of fire engulfment and a BLEVE (Boiling Liquid Expanding Vapor Explosion) is removed. Mounding allows safety distances around the facility to be considerably reduced, compared to an equivalent unprotected design. The cover of the mound protects the vessel from fire engulfment, radiation from a fire in close proximity and acts of sabotage or vandalism. The area of land required to locate a mounded system is minimal compared to conventional storage.
The Environmental Aspect

Originally justified by reducing the area of ground required by above ground systems, it has developed into an aesthetic argument. Mounded lpg gas tanks can be landscaped to blend with the environment. Further environmental concern results from the large volume of water required for the fire systems of conventional storage. This imposes a demand on valuable water sources, and problems associated with the drainage and disposal of the water. The extra cost associated with a mounded system is offset by the lower cost of the land required, and the virtual exclusion of fire fighting systems. Mounded systems have also been installed where the available space, or environmental pressure, precluded traditional storage methods. Source of Water The construction and operation of the proposed LPG Plant shall require adequate provision of water. The proponent proposes to obtain the required water for construction and operation activities from the existing piped water that serves the area and is present at the site. The proponent proposes to construct 100M water reservoir within the site for operations and fire fighting.

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PANAFCON Ltd. Safety Measures and Installation of Safety Devices Safety measures will be put in place including installation of safety devices at the LPG Bulk Storage and Filling Plant. This will include the following: Installation of mounded LPG Tanks Provision of adequate ventilation Installation of Liquefied Petroleum Gas Detectors/Sensors to detect any Gas Leaks Safety fittings on the fill line from L.P.G Trucks State of the Art fire-fighting equipment Elimination of all ignition sources ENVIRONMENTAL MONITORING Environmental monitoring is envisioned as an important process in project management. The monitoring programme will reveal changes and trends brought about by the presence and operations of the LPG facility. The information will be useful in the formulation of sustainable project management through appropriate safety measures and operation strategies. The basic activities for a sound-monitoring programme for the LPG Plant once its implementation starts should at least include the following parameters: Collection and analysis of relevant environmental data of the LPG Plant including: - Evaluation of the type and quantity of solid waste generated during construction to ensure appropriate handling, storage and disposal. - Evaluation of the construction practices to ensure proper tools, machines and methods are employed to guarantee safety and environmental protection. - Monitoring of various parameters during construction and operation to confirm compliance with local by-laws, legislative requirements and industry practices. - Evaluation of noise and other effects emanating from the construction site to the surrounding neighbouring commercial operations - Quantity of water used during construction and how the runoff water is directed. - Staff Safety and Health Trends taking into consideration appropriate induction on appropriate social behavior to guard against STDs and HIV. Identification of unexpected environmental impacts not previously considered Formulation of counter-measures to mitigate any unexpected negative impacts and impacts not previously considered and comparing them with actual impacts as identified during the EIA Study.

Parameters and Equipment to be monitored during construction Dust and smoke emission Noise levels from machinery and vehicles Solid and liquid waste Construction staff safety Installation configuration observing required distances Operation status of construction machinery Parameters and Equipment to be monitored during operation L P Gas leaks Status LPG Tanks and Filling Equipment LPG Plant operations observing safety requirements Operation staff safety Firefighting equipment operation status Operation Status LPG Detectors
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ANALYSIS OF ALTERNATIVES During the course of formulating the proposed project, several project alternatives were considered to ensure that the best option of project development was adopted. Consideration of project alternatives is one of the proactive approaches to environmental assessment and cost/benefit analysis. The process serves to enhance the project design through examination of other feasible options instead of only focusing on the more defensive task of reducing adverse impacts of a single design. Among the project alternatives evaluated include the following: Alternative of not constructing the LPG Plant. Installation Layout/Design Alternatives Alternative to LPG Location. PUBLIC PARTICIPATION AND CONSULTATIONS During the field investigations, the Consultant held discussions and interviews with various stakeholders within the project area (Old Airport Road, Kisumu) and Kisumu Town including the following: Kisumu City Council Business Community Provincial Administration Kenya Airports Authority (KAA) Kenya Civil Aviation Authority (KCAA) Kenya Industrial Estates (KIE) Physical Planning (Ministry of Lands) Ministry of Public Health and Sanitation (MOPHS) District Development Office (DDO) National Cereals and Produce Board (NCPB) Kenya Marine and Fisheries Research Institute (KEMFRI) The Public consultation process involved visiting the areas around the project location and different stakeholders. The stakeholders were identified and consulted with the objective of establishing the existing socio-economic conditions within the proposed project area of influence and seek their views on the proposed LPG Project. Public Consultation Meeting A Public consultation meeting to discuss and deliberate on the proposed project was held on May 4, 2012 at the Nyanza Golf Club. Positive and negative impacts were discussed. Stakeholders asked questions, aired their views and proposed ways of improving the proposed LPG Plant. Majority of the stakeholders indicated that they support the installation of the LPG Plant since it would alleviate shortage of cooking gas that is frequently experienced in Kisumu and the surrounding areas and also create job opportunities. However they expressed that measures have to be put in place to guarantee safety from explosion and fire.

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PANAFCON Ltd. CONCLUSIONS & RECOMMENDATIONS Conclusions LPG has the following important properties: A good mixture: LPG is mainly Propane (C3H8), Butane (C4H10) or a mix of Propane / Butane. Since LPG has such a simple chemical structure, it is among the cleanest of any alternative fuels. Boiling Point: LPG's boiling point ranges from -42C to 0C depending on its mixture percentage of Butane & Propane. Odour: LPG is odourless. Ethyl Mercaptan is added as an odourant to detect LPG in case of leaks. Colour: LPG is colorless Combustion: The combustion of LPG produces carbon dioxide (CO2) and water vapour but sufficient air must be available. Inadequate appliance fueling or ventilation can result in the production of carbon monoxide which can be toxic. Vapour Pressure: LPG is stored as a liquid under pressure. Its weight is approximately half that of an equivalent volume of water. LPG vapour is denser than air: butane is about twice as heavy as air and propane about one and half times as heavy as air. Consequently, the vapour may flow along the ground and into drains, sinking to the lowest level of the surroundings and be ignited at a considerable distance from the source of leakage. Toxicity: LPG is a colourless, odourless and non-toxic gas, but in large concentrations decreases oxygen quantities in the environment (room). Accumulation of LP Gas vapour may result in the development of an oxygen-deficient atmosphere which carries a risk of asphyxiation Corrosivity: LPG is is generally non-corrosive to steel and copper alloys. Safety: LPG is safer than most fuels because neither LPG itself nor the end products that are produced by burning LPG in a suitable appliance, are poisonous to inhale. Since LPG cannot burn without air, there can never be a 'Flash-back' into the cylinder. Arising from the analysis by the Consultant, the proposed project is unlikely to generate irreversible or permanent negative impacts. The EIA Study Report has provided adequate mitigation measures for the identified impacts which are mainly associated with fire safety. In order to alleviate any negative impacts that may emanate from the construction and operation of the LPG Plant, relevant and cost effective design, construction and gas monitoring shall be put in place. Recommendations It is therefore recommended that the LPG Plant project be approved provided that the proposed recommendations given below are implemented and strictly adhered to during construction and operation phases of the project: Stakeholder Recommendations The provincial administration and stakeholders in the proposed project area fully support the project but request that a sound safety system and emergency response mechanism the incorporates the involvement of the local business community be put in place. This should include regular training of the constituted emergency response team. The access road from the Kisumu-Busia Road should be improved for ease of evacuation. Gas detectors should be installed.

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PANAFCON Ltd. The Environmental Impact Assessment Study Report should be availed at the local level so that all stakeholders and the local communities can ascertain that their views have been taken into consideration. Waste Management Recommendations Solid waste shall be generated periodically during the project lifespan and should be managed in such a way that it does not impact on the environment. The site construction materials and all solid wastes shall be gathered together at designated areas using approved appropriate/waste bins (bins with lids). These shall then be regularly collected by an appointed waste disposal firm that shall transport it away from the project area for appropriate disposal following NEMA and Local Authority regulations on waste collection, handling and disposal. The project design has provided for appropriate drainage and interceptor to hold and pretreat all liquid waste generated from the operations of the LPG Plant. The Plant will be served with sufficient drainage to carry away the surface runoff. Environment Management Plan Recommendations In order to ensure a healthy and safe environment at the proposed LPG Plant and its environs, a plan for environmental management has to been instituted through an environmental management plan and monitoring. This involves the collection and analysis of relevant environmental data of the project area and its immediate surroundings. The proponent shall do the following: The proponent undertakes to rehabilitate any degraded environment especially the cleared areas/undeveloped part of the LPG Plant. The proponent undertakes to reduce any dust emissions during construction and operation through spraying of water, maintain low speeds for any Vehicles and Trucks being used at the project site to reduce any dust emissions. The degraded environment especially excavated areas prone to soil erosion will be rehabilitated in-situ (as the construction progresses) to avoid soil being washed down gradient. The excavated soil shall be used to backfill where possible or disposed off appropriately in other areas where it could be useful. The contractor shall compact any loose soils as construction progresses to avoid soil wash offs. All disturbed areas of the site shall be well landscaped. The process of rehabilitation shall be carried out during construction to avoid siltation and soil wash-off. Due to the nature and properties of LPG, the site shall be secured through the improvement of the existing perimeter stone wall to provide containment. Gas Detectors appropriate for LPG and sirens shall be installed to monitor the presence of LPG in the atmosphere. The LPG Tanks to be installed the Plant shall be mounded to enhance safety. There shall be a Fire Fighting System complete with 100 Cubic Metre Water Tank, 100m3/hr diesel fire engine, 4 ring main & fire monitors. There will be implementation of safety measures and emergency plans to contain accident risks associated with gas leakage, vehicle transport and operation of machinery. Emergency response plans/procedures including details (phone numbers and location) of the nearest dispensaries, hospitals and the proponents site representative will be provided to the Contractors Site Foreman / Manager of the construction site for action in case of any accidents during construction and operation phases.
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Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

PANAFCON Ltd. The contractors staff members shall be trained on the use of any new machinery and equipment that may pose danger to the user before they are allowed to use them. The contractor shall ensure that all structures are safe and secure for all personnel. Special attention will be paid to the sanitation in the site by providing clean water, sanitation facilities and proper housekeeping. Effective solid waste management as guided by the Local Authority shall be adhered to. Special attention will be paid to the disposal of solid waste. A reputable solid waste management firm shall be contracted to regularly collect waste for appropriate disposal away from the LPG Plant. Provision of solid waste receptacles shall be located at the site for use during construction and operation phases of the project. All construction and operation workers shall have appropriate safety gear. Sound levels reaching the inner ear may be effectively attenuated by the use of hearing protective devices, such as earplugs and earmuffs. Appropriate selection of machinery shall be done to minimize noise pollution. Use of explosives or loud machinery shall not be allowed during the construction and operation of the facility. Construction vehicles and machinery operators shall always be asked to switch off engines of vehicles or machinery not in use to reduce air/noise pollution. It shall be ensured that the construction machinery are serviced and kept in good condition to reduce noise generation and fuel emission. Construction drivers shall be instructed to avoid hooting near the construction area. The construction work shall be restricted to daytime only to ensure safety and avoid attracting thugs to the project site hence causing insecurity. There shall be proper management of water resources through prudent usage hence avoiding unnecessary wastage. The proposed LPG Plant was formerly used as a Depot for the storage and dispensing of petroleum products. Currently it is used to store empty and filled gas cylinders. The contractor shall be instructed to carry out excavation and construction activities with utmost care to avoid breaking any utility lines (Power Lines, Water Pipes etc) All workers shall be sensitized on fire evacuation plans and control at the construction site and during operation of the Plant. Potable firefighting equipment shall be located at strategic points where they can be easily accessed during construction. All Contractor Personnel involved in working at elevated levels (heights) shall be appropriately trained and provided with proper safety equipments including scaffolds for those working at heights. The contractor shall ensure that at least one of the workers is trained in First Aid Administration.

Project Approval Recommendation Project Approval Recommendation is made considering that: The LPG Tanks (Bullets) shall be mounded. This is a safer option since it provides intrinsically passive and safe environment and eliminates the possibility of BLEVE (Boiling Liquid Expanding Vapor Explosion). Mounded LPG Tanks also significantly reduces required safety distances. By mounding LPG tanks with an adequate layer of sand and earth, the possibility of fire engulfment and a BLEVE is removed. The area of land required to locate a mounded system is minimal compared to conventional storage for LPG. Mounded LPG tanks enhances safety against fire and explosion and reduces the the quantity of water for firefighting requirement. Mounded LPG gas tanks can be landscaped to blend with the environment.
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Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

PANAFCON Ltd. The LPG facility shall be installed with Gas Detectors and adequate firefighting equipment. Creation of direct and indirect employment opportunities for the local population. The increased storage and availability of LPG in Kisumu will ensure regular supply of cooking gas that will stabilize price and enhance its use thereby reduce reliance on wood fuel and charcoal. This will in effect promote environmental conservation. Construction Design to ensure a safe and secure system. Commitment by the proponent to improve the stressed biodiversity of the site area through site rehabilitation and minimized cutting down of Indigenous trees at the site. The proposed management of the facility operations (solid waste handling), Mitigation measures and monitoring plan that will be put in place and the commitment to carry out an Annual Environmental Audit as often as NEMA deems necessary.

Overall opinion of the Consultant on the proposed project The proposed development is considered important, strategic and beneficial in increasing the supply of cooking gas which is a clean source of energy that will also promote environmental conservation may be allowed to proceed taking into account the proposed Mitigation Measures and Environment Management Plan (EMP).

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PANAFCON Ltd. 1 1.1 PROJECT INTRODUCTION AND BACKGROUND Introduction KenolKobil Ltd proposes to construct an LPG Bulk Storage and Filling Plant for the storage of cooking gas and filling cylinders for distribution in Kisumu Town, Nyanza, Western and part of Rift Valley Provinces. LPG Bulk Storage and Filling Plants fall in the category listed in the Second Schedule of the Environmental Management and Co-ordination Act (EMCA), 1999 under item 10 and is therefore required to undergo Environmental Impact Assessment (EIA). Having reviewed the project proposal, project design, and the Local Legislation and conducting the field surveys, the Consultant has prepared this EIA Study Report. This EIA Study Report comprises the following:

1.2

Executive Summary; Chapter 1: Project Introduction and Background; Chapter 2: Description of Proposed Project; Chapter 3: EIA Approach and Methodology; Chapter 4: Policy, Legal and Institutional Framework; Chapter 5: Baseline Information; Chapter 6: Public Participation and Consultation; Chapter 7: Analysis of Project Alternatives; Chapter 8: Potential Environmental Impacts; Chapter 9: Environmental Management Plan; Chapter 10: Conclusions and Recommendations; Chapter 11: EIA Study Team Members; List of References; Annexes

Background KenolKobil Ltd is committed and dedicated to the sustenance, maintenance and enhancement of the environment in conjunction with the communities in which they carry out their business activities. This commitment encompasses the protection of staff, customer, both communities and the general public on health issues and ensures that KenolKobil Ltds activities enhances and improves their safety, which is reflected in her Motto. Through this commitment, KenolKobil conducts its business with the vision of satisfying the economic aspirations of humanity and at the same time maintaining a friendly environment that provides safety and health. The Management has the responsibility to realise the commitment to Environment, Health and Safety by conducting business in a manner acceptable to the public, and in compliance with statutory legislation and protocol. An adequate and reliable supply and maintenance of equipment for fuel energy supply is not only a basic pre-requisite for development of the industrial, commercial, and agricultural sectors, but it is also important for domestic consumption. Presently, Kenyas

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PANAFCON Ltd. major sources of energy are petroleum fuels, electricity and wood fuel, and to a lesser extent solar energy, wind, ethanol, coal and biogas (National Development Plan, 20022008). The reliability and adequacy of the supply of petroleum products guarantees sustainable development and reduced reliance on wood fuel thus protecting the environment from overexploitation and degradation. It is therefore important that consistent and reliable supply of petroleum products at an affordable rate should be guaranteed in order to be able to enhance the protection of the environment. This mandate that is endeared by KenolKobil shall be further enhanced by the proposed LPG Plant. The construction of the LPG Bulk Storage and Filling Plant will bring the following benefits: Regular supply of cooking gas in the region Stabilisation of gas prices which has recently been fluctuating depending on availability. Promote reliance on LPG as opposed to wood fuel and charcoal and thereby enhance biodiversity and environmental conservation. 1.3 Objectives of the Environmental Impact Assessment (EIA) The Environmental Impact Assessment (EIA) is to achieve the following objectives: 1.4 To identify and assess potential Environmental Impacts of the proposed project. To identify all significant and adverse Environmental Impacts of the proposed project and recommend appropriate mitigation measures. To generate baseline data for monitoring and evaluation of how well the mitigation measures will be implemented during the project cycle. To recommend cost effective measures to be implemented to mitigate the expected impacts and enhance safety. To prepare an Environmental Impact Assessment Study Report compliant to the Environmental Management and Coordination Act (1999) including the subsequent NEMA Regulations and Energy Regulatory Commission guidelines and Presentation of findings and recommendations.

Location of Proposed LPG Plant The proposed LPG Bulk Storage and Filling Plant is located 2km north west of Kisumu Town CBD along Old Airport Road approx 800m from the Kisumu Busia Road. The site is situated at latitude S 00 05 05.1 and longitude E 034 44 26.1. Refer to Map1 and Map 2 below for the site location.

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PANAFCON Ltd. DESCRIPTION OF THE PROPOSED PROJECT 1.5 Project Objectives The proposed LPG Plant shall be used as an LPG Bulk Storage and Filling Plant for storage and filling of cooking gas into cylinders for distribution in Kisumu Town, Nyanza, Western and Part of Rift Valley Provinces. The proposed project will involve the installation of 8 Mounded 54MT Tanks and all associated Civil Works, Installation of a Filling Station and related conveyor system, Construction of a filling hall, Concreting of all driveway within the plant, Construction of Office and Ablution Blocks, Installation of Fire Fighting System for the entire plant and Construction of a fire water storage tank. 1.6 1.6.1 Project Justification Current LPG Supply Situation Currently the LPG (cooking gas) used in Kisumu Town, Nyanza, Western and part of Rift Valley Province is transported from Mombasa and Nairobi in the standard LPG cylinder sizes of one, three, six and thirteen kilograms fitted with a unified valve. The reliability and adequacy of the supply of gas transported in cylinders to western Kenya has not been consistent resulting in frequent shortages and price fluctuations. This unreliable supply has resulted in the increased use of kerosene stoves, wood fuel and charcoal which enhance pollution and environmental degradation. A consistent and reliable supply of cooking gas at an affordable rate should be guaranteed in order to be able to enhance the protection of the environment through use of clean energy source and less reliance on wood fuel and charcoal. The ever increasing demand for clean, reliable and affordable source of energy for domestic and commercial use in Kisumu and the western region as a whole calls for increased supply of this commodity. This has necessitated the citing and location of a Bulk LPG Storage and Filling Plant in Kisumu by KenolKobil management. 1.6.2 LPG Demand Study Several studies on LPG Demand in Kenya have been carried out by different organizations. These studies indicate that in the last decade, there has been sharp increase in the demand for domestic cooking gas. The ERC study carried out by KIPPRA indicate that the use of LPG at homes, educational and health institutions has risen from slightly over 40 thousand metric tons in 2003 to over 80 thousand metric tons in 2008. The Business Daily Report of February 7, 2012 reported that demand for LPG in Kenya and the east and central Africa region is currently constrained by lack of LPG import facilities at Mombasa and a weak distribution network. Data by the Kenya Bureau of Statistics showed that demand for LPG in the country has increased in the last five years from 49,400 tons in 2005 to 87,800 tons in 2010, an increase of about 78 per cent. In 2004, ERC commissioned Petroleum Development Company (PDC) to carry out a study on LPG infrastructure for Kenya. Kisumu was one of the Towns listed as requiring LPG facilities. The Standard on Sunday, Weekend Business of April 29, 2012 reported that the current LPG storage is 7,000 tons which is lower than the 13,000 tons required. The increased demand and lack of adequate LPG storage therefore justify the need to have a Bulk LPG Storage and Filling Plant in Kisumu Town.

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PANAFCON Ltd. 1.7 Project Location The proposed LPG Plant is to be located along Old Airport Road Off Busia Road in Bandani Sub-Location, Kisumu Town Location, Winam Division, Kisumu East District, Nyanza Province. The site is situated approximately 2km to the North-West of Kisumu Town CBD. The site was formerly used as Fuel Storage and distribution Depot by KenolKobil before KPC started providing refined fuel from its Kisumu Depot. Refer to Map 1 and Map 2 for the location of the proposed LPG Plant Site. The area where the proposed LPG Filling Plant is to be located is occupied by commercial and industrial activities. The site area is composed of well drained shallow to moderately deep dark reddish brown to brown friable, clay loam to clay soil, in some places with a humic top soil or gravelly over soft rock (cambisols). The geology of the site area is largely composed of Quaternary Sediments of Pleistocene Age consisting of thick deposits of lacustrine and fluviatile sediments. In some places Tertiary Volcanics of alkaline type including nephelinites, trachytes and alkali ryolites and their pyroclastic equivalents are present.

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PANAFCON Ltd
Location of Kisumu Town in Kenya

KISUMU
Oc ea n

Location of KenoKobil LPG Plant

Lake Victoria
Scale 1:50 000

KENOLKOBIL LIMITED

Map 1 Location of Proposed KenolKobil LPG Plant Kisumu Town, Kenya

PANAFCON LTD
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Environmental Impact Assessm ent Study/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisum u - June 2012 Pan 12 - 071

In d ia n

PANAFCON Ltd

KenoKobil LPG Plant


N

Scale 1:7 000

KENOLKOBIL LIMITED

Map 2 Proposed KenolKobil LPG Plant Compound Circled in Yellow

PANAFCON LTD
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Environmental Impact Assessm ent Study/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisum u - June 2012 Pan 12 - 071

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1.8

Project Design Consideration Currently the site still has the following construction remains from the past operations: Office Block with ablution facilities Tank Farm bund wall Fuel Loading Gantry Water Storage Tank The site will be developed to include the following facilities (refer to layout of LPG Plant in Map 3): Secure stone boundary wall of at least 2m high, installation of 8 Mounded 54 Metric Ton Tanks and all associated Civil Works, Installation of Filling Station and related conveyor system, Construction of a filling hall, Concreting of all driveway within the Plant, Construction of the Office and Ablution Blocks, Installation of Fire Fighting System for the entire plant, Construction of a fire water storage tank, LPG Tanks containment, Drainage lines, Oil and water separator (interceptor), Access Road from the Old Airport Road to the entrance of the LPG Plant.

1.9

Project Activities The project activities include the following; Preparation of Design Drawings of the various facilities for approval by the relevant Authorities. Commissioning of an EIA Study for the proposed project in line with NEMA requirements. Preparation of an EIA Study Terms of Reference and launching the same with NEMA. EIA Study and preparation of an EIA Study Report for Submission to NEMA. Demolition of existing structures, transportation and disposal of the resulting debris/waste. Site preparation and construction activities that involve installation of 8 Mounded 54MT Tanks and all associated Civil Works, Installation of Filling Station and related conveyor system, Construction of a filling hall, Concreting of all driveway within the plant, Construction of Office and Ablution Blocks, Installation of Fire Fighting System for the entire plant, Construction of a fire water storage tank and improvement of the access road from the Old Airport Road. LPG operation activities that include transportation of LPG Gas and Storage at the New LPG Plant. Filling of LPG Cylinders and Distribution to Outlets for consumers.

1.10

Description of the Projects Construction Activities During the construction of the proposed LPG Plant, skilled labour (contractor) shall be procured through competitive bidding to ensure that the Plant is constructed following the approved designs and installation of the various LPG storage and filling facilities. The construction shall endeavor to maintain the site environmental integrity.

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PANAFCON Ltd. The proponent undertakes to ensure that priority is given to local populations to provide unskilled labour during the construction activities. The construction team shall also source for any required raw materials locally where such materials are established to be locally available. This will ensure that the project generates employment for the local community who are entitled to enjoy any benefits accruing from the development of the project within their locality. The construction of the LPG Plant will involve the following activities: Demolition of the existing structures that include the existing office and ablution blocks, loading gantry and tank farm bund wall. Transportation and appropriate disposal of generated debris/waste from the demolition. Excavation and disturbance of soils and geological formation causing soil erosion and loss of topsoil during construction. The excavated soil will be gathered together, temporarily stored within the site and disposed of appropriately. Construction activities of the proposed LPG Plant structures and other activities associated with civil works. Installation of the mounded LPG Tanks, Gas Pipe Work and Gas Filling Equipment. Installation of Gas sensors The scope of works will be in main 3 parts: Civil Works Electrical Works Main Plant / Mechanical works: 1.10.1 Civil works The civil works will be composed of the following: Plant driveway and boundary wall, Office and ablution block, 5 LPG Mounded Bullets each with a capacity of 54 Metric Tons. (total 270 MT) with capability of future expansion to a achieve a total of 8 tanks. The LPG Tank Farm will be mounded. Filling Hall Shed. 1.10.2 Electrical Works The electrical works will be composed of the following: Electrical System consisting of main power supply, supply and installation of Generator set, all cables to equipment and Flood lights CCTV System. 1.10.3 Main Plant works and Mechanical Works Weigh Bridge. Weigh bridge complete with ticketing, automation connected to SCADA LPG Filling Equipments. Chain conveyor and Elevated conveyor. Auto checks and Manual scales. Heat shrink machine.
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PANAFCON Ltd. Decanting System. Top up system. Filling Pump and Offset Filling for Lager Cylinders Piping for LPG and Vapor Includes piping flanges, fittings, gasket nuts and bolts Scope includes Piping (LPG and Vapor) Fill line from truck with safety fitting Pump suction and Pump discharge lines Bypass return line Truck Offloading/Loading Fire Fighting complete with 100 Cubic Metre Water Tank, 100m3/hr Diesel fire engine, 4 ring main & fire monitors. Instrumentation SCADA System with capability of: Checking production real time and history of production Connection to tank gauges radar. Interfacing with Weigh Bridge. Connection to offloading meters. Interfacing and integrating with the ERP system (Oracle). This is important so that orders are booked to the plant and reconciliation plant production against orders. Separation of data such as topped up cylinders The SCADA shall allow for effective stock management. The above shall be tendered separately to local contractors. The project shall be on a Turnkey basis for the Main equipments automation/equipment and instrumentation 1.10.4 Construction Materials As much as possible, the proponent intends to use locally available materials for the construction of the various structures and equipment. Only where such materials shall not be available locally will they be brought in from outside the project area. Structure Foundation The project area is largely composed of Quaternary Sediments mainly lacustrine and fluviatile deposits and Tertiary Volcanics. Majority of the LPG Plant structures will have the foundations composed of concrete and hardcore material that will be obtained locally. 1.10.5 Construction Supervision During the construction phase, close supervision shall be carried out to ensure: Workers put on necessary safety gear at all times (including hand gloves, helmets, safety shoes with metal tipped toes, ear muffs, overalls and dust coats). Provision of appropriate safety belts will be made to those workers performing their duties at elevated heights. Motorised equipment are checked and certified to ensure that they are in good working condition, safe to use and produce minimal noise levels not forgetting reduced smoke emission.

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PANAFCON Ltd. First aid kit and firefighting equipment (portable cylinders) are provided and placed at strategic positions that can be easily accessed when required. The Contractor shall ensure that all workers are given instructions on how to safely use the fire fighting equipments. There is proper collection and disposal of waste material and toilet facilities shall be provided for all construction workers. Emergency response procedures are put in place and all workers are trained in effecting them. Any work involving deep excavations, elevated heights and lifting heavy loads, poses a number of safety risks to personnel. The Contractor shall develop a Safety Plan before commencement of each phase of the construction. This will ensure that personnel are equipped with the correct protective clothing and equipment and are ready to work safely while also safeguarding the environment. All workers carrying out their duties at elevated heights during construction shall be required to make use of appropriate equipments like scaffolds and safety harness. The site supervisor will ensure that all working areas are cordoned off using visible barriers to keep away unauthorized access for persons not working in the area. Site supervisor will ensure that that workers in construction areas generating dust use their nose masks. All appropriate methods shall be used to suppress any dust generation through water sprinkling etc. The LPG Plant shall be maintained clear of all rubbish and combustible vegetation within 3m of any tank or filling connection.

1.11

Site Alteration during Construction It is envisaged that the proposed LPG Site will undergo some alteration during the construction process to accommodate the proposed installations and other associated structures. The potential alterations during construction shall include the following:

1.11.1 Existing Vegetation The proposed site has low vegetation density mainly composed of grass and a few scattered trees. There will be need to enhance the biodiversity and scenic beauty of the area by planting more indigenous plants when the project is completed. 1.11.2 Soil Excavation To facilitate the construction and installation of the various components of the LPG Storage and Filling Plant, excavation of the top soil shall be done to lay the necessary foundations of the structures. This is only expected to go up to the shallow volcanic bedrock. The contractor shall carry out the soil excavation process with utmost care to ensure that the excavated soil is not improperly heaped or not carried away by any surface flows. The excavated soil will be removed offsite for appropriate disposal following NEMA and Local Authority Requirements and Regulations. Occupational Safety and Health Act of Kenya and established International Environmental Protection Regulations/Standards shall guide the Contractor. This will include safety wear at all times. Modest construction procedures will need to be followed in order to reduce noise levels and the production of dust that may affect the people within vicinity and beighbouring commercial activities within the area.

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PANAFCON Ltd.

Plate 1: Part of the LPG Plant Site showing stored LPG Cylinders

Plate 2: Former Tank Farm Area. Baseline Soil Sample collection in Progress

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PANAFCON Ltd. 1.12 Description of the Projects Operation Activities After completion of the LPG Plant development (construction), the main processes/activities of environmental concern that shall take place at the proposed site will include the following: LPG Tankers driving in and out of the facility. Offloading of gas from LPG Tankers into the LPG Bullets. Bulk Storage of Gas in the LPG Bullets. Filling of LPG cylinders with Gas. Trucks Driving in and out of the facility to bring in empty cylinders and collect cylinders filled with gas. Loading and offloading of LPG cylinders. Storage of empty cylinders and cylinders filled with gas. Generation of office wastes and other wastes associated with site operations and maintenance activities.

1.13

Description of the Projects Decommissioning Activities The proponent owns the land where the LPG Plant shall be installed. However should the lease lapse, the proponent shall be expected to decommission & demolish the facility and restore the host environment close to its original state prior to use of the site as a Fuel Storage and Distribution Depot and the proposed LPG Plant operation activities. The decommissioning exercise shall involve the following: The LPG Tanks and Filling Facilities must be degassed before decommissioning and removal - First, any remaining Liquid LPG must be removed from the system and storage tanks - After removal, any remaining LPG that cannot be removed must be flared. - Once the flare will no longer burn, the system must be purged of residual vapours. - Purging is typically done using Nitrogen or Air. - Once the tanks have been completely purged, the tanks are excavated (since they will be mounded. - The contractor should verify that all data plates are legible and intact, otherwise the tanks may have to be re-certified, before being resold or reused for pressurized service. After excavation, tanks, vaporizers, compressors and other equipment will be dismantled and prepared for transport. All piping will be cut and capped Hazarders material like ethylene-glycol and mercury switches, if any, will be collected for appropriate disposal. Removal of all cylinders (filled and empty) for storage elsewhere. Proper cranes will be used to lift the tanks from their piers onto trucks for transport. All concrete works will be demolished. Other structures within the plant will also be demolished Careful removal of all the electrical fittings and associated cables will be done There will be proper handling of the demolished materials and have an authorized and guided transportation and disposal away from human settlement, water bodies and wildlife conservation area (National Park area) in accordance with Local Authority and NEMA Regulations and guidelines.

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PANAFCON Ltd. The host environment shall thereafter be rehabilitated and restored to its former state through: Approved and appropriate landscaping methodology. Planting of indigenous vegetation. Removal of any soils that may have been impacted by oils for offsite (away from the project area) remediation. Bringing in of clean soil to replace impacted soil that has been excavated and removed. 1.14 Cost of Proposed Project The project is estimated to cost the proponent Kshs 120,794,297/= to set up. Refer to Annex 8 for bill of quantities signed by a registered Quantity Surveyor. The proponent is expected to pay a fee to NEMA for the EIA License of 0.05% of the total cost of the Project. (0.05% of Kshs 120,794,297/=) which gives KShs 60, 397/= to NEMA.

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PANAFCON Ltd. 2 EIA APPROACH AND METHODOLOGY This Environmental Impact Assessment (EIA) study was carried out through desktop study & field investigations. The Consultant conducted extensive literature review pertaining to the proposed project. During the field investigations, reconnaissance survey was conducted to gather information on the biophysical and socio-economic aspects of the area and its environs. A ToR was prepared and submitted to NEMA for approval. Refer to Annex 9. The method applied for the EIA Study of the Proposed LPG Plant was divided into Four Phases. The four phases included: Desk Top Study Detailed Site Assessment Survey Stakeholder Consultation, Public Consultation Meeting and Questionnaire Administration Environmental Impact Assessment (EIA) Study Report Preparation 2.1 Phase 1: Desk Top Study and Project Area Reconnaissance Survey Desk Top Study Literature reviews pertaining to the project development and operation activities have been done. This includes the review of the Environmental Management and Coordination Act, (EMCA), the Environmental Impact Assessment (EIA) Guidelines, the Physical Planning Act, relevant studies and Project Reports on the construction of the Depot in particular. Other legislative references reviewed include the following: Environmental Management & Coordination Act (EMCA) Environmental Management and Coordination (Water Quality) Regulation Environmental Management and Co-ordination (Waste Management) Regulations Environmental Management and Coordination (Controlled Substances) Regulations Environmental Management and Coordination, (Conservation of Biological Diversity & Resources, Access to Genetic Resources, Benefit Sharing) Regulation Environmental Management and Coordination Draft Air Quality Regulations Environmental Management and Coordination (Noise and Excessive Vibration Pollution Control) Regulations, 2009. The Energy (Liquefied Petroleum Gas) Regulations, 2009 The Water Act, 2002 The Land Planning Act, Cap 303 The Physical Planning Act, Cap 286 The Local Government Act, Cap 265 The Public Health Act, Cap 242 The Occupational Safety and Health Act, 2007 Public Roads and Roads of Access Act Cap. 399 Building Code 1997 Registered Lands Act, Cap 300 Project Reports and reference materials associated with the project area have also been reviewed.

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PANAFCON Ltd. 2.2 Phase 2: Detailed Site Assessment Survey During the field investigations, reconnaissance survey was conducted in order to collect information on biophysical and socio-economic environment of the proposed depot area and its environs. The team made observations on a wide range of biophysical and socio-economic environments. All features of biophysical environment including landscape, geology, soils, flora and fauna were recorded. Photographs were taken where necessary. The team made a reconnaissance survey of the project area and all the neighbouring facilities and administered neighbor/stakeholder questionnaire. This exercise generated primary data on the socio-economic conditions of the area covered by the proposed project. Soil and air samples were collected for analysis. The results of the soil and air analysis are intended to provide the following information: Baseline data of the site. To confirm that the site has not been impacted prior to the development of the LPG Plant. 2.3 Phase 3: Stakeholder Consultation and Public Consultation Meeting As part of the EIA Study, relevant stakeholders and all affected and interested persons were contacted at different times during the detailed field baseline data collection and interviewed in order to discuss the proposed LPG Plant project to seek their views and opinions on the proposed development. 2.3.1 Purpose of Stakeholder Consultation The main purpose of carrying out consultation with neighbors/stakeholders, local community and local administration to obtain their views and concerns on the upcoming project and incorporate their contribution into the project development to improve on safety concerns and safeguard of the environment. Secondly, stakeholder consultation was conducted to take the opportunity to elaborate the essence of the project, to inform them of any potential negative impacts and elaborate on the positive aspects so that an informed decision is made by the stakeholders. 2.3.2 Stakeholder Consultation, Questionnaire Administration and Public Consultation Meeting Stakeholders were consulted and interviews conducted on the proposed project. Thereafter questionnaires were administered to obtain their views and suggestions. A Public Consultation Meeting was held where stakeholders, local administration and local authorities met to discuss benefits and impacts of the proposed project. The questionnaires distributed to various stakeholders have been included in Annex 3.

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PANAFCON Ltd. 2.4 Phase 4: Environmental Impact Assessment (EIA) Study Report Preparation Having reviewed the existing reports and reviewing the Local Legislation, conducting the field work and Data analysis, the Consultant has prepared this EIA Study Report. All the information and data collected during the four stages of the EIA have been evaluated and form the basis of compiling this Environmental Impact Assessment (EIA) Study Report for submission to NEMA to seek project approval and finally obtain the EIA License.

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PANAFCON Ltd. 3 3.1 POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK Environmental Management & Coordination Act and Related Regulations Every Kenyan, according to the Environmental Management and Coordination Act (EMCA), 1999, is entitled to a clean, safe and healthy environment and has the duty to safeguard and enhance it. Environmental Impact Assessment (EIA), as a tool for better planning, is undertaken to check compliance with environmental policies and legislative environmental requirements in order to check risks associated with any upcoming projects and expose them for correction and improvement. It provides information for periodic review and alteration of the environmental management plan as necessary, ensuring that environmental management is optimized at all stages of development through best practice. Policies and laws that relate to Environmental Impact Assessment aim at promoting sound environmental management. Project Listing in the Second Schedule Projects to undergo Environmental Impact Assessment are listed in the Second Schedule of EMCA. Storage Depots are listed in the Second Schedule of the Environmental Management and Co-ordination Act (EMCA), 1999 under item 10 and are therefore required to undergo Environmental Impact Assessment (EIA). According to Section 58 of the Environmental Management and Coordination Act (EMCA), the following requirements are clearly elaborated: Subsection (1) Not withstanding any approval, permit or license granted under this Act or any other law in force in Kenya, any person, being a proponent of a project, shall before financing, commencing, proceeding with, carrying out, executing or conducting or causing to be financed, commenced, proceeded with, carried out, executed or conducted by another person any undertaking specified in the Second Schedule to EMCA Act, submit EIA Project Report to the Authority, in the prescribed form, giving the prescribed information and which shall be accompanied by the prescribed fee. Subsection (2) The proponent of a project shall undertake or cause to be undertaken at his own expense an Environmental Impact Assessment Project Report and prepare a Project Report thereof where the Authority (NEMA), being satisfied, after studying the EIA Project Report under subsection (1), that the intended project may have or is likely to have or will have a significant impact on the environment, so directs. Subsection (7) Environmental Impact Assessment shall be conducted in accordance with the environmental impact assessment regulations, guidelines and procedures issued under the EMCA. Legal obligations relating to EIA which must cover all projects specified under the Second Schedule of EMCA, 1999 include compliance with: Environmental Management and Coordination Act, 1999, Part V, Section 42 (3)

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PANAFCON Ltd. The Minister may, by notice in the Gazette, issue general and specific orders, regulations or standards for the management of river banks, lake shores, wetlands or coastal zones and such orders, regulations or standards may include management, protection, or conservation measures of any area at risk of environmental degradation and shall provide for - the development of an overall environmental management plan for a lake, river, wetland or coastal area, taking into account the relevant sectoral interests; - contingency plans for the prevention and control of all deliberate and accidental discharge of pollutants into the sea, lakes or rivers; - plans for the protection of wetlands; - the management of biological resources. Environmental Management and Coordination Act, 1999, Part V, Section 50 The Authority shall, in consultation with the relevant lead prescribe measures necessary to ensure the conservation of biological diversity in Kenya and in this respect the Authority shall - Identify potential threats to biological diversity and devise measures to remove or arrest their effects; - Protect Indigenous property rights of local communities in respect of biological diversity. Environmental Management and Coordination Act, 1999, Part V, Section 51 The Authority shall, in consultation with the relevant lead agencies prescribe measures adequate to ensure the conservation of biological resources in-situ and in this regard shall issue guidelines for a) Land use methods that are compatible with conservation of biological diversity; Environmental Management and Coordination Act, 1999 section 72, 74,75, and 76 (deal with water pollution, water pollution prohibition and license to discharge effluent) Environmental Management and Coordination Act, 1999 section 91 and 94 (deals with the classification of wastes, handling and their management) Environmental Management and Coordination Act, 1999 section 107 (Standards for the control of noxious smell) Environmental Management and Coordination Act, 1999, Part XIII, Section 142 (1) Any Person who - Discharges any dangerous materials, substances, oil, oil mixtures into land, water, air or aquatic environment contrary to the provisions of the EMCA - Pollutes the environment contrary to the provisions of the EMCA - Discharges any pollutant into the environment contrary to the provisions of the EMCA Commits an offence and shall on conviction, be liable to a fine not exceeding five hundred thousand shillings

Compliance by Proponent The proponent has commissioned the carrying out of an Environmental Impact Assessment (EIA) Study. The EIA Study Report shall be submitted to NEMA for approval. The proponent undertakes to protect the environment during the implementation (Construction and Operation) of the project and also carry out annual Environmental Audits The proponent undertakes to minimize the cutting down of the existing vegetation and restore any disturbed environment where the LPG Plant is to be constructed by planting indigenous plants and enhance conservation of the project area biodiversity. Environmental Management and Coordination (Water Quality) Regulation These are described in Legal Notice No. 120 of the Kenya Gazette Supplement No. 68 of September 2006.

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PANAFCON Ltd. These Regulations apply to drinking water, water used for agricultural purposes, water used for recreational purposes, water used for fisheries and wildlife and water used for any other purposes. This includes the following: Protection of sources of water for domestic use; Water for industrial use and effluent discharge; Water for agricultural use. These Regulations outline: Quality standards for sources of domestic water; Quality monitoring for sources of domestic water; Standards for effluent discharge into the environment; Monitoring guide for discharge into the environment; Standards for effluent discharge into public sewers; Monitoring for discharge of treated effluent into the environment. Compliance by Proponent The proponent undertakes to put in place solid and liquid waste management mechanism to ensure they do not impact the surface or groundwater. These shall include provision of adequate solid waste collection bins within the construction sites, the posting of polite notices to staff not to litter the Construction site area but use the provided waste bins for disposal, the provision of concrete containments for any installed machinery to collect any oils/fuels incase of spillage/leakage. The Proponent undertakes to provide a well structured programme for solid waste collection and disposal. The proponent undertakes to provide appropriate containments at the construction sites to avoid any spillage or leakage of oils and chemicals to the ground during construction and operation of the LPG Plant. Environmental Management and Coordination (Waste Management) Regulations These are described in Legal Notice No. 121 of the Kenya Gazette Supplement No. 69 of September 2006. These Regulations apply to all categories of waste as provided in the Regulations. These include: Industrial wastes; Hazardous and toxic wastes; Pesticides and toxic substances; Biomedical wastes; Radio-active substances. These Regulations outline requirements for handling, storing, transporting, and treatment/disposal of all waste categories as provided therein. Compliance by Proponent The proponent undertakes to comply by collecting all wastes (solid and liquid waste from construction site) and have them put in solid waste bins and sewage treatment plant respectively for collection and disposal away from the project area and the treatment of any sanitary waste. The proponent undertakes to collect all generated solid waste and material remnants from the construction site of the project and have them appropriately handled, transported and disposed of away from the project area. The proponent undertakes to provide appropriate solid waste receptacles and engage a solid waste handling firm to collect the waste regularly for appropriate disposal away from the project area.

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PANAFCON Ltd. Environmental Management and Coordination (Controlled Substances) Regulations, 2007 The Controlled Substances Regulations defines controlled substances and provides guidance on how to handle them. This regulation mandates NEMA to monitor the activities of persons handling controlled substances, in consultation with relevant line ministries and departments, to ensure compliance with the set requirements. Under these regulations, NEMA will be publishing a list of controlled substances and the quantities of all controlled substances imported or exported within a particular. The list will also indicate all persons holding licenses to import or export controlled substances, with their annual permitted allocations. The regulations stipulate that controlled substances must be clearly labelled with among other words, Controlled Substance-Not ozone friendly) to indicate that the substance or product is harmful to the ozone layer. Advertisement of such substances must carry the words, Warning: Contains chemical materials or substances that deplete or have the potential to deplete the ozone layer. Producers and/or importers of controlled substances are required to include a material safety data sheet. Persons are prohibited from storing, distributing, transporting or otherwise handling a controlled substance unless the controlled substance is accompanied by a material safety data sheet. Manufacturers, exporters or importers of controlled substances must be licensed by NEMA. Further, any person wishing to dispose of a controlled substance must be authorized by NEMA. The licensee should ensure that the controlled substance is disposed of in an environmentally sound manner. These regulations also apply to any person transporting such controlled substances through Kenya. Such a person is required to obtain a Prior Informed Consent (PIC) permit from NEMA. Compliance by Proponent The project does not constitute the use or storage of controlled substances and hence does not trigger this regulation Environmental Management and Coordination, (Conservation of Biological Diversity & Resources, Access to Genetic Resources, Benefit Sharing) Regulation These regulations are described in Legal Notice No. 160 of the Kenya Gazette Supplement No. 84 of December 2006. These Regulations apply to conservation of biodiversity which includes Conservation of threatened species, Inventory and monitoring of BD and protection of environmentally significant areas, access to genetic resources, benefit sharing and offences and penalties. Additionally, these links provide for the local enforcement of the international Convention on Biological Diversity (CBD). Compliance by Proponent The proponent undertakes to safeguard against the destruction of endemic plant species at the LPG Plant through appropriate design of the facilities where minimal disturbance of plants and habitats. Out of the existing seventeen trees at the project site, less than five trees shall be cut down as they stand on the area where facilities will be put up. The proponent undertakes to rehabilitate and enhance the biological diversity at the site through planting of indigenous vegetation.

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PANAFCON Ltd. Environmental Management and Coordination Draft Air Quality Regulations, 2008. The objective is to provide for prevention, control and abatement of air pollution to ensure clean and healthy ambient air. It provides for the establishment of emission standards for various sources such as mobile sources (e.g. motor vehicles) and stationary sources (e.g. industries) as outlined in the Environmental Management and Coordination Act, 1999. It also covers any other air pollution source as may be determined by the Minister in consultation with the Authority. Emission limits for various areas and facilities have been set. The regulations provide the procedure for designating controlled areas, and the objectives of air quality management plans for these areas. Under Part II Section 5 (1) No person shall act in a way that directly or indirectly causes, or may cause immediate or subsequent air pollution. (2) No person shall emit any liquid, solid or gaseous substance or deposit any such substance in a manner that exceeds the levels set out in the Second Schedule (Ambient Air Quality Tolerance Limits). Under Part II Section 8. No person shall cause or allow particulate emissions into the atmosphere from any source not listed under the Sixth Schedule of these Regulations in excess of those stipulated under the Seventh Schedule. Under Part V Section 18 (3) Any facility not listed under the sixth Schedule which is found to be in contravention of the Regulation 18(2) for more than 3 times within a period of sixth months shall be required to apply for an emission licence. Under Part V Section 18 (4) No person shall cause or allow the emission of visible air pollutants (particulate matter or smoke) from a stationary source that exceeds the limits set out under the Seventh Schedule. Under Part V Section 26. No person, operator or owner of any facility shall cause or allow fugitive emissions to cause the ambient air quality at its property boundary to exceed the limits prescribed under the Second Schedule. Under Part VI Section 31. (1) No person shall cause or allow the emission of visible air pollutants (particulate matter or smoke) from a stationary vehicle that exceeds the limits set out under the KS 1515. Under Part VI Section 31. (2) Every operator or owner of mobile emission source including road, rail, air, marine and inland water transport and conveyance equipment, shall control emission of priority pollutants as set out in the First Schedule. Under Part VI Section 32. (1) The Authority (NEMA) in consultation with the relevant lead agencies may require at any time inspection of a vehicle releasing visible exhaust emissions. Under Part VII Section 35. (1) The occupier or operator shall ensure that exposure of indoor air pollutants does not exceed the exposure limits stipulated under the Legal Notice No. 60 of 2007 Factories and Other Places of Work (Hazardous substances) Rules as indicated under the Third Schedule of these regulations. Under Part VII Section 38. No person operating construction equipment or handling construction material shall allow emission of particulate matter above the limits provided for in the Second Schedule.

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PANAFCON Ltd. Under Part VII Section 39. No person shall cause or allow emission of particulate matter during the demolition of structures, buildings, or parts of buildings above the limits set out under the Second Schedule. Under Part VII Section 40. No person shall cause or allow stockpiling or other storage of material in a manner likely to cause ambient air quality levels to be exceeded. Under Part XII Section 68. The Authority may carry out monitoring of ambient air quality or request a relevant lead agency to do so on its behalf. Exemptions; The following operations (provided they are not used for disposal of refuse), are exempt from these regulations: Back-burning to control or suppress wildfires; Fire fighting rehearsals or drills conducted by the Fire Service Agencies; Traditional and cultural burning of savanna grasslands; Burning for purposes of public health protection; Controlling Emissions The emissions shall be controlled using specified equipment. These air pollution control systems are available locally and internationally from dealers. Cases of malfunctioning air pollution control systems should be Reported to NEMA within 24 hours for NEMA to warn the public. Corrective measures should be taken to NEMAs satisfaction within 14 days after the occurrence. The regulations define the methods of test for vehicular emissions and the inspection period for motor vehicles. Private cars will be inspected every two years, and the PSV and commercial vehicles will be inspected annually. The motor vehicle inspection Unit will identify private vehicular emission testing workshops. Compliance by Proponent The proponent undertakes to ensure that during construction of the facility dust levels will be kept at a minimum through appropriate intervention measures including regular sprinkling of water. The proponent undertakes to ensure that all the vehicles that will be used on this project are serviced at approved garages and inspected regularly to ensure that they are functioning well and do not contribute to deterioration of air quality. The proponent undertakes to ensure that all construction personnel are provided with appropriate air emission protective gear (nose masks). The proponent undertakes to ensure that all machinery and vehicles used during construction are well maintained to reduce smoke emission. Trucks and Tankers transporting LPG into and out of the facility shall be inspected for compliance with emission requirements. The proponent shall install Gas Detectors at the LPG Plant to monitor gas levels within the facility during operation to detect any released gases. 3.1.1 Environmental Management and Coordination (Noise and Excessive Vibration Pollution Control) Regulations, 2009 These regulations prohibit any person from making or causing to be made any loud, unreasonable, unnecessary or unusual noise which annoys, disturbs, injures or endangers the comfort, repose, health or safety of others and the environment.

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PANAFCON Ltd. Under Part II Section 3 (1) Except as otherwise provided in these Regulations, no person shall make or cause to be made any loud, unreasonable, unnecessary or unusual noise which annoys, disturbs, injures or endangers the comfort, repose, health and safety of others and the environment. Under Part II Section 5 No person shall make, continue or cause to made or continued any noise in excess of the noise levels set in the First Schedule to these Regulations, unless such noise is reasonably necessary to the preservation of life, health and safety or property. Exemptions Under Part II Section 7. These Regulations shall not apply to(a) the emission of noise for the purpose of alerting persons to the existence of an emergency; (b) the emission of noise in the performance of emergency response; (c) the emission of noise in connection with the protection of the health and safety of residents or their property during emergency conditions; (d) warning devices necessary for the protection of public safety, such as police, fire and ambulance sirens, and train horns; or (e) Parades and national celebrations. Under Part III Section 11 (1) Any person wishing to(a) operate or repair any machinery, motor vehicle, construction equipment or other equipment, pump, fan, air-conditioning apparatus or similar mechanical device; or (b) engage in any commercial or industrial activity, which is likely to emit noise or excessive vibrations shall carry out the activity or activities within the relevant levels prescribed in the First Schedule to these Regulations. Under Part III Section 12 (1) No person shall operate a motor vehicle that(a) produces any loud and unusual sound; and (b) exceeds 84 dB(A) . (2) No person shall at any time sound the horn or other warning of a vehicle except when necessary to prevent an accident or an incident. Under Part III Section 13 (1) Except for the purposes specified, during night time hours, no person shall operate construction equipment (including but not limited to any pile driver, steam shovel, pneumatic hammer, derrick or steam or electric hoist) or perform any outside construction or repair work so as to emit noise in excess of the permissible levels as set out in the Second Schedule to these Regulations. Under Part III Section 15. Any person intending to carry out construction, demolition, mining or quarrying work shall, during the Environmental Impact Assessment studies(a) identify natural resources, land uses or activities which may be affected by noise or excessive vibrations from the construction, demolition, mining or quarrying; (b) determine the measures which are needed in the plans and specifications to minimize or eliminate adverse construction, demolition, mining or quarrying noise or vibration impacts; and (c) incorporate the needed abatement measures in the plans and specifications. Compliance by Proponent The proponent and contractor undertake to minimize the noise emission of from machines during the process of carrying out the construction and operation activities by incorporating appropriate mitigation measures. Where elevated noise levels are expected to occur, the proponent undertakes to carry

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PANAFCON Ltd. out the necessary noise level measurements to ensure that they fall within the prescribed limits. The proponent undertakes to carry out all construction activities during day light. 3.2 The Energy Act, 2002 The Energy Act, 2006 Part II Section 4 (1) States there is established a commission to be known as The Energy Regulatory Commission (ERC) Under Section 5. The objects and functions of the Commission shall be to(a) Regulate (ii) importation, exportation, transportation, refining, storage and sale of petroleum and petroleum products. Under Section 6. The Commission shall have all powers necessary or expedient for the performance of its functions under this Act and in particular, the Commission shall have power to(a) Issue, renew, modify, suspend or revoke licences and permits for all undertakings and activities in the energy sector; (c) Formulate, enforce and review environmental, health, safety and quality standards for the energy sector, in coordination with other statutory authorities; Under Section 80 (1) A person shall not conduct a business of importation, refining, exportation, wholesale retail, storage or transportation of petroleum, except under and in accordance with the terms and conditions of a valid licence. Under Section 90 (1) Any person intending to construct a pipeline, refinery, bulk storage facility or retail dispensing site shall, before commencing such construction, apply in writing to the Commission for a permit to do so; Under Section 91 (1) The Commission shall, before issuing a permit under Section 90, take into account all relevant factors, including but not limited to(a) The relevant Government policies; (b) Compliance with the Environmental Management and Co-ordination Act , 1999 and in particular, the report of the Environmental (Impact Assessment and Audit) Regulations, 2003, the Physical Planning Act, 1996, the Local Government Act and any other relevant legislation; Under Section 95 (1) Petroleum imported or produced locally for use in Kenya, petroleum products, equipment, facilities and installations shall conform to the relevant Kenya Standard: Provided that where no such standard exists, the relevant international standards approved by the Kenya Bureau of Standards shall apply. Under Section 98 (1) A person engaged in petroleum business shall comply with the relevant Kenya Standard and in the absence of such standard, any other standard approved by the Commission from time to time on Environment, health and safety in consultation with the relevant authorities and in conformity with the relevant statutes touching on environment, health and safety standards. (2) In the event of a fire , explosion, oil spill, injury or fatality occurring in the course of operating a petroleum facility or transportation of petroleum, either by accident or through negligence, the operator or person transporting petroleum shall forthwith clean up the

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PANAFCON Ltd. damaged or polluted environment, at his own expense, to the satisfaction of the Commission and other relevant authorities. Under Section 100 (1) A person who(b) Being the owner of a pipeline, refinery or bulk liquefied petroleum gas or natural gas facility, service station, filling station or depot or transporter of petroleum, fails to institute appropriate environmental, health and safety control measures; (c) Being the owner or operator of a refinery, pipeline, bulk liquefied petroleum gas or natural gas facility, contravenes the provisions of this Act or any regulations made thereunder relating to the construction or operation of a pipeline, refinery or bulk liquefied petroleum gas or natural gas facility or regulations thereof; Commits an offence and shall, on conviction, be liable to a fine not exceeding two million shillings, or maximum term of imprisonment of two years, or to both. (2) In any case where the person who contravened the provisions of subsection (1) is licensed under this Act, the Commission may suspend or revoke his licence. Compliance by Proponent The proponent has the necessary valid licences to operate a petroleum facility. The proponent has complied with the Environmental Management and Co-ordination Act (EMCA) and other Authorities by commissioning an Environmental Impact Assessment Study for the proposed Bulk LPG Storage and Filling Plant for EIA Licence before commencing with any construction work and also submitting the necessary design drawings for approval. The proponent undertakes to ensure that the intended LPG Plant installation conforms with the necessary Kenya Standards and where such standards are absent relevant international standards approved by the Kenya Bureau of Standards shall apply. 3.2.1 The Liquefied Petroleum Gas (LPG) Regulations, 2008 Under Section 4 (1) A person shall not conduct business of importation, storage, exportation, wholesale transportation, filling or retail in LPG except under and in accordance with the terms and conditions Under Section 6 (1) Any accident involving LPG or the transportation of LPG which causes injury to employees, property damage, or injury to other persons or an accidental release of LPG and any fire in which LPG is directly or indirectly involved shall be reported by a licensee in writing to the Commission as soon as possible but not later than 48 hours. Under Section 8 (1) A person shall not conduct business of importation of LPG into Kenya except under and in accordance with terms and conditions of a valid licence issued by the Commission. Under Section 9 (1) A person shall not conduct a business of bulk LPG storage except under and in accordance with the terms and conditions issued by the Commission. (3) A licensee shall not conduct a business of bulk LPG storage in any bulding constructed with inflammable material. (4) A licensee shall not offer hospitality, release or otherwise part with bulk LPG to a person unless that person has a valid bulk LPG licence issued by the Commission under these Regulations (5) A person desirous of obtaining a licence under this Regulation shall make an application to this Commission and such an application shall be accompanied by-

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PANAFCON Ltd. (a) an environmental impact assessment (EIA) licence issued in accordance with the Environmental Management and Coordination Act, 1999 for a new facility or an Environmental Audit for an existing facilty; (b) A Certificate of Compliance issued in accordance with the Physical Planning Act, 1996; (c) Copy of approved drawings in accordance with the Local Government Act, Cap 265 with specifications and plans in duplicate indicating(i) the facility to be licensed, giving particulars of the materials and construction; (ii) the position of the facility in relation to adjoining property including distances from neighbouring buildings; (iii) in the case of an installation, the position and capacity of all tanks, storage sheds and filling stations, the position of all buildings, structures or other works within the installation, and the manner in which the LPG is to be stored; (iv) all lighting arrangements including the position of electric cables, switches and fuse boxes, drainage system, water connections, fire hydrants and fire fighting appliances. (v) a clearance certificate from the Chief Fire Officer in accordance with the Local Government Act, Cap 265. (d) A copy of certificate of adherence to KS 1938, on the Handling, Storage and Distribution of Liquefied Petroleum Gas in Domestic, Commercial and Industrial Installations. Under Section 10 (1) A person shall not conduct a business of filling of LPG into cylinders except under and in accordance with the terms and conditions of a valid licence issued by the Commission. (2) A person shall not fill the standard capacity cylinders that do not conform to KS 201 2007 on Unified Valves for Liquefied Petroleum Gas Cylinders for Domestic Use Specification (Third Edition) and KS 06-896 on the Specification for Periodic Inspection, Testing and Maintenance of Transportable Gas Containers (excluding dissolved acetylene containers). Under Section 11 (1) A person shall not conduct a business of wholesale trade in LPG in cylinders except under and in accordance with the terms and conditions of a valid licence issued by the Commission. Under Section 12 (1) A person shall not conduct a business of retail in LPG Cylinders except under in accordance with the terms and conditions of a valid licence issued by the Commission. (2) A person licensed to conduct a business of retail in LPG in Cylinders shall not purchase LPG in Cylinders from an unlicensed person. (3) Every retail outlet selling LPG in cylinders shall have a properly calibrated weighing instrument in accordance with the Weights and Measures Act (Cap 513) for verification of the net contents of LPG cylinders. Under Section 13 (1) A person shall not conduct a business of Transportation of LPG by road, except under and in accordance with the terms and conditions of a valid licence issued by the Commission. (2) The provisions of paragraph (1) above shall not apply to LPG in a private vehicle carried by a consumer in standard capacity cylinders not exceeding an aggregate quantity of forty cylinders. (4) No person shall drive a vehicle, or engage a driver, for the purpose of transporting LPG unless such a driver(a) has a valid driving licence; (b) is certified in accordance with the Energy Act;

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PANAFCON Ltd. (c) not withstanding the provisions of 4(b) above, has attended a prescribed basic training course(s) providing appropriate knowledge of LPG and petroleum products and in defensive driving; (d) In the case of bulk LPG Transportation vehicles has not driven such class of vehicle for a period of four years or in the case of packaged LPG cylinders has not driven such class of vehicle for a period of two years; (e) is of optimal health and fitness; Under Section 15 (1) The standard capacities of cylinders for filling with LPG shall be one (1), three (3), six (6) and thirteen (13) kilogrammes and such cylinders shall be fitted with unified valves. (2) No LPG cylinders shall be manufactured in, or imported into Kenya other than those of capacities, and fitted with unified valves, specified in paragraph (1). Compliance by Proponent The proponent has the necessary valid licences to operate a petroleum facility. The proponent undertakes to put in place measures reporting any accidents involving LPG within the shortest time period and not later than 48 hours. The proponent is ensuring compliance by commissioning this EIA Study of the proposed LPG Plant for submission to NEMA. The proposed LPG Plant shall fill standard capacity cylinders that conform to KS 201 2007 on Unified Valves for Liquefied Petroleum Gas Cylinders for Domestic Use Specification (Third Edition) and KS 06-896. The drivers transporting LPG shall be qualified and meet the minimum requirements. The proponent undertakes to only fill recommended cylinder capacities fitted with unified valves. 3.3 The Water Act, 2002 Water Act, 2002 Part III, Section 23 says that the authority shall not approve any community project unless the proposed project is approved by the person owning or occupying at least two thirds of the particular area concerned in the project. Water Act, 2002 Part III, Section 23 requires that all beneficiaries of a community project that is funded in full or in part by using government fund may be required by the Minister to pay a rate for the benefit Water Act, 2002 Part III, Section 25 (a) indicates that a permit shall be required for any use of water from a Water Source. Water Act, 2002 Part III, Section 27 says that a person who not being a holder of a permit constructs or employs any works for a purpose for which a permit is required shall be guilty of an offence. Water Act, 2002 Part IV, Section 73 allows for a person with a license to supply water and make regulations for protecting the source against degradation. Water Act, 2002 Part IV, Section 75 says that not being a holder of a permit constructs or employs any works for a purpose for which a permit is required shall be guilty of an offence. Water Act, 2002 Part VI, Section 94 says that not person shall, without authority under the Act-

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PANAFCON Ltd. Willfully obstruct, interfere with, divert or abstract water from any watercourse or any water resource, or negligently allow any such obstruction, interference, diversion or abstraction; or Throw or convey, or cause or permit to be thrown or conveyed, any rubbish, dirt, refuse, effluent, trade waste or other offensive or unwholesome matter or thing into or near to any water resource in such manner as to cause, or be likely to cause, pollution of the water resource. A person who contravenes this section shall be guilty of an offence Compliance by Proponent The proponent undertakes to provide appropriate containments for any chemicals or oil wastes generated at the construction site. The proponent undertakes to ensure that appropriate containers are provided to the field construction teams to store any recovered oils or chemicals for appropriate transportation and disposal away from the project site following the NEMA and the Local Authority guidelines. The proponent undertakes to put in place solid waste management mechanism to ensure they do not impact the groundwater. These shall include the following: Provision of adequate solid waste collection bins within the construction sites. The posting of polite notices to staff not to litter the Construction site area but use the provided waste bins for disposal. The provision of concrete containments for any installed machinery to collect any oils/fuels incase spillage/leakage. The Proponent undertakes to provide a well structured programme for solid waste collection and disposal. 3.4 The Physical Planning Act, Cap 286 Part V Control of Development. Section 29 provides that subject to the provisions of the Act, each Local Authority shall have the power: to prohibit or control the use and development of land and buildings in the interests of proper and orderly development of its area; to control or prohibit the subdivision the subdivision of land or existing plots into smaller areas to consider and approve all development applications and grant all development permissions to ensure the proper execution and implementation of approved physical development plans. to formulate by-laws to regulate zoning in respect of use and density of development; and to Park and maintain all the land planned for open spaces, parks, urban forests and green belts in accordance with the approved physical development plan. Section 30 (1) No person shall carry out development within the area of a Local Authority without a development permission granted by the local authority. (2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable to prosecution. Section 31 Any person requiring a development permission shall make an application in the form prescribed in the Fourth Schedule to the Clerk of the local authority responsible of the area in which the land concerned is situated.

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PANAFCON Ltd. Section 32 (2) provides that a proponent of development forwards an application to the Local Authority for approval of any development Section 33 deals with the issuance of Approvals or denial of Approvals with reasons Section 36 provides that if in connection with a development application a local authority is of the opinion that proposals the development activity will have injurious impact on the environment, the applicant shall be required to submit an Environmental Impact Assessment Study Report. Section 48 deals with consequences of providing false statement when making applications.

Subsidiary Legislation
The Subsidiary Legislation The Physical Planning (Building and Development) (Control) Rules, 1998 was Revised in 2009. Under Part II Section 3 (1) Any person intending to erect a new building or re-erect an existing building shall comply with the provisions of the existing building code, local authority by-laws and the physical planning requirements and such conditions as may be imposed by the approving authority regarding the siting, size, height, shape and appearance of such building in order to safeguard, maintain or impose the dignity or preserve the amenity and general appearance of street, square or public place or have effect on the complemented appearance of such street, square or public place. (2) All new buildings and all additions to existing buildings particularly out-buildings, latrines and all drains and sanitary apparatus of any kind pertaining thereto shall be situated on such plot, sub-plot or other piece of land on which may be built, as to ensure the best practicable hygienic and sanitary conditions and avoid as much as possible any nuisance or annoyance from the position and appearance of such latrines or buildings or from noise caused by the occupants of such out-buildings or from any other cause whatsoever. Under Section 6 (1) No building shall be erected on any plot or sub-plot which has no proper and sufficient frontage to a street, such street not being a sanitary lane or passage. Under Section 8 Each local authority in consultation with the Director of Physical Planning determine the plot coverage and plot ratios depending on the zoning of the urban area and the level of urban services available. Under Part III Section 35 No person shall erect or authorize to be erected any building except in accordance with the plans submitted to and approved by the local authority in consultation with the Director of Physical Planning. Compliance by Proponent The proponent has initiated an Environmental Impact Assessment Study for the preparation of a an EIA Study Report to be submitted to NEMA for approval and Licensing. The proponent has submitted designs and obtained approval from the local authority in consultation with the Physical Planning Department. Refer to Annex 7. 3.5 The Local Government Act, Cap 265 Section 147 Every local Authority shall have power to: (d) Control the cutting of timber and the destruction of trees and shrubs, to prohibit the wasteful destruction of trees and shrubs, and to require the planting of trees.
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Section 163A (1) A local authority may on receipt of an application under this Act grant a business permit to allow the conduct of a business or trade, including a profession or occupation within its area. Section 164 (1) A local Authority shall have power to summon any applicant for, or any objector to, the grant of a license to give evidence or to produce books or documents at any sitting of the Local Authority or a committee thereof held for the purpose of hearing the application for such license, and any such person refusing or omitting without sufficient evidence or to produce books or documents in his possession or under his control as required by such summons shall be guilty of an offence Section 165 (1) A Local Authority may refuse to grant or renew any licence which it is empowered under this Act or any other written law to grant on any such grounds as it may, by by-law, specify and in addition upon any of the following grounds whether specified in such by-laws or not: With respect to any licence whether relating to a trade, business or occupation, or to premises or otherwise: That the premises in or at which the applicant intends to carry on his trade, business or occupation do not conform to the requirements of any by-laws in force in the area of such local authority, whether made under this Act or any other written law. That the granting of such licence or the renewal thereof, as the case may be, would be contrary to the public interest Section 166 Every Municipal Council, County Council or Town Council may, subject to any other written law relating thereto, prohibit and control the development and use of land and buildings in the interest of the proper and orderly development of its area. Section 178 (1) A Municipal Council, Town Council, or an Urban or Area Council may undertake the supply of, and establish, acquire and maintain works for the supply of water within its area, and with the consent of any other local authority within the area of that local authority. Section 264 (1) All charges due for sewerage, sanitary and refuse removal shall be recoverable jointly and severally from the owner and occupier of the premises in respect of which the services were rendered. Compliance by Proponent The proponent has designed the proposed LPG Filling Plant and obtained approval from Kisumu Town Council. Refer to Annex 7 The proponent has initiated an Environmental Impact Assessment Study for submission to NEMA for approval. The proponent undertakes to comply with all Local Authority requirements and by-laws. 3.6 The Public Health Act, Cap 242 Section 115. No person shall cause a nuisance or shall suffer to exist on any land or premises owned or occupied by him or of which he is in charge any nuisance or other condition liable to be injurious or dangerous to health. Public Health Act, Cap 242 part IX on Sanitation and Housing, section 118- b, c, d, e, h, I, j, l provides what constitutes nuisance. This includes: Any dwelling or premises or part thereof which is or are of such construction or is such a state or so situation or so dirty or so verminous as to be dangerous to health

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PANAFCON Ltd. Any street, road or any part thereof, any stream, pool, ditch, gutter, watercourse, sink, water tank, cistern, water closet, water tank urinal, sewage treatment plant waste pipe, drain, sewer, garbage receptacle, dust bin, refuse pit is in such way or so situated or constructed to be offensive or to be injurious or dangerous to health Any noxious matter or waste water, flowing or discharged from any premises Any accumulation or deposit of refuse Any accumulation of stones, timber or other material Any dwelling which or premises which is so overcrowded, among other provisions

Section 116. It shall be the duty of every local authority to take all lawful, necessary and reasonably practicable measures for maintaining its district at all times in clean and sanitary condition, and for preventing the occurrence therein of, or for remedying or causing to be remedied, any nuisance or condition liable to be injurious or dangerous to health, and to take proceedings at law against any person causing or responsible for the continuance of any such nuisance or condition. Section 118. (1) The following shall be deemed to be nuisances liable to be dealt with in the manner provided in this Part (e) any noxious matter, or waste water, flowing or discharged from any premises, wherever situated, into any public street, or into the gutter or side channel of any street, or into any nullah or watercourse, irrigation channel or bed thereof not approved for the reception of such discharge; (h) any accumulation or deposit of refuse, offal, manure or other matter whatsoever which is offensive or which is injurious or dangerous to health; (l) any public or other building which is so situated, constructed, used or kept as to be unsafe, or injurious or dangerous to health; (o) any factory or trade premises causing or giving rise to smells or effluvia which are offensive or which are injurious or dangerous to health; Compliance by Proponent The proponent undertakes to comply by collecting all wastes (solid waste from construction site) and have them put in solid waste bins for collection and disposal away from the project area. The proponent undertakes to engage an approved waste collection agency for the collection and disposal of all waste from the site during operation. 3.7 The Occupational Safety and Health Act, 2007 This is an Act of Parliament to provide for the safety, health and welfare of all workers and all persons lawfully present at workplaces, to provide for the establishment of the National Council for Occupational Safety and Health and for connected purposes. It applies to all workplaces where any person is at work, whether temporarily or permanently. The purpose of this Act is to: Secure the safety, health and welfare of persons at work; Protect persons other than persons at work against safety and health arising out of, or in connection with the activities of persons at work.

The Occupational Safety and Health Act, 2007 (OSHA 2007) revokes the Factories and Other Places of Work Cap.514. However sections of the Factories and Other Places of Work that are not inconsistence with those of OSHA 2007 remain applicable.

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PANAFCON Ltd. The scope of OSHA, 2007 has been, expanded to cover all workplaces including offices, schools, academic institutions and plantations. It establishes codes of practices to be approved and issued by the Directorate of Occupational Safety and Health Services (DOHSS) for practical guidance of the various provisions of the Act. Other parameters within the Act include: Duties of employers, owners or occupiers of workplace; Establishment of safety and health committees; Annual safety and health audit of workplaces; Safety and Health obligations for persons who may come to premises for work and are not employees of that particular workplace; Project Reporting of any accident, dangerous occurrence or occupational poisoning caused in the workplace to the area Occupational Health and Safety Office. These incidents should be entered in the General Register. In case of a fatal accident, information to the area Safety and Health Office should be within 24 hrs and a written notice to the same within 7 days; The duties of manufactures, designers, importers and suppliers to ensure that all articles and substances for use at workplace are safe and will not cause injury to health and the environment; Duties of self employed persons; Duties of employed persons; Prohibition of interference or misuse any appliance, convenience or any other facility provided to secure Safety, Health and Welfare at work by any person (occupier, self employed person or employed); The administration of the Act is the responsibility of a Director and other appointed and gazetted officials (Occupational Health and Safety Officers); Machinery safety to include: - Safe use of machinery, plant and equipment; - Prime makers and transmission machines; - The maintenance, construction of fencing safeguards; - The statutory requirements of various machines, plants and equipment (hoists and lifts, chains and ropes, cranes, steam receivers and containers, air receivers, cylinders for compressed liquefied and dissolve gases and refrigeration plants). Section 14. (1) Says every employee shall report to the immediate supervisor any situation which the employee has reasonable grounds to believe presents an imminent or serious danger to the safety or health of that employee or of other employee in the same premises, and until the occupier has taken remedial action, if necessary, the occupier shall not require the employee to return to a work place where there is continuing imminent or serious danger to safety or health. Section 44. (1) Indicates that before any person occupies or uses any premises as a workplace, he shall apply for the registration of the premises by sending to the Director a written notice containing the particulars set out in the Fourth Schedule. (2) Upon receipt of the notice referred to in subsection (1), the Director shall take such steps as may be necessary to satisfy himself that the premises are suitable for use as a workplace of the nature stated in the notice, and upon being so satisfied, shall cause the premises to be registered and shall issue to the applicant, upon payment of a prescribed fee, a certificate of registration in the form set out in the Fifth Schedule; Section 55. All plant, machinery and equipment whether fixed or mobile for use either at the workplace or as a workplace, shall only be used for work which they are designed for and be operated by a competent person.

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PANAFCON Ltd. Section 70. (1) Every cylinder for compressed, liquefied and dissolved gases, and its fittings, shall be(a) so designed as to be suitable for the particular circumstances of their use; and (b) of sufficient strength to sustain the internal pressures to which they will normally be subjected. (2) Every cylinder for compressed, liquefied and dissolved gases shall conform to a standard specification prescribed under the Standards Act or where a standard is not prescribed, a standard specification approved by the Director and the Kenya Bureau of Standards for purposes of this Act and shall be of good construction, sound material, adequate strength and free from patent defect. (3) Every cylinder, when constructed or sold, shall be covered by the manufacturer's test certificate showing compliance with the safety and health standards specifications prescribed under section 4, and the certificate shall be obtainable, during the whole life of the cylinder, from the owner of the cylinder. (4) Every cylinder owner shall keep a cylinder maintenance register in which shall be noted, under the corresponding dates, all tests, internal and external examination, cleanings and repairs undertaken on the cylinder, and the register shall be available for inspection by an occupational safety and health officer at all times. (5) It shall be the duty of a cylinder owner to ensure that all cylinders belonging to him are examined and tested and the results of such examinations and tests are entered in the cylinder maintenance register by a person approved by the Director by certificate in writing (a) before being placed in service for the first time; or (b) before being placed in service after repairs other than changing the neck ring which carried the cap, re-tapping the neck or changing the foot-ring and; (6) The test that a cylinder other than an acetylene cylinder shall undergo to comply with the provisions of subsection (5) shall comprise (a) a hydraulic pressure test which shall exceed the maximum permissible working pressure; and (b) an internal and external examination in the accordance with the requirements of the standard specification referred to in subsection (2) of this section. (7) The following particulars shall be clearly and boldly marked on every cylinder(a) owner's name; (b) registered number as shown in maintenance register; (c) clear indication of the gas to be charged; (d) date of type of test undertaken; (e) country and year of manufacture; (f) permissible maximum charging pressure; and (g) standard specification used. (8) Every cylinder for compressed, liquefied and dissolved gases shall be clearly marked for the purpose of identification of their contents in a colour conforming to a standard specification of cylinder colour markings. (10) In addition to the requirements of subsection (7), every cylinder for - (a) liquefied gases shall be clearly and boldly marked with the permissible maximum weight of the charge of gas for which the cylinder is designed; (b) the compressed gases shall be clearly and boldly marked with the permissible maximum weight of the charge of gas for which the cylinder is designed; and (c) the compressed gases shall be clearly and boldly marked with the cubic capacity. (11) Before being charged for the purposes of subsection (10), every cylinder shall (a) be carefully examined at the charging station to ensure that it complies with the provisions of this section; (12) Every cylinder for liquefied gases with a critical temperature exceeding the usual ambient temperature shall not be completely filled in order to prevent the generation of

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PANAFCON Ltd. dangerous pressure when used at temperatures exceeding this critical temperature, and, cylinders for liquefied gases shall be weighted during charging. Section 76. (1) Machinery, equipment, personal protective equipment, appliances and hand tools used in all workplaces shall comply with the prescribed safety and health standards and be appropriately installed, maintained and safe guarded. (2) Every employer shall take necessary steps to ensure that workstations, equipment and work tasks are adapted to fit the employee and the employee's ability including protection against mental strain. (3) Every manufacturer, importer and supplier or an agent of a manufacturer, importer and supplier of the machinery and equipment referred to in paragraph (1) shall ensure that the equipment complies with the safety and health standards prescribed under this Act and shall provide adequate and appropriate information including hazard warning signs. Section 78. Says (1) All stocks of highly inflammable substances shall be kept either in a fire-resisting store or in a safe place outside any occupied building: Provided that no such store shall be so situated as to endanger the means of escape from the workplace or from any part thereof in the event of a fire occurring in the store. (2) Where highly flammable liquids are to be conveyed within a workplace they shall, where it is practicable so to do, be conveyed through a totally enclosed system incorporating pipe-lines and pumps or similar appliances but where conveyance of highly flammable liquids within a workplace through such a totally enclosed system is not practicable, they shall be conveyed in vessels which are so designed and constructed as to avoid so far as practicable, the risk of spilling. (3) Where in any process or operation any highly flammable liquid is liable to be spilled or to leak, all reasonably practicable steps shall be taken to ensure that any highly flammable liquid, which is spilt, or leaks shall be contained or immediately drained off to a suitable container or to a safe place, or otherwise treated to make it safe. (4) No means likely to ignite vapours from highly flammable liquids shall be present where a dangerous concentration of vapours from flammable liquids may reasonably be expected to be present. (5) No person shall smoke, light or carry matches, lighters or other flame producing articles, or smoking materials, in any place in which explosive, highly flammable or highly combustible substances, are manufactured, used, handled or stored and the occupier shall take all practicable steps to ensure compliance with the foregoing provisions of this subsection, including the display at or as near as possible to every place in which this subsection applies, a clear and bold notice indicating that smoking is prohibited in that place. Section 80. Says that (3) Where any part of a plant contains any explosive or highly flammable liquid, gas or vapour under pressure greater than atmospheric pressure, that part shall not be opened, except in accordance with the following provisions (a) before the fastening of any joint of any pipe connected with the part of the plant or the fastening of the cover of any opening into the part is loosened, any flow of the liquid, gas or vapour into the part or into any such pipe shall be effectively stopped by a stop valve or otherwise; and (b) before any such fastening is removed, all practicable steps shall be taken to reduce the pressure of the liquid, gas or vapour in the pipe or part of the plant to atmospheric pressure; and if any such fastening has been loosened or removed, no explosive or flammable liquid, gas or vapour shall be allowed to enter the pipe or part of the plant until the fastening has been secured or, as the case may be, securely replaced. (4) No plant, tank or vessel which contains or has contained any explosive or inflammable substance shall be subjected to any welding, brazing or soldering operation

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PANAFCON Ltd. or to any cutting operation which involves the application of heat, until all practicable steps have been taken to remove the substance and any fumes arising there from, or to render them non-explosive or non-inflammable; and, if any plant, tank or vessel has been subjected to any such operation, no explosive or inflammable substance shall be allowed to enter the plant, tank or vessel until the metal has cooled sufficiently to prevent any risk of igniting the substance. Section 81. (1) In every workplace or workroom there shall be (a) provided and maintained, and conspicuously displayed and free from any obstruction so as to be readily accessible, means for extinguishing fire, which shall be adequate and suitable having regard to the circumstances of each case; and (b) present, persons trained in the correct use of such means of extinguishing fire during all working hours. (2) Every workplace shall be provided with adequate means of escape, in case of fire, for the persons employed therein, having regard to the circumstances of each case. Section 82. Emphasizes that (1) Every occupier of a workplace shall design evacuation procedures to be used during any emergency and have the procedures tested at regular intervals. (2) Every occupier shall take immediate steps to stop any operation where there is an imminent and serious danger to safety and health and to evacuate persons employed as appropriate. (3) Every occupier shall be required to provide where necessary, measures to deal with emergencies and accidents including adequate first aid arrangements. (4) Every occupier shall take effective steps to ensure that all persons employed are familiar with the means of escape in case of fire, and with the routine to be followed in case of fire or other emergency. Section 101. Says that (1) Every employer shall provide and maintain for the use of employees in any workplace where employees are employed in any process involving exposure to wet or to any injurious or offensive substance, adequate, effective and suitable protective clothing and appliances, including, where necessary, suitable gloves, footwear, goggles and head coverings. Compliance by Proponent The proponent undertakes to ensure that the LPG storage facilities are tested and certified as serviceable The proponent and contractor undertake to minimize the emission of dust and production of noise during the process of carrying out the construction activities. The proponent undertakes to provide all workers with appropriate Personal Protective Equipment for all works associated with this project during construction and operation phases. Contractor shall make sure that machinery safety includes safe use of machinery, plant and equipment, maintenance and construction of fencing safeguards; Safety and Health obligations for persons who may come to premises for work and are not employees of that particular workplace; Project Reporting of any accident, dangerous occurrence or occupational poisoning caused in the workplace to the area Occupational Health and Safety Office. Properly marked and easily accessible evacuation passages shall be prepared. 3.8 Public Roads and Roads of Access Act Cap 399 This is an Act of Parliament that provide roads of public travel and access to public roads. Under Right of way over road of access

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PANAFCON Ltd. Section 13. (1) When the said road of access has been granted and constructed, the applicant (which term for the purposes of this section includes his successor in title) shall have leave at all times to use the said road of access. (5) The applicant shall at all times maintain the said road of access, and all works ancillary thereto, in a good and efficient state of repair to the satisfaction of the board, and, for the purpose of such maintenance, the applicant, his servants or his agents shall have leave to enter at all times upon the said road of access: Provided that as little damage or inconvenience as possible shall be caused by such entry to the owner or occupier of the land over which the said road of access passes, and that such right of entry shall be subject to such conditions as the board may impose in granting the order for constructing the said road of access. (7) The owner or occupier of any land through which the road of access passes shall have the right to use the road of access at all times: Compliance by Proponent The proponent will use existing public and private access roads to the site. There will be no need to construct access roads to the LPG Filling Plant site since it is well served by existing roads The proponent undertakes to maintain the access road to the LPG Plant to ensure unhindered access and ease of evacuation. 3.9 Building Code 1997. The Local Government has Building By-Laws that give the Municipalities or County Councils powers to approve building plans. Such plans are expected to provide for public buildings and factories among others. The By-Laws covers factory chimney shafts, stairs, lifts, rain water disposal, refuse disposal, ventilation of buildings, drainage, sanitary conveniences, sewers, septic and conservancy tanks, fire and means of escape in case of fire. Compliance with this Act in up scaling of power supply is necessary. Section 194 requires that where sewer exists, the occupants of the nearby premises shall apply to the local authority for a permit to connect to the sewer line and all the wastewater must be discharged into sewers. The proponent has put in an application for the proposed LPG Plant and obtained approval by Kisumu City Council. The proposed LPG Plant design complies with the building code elaborated in the Physical Planning and Local Authority Acts. 3.10 Land Registration Act, 2012. This is an Act of Parliament to make further and better provision for the registration of title to land, and for the regulation of dealings in land so registered, and for purposes connected therewith. The Act governs individual ownership of land in Kenya and confers upon an owner both fee-simple estate and leasehold interests to the land in question and applies to the land formerly held under customary law, namely native reserves and trust land, which has been registered. Under Section 26 (1) The certificate of Title issued by the Registrar upon registration, or to a purchaser of land upon a transfer or transmission by the proprietor shall be taken by
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PANAFCON Ltd. all courts as prima facie evidence as that the person named as proprietor of the land is the absolute and indefeasible owner, subject to the encumbrances, easements, restrictions and conditions contained or endorsed in the certificate, and the title of that proprietor shall not be subject to challenge. The proponent is the registered owner of the land on which the LPG Plant will be built and has a title to the land. Refer to Annex 7

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PANAFCON Ltd. 4 4.1 BASELINE INFORMATION Background Information Kisumu is the third largest city in Kenya. Kisumu County is located in Nyanza and constitutes 6 constituencies (Kisumu Town East, Kisumu Town West, Kisumu Rural, Nyando, Muhoroni and Nyakach). Kisumu East, Kisumu West and Nyando Districts were mapped to this county for the purposes of generating county estimates. Kisumu East District is one of the three Districts, of Kisumu County. The other two Districts are Kisumu West and Nyando Districts. Kisumu East District is bordered by Kisumu West District to the west, Nyando District to the east, Lake Victoria to the south and Districts of Vihiga County to the north. Kisumu East District lies between latitudes S 0 17 35 and N 0 01 11 and longitudes E34 36 24 and E35 01 15. The proposed LPG Filling Plant is located in Kisumu East District approximately 2km north west of Kisumu CBD along Old Airport Road and 800m off Busia Kisumu Road. The site is situated at latitude S 00 05 05.1 and longitude E 034 44 26.1 4.1.1 Settlement Patterns According to the 2009 Population and Housing Census, Kisumu East District was noted to be one of the 10 most populated districts in Kenya being ranked number 9 with a total population of 473,649 people. Out of these 235,676 were male and 237,973 were female. The Kisumu East District has six (6) constituencies and the population distribution in the six divisions is shown in Table 1 below Settlement patterns correspond with natural resource endowment although the variation in population density is not so big. Kisumu Town East Constituency exhibits a much larger population density when compared to the rest due to the much high inhabitants in Kisumu Town CBD which is the District and Provincial Headquarters of Kisumu East District and Nyanza Province respectively. Kisumu Town East and Kisumu Town West Constituencies have a population density of 1,811 and 972 persons per km respectively. The other constituencies have a population density of less than 500 persons per km. Table 1: Population Distribution by Division
Nr 1. 2. 3. 4. 5. 6. Division Kisumu Town East Kisumu Town West Kisumu Rural Nyando Muhoroni Nyakach Male.* 130,761 70,570 68,814 67,463 73,,807 63,345 Female.* 133,466 69,363 76,093 73,574 71,957 69,696 Total Population.* 264,227 139,933 144,907 141,037 145,764 133,041

Source: * 2009 census

4.1.2

Socio-Economic Environment The proposed LPG Plant is expected to generate employment opportunities during construction phase and when completed and commissioned it will increase economic activity in the area creating an important source for cooking gas in Kisumu Town and Nyanza, Western and Part of Rift Valley Province.

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The proposed LPG Plant will have the following positive effect in the region: The LPG Plant will stir economic development in the region The supply of LPG will be more reliable The cost of gas will become more competitive thereby becoming more affordable hence reducing reliance on wood fuel and charcoal Enhance environmental conservation Promote use of clean fuel resulting in healthier population 4.2 4.2.1 Physical Environment Topography Kisumu East District covers an area of approximately 920 km while Kisumu County covers an area of 2,086 km. The District rises gradually from an elevation of 1,140m above sea level near the shores of Lake Victoria where the site is located gradually rising northwards towards the Kisian Hills which runs in an east-west direction and stands at an elevation of about 1500m above sea level. The site area where the LPG Filling Plant will be located is generally flat with a slight gradient southwards towards Lake Victoria. The Kisumu CBD lies at an elevation of approx. 1146m above sea level.. 4.2.2 Climate Kisumu Town area falls within the Lake Fringe Sub-Climatic Region. The area enjoys an annual rainfall of between 1,015 and 1,250mm per annum. The area does not really experience a distinct dry season. Rainfall is experienced twice a year (March-June and October to November). The heaviest rainfall is usually experienced in April. Kisumu records a mean annual minimum temperature of between 15C - 20C and a mean annual maximum temperature of 25C - 30C. Kisumu has a mean humidity of 70. 4.2.3 Soils and Geology The site area is composed of well drained shallow to moderately deep dark reddish brown to brown friable, clay loam to clay soil, in some places with a humic top soil or gravelly over soft rock (Cambisols). Geologically Kisumu sits on the arm of tertiary lava which extends southwards overlooking the plains to the east, and Winam Gulf of the Lake Victoria to the west. The lava formation is attributed to the tectonomagnetic activities associated with the Kano Rift Valley System. As a result Kisumu is curved into a trough with the walls of the Nandi Escarpment to the east dropping on to the floor of the Kano flood plains and gently flowing to the Dunga wetlands at the shores of Lake Victoria. The area is also composed of Quaternary Sediments of Pleistocene Age consisting of thick deposits of lacustrine and fluviatile sediments. In some places Tertiary Volcanics of alkaline type including nephelinites, trachytes and alkali ryolites and their pyroclastic equivalents are present. Soil Laboratory Analysis To establish the baseline status of the soils at the site, two soil samples (S1 and S2) were collected for TPH analysis. The analysis result shows that the sample has got high levels of C5 - C6 Pentanes, however all other Hydrocarbons are within the permissible limits indicating that this site has slightly been impacted by petroleum products as shown in Table 2 below and Annex 4.

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PANAFCON Ltd. 4.2.3.1 Baseline Soil TPH Analysis Results Table 2: Soil TPH Analysis Results in mg/kg
PARAMETER METHOD
EPA 5035 1996

S1 RESULTS (mg/kg)

S2 RESULTS (mg/kg)

STANDARDS MAX LIMITS

Total Petroleum Hydrocarbons


-C6 C44 mg/kg

Not Detected (DL=0.01)

Not Detected (DL=0.01)

260

4.2.4

Baseline Air Quality The field measurements at Kenol Kobil Ltd-Kisumu Depot was undertaken to determine the following parameters: Butane, Propane and Hydrogen Sulphide in air as part of the EIA Study. Butane and Propane Aiir Quality Measurement Methods A known volume of air at the printing section was infused through a charcoal tube and the activated charcoal trapped the gas present in the air at the depot. The charcoal in the tube was then transferred into a container and dissolved in carbon disulphide. An aliquot of the absorbed sample was analysed using gas chromatography to determine the concentration of the butane and propane gases at the Depot. See Table 3 below.

4.2.4.1 Baseline Air Quality Results Table 3: Air Quality Exposure Levels
Parameter s measured Measured Result TLV(OEL) (Pollutant) mg/Nm3 Eastern Side Butane Nil 20 Propane Nil 20
152

Remarks

Not found Not found Not found Not found Not found Not found Not found Not found Not found
Not found Not found Not found

Butane Propane

Northern side Nil Nil

20 20 152

Butane Propane

Centre of the depot Nil 20 Nil 20


152

Butane Propane

Eastern side Nil Nil Southern side Nil Nil Nil

20 20 152 20 20 152

Butane Propane Hydrogen Sulphide

Not found Not found Not found

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PANAFCON Ltd. 4.2.5 Water Resources The proposed LPG Filling Plant site is located in a commercial /industrial area of Kisumu. The area is served by piped water from Kisumu Water and Sewerage Company Limited. There is piped water within the site. The upper aquifer of the groundwater may be relatively shallow (due to proximity to Lake Victoria - 350m away) but it is not exploited at the moment. 4.2.6 Forestry Generally the district is averagely covered with vegetation and the local people are taking tree planting at their farms and homesteads The site area where the proposed LPG Filling Plant is to be located is largely commercial/industrial and therefore designated forest cover does not exist. However scattered trees are present. 4.2.7 Flora The natural flora over the proposed site area and the environs has been largely affected by human activities. The trees commonly found include Jacaranda, Blue Gum and Pine . Nyanza Golf Club located a few metres south of the site is maintaining an expansive area with indigenous trees and other vegetation. 4.2.8 Fauna Due to human activities in the project area, suitable habitats for wildlife in the project area have been either destroyed or disturbed. Consequently, wildlife is poorly represented in the project area being an active urban area that is currently largely converted into commercial/industrial zones. 4.2.9 Diseases and Disease Vectors of the Project Area The most prevalent diseases are expected to be vector-borne disease including malaria and bilharzia and water-borne diseases such as cholera, typhoid and dysentery. During construction, special attention should be paid to the water provided to the workers. The Proponent and Contractor shall ensure that workers are well inducted in responsible social behavior to avoid the contraction of HIV AIDS as the prevalence rate was 12 percent in 1999 rising to 19.8 percent in 2000 and declining to 14 percent in 2001. 4.3 Infrastructure Facilities Generally speaking, the area is well served with proper communication network. This has strong implications on the socio-economic development activities. The area has electricity The proponent will use the already existing infrastructural facilities in the area to serve the proposed depot. The proposed project area is also well served with other infrastructure facilities like churches, schools and hospitals (health centres). 4.3.1 Telecommunication The area is well served with proper communication network including mobile network (Airtel, Safaricom and Orange). These have become the preferred mode of telecommunication due to the increased services that include mobile network services and other commercial services like money transfer, banking and bill payment services that are now becoming popular with most people.

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PANAFCON Ltd. 4.3.2 Roads The main road networks covering the area are made of tarmac and in fairly good maintenance condition. The main highway linking Mombasa and Nairobi to Busia and Uganda passes through Kisumu Town. The tarmac road also links Kisumu to other major towns like Kakamega, Kericho, Kisii, Eldoret and Bondo The good road network favourably provides links to important areas like schools, hospitals and residential areas. 4.3.3 Airports Kisumu is the third largest Town in Kenya after Nairobi and Mombasa. Kisumu has an Airport which was recently (2011) upgraded to an International Airport with a new Terminal Building and Extended runway being built. A Cargo Terminal is currently being constructed at the airport to allow for expanded trade in goods and other services. In the recent past, the airport has become increasingly busy as more people take to air transport as a quicker and more convenient way of travelling between Kisumu and other destinations like Nairobi and Mombasa. Kisumu is also rapidly growing thereby attracting more and more investors. 4.3.4 Water During the construction and operation of the depot, the contractor and the proponent will rely on piped water from Kisumu Water and Sanitation Company that has already been installed within the site.. However, the increasing population, commercial and industrial within the area is putting pressure on the available water resources. Groundwater has not been extensively exploited due to the presence of Lake Victoria which is a freshwater source. The shores of Lake Victoria is approximately 350m south of the site. 4.3.5 Fire Services and Police Response Teams Fire Services The nearest fire services is located about 700m away at the Kisumu Airport. Other fire fighting facilities are located about 1.8km to the west along Old Airport Road at the Kenya Pipeline Company Depot. The Kisumu Municipal Council fire fighting facilities are located 2km away at the Kisumu CBD. The decentralisation of this service by the Kisumu City Council is yet to be effectively done to cover all the vulnerable business premises and residential areas. It is therefore important that internal firefighting equipment is installed in all the vulnerable business/industrial projects that are developed. The proponent intends to install comprehensive gas detection and firefighting equipment and back this up with adequate water supply from 100M water storage tank at the site to ensure adequate preparedness incase of any fire outbreak within or without the facility. There will also be a 100m3/hr Diesel fire engine at the facility. Police Response Teams There is a police station located 500m north east away from the site. The Airport also has a police post located less than 500m away.

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PANAFCON Ltd. 4.4 Demographic Characteristics There is evidence of ethnic heterogeneity as the entire area has been inhabited by both locals and up country people. Being an urban centre that offers jobs, training institutions and transport connectivity (e.g. the Airport).Therefore, there is maximum mixing between ethnic groups in the project area. Majority of the people come to the area to enjoy both temporary and permanent jobs created by the businesses in the area. Others pass through the town to catch road and air transport to destinations like Nairobi and Mombasa. Further, due to the improving infrastructure the population is rapidly growing hence more and more people come to the area to the area to invest in real estate and also conduct commercial activities. 4.5 Land Tenure The land where the proposed LPG Filling Plant is to be located falls within the Urban Leasehold area of the Kisumu City Council. The land is fully owned by Kenya Oil Company Limited (see Title Attached) The land parcel registration number is L.R. No. 1148/1143 4.5.1 Special Conditions of the Land Title. The Land Title grants use of the land for storage and handling of Petroleum Products. In the Special Conditions of the Land Title under item No. 5 It is indicated that The Land Buildings shall only be used for the Storage Handling and Bulk Distribution of all kinds of Petroleum Products 4.6 Employment Opportunities and Provision of LPG Employment Opportunities The proposed LPG Filling Plant is envisaged to provide short-term and long-term employment opportunities. It will also provide direct employment to dozens of workmen during the construction phase for both skilled and semi skilled laborers. As echoed by the consulted persons and local administration, the proponent is expected to offer job opportunities to the local community so as to generate income for them. There will also be indirect employment from other support activities associated with both construction and operation of the facility. Provision of LPG and Revenue Generation Provision of Regular supply of LPG Cooking Gas in the Region; Contribution to Government Revenue through license fees, levies and taxes; Restoration of the project area biodiversity through appropriate rehabilitation and promotion of organized development of the site; Stabilization/lowering of cooking gas prices through regular supply Promotion of increased cooking gas uptake by local population resulting in reduced use of wood fuel and charcoal and therefore conservation of the environment Promotion of use of clean energy that will eventually contribute to reduction of air pollution arising from use of wood fuel and charcoal and Generation of income and revenue for the proponent.

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PANAFCON Ltd. 5 PUBLIC PARTICIPATION AND CONSULTATION As part of the EIA Study, relevant stakeholders and affected and interested persons were contacted at different times during the detailed field baseline data collection and interviewed in order to discuss the LPG Filling Plant project to seek their views and opinions on the proposed development. The stakeholders were identified and consulted with the objective of establishing the existing socio-economic conditions within the proposed project area of influence and the immediate surroundings. 5.1 Consulted Stakeholders Among the stakeholders who were interviewed and held discussion with the consultants included among others: The Neighbouring Business and Commercial The Provincial Administration including: - District Officer Winam Division - Chief Kisumu Town Location - Assistant Chief Bandani Sub-Location Physical Planner - Ministry of Lands Kisumu County Works Officer Kisumu County Kenya Industrial Estates (KIE) Kenya Marine and Fisheries Research Institute (KEMFRI) Ministry of Public Health Services (MOPHS) District Development Officer Kisumu National Cereals and Produce Board (NCPB) Kisumu Kenya Airports Authority Fisheries Department - Nyanza Kenya Civil Aviation Authority (KCAA) 5.2 Public Consultation Meeting A Public Consultation Meeting was convened on May 10, 2012 at the Nyanza Golf Club to discuss the project with stakeholders. The purpose of conducting the Public Consultation meeting was to elaborate the proposed LPG Plant project to all the stakeholders to seek their views and suggestions. The members at the meeting aired their views and asked questions regarding the proposed project. KenolKobil Officers who attended the meeting were able to respond to all the questions and clarify any issues regarding the proposed LPG Plant. Most of the questions revolved around safety of the plant. It was highlighted that the LPG Tanks will be mounded to enhance safety and KenolKobil will champion the formation of safety committee that will comprise of KenolKobil Staff and other Staff Members from the neighbouring Commercial/Industrial entities within the project area. Regular safety meetings and training will be carried out by KenolKobil.

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Plate 3: Public Consultation Meeting in Progress at the Nyanza Golf Club

Plate 4: KenolKobil Staff answering questions during the Meeting

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Plate 5: One of the Stakeholders contributing to the discussion at the Meeting

5.3

Public Meeting and Stakeholder Consultation Results Overall, 15 persons responded to the semi-structured interviews and neighbourhood questionnaires. All the local and provincial administrators and the communities consulted indicated support for the proposed LPG Filling Plant Project. 13 out of the 15 respondents indicated that the project should be allowed to continue taking into consideration the required appropriate safety measures. Two respondents (Total Kenya Limited and United Millers) indicated that the project should be stopped citing safety risk and lack of adequate space. Those who supported the project indicated that the project would bring development to the area, provide gas regularly and competitively and also generate employment opportunities. From the consultations with, the provincial administration, they would support the project. They however, stressed the need for consultations at all stages of implementation so as to address their concerns and expectations. Some of the social issues brought out by the respondents included: The project is a development that will result in job creation and spur growth in the region The project will improve business opportunities around the town. Safety issues should be adequately addressed. The District Physical Planning Officer indicated that LPG is a good alternative to wood fuel and charcoal and the LPG Plant will ensure regular supply of Gas. Majority indicated that gas shortage will be taken care of and prices will stabilize.

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PANAFCON Ltd. The Public Health Officer indicated that the site may not be very conducive. Construction should meet required standards. All stakeholders should be involved in safety training and KenolKobil should think about the local community as part of their corporate social responsibility. Stakeholders mentioned that KenolKobil should ensure construction and development of the plant is done according to design without any compromises and all safety installations like Gas Monitoring devises and firefighting equipment are up to the recommended standard, The access road from the Kisumu-Busia Road should be improved for ease of evacuation. Gas detectors should be installed. The Environmental Impact Assessment Study Report should be availed at the local level so that all stakeholders and the local communities can ascertain that their views have been taken into consideration..

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PANAFCON Ltd. 6 ANALYSIS OF PROJECT ALTERNATIVES During the course of formulating the proposed project, several project alternatives were considered to ensure that the best option of project development was adopted. The consideration of alternatives is one of the more proactive approaches of environmental assessment. This process serves to enhance the project design through an examination of other feasible options instead of only focusing on the more defensive task of reducing adverse impacts of a single design. The project alternatives considered include: 6.1.1 The No Action Alternative Under the No Action Alternative, the LPG Filling Plant would not be constructed. The resultant socio-economic benefits that would be created by the proposed development would not be realized and the anticipated development resulting from construction and operation of the project, such as the development of new industries and job opportunities would not occur. The frequent gas shortage would continue and price of gas would continue fluctuating. This would result in continued use of wood fuel and charcoal which promotes pollution and environmental degradation. 6.1.2 Alternative to LPG Site The proposed site has been selected due to its easy and convenient accessibility and approved for storage, handling and bulk distribution of all kinds of petroleum product. The site belongs to KenolKobil. The site has been used a petroleum storage Depot before. 6.1.3 Alternative to Design The Plant will have modern equipment and the Tanks will be mounded to enhance safety.

Plate 6: An Example of a Mounded LPG Tank System that will be installed.


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PANAFCON Ltd. 7 POTENTIAL ENVIRONMENTAL IMPACTS The development of the Proposed LPG Plant will change both the biophysical and the socio-economic salient and environmental features of the project area. During the implementation, potential positive and negative environmental impacts are expected to arise from the construction and operation phases. 7.1 Potential Positive Impacts The positive impacts of the proposed development are expected to include creation of employment and generation of income and revenue for the proponent and the provision of storage. The other benefits are as outlined in the Table 4 below: Table 4: Potential Positive impacts of the proposed LPG Plant and the Justification
Item 1. Potential Positive Impact Provision of reliable supply and competitively priced LP Gas /Reduction of Reliance on Wood Fuel and Charcoal Justification LP Gas is currently transported in Cylinders from Mombasa and Nairobi to Kisumu. This has resulted in irregular supply of the commodity being experienced. The prices have therefore been fluctuating. There is increased demand for clean fuel in Western Kenya. The creation of a steady and competitive supply will reduce reliance on wood fuel and Charcoal thus protecting our environment from degradation and deforestation. The proposed LPG Filling Plant will create employment opportunities. This will embrace both permanent and temporary staffing. This will be during site preparation which will include vegetation removal, top soil stripping, site planning, access road development within the Plant and construction of the LPG Tanks and other facilities etc. Besides the direct employment by the proposed development, other forms of employment are likely to result from the spillover effects, through indirect services during the construction and operation phases. The employment opportunities will generate income and improve the living standards of the local population and its environs. Distributors of LPG will get regular supply. There shall be increased government revenue collection through payment of VAT and other levies charged on LPG Equipment. The development and running of the proposed LPG Plant shall result in payment of the necessary license fees and levies by the proponent the different government agencies. The proponent is expected to pay a fee to NEMA for the EIA Licence of 0.05% of the total cost of the Project. (0.05% of Kshs 120,794,297/=) which gives KShs 60, 397/= to NEMA. Due to the increased demand for LP Gas in Kisumu Town, Nyanza, Western and part of Rift Valley Province, there will be increased trade in the commodity.

2.

Generation of Direct & Indirect Employment and Income

3.

Contribution to Government Revenue

4.

Trade

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PANAFCON Ltd. 7.2 7.2.1 Potential Negative Impacts Potential Impacts of Construction Activities The main construction activities that will affect the environment of the proposed LPG Filling Plant include: Effects of the construction and maintenance activities to human environment Clearing of existing vegetation on the site area Excavation and disturbance of soils and geological formation causing soil erosion Terrestrial habitat alteration and disruption Construction activities of the proposed depot structures and other activities associated with civil works Water demand for construction personnel & activities Site Construction Waste Generation Dust Emission Noise from construction machinery Malaria Health Risks to Construction Personnel Risk of new HIV and Aids infection due to movement of construction workers exposing them to new situations, meeting new people and hence increased risk of acquiring HIV and other sexually transmitted diseases Visual intrusion, accidents and occupational risks

7.2.2

Potential Impacts of Operation Activities The expected impacts that will arise once the construction is complete and the LPG Plant operations begin include LPG leak and the risk of fire outbreak. Table 4 below identifies the possible negative impacts and proposed mitigation measures.

7.3 7.3.1

Mitigation Measures Mitigation Measures against Potential Impacts of Construction Activities Soils excavated for the construction of the LPG Plant shall be disposed of offsite Soils shall not be left exposed to wind/water for long; Control speed of construction vehicles and prohibit idling of vehicles; Water shall be sprayed during the construction phase on excavated areas to reduce dust emission; Provision of dust masks for use while working - in dusty conditions and hearing protection devices when working with noisy equipment. Excavation activities to be done preferably during the dry season to avoid soil erosion Ensure physical and structural integrity of the structures is maintained; Appropriate hand and foot protection (PPE) during the manual clearing of vegetation; Adopting ergonomic work flow designs that fit physical tasks to employees and not vice versa while maintaining a balance with productivity; Use of helmets and other protective devices will mitigate against scratches, bruises; lacerations and head injuries due to dropping objects; Provide first aid facilities at the site; Use construction site barrier tapes to isolate the site(working) area to bar intruders from accessing the area in case of a dropping object; Implement a fall protection program that includes training in climbing techniques and use of fall protection measures, Provide Safety Belts;
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PANAFCON Ltd. Inspection, maintenance, and replacement of fall protection equipment; In the event that the construction team encounters a physical resource of cultural importance, the National Museums of Kenya shall be immediately informed - the resource shall be protected from any interference or manipulation of any kind; Emergency response plans/procedures including details (phone numbers and location) of the nearest dispensaries, hospitals to be provided to the construction site manager; The construction of the facility will include the use of fireproof electrical installations. The construction will include adequate fire fighting installations and provision for adequate water replenishment (provision of adequate water reservoir); The construction of the driveway and storage yard will be done using leak-proof concrete finish which can direct spilled oils and surface run-off to the interceptors. The use of un-cemented pre-cast concrete paving blocks (cabbro blocks) are discouraged since a large portion of the surface run-off and spilled fuels during loading will directly seep into the sub-surface through the open gaps between the blocks and impact the soil and groundwater The drainage system within and around the site will be well constructed to prevent the flooding of water discharged from the interceptor. This will be done to ensure a sufficient capacity to contain all the run-off during the exceptionally heavy rainfall periods. Since LPG collects at the lowest point when released, the Plant will be constructed to ensure that should there be any unprecedented release of LPG it will be contained within the Depot site. The surface drainage will direct all surface waters in the depot to an oil water separator (interceptor).

Solid Waste The proposed Depot is expected to generate several types of waste during construction and operation activities. Excavated soil will require proper collection and appropriate disposal. Site waste materials will include metal, sand, cement. Solid waste will include empty containers, raw material wrappings and left over construction materials that will require appropriate disposal. Storage of excavated material (soils) will require proper temporary storage before disposal to avoid causing visual intrusion and being a nuisance or obstruction to neighbouring operations. Air Quality During Construction Dust and other particulates will need to be arrested during construction through sprinkling of water regularly. The contractor shall be required to use well maintained machinery and vehicles with reduced smoke emission. Air Quality During Operation The proponent shall ensure that operations governing LPG offloading from Trucks to LPG Tanks and the filling of cylinders will be done with utmost care ensuring that there is no accidental release of the gas. LPG Quality Specifications and Technical Standards KenoKobil undertakes to install the latest state of the art LPG Tanks and Filling Equipment that complies with local and international standards. KenlKobil will comply with the Energy Regulatory Commission (ERC) requirements and the Installations will conform with Kenya Bureau of Standards and International Quality and Technical Standards.

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PANAFCON Ltd. Installation of Mounded LPG Tanks


The Safety Aspect

The LPG Tanks to be installed at the facility will be mounded. By mounding LPG tanks with an adequate layer of sand and earth, the possibility of fire engulfment and a BLEVE (Boiling Liquid Expanding Vapor Explosion) is removed. Mounding allows safety distances around the facility to be considerably reduced, compared to an equivalent unprotected design. The cover of the mound protects the vessel from fire engulfment, radiation from a fire in close proximity and acts of sabotage or vandalism. The area of land required to locate a mounded system is minimal compared to conventional storage.
The Environmental Aspect

Originally justified by reducing the area of ground required by above ground systems, it has developed into an aesthetic argument. Mounded lpg gas tanks can be landscaped to blend with the environment. Further environmental concern results from the large volume of water required for the fire systems of conventional storage. This imposes a demand on valuable water sources, and problems associated with the drainage and disposal of the water. The extra cost associated with a mounded system is offset by the lower cost of the land required, and the virtual exclusion of fire fighting systems. Mounded systems have also been installed where the available space, or environmental pressure, precluded traditional storage methods. Source of Water The construction and operation of the proposed LPG Plant shall require adequate provision of water. The proponent proposes to obtain the required water for construction and operation activities from the existing piped water that serves the area and is present at the site. The proponent proposes to construct 100M water reservoir within the site for operations and fire fighting. Safety Measures and Installation of Safety Devices Safety measures will be put in place including installation of safety devices at the LPG Bulk Storage and Filling Plant. This will include the following: Installation of mounded LPG Tanks Provision of adequate ventilation Installation of Liquefied Petroleum Gas Detectors/Sensors to detect any Gas Leaks Safety fittings on the fill line from L.P.G Trucks State of the Art fire-fighting equipment Elimination of all ignition sources 7.3.2 Mitigation Measures against Potential Impacts of Operational Activities Adopting ergonomic work flow designs that fit physical tasks to employees and not vice versa while maintaining a balance with productivity; Use of helmets and other protective devices will mitigate against scratches, bruises; lacerations and head injuries due to dropping objects; Provision of first aid facilities at the site; Provision of emergency stop switch around the facility will be done at appropriate locations to facilitate the putting off of power in case of emergency; Provision of Gas Detectors to monitor gas levels within the facility;
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PANAFCON Ltd. Emergency response plans/procedures including details (phone numbers and location) of the nearest dispensaries, hospitals to be provided to the construction site manager; The LPG fire prevention and control capacity will be properly addressed. Fire alarms, smoke detectors, etc. for fire warning and prevention will be installed. The depot will install other fire control equipment besides the fire extinguishers and sand buckets - so as to strengthen the fire control capacity; Staff training and regular drills on fire prevention and control will be encouraged to ensure proper preparedness for fire control within and outside the LPG Plant; Conduct HIV Aids awareness campaigns among employees regularly (yearly) The drainage and interceptor maintenance will be carried out regularly, including cleaning the interceptors of rubbish to avoid clogging and overflow; Formal procedures will be put in place for energy saving to minimise energy use. The staff will be encouraged to turn off unnecessary lights and not to leave water taps running; The depot will prepare a written set of guidelines for the staff on energy saving procedures. They will be closely supervised to ensure that the instructions are closely followed;

7.3.3

Mitigation Measures against Potential Impacts of Decommissioning Activities The proponent should carefully remove all the stonework, roofing structure and all the fitting carefully ensuring proper handling of the demolished materials. debris and have an authorized and guided transportation and disposal away from the depot area The proponent should submit a decommissioning plan to NEMA in good time prior to decommissioning. The decommissioning plan should include a restoration plan. The decommissioning exercise of the LPG Facilities shall involve the following: The LPG Tanks and Filling Facilities must be degassed before decommissioning and removal - First, any remaining Liquid LPG must be removed from the system and storage tanks - After removal, any remaining LPG that cannot be removed must be flared. - Once the flare will no longer burn, the system must be purged of residual vapours. - Purging is typically done using Nitrogen or Air. - Once the tanks have been completely purged, the tanks are excavated (since they will be mounded. - The contractor should verify that all data plates are legible and intact, otherwise the tanks may have to be re-certified, before being resold or reused for pressurized service. After excavation, tanks, vaporizers, compressors and other equipment will be dismantled and prepared for transport. All piping will be cut and capped Hazarders material like ethylene-glycol and mercury switches, if any, will be collected for appropriate disposal. Removal of all cylinders (filled and empty) for storage elsewhere. Proper cranes will be used to lift the tanks from their piers onto trucks for transport. All concrete works will be demolished. Other structures within the plant will also be demolished Careful removal of all the electrical fittings and associated cables will be done There will be proper handling of the demolished materials and have an authorized and guided transportation and disposal away from human settlement, water bodies and

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PANAFCON Ltd. wildlife conservation area (National Park area) in accordance with Local Authority and NEMA Regulations and guidelines. The host environment shall thereafter be rehabilitated and restored to its former state through: Approved and appropriate landscaping methodology. Planting of indigenous vegetation. Removal of any soils that may have been impacted by oils for offsite (away from the project area) remediation. Bringing in of clean soil to replace impacted soil that has been excavated and removed.

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PANAFCON Ltd. 8 ENVIRONMENT MANAGEMENT PLAN The environment management plan is important process of ensuring project sustainability and environmental protection. Whereas efforts are usually made to develop mitigation measures for a proposed project, it is during the operation lifespan of the project that actual impacts are noted or experienced. It is therefore important to integrate in the environmental impact assessment process, an environment management plan that includes the monitoring of the progress of mitigation measures being implemented while also monitoring the project for any new negative impacts that were not earlier considered or anticipated. Refer to Table 5 for the Environmental Management Plan. 8.1 Environmental Monitoring Plan Environmental monitoring is an important integral part of the environmental project management process. It rationally completes the process that begins with: Establishing the environmental baseline condition Carrying out the environmental impact assessment Implementation of mitigation measures and Monitoring the success of those measures. 8.1.1 Sound Environmental Monitoring Environmental monitoring is envisioned as an important process in project management. The monitoring programme will reveal changes and trends brought about by the presence and operations of the LPG facility. The information will be useful in the formulation of sustainable project management through appropriate safety measures and operation strategies. The basic activities for a sound-monitoring programme for the LPG Plant once its implementation starts should at least include the following parameters: Collection and analysis of relevant environmental data of the LPG Plant including: - Evaluation of the type and quantity of solid waste generated during construction to ensure appropriate handling, storage and disposal. - Evaluation of the construction practices to ensure proper tools, machines and methods are employed to guarantee safety and environmental protection. - Monitoring of various parameters during construction and operation to confirm compliance with local by-laws, legislative requirements and industry practices. - Evaluation of noise and other effects emanating from the construction site to the surrounding neighbouring commercial operations - Quantity of water used during construction and how the runoff water is directed. - Staff Safety and Health Trends taking into consideration appropriate induction on appropriate social behavior to guard against STDs and HIV. Identification of unexpected environmental impacts not previously considered Formulation of counter-measures to mitigate any unexpected negative impacts and impacts not previously considered and comparing them with actual impacts as identified during the EIA Study.

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PANAFCON Ltd. Parameters and Equipment to be monitored during construction Dust and smoke emission Noise levels from machinery and vehicles Solid and liquid waste Construction staff safety Installation configuration observing required distances Operation status of construction machinery Parameters and Equipment to be monitored during operation L P Gas leaks Status LPG Tanks and Filling Equipment LPG Plant operations observing safety requirements Operation staff safety Firefighting equipment operation status Operation Status LPG Detectors Responsibility: The KenolKobil Ltd Timing: During Construction & Operation Phases 8.2 Internal Audit (Environmental Operation Survey) In order to sustain a healthy environment in the project area and its environs to ensure that minimal negative impact is imparted to the routes ecosystem, the management should undertake to monitor the quality of the environment as a routine practice. Monitoring will involve measurements, observations, evaluations, assessment and Project Reporting on the following variables once the Depot becomes operational. It shall therefore be useful for KenolKobil to institute internal environmental audit (Environmental Operational Survey) as this will assist in improving operations of the Depot and protecting the environment. Components of the Environmental Operation Survey may include evaluation of the following: 1. The Contractor is to ensure that at any one time he has one of his staff members being capable of administering first aid prior to any afflicted person being transferred to a medical institution for treatment. 2. Seasonal variation of the presence of disease vectors (e.g. mosquitoes) since this shall assist the contractor to advice his staff on potential dangers of getting malaria and what precautionary measures are appropriate. 3. Evaluation of firefighting equipment status by having the relevant maintenance team to check them regularly and test their functionality. 4. Provision of appropriate and polite notice posters within the construction site area guiding the staff on various aspects of environmental protection including: No throwing of litter apart from the designated areas. Early Project Reporting to the Contractor management any unusual health feelings (e.g. some persons may not know the symptoms of malaria until they are very sick) The above information is vital for the smooth running of the construction and maintenance works and environmental monitoring and therefore the proponent is encouraged to ensure that the contractor and monitoring staff are able to monitor all activities and keep records for review by KenolKobil and other Authorities. Responsibility: The KenolKobil Ltd /Contractor Timing: During Construction & Operation Phases
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8.3

External Annual Environmental Audits The proponent should engage a NEMA Registered and recognized consultant to carry out Annual Environmental Audits in line with NEMA requirements. NEMA has the overall responsibility for issuing approval for the Project and ensuring that their environmental guidelines are followed during Project implementation. Its role therefore is to review environmental monitoring and environmental compliance documentation submitted by the implementing authorities and they would not normally be directly involved in monitoring the Project unless some specific major environmental issue arose. KenolKobil through the Consultant will therefore provide NEMA with Project Reports on environmental compliance during implementation phase as part of their annual progress Project Reports and annual environmental auditing Project Reports.

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PANAFCON Ltd. Table 5: Environmental Management Plan


Nr 1. Activity Negative Impact Mitigation Measure Utilize appropriate clearing techniques (e.g. Hand clearing as opposed to mechanized clearing) by using human labour as opposed to heavy machinery Maintain native ground cover and low growing vegetation by selective removal of obstructing trees Minimizing clearing and disruption to the site vegetation. Replant disturbed sites with native plant species This is in line with the Environmental Management and Coordination Act, 1999 Soils excavated for the construction of the LPG facility shall be disposed offsite or used for backfilling where possible. Soils shall not be left exposed to wind/water for long; This is in line with the Land Planning Act, Cap 303 Existing vegetation shall be minimally disturbed during the construction Reduction of soil erosion and safeguard biodiversity protection; This is in line with the Environmental Management and Coordination Act, 1999 and Water Act, 2002 Re-plant degraded areas with local species to improve ground cover. Responsibility KenolKobil Contractor Timing Cost Performance Indictors

Clearing of Depot Vegetation Site Area damage, habitat loss and invasion by exotic species at the LPG Plant Site

During 50,000/= per Construction and annum for Operation maintenance Phases Landscaped site with some indigenous trees that have not been disturbed

Soil Excavation

Soil Erosion

KenolKobil Contractor

During 200,000/= Construction and Operation Phases Landscaped site with some indigenous trees that have not been disturbed

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Nr 3. Activity Negative Impact Mitigation Measure Responsibility KenolKobil Contractor Timing During Construction and Operation Phases Cost Performance Indictors 100,000/=

4.

5.

Control speed of construction vehicles; Prohibit idling of vehicles; Water shall be sprayed during the construction phase on excavated areas to reduce dust emission; Regular maintenance of plant and equipment; Provision of dust masks for use while working- in dusty conditions. Use of serviceable vehicles and machinery to avoid excessive smoke emission These are in line with the Environmental Management and Coordination Act, 1999 This is in line with the Occupational Safety and Health Act (OSHA) 2007 Construction and Noise pollution Noise reduction/ hearing protection devices when operation of the working with noisy equipment. Site and related Use serviceable equipment with low noise emission components Instruct truck and machinery operators to avoid raving of engines These are in line with the Environmental Management and Coordination Act, 1999 This is in line with the Occupational Safety and Health Act (OSHA) 2007 Construction and Provide solid waste collection facility for the temporary operation of the storage of waste prior to disposal. Depot and The storage yards should be provided with solid waste related Management of disposal facilities such as waste bins/chutes. components Solid Waste Excavation activities to be done preferably during the dry season to avoid soil erosion This is in line with the provision of EMCA Act, 1999, Water Act 2002 and Public Health Act, Cap 242 Construction and Air Pollution operation of the (dust, fuel Site and related emissions) components

Records of service carried out

KenolKobil Contractor

During Construction and Operation Phases

50,000/=

Proper PPE in use

KenolKobil Contractor

During Construction and Operation Phases

100,000/=

Clean Environment

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Nr 6. Activity Negative Impact Mitigation Measure Responsibility KenolKobil Contractor Timing During Construction Operation Cost Performance Indictors and 100,000/=

Construction and Site Area & KenolKobil and Contractor will ensure that: operation of the Groundwater No domestic or any other hazardous waste is Plant and related Water Pollution disposed of at the project area components Ensure that machinery and used oil from vehicles is not released to the ground through the provision of mode of collection and appropriate disposal. Clear instruction to machine and vehicle servicing personnel on this provision to be made available. Construct a drainage system within and around the depot site leading to an interceptor. Carry out regular drainage and interceptor maintenance including cleaning the interceptors of rubbish to avoid clogging and overflow In line with the provisions of the Environment Management and Coordination Act, 1999, Water Act, 2002 and Public Heath Act Cap 242 Construction of the Plant and related components Risk of fire Install Mounded LPG Tanks and include the use of fireproof electrical installations at the facility Install adequate fire fighting installations and provision for adequate water storage. Provide emergency stop switch around the facility will be done at appropriate locations to facilitate the cutting off of power in case of emergency Installation of Gas Detectors Provide a "First Aid Box", with proper equipment with proper training of Depot staff on how to administer first aid Address the depot fire prevention and control capacity. Install Fire alarms, smoke detectors, etc. for fire

Routine Site Operation

7.

KenolKobil Contractor

During Construction and Operation Phases

300,000/= Routine Operation Activity Fire extinguishers Presence of Gas and Smoke Detectors Safety Drills/Training Schedules Records

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Nr Activity Negative Impact Mitigation Measure warning and prevention in addition to other fire control equipment besides the fire extinguishers and sand buckets - so as to strengthen the fire control capacity Staff training and regular drills on fire prevention and control will be encouraged to ensure proper preparedness for fire control in the depot The fire control equipment will be regularly serviced after installation to ensure efficient performance when required This is in line with the Occupational Safety and Health Act (OSHA) 2007 Appropriate hand and foot protection (PPE) during the manual clearing of vegetation; Adopting ergonomic work flow designs that fit physical tasks to employees and not vice versa while maintaining a balance with productivity; This is in line with the Occupational Safety and Health Act (OSHA) 2007 Use construction site barrier tapes to isolate the site(working) area to bar intruders from accessing the area in case of a dropping object Test structures for integrity prior to undertaking work; Implement a fall protection program that includes training in climbing techniques and use of fall protection measures, Provide Safety Belts Inspection, maintenance, and replacement of fall protection equipment. Provide first aid facilities at the site Use of helmets and other protective devices will mitigate against scratches, bruises; lacerations and Responsibility Timing Cost Performance Indictors

8.

Construction of the LPG Plant and related components

Physical Hazards

KenolKobil Contractor

During Construction and Operation Phases

100,000/=

Proper PPE in use

9.

Construction and Working at operation of the heights Plant and related components

KenolKobil Contractor

During Construction and Operation Phases

100,000/=

Proper PPE in use including Safety Belts for Heights

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

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Nr Activity Negative Impact Mitigation Measure head injuries due to dropping objects, This is in line with the Occupational Safety and Health Act (OSHA) 2007 10. Workers Falling Provision & use of mosquito repellent nets by the sick during construction workers - This is in line with the provision construction and of Public Health Act, Cap 242 operation Conduct HIV Aids awareness campaigns among (HIV/Aids employees regularly (yearly) Education Avail over the counter medicine for use in case of Awareness) sickness to staff. Provide condoms to staff. Emergency response plans/procedures including details (phone numbers and location) of the nearest dispensaries, hospitals to be provided to the construction site manager This is in line with the Occupational Safety and Health Act (OSHA) 2007, Public Health Act Cap 242 LPG Plant Gas Leak/Fire Provision of Gas and Smoke Detectors Operation (Gas Provision of Fire Alarm System Filling Operations Provision of Firefighting Equipment This is in line with the Occupational Safety and Health Act (OSHA) 2007, Public Health Act Cap 242 Energy Saving Increased cost Formal procedures should be put in place for energy and Conservation of energy bills saving to minimise energy use Encourage the staff to turn off unnecessary lights and not to leave water taps running Set of guidelines for the staff on energy saving procedures. They will be closely supervised to ensure that the instructions are closely followed This is in line with the provision of the Environmental Management and Coordination Act, 1999, Water Act 2002 Workers Health (Potential spread of HIV/Aids amongst workers) KenolKobil Contractor During Construction and Operation Phases 200,000/= Responsibility Timing Cost Performance Indictors

Instruction Manuals

11.

KenolKobil Contractor

During Operation Phase

500,000/= Instruction Manual/Safety Drill Schedule

12.

KenolKobil Contractor

During Construction and Operation Phases

Routine Operation Activity Records

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CONCLUSIONS AND RECOMMENDATIONS In this EIA Study Report, the requirement of the terms of reference have been addressed through literature review, field study, description of baseline information, impact assessment, mitigation measures and monitoring plan. The information obtained adequately describes the salient ecological and socio-economic features of the Project Report area and the impacts of the proposed LPG Filling Plant

9.1

Conclusions LPG has the following important properties: A good mixture: LPG is mainly Propane (C3H8), Butane (C4H10) or a mix of Propane / Butane. Since LPG has such a simple chemical structure, it is among the cleanest of any alternative fuels. Boiling Point: LPG's boiling point ranges from -42C to 0C depending on its mixture percentage of Butane & Propane. Odour: LPG is odourless. Ethyl Mercaptan is added as an odourant to detect LPG in case of leaks. Colour: LPG is colorless Combustion: The combustion of LPG produces carbon dioxide (CO2) and water vapour but sufficient air must be available. Inadequate appliance fueling or ventilation can result in the production of carbon monoxide which can be toxic. Vapour Pressure: LPG is stored as a liquid under pressure. Its weight is approximately half that of an equivalent volume of water. LPG vapour is denser than air: butane is about twice as heavy as air and propane about one and half times as heavy as air. Consequently, the vapour may flow along the ground and into drains, sinking to the lowest level of the surroundings and be ignited at a considerable distance from the source of leakage. Toxicity: LPG is a colourless, odourless and non-toxic gas, but in large concentrations decreases oxygen quantities in the environment (room). Accumulation of LP Gas vapour may result in the development of an oxygen-deficient atmosphere which carries a risk of asphyxiation Corrosivity: LPG is is generally non-corrosive to steel and copper alloys. Safety: LPG is safer than most fuels because neither LPG itself nor the end products that are produced by burning LPG in a suitable appliance, are poisonous to inhale. Since LPG cannot burn without air, there can never be a 'Flash-back' into the cylinder. Arising from the analysis by the Consultant, the proposed project is unlikely to generate irreversible or permanent negative impacts. The EIA Study Report has provided adequate mitigation measures for the identified impacts which are mainly associated with fire safety. In order to alleviate any negative impacts that may emanate from the construction and operation of the LPG Plant, relevant and cost effective design, construction and gas monitoring shall be put in place.

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9.2

Recommendations It is therefore recommended that the LPG Plant project be approved provided that the proposed recommendations given below are implemented and strictly adhered to during construction and operation phases of the project:

9.2.1

Stakeholder Recommendations The provincial administration and stakeholders in the proposed project area fully support the project but request that a sound safety system and emergency response mechanism the incorporates the involvement of the local business community be put in place. This should include regular training of the constituted emergency response team. The access road from the Kisumu-Busia Road should be improved for ease of evacuation. Gas detectors should be installed. The Environmental Impact Assessment Study Report should be availed at the local level so that all stakeholders and the local communities can ascertain that their views have been taken into consideration.

9.2.2

Waste Management Recommendations Solid waste shall be generated periodically during the project lifespan and should be managed in such a way that it does not impact on the environment. The site construction materials and all solid wastes shall be gathered together at designated areas using approved appropriate/waste bins (bins with lids). These shall then be regularly collected by an appointed waste disposal firm that shall transport it away from the project area for appropriate disposal following NEMA and Local Authority regulations on waste collection, handling and disposal. The project design has provided for appropriate drainage and interceptor to hold and pre-treat all liquid waste generated from the operations of the LPG Plant. The Plant will be served with sufficient drainage to carry away the surface runoff.

9.2.3

Environment Management Plan Recommendations In order to ensure a healthy and safe environment at the proposed LPG Plant and its environs, a plan for environmental management has to been instituted through an environmental management plan and monitoring. This involves the collection and analysis of relevant environmental data of the project area and its immediate surroundings. The proponent shall do the following: The proponent undertakes to rehabilitate any degraded environment especially the cleared areas/undeveloped part of the LPG Plant. The proponent undertakes to reduce any dust emissions during construction and operation through spraying of water, maintain low speeds for any Vehicles and Trucks being used at the project site to reduce any dust emissions. The degraded environment especially excavated areas prone to soil erosion will be rehabilitated in-situ (as the construction progresses) to avoid soil being washed down gradient. The excavated soil shall be used to backfill where possible or disposed off appropriately in other areas where it could be useful. The contractor shall compact any loose soils as construction progresses to avoid soil wash offs.
June 2012

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All disturbed areas of the site shall be well landscaped. The process of rehabilitation shall be carried out during construction to avoid siltation and soil wash-off. Due to the nature and properties of LPG, the site shall be secured through the improvement of the existing perimeter stone wall to provide containment. Gas Detectors appropriate for LPG and sirens shall be installed to monitor the presence of LPG in the atmosphere. The LPG Tanks to be installed the Plant shall be mounded to enhance safety. There shall be a Fire Fighting System complete with 100 Cubic Metre Water Tank, 100m3/hr diesel fire engine, 4 ring main & fire monitors. There will be implementation of safety measures and emergency plans to contain accident risks associated with gas leakage, vehicle transport and operation of machinery. Emergency response plans/procedures including details (phone numbers and location) of the nearest dispensaries, hospitals and the proponents site representative will be provided to the Contractors Site Foreman / Manager of the construction site for action in case of any accidents during construction and operation phases. The contractors staff members shall be trained on the use of any new machinery and equipment that may pose danger to the user before they are allowed to use them. The contractor shall ensure that all structures are safe and secure for all personnel. Special attention will be paid to the sanitation in the site by providing clean water, sanitation facilities and proper housekeeping. Effective solid waste management as guided by the Local Authority shall be adhered to. Special attention will be paid to the disposal of solid waste. A reputable solid waste management firm shall be contracted to regularly collect waste for appropriate disposal away from the LPG Plant. Provision of solid waste receptacles shall be located at the site for use during construction and operation phases of the project. All construction and operation workers shall have appropriate safety gear. Sound levels reaching the inner ear may be effectively attenuated by the use of hearing protective devices, such as earplugs and earmuffs. Appropriate selection of machinery shall be done to minimize noise pollution. Use of explosives or loud machinery shall not be allowed during the construction and operation of the facility. Construction vehicles and machinery operators shall always be asked to switch off engines of vehicles or machinery not in use to reduce air/noise pollution. It shall be ensured that the construction machinery are serviced and kept in good condition to reduce noise generation and fuel emission. Construction drivers shall be instructed to avoid hooting near the construction area. The construction work shall be restricted to daytime only to ensure safety and avoid attracting thugs to the project site hence causing insecurity. There shall be proper management of water resources through prudent usage hence avoiding unnecessary wastage. The proposed LPG Plant was formerly used as a Depot for the storage and dispensing of petroleum products. Currently it is used to store empty and filled gas cylinders. The contractor shall be instructed to carry out excavation and construction activities with utmost care to avoid breaking any utility lines (Power Lines, Water Pipes etc) All workers shall be sensitized on fire evacuation plans and control at the construction site and during operation of the Plant.
June 2012

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Potable firefighting equipment shall be located at strategic points where they can be easily accessed during construction. All Contractor Personnel involved in working at elevated levels (heights) shall be appropriately trained and provided with proper safety equipments including scaffolds for those working at heights. The contractor shall ensure that at least one of the workers is trained in First Aid Administration.

9.2.4

Project Approval Recommendation Project Approval Recommendation is made considering that: The LPG Tanks (Bullets) shall be mounded. This is a safer option since it provides intrinsically passive and safe environment and eliminates the possibility of BLEVE (Boiling Liquid Expanding Vapor Explosion). Mounded LPG Tanks also significantly reduces required safety distances. By mounding LPG tanks with an adequate layer of sand and earth, the possibility of fire engulfment and a BLEVE is removed. The area of land required to locate a mounded system is minimal compared to conventional storage for LPG. Mounded LPG tanks enhances safety against fire and explosion and reduces the the quantity of water for firefighting requirement. Mounded LPG gas tanks can be landscaped to blend with the environment. The LPG facility shall be installed with Gas Detectors and adequate firefighting equipment. Creation of direct and indirect employment opportunities for the local population. The increased storage and availability of LPG in Kisumu will ensure regular supply of cooking gas that will stabilize price and enhance its use thereby reduce reliance on wood fuel and charcoal. This will in effect promote environmental conservation. Construction Design to ensure a safe and secure system. Commitment by the proponent to improve the stressed biodiversity of the site area through site rehabilitation and minimized cutting down of Indigenous trees at the site. The proposed management of the facility operations (solid waste handling), Mitigation measures and monitoring plan that will be put in place and the commitment to carry out an Annual Environmental Audit as often as NEMA deems necessary.

Overall opinion of the Consultant on the proposed project The proposed development is considered important, strategic and beneficial in increasing the supply of cooking gas which is a clean source of energy that will also promote environmental conservation may be allowed to proceed taking into account the proposed Mitigation Measures and Environment Management Plan (EMP).

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

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10

EIA STUDY TEAM MEMBERS

#
1. 2. 3. 4. 5.

Name
Joshua P. Oyieko Irene Muchoki Kenndey Kijana John Mageto Albert Muriuki

Profession
Hydrogeologist/ EIA Lead Expert Geologist/EIA Lead Expert Ecologist/ EIA Lead Expert Chemist/EIA Lead Expert Safety Advisor Occupational Hygiene Specialist/EIA Lead Expert Safety Advisor

Position
EIA Study Team Leader Team Member Team Member Team Member Team Member

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

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PANAFCON Ltd.

REFERENCES ACTS-UNEP, 2001. The Making of a framework Environmental Law in Kenya. Acts press, Nairobi, Kenya. Ahmad, Y. J., and G. K. Sammy. 1985. Guidelines to Environmental Impact Assessment in Developing Countries. Sponsored by the United Nations Environment Programme. Building Code 1997 Environmental Management & Coordination Act (EMCA) Environmental Management and Coordination (Water Quality) Regulation Environmental Regulations Management and Coordination (Fossil Fuel Emission Control)

Environmental Management and Co-ordination (Waste Management) Regulations Environmental Management and Coordination (Controlled Substances) Regulations Environmental Management and Coordination, (Conservation of Biological Diversity & Resources, Access to Genetic Resources, Benefit Sharing) Regulation Environmental Management and Coordination Draft Air Quality Regulations Environmental Management and Coordination (Noise and Excessive Vibration Pollution Control) Regulations Kruseman, G. P., and N. A. DE Ridder, Reprinted 1994. Analysis and evaluation of pumping test data. International Institute for Land Reclamation and Improvement, Wagenigen, The Netherlands. Maidment, D. R. 1993. Handbook of Hydrology. National Atlas of Kenya, Fourth Edition (1991). Public Roads and Roads of Access Act Cap. 399 The Water Act, 2002 The Land Planning Act, Cap 303 The Physical Planning Act, Cap 286 The Local Government Act, Cap 265 The Public Health Act, Cap 242
Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071 June 2012

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The Occupational Safety and Health Act The Registered Lands Act, Cap 300 Republic of Kenya, National Development Plan 2002-2008 United Nations Environment Programme (UNEP). 1996. Environmental Impact Assessment: Issues, Trends and Practice. World Bank. 1993. The World Bank and the Environment. World Bank. 1991. Environmental Assessment Sourcebook. Volume I. Policies, Procedures and Cross-Sectoral Issues. Environment Department. Technical Paper No. 139. World Bank. 1991. Environmental Assessment Sourcebook. Volume II. Sectoral Guidelines. Environment Department. Technical Paper No.140. World Bank. 1991. Environmental Assessment Sourcebook. Volume III. Guidelines for Environmental Assessment of Energy and Industry Projects. Environment Department. Technical Paper No.154.

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11

COLOPHON

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071 Client Project File Length of report Author Contributions Project Manager Project Director Date Name/Initials : : : : : : : : : : KenolKobil Kenya Limited Proposed KenolKobil LPG Bulk Storage and Filling Plant 12-001 71 pages PANAFCON Ltd. Irene Muchoki, Kennedy McAbong'o Joshua Oyieko OKELLO, Richard O. June 2012 im/jo/kk

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ANNEXES

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

PANAFCON Ltd.

Annex 1: People Contacted During the EIA Study

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

PANAFCON Ltd.

PEOPLE CONTACTED DURING THE EIA STUDY


People Contacted Mr. Daniel O. Oyile Quality Environment Health and Manager KenolKobil Limited I.C.E.A. Building, Kenyatta Avenue P.O. Box 44202 or 30322 00100 GPO, Nairobi, Kenya Tel: 20 2756000 / 2756367 Email: oyile@kenkob.co.ke Information Provided Provided Management Support Provided Project Development Information Provided the enabling logistics. providing project data and information, providing contacts of useful persons on the project area, facilitating communication and consultation with KenolKobil Limited Attended Public Consultation Meeting Provided Management Support Provided Project Information

Safety

Mr. Wilson Wambugu Head of Operations and Project Development KenolKobil Limited I.C.E.A. Building, Kenyatta Avenue P.O. Box 44202 or 30322 00100 GPO, Nairobi, Kenya Tel: 20 2756000 / 2756367 Email: wambugu@kenkob.co.ke Mr. Lawrence Oloo Depots Manager KenolKobil Limited I.C.E.A. Building, Kenyatta Avenue P.O. Box 44202 or 30322 00100 GPO, Nairobi, Kenya Tel: 20 2756000 / 2756367 Email: loloo@kenkob.co.ke Mr. Pius Kioko Snr. Mechanical Engineer KenolKobil Limited I.C.E.A. Building, Kenyatta Avenue P.O. Box 44202 or 30322 00100 GPO, Nairobi, Kenya Tel: 20 2756000 / 2756367 Email: pkioko@kenkob.co.ke Ms. Sharon Gitau Mechanical Engineer KenolKobil Limited I.C.E.A. Building, Kenyatta Avenue P.O. Box 44202 or 30322 00100 GPO, Nairobi, Kenya Tel: 20 2756000 / 2756367 Email: sgitau@kenkob.co.ke

Provided Management Support Attended Public Consultation Meeting.

Provided Management Support Provided Project Information

Provided Management Support Provided Project Information

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

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PANAFCON Ltd.

People Contacted Mrs Margaret Achieng Ouma District Development Officer Kisumu East and North Cell: 0733 410859 Mr. Byegon Weldon Depot Manager - Kisumu Total Depot E-Mail: byegon.weldon@total.co.ke Mr. Solomon Chazira Kitai District Officer Winam Division Kisumu East District Cell: 0724 849774 Email: solonmonkitai@gmail.com Mr. Willis Onyona Ochieng Chief Kisumu Town Location, Cell: 0726 548141 Mr. Nashon O. Opiyo Assistant Chief Bandani Sub-Location, Cell: 0727 420218 Arch. Elly O. Deya District Works Officer Kisumu West Ministry of Public Works Cell: 0722 376781 E-Mail: elly.deya@publicworks.go.ke Mr. Kenneth Werimo Centre Director Kenya Marine Fisheries Research Institute (KEMFRI) - Kisumu Cell: 0728 570728 Mr. Wasike Wanyonyi Ag In-Charge Kenya Industrial Estates (KIE) Cell: 0724 270961 Mrs. Susan Mwei Silo Manager National Cereals and Produce Board Kisumu Cell 0725 821861 Mr. Kamal Shah United Millers Kisumu Tel: 057 202260

Information Provided Discussed Proposed Project Filled in EIA Questionnaire

Discussed Project with EIA Team

Provided Administration Support Filled in EIA Questionnaire

Provided Administration Support Filled in EIA Questionnaire

Provided Administration Support Filled in EIA Questionnaire

Filled in EIA Questionnaire

Discussed Proposed Project Filled in EIA Questionnaire

Attended Public Consultation Meeting Filled in EIA Questionnaire

Discussed Project with EIA Team Filled in EIA Questionnaire

Discussed Proposed Project Filled in EIA Questionnaire

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

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PANAFCON Ltd.

People Contacted Mr. Joseph Okumu Airport Manager Kisumu Airport Kenya Airports Authority (KAA) Mr. Zephania Ouma Deputy Director Compliance Natiional Environment Management Authority (NEMA)

Information Provided Discussed Proposed Project Filled in EIA Questionnaire

Approval of ToR

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

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PANAFCON Ltd.

Annex 2: Panafcon NEMA EIA Certificates

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

PANAFCON Ltd.

Annex 3: Stakeholder/Neighbour Questionnaires

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

PANANFCON Ltd

by Surrounding Community, Stakeholders Communities to and fo o9 filled Neighbours, likely be affected the Proposed by LpG plant Description Proposed of LpG plant:
p.ropose! The, the of 54MT Tanksand attassociated works, Proiectwillinvotve instattation I Mounded civit lnstallation Fillingstationand related conveyorsystem, Construction a fitting of 9f hail, concreting ail of driygway wlthintle plant,Construction office an'd of AbtutionBtoiks,tnstattatioiof Fighting Fire sysfem forthe entireplant and Construction a fire water storage of tank.

Location Proposed of LPGplant:


At theKenolKobil DepotatongOtdAirpoft Road Ksumu

Name Neighbour/Stakehon"r, of
lD No./Rubber Stamp Neighbour/Stakeholder: COUNTY of W Signature Neighbour/Stakeholder of

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ffii,f,dat f'tlit;KIsrrlr,,jlfafi n entz

1. Hasthe proposed LpG plantbeenmentioned youbefored to

2' Should development the proposed Plantbe allowed continue be the of LPG to or stopped? CouTtttvL 3. what do you likeabout proposed the LpG plant? fA pMtOUt F^ t,',t C(Ty M E n N6 *NA &bi*uLc

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4. what do youdislike about proposed the LpG plant? please explain.

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KenolKobil Limited- Proposed LpGptant in Ksumu Town

5. Do think proposed Ptant arfect Environment? LPG wil vou the the ,rlf*fiifi3J"i"
theenvironment?

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End- Thanks

KenolKobil Linited - Proposed LpGptant in Ksumu Town

PANANFCON Ltd Environmental lmpactAssessment (ElAl euestionnaire Proposed LPGPlantat KenolKobil Depotin KisumuTown by Surrounding Community, Stakeholders Communities to and likely Jo b9 filled Neighbours, be affected the Proposed by LpG plant Description Proposed of LPGPlant:
Theproposed projectwillinvolvethe instattation I Mounded of 54MTTanks and altassoclafed Works, Civil lnstallation Filling Station of and relatedconveyorsystem, Construction a fittingha1,Concreting a1 of of dnygway plant,Construction OfficeandAbtutionBlocks, withintQe of tnstattatioiof Fighting'Estem Fire forthe entireplantand Construction a fire water storage of tank.

Location Proposed Ptant: of LPG


At the KenolKobil DepotalongOldAirport RoadKsumu

Name of Neighbeu+lStakeh r: olde IDzDlolRbber Stamp olNdg6bour/Sta holder: u ke


,'rt';t.,'Atl Date:

1. Hasthe proposed LPGPlant beenmentioned you before? to -^/ r^ L--5


\

2. Should development the proposed Plant allowed continue be the of LPG be to or stopped? S \\uufr T\ Q- ALL-s.Al \.sr,ql. $,,\JF 3. Whatdo youlikeabout proposed the LpG plant?

Bsrn'P\SYK 4. what do youdislike about proposed the LpG plant? please explain.

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KenolKobil Limited Proposed LPGPlantin KisumuTown

PANANFCON Ltd 5. Doyouthinkthe proposed LPGPlant affect Environment? which will the partof lf so, theenvironment? -YC

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6. Whatimprovements should proposed Plant the LPG developers include reduce to or minimize effect people theenvironment, development to continue? to and if the is

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7. Whatbenefits youthinkthe proposed do LPGPlant bring the people Kisumu will to of Townandthe neighbouring areas?

s_ F-As.
.q_ee-n5-e.{?snnWL !'A"r.rre_r-l5_ C,6-fiff-T.\./^r.\ r'Tr e f

L Anyotherrelevant comments related the proposed to LpG plant. -1-i+g Lscfu \ "q".r,.\.,-.-\vr-.i,i-{ i\ "Bg1 trF.\lritrr6_dJ

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End- Thanks

KenolKobil Limited- Proposed LPG Plantin Ksumu Town

PANANFCON Ltd

by Surrounding Community, Stakeholders Communities to and Io ol filled Neighbours, likely be affected the Proposed by LpG plant Description Proposed of LpG plant:

Location Proposed of LpG plant:

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Nameof Neighbour/Stakeholder: lD No./Rubber Stampof Neighbour/Stake

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PANANFCON Ltd 5. Do you thinkthe proposedLPG Plantwill affectthe Environment? so, whichpartof lf the environment?

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PANANFCON Ltd Environ mentallmoactAssessment (EtA)euestion re nai

To b9 filled Neighbours, by Surrounding Community, Stakeholders Communities to and likely be affected the Proposed by LPGPlant.

DescriptionProposed Plant: [A*^frf< S{p.q1q of LPG

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8. Anyotherrelevant comments related theproposed to LpG plant.

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End- Thanks

| | MAY ZOIZ
KenolKobil Limited Proposed LPGplant in Ksumu Town

PANANFCON Ltd EnvironmentaI lmpact Assessment (ElA) euestion nai re Proposed LPG Plant at KenolKobil Depot in Kisumu Town To b9 filledby Neighbours, Surrounding Community, Stakeholders Communities and likelyto be affectedby the ProposedLPG Plant.

Description of Proposed Plant: LPc

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PANANFCON Ltd 5. Do you thinkthe proposed LPG Plantwill affectthe Environment? so. whichpartof lf the environment?

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6. Whatimprovements should proposed plant the LpG minimize effect people theenvironment, to and if the

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7. Whatbenefits youthinkthe proposed Plant bring the people Kisumu do LPG will to of Townandthe neighbouring areas?

8. Anyotherrelevant comments related theproposed to LpG plant.

End- Thanks

KenolKobil Limited Proposed Plantin Ksumu Town LPG

PANANFCON Ltd

To be filled Neighbours, by Surrounding Community, Stakeholders Communities to and likely be affected the Proposed by LpG plant. Description Proposed of LpG plant:

Location Proposed plant: of LpG

Name Neighbour/Stakeholder: of lD No./Rubber Stamp Neighbour/Stakeholder: of Signature Neighbour/Stakeholder of

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PANANFCON Ltd 5. Do you thinkthe proposedLPG Plantwill affectthe Environment? so, whichpartof lf the environment?
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6. Whatimprovements should proposed Plant the LPG developers include reduce to or minimize effect people theenvironment, development to continue? to and if the is

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End- Thanks

KenolKobil Limited- Proposed LPGplant in Ksumu Town

PANANFCON Ltd

Environ mentallmpactAssessment (ElA)euestion re nai

by Surrounding Community, Stakeholders Communities to and likely Io O9filled Neighbours, be affected the Proposed by LPGplant. Description Proposed Plant: of LPG

Location Proposed Plant: of LPG

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PANANFCON Ltd

5. Doyouthinkthe proposed LPGPlant affect Environment? which will the partof lf so,

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End- Thanks

KenolKobil Limited Proposed LPGplant in Ksumu Town

PANANFCON Ltd

by Surrounding Community, Stakeholders communities and fo o9 filled Neighbours, likely to be affected the Proposed by LpG plant Description Proposed Ptant: B.r'\t< of LPG
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4. what do youdislike about proposed the LpG plant? please

KenolKobil Limited- Proposed LpG ptant in KisumuTown

PANANFCON Ltd 5' Do you thinkthe proposed LPG Plantwill affectthe Environment? so, whichpartof lf the environment?

6' Whatimprovements should proposed Plant the LPG developers include reduce to or minimize effect people theenvironment, development to continue? to and if the is

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7' Whatbenefits y9.u do. thinktheproposed Plant bring the people Kisumu LPG will to of Townandthe neighbouring areas?

8. Anyotherrelevant comments related theproposed to LpG plant.

End- Thanks

KenolKobilLimitedProposed ptantin Ksumu Town LpG

PANANFCON Ltd

To be filled Neighbours, by surrounding Community, stakeholders Communities to and likely be affected the proposed by LpG plant. Description Proposed of LpG plant:

Location Proposed plant: of LpG

Name Neighbour/Stakeholder: of lD No./Rubber stampof Neighbour/stakeholder: _ Signatu of Neigh re bour/Stakeholder-1. Hasthe proposed LpG plantbeenmentioned youbefore? to Re-r-t-'z-r) Date:

2' Should development the proposed Plant allowed continue the of LPG be to or be

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End- Thanks

KenolKobil Limited Proposed ptantin KisumuTown LpG

PANANFCON Ltd

by Surrounding Community, Stakeholders Communities to and likely Io u9 filled Neighbours, be affected the Proposed by LpG plant Description Proposed plant: i-,.s of LPG
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2' Should development theproposed Plant allowed continue be the of LPG be to or stopped?
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PANANFCON Ltd 5' Doyouthinkthe proposed LPGPlant affect Environment? which will the lf so, partof theenvironment?

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6. Whatimprovements should proposed Plant the LPG developers include reduce to or minimize effect people the environment, development to continue? to and if the is

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End- Thanks

KenolKobil Limited- Proposed LpG ptant in KisumuTown

PANANFCON Ltd

by Surrounding Community, Stakeholders Communities to and likely Jo O9filled Neighbours, be affected the Proposed by LpG plant Description Proposed of LPGplant:

Location Proposed Plant: Ki-f**-* of LPG

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KenolKobil Limited- Proposed LpG ptantin Ksumu Town

PANANFCON Ltd 5' Do you thinkthe proposed LPG Plantwill affectthe Environment? so, whichpartof lf the environment?

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6. Whatimprovements should proposed Plant the LPG developers include reduce to or minimize effect people theenvironment, development to continue? to and if the is

7. Whatbenefits youthinkthe proposed Plant bring the people Kisumu do LPG will to of Townandthe neighbouring areas?

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8. Anyotherrelevant comments related theproposed to LpG plant.

End- Thanks

KenolKobil Limited ProposedLpGptant in KisumuTown

PANANFCON Ltd (ElA)Questionnaire Environmental lmpactAssessment Proposed LPGPlantat KenolKobil Depotin KisumuTown To befilled Neighbours, by Surrounding Community, Stakeholders Communities to and likely be affected the Proposed by LPGPlant.

DescriptionProposed Plant: of LPG

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4. what do youdislike about proposed Plant?Please the LPG exprain.

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PANANFCON Ltd 5' Do you thinkthe proposed LPG Plantwill affectthe Environment? so, whichpartof lf the environment?

7' Whatbenefits youthinkthe proposed Plant bring the people Kisumu do LPG will to of Townandthe neighbouring areas?

8. Anyotherrelevant comments related the proposed to LpG plant.

End- Thanks

KenolKobil Limited ProposedLPGptantin KisumuTown

PANANFCON Ltd

To befilled Neighbours, by surrounding Community, stakeholders communities to and likely be affected the Proposed by LpG plant

Description of proposed plant: fLs\.\< LpG

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Location Proposed of LpG plant:

Nameof Neighbour/Stakeholder: lD No./Rubber Stampof Neighbour/Stakeholder:

Signature Neighbour/Stakeho of rk"r 1. Hastheproposed prant LpG been mentioned youbefore? to

Date: lrl S.(u t,

2' Should development theproposed Plant the of LPG be allowed continue be to or stopped? 3. What youlikeabout proposed plant? do the LpG

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PANANFCON Ltd 5. Do you thinkthe proposedLPG Plantwill affectthe Environment? so, whichpartof tf theenvironment?

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End- Thanks

KenolKobil Limited Proposed LpG ptantin KisumuTown

PANANFCON Ltd

To befilled Neighbours, by surrounding Community, Stakeholders communities to and likely be affected the Proposed by LpG plant. Description Proposed of LpG plant:

Location Proposed of LpG plant: s Name Neighbour/Stakehold"r' of lD No./Rubber Stamp Neighbour/Stakehoner: [, Z t of I b S { 1

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End- Thanks

KenolKobil Limited proposedLpGplantin KisumuTown

PANAFCON Ltd.

Annex 4: Soil TPH Analysis Results

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

sGs
PANAFCON LIMITED GLIENT: P. O BOX53147-00200 NAIROBI
TESTREPORT No. DESIGNATED SAMPLE SUBMIfiED BY DATERECEIVED ANALYSISSTARTDATE CONDITION SAMPLE OF MARKS 12-1142 A Report date: May 14, 2012

solL
CLIENT 08.05.2012 08.05.2012 DELIVERED GLASSCONTAINER IN KEN-KSM-KKL-sOl

TESTS TPH
(-)n - Lla

TESTMETHOD

UNITS

RESULTS

SGS TW 56

mq/kq

(DL=0.01) Not Detected

DL = Detection limit

Mombasa lab. 14hMay,2012

S. Mturi Techqical signatory

A. Owiti

ryManaser

This reportrefersto a submitted sampleand all detailsin respect source;quantities; of marksare not verified confirmed or

.,Th|!ddmni|r|3.udby|hocomp.ny.ub,E|b|bGfds|cond|tbn.o'sr|@Pdnbdovdle|orav.||eb|eonrquc'tand@t|bleatht|D,/ww.&.'@m/im!dd@nd|i|on!.hhand''o. e|el'on|c'dmatd@mdt.,.Ub,diolsmrend6nd|flon.'orE|don|churcnblM.&!.@ml.ts14.od@gmcntht'n'Attent|onbdr@edJur|rd|d|on |a'u*do||nodtholo|n.Anyho|dero'th|.d@umnt|!adv|adthat|n'o.md|on@nndhd if any. The Company'r sh pdls r6ponalblllt l. to ib Clldt and lhl. dqmst d not oxonorf b a ban!*{on d@uhdt@tnot bo rdproducd ex@pt In tull, wl ottdde[ may bo pro@td to lhe tullol orbnt ot tho |il." "Unla olhenls ltaiad lhe relulta ahown In thlr bsl.epoil.der only to tho empl6(s) bbd

taom ddclslng

all their alght! and obllgaf6n!

unds

tho ban*lon

documenb.

Thls

and luch

cmple(s)

are rblned

tor gO day! only (lt non-p9ri!hable)."

SGS House, Shimanzi, AbdallaNdovuMwidau Sheet,P.O.Box 90264,Mombasa, 80100,Kenya SGS KENYALTD T (25441)2226677-8-9,+(2544112220984-5-7 (25441)2228703 + (25441) 2315105 t E-mail:Enquiries.Mombasa@sgs.com Member the SGSGroup(SGSSociete of Generale Surveillance cle S.A). PageI of I

GLIENT: PANAFCON LIMITED P. O BOX53147-00200 NAIROBI

TESTREPORT No. DESIGNATED SAMPLE SUBMITTED BY DATERECEIVED ANALYSISSTARTDATE CONDITION SAMPLE OF MARKS

12-12288

Reportdate: May 14,2012

sotL
CLIENT 08.05.20t2 08.05.2012 DELIVERED GLASSCONTAINER IN KEN-KSM-KKLO2

TESTS TPH
Cs- Ca

TESTMETHOD

UNITS

RESULTS

SGSTW 56

mg/ks

(DL=0.01) NotDetected

DL = Detection limit

Mombasa lab. 14hMay,2012

S. Mturi Technical signatory

6{L.

+ \ty'

A. Owiti Labpratory Manager

This reportrefersto a submitted sampleand all detailsin respect source;quantities; of marksare not verified confirmed or

.,Th|.d@mnt|.|r!udbythecomFny.ub,*tto|isGdda|condlt|d.o's4lce.pr|nbdovg|gfo..ve|lableonrgqu6tand.@.|b|os|hb:{tw.w!?d.'@m/brm.and@nd|font.hand'foi ol6tonb'olmatdo@nit.,tub|$ttoTdm.andcond|don.'o.E|*tonbo@Umnt..stw.&t.@m,.t.rm.cd6um;nthtrn.Atenr|on|cdli;ET;.'i |suo.dfndlhoF|n.Anyho|d4otth|.d@rnt|.dvl.dthd|nlormat|ononta|nedhaEi.ifm-Eit6tfi[ffng.atth.dmeo'|b|nbrnt|onon|yandwtu|nbe|lh|bdc||dt!|n.tluctn.' rany.Thecompant/re|orspon.|b|||ty|r!o|bc||.ntandlh|sdeuMid@naoronglateP..t|6toat'ans;doino.oi&.crjI"Jaii.iij;;|sh;;;;;t-|;:

"tl[s.f11j:":?1,tlf;:fgl:1'H:}*l*lP|tt6oaPp'ovalolthoco.p"ny.liyunauih"'i'';-.diiilli,i"ig.ly",'drtncatton-aoeonti
"unla olheMls 'ttled the .sulb Ehown In thl! bat iepod rateaonly to the snptqr) hrtod sd auch samplq!) are ,etalnd td s days only (f non-porlshabl6).,,

sG.-s House, shimanzi, AbdallaNdovuJtlwidau street,p.o. Box g0264, Mombasa, 80100,Kenya SGS KEilYA LTD T (25441) 2226677-8-9, (2544',1) + 2220984-5-7 (25441) 2228703 +',(254411 f 23ii1o5 E-mail:Enquiries.Mombasa@sgs.com Member the SGSGroup(SGSSociete of Generale Surveillance de S.A). Page1 of I

PANAFCON Ltd.

Annex 5: Public Consultation Minutes

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

PANAFCON Ltd.

MINUTES OF PUBLIC CONSULTATION MEETING FOR ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT CONSULTANCY SERVICES FOR THE PROPOSED LPG PLANT IN KISUMU TOWN VENUE: NYANZA GOLF CLUB LOBBY, KISUMU PRESENT S/No. Name
1. Joshua P. Oyieko

DATE: 11TH MAY 2012

Designation
Environmental Expert/Hydrogeologist/ Team Leader Credit Officer Depot Manager-Kisumu Depots Manager Area Assistant Chief Quality Assistant Physical Planner Representative Representative Quality Assistant Manager QEHS Manager HSE Advisor/Study team Deputy DPHO Environmental team Expert/Study Study

Organization
Panafcon Ltd Chairing

2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Alex Wanyonyi Joash Oloo Lawrence Oloo Nashon Opiyo Paul Ombok John W. Simiyu Felix Omondi Oginga J. Odhiambo Eunice A. Sydede Jerry Oduor Daniel Oyile John A. Mageto Elijah Oyolla Kennedy Kijana

Kenya Industrial Estates Ltd KenolKobil Ltd KenolKobil Ltd Provincial Administration (Town Location) United Millers Ministry of Lands DDO Kisumu East DDO Kisumu East Peche Foods Nyanza Club (Golf Section) KenolKobil Ltd Panafcon Ltd Ministry of Services Panafcon Ltd Public Health

APOLOGIES S/No. Name 1. Weldon Byegon 2. 3. 4. 5. Joseph Okumu Kenneth Werimu Susan Mwei Willis Onyina

Designation Depot Manager-Kisumu Manager-Kisumu International Airport Centre Director-Kisumu Silo Manager-Kisumu Area Chief

Organization Total Kenya Kenya Airports Authority Kenya Marine and Fisheries Research Institute National Cereals & Produce Board Provincial Administration (Town Location)
June 2012

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

PANAFCON Ltd.

Agenda The following Agenda was adopted. 1. Opening prayer. 2. Introduction of the participants. 3. Purpose of conducting the Public Consultation Meeting with relevant stakeholders. 4. The proposed construction of an LPG Filling Plant in Kisumu by KenolKobil 5. Views of the participants on the proposed LPG Plant 6. Closing Remarks by the Consultant 7. A.O.B Min. 1/11/05/12: Opening Prayer The meeting began at 1045 by a word of prayer from one of the participants. Min. 2/11/05/12: Introduction of the participants
Opening remarks was made by the chair and welcomed the participants to the meeting by asking each participant to introduce themselves stating their names and the organizations they represent.

Min. 3/11/05/12: Purpose of conducting the Public Consultation Meeting with relevant stakeholders
The purpose of this meeting is to ensure that all stakeholders and affected persons are involved in the project development and to fulfill the legal requirement of informing the stakeholders about the intended project in order to identify any issues/concerns related to the project that requires attention during project implementation. The meeting was also to provide information to the stakeholders and affected communities so that appropriate steps are taken individually or collectively to assist putting in place appropriate mitigation measures.

Min. 4/11/05/12: the proposed construction of an LPG Filling Plant in Kisumu by KenolKobil
KenolKobil Ltd intends to construct a LPG Plant at KenolKobil Kisumu Depot. The Proposed LPG Plant will have the following components: Installation of 8 Mounded 54MT Tanks and all associated Civil Works Installation of Filling Station and related conveyor system with the construction of a filling hall Concreting of all driveway within the plant Construction of Office and Ablution Blocks Installation of Fire Fighting System for the entire plant and construction of a fire water storage tank Kisumu region is the second largest consumer of LPG after Nairobi. LPG is an alternative energy source to charcoal and firewood and is cleaner than the rest of other fuel sources. The construction activities of the proposed LPG Plant falls in the category listed in the Second Schedule of EMCA as projects that must undergo EIA Study under Item 10 Management of Hydrocarbons including the storage of natural gas and combustible or explosive fuels. The EIA Study will be carried out in accordance with the Environmental Management and Coordination Act (EMCA) 1999 Section 58 and the Environmental (Impact Assessment and Audit) Regulations of 2003 Legal Notice No. 101.

To this end, PANAFCON Ltd (the consultant) has been awarded the tender to undertake the aforementioned study.
Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071 June 2012

PANAFCON Ltd.

Min. 5/11/05/12: Views of the participants on the proposed LPG Plant


The following are the views and concerns of the stakeholders during the meeting and appropriate response by the both the proponent team and the Consultant. Therefore in order to enrich this study, the consultant should take note of the observations described in the table below S/No. 1. Comments Stakeholders by the Response by the Proponent/Consultant
Petroleum industry players have in the recent past formulated an Emergency Response Plan (ERP) involving multinationals, St. Johns Ambulance, the Police and the local community along the northern corridor from Mombasa to Malaba. The ERP team are trained on all emergency related to petroleum accidents. The trucks carrying LPG as opposed to the one carrying other petroleum products are specialized as the containers are thicker and fitted with pressure release valves that open and release gas and close. It is also easier for a petroleum tanker to roll and burst in flame than for an LPG gas tanker. The drivers of the LPG tankers are also highly trained by Institute of Petroleum so that their competence in terms of emergency is elevated. LPG will be brought in bulk and will employ closed system technology that will ensure minimal if not eliminate leakage. LPG is not hazardous. There are no wastes arising from the storage and filling of LPG. The only wastes shall arise from the normal depot operations.

What are the risk precautions during the bulk transportation of LPG incase of fire outbreak?

2.

What are the wastes associated with LPG Storage and filling?

3.

In case of leakage, to what extent can it be detected as it may be a fire risk to the neighbouring establishments?

4.

The access road is narrow and in case emergency evacuation can be a challenge due to congestion. How shall the waste water be managed?

5.

Emergency Response shall be employed; however ERPs are not 100% efficient. Mitigation measures shall be put in place such as training of the neighbours in firefighting techniques. LPG is heavier than air and in case of leakage it may not affect the neighbouring facilities as it will be contained inside the depot facility through the application of appropriate technology such as: Leak and smoke detectors placed in strategic places and certified by Energy Regulation Commission inspectors. Automatic water sprinklers in case the leak has been detected Construction of fire wall around the mounded tanks ERP shall be implemented involving KenolKobil and the neighbouring facilities representatives and the local community. The access road from the main Old Airport Road leading to and from the depot shall be improved for the smooth entry and exit of tracks and in case of emergency evacuation. Old Airport Road leading to KPC shall also be improved and renovated by the Northern Corridor Improvement Project implementers as the road has adequate road reserve. The waste water shall be passed through the oil/water interceptor for pre-cleaning before being passed to the public drain to conform to the NEMA requirement of discharge into a public drain.
June 2012

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

PANAFCON Ltd.
S/No.
6.

Comments by Stakeholders

the Response the ProponenUconsultant by


The Proponent proposed incorporate localcommunity has to the through provincial the administration the ERp and also liase in with Petroleum lnstituteof East Africa (plEA) to offer them training Project alternatives I termsof sitelocation be looked in the will at ESIAreport explored. and Alsoreferto euestion 3.

7.

What measures haveyou put in place to train the local community aroundthe project area? The project is welcomeand the investment goodand in is particularly the peopleof for Nyanza, however the proponent should look for another as the current site site is sandwiched between established industries who may suffer lossesin case of fireoutbreak.

Min. 6/11/05/12:Closing Remarks by the Consultant The Consultant thanked participants theiravailability the meeting the for for and looked forward for theircontinued participation towards ESIAprocess the proposed the for project. Min.7l11l05ll2: AOB There being other no business meeting the ended 1320Hrs. at Authorized circulation for bv:

ru",""d9fttgft9YtekO posirion: strSTL!D_

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o",", ...VI*S\\ ,

Environmental lmpact Assessment Study ReporVProposed plant,Kisumu KenolKobil BulkStorage Filling LPG and Pan-12-071

June2012

PANAFCON Ltd.

Annex 6: Public Consultation Attendance Register

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

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PANAFCON Ltd.

Annex 7: Land Title and Project Approval Plan

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

PANAFCON Ltd.

Annex 8: Projects Budget Estimate

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

ffiffienolil(obilm
PROPOSED LPG PI-ANT AT KISUMU
FOR KENOL KOBIL LIMITED

CONSTRUCTION COST ESTIMATE

Architect I(enol I(obil P O Box 44202- 00100, NAIROBI

Ouantity Surveyor Afticost l(enya P O Box 67381, 00200, NAIROBI

Civil/Structural Engineers I{enol I(obil POBox 44202-00100, NAIROBI

ServicesEngineers I{enol I(obil POBox 44202-00100. NAIROBI

l$if'AY 2OI2

BUILDING WORKS

PROPOSED LPG PLANT.KISUMU


Item Description

Sub-total

Total( Kshs.)

BUILDINGS

1.00 OFFICEBLOCK Substructures Reinforced concrete substructures Roofingworks Finishes sanitary and appliances accessories and GUARDROOMHOUSE 2.00 Substructures Superstructure Finishes :Painting Decoration and LPG SHED 3.00 Substructures Finishes fencing and PUMP HOUSE: 4.00 Substructures Superstructure Finishes :Painting Decoration and 1,609,806.79 2,771,825.20 3,781,631.99 117,224.87 337,118.49 2r9,929.40 674,272.76

r14,725.r0
1,512,671.00 1,013,800.00 1,1 8,191 0 8 ,0 3,829,387.10

235,84L90 273,524.63 425,895.00


935.261.53

TOTAL CARRIED TO SUMMARY

9,220,553.37

MECHANICAL INSTALLATION WORKS

PROPOSED PLANT. LPG KISUMU

Item I

Descrinfion

Qtv I 5

Unit Item

Rate

Total ( Kshs. )

c&F Portof Mombasa 1.00 llrc sronAGE TANKS


I

32.843,00s.15

l54MT LPG Tank Mounded completewith set of fiuings


I

2.00

3.00

Telemetry lTank (CIVR) WaveRadar Gauge lGuided Remote Reader Electrical at Panel IGWR I S Temperature Transm itter I Hressureransmltter I ll5 I Valves Accessories & lTank lsolation Fill Connection lTank PumpSuction Connection I Loading Line lfruct v apourl ransrer Llne I Bypass Return lLiquidPump lGalvanised Access Ladders MarinePaint ISpecialised
I

Item 5 5 5 5 Item 5 5 5 5 5
z

3,409 | .7 ,61 3

1,868,312.50

25
Item

4.00

Fail SafeHeads& Accessories lActuated Fill Connection lTank Suction Connection lPump Loadins Line lTruck VapourTransierLine Liquid PumpBypass Return TruckLoading/ OffloadingLiquid Return TruckLoading/ OffloadingVapourTransfer 4" Liquid Tank Line Manifoldfrom Tank to Pump Suction 4" TankManifoldAssy. 4" Strainer 4" SightGlass Assy 4" Dial Face Pressure Gauge Assy 4" Firesafe Isolation Valve 3" Firesafe Isolation Valve 3" SSFlexible PumpInlets - 1000 3" PumpAssy& Accessories L/M Capacity. Corken 1021E103 l lKW EXD Motor c/w 3" PumpDischarge Line from Pumpto Filling Container 3" Sch40 Pipingupto72mIncl. 3" Firesafe Isolation Valve 3" SSFlexible PumpOutlets 3'Non-Return Valve Pressure ReliefValve Carried to Collection

588,448.05

5 5 5 5 5 2 2

5.00

Item I 1 I I I 2 2
ltem

2.726.553.0s

6.00

1 , 7 3 1 ,1 .1 5 59

7.00

Item
I J

| ,069,217 .50

2 2 5
45.236.660.53
I

LPG KISUMU PROPOSED PLANT,


Item Description Qtv

Unit
Item

Rate

Total ( Kshs.)

8.00

2" PumpBypass Line 2" Sch40 Piping upto72mIncl. 2"Firesafe Actuated Ball Valve Pressure ReliefValves 2"Differential Bypass Valve 2 Station Truck Liquid Offloading Line to Meter 3" 2" Sch40 Pipinguptol2m Incl. 3" Sch40 Pipinguptol2m Incl. 2" NPTX 6mHose Assy 2" NPT Female MantekDry BreakCoupling 2" Male MantekDry Break- BreakAway Combination Coupling 3" InlineStrainer 3" NPT SightGlass Indicator 3" Fire Safe Ball Valve 2" Firesafe Actuated Ball Valve Pressure Assy. Gauge

6s7 ,00s.56

I I

2
J

I Item
z z

9.00

1,656,361,95

2 z 2 2 2 2
z

2 X ElectronicOffloadingMeter with Data 10.00 Transmission Capture & l-1l2" Turbine Meter 2" Vapour Eliminator 2" DifferentialValve 2 Station3" Truck Liquid OffloadingLine from Mete to Tanks 11.00 l" Sch40 Pipingupto72mIncl. l" FireSafe Ball Valve Pressure ReliefValves 12.00 !" Liquid Truck LoadingLine from Meter to Truck. l" Sch40 Pipingupto6m Incl. J" FireSafe Ball Valve J" NPT SightGlass Indicator t3.00 lank Compressor Liquid Transfer& Fittings ]" Sch40 Piping upto72mIncl. l" Fire Safe Ball Valve

Item
a

3 , 28 , 1 3 0 . 0 0 3

2 2

Item

869,903,00

Item
I
+
A

463,842.20

Item l0
z

904,861.95

14.00 ! X Truck VapourTransferLine & Fittings


!" NPT X 6m HoseAssy l" NPT Female MantekDry BreakCoupling l" MaleMantek Dry Break- BreakAwayCombination )oupling l" Firesafe Actuated Ball Valve l" Firesafe Valve Ball l" Sch40 Pipingl2m i" Sch40 Pipins upto60mIncl.
Carried to Collection

Item

2,011,236.95

2
z

2
z 4 2 l0

9.801.341.61 2

LPG KISUMU PROPOSED PLANT,


Item
Description

Otv

Unit
Item

Rate

Total( Kshs. ) 76,402.50

15.00 Vapour EliminatorReturn Line & Fittings 3/4"NPT GlobeValve 3/4" Sch80 Pipingincl. 12m

2 1 Item 2,831,401.50

& Installationc/w Vapour Recovery Fittings 16.00 LPG Compressor Motor 491-107 1lKW 3Phase Corken c/w Air & 17.00 Compressed System Fittings 250 Air Compressor Litre Air Piping Network Piping upto204mIncl. fittingsetc. l/2" Galvanised Air Piping Valves Air PipingActuatorConnections 18.00 Fire FightingNetwork SafetySignSets, Smoking, Entry,Cell Phone, Naked Lights 9KG Dry PowderFire Extinguisher FireExtinguisher 50KGDry Powder DieselEngineFire PumpAssy.& Controls 19.00 4 Scale Container System Automatic Electronic FillineScale Semi Check Scale DataCapture 20.00 DecantSystem I TonneStorage Tank Pressure LevelControlSystem & Pipingfrom Decanting Storage Interconnecting to Mechanical Design Construction the Installation & for ofthe above Mechanical LabourEFG TeamEstimated DaysMan Days asfollows (2) Welders PipeFitter(2) I X SiteForeman I X SiteEngineer LocalLabour 2

Item

1,955,987.50

ltem 5 5 2 I Item 4 I I I I I

9,099,442.55

4,111,623.50

Item

2,305,602.00

21.00

Item

I 1.189.000.00

75
t)

50 30 75

Carried to Collection
5

31.569.459.55

LPG KISUMU PROPOSED PLANT,


Item
Descrintion Qtv

Unit

Rate

Total ( Kshs.)

FromPageI mPage2 FromPaee3

45,236,660.53 9,801,341.61 31,569,459.55

TOTAL CABRIED TO SUMMARY

86,607,46t.69

ELECTRICAL II{STALLATION WORKS

PROPOSED LPG PLANT, KISUMU

Item

Description

Qty

Unit

Rate

Total( Kshs. )

2.00 ELECTRICAL WORKS A worksin OfficesandToiletBlocks, Electrical LAN/DatalTelephone and KPLCRelocation Cables poles of line KPLC service TelkomRelocation polesand O/H cables of Generator supplyandinstallation

2,000,000.00 3,000,000.00 600,000.00 200,000.00 2,505,000.00

B C D E

TOTAL CABRIED TO SUMMARY

8,305,000.00

MAIN SUMMARY

ITEM

DESCRIPTION LPG PLANT. KISUMU PROPOSED CONSTRUCTIONCOSTESTIMATE MAIN SUMMARY

KSHS

A
D

BuildingWorks Installation works Mechanical Electrical Installation Works

9,220,553.37 86,607,46r.69 8,305,000.00 104,133,015.06

V.A.T ADD: 160/o TOTAL PROJECT COST

16,661,282.4r t20,794,297.47

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Annex 9: Terms of Reference (ToR)

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

PANAFCON Ltd

Utility Provision (Water Supply & Sewerage) Project Lifespan and Decommissioning

Task 2 Description of the Environment Collection and Evaluation of Site Baseline Data Evaluation of the anticipated changes before project commences: Physical Environment: Topography Climate and Meteorology Ambient Air Quality Geology Soils Surface Water Resources close to/within the project area (Lake, Streams etc) Groundwater Resources (Boreholes, Wells, Springs etc) Sources of Existing Air Emissions Existing Structures at the Site (Commercial and Residential Buildings etc) Existing Infrastructure (Road Network, Water and Sewerage Facilities) Any Existing Water Pollution Discharges Landscapes (Visual Impacts, Compatibility with surrounding area) Biological Environment: Flora (Existing vegetation that shall be affected) Fauna (Any potential wildlife that shall be affected) Any rare or endangered species Sensitive Habitats (Wetlands etc) Any significant Natural Sites Species of Commercial Importance Species to become nuisances, vectors or dangerous. Socio-Economic and Cultural Environment Present human settlements Projected Population Growth Current Land Use and Planned Development Activities Employment Opportunities Current Commercial Activities within the project Area Cultural Properties Task 3 Legislative and Regulatory Framework Description of Existing Pertinent Regulations and Standards governing the project: Environmental Quality Health and Safety of Staff and Local Residents during the project cycle (During construction and operation phases) Protection of Sensitive areas and any endangered species Land use Planning and Control Rights of indigenous peoples and any relevant Authorities at local and regional level Particular attention shall be paid to the following legislation: EMCA 1999 and Subsequent NEMA Regulations Environmental Management and Coordination (Water Quality) Regulations, 2006 Legal Notice No. 120 Environmental Management and Coordination (Waste Management) Regulations, 2006 Legal Notice No. 121
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Environmental Management and Coordination (Noise and Excessive Vibration Pollution Control) Regulations, 2009 Environmental Management and Coordination (Air Quality) Regulations, 2008. Environmental Management and Coordination (Wetlands, River Banks, Lake Shores and Sea Shore Management) Regulations, 2009 Legal Notice No. 121 Environmental Management and Coordination (Conservation of Biological Diversity and Resources, Access to genetic Resources and Benefit Sharing) Regulations, 2006. Water Act 2002 Work Injury Benefit Act 2007 Local Government Act Cap 265 Public Health Act (Cap 232) Traffic Act (Cap 403) The Occupational Safety and Health Act 2007 Factories And Other Places of Work act (Cap 514) Physical Planning Act (Cap 286) Task 4 Potential Impacts of Proposed Project The study shall distinguish between the following impacts: Significant Positive (Benefits) and Negative (Loss) Impacts Direct and Indirect Impacts Short Term and Long Term Impacts Cumulative and Irreversible Effects The evaluation of the above impacts shall look into: Erosion of exposed soils during excavation and siltation of water resources near the facility; Dust emission during construction; Noise emission from construction machinery; Potential safety risk associated with the construction activities; Borrow pits for raw materials such as murram and other construction aggregates; Potential safety risks associated with leakage of the LPG resulting in fire. Solid and Liquid (Sewerage) Waste generated during construction and operation phases Identification of unavoidable or irreversible impacts and any information gaps shall be done. As much as possible, impacts shall be described quantitatively in terms of environmental costs and benefits and assignment of economic values where feasible. Task 5 Analysis of Alternatives to the Proposed Project Description of alternatives identified during the course of developing the proposed project shall be elaborated and identification of other alternatives that would achieve the same objective provided. Project Alternatives evaluation shall cover the following: Taking no action to construct the proposed LPG Plant; Alternative to location/site for the LPG Plant; Alternative to methods of construction including costs and reliability; Alternative to designs to improve safety and minimize impact. Project Alternatives shall be compared in terms of: Potential Environmental Impacts Capital & Operating Costs Suitability under local conditions
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Institutional, Training and Monitoring Requirements. The alternative of not implementing the project shall also be reviewed and highlighted in order to demonstrate environmental conditions without the Project. Task 6 Project Management and Mitigation Measures Recommendation of Feasible and Cost-Effective Mitigation Measures to prevent or reduce significant negative impacts to acceptable levels shall be provided. The study shall estimate the impacts and costs related to the measures and the institutional and training requirements to implement them. The Consultant shall prepare a management plan that shall include proposed work programs, budget estimates, schedules, staffing and training requirements and other necessary support services to implement the mitigation measures. The Environment Management Plan (EMP) shall be elaborated through the development of an EMP Matrix. These will include the following: Where possible, selection of project alternatives; Phase construction activities to minimize transport disruption; Use of appropriate technologies to minimise environmental degradation and other impacts. Develop emergency evacuation plans and procedures. Develop comprehensive plans for location of secondary development. Use controlled construction techniques. Put in place appropriate safety measures like adequate fire fighting gear and safety gear Task 7 Identification of Institutional Needs to Implement Environmental Assessment Recommendations

The Study shall review the Authority and Capability of Institutions at Local, Provincial/Regional and National Levels in the implementation of EIA recommendations Task 8 Development of a Monitoring Plan

The study shall prepare a detailed Plan to monitor the implementation of proposed mitigation measures and the impacts of the proposed project both during construction and operation phases. In the plan, an estimate of capital and operating costs needed for implementation shall be included. Task 9 Stakeholder Consultation As much as possible the views of all Project Affected People (PAPs) and Stakeholders shall be collected through the following forums: Questionnaires Interviews Public Consultation Meetings (Public Consultation Meeting Minutes) The stakeholders to be consulted for their views shall include the following: Local Community Representatives Local Commercial Business Representatives
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Relevant Government Departments (Lands, Forest, Water, Health, Physical Planning, Public Health and Works) CBOs and NGOs Local Administration ( Asst Chiefs, Chiefs, DOs, Councillors and DC) Local Authority Department Local NEMA representative KenolKobil Representative Task 10 Project Decommissioning The Project shall evaluate the decommissioning phase of the Project in order to restore the site to the status before project implementation. This will entail the following: Demolition of the Installed Structures and Buildings Removal of all Cylinders and Gas Filling Equipment and disposal of all the recovered material at approved sites. Removal, Transportation and Disposal of all the Demolished Materials (Stones, Scrap Metals and Other Materials) at approved sites Removal of Underground Utilities Excavation and Treatment of excavated soil Bringing in of Clean Soil to replace excavated soil Landscaping of the site and Planting of Indigenous Grass and Plants Obtaining approval certification from the relevant authorities on successful completion of the Decommissioning, Demolition and Restoration Plan. Task 11 EIA Study Report Preparation The EIA Study Report shall be concise and limited to significant environmental issues established. The main text shall focus on findings (desk top study and site field visits), conclusions and recommended actions, supported by summaries of collected data and citations of any reference. The EIA Study Report shall include the following: Executive Summary Covering brief project description, EIA study Methodology, Key Findings, Mitigation Measures, Project Monitoring, Conclusions and Recommendations including Decommissioning. Introduction Project Proponent Identification Objectives and Scope of the Proposed Project Description of the Proposed Project Project location EIA Study Methodology Desk Top Study Field Survey & Stakeholder Consultation Environmental Policy, Legal and Administrative Framework Review of the Environmental Policy and NEMA regulations Review of existing legislation and its relevance to the proposed project

The Project
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Description of Proposed Project Site Location, General Layout, Size and Capacity Pre-Construction Activities Construction Activities (Staffing and Support) Construction Materials to be used Facilities and Services to be provided (onsite and off site) Special Facilities for Solid and Liquid Waste Management (Handling and Disposal) Operation and Maintenance activities Utility Provision (Water Supply & Sewerage) Project Lifespan and Decommissioning Description of the Environment Physical Biological Socio-Economic Significant Positive & Negative Environmental Impacts Positive Impacts Provision of LPG to the local commercial and residential population and beyond Economic growth will be inspired by the readily availability of LPG Provision of LPG to the neighbouring regions. The Depot will have an improved view and the area will enjoy improved aesthetic property. The Depot will generate more job opportunities for those who will be operating the LPG Plant. There will be increased economic activities as a result of the LPG Depot; Guaranteed availability of LPG will improve livelihood of the communities in the region through use of clean and affordable energy. Generation of Direct and Indirect Employment Opportunities Negative Impacts Erosion of exposed soils during excavation and siltation river valleys, streams and other water sources; Time of Construction to factor in possibility of interference by rain (disruption of the construction and accelerated erosion); Safety risks and accidents to the construction workers; Solid and liquid wastes (including oils from machinery and trucks) generated during construction activities; Generation of dust during site excavation in preparation for construction activities; Erosion of surface soil causing siltation in river valleys and other water sources; Generation of elevated noise levels from machinery and vehicles. Potential risk of fire if there is accidental release of LPG Analysis of Project Alternatives Mitigation Measures (Mitigation Management Plan) Environmental Monitoring Plan Stakeholder Consultation and Involvement Conclusions and Recommendations List of People Contacted During the EIA Study
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List of References Appendices NEMA Approved ToR Panafcon NEMA EIA Certificates and Licence Structured EIA Survey Questionnaires Environmental Impact Survey Matrix Charts Minutes of Public Participation Meetings List of Persons Contacted during the EIA Study Selected Photographic Plates

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Annex 10: Photographic Plates

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

PANAFCON Ltd.

Photo 1: Part of the site for the proposed LPG Plant Depot

Photo 2: Access Road to the LPG Plant Site

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

PANAFCON Ltd.

Photo 3: The KenollKobil QEHS Manager and a Consultant during the Meeting

Photo 4: The Area Assistant Chief and other Stakeholders at the Meeting

Environmental Impact Assessment Study Report/Proposed KenolKobil LPG Bulk Storage and Filling Plant, Kisumu Pan-12-071

June 2012

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