Globeleq Malindi

MIGA’s due diligence review considered the E&S management planning process and documentation for the Project and identified gaps (if any) between these and MIGA’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable time period, are summarized in the paragraphs that follow and, in the E&S Action Plan (ESAP) attached to this ESRS. Through the implementation of these measures, the Project is expected to be designed and operated in accordance with the Performance Standards. Key E&S issues associated with the Project business activities are summarized in the paragraphs that follow. 

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

Environmental and Social Assessment and Management System: The Project sponsor, Globeleq, has developed an integrated management system (‘IMS’) that covers health, safety, environment, security and social (‘HSESS’) aspects. The IMS describes the system by which HSESS risks are managed and articulates the organizational requirements to implement the management system across the Globeleq portfolio for both project development and operations, including the Project. The HSESS IMS is supported by forms and templates for its implementation (e.g. permit matrix, legislation register, document register, incident reporting form, training matrix, audit and inspection protocols) and is reviewed regularly. All Project employees and contractors are required to adhere to Globeleq’s IMS. At the Project level, MSG is implementing an operations IMS documented in the HSESS IMS manual and an HSESS Operational management plan for the O&M phase. The operations HSESS IMS is in line with the Performance Standard (PS) requirements.  

Policy: Globeleq has a corporate HSESS policy which describes its commitment to the protection of the environment and people, and the safety of its employees. The policy requires compliance with applicable laws and relevant health, safety and environmental standards. MSG has developed a Project specific HSESS policy in line with Globeleq’s corporate HSESS policy and the Performance Standards (PS). 

Identification of Risks and Impacts: An Environmental and Social Impact Assessment (ESIA) was undertaken in November 2015 for the Project. The ESIA covered construction and operation phases and was prepared in line with Kenyan legislation and the ESIA license was obtained in June, 2016. MSG has also developed an Environmental Aspects and Impacts register as part of its operations HSESS IMS. The Environmental Aspects and Impacts register is reviewed annually and includes an assessment of the environmental impacts arising from activities undertaken by MSG, their significance and control mechanisms required to address the risks. 

MSG developed and is implementing a  gender-based violence and harassment (GBVH)  sub-plan that includes measures to manage the risk of GBVH in communities surrounding the Project, and in the workplace. 

Management Programs: Project specific management sub-plans have been developed to support the operations HSESS IMS. These include, but are not limited to: contractor management, communications participation and consultation, pollution prevention and control, noise management, water and wastewater management, waste management, stakeholder engagement, grievance and issues redress mechanism. The sub-plans include several templates and trackers to assist with the implementation of the Project’s operations HSESS IMS. The supporting sub-plans are consistent with Good International Industry Practice (GIIP), the performance standards and relevant WBG EHS Guidelines. 

Organizational Capacity and Competency: MSG has developed an organizational structure for the Project that defines roles, responsibilities, and authority to implement E&S requirements with clear lines of responsibility and authority designated documented in the resources, roles, responsibilities and authority sub-plan. Key E&S staff appointed include a Social Manager and Health, Safety and Environment (HSE) officer responsible for the implementation of the operations HSESS IMS requirements. MSG has also implemented an HSE committee which is made up of members of the operations, maintenance and administrative departments, which collectively provide a holistic view of all aspects of MSG’s plant operations and management. Additional support to the Project team is available from Globeleq’s corporate Environmental, Social and Governance (ESG) team.  

Emergency Preparedness and Response: Emergency preparedness and response is captured in the Local Crisis Response and Fire Preparedness sub-plan. The Local Crisis Response and Fire Preparedness sub-plan considers risks related to fire emergency, significant environmental damage, force majeur event causing damage to the grid, grid outage, major systems failure, aggressive industrial action, malicious damage to the grid, criminal behavior by employee and third parties, extortion, kidnap and ransom, intrusion into office or facility, international incident, major accident at site with fatality or severe injuries and others. Emergency drills are undertaken twice a year. 

Monitoring and Review: The HSESS Operational management plan includes requirements to monitor and measure key characteristics of the plant’s operations and activities that can significantly impact HSESS, well-being of personnel or the community. The following sub-plans have been developed in support of the HSESS Operational management plan related to monitoring and review: (i) monitoring, measurement and evaluation of compliance; (ii) compliance obligations: legal and other to manage environmental, health and safety compliance; (iii) management system audits. In addition, the Project will be required to submit annual E&S monitoring reports to MIGA.  

Stakeholder Engagement, External Communication, and Ongoing Reporting to Affected Communities: The HSESS Operational management plan includes requirements on communication, participation and consultation, which includes internal communications, workers grievance mechanism, external communications, community grievance and issues redress mechanism. The following sub-plans have been developed in support of the HSESS Operational management plan related to stakeholder engagement: stakeholder registration and mapping, stakeholder engagement implementation, stakeholder engagement – conduct meeting. In 2023 Project undertook a total of 40 community engagements. The engagements consisted of mainly communicating the 2023 community support areas and implementation as well as the 2024 Socio-Economic Development (SED) program.  

Grievance Mechanisms: A Grievance and Issues Redress Mechanism (GRM) has been prepared and is being implemented as part of the operations HSESS IMS. Surrounding communities are aware of the GRM and how to raise grievances. During the stakeholder engagement meetings in 2023 the Project communicated its grievance mechanism procedure. The Project has not received any grievances from the local community in 2024. 

 PS2:  Labor and Working Conditions 

The Project employs 11 permanent workers and 7 full time subcontracted security workers as well as 7 part-time subcontracted workers, on average throughout the year to handle vegetation control and provide other site support services. All workers are Kenyan nationals. 

Human Resources (HR) Policies and Procedures: As part of the project documentation, MSG has developed HR policies and procedures which articulates the Project’s commitments to labor and working conditions and sets out minimum requirements on labor management during O&M, including i) a worker code of conduct, ii) recruitment, iii) local content, iv) induction, v) worker disciplinary management, vi) grievance management, vii) GBV/SEAH and (viii)  the right of workers to join trade unions. 

Working Conditions and Terms of Employment: All workers, including sub-contracted workers receive a written contract of employment which include working conditions and terms of employment such as: (i) remuneration; (ii) working hours; (iii) leave requirements; (iv) medical assistance and others. Workers reside offsite, in Baolala Centre and other adjacent Villages.  

Non-discrimination and Equal Opportunity:  MSG’s code of business conduct includes provisions to promote the fair-treatment, non-discrimination, and equal opportunity of workers. The Project commits to not base employment decisions on personal characteristics such as gender, race, nationality, religion, age, HIV status, sexual orientation or disability.  

Grievance Mechanism: MSG has in place a worker’s grievance redress mechanism (GRM). The GRM applies to all project workers including those employed by sub-contractors. The GRM is made readily accessible to workers. The GRM includes information on how to handle complaints involving GBV/SEAH such as respecting confidentially and having a female point of contact receiving GBV/SEAH grievances. 

Child and Forced labor: The MSG’s minimum age of employment for the Project is 18 years of age. The Project also prohibits the use of forced labor.  

Occupational Health and Safety (OHS): MSG has developed a general Health and Safety (H&S) management sub-plan and a general H&S precautions sub-plan that incorporates occupational health and safety (OHS) measures, in line with WBG EHS guidelines in relation to activities undertaken by the Project.  MSG commits to provide a safe and healthy working environment. In addition, MSG as also developed a contractor management sub-plan that defines the methods by which contractors will be managed on-site with respect to Health, Safety and Environmental compliance for the duration of their project / maintenance work / services. Since the start of operations there have been no fatalities, no lost time injuries and no restricted work cases. 

Workers Engaged by Third Parties: MSG may hire service providers for security, cleaning and maintenance works. For workers employed by third-parties, MSG has developed a contractor management sub-plan to that guides MSG in overseeing the contractor’s health, safety and environmental performance. Contracted workers have access to MSG’s workers grievance mechanism if not available through their own companies.  

Supply Chain: Globeleq operates group level “Common Procurement Procedures” that govern the relationship between the Group and its suppliers, and a Code of Business Conduct that specifies the Group’s commitments and expectations of its suppliers which applies to all projects including the Malindi Project. In addition, Globeleq has a Due Diligence method in place for key suppliers since 2023. The standard general terms and conditions of purchase governing the relationship between Globeleq and its suppliers includes representations and warranties that the supplier shall comply with fundamental human rights, in particular the prohibition to use child labor or any other form of forced or compulsory labor among others in line with PS 2. Since the plant is operational, there is no need for further purchasing of panels. The current panels are in warranty. 

PS3:  Resource Efficiency and Pollution Prevention 

During O&M, the main issues relate to water use and management, waste management, and visual impacts. Potential nuisance impacts related to the broader community are expected to be limited. The closest household to the Project site is approximately 100 m from the fence boundary.    

Resource Efficiency 

Energy requirements are drawn from the energy generated by the Project. At night the site control room is supplemented by energy from the grid. There is a back-up diesel generator which provides power in the event of a power outage.  

Greenhouse Gases (GHG): As this is a solar project, the GHG emissions associated with the O&M phase of the Project are minimal. Therefore, the Project will not be required to quantify and report the CO2-equivalent emissions as required under PS 3. The Project results in an avoidance of 44,500 tCO2eq/year. 

Water Consumption: Water for the Project is supplied by Kilifi Mariakani Water and Sewerage Co. Limited (KIMAWASCO). In addition, the plant has back up water storage tanks which hold water temporarily. The Project needs approximately 60 m3 of water per month during O&M for domestic purposes (drinking, flushing of toilets and cleaning of floors).  MSG has developed a water and wastewater management sub-plan for operations. The sub-plan adopts a holistic view to water resource management and addresses water consumption, quality and pollution. MSG will review the water and wastewater management sub-plan to include a water balance diagram to reflect the site’s water use and identify any potential water losses/ leaks (ESAP #1). 

Pollution Prevention 

MSG has developed a pollution prevention and control sub-plan that describes the minimum requirements to manage potential pollutant emissions, that could occur in case of waste and hazmat mismanagement, or during environmental incidents, such as spills. This includes: (i) actions and measures to eliminate or avoid pollutant release; (ii) pollution prevention measures; (iii) good housekeeping; (iv) secondary containment and (v) drainage systems; (vi) effluent discharges; (vii) noise pollution; (viii) employee training; (ix) spill clean-up and disposal and (x) incident reporting. 

Air and noise emissions: There are no significant sources of air and noise at the plant. The primary sources of air and noise emissions are from vehicles and the standby generator. The standby generator has silencers installed to attenuate noise levels. MSG has developed a Noise management sub-plan, which among others includes noise monitoring program. 

Wastes: Waste generation during O&M is minimal; the project generates about 20 tons (t) of non-hazardous waste and approximately 0.5 tons of hazardous waste a year. Non-hazardous waste comprises mainly organic, paper and packaging waste and hazardous waste is mainly used oil and oil-contaminated materials. Wastes are segregated on site and disposed of by a licensed contractor. Wastewater from the sanitary facilities and cleaning activities is channeled to the septic tank and also disposed though a licensed contractor. During MIGA’s site visit, good housekeeping and waste management practices were evidenced. MSG has developed a waste management sub-plan supported by checklist and templates as attachments. Per ESAP #2, the waste management templates will be revised and updated to reflect waste generation as a result of MSG activities. 

Hazardous Materials Management: The following hazardous materials are used during O&M: (i) grease in the solar tracking system; and (ii) domestic cleaning products. These chemicals are stored in small quantities on site. Other hazardous materials used include fuels and lubricating oils, but these are not stored on site.  Sealed transformer units are in use and are replaced as a whole if needed. No transformer oil is drained on site.  The Pollution Prevention and Control sub-plan includes measures to minimize impacts in case of incidents. Handling of hazardous materials is captured in the Work Permits and Lock out and tag out procedure. During MIGA site visit, hazardous materials were adequately stored and managed. 

Pesticide Use and Management: The use of pesticides and herbicides is not anticipated for the Project.   

PS4:  Community Health, Safety and Security 

Community Health and Safety: The closest community is located approximately 1 km from the Project site.  The Project site is fenced and public access to the plant is prevented. Traffic impacts are reduced compared to the construction phase as vehicles are only required to transport employees to work on a daily basis. Traffic may be slightly increased during maintenance activities. MSG has developed a Traffic and Transport Management (TPMP) sub-plan to manage impacts resulting from traffic and transportation including measures and controls for the safe movement of vehicles for the protection of workers and the general public. 

Security Personnel:  Site security is managed by private security forces. MSG will develop a security management sub-plan (SMP) (ESAP #3) in line with PS 4 requirements. The Social Manager and Health, Safety and Environment (HSE) officer is also responsible to oversee the activities of the third-party security forces. 

PS5:  Land Acquisition and Involuntary Resettlement 

MSG acquired 184 ha of land for the Project from the Weru Group Ranch (WGR) in 2015. The acquisition of land resulted in physical and economic displacement of 17 Project Affected Persons (PAPs) that had assets on the land.  

Compensation and Benefits for Displaced Persons: Out of the 17 PAPs, 9 households were resident on site and 8 were not. The 8 non-resident households comprised a church, a demolished structure, an unused kiosk and five abandoned-undefined or partially completed structures. A process of identifying the PAPs, valuation of their assets, signing of compensation agreements and payment of compensation for their movement off the land was undertaken by WGR in October/November 2017 in accordance with the national legislation. Following the involvement of Globeleq, there were immediate interventions to align the resettlement of the 17 PAPs with PS 5 requirements including the delay of the relocation of the PAPs, establishing a cut-of-date, stakeholder engagement and preparation of a Resettlement Action Plan (RAP). The RAP included: legislative context, overview of the activities undertaken prior to and during development of the RAP, socio-economic baseline, resettlement impacts, valuation and compensation, provision of compensation, transitional support and livelihood restoration, monitoring and evaluation, costs and budget. One PAP requested not to be included in the RAP, claiming formal land title – having also acquired the land from WGR. Negotiations between the PAP, MSG and WGR were undertaken and the process is now in court for resolution.  

Community Engagement and Grievance Mechanism: A series of engagements were undertaken as part of the RAP with County officials, community representatives and those living on the Project Site from November 2017 through to March 2018, to discuss the activities being undertaken etc. A public meeting (baraza) was held open to all PAPs with assets on the Project Site and their representatives on 4th December 2017. A resettlement committee was formed in December 2017 to discuss and agree concerns, raise grievances and act as a link between the affected households and MSG. Further engagements were also undertaken in preparation of the Livelihood Implementation Plan (LIP) and as part of the LIP completion audit. 

Resettlement and Livelihood Restoration Planning and Implementation: In addition to the RAP, the Project also develop a Livelihood Implementation Plan (LIP). The LIP built on the RAP to provide a detailed implementation plan for livelihood restoration measures based on further engagement with the PAPs. The LIP was implemented over a 3-year period between 2018 and 2021, after which a LIP completion Audit was commissioned in 2022.  

The completion audit verified whether all entitlements and commitments described in LIP were delivered; determined whether MSG’s efforts to restore the living standards of the project affected households (PAHs) were properly conceived and executed; and evaluated whether the mitigation actions described in the LIP had the desired outcomes.  Overall, the audit found many positive outcomes with the implementation of the LIP. The audit found that the livelihood restoration measures were relevant and appropriate to the needs of the PAPs. The LIP included some recommendations to enhance the effectiveness of the implementation of the LIP and these were completed in 2022 MSG continues to support PAPs through the socio-economic development (SED) program in four key areas: (i) health, (ii) professional development and job creation; (iii) education and (iv) climate resilience. SED interventions are revised on an annual basis determined based on the need of communities and the four areas of focus. During MIGA’s site visit, PAPs expressed satisfaction with the outcomes of the RAP and LIP.  

A Broad Community Support determination is not required for the Project.