REPUBLIC OF UGANDA E-386FINAL DRAFT REPORT

ENVIRONMENTAL ANALYSISFOR POWER IV EXTENSION

OWEN FALLS DAMUGANDA

SUBMITTED TO:UGANDA ELECTRICITY BOARD

AMBER HOUSEKAMPALA, UGANDA

SUBMITTED BY*:GEOMATRIC TECHNOLOGY CORPORATION

10875 MAIN STREET, SUITE 205FAIRFAX, VIRGINIA 22030

USA

AUGUST 31, 2000*

* The content of this document has been adjusted to include findings of the World Bank pre-appraisalmission of June 2000.

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TABLE OF CONTENT

EXECUTIVE SUMMARY 3

INTRODUCTION 3

ENVIRONMENTAL MONITORING PLAN 3

RECOMMENDATIONS 4

1.0 INTRODUCTION 5

2.0 STATUTORY FRAMEWORK 5

3.0 OBJECTIVES 6

4.0 METHODOLOGY 6

5.0 PROJECT DESCRIPTION 7

6.0 ENVIRONMENTAL ANALYSIS 76.1 Hydrology 76.2 Lake Level Regulation 86.3 Water Hyacinth 9

7.0 ENVIRONMENTAL IMPACTS FROM POWER III 107.1 Evaluation of Environmental Assessment for Power III and Mitigation

Mitigation Measures 11

8.0 PROBABLE IMPACTS FROM POWER IV AND MITIGATION MEASURES 12

9.0 ENVIRONMENTAL MONITORING PLAN 129.1 Capacity Building 139.2 Cost Estimates for the Monitoring Plan 13

10.0 RECOMMENDATIONS 13

11.0 LIST OF ACRONYMS 15

12.0 REFERENCES 16

13.0 PERSONS CONTACTED 18

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EXECUTIVE SUMMARY

1. INTRODUCTION

It is the goal of the Government of Uganda (GOU) to develop the country's hydro power sourcesthrough Independent Power Producers (IPPs). Expected to be operational around 2005, Bujagali will be thefirst IPP plant. In addition, the Energy for Rural Transformation Project aims at improving rural non-farmincomes and to develop Uganda's indigenous renewable energy sources. A Privatization and Utility SectorReform Project intends to improve the quality, coverage and economic efficiency of commercial and utilityservices through privatization, private participation in infrastructure, and an improved regulatoryframework.

To meet growing demand in the meantime, the Uganda Electricity Board (UEB) is in the process ofadding a new hydro electric generation plant at Owen Falls Extension. This extension consists of severalphases. The first phase (units 11 and 12) is the ongoing Power III Project expected to be commissioned inmid-2000; the second phase (unit 13) will be financed by SIDA and NORAD, and is scheduled forcompletion at the end of 2002. However, even after commissioning units 1 1-13, the system will experiencea deficit of 50-60 MW at peak times in 2002.

Since it is possible to install two additional units (14 and 15) at the Owen Falls Extension facilitywithin a short period of time, the government has requested IDA to finance the third extension. It is thisthird extension (units 14 and 15) that will be financed under the proposed Power IV Project which willprovide up to 80 MW in additional installed capacity by 2003. The increase in generation capacity will besupplemented by energy efficiency measures, including ongoing non-technical loss reduction and improvedbillings and collections. The proposed project will address issues related to sector reform, electricity supplyincrease, Lake Victoria outflow regulation, and petroleum sector monitoring.

2. ENVIRONMENTAL MONITORING PLAN

The proposed EMP emerged from discussions between the pre-appraisal mission and the NationalEnvironment Management Agency (NEMA), drawing on recommendations made by the consultant in thedraft EA report. The EMP focuses on the monitoring of water quality and quantity, the biology and ecologyof fish populations, shoreline stability and silt removal. It also provides for the monitoring of adecommissioning plan at the end of the proposed project. The decommissioning plan will focus on theremoval of temporary infrastructure (sewage lines, electricity lines, buildings), construction materials, usedoils etc. as required by current Ugandan law. An environmental audit will be conducted to assess the extentof environmental liabilities.

The pre-appraisal mission established that initial concerns about potential environmental impacts dueto the installation of units 14 and 15 will not materialize. First, since most of the construction activities ofPower IV are embedded in the concrete works of the generating units, there will be no environmentalimpacts due to mosquito breeding in open construction pits. Second, at the time of the pre-appraisalmission, the water hyacinth had been almost eliminated in the project area through mechanical removal.UEB has access to water hyacinth harvesting equipment to keep its growth under control. Furthermore, withfunding from the Power III Project, UEB installed three trash booms and constructed a cement road toensure safe removal of the water hyacinth by trucks. Hence, the water hyacinth will not be a threat to theoperations at Owen Falls if control continues.

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To the extent necessary, the EMP will also provide for the monitoring of mitigation measuresregarding landscaping downstream of the old dam and buttressing of the old dam upstream originallyplanned under the Power III Project. NEMA asked that these mitigation measures be considered under theproposed project in the event that no funding is available under the Power III Project. The total cost of theEMP is estimated at $237,000.

3. RECOMMENDATIONS

Environmental Monitoring Plan1. Envirornental management at UEB in general, including the facilities at Owens Falls, needs to be

institutionalized and strengthened. Currently, aspects of environmental management are beingundertaken by individual senior officials without coherent or coordinated efforts within UEB. It isrecommended that UEB, in cooperation with FIRRI, DWD and WRAP implement the proposedenvironmental monitoring plan.

Capacity building2. To ensure effective implementation of the environmental monitoring plan, it is recommended that UEB

hire an Environmental Officer who will be responsible for the implementation of the environmentalmonitoring plan.

Mitigation measures3. It is recommended that a decommissioning plan be developed under the proposed project. It is also

recommended that mitigation measures originally to be implemented under Power III be consideredunder the proposed project if funding is not available under the ongoing operation.

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1.0 INTRODUCTION

It is the goal of the Government of Uganda (GOU), to develop the country's large hydro powersources through Independent Power Producers (IPPs). Based on the current status, the first IPP plant(Bujagali) will not be operational until around the year 2005. In addition, the Energy for RuralTransformation project aims at improving rural non-farm incomes and to develop Uganda's indigenousrenewable energy sources. A Privatization and Utility Sector Reform Project intends to improve the quality,coverage and economic efficiency of commercial and utility services through privatization, privateparticipation in infrastructure, and an improved regulatory framework.

To meet the growing demand in the meantime, the Uganda Electricity Board (UEB) is in the processof adding a new hydroelectric generation plant, known as the Owen Falls Extension, adjacent to, but notconnected to the existing Owen Falls plant. The extension consists of several phases: The first phaseconstitutes the ongoing Power III Project (construction of the new extension dam, power house, diversioncanal, civil works for generating units 11-15, installation of 80 MW of generating capacity through units 11and 12); it is expected to be commissioned in mid-2000, and to increase total installed system capacity to260 MW. The second phase (unit 13) will be financed by SIDA and NORAD, and is scheduled forcompletion at the end of 2002, increasing installed capacity to 300 MW. Analyses indicate that even aftercommissioning of units 11-13 at the Owens Falls Extension, the system will not be able to balance demandand supply - the deficit at peak times is estimated to be 50-60 MW in 2002.

Since it is possible to install two additional units (14 and 15) at the Owen Falls Extension facility witha short lead time, the Government has requested IDA to finance the third extension. Acceleration of theinstallation of these units would provide additional capacity of 80 MW by 2003, thus significantly reducingthe need for load shedding before the first IPP comes on-power in 2005. It is this third extension that will befinanced under the proposed project, Power IV.

The environmental analysis conducted by the consultant in April 1999, has been reviewed and revisedto reflect the findings of a World Bank pre-appraisal mission in June 2000.

2.0 STATUTORY FRAMEWORK

In 1994, the government prepared the National Enviromnent Management Policy for Uganda toaddress the serious environmental degradation of the nation's natural resource base. In 1995, thegovernment passed into law the statute supplement No.3, the National Environment Statute, as a legislativeinstrument defining the regulatory framework for environmental management for the country. The statuteestablished and empowered a nationwide institutional arrangement to ensure proper environmentalmanagement in Uganda.

In order to provide a policy strategy for integrating environmental concerns into the national socio-economic development planning process, the government, in collaboration with its donor partners,completed the country's National Environment Action Plan (NEAP) in June 1995. The NEAP is to provide:

* comprehensive and coordinated environmental policy and legislation, combined with removinginstitutional conflicts and rivalry;

* effective cooperation and coordination within and outside of government; and* tools for addressing the inadequate information on the environrment and natural resources.

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The NEAP indicated that Uganda's hydro-electric potential is estimated at 3000 MW although onlyapproximately 156 MW have been exploited. Despite this iimmense potential, hydro-electricity constitutesonly about 1% of total energy consumption. Most of the power - 150 MW- is generated at the Owen FallsPower Station, while the rest is derived mainly from mini-hydro power stations.

Under section 18 of the Statute, the National Enviromnent Management Authority (NEMA) was to beset up and to prepare the NEAP to be reviewed every five years or for lesser periods if consideredappropriate. Therefore, NEMA was created in 1996 as the national agency responsible for the overallmanagement of the environment. NEMA was also charged with the responsibility to oversee, coordinateand supervise the operationalization of the environmental impact assessment process in Uganda, while theiractual implementation will be the responsibility of the relevant line ministries, the private sector, non-governmental organizations, and the general public.

The Statute further provided that NEMA should develop guidelines for environmental impactassessment on proposed actions which may affect the country's natural and social environment. Therefore,in 1997, NEMA developed Guidelines for Environmental Impact Assessment in Uganda, and has beenresponsible for integrating environmental considerations into sectoral planning, project and policyformulation. In 1998, NEMA developed Guidelines for the Integration of Environmental Considerationsinto Sectoral Planning, Project and Policy Fortnulation in Uganda which require that the environmentalimpact assessment process examines the likely environmental impacts of proposed plans, policies andprojects at their conception, planning, design, and implementation levels.

In May 1998, Statutory Instruments Supplement No. 8 was enacted by the government as theEnvironmental Impact Assessment Regulations. This statutory supplement addresses: arrangement ofregulations and definitions for environmental impact studies and statement; review process of theenvironmental impact statement (EIS); decision of the executive director on EIS; access to EIA reports andinformation; post-assessment environmental audits; and miscellaneous provisions.

To-date, Uganda has made considerable progress in integrating environrnental concerns into privatesector plans, programs and development actions mainly through the operationalization of the EIArequirements in the National Environment Statute. However, integration of environmental considerationsinto public sector plans, projects, and policies has not been very successful primarily due to a lack ofcapacity building of trained environmental specialists to follow-up on monitoring activities going on in thecountry.

3.0 OBJECTIVES

The objectives of this environrmental analysis are to:

Examine the environmental, social, and ecological factors which may be affected by the proposedextension of the Owen Falls hydro power resources under Power IV;Review and evaluate the ongoing activities under Power III;

* Develop an Environmental Monitoring Plan (EMP).

4.0 METHODOLOGY

The consultant conducted an environmental analysis in conformity with the World Bank's SafeguardPolicies for Environmnental Assessment, OP/BP/GP 4.01 and the Environmental Guidelines and Policies ofUganda. He spent three weeks in Uganda from April - May, 1999, for data collection, consultation withofficers of UEB, and relevant authorities in the public and private sectors, including NEMA. Extensive

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reconnaissance surveys of the Owen Falls watershed and the surrounding environs which included locationsalong the Lake Victoria were conducted. Studies were carried out on the proliferation and effects of thewater hyacinth and water lettuce in the general area, and the corresponding environmental impacts. Thehydrology of the area was evaluated to determine the effect on existing and predicted land use in theVictoria Nile watershed, between Lake Victoria and Lake Albert, and on the functioning of the dam withrespect to the Power III and IV extension activities.

The environmental analysis also included: identifying and reviewing legislation and regulationsaffecting environmental issues; determining the possibility of significant problems; evaluating usefulindicators of environmental impacts; assessing the need for capacity building and training; consulting withinterested and affected people and incorporating their knowledge and preferences into environmentaldecisions; identifying opportunities for positive environmental actions; and developing an environmentalmanagement plan.

In June 2000, a World Bank pre-appraisal mission visited the Owen Falls Extension. The missionnoted that the water hyacinth had almost disappeared, three trash booms had been installed, and a concretesurfaced road had been constructed at Rippon Falls to ensure safe removal of the harvested water hyacinthby trucks. Water hyacinth harvesting equipment was available at UEB. To ensure safe and reliable poweroperations under the proposed project, an Environmental Monitoring Plan has been prepared and discussedwith NEMA, FIRRI, and the Government of Uganda.

5.0 PROJECT DESCRIPTION

The proposed project will address issues related to sector reform, electricity supply increase, LakeVictoria outflow regulation, and petroleum sector monitoring. Progress in preparing the proposed projectwill be linked to the implementation of the sector reform and privatization program. Together with theproposed Privatization and Utility Reform project, the proposed project would assist in implementing theagreed reforns and finance the activities needed to further the privatization process. The project would alsosupport the setting up of the legal and regulatory framework, in particular, technical assistance to theregulatory body.

Upon sustainable progress on sector reform and UEB's privatization, the project will install units 14and 15 at the Owens Falls Extension to provide up to 80 MW in additional installed capacity by 2003. 'jheincrease in generation capacity will be supplemented by energy efficiency measures, including ongoingnon-technical loss reduction and improved billings and collections.

The project will also finance the required studies to provide the government with information on themerits of the regulation of Lake Victoria outflows to Uganda and the downstream riparians, as well astechnical assistance for petroleum sector monitoring and regulatory functions.

6.0 ENVIRONMENTAL ANALYSIS

The hydrology and the impact of the water hyacinth were considered to be of major environmentalsignificance. Therefore, these two elements were evaluated by the consultant to determine their impact onthe environment as a result of the extension activities at Owen Falls dam in Uganda.

6.1 Hydrology

Hydrological and meteorological data have been recorded continuously at Jinja and at other sites inthe Lake Victoria watershed since the beginning of the century. Data have been more reliable since the

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construction of the Owen Falls dam, providing over 35 years of reliable hydrological records. The data onthe watershed of the Victoria Nile has been extensive, resulting in a compilation and review of lake outflow,lake level, and basin rainfall data sets.

The hydrology of the basin is dominated by a delicate balance between evaporation and rainfall overLake Victoria. The net annual evaporation from the lake is of the same order of magnitude as the annualrainfall over the lake surface. The lake outflow, now controlled at Owen Falls, is of the same order ofmagnitude as the runoff from the drainage basin. A review was done on the reference hydrology consistingof a lake inflow data set. No new data collection was required. Since the generating station at Owen Fallswas completed, the lake has fluctuated at a mean level about I m higher than the previous stable lake level.

The existing discharge agreements with riparian states will not produce changes in downstreamhydrology as a result of the Owen Falls extensions, however, only a monitoring program will be able toascertain this condition. It is possible that downstream hydrology will be marginally modified seasonallybut not in respect to overall annual discharges. The effect of this modification will be limited only to theriver portion above Lake Kyoga and will be unchanged for the remaining downstream portions of the NileRiver. Whether downstream flooding will occur due to the extension activities can only be determinedthrough a monitoring program. In general, it is expected that no significant effects on downstream floodingwill occur.

6.2 Lake Level Regulation

The lake is currently regulated by an operating policy which is intended to emulate the naturalregulation of the lake which occurred prior to the start of construction at Owen Falls in 1951. The outflowvolume is balanced monthly, based on the recorded lake level at Jinja. With this method of operation, thelake outflow is a function of the lake level. Therefore, as the lake level data vary, the outflow data vary.

Prior to the development.of Owen Falls, the mean flow of the Victoria Nile was determined on thebasis of the estimated natural Ripon Falls rating curve, to be about 660 cubic meters per second. The meanflow of the Victoria Nile since 1961 has been determined to be about 1200 cubic meters per second on thebasis of the rating curves for Owen Falls sluices and turbines. This higher mean flow has now persisted foralmost 30 years.

The data of inflow available for outflow (IAO) over the period of record constitute the effects ofrainfall, tributary runoff and evaporation. IAO data suggests that in the future, the lake level will fluctuate atan equilibrium level consistent with the hydrology of the past 30 years, i.e. a level of about 12.2m at theJinja gauge.

It is important to appreciate that any trend in the lake level and outflow data does not also imply atrend in the inflow to the lake, but rather only a long-term change of accumulated storage. High inflowperiods result in a rapid increase in the lake level because the available inflow is greater than the outflowrequired under the current operating policy. This accumulated storage is subsequently released over severalyears once the inflow has entered the next low period. That is, low periods in the lake level lag behind lowperiods of inflow by several years (Acres Int., 1990).

In 1998, the Directorate of Water Development (DWD) developed a simulation model. Through thismodel the impacts of alternative regulation rules were assessed. The model represented Lakes Victoria,Kyoga, and Albert, and included provision for calculation of hydropower production at Own Falls Dam andthe proposed new power stations to be developed downstream (i.e. Bujagali, Kamdini, Kalagala, Ayago and

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Murchison). The model was used to determine the impact that alternative regulation policies would havehad on historic flows, assuming the developments were in place.

A total of six rules were investigated, the underlying principle behind all these rules is to maintain thelake levels as high as possible, thereby ensuring reliable high discharges from the lake and henceguaranteeing higher firm power for both short- and long-term planning. The results from the modelingindicated that regulation of Lake Victoria has no detrimental impacts on the lake levels, and that regulationcan be constrained to ensure that the levels are within the historical limits. The conclusion from themodeling exercise showed that Lake Victoria regulation has no significant impacts on the levels anddischarges for Lake Albert and Lake Kyoga. There is a high probability that there would be non-interference in the Nile flow at the Uganda-Sudan border which could be an issue of concern to thedownstream countries.

6.3 Water Hyacinth

Water hyacinth is the world's worst aquatic weed. It originated in the Amazon basin and has spread toevery continent in the past 100 years. The weed has several deleterious effects. It disrupts water transportand fishing. It seriously depletes aquatic biodiversity (including fish stocks) and affects water chemistry,and it harbors disease vectors (e.g. bilharzia small vectors) and snakes. Water hyacinth is hardy, quickgrowing, and seeds can remain alive in the mud of a lagoon or lake for up to 17 years, clogging water waysthat eventually become impenetrable. Using herbicides to control this weed would be ecologicallydisastrous, uneconomical, and have only short-term effect. The only solution is to find a natural biologicalenemy.

The water hyacinth first appeared on Kenya's Lake Naivasha in 1982, and entered Lake Victoria in1988. On the lake, winds and currents sweep the water hyacinth north out of Tanzanian waters towards theUgandan and Kenyan shorelines. It is the Ugandan economy that has been most severely affected. Thewater hyacinth plays havoc with the country's water and electricity supplies. For example, if the weedblocks the pipes carrying cooling water to the transformers at the Owen Falls Dam, the transformers mustbe shut down before they overheat. When that occurs, residents in Kampala and Entebbe will not haverunning water and electricity for days. Also, the rotting water hyacinths provide a perfect habitat formosquitoes, snails, and snakes which lead to health workers reporting increased incidents of malaria,bilharzia, and snake bites in lakeside villages in recent years. In 1993, the government imported 600 each oftwo weevil species that feed exclusively on water hyacinth in the Amazon and began mass rearing them.After tests had shown that they did not eat any of the major food crops or other local plants, they werereleased at several test sites. Although the bugs will not wipe out the water hyacinth, they will help to checktheir growth and may create some kind of ecological balance. By 1998, the two species of weevils, togetherwith the effects of the wind, the lake's water currents, water level, and water temperature, have succeededin reducing the hyacinth proliferation by 75% to 80%.

When the pre-appraisal mission visited Owen Falls in June 2000, the water hyacinth had almostdisappeared. UEB had purchased and installed three trash booms. UEB had also constructed a concretesurfaced road at Rippon Falls to ensure that the trucks can safely transport the harvested water hyacinth.UEB has access to water hyacinth harvesting equipment on its premises. Additional harvesting equipment isavailable in Port Bell and Kagera; two additional units will be purchased for Lake Victoria by the end ofthis year. This equipment was considered as sufficient by the Ugandans to keep the water hyacinth atcurrent levels for the next 4-5 years.

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7.0 ENVIRONMENTAL IMPACTS FROM POWER III

The main conclusions from the environmental analysis conducted under Power III in 1986, and an on-site review in 1990, were that extending hydroelectric generation at the existing Owen Falls was the mostenvironmentally sound option for power development in Uganda, provided that the environmental problemswere limited to (i) safe disposal of approximately 1.5 million cubic meters of excavated material; (ii)resettlement of an estimated 25 families; (iii) compensation for agricultural crops and land; and (iv)sediment control during the construction period.

The implementation of the Power III project required demolition or removal, and subsequentrebuilding of a small police headquarters building and associated staff housing. The small populationrequiring relocation did not require an elaborate resettlement plan since land was available nearby andequitable replacement of housing did not become a major issue. UEB was to carry out compensation for lostagricultural lands according to existing Ugandan law. The compensation was to be made for the value ofland lost as well as for the value of crops in place which were lost. A monitoring program for the perimeterof Lake Victoria was recommended in order to regulate lake levels by the riparian nations. The programwas supposed to collect baseline data of riparian uses including fishing patterns and fish spawning sites.

At the time the environmental analysis for Power III was conducted, there were no environmentalpolicies or legislation which mandated environmental assessment for public or private projects. Also, at thattime the governmnent was in the process of defining and enacting comprehensive environmental protectionlegislation that led to the formulation of the National Environmental Action Plan (NEAP). In addition,Makerere Institute of Environment and Natural Resources was conducting a re view of environmentalpolicies and legislation that would lead to a defined environmental assessment mechanism in the country.

The environmental and health impacts identified with the Power III extension were as follows:

X the reduced lake level fluctuation could provide a better habitat for the water hyacinth and water lettuceat the lake margins. However, it was thought that the project will not improve or increase suitablehabitats for the water weeds within the Victoria Nile. Therefore, it was suggested that UEB neverthelessput boom attachments to the power canal intake and the existing intakes to stop large mats of waterweeds which could proliferate in Lake Victoria and enter the Victoria Nile;

* the retention time of water in the power channel was minimal and would not cause changes in waterquality due to eutrophication or contamination from industrial sources. Also, the passage of waterthrough the turbines would cause some temporary de-oxygenation which could be quickly corrected inthe turbulent rapids immediately below the tail race;

* there is no reservoir for the project other than the natural reservoir of Lake Victoria, therefore, theproject would not alter the natural cycles within the lake, thereby increasing the anaerobicdecomposition;

* permanent land loss due to the extension was estimated at 20 hectares of small holder garden plots andliving space which would be used during the excavation of the power channel;

* the project was expected to mitigate malaria infections by providing prohylaxis and treatment for thelabor force. Also, the project was not likely to increase the turbulent water habitat of the blackfly vectorof onchocerciasis (river blindness). However, there was potential for increased exposure to both malariaand onchocerciasis due to the incoming work force necessary for the construction;

* it was noted that if care was taken to eliminate standing water within the construction compound,Schistosomiasis (bilharzia) was not going to be an important health factor. The risk and exposure tovenereal diseases and AIDS had the probability of increasing with the construction force and thepopulation of Jinja unless precautionary measures were encouraged by an active health educationprogram.

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7.1 Evaluation of Environmental Assessment for Power III and Mitigation Measures

Mitigation measures: The mitigation measures suggested under Power III have been carried out.These measures included the safe disposal of approximately 1.5 million cubic meters of excavated material,sediment control during the construction period, resettlement of an estimated 25 families, and compensationfor agricultural crops and land. Demolition of a small police headquarters building and its associated staffhousing have been carried out with relocation to improved facilities. Mitigation measures have also beensuccessful with respect to the appropriation of land for handling activities, such as earth moving andtrucking, concrete making areas and completion of land spaces for substations for Units 11 and 12. Theconstruction of the power canal is almost complete.

Permanent land losses due to Power III are limited to approximately 20 hectares of small holdergarden plots and living space taken by the construction of the canal. A few hectares are being usedtemporarily for construction activities which should be restored when all construction has been completed.UEB has taken care of the resettlement issues.

The water hyacinth control and eradication have been conducted by UEB through mechanicalremoval by harvesters. Under Power III, UEB designed three boom attachments that were placed at thepower canal entrance; near the newly constructed generating units; and far upstream to intercept the waterhyacinths before reaching the existing dam.

Monitoring of the health of the workers did not take place, and there was no evidence of collaborationbetween UEB and the Ministry of Health regarding the implementation of a black fly control programduring the construction period as a means of protecting the labor force.

Evaluation: Thus, implementation of the Power III Project was successful. The major constructionactivities, including safe disposal of excavated material, have been carried out successfully. Sedimentcontrol during the construction period has been modestly successful. Resettlement of displaced personswere carried out, and a police headquarters building and its associated staff housing have been rebuilt.

Land used for construction purposes and the area affected by resettlement was limited to the canalarea and the actual power plant area. No elaborate resettlement plan was required for the small number ofpeople requiring relocation since land was available nearby and equitable replacement of housing did notbecome a major issue. UEB compensated for lost agricultural lands according to existing Ugandan Law andcompensation was made for the value of crops in place that were lost.

However, no monitoring program has been put in place, and there is no environmental managementplanning that has been instituted to coordinate activities that impact the environment. Hence, it is notpossible to assess the medium- and long-term environmental impacts due to Power III constructionactivities such as the effects on downstream fish spawning areas and the water management in the VictoriaNile watershed.

In discussions with NEMA, the pre-appraisal mission learned that the environmental assessment forPower III had also included the buttressing of the old dam upstream which involves reinforcement of theisland. NEMA was concerned that the island is not strong enough to withstand the currents of the river. Thisactivity has not been completed because the contractor ran out of materials. NEMA further proposed toconsider landscaping which involves terracing of the shoreline downstream of the old dam to reduce soil

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-erosion and run-off; the current slope is too steep. If these mitigation measures cannot be accommodatedunder Power III, NEMA asked that they be included under the proposed project

8.0 PROBABLE IMPACTS OF POWER IV AND MITIGATION MEASURES

Probable impacts: Since most of the construction activities of Power IV are embedded in the concreteworks of the generating units, there will be no environrmental impacts such as mosquito breeding due to theinstallation of units 14 and 15. The water hyacinth is currently under control and three trash booms havebeen installed. The proposed environmental monitoring plan includes monitoring of the potential resurgenceof the water hyacinth. No additional mitigation measures are proposed under Power IV in this regard otherthan a continuation of mechanical harvesting as and when necessary.

However, as the proposed project will take over the temporary infrastructure used for constructionunder Power III, a decommissioning plan (including restoration of the area) for this temporary infrastructureas well as additional infrastructure acquired under Power IV will be required under the proposed project.This is a requirement under current Ugandan law. Transferring the use of facilities from Power III to PowerIV will eliminate any negative environmental impacts due to the demobilization and remobilization ofconstruction contractors to the site, and minimize the risks associated with construction and rehabilitationservices.

An environmental monitoring plan has been proposed and discussed with NEMA, FIRRI and theGovernment of Uganda. This plan will include monitoring of the implementation of the decommissioningplan, including restoration of the project area, as well as water quality and quantity, biology and ecology offish populations, shoreline stability, silt removal, and limnological sampling.

Mitigation measures: Most of the construction activities for Power IV regarding the installation ofgenerating units 14 and 15 are embedded and therefore do not require mitigation measures. Three trashbooms (one floating boom before the intake structures; one safety boom at the entrance to the power canal,and one water hyacinth boom at the old Rippon Falls which is considered the first line of defense againstthe water hyacinth) have been installed under Power III and are effective.

The decommissioning plan will ensure the safe removal of temporary infrastructure and therestoration of the construction area will return the project area to its original state, that is, prior toconstruction activities for Power III and Power IV. An environmental audit will assess the extent ofenvironmental liabilities and identify potential social impacts, propose appropriately costed remediationmeasures as well as effective institutional arrangements for the implementation of the remediation plan.

If possible, mitigation measures concerning landscaping downstream of the old dam and buttressingof the old dam upstream will be implemented under Power III; if not, it is proposed to implement theseunder the proposed project.

9.0 ENVIRONMENTAL MONITORING PLAN

To ensure safe and reliable power production, an environmental monitoring plan has been proposed. Itwill focus on the following areas:

* Monitoring of the quantity of surface water at points downstream of the Power IV dam and downstreamat the outlet of Lake Kyoga;

* Monitoring of the biology and ecology of the fish population upstream and downstream as well as in thenew canal area;

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e Monitoring of the stability of the shoreline immediately downstream of the new dam at the tail race areaon the Eastern Bank;

* Silt removal from storm drains by installing interceptors in drains and through regular cleaning;* Monitoring of water quality (turbidity, phosphate content, nitrate concentration, hydrogen sulfide,

methane generation behind the dam, dissolved oxygen, temperature profiles, suspended solids,biochemical oxygen demand);

* Limnological sampling of micro-flora, aquatic weeds and benthic organisms, and vegetation changes;and;

* Monitoring of the implementation of the decommissioning plan, including restoration of the projectarea.

9.1 Capacity Building

In order to implement the environmental monitoring plan effectively, it is recommended that a juniorenvironmental officer be recruited by UEB and assigned to the Power IV project. This environmentalofficer would be responsible for the implementation of the monitoring plan, including the preparation ofquarterly reports of the monitoring activities. As issues arise from the information contained in the quarterlyreports, UEB will convene meetings with NEMA, FIRRI, DWD, and local authorities to discuss themonitoring results and to decide on follow-up measures as appropriate. NEMA has the necessary financialand human resources to monitor the implementation of the monitoring plan and the mitigation measures.

9.2 Cost Estimates for the Monitoring Plan

The implementation of the various components of the Monitoring Plan would cost $237,000. Thebreakdown is as follows:

* Monitoring of the quantity of surface water (DWD/UEB) No cost* Monitoring of the biology .and ecology of the fish population (FIRRI) $ 40,000* Monitoring of the shoreline stability (UEB) No cost* Monitoring of silt removal from storm water channels (UEB) No cost* Monitoring of water quality (UEB/WRAP) $ 10,000* Limnological sampling (FIRRI) $ 5,000* Decommissioning plan (estimate) $ 50,000* Recruitment of an Environmental Officer $ 72,000. Meetings to discuss quarterly reports (UEB) No cost* Landscaping at old dam (estimate) $ 50,000

Buttressing at old dam (estimate) $ 10,000Total $237,000

10.0 RECOMMENDATIONS

Environmental Monitoring Plan1. Environmental management at UEB in general, including the facilities at the Owen Falls, needs to beinstitutionalized and strengthened. Currently, aspects of environmental management are being undertakenby individual senior officials without coherent or coordinated effort within UEB. It is recommended thatUEB, in cooperation with FIRRI, DWD and WRAP implement the proposed environmental monitoringplan.

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Capacity Building2. To ensure effective implementation of the environmental monitoring plan, it is recommended that UEBhire an Environmental Officer who will be responsible for the implementation of the environmentalmonitoring plan.

Mitigation Measures3. It is recommended that a decommissioning plan (including restoration of the area) be developed underPower IV as discussed earlier in this report. It is also recommended that mitigation measures originally tobe implemented under Power III be considered under the proposed project if funding is not available underthe ongoing operation.

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11.0 LIST OF ACRONYMS

CAS Country Assistance StrategyCBO Community Based OrganizationDEC District Environmental CommitteeDRIC Divestiture Reform Implementation CommitteeDWD Directorate of Water DevelopmentEIA Environmental Impact AssessmentEIS Environmental Impact StatementEMP Environmental Management PlanFIRRI Fisheries Resources Research InstituteGIS Geographical Information SystemGOU Government of UgandaIAO Inflow Available for Outflow IAOIPP Independent Power ProducersOD Operational DirectivesNARD National Agricultural Research OrganizationNEAP National Environmental Action PlanNEMA National Environment Management AuthorityNGO Non Governmental OrganizationPDF Project Development FundSTD Sexually Transmitted DiseasesUEB Uganda Electricity BoardUJNEP United Nations Environmental ProgrammeWMP Water Management PlanWRAP Water Resources Assessment Program

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12.0 REFERENCES

A New Macmillan Social Studies Atlas for Uganda (1998 Edition): NationalCurriculum Development Centre, Ministry of Education and Macmillan Education Ltd.,ISBN 0-333-72329-5, Kampala, Uganda, 65pp

Assessment of Hydroelectric Generation Alternatives - Uganda (1999)Acres International Ltd. in Association with Kagga & Partners Ltd., Information Paper #: P 12603.05.07,an IFC Publication, Washington, D.C.

Caring for our Environment - A Handbook for Local Leaders in Uganda (1998):National Environment Management Authority (NEMA) in Conjunction with FriedrichEbert Stiftung (FES), Kampala, Uganda, 45pp

Environmental Audits (1996): Authored by Lawrence B. Cahill, 7' Edition,Government Institutes, Rockville, Maryland, 72 7pp

Environmental Management and Business Strategy: Leadership Skills for the 21"Century (1999): Authored by B.W. Piasecki, K. A. Fletcher, and F. J. Mendelson; JohnWiley & Sons, New York 348pp

Guidelines for Environmental Impact Assessment in Uganda (July, 1997)National Environment Management Authority (NEMA), Kampala, Uganda, 63pp

Guidelines for the Integration of Environmental Considerations into SectorialPlanning, Project and Policy Formulation in Uganda (January, 1998): NationalEnvironment Management Authority (NEMA), Kampala, Uganda, 20pp

Input from Hydrology Section: Annual (Year) Book of Directorate of Water Development(DWD) (April, 1999):, Ministry of Water, Lands & Environment, Entebbe, Uganda. A Draft Report.

Office Memorandum: Uganda Power IV Project, Environmental InformationMemorandum (December, 1998): The World Bank, Africa Environment, Serigne OmarFye, AFTEI, Washington, D.C., 5pp

Power Development Study of the Uganda Electricity System (March, 1986):Environmental Impact Assessment, Volume 3 - Baseline Studies Report, Prepared byW.S. Atkins & Partners, Sir Alexander Gibb & Partners and Kennedy & Donkin,England, II0pp

Project Concept Document, Uganda Power IV (1998): The World Bank, Africa AFC04,Paivi Koljonen - Task Team Leader, Washington, D.C., 20pp

Proposed Extension to Owen Falls Generating Station, Feasibility Study Report (October, 1990)Acres International Ltd., Ontario, Canada., Technical Report, Volume 2.

Proposed Extension to Owen Falls Generating Station, Feasibility Study Report (October, 1990)Acres International Ltd., Ontario, Canada, Appendixes - Volume 3.

Proposed Extension to Owen Falls Generating Station, Feasibility Study Report.Addendum on Provision of Spillway (May, 1991): Acres International Ltd., Ontario, Canada

The Battle for Lake Victoria (May, 1999): Published by Vicki Butler in MSAFIRI,

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the Inflight Magazine for Kenya Airways, Issue 27 May-June 1999, pp 72-74.

The Environmental Impact Assessment Regulations (May, 1998)Uganda Government Gazette No. 28, Vol. XCI, Statutory instruments Supplement No. 8,Entebbe, Uganda, 71 pp

The National Environment Action Plan for Uganda (Dune, 1995)National Environment Action Plan Secretariat, Ministry of Natural Resources,Kampala, Uganda 154pp

The National Environment Management Policy for Uganda (January, 1994)National Environment Action Plan Secretariat, Ministry of Natural Resources,Kampala, Uganda, 48pp

The National Environment Statute (May, 1995): Uganda Government Gazette No. 21,Vol. LXXXVIII, Statute Supplement No. 3, Entebbe, Uganda, 83pp

Uganda Districts Information Handbook (1997/98 Edition)Compiled by Mugisha Odrek Rwabwoogo, Fountain Publishers,ISBN 9970 02 030 7; Kampala, Uganda, 134pp

UEB Newsletter Cover Story (March, 1999)Article by L. Zeisel, Owen Falls Extension Project Manager, Volume 1, No. 4, Spp

Uganda Third Power Project: Staff Appraisal Report (May, 1991)The World Bank, Industry and Energy Division, Eastern Africa Dept.,Africa Region, Washington, D,C., Report #: 9153-UG, 97pp

Web Site on Water Hyacinth: Killer Water Weeds (April, 1999)Contact - Mic Julien, CSIRO Long Pocket Laboratory, Meiers Road,Private bag No. 3, Indooroopilly 4068, Australia

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13. PERSONS CONTACTED

Discussions and interviews were conducted with the persons contacted in Uganda, and the information formed thebackground for the environmental analysis carried out on the Owen Falls Dam extension activities for Power III andthe proposed extension for Power IV.

C. K. Amooti Physical Planner/Geographer, Physical Planning Department,Min. of Water, Lands & Environment, Kampala

Dr. John S. Balirwa, Senior Aquatic Ecologist, Fisheries Research Institute (FIRI), NationalAgriculture Research Organization, Jinja

Jacky K. Banks, Director, Expediters International Limited, Nairobi, Kenya

Paul Baringanire, Principal Projects Officer, UEB, Kampala

John Beardsworth, Legal Specialist, Hunton & Williams, Richmond, USA

Nick Di. Domenico, Financial Analyst, Hunton & Williams, Toronto, Canada

Dr. F.W.B. Bugenyi, Director, Fisheries Research Institute (FIRI), NationalAgriculture Research Organization, Jinja

Charles Sebukeera, Director, Information and Monitoring, National Environment Management Authority

Andrew Othieno, Environmental Audits and Monitoring Officer, National Environment Management Authority

Justin Ecaat EIA Specialist, National Environment Management Authority(NEMA), Kampala

R.R. Grania, Manager Projects Coordination, UEB, Kampala

Patrick Kahangire, Director, Directorate of Water Development, Min. of Water, Lands& Environment, Kampala

K.R. Karekaho, General Manager Projects, UEB, Kampala

W. F. Kyosingira, Ag. Principal Hydrologist, Directorate of Water Development,Min. of Water, Lands & Environment, Entebbe

Fred Kimaite, Hydrologist, Directorate of Water Development, Entebbe

Paul J. Mare Managing Director, UEB, Kampala

E.K. Mbyetsiza, Assist. Commissioner, Survey and Mapping Division, Entebbe

Esther Mulyagonja, Legal Officer and Secretary to the Board, UEB, Kampala

Dr. P.K. Mwesigye, Director, Enviro & Industrial Consult (U) Ltd., Makerere Univ.

Sauya Nakafu, Secretary, Office of General Manager Projects, UEB, Kampala

Semitala Norbert, Senior Projects Engineer, UEB, Kampala18

Lucas Ojiambo, Economist, The World Bank, Nairobi, Kenya

Lawrence Okello, G.I.S. Specialist, Directorate of Water Development, Entebbe

Grace Onyut, Personal Secretary, Owen Falls Dam, UEB, Jinja

Albert Sekandi, Commissioner, Physical Planning, Land Use, Min. of Water,Lands & Environment, Kampala

Rakesh Sharma, Group General Manager, Speke Hotel, Kampala

Mike Taylor, Resident Manager, Acres International, Jinja

Ladislaus Zeisel, Project manager Power III, UEB, Owen Falls Dam, Jinja

Sam Zimbe, Acting Managing Director

Stephen Sekiranda, Research Scientist, Fisheries Research Institute (FIRI), NationalAgricultural Research Organization, Jinja

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