ethco rama eia o2 - press corporation limited

ETHCO RAMA – EIA O2

CONSTRUCTION OF SUGAR SYRUP MINI MILLS for ETHCO at

SITE 1: TA MPHONDE – 30 TCD PLANT

SITE 2: KAKASI/KAOMBE – 15 TCD PLANT

REQUEST FOR QUOTATION

FOR

ENVIRONMENTAL IMPACT ASSESSMENTS

JANUARY 2014

ETHCO DISTILLERY

RFQ FOR EIA SERVICES

JANUARY 2014 Doc No: EthCo RAMA EIA 02

Rev: Final

Page 1

TABLE OF CONTENTS

1 INSTRUCTION TO BIDDER ................................................................................................................ 2 1.1 Instructions for Bid ................................................................................................................. 2 1.2 Bid Validity .............................................................................................................................. 4 1.3 Disclaimer ............................................................................................................................... 4 1.4 Extent of Information Supplied .............................................................................................. 4

2 INTRODUCTION ............................................................................................................................... 5 2.1 General ................................................................................................................................... 5 2.2 Background and Objectives .................................................................................................... 5 2.3 Bankable Feasibility Study ...................................................................................................... 6 2.4 Environmental Requirements Report ..................................................................................... 6

3 SCOPE OF SUPPLY ........................................................................................................................... 7 4 TERMS OF REFERENCE (AS PER MALAWIAN DEA) .......................................................................... 8 5 BID REQUIREMENTS ........................................................................................................................ 9

5.1 Information Required ............................................................................................................. 9 5.2 Standards ................................................................................................................................ 9 5.3 Local Consultants .................................................................................................................... 9 5.4 Pricing ................................................................................................................................... 10

6 FORM OF CONTRACT .................................................................................................................... 11

ANNEXURES ANNEXURE 1: PROJECT INFORMATION ANNEXURE 2: EIA REQUIREMENTS AS PER MALAWI DEPARTMENT OF ENVIRONMENTAL AFFAIRS DEFINITIONS DEA – Department of Environmental Affairs EIA – Environmental Impact Assessment EMA – Environmental Management Act EMP – Environmental Management Plan OTE – Overall Time Efficiency TCH – Tonnes cane per hour

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1 INSTRUCTION TO BIDDER

1.1 Instructions for Bid

The Bid must be submitted as per the instructions contained in this document. Any discounts,

details or conditions that a Bidder may wish to draw attention to should be entered in a covering

letter attached to the Bid. Any such additional details or conditions shall not be binding on the EthCo

unless they are accepted by him and incorporated in the Contract.

If the bidder is in doubt as to the meaning of any portion of this document, he should ask EthCo for

clarification and he will be replied to. The responses will be made available to all potential bidders.

No alteration or erasure is permitted to the printed text, figures or drawings.

The Bid price shall be quoted in the currency of United States Dollars (USD).

The “Form of Acknowledgement” should be completed and returned within 3 days after the receipt

of the Bid document via email to [email protected]

Bids may be submitted via email to [email protected] under the heading:

“QUOTATION FORAN ENVIRONMENTAL IMPACT ASSESSMENT-

ETHCO SUGAR CANE SYRUP MINI MILLS “

ENQUIRY NO: ETHCO RAMA EIA 02

Quotations shall be due at 12h00 Central African Time on: 20/02/2015

Consultant will be appointed by the 26/02/2015

mailto:[email protected]

mailto:[email protected]

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ENQUIRY No: ETHCO RAMA EIA 02 FORM OF ACKNOWLEDGMENT

I, _____________________________ the undersigned hereby on behalf of ____________

_______________________________________________________________confirm that:

We intend to submit our Quotation by 12h00 on20/02/2015 FIRM QUOTE FOR ENVIRONMENTAL IMPACT ASSESSMENT: ETHCO RAMA EIA02 We decline to quote because ________________________________________________ _______________________________________________________________________ _______________________________________________________________________* Your contact person within our Company will be __________________________________ Who may be contacted at Telephone No: _______________________________________ SIGNED : __________________________ DESIGNATION : __________________________ DATE : __________________________ Please print or type *Fill in applicable portion.

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1.2 Bid Validity

All Bids shall remain valid for a period of 90DAYS from the Quotation closing date. During this

period the Bidder may not withdraw, alter or amend his Bid, or otherwise render it unacceptable to

EthCo.

1.3 Disclaimer

NeitherEthCo nor the Consultants will be responsible for or reimburse any Bidders expense incurred

in the preparation of the Quotation, neither will they enter into discussion with the Bidder as to the

reasons for acceptance or rejection of any Bid.

EthCo shall not be bound to accept the lowest or any Bid, and reserves the right to reject any

Quotation that does not conform to the Quotation instructions.

1.4 Extent of Information Supplied

The information supplied in this document is to be considered for the purposes of the RFQ only.

Further information required for final designs will be discussed with the preferred Bidders, should

EthCo elect to proceed to final contract negotiations and placement.

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2 INTRODUCTION

2.1 General

In order for the Ethanol Company Malawi (here forth known as EthCo) to satisfy the current local

demand for fuel ethanol and other alcohol products and to cater for expected growth in demand,

particularly over the next three to five years, a need arose to supplement the existing molasses

feedstock supply with alternative feedstock. At present there is only sufficient molasses feedstock to

allow the company to operate their production plant at about 50% capacity utilisation.

EthCo is looking to improve its returns to its business by:

Fully utilising the installed capacity of its production plant. It is currently running at about 50% of

the rated capacity as it is limited by available molasses feedstock supply and costs.

Supplementing the existing molasses supply base with other feedstock to achieve this.

Ensuring sustainability of the business by diversifying its sources of feedstock, thereby having

better control over the feedstock quality and input prices.

Securing Outgrower irrigated sugarcane.

Developing a plan to allow and to meet any growth in demand for alcohol and alcohol products

over the next three to five years.

2.2 Background and Objectives

EthCo is a producer of ethanol from molasses with a 60 klpd rated distillery plant, located at

Dwangwa, Nkhotakota District, Malawi.

EthCo appointed PGBI, an Engineering consulting company based in South Africa, to evaluate

strategies to mitigate the feedstock supply risks for its business.

To date PGBI has undertaken three phases of investigation to enable EthCo to operate its ethanol

plants in Malawi at full ethanol output capacity. The initial scoping study that identified the shortfall

in output was followed by a prefeasibility study incorporating an Agricultural Fermentable Feedstock

supply study. This feedstock study identified and recommended specific opportunities to procure

sugar cane for processing into syrup at independent or remote mini mills. The aim being to

incorporate the syrup feedstock into the molasses feedstock supply chain. For the third phase, a

bankable feasibility study was conducted to determine the techno-feasibility of the proposed

feedstock project.

The pre-feasibility study work was supplemented by a preliminary front-end engineering study based

on the pre-feasibility concept for both cane processing plant and necessary plant upgrades at the

EthCo distillery to facilitate implementation of alternative feedstock processing.

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2.3 Bankable Feasibility Study

PGBI has recently completed a bankable e feasibility study which has assessed the project viability of

establishing mini syrup mills in TA Mphonde and Kakasi/Kaombe areas. The bankable feasibility

study was conducted in a phased approach which included the following:

The first phase included an initial agricultural business plan to assess various Agricultural, Social

and Environmental factors to identify any possible fatal flaws of the development and to attract

funders or investors to enable a full Outgrower Scheme Engineering and Design Plan to be

conducted.

The second phase, the out-grower scheme engineering and design, included an engineering and

design component, tenders for services and maintenance, and a financial analysis culminating in

an Agricultural Business and Implementation Plan (ABIP).

The third phase involved the presentation of the ABIP to the EthCo board for approval and will

then be used to attract funding/investment to complete the fourth and final phase of the

project.

The fourth phase will be the Implementation/Development phase, involving the final

procurement and costing of the project as well as the implementation and budgetary control of

the actual agricultural out-grower scheme development.

This feasibility study document presents the outputs from the first two phases and aims to:

Detail the necessary community engagement, institutionalisation and agri-business

development process that the various community organisations will need to undertake to

create a sustainable economically viable sugar cane production farming operations to

completely satisfy this need for fermentable feedstock.

Develop an agricultural sugar cane plan to ensure the sustainable supply of fermentable

feedstock from sugar cane, to the Client’s (EthCo) distillery.

Refine the overall project concept and amalgamate the previous technical work with the

agricultural plan to assess the overall viability of the project in order to facilitate an

investment decision by the EthCo board.

EthCo wishes to appoint a consultant to undertake an environmental impact assessment to facilitate

the project implementation phase.

2.4 Environmental Requirements Report

A project brief (guided by Section 2A of the EMA) was submitted to the Malawian Department of

Environmental Affairs in order to obtain the Terms of Reference for an EIA assessment on the

proposed mini mill development sites. This brief included the following information:

1. The nature of the project including the project purpose;

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2. The activities to be undertaken including the project plan, size and site plan including the

preliminary design as well as the alternatives which are being considered;

3. The current stage and proposed activities of the project in the project cycle;

4. A location map of the project site and site alternatives.

5. The number of people the project shall employ;

6. The possible products and by-products to be anticipated;

7. A discussion of the environmental concerns, including the area of land, air or water that may be

affected, during the construction and operational phases of the project and the proposed

subsequent environmental management measures to be undertaken; and

8. Prescribed additional matters.

By using various current technologies, sourced from all over the world, the implementation and

ongoing operation of the project should not face any significant environmental compliance

challenges.

The project brief submission will be made available to the successful EIA consultant.

3 SCOPE OF SUPPLY

The tenderer shall price to supply the following items as part of their bid submissions:

1. Full EIA Study.

2. EIA Assessment including specialist studies to be determined after scoping phase.

3. EMP.

4. Licensing Applications required for water usage, waste and emissions compliance.

5. Construction and Operational Phases to be assessed.

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4 TERMS OF REFERENCE (AS PER MALAWIAN DEA)

The following is a summary of the Terms of Reference for an EIA: 1. Provide a full description of the nature/components of the proposed Project

Name the proponent;

Postal address;

Aim and objectives of the project;

Spatial location of the site;

Estimated cost of project;

Size of land for project sites;

Number of people to work on the sites;

Number of people residing on the sites.

2. Describe main activities to be undertaken in implementation of the proposed project at the sites

covering the following:

Pre-construction;

Construction and operation phase;

Type of machinery to be used;

Nature and quantity of wastes generated;

Estimated costs for activities.

3. Provide a concise description of the existing biophysical characteristics and the socio-economic

environmental status of the proposed are by identifying and analysing:

Physical conditions;

Biological resources;

Socio-economic conditions;

Changes anticipated during implementation.

4. State the reason for selecting the proposed sites of the project as opposed to other sites.

5. Predict environmental impacts associated with the activities at and around the site. The impacts

should include:

Project location;

Project design;

Construction works;

Project operation.

6. Prescribe the measures to eliminate effects identified and the measures to enhance positive

effects.

7. Propose an Environmental Management Plan.

8. Propose an Environmental Management and Monitoring Plan.

9. Review the legal framework pertaining to the proposed project.

10. Undertake stakeholder consultation.

11. The preparation, presentation and structure of the EIA report.

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The consultant should refer to the Terms of Reference for a full EIA as per Malawi DEA requirements which will be provided as Annexure 2.

5 BID REQUIREMENTS

5.1 Information Required

Bidders must kindly include the following information in their bids:

1. Project Team CV’s (if not previously submitted)

2. Company Profiles Including Experience List (if not previously submitted)

3. EIA Cost Estimate stating assumptions regarding possible specialist studies required;

4. EIA Approach description

5. Confirmation of adherence to applicable standards

6. Preliminary Time Schedule

5.2 Standards

The proposed EIA must be conducted in line with:

Malawian Environmental Authority requirements with respect to environmental impact

assessments;

World Bank requirements, guidelines and procedures for environmental impact assessments;

The Equator Principles adopted by Equator Principle Financial Institutions to ensure socially and

environmentally responsible project investment.

5.3 Local Consultants

The EIA consultant, if foreign, must allow for co-operation with a local Malawian EIA consultant with

established relationships within the Malawian Environmental Authority. The local consultant would

assist in:

• Facilitating interactions with relevant authorities; and

• Managing and expediting environmental authority processes and deliverables.

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5.4 Pricing

Consultants must summarise the pricing for the environmental services in accordance with the schedule below.

Component: Scope Cost (USD)

Duration incl. approvals (Weeks)

1 Scoping Study Including legal review, pre-application consultations and public participation

Sub - Total:

2 EIA

2.1 Specialist Studies

Water and Geo-hydrological Assessment

Social Impact Assessment

Noise Impact Study

Air Quality Impact Assessment

Visual Impact Assessment

Traffic Study

2.2 EIA Execution Project Management, reporting, public participation and EMP.

Sub - Total:

3 Additional Studies Proposed

Consultant to State

Consultant to State

Consultant to State

Sub - Total:

4 Permitting and Licensing Water use, waste, emissions etc. / As per regulatory requirements.

Sub - Total:

Total Fees / Duration: 1,2,3 and 4 above

Disbursements Budget:

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6 FORM OF CONTRACT

The General Conditions of Contract shall be the Third Edition 1998 reprint of the Client/Consultant

Model Services Agreement, as published by the Federation Internationale des Ingenieurs-Conseils,

copies of which may be obtained from:

FédérationInternationale des Ingenieurs-Conseils (FIDIC)

P O Box 86

1000 Lausanne 12

SWITZERLAND

Or perused at the offices of EthCo

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ANNEXURE 1: PROJECT INFORMATION

PROJECT BACKROUND EthCo currently uses molasses as its only source of feedstock to produce ethanol. This molasses,

supply, however, is only sufficient to run the EthCo distillery at 50% of its installed capacity. To make

up the shortfall of feedstock and to ultimately replace the existing molasses feedstock supply at the

EthCo distillery, the bankable feasibility study has concluded that the construction of three mini

syrup mills (15 tph each) would be necessary to ensure complete feedstock security. The mills will

crush sugar cane and concentrate the juice up to syrup. This syrup will then be transported to the

EthCo distillery for processing into Ethanol. The three 15 tph mini mills will be able to process 2 00

0000 tons (2 000ha sugar cane) of cane per annum which will be sufficient for full feedstock

replacement at the EthCo distillery.

The areas identified for agricultural development are South of Bua River, ranging from 45 km (TA

Mphonde/Kalongo lands) to approximately 60 km (Kakasi/Kaombe land areas near Nkhotakota) from

the EthCo distillery. It is proposed that two mini mills will be constructed at one site at TA Mphonde

and a further third mini mill at the Kakasi/Kaombe area. A third site, at Pendwe/Chizuma is proposed

as a back-up site, should the TA Mphonde lands not be available for any unforeseen reason. The mini

mill sites are designated with “M” on Figure 1 below.

Figure 1: Map of Project Area, showing the Identified Mini Mill Sites

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The mini mills will be owned and operated by experienced EthCo personnel and will be able to

operate for extended periods to ensure that there is sufficient feedstock supply for the distillery

throughout the year.

Project Location

The project is located in the central part of Malawi in the Nkhotakota district. Figure 2 below

illustrates the project location in relation to the EthCo distillery.

Figure 2: Showing the Regional Project Location in relation to the EthCo Distillery

Project Promoters and Stakeholders

This development project is being sponsored by Press Corporation Limited and promoted by EthCo

to ensure that they have sufficient feedstock to operate their distillery at full capacity. EthCo will be

the stakeholder in the plant and equipment for the mini mills.

Project Area

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Other stakeholders involved will be the communities and the potential outgrower farmers, who

presently fall under the control of TA Mphonde. The outgrower famers will be grouped under the

banner of Kabadwa Cane Growers Association, which will be the organised legal entity through

which the farmers can access funding/financing as well as the facilitation of training and ongoing

community sensitisation. The areas/communities potentially involved in the development project

are listed in Table 1 below.

Table 1: Shows the Potential Agricultural Areas that have been identified for Development and their Relative distance from the EthCo Distillery

Energy Cane Fermentable Supply to EthCo

Site Name Gross

Available Area

Gross Area to be Confirmed

No. of Mini-mills

Max Distance to

MM

Distance to EthCo

(ha) (ha) 15TPH (km) (km)

Pendwe/Chizuma 1133 +Additional 2 4 45

Kalongo/Ngalatete 285 497

5.5 51

Kakasi/Kaombe 101 88 +

Additional 1 4 60

Total 1519 585

+Additional 3

Mini Mill Project Description The project concept is that the mini syrup mills will receive sugar cane feedstock from Outgrowers

existing within close proximity to the mini syrup mill sites. It is proposed that the mini mills will

create an off take market to new small growers within the surrounding areas as well as reduce

existing haulage costs. The feedstock supplied to the proposed mini syrup mills will be processed

into sugar juice after which it will be concentrated into syrup. The syrup concentrate will then be

transported by a contractor in one tonne containers to the EthCo distillation plant at Dwangwa.

The cane received will be processed by crushing; juice extraction; juice evaporation and acidification

to produce a highly concentrated (85o Brix) fructose glucose and sucrose syrup. An additional by

product as result of the process is the fibrous bagasse which will be fed into a boiler as a fuel and

burnt to produce steam power generation through a Turbine Alternator set and process heating. The

plant will generate 890kW of Power.

The size of the mill has been based on a 15 tch mini mill supplied by Techrevo Engineers of India.

This model is larger and includes a power plant option that will generate sufficient power to run the

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entire mill. The mini syrup mills will be located so as to either make use of borehole water or extract

water from streams riparian to Lake Malawi.The plant will only require water at the start up point

and there after shall be self-sufficient from a water usage perspective as there is water released in

the evaporation process.

Figure 3: Proposed EthCo mini mill site layout

Civil and Structural

The civil structural portion of the mini syrup mill will be the main foundation for the boiler and for

the milling process and evaporation section. Associated structural steel will be installed to provide

support to the various sections in the mill as well as the mill building. Additional water piping and

pumping will be provided to each of the mills.

Roads

Access roads will be developed to allow easy entrances and exits for each site for cane haulage as

well as the vehicles transporting syrup from the mini mills to Dwangwa distillery. The fields that will

be supplying the respective mini syrup mills will be located on the same side of the M5 Highway thus

eliminating the need for crossing the road during haulage. The use of secondary gravel roads

connecting the sugar cane supply fields to the respective mini syrup mills will further reduce the

need for haulage along the M5 Highway resulting in an insignificant change to the existing level of

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traffic along the M5 Highway. The secondary gravel roads to be used, which connects the respective

sugar cane supply fields to mini syrup mill site 1 has been indicated by red lines in figure 4 below:

Mechanical

The main mechanical infrastructure will be an overhead crane gantry allowing for the off and on

loading of syrup storage tanks.

Electrical

Plant lighting may be necessary for the mill site for security and visibility services. Additional cabling

will be installed outside of the main contractor’s scope of work.

Buildings/ Offices

A small office will be set up for administration purposes. Site fencing will be established to ensure

security of the mill.

Number of People employed Min-mill Staffing Requirement

Power Plant 29 Plant Engineer/Foreman 1 Boiler Operator 4 Bagasse Store Operator 4 Ash Plant Operator 4 Cleaners 8 Boiler Attendant 4 Turbine Operator 4 Syrup Mill 66 Maintenance Maintenance Foreman 1 Boiler Makers 1 Welders 1 Artisans 1 Maintenance Workers 1 Labourers 4 Operations Shift Superintendent 1 Supervisor Extraction 4 Offloading (Operator) 4 Mill Operator 8 Lime Plant Attendant 4 Clarifier Operator 4 Filter Operator 4 Heater and Evaporator Operator 4 Pump and Tank Attendant 4 General Cleaner 16 Lime Off Loader 4

Total Staff 95

It is estimated that each mini mill will make use of 95 staff members.

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ENQUIRY FOR EIA SERVICES

JANUARY 2015 EthCo RAMA EIA02

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Project Site MINI MILL SITE 1: TA MPHONDE

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Mill Site

Name Central Co-ordinate Points WGS 84 Projection Area (ha) Distance to

Power line (m) Distance to Stream

(m)

1 TA Mphonde 12°48’52.93’’S 34°13’35.89’’E

A Lat.: 12° 48' 51.62" S, Lon.: 34°13' 33.12" E

2.27

870

435

(2 x 15tch mills at same site)

B Lat.:12° 48' 47.24" S, Lon.: 34° 13' 32.86" E

C Lat.: 12° 48' 46.81" S, Lon.: 34° 13' 34.93" E

D Lat.: 12° 48' 44.82" S, Lon.: 34° 13' 38.53" E

E Lat.: 12° 48' 46.96" S, Lon.: 34° 13' 40.68" E

MINI MILL SITE 2 (BACK-UP /ALTERNATIVE TO SITE 1): PENDWE/CHIZUMA

Mill Site

Name Central Co-ordinate Points WGS 84 Projection Area (ha) Distance to

Power line (m) Distance to Stream

( m)

2 Pendwe ( Alternate to

Site 1) 12°47’19.56’’S 34°12’0.46’’E

F Lat.: 12° 47' 14.48" S, Lon.:34° 11' 58.72" E

3.19 715 384

G

Lat.: 12° 47' 08.56" S, Lon.:34° 11' 55.73" E

H

Lat.: 12° 47' 07.76" S, Lon.: 34° 12' 03.21" E

J

Lat.: 12° 47' 11.04" S, Lon.: 34° 12' 02.53" E

K

Lat.: 12° 47' 14.15" S, Lon.: 34° 12' 02.45" E

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MINI MILL SITE 3: KAKASI/KAOMBE

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Mill Name Central Co-ordinate Points WGS 84 Projection Area (ha) Distance to Power Distance to

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Site line (m) Stream ( m)

3 Kakasi/Kaombe 12°52’55.71’’S 34°16’2.24’’E

L Lat.: 12° 52' 55.90" S, Lon.:34° 16' 01.24" E

2.71 692 1300

M

Lat.: 12° 52' 53.46" S, Lon.:34° 16' 03.09" E

N

Lat.: 12° 52' 52.74" S, Lon.: 34° 16' 01.99" E

P

Lat.: 12° 52' 48.15" S, Lon.: 34° 16' 05.41" E

Q

Lat.: 12° 52' 52.12" S, Lon.: 34° 16' 10.59" E

S

Lat.: 12° 52' 56.86" S, Lon.: 34° 16' 02.20" E

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Project Scope

The project comprises the development of:

3 x 15 tch mini syrup mills to crush sugar, renewable energy power production;

Front end modifications to the EthCo distillery to receive syrup feedstock;

Agricultural land development;

Plant, agricultural and enabling infrastructure development;

Project Phasing

The project will be executed in three phases as can be seen in Shows the Phased approach to the

Development below.

Table 2: Shows the Phased approach to the Development

Site Area Distance from EthCo

(km)

1 – Phase 1 TA Mphonde 46

1 - Phase 2 TA Mphonde 46

2 – Phase 3 Kakasi/Kaombe 60

In order to minimise OPEX and CAPEX costs the following strategy is proposed:

The first two mini mills will be consolidated into one mill, erected in two phases – the first

phase being 15 TPH and the second an easy expansion to 30 TPH;

The third mill will be a stand-alone 15 TPH unit;

The season length will be 218 days;

The OTE will be 85% (Qualified EthCo operators);

The juice will inverted from sucrose into glucose and fructose before the evaporation process;

The syrup brix will be 85Bx which will result in lower transport costs and lower storage tank

capacity and eliminate the risk of crystallisation during storage

Phase 1 Water Access and Land Development Water for irrigation purposes will be obtained from Lake Malawi and preliminary investigations show

that more than adequate water is available for the irrigation of 2 000ha of sugar cane.

The land will be developed in a phased approach which will coincide with the construction of the

mini mills. The plan is to develop approximately 655 ha at a time to supply successive mini mills over

a three year period, ultimately resulting in 1935ha of irrigated sugar cane in the ground.

Project Process Description (Plant and equipment)

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The following are emphasised in more detail in the Bankable Feasibility Study:

The Inverted Syrup Process

Energy Balance of each mini mill

The Mini mill Design Parameters

Cane Receiving and Off-Loading

Cane Preparation Process

Juice Extraction Process

Juice Heating Process

Clarifying Process

Evaporation Process

Boiler Sizing

Bagasse Handling

Syrup Storage

Turbo Alternators Sizing

Distillery Modification Requirements

Vinasse Disposal Process

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ANNEXURE 2: EIA REQUIREMENTS AS PER MALAWI DEPARTMENT OF ENVIRONMENTAL AFFAIRS

Telephone: 0 I 771 Ill Telefax No.: 01 773 379 Ou1· Reference No.:EAD 99/07/05 Your Reference No ...................................... .

Communications should be addressed to: The Director of Environmental Affairs

The General Manager Ethanol Company PO Box 50 Dwangwa

Dear Sir,

ENVIRONMENTAL AFFAIRS DEPARTMENT LINGADZI HOUSE

CITY CENTRE PRIVATE BAG 394

LILONGWE3 MALAWI

29th August, 2014

Review of Project Brief for the Proposed Ethco Mini Syrup Mills Project, TA Mphonde, Nkhotakota District

Following the submission of your project brief for the above captioned project, I wish to inform you that the project brief was reviewed.

Following the review, I wish to inform you that the project requires a detailed Environmental Impact Assessment (EIA) to be carried out. To this effect, the Terms of Reference (TORs) for an EIA are provided as attached .

Should you have any question on the foregoing, please do not hesitate to contact us.

Yours faithfully,

TERMS OF REFERENCE FOR EIA FOR THE PROPOSED CONSTRUCTION OF ETHCO MINI SYRUP MILLS, TA MPHONDE, NKHOTAKOTA DISTRICT

1. Provide a full description of the nature/components of the proposed construction of Ethco Mini Syrup Mills Project with respect to the name the proponent, postal address, aim and objectives of the project, the spatial location of the site for the mills with aid of appropriate topographical maps of the area (at least at a scale 1 :50,000); the estimated cost of the project, the size of land for the project sites, the number of people to work on the sites (provide a breakdown of males and females, locals and nonlocals), number of people to be residing on the project site(s).

2. Describe main activities to be undertaken in implementation of the proposed project at the sites covering pre-construction, construction and operation phase. In the description include the type of machinery to be used, nature and quantity of wastes that will be generated, facilities for appropriate waste disposal and management of waste and estimated costs for the activities.

3. Provide a concise description of the existing biophysical characteristics and the socio-economic environmental status of the proposed area by identifying and analyzing:

• Physical conditions: soil, geology, site topography, temperature, rainfall patterns and drainage system (water courses)

• Biological Resources: scope of vegetative resources of the project area including riparian vegetation, extent of terrestrial and aquatic fauna;

• Socio-economic conditions: demographic trend within and around the project area, main land uses,business activities, basic infrastructure and health situation including description of HIV I AIDS prevalence rates; and

• Any changes anticipated during implementation of the project area.

4. State the reason for selecting the proposed sites of the project as opposed to other sites. Consider alternatives to the project, such as alternative sites and the reason for selecting the preferred option

including the 'no project' alternative. The EIA should also consider 'within -project' alternatives e.g. designs, technology of the syrup mills etc.

5. Predict environmental impacts associated with the activities at and around the site (s) , focusing on both the positive and negative impacts. The impacts should include:

• Project location (e.g. loss of forest, loss of agricultural land, loss of grazing pastures, impact on flora and fauna, impact on cultural site, Impact on Lake Malawi, Bua river and other important ecosystems in the area, and resettlement of people);

• Project design (e.g. impacts associated with power, noise and vibrations, occupational health, exhaust emissions etc.)

• Impacts associated with construction works; and • Project operation (particular attention should be given to effluent

disposal, solid waste management, pollution by oils, chemicals and fumes from the plant) for all phases of the project through its projected life.

6. Prescribe the measures to eliminate, reduce or mitigate the negative effects identified and the measures to enhance the positive effects.

7. Propose an Environmental Management Plan by which all of the measures prescribed in 6 above, will be carried out. Indicate the budget for the recommended mitigation measures, specifications of who will be responsible for these measures and the schedule when these measures will take place during construction and operation of the project.

8. Propose an Environmental Management and Monitoring Plan by which a ll mitigation measures recommended in Environmental Management Plan will be monitored. The plan should include the activities, frequency of monitoring, the key monitoring indicators, resources required and the authorities responsible for monitoring the exercises.

9. Review the legal framework pertaining to the proposed project and indicate their impacts on the project. Reference should at least be made to the Environment Management Act, Forestry Act, Pesticide Act, Water Resources Act, National Water Policy, National Environment Policy, Malawi National Land Policy, Public Health Act, Occupational Safety, Health and

Welfare Act Malawi Development and Growth Strategy other relevant policies and piece of legislation. Furthermore provide an account of all regulatory licences and approvals obtained for the proposed project to ensure that they are in line with sound environmental management practices and are in compliance with relevant existing legislation.

1 0. Undertake stakeholder consultation to ensure key interested and affected stakeholders are involved in the Environmental Impact Assessment process. Incorporate their views in the report and indicate a record of consultations in the appendices parts of the report.

11. The preparation, presentation and structure of the EIA report should follow the format in the Guidelines of Environmental Impact Assessment for Malawi ( 1997) as stipulated on pages 33-37. The minimum content of required information in an EIA Report is outlined in pages 53-59.

12.Submit 10 hard copies and soft copies of the EIA report to the Director of Environmental Affairs.

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