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Azura-Edo Independent Power Plant Environmental Impact ... - IFC

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<strong>Impact</strong> Significance<br />

The extent of impacts to employment and economy is expected to be primarily<br />

national and regional, although a number of unskilled positions may be<br />

sourced from local communities, following training and capacity building<br />

initiatives for the local workforce and contractors. <strong>Azura</strong> <strong>Power</strong> has also<br />

committed to maximise local employment and contracting, both directly and<br />

through subcontractors. The duration of impacts will extend over the life of<br />

the Project; with certain induced impacts (such as economic activity and<br />

capacity building) continuing beyond Project closure and is therefore longterm<br />

or permanent. As for the probability of impacts, the probability is highly<br />

likely. The overall impact magnitude is considered to be high.<br />

Local employment and contracting is a key priority among local populations.<br />

It is also important to consider strong public resentment amongst some<br />

community members against the neighbouring NIPP Project for its perceived<br />

failure to offer equitable local employment and contracting opportunities to all<br />

three communities. As such, this impact will be viewed with a high degree of<br />

importance by local communities and stakeholders. Evaluation of this impact<br />

also considers the small population at the local level and relatively low<br />

employment, which implies that even a small number of stable, long term jobs<br />

that provide opportunities for training could have a significant positive<br />

impact to household income and spending. Sensitivity to these impacts is<br />

high, due to high local unemployment, high local job expectations and<br />

relatively low levels of training and work experience.<br />

The proponent is committed to ensuring that the requisite infrastructure is put<br />

in place to enable the distribution of electricity (at lower voltages) to the local<br />

communities, as well as evacuation to the national grid at a higher voltage<br />

level. The exact means by which this will be done will be established with the<br />

distribution company. This measure combined with targeted social<br />

investment support to local entrepreneurs will enable the three local<br />

communities to establish small business enterprises that can take advantage of<br />

the increased power supply. The multiplier effects (on all economic sectors) of<br />

this additional power supply will be significant (in an economy where the gap<br />

between supply and demand is amongst the highest in the world).<br />

Therefore, impacts to employment and economy (both locally and nationally)<br />

during the Operation Phase after mitigation, are expected to be positive and<br />

high.<br />

7.13.3 <strong>Impact</strong> Description and Significance: Decommissioning<br />

<strong>Impact</strong> Description<br />

Land acquisition for the Project is expected to further reduce the viability of<br />

agriculture as a source of livelihood in the region. However, during the 20<br />

year operation phase, the Project is expected to require a steady workforce of<br />

90 employees, including 50 permanent site employees and 40 ancillary/<br />

AZURA EDO IPP<br />

7-67<br />

DRAFT EIA REPORT

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