Environmental and Social Impact Assessment Report On Real

state

Promoter: - Tashoma Kebede

Address: - Oromia Regional State, Laga Tafo Laga Dadi Sub
city

Submitted to: - Laga Tafo Laga Dadi, subcity Environment Protection

Authority

Prepared and Submitted

By
ELAG Consultancy Service Firm
Address:- Oromia, LegaTafo Lega Dadi Town
Phone 0911526561/0913423311

December, 2024
Laga Tafo, Ethiopia

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 Table of Contents

Tittle Page
Table of Contents............................................................................................................................................i
Lists of Tables..............................................................................................................................................iii
Lists of Abbreviation....................................................................................................................................iii
1. INTRODUCTION.................................................................................................................................6
1.1. General Overview..............................................................................................................................6
1.3. EIA Methodology Used for The Study..............................................................................................9
1.4. Knowledge Gap...........................................................................................................................10
2. SCOPING REPORT........................................................................................................................11
2.1. Limit of the study area.................................................................................................................11
2.2. Valued Ecosystem Component within the Study Area................................................................11
3. Administrative, Legal and Policy Framework.....................................................................................12
3.1. Policy and Legislative Framework..............................................................................................12
4. Description of The Proposed Project...................................................................................................27
4.1. Background to the project............................................................................................................27
4.2. Project Location.......................................................................................................................27
4.3. Project Objectives....................................................................................................................27
4.4. Main Project Components Associated with the Life Span of Project..........................................28
4.5. Raw materials types, sources and the nature...............................................................................28
4.6. Project production processes........................................................................................................28
5. Description of the Baseline Condition.................................................................................................30
5.1. Physical Environment......................................................................................................................30
5.1.1. Climate and Air Quality...............................................................................................................30
5.1.2. Topography and Climate..............................................................................................................31
5.1.3. Soil Type......................................................................................................................................31
5.1.4. Water Resources..........................................................................................................................31
5.2. Biological Environment...................................................................................................................31
5.2.1. Vegetation....................................................................................................................................31
5.2.2. Wild life.......................................................................................................................................31
5.3. Socio Economic Environment.........................................................................................................32
5.3.1. Economic activity........................................................................................................................32

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5.3.2. Sites of religious, historical and archeological importance.........................................................32
5.4. Public Consultations........................................................................................................................32
6. Identification, Analysis and Assessment of Potential Impacts............................................................33
6.1. Potential Positive Impacts of the project.........................................................................................33
6.2. Negative Impacts of the project...................................................................................................34
7.1. Mitigation measures for Air pollution Dairy Cow Enteric Gas Emissions.................................37
7.3. Manure collection and storage.....................................................................................................37
7.4. Proposed mitigation measure for Excavated soil and dust impacts.............................................38
7.5. Human waste management..........................................................................................................39
7.6. Mitigation measures for solid waste............................................................................................39
7.7. Occupational Health and Safety Impacts.....................................................................................39
7.8. Rehabilitation Plan.......................................................................................................................41
8. Environmental and Social Management Plan (ESMP)........................................................................42
8.1. Environmental and Social Management Plan..............................................................................42
8.2. Environmental and Social Monitoring Plan.................................................................................44
9. Conclusion and Recommendations......................................................................................................46
9.1. Conclusions..................................................................................................................................46
9.2. Recommendations........................................................................................................................47
REFERENCES............................................................................................................................................48

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Lists of Tables

Table 1: Limit Values for Noise level

Table 2: Limit Values for Emissions to Air
Table 3: Summary of key environmental policies, laws and regulations
Table 4: The coordinates of proposed project

Table 5: Impacts on the human environment during the production activities

Table 6: Impacts on biophysical environment

Table 7 Mitigation measures

Table 8: Environmental and Social Management Plan (ESMP)

Table 9: Environmental and Social Monitoring Plan

Lists of Abbreviation

CSE = Conservation strategy of Ethiopia

EIA = Environmental Impact Assessment

EPA=Environmental Protection Agency

ESIA= Environmental and Social Impact Assessment

IEC= Information Education and Communication

NGO = Non-Governmental Organization

OHS= Occupational Health Safety

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EXECUTIVE SUMMARY

Balay Mulat Dairy Farm and Milk Processing Project hired the consultancy firm, ELAG
Consultancy Service PLC, to carry out the present Environmental and Social Impact Assessment.

The name of the project is called Balay Mulat, Dairy Farm and Milk Processing investment
Project located Oromia Regional State, Laga Tafo Laga Dadi Sub city on total area of 12,338 m 2
of land. The core business of the proposed project is Dairy Farm and Milk Processing by
including varies production steps.

Methodology

A number of legislations, policies and instruments are available to support environmental and
social impact assessment process in Ethiopia. In addition to Ministry of Environment, Forest and
Climate Change (MoEFCC) and regional environmental and land administration instruments,
there are sector specific policies and legislations that prescribe the conduct for managing the
environment. The report is prepared so as to fulfill Federal Environmental protection Authority
and Oromia Environment Protection, Forest, and Climate Change Agency requirements’ and to
ensure the borrowers Environmental and social impact Assessment which requires that all
investments proposed should screened for potential adverse environmental and social impacts
and appropriate environmental work be carried out based on the screening results.

Different Environmental and social baseline information found in the study area are identified.
An impact of the project through life cycle is identified.

Positive impacts: supply the raw and processed milk to country at a reasonable price, job
creation and employment opportunities, increase economic activities, increase in the income of
the population working on the site, development of small businesses, possibility of savings for
the local population and create job opportunity for 25 Ethiopian younger and women employees
of the project and payment of taxes to the local and central government.
Negative impacts: Impacts on air pollution, increased traffic volume and congestion, pressure
on public infrastructure, soil, increase of solid wastes, dust emission, terrestrial flora and fauna
(loss of habitat), soil erosion solid and liquid waste impacts.

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Different mitigation measures for these negative impacts have been proposed to reduce to the
minimum their effects on the socio-economic environment.

Among other the proposed mitigation measures are to use protective materials and regularly so
as to minimize dust emissions (personal protective equipment), good site management system is
proposed in order to minimize the impacts of a solid waste. Toilet to be installed to prevent
pollution from human waste. Animal manure is used for feed plantation, compost and biogas
production. In order to ensure that the proposed mitigation measures will be implemented, an
environmental management plan has been developed to guide all activities of the project during
all its phases concerning the protection of the environment. This plan specifies the nature of the
negative impact, the proposed mitigation measures, the indicators in the execution of these
mitigation measures, the time period, the responsibilities and the follow-up needed from
concerned and specified parties. An emergency plan in case of accident was also developed.

Project Alternative Analysis

Some negative impacts of this project can be eliminated, reduced or compensated if the proposed
environmental management plan is followed as proposed. Additional to that some
recommendations have been proposed, so that the execution of the project becomes a success
without harming or with the least negative effect to the environment in general.

Dairy Farm and Milk Processing project owner proposed to undertake training in environmental
and social management systems and the implementation of mitigation measures outlined in this
ESMP as part of capacity building for the Production farm and milk processing in
environmentally friendly, socially acceptable and economically viable manner.

As far as the area is already occupied by the owner for the long time, there are no people or
households to be displaced. Finally the estimated ESMP Implementation budget is 150,000
Ethiopian Birr.

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1. INTRODUCTION
1.1. General Overview

Livestock is an integral part of agriculture contributing to the household livelihood and

economies of developing countries (Herrero et al. 2013). Livestock production and marketing of
its products are essential to the livelihoods of more than one billion people in Africa and Asia
(McDermott et al. 2010). Livestock contributes to poverty reduction, nutrition and food security
and improved income and job creation, which are the United Nations’ Sustainable Development
Goals (Smith 2015). Investment in livestock has a potential to create a multiplier effect. A USD1
spent in livestock will generate USD2.9 in primary livestock production and USD 5.9 in value
added products (AU-IBAR 2015). Dairy production has the highest potential to sustainably
contribute to the Sustainable Development Goals (SDGs) due to its extended value chain.

Dairy farm is considered a major societal asset globally due to its economic and nutritional
benefits. In 2019 alone global milk production totaled 851.8 million tons in milk equivalents
(Outlook, 2020). This contributes to substantial trade impacts, totaling about 76.7 million tons in
2019, as well as major per capita consumption at about 111.4 kg/year globally (Outlook, 2020).
There are over 245 million dairy cows worldwide that on average produce 2,300 kg per year;
although average production is less informative as there is such a major disparity between
productions in different countries (FAO, 2009). This vast amount of milk production has a major
global benefit—for human health, society, and the economy. In countries with developing
economies livestock serve many purposes including: a source of household income, a financial
asset for women, a source of food security, risk management, and a direct link to human health
(Herrero et al., 2013).

Ethiopia holds large potential for dairy development due to its large livestock population, the
favorable climate for improved, high-yielding animal breeds, emerging market opportunity,
improved policy environment for involvement of private sectors, and the relatively disease-free
environment for livestock. Given the considerable potential for smallholder income and
employment generation from high-value dairy products, development of the dairy sector in
Ethiopia can contribute significantly to poverty alleviation and nutrition in the country.

Dairy production in the tropics is predominantly subsistence, characterized by low production

and productivity, dependent on local breeds, and managed under extensive grazing and

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uncontrolled breeding. Milk produced in these systems is dominantly from local breeds, and in
Ethiopia, about 95% of milk produced is from local breeds (CSA 2019). The demand for milk
and milk products is increasing in developing countries and the drivers of change to the dairy
sector are demography, growing economies, underserved markets, encouraging policy and
enabling environment, globalization, and market opportunities (Shapiro et al. 2017).

Meeting the increasing demand for milk and dairy products cannot be realized without rapidly
increasing the number of high producing tropically adapted cows, the number of commercial
dairy herds, and the number of cows per herd and productivity per cow. To support the dairy
sector, different interventions have been made by the government, development partners,
national and international research institutions, and non-governmental organizations. However,
in Ethiopia, the sector is yet to fully realize its potential to produce enough milk and dairy
products to meet the domestic demand. As a result, the country is forced to import powdered
milk and other milk products.

In Ethiopia, dairy production is generally a subsistence smallholder-based industry with

relatively few small and medium commercial dairy farms. In 2019, close to 6.7 million dairy
cows produced an estimated 3.6 billion liters of milk nationally, with most of it (over 95%) from
local breeds (CSA, 2019). Ethiopia’s per capita milk consumption ranged from 32.8 to 36.5 litres
per head/year for the period 2003 to 2012 (Yilma et al. 2017), which is lower than the 110 litres
per head/year in neighboring Kenya (Corne et al. 2016).

Ethiopia’s five-year (2015 to 2019) average total cattle population was 59.2 million animals
(range 56.7 to 61.5 million), comprising 55.3% and 44.7% females and males, respectively, and
growing at an annual growth rate of 1.2%. Despite the large number of indigenous breed milking
cows in the country, their milk production and productivity remain low. The annual cow milk
production for the period 2015 to 2019 ranged from 3.06 to 3.30 billion liters (average 3.13
billion liters) due to mainly attributed to low genetic potential of the indigenous breeds, limited
availability of feed, high disease prevalence and poor animal health services, low level of
husbandry, and limited extension and research support.

The annual increase in milk production is lower than the annual human population increase,
hence the country is forced to increasingly import powdered milk and other dairy products. The

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dairy sector has the potential for creating jobs. In developing countries such as Ethiopia, where
job creation for the youth is a priority government agenda, a vibrant dairy value chain has the
potential to generate gainful job opportunities.

The plant site well as the source of raw materials/animal husbandry is located in area. This
project is improvement in production capacity of milk products production project.

The Environmental Impact Assessment report structure is classified into ten chapters. Chapter
presents introduction and background, objectives and methodology of the study of the EIA study.
Chapter two Scoping Phase, Chapter three discuses on policy, legal and administrative
frameworks under which the EIA study operates. Chapter four presents brief description of the
milk processing production project. Chapter five presents baseline environmental condition of
the project area. Chapter six discusses on the expected and likely impacts of the project
implementation, and chapter seven outlines proposed mitigation measures to be implemented to
counter the adverse impacts. Chapter 8 outlines alternative analysis, Chapter nine presents
Environmental and social Management and Monitoring Plan to be adopted by the investor for
compliance to environmental requirements. Chapter ten briefly presents conclusion and
recommendations of the EIA study.

Author Presentation
Thus, Balay Mulat, Dairy Farm and Milk Processing Project (Hereinafter referred to as the
Developer/Project Proponent) commissioned/hired ELAG Consultancy Service Firm
(Hereinafter referred to as the Consultant) to carry out Environmental Impact Assessment (EIA)
study.

This Environmental Impact Assessment report has been produced by ELAG Consultancy Service
PLC that was hired by the Developer, Balay Mulat,, Dairy Farm and Milk Processing. The
Consultancy firm is based in Addis Ababa and established branch offices in main city of the
country and has got strong background and knowledge in the area of Environmental Impact
Assessment, and a track record of over many years for conducting studies of Environmental
Impact Assessment for development Projects in Ethiopia in general.
1.2. Objective of the Environmental and Social impact Assessment Study

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The general objective of this Environmental Impact Assessment (EIA) study was to identify
significant social and environmental impacts associated with implementation Dairy farm and
milk processing project; and to propose mitigation measures that enable in harmonizing the
problems with the social, economic and ecological conditions to ensure environmental
sustainability during the site preparation and operation phase.
The specific objectives of the study are to:-

a. To assess the existing bio-physical and socio-economic environment of the project area.
b. To identify positive and adverse impacts of the project on physical, biological and
socioeconomic environments of the area.
c. To asses and suggest the remedial/mitigation measures for adverse impacts
d. To prepare environmental management and monitoring plans, roles and responsibilities of
institutions those carry out implementations of the recommended environmental mitigation
measures.
e. To detect the effects of the project on the neighboring environment such as the water bodies,
the soil, the people, the infrastructure, the fauna, the flora and the atmosphere;
f. To detect the effect of the neighboring environment on the project, this means the effect on
the soil of the project and the surrounding activities;
g. To propose alternative measures where it is noticed that adverse effect may occur.
1.3. EIA Methodology Used for The Study

Based on terms of reference (ToR) prepared by the consultant, the methodology used by the
consultant consisted in the following:

The methodology adopted for conducting this environmental impact assessment study through
primary and secondary data collection methods.

The collections of secondary data on environmental components were collected from relevant
documents and literature sources (desktop study) and primary data is also collected through site
observation.

a. Data Collection methods and tools Information

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Secondary data are collected through, reviewing published national and regional state policies,
legislatives, regulations and guidelines related to environment.

Primary data are collected using observation, and checklist was used to collect data from
secondary sources from site observation and camera was used to collect information from site
observations.

b. Field Survey

Site visits to obtain baseline condition of the project area: an extensive field visit to the
project area was conducted by the professional specialist to collect primary data on biophysical
and socio-economic conditions of the project area as well as to identify the existing
environmental issues and the potential environmental effects of the proposed project.

Site visits were made from December 03-06, 2024 to assess the baseline environmental
conditions of the proposed project site; to define impacted areas and identify environmental
components that are likely to be significantly affected by the proposed project. During field
survey, basic data and information on the biophysical resources, historical and cultural sites have
been collected.
c. Review of Existing Literature and Maps
Relevant documents of previous studies as well as important policies, proclamations guidelines
were reviewed. Guidelines such as Federal EIA 18 procedural Guidelines, Different region
Revised EIA Guidelines, Environmental Impact Assessment Guidelines on plastic project were
reviewed. Sectorial environmental policies, proclamation on Environmental Impact Assessment
were also reviewed.
1.4. Knowledge Gap
The assessments of impacts are based on the available technical descriptions of the proposed
dairy farm and milk processing and baseline information collected through field and desktop
reviews. The assessment therefore relies on the accuracy of the data and information sources.
The Project description available is that at a level of a limited feasibility assessment and certain
areas are still to be refined and expanded. The following gaps were come across by ELAG
during the assessment.

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 Due to limited feasibility study, there were assumptions made on the selected dairy farm and
milk processing design
 The construction phase will be contracted out once the Project has been approved and
therefore the size and procurement of the workforce is unknown as well as the schedule of
activities to be undertaken.

These limitation and gaps have been addressed by commitments included in the Environment
and Social Management Plan drafted for the Project where possible.

2. SCOPING REPORT
2.1. Limit of the study area
In the aim of deciding upon the limits of the study area for the project and drawing the list of
activities and impacts to be studied during the assessment, the consulting firm carried out an
initial environmental examination and scoping. The scoping exercise has been carried out with
the following main objectives:-

o To define the limits of the study area

o To define list of Valued Ecosystem Components within the study area
o To define list of activities, type and magnitude of the proposed project
o To define list of Impacts to be studied.

In order to carry out the above tasks, the firm employed different tools and techniques relevant to
the proposed project. Use of environmental scoping checklists and informal consultation of
different stakeholders (including experts, local administrators, and people, etc) are considered to
accomplish the tasks.

The proposed project vicinity is accessible for all infrastructure, water and energy. Therefore, the
proposed project will be implemented without any difficulty within the project schedule. In
addition, the project vicinity already delineated for building purpose and land acquisition
compensation is not needed. Therefore, there was no visible limitation observed in the project
vicinity.

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2.2. Valued Ecosystem Component within the Study Area

The project as indicated earlier is located in Oromia Regional state, Shagar City, Laga Tafo Laga
Dadi Sub city administration and established at the area proposed for dairy farm and milk
processing. There are no sensitive ecosystems in the vicinity the value of which might be
affected. The vicinity is already occupied with, medium and small dairy farming currently under
operation. Therefore, there is no significant natural ecosystem to be impacted by the project.

3. Administrative, Legal and Policy Framework

This Chapter provides an overview of the national and international policy and legal framework
within which the Project is being developed. It discusses the overall policy and legal framework
in Ethiopia together with specific sectorial laws on environment as well as health and safety, and
labor. This Chapter provides an overview of the following:

d. Applicable Ethiopian legislation covering environmental protection, worker health and safety
and labor management;
e. Applicable environmental health and safety standards;
f. Relevant international agreements; and
g. Requirements and guidelines of international financial institutions (IFIs) with regard to
environmental and social matters, where applicable.
3.1. Policy and Legislative Framework

The EIA study for the project is carried out within the framework of the local and national
environmental regulation and guidelines. Ethiopia adopted its Constitution in 1995, which
provides the basic and comprehensive principles and guidelines for environmental protection,
and management in the country. The FDRE consists of the Federal State and Regional States.
Proclamations 33/ 1992, 41/1993 and 4/ 1995 defined the duties and responsibilities of the
Regional States which include planning, directing and developing social and economic
development programs as well as protection of natural resources. Accordingly the legislative
frameworks applicable to the proposed project are relevant proclamations, national

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environmental guidelines and regulations issued by the Federal Democratic Republic of Ethiopia
(FDRE) and that of Addis Ababa city Admiration are outlined below.

3.1.1. National Policy& strategy

3.1.1.1. The Environmental Policy of Ethiopia (EPE, 1997)

This policy provides a number of guiding principles that indicate and require a strong adherence
to sustainable development, and a high commitment to, among other things, the need:

 To ensure that environmental impact assessments consider not only physical and biological
impacts but also address social, socio-economic, political and cultural conditions;
 To ensure that public and private sector development programs and projects recognize any
environmental impacts early and incorporate their containment into the development design
process;
 To recognize that public consultation is an integral part of EIA and ensure that EIA
procedures make provision for both an independent review and public comment before
consideration by decision makers; and
 To ensure that an environmental impact statement always includes mitigation plan for
environmental management problems and contingency plans in case of accidents.

This policy sets the scene for developments and projects within Ethiopia, particularly those of
national significance. The policy underpins the regulatory requirements for EIA and pollution
control and requires developers to aspire to the highest international standards of environmental
and social management for project development.

3.1.1.2. Public Health Policy

Ethiopia in general, has a low level of health, even in comparison with other Sub-Saharan
countries. This is largely related to low levels of income and widespread poverty, low levels of
education, nutritional deficiencies, poor environmental conditions, and inadequate access to
health services. The government has therefore assigned a very high priority to significantly
improving health care and, in 1998, issued a health policy based on the following main
principles:

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  Democratization and decentralization of the health care system.

 Promotion of disease preventive components.

 Ensuring accessibility to health care for the whole population.

 Development of appropriate capacity based on needs assessment.

 Promotion of private sector and NGO participation in the provision of health care.

 Promotion and strengthening of inter-sectorial activities through a national self-reliance

program.

The priority areas of the policy are in the field of Information Education and Communication
(IEC) of health to create awareness and behavioral change of the society towards health issues,
emphasis on the control of communicable disease, epidemics, and on diseases that are related to
malnutrition and poor living condition, promotion of occupational health and safety, the
development of environmental health, rehabilitation of health infrastructures, appropriate health
service management system, attention to traditional medicines, carrying out applied health
research, provision of essential medicines, and expansion of frontline and middle level health
professionals.

3.1.1.3. Policy on HIV/AIDS of the Federal Democratic Republic of Ethiopia

Government Institution, Non-Government Organizations, religious organizations bilateral and

multilateral agencies, and private sectors, community based Institutions and the community at
large shall be mobilized to support people living with HIV/AIDS and affected family members.
Special attention shall be given to people who are abandoned and helpless.

The right of HIV/AIDS individuals for confidentially in HIV serologic testing and diagnosis
shall be respected. Furthermore, access to employment, education, public facilities and the right
to live wherever they want shall be respected.

3.1.1.4. ERA’S policy on HIV/AIDS

The Ethiopian Roads Authority acknowledges the fact that the HIV/AIDS pandemic is a reality
in the work place and may have detrimental effects on the goals and objectives of the Authority.

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 Commits itself to creating a supportive and non-discriminatory working environment through
dispelling of myths and stereotypes and by ensuring that infected employees are treated in the
same manner as other employees;

 Seeks to minimize the social, economic and developmental consequences to the Authority
and its staff;

 Undertakes that management will provide resources and leadership to implement the
HIV/AIDS and Sexually Transmitted Infections (STI) programme;

 Commits itself to offering support, counseling and education services to infected and affected
employees; and

 Commits itself to establishing and maintaining an Employee Assistance Programme. (VCT,

Care & Support )

 Insures sustainable resources for the Prevention & Control of HIV/AIDS.

3.1.1.5. National Policy on Women

This Policy was issued in March 1993 emphasizing that all economic and social programs and
activities should ensure equal access of men and women to the Country’s resources and in the
decision making process so that they can benefit equally from all activities carried out by the
Federal and Regional Institutions.

The Policy objectives are:

 Laws, regulations, systems, policies and policies and development plans that are issued by
the Government should ensure the equality of men and women, special emphasis should be
given to the participation of rural women.

 Economic, social and political policies and programs, as well as cultural and traditional
practices and activities, should ensure equal access of men and women to the country’s
resources and the decision making process.

 The central government and regional administrations should ensure that women participate in
and benefit fully from all activities carried out by central and regional institutions.

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 Development institutions, programs and projects should ensure women’s access to and
involvement in all interventions and activities.

3.1.1.6. Conservation strategy of Ethiopia (CSE)

The Conservation Strategy of Ethiopia (CSE) was launched in 1989. Its aim was, as its name
suggests, to study the natural resources, environmental imperatives and development demands in
the country and to harmonize them. The harmonization process was to be activated through the
formulation of an appropriate environmental policy, which was it to be translated into action
through the development of laws and the setting of standards on the one hand, and through the
development of action plans and their implementation on the other, as well as through
environmental education and awareness-raising. The Environmental Policy, which impinges on
all sectors of development and all sections of society, was approved in 1997, the laws are being
drafted and the standards are being set.

All this was started when the country was at the height of a long civil war, and the project faced
many challenges and has had to adapt its workings to the rapidly-changing political and
administrative conditions. It also faced a serious threat of being derailed by well-meaning but
inappropriate external intervention in the form of aggressive "aid". All these pressures, far from
being destructive, helped to formulate an appropriate Environmental Policy.

3.1.2. Proclamation and Regulations

3.1.2.1. The Investment Proclamation No. 769/2012

This proclamation encourages and expansion of investment, especially in the manufacturing

sector has become necessary so as to strengthen the domestic production capacity and there by
accelerate the economic development of the country and improve the living standards of its
peoples;, it has become necessary to enhance and promote the equitable distribution of
investments among regions and benefit the society by ensuring competitiveness among
investments made by investors; it has become essential to put in place a system of supervision to
ensure that permits and incentives granted to investors are used for the intended purposes; the
system of administration of investment needs to be transparent and efficient:, it has been
considered that the establishment of industrial development zones helps by creating enabling and
competitive condition, to interrelate manufacturing sectors based on value interrelate

16
manufacturing sectors based on value creation as well as to attract and expand investment; to
these ends, it has become necessary to revise the existing law on investment; ,in accordance with
Article 55(1)of the constitution of the federal Democratic republic of Ethiopia, has issued
proclamation on :

 Investment objectives and areas of investment

 Forms of investment and capital requirements for foreign investors
 Investment permit
 Registration of technology transfer and collaboration agreements with domestic
investors
 Investment incentives, guarantee and protection
 Investment administration
 Industrial development zones: Establishment of industrials development
zones ,administration of industrial development zones, regulations Related to industrial
development zones
 Loans and utilization of foreign currency
 Employment of Expatriates
3.1.2.2. Public health-proclamation (proc. No 200/2000)

In addition to the occupational health and safety measures and precautions indicated in the labor
laws, this public health proclamation underscores the need for avoiding machineries or
instruments that can generate excessive noise or minimizing the effects by the use of noise
reducing apparatus or instrument. In addition, the proclamation prohibits:

 The discharge of untreated liquid waste generated from septic tanks, seepage pits and
industries into water bodies, or water convergences.
 The disposal of solid, liquid or any waste in a manner, which contaminates the environmental
or affects the health of the society.
3.1.2.3. The Labor law Proclamation 496/2006

The Labor Proclamation (which was revised in 2006) provides ‘the basic principles which
govern labor conditions taking into account the political, economic and social policies of the
Government, and in conformity with the international conventions and other legal commitments

17
to which Ethiopia is a party with a view to translating into practice the objectives referred to
above’. In Part Seven, Chapter One, Article 92 of this proclamation (Occupational Safety, Health
and Working Environment, Prevention Measures and Obligations of the Employers), the
requirements in terms of the protection of workforce health and safety is clearly stipulated. The
proclamation requires an employer to take the necessary measures to adequately safeguard the
health and safety of the workers. Workforce health and safety is an important aspect considered
for identifying the potential environmental, health and safety issues that can arise from the
project.

3.1.2.4. Proclamation No 455, to provide for the expropriation of land holdings for
public purpose and payment of compensation

The proclamation states the expropriation of rural land for development purpose and the proper
compensation of individuals whose landholding has been expropriated. The proclamation clearly
describes the basics and amount of compensation in determining the compensation for the land
expropriated from individuals. Valuation of expropriated property and roles and responsibilities
in executing the expropriation and compensation processes by federal affairs ministry and
woreda administrations is also delineated in the proclamation.

3.1.2.5. Council of Ministers Regulations No. 135 /2007) on the Payment of

Compensation for property situated on landholdings expropriated for public
purposes

These Regulations are issued by the Council of Ministers pursuant to Article 5 of the Definition
of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia
Proclamation No. 471/2005 and Article 14(1) of the Expropriation of Landholdings for Public
Purposes and Payment of Compensation Proclamation No. 455/2005 with a purpose of not only
paying compensation but also to assist displaced persons to restore their livelihood.

3.1.2.6. The Proclamation for the Development, Conservation and Utilization of

Forests Proclamation No. 542/2007)

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The proclamation states that the development and conservation and sustainable utilization of
forests plays a decisive role in satisfying the needs of the society for forest products and plays
significant roles in the enhancement of national economy in general.

It also states that investment opportunities and incentives shall be provided to investors engaging
in the forest industry. Regarding production and movement of forest products the proclamation
states that no person shall harvest forest products from government forest without permission
from appropriate local body. With respect to private forest developers a private forest owner
should notify and obtain forest product movement permit prior to harvesting and transporting the
product from place to place. Private forest owners have the duty in general to comply with
directive issued on the safety of the environment, conservation of catchment, biodiversity and
unique natural trees and wildlife.

3.1.2.7. Proclamation No 197/2000, Ethiopian Water Resources Management

Article 11 of this proclamation states that without prejudice to the exceptions specified under
Article 16 of this Proclamation, no person shall perform the following activities without having
obtained a permit from the Supervising body (Ministry of water and Energy or delegated bodies),
construct waterworks; supply water, whether for his own use or for others; transfer water which
he/she abstracted from a water resource or received from another supplier; and release or
discharge waste into water resources unless otherwise provided for in the regulations to be issued
for the implementation of this Proclamation. Any person shall be required to discuss his/her
proposal with the supervising body prior to applying\ for a permit for the purposes specified in
Sub-Article (I) of this Article. Article 16 states any person shall utilize water resources for the
following purposes without holding a permit issued by the Supervising body: dig water wells by
hand or use water from hand-dug wells; use water for traditional irrigation, artisanal and for
traditional animal rearing, as well as for water mills.

3.1.2.8. Environmental Proclamation Laws and Regulations

The proclamation establishes a system that enables coordinated but differentiated responsibilities
among environmental protection agencies at Federal and Regional levels. The proclamation
stipulates the need for the establishment of Sectorial and Regional Environmental Units and

19
Agencies. The principal organization responsible for environmental protection is the
Environmental Protection Authority (EPA), which operates at both Federal and Regional levels.
3.1.2.9. Establishment of Environmental Protection Organs (Proclamation No. 295/2002)
This law clarifies the institutional mandate and responsibilities of the Environmental Protection
Authority (EPA) and aims to integrate environmental considerations into the policies and
decision-making of sectorial agencies through such means as the establishment of environmental
units in these agencies at the federal level and the creation of independent environmental
agencies at the regional level. This law also re-established the Environmental Protection Council,
a cross-sectional co-coordinating body that advises the federal EPA and supervises its activities.
The mandate of the Council includes: (i) reviewing environmental policies, strategies and laws
proposed by the EPA and issuing recommendations to government; (ii) providing appropriate
advice on the implementation of the Environmental Protection Policy of Ethiopia; and (iii)
reviewing and approving directives, guidelines, and environmental standards prepared by the
EPA.

3.1.2.10. Environmental Impact Assessment (Proclamation No. 299/2002)

This Proclamation aims primarily at making the EIA mandatory for categories of projects
specified under a directive issued by the EPA. The law specifies projects and activities that will
require an environmental impact assessment (EIA). The proponent of the project must prepare
the EIA following the format specified in the legislation. The EPA will then review the EIA and
either approve the project (with or without conditions) or reject it. Under this legislation, the
EPA has to prepare procedures, regulations, environmental guidelines and standards for the EIA.
Environmental guidelines are among the tools for facilitating the consideration of environmental
issues and principles of sustainable development and their inclusion in development proposals.
This Proclamation requires, among other things: Specified categories of projects to be subjected
to an EIA and receive an authorization from the EPA or the relevant regional environmental
agency prior to commencing implementation of the project; Licensing agencies to ensure that the
requisite authorization has been duly received prior to issuing an investment permit, a trade or
operating license or a work permit to a business organization;

The EPA or the relevant regional environmental agencies may issue an exemption from carrying
out an EIA in projects with an insignificant environmental impact; A licensing agency may

20
suspend or cancel a licence that has already been issued where the EPA or the relevant regional
environmental agency suspends or cancels environmental authorization; Procedures that need to
be followed in the process of conducting an environmental impact assessment are described in
the Proclamation. Thus a project developer is expected to act as follows: Undertake a timely
environmental impact assessment, identifying the likely adverse impacts, incorporating the
means of their prevention, and submitting the environmental impact study report accompanied
by the necessary documents to the EPA or the relevant regional environmental agency. Ensure
that an environmental impact assessment is conducted and an environmental impact study report
is prepared by an expert who meets the requirements set forth by the directive issued by the EPA.
Submit an environmental impact study report to the EPA or the relevant regional environmental
agency for review.

3.1.2.11. Environmental Pollution Control Proclamation No. 300/2002

This Proclamation states "No Person or establishment shall pollute or cause any other person to
pollute the environment by violating the relevant environmental standards.” Environmental
standards specified in the proclamation include: Standards for the discharge of effluents into
water bodies and sewage systems; Air quality standards that specify the ambient air quality and
give the allowable amounts of emission for both stationary and mobile air pollution sources;
Standards for the types and amounts of substances that can be applied to the soil or be disposed
of on or in it; Standards for noise providing for the maximum allowable noise level taking into
account the settlement patterns and the availability of scientific and technological capacity in the
county; and Waste management standards specifying the levels allowed and the methods to be
used in the generation, handling, storage, treatment, transport and disposal of the various types of
waste
3.1.2.12. Solid Waste Management Proclamation No. 513/2007
The solid waste management proclamation stipulates, among others, that each region or
administration unit shall set its own schedule, and based on that, prepare its solid waste
management plan and report implementation. It further spells out that each administration unit
shall ensure that measures are taken to prevent pollution from mishandling of solid wastes.
Similarly, existing institutional arrangements overseeing the environmental performance of the
industry were summarized. A waste management plan will be prepared during the detailed

21
design stage of the project to mitigate the impacts through reduction in the use of consumable
items, recycling of materials, and disposal of hazardous wastes at certified locations.

3.1.3. Regulations Pertaining to the Standards

3.1.3.1. Effluent Standards
Ethiopia has no national standards governing effluent discharges from industries. However, since
2003 Ethiopia has had draft regulations governing the quality of the effluent discharged from
facilities to public sewers and surface water systems (EPA, 2003). These draft guidelines require
the facility to meet certain basic water quality standards for trade effluent including sewage.

During the detailed design stage of the project, facility requirements will be finalized and will
require use of sewage systems that conform to international standards and criteria for the
protection of potable water sources downstream.
3.1.3.2. Noise Standards
Ethiopia has no national legislation for noise as well, but World Bank guidelines have been
adopted by EPA and are used for benchmarking purposes along with the draft National Noise
Standards that are being prepared. The guideline for daytime perimeter noise is 55 decibels
(DBA). Table 2 provides noise standards being adopted by EPA for Ethiopia.

Table 1: Limit Values for Noise level

Limits in DBA
Area Code Category of area
Day time1 Night time2
A Industrial area 75 70
B Commercial area 65 55
C Residential area 55 45

1. Day time reckoned to be between 6.00 am to 9.00 pm

2. Night time reckoned to be between 9.00 pm to 6.00 am

3.1.3.3. Ambient Air quality Standards

Although, Ethiopia has no national legislation for air quality so far, the World Bank guidelines
have been adopted by the EPA and are used for benchmarking purposes along with the draft

22
National air quality Standards that are in preparation by the EPA. Table 3 provides the
provisional air quality standards being adopted by EPA for Ethiopia as well the WB/IFC
guidelines values.

Table 2: Limit Values for Emissions to Air

Pollutant Units Guideline values
Ethiopian standard WB standard
Particulate Matter PM2.5 µg/Nm3 None 30a

Particulate Matter10 µg/Nm3 150 100

Sulfur dioxide (as SO2) µg/Nm3 1000 400

Nitrous oxide (as NO2) µg/Nm3 2000 600

3.1.4. Relevant International Conventions

3.1.4.1. International Environmental Conventions & Protocols Ratified by Ethiopia

Ethiopia has ratified the following international conventions on natural resources and
environmental management:

 The Convention on Biological Diversity;

 The Basel Convention on the Control of Trans boundary Movements of Hazardous
Wastes and Their Disposal and Basel Ban Amendment;
 The Bamako Convention on the Ban of the Import into Africa and the Control of Trans
boundary Movement and Management of Hazardous
 Wastes within Africa;
 The International Treaty on Plant Genetic Resources for Food and Agriculture;
 The Convention on International Trade in Endangered Species of Wild Fauna and Flora;
 The United Nations Framework Convention on Climate Change and its Kyoto Protocol;
 The United Nations Convention to Combat Desertification in those Countries
Experiencing Serious Drought and/or Desertification, Particularly in Africa;
 The Cartagena Protocol on Biosafety to the Convention on Biological Diversity;
3.1.4.2. Convention on Biological Diversity (CBD)

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At the 1992 Earth Summit in Rio de Janeiro, world leaders agreed on a comprehensive strategy
for" sustainable development": meeting our needs while ensuring that we leave healthy and
viable world for future generations. In ratifying the Convention, the Parties have committed
themselves to under taking national and international measures aimed at its achieving three
objectives: the conservation of biological diversity; the sustainable use of its components; and
the fair and equitable sharing of benefits arising out of the utilization of genetic resources.
Ethiopia has signed the convention on 10 June 1992 and ratified on 5 April 1994 by ratification
(Proclamation No. 98/1986). Since the adoption of the Convention, the country has taken steps to
translate.

3.1.5. Institutional and Administrative Framework

3.1.5.1. Constitution of the Federal Democratic Republic of Ethiopia (FDRE)

Legal Frameworks: As a supreme law of Ethiopia, all national policies, laws and regulations as
well as institutional frameworks of the country must comply with the constitutional provisions.
The constitution of FDRE, proclamation 1/1995 contains a number of articles, which are relevant
to environmental matters in connection with development objectives as well as to the
Environment in general.
Regarding the right to development Article 43 of the FDRE constitution states that

 The peoples of Ethiopia as a whole and each Nation, Nationality and people in Ethiopia in
particular have the right to improve living standards and to sustainable development.
 Nations have the right to participate in national development and, in particular, to be
consulted with respect to policies and projects affecting their community

 All international Agreements and relations concluded, established or conducted by the state
shall protect and ensure Ethiopia’s right to sustainable development.
 All international Agreements and relations concluded, established or conducted by the state
shall protect and ensure Ethiopia’s right to sustainable development.
 The basic aim of development activities shall be to enhance the capacity of citizens for
development and to meet basic needs.
Article 44 states about Environmental right,

 All persons have the right to live in a clean and healthy environment.

24
 All persons who have been displaced or whose livelihoods have been adversely affected as a
result of state programs have the right to compensation, including relocation with adequate
state assistance.

Article 92 of FDRE also includes the following Environmental objectives

 Government shall endeavor to ensure that all Ethiopians live in a clean and healthy
environment
 The design and implementation of programs and development shall not damage or destroy
the environment.
 People have the right to full consultation and the expression of views in the planning and
implementation of environmental policies and projects that affect them directly
 Government and citizens shall have the duty to protect the environment
In general, the constitution has laid down the policy and legal bases regarding environmental
management to harmonize and integrating environmental considerations into a decision making
process in a manner that promotes sustainable development

3.1.5.2. Ministry of Environment, Forest and Climate change (MOEF&CC)

Ministry of Environmental of Forest and climate change is established under proclamation

No.803/2013. It has a broad mandate covering environmental matters at federal level. Some of
the powers and duties are;
 Coordinate measures to ensure that environmental objectives provided under the
constitution and the principles set out in environmental policy are realized’

 Establish a system for environmental impact assessment of public and private projects, as
well as social and economic development policies, strategies, laws and regulation

 Establish a system to evaluate environmental impact assessment submitted by their

respective proponent, by the concerned licensing organ, or the concerned regional organ
prior to granting permission for implementation in accordance with environmental impact
assessment proclamation.
Table 3 Summary of key environmental policies, laws and regulations

25
No. Policies/ Purposes Applicable
Proclamation/act/ (Yes/No)
Rules
1 Federal constitutions Article 43: the right to people to improved living standards & to Yes
sustainable development.
Article 44: states that all persons have the right to a clean and
healthy environment
2 Proclamation on Enacted to assign responsibilities to separate organizations for Yes
Establishment of environmental development & management activities on one
Environmental hand, and environmental protection, regulations and monitoring
Protection Organs on the other, in order to ensure sustainable use of environmental
Proc. No. 295/2002 resources, thereby avoiding possible conflicts of interest &
duplication of effort.
3 Proclamation on EIA Enacted to make an EIA mandatory for specified categories of Yes
Proc. No. 299/2002 activities undertaken either by the public or private sectors & to
ensure EIA as a legal tool for environmental planning,
management & monitoring
4 Proclamation on Focuses on the right of each citizen to have a healthy Yes
Environmental environment, as well as on the obligation to protect the
Pollution control environment of the country.
Proc. No. 300/2002
5 Proclamation on The major objectives are to conserve, manage, develop and Yes
Development, properly utilize the wildlife resources of Ethiopia; to create
Conservation and conditions necessary for discharging government obligations
Utilization of assumed under treaties regarding the conservation, development
Wildlife Proc. No. and utilization of wildlife; and to promote wildlife-based tourism
541/2007 and to encourage private investment.
6 Proclamation on Focuses on the development, conservation and sustainable Yes
Forest Development, utilization of forests in satisfying the needs of the society for
Conservation and forest products and in the enhancement of national economy in
Utilization Proc. No. general. It provides the basis for sustainable utilization of the

26
 542/2007 country’s forest resources.
7 Proclamation on Deals with appropriation of land for development works carried Yes
expropriation of Land out by the government and determination of compensation for a
Holdings and person whose landholding has been expropriated.
Payment of
Compensation Proc.
No. 455/2005
8 Proclamation on Its objective is to conserve and develop natural resources in rural Yes
Rural Land areas by promoting sustainable land use practices.
Administration and
Land Use Proc. No.
456/2005
9 Proclamation on Provides legal requirements for Ethiopian water resources Yes
Ethiopian Water management, protection and utilization.
Resources
Management Proc.
No. 197/2000
10 Proclamation on Enhancing popular participation in implementing the country’s Yes
Public Health Proc. health sector policy, promoting attitudinal changes through
No. 200/2000 primary health care approach and promoting healthy environment
for the future generation.
4. Description of The Proposed Project
4.1. Background to the project
The project is feasible bringing economic growth to the area in particular and the surrounding
areas in general and hence worthy to undertake as per the schedule.

The dairy industry plays an important role in our daily life. It is difficult to realize how fast
changes are taking place in the dairy industry. Milk is an important human food, it is palatable,
easy to digest and highly nutritive.

Enzymes play an important role in the production of cheese. Raw milk contains several native
enzymes some of which can be used for analytical and quality purposes for example

27
pasteurization can be assessed by determining indigenous alkaline phosphate activity. Anyone
might want to capitalize on the largest and fastest growing milk and milk products market.

Biogas processing is now in the hand of the private sector but is struggling against unfair
competition from the informal sector and imported similar dairy commodities. Quality assurance
system is weak and competition from imports is mainly on the basis of quality difference rather
than price. This will require self-regulation rather than control from the government. This
implies the industry will have to organize itself to better face challenges of economic order of the
region and global as whole.

4.2. Project Location

This project will be carried out at Laga Tafo Laga Dadi subcity which is located in the Oromia
regional state, Shaga City. It situated about 21kms away from the capital Addis Ababa to the way
to Finfine –Dessie road. The project site covers the total area of 12,338m2 of privately owned of
land. The area is suitable for the production of dairy, vegetables, cereal, forage, and beef, goat,
and sheep fat. Laga Tafo Laga Dadi Sub city area is one of the potential districts of Addis Ababa
milk shed of Oromia, Ethiopia.

4.3. Project Objectives

The objectives of this project are:-
a) The project will nearest to the central market
b) Large area for future expansions.
c) All the infrastructure facility is either already in existence or is in the vicinity.
d) Manpower is locally available.
4.4. Main Project Components Associated with the Life Span of Project

The life cycles of activities incorporated in Dairy farm and milk processing Project is classified
as pre-construction, construction, operational and decommissioning Phases.

1. Within pre-construction phase site clearance, road construction, bush clearing, trash removal
& disposal, and provision of raw materials to the site are achieved.

28
2. In construction phase quarry site preparation will be achieved associated with varies
installation activities like machines, product material storage, raw material storage, guard
house and office construction works.
3. In the third phase of operational phase, production processed milk will be implemented.
4. Finally, in the decommissioning phase development & rehabilitation of the excavated land
features will be the last achievements. The implementation period is indicative it can be
adjusted depending on the capacity and the context on the actual implementation. The order
of implementation is very important since prior actions are required for the subsequent ones.
4.5. Raw materials types, sources and the nature

The main raw materials for dairy farm and milk processing are rearing cattle which to get a milk
and other raw are processed milk packaging material. Totally for this plant no need to foreign
currency to get a raw materials, which is advantages of agro industry.

4.6. Project production processes

The project provides complete services at the engineering and process, production and
procurement of machines and finally commissioning stages design of the facilities.
 Milk Receipt and Storage Units
 Milk Standardization and Pasteurization Unit
 Yoghurt, Ayran, Labneh Cheese Production Lines
 Spreadable and Semi-Firm Cheese Production Lines
 Cream and Butter
 Ice Cream and Dressing Lines
 CIP Cleaning Systems
End Products
Dairy foods like milk, cheese and yogurt
Different machines

29
Figure 1. Milk Processing Machine

Figure 2:- Cheese Production machine

5. Description of the Baseline Condition

30
This chapter provides the current status of the receiving environment, from both an
environmental and social perspective, related to the Project Area of influence. It is based on the
observations made by the ELAG team during visits to the area and the collection of primary and
secondary environmental and social data. Relevant literature has been reviewed and relevant
information has been collected for the baseline. The sampling and monitoring locations have
been identified based on:

 Topography and physical features of the site;

 Locations of water bodies;
 Locations of potential receptors (including residential dwellings) and sensitive ecological
areas; and
 Proximity to the potential project activities.
This section presents an overview of the biophysical and socioeconomic characteristics of the
area in which the development will take place (i.e., within the Project “footprint”), as well as the
surrounding areas that may be directly or indirectly affected by the proposed Project.

5.1. Physical Environment

5.1.1. Climate and Air Quality

According to data from the Ethiopian National Meteorology Agency, the regional state of
Oromia experiences two wet seasons. The short rain period of February – April followed by the
main wet season being June – September, with the month of May being a drier month of
transition between the two. The months of May and June provide the maximum temperatures of
the year (average of 23°C) with December being the coolest month (average of 20°C). The
regional climate is temperate and consistent (based on the country’s proximity to the equator)
with little variances throughout the year. The dominant wind direction is from the E and SE
directions.

5.1.2. Topography and Climate

31
The area lies in area with a mean annual rainfall of 1500mm and mean temperature ranging from
130C to 240C.The altitude of the area ranges from 1800 to 2200m above sea level. The sub city
consists of traditional climatic zone which are referred as Woina Dega climatic zone.

5.1.3. Soil Type

The soil of the project area is said to be high land soils with acidic or slightly acidic properties
having black to brownish color influenced by high mean annual rainfall in rainy seasons and
overhead sun strike in sunny seasons. Basically these soils are mostly devoid of organic matters
as most areas vegetation’s are situated in scattered manner. The furthermore these soils are
having good workability characters when they are dry or wet and they don’t have cracking,
shrinking and sliding properties and are good for constructing high raising construction without
worrying about the depth of their foundation.

5.1.4. Water Resources

The site will be abstracting water from a permitted borehole on the property which was already
installed and operational for the dairy farm plant. It is unknown if any pump testing or
quantitative modeling was undertaken to determine the recharge and sustainability of the
borehole before it was drilled or permitted. Boreholes are used extensively in the area as there is
no connection to a main supply. There is boreholes located on the properties on either side of the
site (within 150m), it is understood that these are utilized however the usage and water quality is
unknown.
5.2. Biological Environment
5.2.1. Vegetation

Currently the site was not fully urbanized/ and there also are grasses and plant species commonly
observed on and around the site.

5.2.2. Wild life

The diverse climate and topography phenomena have provided a wide range of environments
which form favorable habitat for a formation of wide variety of fauna and flora in project area
generally and in the project site specifically. However due to uncontrolled hunting and

32
destruction of natural habitat as the result of rapid population growth and related human
activities there is a rapid decrease of wild life in size, species and distribution.
5.3. Socio Economic Environment
5.3.1. Economic activity
The majority of the economic activities of the proposed project area fall into the sub-urban
agricultural practices on fragmented lands and keeping few livestock for their subsistence
livelihoods. As the investment activities are flourishing in these areas these days many are being
converted from their subsistence agriculture to employees and traders. The soil of the proposed
project area is suitable for crop production like wheat, barely legumes and livestock production
like cattle, sheep, chickens and others.

5.3.2. Sites of religious, historical and archeological importance

The project site observation showed that there is no religious historical or archeological site with
significance importance in the proposed project area. Because this site was stay on the hand of
promoter, without informal license they are doing normal livestock production for a long period
of time.
5.4. Public Consultations
In Ethiopia, there are a number of Federal and regional regulations and guidelines which require
consultation with project related beneficiaries and affected peoples. To this in effect, community
participation and consultations were undertaken among stakeholders in the administrative
hierarchy of the administration in which the proposed dairy farm and milk processing is going to
be installed as an integral part of the ESMP report preparation because the proposed project is
found far from households and found in medium and small dairy farm site.

The communities discuss the impacts of the project and most of participants are agree with
implementation of the project, while few of them have fear of the problem like sound pollution
liquid waste discharge from the company. Lastly after much discussion the project owner will be
planned to correct all the predicted environmental and social impacts.

33
6. Identification, Analysis and Assessment of Potential Impacts

The continual of Balay Mulat, Dairy Farm and Milk Processing Project will have impacts on the
natural and socio-economic environments. The impacts might be of positive or negative nature.
Each positive and negative impact will vary in extent and it can be either enhanced or mitigated.
The main focus of this chapter is to identify the significant impacts of both negative and positive
nature. Thus; all impacts have been assessed and evaluated with standard parameters so that they
are grouped in to high, medium and low significance. Accordingly; due attention have been
given for mitigation measures against those impact with high and medium significance. For the
purpose of this assessment, impacts and/or benefits that will occur during construction and
operation phases will be considered. The environmental analysis will therefore attempt to screen
out the insignificant impacts and bring the major significant impacts into the attention of decision
makers.

6.1. Potential Positive Impacts of the project

• Supply the processed milk products over all of the country at a reasonable price
• Job creation and employment opportunities for 25 workers those who will be employed by
the project,
• Improvement of general welfare for the local population as a result of increased income;
• Increased economic activities directly or indirectly related to the project;
• Increase in the income of the population working on the site and development of small
businesses that will serve the employee of the staff;
• Enhance skill and technology transfer
• Possibility of savings for the local population and employee of the project.
• Payment of taxes to the local and central government
• Achieving food security and nutrition.
• Offering livelihoods and spurring economic growth.
• Promoting One Health.
• Contributing to the conservation of biodiversity and genetic resources. ...
• Reducing greenhouse gas emissions.

Table 5: Impacts on the human environment during the project implementations activities

34
 No Impacts Classification
1 Employment opportunities to the population of the sub city Positive, important and
directly concerned with the works and to the people in the long term
vicinity.
2 Increase in the income of the population working on the site Positive, important and
and development of small businesses that will serve the long term
employee of the plant
3 Possibility of savings for the local population and employee Positive, important and
of the gravel production plant. long term
4 Risk of the increase of HIV/AIDS and other Sexually Negative, middle and
Transmitted Diseases due to the increase in income which temporary impact
may cause unsafe behaviors.
5 Risk of the accidents on the personnel of the site. Some of the Negative, middle and
workforce may not be familiar to production techniques temporary impact
which can be a cause of accidents. If the protection equipment
is not adequate accidents are most likely to occur.
6 Provision of raw and processed milk products over all Positive, important and
country permanent impact

6.2. Negative Impacts of the project

Dairy cows and their manure produce greenhouse gas emissions which contribute to climate
change. Poor handling of manure and fertilizers can degrade local water resources and
unsustainable dairy farming and feed production can lead to the loss of ecologically important
areas, such as prairies, wetlands, and forests.

A. Excavated soil and dust impacts

The project will produce fugitive dust during construction, vehicular emissions and other mining
operation which would deterioration of air quality. The dust will affect negatively the health and
the wellbeing of residents. Dust from the construction materials and work seems to be both
smearing and when breathing unhealthy. The classification of this impact is negative, middle and
temporary impact.

35
B. Impacts on solid waste

Failure to halt project scraps may jeopardize the health of large segments of the population with
the serious political and socio-economic consequences. The project can be used different type of
grass for animal feed for livestock farming which can throw here and there in the project and
during milk processing there is also different packaging plastics, which sometimes left over and
contaminate the environment. The other solid waste generate during livestock farm, animal
dung, which used for biogas generations. The waste also used as the organic compost for
developing animal food which is planted in the compound of the project.

C. Liquid waste impacts

Impact of waste water will be totally controlled and only the minimum quantum of water will be
used. Monitoring of Water Consumption: water consumption rate audit will be conducted;
internally by project to explore possibilities for minimization of water consumption periodically.
The quantity of wastewater generation depends upon the quantity of water used for various
purposes. The waste water released is from dairy farm room, washing different room, machine,
washing hand basin shower and toilets.

Wastewater generated from the different activities of the proposed project will be treated in
Sewage Treatment Plant and treated water will be utilized for flushing and landscaping. Zero
discharge will be maintained, there is no wastewater will be discharged outside. Hand basin and
toilet waste stored to cesspool.

D. Impacts on the biodiversity

The project area is covered with Biological resource such as forested habitat with grass and some
hardwood trees. Various small mammals and resident can use the habitat.

E. Impacts on the physical environment

Solid and liquid waste discharges like, scraps of metals from machinery's, discharges of fuels,
lubricants or oils from heavy duty machineries, vehicles, during maintenance or overhauling, as
wells discarded items such as packaging items are vulnerable to the qualities of water or
fertilities of soil.

36
F. Noise and odor emission

The impact does not have to affect the quality of life of residents, evidenced by the performed
analysis of occurrence of residents’ complaints against odor nuisance. The primary sources of
noise emission in biogas plants processing waste include: −

 Extraction from the digestive dehydration station,

 biogas desulphurization installation
 power generators,
 compactors on landfills (concerns plants with landfills)
G. Deforestation
Raising cattle for agricultural purposes, including producing milk for use in dairy products,
contributes heavily to deforestation, as land is cleared to grow the food needed for the cattle.
H. Worker Health
Working alongside animals that can weigh a ton or more is just one dangerous aspect of being
employed by a dairy farm. The cows are not the only dangerous aspect of working on a dairy
farm. Workers are also likely to be injured by heavy machinery and manure storage systems.

Table 6: Impacts on biophysical environment during the construction phase

No Impacts Classification
1 Air pollution by the dust emitted during gravel Negative, middle and long term
production
2 Loss of habitat for some fauna and flora species and Negative, middle and permanent
biodiversity reduction as a consequence of migrating impact
species due to vegetation clearing of the construction
site;
3 Soil erosion due to exposure of the soil after removal of Negative, middle and temporary
ground cover; impact
4 Effects of generated solid wastes Negative, low and permanent
impact
5 Occupational health and Safety problem Negative, low and permanent
6 Odor /bad smell during biogas processing Negative, low and permanent
7. Proposed Enhancement/Mitigation Measures

37
This section provides measures envisaged to avoid, reduce minimize present or compensate
negative impacts of the project. Considering the project design, most of the mentioned impacts
are not likely to happen. The following mitigation measures which consider policy, engineering
and social-economic interventions, have been recommended.

7.1. Mitigation measures for Air pollution Dairy Cow Enteric Gas Emissions

In addition to changes to the diet ingredient composition, there are also additives to diets that
may mitigate enteric emissions. Nitrates offer great promise for their potential to mitigate CH 4
focusing on the potential for use in dairy cattle.

Nitrate in the diet serves as a non-protein N source that acts as an electron receptor resulting in
effective and consistent reduction of enteric emissions. In addition to the previously described
additives, a variety of additional organic substrates have been applied as amendments in diverse
applications

7.2. Reducing unpleasant odors

The strong odor of garbage from biogas production is known, especially when applied on the
ground. Unpleasant odors may occur around biogas plants because of the various compounds
that are formed by microbial degradation of organic matter. The formation of these compounds
depends on the composition of the organic material, the populations of microorganisms and the
process management. The odor problems can be minimized by the right choice of materials and
process management, but their concentration decrease is limited, as they are part of the natural
decomposition process that generates biogas. However, the formation of odorous compounds can
be reduced by placing indoor installations and treating the air coming out with biological filters

7.3. Manure collection and storage

The first step in manure management is collecting it. Manure and urine are deposited in wide
alleyways between feed bunks where an animal eats and free stalls, where they sleep. Manure is
collected various ways: by scraping the floors with long, wide automated shovels or robotics;
vacuuming using vacuum trucks; or flushing with water or a combination of these techniques.

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Flushing is an essential manure management tool because it helps prevent certain gaseous
emissions.

Traditionally, manure is used as a fertilizer or soil amendment either directly by using liquid
manure (either before or after anaerobic digestion) with irrigation water or after composting of
solid manure. Manure is an excellent source of nutrients for plants. It is high in nitrogen,
phosphorus, and potassium, which are essential nutrients for plant growth. This means that plants
cannot grow without them. While nitrogen, phosphorus, and potassium can be found in healthy
soils, farmers, gardeners, horticulturalists, and even backyard veggie enthusiasts often need a
little boost on their land.

The project owner own or rent crop land used to grow feed for their cows in order to avoid
additional expenses. The manure comes from their own cattle and helps improve the quality of
their soils in order to grow more feed.

Aside from fertilizer, manure can also be transformed into compost. This is an excellent option
when the manure is either unsuitable for application directly to land or perhaps there is not
sufficient land for the amount of manure available. Compost differs from raw manure because it
releases nutrients more slowly; therefore the risk of nutrient leaching is diminished. Compost
also helps reduce the odors associated with manure, is easier to handle because it is lighter, and
provides another way of storing manure until it is ready to be used.

7.4. Proposed mitigation measure for Excavated soil and dust impacts
 Reduce speeds of the project vehicles in the areas
 Spray water so as to prevent high dust emissions
 Provide and use occupational safety for workers
 Maximize re-use of all excavated materials in the works
 Dispose of surplus excavated materials only at designated sites considering topsoil
conversation and quality by considering its long term soli stability against shrinking and
swelling.

To avoid the risk of excessive soil erosion, radical terraces should be constructed at the lower
part of the site and also plant grass preferably elephant grass and trees so as to stabilize the soil.

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7.5. Human waste management

Permanent toilets will be set up. This is a sanitation system that does not require any water to
function. Not only does it save on water use, but it is entirely isolated from the surrounding
environment and cannot contaminate underground water resources. The system utilizes a natural
biological process to break down human waste into a dehydrated odorless compost-like material.

7.6. Mitigation measures for solid waste

Solid waste mitigation measures recommended in the dairy farm are.

o Collect information non the factory waste source/streams

o Prescribe method on how to collect, transport, treat dispose the wastes.
o Put waste baskets at reasonable distance along each production line so as to collect wastes.
o Practice waste management through applying the 3Rs-reduce, Reuse and recycle in every
factory waste management system.
o Promote waste source reduction
o Design temporary waste collection site
7.7. Occupational Health and Safety Impacts
The major occupational Health safety impacts happen with the dairy farm and milk processing
project during construction and operation is mitigated by the following mitigation measures.
• Protective uniform
• Dust Masks
• Helmets
• Eye goggles with a dark shade so as to protect the workers from the bright sun shine
• First aid equipment should be available at the site at all time, and several individuals among
the permanent personnel on the site should have the skills necessary to use the equipment.
The insurance should be contracted for all the personnel during the construction phase and for
those who will be employed in the project during the operation phase. Workers will be regularly
trained on the use of the equipment as well as on the safety measures and procedures so as to
limit the risk of accidents due to the ignorance in the equipment use as well as the importance of
the safety procedures.

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Table 7 below summarizes all the proposed mitigation measures in line with the anticipated
impacts

No Impacts Mitigation Measures

1 Air pollution by the fugitive emission • Soil watering when soil works are being executed
generated during excavation. and where dust is emitted.
2 Risk of excess soil being eroded down Construction of radical terraces and planting of grass
the river below the site and trees on those terraces.
3 Loss of habitat for some fauna and flora •During land clearing, to maintain a maximum of
species and biodiversity reduction due to vegetation
vegetation clearing of the site; •Implementation of agro forestry techniques well
adapted to the site
4 Risk of the accidents on the personnel of •Provide all staff with protective equipment’s
the site. If the protection equipment is • To teach the workers how to use adequately these
not adequate accidents are most likely to equipment
occur.
5 Risk of the increase of HIV/AIDS and • The biggest workforce will be recruited from the
other Sexually Transmitted Diseases due city, and they normally return to their homes.
to the increase in income which may •Sensitization campaign to the staff on HIV/AIDS
cause unsafe behaviors. and other STDs, and avail condoms on site, free of
charge.
6 Effects of generated solid wastes; • Regular inspection of the site
• The garbage will be sorted on site and • Remove the soil degraded
categories of wastes will be treated • Efforts will be made to utilize the solid waste to
separately. the extent possible.
.The non-usable part would be appropriately
dumped in an officially designated area
7 Contamination of ground water by • Regular inspection of the machines
generated by used oil from the • Used oil will be collected, stored in water tight
maintenance of the machines recipients and taken to reuse or recycling plants
• Maintain storage and disposal area to prevent

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 accidental release
• Provide spill mitigation equipment, double wall
tanks and / or diking storage tanks
8 Manure impact Used the manure for compost and land farm
9 Odor impacts The odor problems can be minimized by the right
choice of materials and process management, but
their concentration decrease is limited, as they are
part of the natural decomposition process that
generates biogas

7.8. Rehabilitation Plan

The aim of rehabilitation is to provide a reshaped landform to allow Original existing land.
Earthworks involving cut and fill will be required to shape and rehabilitate the land form at the
end of the project. It is expected there will be a balance of cut and fill across the entire project
site and therefore it is unlikely that fill would need to be imported into the site.

The pit will be filled by the soil from the site and leveled. Tree species that are environmental
friendly will be planted as well as grass preferably elephant grass will be planted so as to
stabilize the soil. It is believed that after this the plot will be ready for re-utilization as the
relevant authority deems it necessary.

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 8. Environmental and Social Management Plan (ESMP)
8.1. Environmental and Social Management Plan

This section describes the modalities provided in the project for the implementation of the
proposed mitigation measures to its potential negative impacts. It proposes the institutional
responsibilities for the implementation of the mitigation measures, the implementation
indicators, the time frame for monitoring and follow-up and also the estimated cost for the
implementation activities. The Environmental Management Plan of the Balay Mulat is
summarized in a table 8 below.

Table 8:- Environmental Management Plan

No Negative Mitigation Implementation Timefram Responsibility Estimated

Impacts measures indicators e cost(Birr)

1 Risk of air -Using Number of Througho Balay Mulat 15,000/anual

quality due to personal workers use ut the
dust and equipment PPE project
emission from -changes the KG of food cycle
animal manure diet ingredient ingredients
composition changed
2 Risk of the • Provide all •Number of Througho Balay Mulat 15,000
accidents on staff on with accidents on ut the
the personnel protective site project
of the workers equipment and •Availability of cycle
use adequately protective
equipment’s
3 Risk of the •Sensitization •Number of All the Balay Mulat 10,000
increase of campaign to Sensitization project
HIV/AIDS the staff on campaigns on life
and other HIV/AIDS and HIV/AIDS and
Sexually other avail other avail
Transmitted condoms on condoms on

43
 Diseases site site
(STD)
4 Pollution of •Oil servicing Number of All the Balay Mulat 10,000
surface and of machines times when project
ground water will be made in service is done life
from due to oil garages.
from machines
5 Increase in the •watering • Amount of During Balay Mulat 15,000
risk of health construction dust in the constructi
because of the site atmosphere on stage
air pollution of the
from fugitive project
dust
6 Loss of habitat Implementation Number of Entire life Balay Mulat 10,000
and of agro forestry agro forestry of the
biodiversity techniques well trees planted project
reduction adapted to the span
site
7 Risk of fire •The •Number of During Balay Mulat 10,000
accidents extinguishers fire accidents operation
should be avoided
inspected •
The personnel
must be trained
on their use
Total 00

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8.2. Environmental and Social Monitoring Plan

Table 9: Environmental and Social Monitoring Plan

Parameter to be Monitoring Indicators Measuremen Frequenc Institutional Phase cost

Monitored t y Responsibility
•Provide all staff on with • Number of accidents Observation Biannuall Balay Mulat Throughout the 10,000
protective equipment on site y project cycle
(helmets, gloves, coats •Availability of
and boots where protective equipment
applicable).
•Use adequately these
equipment
Check the ability change magnitude of methane measurement biannually Balay Mulat and Throughout the 15,000
food ingredients generated s Sub city EPA project cycle
Manure collected properly Manure used for biogas Observation Monthly Balay Mulat and 10,000
production Sub city EPA
Manure used for
compost
• Sensitization campaign •Number of consultation “ Sub-City Health All the project 10,000
to the staff on HIV/AIDS Sensitization campaigns Office life
& other STDs, and avail on HIV/AIDS and avail
condoms on site, free of condoms

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charge.
• Soil watering during the •Amount of dust in the Observation During Balay Mulat During 10,000
time of soil works atmosphere constructi construction
on
Implementation of agro Number of agro forestry “ Monthly “ Entire life span 15,000
forestry techniques well trees planted
adapted to the site
The extinguishers should . Number of fire ” ” ”” ”” During 15,000
be regularly inspected and accidents avoided operation
maintained • Number of trained
•The personnel of the labor
plant must be trained on
their use
Total 0

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9. Conclusion and Recommendations
9.1. Conclusions
Dairy cattle provide a major benefit to the world through up cycling human inedible feedstuffs
into milk and biogas processing. However, as beneficial as this process has become, it is not
without potential negatives. Dairy cattle are a source of greenhouse gases through enteric and
waste fermentation as well as excreting nitrogen emissions through their feces and urine.
However, these negative impacts vary widely due to how and what these animals are fed. In
addition, there are many promising opportunities for further reducing emissions through feed and
waste additives.

It is concluded that the total fugitive dust emission during construction phase from Balay Mulat
project will not have significant incremental or cumulative dust impact at the site and should
equate to less than 0.5% of the existing total dust emissions. The erosion from the site can be
managed to a minimal only by construction of radical terraces and planting grass and trees for
soil stabilization.

Generally, Balay Mulat Dairy Production and milk processing project is socially acceptable,
economically feasible and environmentally sound. An environmental evaluation found that the
project components involve appropriate technologies that do not pose any significant
environmental consequences.

The project expected to have a significant positive impact on the improvement of livelihoods.
Some minor and temporary negative environmental impacts may occur, resulting mainly from
the pre-construction, construction, operational & decommissioning activities. However, the
negative impacts can be mitigated to acceptable levels through integration of environmental
mitigation measures in planning and implementation of the proposed project.

According to this EIA report, strong effort is made to include environmental considerations into
the proposed project so as to mitigate any biophysical and human impacts that could result from
the implementation of the plan. Therefore, it can be concluded that there will be no severe or
significant impacts that prevent the implementation of the proposed project; if alternative
mitigation measures discussed in EIA report are seriously considered.

47
In respect to environments of great concern, the field survey confirmed that the project activities
will not affect any historical/cultural site, wildlife reserves and other ecologically sensitive areas.
The proposed project plan is accepted by the residents’ community and stakeholders responsible
for planning, implementation and/or facilitation of economic and social development programs
in the study area. The acceptance by the local community is based on the assumption that they
will have the opportunity to have access to job opportunity without affecting their dwelling
environment. Moreover, it is believed that implementation of the proposed project will bring
substantial improvement in quality of life for the community.

9.2. Recommendations
It is recommended that;

• In order to have minimum and tolerable residual environmental and social impacts, and
enhance the potential benefits, the proposed mitigation measures are properly implemented at
the right time, and necessary follow up of their effectiveness should be made through well
planned monitoring.
• All appropriate environmental management measures detailed in this report, together with
any other environment management commitments should be implemented throughout out the
entire life of the project.
• Releasing of waste to the surrounding should consider the prevailing climate change issue
and require detail analysis for its sustainability

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REFERENCES
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