SOCIAL IMPACT ASSESSMENT FOR THE SWAZILAND RAIL LINK PROJECT

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SOCIAL IMPACT ASSESSMENT FOR THE SWAZILAND RAIL LINK PROJECT Prepared for: Transnet Project: 109578 2 July 2013 Draft SIA SCOPING REPORT - Mpumalanga

Document Control Record Document prepared by: Aurecon South Africa (Pty) Ltd 1977/003711/07 Aurecon Centre Lynnwood Bridge Office Park 4 Daventry Street Lynnwood Manor 0081 PO Box 74381 Lynnwood Ridge 0040 South Africa T F E W +27 12 427 2000 +27 86 556 0521 tshwane@aurecongroup.com aurecongroup.com A person using Aurecon documents or data accepts the risk of: a) Using the documents or data in electronic form without requesting and checking them for accuracy against the original hard copy version. b) Using the documents or data for any purpose not agreed to in writing by Aurecon. Project 109578 Swazi Rail Link EIA SIA Scoping Report 2 July 2013 Revision Rev 2

1. Introduction 1 2. Methodology 1 3. Socio-economic profile of the study area 3 4. Municipalities in Mpumalanga Province 4 The following local municipalities as indicated in Figure 2 are affected: 4 4.1. Albert Luthuli Local Municipality 5 4.2. Msukaligwa Local Municiplaity 6 4.3. Mkhondo Local Municipality 7 5. Anticipated Social Impacts 9 5.1. Negative socio-economic impacts 9 5.2. Positive socio-economic impacts 10 5.3. Measures to mitigate adverse impacts and enhance positive impacts 10 6. Conclusion 13 7. References 14 7.1. Albert Luthuli Local Municipality. 2011. Integrated Development Plan 2007-2011.4 th rev 2009/2010 Sourced at http://www.albertluthuli.gov.za/.../23_80f2edc23be8f250a6002483d21e68a7. Accessed on 27 th June 2013 14 7.2. Msukaligwa Local Municipality. 2010. Integrated Development Plan 2013-2014. Sourced at http://www.msukaligwa.gov.za/.../idp/20112012%20msukaligwa%20idp.pdf. Accessed on 27 th June 2013. 14 7.3. Mkhondo Local Municipality. 2011. Integrated Development Plan 2011 2016. Sourced at http://cgta.mpg.gov.za/idp/gertsibande2011-12/mkhondo2011-12.pdf. Accessed on 27th June 2013. 14 7.4. Stats SA. 2011. Statistical release. Sourced at http://www.statssa.gov.za/publications/p03011/p030112011.pdf. Accessed on 27th June 2013 14 7.5. Stats SA: 2011. Census 2011 results. Sourced at http://mobi.statssa.gov.za/census/toilet.html. Accessed on 26 th June 2013 14 7.6. Stats SA: 2011. Census 2011 results. Sourced at http://mobi.statssa.gov.za/census/piped%20water.html. Accessed on 26 th June 2013 14 7.7. Stats SA: 2007. Community survey 2007. Sourced at http://www.statssa.gov.za/publications/report-03-01-33/report-03-01-332007.pdf. Accessed on 26 st June 2013 14 7.8. Stats SA: Census 2011 results. Sourced at http://mobi.statssa.gov.za/census/electricity.html Accessed on 21 st May 2013. 14 TABLES Project 109578 Swazi Rail Link EIA SIA Scoping Report 2 July 2013 Revision Rev 2

Table 1: Albert Luthuli Local Municipality... 5 Table 2: Msukaligwa Local Municipality... 6 Table 3: Mkhondo Local Municipality... 7 FIGURES Figure 1: Affected Provinces... 3 Figure 2: Affected Local Municipalities in Mpumalanga Province... 4 Project 109578 Swazi Rail Link EIA SIA Scoping Report 2 July 2013 Revision Rev 2

1. Introduction The baseline social conditions of a community (community profiles) are the existing conditions and past trends associated with the human environment in which the proposed activity is to take place. The description of baseline conditions includes the relationship with the biophysical environment, historical background, social resources, culture, attitudes and social conditions, economic and population characteristics. Social impact assessment (SIA) process focuses on evaluating the impacts development has on community social and economic well-being. This analysis relies on both quantitative and qualitative measures of impacts. Assessing proposed developments in a socioeconomic context will help both the developer and affected community to identify potential social equity issues, evaluate the adequacy of social services and determine whether the project may adversely affect overall social well-being. SIA scoping intended to gain an initial understanding of the socio- economic environment of the proposed Project area. Through scoping initial socio-economic issues that may influence project decisions were identification and these will be considered during development of the terms of reference for the impact assessment phase. This document entails therefore SIA scoping through assessment of the social environment along the railway link in South Africa within affected local municipalities. Through this assessment Transnet will evaluate the impacts its proposed development may have on community s social and economic well-being. 2. Methodology Our methodology took into account the distinction between social change processes and social impacts. A change process refers to a change that takes place within the receiving environment as a result of a direct or indirect intervention. An impact follows as a result of the change process. Impacts are those changes that are physically felt and emotionally experienced, positively and negatively. However, a change process can only result in an impact once it is experienced as such by individual persons, by groups of people and households, a community or society as a whole, social organisations and institutions individual/community on a physical and/or cognitive level. The sustainability of projects is influenced by the balance that is created between the socioecological environment and the proposed project intervention. As far as possible, a symbiosis must be established between the natural environment and commercial projects. This is the express purpose of the SIA process. Page 1

Our methodology was based on a desktop review of secondary data including the following: existing socio-economic baseline data, studies and management plans; and secondary statistical information, relevant maps and aerial photography as well as: documents describing the proposed project and associated activities during its various phases (the location and length/ size of surface infrastructure, the required servitude area, etc.); relevant socio-demographic and economic data (such as census data pertaining to the study areas); Integrated Development Plans for the affected Local Municipalities; documents and studies pertaining to other current and proposed projects (for instance, documents describing the socio-economic impacts that have resulted from other similar projects in South Africa and Swaziland); and documents produced during the Public Participation Process supporting the EIA, which will assist in identifying key stakeholders and public expectations and concerns regarding the project. Page 2

3. Socio-economic profile of the study area The study area in South Africa relates to the areas within the railway line and associated infrastructure will be located and affects Mpumalanga and KwaZulu Natal Provinces, as highlighted in Figure 1 below. Three local municipalities in Mpumalanga province and six municipalities in KwaZulu Natal province will be affected. The aim of this section is to contextualise the study by developing a socio-demographic profile that captures the relevant characteristics of the affected local municipalities. Figure 1: Affected Provinces Page 3

4. Municipalities in Mpumalanga Province The following local municipalities as indicated in Figure 2 are affected: Albert Luthuli Local Municipality (MP301); Msukaligwa Local Municipality (MP302); and Mkhondo Local Municipality (MP303). Figure 2: Affected Local Municipalities in Mpumalanga Province Page 4

4.1. Albert Luthuli Local Municipality Albert Luthuli Local Municipality is found in the Gert Sibande District Municipality with an area of 5,559 km2. Carolina is the Seat of the municipality. The Municipal area of jurisdiction stretches roughly from Syde to Ekulindeni (Crysbestos) along the Swaziland and South African border in the east, towards Hendrina to the west and then roughly from Nooitgedaght and Vygeboom Dams in the north to Warburton in the south. The area is transversed by three prominent east west and north-south provincial routes, namely R 38, R36 and R33. All three provincial routes play a tremendous role in serving as transport and economic linkages linking all areas not only within the Albert Luthuli Municipal area but also with other important areas in the Nkangala, Ehlanzeni and Gert Sibande regions. Table 1 below provides a summary of the population characteristics in the municipality. Table 1: Albert Luthuli Local Municipality Population Characteristics Male 87 188 Female 98 822 Total 186 010 Households 47 705 Average Household Size 3.80 Female Headed Households 49.30% Formal Dwellings 76.50% Population Age Distribution (%) Percentage of Total Population 0-15 36.50% 15-64 58.20% 65+ 5.30% Population density (p/km 2 ) 3,39 p/km 2 Page 5

Population growth (%) -0.09% p.a. Unemployment rate 35.40% Youth unemployment rate 45.10% Household services Percentage Flush toilet connected to sewerage 18.90% Weekly Refuse Removal 19.30% Piped Water Inside Dwelling 22.60% Electricity For Lighting 87.50% Source: Census 2011 Municipal Fact Sheet, published by Statistics South Africa 4.2. Msukaligwa Local Municiplaity Msukaligwa Local Municipality is situated in the Gert Sibande District Municipality with Ermelo as the Seat of the municipality. The municipality has an area of 6,016 km2. Table 2 below provides the demographic characteristics of the population in the municipality. Table 2: Msukaligwa Local Municipality Population Characteristics Male 74 113 Female 75 264 Total 149 377 Households 40 932 Average Household Size 3,5 Female Headed Households 37,8% Formal Dwellings 30 827 Page 6

Population Age Distribution (%) Total number 0-15 40.46% 15-64 55.45% 65+ 4.06% Population density (p/km 2 ) Population growth (%) 24.8 p/km2 1.80% p.a. Unemployment rate 36.20% Youth unemployment rate 34.50% Household services Percentage Flush toilet connected to sewerage 73.64% Weekly Refuse Removal 66.93% Piped Water Inside Dwelling 78.17% Electricity For Lighting 74.66% Source: Census 2011 Municipal Fact Sheet, published by Statistics South Africa 4.3. Mkhondo Local Municipality Mkhondo Local Municiplaity is situated in Gert Sibande District Municipality with Piet Retief as the Seat of the municipality and has an area of 4,882 km2. Table 3: Mkhondo Local Municipalitybelow provides the demographic characteristics of the population in the municipality. Table 3: Mkhondo Local Municipality Population Characteristics Male 82 263 Female 89 719 Total 171 984 Page 7

Households 37 433 Average Household Size Female Headed Households Formal Dwellings Population Age Distribution (%) 4.5 45.30% 24399 Percentage of Total Population 0-15 12.67% 15-64 22.65% 65+ 4% Population density (p/km 2 ) Population growth (%) 3,39 p/km2-5% p.a Unemployment rate 43% Youth unemployment rate 44.60% Household services Percentage Flush toilet connected to sewerage 43% Weekly Refuse Removal 42% Piped Water Inside Dwelling 67% Electricity For Lighting 69% Source: Census 2011 Municipal Fact Sheet, published by Statistics South Africa Page 8

5. Anticipated Social Impacts The following socio-economic impacts are anticipated: 5.1. Negative socio-economic impacts A loss of land and assets to the railway servitude or areas to be occupied by project-related surface infrastructure; A population influx (due to the presence of a construction and operational workforce, as well as an influx of job-seekers into the area), with a possible concomitant increase in social pathologies and increased pressure on existing infrastructure and services; Disruption of access routes and daily movement patterns by the construction and/or permanent servitude; Impacts on sense of place Such impacts may arise as a result of the visual intrusion of project-related infrastructure, as well as noise and traffic impacts during construction Dust caused by the construction works and from movement of heavy equipment During the construction phase, the local community and construction workers would be inconvenienced by the dust generated by the construction works. Noise and vibration due to the construction works and from movement of heavy equipment Movement of heavy machinery on existing local roads may be one of the core problems for the local community during the construction phase. Vibration may also damage structures located nearby. Socio-cultural differences and conflicts between migrant workers and the local community Single men predominately occupy the construction camps which could create social conflicts, usually as a result of cultural differences, alcohol abuse or being away from their wives or girlfriends for extended periods of time. A possible reason for conflict would be the perception among locals that the outsiders are taking up jobs that could have gone to unemployed members of the local community. An influx of unemployed job seekers could also add to the potential for conflict. Diseases associated with the arrival of temporary labour in the area Various social pathologies, such as drug/alcohol misuse, abuse of woman and children and incidences of sexually transmitted diseases (STDs) may increase with the influx of job-seekers into the area. Page 9

Crime An inflow of construction workers and job seekers may also be accompanied by an increase in crime. Even if specific instances of crime are not as a result of the newcomers, they may still be ascribed to them by local communities. Informal settlements Once construction is concluded and the camp is vacated, it may be illegally occupied by unlawful tenant. 5.2. Positive socio-economic impacts Local employment and job opportunities The construction phase of the project will have a positive impact on the local labour market. It is anticipated that the operational phase will also create permanent employment opportunities for the local affected communities though some level of technical skills and qualifications may be needed. Local economy opportunities and economic empowerment The construction phase of the project will have temporary positive impacts on the local economy. Establishment/ upgrading of services 5.3. Measures to mitigate adverse impacts and enhance positive impacts Influx of construction workers Mitigation Measures: Raise awareness amongst construction workers about local traditions and practices. Inform local businesses about the expected influx of construction workers so that they could plan for extra demand. Ensure that the local community communicates their expectations of construction workers behaviour with the construction sub-contractor, and formalise a written agreement between the community and the sub-contractor. Page 10

Influx of job seekers Mitigation measures: Ensure that employment procedures / policy is communicated to local stakeholders, especially local Communal Property Association (CPA), local farmers and Local Ward Councillor. Have clear rules and regulations for access to the construction village to control loitering. Consult with local SAPS to establish standard operating procedures for the control and removal of loiterers at the construction site. Construction workers should be clearly identifiable by wearing proper construction uniforms displaying the logo of the construction company. Construction workers must also be provided with identification tags. Direct formal job opportunities Mitigation Measures: Unskilled job opportunities should be afforded to the local communities as far as possible. Even if Transnet uses a recruiting agency, the local CPA and local ward Councillor should be utilised for recruitment process. Equal opportunities for employment should be created to ensure that the local female population also has access to these opportunities. Individuals with the potential to develop their skills should be afforded training opportunities. Mechanisms should be developed to provide alternative solutions for creating job security upon completion of the project. Payment should comply with applicable Labour Law legislation in terms of minimum wages. Where local labourers are employed on a more permanent basis, these labourers should be registered with the Unemployment Insurance Fund (UIF), Pay as You Earn or any other official bodies as required by law. This would enable the workers to claim UIF as a means of continuous financial support when the workers position on the construction itself has become redundant or once the construction phase comes to an end. Indirect formal and / or informal employment opportunities to local individuals Mitigation Measures: Through consultation with relevant key stakeholders, identify the segment that might benefit from informal indirect opportunities, and promote skills development and subsidisation initiatives that are sustainable. Encourage, in consultation with key stakeholders, construction workers to use local services. Page 11

Safety and security Mitigation Measures: Construction workers should be clearly identifiable. Overalls should have the logo of the construction company on it and construction workers should wear identification cards. Construction site to be fenced and access to be controlled; Loitering of outsiders at either the construction side or at the construction village should not be allowed. Local SAPS should be requested to assist in this regard Noise pollution Mitigation measures: Construction activities should be restricted to daytime hours between 07:00 to 18:00; Adjacent households should be consulted and notified of any construction activities that could lead to excessive noise levels in advance. The households should also be consulted if any night time construction activities are to take place Page 12

6. Conclusion The study has identified the following potential negative impacts associated with the construction phase of the proposed project: Influx of construction workers employed on the project and who are housed in the construction village used for other constructions in the area; Influx of job seekers looking for work but who are unsuccessful; Increased risk to personal safety of farmers and stock theft; Potential noise and dust impacts during the construction phase; Access problems during construction and operational phases; Of the negative impacts, the influx of construction workers housed on the construction village and influx of job seekers from neighbouring communities were identified as the key social concerns. While the presence of construction workers and job seekers do not in themselves constitute a social impact, the manner in which the construction workers and job seekers conduct themselves can impact on the local community. The main area of concern identified during the study was the potential impact on existing family structures and social networks. The potential impact on family structures and social networks are linked to the potential behaviour of male construction workers and the implications that this may have in terms of: A potential increase in alcohol and drug use; A potential increase in crime levels; A potential increase in teenage and or unwanted pregnancies; Potential increase in prostitution and increase in transmission of STDs, and specifically HIV/AIDS; Loss of girlfriends and/or wives to construction workers with associated (and potentially violent) conflict. These aspects are all interrelated, specifically the links between alcohol, drugs, prostitution and crime. Furthermore, it can also be concluded that many of the significant socio-economic impacts of the proposed development will occur during the construction phase. Positive impacts during this phase will include temporary creation of employment opportunities, as well as concomitant economic benefits and possible creation of opportunities for establishment of small businesses. Finally, socio-economic environment in general poses no significant adverse socio-economic impacts of the construction of the proposed project. This should, however, be seen under the conditions that the identified measures to mitigate identified negative mitigation as recommended in this document are implemented and adhered to. This is particularly relevant where construction activities phase could affect the quality of life of adjacent households in terms of access, noise, dust, safety and security. Page 13

7. References 7.1. Albert Luthuli Local Municipality. 2011. Integrated Development Plan 2007-2011.4 th rev 2009/2010 Sourced at http://www.albertluthuli.gov.za/.../23_80f2edc23be8f250a6002483d21e68a7. Accessed on 27 th June 2013 7.2. Msukaligwa Local Municipality. 2010. Integrated Development Plan 2013-2014. Sourced at http://www.msukaligwa.gov.za/.../idp/20112012%20msukaligwa%20idp.pdf. Accessed on 27 th June 2013. 7.3. Mkhondo Local Municipality. 2011. Integrated Development Plan 2011 2016. Sourced at http://cgta.mpg.gov.za/idp/gertsibande2011-12/mkhondo2011-12.pdf. Accessed on 27th June 2013. 7.4. Stats SA. 2011. Statistical release. Sourced at http://www.statssa.gov.za/publications/p03011/p030112011.pdf. Accessed on 27th June 2013 7.5. Stats SA: 2011. Census 2011 results. Sourced at http://mobi.statssa.gov.za/census/toilet.html. Accessed on 26 th June 2013 7.6. Stats SA: 2011. Census 2011 results. Sourced at http://mobi.statssa.gov.za/census/piped%20water.html. Accessed on 26 th June 2013 7.7. Stats SA: 2007. Community survey 2007. Sourced at http://www.statssa.gov.za/publications/report-03-01-33/report-03-01-332007.pdf. Accessed on 26 st June 2013 7.8. Stats SA: Census 2011 results. Sourced at http://mobi.statssa.gov.za/census/electricity.html Accessed on 21 st May 2013. Page 14

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