Oil_and_Gas_Environmental_Capacity_Needs_Assessment_report_2012__.pdf

Republic of Uganda

National Environment Management Authority

A CAPACITY NEEDS

ASSESMENT FOR THE

ENVIRONMENTAL PILLAR

INSTITUTIONS IN UGANDA

FINAL REPORT

SEPTEMBER 2012

NEMA

A CAPACITY NEEDS

ASSESMENT FOR THE

ENVIRONMENTAL PILLAR

INSTITUTIONS IN UGANDA

PROJECT NO. 10068-1

DOCUMENT NO. 01

VERSION 01

DATE OF ISSUE Sept 2012

PREPARED PS,JBO, AM

CHECKED RMG

APPROVED KEDG

ADDRESS COWI Ltd

Crusader House, 2nd Floor, Plot No. 3, Portal Avenue

P.O.Box 10591

Kampala

Uganda

TEL +256 41 434 30 45

FAX +256 41 434 32 43

WWW cowi.co.ug

DATE 20 September 2012

PAGE 3/195183

REF KEDG/rmg

PROJECT NO 10068-2

NEMA CAPACITY NEEDS ASSESSMENT FOR ENVIRONMENTAL PILLAR INSTITUTIONS

CONTENTS

Acronyms 78

1 Introduction 1314

1.1 Background 1314

1.2 Objective of this consultancy 1516

1.3 Expected Output of the Consultancy 1516

1.4 Scope of the Consultancy 1617

1.5 Approach and Methodology 1718

1.6 Literature Review 1819

1.7 Situational Analysis 2021

1.8 Stakeholder Consultations 2122

1.9 Field Surveys 2122

1.10 Desk work 2324

2 The Environmental Pillar Institutions:

Institutional, Policy and legal framework 2425

2.1 Background 2425

2.2 Institutional framework for management of

environmental/natural resources 2526

2.3 Review and Analysis of existing National

Policies, Laws and Regulations 3334

2.4 Deficiencies, gaps and discrepancies within the

existing Policy & legal framework 4546

3 Environment Impact Identification & Mitigation Management in the oil and gas sector 5152

3.1 Introduction 5152

3.2 Human, Socio-economic and cultural impacts 5253

3.3 Atmospheric Impacts 5354

3.4 Aquatic Impacts 5556

3.5 Terrestrial Impacts 5657

3.6 Ecosystem Impacts 5758

3.7 Potential emergencies 5859

3.8 Environmental impacts in the context of

protection policies and requirements 5859

4 The Capacity of Environment Pillar Institutions in the Oil and Gas Sector 6666

4.1 Introduction 6666

4.2 Mandate and expected functions of each

Environmental Pillar Institution 6767

4.3 Thematic areas to be addressed by training 158158

5 Capacity Building Plan 173173

5.1 Justification 173173

5.2 Target Beneficiaries 173173

5.3 Capacity Challenges Facing Environment Pillar

Institutions (EPI 174174

5.4 Key Recommendations 175175

6 The Capacity Building Development Plan 177177

6.1 Objectives of Capacity Building Plan 177177

6.2 Strategic objectives 177177

6.3 Proposed Capacity Building Activities 178178

6.4 Strategic Objectives 178178

6.5 A Four Years Capacity Building Plan 182182

6.6 Implementation Strategy 183183

6.7 Training Plan 183183

7 References 187187

8 Appendices 189189

Appendix 1: List of individuals/Institutions consulted 190190

Appendix 2: Summary of key activities in Oil and Gas exploration and production 184184

Appendix 3: Terms of Reference 191191

Acronyms AG Albertine Graben

Aq Aquatic

At Atmospheric

B Biosphere

Ba Barium

BOD Biological Oxygen Demand

BP British Petroleum

Bsc Bachelor of Science

Ca Calcium

CA Conservation Areas

CAOs Chief Administrative Officers

CBD Convention on Biological Diversity

CBOs Community Based Organisations

CCP Climate Change Policy

CCPC Climate Change Policy Committee

CCU Climate Change Unit

Cd Cadmium

CDM Clean Development Mechanism CFRs Central Forestry Reserves

CMOs Catchment-based Management Organizations

CO2 Carbondioxide

COD Chemical Oxygen Demand

COP Conference of Parties

DESS Environmental Support Services

DDHS District Directorate of Health Services

DEA Directorate of Environmental Affairs

DEO District Environment Office

DFO District Forestry Office

DFR Department of Fisheries Resources

DNA Designated National Authority

DOM Department of Meteorology

DPPUD Directorate of Physical Planning and Urban Development

DRWM Directorate of Water Resources Management

DSS Decision Support System

DWD Directorate of Water Demand

DWO District Water Office

DWSCCs District Water and Sanitation Coordination Committees

E&P Exploration and Production

EAC East African Community

EIA Environmental Impact Assessment

EMMPs Environmental Monitoring and Management Plans

ESIA Environmental Social Impact Assessment

EU European Union

Fe Iron

FOR Forestry

FSSD Forestry Sector Support Department GC-FID Gas Chromatography equipment

GIS Geographic Information System

GoU Government of Uganda

GPS Global Positioning System

GSPC Global Strategy for Plant Conservation

H Human, socio-economic and cultural;

HSE Health Safety and Environment

ICP Induced Coupled Plasma

IPIECA International Petroleum Industry Environmental Conservation Association

IWRM Integrated Water Resources Management

JTR Joint Sector Review

KP Kyoto Protocol

MAAIF Ministry of Agriculture, Animal Industry and Fisheries

MAB Man and the Biosphere

MAK/MUK Makerere University

MBA Masters in Business Administration

MEMD/

MoEMD Ministry of Energy and Mineral Development

MFPED Ministry of Finance, Planning and Economic Development

MGLSD Ministry of Gender, Labour & Social Development

MIS Management Information System MLHUD Ministry of Lands Housing and Urban Development

MoES Ministry of Education and Sports

MoH Ministry of Health

MoLG Ministry of Local Government

MoTI Ministry of Tourism and Industry

Msc Master of Science

MWE Ministry of Water and Environment

Na Sodium

NaFFRI National Fisheries Resources Research Institute

NDP National Development Plan

NEA National Environment Act

NEMA National Environmental Management Authority

NFA National Forestry Authority

NFP National Forest plan

NGOs Non Governmental Organisations

NOGP National Oil and Gas Policy

NORM Naturally occurring radioactive material

NOX Nitrogen Oxide

NWSC National Water and Sewerage Corporation

OfD Oil for Development

PA Protected Areas

PAHs Poly-nuclear Aromatic Hydrocarbons

PAU Petroleum Authority of Uganda

PCC Project Coordination Committee

PD Petroleum Directorate

PEAP Poverty Eradication Action Plan

PEPD Petroleum Exploration and Production Department

Pg Dip Post Graduate Diploma pH potential of Hydrogen

PMA Plan for Modernisation of Agriculture

Ppm parts per million

PT proficiency testing

PWO Principal Water Officers

QS Quality System

SDIP Social Development Sector Strategic Plan

SEA Strategic Environmental Assessment

SPGS Saw-Log Production Grant Scheme

SWO Senior water officers

T Terrestrial

TORs Terms of Reference

TPH Total Petroleum Hydrocarbon

TSUs Technical Support Units

UACE Uganda Advanced Education Certificate

UNCED United Nations Conference for Environment and Development

UNEP United Nations Environment Programme

UNFCCC United Nations Framework Convention on Climate Change

UNESCO United Nations Educational, Scientific and Cultural Organization

UOs Umbrella Organisations

USA United States of America

UWA Uganda Wildlife Authority

UWASNET Uganda Water and Sanitation Network

VOC Volatile Organic Carbon

WESWG Water and Environment Sector Working Group

WHO World Health Organisation

WMD Wetlands Management

WMO Wetlands Management Officer

WMZs Water Management Zones

WO Water Officers

WQM water Quality Management

WPC Water Policy Committee

WRM Water Resources Management

WRMAD Water Resources Monitoring and Assessments Department

WRRD Water Resources Research Department

WSDF Water and Sanitation Development Facility

WSS Water Supply and Sanitation

WSSWG Water Supply and Sanitation Working Group

WUAs Water User Associations

Zn Zinc

1 Introduction

1.1 Background

Uganda has today established commercial quantities of oil and gas in the Albertine Graben in Western Uganda. These discoveries are mostly in the Albertine Graben within the area east of Lake Albert and the Nile Delta north of Lake Albert in the districts of Hoima, Buliisa and Nwoya.

Thirty two out of 34 wells drilled in the country since 2002 have encountered oil and gas. This represents 94% technical success. The appraisal drilling and well testing done so far shows about 2 billion barrels of oil in place in the exploration areas to date. This could provide 700-800 million barrels of recoverable reserves. It is now apparent that petroleum will be produced in Uganda, with a possible start up in 2012. These developments occasioned the formulation of a National Oil and Gas Policy for Uganda to supplement the country’s Energy Policy in aspects of petroleum exploration, development and production. The policy states that “Oil and gas are non-renewable extractive resources which are therefore finite. Their exploitation and utilisation shall therefore be undertaken in a manner that creates durable and sustainable social and economic capacity for the country. These resources have the potential to provide immense benefits to the country through creation of employment, generation of revenues, development of infrastructure, and subsequently fast-tracking social transformation of the country. Oil and gas resources and the revenues accruing from them can also pose challenges of windfall revenue phenomenon and the resource curse if not well managed.

The National Oil and Gas Policy is designed to maximize the benefits and meet the challenges by providing for appropriate resource management systems and procedures in line with the National Development Plan (NDP). It seeks to achieve this by providing for; the setting up of relevant institutions and capacity building in the country; attraction of companies to invest in the development of the country’s petroleum sector; adequate and commensurate return on the companies’ investments; ensuring the country’s receipt of appropriate share and benefits from any oil and gas resources and activities; and ensuring efficient and effective resource management and utilization together with the revenues accruing there from”.

The occurrence of exploitable hydrocarbons in the Albertine Graben poses a particular challenge for oil exploration and development in Uganda. The Albertine Graben (AG) is the most species rich eco-region for vertebrates in Africa and contains 39% of Africa’s mammal species, 51% of its bird species, 19% of its amphibian species and 14% of its plant and reptile species. On the other hand, the rate of biodiversity loss in Uganda is high and was calculated in 2004 to be 10-11% per decade or about 0.8% annually. The principal threats to biodiversity in Uganda persist including habitat loss, modification and alteration along with unsustainable harvesting, pollution as well as introduction of alien species.

In addition, thousands of people and wildlife inhabit the Albertine region. One of the main constraints to the people’s wellbeing is a limited access to clean water and proper sanitation. The surroundings are key ecotourism sites and have even higher tourism potential. Oil and Gas exploration and production activities have the potential to present a variety of negative impacts on the environment. They induce economic, social, and cultural changes through alteration in land use patterns, local population levels, socio-economic and cultural systems. They also result into increases of aqueous and gaseous waste streams which may affect plant and animal communities due to changes in their environment through variations in water, air and soil/sediment quality and through disturbance by noise, extraneous light and changes in vegetation cover.

These are occasioned by either lack of or insufficiency in meeting the required waste disposal guidelines that could help in the improving water quality by controlling waste/effluents from the riparian industries and municipalities.

Unregulated actions by the oil and gas industry can destroy habitats, damage biodiversity and important ecosystem services such as fresh water and bio-energy.

Emissions from the industry must be reduced in order to reduce the rate of global warming and climate change.

These negative impacts need to be mitigated and addressed to ensure ecosystem integrity. The consequences will include, but not limited to, poor water quality and prevalence of water borne diseases that threaten both human and livestock health, reduce the quality and value of biodiversity products and ecosystem goods and services.

Oil exploration and development environment issues are largely regulated through the National Environment Act and the other related regulations that prohibit degradation of the natural environment (Water, Air and Land), and promote the protection of biological diversity.

To enable the Ugandan Government achieve parity by strengthening sustainable economic, social and political developments in the Albetine Graben, the National Environmental Management Authority (NEMA) commissioned Capacity Needs

Assessment study for Environmental Pillar Institutions 1to identify capacity needs necessary for rational exploitation of the natural resources within the Albertine region which motivates undertaking of the current consultancy by COWI Ltd as contracted by the NEMA.

1.2 Objective of this consultancy

The overall objective of the consultancy is to carry out the capacity needs assessment in relevant institutions involved in activities related to Oil and Gas in Uganda.

The capacity needs assessment will determine the:

i. Appropriate training for the staff,

ii. Evaluate Institutional and technical capacities of the various institutions under the Environmental pillar to fulfil their mandates with specific reference to the oil and gas sector.

1.3 Expected Output of the Consultancy

The overall output of the entire assignment is a comprehensive report presenting the following specific outputs:

a) a description of the optimum human resource characteristics and competencies, institutional and technical capacities necessary for those organisational units having roles and tasks associated with the management of oil and gas activities ( including staff in the Districts within the Albertine Graben);

b) the manpower status/profile of these units giving details on numbers, specialization, points of deployment and pool of knowledge, skills and experience;

c) training and development needs of staff of these units in the different institutions;

1 The Environmental Management Pillar comprises of the National Environment Management Authority (NEMA), Directorate of Water Resources Management (DRWM), Directorate of Environmental Affairs (DEA), National Forestry Authority (NFA), Uganda Wildlife Authority (UWA), Department of Fisheries Resources (DFR), Ministry of Lands Housing and Urban Development (MLHUD)

d) a capacity and development plan for staff of these units in the various institutions for the next 4 years;

e) interventions necessary to meet the needs identified in the capacity needs assessment, giving details on the types of programmes and duration as well as appropriate training institutions;

f) person specifications of the relevant staff positions.

1.4 Scope of the Consultancy

The major tasks shall include:

Plan and guide the whole exercise from the start with the inception report that shall be presented to all stakeholders.

a) Establish the specific objectives, functions, tasks, expected outputs and targets for each institution under the program;

b) Establish the optimum human resource characteristics and competencies necessary for each institution (and individual staff) to perform their roles to optimal levels under the program;

c) Establish deficiencies, gaps or discrepancies between the optimum performance standards on the one hand, and actual performance standards on the ground for each institution on the other;

d) Develop a capacity needs assessment instrument;

e) Basing on identified broad organisational and institutional goals, objectives and targeted outputs, administer a capacity needs assessment to all staff to identify their weakness in fulfilling the expected output;

f) After studying the individual written responses, hold interviews/discussions with institutions/individuals to verify and agree on the performance gaps of each staff;

g) Based on the above, recommend the types of training (i-e short term and long-term courses, seminars, study tours, for each member of staff, also paying attention to handicaps in the present jobs;

h) Recommend various scenarios addressing the needs e-g Group training within the country, etc;

i) Translate the capacity needs identified into the capacity development plan to be implemented over a four year period;

j) Identify appropriate institutions or individuals that can offer the training identified and the costs involved;

Participate and present in a workshop, a reviewed training programme.

1.5 Approach and Methodology

Our approach to this assignment was distinctly based on the principles that responded to the tasks provided in the TORs. We put emphasis on participatory identification and analysis of capacity needs/gaps that we believe will address biodiversity, natural/water resources, environmental and social issues within the Albertine Graben. This we saw as key in ensuring that all potential impacts identified in respect to the Oil and Gas Exploration in the Albertine region are reviewed and the capacity amongst Environmental pillar institutions for ensuring that mitigation measures are adopted is analysed.

In addition, the situational analysis was aimed at involving the Environmental Pillar Institutions focusing on stakeholder and resources analysis (personnel and infrastructure) as well as environmental problems, in relation to the Albertine Graben.

We ensured that we captured all pertinent issues that were useful in essence and sufficient for the preparation of this capacity analysis and Development Plan for the Environmental Pillar Institutions.

The consultancy was carried out in phases including;

Inception phase this involved:

Team mobilization Kick off meetings with the client Development of a Quality Assurance and management plan Development of a revised work plan Preliminary stakeholder consultations Development of an inception report

Post Inception phase which included:

Implementation phase: covering

Literature gathering and review Situational analysis Stakeholder consultations Field work within the Albertine Graben

Desk study and development phase: This included Analysis of collected data Development of capacity needs assessment and training development plan Development of draft final report

As provided in the TORs, the following tasks were undertaken:

• Carrying out a situational/stakeholder (i.e. pillar Institutions) analysis;

• Carrying out a preliminary study of the available data (i.e. Mandates, roles, staffing etc);

• Development and application of a capacity needs assessment instrument;

• Carrying out consultations and interviews with pillar institutions and other key stakeholders relevant to the assignment;

Carrying out baseline studies in the water resources, biological and social environment;

• Development of a Capacity Needs Assessment Plan for the Pillar Institutions;

• Briefings were held with NEMA, and preliminary modalities on how to carry out the tasks were agreed upon;

• Development of a detailed work plan and a detailed schedule of activities, with each team member responsible for undertaking clearly assigned tasks.

The ToRs were executed under the guidance of the consultancy Team Leader who was also be the point of contact with the client.

General Methodology

The Consultants’ team used a number of techniques and methods at each stage of data gathering and information synthesis. However, the techniques and methods varied with the type of study and expert (e.g. establishment of optimum human resource characteristics and competences; capacity needs assessment and social standard methods etc ). These techniques and methods included, but were not limited to, stakeholder and resource analysis, literature review, stakeholders’ consultations, onsite observations, specialist studies and analyses.

Some of these methods were further detailed in the specific tasks. The techniques and methods included and were not limited to literature reviews, examination and analysis coupled with comprehensive stakeholder consultative processes. Some of these methods are further described below under relevant sections.

1.6 Literature Review

Literature was reviewed to obtain background and secondary baseline information on the institutions and their regulatory and institutional context relevant to the assignment and the environment.

The consultant identified and reviewed all literature relevant to the assignment including national policies, legal, regulatory, and administrative frameworks conditions and a number of other documentation.

In specific instances, documentation reviewed included:

Policy, Legal and Institutional Documents

Institutional framework and relevant legislations ;

National Environment Management Policy Environmental Legislation of Uganda Joint Technical Review Report for the Oil and Gas;

Joint Technical Review Report for the Water and Environment

Sector (Platinum Indicators) Local Government Restructuring of the Ministry of Water, Lands and Environment, 2007;

Ministerial Policy Statements for2008/09 and 2009/10

2. History and Mandate

Legal Instrument of the establishment of the environmental Pillar Institutions;

Pillar Institutions’ Mandates and principal activities;

Pillar Institutions’ Strategy documents, and vision and mission statements;

Pillar Institutions’ Framework Management Plans;

Community Based Management Plans;

National Framework Implementation Plan;

All event Information significant and major planned activity programmes.

3. Organisation Structure

Management structure (Organogram);

Organisation Charts for the Pillar Institutions;

Brief overview of key personnel;

Current job categories, functions and services;

Number of staff and distribution to major job categories;

Current job grading and salary structure;

Job Descriptions;

Profile of staff and managers (to be hired in order to cope with Oil and Gas activities);

Human Resource policies and procedures (manual);

Brief on services and functions;

List of staff by location and function;

Annual salary cost, including benefits;

Reports Functional Analysis and Job Evaluation;

4. Financial Review

Environment and Natural Resources Sector Investment Plan;

Current budget, medium term planning documents and underlying assumptions;

Classification of revenues streams;

Breakdown of main expenditure items;

Current and projected future capital expenditure requirements on Oil and Gas activities;

Budgets for 2009/10 and any costs for Oil and gas activities;

Furthermore, a critical look at the pillar institutions mandates strategic investment plans with cross-reference to the experiences of all relevant stakeholders and lessons learnt from implementing capacity needs assessment in similarly structured sectors was done. This process combined with stakeholder identification and consultation allowed the consultant to determine the vital input and role played by all key stakeholders in the oil and gas sector.

This in essence pointed to focus on two broad areas, namely; the fundamentals (structure, policy, shared vision, objectives and strategy) and translations (systems, staff, attitude, working style, gaps or discrepancies etc).

The literature review process was a continuous activity as the consultant had to refer to such material so that the capacity needs process and development plan would be relevant to the existing trends in the oil and gas sector as well apply for future changes in the sector.

1.7 Situational Analysis

To comprehensively develop a capacity needs assessment and development plan for the relevant institutions in oil and gas activities, a situational analysis was carried out. This process involved literature review, stakeholder consultations and field surveys. These provided information on existing capacity, ongoing activities and pipeline activities and projects within the sector and understanding the current situation provided the team with information that was essential in identifying the training needs, development trends and allowed for the development of activities and processes to remedy these gaps.

The result of our situational analysis included the findings in this report.

The Environment Management Pillar is composed of National Environment Management Authority (NEMA), Directorate of Water Resources Management (DRWM), Directorate of Environmental Affairs (DEA), National Forestry Authority (NFA), Uganda Wildlife Authority (UWA), Department of Fisheries Resources (DFR), Ministry of Lands Housing and Urban Development (MLHUD).

In the context of the Programme and in accordance with the NOGP, the objective of the environment pillar is to contribute towards ensuring that oil and gas activities are undertaken in a manner that conserves the environment and biodiversity, by strengthening the capacity of the environmental authorities to regulate the oil and gas industry in accordance with Uganda’s environmental policies.

1.8 Stakeholder Consultations

The TOR for this assignment clearly specified the stakeholders to be involved in the assessment process. These included: the Environment Management Pillar which is composed of National Environment Management Authority (NEMA), Directorate of Water Resources Management (DRWM), Directorate of Environmental Affairs (DEA), National Forestry Authority (NFA), Uganda Wildlife Authority (UWA), Department of Fisheries Resources (DFR), Ministry of Lands Housing and Urban Development (MLHUD); it also specified the involvement of the districts within the Albertine region including Ajumani, Moyo, Yumbe, Arua, Nyadri, Nwoya, Nebbi, Bulisa, Hoima, Masindi, Ntoroko, Kibale, Kyenjojo, Kabarole, Bundibugyo, Kamwenge, Kasese, Bushenyi, Ibanda, Rukungiri and Kanungu.

For purposes of comprehensively identifying capacity needs, a few private sector institutions such as Tullow Oil Pty were consulted as well.

Stakeholder consultation was an important component of the Consultancy. It involved a consultative process. We conducted consultative meetings to review and discuss capacity needs in 2011-2012.

Various consultative meetings were held with the environmental pillar institutions and other stakeholders mentioned above. These consultations were basically aimed at obtaining an insight and appreciation of the following as the basis for developing a suitable approach for assessing capacity of pillar institution involvement in oil and gas related activities:

1. The Mandate and implementation structure of each respective stakeholder consulted;

2. Current status of involvement of pillar stakeholders in oil and gas related activities;

3. Stakeholder perspectives on capacity issues affecting their institutions with particular emphasis on management of the execution of their mandates related to oil and gas;

4. Training plans generated to address capacity issues with a view to obtaining deliberate initiatives to addressing oil and gas related activity skills and knowledge issues (Where training plans were available, stakeholders were requested to provide a copy to the team for further review).

1.9 Field Surveys

Field data collection

The Team undertook some field work to discuss study issues and to collect relevant reference documents. The field visits to Albertine Graben Districts were done between June and August 2011:

June 2011: Collection of information from Northern Albertine Graben Districts (Arua etc), and held preliminary discussions with District Teams (Environmental, Natural Resources, Fisheries, Water/Land Officers and CAOs).

July 2011: Collection of information from Western Albertine Graben

Districts (Kanungu, Rukungiri, Hoima etc), and held preliminary discussions District Team (Environmental, Natural Resources, Fisheries, Water/Land Officers and CAOs).

August 2011: Collection of information from institutions and stakeholders within Kampala District (environmental pillar institutions and private sector, and held various discussions with key staff with in these institutions.

1.10 Desk work

All data collected from the literature review, stakeholder consultations and field work was analysed by the team to develop a capacity needs assessment for the different environmental pillar institutions and districts within the Albertine region.

Each institution's mandates, key functions, current staff, staff job description, experience and competence in relation to handling oil and gas activities including the environmental aspects were reviewed.

Wherever aspects were not clear, the team made follow up meetings to the different institutions for clarifications.

Training needs were assessed alongside the capacity needs assessment process.

Training needs were generated from the analysis of the current level of individual core staff Awareness + Understanding + Skills +Attitudes/Aspirations regarding key functions and responsibilities to be handled.

2 The Environmental Pillar Institutions:

Institutional, Policy and legal framework

2.1 Background

The Norwegian-funded Programme for “Strengthening the State Administration of the Upstream Petroleum Sector” in Uganda was commissioned in order to develop institutional capacity for management of the oil and gas sector. The programme was developed to ensure that oil and gas exploration and production activities meet the achievement of the goal of the National Oil and Gas Policy which is: “To use the country’s oil and gas resources to contribute to early achievement of poverty eradication and create lasting value to society”. Although this programme ended in June 2009 after three years of successful implementation, on 27 March 2009, the Norwegian Embassy received a request from the Ministry of Finance, Planning and Economic Development for continuation of support to the upstream petroleum sub-sector. This followed discussions between the Embassy, Oil for Development (OfD) and the Government of Uganda (GoU) concerning Norwegian support beyond 2008, when the current upstream petroleum project is scheduled to be completed.

In order to address the environmental, revenue and resource aspects of the oil and gas sector, the Programme has three pillars:

1. Resource management;

2. Revenue management and;

3. Environmental management.

The National Oil and Gas Policy for Uganda, of February 2008 constitute the main reference document for the Programme.

2.2 Institutional framework for management of

environmental/natural resources

Existing national Environmental Pillar institutional arrangements were studied and this indicates that Uganda has departments or sections responsible for providing technical skills required for sustainable use of water /environment/natural resources and ecosystems.

The environmental activities are implemented through the environmental pillar that is composed of the: (i) National Environment Management Authority (NEMA), (ii) Directorate of Water Resources Management (DRWM), (iii) Directorate of Environmental Affairs (DEA), (iv) National Forestry Authority (NFA), (v) Uganda Wildlife Authority (UWA), (vi) Department of Fisheries Resources (DFR), Ministry of Agriculture (vii) Ministry of Lands, Housing and Urban Development (MLHUD). However, the above institutions work closely with staff in the districts in the Albertine Graben.

There are three key institutions outside the Ministry of Water and Environment which serve as important stakeholders for the environmental arena. These include:

Department of Fisheries; Ministry of Agriculture Animal Industries and Fisheries

Uganda Wildlife Authority Ministry of Lands, Housing and Urban Development

2.2.1 Institutional framework for the water and

environment sector

The Ministry of Water and Environment serves as the main institution for environmental issues in Uganda and is using its capacity to contribute to the vision of‘sound management and sustainable utilization of water and environment resources for the betterment of the population of Uganda’. The mission is to ‘promote and ensure rational and sustainable utilization, development, effective management and safeguard of water and environment resources for social welfare and economic development’.

The Ministry is responsible for environment and water and has overall responsibility for initiating the national policies, setting standards and priorities for water resources management in the country. The Water Policy Committee (WPC), advises the Minister on the above functions and initiate revisions to legislation and regulations and coordinate sector ministries' plans and projects affecting water resources.

The Ministry is made up of three Directorates and three semi-autonomous bodies.

The structure of the Ministry of Water and Environment is presented below.

Figure 3-1: Organization Structure of the Ministry of Water and Environment

The three Directorates of the Ministry of Water include:

(i) Directorate of Water Development The Directorate of Water Development is responsible for providing overall technical oversight for the planning, implementation and supervision of the delivery of urban and rural water and sanitation services across the country, including water for production.

(ii) Directorate of Water Resources Management The Directorate of Water Resources Management has a mandate to ‘promote and ensure rational and sustainable utilization, effective management and safeguard of water resources for social and economic welfare and development as well as for regional and international peace’. The Directorate is responsible for managing, monitoring and regulation of water resources through issuing permits for use, abstraction, discharge and drilling for water. The processing of an EIA requires input with regards to water use and discharge. In addition the operating oil companies will need permits granted based on specific applications. The Directorate needs to improve capacity to critically review the oil and gas projects.

The largest problem is related to the wastewater discharge permits. They do not have the regulatory framework in place and do not know which standards are relevant. They also have inadequate capacity for field monitoring and lack proper equipment. They are unable to assess the implications of discharge.

(iii) Directorate of Environment Affairs The Directorate of Environment Affairs works towards the overall goal to have a sustainable productive environmental resource and ensure healthy environment for improved livelihood, poverty eradication and economic growth. The Directorate is organised in three departments:

Department of Forestry Sector Support

Environment Support Services Department Wetlands Management Department

Further, the Directorate overseeing the following:

(a) Water Resources Management: negotiations on sharing of Nile Resources, support Nile Basin Initiative transboundary projects, undertake monitoring network, assessment of feasibility studies and of the rehabilitation of waste water treatment systems, operate and maintain water quality laboratory for water and waste water analysis upgraded, update and harmonise Policy, Legal and regulatory framework carry out rapid assessment of issues relating to catchment-based water resources management

(b) Natural Resources Management: Increase Productivity of the Natural Resource Base and Harnessing Natural Resources in a Sustainable Manner, demarcate wetlands, develop management plans, plant woodlots / plantations, support tree planting.

(c) Weather, Climate and Climate Change: Aviation Route Forecasting and issuance of international folder documents, developed Audio-video & radio messages for awareness programmes on Climate variability and climate change

In general the Directorate is tasked with forming the relevant policies and monitoring of the divested institutions as NEMA and NFA.

It is realised that oil and gas exploration and production represents a new industry which requires development of new capacity. A wide scope of implications from the oil activities are foreseen including migration of people and cutting down forest for household use. Specific challenges and areas of concerns:

Restoration and mitigation of environmental implication Production of waste Policy analysis related to the petroleum sector Need for in-house technical advisor for petroleum matters

The institutional framework for the water and environment sector, including its Directorates and various parastatal organizations; as well as the numerous related governmental and non-governmental organizations and stakeholders at the community, district, regional and national levels is summarized in the following Figure 3-2, below.

Figure 3-2: Institutional Framework for water resources management

National Forestry Authority (NFA) The National Forestry Authority is an autonomous body responsible for improving the management of central forest reserves; expand partnership arrangements as well as financial sustainability.

Figure 3-3: Institutional Framework for National Forestry Authority

The mandate of the National Forestry Authority NFA is to: Plant trees, establish private plantations, maintain immature Plantations, regulate harvesting of timber trees in plantations.map and verify private tree farmers, maintain and supply seedlings

National Environment Management Authority (NEMA)

NEMA was established by Act of Parliament in May 1995 and became operational in December 1995. NEMA was established as a body corporate with perpetual succession and a common seal, in its own name, be capable of suing and being sued and doing and suffering all acts and things as bodies corporate may lawfully do or suffer. NEMA is the principal agency for the management of environment and shall coordinate, monitor and supervise all activities in the field of environment. The board of directors of NEMA is appointed by the Minister with the approval of the policy committee. NEMA’ functions include the following -

Ensure integration of environment concerns in overall national planning through coordination with relevant ministries, departments and agencies of the Government, liaise with private sector, intergovernmental organizations, NGOs, government agencies of other states on issues relating to environment [s.6(b)&(c)].

Propose environment policies and strategies the policy committee, initiate legislative proposals standards and guidelines on the environment [6(1) (d) (e)].

Review EIAs and EA.

Promote public awareness through formal, non formal and informal education about environment al issues.

Undertake research and disseminate information.

Prepare and disseminate a state of the environment report once in every two years.

District Support Coordination and Public Education

Department

Environmental Monitoring and

Compliance Department

Policy, Planning and

Information Department

Financial and

Administration Department

Policy Committee on the

Environment

Board of Directors

Minister Responsible for Authroity (MWE)

Executive Director

Deputy Executive Director

Support Functions

Figure 3-4:

Institutional Framework for NEMA

The mandates of the Environmental Pillar Institutions with respect to oil and gas are as follows:

(i) NEMA

NEMA is now the lead agency for the implementation of the environmental management pillar in is National Environment Management Authority. This institution is under the umbrella of the Ministry of Water and Environment, but has autonomy reporting directly to the respective Minister. However, the current organization structure seems to address oil and gas issues through programmes only rather than have a specialized unit or department to deal with coordination with environmental Pillar Institutions on routine basis. Thus at NEMA level it is recommended to establish a unit that is responsible for coordinating oil and gas issues related to natural resources, water and environment as an effective role in the implementation of the proposed activities. The new dedicated unit will link with National Environmental Pillar Institutions/departments responsible for Oil and gas and the Department of Environment and Natural Resources under the EAC Secretariat which promotes sustainable utilization of resources by the water using sectors such as agriculture, rural development, energy, environment tourism, wildlife and industrial development. The mandates of the NEMA in respect of oil and gas resources management are as follows:

1. Develop guidelines and standards for environmental assessments (EIA, SEA, Audits)

Check existing guidelines vs. international best practices Review feedback from stakeholders Update guidelines as appropriate Disseminate guidelines

Environmental Monitoring and

Compliance Department

Director

Natural Resource Management

Specialists (3)

EIA

Coordinator

Senior Environmental

Inspector

Environmental Audits & Mon.

Officers (2)

Environmental Inspector

EIA

Officers (3)

2. Coordinate the processes of environmental impact assessments for oil and gas activities Receive and approve scoping report and TOR Receive EIA and submit to lead agencies for review Collate comments from stakeholders Conclude on conditions for granting approval for activities Approve EIA

3. Coordinate environmental audits of oil company operators

Review and approve scoping report and TOR Review audit report Determine level of compliance of the facilities and enforce adequate actions

4. Monitor compliance of oil and gas activities with environmental regulations and standards Develop procedures for monitoring and reporting Quality control information received and compare to agreed conditions Identify deviations and define actions to be taken

5. Coordinate the impact of oil and gas activities on the environmental quality

Receive conclusions from monitoring activities by other environmental institutions Compile information and submit report

6. Formulate and Implement a National oil spill contingency plan Define key issues and principles for formulating the plan Prepare a risk evaluation of the area concerned Prepare the national oil spill contingency plan Submit to Cabinet for endorsement Approve the oil spill contingency plan Prepare program for implementation and training

(ii) Directorate of Water Resources Management (DRWM)

1. Prepare standards and guidelines for use of land and water bodies Indentify documents and collect information as required Prepare draft standards and guidelines and collect stakeholder comments Submit new standards and guidelines for approval

2. Monitor the impact of oil and gas activities on the quality of ground and surface water bodies, surrounding flora, fauna and the atmosphere Define environmental baseline Define data to be collected and sampling procedure Assess consequences of deviations above baseline

3. Regulate water use and pollution load into water bodies through issuance of water permits Define the water bodies concerned Prepare risk assessment Receive applications and define appropriate conditionalities Issue permits for water abstraction, waste water discharge and water drilling as appropriate

(iii) Directorate of Environmental Affairs (DEA)

1) Formulate policies and regulations on environment protection for oil and gas activities

Nominate policy task force and identify the issues Identify and review key documents and guidelines for the policy process Confirm the adequacy of the present law Approve plan for policy process Prepare draft policy, consult stakeholders and revise as appropriate The Minister to receive and review draft policy proposal The Minister to receive and approve proposed regulations Present policy to Cabinet of Ministers for approval

(iv) National Forestry Authority (NFA)

1. Regulate the use of the central forest reserves and issue permits Perform sensitivity assessment of the forest area Receive applications for operations in area Issue permits with appropriate conditions

(v) Uganda Wildlife Authority (UWA),

1. Issue guidelines governing operations in wildlife protected areas Review the management plan for the protected area in question Conduct sensitivity analysis Define baseline for the wildlife within areas of concern Prepare and issue guidelines in accordance with policy and regulations

2. Monitors impact of oil and gas activities on wildlife protected areas Define data to be acquired Establish procedures for reporting Assess information and identify deviations from baseline and its implications Issue requirements for corrective actions

3. Consents to undertaking of petroleum operations in wildlife protected areas Review applications received vs. approved regulations Define conditions for operations and issue permit

(vi) Department of Fisheries Resources (DFR), Ministry of Agriculture

1) Monitors impact of oil and gas activities on fisheries Resources Define data to be acquired Establish procedures for reporting Assess information and identify deviations from baseline and its implications

2) Protect fish habitat and aquatic biodiversity

Assess information and identify deviations from normal trends

(vii) Ministry of Lands, Housing and Urban Development (MLHUD).

1) Prepare standards and guidelines for use of land Indentify documents and collect information as required Prepare draft standards and guidelines and collect stakeholder comments Submit new standards and guidelines for approval

2.3 Review and Analysis of existing National

Policies, Laws and Regulations

The Government of Uganda has put considerable efforts in ensuring that major national policies reflected in the Poverty Eradication Action Plan (PEAP) and its planned successor, the National Development Plan (NDP); the Plan for Modernisation of Agriculture (PMA), the Social Development Sector Strategic Plan (SDIP) and the decentralisation and good governance programmes take into account environmental sustainability as a priority. These laws and policies aim at ensuring that socio-economic development is sustainable and does not destroy natural resources have been put in place. Similarly, a number of interventions, key among which are the multi-institutional Water Policy Committee (WPC) and the Water and Environment Sector Working Group (WESWG) that provide policy and technical guidance for all sector development activities have been established to achieve this objective.

The key existing laws, policy and legislation framework for are as follows:

2.3.1 Review and analysis of relevant Laws:

The key existing laws are as follows:

(1) The Constitution of the Republic of Uganda, 1995

The Constitution is the supreme law of the land that lays the fundamental principles for the governance of the country. It is from the constitutional principles that all pieces of legislation which may be enacted from time to time derive their foundation. In this study, Uganda constitutional provisions are reviewed to ascertain whether they have explicit provisions dealing with environmental and natural resources management and conservation.

The Constitution of the Republic of Uganda, 1995 outlines the National Objectives and Directive Principles of State policy. Objective XIII which deals with protection of natural resources when read together with article 237(2)(b) provide that the State shall protect important natural resources, including land, water, wetlands, minerals, oil, fauna and flora on behalf of the people of Uganda. Under objective XXI which addresses clean and safe water provide that the State shall take all practical measures to promote a good water management system at all levels. Moreover under objective XXVII which cater for the environment when ready together with article 245 provide to the effect that:

The State shall promote sustainable development and public awareness of the need to manage land, air and water resources in a balanced and sustainable manner for the present and future generations;

The utilization of the natural resources of Uganda shall be managed in such a way as to meet the development and environmental needs of present and future generations of Ugandans; and, in particular, the State shall take all possible measures to prevent or minimize damage and destruction to land, air and water resources resulting from pollution or other causes;

The State shall promote and implement energy policies that will ensure that people’s basic needs and those of environmental preservation are met;

the State, including local governments, shall create and develop parks, reserves and recreation areas and ensure the conservation of natural resources and promote the rational use of natural resources so as to safeguard and protect the biodiversity of Uganda;

The Parliament shall, by law, provide for measures intended to protect and preserve the environment from abuse, pollution and degradation; manage the environment for sustainable development; and promotion of environmental awareness.

In respect of transboundary natural resources, reference can be made to article 123 which provides for execution of treaties, conventions and agreements. The article mandates the President or a person authorized by the President to make treaties, conventions, agreements or other arrangements between Uganda and any other country or between Uganda and any international organization or body, in respect of any matter and the parliament shall make laws to govern ratification of treaties, conventions, agreements or other arrangements made under to that effect. It is a principle that natural resources shared by two or more states can be effectively managed through international arrangements between such states.

Thus, in terms of this Constitution, we deduce that the foundation for natural resources management, conservation and utilization is adequately stated and therefore it is upon the State to determine the fate of natural resources by enacting measures or mechanisms of enforcing these constitutional provisions.

2) National Environment Act, Cap 153

Section 1 of The National Environment Act, 1995 which deals with interpretation defines “Environment” means the physical factors of the surrounding of human beings, including land, water, atmosphere, climate, sound, odor, taste, the biological factors of animal and plants and the social factor of aesthetics and includes both the natural and the built environment. Therefore environment includes water. And “Water” has been defined to include drinking water, river, stream, water course, reservoir, well, dam, land, channel lake, swamp, open dram, or underground water. Section 2(2) (l) provides that principles of environment management include to promote international cooperation between Uganda and other states in the field of environment. On rights and duties to every person, section 3 provides that every person has a right to a healthy environment and has duty to maintain and enhance the environment.

The National…