Tag Archives: tourism

Justica Ambiental’s intervention at Eni Annual General Meeting

14 June 2019

Rome

I represent an organisation called Justica Ambiental/Friends of the Earth Mozambique in maputo. Ive come quite a long way to ask Eni some questionsI will ask in particular questions about the onshore and offshore work in Area 1 and Area 4 of the Rovuma Basin in Mozambique, which includes the Coral Floating Liquid Natural Gas Project, and the Mozambique Liquid Natural Gas Project, and the offshore oil and gas exploration in Block ER236 off the South Coast of Durban in South Africa.

we want to give some context to the shareholders:

Although the extraction in Mozambique has not yet begun, already the project has taken land from thousands of local communities and forcefully removed them from their homes. We work with and visit most regularly the villages of Milamba. Senga and Quitupo. The project has taken away peoples agricultural land, and has instead provided them with compensatory land which is far from their homes and in many cases, inarable. Fishing communities which live within 100 metres of the sea are now being moved 10 km inland.

Furthermore, the noise from the drilling will chase fish away from the regular fishing area, and the drilling and dredging will raise mud from the seabed which will make fishing even more difficult with little visibility.

There is little to no information about the type of compensation people will receive. Communities think the ways in which peoples compensation has been measured and assessed is ridiculous. For example, the company assesses someones land by counting their belongings and compensating them financially for those goods. Another way is by counting the number of palm trees that one person has on their land. Most people have been given a standard size of land of 1 hectare. This is regardless of whether they currently have 1 hectare, 5 hectares, or even ten hectares.

80% of Mozambicans dont have access to electricity, and need energy to live dignified lives. Despite this incredibly low electricity rate, the LNG projects will not help Mozambique and its people benefit from its resources. Instead the LNG will be processes and exported to other countries, in particular Asia and Europe.

The projects will have a huge negative impact on the local environment, destroying areas of pristine coral reefs, mangroves, and seagrass beds, including endangered flora and fauna in the Quirimbas Archipelago, a UNESCO Biosphere.

Mozambique is a country that is already facing the impacts of climate change. In the last two months, two cyclones hit the country hard, as we saw most recent with Cyclone Idai and Cyclone Kenneth that together killed over 600 people and affected at least 2 million.. The EIA admits that the contribution of the projects greenhouse gases to Mozambiques carbon emissions will be major.

This project will require a huge investment by the Mozambican government, which would be better spent on social programs and renewable energy development. The project itself will require an investment of up US$ 30 billion. This project will divert funds that should be going to education and other social necessities, including $2 billion that the World Bank estimates is necessary to rebuild the country after the cyclones, in order to build and maintain infrastructure needed for the gas projects.

Over the last year and a half, there as been a scourge of attacks on communities in the gas region, which many communities believe are linked to the gas projects because they only began once gas companies became visible. In order to ensure the security of the gas companies and contractors, the military has been deployed in the area and maintains a strong presence, and several foreign private security companies have been contracted by the companies.


SOUTH AFRICA

While the human rights and environmental violations against the people of the South Coast are many, the particular issue Id like to raise is that of the lack of meaningful public participation with the affected communities, who were totally excluded from the process.

Exclusivity of meetings:

Eni held a total of 5 meetings.

Three of them were at upper end hotels and country clubs in the middle class areas of Richards Bay, Port Shepstone and in Durban. This is extremely unrepresentative of the vast majority of people who will be affected, many of whom live in dire poverty: communities of as Kosi Bay, Sodwana Bay, St Lucia,, Hluluwe, Mtubatuba, Mtunzini, Stanger, Tongaat, La Mercy, Umdloti, Verulam, Umhlanga, Central Durban, Bluff, Merebank, Isipingo, Amanzimtoti, Illovu, Umkomaas, Ifafa Beach, Scottsburgh, Margate, Mtwalume, Port Edward and surrounding townships like Chatsworth, Inanda, Umlazi, Phoenix and KwaMakhuta. This is blatant social exclusion and discrimination.

During the two so-called public participation meetings with poorer communities in February and October 2018, attended by both Eni and consultants Environmental Resources Management, the majority of people affected were not invited. The meetings, held by Allesandro Gelmetti and Fabrizio Fecoraro were held in a tiny room with no chairs. Eni had not invited any government officials.

[Sasol head of group medial liaison Alex Anderson, confirming the meeting, said: Eni, our partner, is the operator and the entity managing this process. Sasol is committed to open and transparent engagement with all stakeholders on this project, as its an ongoing process over the coming year. We value the engagement and the feedback we receive, so that we consider stakeholder concerns into the development of the project.]

Eni says it dropped the finalised EIAs off at 5 libraries for the interested parties to read. However these libraries are difficult for most of the affected communities to travel to, and one of the libraries, Port Shepstone library, was in fact closed for renovations at the time.

QUESTIONS:

Civil society in Mozambique:

The response to our question was not answered, and I would like to reformulate it.

Is Eni working with any Mozambican organisations as part of its community engagement, and which are they?

Is Eni working with any organisations, Mozambican and from elsewhere, who are NOT paid by the company?

Reforestation:

Id like to quote an article in the FT article David Sheppard and Leslie Cook 15 March 2019- Eni to plant vast forest in push to cut greenhouse gas emissions, which says, I quote:

by planting trees which absorb CO2 from the atmosphere, companies like Eni are looking to offset their pollution that their traditional operations create.

Italian energy giant Eni will plant a forest 4 times the size of Wales as part of plans to cut greenhouse gas emissions

1. Does Eni dispute the truthfulness of the Financial Times article

Eni says that it has already begun the contract process with the governments of the countries in Southern Africa, where these forest projects will take place.

1. Has the company assessed whether there actually is 81 000 hectares of unused land available for this project?

2. Has Eni already held any public participation meetings with the communities who live on the land that will be used for ?

3. who is doing this assessment and when will it begin

4. how many communities and people will be affected?

EIA s:

1. In the case of Area 1, Eni responded that the responsibility for ongoing public participation with the communities of Cabo Delgado lies with Anadarko for the joint EIA. Does Eni confirm it is relying on another company to guarantee that its own project fulfills requirements for an EIA?

2. Also on Area 1, the last EIA was done in 2014? Why does Eni rely on an impact assessment that is 5 years old?

3. Eni has responded that it only concluded its EIA in 2014, but had already begun seismic studies in 2007 and prepared for exploration in 2010. Furthermore, Eni only received its license from the Mozambique government in 2015. This is a whole 8 years after it had begun seismic studies.

Why did Eni begin studies that affect the environment and people before completing an EIA?

Decarbonisation:

This question was not sufficiently answered: I have asked why Enis decarbonisation strategy does not align with its actions in Mozambique, where the EIA says, and I quote from Chapter 12: The project is expected to emit approximately 13 million tonnes of CO2 during full operation of 6 LNG trains.

By 2022 the project will increase the level of Mozambiques GHG emissions by 9.4%

The duration of the impact is regarded as permanent, as science has indicated that the persistence of carbon dioxide in the atmosphere is said to range between 100 and 500 years, and therefore continues beyond the life of the project.

I ask again, how does this align with Enis decarbonisation strategy?

Private security:

1. Who is Eni using as their private security companies in Mozambique and in South Africa?

2. What was the legal process the company went through to contract these private security companies?

3. If any companies are not registered locally, what legal process did Eni go through to bring them to Mozambique and South Africa?

Contractors:

1. Will Eni provide us with a list of all their contractors in Mozambique and in South Africa?

2. if not why not?

Jobs in South Africa:

You have not answered our question here

How many jobs will Eni create at its operation in SA?

How many of these jobs will be paid by Eni?

Contract

I ask this in the name of the South Durban Community Environmental Alliance. The organisation requested Eni to make available the contract signed with the Dept of Environmental Affairs and Petroleum Agency South Africa that gives Eni permission to conduct seismic testing. Eni has said no, because the right to the document lies with a contractor.

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Mozambique’s Gas Master Plan

This past week Justiça Ambiental fired off comments in response to the Natural Gas Master Plan for Mozambique which was presented in a workshop on 6th September in Maputo. The World Bank and the Government of Mozambique commissioned consultants from ICF International based in the USA to write the Master Plan.

Lack of effective participation

The timeline and the participation process was a mockery. We were given only one week to read and respond to the report. We were not provided with the full report, despite having requested it, only the Executive Summary. It would be ethically incorrect if the government or the consultants claimed that a public participation process has occurred.

Hidden Truths and False Intentions

Although the Plan says its intention is to “maximize benefits to Mozambique society”, it appears like the intention is to maximise benefits to international oil companies and Mozambican elites instead.

There are many important questions the Master Plan does not address.

  1. Is this the right time for gas to be explored in Mozambique?
  2. Does the country have the necessary critical factors in place to prevent the gas resource from turning into a resource curse?
  3. Does it have the necessary well-functioning legal, regulatory, and financial systems?
  4. Does it encourage vibrant and democratic civil society institutions?
  5. Does it focus on ways to improve accountability, transparency, and participation?
  6. Does it focus on developing small and medium industries?
  7. Does it effectively ameliorate social and environmental impacts?

The lack of attention in dealing with these issues will only result in feeding the growth of the corrupt elites and place Mozambique on the long list of African countries plagued by the resource curse.

Lack of effective regulatory, legal and other systems

The Master Plan is alluding that Mozambique has some readiness to approach gas development because it has “over the past decade been steadily building a regulatory framework under which to manage the development of its gas resources.”

This is totally misleading because Mozambique has at best taken steps only on paper, and these laws and regulations have not actually been transferred into reality. Mozambicans often sceptically say that these paper laws are to show foreigners and for the powerful to ignore. Many laws recently created in Mozambique have huge loopholes.

Where is the Corruption? Missing in this Master Plan!

It is quite shocking to note that the word ‘corruption’ appears in this entire 46-page document once. But that too is in reference to Nigeria, not Mozambique.

Isn’t it strange that the Gas Master Plan doesn’t even mention corruption in Mozambique when we have the dubious distinction of being in a low 120 out of 182 position on the Corruption Perception Index.

Gas or Tourism

Tourism is one of biggest contributors to Mozambique’s economy and one of the fastest-growing sectors. With gas exploration in the Rovuma basin, the tourism potential of the region will be jeopardised. The impacts of gas exploration on the Quirimbas marine reserves will be devastating.

Mega-projects: Who benefits?

The Master Plan recommends that Mozambique should prioritise mega-projects. However, the history of mega-projects in Mozambique clearly shows that they are purely self-serving, extractive, export-oriented ventures that provide Mozambique with only a small amount of low-skilled jobs and a lot of pollution.

The contribution of mega-projects to the Mozambican state in 2010 and 2011 was insignificant. The President of Mozambique’s Tax Authority said in an interview that the 2011 contribution of megaprojects to the state was even lower than the contribution of the informal sector.

Social and Environmental Impacts Ignored

The Master Plan claims that increased employment in the country is an objective. The Mozambican government does not prioritise training and capacity-building of Mozambicans, nor supporting small and medium industries, so it is clear that foreigners and local elites will walk away with the lion’s share of benefits from the gas sector.

This Master Plan pretends as if environmental impacts are small and can be ameliorated if managed properly. This is a fallacy. These activities are highly environmentally detrimental and Mozambique does not have a good track record in conducting effective Environmental Impact Assessments (EIAs). In most cases, the EIAs just act as a ‘rubber stamp’ whereas the political decisions for projects are made before the EIAs are even conducted.

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