Republic of Kenya

Kenya Electricity Expansion Project

Draft Indigenous Peoples Planning Framework (IPPF)

January 2010

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TABLE OF CONTENTS

A. BACKGROUND AND PROJECT DESCR[PTION ............................................ .5

B. RATIONALE FOR INDIGINEOUS PEOPLES PLANNING FRAMEWORK (IPPF).......7

C. IMPACTS ..............................................................................................9

D. PARTICIPATORY SOCfALASSESSMENT AND CONSULTATIONS..................... lO

E. PARTICIPATORY MONITORING AND EVALUATION....................................12

F. DISCLOSURE .......................................................................................12

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ABBREVIATIONS AND ACRONYMS

ACHPR

CAS

CBO

ERC

GOK

IDA

IPP

IPPF

KEASP

KEEP

KenGen

KIHBS

KPLC

KShs

kV

M&E

MOE

MW

NGO

OM

PAD

PDO

REA

African Commission on Human and Peoples' Rights

Country Assistance Strategy

Community-based Organization

Energy Regulatory Commission

Government of Kenya

International Development Association

Indigenous Peoples Plans

Indigenous Peoples Planning Framework

Kenya Electricity Access Scale-up Program

Kenya Electricity Expansion Project

Kenya Electricity Generating Company Ltd.

Kenya Integrated Household Budget Survey

Kenya Power and Lighting Company Ltd.

Kenya Shillings

Kilovolt

Monitoring and Evaluation

Ministry of Energy

Megawatt

Non-Governmental Organisation

Operations Manual

Program Appraisal Document

Project Development Objective

Rural Electrification Authority

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EXECUTfVES~Y

The proposed Kenya Electricity Expansion Project (KEEP) is a sub-set of the Government's Electricity Access Scale-Up Program. It will support the first phase of the Scale-Up Program's implementation, with an understanding that additional investments over a five-year period from 2010 to 2014 will be necessary to complete the connection of the target one million new customers, in addition to all designated priority loads.

The screening of project areas indicated that minority ethnic groups might be present in areas where the planned transmission lines pass through; or near the sites for the planned substations. Noting that the Kenyan people and the state use different tenns to refer to indigenous peoples, such as hunter-gatherers 'Dorobo' and vulnerable ethnic groups, the screening process has adopted 'vulnerable indigenous peoples' within the context of the World Bank's policy on Indigenous Peoples (OP 4.10). Considering KEEP operational areas, the distinct social and cultural conditions and comparative vulnerability of the various ethnic minority groups, this document focuses initially on Sengwer, Ogiek, Waata, and Boni peoples. Any addition to the list of ethnic minority groups who meet OP 4.10 criteria for indigenous peoples will be made after further field verification and consultation with the Government of Kenya .

The Government of Kenya has prepared this Indigenous Peoples Planning Framework (IPPF), to ensure that, in cases where indigenous peoples are present in, or have collective attachment to project lands, an Indigenous Peoples Plan (IPP) is prepared so that the development process fully respects the dignity, human rights, economies, and culture of indigenous peoples. To achieve this, the IPPF provides guidelines for, among other things, a social assessment of indigenous communities; free, prior and infonned consultations leading to broad community support; and the preparation of Action Plans to: (a) avoid potentially adverse effects on the indigenous peoples' communities; or (b) when avoidance is not feasible, to minimize, mitigate, or compensate for such effects; and (c) ensure that the indigenous peoples receive social and economic benefits that are culturally appropriate, and gender as well as inter­generationally inclusive.

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A. BACKGROUND AND PROJECT DESCRIPTION

The Kenya Electricity Access Scale-Up Program (KEASP) is the Government's program for scaling-up electricity access over a period of five years. It calls for doubling ofthe number of customer connections and connecting 100 percent of priority loads-defined as district headquarters, secondary schools, coffee factories, community based water supply works, health facilities, and trading centers. GoK, in cooperation with the development partners, has prepared the Kenya Electricity Access Investment Prospectus ("Prospectus") 2009/2014 that presents a coherent and comprehensive plan for expansion of electrification ("the scale-up program"). The purpose of the Prospectus is to increase concessional financing for the electrification program. The program, already underway, completed 201,000 new connections in 2008/09, about 60 per cent more connections than in 2007/08.

2. The proposed Kenya Electricity Expansion Project (KEEP) is a sub-set of the Government's Electricity Access Scale-Up Program. It will support the first phase of the Scale-Up Program's implementation, with an understanding that additional investments over the five-year period from 2010 to 2014 will be necessary to complete the connection of the target one million new customers, in addition to all designated priority loads.

3. The proposed Project Development Objectives (PDO) are to support the GoK efforts to: (a) increase access to electricity in urban, peri-urban and rural areas; and (b) improve the

efficiency, reliability, and quality of service to consumers. The project will also help to sustain the policy, institutional and regulatory environment needed for these results to materialize.

4. The project's first component includes construction of geothermal power generation plants. This entails construction of 280 MW ofgeothermal generation capacity, consisting of the extension of the Olkaria r power station by addition oftwo 70 MW units (nos. 4 &5) and construction of a new power station oftwo 70 MW units at the Olkaria IV site. The proposed plants will be within or adjacent to the existing geothermal plants where KenGen has completed considerable geophysical exploration to prove the resource.

5. A feasibility and reservoir optimization study I , completed in August 2009, concluded that the Greater Olkaria Geothermal Area reservoirs could sustain exploitation of430 MW worth of steam for 25 years. Of this total capacity, 115 MW already is in operation by KenGen at Olkaria I and II and the commissioning of35 MW is expected in May 2010 (Olkaria n3rd unit). The remaining 280 MW is

available for development. The study confirmed technical and economic viability of the proposed investments. It also has prepared a conceptual design and site selection for the two plants, based on the topography of the area, reservoir simulations, and proximity to steam wells.

6. The second component includes the construction ofthree 132- kV transmission lines as follows: (a) Kindaruma-Mwingi-Garissa; (b) Eldoret-Kitale; and (c) Kisii-Awehdo. These three lines are the top priorities for construction among eight 132 kV lines that the Government identified in the scale-up program. These lines will expand electrification to a disadvantaged region in the Northeastern province,

I Feasibility Study Report for New Units of the Optimization Project, West Japan Engineering Consultants, Inc., with subcontracted services to GeothermEX, Inc (USA) and Global Synergy Link (Kenya), August 2009.

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replace diesel generation, and improve the reliability of supply to major agriculture areas with fast growing populations in Western and Nyanza provinces.

7. The Kindaruma-Mwingi-Garissa Line will connect Garissa - the provincial headquarters of the expansive Northeastern province - to the national grid. The area has high levels ofpoverty. Livestock rearing is the main economic activity but the area also has agricultural potentiaL The development ofthe transmission line will generate employment during the construction phase and lead to opportunities for the development of small and larger scale industries after the line's completion. The scope of work includes construction of 230 km of a I 32-k V transmission line from Kindaruma, via Mwingi, to Garissa, including new substations in Mwingi and Garissa.

8. Eldoret is the fourth largest town in Kenya. The Eldoret-Kitale Line will serve a heavily

populated area with important agricultural activities. Wheat and maize production and dairy farming are

among the main activities. Informal sector activities such as fabrication of small household items,

woodcraft and basketry also provide substantial sources of income. Power supply is very unreliable

due to inadequate capacity of the transmission network in the area. The component will construct a 60-km, I 32-kV line from Eldoret to Kitale and a 132/33-kV line with a 23MV A substation at Kitale.

9. The Kisii-Awendo Line will serve an area that is experiencing rapid population growth. Kisii and Southern Nyanza have a large primary agricultural industry in tea and sugar. Kisii is a significant regional town. However, power supply in the area is extremely unreliable. Between 2003 and 2008, outages averaged 556 hours a year. The line will improve the quality of power supply in the Kisii and Southern Nyanza province and enhance security of supply in Kisumu. The component will extend the Kisii 132 kV substation (additional 132kV line bay), and construct 44krn of 132kV line and a substation at Awendo. It also will complete the Chemosit Kisumu 132kV ring.

10. The third component involves upgrading and extension of the distribution network in urban and peri-urban areas. This will enable KPLC to connect one million new consumers over five years (200,000 connections annually). An increasing number of new customers will come from lower income, peri-urban and rural areas. This component will support measures to enhance the affordability of new connections, such as staggered payments ofconnection fees and installation ofpre-paid meters that will enable consumers to control their electricity use more effectively. In addition to expanding connections, the component will improve the quality of power supply.

II. The fourth component involves rural electrification and will support GoK's objective to expand access to electricity in rural areas. The REA's initial target is to connect all priority loads, including trading centers, secondary schools, health centers, administrative facilities and other key public/community facilities, as well as 750,000 rural households in rural areas. The Rural Electrification Master Plan (REMP) provides a roadmap to achieve these targets over ten years.

12. To maximize the impact of this component REA will form linkages to agri-businesses transforming and improving performance ofagricultural technology systems, empowering stakeholders and promoting development ofagribusiness in the Project Areas. The lack of modern energy services has been a key constraint to improving the agricultural productivity and development of agribusinesses.

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13. The fifth component involves Technical Assistance that will support implementation of Kenya's energy policy, as set out in Sessional Paper No.4, 2004. The technical assistance activities will contribute to advancing the agenda set out in Sessional Paper, particularly activities that facilitate increased competition, investment and private sector participation. Areas for technical assistance include: (i) studies in expanding the role of private sector participation in power generation, distribution and supply; allowing open access of the power transmission network and facilitating power transfers between generators and consumers; successful implementation of the Least Cost Power Development Plan; small Hydro resource potential; wind resource potential; and hydro Power Potential; (ii) Consultancies in: development of regulatory frameworks to create an enabling environment to accelerate the development and utilization of solar energy technology; development of a regulatory framework for energy conservation and efficiency; development of disaster prevention and management capacity in the Energy Sector; and establishment, maintenance and updating of databases in the Energy Sector; and (iii) further capacity building in use of planning tools by planning engineers and economists drawn from KPLC, ERC and KenGen.

RATIONALE FOR THE INDIGENOUS PEOPLES PLANNING FRAMEWORK (lPPF)

14. Among the salient features of contemporary Kenya's development is that indigenous

peoples' identity remains an important factor in national and local organization. As the country

implements its generation and electrification projects, indigenous households and communities

will be potential beneficiaries of some of the KEEP sub-projects.

15. KEEP involves the preparation and implementation of subprojects in a number of regions

of the country. During project preparation, it became clear that KEEP might generate potential

benefits to vulnerable and indigenous peoples' groups and may also lead to some adverse impact

on these groups. In this context, the Indigenous People's Operational Policy (OP 4.10) will be triggered and in response the Government of Kenya has prepared an Indigenous Peoples

Planning framework (IPPF) to guide intervention in this area. The purpose of the IPPF is to

ensure that the development process fully respects the dignity, rights, economies, and cultures of

these communities and that the project is able to gain broad community support of affected

indigenous peoples and other vulnerable groups.

16. Subprojects to be financed under KEEP will be screened and if Indigenous People is a

factor, a specific Indigenous Peoples Plan (IPP) will be prepared. These subprojects will not be

implemented until the associated IPP has been developed in agreement with the affected

indigenous peoples communities, cleared and disclosed.

17. Social Management Requirements oftbe World Bank's Indigenous Peoples

Operational Policy OP 4.10 contributes to the World Bank's mission to reduce poverty and

promote sustainable development by ensuring that indigenous peoples' human rights, dignity, cultures and economies are fully respected. Through this policy, the Bank recognizes that indigenous people's identities and cultures are inextricably linked to the lands on which they live, and the natural resources they are dependent on. These distinct characteristics and

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circumstances make indigenous people vulnerable to different types of risks and levels of impacts from development projects. Such risks include loss of identity, culture and customary livelihoods as well as exposure to negative health impacts. The World Bank recognizes the vital role that indigenous people play in sustainable development; the fact that their rights receive increasing attention and action under domestic and international law. In the context of this policy and acknowledging that there are vulnerable groups that are likely to be more than just hunter-gatherer, the IPPF for the KEEP has been developed, highlighting the positive effects of new electricity connections in Kenya.

Regional Aspects of Indigenous Peoples

18. In 2003, the African Commission on Human and Peoples' Rights (ACHPR), a sub-body of the African Union adopted the document "Report of the African Commission's Working Group of Experts on Indigenous Populations/Communities". The report emphasizes that the overall characteristics of groups identifying themselves as indigenous peoples as follows:

• Their cultures and ways of life differ considerably from the dominant society. • Their cultures are under threat, in some cases to the point of extinction. • The survival of their particular way of life depends on access and rights to their lands and

the natural resources thereon. • They suffer from discrimination as they are regarded as less developed and less advanced

than other more dominant sectors of society. • They often live in inaccessible regions, often geographically isolated. • They suffer from various forms of marginalization, both politically and socially.

19. The African Commission report concludes that this discrimination and marginalization threatens the continuation of indigenous peoples' cultures and ways oflife and prevents them

from being able to genuinely participate in decisions regarding their own future and forms of development.

20. Following the publication of its report on indigenous populations, the African Commission has produced an Advisory Opinion on the UN Declaration on the Rights of Indigenous Peoples which concludes that the UN Declaration is in line with the African Charter on Human and Peoples' Rights and with the conceptualization and work of the African Commission on indigenous peoples. The African Commission further engaged in a series of country visits and seminars aimed at examining the situation of indigenous peoples and establishing dialogue with African governments and other stakeholders. The African Commission has published a series of reports from its visits, and it is regularly raising indigenous rights issues in its examinations of government reports submitted to the African Commission.

21. It is, therefore, clear that the African Commission on Human and Peoples' Rights (the major regional African human rights institution) recognizes the discourse of indigenous peoples based on the fundamental UN principles and spearheads the discussion in an African context and

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the World Bank should, therefore, work with African governments to address issues relating to

indigenous peoples in the African continent.

Indigenous Peoples in Kenya

22. The African Commission's Working Group on Indigenous Populations & Communities

affirms that " ...almost all African states host a rich variety ofdifferent ethnic groups ( ..). All of

these groups are indigenous to Africa. However, some are in a structurally subordinate position

to the dominating groups and the state, leading to marginalization and discrimination. It is this

situation that the indigenous concept, in its modern analytical form, and the international legal

framework attached to it, addresses". According to the ACHPR, there are several vulnerable

ethnic groups in Kenya that identify as indigenous peoples. Some of them are hunter-gatherers, including the Ogiek, Watta, Sengwer, Yiaku (ACHPR, 2006).

23. OP 4.10 was initially applied to some foraging groups in the country. Nevertheless, the list of ethnic minority groups who meet the policy criteria of indigenous peoples will be revised after further field verification and consultation with the GoK.

c. IMPACTS

24. This IPPF provides the framework in which negative impacts to the vulnerable groups and indigenous people are mitigated and positive impacts are enhanced based on free, prior and

informed consultations with the affected beneficiaries. As the project is currently designed, some transmission lines and substations traverse areas where vulnerable indigenous people are

located. As such an action plan will be developed within the scope of the proposed Social

Assessment that will provide the project implementing agencies with practical measures in which the vulnerable and marginalized and indigenous people will be able to benefit from the project

activities. Equally important is the incorporation of grievance mechanisms to ensure that the voice of these people is heard. As such the Social Assessment will provide pointer to the

appropriate mechanisms that can be adopted to address these issues.

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Table 1: KEEP - POTENTIAL IMPACTS ON VULNERABLE -INDIGENOUS PEoPLES

Component(s) Possible impacts on the indigenous Mitigation measures peoples

'~:-.

I)

2)

3)

4)

Geothermal Generation; Transmission lines; Distribution upgrading & infilling; and Rural Electrification

I) Interference with ancestral land tenure;

2) Loss of grazing resources such as vegetation;

3) noise, dust, soil erosion, construction waste;

4) loss of livelihoods and/or land; and

5) interruption of services

1 ) Community participation and buy2) plan land use change compensatio

relocation; 3) sensitize workers and community

safety and health measures; and 4) consider alternative sites.

-in; n,

on

.­

D. PARTICIPATORY SocIAL AsSESSMENT AND CONSULTATIONS

25. The social assessment will entail gathering relevant information on demographic data: social, cultural and economic situation; and group meetings within the indigenous community, including their leaders, NGOs, CBOs, and affected persons. Discussions will focus on potential positive and negative impacts of the subprogram; measures to enhance positive impacts; and strategies/options to minimize and/or mitigate negative impacts. The social assessment will include the following elements, as needed:

(a) A review, on a scale appropriate to the subprogram, of the legal and institutional framework applicable to Indigenous Peoples.

(b) Gathering of baseline information on the demographic, social, cultural, and political characteristics of the affected Indigenous Peoples' communities, the land and territories that they have traditionally owned or customarily used or occupied, and the natural resources on which they depend.

(c) Taking the review and baseline information into account, the identification of key subprogram stakeholders and the elaboration of a culturally appropriate process for consulting with the Indigenous Peoples at each stage of subprogram preparation and implementation.

(d) An assessment, based on free, prior, and informed consultation, with the affected Indigenous Peoples' communities, of the potential adverse and positive effects of the subprogram. Critical to the determination of potential adverse impacts is an analysis of the relative vulnerability of, and risks to, the affected Indigenous Peoples' communities given their distinct circumstances and close ties to land and natural resources, as well as their lack of access to opportunities relative to other social groups in the communities, regions, or national societies in which they live.

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(e) The identification and evaluation, based on free, prior, and informed consultation with the affected Indigenous Peoples' communities, of measures necessary to avoid adverse effects, or if such measures are not feasible, the identification of measures to minimize, mitigate, or compensate for such effects, and to ensure that the Indigenous Peoples receive culturally appropriate benefits under the subprogram.

26. The consultation and participation of Indigenous Peoples will be ensured in formulation of the subprogram IPP to ensure that it adequately deals with their needs, priorities, and preferences. Indigenous Peoples will be provided with relevant project information in language(s) in a manner suitable to them. Separate focus group discussions will be carried out to assess the subprogram impacts and benefits of these groups. Accordingly, the subprogram IPP would be prepared in consultation with the beneficiaries. The outcome of the social assessment and the subprogram IPP would be presented in community workshops/meetings.

27. Based on the social assessment, an IPP will be developed where a key section will be an Action Plan with the appropriate mitigation measures and service delivery option for the relevant subprogram to enhance service delivery for indigenous peoples. The IPP would address: (i) the results of the social assessment, particularly the aspirations, needs, and preferred options of the affected indigenous peoples; (ii) local social organization, cultural beliefs, ancestral territory, and resource use patterns among the affected indigenous peoples; (iii) potential positive and negative impacts of the subprogram on indigenous peoples; (iv) measures to avoid, mitigate, or compensate for any adverse effects of the subprogram effects; (v) measures to ensure project benefits which will accrue to indigenous peoples; (vi) measures to strengthen the capacity of local authority and relevant government departments to address indigenous peoples issues; (vii) the possibility of involving local organizations and NOOs with expertise in indigenous peoples issues; (viii) an action plan; (ix) budget; and (x) monitoring. The IPP will include the following elements, as needed:

(a) A summary of the social assessment. (b) A summary of results of the free, prior, and informed consultation with the affected

Indigenous Peoples' communities that was carried out during subprogram preparation and that led to broad community support for the subprogram.

(c) A framework for free, prior, and informed consultation with the affected Indigenous Peoples' communities during subprogram implementation.

(d) An action plan of measures to ensure that the Indigenous Peoples receive social and economic benefits that are culturally appropriate, including, if necessary, measures to enhance the capacity ofthe subprogram implementing agencies.

(e) When potential adverse effects on Indigenous Peoples are identified, an appropriate action plan which includes measures to avoid, minimize, mitigate, or compensate for these adverse affects.

(f) The cost estimates and financing plan for the IPP. (g) Accessible procedures appropriate to the subprogram to address grievances by the

affected Indigenous Peoples' communities arising from subprogram implementation. When designing the grievance procedures, the borrower takes into account the availability ofjudicial recourse and customary dispute settlement mechanisms among the Indigenous Peoples.

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(h) Mechanisms and benchmarks appropriate to the subprogram for monitoring, evaluating, and reporting on the implementation of the IPP. The monitoring and evaluation mechanisms should include arrangements for the free, prior, and informed consultation with the affected Indigenous Peoples' communities.

Institutional Arrangements

28. A short-term consultant, functioning as development specialist, will be contracted during project supervision to assist the KEEP Secretariat inter alia to facilitate the development and implementation of the IPPF activities, and eventually the relevant subprogram IPPs. KEEP subprogram staff would receive capacity development in dealing with social issues and skills necessary for screening subprogram-supported activities, evaluating their effects on indigenous peoples, preparing IPPs, and addressing any grievances. The social assessment, rolling annual consultations, and the preparation of the relevant subprogram IPPs would be undertaken by one consulting firm or individual, according to terms of reference approved by the World Bank. If necessary, a local NGO with expertise in the indigenous peoples' cultures and issues would be subcontracted to implement the respective subprogram IPP.

E. PARTICIPATORY MONITORING AND EVALUATION

29. The KEEP Program Coordination Team will establish an annual monitoring system to monitor the implementation of the indigenous peoples plan (IPP) against a set of monitoring indicators. Progress reports will be produced by June 30th of every year and communicated to all stakeholders.

F. DISCLOSURE

30. The final draft of this IPPF will be submitted by the GoK to the World Bank for review and clearance. Once cleared, it will be disclosed in-country, in the appropriate form, manner and language. Later on, the information from the documents specified, particularly the subprograms will be made available to beneficiary populations in the appropriate local language. The GoK will post the relevant documents on its website, and in the World Bank's InfoShop in Washington, DC. During implementation, GoK will prepare social accountability reports (showing available services, complaints received and response measures from GoK) and make them available to indigenous peoples, post them on its website, and submit these to the Bank for review along with the annual supervision reports.

G. BUDGET.

31. Implementation and supervision budget for this IPPF will be built in the project budget. Approximately US$ LOO,OOO will be required to carry out capacity building for project staff, preparation of IPPs and the necessary social assessment and consultations with indigenous communities.

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