Savo Island Geothermal Power Project Environmental and Social Impact Assessment

Transcription

1 Savo Island Geothermal Power Project Environmental and Social Impact Assessment February 2014 Technical Report 10 Socio-economic assessment

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3 Savo Island Geothermal Project ESIA Document title: Version: Technical Report 10 - Socio-economic Assessment v3 Date: February 2014 Prepared by: Approved by: Nicole Sommerville Damien Taylor Sinclair Knight Merz ABN Cordelia Street PO Box 3848 South Brisbane QLD 4101 Australia T F COPYRIGHT: The concepts and information contained in this document are the property of Sinclair Knight Merz Pty Ltd (SKM). Use or copying of this document in whole or in part without the written permission of SKM constitutes an infringement of copyright. Savo Island Power Project ESIA

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5 Contents 1. Introduction Project description Methodology and project area of influence Assessment methodology Data sources Project location and area of influence Social policy framework Solomon Islands policies, strategies and standards International policies, strategies and standards Existing socio-economic environment Regional setting Population characteristics Economic profile Institutional structures and dynamics Community values Impact assessment Exploration phase Construction and operation Decommissioning Mitigation and monitoring Mitigation Monitoring and reporting Conclusion References Appendix A. Evaluation of significance Appendix B. Household survey questionnaire Savo Island Power Project ESIA PAGE i

6 List of tables Table 2.1: Number of surveys per village... 6 Table 2.2: Villages located near the Project... 7 Table 4.1: Population, 1999 and Table 4.2: Religious denomination, 2009 (per cent) Table 4.3: Primary Solomon Island exports, Table 4.4: Produce prices Table 4.5: Community facilities and infrastructure on Savo Island Table 5.1: Landownership Table 5.2: Evaluation of impact significance Table 6.1: Proposed mitigation strategies exploration Table 6.2: Monitoring measures exploration Table A.1: Consequence assessment Table A.2: Severity rating Table A.3: Likelihood descriptors List of figures Figure 1.1: Location of Savo Island... 2 Figure 1.2: Project area, south east Savo... 2 Figure 4.1: Age profile, Figure 4.2: Gender diversity, 2009 (per cent) Figure 4.3: Savo Island houses Figure 4.4: Household size, Figure 4.5: Relationship to head of household, 2009 (per cent) Figure 4.6: Attendance at educational institute, 2009 (per cent) Figure 4.7: Qualifications (people aged 12 years or over), 2009 (per cent) Figure 4.8: Literacy rates, 2009 (per cent) Figure 4.9: Language ability (people aged 5 years or over), 2009 (per cent) Figure 4.10: Informal (squatter) housing White River Figure 4.11: Copra drying Figure 4.12: Economic activity, 2009 (per cent) Figure 4.13: Health care facilities (Koela health clinic and Panueli nurse station and respite) Figure 4.14: Education facilities (Kalaka School and St Alberts Rural Training Centre) Figure 4.15: Community churches (Kaogele and Panueli) Figure 4.16: Community infrastructure (Well and Kaogele piped water supply) Figure 4.17: Historical sites identified during consultation Figure 4.18: Approximate position of World War II wreck sites in Ironbottom Sound Figure 4.19: Natural areas of community value (hot springs, gardens, streams and fishing grounds) Savo Island Power Project ESIA PAGE ii

7 1. Introduction Geodynamics Limited (Geodynamics) proposes to develop a geothermal power plant on Savo Island in the Solomon Islands. The Savo Island Geothermal Power Project (the Project) includes the development of a 20 MW to 30 MW geothermal power plant to provide power to Honiara. This Technical Report identifies and assesses the potential social and economic impacts and benefits of the Project for communities on Savo Island as well as the Solomon Islands more broadly. In particular, it describes: Solomon Islands and international legislation, guidelines and standards relevant to this assessment existing social and economic conditions of local and regional communities, including population and demography, economic resources and livelihoods, and community and cultural values potential socio-economic impacts of the project s exploration, construction, operation and decommissioning measures to avoid, manage or mitigate socio-economic impacts and maximise or enhance benefits. This report provides a detailed assessment of impacts associated with the proposed exploration drilling activities, as well as a more general assessment of impacts associated with the construction, operation and decommissioning of production facilities, including power plant and transmission lines. Subject to the outcomes of the exploration phase and should the Project proceed, further detailed assessment would be undertaken of socio-economic impacts from the construction, operation and decommissioning activities. 1.1 Project description The Project is located on Savo Island approximately 14 km off the coast of Guadalcanal and approximately 35 km from Honiara (refer Figure 1.1). Savo Island has a population of about 3,100 people, of which about 1,600 people live in South Savo and about 1,500 people live in North Savo. Most people live in villages located around the coast. Preliminary investigations on the geothermal resources lying beneath Savo undertaken by Geodynamics identified a zone of interest in the south-east quadrant of the Island. Geodynamics are now progressing to the next phase of exploration activities, involving exploration drilling at four sites on Savo Island. Exploration activities will generally involve: transport of machinery, equipment and personnel to Savo Island establishment of four well pad sites, approximately 50 m by 50 m in area, and incorporating well pad; sumps for drilling mud, cement and drilling cuttings; water pump and pipelines; storage areas for fuel, chemicals, and equipment; the drilling rig; and well testing equipment establishment of ancillary infrastructure such as landing area, laydown area, workers camp, access roads, and water infrastructure exploration drilling of four slimhole wells. The proposed layout of infrastructure for the exploration phase is shown in Figure 1.2. Savo Island Power Project ESIA PAGE 1

8 Figure 1.1: Location of Savo Island Figure 1.2: Project area, south east Savo Savo Island Power Project ESIA PAGE 2

9 Should the Project proceed, infrastructure required during operation would generally include: up to five production wells and up to three reinjection wells geothermal power plant covering an area of about 50 m by 160 m, and including separator or heat exchanger, turbine building, cooling tower, and storage areas steam field, including steam pipes to transport geothermal fluids from the wells to the power plant and associated roads/ tracks transmission infrastructure, including subsea electricity transmission cable connecting Savo to White River Substation at Honiara and network connection assets. Additional infrastructure would also be required for the construction of the power plant, such as jetty for unloading materials and equipment, water pumps and dam to provide fresh or sea water for drilling, and marine access. Final details of the construction and operation phases, including location and layout of proposed infrastructure, will be dependent on the outcomes of the exploration phase Workforce The drilling workforce for exploration phase would generally comprise about 17 workers, including: Nine skilled workers who are expected to be sourced from Australia About eight local labourers and support workers who would be sourced from communities on Savo Island. Work would generally be undertaken over two 12 hour shifts, with shift changeovers at 12.00pm and 12.00am. In addition, local and overseas workers would also be required for associated activities, such as: vegetation clearing and earthworks for access roads, well pad sites and laydown areas transport of materials, equipment and personnel to Savo Island management of the visiting workers camp, including cooking, cleaning and security construction of water pipelines and other associated infrastructure. During construction, the Project would require about 40 drill rig workers. This would include workers sourced from overseas as well as workers sourced from across Savo and the Solomon Islands. Additional workers would also be required for the construction of the power plant and other associated infrastructure as well as support activities. Savo Island Power Project ESIA PAGE 3

10 2. Methodology and project area of influence Socio-economic assessment is a process for identifying, predicting and evaluating the benefits and impacts for communities, business and industry of a project. The IFC Standards for social impact assessment identify that the scope of the assessment should also include consideration of opportunities for enhancing the socioeconomic well-being of people who live and work in the project s area of influence. This section provides an overview of the assessment methodology, including data sources and the project area of influence. 2.1 Assessment methodology Key steps in assessing the socio-economic impacts of the Project included: scoping the range of socio-economic issues of the Project and groups and communities likely to be affected by the Project, either directly or indirectly describing the existing socio-economic conditions and values of affected communities, to provide a baseline from which potential impacts of the Project can be assessed Impact assessment, including identifying and analysing the potential socio-economic benefits and impacts of the Project s exploration, construction and operation, and assessing the geographical extent, magnitude, duration, and likelihood of identified benefits and impacts identifying mitigation and monitoring measures, including measures to enhance the project s benefits and avoid, manage or mitigate its potential impacts Scoping The initial phase of the assessment process involved scoping 1 the range of potential socio-economic impacts for communities on Savo Island and the Solomon Islands generally. This ensures that information collected for the existing environment supports the analysis of the Project s potential socio-economic impacts. The range of potential socio-economic impacts was informed by: the requirements of the Equator Principles, IFC Performance Standards and guidelines relevant to socioeconomic assessment a review of Solomon Islands legislation, government strategies and policies, and existing literature relevant to the socio-economic environment of Savo Island and the Solomon Islands a review of other socio-economic impact assessments undertaken for similar projects elsewhere results of community and stakeholder consultation undertaken for the Project Existing socio-economic environment The existing socio-economic environment describes key socio-economic conditions and values in the study area, including population and demography, employment, business and industry, social infrastructure and community values. This provides a baseline from which potential impacts of the Project can be assessed. The description of the existing socio-economic environment draws on: information and data from the Solomon Islands National Statistics Office, including population and demographic data from the Solomon Islands 2009 Census of Population and Housing, and economic data information from publically available literature, such as government and non-government reports and strategies 1 Type of effect, scale, geographic area, and likelihood Savo Island Power Project ESIA PAGE 4

11 outcomes of consultation with local communities, community leaders, and community groups undertaken for the ESIA and the wider project observations of community life made during site visits to Savo Island and Honiara findings from a survey of households in villages nearest to the proposed works, including the identification of natural, social and cultural values and features that are important to local communities in the study area Impact assessment and mitigation Potential benefits and impacts on the socio-economic environment of communities in the study area were identified and evaluated. These included an analysis of the potential direct and indirect impacts of the Project s exploration, construction and operation and decommissioning phases, including on: population and demography, including impacts on vulnerable groups families and households community services, networks, organisations and institutions local industry and livelihoods community lifestyle and culture. A rating tool was used to evaluate the significance of each impact, based on: the extent, duration and severity of each impact the consequence and likelihood or probability of an impact occurring. The impact rating tool is presented in Appendix A. Measures to enhance the Project s benefits and avoid, manage or mitigate the Project s impacts on socioeconomic values and features in the study area were also identified. 2.2 Data sources This socio-economic assessment was informed by the review and analysis of existing publically available information as well as primary data collected for the Project. This included: information from the 2009 Solomon Islands Census of Population and Housing, including for Savo Island, Honiara and the Solomon Islands publically available information, including economic data from the Solomon Islands government; strategies and reports prepared by the Solomon Islands Government and other non-government and international development institutions; and website information results from consultation with Solomon Islands Government agencies, Savo House of Chiefs, community members and civil society groups survey of households in communities nearest to the Project observation made during field work Community and stakeholder consultation The socio-economic assessment was informed by community and stakeholder consultation undertaken for the project and the ESIA. This included: preliminary consultation undertaken by Geodynamics in April 2013 with communities on Savo Island as well as relevant government agencies consultation undertaken with Solomon Island government agencies and communities across Savo Island in August 2013, to introduce the ESIA investigations and scope issues for consideration Savo Island Power Project ESIA PAGE 5

12 consultation with communities nearest to the Project in the Sesepi and Kaogele districts, undertaken as part of the baseline field investigations in September and October 2013 consultation with Solomon Islands government agencies and communities in the Sesepi and Kaogele districts, undertaken in November/ December 2013, to provide information on the outcomes of the baseline investigations and preliminary findings of the impact assessment. Further detail on consultation undertaken for the ESIA is provided in the Consultation Report to the ESIA. Public disclosure of the draft ESIA will be undertaken by Geodynamics in early This would include consultation with Savo Island communities as well as Solomon Island government agencies about the findings from the ESIA Household surveys A survey was undertaken in September 2013 of households in villages in the Kaogele and Sesepi districts. The purpose of the survey was to gather information on existing socio-economic conditions and values of communities near the Project. Information was also gathered on community concerns about the Project as well as perceived benefits. Surveys were conducted with 60 households out of a possible 99 households. The surveys were undertaken over three days from Sunday, 15 September 2013 to Tuesday, 17 September The selection of households to participate in the survey was based on a random selection of households in the two districts as well as who was at home at the time of the survey. Table 2.1 provides an overview of the number of households in each village who participated in the survey. The surveys were undertaken by teams of two comprising a social planning specialist and a local guide appointed by the Area Chiefs. The questions were asked in English by the social planner and translated into Pidgin/Savo dialect by the local guides. A copy of the survey questionnaire is provided in Appendix B. Table 2.1: Number of surveys per village District Village Number of household surveys Sesepi District Sesepi 7 Kolika 2 Rusaka 1 Vuazalo 3 Vutuka 1 Bokina 1 Sole 1 Vurala 3 Valemanu 1 Kaogele District Koromido 10 Kaogele 8 Siata 5 Gareka 6 Mbirasu 3 Kodola 2 Volivolia 1 Savo Island Power Project ESIA PAGE 6

13 District Village Number of household surveys Kavile 2 Monagho District Soghoka Project location and area of influence The Project is located on Savo Island within the Central Province of the Solomon Islands. The island is divided into two political wards North Savo and South Savo. The Project is located in the south-east quadrant of Savo Island within the South Savo ward. The primary focus for this assessment includes those communities or villages located closest to the Project that are likely to experience the greatest socio-economic impacts or changes as a result of the Project s exploration, construction and operation activities. These are listed in Table 2.2 and generally include communities or villages within the districts of Kaogele and Sesepi. This assessment also considers impacts of the Project for other communities across Savo Island as well as for communities located near to the White River Substation at Honiara. Socio-economic impacts for the Solomon Islands as a whole are also considered. Table 2.2: Villages located near the Project District Sesepi District Village Sesepi Kolika Rusaka Vuazalo Vutuka Bokina Sole Vurala Valemanu Kaogele District Koromido Kaogele Siata Gareka Mbirasu Kodola Volivolia Kavile Monagho District Soghoka 2 Soghoka Community is part of the Monagho District. However, this community was included during the social surveys as it was identified to potentially be impacted by the proposed project. Savo Island Power Project ESIA PAGE 7

14 3. Social policy framework This section provides an overview of the socio-economic policies, strategies and standards relevant to the Project and the study area. 3.1 Solomon Islands policies, strategies and standards Environment Act 1998 The Environment Act 1998 establishes the requirements for environmental impact assessment in the Solomon Islands. The need for an Environmental Impact Statement (EIS) is determined by the Director for Environment. The issues to be considered by the EIS are described in section 23 of the Act. Of relevance to the socio-economic assessment, the EIS is required to: describe the environment that is or is likely to be affected by the Project assess the actual or potential impact on the environment of the Project, including primary, secondary, short-term, long-term, adverse and beneficial impacts estimate the time period of any expected impacts describe the geographic boundaries of the impacts state the methods of predicting and assessing each impact from the construction, operational and where relevant, the de-commissioning phase identify and analyse all likely impacts or consequences of implementing the prescribed development, describe measures to prevent or reduce significant adverse impacts and enhance beneficial effects and an account of their likely success with estimated costs as appropriate describe residual impacts which cannot be mitigated or can only be mitigated partially describe proposed monitoring and reporting schemes National Development Strategy The National Development Strategy sets out the national road map achieve the development aspirations for the Solomon Islands. The strategy outlines policies relevant to poverty alleviation and development. The vision for the Solomon Islands as outlined in the strategy is for a united and vibrant Solomon Islands. The strategy presents four major areas of focus, which reflect the challenges facing the people of Solomon Islands. Those relevant to the socio-economic aspects of the Project include: improving the livelihoods of all the people of the Solomon Islands creating and maintaining the enabling environment. The strategy defines a number of objectives to achieve the areas of focus. These relevant to the Project include: increase economic growth and equitably distribute employment and income benefits develop physical infrastructure and utilities to ensure all Solomon Islanders have access to essential services and markets Savo Island Power Project ESIA PAGE 8

15 3.1.3 Central Provincial Government Policy Statement The Central Provincial Government Policy Statement was established by the Central Provincial Government in January The policy statement provides a more comprehensive structure and mechanisms to address limitations to progress in the Province. The policy statement is aligned with the vision, objectives and policies of the National Development Strategy. The overall vision for the Central Province is to be united and economically prosperous. The policy statement focusses on a number of broad policy goals and outcomes, of which those relevant to the Project include: increased commercial activities for generating economic growth and improved standard of living increased infrastructure/facilities and improved service accessibility sustained food security, and increased production of goods and commercial opportunities within the province. Overall, the project would support economic growth and community well-being by providing employment and training opportunities and improving infrastructure. 3.2 International policies, strategies and standards Equator Principles The Equator Principles (EP) provide guidance to financial institutions for managing environmental and social risks in project financing. The EPs identify 10 principles which provide a common baseline and framework for the assessment of projects and to ensure that projects are developed in a manner that is socially responsible and reflects sound environmental management practices. These include principles relating to environmental and social assessment, environmental and social standards applicable to developments, stakeholder engagement and grievance mechanisms. Exhibit II of the EPs provide a list of potential environmental and social issues to be addressed by ESIAs. Those relevant to this socio-economic assessment include: assessment of the baseline environmental and social conditions socio-economic impacts impacts on affected communities and disadvantaged or vulnerable groups gender and disproportionate gender impacts land acquisition and voluntary resettlement impacts on indigenous peoples, and their unique cultural systems and values protection of cultural heritage and property protection of community health, safety and security IFC Performance Standards The IFC has various policy and procedural requirements designed to ensure that projects are implemented in an environmentally and socially responsible manner. The IFC identify eight performance standards. Performance Standard 1 (PS1) relates to the assessment and management of environmental and social risks and impacts. Savo Island Power Project ESIA PAGE 9

16 The objectives of PS1 are to: identify and evaluate environmental and social risks and impacts of the project adopt a mitigation hierarchy to anticipate and avoid, or where avoidance is not possible, minimise, and where residual impacts remain, compensate and off-set risks and impacts to workers, affected communities and the environment promote improved environmental and social performance of clients through the effective use of management systems to ensure that grievances from affected communities and external communications from other stakeholders are responded to and managed appropriately promote and provide means for adequate engagement with affected communities throughout the project cycle on issues that could potentially affect them and to ensure that relevant environmental and social information is disclosed and disseminated. Environmental and social impacts, as defined by the PS1, refer to any change, potential or actual to the physical, natural or cultural environment; and impacts on surrounding community and workers, resulting from the business activity to be supported (IFC, 2012). Savo Island Power Project ESIA PAGE 10

17 4. Existing socio-economic environment This section describes the existing socio-economic values and conditions of the Project area, using data and information from: the 2009 Solomon Islands Census of Population and Housing, including for Savo Island, the Central Province, Honiara and the Solomon Islands consultation with local communities and key stakeholders, including a survey of households in communities near the Project publically available information, including economic data from the Solomon Islands government and information from review of literature and websites. Where available, information from the 2009 Census is provided for Savo Island, including South Savo and North Savo. Where this is not available, information is presented for the Central Province, which includes Savo Island. The description of existing socio-economic values and conditions provides a basis for assessing and managing potential changes of the Project for local and regional communities. 4.1 Regional setting Savo Island is located approximately 14 km off the coast of Guadalcanal and approximately 35 km from Honiara. The island is located within the Central Province of the Solomon Islands, which also includes the Russell Islands and Florida Islands or Gela Islands. The total population of the Central Province was 26,051 in Over the 10 years to 2009, the population of the Central Province grew at an average annual growth rate of 1.9 per cent, lower than the rate of growth in the Solomon Islands as a whole (2009 Population and Housing Census National Report (Vol 2)). The Provincial islands are occupied predominantly by Melanesians, except for a few Polynesians who settled in the Russell Islands. The people of Gela and Savo and the Russell Islands are culturally related to each other, despite being on different islands (Central Provincial Government, 2012). 4.2 Population characteristics Population growth and age Savo Island had a population of about 3,137 persons in 2009, of which just over half lived in South Savo (Table 4.1). The population of Savo Island represents about 12 per cent of the total population in the Central Province. Between 1999 and 2009, the population of Savo Island increased by about 588 people. This represented an annual average increase of about 2.1 per cent, which was slightly lower than the rate of growth for the Solomon Islands as a whole (at 2.3 per cent). Population growth on Savo Island was driven by relatively high population growth in North Savo. Growth in South Savo was below the average for Savo Island and Solomon Islands as a whole. In 2009, the population of Honiara was 64,609 people. The population of Honiara grew significantly over the ten years to 2009, recording an average population growth rate of 2.8 per cent annually. This high population growth rate was generally driven by high numbers of people migrating from rural areas in search of economic opportunity and employment. Rapid population growth places pressure on natural resources, as well as increasing the demand for basic services such as electricity and also increasing the need for employment creation, particularly for young people. Savo Island Power Project ESIA PAGE 11

18 Table 4.1: Population, 1999 and 2009 Population change ( ) Location Number Average annual change (per cent) South Savo 1,403 1, North Savo 1,146 1, Total Savo 2,549 3, Honiara 49,107 64,609 15, Solomon Islands 409, , , Source: 1999 and 2009 Census, Solomon Islands National Statistics Office Savo Island generally has a young population. In 2009, approximately 43.4 per cent of people on Savo Island were aged 14 years or younger, compared to 40.6 per cent for Solomon Islands as a whole (refer Figure 4.1). South Savo had a marginally higher proportion of children compared to North Savo. Savo Island also had a relatively high proportion of older people, compared to the Solomon Islands. In 2009, 4.0 per cent of the population were aged 65 years or older, compared to 3.5 per cent of Solomon Islands. The proportion of working aged people on Savo Island (ie 15 years to 64 years) was lower than for the Solomon Islands as a whole, which may reflect the limited employment opportunities on the Island. In 2009, Honiara had a very high proportion of working aged people, with people in this age group comprising two out of three people. This is likely to reflect the trend of people moving to Honiara from rural areas for employment Proportion of population years 5-14 years years years 65+ years Age group South Savo North Savo Total Savo Central Province Honiara Town Council Solomon Islands Source: 2009 Census, Solomon Islands National Statistics Office Figure 4.1: Age profile, 2009 Savo Island Power Project ESIA PAGE 12

19 Consultation with community leaders for the ESIA indicated that Savo Island s population has grown considerably over the past 30 years. Community leaders also noted that the demographic profile of people on Savo Island has also changed with young families living in the area Population diversity In 2009, Savo Island as a whole had more males than females. Males comprised about 51.2 per cent of the population, which was comparable to the Solomon Islands as a whole. South Savo generally had a more even distribution of males and females, at 49.8 per cent of males and 50.2 per cent of females (refer Figure 4.2). Honiara had greater disparity in the proportion of males to females, with males comprising 52.8 per cent of the population compared to females at 47.2 per cent. This may reflect the trend for migration to Honiara by males for economic opportunity and employment Proportion South Savo North Savo Total Savo Central Province Honiara Town Council Location Solomon Islands Male Female Source: 2009 Census, Solomon Islands National Statistics Office Figure 4.2: Gender diversity, 2009 (per cent) The people of Savo Island are largely of Melanesian descent. This group is the majority ethnic group for Solomon Islands as a whole, comprising approximately 95.3 per cent of the total population at the 2009 Census. Other ethnic groups included Polynesian (3.1 per cent), Micronesian (1.2 per cent), and European and Chinese (both at about 0.1 per cent). Within the Central Province, people of Melanesian descent comprised 95.2 per cent of the population, with people of Polynesian descent comprising 4.6 per cent. Religion plays a significant role in communities across Savo Island. Savo Island comprises 11 main districts, with each district including a church building. Catholic and Church of Melanesia (Anglican) are the two primary religious denominations on Savo Island. While most people in South Savo are Catholic, there are also relatively high proportions of people associated with the Church of Melanesia. Communities in North Savo are predominantly Anglican. Savo Island Power Project ESIA PAGE 13

20 Technical Report 10 - Socio-economic Assessment The first Anglican Church was established at Monago village. In Panueli village, there is a Melanesian Brotherhood Monastery. Churches play a vital role in maintaining community cohesion, dispute resolution and fostering socio-economic development. Honiara displays greater diversity in religious denominations. In addition to Church of Melanesia (Anglican) and Catholic, high proportions of people are also associated with the churches of South Sea Evangelical and Seventh Day Adventist. The role of religion in community organisation and community life on Savo Island is further discussed in section 4.4 and section 4.5. Table 4.2: Religious denomination, 2009 (per cent) Church of Seventh Roman South Sea Catholic Evangelical Day Adventist United Location Melanesia (Anglican) Church Other* No religion/ not stated South Savo North Savo Total Savo Central Province Honiara Town Council Solomon Islands * Includes Jehovah s Witness, Christian Outreach, Bahai, Custom Belief, Christian Fellowship Church and other Source: 2009 Census, Solomon Islands National Statistics Office Households and families Households In 2009, there were about 566 private households on Savo Island, of which about 279 households were located in South Savo. Most houses on Savo Island comprise detached dwellings, although a small proportion (about five per cent) comprised a semi-detached dwelling. Figure 4.3 shows examples of housing on Savo Island. Figure 4.3: Savo Island houses Savo Island Power Project ESIA PAGE 14

21 Savo Island has slightly larger average household sizes compared to the Solomon Islands. At the 2009 Census, Savo Island recorded an average household size of 5.6 people compared to 5.5 people in the Solomon Islands as a whole. South Savo had slightly larger household sizes at the 2009 Census compared to North Savo (refer Figure 4.4). However, consultation for the socio-economic assessment indicated that some households in Kaogele and Sesepi have household sizes well above the Census average. In particular, about one in three households surveyed in the Kaogele district and about 40 per cent of households surveyed in the Sesepi district had a household size of about six to 10 people. Further, a number of households in Kaogele and Sesepi indicated a household size of more than 10 people. In 2009, there were 8,981 households in Honiara, with an average household size of 7.0 people. Honiara had a high proportion of semi-detached houses and apartments/ flats, which is reflective of Honiara s urban landscape Average people per household Location South Savo North Savo Total Savo Central Province Honiara Town Council Solomon Islands Source: 2009 Census, Solomon Islands National Statistics Office Figure 4.4: Household size, 2009 A number of households near the Project have access to household infrastructure such as solar panels and generators to power lighting and mobile phones. In particular: about four in five households surveyed in the Kaogele district had solar panels and about 70 per cent had access to a mobile phone about three in four households surveyed in the Sesepi districts had solar panels and about 55 per cent had access to a mobile phone about 10 per cent of total households surveyed had a diesel generator about one in four total households surveyed owned a boat. Savo Island Power Project ESIA PAGE 15

22 Family structure At the 2009 Census, there were 4,905 households in the Central Province. About 87 per cent of households had a male as the head of the household. This was higher than the proportion of male headed households in the Solomon Islands as a whole, at 84 per cent. In Honiara, there were 8,891 households at the 2009 Census, of which 87.8 per cent had a male as the head of household. Figure 4.5 provides a breakdown of household members relationship to the head of the household. Children comprised about 54.5 per cent of household members in the Central Province, including sons and daughters of the household head, adopted children, children of in-laws or grandchildren. This was comparable to the Solomon Islands as a whole. About 15.5 per cent of household members in the Central Province included the spouse of the household head, marginally higher than for the Solomon Islands as a whole. Extended family members (ie parent, sibling or other relative of the household head) comprised about 9.4 per cent of household members in the Central Province, below the proportion of this group in the Solomon Islands as a whole, while friends comprised 1.7 per cent of household members. Households in Honiara generally comprised relatively low proportions of spouses and children and high proportions of extended family members (at 26.7 per cent) and friends. This is consistent with the urban nature of Honiara. Consultation for this socio-economic assessment with households in the Kaogele and Sesepi districts indicated that it is not uncommon for extended family to live in the one household. Extended family plays a significant role in family and community life in the Solomon Islands, providing the support system for individuals and assistance to less fortunate family members Proportion of people Head Spouse Child Parent Sibling Other relative Friend Relationship to head of household Central Province Honiara Town Centre Solomon Islands Source: 2009 Census, Solomon Islands National Statistics Office Figure 4.5: Relationship to head of household, 2009 (per cent) Savo Island Power Project ESIA PAGE 16

23 4.2.4 Education There were 1,000 people on Savo Island who were attending school, either full-time or part time in This represented about 38.3 per cent of the population aged five years or over. This was higher than the proportion of students in the Solomon Islands as a whole. South Savo had slightly higher proportion of students compared to North Savo. Savo Island had relatively low levels of people who had never been to school compared to the Solomon Islands as a whole. In 2009, 11.3 per cent of people on Savo Island aged five years or over had never been to school, compared to 15.4 per cent in the Solomon Islands. South Savo particular, had high proportions of people who were currently attending or had achieved some level of formal schooling, with only 8.1 per cent never having been to school. In Honiara, while there were relative low proportions of people who were currently attending an educational institute, about 60 per cent of people aged five years or over had achieved some level of formal schooling Proportion of people aged 5+ years Attending school Left school Never been Attendance at educational institute South Savo North Savo Total Savo Central Province Honiara Town Council Solomon Islands Source: 2009 Census, Solomon Islands National Statistics Office Figure 4.6: Attendance at educational institute, 2009 (per cent) Information on educational attainment is only available at the provincial level. In the Central Province, about 19.3 per cent of people aged 12 years or older had no schooling, higher than the proportion of people in this group in the Solomon Islands as a whole. The province had higher proportions of people that only had primary school level education, and lower proportions of people who had achieved secondary or tertiary qualifications (refer Figure 4.7). The Central Province generally had lower levels of literacy compared to the Solomon Islands as a whole, with lower proportions of people aged 15 years or over or aged years who are able to read and write a simple sentence in any language (refer Figure 4.8). Women had lower rates of literacy compared to men across both age groups. People in the Central Province aged five years or over, also had lower levels of English or Pidgin compared to the Solomon Islands as a whole (refer Figure 4.9). Savo Island Power Project ESIA PAGE 17

24 People with lower levels of educational attainment, literary and English proficiency may be more vulnerable to changes from the Project. In particular, these groups may find it difficult to fully comprehend the Project and its impacts and communicate their concerns about Project impacts Proportion of population aged 12+ years no school completed primary education secondary education tertiary education vocational/professional education 18.9 Qualifications Central Province Honiara Town Council Solomon Islands Source: 2009 Census, Solomon Islands National Statistics Office Figure 4.7: Qualifications (people aged 12 years or over), 2009 (per cent) Savo Island Power Project ESIA PAGE 18

25 Proportion of population yrs years Age group Central Province Honiara Town Council Solomon Islands Source: 2009 Census, Solomon Islands National Statistics Office Figure 4.8: Literacy rates, 2009 (per cent) Savo Island Power Project ESIA PAGE 19

26 Proportion of population (aged 5 + years) English Pidgin Local Language Other language Language Central Province Honiara Town Council Solomon Islands Source: 2009 Census, Solomon Islands National Statistics Office Figure 4.9: Language ability (people aged 5 years or over), 2009 (per cent) Vulnerable groups There are some groups that may be potentially more vulnerable to changes from the Project due to their gender, ethnicity, age, physical or mental disability, economic disadvantage (ie level of poverty) or social status. While vulnerability is most often associated with poverty, it can also arise when people feel isolated, insecure and defenceless. Overall, the communal nature of villages and community life on Savo Island and the role of the extended family in providing support to less fortunate family members, means that there is less likely to be people who may more vulnerable than the broader community due to economic disadvantage. However, groups in the study area that may generally be more vulnerable to changes from the Project include: women people with disability people in informal (squatter) housing at White River in Honiara. Compared to men, women in the Central Province generally: have lower levels of education, qualifications and literacy are more likely to not speak English or Pidgin are less likely to be employed in formal employment, with higher proportions undertaking unpaid family work or producing goods for own consumption. Savo Island Power Project ESIA PAGE 20

27 Technical Report 10 - Socio-economic Assessment Women are the owners of land on Savo with land inherited by children through their mother. However, due to cultural reasons, women do not speak about their land and men are the custodians who speak on behalf of women about the best use of the land. At the 2009 Census, 541 people in the Central Province were reported to have a disability, being blindness, deafness, lameness or senility and/or amnesia, representing about 2.1 per cent of the provinces total population. This was slightly higher than the proportion of people with a disability in the Solomon Islands as a whole (at 1.7 per cent). Consultation for the ESIA did not specifically identify any people near the Project with a disability, although it is likely that there are some people who may need assistance due to a disability. Fieldwork for the ESIA identified a number of people living in informal (squatter) housing adjacent to the coast near the White River sub-station (refer Figure 4.10). Figure 4.10: Informal (squatter) housing White River 4.3 Economic profile Economic resources Economic resources can include land, labour, capital and entrepreneurial ability that produce outputs that meet basic human needs. Solomon Islands The economy of the Solomon Islands consists of a mixed subsistence sector (on which the majority of the population is dependent) and a small monetised sector dominated by large scale commercial enterprises (IRENA, 2013). Primary exports rely heavily on natural resources. The primary exports for the Solomon Islands in 2011 are outlined in Table 4.3. Savo Island Power Project ESIA PAGE 21

28 Table 4.3: Primary Solomon Island exports, 2011 Export Timber Fish Copra, cocoa and palm oil Gold Value (SBD) million million 133 million million Source: Solomon Islands National Statistics Office The Solomon Islands economy has been growing rapidly in recent years, partly due to higher world prices for gold, palm oil, timber and fish. In 2011, the Solomon Islands GDP per capita (in current USD) was estimated at USD1,517, up from USD1,147 in 2009 (World Bank national accounts data, and OECD National Accounts data files). Tourism is an important growth area for the Solomon Islands, with the Solomon Islands Tourist Bureau recording 23,925 visitors in 2012, an increase from 22,941 in 2011 (Solomon Times online, 16 July 2013). This is compared to the official tourism statistic estimated at 14,628 people annually (based on last official visitor statistics recorded as 3,657 visitors for the fourth quarter 2007). Diving is a popular tourist activity for visitors to the Solomon Islands. This includes diving on World War II wrecks located in Ironbottom Sound between Guadalcanal and Honiara. As the capital of the Solomon Islands, Honiara serves as the main administrative, educational, and economic centre for the country. The main economic activities in Honiara are in the services sector. Honiara can be characterised by rising unemployment, poverty and high costs of living. The Solomon Islands is almost completely dependent on imported petroleum for its commercial energy needs. While two small hydropower plants are operating, the majority of power generated by the Solomon Islands Electricity Authority (SIEA) is from diesel. Electricity customers in Honiara pay amongst the highest electricity prices in the world (USD 0.85/kWh). Reliability, capacity to meet current demand and cost of power are seen as major impediments to business and industry growth. In addition, domestic fuel availability is becoming a problem in Honiara and further rapid urban growth could affect future energy use options. The SIEA has identified the need to upgrade its generators and provide a reliable power supply for current and future development needs. A programme of works is currently underway to install two new 5MW diesel generators aimed at improving the reliability of supply to Honiara. Savo Island The most significant economic resource for communities on Savo Island is land. Land on Savo is generally held in customary ownership, passed down in a matrilineal system, from women to their children. Land ownership can include both on-shore and off-shore regions such as reeds, lagoons and fishing grounds. The main source of income for households on Savo Island comes from selling copra. Copra driers are located within most villages in the study area. Copra is also dried naturally on riverbeds and in sunny areas (refer Figure 4.11). Copra is often transported by boat to the mill in Honiara, at a cost of about SBD100 per bag plus passenger costs. The need for a large copra drier and crushing mill was identified during consultation for the socio-economic assessment. This would mean that people would not need to take the copra to Honiara to sell, reducing costs of production. A survey of households in the study area undertaken for the socio-economic assessment found that copra was the main source of income for about 80 per cent of households surveyed in Kaogele and 95 per cent of households surveyed in Sesepi. Income generated from the sale of copra varies, with some producers indicating that they receive an income ranging from about SBD100 per week to SBD1,200 per week, and others indicating they earn about SBD2,600 per quarter Savo Island Power Project ESIA PAGE 22

29 Technical Report 10 - Socio-economic Assessment Figure 4.11: Copra drying Other sources of income identified during the household surveys included marketing of farm produce in Honiara. Again, income received varied, with some producers indicating they received about SBD per week, while others receive up to about SBD2,000 per fortnight. Some producers indicated that they receive and income of up to SBD10,000 per year from the sale of farm produce in Honiara. The key vegetables sold at market in Honiara include corn, eggplant, pumpkin, peanuts, cocoa, cabbage, tomatoes and spinach. Mango and Savo apple are also sold at market in Honiara, with some producers earning up to four SBD per fruit. Other produce sold at market in Honiara include cocoa, pigs, fish and betel nut. Prices for some of the key crops grown on Savo Island and sold in Honiara are shown in Table 4.4, based on anecdotal information collected from consultation with farmers during the preparation of the ESIA. Table 4.4: Produce prices Crop Volume/ frequency sold Price Copra 3-4 sacks (10 kg each), 2-3 times per week SBD 2.60 per sack Mango/ Savo apple 2-3 bags per month (in season) SBD 0.50 to SBD 4.00 per fruit Melon Once per month (in season) SBD SBD per melon Paw paw, cassava, peanuts Twice year SBD 5.00 to SBD There were other small sources of income generating activities identified during the household survey, including operation of canteens, selling of fish, transport of people between Savo Island and Guadalcanal and selling of craft items such as weaved baskets. Remittances from Savo Islanders who work in Honiara are also an important source of income for some households. Savo Island also has a small tourism industry, with tourists attracted to the island for its geothermal attractions (eg hot springs, mud pools and geysers) and other natural features such as the megapode birds and swimming with dolphins. Visits to the geothermal hot springs near Kaogele village are also an important attraction and provide a supplementary source of income for local people acting as guides. However, it was reported during consultation for the ESIA that visitors to the hot springs are infrequent. Three accommodation facilities are located on the western side of the Island, the main one being Sunset Lodge. Sunset Lodge offers accommodation, meals, transport and tours for visitors. The Lodge has about 20 rooms for accommodation and provides approximately five full time jobs, excluding boat operators. Savo Island Power Project ESIA PAGE 23