Environmental and Social Impact Assessment - Gibe III

Gibe III – Environmental and Social Impact Assessment 300 ENV R CS 002 C - A9003099
Costs of certain items associated with environmental management and monitoring is an integral part of
specific items incorporated in overall project construction budgets, and no separate budget is necessary to
cover these aspects. Marginal costs of the contractor incurred in complying with environmental protection
clauses in the construction contract are incorporated in unit rates and bill items and are included in
construction costs. It should be noted that no significant increase in construction costs is expected in
connection with requiring compliance with environmental protection clauses, since these merely require the
EPC contractor and his sub-contractors to behave in a responsible manner in relation to the environmental, in
accordance with good construction practice.
The cost of the environmental mitigation plan is considered as a component of the financial requirements of
the project. Marginal benefits from the exploitation of the hydropower development should be set aside for
financing the long term financial needs of the social and environmental needs of the area such as
resettlement, agricultural extension, watershed management, development and management of buffer zones.
Table 0.2: Summary of estimated environmental mitigation, monitoring and training costs
No. Item
Estimated Cost
(Birr)
1 Environmental mitigation and management cost: Dam and Reservoir 21,500,000
2 Environmental mitigation and management cost: Downstream 245,050,000
3 Resettlement action plan 102,195,000
4 Environmental monitoring 6,550,000
5 Capacity building and procurement 5,200,000
6 Training and study tour 5,100,000
7 Environmental audit (annual audit by an independent entity for 5 years) 1,500,000
Total 387,095,000
8 Administration cost (5%) 19,354,750
9 Contingency (10%) 38,709,500
Grand Total 445,159,250
CESI SpA - Mid-Day International Consulting Engineers Page 27