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SUMMARY OF THE ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN

PROJECT TITLE: GEOTHERMIC EXPLORATION PROJECT

PROJECT NUMBER: P-DJ-FA0-001

COUNTRY : DJIBOUTI

DEPARTEMENT : RDGE

1. Introduction

This document is a summary of the detailed Environmental and Social Management Plan (ESMP) for the geothermal exploration project. According to the national regulations and the requirements of the Integrated Safeguard System (SSI) of the African Development Bank (ADB), this project is classified in category 2. A framework of ESMP was prepared and published on the Bank's website on January 02, 2013 in accordance with the Bank's requirements on this matter. As part of the project implementation, a detailed ESMP was developed in January 2016 in accordance with the requirements of the donors. This summary provides a brief overview of the project and the main environmental and social components. It also describes the main environmental and social impacts and the related mitigation and enhancement measures as well as the public consultations held during the design and development of the detailed ESMP are presented. Finally, it describes the monitoring program and institutional arrangements as well as the costs and timing of implementation.

2. Brief on Project description and main environmental and social components

2.1 Project Description

The Republic of Djibouti has for many years been engaged in geothermal exploration in the Lac Assal region. It received funding in 2013 from various donors including the World Bank, the African Development Bank (AfDB), the French Development Agency (AfD), the OPEC Fund for International Development, the Global Environment Facility (FEM) and the Energy Sector Management Assistance Program (ESMAP) to finance geothermal resource exploration in the Caldera Fialé region and assess the feasibility of commercial geothermal power generation.

The project is part of a program to increase renewable energy production capacity and improve the quality of life of the Djiboutian population. The project will improve the Djiboutian population quality of livelihood through: (i) increasing the capacity of clean energy production; (ii) improving access to electricity; (iii) reducing oil imports and; (iv) reducing greenhouse gas emissions.

During the implementation of the project, it was found that the funding allocated will be insufficient to carry out all the drilling and the Republic of Djibouti has requested additional financing from the ADB. These additional resources will allow in the short term exploration of the geothermal steam field of Lake Assal and confirmation of the characteristics of this geothermal resource. Three wells are technically sufficient to prove and quantify the geothermal resource in terms of energy production. If the geothermal

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resource is confirmed, the construction of a geothermal power plant could be carried out in the medium term in order to increase Djibouti's clean energy production capacities.

The project objectives as originally approved in June 2013 have not varied; they are to quantify the technical and financial feasibility of using Assal Rift geothermal resources for mass production of electricity.

The project will be carried out in three phases: (i) the first phase consists of the exploration of the geothermal steam field of Lake Assal and the confirmation of the characteristics of this geothermal resource; (ii) the second phase will include the development of the geothermal field and the construction of a geothermal power plant with an installed capacity of 20 MW; and (iii) the third phase will consist of expanding the capacity of the geothermal power plant to 50 MW.

The project components remained as follows: (i) Component A: Drilling activities; (ii) Component B: Technical Assistance; (iii) Component C: Project Execution and (iv) Component D: Environmental and Social Management. The revised total cost of the first phase, which is the subject of this project, is UA 41.2 million and the estimated completion time is 30 months. The cost of implementing the ESMP remained at UA 0.4 million (US $ 0.6 million) and is not included in the proposed additional funding.

The project should involve the following main steps and works:

- Access tracks. Rehabilitate existing access tracks Djibouti - the Tadjoura highway RN9 to the drilling sites and build gravel tracks leading directly to the drilling sites using material from a quarry located near the project site

- Drilling platforms. Construct up to three drill rigs, each with an area of 0.6 to 1 hectare, with sealed tanks or open pits for the discharge of sludge and geothermal fluids generated during production tests.

- Pumping station for seawater and pipelines. Water supply for drilling mud will be from a station built on Ghoubet Bay; water will be piped to the drilling sites.

- Workers' Camp. A camp for workers and security guards with a minimum of 20 national workers - Storage area for materials and equipment. - Well drilling. Construct and test three small diameter wells and up to four geothermal exploration

wells - Testing. Water flow test by test wells for one to three months to determine commercial potential

Map 1 below shows the spatial location of the different components of the project.

Construction and well testing is expected to last approximately 13 months.

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Map 1 : Location of the project components

2.2. Major environmental and social components

The Caldera-Fiale area studied as part of this environmental and social impact study is located at a distance of 120 km of from Djibouti and 70 km from Tadjoura. The project site is delimited by two important water ecosystems, Lake Assal and Gulf of Ghoubet (see map below) and the villages of Daba the Gahar, Ardoukoba Volcano (Carrefour) and Laïta are located in the project area.

2.2.1 Geology

The Republic of Djibouti is at the meeting point of three large tectonic plates (the African plate, Arabic plate and the East African / Somali plate), where the Arabian Plate tends to separate from the African Plate, but remains attached to it by the depression of Afar including the territory of Djibouti. This great depression, which continues in Ethiopia and Eritrea, is crossed by a complex system of large breaks, the most active are between the basin of Ghoubet-Kharab and Lake Assal (rift Assal). The Assal rift, which was discovered in the 1960s, shows tecto-magnetic structures crisscrossing the ocean floor. It is an active plate boundary where you can observe the birth and follow the evolution of an ocean. This great depression, which continues in Ethiopia and Eritrea, is crossed by a complex system of major breaks, the most active are between the basin of Ghoubet-Kharab and Lake Assal (rift Assal).

The most remarkable manifestations of this recent and on-going volcanic activity of the Assal rift zone are the presence of hot springs, fumaroles, various craters and the Ardoukôba volcano, born in November

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1978. Due to the particular tectonic situation, the Assal rift zone is a very active zone from the seismic point of view. Earthquakes are very frequent, but of very low intensity (not perceptible by people in general). The region was particularly affected by a seismic crisis in March 1992 which crossed the Gulf of Tadjoura, with a seismic focus located at 2 km from Arta beach and earthquakes with a magnitude greater than 4 on the Richter scale. These earthquakes did not cause significant damage. The average occurrence of a seismic event with a magnitude greater than 5 in a given region can be estimated at 16 ± 5 years. A magnitude of 6 on the Richter scale is a maximum that can be estimated for the Gulf of Tadjoura (Didier, 2001).

The Caldeira-Fiale area is partially covered by the Lava Lake which is a geological anomaly consisting of recent basaltic lavas on the soils. One of the special characteristics of the site is the presence of vegetation, especially herbaceous, which can develop because of the fumarole vapors in the caldera and its periphery. The name Fialé in Afar language refers to this vegetation. This is usually located along open cracks in the direction of the rift. The construction of access tracks and drilling platforms may have an impact on the appearance of the lake of lava.

2.2.2 Nature of the soil

In the project area, soils are generally poorly developed with a predominance of very recent volcanic rocks (basaltic rocks and rhyoliths). Only at the level of the wadis, some lithosols can be found.

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2.2.3 Climatology and water resources

The Republic of Djibouti, located in the intertropical zone between 10 ° 55 'and 12 ° 45' north latitude, has a tropical, arid or semi-arid type of climate which varies according to altitude (National Monograph of Biological Diversity, 2000). The relative humidity varies between 40% and 90%, and the average air temperature varies between 25 ° C in winter and 35 ° C in summer. Annual precipitation is normally from 50 to 215 mm with an average of 130 mm, but can be very variable depending on the year. The climate, far from being uniform throughout the territory, varies in time and according to the regions. Generally, coastal climate is characterized by a cool season (October to April) and a hot, dry season (May to September). Due to very low rainfall, the quantity of freshwater resources in the project area is very limited.

In coastal areas, where the project area is located, climatic conditions are harsh and inhospitable. The insufficiency of rainfall or even their lack (drought of 1980 and present) and, consequently, the scarcity of perennial streams, expose the plant and animal resources to great risks of degradation. This explains the fact that agriculture is underdeveloped and that the main rural activity remains nomadic pastoralism. The closest underground drinking water resources to the site are located in Kussur-Kussur, 10 km to the southwest, and on the site where the RN9 crosses Wadi As Dan'aou (5 km as the crow flies towards the North-East).

2.2.4 Ecosystems / Protected Areas

Up to day, Djibouti has 7 protected areas including 4 terrestrial (Forest Day and Mabla, Lake Abbot and Lake Assal) and 3 marine (islands of Musha and Maskali, Sept-Frères-Khor Angar-Godoria and Garramous). All are classified as Protected Areas by Djiboutian law, but do not correspond directly to the IUCN categories. The terrestrial ecosystem of the Republic of Djibouti is divided into mountainous regions and plains, plateaus and depressions. These lowlands are characterized by steppes and grassy savannas. The vegetation is adapted to dry climate, such as acacias.

Lake Assal

Lake Assal is a crater lake formed by the penetration of seawater by extensive cracks dotted with volcanoes. This lake is located at 155 m below sea level in the Afar Triangle, making it the lowest point in Africa. Due to high evaporation, the salinity level of its waters is 10 times higher than that of the sea, making it the world's saltiest lake after Don Juan Pond. This lake has always been the center of interest of nomadic populations in the region who derive their main livelihood from artisanal salt mining and caravan export to Ethiopia, where it is used in the chemical industry. (tannery, fertilizer) and food.

The lake is a protected area under Law No. 45 / AN / 04 / 5L of the National Environmental Action Plan, 2000 and the Government of Djibouti has submit a proposal with UNESCO to declare the Lake Assal and the Ardoukoba Volcano as a World Heritage Site. Nevertheless, the exact boundaries of protected areas and management measures are not yet fixed although it is expected that the lake itself and its salt banks (salt floes) will be protected. The distance between the drilling site and the shores of Lac Assal is approximately 8 km. The planned drilling wells site is located near (maximum 1 km) from the seawater infiltration zone of Ghoubet to Lake Assal.

Ghoubet-Kharab

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The Ghoubet is a sensitive ecological area separated from the Gulf of Tadjoura by a narrow 40 m wide and 40 m deep. In the Ghoubet, the depth of the sea exceeds 200 meters. The salinity of seawater ranges from 39.3 g / l at 125 m depth in November to 37.7 g / l at the surface in June. Surface temperatures fluctuate between 28 ° C and 30.5 ° C. This site is a potential Marine Protected Area according to the information of the Ministry of Environment of Djibouti.

Coastal zone

In its terrestrial part, the limit of the Djibouti coastal zone has been set at 15 km from the coastline. The project is located in the coastal zone of the Republic of Djibouti. The distance between the drilling site and the Ghoubet-Kharab is about 2 km as the crow flies, and 5 km by the track.

The Integrated Coastal Zone Management (ICZM) plan states that one of the major challenge is to promote economic development in various sectors (major infrastructures, transport, industry, agriculture and livestock, fisheries and tourism) while preserving the coastal zone environment.

In the case of this project, it is planned to build a sea water pumping station on the Ghoubbet Bay.

2.2.5 Flora

In general, the vegetation of the Assal-Ghoubet region is characterized by a grassy steppe and (especially in wadis) shrubs of Dracaenae ombet, Acacias tortilis and mellifera to which are added some Acacias asak in the wetter areas. The foliage of acacias is the main source of food for goat herds.

The site around the planned drilling site and around the "Lava Lake" is a bumpy terrain, mainly covered with basaltic lavas with little vegetation in general.

The herbaceous vegetation found in the Fiale is usually located along open cracks in the direction of the rift. In a perimeter of more than 1 km around the Lake of Lava there is no shrub. Herbaceous plants around faults are also less developed than in neighboring areas, and their interest in small-scale pasture is confirmed by the local population.

2.2.6 Wildlife

Because of the extreme salinity of Lake Assal's water, the presence of fauna is limited to the confluence of sources supplying the Lake where the water is less saline. The presence of small fish (Cyprinodon sp.) has been confirmed.

The seabed of the Gulf of Tadjourah and the bay of Ghoubet are characterized by a great wealth of biological and animal heritage and host a breeding area for most of the pelagic and reef fish of Djibouti (Monographie Nationale 2000). Although the corals are relatively few in number and little developed, the filter species, consisting of barnacles, sponges, filtering mollusks etc., are very diverse. The area has more than 454 species of fish and 9 species of mammals, the majority of which are endemic and belong to the waters of the surrounding seas such as the Gulf of Aden and the Arabian Sea and the Red Sea. There are also 27 species of sharks (hammerhead shark, whale shark, nurse shark, sea tiger, blue shark) and two species of small whale, a species of giant skate and orcas, dugongs and six species. Endemic Dolphins species endemic to the Red Sea (bottlenose dolphins, humpback dolphins, spotted dolphins, Indian dolphins) have been observed in the area. The waters of this inner gulf are home to 4 species of turtles such as the lute tortoise, tortoise shell, Ridley turtles, green turtles that usually migrate to the

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northwestern Gulf for breeding between October to February, 13 species of seabirds and, among marine mammals, dugongs and dolphins (source: MHUE 2005). (Dugong dugong) and the whale shark (Rhincodon typus) are on the Red List of the World Conservation Union (IUCN) for Threatened Species.

The Ghoubet is home to several species that are mentioned in the Decree No. 2004-0065 / PR / MHUE protecting biodiversity, including dugong, dolphin, turtles, sharks and whale sharks (Rhincodon typus ) that deserve special protection.

As the Gulf of Tadjourah comes from the confluence of the waters of two seas (Red Sea and Indian Ocean), we find the strong presence of 150 species of corals with very diverse colors but also other wildlife creatures such as the cretaceans , mollusks, lobsters, crabs, 35 species of porcelain and two species of pearl oysters are gradually filling the list of the inventory of small soft species in the Gulf.

The caldera de Fialé (near the planned drilling area) is land used as pasture area by the local population and transhumant herds. At the same time, the site is crossed by the access track to the Ardoukoba volcano and to the Lava Lake, which are sites of tourist interest. Due to the frequent passage of tourists, gazelles and other mammals are rare in the project area. However, the presence of gazelles in the area has been confirmed.

2.2.7 Human and socio-economic framework

Preliminary statistical data from the 2nd General Population and Housing Census (RGPH) of 2009 estimated the population of Djibouti at 818,159 inhabitants and the projections of the United Nations for the Populations give for 2016 a population of 942,333. The spatial distribution of the population remains relatively balanced between the capital region of Djibouti city (58.10%) and the interior regions (41.90%). This population is characterized by a marked disparity between men and women, in favor of women with regard to infant mortality, life expectancy and the literacy rate (Djibouti Department of Statistics).

Until recently, the rural population of Djibouti was a subsistence pastoral society with a nomadic lifestyle and close ties to neighboring countries. Afars from northern Djibouti followed transhumance routes in the Afar areas of Eritrea and Ethiopia, while Issas / Somalis groups led their flocks in the Somalia area. Most of them have become sedentary since then, but the traditions of pastoral society and transhumance on a smaller scale continue until now.

The official languages are French and Arabic while Somali and Afar, belonging to the Cushitic group, represent the main mother tongues of the country. At the national level the two main ethnic groups of the country are the Afars and the Issas, both nomadic and Muslim. The regions of Obock, Tadjoura and Dikhil are the regions mostly inhabited by the group of Afar, while the regions of Ali Sabieh, Arta and Djibouti are inhabited by the Somalis mostly belonging to the group of Issas.

The pastoral organization, modulated according to the state of the resources, is concerned above all with the survival of the cattle. In normal (non-drought) periods, the use of rangelands is strictly regulated for their sustainable management. In times of crisis, in order to save the herds, the space is open everywhere without restriction, but the herd of the neighbors is not allowed in the concessions

The Issas group is not present in the project area. On the other hand, it is a traditional zone of activity for the nomads Afars who exploit the salt of Lake Assal since centuries. Camel caravans were used as means of transportation to destinations either in the Ethiopian mountains or in the Djiboutian port of Tadjoura.

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The project is located in the Tadjoura region, 79 km from the city of Tadjoura and 127 km from the capital. The distance to the border of the Arta region is 7 km and 25 km to the village of Karta (Arta region), where is the nearest school. The closest population to the site is currently in Daba le Gahar (76 households), at the former camp site of the Yugoslav company which built the RN 9 road about 5 km from the drilling site. The total population in the villages Daba the Gahar, Laïta and Ardoukoba (said Carrefour) is of 298 households of "sedentary", some men still practicing salt exploitation with caravans. In addition to the sedentary population, 248 "semi-nomadic" (transhumance) households live in the area. The population of the study area is 546 households, the closest of which live in Daba le Gahar 5 km from the sites planned for drilling.

The drilling and geothermal exploitation workers camp will constitute an exceptional site of population concentration in the zone knowing that the zone of Assal is not known as a site of permanent habitat, due to the extreme weather conditions, the lack of drinking water and scarcity of vegetation. There are no basic services, basic infrastructure, health posts or schools.

In the past, the area was only a transitional transit zone for transhumant herders from north to south or from south to north between two seasons (cool season and hot season) and there were a large number of caravans starting from the salt floe of the Assal Lake to Ethiopia. Due to the termination of the salt project, the decline of economic options and poverty prevailing, a considerable number of households left the sub-prefecture. In the project area, the population does not practice fishing, despite a distant tradition (over 2000 years) of local populations to consume seafood, which is demonstrated by archaeological findings.

In the vicinity of the planned drilling site and the existing access road, there is no prehistoric settlement, according to Djiboutian archaeologists. However places of archaeological importance are located south-East of the study area (on the Ghoubet Bay) with prehistoric tools were discovered during archaeological excavations conducted since 1930.

Education

There is no school in the Assal sub-prefecture; students from the villages of the area go to the nearest school in Karta (15 km). 59 children out of 170 of the communities go to school; there is no school bus, children have to walk all the way back and forth.

Health

There are no statistics on the health situation in the Assal region. The public health sector is not developed. There is no dispensary / health center in the Assal sub-prefecture. An ambulance service exists theoretically in the city of Tadjoura, but because of the great distance it is expensive and de facto not available to the communities.

Electricity

There is electricity in the villages only when diesel is available for the existing generator (at least for some households). The project of interconnection power lines from the future geothermal power plant will only improve community livelihood if a low voltage line is built for the villages.

3. Main environmental and social impacts

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3.1 Positive impacts

3.1.1. Recruitment of the local workforce

It will be necessary to hire local labor for the project. The skilled workforce will surely come from the capital and from abroad, while the local population will have the opportunity to be hired for manual labor (unskilled labor). People living near the project site should be hired first. The positive impact of labor recruitment will affect relatively few people and will only be on the short term. The need for unskilled labor is estimated at 10-20 people for the construction of the access road for an estimated duration of one month, 2-4 people (site monitoring, night guards) during a period of about 6 months, and about fifty people on the drilling site. Of these, about twenty could be recruited locally (caretaking, workers, housekeepers, kitchen ...). The figure is to be specified during the technical study of the project.

The workers' camp specific to the drilling phase is under construction, it consists of 32 converted containers that constitute temporary housing that can be easily dismantled at the end of the project.

3.1.2. Gender equity

The situation of women in the local population will not be damaged by the project. A positive impact can be generated by local job creation and socio-economic support measures. During consultations, women asked to be employed in the same way as the men and to receive the same wages. As part of the ESMP implementation, groups of women and young people have been identified and were trained for a possible micro-financing through revolving funds for activities they selected.

3.2 Negative impacts

3.2.1. Potential impacts on neighboring ecosystems

The geothermal project is neither located directly in the Assal Lake area nor on the salt floes and will therefore have no direct impact on the Assal Lake protected area in its current extent. However, the geothermal drilling project may indirectly affect the waters of Assal Lake by gravity.

In fact, the drilling sluges and geothermal fluids generated during the test phase will be dumped into reserve pits on the three rigs constructed. These sludges and fluids could potentially reach the lake by surface or by shallow faults. Given the likelihood that these fluids contain amounts of heavy metals (or other hazardous substances) on a higher density than the receiving water of Assal Lake, it is imperative to ensure that neither these fluids nor other wastes or hazardous substances do not reach the Lake.

Laboratory analysis of fluids and sludge should be operational before drilling begins to identify potentially hazardous sludge at the start. It is essential to set in place measures for rapid action for disposal of highly contaminated sludge to appropriate sites, if identified and if their volume is significant. Otherwise, the drilling project could lead to an irreversible negative impact on the sensitive ecosystems of Assal Lake or Ghoubet el Kharab and the coastal zone.

3.2.2. Impacts of the construction and operation of the infrastructure related to the project

The site's preparatory work includes various civil engineering works, including:

- Construction of gravel access roads: the access road will be approximately 4,800 m long.

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- Construction of three drilling platforms: these drilling platforms are opened space of about 10,000 m² covered with gravel and with a reserve pit of about 100 cubic meters.

- Construction of a storage area for materials and equipment consisting of an opened space of around 10,000 m² covered with gravel.

- Construction of the workers' camp consisting of an opened space on which 35 containers will be installed as well as other facilities such as water and generators.

The construction of these infrastructures which are completed or about to be completed, were implemented without major socio-economic or environmental impacts. An existing gravel quarry located approximately 300 m from the site was operated with an impact categorized as fair. The impacts on air quality and sound level were temporary and no traffic accidents were registered.

3.2.3. Road traffic

Currently, the Lac Lava area is frequented by tourists and technicians who maintain the seismic station. It is estimated that the number of vehicles per day does not exceed ten. The exploration phase will lead to a certain increase in road traffic which will be limited to the access road leading to the site. It is estimated that traffic increases by a factor of 3-5 during the construction phase, or 30 to 50 vehicles per day. Considering the low impact on the environment, no mitigation measures are planned in this area. In case it would be necessary to reduce dust or noise generation, a speed limit on the access road may be imposed.

3.2.4. Impacts on water resources

Drinking water for workers' camp: the demand for drinking water in the workers' camp is about 5 m³ / day (assumption: 50 workers, consumption of 100 l per day and person). A tanker shall be hired to supply drinking water to the labor camp from Daba Gaharil and the impact is considered negligible (very small increase in traffic: one truck every 3 days).

Seawater supply for drill wells: in order to ensure the feeding of wells and the production of drilling mud, the government of Djibouti has started the construction of a pumping station of the sea water on the coastal zone. The volume of water required for drilling can reach 25 m³ / h, or 6,000 m³ per day; so far the expected capacity of the planned pumping station shall be of 200 m³ /hour. The pump station will include a discharge pump and the water inlet system will be designed to reduce impacts to fish and aquatic organisms. The volumes of water, although important, will not have a long term impact on the water resource.

Pipelines will be installed from the seawater pumping station to the drilling platforms. Even if these necessary facilities are temporary, they will have an impact considered as fair if their cross a transhumance corridor and modify the landscape; the risks of soil degradation in case of leakage of the pipes will have to be limited by a regular control of their state.

3.2.5. Auditory nuisance related to drilling work and production tests

A significant impact induced by drilling and production testing is the increase of sound level to auditory nuisance. This increase is caused by the drilling machine and the geothermal wells. Noise from drilling is approximately 75 dB (A) at a distance of 25 m from the source and drops to 30 dB (A) at distances of 400 m. If a well is successful, the noise from the unloading wells can reach 100 dB (A) or more. A silencer will

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be put in place to reduce the noise of drilling in production. Since there are no inhabited areas near the site, the impact on the population is nil but the noise will have some influence on wildlife. In the vicinity of the wells, the noise exceeds the World Bank's limit value of 85 dB (A) for heavy industry installations. Therefore, on-site workers should wear the appropriate protective equipment. During the test phase, a separator will evacuate the vapor into the atmosphere and the residual water in the tank provided for this purpose. A silencer will be put in place to reduce the noise of drilling in production.

3.2.6. Oil pollution and fuel pollution risks

Another potential impact is related to the use of various machines that consume fuels, such as drilling machines or generators. In this case, there is always the risk of accidental contamination by fuels, oils or other liquids. The total quantity of fuels used during the entire duration of the works is estimated at 500,000 l. However with regards to the fuels, a tank and a fuel pump have been installed and shall limit the risk of fuel spillage.

The impact is classified as temporary and low and can be considered zero if the contractor only uses equipment in good condition and performs adequate maintenance. In total, the environmental impact of drilling and testing is classified as low and is limited to the duration of the project.

3.2.7. Atmospheric emissions

Air emissions from geothermal power plants are generally negligible compared to fossil fuel-fired power plants. Emissions may occur during drilling and testing. The gas contents of the Assal 3 drilling fluids are carbon dioxide (CO2), with traces of hydrogen sulphide (H2S) and methane (CH4). The concentrations to be expected according to the Assal 3 and 6 drilling experience are very likely to be small, and the gas coming from the wells will be dispersed and diluted due to the strong prevailing wind of the Assal region. Nevertheless, hydrogen sulphide is heavier than air, which can theoretically lead to accumulations, especially in closed structures (buildings, etc.). For this reason, the H2S parameter will have to be monitored and, if necessary, safety measures for workers will have to be considered.

3.2.8. Fluids, sludge and geothermal debris generation

Significant amounts of geothermal fluids will be generated which will then have to be properly disposed. The total amount produced during the 90-day trial phase was estimated at between 43,200 and 108,000 t per test well. The results of analyzes of geothermal fluids from the deep geothermal reservoir of wells A3 and A6 (Aquater, 1989) show a very high salinity with significant contents of heavy metals. By analogy with these results from previous campaigns, it seems highly probable that the geothermal fluids of the new drilling wells shall contain heavy metals (lead, zinc, copper, etc.) in quantities that most probably do not comply with the quality of the possible receiving media. Each platform has a reserve ditch that can accommodate near 100 cubic meters of fluids, sludge and debris from drilling activities.

3.2.9. Solid waste and wastewater generation

Solid waste and wastewater will be generated at the drilling site during the construction phase. Given the number of people working on the site (around 50 people), the amount of household waste expected is estimated of 0.25t per day and 5 m³ of wastewater per day.

3.3 Environmental Risks Associated with the Project

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3.3.1. Eruptions of the wells

Well blowouts can occur during well drilling, which can result in emissions of drilling fluids and geothermal fluids. Upward drilling fluids can reach high temperatures with the risk of burns for workers. The risk of an induced underground or volcanic eruption is low, but the impact on workers is potentially high and mitigation measures are to be planned.

3.3.2. Accidental spills of fluids

Pipeline failures can occur during well drilling or testing, and spills from reserve ditches can occur, resulting in spills of geothermal fluids and hydrogen sulfide. The potential impact of such spill on workers and on the environment is considered strong and mitigation measures are to be planned.

3.3.3. Seismic and volcanic incidents

Since the project is located in a very active area in relation to seismic and volcanic activities, there is a certain risk of seismic (earthquake) or volcanic incidents. The consequences of such an incident are potentially catastrophic for staff and the surrounding population.

3.4 Socio-economic impacts

3.4.1. Potential restriction of access to part of transhumance corridor

Part of the traditional transhumance corridor of the Afars crosses the area planned for drilling and they use it at least twice a year, often 3 to 4 times, depending on the abundance of rains that have become irregular in recent years. The length of the corridor in the potentially affected drilling area is approximately 2-3 km, from the seismic station to the large fault behind the former Assal 5 drilling site. An alternative road has been identified with communities and local authorities and it will need to be marked and communication material provided locally.

3.4.2. Visual impacts on the landscape

Drilling rigs and seawater pipelines to adduction drilling sites will have a significant visual impact in the area.

3.4.3. Risks of dissemination of STD / HIV AIDS

Workers' camps are often a potential source of negative impacts on local women: sexual harassment, prostitution and sexually transmitted diseases (AIDS, etc.). Women are often vulnerable to workers living without families in the camps, and they must be protected against any form of abuse. As the drilling project will mobilize a reduced number of workers including local labor, this impact is rated as low.

An awareness program on sexually transmitted diseases will be carried out by a local NGO to be determined in collaboration with the Ministry of Women Empowerment /ADDS.

3.4.4. No population resettlement

The planned drilling site is not inhabited, with the nearest houses and camps at a distance of 5 km. The drilling site is on land owned by the state. Therefore, it will not be necessary to acquire land for the drilling site during the exploration phase. For the planned drilling activities, there is no need to resettle populations, neither for the construction of the access road, nor for the workers' camp. As this is an

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unfriendly place to live, local people are unlikely to settle at the planned drilling site. The representatives of the different villages and social groups were informed of the project's situation during the consultation.

3.5 Cumulative Impacts on Protected Areas and the Coastal Zone

The SaltInvest project has created a considerable environmental impact in the Assal Lake area and the Ghoubet seafront by exploiting salt in a protected area (salt floe); the development of a salt storage site on a beach of Ghoubet (potential marine protected area), and the construction of a port in the Ghoubet for the transport of salt by sea.

The additional impact of the geothermal drilling project appears to be small, provided that the mitigation measures are effectively implemented.

4. Improvement and mitigation program

4.1 Specific measures for the construction of drilling infrastructures

Concerning the reinforcement of the access road, the following mitigation measures should be considered:

- design the itinerary of the road so as to limit to a strict minimum the impacts on the landscape and the geological manifestations,

- minimize earthworks to protect geology, soils, topography, landscape and vegetation, - take appropriate erosion prevention measures and avoid areas of vegetation, - if possible, follow the route of the existing track. Only at the places where the current track passes

on the Lake of Lava, it is to envisage to change the route and to avoid the zone of lava, - The portions of the current track that have been replaced must be closed,

Before and during the operation of the quarry, the following mitigation measures must be taken:

- Preparation of a General Health and Safety Plan (GHSP) for the quarry exploitation, - Choice of appropriate equipment and extraction techniques to minimize impact on sound level

and air quality and to reduce the risk of accidents, - Regularization of the access of the quarry trucks to the national road (signs, speed limits, etc.) - Ensure adequate transport and storage of explosives - After the completion of the works ensure the rehabilitation of the quarry site - Ensure the wearing by workers of adequate personal protection equipment against noise, dust

and other nuisances

4.2 Specific measures for pumping seawater

The water inlet system will be designed to reduce shocks to fish and aquatic organisms, it shall be located far enough from the shore to avoid tidal range, and to a depth where a lower density of fish is anticipated. The system should consist of a discharge pump and include water barriers and filters to reduce encroachment and suction of fish and shellfish by the pump and allow unimpeded movement of fish and other organisms aquatic.

The water intake must be marked with buoys and signals warning swimmers or divers in the area in order to avoid accidents. The water inlet structure will be designed for preventing adverse effects on water quality.

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Pipelines shall be monitored for leaks and any leaks shall be repaired immediately.

4.3 Specific measures to Drilling Operations

4.3.1 Management of drilling fluids

All drilling methods work with drilling fluids, whose main function is to ensure:

- evacuation of drilling spoils, - cooling of the trephine tool, - support of the drilling walls, - control of fluid losses in the permeable layers, - control of water inflow in the artesian aquifers.

The type of fluid (foam or slurry) to be applied to the Fiale site will be determined during the contractor's engineering studies. These studies will also determine the exact chemical composition and volume required. The sludge returned from the well is cooled, sieved, partially recycled and the cuttings are returned to the tank provided for this purpose with a residual sludge. The solid part settles in the bottom of the tank by decantation and the clear water on the surface can be recycled or evacuated.

Mitigation measures for the management of drilling fluids include the following:

- Reuse of drilling fluids, where possible, - Preferably use of biodegradable products for the manufacture of drilling mud, - The quality of the rejected liquids must be checked regularly, - In case foam is applied, special measures should be considered for protection against wind

transport, - Removal of the drilling mud treatment facilities as well as the water supply and / or the disposal

of the drilling fluids after completion of the work.

4.3.2 Management of geothermal fluids

By analogy with the results from previous campaigns, it seems highly probable that the geothermal fluids of the new wells will contain heavy metals (lead, zinc, copper, etc.) in quantities that most probably do not comply with the quality of the possible receiving media. It is obvious that the uncontrolled release of these fluids would have a significant impact on the environment, especially on water resources and ecosystems as lead is highly toxic to fish and other aquatic organisms. For this reason, it is necessary to treat geothermal fluids.

Drilling fluids will be dumped into the reserve pits on each platform. The liquids will be progressively removed by evaporation and infiltration into the soils knowing that there is no beneficial use of the shallow seawater aquifer and it is likely that this aquifer is hydrological bound to the geothermal aquifer; the shallow sea water (at approximately 250 meters) found under the site is approximately 100 degrees Celsius indicating a hydrological link to the geothermal aquifer.

Sludge and geothermal spoils are potentially dangerous and come from the various activities related to the drilling program, namely:

- Spoil and sludge from the treatment of drilling mud are estimated at 6,000 t or 2,400 m³ for the 3 drillings;

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- Precipitates of the minerals produced during production tests: Sulphide, silicate, carbonate or other precipitates are generally collected on the cooling towers and the steam separators. These precipitates can be classified as hazardous, depending on their concentration of chloride compounds, heavy metals and others, and their leaching potential. At the Assal 3 drilling, where a scaling test was carried out in 1990 (Virkir-Orkint, 1990), the precipitates produced were containing significant amounts of galena (PbS) and sphalerite (ZnS). The amount of precipitates to expect is difficult to estimate. The experience of the test carried out in the Assal 3 drilling shows that the quantity can be of few tons per well.

- Treatment residues: if one select for the treatment of the geothermal fluids and / or the fluids of drilling, the volume of residues to expect can be near 300 tons. The main pollutants to expect in the sludge from the treatment plant are heavy metals, which are ecotoxic.

The drilling contractor must prepare a Hazardous Materials Storage, Disposal, and Spill Containment Plan and define hazardous materials storage area. Waste treatment shall include sludge dewatering. Assuming that the waste contains heavy metals in the form of sulphide or hydroxide as main dangerous components, the stabilized waste can be disposed of in a landfill, if it is protected against rainwater. Given the low rainfall in Djibouti, the risk of mobilization of heavy metals is generally considered low.

The decision on the final disposal of hazardous waste must be taken by the Djiboutian authorities. The main options are landfill or export. Since a controlled landfill does not exist in Djibouti to date, the export of small quantities of potentially hazardous waste is probably the preferred option.

The mitigation measures are:

- Geothermal fluids will be regularly tested to define the water quality of the geothermal aquifer and identify the presence of radiological elements such as Radium 226/228 (combined), raw Alpha (adjusted) and Uranium.

- If the samples exceed the toxicity standards, the sludge and geothermal spoils will be removed from the site and transported to a treatment unit that accepts hazardous waste. This unit should be identified by the national authorities ideally before drilling activities start.

- All seepage wells that contain drill cuttings or that encase the perimeter downstream of infiltration wells with haystacks or an equivalent to prevent off-site transportation by wind.

- Workers will be informed of water quality results and the potential health risks associated with constituent levels in the fluid. The landfill must be managed to minimize worker exposure.

- The temporary treatment installations as well as the pipes for the discharge of the geothermal fluids produced during the tests are to be dismantled after the completion of the work.

Hazardous products such as oils, fuels and Hydraulic fluids shall be managed and stored to prevent any water or soil contamination. Workers shall be trained to monitor for spills or leaks of hazardous materials and implement containment and cleanup procedures, where needed.

4.3.3 Solid Waste and wastewater Management

Solid waste, wastewater and used oils will be generated at the drilling site during the construction and testing phase. The Contractor shall prepare a solid waste management plan including methods for minimizing waste or recycling. The amount of solid waste expected is estimated at 0.25 t per day and that

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of wastewater at 5 m³ per day. Measures to protect against the risk of contamination of water and soil are as follows:

- Site waste collection, transport and disposal on a designated landfill. - Latrines are available on site for male and female workers and are kept in a clean condition and

meet Djibouti requirements for disposal of wastewater.

4.3.4 Occupational Health and Safety Risk Management

In addition to exceptional accidents (pipeline rupture, well eruptions, volcanic eruptions, earthquakes, etc.), the health and safety problems specific to geothermal projects may relate to the exposure of workers to gases from geothermal reservoir, heat, and noise.

After the completion of technical studies and the selection of the drilling methods to be used, the Drilling Consultant will carry out a General Health and Safety Plan (GHSP) before the work can start.

The function of the GHSP is to highlight the general risks associated with the site. It includes a detailed risk analysis and defines safety and health measures, including aspects related to drilling rigs, external contractors, work equipment, personal protective equipment, noise, explosives, vehicles , at work and overhead traffic, asbestos, ionizing radiation, electricity, protection against corrosion, protection against explosions, means of escape and rescue, safety, drill program, installation and dismantling, casing and general site safety.

Exposure to gases

With regard to the risk of exposure to dangerous concentrations of hydrogen sulphide, it is necessary to consider the following measures:

- Establish a continuous monitoring and warning system. In case the H2S concentration exceeds the WHO guideline value of 10 ppm, the drilling or test should be stopped.

- Development of an emergency response plan for the accidental release of hydrogen sulphide covering all necessary aspects, from evacuation to the resumption of normal operations.

- In areas with a high risk of exposure, installation of hydrogen sulphide detectors or distribution of personal detectors and installation of self-contained breathing apparatus.

- Where appropriate, the installation of adequate ventilation devices in the installations in order to avoid accumulations of hydrogen sulphide.

- Distribution to workers of a form or any other means of information on the chemical composition of the liquid and gaseous phases explaining the potential risks to health and safety.

Exposure to heat

Accidental heat exposures may occur during drilling, well eruptions or malfunctions of the containment and vapor transport devices. Recommendations for preventing heat exposure include the following:

- reduce working time on high temperature environments and access to drinking water points, - install protective surfaces in areas where workers work near hot equipment, including pipes, - use of appropriate personal protective equipment, in particular gloves and insulated shoes, - Apply appropriate safety procedures during drilling.

Exposure to noise

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The noise is mainly caused by the drilling of the wells and the evictions of steam. The noise level may temporarily exceed 100 dB (A) during some drilling and steam expulsion operations. Workers working in the drilling area must use personal protective equipment such as ear muffs if the sound level exceeds 85 dB (A).

Well eruption

The Drilling Consultant must cover these risks by developing an Emergency Response Plan. This plan must specify the following measures:

- Develop control measures for eruption risks: use of well’s shutter block, storage of equipment to extinguish the eruption (water, barite),

- Develop personal security measures, - Develop other emergency measures, - The personnel working on the drilling site must be trained on the measures to be taken.

Volcanic eruptions and earthquakes

The following mitigation measures must be taken:

- Develop an evacuation plan, - Develop emergency measures, - Training of staff on risks and measures to be taken.

The GHSP must be included in the bidding documents for the drilling contractor.

Temporary abandonment

In case of temporary abandonment of the site, the following measures should be considered:

- Set in place of a safety shutter to reduce the risk of eruptions, - regular monitoring of the temporarily abandoned well, - Construction of a fence around the wells to prevent unauthorized access of people or animals.

Temporary abandonment can only be achieved to the extent that the reserve pits are in a correct status with permeable layers properly isolated. The duration of temporary abandonment must be agreed with the competent authorities.

Definitive abandonment

In the event that a well is found to be unproductive or the risk of an eruption is too high, the geothermal well must be abandoned permanently. Products intended for the insulation of permeable layers must occupy the entire initially drilled section of the well. After the well closure is completed, a closure file must be prepared by the Drilling Consultant, describing in a complete and accurate manner the well status including all details of the closure process. After completion of the work, the drilling site must be rehabilitated.

4.4 Socio-economic measures

4.4.1. Compensation for restricting access to transhumance areas and tourist tracks

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A new trail was developed following the recommendations by the local population, bypassing the existing drilling infrastructure. In addition, transhumant livestock flocks to the Fialé site, the Lava Lake and the Ardoukoba Volcano remained open. The installation of seawater supply pipelines will require the search for a similar alternative trail.

Indicative sign posts of the new trail and of the constructed infrastructure are required; explanatory and informational signs posts as well as a detailed site plan of activities will have to be posted prior to the commencement of drilling activities.

In addition, the platforms and storage area must be secured with fences to avoid any risk of accident, theft and interaction with pastoralists and their livestock.

The specific ESMP prepared by the drilling contractor must specify the mitigation measures, if necessary.

4.4.2. Establishment of a "chance find" procedure for cultural monuments

There are no historical sites or cultural monuments in the project area (access road, drilling area). However, when a change is made to the current layout of the access road, when choosing the quarry, etc., a "chance find" procedure is suggested. An inspection of the sites planned by an expert in archeology CERD must be done before the start of construction work. In the case of a fortuitous discovery during the works, the work must be interrupted and an archaeological expert must be called.

4.4.3. Complementary initiatives

As part of the drilling project, the PMU will work with a local women's and Youth organizations NGO for:

- Support of women's and youth associations, with a registration license from the Ministry of Internal Affairs. Responsible stakeholders: MI, ADDS, UNFD. No cost.

- Organize some training for women's and youth associations on income-generating activities carried out by an NGO. 15 days, 2 facilitators, 7,500 USD.

- Worker awareness program on sexually transmitted diseases, carried out by an NGO (5 days, 3 facilitators = 6,000 USD, including materials and transport costs), to be specified when establishing the specific ESMP (changes according to the number workers).

A revolving fund for the women and youth associations will provide considerable support to local communities in the project area. The PMU will accompany the program with training in "business planning" and management of reimbursements, strengthening the capacities of the association Women association for art crafts production and of young men in fishing activities, as these activities have been identified as being able to generate a consequent socio-economic impact. The suggestion for the endowment of this fund is 2,666,000 DJF / year (15,000 USD).

5. Follow-up program

5.1. Planning phase (before works):

- The PMU must ensure that the technical solution proposed by the drilling consultant complies with environmental and social standards. A detailed ESMP, a GHSP, an EPP and a Solid Waste Management Plan must be developed and validated.

- Starting of the socio-economic support projects implementation for the local population.

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5.2. Preparatory phase

- Monitoring compliance of health and safety standards and measures - Consultation with the local population to check if the problem of the transhumance corridor and

the tourist track has been solved - Consultation with the population of villages in the Assal area (Daba le Gahar, Laïta, Carrefour) and

local authorities, traditional institutions and women / men associations to determine whether mitigation measures have been put in place.

5.3. Drilling phase

- Control the best technology performance, implementation of environmental precautions (work, storage of chemical substances, treatment of drilling mud and geothermal fluids, storage of materials, etc.), Control the compliance of work safety measures: noise, heat, geothermal gas emissions, etc.

- Regular analysis of the chemical composition of the gases emitted - Quality control of fluids in the event of discharge of fluids resulting from treatment of drilling mud - Analysis of generated waste (cuttings) to define the evacuation route - Visual inspection of the drilling site and storage and / or treatment facilities. - In case of temporary or permanent abandonment of drilling, control of drilling protection

measures.

5.4. Testing phase

- Control the compliance of work safety measures: noise, heat, geothermal gas emissions, - Analysis of the geothermal fluids quality before the beginning of the tests, - Regular visual inspection of treatment facilities, pipes, etc. - Regular control of the treated fluids quality before discharge (if applicable), - Regular analysis of the chemical composition of the gases emitted, - Analysis of generated waste (precipitates, geothermal fluid treatment residues) to define the

disposal route, - Consult the population involved to verify whether mitigation measures and accompanying

measures have actually been implemented and whether the implementation process has been transparent.

5.5. Completion phase

- Control of the restoration to the initial status (quarry, drilling, etc.), - Project evaluation, - Planning of the following steps.

6. Institutional arrangements and capacity building needs

The Project Management Unit will be composed of: (i) a project director (international consultant), (ii) a local project coordinator, (iii) a local project coordinator, (iv)an environmental expert, (v) a socio-economic expert, (vi) a Health and Safety (EHS) expert, (vii) an experienced accountant, and (viii) a secretary.

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The PMU will be directly attached to the Ministry of Energy and Water for Natural Resources (MEERN) and should be considered as an autonomous unit in charge of the planning, execution and monitoring of project activities.

The PMU will act under the supervision of a Steering Committee (SC) whose mission is to guide and coordinate activities. The CP is chaired by MEERN and composed of representatives of the following institutions: (i) Ministry of Energy and Water, Natural Resources Officer (MEERN); (ii) Ministry of Economy and Finance in charge of Industry and Planning (MEFIP); (iii) Ministry of Higher Education and Research (MESR), represented by the Center for Studies and Research of Djibouti (CERD); (iv) Ministry of Urban Planning, Housing and Environment (MHUE); (v) Ministry of Transport and Equipment (MTE); (vi) Ministry of the Interior (MI); (vii) Electricity of Djibouti (EDD).

The project is under the responsibility of the PMU, which is in charge of the technical supervision, the Ministry of Economy and Finance in charge of Industry and Planning (MEFIP) providing administrative and financial supervision.

The Scientific and Technical Council (S & T Council) was created by MEERN. It is composed of international geothermal experts who will be asked to give advice on major decisions concerning the project in the scientific field (priority sites for developing geothermal energy in Djibouti, complementary exploration strategy, choice of drilling sites, advice on types of drilling, test procedures, interpretation of results ...).

The company in charge of drilling and conducting tests will be responsible for implementing the project's ESMP and the General Environment, Health and Safety Plan. The implementation of the ESMP will need to be monitored and evaluated by the PMU and periodic monitoring reports will be sent to the donor funds (the African Development Bank and the World Bank).

The drilling consultant recruited by the PMU will at the beginning of its mission, organize training for the PMU and its national partners on the project environmental and social impacts and mitigation measures, as well as and on the monitoring and evaluation tools used to measure progress in their implementation.

7. Public Consultations and Disclosure Requirements

Stakeholders were identified through review of previous consultation files and consultations with donors, EDD and CERD. The following paragraphs summarize the consultations held since 2012 to date. Future approach for consultation with stakeholders in the preparatory phase and in the project implementation phase will be based on the following activities:

- Regular information of the local population on the progress of the project - Implementation of a grievance / complaint resolution mechanism, definition of a manager for any

complaints. It must be explained that newly installed properties at the planned drilling locations will not be rewarded.

- Periodic consultations with stakeholders at national and local level - Media information - Consultation with other economic actors (Saltinvest) - Display of a detailed map of the activities - and consultation with local population and local administrative authorities.

7.1 Previous Consultations

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A meeting was held with the local population on January 8, 2012 in the village of Daba Gachar, the nearest area inhabited at the proposed geothermal drilling site. Fifteen to twenty people attended the meeting, including representatives of the different social groups in the region, five members of the technical team, the Ministry of Energy and ESD, and three members of the consultant team. The discussion focused on the project's potential impacts on the population in terms of socio-economic and local development priorities for the region.

Representatives of the local population were also interviewed individually during three additional visits to the area in January and February 2012.

A public consultation workshop, organized by the PMU, was held on May 12, 2012 to discuss the preliminary ESIA. In total, there were around 50 representatives from different stakeholders. Most of the participants' comments focused on the potential benefits of the project for the local population. It was pointed out by representatives of the local population that the project needs to make some improvements, for example in the area of health and drinking water supply. The expectations of the population regarding the creation of jobs in the project were discussed.

7.2 Consultations under this ESMP

Consultations by the Agency and Public Awareness include: (i) Meetings with MHUEAT on October 25, 2015; (ii) Meeting with AfDB Environmental Specialists and the World Bank on October 25, 2015; (iii) Interview with a member of the local community, October 27, 2015; (iv) Meetings with representatives of the following Djibouti ministries: December 12th and 13th, 2015; (v) Ministry of Energy and Natural Resources; (vi) Ministry of the Interior; (vii) Ministry of Transport; (viii) Ministry for the Promotion of Women and the Family; (ix) Ministry of Agriculture and Fisheries; (x) Ministry of Higher Education and Research; (xi) Meeting with the Tadjoura Regional Administration, the chiefs and elders of the local population on December 13, 2015.

Additional meetings were held in 2016 with entities that were not available to answer in October and December 2015.

Public concerns and recommendations for mitigation were identified during the consultation efforts. Meeting notes are included in the PVs as annexes to the ESMP. They concern: (i) the availability of water for the project and the use of water; (ii) the protection of fish in Ghoubbet Bay; (iii) the availability of water for the local population; (iv) Education for the local population; (v) health care for the local population; (vi) Employment for women and the appointment of women as mediators for project claims; (vii) Employment for the local population and workers in the Tadjourah region; (viii) Protection of the transhumance corridor (east of the project); (ix) Capacity building and training for Djibouti workers; (x) The project schedule and the need for low-cost energy in Djibouti; (xi) Exposure of workers to heat; (xii) The cumulative effects of the reconstruction of the RN9 road, the construction of a cross between the port of Tadjourah and Ethiopia, the construction of the port at Ghoubet, the salt project at Lake Assal, and the development project wind energy at Lake Assal; (xiii) Areas of biodiversity and important birds protection; (xiv) Protection of Assal Lake water quality and protected area; (xv) Water Management.

The public concerns listed above were discussed during the design phase of the project and the ESMP. The project was designed to prevent development in the transhumance corridor and to avoid discharges

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into Ghoubbet or Lac Assal Bay. The design also includes the implementation of the mitigation measures defined in the ESMP. These measurements are all addressed in that document.

Project implementation will require capacity building in the form of staff training, acquisition of monitoring and testing equipment, and use of monitoring and tracking tools.

Mechanism of grievances and complaints collection and treatment

The PMU EHS expert will be responsible for activating a project toll free telephone and an e-mail address for local residents and community members to contact if they have grief or complaints about the project. The EHS expert will act as the contact person for the project's grievances resolution. EHS contract agents will also act as focal points for local residents who raise claims on the project site. If the complaints are expressed within the site itself, the designated EHS agent is responsible for informing the PMU EHS expert within 48 hours of receipt. The PMU EHS expert is responsible for examining grievances and summoning project workers to make the appropriate changes in their work. The contractor must take reasonable steps to respond to grievances in accordance with the local regulations in force, etc., of this ESMP.

The ESMP was approved by the Ministry of the Environment of Djibouti on April 27, 2016.

The summary of the project's ESMP is posted on the African Development Bank website at least 30 days prior to the approval of the additional funding by the ADB Board of Directors.

8. Cost estimates

All costs of mitigation measures should be included in the total project budget. These mitigation measures will be specified in the drilling contractor's bid. The total cost of the ESMP is estimated at 555,200 USD including 385,000 USD for the geothermal fluid treatment plant, 120,000 USD for the desalination plant, 10,000 USD for the training and 15,000 USD for the revolving funds.

9. Timeline for implementation and reporting

The project will report on the progress of the environmental and social component of the project through an environmental and social monitoring report that will be sent quarterly to the Bank.

The GCC should prepare and submit a quarterly compliance report to the PMU and donors (AfDB and the World Bank) to justify the construction and compliance activities achieved during this period, and to follow the resolution of all problems that may have occurred. The GCC will use daily and monthly compliance checklists prepared by construction contractors to develop the quarterly report.

10. Conclusion

According to the environmental and social analysis of the project site for each environment (physical, biological and human) and by project phase, it is clear that this project will have negative potential impacts on the environment and the social environment. These impacts are of low to medium importance. The strict application of the Environmental and Social Management Plan (ESMP) will help to mitigate and/or offset these potential impacts. Indeed, depending on the nature of the project activities, this ESMP recommends specific measures for each identified impact. This ESMP defines the roles and responsibilities for the implementation and capacity building of the relevant actors. On this basis the project received environmental and social approval from the Ministry of the Environment on April 27, 2016.

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11. References and Contacts

- Panorama (2016). Geothermal Exploration Project in Caldera Fialé. Report of the Environmental and Social

- Monographie Nationale de la Diversité Biologique, 2000 - Le site de Dankalelo, Ghoubbet al Kharab, République de Djibouti : Annales d’Ethiopie 2002, vol

XXIII - Djibouti Bureau of statistics

11.2 Contacts

For EDD

1. Mohamed CHAARI project coordinator chaari3256@gmail.com

2. Mohamed Ahmed Djibril project environmentalist schouneh@hotmail.com/med.djibril@yahoo.fr

For the AfDB

1. Richard Humphrey NDWIGA Division Manager RDGE.1 H.NDWIGA-RICHARD@afdb.org

2. Modeste LAWAKILEA KINANE Environmentalist SNSC M.KINANE@AFDB.ORG