TERMS OF REFERANCE (TOR)

TO CONDUCT ENVIRONMENTAL AND SOCIAL IMPACT

ASSESSMENT
FOR
DAIRY FARM AND MILK PROCESSING PLANT
PROJECT OWNER: GIZACHO TEMESGEN SISAY
LOCATION:EAST SHAWA ZONE BISHOFTU CITY

SUBMITTED TO OROMIA ENVIRONMENTAL PROTECTION

AUTHORITY

CONSULTAT: Bright star management and environmental consultancy

plc

Tesdegefa@gmail.com
+251922156248

Oct, 2023
Bishoftu, Ethiopia

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 Table of contents

SHEGAR, OROMIA............................................................................................................i
table of contents...................................................................................................................ii
1.0 INTRODUCTION.........................................................................................................1
1.1. General Overview.....................................................................................................1
2 Objective of the Terms of reference.............................................................................1
3. Project Description.........................................................................................................2
4. Project location................................................................................................................2
5 Time Schedule..................................................................................................................3
6. Sources of Data................................................................................................................3

List of table
Table 1: work schedules......................................................................................................3
Table 2: checklist for screening of impacts.........................................................................4

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1.0 INTRODUCTION

1.1. General Overview

The firm needs to be engaged in Dairy Farm and Milk Processing project which is
located in Ormoa Regional State, Bishoftu town.
The project is owned by Gizacho Sisay The total initial capital of project is 30.0million
Eth birr and it will create unemployment opportunities for a total of 260 workers on a
land area of 3000m2.
The owner of the project has a cumulative experience on Agro-processing business and
undertaking different business activities for many years in Ethiopia and Abroad. During
his stay in business the owners of this company has accumulated diversified skills and
has also adopted working with many people and customers. Hence, it is this accumulated
experience which initiates him to construct milk product and milk processing plant.
In relation to any project implementation, growing awareness of environmental problems
during recent years has led to increased demand to analysis the environmental impacts of
a newly established project specially the potential risks and problems to the health of the
society as well as to the environment. Besides, assessing environmental issues also
become a critical success factor for business.
As milk product and milk processing project is trying to be an environmentally friendly
company, and wants to help prevent pollution by holistic design of implementation of
technological dairy farm and milk processing project. The project of dairy farm and milk
processing has requested a full EIA. Therefore, Bright star management and

environmental consultancy plc.Has conducted this Environmental Impact

Assessment for the dairy farm and milk processing project. The EIA report includes the
policy, legal and institutional arrangement of the country and the region, the description
of the existing project environment, identification of major potential environmental
impacts as a result of the diary and milk processing as well as the environmental
management plan of the intended project.

On the other hand, there is much dependence on imported dairy products such as cheese
due to the fact that the quantity, quality and variety of locally produced cheeses do not

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cater to the needs of consumers. Imported cheese, mostly in processed powder form, is
used as an ingredient by many restaurants. Furthermore, imported cheese products are
used to bridge domestic demand and supply gap in cheese consumption.

Realizing the increasing demand and supply gap of value added dairy products such as
pasteurized milk, yogurt and cheese, setting up a Gizacho sisay Dairy Farma and Milk
product Processing Unit is proposed in this prefeasibility study. This project will be
established on owned land with purpose-built plant constructed on modern lines. The
plant would process raw milk into pasteurized milk throughout the year; however, yogurt
and cheese would be produced for 120 and 240 days respectively. The plant will begin
operations with 50% installed capacity utilization and 2.88 million litres of raw milk is to
be processed in year 1. The product mix will be Pasteurized Milk: Yogurt: Cheese in ratio
of 12:8:41. Approximately 1.37 million litres of pasteurized milk, 912,000 Kgs of yogurt
and 47,000 Kgs of cheese will be processed in the first year of production. With 50%
capacity utilization in first year of production and annual increase of 5 %, the project will
be utilizing its capacity for a maximum of 80% i.e. processing of approx.4.61 million
litres in year 10.
The envisaged project will create a job opportunity for about 260 employees on temporal
and permanent base. This will contribute to reduce the number of youth unemployment
which is the bottle neck of the country. It also pays tax for the government as well as
reduces problem of foreign currency.
However, Short-term benefits build up from development projects may significantly
impact on the ability of human and natural ecosystems to meet the needs and aspirations
of the future generations unless proper management and monitoring is undertaken. The
concept of sustainable development envisages development that not only allows the
present generation to meet its developmental and natural needs but also ensure
intergenerational equity through application of precautionary principle. An important
component of sustainable development is the process of assessing the potential
environmental, economic and social impacts of a project prior to its implementation.
Thus, this TOR was prepared by Bright star management and Environmental
Consultancy plc to identify potential impacts, both positive and negative and then to

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propose possible enhancement/mitigation measures for the proposed project, Milk
processing located in Oromia National regional state, Bishoftu Town

2 Objective of the Terms of reference

This ToR was prepared to: define the scope of work for the proposed Dairy Farm and
milk processing project to be established at Bishoftu Town; identify the possible chances
and constraints; indicate time table and finally produce Environmental and Social Impact
Statement to be evaluated by the regulatory body.

3. Project Description
Total investment cost is 80 million birr. The project will create 260 job opportunities in
permanent and temporal basis for local community. The facility is proposed on total area
of about 1 Hek. The project is bordered by :The surrounding land use consists of dairy
farms and milk or dairy processing plants with storage facilities and scattered dwellings
occupied by farmers and farm workers. This includes the access road and associated
infrastructure on the farmlands i.e. 5-6 scattered dwellings that farmers and farmworkers
are occupying as well as the commercial infrastructure i.e. dairy processing and milking
infrastructure on both adjacent properties. The facility is designed to compose
of sheds, this area comprises simply machines installation place, raw materials storing
sheds, products storing sheds, the administration spaces, the sanitary units, and other
essential service rooms. The project will supply more milk processing for domestic and
foreign market.

4. Project location

Gizacho Sisay Dairy Farm nd milk processing project is located in Oromia

national regional state, Bishoftu Town.

5 Time Schedule
The work will be carried out, in the town according to the following schedule.
Table 1: work schedules
S.N Types of activities Number of days required for
activities
1 Screening: Deciding if an ESIA is required 2

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2 Scoping and consideration of alternatives: 2
3 Public consultation 5
3 Collecting data 2
4 Impact Prediction 2
5 Analysis of Mitigation measures 2
4 Synthesizing the ESIA Report 7

6. Sources of Data
primary and secondary data are used for the work. Primary data will be obtained from
project affected communities, district administration and Bishoftu Town EPA
professionals through consultation and interview. Secondary data sources are obtained
from water supply and sanitation office, urban agriculture office, education office, health
office, trade and industry, planning office, labor and social affair office, urban
beatification and greenery office, District administration, children youth and women
affairs office, and town administration, national and regional laws and proclamations,
CSA, and others.
The following methodology is used to collect data:
 Semi- structured interview: this involved holding individual interviews with
the project manager and his coworkers using a pre- prepared interview checklist
and recording the feedback.

 Consultation about the Project: the aim of the consultation with the locally
affected people by the project has a paramount importance to hear and
incorporate the views and opinions of those communities around the area.

 Literature review: this involved the review of all literature and data relevant to
the project. The literature included legislation, data kept by the proponent and
government agencies.

 Site observation: this involves a transect walk across the site and the
neighboring area to get acquainted with the natural environment and also to cross
check issues, arising from the interviews above. Furthermore, field visit will be
undertaken to understand the likely impacts of a development project i.e Dairy
Farm and milk processing Project in this case on the environment around the

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 project site through making transect walking along the intended project site. This
field survey also helped to gather the base line environmental condition of the
area for better prediction and evaluation of the adverse environmental and social
impacts. CONSULTAT: Bright star management and environmental consultancy
plc will identify different areas of attention like noise pollution, air pollution, soil
pollution, surface and ground water pollution and during the project construction
and operation human health and safety impacts.

 SUMMARY OF BUSINESS PLAN OF THE PROJECT

1. Project Name Dairy Farm and Milk processing manufacturing Establishment
Project
2. Project Type Industry
3. Project Promoter The promoter of the project is the owner himself (the investor) and
those of who are benefiting from the Enterprise.
4. Project Promoter Gizacho Sisay
5. Nationality Ethiopian
6. Project Location Oromia Regional State Bishoftu Town

7. Premises Required 3000m2

8. Total investment 30,000,000 (ETB)
Capital
9. Job opportunity Permanent: Skilled 150 and unskilled 20
Temporary: Skilled 90 and unskilled 20
Total: Skilled 80 and Unskilled 50 (In aggregate manpower=260)
10. Production Capacity The production capacity of the project is estimated as 75% in the
first year and 100% starting the second year.
11. Benefit Expected The expected benefit of the project is to give different milk product
and milk processing
12. Technology to be used The firm will use environment friendly technology which can be
operated by local people.
13. Source of finance Out of the total Br. 30,000,000.00 of the project cost, 30 % (Br.
9,000,000.00) will be financed by the owners while 70 % (Br.
21,000,000.00) will be obtained through loan from bank at an
interest rate of 12%.

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 14. Market Destination The residents of the wereda and the surrounding area
Merchants and drivers
Business community
Different occasional guest
Domestic and foreign tourists and visitors
15. Recommendation The project is economically, financially and socially feasible. For
instance, financially, the project’s IRR is 63.45% which is greater
than discount rate (12%) and NPV is equal to Br. 12,994,064.32.

Table 2: checklist for screening of impacts

Potential for Adverse Impacts

Impacts of the proposed project

Unkn
None

Medi

High
Low

own
um
Soil erosion or flooding concerns (e.g., due to highly
erodible Dairy farm and Milk Processing or steep
gradients)
Number of stream crossings or disturbances
Wet season excavation
Creation of quarry sites or borrow pits
Significant vegetation removal
Wildlife habitats or populations disturbed
Be located within or nearby environmentally Sensitive
areas (e.g. intact natural forests, Wetlands, etc.)?
Cultural or religious sites disturbed
Economic or physical resettlement required
New settlement pressures created
Create solid waste on the sites (including excess fill
materials from grading and excavation activities, scrap
wood and metals, and small concrete spills).
Cause poor water drainage and increase the risk of
water-related diseases such as malaria or Bilharzias?
Cause air pollution? (Fugitive dust, etc.)
Cause contaminated land?
Create Noise and vibration
Aesthetic disruption to the surrounding areas?

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Cause Potential Physical hazards ( Like accident or
injury or illness due to repetitive exposure to
mechanical action or work activity)
Cause and spread communicable disease (poor
sanitation and, sexual transmission and vector-borne
infections)
Cause poor Water Quality and less water Availability
Cause traffic congestion (Traffic accidents, injuries
and fatalities among members of the Community )
Cause flood and gully formation at the outlet or end
point of drainage canals
Possible impact on individual’s property, including
impact on houses, fences and other structures
cause more traffic accidents, since pedestrian walk way
is not properly considered as part of the road design
Affect any air quality standard or contribute substantially to
an existing or projected air quality problems

Expose sensitive receptors to substantial pollutant

concentrations

Create objectionable odors affecting a substantial

number of people

has a substantial adverse effect, either directly or through

habitat modifications, on any species identified as sensitive

Have a substantial adverse effect on any habitat or

other sensitive natural community

Have a substantial adverse effect on protected wetlands

through direct removal, filling, hydrological
interruption, or other means

Interfere substantially with the movement of any native

resident or migratory wildlife species

Conflict with any local policies or ordinances

protecting biological resources, such as a tree
preservation policy or ordinance

Cause a substantial adverse change in the significance of a

historical resource

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Cause a substantial adverse change in the significance of an
Archaeological resource

Directly or indirectly destroy a unique resource or site or

unique geologic feature

Disturb any human remains, including those interred

outside of formal cemeteries

Expose people or structures to potential substantial adverse

effects, including the risk of loss, injury, or death involving

Create a significant hazard to the public or the environment

through the routine transport, use, or disposal of hazardous
materials

Create a significant hazard to the public or the environment

through reasonably foreseeable upset and accident
conditions involving the release of hazardous materials into
the environment

Emit hazardous emissions or handle hazardous or acutely

hazardous materials, substances, or waste within the reach of
an existing or public service (schools, hospital, churches)

Expose people or structures to a significant risk or loss,

injury or death

Affect any water quality standards or waste discharge

requirements

Substantially deplete groundwater supplies or interfere

substantially with groundwater recharge

Substantially alter the existing drainage pattern of the site or

area, including through the alteration of the course of a
stream or river, in a manner which would result in
substantial erosion or siltation on- or off-site

Substantially alter the existing drainage pattern of the

site or area, including through the alteration of the
course of a stream or river, or substantially increase the
rate or amount of surface runoff in a manner which
would result in flooding on- or off-site

Physically divide an established community

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Conflict with any applicable land use plan, policy, or
regulation of an agency with jurisdiction over the
project

Conflict with any applicable habitat conservation plan

or natural community conservation plan

Result in the loss of availability of a known mineral

resource that would be of value to the region and the
residents

Result in the loss of availability of a locally-important

mineral resource recovery site delineated on a local
general plan, specific plan or other land use plan

Exposure of persons to or generation of noise levels in

excess of standards established

A substantial temporary or periodic increase in ambient

noise levels in the project vicinity above levels existing
without the project

Induce substantial population growth in an area, either

directly (for example, by processing new homes and
businesses) or indirectly (for example, through extension of
roads or other infrastructure

numbers of existing housing necessitating the construction

of replacement housing elsewhere

Displace substantial numbers of people, necessitating

the construction of replacement housing elsewhere

the project increase the use of existing neighborhood

and regional parks or other recreational facilities such
that substantial physical deterioration of the facility
would occur or be accelerated

the project include recreational facilities or require the

construction or expansion of recreational facilities
which might have been an adverse physical effect on
the environment

Cause an increase in traffic which is substantial in relation to

the existing traffic load and capacity of the street system.

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Affect human health directly or indirectly

Have high effluent discharge

High Solid waste generation

Have impact on existing vegetation

impact on the existing faunas

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