“Biofuels in Africa: Opportunities and Risks in the International context”

Presented to Glopolis o.p.s

By: Francis Njoka - Kenya

njokanaam@yahoo.comVenue:

Institute of International Relations, Nerudova 3, Prague 1

Prague - 13th Mar, 2012

Contents

Country - snapshot

Types of Liquid biofuels

Biofuels policies and development in Kenya

Biofuels - Risks and Opportunities

Foreign Direct Investment (FDI) incentives

East Africa briefs

Conclusions

Kenya - Country snapshot

Latitude - 4o35’ N – 4o42’ SLongitude – 34o E – 41o51’ ETime zone - +3Hrs GMTPopulation – 40 million (2011 est.)Language – English/KiswahiliLocal languages – 42Religion – Christians (83%),

Muslims (11.2%)Literacy - 85.1% (2010)Life expectancy – 59.5yrs (2011)Growth rate – 2.9% GDP (ppp) - $1,689 = €1.279 (2010)Inflation – 18.9% (2011)Poverty levels – 46.6% (2007)Energy per capita – 121kWh/yr. (2008)

Kenya’s land resource

Element km2 Million Ha %

Total land area 582,650.0 88.2 100

Water mass 13,400.0 1.3 1.5

Landmass 569,250.0 86.9 98.5

Arable land (16%) 91,080.0 13.9 15.8

Farming (31%) 28,234.8 4.3 4.9

Grazing (30%) 27,324.0 4.2 4.7

Forests (22%) 20,037.6 3.1 *3.5

Game parks, urban centres, markets, homesteads, infrastructure (17%)

15,483.6 2.4 2.7

ASALs (84%) 478,170.0 73.0 82.7

Rangeland, agro-pastoralists, pastoralists, reserves ,etc

   

(potential for irrigation)    

Irrigation potential   0.54 0.6

Max irrigation potential (Tana & Athi basins)

  1 1.1

Economic summaryKey economic sectorsAgriculture: (65% export, 70% informal employment, 18% formal employment, 26% GDP, 25% GDP indirectly); Tourism (12% GDP); Transport & Communication (11% GDP); Manufacturing (10% GDP – cement, milk, cigarettes, beer)Exports Tea – 23.6%, horticulture – 14.5%, manufactured goods – 12%, raw materials – 4.4%, coffee – 3.9%, oil products – 2.2%)

Export zone 1 (46%)Uganda – 12.4%,Tanzania – 8.4%, Egypt – 4.5%, Sudan – 4.3%

Export zone 2 (54%)UK – 10.7%, Netherlands – 6.9%, US – 4.5%, Pakistan – 4.5%, UAE – 4.4%, etc

ImportsOil (23.6%), manufactured goods, Machinery, vehicles, electronics

Import zonesFar East Asia - 42%, EU – 20.4%, Middle East Asia – 14.7%

Trading blocksEAC, COMESA, ECOWAS, SADC, EU

Economic partnersUK, Germany, France, Israel, Netherlands, Switzerland, US, Belgium, Italy, Finland, India, Sweden, Australia

Immerging partnersUS, S. Africa, Saudi Arabia, UAE, Iran, Japan, Singapore, China

FDIsAustralia, Israel, UK, India, China

For year 2010

The Energy sector

Primary energyo Biomass – 68%o Petroleum – 22%o Electricity* – 9%o Others – 1%

Rural energy mix Woodfuel –89% Charcoal – 34% Kerosene – 94% Nat-gas – 1.8% Electricity – 4% Solar – 1% Biogas Candles

Urban energy mix Woodfuel – 7% Charcoal – 82% Kerosene - 89% Nat-gas – 23% Electricity – 51% Candles

CapacityoInstalled – 1,647MWoNominal – 1,433MWoPeak – 1,191MW

Electricity Accesso National – 18%o Urban – 51%o Rural – 6%

Electricity Mix.o Hydro – 57%o Thermal – 31.7%o Geothermal – 11%o Wind – 0.3%o Emergency – 286MW

Key Stakeholders in Energy sector

Ministry of Energy (MoE) – In charge of the entire energy sectorEnergy Regulatory Commission (ERC) – Body under the MoE

responsible for energy regulation, licensing, permits, protection of investors and customers

Kenya Electricity Generating Company (KENGEN) – Responsible for electricity generation together with IPPs.

Geothermal Development Company (GDC) – Responsible for the development of the geothermal energy sector.

Kenya Electricity Transmission Company (KETRACO) – Responsible for the development of the grid electricity distribution system

Kenya Electricity and Lighting Company (KPLC) – Responsible for electricity connection to customers throughout the country.

Rural Electrification Authority (REA) – Responsible for the improvement of access to electricity in rural areas.

Renewable energy

Commercial level oHydro Power – 757MWoGeothermal – 165MWoWind – 5.1MWoBiomass (sugar bagasse) – 26MW

Domestic leveloSmall hydro – Mini-grid installationsoSolar PV – over 40 companies, over 220,000 SHS installed

-REA installing off-grid units in schools and other centresoSolar Thermal – over 140,000m2 - common in upmarket

residentialsoBiogas – over 3,000 domestic size units installed o Improved cook-stoves – Numerous Institutional and domestic oBio-ethanol/-diesel - stoves, lanterns, stationary engines

Biomass energy resource - overview

Waste-based Exploited – animal manures (household biogas), molasses

(ethanol), sugar bagasse* (cogeneration)

Un-used – Sisal*, coffee, tea, municipal wastes, rice husks, sugar bagasse*, horticultural wastes, wheat straws, molasses*, market wastes, saw dust, abattoir wastes.

Plant-based Exploited - fuelwood and charcoal extensively used Un-used* - Prosopis Juliflora (ironwood/mesquite), water

hyacinths, sweet sorghum, cassava and other biofuels.

* = marginally used currently

BiogasoSmall domestic biogas units ranging from 3-15m3 have been

promoted since 1957.oFavourable substitute to fuelwood and charcoal oOver 3000 units exist, mainly running on animal manuresoKey players are MoE, GIZ, KENFAB, ABC-K, Universities and

private companiesoUNIDO (abattoir wastes) and MoE (human wastes) promoting

medium scale systems (15-50kW)oKilifi plantations runs a 150kW biogas plant on sisal & cow wastes

CogenerationoAnnual sugar bagasse production is over 1.8million tonnesoMumias, one of the 9 sugar companies has a 32MW capacity

bagasse cogeneration unito26MW of the generated electricity is fed to the grid

Bio-ethanol

oBioethanol is produced from sugar molasses and used in beverage, biochemical, pharmaceutical, chemical industries and hospitals.

oSpectra International (SIL) and Agro-Chemical & Food Company Ltd (ACFC) are the key players producing 22million and 18million litres respectively per year (2008)

oAn E1O pilot is to start in Kisumu, Eldoret and NakuruoPlans are underway to produce bioethanol from sweet sorghum

and cassava.oPAC (ITDG) is conducting field trials on bioethanol stoves

Biomass poweroA company by the name Tower power is almost through with

feasibility studies for 2No., 11.5MW thermal power plants to run on Prosopis Juliflora (mesquite / ironwood)

oVast plantations of this invasive plant, about 200,000ha are found in Baringo, Garissa and Tana river basin.

Biodiesel o It is mainly produced from Jatropha, castor, croton and yellow

oreander.oMost of the main plants existed before consideration as fuel crops

and several pilot projects have been established in different areas in the country with over 4.2 million Jatropha seedlings distributed to small/large scale farmers.

oKey players in jatropha include; Vanilla Development Foundation (1.19 million), Green Africa Foundation (3 million), Magadi Soda Company (10ha), GEF etc.

Main types of Liquid biofuels

Bio-diesel based Bio-ethanol based

Jatropha Carcus Croton megalocarpas Yellow Oleander (Thevetia Peruviana) Castor oil Cotton seed animal tallow

*Amaranthus, peanut, coconut oil, sunflower, oil palm, cocoanut, macadamia

Sugar molasses Sweet sorghum

*Cassava, beet root, corn, sugarcane juice, potatoes, millet

Biofuels policies and development in Kenya

• Encourage wider adoption of renewable energy technologies, thereby enhancing their role in the country‘s energy supply matrix especially in isolated applications.

• Recognizes the potential for production of biodiesel from locally grown crops

• Need to set aside land for the production of energy crops • Formulate strategies to optimize land use and to harmonize the

existing land use policy with the energy policy• Mobilization of resources for research and development to

facilitate biofuels introduction as a motor blend in the medium term

National Energy Policy (Sessional Paper No. 4 of 2004) -Ministry of Energy, 2004

Energy Act, 2006 - Government of Kenya, 2006.

Most relevant legislation operationalized in July 2007 It encourages enhancement of incentives to the private sector It allows duty free importation of energy. It empowers the Minister to promote the development and use of

RE technologies including biodiesel and bioethanol.

Established the Energy Regulatory Commission (ERC) responsible for regulating the production, distribution, supply and use of renewable and other forms of energy by;

o Protecting the interests of consumers, investors and other stakeholder interests.

o Monitoring and ensuring fair competition. o Issue licenses and permits for all undertakings and activities in the energy

sector o Formulates, enforces and reviews environmental, health, safety and quality

standards for the energy sector. o Enforces and reviews regulations, codes and standards.

Feed-in-Tariffs (FiTs) for REs (2008)

RE source Capacity (MW)

Firm power $ (€)/kWh

Non-firm power $ (€)/kWh

Biomass 0 - 40 0.07 (0.053) 0.045 (0.034)

Wind 0 - 50 0.09 (0.068) 0.09 (0.068)

SHP 0.5 - 0.99 0.12 (0.091) 0.10 (0.076)

1 - 5 0.10 (0.076) 0.08 (0.061)

5.1 - 10 0.08 (0.061) 0.06 (0.046)

(Hydro) For comparison - 0.027 (0.021)2008

1 Mini-hydro (Tea factory) project already clearedOther proposals under review - Biomass (Tower power)

This has the objectives of;

i. Increasing security of energy supply by reducing vulnerability from dependence on imported fossil fuels (a 5% reduction in imported diesel by year 2012 through substitutions with biodiesel)

ii. To diversify rural energy sources by promoting substitution of kerosene with biodiesel - (reduce dependence on kerosene from 76.4% in 2005/06 to 50% by 2012)

iii. To contribute to the efforts of addressing global warming through substitution of petroleum fuels. The biodiesel industry is expected to contribute to a 6% reduction of poverty incidence by 2012.

Draft policy on strategy for the development of Bio-diesel industry in Kenya (2008-2012)

iv. To contribute to poverty alleviation through diversification of income sources. (through rural agricultural mobilization, especially in the marginal semi-arid areas, bio-diesel industry can increase household income levels by 30% by 2012.

Kenya Biodiesel Association (KBDA) is established to bring together all major players in the supply chain, namely producers of planting materials, feedstock producers, processors, marketers and distributors, and large consumers

Blending – B5 by 2012 and B10 by 2020

NB: Foreign Investors recommended to come in as strategic partners to existing local Groups. Key is the establishment of markets

Draft Bioethanol Strategy 2009-2012

It has the following objectives;

To fast track development of the bioethanol energy resourceTo reduce the import bill for petroleum products. (a 10% reduction in the importation of gasoline can be realised by 2010)To achieve blending ratio of E-10 by December 31st 2010To diversify the sugar industry base and strengthen the economic base of sugar factories To enhance clean energy application in rural households in order to reduce pollution levelsTo contribute to poverty alleviation and food securityTo contribute to the reduction of global warming through substitution of petroleum fuels with bioethanol.

Biofuels opportunities and Risks

The Risks

These are ideally huge untested experimentsPoised to introduce intensive farming methodsCause unplanned industrial developmentsUse of fertilizer, insecticides, pesticides will lead to environmental

pollutionMechanisation leads to displacement of people and cause loss of

livelihoodThe net terrestrial CO2 storage is lost with the introduction of

biofuelsBiodiversity and environmental sustainability is lost with

monocultures

Large scale commercial projects

The EU’s or US policies have seen foreign companies acquire huge trucks of land for biofuels impacting on land in EA and Africa in General

Majority of EU countries are in short of biofuels land yet they must fulfil their policy obligations

Africa is perceived as a continent with available land, cheap labour and highly suitable climate.

This land grabbing has little regard for the rural poor, food production, family cohesion, and traditional land values.

Local people’s way of life; forestry, pastoralism, bee keeping, tourism is being compromised

Cases of Foreign companies structuring their project financing or tax breaks to evade local taxes

Climate change market driven systems & FDI

Company Product Land area (Ha) Host country

Sun biofuels (UK) Jatropha 5,500 TanzaniaCAMS group (UK) jatropha 45,000 TanzaniaKenya Jatropha Energy (Italian) Jatropha *50,000

(10,000)Kenya

Benfield (Canadian) Jatropha *64,000(10,000)

Kenya

Agro-biotech (China), UoN, CIAT et al

Cassava 40,000 Kenya

Flora EcoPower (Germany) biofuels 13,000 EthiopiaSCOUL (India) bioethanol 7,100 UgandaChina Oil palm 2,800,000 DRCChina Jatropha 2,000,000 ZambiaSaudi Arabia Oil palm 500,000 DRCTrans4mation Agric-tech (UK) Biofuels 10,000 Nigeria

USA – (17,500 Kenya) – horticulture, UAE – (378,000 Tanzania, 378,000 Sudan) - Corn, alfalfa, wheat, potatoes, beans, Qatar – (40,000 Kenya) – horticulture, Saudi Arabia – (500,000 Tanzania) – food, South Korea – (690,000 Sudan) – Wheat

Leigh Phillips & Mat McDermott

The delta during a rainy season - aerial view

A case of Tana Delta – Dakatcha woodland

Key concernsLoss of biodiversityOver 234 bird species20,000 people to be displacedLoss of pasture, subsistenceHabitat to Clarke’s Weaver

Land ownership (Government trust land, privately owned land and communal land)

Land is one of the most scarce and valuable asset Ownership and access is to-date, a thorny issue and is profoundly

political. Communal land is governed by Trust land Act – entrusts county

councils to hold in trust on behalf of groups of communities or Land (group representative) Act – 3-10 people are elected to represent and be custodians of communal land

The present public land tenure management system in Kenya is fragmented, uncoordinated and non-transparent.

Land transactions are vulnerable to corrupt deals and can result to unending lawsuits, political influence or civil rights group objections.

Land tenure systems & laws

Risk of failure

Most of biofuels such as jatropha, castor, oleander, croton have not been tested especially on marginal lands

Sugar, palm oil may also fail as soils get denuded and water shortages continue to persist

Bankruptcy - Most of investors have pulled out due to lack of funds e.g. In Tanzania, of the 20 companies licensed, only 6-7 are active

Knowledge gaps and climate change

Most of biofuels have not been thoroughly researched especially on viable varieties, production rates under given conditions

East Africa continues to experience frequent droughts and sudden floods exacerbated by climate change problem

Increased vulnerability of women and children

In East Africa, land tenure is predominantly owned by menMen are also in charge of land transactions and associated

with cash crops which biofuels are.With most farmers being small scale, there is a possibility of

losing subsistence where food crops/staple foods may be grown.

This will render women and children to suffer more

Competition with other resources

Less than 3% of Kenya’s land is under forest cover – below the recommended 10% minimum

Kenya also aims at increasing her agricultural productivity by irrigating more of arid and semi-arid regions for food

Kenya is also considered a chronically water scarce country (per capita - 548m3 against recommended 1,000m3)

Biofuels production will of course bring in conflicts with food production, reduce forest cover or encroach on wetlands.

Its production will definitely affect the water resource as rain-fed production is not feasible

It will also use land and may lead to soil degradation eventuallyCommercial production will reduce/eliminate crop and

indigenous biodiversity and fragment ecosystems

The Opportunities

Diversification of rural energy supply mix

Improvement of agricultural returns and rural economies

Value addition of agricultural produce (farm-gate quality)

Improvement of local infrastructure

Reduction on oil imports

Reduction of GHGs from fossil oil emissions

Improvement of the health of women and children (in-door-air)

Child education improvements

Conservation of soils susceptible to erosion

Conservation of the forests and environment

Biofuels investments or commercial production will;

Improve production quality

Improve transfer of technology

Additional investment finance or capital flows

Economic and social development

FDI opportunities in Biofuels

Country Ranking(International)

Ranking(Africa)

Ranking(EA)

Ranking (Low income)

Mauritius 23 1South Africa 35 2Rwanda 45 3 1 1Botswana 54 4Ghana 63 5Namibia 78 6Zambia 84 7Seychelles 103 8Kenya 109 9 2 4Ethiopia 111 10 3 5Uganda 123 12 4 7Tanzania 127 14 5 8Sudan 135 16 6 -Burundi 169 35 7 22Djibuoti 170 8 -Eritrea 180 43 9 30

Doing business report of June 2011 (World bank)

Government incentives – in general An investment allowance is offered on buildings, equipment and

plant machinery Loss carried forward option whereby a company is allowed to

carry forward their loses to future taxable profits VAT waiver for all plants set up and machinery Depreciation of assets based on book value Removal of exchange controls Laws in place against expropriation Rationalized trade licences regime which requires less licences

than before Decontrolled prices

In general, Kenyan policies on foreign investment have been favourable since independence

Membership to MIGA (1988 )

Kenya is signatory to World bank’s Multilateral Investment Guarantee Agency (MIGA) of 1988

Promotes the flow of private foreign investment to developing member countries.

MIGA offers political risk insurance coverage to eligible investors

MIGA also offers technical assistance programs (through dissemination of information on investment opportunities and business operating conditions, capacity building and investment facilitation activities. supporting the efforts of developing countries to identify and attract investment

Export processing zones (EPZs)

Established in the 1990, there currently are about 42 EPZs in KenyaDue to attractive tax incentives, operating environment, good physical infrastructure and support by EPZA staff - over 80 firms worldwide make the Kenya EPZs their home.

Hydroelectric Projects: ⇒ 15-yr income tax holiday >50 MW ⇒ 10-yr income tax holiday - 20 MW - 49MW ⇒ 7-yr income tax holiday < 20 MW

Geothermal Plants: ⇒ 10-year tax holiday >50 MW ⇒ 7-year tax holiday - 30-49 MW ⇒ 5-year tax holiday - 10-29MW

Renewable Energy Projects: ⇒ 7-year tax break for investors in RE and dividends earned from investments in

domestic energy.

The incentives shall be maintained until 70% of the population is connected to electricity.

Incentives to private investors on RE

New Constitution (2010)

Vision 2030 (2007)

Country’s development blueprint covering the period 2008 - 2030.Aims at making Kenya an industrialized middle-income countryOpens up new investment opportunities including energy

Pillars are; • Economic (prosperity – 10% GDP growth) • Political (issue-based politics – rule of law, rights & freedom for all) • Social (just & cohesive society, social equity, clean & secure

environment)

Presumes a new political dispensation, devolved governance, streamlining judicial system, rule of law and improvement of human dignity

Other Investment Incentives

Exploring CDM possibilities Strategic location of Kenya - The gateway to E. Africa East Africa’s largest economy Stable currency - Kenya shilling (KES) High returns on trade and investment Aggressive economic development Incentives Free enterprise economic policies Highly educated local workforce Expansive regional infrastructure (e.g. LAPSSET)Commitment to public-private partnerships Intellectual property protections Sophisticated fibre optic voice/data infrastructure Diversified economy - Real estate, Mfg, IT, Agri-Biz English is the official business language Access 500 million people in East & Central Africa

Broader Investment opportunities in the Energy sector

Key => Installed capacity – 1,860MW (2013), 2,600MW (2018)- 18% growth

Transformer manufacturingGeothermal development – 165MW (installed) 7000MW (potential)300MW coal power plant – power generation or explorationHydro power – Tana river (Mutonga - 60MW, Grand falls – 140MW)Solar PV – 15% annual growth, 3,000 remote institutions to be

connectedWind energy – Marsabit, Turkana, Ngong, Kinangop and Coast

regionsBiodiesel – 2.7mlts of gasoline & 6.5mlts of diesel per day by 2030

=> 148mlts for E10 and 50mlts for B2 annually by 2030.300-1000MW nuclear power – Private sector (BOOT), 30yrs PPA

East Africa Scenario

Case of TanzaniaLand area – 945,089km2

Latitude – 1o – 12o SouthLongitude - 29o – 41o EastTime zone - +3hrs GMTAdmin capital – DodomaCommercial capital – Dar-Es-SalaamLanguage – Kiswahili, EnglishPopulation – 41million (2010 est)GDP – 58.4 billion (2010)GDP growth – 6.5%GDP per capita – $1,400 (€1.060)Energy per capita – 76kWh/yr. (‘07est)Poverty levels – 36%Inflation – 7.2

Economic summary

About 88,000million Ha – 62% (size of Kenya) of land is arableOnly 10% is cultivatedAgriculture – 80% workforce, 75% export, 28.4% GDP; services 47.6%; and industrial 24%Main crops – coffee, cotton, tea, sisal, tobacco, sugarcane, spices, maize, rice, cashew nutsExports – Gold, coffee, manufactured goods, cashew nuts, cottonExport partners – China 15.6%, India 11%, Japan 6.1%, UAE 5%, Germany 4% (2010) Imports - consumer goods, machinery and transportation equipment, industrial raw materials, crude oil Imports partners: China 17.3%, India 15.4%, South Africa 7.9%, Kenya 7%, UAE 4.7%, Japan 4.2% (2010)

The energy sector Primary energyo Biomass – 90%o Petroleum – 8%o Electricity* – 1.5%o Coal etc – 0.5%

Electricity accesso National – 12%o Urban –?%o Rural – 2%o Grid connection

rate - 50,000ppl/yr

Electricity Mix.o Installed – 1,092MWo Hydro – 561MWo Thermal – 445MWo Cogeneration – 35.8MWo Imports – 13MW

Biofuels statusNo specific biofuels policy although cited in other policiesBiofuels quite advanced in comparison to KE & UG (37 investors)Main biofuels; Bagasse, jatropha, oil palmLand belongs to the Government and can lease out to anyoneInvestment climate very advantageous.Financial incentives such as taxes and duties waivers given for investors.Tanzania Investment Act (1997) grants investors full rights to buy and sell land.FDIs actively encouraged through Tanzanian Investment Centre (facilitating land acquisition and administrative processes)

Case of Uganda

Land area – 241,039km2

Latitude – 4o N, 1o S Longitude - 29o E, 35o ETime zone - +3hrs GMTCapital – KampalaLanguage – English, Kiswahili*Population – 33.4million (2010est)GDP - $42.15 billion (2010)GDP growth – 5.2%GDP per capita – $1,300 (€984,4)Energy per capita – 62kWh/yr (‘07)Poverty levels – 31%

Economic summaryAbout 6,810,000 Ha – 33% of land is under cultivation27.9% is arable and 17.5% is under forest coverService sector - 51.9% GDP, industrial – 26.6% GDP, agriculture – 23.6% GDP, 31% export, 81% workforceNatural resources – copper, cobalt, hydropower, limestone, salt, phosphate and oilMain crops – coffee, tea, tobacco, plantains, cassava, sweet potatoes, bananas, millet, corn, sorghum, beans, and potatoesExports – Coffee, tobacco, tea, fish, textiles, corn, pulses and electricityExport partners – Sudan 15.3%, Kenya 10.2%, Rwanda 8.5%, DRC 7.8%, UAE 7.7% Netherlands 6.4%, Germany 5.4%, Belgium 4.1% (2010)Imports - Petroleum, machinery, vehicles, cereals, iron & steel, medical supplies. Imports partners: Kenya 17.1%, UAE 14.1%, China 8.5%, India 8.2%, S. Africa 6.2%, Japan 5.9%, Germany 4.3% (2010)

The Energy Sector

Primary energyo Biomass – 92%o Petroleum – 6%o Electricity* – 2%

Electricity accesso National – 11%o Urban – 41.2%o Rural – 4%

Electricity Mix.o Hydro – 99.3%o Thermal – 0.7%

Biofuels statusBiofuels not mentioned as possible renewable or alternatives to fossil fuel consumption in Uganda’s policies. The energy policy however, has elements emphasizing the use of environmentally friendly alternative sources of energy that save on forests.Main Biofuels; Jatropha, sugarcane bagasse, oil palm, maizeA land resource and biofuels suitability criteria document has been prepared by National Environmental Management Authority (NEMA) of Uganda.

Food insecurity map

*Famine Early Warning Systems Network - USAID

Conclusion

There exists a great potential for biomass energy and some for

biofuels production too in Africa

Biofuels offer an avenue that could help improve agricultural

productivity, provide clean rural energy and improve local

economies

Policies still wanting - need for synergetic intersectoral redress

and actualization/implementation

The failure by Governments to fast-track biofuels policy

implementation for local consumption exacerbates the risk of land

grabbing by foreign investors.

Unlike the other two East African countries, Kenya exhibits a

complex case for biofuels implementation due to the limited

potential land area available for both food and biofuels

Sustainable solutions for commercial production must NOT;oDisplace indigenous people or prohibit them from access to

other valuable resourcesoGreatly affect local people’s way of life and lifestyles i.e.

limit resource use options in big marginsoEncroach on wetlands, forests and other high biodiversity or

gazetted areasoLead to loss of biodiversity or fragmentation of natural

ecosystemsoBlock wildlife migratory routes etc.oFocus on foreign markets but the local markets

Thank you for your Attention!!