applied. (This rate is the sum of the fixed rate at the time of the loan approval of 1.

03% (as of January

2016); a premium prior to agreement of the export contract of 0.20%; and a risk premium of 2.49%.)

Borrowing period: 4 years of a moratorium, and a subsequent 12 years of principal equal repayment

(3) Borrowing amount calculation

The amount of borrowing will reach a peak with the following timing, and principal equal repayment
will start in 2021.
Case 1: JPY138,390 million in 2020, principal equal repayment: JPY11,533 million
Case 2: JPY128,198 million in 2020, principal equal repayment: JPY10,683 million

(4) Repayment plan

Revenues from electricity sales under the Project will be allocated for repayment of the principal and
interest. According to the calculation, loans will be repaid completely in 2032.

Chapter 6 Environmental and Social Considerations

6.1 Environmental Impact Assessment (EIA) according to laws and regulations in Nigeria
(1) Summary
Nigeria has the Environment Impact Assessment Act (hereinafter referred to as the "EIA Act"), which
requires any development project possibly having any negative impact on the environment to perform
an environmental assessment. At the same time, the following guidelines are in force in relation to an
environmental impact assessment.
EIA Procedural Guideline (1992)
This regulates the procedures from the project planning to implementation and the procedures for
obtaining EIA approvals.
EIA Guidelines for the Power Sector
The EIA Guidelines were formulated in 2013 especially for the power sector. These will be
applicable to electricity facilities (*) already installed and likely to be installed in future.
power (boiler (steam turbine), reciprocating
engines, combustion turbine, combined cycle and cogeneration), wind power, nuclear power,
transmission line, rural electrification, photovoltaic power, biomass power, tidal power and
geothermal power.

(2) Project Category

The EIA Act stipulates that any development project will be classified into one of the following three
categories in consideration of the nature and degree of its impact on the environment, and other factors.
Category I: Projects in this category will require approval based on a full-scale EIA survey
(corresponding to Category A of the JBIC Guidelines).
Category II: Projects in this category will require approval based on a survey on the IEE level.
Category III: Projects in this category will be approved without an EIA or IEE survey.

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 As for the power sector, the supplement to the EIA Act requires the following projects to perform an
EIA. This Project falls under the category "combined cycle power generation" and must perform an
EIA.
Thermal power generation: 10MW or larger
Hydropower generation: Dams with a height of 15m or higher and the total area of auxiliary
facilities with area 40ha or larger, or the area of a water reservoir of 400ha or larger
Combined cycle power generation
Nuclear power generation

6.2 Underlying principles of environmental considerations in the JBIC Guidelines

(1) Underlying principles
The JBIC Guidelines stipulate that the environmental impact which may be caused by a project must
be assessed and examined from the earliest planning stage possible, and that alternative proposals or
minimization measures to prevent or reduce adverse impact must be examined and incorporated into the
project plan. The guidelines also state that the findings of the examination of environmental and social
considerations must include alternative proposals or mitigation measures and be recorded as separate
documents or as a part of other documents, and that Environmental Impact Assessment (EIA) reports
must be produced for projects such as this Project, which fall under Category A.

(2) Examination of measures

The JBIC Guidelines stipulate that multiple alternative proposals must be examined to prevent or
minimize adverse impact and to choose a better project option in terms of environmental and social
considerations, and that, in the examination of measures, priority is to be given to the prevention of
environmental impact. When this is not possible, minimization and reduction of impact must be
considered next. The guidelines also stipulate that compensation measures must be examined only when
impact cannot be prevented by any of the aforementioned measures. In particular, for projects in
Category A, the guidelines stipulate that appropriate follow-up plans and systems, such as monitoring
plans and environmental management plans, must be prepared; and the costs of implementing such
plans and systems as well as financial methods to fund such costs must be determined.

(3) Environmental considerations in the JBIC Guidelines for construction of a thermal

power plant
Table 6.2-1 lists categories and items on the environmental checklist of the JBIC Guidelines, together
with the results of the preliminary environmental impact forecast and assessment.
Within the anti-pollution measures, the Project is expected to have an especially large impact on air
quality, so that continuous environmental monitoring, introduction of facilities satisfying the emission
gas standards and appropriate maintenance measures are needed. For water quality, waste, noise and
vibration, and odor, continuous monitoring, maintenance and inspections of equipment as well as other
various other measures must also be conducted. As for soil contamination and subsidence, on the other
hand, the actual situation at the site has not been clarified yet, though such information is necessary to

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 forecast the impact of the Project. Therefore, it is necessary to understand the actual state of affairs
through a field survey in future and to build a system to implement and manage appropriate measures.
As for the natural environment, the construction of an additional power plant is expected to have an
impact on the ecosystem and biota in and around the project site. In particular, adverse effects would
increase without any appropriate measures against the pollutant sources cited above. To see the impact
on hydrology, as well as topography and geology, the present state of affairs must be clarified through a
field survey in future.
As for the social environment and other factors, traffic from construction vehicles and construction
work will temporarily have adverse effects including noise and vibration that affects communities near
the project site, as well as the regional economy and infrastructure. However, to again assess these
impacts in detail, the present state of affairs must be clarified through the field survey that covers these
communities. Based on the survey results, countermeasures must be taken to, for example, remove
impediments to economic activities, ease local traffic, and restrict construction time.

Table 6.2-1 Preliminary Environmental Impact Forecast and Assessment Results

Forecast and
assessment
Countermeasures and
Category Check item Reasons for forecast and assessment
Unknown

policies
Small
Large

None

Continuous environmental
An increase in gas emissions monitoring, introduction of
Air quality including NOx will affect the air facilities satisfying emission
quality. gas standards and appropriate
maintenance measures
Continuous environmental
monitoring, introduction of
An increase in effluents will affect the
Water quality facilities satisfying effluent
water quality of the lagoon.
standards and appropriate
maintenance measures
Anti-pollution measures

The construction work will generate Waste disposal measures

Waste
waste. during construction work
The present state of soil Understanding of the present
Soil contamination, present measures state through a field survey,
contamination against soil contamination, etc. are and building of a system to
unknown. manage pollutant resources
Continuous environmental
Construction work and operation of
Noise and monitoring, introduction of
the power plant will cause noise in
vibration facilities to reduce noise and
and around the project site.
restrictions on work time
The present ground condition is Understanding of the present
Subsidence
unknown. state through a field survey
The power plant will emit gases, and Continuous environmental
Odor use ammonia and chlorine, which will monitoring and prevention of
generate odor. leakage through regular

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 Forecast and
assessment
Countermeasures and
Category Check item Reasons for forecast and assessment

Unknown
policies

Small
Large

None
facility inspections
No activity will be taken to affect
Sediment None
sediment.
Protected No protected area exists near the
None
areas project site.
The pollutant resources cited above Continuous environmental
Ecosystem will have an impact on the ecosystem monitoring and various
and biota and biota in and around the Project countermeasures against
site contamination cited above
Natural environment

The impact of an increase in the Understanding of the present

amount of water taken and emitted state through a field survey
Hydrology
between the lagoon and the power and continuous
plant is unknown. environmental monitoring
Topography The present topographical and Understanding of the present
and geology geological conditions are unknown. state through a field survey
Neither removal of any existing
Management
facilities nor management of any
of abandoned None
abandoned site is expected in this
sites
Project.
The site is idle land owned by the
Resettlement Egbin Thermal Power Plant, and no None
resettlement of residents is needed.
Understanding of the present
state including the situations
Traffic from construction vehicles of communities near the
Living and will temporarily have adverse effect project site through a field
livelihood on the regional economy and survey, and consideration of
infrastructure. measures to alleviate the
impact based on the actual
Social environment

state
No cultural heritage property is
Heritage None
located near the project site.
Measures to alleviate the
Buildings, stacks and other structures
impact on landscape, such as
Landscape of the power plant may spoil the
forestation in and around the
landscape.
project site
Ethnic
minorities Neither ethnic minorities nor
and indigenous people reside in or around None
indigenous the project site.
peoples
Working Compliance with any manuals and Interviews with workers of
conditions NERC rules on working conditions the existing power plants

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 Forecast and
assessment
Countermeasures and
Category Check item Reasons for forecast and assessment

Unknown
policies

Small
Large

None
and and occupational safety is unknown. about working conditions,
occupational and confirmation of
safety compliance with manuals and
NERC rules
Healthcare, Confirmation of the present
safety and state and the possible impact
The present state of communities near
security of on communities near the
the project site is unknown.
local project site through a field
communities survey
Confirmation of the present
state including
Traffic from construction vehicles
communication near the
will temporarily have adverse effect
Impact during project site through a field
on the regional economy and
construction survey, removal of
infrastructure. Noise and vibration
work impediments to economic
from construction work will have an
activities, consideration of
adverse effect.
local traffic, and restrictions
Other

on work time
Measures to Whether any training is conducted or Understanding of the present
prevent not for workers to prevent accidents is state through a field survey,
accidents unknown. and training of workers
Expansion of monitoring
items including social aspects
Whether monitoring on social aspects
Monitoring and continuous
is conducted or not is unknown.
environmental monitoring
that is in progress

Chapter 7 Economic and Social Impact of Project Implementation

In Nigeria, the potential electricity demand considerably outstrips the supply capacity, and planned
outages are conducted on a routine basis. Factories, commercial facilities and general households use
non-utility generation facilities to prepare for outages and make up for daily power shortages. Non-utility
power generation costs twice or nearly three times more than grid power, resulting in increased costs
incurred to manufacturers, adverse effects to the invitation of various industries and an increased financial
burden on citizens. Moreover, economically vulnerable groups cannot afford non-utility power generation
and therefore have to accept an uncomfortable situation of frequent outages.
Nigeria has a total of 22 thermal power plants, but 15 plants are inefficient simple cycle gas turbine power
plants. These need to be replaced by high efficiency combined cycle power plants for more efficient energy
use with less global warming gas emissions.
Under these circumstances, the Project to strengthen electricity supply capacity and introduce a high

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 a
positive impact on the country's economy and society. The facility to be constructed under the Project will
be fueled by natural gas, but appropriate measures can avoid and alleviate considerable adverse effects on
the environment. At the same time, the construction work will require many workers and therefore generate
a positive impact on society in the form of effects such as job creation.

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