Executive Summary

1. Background

This is the report of environmental audit conducted for the Pre

fabricated Building Parts Production Enterprise. The Enterprise was
established in 1986. It is a government owned enterprise and is
located at the southern outskirts of Addis Ababa in Kaliti Akakai
Kifle Ketema Kebele 10. Before the establishment of the enterprise
there was no industrial activity at its location.

The main products of the enterprise are columns, slabs, shear walls,
staircases, landing, and footings. Because of lack of markets, the
enterprise is working under its capacity for the last two years.

The enterprise has a total of 421 workers and 223 of them are working
on temporary bases. The number of female workers is 47 which is
11% of the total. The employees which are directly involved in the
production process is 326.
2. Objective

The objective of the audit is to conduct compliance audit on Prefabricated

Building Parts Production Enterprise and to identify environmental aspects of the
enterprise and suggest areas of improvement.
3. Methodology

The audit exercise comprises of three phases; a pre-audit activity for audit
preparation; onsite auditing to identify important environmental aspects; and post
audit phase where the findings are translated into action plan.

4. Major findings and Recommendations

No major environmental impacts were observed, however areas of

non-conformances were identified. The area of non- conformances
includes:

Exposure of workers to health and safety hazards, such as dust and

noise

Lack of personal protective equipments.

The recommendations forwarded by the audit team are that the company
should set itself measurable targets and establish a clear line responsibility
for achieving these. There must be personnel who carryout regular
monitoring and report to the top management.
The company would be able to minimize the environmental impact by
employing the preventive approach. To do so it is advisable to establish and
environmental management system with in the company.

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There must be good house keeping both in the production area and
compound.
The workers, which because of the nature of work require Personal
protective equipment (PPE), should be provided and get training how to use
the PPE.
There must be sufficient maintained fire extinguishers around the work area.

5. Reaction of Auditee
The auditee accepted the recommended areas of improvement and agreed to take
corrective measures.

6. Next step

In the report the auditors have recommended various mitigation measures. So the
enterprise should design it’s own implementation mechanism and Environmental
Protection Authority should also involve in the monitoring process of these
activities

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 Table of content

Executive summary.......................................................................................1
1- Introduction...............................................................................................2
2- Project Description...................................................................................3
3- Audit Objectives, Scope and Criteria.....................................................5
3.1 Audit Objectives..................................................................................5
3.2 Scope of the Audit...............................................................................5
3.3 Audit Criteria......................................................................................5
3.4 Audit Process.......................................................................................5
3.5 Audit Team..........................................................................................6
The audit team comprises the following......................................................6
4 - Audit Findings..........................................................................................6
4.1 Store......................................................................................................6
4.2 Garage..................................................................................................8
4.3 Fuel station...........................................................................................8
4.4 Boiler house..........................................................................................9
4.6 Production..........................................................................................10
4.7 Overhead and tower cranes..............................................................11
4.8 Metal workshop/ machine shop.......................................................11
4.9 Wood workshop.................................................................................12
4.10 Premise of the enterprise................................................................13
5- Conclusion...............................................................................................14
6- Recommendations...................................................................................14

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1- Introduction

The Ethiopian Privatization Agency, in collaboration with the African Development

Fund, launched a Privatization Technical Assistance (PTA) Project in 2000. One of the
main objectives of the project is to finance the privatization processes of 20 government
owned medium and large-scale enterprises that are grouped in tranch-V. The activities
include conducting Environmental auditing on 20 enterprises. These public enterprises
were established at a time when there was little or no thoughts given to environmental
considerations. Some of the enterprises caused considerable damage to the human health
and the environment. Therefore, the environmental audit is required to identify
mitigation measures before and after divestiture.

With this regard, the Ethiopian Privatization Agency assigned the Environment
Protection Authority of Ethiopia (EPA) to conduct environmental auditing on these
enterprises. EPA initially trained its staff to conduct environmental auditing and then
formulated separate audit teams to commence the auditing of each enterprise. One of the
enterprises to be audited by EPA is Prefabricated Building Parts Production Enterprise.
The Enterprise was established in 1986.

The assigned audit team has audited Prefabricated Building Parts Production Enterprise
to come up with improvement recommendations through waste minimization. The audit
activity mainly emphasized on compliance with Pollution control, Labour, Health and
Water proclamations.

Direct observation through visiting the enterprise, interviewing staff working at different
processing units, use of questionnaires and discussion with the managing body were the
methods employed in the process of information collection.

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2- Project Description
The Prefabricated Building Parts Production Enterprise was established in 1986. It is a
government owned enterprise and is located at the southern outskirts of Addis Ababa in
Kaliti Akakai Kifle Ketema Kebele 10. Before the establishment of the enterprise there
was no industrial activity at its location.

The main products of the enterprise are columns, slabs, shear walls, staircases, landing,
and footings. Because of lack of markets, the enterprise is working under its capacity
for the last two years.

The enterprise has a total of 421 workers and 223 of them are working on temporary
bases. The number of female workers is 47 which is 11% of the total. The employees
which are directly involved in the production process is 326.
Table 1 working categories of employees
Permanent Temporary
Category
Male Female Total Male Female Total
Management 4 1 5 1 - 1
Production workers 137 1 138 184 4 188
Office workers 32 23 55 16 18 34
Total 173 25 198 201 22 223

The working hours of the enterprise is 8 hours a day which extends between 8:00am and
4:30pm. The average working days per annum is 268.

The enterprise has 20 light and 19 heavy-duty vehicles and 7 construction machineries.
During the visit, the audit team observed vehicles which are not operational.
The enterprise uses different machineries in the production process. List of machineries
are indicated in Table 2.

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Table 2 Machineries used by the Enterprise
Number of
No. Machinery type Workplace
machineries
1 Lathe machine 3 Machine Shop
2 Milling machine 2 Machine Shop
3 Press machine 1 Machine Shop
4 Drill Machine 1 Machine Shop
5 Shaper Machine 1 Machine Shop
6 Grinding Machine 1 Machine Shop
7 Wood Compound Machine 1 Wood Workshop
8 Wood Circular Machine 1 Wood Workshop
9 Wood Band Machine 1 Wood Workshop
10 Wood Dust Protector Machine 1 Wood Workshop
11 Grinding Machine 1 Wood Workshop
12 Welding Machine 7 Metal Workshop
13 Circular Saw Machine 2 Metal Workshop
14 Grinding Machine 4 Metal Workshop
15 Drilling Machine 1 Metal Workshop

The source of water supply is bore well water. The average water consumption per day is
1670m3.
The source of energy of the company is mainly from electrical energy and this costs 7600
birr per month within an average.
The enterprise uses sand, cement, gravels and reinforcement as non-chemical raw
materials.

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3- Audit Objectives, Scope and Criteria
3.1 Audit Objectives

The objective of the audit is to conduct compliance audit on Prefabricated Building Parts
Production Enterprise and to identify environmental aspects of the enterprise and suggest
areas of improvement.

3.2 Scope of the Audit

The scope of the audit will cover the management and production units of the
Prefabricated Building Parts Production Enterprise.

3.3 Audit Criteria

The criteria set to conduct environmental audit refers to check systems against
procedures, standards and legal requirements. Some of the relevant proclamations that are
dealt with; Labour proclamations, occupational safety health and working environment;
public health proclamation; and environmental pollution control proclamation.

Relevant articles from each proclamation have been identified and compared against the
current practice of the factory.

3.4 Audit Process

The audit process took three days. On the first day, an opening meeting with the
management of the Enterprise was conducted. During the meeting, explanations were
given about the audit activities and consensus reached.

On Nov.12, 2003 the audit team visited the stores, Garage, Fuel station of the enterprise
and noted its observation.

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The second day of the audit was conducted on Nov.18, 2003. During the audit, the team
visited the laboratory, production section, as well as the metal, wood, and electrical
workshops.

3.5 Audit Team

The audit team comprises the following

Mr Miskir Tesfaye (team leader)
Mr Mehari Wondimagegn (auditor)

4 - Audit Findings

4.1 Store

4.1.1 Cement and Pre pressing wire Store

Status

The materials stored in this room are: Round bars, Stainless steel, woods and unwanted
materials.

Observations

The stored materials were covered by dust. The mattresses, which are unwanted, could be
a source of fire or exacerbate the fire in case of fire accidents. To make the situation
worse, there are no fire extinguishers in the room. Moreover, there is no emergency exit
in case of fire accident.

Area of Non-conformance

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Labour Proclamation 42/93 Article 92(6) 'ensure that the work place and premises do not
cause danger to the health and safety of the workers'

4.1.2 Stationary and Building materials stores

Status
Filling coat (without label), paints, sanitary equipment, erection martial, jerry canes,
vibrators, pressing machines, cartoons containing detergents, refrigerators which are not
working and other things are available in this room.

Observations

The area is dusty, the materials are not shelved properly and the electrical main switch is
not accessible.

Area of non-conformance
Labour Proclamation 42/93 Article 92(6) 'ensure that the work place and premises do not
cause danger to the health and safety of the workers'

4.1.3 Spare parts and electrical items store

Status

The materials stored in room are: Acids, which are not labeled and stored for long time,
used tires, spare parts, and electrical equipment.

Observations

The room is not clean, the materials are not stored properly and non-compatible materials
are stored together.

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Area of non-conformance
Labour Proclamation 42/93 Article 92(6) 'ensure that the work place and premises do not
cause danger to the health and safety of the workers'

4.2 Garage

Status

This is a place where cars and heavy tracks are maintained.

Observations

Used oils are collected to be reused in the production area, which is a good practice to
protect the environment from pollutant. No personal protective equipment (PPE) is
provided to the workers in this section.

Area of Non-conformance

Labour Proclamation 42/93 Article 92(3) Provide workers with personal protective
equipment, clothing and materials instruct them their use.

4.3 Fuel station

Status

The enterprise has fuel filling station inside the premise. The fuel station has a capacity of
containing 20,000 liters of benzene and 30,000 liters of diesel oil. The average weekly
amount of fuel filled is 641 liter of benzene and 320 liters of diesel. There are 16 filled oil
barrels inside a room at the station. During the audit visit, the audit team is told that there
is frequent check up for the underground leakage of fuel from the two tankers.

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Observation

One foam fire extinguisher is available in the station, but this is not enough compared to
the nature of the fuel, which is very flammable. There are dry woods and grasses very
near to the station. These dry woods and grasses can catch fire easily and this could be a
source of fire accident both to the station, to the company and to the surroundings. There
is no a "no smoking" sign around the station.

Area of Non-conformance
Labour Proclamation 42/93 Article 92(6) 'ensure that the work place and premises do not
cause danger to the health and safety of the workers'
Labour Proclamation 42/93 Article 92(7) take appropriate precaution to ensure that all the
processes of work shall not be a source or cause of physical, chemical, biological,
ergonomical and psychological hazards to the health and safety of the workers

4.4 Boiler house

Status

This area is a place where the boiler heats water, which is small scale to generate steam.
The steam is used to dry the concrete in a short period of time. There is furnace oil
tanker which is partially buries near to the entrance of the boiler house.

Observation

There is spillage of used oil on the floor of the boiler house. The boiler was not
operational during the time of visit. The pipes for the steam are not insulated properly.
This entails energy loss. There is no monitoring mechanism in place to check for any oil
leakage to the underground from furnace oil tanker.

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Issue of Concern

There could be a leakage of oil from the furnace tanker that can contaminate the soil and
underground water.

4.6 Production

Status

There are two big cement chambers with a capacity of 600 quintals each. The sand and
gravel are brought together from their respective chambers by the screw conveyer and
mixed with cement in the mixing tankers to form concrete.
The wastewater with suspended solids, which comes out from the concrete mixer, is
drained to the pond just outside of the production area. The wastewater is left in the pond
for some time and gradually the suspended solid material is settled in the pond. The "pure
water" is discharged in to the next pond. The second pond is a place where the water is
collected permanently until it gets evaporated or discharged through underground
seepage. The settled material, which is mainly cement, gravel and sand, is collected from
the pond and put together near to the pond as a solid waste.

Observation

There is no separate area to collect the solid waste as the current area is obstructing the
movement of the workers. The first pond is not fenced. The drainage line is open pit
which could be a cause for accident.

Area of Non-conformance
Labour Proclamation 42/93 Article 92(6) 'ensure that the work place and premises do not
cause danger to the health and safety of the workers'

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4.7 Overhead and tower cranes

Status
There are four overhead cranes and one tower crane which were operational during the
audit.

Observation

There are no signals or posted warnings in local language to warn workers while the
overhead crane moves materials in the production area. Materials hinder the pathways
under the overhead cranes. There is no means of communication between the tower crane
operator and people on the ground. The audit team observed no personal protective
equipments being used by the workers.

Area of Non-conformance

Labour Proclamation 42/93 Article 92(3) 'Provide workers with personal protective
equipment, clothing and materials instruct them their use.'
Labour Proclamation 42/93 Article 92(6) 'ensure that the work place and premises do not
cause danger to the health and safety of the workers'.

4.8 Metal workshop/ machine shop

Status
This place is used for maintenance of different part of machines are produce other
building materials (such as metal door and window frames).

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Observation

The housekeeping of the shop is not good. Excessive noise is generated during cutting of
metals. In case of accident there is no first aid equipment and fire extinguisher around the
shop. Scrape of metals, which are not relevant to the work, are dispersed in the shop. The
electrical control is not accessible. The raw materials are not properly stored. The audit
team observed no personal protective equipments being used by the workers.

Area of Non-conformance

Labour Proclamation 42/93 Article 92(3) 'Provide workers with personal protective
equipment, clothing and materials instruct them their use.'
Labour Proclamation 42/93 Article 92(6) 'ensure that the work place and premises do not
cause danger to the health and safety of the workers'.
Public Health Proclamation 200/2000 Article 11(2) 'the use of any machinery or
instruments which generates excessive noise is prohibited. Any person who uses such
machinery or instrument shall install noise reducing apparatus or instrument.'

4.9 Wood workshop

Status

This is a section where different furniture and woods necessary for production are made.

Observation

The work area is very dusty and noisy. There are riffraff of wood collected in the room
and this could be a source of fire or could exacerbate the fire in case of fire accident. The
workers in the section are not provided with PPE.

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Area of Non-conformance

Labour Proclamation 42/93 Article 92(3) 'Provide workers with personal protective
equipment, clothing and materials instruct them their use.'
Labour Proclamation 42/93 Article 92(6) 'ensure that the work place and premises do not
cause danger to the health and safety of the workers'.
Public Health Proclamation 200/2000 Article 11(2) 'the use of any machinery or
instruments which generates excessive noise is prohibited. Any person who uses such
machinery or instrument shall install noise reducing apparatus or instrument.'

4.10 Premise of the enterprise

Status

The compound includes the administration, production area, the workshops, garage and
the fuel station. There are scraps of metal, dry woods near to the fuel station; excavated
soils brought from other work site have been put in the compound. Dry grasses grown in
the compound. Old cars subjected to sun and rain is also available in the premise.

Observation

The major problem in the premise is related to the excessive dust generated by the wind
and the movement of cars and heavy truck. The availability of the dry grasses and woods
in the vicinity of the fuel station can cause fire accident.

Area of Non-conformance

Labour Proclamation 42/93 Article 92(6) 'ensure that the work place and premises do not
cause danger to the health and safety of the workers'.

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5- Conclusion

The Prefabricated Building Pars Production Enterprise has no significant environmental

aspects. However there are a number of non-conformances that might require corrective
actions in the future.

6- Recommendations

The company should set itself measurable targets and establish a clear line responsibility
for achieving these. There must be personnel who carryout regular monitoring and report
to the top management.

The company would be able to minimize the environmental impact by employing the
preventive approach. To do so it is advisable to establish and environmental management
system with in the company.
There must be good house keeping both in the production area and compound.
The workers, which because of the nature of work require Personal protective equipment
(PPE), should be provided and get training how to use the PPE.
There must be sufficient maintained fire extinguishers around the work area.

16