Review of policies, regulations and standards and incentives/disincentives for adoption of new...

Regional Experts Workshop on Industrial Effluents Management in East Africa 19th – 20th May 2014, Ghion Hotel, Addis Ababa, Ethiopia

Review of policies, regulations and standards and incentives/disincentives for adoption of new effluent management technologies

in the agro process industry in Uganda

Robinah N. Kulabako

Kenan Okurut

Bio-innovate Regional Experts Workshop on Industrial Effluents Management in East Africa, Addis Ababa, Ethiopia, 19-20 May 2014

Regional Experts Workshop on Industrial Effluents Management in East Africa 19th – 20th May 2014, Ghion Hotel, Addis Ababa, EthiopiaRegional Experts Workshop on Industrial Effluents Management in East Africa 19th – 20th May 2014, Ghion Hotel, Addis Ababa, Ethiopia

Background

o Uganda had both small and medium industries prior to

Independence

o In1952, Uganda Development Corporation established to improve

these industries

o A shift from reliance on agriculture to industry

o Included: soft drinks, textiles, soaps, vegetable oils, cigarettes sugar

and others

o But relied more on imported inputs and were subsided and protected

where policies were directed to foreign investments

o Expulsion of the Indians in 1972, owned a number of the industries

o Initiation of economic recovery programes, Industrialization Policy

and Framework of 1994/95


…….cont'd

o Increased discharge of industrial waste into the environment.

o Composition and complexity has also changed depending on a

particular industry varying amounts and chemicals used.

o Caused a national outcry, hence attracting government intervention

into the matter.

o The government of Uganda enacted a number of policies and

regulations to solve this phenomenon.

o Current conventional agro-process treatment processes tend to

separately focus on reducing pollution load or biogas production.

o Bio-Innovate Program to develop innovative integrated technologies

for agro-process industrial wastewater treatment

o Review policies, regulations and standards and

incentives/disincentives for adoption of new EMT in the agro process

industry


MethodologySamples

• Seven regulatory agencies were visited to get existing environmental

policies, regulations, standards and other reports and literature

• About 5,000 medium to large agro based industries, BUT goes up to

about 10,000 including the small scale industries, majority Kampala

• Total of 15 agro-processing industries in the country were selected

• To include at least two industries from: Fruits and juice, fish processing,

breweries, tanneries, oil processing, abattoirs, textile, sugar processing and

dairy process industries

• However, only seven industries could be visited within the assignment period

(four in Kampala, one in Lugazi and two in Jinja)

Interview and Meetings

• Two sets of questionnaire guides: Regulatory agency and the industries

• Key persons interviewed were in-charge of environment, health and safety

issues


……Cont'd

Map of Uganda showing the location of Kampala, Jinja and Buikwe districts

Buikwe

http://www.conflictandhealth.com/content/1/1/12/figure/F1

http://www.conflictandhealth.com/content/1/1/12/figure/F1


Review of policies/legal and institutional framework

Institutional Framework

• The National Environment Policy, 1994 led to the formation of the National

Environment Statute, 1995 and the establishment of National Environmental

Management Authority (NEMA) as a regulatory authority responsible for coordinating,monitoring and supervision of environmental protection activities in Uganda.

• Policy framework

The National Environment Management Policy, 1994

• To promote intergenerational equity and sustainable development that maintains and

enhances environmental quality and resources periodicity

National Policy for the Conservation and Management of Wetland Resources

• Wetlands and other natural resources and the environment are inter-related.


……Cont'dLegal framework

Constitution of the Republic Of Uganda, 1995

• Protection of natural resources

• Article XXVII recognizes the need for sustainable management and utilization of natural resources to meet environment needs

The National Environment Act, Cap 153

• In 1995, the National Environment Statute and was later changed into an Act in 2000.

• Under Section 19(1), a developer of a project is required to submit a project brief to the lead agency.

The Land Act, 1998

• Section 44 provides for the protection of among others wetlands and any other land reserved for ecological purposes

The Water Act Cap 152

• The Water Act Cap 152 provides for the management of water in Uganda. Under section 107, the water regulations 1998 and

Sewerage regulations 1997 were formulated and are aimed at minimizing pollution of public waters by developers and others users.

The Public Health Act 1964

• Section 105 of the Public health Act 1964, revised in 2000 provides for the prevention any pollution dangerous to the health

• It establishes rules for drainage and sanitation, which specifically mention technical aspects of water disposal.

The Environmental Impact Assessment Regulation, 1998

• Statutory instruments 1998 No. 13, section 13 subsection 1 and 2 provides for a developer to pay attention on environmental issues


…….Cont'dStandards for discharge of effluent into Water or on land regulations, 1999

• Section 6 (2) details maximum permissible limits for 54 regulated contaminants, not be exceeded before effluent is discharged

into water or on land.

The Water (Waste Discharge) Regulations, S.I. No. 32/1998

• Section 4 (1): No person shall discharge effluent or waste on land or into the aquatic environment, unless has a permit conditioned

and issued by the Director.

• Section 4 (2): Permit holder to ensure that the effluent or waste discharged conforms to the maximum permissible limits.

• The Occupational Safety and Health Act, 2006

• Section 13: Employer to take all measures for the protection of workers and the general public from the dangerous aspects of the

employer’s undertaking at his or her own cost.

The National Environment (Management of Ozone Depleting Substances and Products) Regulations 2001

• regulations manage and protect the environment from ozone depleting substances that are commonly discharged by industries

The Investment code Act, Cap 92 1991

• Section 18 (2) (d): Investor to take necessary steps to ensure that the operations of his or her business enterprise do not cause

injury to the ecology or environment.


International legal framework

The Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and their Disposal 1989

• Prohibits all trans-boundary movements of hazardous wastes covered by the Convention

The Vienna Convention for the Protection of the Ozone Layer

• Adapted in 1985 and entered into force in 1988

• Protect the globe’s ozone layer. Parties to promote cooperation by means of systematic observations, research and information

exchange on the effects of human activities on the ozone layer and to adopt legislative or administrative measures

• The Stockholm Convention on Persistent Organic Pollutants (POPs)

• A global treaty to protect human health and the environment from chemicals that remain intact in the environment for long

periods and have harmful impacts on human health or on the environment.

Rotterdam Convention on the Prior Informed Consent Procedure for certain hazardous chemicals in international trade

• Promote shared responsibility and cooperative efforts among Parties in the international trade of certain hazardous chemicals in

order to protect human health and the environment

• Information exchange about their characteristics, for a national decision-making process and disseminating to Parties

World Charter for Nature 1982

• Proclaims five principles of conservation by which all human conduct affecting nature is to be guided

• Genetic viability on the earth shall not be compromised; necessary habitat shall be safeguarded.

All areas of the earth, shall be subject to these principles of conservation;

Man can utilize resources sustainably, but not endanger the integrity of other ecosystems or species with which they co-exist.

Nature shall be secured against degradation caused by warfare or other hostile activities

London Guidelines for the Exchange of Information on Chemicals in International Trade 1987

…….Cont'd


Regulatory agenciesPolicy and institutional setup

• Two government ministries that have some mandate in overseeing the

establishment, performance and compliance with regard to agro based

industrial effluent management.

• Ministry of, Trade, Industry and Cooperative (MTIC) and Ministry of Water

and Environment (MWE)

• National Industrial Policy 2008, agro-processing: food processing, leather and

leather products, textiles and garments, sugar, dairy products and value

addition for exports. MTIC is to promote environmentally sustainable

development to reinforce national goals

• National Environment Management Policy 1994, National Water Policy 1999

the National, Environment Act 1995 and the Water Act; the MWE is

responsible for conserving the environment the directorate of Water ResourcesManagement as the lead agency in the sector.

• Other central and local government environmental regulatory agencies derive

their powers from regulatory instruments to inspect, issue permits, warn orprosecute


…..Cont'dPermits and policies employed

• Some policies on environment issues are under review, to be applicable with the

current industrial developments in the country.

• Discharge permits and penalties are only based on the BOD level when actually;

some other types of waste loaded are being produced by the industries.

• Some industries established before current policies and regulations were in place -difficult to enforce

• Three institutions issue licenses before any industry is established:

- Uganda Investment Authority issues an investment license

- Kampala City Council Authority and local government District Authorities issue

industrial establishments license. Also issue operation licenses (business trading

license)

- National Environment Management Authority issues an EIA license.

• No legal framework requiring the three institutions to work together

• DWRM, in accordance with the EIA report, issues a discharge permit

• Where, the industrial effluent may be treated to some standards, NWSC may issue a

trade discharge permit to discharge to the conventional sewerage treatment systemfor further treatment before final disposal


…..Cont'd


Industrial effluent management in agro-process

industries


…Cont’d


Fruit juice

Fruit juice

Fish

Sugar

SugarTannery

Sugar

Tannery

…Cont’d


Challenges to the regulatory agenciesChallenges Suggestible solutions to the challenges

Un harmonized roles of the agencies NEMA, KCCA, DWRM district environment

office, etc. Some duplication of roles

Re- aligning regulations and standards for countries/regions.

Enforcement is a challenge- conflicting ideas

Social pressure

Finance

Behavior

Many taxes

Compliance monitoring

Hard to enforce- some industries

Lack of techniques/capacity to manage own data

Inadequate human resource capacity of regulatory agencies

Some policies contradict/challenge others

Start production and agencies come only after they release

Implementation is also a challenge

Political interference ( you close a factory now, the next day the ministry opens it

again)

Resistance to invest, they think it is NEMA facilitators doing it for NEMA’s benefit

Lack of coordination among stakeholders

Fines are too small to change peoples’ behavior

Not easy to implement some- polluter pays principle

Investors not aware of industrial effluent management policies, regulations and polices

Intervene by compelling industries to

adopt cleaner production practices

Create more awareness and training

Apply the polluter pays principle

Strengthen the enforcement

Strengthen NEMA

Provide some incentives.

Create awareness among the political

arena

Prioritize environment in the National

development plan

Improve collaboration among the

regulatory institutions

Create focal persons in charge of

environment to improve coordination


…..Cont'dChallenges to the agro-processing industries

Challenges Suggestible solutions to the challenged

Lack of coordination among key actors

Enforcement is a challenge and conflicting

ideas

Implementation is also a challenge

Limited space

Limited/lack of finances) to invest.

Behavior of the people

Issues that require technological change are

challenges because of lack of resources

Lack of techniques/capacity to manage their

own data.

Fear to be taxed (tax evasion)

Inadequate human resource capacity in the

industries

Very many taxes

High cost of influent treatment technologies

Political interference

Selective enforcement

Investors not aware of industrial effluent

management policies, regulations and polices

Not easy to treat waste like chrome, sulphur,

etc.

Avoid selective enforcement

Adopt cleaner production practice

Improve on the EIA and other procedures in processing licenses and

permits

Strengthen NEMA

Provide some incentives

Sensitize, create more awareness, build capacity of institution and help

industries to build capacity

Prioritize environment in the National development plan

Improve collaboration among the coordinating institutions

Government and other partners to give free land for ETPs


Motivations to have an EMS

What motivates agro-processing industries to have proper effluent management system


Incentives and disincentives

Mechanisms that use financial means to influence polluters:

Tradable Permits, Subsidies, Charges / Tax/fees

Available incentives Suggestible incentives

Agency

Incentives:

Performance awards published in press

Compliance assistance by NEMA.

Tax exemption, issuing permits even before plant is put in

place. Closing up was in the past.

Offer training for best performer

Recommendation letter for good effort of best practice

Tax waivers on imported technologies

Disincentive:

Improvement notice, warning letter, closure, prosecution,

heavy penalty

High costs of ETPs

Lack of appropriate technology

Local authorities only mind about whether industry has

paid a trading license

Corruption

Selective enforcement

Most investor only mind about profits and less on

environment

Revolving funds to help industries at very low interest

rates

Environment fund- tax exemption

Working on the percentage of tax on imported raw

material- tax exemption

List of best performer industries by performance and

compliance and post regularly in the media (NEMA)

Tax exemption (NEMA in collaboration with URA)

Promote products of industries that have improved/are

complying

NEMA to have logo as compliance similar to that of

UBOS

Award contracts only to companies that comply

Make cleaner production a mandatory practice

Government support cleaner production to offer free or

subsidized services to industries

Government give free land for industries to put up ETPs


…..Cont'dAvailable and recommendable incentives for adoption of new ETP technologies

Available incentives Suggestible incentives

Industry

Incentives:

Tax holidays on prevention of pollution by Uganda

Manufacturers (with Germany firm)

Performance awards

Waste-resource recovery

Corporate social responsibility

Good image at local and international markets

Environmental awards

More sales in the international market

Disincentive:

Space

Limited finance

Competing priorities

Financial offers to upgrade ETP to generate money.

Favoring terms

Efficient, give return especially energy, re-use of waste water

Confined system requiring little space

Image

Require little space

Reduce smell, sludge management

Tax holidays

Performance awards

Bring about re-use of waste water. Solid wastes generate

include polythene

If better than what they have

With energy recovery and water re use.

Should have economic return

Should satisfy the requirements of NEMA/international

standards

Should be proven technology

New ETP promoters to share the cost of the equipment with

industries as a way of encouraging them to adopt

Corporate social responsibility

Good image with clients

Award by environmental agencies

Concerned with environmental issues

Compliancy with policies and regulation


Lessons learnt and conclusions

• In Uganda, there is reliance on direct regulations in Industrial discharge

management however; economic incentives provide several advantages

such as reduction in pollution loadings and collection of revenue that can

later on contribute financially to the authorities.

• The PPP can lead to the reduction of impacts from waste water discharges

in the environment but an appropriate organizational structure (qualified

personnel, trained experts) should be put in place to manage the

operationalization of the structure.


Preliminary recommendations

The policies developed should be directed to the design, construction and

operational phases of industries.

Emphasize on EIA follow up and more frequent monitoring

Enforcement strategy should be put in place to ensure the policies and

regulations are implemented and followed, non selectively

More research on the ever upcoming industries in Uganda is needed

Government to implement zoning of industries, to share a common effluent

treatment facility

Government to subsidize ETP related equipment

Build the capacity of technical staff in both the agencies and industries

Encourage cleaner production technologies and may be develop into policy

…..Cont'd


Opportunities

NEMA trains district environmental officers

There is joint inspection with district environmental officers

Industrial pollution task force in place (NEMA, DWRM, KCCA, NWSC)

Some policies being reviewed

Some political will / support but selective (Seen in KCCA)

Compliance assistance to encourage improvement, not just to close down

More awareness being created

New law on draft provide that people discharge upstream of their

abstraction “pollute for themselves” being developed

There is opportunity to recycle chrome from tanneries industries

…..Cont'd


Limitations

• Getting information from some of the agro-processing industries selected

was challenging!

• In some industries, difficulty to secure appointments for the visits

• In some industries, permission not grant to see the ETPs

• Not all industries willing to participant in the survey

• The work required more time than allocated!


Future planning / way forward Support district staff by establishing guidelines and criteria for discharges

Only implement technology policies that can be attained by the industries

Industrial operatives should engage and assist with analysis of submissions of

these policies

Provide technical advice on effluent treatment technology

Raise awareness of environmental protection requirements at all levels

Improve coordination amongst the key regulatory agencies

Respond to complaints from the public complaints

Use compliance tools, including balanced and timely prosecution, to achieve

compliance

Private sector involvement to promote economic development and sustainable

industrial development. This is because the government cannot work on its own


THANK YOU

Acknowledgements: Bio-Innovate Program coordinated and the

International Livestock Research Institute (ILRI)

Partners Industrial Effluent Management who were

engaged in the consultant

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