Contents

Executive Summary....................................................................................................................................iii

2. INTRODUCTION.......................................................................................................................................iv

3. Objectives of the Audit............................................................................................................................6

3.1. General Objective.............................................................................................................................6

3.2. Specific Objectives............................................................................................................................6

4. Scope of the Audit...................................................................................................................................6

5. Audit Criteria...........................................................................................................................................7

6. Methodology..........................................................................................................................................8

6.1. Study Area........................................................................................................................................8

6.2. Conceptual Framework.....................................................................................................................8

7. Evidences Used........................................................................................................................................9

8. Findings.................................................................................................................................................10

9. Conclusion.........................................................................................................................................11

10. Recommendations.........................................................................................................................11

11. References.....................................................................................................................................12

12. Annexes.........................................................................................................................................13

13. Auditors signature.........................................................................................................................14

 1. Executive Summary
Ethiopia is one of countries in the horn of Africa and Ethiopian Ministry of Agriculture implements and
regulates agricultural growth program/AGP which is funded by the World Bank and Guto Gida Woreda is
one of the beneficiary woredas from the program. Guto Gida Woreda is located in Oromia Regional State,
East Wollega Zone. Uke kebele is one of the kebeles of Guto Gida Woreda which is located at 35
kilometers to the north of Nekemte, the capital town in East Wollega zone.

Hunde Gudina Uke Farmers Association is founded in 1996 by 167 farmer’s member, among whom 164
were males and 3 were females. The farmers started their business with an initial capital of four thousand
one hundred seventy five/4175 Ethiopian birr. The association has a total member of 745 farmers at
current time. Among these, 580 are males and 165 are females. At the moment, the total capital of Hunde
Gudina Uke Farmers Association is one million seven hundred thousand/1,700,000 Ethiopian birr.

A Warehouse is a facility which is used for storing agricultural products. Construction of warehouse
benefit many actors in agricultural value chains: By storing agricultural products accessing ware house
can avoid forced selling of commodities shortly after harvest when prices tend to be suppressed, reduce
post-harvest losses , reduce transportation costs , create awareness, raise quality standards , permit the
aggregation of commodities and empower value chain agents to negotiate for better prices.

Hunde Gudina Uke Farmers Association warehouse is designed and implemented with an objective of
documenting an operation or activity’s current environmental performance of operation and
environmental management procedures including emergency response planning, monitoring and reporting
system and planning for future environmental performance.

The audit team employed a mixed-method approach for data collection, analysis and triangulating data
collected. Primary data was collected by an interview with 20 respondents from project staffs and target
beneficiaries (members of Hunde Gudina Uke Farmers association). Secondary data was collected from
review of documents in the project office, environmental protection office and stake holders’ office. For
the intended environmental and social audit of Hunde Gudina Uke Farmers association questionnaires/
checklists/ guides the consulting team and different formats were designed to gather the required
information on the set of variables identified.

The audit team concluded that Hunde Gudina Uke Farmers Association warehouse construction has no
threatening negative impacts on the environment as well as the society. All the necessary documents
which were used for the audit report were attached to this document.

The audit team recommends the project management that, the solid waste disposal facility should be
protected by fence and the warehouse management system and necessary equipment should be able to
ensure the occupational health and safety/OHS of the members of the association and the daily laborers.
 2. INTRODUCTION

Ethiopia is one of countries in the horn of Africa and Ethiopian Ministry of Agriculture
implements and regulates agricultural growth program/AGP which is funded by the world bank
and Guto Gida Woreda is one of the beneficiary woredas from the program. Guto Gida Woreda
is located in Oromia Regional State, East Wollega Zone. Uke kebele is one of the kebeles of
Guto Gida Woreda which is located at 35 kilometers to the north of Nekemte, the capital town in
East Wollega zone. Guto Gida Woreda is one of the woredas of East Wollega zone which is
supported by AGP. The program supports the woreda in construction of roads access, upgrading
small scale irrigation, constructing cattle crash, construction of market shades and so on.
Additionally, the program funded for construction of a warehouse for Hunde Gudina Uke
farmers association.

Hunde Gudina Uke Farmers Association is founded in 1996 by 167 farmer’s member, among
whom 164 were males and 3 were females. The farmers started their business with an initial
capital of four thousand one hundred seventy five/4175 Ethiopian birr. The association has a
total member of 745 farmers at current time. Among these, 580 are males and 165 are females.
At the moment, the total capital of Hunde Gudina Uke Farmers Association is one million seven
hundred thousand/1,700,000 Ethiopian birr.

Hunde Gudina Uke Farmers Association has been facing many challenges since it started its
work. The main problem of the association was the absence of warehouse for storing agricultural
products of the farmers.

Agricultural Growth Program/AGP which is funded by the World Bank addressed the farmers’
problem by constructing a warehouse facility by the year 2012 E.C by funding three million
three hundred ninety five thousand fifty three/3395453.24 Ethiopian birr from which the
farmers’ contribution was three hundred thirty nine thousand five hundred fifty four/339554.73
Ethiopian birr, for construction of the warehouse in Uke town.

Warehouse is a facility which is used for storing agricultural products. Construction of

warehouse benefit many actors in agricultural value chains: By storing agricultural products
accessing ware house can avoid forced selling of commodities shortly after harvest when prices
tend to be suppressed, reduce post-harvest losses , reduce transportation costs , create awareness,
raise quality standards , permit the aggregation of commodities and empower value chain agents
to negotiate for better prices.

There are several benefits of construction of warehouses. First it assures quality of produce.
Second it promotes market linkages through a common marketable instrument at community
level. By bringing the system to the woreda or community-level, accessibility by smallholders is
greatly enhanced. Successes include solving institutional deficiencies and ensuring financial
inclusion.
However, any program funded by the World Bank should meet environmental and social
requirements. Prior to construction of warehouse, the community must select the project, Kebele
Development Committee must approve the project, environmental and social screening must be
conducted, environmental and social impact assessment must be prepared and approved timely,
environmental and social management plan/ESMP must be prepared timely and approved by
Environmental Protection Authority/EPA. All These issues are conducted during study, design,
construction and implementation phases of the project and must be monitored and evaluated by
the authorized body.

Environmental Audit means, a systematic evaluation of activities and processes of a project to

determine how far these activities and processes confirm with the approved Environmental
Management Plan/EMP of that specific project and sound Environmental Management practices
and applicable environmental standards.

Environmental Auditing is an attempt to provide information on the environmental

performance of a company and thus, include environmental issues in the decision making
process.

An Environmental Audit assesses the nature and extent of harm to the environment caused by the
activities, wastes or noise from a particular company.

An Environmental Audit must be independent, objective, credible and transparent in order to be

successful. Audit should also be regular and ongoing.

3. Objectives of the Audit

3.1. General Objective
The overall objective of this audit is to document an operation or activity’s current
environmental performance of operation and environmental management procedures including
emergency response planning, monitoring and reporting system and planning for future
environmental performance
3.2. Specific Objectives
I. To improve resource utilization through reduction in material use, to minimize wastes
and to identify recycling opportunities
II. To prevent damage and tendency for environmental damage
III. To assess current and future project impacts for which mitigation measure is developed
IV. To ensure the project does not have potential negative impacts on the society as well as
the environment, project outcomes are sustainable and enhance positive impacts.
4. Scope of the Audit

The scope of the audit is therefore to assess/audit existing and potential risk of the warehouse,
storing and related activities on the environment as well as the community mainly the
indigenous people, design the related management plan and develop a monitoring and
tracking tool to minimize/avoid negative consequences that might possibly resulted from the
on-going operations in the project. The audit also covers assessment of existing identified
risks and/or identifying new risks and develops mitigation measures.
5. Audit Criteria

When any project impact assessment/audit is conducted, audit criteria are the vital part. This
audit is conducted depending on different criteria like,

i. Whether the warehouse is environmentally and socially friendly or not

ii. Whether the community select the project or not
iii. Whether Environmental and Social Management Plan/ESMP prepared and approved
timely or not
iv. Whether Environmental and Social Impact Assessment/ESIA prepared and approved
timely or not
v. Quality of environmental safeguard instruments/screening, ESMP, ESIA
vi. Level of Occupational Health and Safety/OSH measure implementation
vii. Environmental impact due to design problem and unforeseen impact
viii. Level of integration among stakeholders
ix. Evaluation of institutional capacity
 6. Methodology

6.1. Study Area

The study covered Uke cluster of Guto Gida Woreda, where target beneficiaries live and the
intended project is under implementation. The study was conducted on Hunde Gudina Uke
Farmers union cereal crops warehouse.

6.2. Conceptual Framework

The study adopted conceptual framework for both environmental and social risk and
environmental and social impact assessment/auditing of cereal crops warehouse storing
activities as well as sanitation and ventilation of the ongoing project. The conceptual
frameworks are derived from world Bank/AGP-program and other international organizations
framework.

Environmental and Social Impact Assessment (ESIA): For this study, the auditing team
adopted world Bank/AGP-program social and environmental assessment conceptual
framework. The ESIA will further identify and assess social and environmental impacts of the
project and design appropriate avoidance, mitigation, management, and monitoring measures.
 Figure 1: Key steps of ESIA, Adopted UNDP 2016

However, newly emerged environmental and social negative or positive impacts during
project implementation were not addressed. The auditing team focused on key social and
environmental risks (identified or new) and undertakes assessment on major impacts based on
the standard checklist prepared for this purpose.

Social Impact Assessment includes the processes of analyzing, monitoring and managing the
intended and unintended social consequences, both positive and negative, of the project and
any social change processes invoked by project activities under implementation.

Risk assessment process has followed the following key steps. Potential risks were identified,
then the team in consultation determined who might be affected (at risk) following it assess
how sever the risk will be, finally formulate proper risk mitigation action designed to address
major risks.
7. Evidences Used

This study employed cross sectional study which involves quantitative and qualitative
method. The consulting team used participatory and technically effective assessment tools to
understand and identify key environmental and social impacts/risks of the project intervention
in the target project site and develop appropriate mitigation plan to curve environmental and
social negative impacts of the project in the project area.

Thus, the study team employed a mixed-method approach for data collection, analysis and
triangulating data collected. Primary data was collected by an interview with 20 respondents
from project staffs and target beneficiaries (members of Hunde Gudina Uke Farmers
association). Secondary data was collected from review of documents in the project office,
environmental protection office and stake holders’ office, focusing on quantitative data. For
the intended environmental and social audit of Hunde Gudina Uke Farmers association
questionnaires/ checklists/ guide the consulting team and different formats were designed to
gather the required information on the set of variables identified.

8. Findings

The Audit team consisting of five members found major findings by analyzing the primary
and secondary data. Accordingly, the findings are mentioned below,
 1. The audit team identified that, the project was selected by Hunde Gudina Uke Farmers
association members and the members contribute twenty percent/20% of the total cost for
construction of the warehouse
2. The project was approved by Kebele Development Committee
3. Environmental and Social screening was conducted prior to the approval of the sub project
and the letter of the prepared screening report was approved by appropriate level of
Environmental protection Authority/EPA
4. Environmental and Social Management Plan/ESMP was prepared timely and approved by
appropriate level of Environmental protection Authority/EPA
5. The team also assessed the level of implementation of the project management plan/PMP
and the concerned body also conducted monitoring and evaluation four times during
construction phase
6. No accident has occurred during implementation of the project
7. There were no people affected by the project/PAP or the subproject did not prepare any
document related to Resettlement Action Plan/RAP because the warehouse was constructed
on land of Hunde Gudina Uke Farmers Association.
8. The appropriate level of Environmental Protection Authority conducted Monitoring and
Evaluation in all the study, design, construction and implementation phases of the ongoing
project
9. The solid waste disposal facility is not available.
10. The warehouse management system and necessary equipment may not ensure the
occupational health and safety/OHS of the members of the association and the daily
laborers.
11. Socio-economic survey is not conducted by the project on its impacts on livelihood of the
community.

9. Conclusion

In reviewing the utilization and performance of Hunde Gudina Uke Farmers Association
warehouse construction which is located in Uke town and funded by the World Bank and
participation of members of the association, members of the association were benefited from
construction of the warehouse in many aspects. Before construction of the warehouse, members
of the association were facing many problems such as lack of storage facility and post-harvest
losses.

The audit team concluded that Hunde Gudina Uke Farmers Association warehouse construction
has no threatening negative impacts on the environment as well as the society. All the
necessary documents which were used for the audit report were attached to this document.

10. Recommendations

The audit team recommends the association management on the following points,

1. The solid waste disposal facility should be constructed.

2. The warehouse management system and necessary equipment should be able to ensure the
occupational health and safety/OHS of the members of the association and the daily
laborers.
3. Socio-economic survey should be conducted by the project on its impacts on livelihood of
the community.

11. References

Environmental Impact Assessment Proclamation, No 299/2002 htt //www. Addis Ababa.

Gov.et

Environmental Policy of Ethiopia, 1989

EPA, 1986, EPA guide for infectious waste management, Washington DC, US EPA. Office of
solid waste

World Bank technical guide note, 1999, Municipal solid waste incineration

Agricultural Commercialization in Ethiopia /2017, A review of warehouse receipts in the

maize, wheat, sorghum and tef value chain.

Environmental and Social Impact Assessment, 2020, for the proposed Bulbula IAIP and
Shashemene RTC, ESIA, central Eastern Oromia region, Ethiopia.

12. Annexes
 Figure 1: Key steps of ESIA, Adopted UNDP 2016

13. Auditors signature

Name Date Signature

1. Kirubel Tilahun ------------------- -----------------

2. Emiru Salbane ------------------- -----------------
3. Workineh ------------------- -----------------
4. Aboma Amente ------------------- -----------------