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A MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN KENGEN AND THE OLKARIA

280 MW GEOTHERMAL DEVELOPMENT PROJECT AFFECTED PERSONS - PAPs

Introduction

1) General Statement:

a) This Memorandum of Understanding (MoU) is made and entered into between Kenya

Electricity Generating Company Ltd (KENGEN) of P.O. Box 4 7936 - 00100

Nairobi, Kenya and the persons directly affected by the Olkaria 2 80 MW

Geothermal Development Project, and who are commonly referred to as Project

Affected Persons - PAPs; and who are residents of either of the four villages of

Oloonongot; Olosinyat; Cultural Center; and the Small Olomayaha, situated in Olkaria

Domes, Naivasha District.

b) This MoU is made and entered into on the l51 day of July, 2013 by and between

KENGEN and the PAPs

c) This MoU is limited to only the provisions of the Resettlement Action Plan (RAP) as

contained in the updated RAP Report of June 2012, prepared by GIBB Africa Limited;

and any addendums thereto.

PAP Legal representative ___--,-A ~----r

. . ';,.- -"''

' ......-~ . ·.

KENGEN Legal Representative

.... ~:Q.Ix.'f:. ................. . BEATRICE CHEJJBtYON

ADVOCATfi . P. f) Bo& 4?936~00; ::a

G.P.O.-NAUtOHI

2

d) The obligations therein, except where this MOU so states, are intended to end when

the RAP process is successfully concluded thus PAPs relocated to re-settlement site

and a close down audit undertaken by KenGen and the World Bank, three ( 3) months

after relocation.

2) Purpose and Objective of this MoU:

This MoU is to safeguard the rights of both KENGEN and the PAPs during the

implementation of the Olkaria 280 MW Geothermal Development Project, of which

resettlement of the PAPs is a sub-project under Olkaria IV; and also to ensure that

each party performs Its obligations, as spell out in this MoU, the updated RAP Report

and any addendums thereto.

3) Common Vision of this MoU:

Both KENGEN and the PAPs, understand that the Resettlement Action Plan is a sustainable

development program, which provides sufficient resources and skills to enable the PAPs

benefit in terms of improvement of their socio-economic well being, through consultations and

participation in planning and implementing the agreed upon resettlement activities.

PAP Legal representative KENGEN Legal Representative

BEATRICE CHEBELYON AOVOGATB

Po 0 BOA 47936-00.Ii;9 G.P.O.-NAlflODI

3

B. Mutual and Individual Obligations

1. Mutual Obligations and Agreements

i) Both KENGEN and the PAPs agree to execute the Resettlement Action Plan in an

open and fair manner through free, prior and informed consultations, and through the

already constituted RAP Implementation Committee - RAPIC.

ii) In executing the Resettlement Action Plan, both KENGEN and the PAPs agree to

treat each other with mutual respect, fairness, understanding and truthfulness.

iii) If any grievances and complaints from either party arise during the execution of the

Resettlement Action Plan, both KENGEN and the PAPs agree to amicably resolve

such grievances and complaints through the lowest level provided by the Grievance

and Complaints Handling Mechanism - GCHM, as contained in the updated RAP

Report. However, where any grievances and complaints cannot be solved at the

lowest level of the GCHM, both parties commit to let such grievances and complaints

be resolved through the provisions of the GCHM.

iv) Both KENGEN and the PAPs agree to respect the GCHM as the mechanism for

resolving any grievances and complaints that might arise during the execution of the

Resettlement Action Plan.

KENGEN Legal Representative

!\....,_, ~cls~/ ....................................

JBATJUCE CHEIBLYON ADVOGATB

P. f) .BoJ: 47936·00 i :;9 G.P.O.-NAJROBl

v) Both KENGEN and the PAPs agree a 1700 acre parcel of land is bought from Land

Parcel No. L.R. 8396, for the resettlement of the PAPs; and that a wire fence will be

erected around the entire 1700 acre Resettlement Land, but with animal corridor

gaps, each measuring at least 30 meters wide1•

vi) Both KENGEN and the PAPs agree that a total of Houses/Homesteads numbering

15()2 will be constructed for the PAPs, with electrical wiring being included for each

residential house and access to electricity ensured. The PAPs will, however,

individually process and pay electricity connection fee with Kenya Power.

vii) Legal representatives of both KENGEN and the PAPs endorse this MOU as a legal

and binding document

2) Obligations of the PAPs:

The PAPs agree, through their representatives in RAPIC and the CAC, to fully participate in

the RAP implementation process, and to fulfill the following Obligations:

a) Actively participate, in an orderly manner, in RAPIC meetings where key issues of

RAP are deliberated, and decisions made.

. .....-····· KENGEN Legal Representative

(h,"- r - ", j.l.r. ) ~ t-\~U:._ ·--- ~ ... -....................... ..

lEATRICE CHEJELYON ADVOGATH

P. e> lh>A 41936·00i ~9 O • .P,O.--NAlkOBI

1 KenGen agrees to attach a confirmation letter stating that KenGen bought and paid for the Parcel, which Kedong has given it possession of. 2 Any PAP, who may have been left out of the house beneficiary list will, and is found to have been captured in the GIBB Consultants' list of 2009, will automatically be included as a beneficiary, and a house constructed for them.

5

b) Monitor the progress of the implementation of RAP, and to report any dissatisfaction

with the process, either through the GCHM or directly to RAPIC for deliberation and

resolution.

c) Take charge of the management of "community good' sub-projects (such as the cattle

dip, cattle watering troughs, community social hall and the community bus) through

their own institutions.

d) The Oloolkarian Maasai Cultural Center, which is a cultural conservation site, will

strictly be used as a business center. Residing within the cultural site is not

acceptable.

e) Relocate to the resettlement site, once reasonably satisfied that all entitlements, as

contained in the entitlement matrix of the updated RAP Report, have been fully

implemented.

f) Collectively and individually undertake not to, at any given time, attempt to dispose of

through sale, any property acquired as entitlement from RAP. Any PAP or a PAP

institution is free to report such attempt immediately it is made, to the Deputy County

Commissioner and to the PAP leadership for appropriate action against the individual.

PAP Legal representative KENGEN Legal Representative

..... ®.r.-9$~:-.................... . IEATIUCB CHEDELYON

AOVOGATB P~ 0 BOA 41936·001;)0

CU•&t=NAlkOBJ

6

3) KENGEN's Obligations:

KENGEN, agrees to fully participate in the RAP implementation process; and to fulfil the

following Obligations:

a} Actively participate in RAPIC meetings where key issues of RAP are deliberated, and

decisions are made.

b) Commit to undertake all housing construction works using masonry walls and 28 G

pre-painted iron sheets.

c) All residential houses will have the following:

i. Two bedrooms measuring 4M X 4M; one living room measuring SM X 4M; a

semi-detached kitchen and 2.5M X 4M veranda; and ceiling boards.

ii. The Social Hall and the three churches measuring 24M X SM.

d) Allocate 14 acres of land for the Oloorkarian Maasai CUltural Center, for which a title

deed will be processed, and transferred to the land holding entity of the PAPs

e) Construct a main access road, as well as internal access roads to the villages, to a

quality as provided for in the government specification and standards; three churches;

a modern single stream primary school; a social hall; a cattle dip; two animal watering

troughs; a dispensary and two fish ponds.

f) Implement all that is contained in the entitlement matrix of the updated RAP Report,

an extract of which is included in the matrix provided as Table 1 on the next page:

KENGEN Legal Representative .,.---, u ' , .. . ....-;;) ..... ~':L.S. ... ..................... .

BEATRICE CHEBELYQN ADVOf'ATB

P. e> Bo! 41936·00i'J0 G.P.O.-NA1k0Bl

7

Table 1: Compensation Measures Matrix: Entitlements for Loss of Land, Residential Housing,

Rental Housing, Income, Access to Main Road Networks and Disturbance during Relocation

Taxonomy of Nature of compensation to which each category of PAP is entitled

PAPs Compensation Compensation Compensati Compensatl Compensation "lor loss Moving or

for loss of land for loss of on for loss of on for loss of easy access to work disturbance

residential rental house ofincome3

places and trading allowance for

housing unit centers due to transport to

increased distance new areas of

residence

Land Land for land Construction None None •A main access road A fixed

Owners with compensation of a 3 roomed into the resettlement amount of

residential housing unit site, as well as Kshs

housing KenGen has with a internal access roads 35,000/=

units purchased detached will be constructed to will be paid

1700 acres kitchen, all weather murram to qualifying

for this bathroom, pit surface, according to categories of

purpose latrine, government PAPs to

rainwater specifications and facilitate

Community harvesting standard movement

ownership of guttering and •A bus with a carrying

the land title tank as capacity of at least

necessary, 60 passengers will

and a barbed be purchased to

wire fencing enable all PAPs at

around the the resettlement site

entire unit access the main road

network easily from

the site

...,...,...-·

PAP Legal representa ·ve KENGEN Legal Representative

8

Cultural The centre None

Centre as a remains at its

business current The PAPs

entity location, with who now

all its reside at the

structures Cultural

being retained Centre are

considered

The Center to alongside

stand on 14 others within

acres of land the various

PAP

Community categories

ownership of

the land title

Landlord none None

(includes

both

landowners

and Land

tenants with

rental

housing

units)

None

Lump sum

cash

payment

at full

replaceme

nt cost of

the rental

housing

unit

None. None None

The

Centre is

to be

retained

at its

current

location,

with all its

structures

being

retained,

hence no

basis for

com pen sa

tion

Lump None None

sum cash

payment

equivalent

to three

months'

rent

KENGEN Legal Representative

/.~''··, '

... ~.Q~~?-.................. . lEATRICE CHEIELYON

ADVOt""ATB P. o Bo~ 47936-00im)

G.P.O.-NAIROBI

9

Housing None None Lump sum

Tenants cash

payment

equivalent

to 3

months

rent to

enable

him/her

find

another

house to

rent

Land Tenant None Lump sum None

cash payment

at full

replacement

cost of the

residential

house

,..··

PAP Legal represents i:ve - '\

None None None

None None A fixed

amount of

Kshs

35,000/=

will be paid

to land

tenants who

had housing

structures on

their rented

land at as

the cut-off

date, i.e. 16th

September

2009

KENGEN Legal Representative

Ai''> .t1r. •.••••• \.ID.{"..).l;! .. Q.-; ............... .

JBATIUCB CHE.ELYQN ADVOf'ATB

P. e. Bo1 47936·00i'J0 O,P,O . .-..HAikOBI

10

The Poor Land for land KenGen is to None

and compensation construct

Vulnerable4 housing units

members KenGen has of 3 rooms

among the purchased each and a

PAPs (the 1700 acres detached

elderly, for this kitchen,

female purpose bathroom and

headed pit latrine for

households, Community qualifying

the disabled ownership of PAPs

the land title

'

PAP Legal representative

None (no A bus will be A f ixed

source of purchased to enable amount of

income all PAPs at the Kshs

was resettlement site 35,000/=

identified access the main road will be paid

for this network easily from to qualifying

category the site ca tegories of

of PAPs) PAPs to

facilitate

movement.

KenGen may

consider

special help

for this

category of

PAPs

KENGEN Legal Representative

Q~_, r-· ('·~Q . .,_:;, ' .. ' ---·

I I I II I li<_;..,_.· I I I I ··r·t I I I I I •• I. I II I I I I I I I I I

lEATRICE CHFBEtYQN 1.r~v · v"-'- l '"i

P. 0 hu JI ,;;·~') I r-"0: '}0 G.P.O.-NAll\.O JI

4 Being poor or vulnerable does not necessarily mean being landless or having no house. Where the vulnerable are found to be land owners with res i1dential houses they are entitled to the same compensation measures as other PAPs in this category. But where they need special help to move to the resettl'ement site, the nature of help, e.g. provision of a means of transport, may be considered by KenGen on a case by case basis, in consultation with RAPIC from the respective villages

II

a. Entitlements for Livelihoods Restoration and Enhancement

In addition to the entitlements contained in the table above, KENGEN also undertakes to

implement the following entitlements, which aim to restore and enhance the social and

economic livelihoods of the PAPs, once they move to the resettlement site:

A. Institutional facilities and social infrastructure projects: KenGen will construct the

following institutional facilities at the resettlement site:

i. One (1) modem primary and early childhood development school, with access to

electricity connection and complete with the following amenities:

o Furnished classrooms for classes 1-8 primary to cater for approximately 320

pupils;

o An early childhood development wing with 4 pre-school classrooms;

o A furnished library stocked with reading materials;

o A furnished administration block/staff room;

o A furnished kitchen;

o Eleven (11) separate ventilated improved pit (VIP) latrines to cater for

teachers, girls and boys;

o Thirteen ( 13} three roomed housing units for cater for the teachers;

o Water points at convenient locations within the school, i.e. the ablution blocks

for both teachers and pupils, by the staffroom for teachers' use and at a

convenient point for pupils to draw water.

PAP Legal representative KENGEN Legal Representative

(]

' .. \ 111"' ,~) -···~'~\.-,. / •.• ~->. •. ~-;-; •....••..•..•••••..•

BEATRICE CHE'MELY0.'\1 ADVOGATB

P. 0 Bo~ 47936-00 i 'JD O.P.O.-NAUtOBJ

12

ii. Three (3) churches - The Baptist Church, Open Gate Community Christian Ministries

and the Gospel Assembly Church, all built according to specification given by the

respective Church leaders. The Baptist Church will have two pastor's houses, while

the other two churches have one pastor's house each. Each church will have a

changing room and an office.

iii. One (1) 24M X 8M Social Hall which, although not existing currently, is a livelihood

enhancing project as it will enable the PAPs to have a meeting place for discussing

their development plans and for holding social gatherings. KenGen will explore, in the

course of RAP implementation, the possibility of furnishing the Hall with plastic seats

and one large table

iv. One (1) Health facility - dispensary - furnished and complete with the following

amenities:

1) A Consultation room;

2) Nursing/observation room;

3) Emergency maternity room with three ( 3) beds;

4) A pharmacy;

5) A waiting area;

6) Power supply;

7) Water supply point;

8) An incinerator

9) Two three roomed staff houses

PAP Legal representa~--- KENGEN Legal Representative

BEATRICE CHEBELYON ADVOG.4TB

P. e> Bo3 47936·00i!JO O,P,(J ...... :NAlkOBI

13

In addition, KenGen will liaise with the Ministry of Health to facilitate the provision of

medical personnel, equipment and supplies for the health facility;

B. Economic and livelihood infrastructure projects: KENGEN will construct the following

economic and livelihood infrastructure projects at the resettlement site:

i. Site access roads constructed to all weather murram, according to government

standards and specifications:

a. A main access road that links the resettlement site to the main road networks

leading to Naivasha town and its environs;

b. Internal access roads to the settlements within the resettlement site and those

that link the settlements to the public utility sites;

ii. Electricity connection to the school, dispensary and the social hall, with accessible

lines to enable PAPs make connections to their housing units should they wish to do

so, at their own cost;

iii. One ( 1 ) cattle dip located at a convenient site within the settlements with a water

supply point;

iv. Two (2) cattle watering troughs located at agreed watering points at a central location

within the settlements; and

v. Two (2) fish ponds at agreed locations;

vi. The Cultural Center will be provided with piped water, in addition to an access road

off the 10 KM tarmac road to Olkaria IV;

PAP Legal rep~sen~·· KENGEN Legal Representative

... ~, V? ·: c· ... ~ ...... ,....l-.6 ...................... .

BEATRICE CHEBELYON ADVOCATB

P. 0 . BoJ 479.36·001'JQ G.P,O.-NAlkOJSJ

14

Note: All social, economic and livelihood infrastructure projects, in particular, the access

roads, the school, dispensary, water, electricity, cattle dip, cattle watering troughs and fish

ponds are to be constructed in collaboration with, and according to standard design and

specifications of the respective line ministries.

C. Education scholarships: To motivate pupils at the modern school that is to be built at

the resettlement site, KENGEN undertakes to offer 4 scholarships each year, two for girls

and two for boys, for a period of forteen (14) years, i.e. two (2) transitional years, and

implementation period of twelve ( 12) years. The scholarships will be offered based on

stepped up performance as follows:

o Year 15: 2 boys and two girls who must achieve 250 marks and above;

o Year 2: 2 boys and two girls who must achieve 300 marks and above;

o Year 3-14: 2 boys and two girls who must achieve 350 marks and above;

No scholarship will be offered whenever the above performance levels are not achieved.

D. Empowerment of community institutions in support of Infrastructure sustainability:

KENGEN undertakes to conduct a three (3) day training for up to six (6) members per

each sub-project, to build the capacity of community institutions to enable them

sustainably manage community good projects.

PAP Legal representative /// .-----·/

KENGEN Legal Representative

r~t ,../L-c, ..... \{~~.c ... ~.\-;\. ................. .

~EATRICE CHEBELYON ADVOGATB

P. 0 . Bo1 47936·00109 G.P.O.-NAIROBI

5 First year is understood to mean the year when the school does KCPE examination for the first time at the resettlement site

IS

6) General Provisions:

i) This Memorandum shall be governed by the Laws of Kenya.

ii) No negative public announcement or press release/ negative publicity in

connection with the subject matter of this Memorandum shall be made or issued

by or on behalf of either party without the prior written approval of the other,

except such as may be required by law or by any governmental authority.

Amendments: This MoU may be amended by mutual consent of both KENGEN and the

PAPs, and such amendments must be in writing and signed by both parties.

7) Signatures and Dates

This MoU is signed, dated and witnessed as follows:

1. Signature and Effective Date

DATED this 151 day of July, 2013

Name -~~~-· n_aging Director & CEO - KENGEN THE~AEL£CJRICRYGS&AliNG

Cct~4" J.:tJvtrrcO

Signature

Names and signatures of respective Representatives from the four PAP Villages

OLOORKARIAN MAASAI CULTURAL CENTER

-, i:.JJ\) .k~o I t>J..E. S f:i.rJ c_ffD Name ............ : . .. : ............. ................. ... .. t & I G Fj-f;l _ClJ

Date ............................. .

. ;if'' e:'l/ -, ~a (' s Nat1onal I.D. No .. ; ... ... ...... ...... .. ... ..... .... .. . ~ -;=-s.~- ~-Signature. klT. .......... .. .. .. .

16

10 w t:::-c, A- o i..~t< f!:: t3 £-N c.~tn Name ................................................... . 1 G I o1--/ 2.e.1 L~ Date ......... : ................... .

National I.D. No. - ~~ . Y: ff.~ . J. .~ .. ?.:: ........ . Signature ... ~······

Name (CAC).(;;/trJ.t?.ft. .. :§: .. S~............ Date.!~/~7.:/~.o/.:!. ..... National I.D. No . . A./~.'?.O..~.f:f:-!.. . .......... Signature .... ::;;ic: ....... ~

OLOMAYIANA NDOGO

N\ \tV N.J c, ( s \} P-iJ f.l.cJ Name ............. ...................................... . ,r-. ; J o~{ ?.-o 12

Date ... ~~: ........... ; ........... .

_ :J.c-,sgct6.:sc; Nat1onal I.D. No ......................•.............. S

. fY5:;i 1gnature ....................... .

LfEMEJ rJ N AI flF--t.J 'li V Name ............... ................................... ..

e., / G 1-) :;J. c.J i_< Date ............................ /.

. ~- t>fi>t+ r59 L r National I.D. No . .. ::: .................. '.-...... T. .. . ;~

Signature ....................... .

v\J 'Tf)rv)P\vl L J LE::s.· u k.A 7 0 I J 0 ~:r-( ::l 0 C:S Name (CAC) .................... :............................... Date ............................. . ·"J_Q 51) . ., J

National I.D. No. ~ .... 1.::-....... :-? ................. .

PAP Legal representative

. -

r:~-Signature.~ ............. .

KENGEN Legal Representative

__..-......

(~-,{:~1-. I X::! .. ! .-3,..4'-•• • . -•• 1-oR. • •. I I. I. I • I I I I I • I I I"

BEATRWF c ~F " VON

P. 0 l:k, 1 · -''0i JO G.P.O.-NA1.R.OHJ

17

OLOOSINYAT

Name.H.~.t.~ .L:-:: .... i::::~ -~~~!.. c, I c:.~ri?, oJ3 Date ...... ... , ..... : ............. .

. . i ':2..8 () 7- 0 2-:l..--NatiOnal I. D. No ... !.. .. ................. ..... ...... .

~:;t.~-Signature .... ... :· ........... .... .

TA-'"'t~ "'1 'E Et~ ot..£ P·-h-1:2 ~ f 1212 Name ............. .................... ... ... ........... .. c) 1 / t.:/1 f ~-o 1 ::s Date ............................ ..

National I.D. No .. ?:U?$..Y:~§.": .......... . ~1'.$ Signature ................... ... . .

-~~/'Jf.)t) C::J...£: c~rJ.o T~;.) o 1 ( (.)':'fl )_o I '2 Name ( CAC)............. ...... ... ........ .... ..... ............. Date ......................... .. .. .

· E.\ 5 I;c- c L.j- · u.~.,__, National I.D. No .... ~~ .. ::-... ; .. J .?............... Srgnature ..... ... ............... .

OLOONONGOT

fl)f}t:tJ G8 Cl..£ J( 1.) ,:Tv I 6 I c r-r !l_O J 3 Name. ..................... .. .................... ........ Date ............................. .

National I.D. No. 1:!.~ .~.:~. :?. . ¥. .. I.~ .1.~~.1/ Signature .. ~ ......... . Name . .''!.'. t!..'!.1.f.'J.~.C:.1 ... ~~~~~~-~.'.~! Date ... } .~. f .. :t/?.9. .1.~ .. . National I.D. No. f%..~.:~!.~.}:rt............. Signature .... ~ ............. . Name (CAC)~~~-1.?.~ .. ~-~~~ .. ~.lf.'!.~:~~~H.. Date .. /.~.(. ~}[~-~-~ ... . National I.D. No .. ~ . !.1t1.f.'.?:~ .. ........... Signature ... ..... ~'-?.' .....

Witnessed by the District Commissioner for Naivasha who also serves as the RAPIC ' r· .

! i

Chairman:

M \V\1,.,:-f{ l c. . v~ ,G'i I ,,rl. ' Name of the DC/RAPIC Chairman Signature Date

KE~~EN Legal Representative

.. ~OS.~ ................... . BEATRICE CHEBEL YON

ADVOCAf6 P. 0 Bo& 47936-00100

G.P.O.-NAlltOBI 18

lETTER OF CONFIRMATION

lETTER OF CONFIRMATION

NAMES OF LAND HOUSING BENEFICIARIES

FlOOR PLAN RESIDENTIAl HOUSES

E. IMAGES OF RESIDENTIAl HOUSES

/

1

Dear

L

Our Ref:

Dear

We

Yours

CC: Maitane Concellon

Stima Plaza, Kolobot Road, Parklands, P.O. Box 47936, 00100 Nairobi, Kenya, Telephone: 254-020·,3666000, fax: 3741172

NAIROBt 2012

RE:

has ho

2.. consent to su.bdivide the !and from·the land Lette.r

of Consent No. 4564 79 dated

transactior.~ should be

D!redors: ChTistirt0 Crori.chey· Pischi-118. Wood• l.an Martin• Beth N. (all Kenyan)

TOTAL NO. OF PAP HOUSEHOLD HEADS 125 TOTAL NO. OF PAP RESIDENTIAL HOUSES 150

B) TOTAL NUMBER OF INSTITUTIONAL AND RESIDENTIAL HOUSES 15

JULY 2013

0

C: Names of Lands and Housing Beneficiaries

The names and details of the housing and land beneficiaries have been removed from this

document for confidentiality reasons. They are on file with the Resettlement Action Plan

implementation Committee and with KenGen Office of Regulatory Affairs and Compliance.

11

5m

a in

E ("')

E

It is observed that upon of the PAPS

L 2013

1. Kitchen was from Iron sheet waH to masonry 2. Kitched was to main house 3. Room was increased from 4X4m to 4X5M 4. No room shai! be reduced more than 0.2m

was set on