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ENVIRONMENTAL LAWS: AMENDMENTS AND NEW REGULATIONS
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ENVIRONMENTAL LAWS: AMENDMENTS AND NEW REGULATIONS

ENVIRONMENTAL LAWS: AMENDMENTS AND NEW REGULATIONS Tanzania has published the following: A. The Environmental Management (Environmental Performance Bond) Regulations, GN No. 369 of 2024 B. The Environmental Management (Right to Compensation) Regulations, GN No. 367 of 2024 C. The Environmental Management (Fees and Charges) (Amendment) Regulations, GN 588 of 2024 We will highlight the key provisions of the above legislations: 1. The Environmental Management (Environmental Performance Bond) Regulations, GN No. 369 of 2024 These Regulations are made under section 227(1) of the Environmental Act, 2004 with the following parts: 1.1. Administration and Institutional framework 1.1.1.

These Regulations shall apply to projects such as agriculture, forestry, fisheries, energy, industrial processing, oil and gas, chemical industries and facilities, extractive industries, mining, electrical and electronic industries, entertainment, storage warehouses etc. 1.1.2. The Administration is categorized into three parts: the Minister responsible with the Environment, the Director of Environment, and the Council whereby every part of the management has its functions. 1.2. Procedures for determination of environmental performance bond 1.2.1. A developer undertaking of processing of the any project shall be required to prepare a decommissioning plan which shall include cost estimates of the bond deposited which shall include a detailed decommissioning plan and shall be prepared by a registered environmental expert. 1.2.2.

The council shall review the decommissioning plan through the decommissioning committee within ninety days of receiving the plan and approve or disapprove it. If disapproved, the developer shall be required to re submit the decommissioning plan. 1.2.3. The council shall submit the decommissioning plan to the Director when approved. 1.2.4. The developer shall deposit an environmental performance bond to the director of environment as per regulation 11 whereby the Minister shall issue the Environmental Performance Bond. 1.3. Management of confiscated environmental performance bond If a developer/project owner fails to meet conditions set for safe decommissioning, the Environmental Performance Bond shall be confiscated and used to rehabilitate the affected environment. There is a risk that the Bond may be called in case of any interim breach of the environmental laws.

1.4. Project decommissioning committee The project decommissioning committee is a multi-disciplinary committee constituted by the Council to review and scrutinize a project detailed decommissioning plan. The functions of the Decommissioning Committee include site verification and inspection, monitoring, and assessment of compliance with environmental standards, review of the decommissioning plan, and reassessment of the bonds that are deposited, etc. 1.5. Duties and rights of the developer Among the main duties of the developer is to prepare a detailed decommissioning plan and submit it to the Council within the time prescribed in the first schedule and pay the prescribed fees. In case of strict adherence to the decommissioning plant, the developer shall be entitled to collect the whole or part of the Environmental Performance Bond deposited. 1.6. General Provisions 1.6.1.

Post-closure monitoring and management is done by the developer and the developer shall be liable for any environmental risks or misconduct. 1.6.2. The Environmental Performance Bond shall be valid until it is discharged or confiscated; whereby the Council shall have to satisfy itself that the developer has complied with the detailed decommissioning plan. 1.6.3. Where the developer contravenes the provisions of the Regulations commits an offense and shall be liable to pay a fine of not less than fifty thousand shillings but not more than one billion shillings or to imprisonment of a term of not less than three months but not exceeding seven years or both. 1.6.4. The sectors that govern the deposition of any bond shall be required to comply with the Act or these Regulations and when any sector receives any bond for decommissioning shall be required to inform the Minister. 2.

The Environmental Management (Right to Compensation) Regulations, GN No. 367 of 2024 These Regulations address the payment of compensation by persons claiming rights under the breach of the Environmental laws. The Regulations have the following parts: 2.1. Administration and Institutional framework 2.1.1. These Regulations shall apply in filing claims and payment of compensation to claims filed by third parties against the owner/developer of a project due to an act or omission which has caused loss of life, injury to a person, loss or damage to property, loss or damage to the overall environment. The categories of persons that have a right to compensation according to the compensation regime are stipulated in the Regulations. 2.1.2.

The Administration is categorized in four parts which are the Sector Ministries, Regional Secretariat, the Director of Environment and the Environmental Council whereby every party of the management has its functions. 2.2. Liability of Compensation

2.2.1. The liability falls on the owner or operator whose act or omission directly, or indirectly causes damage to a person or property and the form for liability may be determined based on the nature, motive, manner, and gravity of injury suffered by a person. 2.2.2. The burden of proof of damage alleged shall lie on the owner and operator. Exempted liability is on injury or loss suffered due to acts of war, hostilities, terrorism, civil war, specific order from the government, and those caused with the consent of the person who suffered the damage. 2.3. Actions for Compensation 2.3.1. The time limit to file a compensation claim shall be three years from the date of knowledge of the damage. 2.3.2. Any person who suffered damage while protecting the environment shall be entitled to payment of compensation. 2.3.3.

The steps for the claim shall be through mediation at the Council and if it fails, the matter shall be filed in court and adjudicated in a manner applicable to civil cases. 2.4. General Provisions Doctors/physicians who have a reason to believe that a person is ill or dead because of exposure to an activity that is caused by an adverse impact on the environment shall notify the Council whereby the degree of damage is conducted by the designated laboratory. 3. The Environmental Management (Fees and Charges) (Amendment) Regulations, GN 588 of 2024 These Regulations have amended multiple fees which were imposed under NEMC and has introduced new NEMC fees for areas which were not initially categorized in the fee schedule. Due to the bulkiness of the Regulations and the fees changed, we cannot reproduce the whole of it in this short updater.

Based on the IMF Tanzania country report, states that the Tanzania Government will amend the Environmental Management Act and the EIA Regulations by November 2024 to clearly define the roles of each stakeholder and provide a coordination mechanism that ensures consistency of climate policies. Currently, covering ESG in projects is becoming a critical factor that may be included in the planned amendments. Disclaimer The views expressed in this paper are those of the author only and should not be considered as an official interpretation, defamatory or interference of any legislation, laws or policies of any country including Tanzania. The contents of this paper should not under any circumstances be reproduced or used without our express written consent.

It should not be considered as a legal advice to any of its recipient(s) and should not be relied upon without obtaining further legal advice. We accept no liability for any loss occasioned or suffered due to the contents of this paper.

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This article is provided for general information only and does not constitute legal, professional or investment advice specific to any transaction.