NOREMCO HEALTH AND SAFETY

Noremco - Veidekke's operations in East and Central Africa

Noremco is a wholly owned subsidiary of Veidekke, operating in Eastern and Central Africa. Company headquarters are located in Tanzania, and the company has been present in Africa for almost 30 years. To conduct construction operations in this part of the world presents very different issues than what we are otherwise accustomed to. Laws and regulations in HSE are the same as in Europe, but there is considerable variation in compliance due to insufficient governmental follow-up. Noremco is among the companies that have systematically worked with employee health and safety, and has set the same high HSE standards for Noremco as for the rest of the Group. The goal for Noremco is zero injuries, zero cases and zero violations of local environmental requirements. As the injury rate figures from 2004 shows (see figure), we have gradually managed to bring it down to 3.2 in 2009. We are very pleased with this and to see Noremco used today as a reference by government, employer associations and others in this area.

An important theme that has preoccupied us in recent years, is the region's HIV / AIDS challenges. Figures from UNAIDS (Joint United Nations Program on HIV / AIDS) estimates, that 9 per cent of the population in Tanzania is infected, which represents approximately 1.5 million people. The economic consequences of the epidemic already seen include slower growth, demographic changes, lower consumption and increased dependence on international aid. A critical factor to improving the HIV / AIDS problem is to further develop the region in coming years.

The reason for the rapid spread of the disease is complex, but the most important factors are taboos relating to the theme of HIV and condom use.

With financial assistance from NORAD, Noremco in 2001 began implementing health project "Mrawano", one of the main objectives of which is to increase knowledge of HIV, malaria, hygiene and other health issues among employees and their families. Of measures that were initiated were:

• Training: A training program of 20-minute meetings each week for all employees. We have also conducted seminars and other meetings in which employees present and discuss health and safety issues with Noremco's healthcare or a Peer Health Educator, a craftsman specially trained in HSE matters.
• Condom Index: Condom vending machines have been installed on all construction sites, where employees have unrestricted access. Establishment of a special condom index measuring how many condoms we manage to distribute per month per employee.
• Employed with HIV: In 2007, Noremco employed a person who openly talked about being HIV-positive. One of her tasks, to talk with colleagues about the issue of HIV, is gradually breaking down taboos. In a survey conducted in December 2009 showed that 65 per cent of Noremco's employees were tested for HIV during the last 12 months. Around 11 per cent of the employees are currently infected with HIV.
• Health services: Since 2005, all employees and their families have access to full health care, including treatment of HIV, free.

We will continue systematic work to increase knowledge about HIV, working with preventive health measures and to break down the taboos that lead to unnecessarily risky behaviour. In addition, the health programme is working to prevent malaria infection by, among other things, distributing mosquito nets. Today, around 95 per cent of employees use these when sleeping.

In total, Noremco spends 800 U.S. dollars on HSE services per employee per year. We see this as a very good investment, both for local community development and for our business. The measures provide healthier, more motivated and more loyal employees, who in turn put in more hours on construction sites.

In connection with the implementation of the GRI standard in Veidekke, we will in the coming years report more detail on our business in Africa.