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SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT OF THE

'i:~ MASINLOC COAL FIRED THERMAL POWER PLANT PROJECT

IN THE

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EQUIVALENTS

Currency Unit - Philippine Pesos (~)

~1.00 US$O.0384 US$1.00 26.00

ABBREVIATIONS

AP - air particulate

BCFTPP - Batangas Coal-Fired Thermal Power Project °C degrees Celsius CO - carbon dioxide

db decibel

DENR - Department of Environment and Natural Resources Direct Impact Area DrA

DOE - Department of Energy

DOH - Department of Health @

EMS - Environmental Management Bureau

EMD - Environmental Management Department

EPDC - Electric Power Development Corporation of Japan

JICA - Japan International Cooperation Agency LGU Local Government Unit MCFTPP - Masinloc Coal-Fired Thermal Power Project

MHIAS Masinloc Public Health Impact Assessment Study

MWD - Masinloc Water District NGO Nongovernment Organization NOx - nitrogen oxides NPC - National Power Corporation OHSPP - Occupational Health and Safety Program Plan - PAGASA Philippine Atmospheric, Geophysical and Astronomical Services Administration 802 - sulfur dioxide ()

WEIGHTS AND MEASURES

GWh - gigawatt-hour ha hectare

km - kilometer

mm millimeters

mps - meter per second m - meter m3/sec cubic meter per second - milligram per normal cubic meter mg/Nm3

MW - megawatts

km2 - square kilometer microgram per cubic meter ug/m3 microgram per normal cubic meter ug/Nm3

~ SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT OF THE

MASINLOC COAL-FIRED PROJECT

CONTENTS Page

Map i

A. Introduction 1 ,~ -:!J9 B. Description of the Project 1

c. Description of the Environment 3

D. Projected Impacts and Planned 7

E. Risk Assessment 11

F. Monitoring and Institutional Plan 11

G. Alternatives 13

H. Benefit-Cost Analysis 14

-,. I. Public Involvement 14

J. Conclusion 14

K. Appendixes 15 i . ~

\@ A. Introduction

1. The environmental impact assessment (EIA) for Masinloc Coal Fired Thermal Power Plant (MCFTPP) Phases I and II was prepared by the Environmental Management Department of the National Power Corporation (NPC) in coordination with the Electric Power Development Company of Japan and was submitted to the Environmental Management Bureau of Department of Environment and Natural Resources (EMB-DENR) on 21 September 1990. A series of public hearings was conducted in February 1991 to discuss the findings of the EIA. The environmental compliance certificate was issued by EMB-DENR on 18 December 1992. The Project was accepted by the municipal government () of Masinloc on 6 January 1993, and had been endorsed by the provincial government of on 12 October 1992 and by the regional development council on 14 October 1993. A multipartite management group to oversee the implementation of the environmental management and resettlement plan was formed by a memorandum of agreement signed by EMB-DENR, the provincial government of Zambales, the municipal government of Masinloc, the 1 council of Bani, and the NPC on 2 May 1993. The EIA report was submitted to the Bank in September 1990 and was one of the bases for the approval of the loan for Phase I of the Project in October 1990. In March 1993, the Bank issued new environmental assessment requirements ~ and review procedures that required the circulation of the summary environmental impact ::@ assessment (SEIA) for environmentallysensitive projects 120 days prior to approval of the loan.

Because approval of the loan for MCFTPP Phase I was based on the Bank's previous procedures, this SEIA also briefly reviews the environmental issues, and mitigating measures related to the previously approved loan. The loan for Phase I of the Project became effective on 23 December 1994.

2. This SEIA analyzes the environmental impacts during the construction, and operation and maintenance of MCFTPP Phase II (The Project) in addition to the environmental impacts from MCFTPP Phase I, which is under construction and expected to begin operations in mid-199B. The EIA report covering MCFTPP Phase I and the Project is available in the Project Office on request. An environment specialist from the Bank visited the project and resettlement site on 26 April 1995.

B. Description of the Project 3. The Project will involve the construction on a turnkey basis of the second unit of (i) 300 Megawatt (MW) turbine generator; (ii) 990 tons a hour (t/hr) (max.), single-drum outdoor type steam generator and auxiliaries; (iii) coal handling system; (iv) power transformers and switchyard equipment; and (v) civil and architectural works within the battery limits of MCFTPP Phase I. To achieve economies of scale, a number of facilities for MCFTPP were designed and built under the contract for MCFTPP Phase I. Those facilities include: (i) a powerhouse consisting of turbine house, heater bay, and control house; (ii) boiler, pulverizer, draft system, and stack; (iii) cooling water facilitiessuch as cooling water intakeand outfall; (iv) coal handling system including offshore conveyor, jetty, inland conveyor, coal yard, and crushers; (iv) ash handling facility including ash disposal area, sedimentation basin, and neutralization pit; (v) resettlement site; (vi) temporary camp and storage areas, permanent guesthouse and dormitory, including amenities such as basketball and tennis courts; (vii) fuel oil unloading and storage facilities; (viii) port facilities; (ix) coal storage yard; (x) basic equipment; (xi) smoke stack; (xii) building, administrative facilities, and utilities; (xiii) raw water and waste water treatment system; and (xiv) switchyard. The details of the components and the facilities provided under the contract for MCFTPP Phase I are shown in Appendix 1.

The barangay is the smallest political unit consisting of 100 to 200 families. A of barangays constitute a municipality. 2

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4. The Project is designed to burn coal imported from Australia, The People's Republic of China, Indonesia, and South Africa with the qualities described in Appendix 2. The plant will also utilize fuel oil with low (no more than 1 percent) sulfur content for ignition, warming-up, and support fuel. The Project will utilize sea water from Oyon Bay for cooling, while fresh water for boiler make-up, and other uses will be supplied by the lauis River. Potable water will be obtained from the Masinloc Water District (MWD). The mass balance and the parameters affecting the effluent and emissions of the entire MCFTPP complex, Phase I and the Project are shown in Appendix 3. 5. Because the project will utilize a number of facilities and infrastructure built under the contract for Phase I, it is worthwhile to review the background, environmental issues, and mitigating measures for this component. The Batangas Coal Fired Thermal Power Plant (BCFTPP) in Calaca, Batangas was the first major coal-fired thermal power plant constructed

and operated by NPC.That thermal power plant had a numberof unforeseendesign and operational problems, particularly with the quality and reliability of local coal supply that NPC was required to use to support the development of the local coal industry. Prior to the modifications to BCFTPP, its boilers could not operate efficiently because the local coal had very ~ high ash content and low heating value. In addition, NPC had to maintain a large coal inventory of up to six months because the local coal shipments were very erratic. During windy days, the dust from the coal pile was a serious problem. There were even instances when fires broke out

in the coal pile. The adverse environmental impact of the operations of BCFTPP resulted in strong opposition from nongovernment organizations (NGOs) and the public to the implementation of MCFTPP Phase I Project even when the problems at BCFTPP were corrected.

6. In response to the growing opposition to the Project fueled by negative reports

about the experience of Calaca residents with the BCFTPP, NPC met with the critics, and sponsored a tour of the BCFTPP I for them in August 1992 to correct their misconceptions about

coal-fired power plants and the issues associated with BCFTPP. Because they still had

misgivings about the Project despite the visit to BCFTPP,NPC took two groups of Masinloc residents and officials, including members of NGOs, to Indonesia to visit to the Suralaya Coal- Fired Thermal Power Plant (1,600 MW) in May and June 1993 to show them how the plant's antipollution devices, which are similar to those that will be installed under the Project, effectively 0 checked plant emissions and effluents.

7. The environmental compliance certificate issued by EMB-DENR imposed on MCFTPP (Phase I and the Project) the following requirements: (i) low-sulfur imported coal will be utilized so that sulfur dioxide (S02) emissions from the smoke stack will not exceed the standards in DENR's administrative orders of 1 ,500 milligrams per normal cubic meter (mg/Nm3) of S02; (ii) the Project will be equipped with low nitrogen oxides (NOx) burners and a two-stage combustion system to keep nitrogen dioxide (N02) emissions to no more than 751 mg/Nm3, which is only half the DENR limit of 1,500 mg/Nm3; (iii) the Project will be equipped with electrostatic precipitators with guaranteed dust emission of less than 183 mg/Nm3 or 200 mg/Nm3 (dry) measured at their outlets at any boiler load from 35 percent rated output to full load or maximum continuous rating of 330 MW per unit (DENR emission limit is 300 mg/Nm3); (iv) a continuous stack monitoring system will be provided to measure smoke density, S02' NOx' and carbon monoxide (CO) with the detectors located in the economizer outlet for CO and NOx, at the induced draft fan for S02' and at the ESP outlet for smoke density; (v) a 150 meter (m) stack will be installed to diffuse the flue gases and achieve pollutant ground level concentrations within ambient standards; (vi) the coal storage yard and the coal unloading facility will be equipped with sprinklers to prevent dust generation; the coal conveyor will be provided with dust cover; and an effective physical windbreak (earth embankment and trees) around the coal yard will be installed; (vii) coal unloading from barges will be undertaken using a fully covered 3

(dust-free) continuous unloader; (viii) the dry-type ash disposal system will be adopted to limit

the volume of sea or fresh water requirement of the power plant; (ix) a wastewater treatment facility will be provided including chemical treatment, coagulation, sedimentation, oil separation, and pH control; (x) noise and vibration dampers will be installed to keep noise and vibration within limits and the main noisy equipment will be located indoors; (xi) the cooling water will be discharged on the sea surface through an open channel 650 m from shore to minimize damage

to corals, benthic organisms, and fish juveniles; (xii) the ash disposal pond areas will be constructed to contain all ash contaminated wastes and will be provided with an embankment for surface runoff control and with an impervious lining to prevent leaching infiltration/seepage of heavy metals to the groundwater; and (xiii) the buffer area between the power plant and the

community will be planted with trees so that the power plant will blend with the natural surroundings and the aesthetic characteristics of the area around the plant will be maintained. The environmental protection features of the MCFTPP are in Appendix 4. The status of

compliance of MCFTPP with DENR's emission limits is shown in Appendix 5.

8. The directly impacted area (DIA) of the whole MCFTPP Project covers 137.18 hectares (ha) in Barangay Bani, Masinloc, Zambales and the 12-ha resettlement site in the ,~~* adjacent Barangay Taltal. A total of 198 households resided in the DIA in May 1994 (compared with about 60 in 1989). The population was estimated to 814 in 1994. Seven of these households with a population of 47 resided in the proposed resettlement site. Among the affected households, 107 households have opted to resettle at the NPC resettlement site and 73 households have already transferred there. As of April 1995, 86 households opted to resettle

outside the NPC resettlement site as and 77 households have already been transferred. Expropriation cases have already been filed for the remaining affected households who do not want to leave the Project site. The common types of dwelling units in the DIA are shanties, bungalows, and multidwelling units. More than 90 percent of these units have floor area of less than 60 m2.

c. Description of the Environment

1. Physical Environment

9. The Project is located in the western part of the province of Zambales in an area with high mountains and rugged peaks. The steep Zambales mountain range serves as the boundary of the province. The area is underlaid by mainly igneous rocks and some sedimentary rock formations. The high mountains, particularly the Zambales range is underlaid by ultrabasic rocks. On the western side of the range, there are shale and sandstone formations and, unconsolidated conglomerate and agglomerate materials. Limestone is intercalated with shale. The proposed site for the plant is characterized by gently sloping hills about 15 to 25 m above sea level, surrounded by flat alluvial surfaces extending into sandy beaches.

10. The climate in the area covered by the Project is classified as Type I, using Corona's classification of Philippine climate, with two pronounced seasons: dry, from November to April, and wet, during the rest of the year. The total annual rainfall is 3,701.5 millimeters (mm). The temperature at the site is seasonal and ranges from 20.3°C to 33.3°C. The average annual relative humidity is 79 percent. The prevailing regional wind directions based on data from 1951 to 1985 at the Philippine Atmospheric, Geophysical and Astronomical Services (PAGASA) weather station at Iba are NE, E and NW with an average wind speed of 2 meters per second (mps). At the Project site, the prevailing winds are from the NE, SE, SWand NW, with wind speeds varying from 1 to 3 mps. Thus, most of the time, the emissions from the stack will be carried away from the populated area and towards the sea. The presence of Zambales ridge E of the site affects the wind regimes at the Project site particularly during the NE monsoon season. Atmospheric stability conditions were estimated during day and night using the data . 4 M'

for three decades (1961 to 1990) from the PAGASA weather station at Iba. At low wind speeds (2 to 3 mps), the stability condition is moderately to extremely unstable during the day and slightly to moderately stable during the night. At high wind speeds (> 5 mps), the stability condition is slightly unstable to neutral during the day and neutral during the night. However, during the NE monsoon, the emissions from the stack will be carried by the wind to the .

11. The baseline S02 levels without Phase I around the Project site range from not detectable to 44.63 micrograms per cubic meter (~g/m3) (1981 to 1993). N02 ambient levels range from not detectable to 11.33 ~g/m3. The variation in concentration may be attributed vehicular emissions collected in the sampling stations near the highway. At the proposed Project site, the ambient S02 levels are lower, and typical of a rural environment. Furthermore, based on the low ambient results of S02 levels (1981 to 1993) around the Project site, the MCFTPP site was not affected by the eruption of Mount Pinatubo in June 1991, which is located approximately 80 km SE of the Project site. The prevailing winds in the Mount Pinatubo area are E, SW, and NW, and transport volcanic emissions away from the area covered by the Project.

12. The existing noise at the plant site ranges from 39.8 db to 50.9 db. At the ~ highway nearest the Project site, the noise varies from 68 to 71 db because of vehicular traffic consisting of tricycles, passenger jeepneys, and trucks. At the town of Masinloc, commercial and residential activities increase the noise levels to 70.2 to 77.3 db. 13. The major earthquake generators are the Manila Trench and the Philippine Fault, which are 100 km to 150 km from the Project site. The minor ones are the Iba Fracture Zone located 40 km SE of the site and the San Antonio Graben located 110 km SE of the proposed

site. The records on earthquakes with the epicenters in Zambales Province indicate the magnitudes ranged from 4.5 to 5.0 on the Richter scale.

14. The lauis River which runs along the northwestern side of the MCFTPP site and serves as boundary line between Candelaria and Masinloc is the proposed source of freshwater for the plant's water requirements. The observed stream flow data for the lauis River for two years are not sufficient to determine extreme minimum discharges. Therefore, the measured data at the lauis River and the Nayom River, an adjacent river were correlated to estimate the 0 probability of minimum discharges for different return periods. The computed lauis River minimum discharge for a return period of once every 5 years, 10 years, and 25 years are 0.811 m3jsec, 0.451 m3jsec, and 0.215 m3jsec, respectively. The lauis River is presently utilized for communal irrigation systems with a maximum water requirement in December to March equivalent to 0.405 m3jsec. During the rare drought periods, the plant's water requirements will be provided by the Masinloc Water District (MWD), which will be upgraded with funding from

NPC. The quality of the water.in the lauis River meets the standards of DENR for Class B fresh surface water. Details about the water quality in the lauis River are shown in Appendix 6. 15. Most of the thirty-seven groundwater wells surveyed at the Project site (within an area of approximately 70 square kilometers) yield potable water. Saline water occurs at the wells near the proposed plant site, within 1 kilometer of the shoreline and the mouth of the lauis River. The salinity can be attributed to "the proximity to the shore and the swampy condition of the well sites.

16. Studies made off the west coast of Luzon show that the tidal streams are weak; the strength of the seasonal current is practically nil. The net current is quite steady. The predominant direction of the current is north throughout the year because the of countercurrent that develops during the northeast monsoon period. Sometimes the currents flow south in April

r: j 5

and May. Tidal observation at Cyon Bay revealed that the periodic variation is that of a regular type tidal height.

2. Biological Environment

17. The terrestrial environment at the MCFTPP site at Bani, Masinloc, Zambales is predominantly agricultural with mango and rice, the main crop species. Other agricultural crops at the Project site are coconut, cassava, star apple, papaya, sweet potato, squash, and other vegetable crops and fruits. Along the southeastern to southwestern shore of Bani Point, herbs

and trees are the most dominant vegetative cover during the wet and dry season. The upland areas on the middle portion of Bani Point are covered by mango orchards and rice fields with clumps of native black berries ("duhat"). The uncultivated and vacant areas are covered mainly by grass species such as andropogon aciculatus, imperata cylindraca and mimosa pudica. At the northeastern to northwestern side of Bani Point, screw pine is the dominant vegetative cover together with bamboo and "ta/isay". Outside of the MCFTPP site and within a radius of 10 km grasslands and shrublands comprise the most predominant vegetative cover (44 per cent).

~~ Ricefields and mango orchards comprising only 30 percent of the total land area. '.:~F

18. The pygmy swiftlet and tree sparrow were the most common bird species observed at the Project site. The house shrew and house rat were the mammalian species

noted, while the giant toad was the lone amphibian species recorded. The house lizard and

Philippine brown skink were the reptilian species observed in the area. Among the arthropods Arachnids belonging to Family Araneidae (spiders) and insects belonging to Families Formicidae (ants), Lygaeidae (bugs) and Sciomyzidae (marsh flies) comprised the majority of specimens collected and identified at the study site.

19. Freshwater phytoplankton at lauis River is dominated by pennate diatoms such as Navicula sp., PJeurosygma sp., and Pinnularia sp. The calanoid copepods are the most common zooplankton, while Malanoides sp. is the most abundant freshwater benthic fauna. Tilapia and catfish are the most common freshwater fishes.

20. The coastline of Oyon Bay starting from Bani Point up to Oyon Point measures 8.5 km. The bay has a total area of 5 km2, of which 4.06 km2 is the habitat for seagrasses, corals, mangroves, and associated organisms. The coastal areas of Oyon Bay at its northwestern and eastern fringes are mostly bordered by fringing reefs with associated communities such as seagrass beds and algal flats. The reef sites are characterized by relatively wide reef flats that gently slope to seagrass and algal beds and coral reefs. Small shoals are also scattered inside the bay. Residual mangrove stands are found along the eastern and southeastern shores of the bay. Bacteriastrum sp. and Chaetoceros sp. dominate the marine phytoplankton community during the sampling in both the wet and the dry season. Although red tide caused by Pyrodinium bahamense var. compressa is reported to occur in nearby Masinloc Bay, no such occurrence has been recorded in Oyon Bay. The studies at the six sites inside the bay and the one outside the bay reveal that corals are slowly being degraded by natural and anthropogenic sources. The coral cover in the bay is generally poor (0-25 percent live coral cover) to fair (26-50 percent live coral cover). The highest percentage of live coral cover (63.3 percent) was noted at the station situated outside Oyon Bay near San Salvador

Island (about 2.5 km south of the MCFTPP site) in Masinloc Bay where a marine reserve has been established. The average percentage of live coral cover inside the bay was 33.5 percent, the highest percentage was 46.4 percent and the lowest percentage was 27.1 percent. The reef flats are dominated by tabulate Acropora sp. and massive Porites sp. corals. Along the reef crest and slopes, encrusting Ga!axea sp. and Montipora, massive Favia sp. and Favites sp., foliate Pachyseris sp, branching He!iopora and solitary Fungia sp. and Herpo!itha were noted. t I j 6 " . 21 . Residual stands of mangrove forests are found along coastal areas of Oyon Bay starting from Oyon Point up to Barangay Taltal. The mangroves are mostly secondary growth and occur in scattered patches. The mangrove species found were Avicennia sp., Sonneratia alba, Rhizophora mucronata, Scyphiphora hydrophy/lacea, and Avicennia officina/is. The major cause of loss of mangroves in Oyon Bay was that the area was converted to other uses such as fishponds and cutting trees for fuel and construction material. There are no mangroves at the Project site. The seagrass beds in the bay are dominated by Thalassia hemprichii, Ha/ophi/a ova/is, and Enha/us acoroides. The average density of seagrasses is 575 shoots per m2 during the dry season and 1250 shoots per m2 during the wet season. Other species present are Cymodocea serrulata, Ha/ophi/a minor, Halophi/a uninervis, Cymodocea rotundata, and Syringodium isoetifo/ium. The seagrass beds in Oyon Bay belong to the disturbed and altered categories. The disturbed seagrass habitats in the bay are found along its western and eastern sections in characteristically high or low diversity areas and occupying small coves. In Oyon Bay, this category of seagrass habitat is associated with the effects of the conversion of mangrove areas into fishponds, cutting the trees for domestic uses, and surface runoff from upland areas around the bay. To a certain extent, the disturbance may have been caused by

unsound fishing practices such as the haphazard placement of fish enclosures. The altered A

seagrass habitats are found along the northern and southern portions of the bay. These are ~ areas of low cover, density, and species diversity, either permanently and completely changed and converted to other uses like fishponds, or constantly impacted by waves, tidal influences, and other natural elements in such a way that their natural structure no longer supports lush vegetation. Thirty-one species of seaweeds were found along Oyon Bay. In terms of cover, the seaweed community in the bay exhibited poor values (0-25 per cent cover). 22. A total of 192 species of fish belonging to 31 families were recorded during the underwater surveys in the seven sites around Oyon Bay. Species from family Pomacentridae (damselfishes) and labridae (wrasses) were the most common. large numbers were found in all reef sites especially the species Pomacentrus philippinus, Pomacentrus bankanensis,

Cirrhilabrus cyanopleura, Thalassoma hardwicke, and Pomacentrus lepidogenys. The next most common species belong to families Acanthuridae and Scaridae. Milkfish fry is collected along the coastal area near the mouth of lauis River. The average catch per year of milkfish fry is 1,739,000 pieces. Of the 728 households in Barangay Bani, 98 depend on fishing for their livelihood. The bay is experiencing heavy fishing pressure, however, given enough time to 0 recover, it has the potential to yield sustainable amounts of fish because the area serves as a nursery ground for some fish species especially commercially important species.

23. The quantitative and qualitative survey of soft bottom benthos in the bay resulted in identification of 64 taxa belonging to 12 phyla. The dominant taxa were Foraminifera, Nematoda, Pelecypoda, Polychaeta, Copepoda, and Amphipoda. There is a relatively high diversity and abundance of soft bottom benthos. 24. No rare, endangered, or threatened floral or faunal species are present at the proposed Project site and surrounding areas.

3. t:luman Environment 25. The study area covers the Region (Region III), the province of Zambales, the municipalities of Candelaria and Masinloc, Barangay Bani and the DIA. The Central Luzon Region had a population of 6,188,716 in 1990. The population grew at an average annual rate of 2.6 percent from 1980 to 1990, which is 0.23 percentage points higher than the average annual growth rate for the economy for the same period. With a land area of 18,231

km2, the population density in the region is 340 per km2 which is 68 percent more than the population density for the country of 202 persons per km2. The average household size in the 7

region is 5.3 which is slightly smaller than that in the country which is 5.6 members per

household.

26. The province of Zambales is composed of thirteen municipalities covering 3,614 km2 or 20 percent of Region Ill's total land area. It has a comparatively sparser population density of 152 persons per km2, which is 75 percent of the country's average. The average annual population growth rate was 2.5 percent in Zambales for the period 1980-1990, which is lower than the population growth rate in Region III by 0.06 percentage points and the population growth rate in the country by 0.17 percentage points.

27. Large portions of Candelaria and Masinloc municipalities in Zambales are within the 1O km radius of the proposed Project. Cumulatively, Candelaria and Masinloc cover about an area of 743.6 km2. Their combined population in 1990 was 50,872 which was just 9 percent of the total population of the province that year. The average annual population growth rate for the period 1980-1990 was lower in Masinloc and Candelaria than in Zambales by 1.7 percent. The population density was 68 persons per km2, which is very sparse compared with the r~

,~y population densities in the province and in Region III. 28. The proposed Project complex will be located in Barangay Bani in Masinloc. The barangay had a total of 375 households and a population of 2,085 in 1990. It accounts for only 1 percent of Masinloc's land area and a mere 6 percent of the municipal population. It has the same average household size as the national average of 5.6 members per household. 29. Agricultural lands comprise almost 80 percent of the total 149.5-ha in the DIA. These agricultural lands are mainly planted to rice and mango. About 2.5 km across from the proposed plant site at Oyon Point is the Benguet Consolidated, Inc. pier that has been used to loading chromite ores in ocean-going vessels for export since the early 1900's. At anyone time, several thousand tons of ore may be stockpiled at the pier area awaiting shipment. More

recently, in the late 1980's, the Faculdo pier located 1 km east of the northern portion of the plant site began to be used. Faculdo hold a lease for a much smaller chromite mining area than Benquet Consolidated Inc. There are plans to develop agro-industries in Masinloc by establishing a ripe mango vapor treatment facility (targeted to serve the export market), a ceramic factory, food processing plants, ice plant, and a port, among others. The commercial and market area will be expanded by reclaiming land from Masinloc Bay. The Masinloc Comprehensive Development and Land Use Zoning Plans have designated the Project site as an industrial zone.

D. Projected Impacts and Planned Management Measures

1. Air Quality 30. In 1992, a Danish consulting firm under a Bank-financed technical assistance grant restudied atmospheric pollution dispersion of MCFTPP. Air quality modelling was undertaken with the objective of evaluating the impact on air quality of the entire MCFTPP. The calculations were based on the Danish AIRDISP model, a Gaussian dispersion model which takes into account both local meteorological data and terrain levels. The local meteorological data was based on the reports from the PAGASA weather station at Iba for 1981-1990. The model was used to predict ambient ground level concentration of sulfur dioxide (S02)' nitrogen dioxide (N02) and air particulates (AP) for Phase I and the Project (600 MW) with both operating and using the eight types of coal that will be used by the proposed Project.

31. The coal particulates with ash content ranging from 5.3 to 19.5 percent by weight will be collected by using electrostatic precipitators with an over 99 percent efficiency to yield 8

a guaranteed particulate emission at the stack exit of 200 mg/Nm3 based on the coal with highest ash content (Australian Lithgow). The particulate level of emissions from Phase I and the Project will be lower than the DENR emission standard of 300 ~g/Nm3. The ambient ground level concentrations will increase with the addition of the second unit but will remain within the DENR standard of 300 ~g/Nm3 as shown in Appendix 7.

32. S02 is a by-product of combustion of coal containing sulfur. The Project will utilize coal with sulfur content ranging from 0.3 to 0.76 percent (Ping Shuo coal will be blended with

Blair Athol and Kaltin Prima) to meet the DENR emission standard of 1500 mg/Nm3 of 8°2' The calculated S02 emissions from Phase I and the Project range from 574.7 mg/Nm3 to 1500

mg/Nm3, all are within the DENR standard of 1500 mg/Nm3. The predicted ambient 8°2

concentrations will comply with the DENR standard of 470 ~g/Nm3 (ninety-eight percentile [98th] values for 30-minute sampling). The calculated ninety-eight percentile of 8°2 concentration values with only Phase I operating range from 27.4 ~g/Nm3 to 84. 7 ~g/Nm3. With the Project,

the ninety-eight percentile of 8°2 concentration values increase to a range of 47.4 ~g/Nm3 to

113.1 ~g/Nm3. The predicted ambient 8°2 concentrations when Phase I and the Project are

operating is shown in Appendix 8. If only Phase I or the Project is operating, the 8°2 A concentrations will be half of these values. t7:d

33. The rated NOx emission of MCFTPPwill be 751 mg/Nm3. The DENR standard for NOx is 1,500 mg/Nm3. Low NOx burners and a two-stage combustion system will be used to suppress the generation of NOx by creating fuel-rich and then fuel-lean regions, thus lowering combustion temperature. The predicted increase in maximum ambient ground level concentration (from 124.8 ~g/Nm3 to 249.6 ~g/Nm3) is due to the increase in capacity from 300 MW (Unit I only) to 600 MW (Phase I and the Project) and resulted in NOx concentration levels lower than the DENR standard of 260 ~g/Nm3. The predicted values are in Appendix 7.

34. The plant will use a dust-free, continuous type coal unloader and water sprayers at the coal yard to suppress coal dust generation during stacking and reclaiming operations. The height of fall of coal from the stacker will be made as low as possible during stacking and

stackers will not be operated at wind speeds higher than 5 mps. The coal conveyors will be completely covered to avoid coal dust dispersion during coal transport from the pier to the coal

yard to the power plant. Tall trees will be planted around the plant complex to reduce coal dust 0 dispersion, and to attenuate the noise from the plant and shield the coal yard from view.

2. Noise Impacts

35. Noise levels will vary from 65 db at 20 meters from the power house to 50 db outside the plant complex during daytime. During nighttime, when the coal handling facilities are not operating, the expected noise level outside the plant complex will be close to the background noise level. To control noise generation within the ambient and occupational standards, the measures to be implemented include: (i) using low noise equipment; (ii) installing of soundproof walls and doors; (iii) installing fans, pumps, compressors, and motors indoors; (iv) providing the steam vents with silencers, (v) operating the coal stockyard and ash disposalplanted ~tharea trees. o.nly during daytime, and' (vi) enclosing the coal yard by an earth embankment

3. Water Quality 36. The raw water and the processed water requirements of the Project will be sourced from the lauis River. Potable water to be used during operation will be derived from the MWD. During normal operation, the Masinloc Plant (Phase 1 and the Project) will require 1500 m3 of fresh water and 20 m3 of drinking and domestic water. Part of the financial . . 9

assistance accruing to the municipality from the Department of Energy Act of 1992 will be used

toupgrade andexpand MWD toallow itto service the domestic water supply needs of the plant and the resettlement area. The municipal government of Masinloc imposed this condition on the proponents of the Project so that it will have control over the extraction of the ground water resources in the area. 37. A small concrete weir will be constructed along an intake area located near the confluence of north and south branches of the lauis River. The withdrawal of freshwater from the lauis River for the Project will not significantly affect the volume of water and habitat of fishes and other organisms downstream of the intake because only a maximum of 0.0185 m3js will be drawn for operations during Phase I and 0.029 m3j3 for operations during Phase I and the Project. These are lower than the 25-year annual average flow of 25.9 m3jsec, for the lauis River. The lauis River is presently utilized primarily for Bani's communal irrigation system. During the dry season, the maximum irrigation diversion requirement is 0.405 m3jsec. Thus, the irrigation water requirement plus the Phase I and the Project water requirement of 0.029 cu mjsec equal 0.434 m3jsec which is still slightly lower than the minimum discharge of the lauis 6 River of 0.451 m3(sec with return period of once every ten years. Therefore, the lauis River can supply sufficient processed water for the plant. During drought years, the processed water for the plant will be obtained from deepwells of the MWD. This arrangement has been cleared with the MWD, which is operated by the Masinloc municipal government. 38. The operation of the Project will produce wastewater from boiler blowdown, domestic wastewater, laboratory drains, oil containing effluent, coal yard effluent, and ash

treatment effluent. Plant inspection and maintenance will also produce wastewater such as condenser leak test effluent, boiler and generator washing effluent, and boiler chemical cleaning

waste liquid. The proposed Project will utilize the wastewater treatment facility constructed in

Phase I, which is designed to accommodate the additional wastewater discharge from the Project. This facility consists of coagulation and sedimentation tanks, neutralization tanks,

storagetanks, filters, oil-water separators, and pH control system. A sedimentation basin will be provided to remove suspended solids from the ash disposal and coal yard areas. All liquid

effluents discharged from the proposed plant will meet the DENR effluent standards. The expected effluent quality of the proposed power plant is shown in Appendix 9. The sludge

underflows will be dehydrated, compacted and directed to a sludge thickener to increase solids content to 10 to 15 percent. The thickened sludge will be dewatered and hauled to the ash disposal area. 39. To prevent contamination of groundwater with leachate from the ash disposal area, a dry disposal method will be employed. The embankments and portions of the bed or floor of the ash pond will be lined with impervious materials such as clay. The embankments will contain the ash and the rainwater from entering the ash disposal area. The water will be directed to the sedimentation basin to remove settleable materials, then to the curtain wall to retain floating ash and to the neutralization tank for pH adjustment before discharge. The ash disposal area will be surrounded by a green belt to reduce the wind speed and improve the

aesthetics of the area. The ash disposal area and related infrastructure is designed to handle the additional ash generated by the Project for 20 years.

40. Seawater will be drawn into the plant at 28°C to 31°C to serve as condenser coolant and discharged back to the sea with a 7°C rise in temperature to 35°C-38°C. The discharge structure is an open canal, surface discharge type and extended to 650 m from the shore to limit the area of the sea affected by the thermal plume with minimum a 3°C rise in

temperature. Simulations of excess temperature (. T) at the receiving water from the discharge of Phase I and the Project of 29 m3Jsec of cooling water heated rc above the intake temperature show that areas influenced by excess temperature greater or equal to 3°C are

~ 10 - . <0.05 km2 (average) and 0.05 km2 (maximum). In the design of the cooling channel, provisions will be made to install an auxiliary pump to provide additional cooling water for dilution of warm effluents, if needed. A velocity reduction cap will be installed at the top of the cooling water intake to minimize the entrapment of fish. 41. The maximum allowable rise in temperature for Oyon Bay (Classified by DENR as Class SC Water; i,e., areas suitable for boating, commercial and sustenance fishing, and fish and wildlife sanctuaries) is 3°C. The areas influenced by excess temperatures 2: 1°C are 0.9 km2 (average) and 1.9 km2 (maximum). The temperature increase at the intake because of recirculation has been calculated to be 0.8°C (average) and 1.3°C (maximum) in the simulation period. Except for the area around the outfall, the average excess temperature in Oyon Bay will

be < 0.5°C, andthe impact on the north coast of SalvadorIsland will be evenless and confined to short reaches of the coastline. The excess temperature on the sanctuary west of San Salvador Island is insignificant, and there will be no biological impact. A plot of the predicted increase in water temperature at Oyon Bay and the types of marine communities within the thermal plume is in Appendix 10. @ '.' . " 4. Sociocultural Impacts

42. As provided for in Republic Act No. 7638, the Department of Energy (DOE) Act

of 1992, NPC will be required, once the Project starts operation, to set aside one centavo

(PO.01) per kilowatt hour of the total electricity sales for the local government unit (LGU). With the operation of the Project, during Phase I, the LGU is expected to receive P36.8 million ($ 1.4 million) annually. Twenty-five percent of this amount or P9.2 million ($ 0.35 million) will be used for the electrification of the rest of Masinloc, the other 25 percent will be used for additional livelihood projects and the remaining 50 percent or P18.4 million ($ 0.7 million) will be used for reforestation. The Livelihood Fund will be allocated as follows: Zambales, 25 percent; Masinloc, 25 percent; Barangay Bani, 20 percent; and Region 111,30 percent. The Electrification Fund and the Reforestation Fund will be used by the host LGUs to finance their own projects. In addition to the financial benefits from the DOE Act of 1992, the Local Government Code (LGC) of 1991 requires NPC to pay real estate and franchise taxes. NPC was exempt prior to the LGC of 1991. The annual real estate tax amounts to 01'3.6 million and the franchise taxes, 01'30.3 million. The 01'33.9million is almost seven times more than the 01'5million in income of Masinloc in 1990. 0 Because of the mandated benefits for local communities from power projects, there is now competition among LGUs to host thermal power projects and requests from local officials to NPC to study the hydropower potential of the rivers in their provinces.

43. In accordance with the hiring policy of NPC, qualified applicants from Barangay Bani and Masinloc will be given priority in employment in the facilities provided under the Project. With the development and livelihood funds granted by NPC to Masinloc, the municipality has provided skills training in carpentry, masonry, electricity, electric welding, and college scholarships in engineering courses for the residents of Bani and Masinloc. After the power plant is constructed, the selected workers will be trained for jobs in power plant operations and employed at the power plant. The small increase in direct and indirect employment for Masinloc residents and the increase in demand for materials, supplies, and other basic commodities is expected to increase individual and household incomes as well as improve the local economy. 44. NPC will procure supplies and services from Masinloc and Zambales whenever possible. NPC will also provide a reliable power supply to the host LGUs and the Central Luzon

Region by giving them priority when there is an energy shortage. Masinloc and Zambales will benefit from the additional income generated primarily through increase in taxes. They will also benefit from the financial assistance and infrastructure projects provided for in the memorandum 11 of agreement totaling P252 million ($ 9.7 million). The use of less expensive coal instead of fuel oil for power generation will benefit the Philippine economy because it will translate into a foreign exchange savings of $ 15 million annually. Furthermore, the additional 300 MW to be generated by the Project will help stabilize power supply in the Luzon Grid and support

economic growth.

5. Public Health Impacts 45. No significant potential health risk will arise from the atmospheric emissions from the operation of the Project because measures have been instituted to ensure that the plant's

emissions and effluents will be well within DENR standards.

46. During the construction of the Project, the workers will be required to wear protective clothing and will be trained and monitored to ensure proper health and safety procedures are being implemented in accordance with the occupational health and safety

-" policies. .~~:-t.

Risk Assessment

47. The potential risks of the Project are low. The risk from high sulfur dioxide emissions will be reduced by using the proper type of coal or coal blending, and conforming with DENR emission and ambient standards. The long term fuel supply contracts with suppliers will ensure this type of coal is available. The plant will be maintained properly to keep NO2

emission within the boiler manufacturer's guaranty level of 751 mg/Nm3 (the DENR emission limit is 1,500 mg/Nm3). If the electrostatic precipitator efficiency drops to a level that will cause the

particulates in the flue gases to exceed the DENR 300 mg/Nm3 emission limit, the plant will be

derated or shutdown. Then the electrostatic precipitators will be repaired and maintained to achieve their required efficiency level. 48. The Project will be designed and constructed to resist natural disasters such as earthquakes, floods, typhoons and tidal waves. The acceleration coefficient used in the design of the plant will be in accordance with the seismic zone classification of the Government of the as required by the Structural Code of the Philippines and other relevant international standards.

49. Specific procedureshave been developedto reduce the impact of accidental oil spills. The required facilities and equipment to be procured by NPC include oil and water separators, skimmers, booms, sorbents, and motorboats. Other NPC projects have also similar and compatible equipment which could be mobilized in case of large oil spills. In addition, NPC has a standing agreement with the oil refineries to cooperate in case of large oil spills beyond the capability of the individuatcompanies.

50. The plant will be provided with fire fighting systems and equipment to control fires. Water will be made available from the plant's water supply system. A fire alarm system will also be installed.

F. Monitoring and Institutional Plan 51. The environmental monitoring programs and organization for Phase I will be adequate to cover the Project. Even prior to the construction of Phase I, a Multipartite Monitoring Committee was formed in coordination with EMB-DENR and composed of representatives from NPC, LGUs, local communities, NGOs, and EMB-DENR. This Committee met with NPC's environmental and project management staff and worked out an environmental monitoring plan 12 - . for the Project. The environmental quality parameters to be monitored, the frequency of monitoring, and the procedures to be used for monitoring are shown in Appendix 11. The locations of sampling stations are shown in Appendix 12. The MCFTPP Multipartite Monitoring Committee, which is chaired by the mayor of Masinloc, reports to the Multipartite Management Group headed by the Technical Director of DENR Region III. The composition of the MCFTPP Environmental Management Group and Committee is shown in Appendix 13.

52. Public health, particularly the incidence of respiratory diseases, will be monitored

regularly every two years. The work place, and the health of the workers will also be monitored and personnel will be trained to ensure early detection and immediate remedies for industrial health and safety risks. An Occupational Health and Safety Program Plan (OHSPP) developed in accordance with requirements of the Department of Labor and Employment will be implemented. This will ensure that plant personnel are informed about the health and safety hazards associated with the plant and provided with the necessary protection measures to minimize work-related risks and hazards.

53. The population size, vitality, and distribution of the following aquatic life will be ~ monitored: (i) corals and coral reef fish communities (percentage area cover of live and dead v corals, species, abundance, size, and biomass of fishes); (ii) fish fry at the collecting ground (species, abundance, and pieces collected); (iii) seaweed communities (list of species, percentage cover of dominant species); and (iv) seagrass communities (list of species, percentage cover, and biomass). A periodic monitoring program of crop production will be implemented to determine the possible effects of long-term exposure to the different levels of

acid rain and ambient pollutant concentrations. The studies will focus on mango and rice, the main crops cultivated around the power plant site.

54. Environmental management is the responsibility of the Project Manager through the Environmental Management Section (EMS) under the Project Management Office for MCFTPP. The EMS is administered at the site by the Project Manager, but supervised by the

Environmental Management Department at NPC's head office. This Department is multidisciplinary with staff with graduate level training and extensive experience in power plant

environmental management. The EMS of MCFTPP will have a maximum staff of 22 during the

peak phase of construction, and will be headed by an engineer (pollution control officer) and 0 assisted by a biologist, two engineers, a chemist, a community development specialist, and environmental technicians and laborers. Any environment-related accidents will be reported immediately to the Project Manager, who will report them to the Environmental Management Department, the President of NPC, other departments (such as the Safety Department), and other Government agencies as required by law depending on the nature of the accident. The regular functions of the EMS is to assure compliance of contractors with the provisions of the environmental compliance certificate, memorandum of agreement, and tender documents and to implement the planned environmental and management measures of the Project. 55. An organization to improve the fishermen's technical and scientific expertise to maintain the sustainability of the yield in the area will be developed. The program will include: (i) rehabilitation and enhancement .of critical habitats specially mangrove reforestation, deployment of artificial reefs, establishment of community-based marine reserve, and seagrass transplants; (ii) rehabilitation of linked habitats, specifically the reforestation of lauis River watershed; (iii) alternative livelihood projects for fishing families; (iv) mariculture development projects; and (v) assessment and monitoring of marine ecology and water quality during construction and operation. 13

G. Alternatives

56. Electric power demand in the Philippines increased at 5.38 percent per annum from 1986 to 1991 and 5.83 percent per annum from 1991 to 1995 despite the demand side management strategies applied by the Government to suppress unnecessary power consumption. In 1991-1992, the Philippines experienced severe power shortages that resulted in load shedding for five to twelve hours per day. Industries, commercial establishments, institutions, and households purchased individual electric generators. The large commercial and industrial establishments purchased diesel-powered electric generators while the households purchased the two-stroke gasoline generators. The electric generators were often rebuilt and reconditioned units without any noise and emission controls. The generators, especially the two stroke engines have a low energy utilization efficiency and produced hydrocarbons and particulate. Eight million people in Metro Manila were subjected to serious health hazards from the emission of the electric generators, and the noise caused serious social disturbance, especially at night. During this period the incidence of respiratory diseases within Metro-Manila (& increased by more than 20 percent based on hospital records. The increase could be higher because poor people usually do not go to hospital for minor ailments. A number of fires and \~3 deaths have been reported because of unattended candle and kerosene lamps during load shedding especially in the slum areas and low middle income housing where the residents are not financially able to buy their own electric generators. 57. A site selection study conducted by NPC in 1988 chose Masinloc over several other sites in Luzon for the coal-fired thermal power Project. The feasibility study for the Project was funded by Japan International Cooperation Agency (JICA) and prepared by the Japan Electric Power Development Corporation (EPDC), which finalized the design and concept for the

power plant. NPC conducted an EIA study for the Project from 1989 to 1990.Prior to conducting the study, NPC consulted the municipal officials and residents in Masinloc to inform them about the Project and to request permission to conduct the EIA study. The Masinloc site was selected because it has the following advantages: (i) the inland ash disposal site is close to the proposed plant (as opposed to the other sites that need offsite or offshore disposal), (ii) the bedrock is

closer to the ground surface, thus, the construction cost of the foundation will be lower compared with the other sites, (iii) the offshore coal conveyor and cooling water intake and discharge facilities are shorter, (iv) the plant site can be expandedboth inland and offshore, (v)

freshwater is available, and (vi) the environmental (ecological and social) impacts will be less, (vii) low population density of the area, and (viii) it balanced the location of the power plants in relation to major load areas. 58. The best alternative to the proposed coal-fired power plant is an oil-fired thermal power plant that generates the same energy as the coal-fired power plant. The choice of the oil- fired alternative depends on the urgency of the plant, its economic reliability and its response to load. The coal-fired alternative was selected based on long range economic projections. Fuel oil is more expensive than coal and this cost relationship is expected to continue in the future. To safeguard national interest especially on the reliability of the supply and price fluctuation of energy sources, the Department of Energy has to diversify the sources and type of fuel. NPC

is currently pursuing the development of geothermal energy, hydropower, natural gas power thermal power plants and small hydro electric power. NPC has also started a demand side management program to maximize the efficiency of power utilization. NPC is also developing solar energy, wind, biomass and other renewable energy sources. The coal-fired plant would also assist NPC in improving its mix of hydro, geothermal, coal, and oil-fired power plants. 14

H. Benefit-Cost Analysis 59. The evaluation of the proposed Project yielded a financial internal rate of return

(FIRR) of 18.5 percent, and an economic internal rate of return (EIRR) of 27.9 percent. The assumptions used for the evaluation were:

(i) a plant service life of 25 years; (ii) the estimated total cost of $1 ,152 million (incorporating the cost of $95.85 million for environmental protection measures shown in Appendix 14) includes the cost of (i) both stages of the MCFTPP (600MW), (ii) the transmission line from Masinloc to Labrador (iii) 33 percent of the costs of the 500-kV transmission line from Labrador to San Manuel and to San Jose and (iv) 33 percent of the costs of 500/230 kV and 230 kV substations; (iii) the annual fixed operation and maintenance (O&M) costs are 2.5 percent of total costs for transmission lines and substations; (iv) the variable O&M costs are P 0.067 per kWh and the fixed O&M costs are $5.3

million per year for the Masinloc plant; .~ v (v) the annual sales to the Luzon Grid will be 3,641 GWh based on 3,942 GWh of generation with losses of 7.6 percent from consumption at the power plant and transmission losses; and (vi) the average tariff for NPC for the Luzon Grid of P1.87/kWh in 1994. The economic analysis was based on : a) a standard conversion factor of 0.83 applied to all local costs; and b) incremental output from the Project based on a resource saving valued at P 0.36/kWh above MERALCO's consumer tariff of P2.76/kWh.

I. Public Involvement 60. The completed EIA report was submitted to the EMB-DENR on 21 September 1990. A public hearing on the EIA was conducted at the Masinloc Elementary School in February 1991. To promote people's awareness about the Project, NPC then published and distributed a primer that contained information about the Project. After holding a special public

hearing on the project, the DENR issued the environmental compliance certificate for the Project 0 on 18 December 1992. A Multipartite Masinloc Project Management Group was formed as specified in the memorandum of agreement entered into by DENR, the provincial government of Zambales, the municipal government of Masinloc, the barangay of Bani, the DOE and the NPC on 2 May 1993. The memorandum of agreement covers among others, the resettlement program and the benefits to be derived by the residents affected by the Project.

J. Conclusion

61. Based on the assessment of the environmental and socioeconomic aspects of the project and that NPC has undertaken to meet the commitments described above, it is concluded that all environmental, occupational, health, safety and socioeconomic impacts of the Project can be mitigated to levels that fully comply with all applicable international guidelines and the requirements of the Government of the Philippines. 15

1 Plant Layout 16

2 Coal Data Analysis 17

3 MCFTPP Mass Balance 18

4 MCFTPP Environmental Protection Measures 19

5 MCFTPP Compliance With DENR's Emission Limits 20

6 Water Quality of Lauis River 21

7 MCFTPP Compliance With DENR's Ambient Air Quality Standards 23

(:5 8 Predicted Ambient Ground Level S02 Concentration 24

9 Expected Effluent Quality 25

10 Calculated Maximum Excess Temperature and Marine 26 Communities in the Proposed Discharge Area

11 MCFTPP Environmental Monitoring Program 27

12 Location Map of MCFTPP Environmental Monitoring Stations 28

13 MCFTPP Multipartite Management Set-up 29

14 Environmental Management Measures Cost Estimates 30 Appendix 1

" .

\' 17 Appendix 2 COAL ANALYSIS DATA LIST

(MCFTPP SEIA) ~\

'!~"":':5:

19 Appendix 4

t- W -, 0 H: U')a:: Ww 0:::5: ::)0 ~a- W~ ~<1: ~ za:: OW -:I: bt- wo b~ 0::- a..~ ~ ~<1: ~8 Zu ~g Z6 OU) ~~ > Z:5: W~ 0 ~ X (\J 20 Appendix 5 . .

MCFTPP Compliance withDENR AD14 Emission Limits

(MCFTPP SEIA)

()

0

Note: * Ping Shuo coal shall be blended with other coals having low sulfur content to meet the standard 21

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Q).o ~ < - "010 W C~~~;, gwOlOl.D

."OEE~ OEo~"" Z::! . . g .. E 00"0 Q).- I . 0 .-C "0.0 0C Z~OCl.O 23 Appendix 7

MCFTPP COMPLIANCE WITH DENR AO 14 AMBIENT AIR QUALITY STANDARDS (MCFTPP SEIA)

Table 1: Predicted Hourly Ambient Ground Level S02 Concentration, ug/Ncm

* Ninety-eight percentile (98%) values of 30 minute sampling measured at 2SoCand one atmoshphere pressure.

Table 2:: Predicted Hourly Ambient Ground Level NO2and AP Concentrations (based on worst coal, Reit Spruit)

Note: Coal Type

A . Reit Spruit (South Africa)

B - Lithgow (Australia)

C Blair Athol (Australia)

D Ulan (Australia)

E MIM Coal (Australia) F Datong (China) H Kaltin Prima (Indonesia) *Blended Coal I - PingShuo/Blair Athol (65/35) J - PingShuo/Kaltin Prima (65/35) 2. Distance the distance from the source to the receptor with the maximum concentration

(a) at 1.5 km (b) at 12.5 km

(c) at5km

3. Max the maximum 1-hr concentration calculated Mean - the highest mean value calculated in all receptors for the entire period 98th the highest calculated 98th percentile of concentration values, i.e. that this concentration level will be exceeded in 2% of the time and vice versa the concentration value is less or equal to the fraction value in 98% of the time.

4. Met Data - 1981-1990 24 Appendix 8

-.,

t:':;:'\ (i:i;1

0 25 ~dix 9

.. ~ -J ~ :> °- ..-~ ZW W :>a. -Ja. M:t: Wu c~ W- ..- U W a. X W 26 Appendix 10

{)

0 27

Appendix 11

MCFTPP ENVIRONMENTAL MONITORING PROGRAM (~9

Note: (a) Metals - As, Pb, Hg, Cr, Cd, Cu, Fe (b) P - Pre-construction C - Construction phase 0 - Operation phase (c) Follows approved methods of analysis by DENR 28 ~ v

0c 29 Appendix 13 . . 30 Appendix 14 Page 1

ENVIRONMENTAL MANAGEMENT MEASURES COST ESTIMATES Particulars Cost

(In Million US$)* A. NOISE AND VIBRATION COUNTERMEASURES 1. Use of low noise type equipment Included in item A2 2. Use of silencers and impact absorbers such as rubber, polyethylene.neophrene, etc. 1.37 3. Installation of noise shielding walls Included in item A2 4. Use of vibration dampers and correct installation of equipment Included in item A2 5. Periodic noise monitoring and reporting Included in item A2

B. SOX, NOX AND DUST EMISSION COUNTERMEASURES 1. Use of 1% sulfur fuel oil Operational requirement 2. Use of less than 1% sulfur coal Operational requirement 3. Two-stage combustion method Operational requirement (~ 4. Use of efficient electrostatic precipitator with guaranteed dust emission of less than 200 mg/Ncm 9.10 5. Adoption of high stack (150m min.) 5.30 6. Stack monitoring equipment for S02, N02, SPM, opacity 3.40 *1 7. Ambient monitoring insturment for S02, N02, SPM 1.25 *2

C. COUNTERMEASURES AGAINST COAL SPILLAGE FLYING COAL DUST, SPONTANEOUS COMBUSTION, ODOR, ETC. 1 . Use of imported coal Operational requirement 2. Use of continous type unloader 34.90 3. Installation of coal/oil fence Included in item C2 4. Installation of conveyor enclosure Included in item C2 5. Installation of water spray system @ coal yard & SIR Included in item C2 6. Use of trees and other greenery as wind shield 7. Installation of fire fighting system 3.64 8. Use of coal compactors such as bulldozers Included in item C2 9. Installation of coal stockpile temp. monitoring equipment Included in item C2 10. Sedimentation of pit in coal yard; 1 meter high concrete retaining wall 3.16 *3 11. Efficent coal inventory control Operational requirement 12. Provide public access to Oyon Bay No cost implication

Subtotal 62.12 31 App.endix 14 Page 2

ENVIRONMENTAL MANAGEMENT MEASURES COST ESTIMATES ~~

Notes: * 1 Cost of boiler special instruments * 2 Includes water quality monitoring equipment and other laboratoryequipment

* 3 Cost of foundation for coal storage yard * 4 Cost of land reclamation

* 5 Cost of one boiler fee pump