Executive Summary Preliminary Environmental Impact Assessment For Cadangan Pembangunan Industri Yang Mengandungi Sebuah Bangunan Pejabat 2 Tingkat, Sebuah Kilang Setingkat Dan Sebuah Pondok Pengawal, Rumah Pam, Kebuk Sampah Dan Pencawang Elektrik Di Atas Sebahagian Lot Pt 179 (Seluas 3.410 Ekar), Leboh Sultan Mohamad 1/Ku17, Kawasan Perindustrian Bandar Sultan Suleiman, Mukim Daerah Bandar Diraja Darul Ehsan Untuk Tetuan Sinergi Perdana Sdn Bhd Bagi Pembangunan Kilang Memproses Baja.

EXECUTIVE SUMMARY

1.0 INTRODUCTION

This Preliminary EIA report is submitted for “Cadangan Pembangunan Industri Yang Mengandungi Sebuah Bangunan Pejabat 2 Tingkat, Sebuah Kilang Setingkat Dan Sebuah Pondok Pengawal, Rumah Pam, Kebuk Sampah Dan Pencawang Elektrik Di Atas Sebahagian Lot Pt 179 (Seluas 3.410 Ekar), Leboh Sultan Mohamad 1/Ku17, Kawasan Perindustrian Bandar Sultan Suleiman, Mukim Kapar Daerah Klang Bandar Diraja Selangor Darul Ehsan Untuk Tetuan Sinergi Perdana Sdn Bhd Bagi Pembangunan Kilang Memproses Baja”.

This project is subjected under the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 1987, Section 34A of Environmental Quality Act 1974, where Environmental Impact Assessment (EIA) is a mandatory:

Activity 8. Industry

(a) Chemical – Where production capacity of each product or of combined products is greater than 100 tonnes/day.

PEIA is required by the Department of Environment (DOE) as an essential tool in assessing and monitoring the overall potential impacts that may occur from the implementation of the proposed oil palm project in the site and the surrounding environment. This process is a mandatory requirement under the environmental related and amendments gazetted on 9th Jan 1986.

2.0 PROJECT PROPONENT AND CONSULTANT

The project initiator is Sinergi Perdana Sdn.Bhd while Nilaimas Services has been appointed as the Environmental Consultant for the preparation of PEIA report of the proposed project has been approved by the State Government to fulfilling the criteria of Practices Site Assessment (PAT) and Section 34A of Environmental Quality Act 1974 which was required by the DOE of Selangor. Below are the agencies involved in the development of this project:

Nilaimas Services/UniSZA Consultancy Sdn.Bhd ES - 1 Executive Summary Preliminary Environmental Impact Assessment For Cadangan Pembangunan Industri Yang Mengandungi Sebuah Bangunan Pejabat 2 Tingkat, Sebuah Kilang Setingkat Dan Sebuah Pondok Pengawal, Rumah Pam, Kebuk Sampah Dan Pencawang Elektrik Di Atas Sebahagian Lot Pt 179 (Seluas 3.410 Ekar), Leboh Sultan Mohamad 1/Ku17, Kawasan Perindustrian Bandar Sultan Suleiman, Mukim Kapar Daerah Klang Bandar Diraja Selangor Darul Ehsan Untuk Tetuan Sinergi Perdana Sdn Bhd Bagi Pembangunan Kilang Memproses Baja.

Project Proponent/Developer: Landlord:

SINERGI PERDANA SDN. BHD (903305-K) RISDA SECURITY & SERVICES A-6-1 Level 6, Block A, SDN. BHD. (38930-H) Mines Waterfront Business Park, (Formerly Known As SMALLHOLDERS No.3 Jalan Tasik, Mines Resort City DEVELOPMENT SDN. BHD.) 43300 , B11, Jalan Ampang Utama 2/2, Selangor Darul Ehsan. One Ampang Avenue, Off Jalan Ampang, Tel /Fax : 03-89427904 68000 Ampang, Datuk Seri Ibrahim Bin Muhamad(Chairman) Selangor Darul Ehsan. Contact Person: (Senior Manager) Contact Person: (Chief Executive Officer) Mr. Sudarman Ranijan Hj. Sopian Bin Abu Bakar

EIA Consultant: EIA Consultant:

UNISZA CONSULTANCY SDN BHD(1017199-W) NILAIMAS SERVICES (001953513-D) Aras 1, 18A, Jalan PB 9/B1, Presint 9, Bangunan Hal Ehwal Pelajar & Alumni 62000 Wilayah Persekutuan Putrajaya, UniSZA Kampus Gong Badak, Putrajaya. 21300 Kuala Terengganu, Terengganu. Tel.: 03-8940 9959, Fax : 03-89427904 Tel.: 09-668 8818, Fax : 09-662 6862 Contact Person: (General Manager) Contact Person: (General Manager) Tn. Hj Mohd Nawahidudin Bin Mahamad Isa Mr. Roslie Bin Zakarya @ Derahman

Civil and Structural Engineering Engineering Consultant: Consultant:

AC HAIMI JURUTERA PERUNDING 610, Tingkat 6 Blok A, Kelana Square, KAMIL BARDAI ARCHITECT 17 Jalan SS 7/26, , No. 50-b, Jalan Sri Sarawak 19, 47301 , , Selangor Darul Ehsan. 41200 Klang, Tel.: 03-7805 2779, Fax : 03-7805 2775 Selangor Darul Ehsan. Contact Person: Tel: 03-3080 2203, Fax: 03-3324 7703 Ir. Azhar Bin Jailani

Nilaimas Services/UniSZA Consultancy Sdn.Bhd ES - 2 Executive Summary Preliminary Environmental Impact Assessment For Cadangan Pembangunan Industri Yang Mengandungi Sebuah Bangunan Pejabat 2 Tingkat, Sebuah Kilang Setingkat Dan Sebuah Pondok Pengawal, Rumah Pam, Kebuk Sampah Dan Pencawang Elektrik Di Atas Sebahagian Lot Pt 179 (Seluas 3.410 Ekar), Leboh Sultan Mohamad 1/Ku17, Kawasan Perindustrian Bandar Sultan Suleiman, Mukim Kapar Daerah Klang Bandar Diraja Selangor Darul Ehsan Untuk Tetuan Sinergi Perdana Sdn Bhd Bagi Pembangunan Kilang Memproses Baja.

Architectural Consultant: Quantity Surveying Consultant:

LAVENDER ASSOCIATED No. 9A, Jalan Melur 1, Taman Sri Ramal, 43000 , MITG GROUP SDN.BHD. Selangor Darul Ehsan. 2-A Jalan Liku B 8/8, Tel.: 03-8737 8608, Fax.: 03-8737 8609 40100 , Selangor Darul Ehsan.

Tel.: 03-5506 944, Fax.: 03-5501 626

Survey Consultant Mechanical and Electrical Consultant:

MHS SURVEY CONSULTANT NZR TECH CONSULTANCY(002355263-M) EB-4, Ground Floor, Lot 407C Kompleks Diamond, Bangi Business Park, Regency Condominium, Jalan Pelangi, 43650 , 41300 Klang. Selangor Darul Ehsan. Tel.: 03-8925 1052, Fax.: 03-8925 1091 Selangor Darul Ehsan. Contact Person: Tel/Fax: 03-3343 0552 Ir. Muhamad Nazri Tumin

Contact Person: (Manager) Hj. Mohammad Ghazali B. Hj. Abu Laboratory Services:

ENVICHEM CONSULTS SDN. BHD. No. 3A & 3B, Lorong Temenggong 15A, Taman Evergreeen, 41200 Klang, Selangor Darul Ehsan. Tel.: 03-5162 3011/ 5162 3012, Fax.: 03-5162 3013

Nilaimas Services/UniSZA Consultancy Sdn.Bhd ES - 3 Executive Summary Preliminary Environmental Impact Assessment For Cadangan Pembangunan Industri Yang Mengandungi Sebuah Bangunan Pejabat 2 Tingkat, Sebuah Kilang Setingkat Dan Sebuah Pondok Pengawal, Rumah Pam, Kebuk Sampah Dan Pencawang Elektrik Di Atas Sebahagian Lot Pt 179 (Seluas 3.410 Ekar), Leboh Sultan Mohamad 1/Ku17, Kawasan Perindustrian Bandar Sultan Suleiman, Mukim Kapar Daerah Klang Bandar Diraja Selangor Darul Ehsan Untuk Tetuan Sinergi Perdana Sdn Bhd Bagi Pembangunan Kilang Memproses Baja.

3.0 STATEMENT OF NEED

Compound fertilizer is a basic requirement to be given to the plant in the production of higher yields and quality. Elements Nitrogen (N), Phosphorus (P) and Potassium (K) contained in this fertilizer is very important to plant as Nitrogen is used for plant growth and leaf green leaves (green foliage). While Phosphorus is used to strengthen plant stems and roots fertility (strong root) and Potassium is used for flowering and healthy growth.

Currently there are not less than 15 companies involved in NPK compound manufacturing, with 21 fertilizer plants all over the country. Total manufacturing capacity is estimated at 2.4 million tonnes with current production producing 1.8 million tonnes. In addition, it is estimated 300,000 tonnes of complex NPK compound imported into the country.

The needs for Nitrogen (N), Phosphorus (P) and Potassium (K) compound for oil plantation is increasing with the scarcity of field manpower for fertilizer application as well as the agronomics needs for a well-balanced nutrient application to cater the limited timeframe for fertilizer manufacturing activities.

4.0 PROJECT DESCRIPTION

4.1 Project Location

The project site area of 3.410 acres (1.381 hectares) is located approximately within grid coordinates of latitude and longitude of (3°2'14.42"N, 101°22'7.23"E); (3°2'10.57"N, 101°22'12.60"E); (3° 2'4.71"N, 101°22'8.77"E). The nearest towns are and Klang, which is approximately seven (7) km to eight (8) km to east of the project site.

The proposed development is located approximately 10.0 km from west of Bandar Klang, Selangor and it is located about five (5) km from Klang North Port. The proposed site of the fertilizer manufacturing plant can be accessed via paved road covering Klang Straits Highway, Federal Route 20 (FT20). The project can be easily accessed from through Persiaran road continue

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on Lebuhraya Pintasan Selat Utara Baru or Lebuhraya Shah Padu and Leboh Sultan Muhamed I road.

Location of the project site is shown as in Figure 1.

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Proposed Site

FIGURE 1 : Location of Project site

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4.2 Project Concept

The project concept will be involved are construction of a fertilizer plant and office buildings on a total land area of 3.410 acres (1.381 hectares) and also assembly of various machine and equipment for the mixing process and creating a granule. The construction of this project will provide fertilizer for the plantation that belongs to Kementerian Kemajuan Luar Bandar dan Wilayah (KKLW) and to meet the market demand.

The project description for this development and construction of fertilizer plant, it will involve several activities which are outlined as below:

i. Preliminaries and Generals works will include site meeting, mobilization, site clearing, site layout, hoarding and earthwork activity. ii. Building works such as piling, substructure, RC plinth and frame works, roof structure and covering, wall partition, wall finishing, ceiling work and sanitary work. iii. For building external works are surface water drainage, water reticulation work, water tank work, Miscellaneous works, road and car park have been constructed, followed by turfing and cleaning. iv. Preparation plant and equipment. Equipments that involved such as dryer drum, cooler drum, tank farm and boiler. v. Electrical works such as panel fabrication, programming (PLC), cable laying works and painting works. vi. Lastly plant commissioning such as energizing of power supply, commissioning of boiler and air compressor.

5.0 PROJECT OPTION

From the analysis, it appears that the development of the industrial area is the best option available given the socio-economic benefits. It also identified that minimal environment impact generated from the development of the Project.

Nilaimas Services/UniSZA Consultancy Sdn. Bhd ES - 7 Executive Summary Preliminary Environmental Impact Assessment For Cadangan Pembangunan Industri Yang Mengandungi Sebuah Bangunan Pejabat 2 Tingkat, Sebuah Kilang Setingkat Dan Sebuah Pondok Pengawal, Rumah Pam, Kebuk Sampah Dan Pencawang Elektrik Di Atas Sebahagian Lot Pt 179 (Seluas 3.410 Ekar), Leboh Sultan Mohamad 1/Ku17, Kawasan Perindustrian Bandar Sultan Suleiman, Mukim Kapar Daerah Klang Bandar Diraja Selangor Darul Ehsan Untuk Tetuan Sinergi Perdana Sdn Bhd Bagi Pembangunan Kilang Memproses Baja.

Selection of proposed site project is due to the following factors:

i. Location of proposed plant based on the geographical suitability. ii. Supply coverage for central region iii. A fertilizer plant will be much more efficient should the raw materials discharged is within the port vicinity and transferred at the nearby location. iv. Method of discharge by shipment can cut cost and minimize the spillage of raw material v. Suitable land size and area.

Selection of compound fertilizer project is because the compound fertilizer are frequently used because it is more convenient to purchase, transport store, and apply one product than several. The compound fertilizee are often a good choice for providing a basal application of nutrient.

6.0 EXISTING ENVIRONMENT

6.1 Topography

With the area of 3.410 acres (1.381 hectares), the proposed project area is located in the industrial zone with flat lying topography condition.

6.2 Landuse

The proposed project site is within Block Perancangan Klang Utara/Klang Selatan 7 (BPKU/KS7) which is located in Block Perancangan Kecil 7.1 (BPK 7.1) namely in Industrial Planning area. The existing development surrounding Project site can be categorized as mixed landuse that consist of settlement area and industrial area.

There are 5 settlement areas in this zone, namely Kampung Delek located east of project site. Kampung Rantau Panjang and Kampung Rantau Panjang Dalam located

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north east of the project area and Kampung Sireh, Kampung Raja Uda located southeast of project site.

Most major villages are well equipped with modern amenities such as water supply, electricity and facilities such as a community hall, a kindergarten, bus stop, park, surau, mosque, government clinics, etc.

6.3 Hydrology

There is no major water body flowing such as river or drainage systems running around the project site. However, adjacent to the proposed site, the monsoon drain is exists with 8 meters width and 2.5 meters depth. Water from the industrial drainage systems will flow into the Dua which is the nearest river locater 500 m from the project site.

6.4 Geology and Mineral

Geological information on the project site and the surrounding area is obtained from the Geological Map of Peninsular issued by the Mineral and Geoscience Department (2014) indicate that most of the geological structure of the study area is underlain by alluvium generally consisting of quaternary deposits of marine clay, silty sand and clayey sand.

6.5 Meteorology and Wind

The weather comes under the influence of the Asian monsoonal system. The mean monthly temperature at the site is expected to range from 26 oC to 28 oC based on meteorological records from Subang Airport with May the hottest months while November to December is the coolest.

The mean monthly relative humidity was found in ranged from 75.9% to 82.4% during the period from 2004 to 2014.

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The dominant wind during Northeast Monsoon is easterly to westerly while during the Southwest Monsoon, the prevailing wind is northerly to southwesterly. The project site is expected to receive stronger winds from its northeasterly direction at 3.0 – 3.5 m/s while the wind velocity similar to those from the southwest direction.

6.6 Water Quality

Sungai Klang has been classified as Slightly Polluted under Class III of NWQS based on DOE monitoring station located at Pelabuhan Utara. This study found that the main pollutants such as chemical oxygen demand (COD) and biological oxygen demand (BOD) parameters are rather high. The high readings indicate high levels of organic inputs into the drains. Based on analysis, all sampling station around project site has been classified in Class III.

6.7 Ambient Air Quality

According to the DOE (2003), the is the most prone region to serious air pollution compared to other parts of the country. The ambient air quality reading at the project site is still within the recommended limit with the TSP value rather high but still below the limit. All 24-hours averaging time parameters monitored at all stations were observed to be well within the Malaysian Ambient Air Quality Guidelines recommended limits.

6.8 Noise Levels

The project site is located in an industrial area, therefore the sources of noise were

mainly from vehicles and industrial activities. The measured noise level ranged from Leq 58.2 – 64.5 dB(A) for day-time period and Leq 47.6 – 52.3 dB(A) for nighttime period. The overall noise level at the project site is optimum and has no potential annoyance to nearby.

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6.9 Vibration

The results of vibration level that compared with standards of Minerals and Geoscience Department Malaysia (JMG) indicated that the ground borne vibration level was below the safe criteria limit at all locations. Vibration readings for V1 and V2 are 0.831 mm/s and 1.29 mm/s respectively and there is no complaints concerning vibration related damage had been reported by the occupants of the residential premises located near the proposed site.

7.0 BIOLOGICAL ENVIRONMENT

7.1 Flora and Fauna

The vegetation found on the site is not significant as there are only several trees that planted by individual person and grow naturally. While on the surrounding area, there is vegetation area near the flood retention pond located 500 meter from the site that is not affected by the proposed activities. For fauna observation, there is no habitat or animals on the proposed project site or its surrounding

8.0 SOCIAL IMPACT ASSESSMENT

The general perception of the respondents towards the proposed project is good with 78.6% agree to the project proponents to continue the project. The main reasons given were the fact that the project when completed will ’Increase job opportunities’ and ‘Increase local economic growth’. Those who are disagreeing with the project give some reasons regarding on the problem they had face from the currently industry operation for example noise pollution, air pollution until midnight and dust problem.

Overall, they didn’t worried about perceived impacts from the proposed project since some mitigate action will be done to control all environmental issues from the proposed project.

Nilaimas Services/UniSZA Consultancy Sdn. Bhd ES - 11 Executive Summary Preliminary Environmental Impact Assessment For Cadangan Pembangunan Industri Yang Mengandungi Sebuah Bangunan Pejabat 2 Tingkat, Sebuah Kilang Setingkat Dan Sebuah Pondok Pengawal, Rumah Pam, Kebuk Sampah Dan Pencawang Elektrik Di Atas Sebahagian Lot Pt 179 (Seluas 3.410 Ekar), Leboh Sultan Mohamad 1/Ku17, Kawasan Perindustrian Bandar Sultan Suleiman, Mukim Kapar Daerah Klang Bandar Diraja Selangor Darul Ehsan Untuk Tetuan Sinergi Perdana Sdn Bhd Bagi Pembangunan Kilang Memproses Baja.

8.2 Traffic Survey and Assessment

The proposed development will be served by Jalan Sultan Mohamed 1 at Bandar Sultan Suleiman Industrial Park which is linked to Klang Straits Highway or North Klang Straits Bypass, Federal Route 20 (FT20), New North Klang Straits Bypass (E30) and Jalan Pelabuhan Utara, Federal Route 2 (FT20).

A traffic study comprising junction turning movement traffic counts, traffic volumes, traffic composition and V/C ratio was performed. The performance of the intersections as shown by the practical degree of saturation during the morning and evening peak hour for the junction in the study area do not exceed the limiting value of 1.0 which indicates that traffic performance is good at all junction during peak hours. The total peak hour trip generated and attracted by the fertilizer manufacturing plan development is projected at 245 vehicles for the AM Peak Hour and 213 vehicles for the PM Peak Hour. The internal circulation does not severely impact the performance of the intersection and the existing road network.

The result of mid-block analysis indicate that with full operational traffic North Klang Straits Highway, Federal Route 20 (FT20) and Jalan Sultan Muhammad 1 are predicted to operate at acceptable Level of Service D during peak hours in year 2017. It means that the present capacity of these roads is still able to accommodate the future traffic demand in years 2017.

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9.0 SUMMARY OF POTENTIAL IMPACTS AND MITIGATION MEASURE

CONSTRUCTION PHASE Components Potential Impacts Mitigation Measure 1. Water Quality Turbidity and high concentration of suspended Implement soil erosion control measures as solids due to the waterway disturbance, indicated in this report. erosion and surface runoff. Maintenance works of machinery must be Accidental oil and grease spillage from centralized to one location to prevent pollution of vehicles and machinery. the waterways. Impacts anticipated to be transient Store all unused oils in drums for disposal or recycling. Segregate materials used and stored in areas that are protected from weathering. 2. Air Quality Transportation, loading and dumping of raw Watering or dampen the pathway of vehicles. contruction materials (sand, gravel, bricks and Provision of landscaped buffer strip cement, etc.) generate dust. Prohibit open burning Dust widespread during dry and windy days Reduce speed of lorries and trucks on unpaved Reduced visibility and aesthetic value roads surrounding project site Regularly service and maintain vehicles and Impacts anticipated to be transient equipment 3. Noise and vibration Movement of heavy vehicles Proper services and maintenance of vehicles and Equipments and machines during materials equipments handling (cranes and concrete mixers) Use special quieted equipment such as quieted Impacts anticipated to be transient and enclosed air compressor Scheduling the movement of heavy vehicles during day-time only Providing an appropriate buffer zone Equipments that generate noise can be enclosed in noise insulated housing or acoustic covers.

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4. Soil Erosion Water quality degradation Provide site perimeter temporary earth drains Effect aquatic life Long exposure of bare should be avoided. Sediment pond shall be constructed and maintained 5. Waste Sewage from construction Designated collection bins or areas for different Management Sewage generated by the workers during wastes to be recycled or reused construction period Cleanliness and sanitation shall be given top Communicable diseases spread priority Odour, flies and pollution of the soil, water Good housekeeping practices and groundwater regime Collected wastes should then be collected by or sent to recyclers 6. Sosio-economy Overcrowded and cramped base camps Provide base camp with self-contained and proper Construction workers will be exposed to basic facilities possible accidents Follow safe working procedures Increase the potential for social conflicts and public concern 7. Traffic Increases of traffic volume Regularly maintained and cleaned the public roads Deteriorate pavement structure Imposed the speed limit Delay for the traffic on the minor road Plan for movement of equipment and machinery

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OPERATIONAL PHASE Components Potential Impacts Mitigation Measure 1. Water quality Contamination by washing wastes Drained and collected regularly and disposed at approved dumpsite. 2. Sewage Eutrophication within the river Sewage treatment plant must be designed to Management produce standard B of EQ(S)R 2009 Regularly monitor and maintained the project site 3. Noise Noise from pump Noise barrier by landscaping around the site Impacts anticipated to be insignificant 4. Public Health Might provide breeding places for mosquitoes Well-behaved housekeeping and appropriate Vector borne disease waste management Appropriate work attire, mosquito repellents, and applying insecticide. Details of mitigation measures can be referred in Section 9.

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10.0 ENVIRONMENTAL MANAGEMENT PLAN (EMP)

Issues have been identified that have a significant impact and that may arise along the entire plantation could be addressed by the Environmental Management Plan (EMP). EMP serves as an effective tool to reduce the environmental impact caused by the fertilizer manufacturing project. The EMP comprises a structured plan for the mitigation measures of predicted environmental impacts, Environmental Monitoring Program, Environmental Audit and remedial actions. To ensure that control measures are implemented effectively in term of time and place, the EMP can be developed in conjunction with the planning and coordination of construction work. The EMP will be applicable to the contractor and employees who work in the project site.

11.0 QUANTITATIVE RISK ASSESSMENT

Quantitative Risk Assessment (QRA) conducted for the proposed fertilizer factory indicated that risk caused by development projects is minimal. All raw materials are not controlled substances under the Occupational Safety and Health (Control of Industrial Major Accident Hazards) Regulations 1996. Natural gas explosion is the possible worst-case-scenario incident to occur. In addition, natural gas jet fire is also another possible hazard.

12.0 CONCLUSION

The fertilizer manufacturing project proposal contribute to a positive impact compared with the negative impact which increasing the socio-economic status, increased employment opportunities, increased land values and contribute to the development of the industrial area in Klang.

If all recommended mitigation measures has been implement, this project is not expected to have any significant impacts on the environment and the implementation of the project is recommended.

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