“PEIA for A Proposed of Agriculture (Vegetables) Plantation (121.4033 Ha) At PT 5410, , Ulu Nenggiri, Daerah Bertam, Gua Musang, D.N. – EL Matta Sdn. Bhd.”

EXECUTIVE SUMMARY

PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT (PEIA) for A PROPOSED OF AGRICULTURAL (VEGETABLES) PLANTATION 121.4033 HA AT PT 5410, LOJING, MUKIM ULU NENGGIRI, DAERAH BERTAM JAJAHAN GUA MUSANG, KELANTAN DARUL NAIM.

EL MATTA SDN. BHD.

1.0 INTRODUCTION

This Preliminary Environmental Impact Assessment (PEIA) is prepared for a proposed of 300 acres @ 121.4033 ha for the agricultural (vegetables) plantation activity at PT 5410, Lojing, Mukim Ulu Nenggiri, Daerah Bertam, Jajahan Gua Musang, Kelantan Darul Naim. Approval from Yayasan Kelantan Darul Naim (YAKIN), the development of agriculture (vegetables) plantation will be carried out in multiple phase (block development) and zoning with lease period of sixty six (66) years as agreed between two (2) parties EL Matta Sdn. Bhd. and YAKIN as document YKD 9/4/6/S.J.4/(10) and YKD(S) 9/4/6/S.J.4/(12) dated on 4th august 2011 and 7th august 2011. Preparation of this PEIA report is required under Environmental Quality Act (Prescribed Activity) (Environmental Impact) 1987 through Preliminary Screening (PAT) approval letter from Department of Environment (DOE) Negeri Kelantan which is the proposed project is subject to under activity “6(a) : conversion of hill forest land to other land use covering an area of 50 hectares or more”. As such, any question & thing about the project and the PEIA report may relate to the project proponent and the consultant as follow;

EL MATTA SDN. BHD.

NO. 4929-H, JALAN , 15400 , KELANTAN DARUL NAIM. Tel : 09-744 8268 Fax : 09-7448269 Email : [email protected]

GREENHOPE CONSULTANCY SDN. BHD.

LOT 809, TINGKAT 1, JALAN SRI CEMERLANG, 15400 KOTA BHARU, KELANTAN DARUL NAIM. Tel : 09-744 8268 Fax : 09-7448268 Email : [email protected]

2.0 PROJECT LOCATION & PROJECT DESCRIPTION

The proposed project site is located at longitude 101 28’ 47.86”E - 101 29’ 29.29”E and latitude 04 37’ 36.55”N - 04 38’ 27.60”N (Figure 1.0) and is being surrounded with another neighbouring plantation such as Liquid Gold Sdn. Bhd., All Green Agritech Sdn. Bhd., Agridex Sdn. Bhd., Arena Proaktif &

EXECUTIVE SUMMARY 1

“PEIA for A Proposed of Agriculture (Vegetables) Plantation (121.4033 Ha) At PT 5410, Lojing, Mukim Ulu Nenggiri, Daerah Bertam, Gua Musang, Kelantan D.N. – EL Matta Sdn. Bhd.”

Kumpulan Pertanian Kelantan Berhad (KPKB) as per shown in (Figure 2.0). According to Rancangan Struktur Negeri (RSN) Kelantan 2020 and Rancangan Tempatan Jajahan Gua Musang (RTJGM) 2020, the proposed project site has been identified as forest reserve area known as HSK Sg. Brook. Besides, based on “Garis Panduan Pembangunan Kawasan Tanah Tinggi Lojing, 2005” the proposed project site consists of Class I and Class II physical development is scattered area. As for detail to reach the EL Matta Sdn. Bhd. proposed project site, there is one (1) normal route “Lebuhraya Timur Barat – (Gua Musang – Lojing – Simpang Pulai – Kuala Berang) by using Federal Route (D185) it will take about 59 km to reach the boundary of EMSB proposed project site from Gua Musang. The development concept of EMSB proposed project is to carry out the activities of agriculture (vegetables) plantation which is can generate economic growth of Negeri Kelantan. Agriculture activity will be implemented with proper management at the slope below of 25 with activities such as deforestation, site clearance, platform @ terracing activities, planting of various vegetables (tomato, brinjal and French beans), cover crops, maintenance, harvesting & re-planting with three (3) phase development which is pre-development, development and operation phase that involves with period of sixty six (66) years. The development of area will take a period of approximately five (5) to six (6) month depends on the availability of climate and ready for planting the vegetables seedlings before replanting activity being carried out until the end up of leasing period.

3.0 STATEMENT OF NEED & PROJECT OPTION

Malaysia is a newly industrialized economy which is intend to become a developed country by year 2020 and one of economy is contributed by agricultural sector. The important of agriculture is for satisfy human food and fiber needs, increase environmental quality and the natural resources base upon which the agricultural economy depends, organic agriculture can effort export opportunities in the organic market for fruit and vegetables, increase the export of agricultural products to foreign country and the area that involved in the agricultural activities will produce the oxygen for the surrounding area. The present site condition for this proposed project site are suitable for development of agriculture with vegetables plantation because of the suitability of weather and soil type condition. From perspective of project option and no-project option, implementation of this proposed project site can be analyzed based on SWOT analysis as per described in (Table 1.0) and (Table 2.0).

Table 1.0 : S.W.O.T Analysis of “Project On-Option”

Strength Opportunities Weakness & Threats Agriculture (vegetables)  Business opportunities/ profit.  Possible environmental issues Plantation such as environmental degradation, soil loose, sedimentation, erosion, deforestation, habitat lost, land clearance. Soil Type & Weather Suitablity  Industry based on agricultural  Increase or generate the (vegetables) products amount of biomass and develop. domestic waste.  Increase the production of  Huge amount of earthwork

EXECUTIVE SUMMARY 2

“PEIA for A Proposed of Agriculture (Vegetables) Plantation (121.4033 Ha) At PT 5410, Lojing, Mukim Ulu Nenggiri, Daerah Bertam, Gua Musang, Kelantan D.N. – EL Matta Sdn. Bhd.”

agricultural (vegetables) such as land excavation work products. might be need in the particular area. Strategic Location  Added value to existing land.  Agriculture activities limited  Potential to create road access. by slopes.  Using the heavy machineries which can cause the pollution to environment such as a leakage of oil, gas release and others. Economic Sector  Create employment opportunities.  Willingness of man power  Generate income to State and to work in this sector. Federal Government.  Increase the market of vegetables products.

Table 2.0: S.W.O.T Analysis of “No-Project Option”

Strength Opportunities Weakness & Threats Maintain the current existing  Avoid potential environmental  Limited economic activities at environment and landuse. degradation. surrounding area.  No adverse impact to  Lack of revenue for State surrounding environment. Government.  The environmental greenness  The potential of agriculture is maintain. production decrease.  Biomass and vegetation waste  Lost of potential sources for is decrease because there is industry based on agriculture no activities at surrounding products. area.  Unproductive land.  Job opportunities for local people and outside people decrease.  Infrastructure improvement at surrounding area such as road access cannot be develop.

4.0 EXISTING PHYSICAL ENVIRONMENT

Based on topographical survey, the elevation of the project site is ranging from 860m to 1320m above sea level. The highest surface area within the proposed project site is located at southeast site with elevation is 1269m to 1320m. The contour line with the elevation were converted into digital form before process into Digital Elevation Model (DEM) by using GIS software. The process continued by classifying the slopes into 5 groups of agriculture slope and in degree gradient. The slope analysis percentage are ranging from 0-5 (11%), 5-15 (8%), 15-25 (34%), 25-35 (33%) and >35 (14%). Meanwhile, the general geological profile of EMSB proposed project site indicate that the area is situated in the acid instrusive (undifferentiated) formation area. The type of acid instrusive is classified under igneous rocks class. Igneous rocks make up approximately 95% of the upper part of the earth crust, but their great abundance is hidden on the earth’s surface by a relatively thin but widespread layer of sedimentary and metamorphic

EXECUTIVE SUMMARY 3

“PEIA for A Proposed of Agriculture (Vegetables) Plantation (121.4033 Ha) At PT 5410, Lojing, Mukim Ulu Nenggiri, Daerah Bertam, Gua Musang, Kelantan D.N. – EL Matta Sdn. Bhd.” rocks. Based information gathered from Department of Mineral & Geosciences Negeri Kelantan, the proposed project site also is located at outside the potential gold area. Due to local topography and subsurface geology, a drainage system achieves a particular drainage pattern based in the form and texture of its network of stream channels and tributaries. Drainage pattern recognition helps to provide a qualitative description of the terrain for analysis and classification is useful for terrain modeling and visualization to application in environment. For EMSB proposed project site, the main river have been found is Sg. Isos and its tributaries. Sg. Isos and its tributaries will flow to west direction and discharging into Sg. Belatop. Sg. Belatop will flow to Sg. Brook, Sg. Brook flows to Sg. Nenggiri, Sg. Nenggiri to Sg. Galas and finally will discharge into Sg. Kelantan. Implementation of this proposed project site not give any impact to the Water Treatment Plant (WTP) because of different water flow. Based on that, information gathered from Air Kelantan Sdn. Bhd. (AKSB), the nearest WTP is located at southwest which is 5.2 km from the proposed project site. The source of this WTP is from tributaries of Sg. Jelai with capacity of 7.0 MLD and supply water to “Kompleks Pertanian Lojing”. Besides, the nearest “tandak air” is located about 1.56 km northwest of proposed project site which source from tributaries of Sg. Belatop and supplying water to Kg. Sangwai. A part of that, according to soil investigation report produced by Department of Agriculture (DOA) Negeri Kelantan, the study area of EMSB is consists of two (2) soil series which are Disturbland and Steepland. About 32.5 ha (26.7%) of the total area classified as disturbland which is identified the suitable area for vegetable planting activity. While, 89.0 ha (73.3 %) of the total area is classified under steepland which is undisturbed area @ not suitable for vegetables plantation due to steep terrain profile and having risk of soil erosion.

The EIA baseline monitoring for EMSB proposed project site has been conducted on 29th april 2015 to 30th april 2015 were five location sample have been selected for water quality and two (2) location for air quality and noise measurements. River water quality is appraised based on the Water Quality Index (WQI) consisting of six (6) parameter which is DO, pH, BOD, COD, TSS and AN. The river water sampling data then will compared with the National Water Quality Standards for (NWQSM) to determine the water quality status whether classified as clean, slightly polluted or polluted category based on Class I, II, III, IV or V. Based on water quality classification, DOE-WQI, the monitoring points for all monitoring stations for EMSB proposed project site were classified as “clean” which is sampling stations W3 and W5 under Class I while sampling stations W1, W2 and W4 under class II. For air quality, total suspended particulate (TSP) is parameter has been analyzed and the result for A1 & A2 indicates that the current limit set by the Recommended Malaysian Air Quality Guidelines (RMAQG) for TSP which is below (260 µg/m3 below average). While, noise monitoring level at point N1 & N2 for both day time and night time measurement were well within Recommended World Health Organization Recommended Noise Exposure Limit (< 65 dB(A)). For ecological study, there were some species of fauna have been identified, namely 37 species of birds, 7 species of mammals, and 11 species of reptiles & amphibians were recorded at the proposed project site. Meanwhile, 106 species of flora has been recorded at the proposed project site. The ecological linkages provide or restore the connectivity of the forest complexes in the central forest spine (CFS). Based on master plan for ecological linkages, the EMSB proposed project site is located nearest the CFS 1 secondary linkages 3. Besides, the proposed project site also is located within

EXECUTIVE SUMMARY 4

“PEIA for A Proposed of Agriculture (Vegetables) Plantation (121.4033 Ha) At PT 5410, Lojing, Mukim Ulu Nenggiri, Daerah Bertam, Gua Musang, Kelantan D.N. – EL Matta Sdn. Bhd.”

ESA Rank 1 which is no development, agriculture or logging shall be permitted except for low-impact nature tourism, research and education. For Socioeconomic survey, the population in Jajahan Gua Musang for year 2010 was 90,057 which is the highest population with 36,955 people in Galas district, followed by Chiku Disctrict with 26,093 people and the third is Bertam District with 23,141 people. Information gathered from Jabatan Kemajuan Orang Asli (JAKOA) Kelantan & , there is one (1) major Orang Asli settlements located about 1.52 km from proposed project site known as Pos Brooks. Eighteen (18) small villages which is 2.352 people from 40 families. According (PPD) Gua Musang, there were (9) primary school ad one (1) secondary school. However, the nearest school from proposed project is SRK Pos Brook.

5.0 POTENTIAL ENVIRONMENTAL IMPACT

During the agriculture (vegetables) plantation of the EMSB proposed project site, there is three (3) stages of development such as pre-development, development and operational stage. These three (3) stage of EMSB proposed project site development will be go through the process of identification in order to know the potential impact that likely will occur during the implementation of that three (3) stages. The impact during that pre-development stage are insignificant and negligible as the activities conducted, i.e. topographic survey and vegetation inventory; do not need much physical works to be executed. While, the activities conducted during the development stage such as site preparation and clearance activity, forest engineering, including roads and infrastructure can give a potential significant impact to the environment. The most significant potentially adverse environmental impacts foreseen to arise during this stage such as soil erosion, soil loss, sedimentation, water pollution, impact to drainage & hydrology, biomass generation, ecological impact, additional impact and socio-economic impact. There are ten (10) types of soil erosion has been identified which is rain splash erosion, sheet erosion, rill erosion, gully erosion, river bank erosion, channel erosion, tunnel erosion, erosion by water and erosion by wind. The erosion risk for this project under its natural condition is modeled using the Revised Universal Soil Loss Equation (RUSLE). RUSLE is a simple empirical model that is widely used for assessing long-term annual soil loss. The estimation of soil loss using RUSLE of this proposed project site is 2,149.98 (ton/ha/yr) and 43, 737.00 (ton/yr). While, the sedimentation is total sediment yield refers to the total suspended sediment (tss) and bed load sediment discharge from a watershed. The potential sediment yield of this project is estimated using the Modified Universal Soil Loss Equation (MUSLE) an d this empirical relationship is expressed by

0.56 the equation (Y = 89.6 (VQp) (K.LS.C.P). Estimation of sediment yield using (MUSLE) for this proposed project site is 2,151.86 (ton/storm/event) during development and 6,455.57 (ton/storm/event) during post-development.

Implementation of this propose project site also will be impact to water pollution especially due to soil erosion and due to fertilizers and pesticides usage. Eroded soil from EMSB proposed project site will be flow to water bodies especially during rainy season with eroded soil particles will increase the total suspended sediment (tss) and turbidity in river water. The application of fertilizers and agrochemical such as pesticides and herbicides, which contain chemical substances, can deteriorate the water quality of

EXECUTIVE SUMMARY 5

“PEIA for A Proposed of Agriculture (Vegetables) Plantation (121.4033 Ha) At PT 5410, Lojing, Mukim Ulu Nenggiri, Daerah Bertam, Gua Musang, Kelantan D.N. – EL Matta Sdn. Bhd.” waterways of the water bodies within the catchments of the proposed project chemical infiltrations. Impact to drainage and hydrology, when vegetation is removed, the hydrological cycle is changed as water that would have been returned to the atmosphere by means of plant transpiration processes under undisturbed circumstance now remains within the soil layer. Besides, implementation of this proposed project site also might have the potential to result is generation of large quantities of biomass. It was estimated that the amount of the biomass generated during the early stage of agriculture activities is approximately 627.564 tonnes. For the ecological impact, the site preparation activities will be impacts on terrestrial vertebrate fauna which is loss of ecosystems and habitats, loss of fauna, possibility of illegal wildlife hunting and collecting, and possibility of human-wildlife conflict. While the impact for flora is causes loss of many interesting species of flora. Besides that, implementation of this proposed project site also will be effect to additional impact such as sewage generation, pests infestation, traffic, noise and air pollution, silviculture and agronomy, workforce and impact on climate and microclimate. For the socio- economic impact, it will give positive impact for Orang Asli community area especially Kg. Sigar, Kg. Sangwai, Kg. Sensang & Kg. Jedip (might have on opportunity to increase their earning by working at the proposed project site as the plantation workers). Additionally, implementation of agriculture (vegetables) plantation for this proposed project site also will be effect to health and disease for workers especially during the development and operational stage during the use of fertilizers, pesticides and chemical.

6.0 MITIGATION AND ABATEMENT MEASURES

Mitigation and abatement measures are identified to avoid or minimize adverse effects on the environment during the development and operation stage for agriculture (vegetables) plantation as follows;

a) Opening / clearing area should be done in phases.

b) Earthwork to be done in phases and planting cover crops immediately above the exposed area.

c) Provide a sediment or retention pond to trap the sediment and mud to reduce sediment entering the natural drainage and prevent flooding downstream involved.

d) Implement of comprehensive and effective of Erosion and Sediment Control Plan (ESCP) by employing both erosion and sediment “Best Management Practice (BMP’s)” together. Control erosion and sediment with preserved areas as “Undisturbed Area” as per shown in Figure 3.0.

e) Preparation of river buffer zone in the project site.

f) Good Management of biological material produced from clearing / cleaning area. The best alternative seen is the supporting efforts on preservation of ecosystem and habitats nearby where gazetting such habitats and ecosystems are protected areas area critical. A part of that, the project proponent should appoint experienced environmental officer to look this matter and the

EXECUTIVE SUMMARY 6

“PEIA for A Proposed of Agriculture (Vegetables) Plantation (121.4033 Ha) At PT 5410, Lojing, Mukim Ulu Nenggiri, Daerah Bertam, Gua Musang, Kelantan D.N. – EL Matta Sdn. Bhd.”

appointed person is also to work closely with authorities especially Department of Wildlife and National Parks (DWNP) and Department of Environment (DOE).

g) Monitoring of water quality in all of streams, river and major rivers and the discharge of sediment ponds should be carried out during development stage for main parameter such pH, Dissolved Oxygen (DO), Chemical Oxygen Demand (COD), Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), Ammoniacal Nitrogen (AN), Oil & Grease (O&G), dan Eschrichia Coli (E.Coli).

h) Provide a safe and orderly access roads system which is not to interrupt the flow path the village close to the project site.

i) The speed of vehicle in the proposed project site is limited to reduce the noise and generation of airborne dust.

j) Monitoring and traffic movement by workers.

k) Enter and exit of the vehicle in the project site should be cleared first.

l) The using of fertilizers and pesticides are regulated and only at the appropriate time according to the does prescribed and proper use when handling these materials.

m) Lodging employees should be provided with adequate potable water and toilet facilities in accordance with the specification of SPAN, garbage will be collected and sent to a landfill approved by the local authority.

n) A good accommodation needs of workers such as mosquito nets to avoid mosquito bites that’s employees or disease is spread through by water and vector.

o) Examination of health workers in early stage (screening) and level maintenance (periodically) necessary to ensure the health of workers is in good condition.

p) Comply with the Act 154 – Destruction of Disease Bearing Insects Act 1975.

q) The management must report to the District of Health Officer at least 14 days before work started (section 12, Deduction of Disease Bearing Insects Act 1975).

r) Hygience shelter workers and the project must always maintain our level of cleanliness.

s) No open burning shall be carried out within proposed project site. Under Section 29A of the Environmental Quality Act 1974 which read together with Section 29B of Environmental Quality Act 1974, Open Burning is prohibited except those activities which have been laid down under Environmental Quality Act (Prescribed Activity) open burning Order 2000. Any incompliance may subject to action that can be taken by Department of Environmental (DOE) Negeri Kelantan to the

EXECUTIVE SUMMARY 7

“PEIA for A Proposed of Agriculture (Vegetables) Plantation (121.4033 Ha) At PT 5410, Lojing, Mukim Ulu Nenggiri, Daerah Bertam, Gua Musang, Kelantan D.N. – EL Matta Sdn. Bhd.”

project proponent of a fine not exceeding RM 500,000.00 or to imprisonmentally for a term not exceeding five (5) years or both.

t) For the skid tank, a retention sump of volume 110% of the skid tank storage shall be provided and its base must be lease-proofed where spillage is inherent. The sump is to fulfill the specification of the Malaysian Standards MS 761 – Code of Practice for Storage and Handling of Flammable and Combustible Liquids Published by SIRIM (1982).

7.0 ENVIRONMENTAL MANAGEMENT

To ensure the effectiveness of environmental management, the Environmental Management Plan (EMP) ,Erosion and Sediment Control Plan (ESCP), regular Post EIA Monitoring (Environmental Monitoring Report) and Environmental Monitoring & Auditing Report (EMAR) during the development of the EMSB proposed project will be necessary carried out. The role of government bodies at this juncture will be one (1) of policing or enforcement to ensure that recommendations, provided in the PEIA and approval conditions required by the Department of Environment (DOE) Negeri Kelantan. A part of that, the project proponent is required to prepare Emergency Response Plan (ERP) for any emergency cases that may occur within or outside of the proposed project site. The identification and assessment of environmental impacts and their associated mitigation measures have been discussed in PEIA report. There are some impact that will remain as residual impact even after mitigation and abatement measures have been taken in the development and operation stage. At the present, with the available technology and information system, a monitoring programme would be a practical and reliable approach for addressing residual impacts. Additional mitigating measures may be formulated in future based on the specific information obtained from the monitoring programme. Potential environmental impacts may remain long after mitigation measures have been adopted into the Project Plan. These are described as residual impacts which generally may require further studies and long term monitoring. Knowledge of these residual impacts and their trends over time is necessary to enable the forest manager to develop appropriate strategies to deal with the long term consequences of the various Sustainable Forest Management (SFM) activities.

8.0 CONCLUSION

In conclusion, the findings of this PEIA report revealed that the proposed project site has excellent potential for agriculture (vegetables) plantation activities. The proposed project is expected to generate employment opportunities for local residents and directly can improve socio-economic of population State. This study of PEIA for this proposed project shows that with the implementation of this project will be cause positive and negative effect on environment. The negative effect that arise can be controlled through mitigation measures that should be taken to minimize the negative effect of this environment

EXECUTIVE SUMMARY 8

“PEIA for A Proposed of Agriculture (Vegetables) Plantation (121.4033 Ha) At PT 5410, Lojing, Mukim Ulu Nenggiri, Daerah Bertam, Gua Musang, Kelantan D.N. – EL Matta Sdn. Bhd.” particular. However, the implementation of this project is indeed beneficial to the state and federal Governments in protect and keep in existence of environment.

EXECUTIVE SUMMARY 9