Environmental Assessment Report Summary Environmental Impact Assessment Project Number: 43906 March 2009 Philippines: Visayas Base Load Power Project Prepared by Korea Electric Power Corporation (KEPCO)–SPC Power Corporation (KSPC) for the Asian Development Bank (ADB). The summary environmental impact assessment is a document of the Borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. CURRENCY EQUIVALENTS (as of 9 March 2009) Currency Unit – peso/s (P) P1.00 = $.020585 $1.00 = P48.58 ABBREVIATIONS AAQMS – Ambient Air Quality Management System ADB – Asian Development Bank BOD – biochemical oxygen demand CEMS _ Continuous Emission Monitoring System CFBC – circulating fluidized bed combustion CO – carbon monoxide CO2 – carbon dioxide COD – chemical oxygen demand DENR – Department of Environment and Natural Resources DOE - Department of Energy EIA – environmental impact assessment EIS – environmental impact statement EMP – environmental management plan EPC – engineering, procurement, and construction EP – electrostatic precipitator HDPE _ High density polyethylene KEPCO – Korea Electric Power Corporation KSPC – KEPCO–SPC Power Corporation LMP - League of Municipalities in the Philippines LGC - Local Government Code MMT - Multipartite Monitoring Team NO2 – nitrogen dioxide NOx – nitrogen oxide NPC – National Power Corporation NPCC _ National Pollution Control Commission PAGASA – Philippine Atmospheric, Geophysical and Astronomical Services Administration PSALM - Power Sector Assets and Liabilities Management Corporation SO2 – sulfur dioxide SOx – sulfur oxide SPM – suspended particulate matter TransCo – National Transmission Corporation TSP – total suspended particulates TSS – total suspended solids WEIGHTS AND MEASURES oC – degrees Celsius dB – decibel g/Nm3 – gram per normal cubic meter GWh – gigawatt-hour kg/cm2 – Kilogram per centimeter square kV – Kilovolt m3/hr – cubic meters per hour m/s – meter per second m3/s – cubic meters per second mg/l – milligrams per liter ml – Milliliter mm – millimeter MW – megawatt PCU – Platinum cobalt unit ppm – part per million tpd – ton per day µg/m3 – microgram per cubic meter µg/Ncm – microgram per normal cubic meter GLOSSARY barangay – the smallest administration division in the Philippines and is native term for village, or district. poblacion – the central barangay of a municipality sitio – is a territorial enclave inside a barangay especially in rural areas. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page MAPS I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 1 A. Project Facilities 1 B. Associated Facilities 5 III. Design and Construction 5 A. Design 5 B. Power Plant Operations 6 C. Land and Right-of-Way Acquisition 7 D. Project Schedule and Contracts 7 E. Project Management and Operations 7 IV. DESCRIPTION OF THE ENVIRONMENT 8 A. Physical Environment 8 B. Biological Environment 15 C. Sociocultural Environment 16 V. ALTERNATIVES 17 A. With- and Without-Project Alternatives 17 B. Alternative Project Locations 18 C. Alternative Fuels 19 D. Alternative Boiler Technologies 19 E. Alternative Cooling Systems 20 F. Design Alternatives for the Intake and Discharge Canal Systems 20 G. Alternative Water Resources 21 VI. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 21 A. Physical Environment 21 B. Biological Environment 26 C. Sociocultural Environment 26 D. Induced Development 27 E. Cumulative Impact 27 F. Impacts of Associated Facilities 28 VII. ECONOMIC ASSESSMENT 29 A. Project Costs 29 B. Project Socioeconomic Benefits 29 VIII. ENVIRONMENTAL MANAGEMENT PLAN 30 A. Objectives and Scope of Environmental Management 30 B. Organization for Project Environmental Management 30 C. Mitigation Measures 30 D. Monitoring and Evaluation Program 31 E. Social Development Plan 32 F. Emergency Response Plan and Disaster Preparedness Program 33 G. Ash Utilization Plan 33 IX. PUBLIC CONSULTATION AND DISCLOSURE 34 X. CONCLUSIONS 34 APPENDIXES 1. Summary of the Main Design and Operational Data of the Project 36 2. Location Map of Ambient Air Quality Sampling Stations 37 3. Environmental Management Plan 38 Map 1 PHILIPPINES VISAYAS BASE LOAD POWER PROJECT PROJECT SITE LOCATION MAP y t i C u b e Existing Water C o Discharge Channel T Proposed Water Discharge Channel Proposed KPSC Existing Naga Power Plant Power Plant Site W ater In take C hannel Existing Pier Proposed Pier C E B U I S L A N D y a w h g i H l a o o n 118 00'E 126 00'E o i t a N N o 16 00'N 16o 00'N LUZON Naga City Manila Project Location VISAYAS Naga City, Construction Area Cebu Island National Capital City/Town o 8 00'N 8o 00'N National Highway Boundaries are not necessarily authoritative. MINDANAO 118 o 00'E 126o 00'E 09-0793c EG o 118 00'E 126o 00'E 123 o 00’E PHILIPPINES 16o 00'N 16 o 00'N VISAYAS BASE LOAD POWER PROJECT LUZON TRANSMISSION LINE – CEBU GRID MAP Manila Bansud OCCIDENTAL Gubat Project Location MINDORO Sibuyan Sea Bulan SORSOGON Roxas Cebu VISAYAS Pulang Lupa San Agustin ORIENTAL Ticao Catarman Catubig San Jose MINDORO Romblon Island NORTHERN MASBATE Oras 8o 00'N 8 o 00'N Island SAMAR Caibayog o Boracay 12 00'N SAMAR EASTERN 12 o 00'N MINDANAO Caticlan Nabas SAMAR o o 118 00'E 126 00'E Kalibo Visayan Sea Borongan Biliran 121 o 20’E AKLAN Panilan Culasi CAPIZ Quinapundan Sara Tacloban Bantayan ANTIQUE LEYTE Telesa ILOILO Sagay Cadiz Leyte Gulf Sta. Barbara Victorias Borbon San Jose Abuyog Bacolod Baybay GUIMARAS Project Area San Carlos Danao Camote San Enrique National Capital Island CEBU SOUTHERNSt. Bernard City/Town Toledo LEYTE Binalbagan Cable Terminal Station (existing) Panay Gulf D D Quiat Panaon C Maasin Island o 230kV Substation (existing) NEGROS Dumarug GT 10 00'N Trinidad 10 o 00'N 115kV Substation (existing) OCCIDENTAL Sibonga 115kV Substation (ongoing) Cauayan Alicia Bindoy BOHOL 69kV Substation (existing) Alcoy Limasawa Surigao C Coal-Fired Generating Plant (existing) SURIGAO N Sipalay NEGROS Tagbilaran G. Hernandez GT Gas Turbine DEL NORTE ORIENTAL Bohol Sea D Diesel Generating Plant (existing) Bayawan 230kV Transmission Line (existing) Dumaguete Camiguin 0 25 50 100 Santiago 115kV Transmission Line (existing) Siquijor Island Island 115kV Transmission Line (ongoing) Kilometers 69kV Transmission Line (existing) Balingoan Butuan Provincial Boundary AGUSAN Boundaries are not necessarily authoritative. Gingoog DEL NORTE MISAMIS ORIENTAL 0 9 Dapitan M - 0 Oroquieta Carmen 7 a 9 ZAMBOANGA AGUSAN 3 Siom MISAMIS p b DEL SUR DEL NORTE Agusan E o o 121 20’E OCCIDENTAL 2 G 123 00’E I. INTRODUCTION 1. KEPCO–SPC Power Corporation (KSPC), a joint venture between KEPCO Philippines Holdings (a wholly-owned subsidiary of Korea Electric Power Corporation or KEPCO) and SPC Power Corporation, is developing the Visayas Base Load Power Project. The Project is located in Colon barangay (district) of Naga, in the province of Cebu (Map 1). It was conceptualized under a new scheme of a merchant power plant, on a build–own–operate basis, characterized by the execution of power sales contracts with distribution utilities and electric cooperatives, instead of purchase power agreements with the Government of the Philippines. Under this concept, the generating company is responsible for the whole construction, operation, and maintenance of the plant, including fuel supply—without any Philippine government guarantees. 2. The project area covers 8.4 hectares (ha) that were previously utilized as an ash pond of the existing Naga power plant complex, operated by SPC Power Corporation. The Project will construct a coal-fired power plant utilizing circulating fluidized bed combustion (CFBC) 1 technology—a clean coal technology with more 1,300 units operating worldwide. The plant will consist of two 100 megawatt (MW) units, which will utilize coals from PT Kasih Industri and PT Surya Sakti Darma Kencana (both in Indonesia) and qualified local suppliers. 3. Completed project milestones include the signing of the engineering, procurement, and construction (EPC) contract with Doosan Heavy Industries & Construction on 10 December 2007, excavation on 14 February 2008, and boiler steel structure erection on 10 December 2008. The overall construction accomplishment status for EPC as of 31 December 2008 had reached 31.5%. The target for commercial operation is February 2011 for the first 100 MW and in May 2011 for the second 100 MW. 4. This summary environmental impact assessment was prepared by KSPC for use by the Asian Development Bank (ADB) in accordance with ADB’s environmental and social safeguard policies and information disclosure requirements for environmental category A projects. It summarizes and consolidates the major findings and recommendations presented in the environmental impact statement (EIS).2 The environmental compliance certificate for the Project was issued on 5 December 2005 by the secretary of the Department of Environment and Natural Resources (DENR). As part of the EIS, a public hearing was held on 6 August 2005 and further consultations were conducted with local people. II. DESCRIPTION OF THE PROJECT A. Project Facilities 5. The project facilities to be constructed by KSPC include the power plant and support facilities. The main project facilities will include two 100 MW CFBC units, main transformer, switchyard, control system, coal handling system (unloading and stockpiling), ash handling system, electrostatic precipitator, feed water system, condensate system, circulating water system, and closed cooling water system. However, the 1 kilometer (km) transmission line to 1 The power plant will use the CFBC process, one of the better technologies in the type of power plant using coal as fuel. CFBC technology has better efficiency in the regulation of gas emissions—an inherent weakness of coal-fired power plants—making it more environment-friendly and a better alternative to conventional pulverized coal boilers such as the existing power plant in the area.