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7 Mitigation Measures ______143 SFG1795 V8 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized EG-GIZA North Power Project–Natural The Egyptian Natural Gas Company Gas Lines to Additional Power Plants in Egypt Suez Power Station Natural Gas Line ENVIRONMENTAL AND SOCIAL Public Disclosure Authorized Prepared By: IMPACT ASSESSMENT October 2016 Final Report ESIA study for EG-GIZA North Power Project – Suez Power Station Natural Gas Line Executive Summary Introduction The proposed project is considered as part of Egypt’s strategy which aims to expand the use of natural gas as a clean source of energy, a goal that will be achieved through delivering natural gas to houses, industrial facilities and power plants. In this regard, the EG-Giza North Power Project was undertaken by the Egyptian Government. The project consists of three main components: Component 1: The Power Plant Component, which is the construction of 2250 MW Combined Cycle Gas Turbine power plant; Component 2: The Construction of transmission lines to connect the power plant to the national grid Component 3: The construction of gas pipeline to strengthen the gas supply network to ensure supply gas to power plant. Component 3 of the project, which involves gas pipeline construction to provide natural gas to North Giza power station, is implemented by the Egyptian Company for Natural Gas (GASCO) with the assistance of the World Bank. This component and was 96% concluded by the end of 2015. After conclusion of the procurement of the Bank financed packages, there were still financial savings from the project that can be utilized by the Government of Egypt. In this regard, the World Bank received formal request from the government of Egypt to utilize these savings to procure pipelines required for upgrading the natural gas network and connecting to new and existing power plants. As the objective of the new gas pipelines connections to the existing and new power stations is to improve the security and efficiency of electricity supply, the additional proposed scope by the Egyptian government is considered to be fully in-line with the original project objectives. The proposed pipelines will also be implemented by GASCO and are composed of 9 pipelines, namely: 1. New Capital - Dahshour gas pipeline (70 km) 2. Dahshour – El Wasta gas pipeline (65 km) 3. El Wasta – Beni Suef gas pipeline (65 km) + gas decompression station (in Beni Suef Power Station) 4. Sixth of October Power Station (400 meters) + gas decompression station (in 6th of October power station) 5. El Gamel – Damietta gas pipeline (50 km) Page 2 of 234 ESIA study for EG-GIZA North Power Project – Suez Power Station Natural Gas Line 6. El Suez Power Station (3 km) + gas decomposition station (in Suez Thermal Power Station) 7. Soumid import gas pipeline (4 km) 8. El Mahmoudiya Power Station (27 km + 17 km + 7 km) + gas decompression station (in Mahmoudiya Power Station) 9. Damanhour Power Station (2.5 km) + gas decompression station (in Damanhour Power Station) Approach to Study The preparation of the Environmental and Social Impact Assessment is done according to the following approach: Review of the available information and documents regarding the project; Reviewing national and international legislations and regulations relevant to the project, including the required governmental permits; Conducting site visits to the project site, to collect the baseline data regarding the current environmental and social situation; Holding a Scoping Session (first public consultation) to engage the community and different stakeholders in the process of identifying the expected impacts; Assessing the potential environmental and social impacts associated with proposed project activities; Developing an outline for the environmental and social management plan for the mitigation of the expected negative impacts and the monitoring activities to ensure compliance with the relevant environmental laws; Holding a Public Consultation Session based on the updated ESIA and RAP studies; Finalizing and submitting the ESIA and RAP studies. Project Description Pipeline Route The pipeline which is the focus of the study is El Suez Thermal Power Station pipeline in addition to the pressure reduction station inside the power station. The pipeline aims at supplying Natural Gas to Suez Thermal Power Station. The planned pipeline is located at the western zone of El Suez governorate. The pipeline route will start at the valves room at Raas Bakr 16” pipeline and it extends 500 meters to the east to cross with a railway. After that, it extends 1.2 Km to the south parallel to a storm water drain to cross Salah Nessim road, and then it extends 700 meters to the east again along the gulf and the residential colony of El Suez Petroleum Company. The pipeline continues this path till it reaches the pressure reduction station inside Suez thermal power station with a total length of 3 Km. Page 3 of 234 ESIA study for EG-GIZA North Power Project – Suez Power Station Natural Gas Line In total, there are two main crossings; one with the railway and the other with Salah Nessim road. Along the whole route, the pipeline will be located underground. Construction Phase The project will be carried out by a contractor under GASCO’s supervision and control. It is expected that the engineering, procurement and construction phase will collectively take about 24 months. The following activities will be conducted in the construction phase: • Right of Way activities. • Pipe transportation and storage. • Trenching. • Horizontal Directional Drilling (HDD) or boring for the road crossings • Welding and inspection. • Coating and inspection • Wrapping of joints. • Ditching. • Installation of valves. • Tie-ins • Laying fiber-optic cables • Backfilling. • Pigging. • Hydrostatic test. • Dewatering. • Purging & commissioning. • Manufacturing and fittings for valves rooms (including civil, mechanical, and electric components). Operation Phase The operation phase is normally functioned through the central control unit through the SCADA system. Normal maintenance and monitoring work will be performed including patrolling to leakages and potential hazards detection. In case of leak detection, or damage in parts of the pipeline, the damaged part will be isolated and the necessary action will be taken according to the emergency response plan of GASCO. Page 4 of 234 ESIA study for EG-GIZA North Power Project – Suez Power Station Natural Gas Line Project Alternatives The main target of the proposed project is to increase the natural gas supply to Suez Thermal Power Plant, in order to help meet the growing national demand. In case of having “No Action”, Mazout (heavy fuel oil) or Diesel can be used to compensate this shortage despite that there will be more polluting air emissions in case of transporting it through vehicles, and even during its burning. In addition, since there is a local shortage in supplying Mazout and Diesel, it will be mainly imported, and accordingly increase the load on the national budget especially regarding the current foreign currency problems. Hence, the “No Action” alternative is not accepted. Several alternatives were considered for the route of the line, with the aim of avoiding as much as possible, any residential areas with sensitive receptors, and major crossings of both roads and waterways. Accordingly, the prioritization of certain pipeline route from the environmental and social perspectives focus on shortening the pipeline length and minimizing the associated expected social and environmental impacts. The choice of the pipeline route put into consideration some technical aspects set by GASCO including facilitating the accessibility of equipment, vehicles and personnel to the pipeline site during the construction and maintenance activities by placing the path as much as possible near to paved roads. The pipeline has a specified start point and end point, and due to the small length of this particular pipeline, there are no much routing alternatives available. The path was chosen for the purpose of facilitating the implementation of pipelines’ welding during the construction activities as the welding process needs additional clearness space of 500 m. In addition, the chosen path does not intersect with any existing residential buildings. Thus, the chosen pipeline route achieves the environmental and social targets, and at the same time aligns with GASCO’s strategy which aims at choosing routes already containing existing infrastructure and minimizing intersection with residential areas. Positive Environmental and Social Impacts Implementation of the proposed project is expected to lead to a number of positive social and economic benefits, for example: The project is expected to result in the creation of job opportunities in the construction phase, both directly and indirectly; Support the expansion of power generation projects; Expanding power generation will dramatically enhance the national electricity grid; Expanding the natural gas network will positively provide an energy source to local industries which will indirectly create job opportunities; Variation of the energy mix in order to reduce the dependency on imported fuel; Page 5 of 234 ESIA study for EG-GIZA North Power Project – Suez Power Station Natural Gas Line Environmental Impact Rating Summary Table 0-1–Environmental Impact Rating Summary Phase Impact category Impact Rating Low Medium High Construction Air Quality × Aquatic Environment × Noise × Ecological systems ×
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