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Preparatory Survey Report (Public Version)

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Preparatory Survey Report (Public Version) Malaysia PREPARATORY SURVEY REPORT FOR PHOTOVOLTAIC POWER GENERATION - ECONATION - PROJECT IN MALAYSIA (PPP INFRASTRUCTURE PROJECT) (PUBLIC VERSION) February 2016 Japan International Cooperation Agency Panasonic Corporation NEWJEC Inc. O S JR（先） 16-034 Table of Contents Preparatory Survey Report List of Figures and Tables / Abbreviations Table of Contents Chapter 1 Socio-economic Conditions in Malaysia and Northern States Socio-economic Status of Malaysia ............................................................................... 1 - 1 1.1.1 Population ......................................................................................................... 1 - 1 1.1.2 Economy ........................................................................................................... 1 - 1 1.1.3 National Development Policy ........................................................................... 1 - 4 Northern States and NCIA ............................................................................................. 1 - 9 1.2.1 Outline of Northern States (from NCIA's Brochure) ........................................ 1 - 10 1.2.2 Socio-economic Status of Northern States ........................................................ 1 - 10 1.2.3 Northern Corridor Implementation Authority (NCIA) ..................................... 1 - 15 Brief history of the Project ............................................................................................. 1 - 16 1.3.1 Activities of Panasonic Group in Malaysia ....................................................... 1 - 16 1.3.2 Evolution of the Project .................................................................................... 1 - 17 Chapter 2 Power Sector and Use of Renewable Energy in Malaysia 2.1 Power Sector Policy ....................................................................................................... 2 - 1 Energy Policy .................................................................................................... 2 - 1 Electricity Policy ............................................................................................... 2 - 2 2.2 Organizations of Electricity Sector ................................................................................ 2 - 2 Administrative Bodies....................................................................................... 2 - 2 Private Companies ............................................................................................ 2 - 4 Private Initiative in Electricity Sector ............................................................... 2 - 5 2.3 Power Market in Peninsular Malaysia ........................................................................... 2 - 11 Current Situation of Power Market ................................................................... 2 - 11 2.4 Promotion of Renewable Energy and Feed-in-Tariff ..................................................... 2 - 16 Government Policy on Use of Renewable Energy ............................................ 2 - 16 Feed-in-tariff (FIT) Measure ............................................................................. 2 - 18 New Framework to Promote PV Generation Development .............................. 2 - 21 Chapter 3 Project Formation 3.1 Project Background and its Necessity ............................................................................ 3 - 1 3.1.1 Local Development Issues and Necessity of Business...................................... 3 - 1 3.1.2 Project Overview and Basic Scope ................................................................... 3 - 1 3.1.3 Expected Business Effect .................................................................................. 3 - 2 3.2 Site Selection.................................................................................................................. 3 - 2 3.2.1 Site Selection Policy ......................................................................................... 3 - 2 3.2.2 Site Selection Process ....................................................................................... 3 - 2 3.3 Project Formation based of PPP ..................................................................................... 3 - 4 3.3.1 Special Purpose Company (SPC) as a main player of the project .................... 3 - 4 3.3.2 Operation and Maintenance Organization ........................................................ 3 - 4 3.3.3 Econation Sub Committee ................................................................................ 3 - 5 3.3.4 Facility after 25 Years of the Project Period ..................................................... 3 - 5 - i - Preparatory Survey on Econation Solar Project in Northern States of Malaysia Table of Contents List of Figures and Tables / Abbreviations Preparatory Survey Report Chapter 4 Outline Design and Project Cost 4.1 Site and Capacity of Solar Farm..................................................................................... 4 - 1 4.1.1 Acquisition Process for the Land (Business Site) ............................................. 4 - 1 4.1.2 System Size Study ............................................................................................. 4 - 1 4.1.3 Installation Site .................................................................................................. 4 - 2 4.1.4 Characteristic of the Surrounding Area ............................................................. 4 - 3 4.1.5 Necessity of Site Preparation Work .................................................................. 4 - 3 4.2 Outline Design................................................................................................................ 4 - 4 4.2.1 Outline Design of Power Generation Equipment and related Equipment ......... 4 - 4 4.2.2 Estimate of Power Generation Amount............................................................. 4 - 8 4.2.3 Grid Interconnection ......................................................................................... 4 - 12 4.2.4 Transmission Line Equipment .......................................................................... 4 - 18 4.2.5 Construction Plan .............................................................................................. 4 - 24 Chapter 5 Project Scheme and Financing of the Project 5.1 Business Scheme ............................................................................................................ 5 - 1 Chapter 6 Environmental and Social Consideration Overview of the Project Component that causes Environmental and Social Impacts .... 6 - 1 6.1.1 Project Site ........................................................................................................ 6 - 1 6.1.2 Project Outline .................................................................................................. 6 - 1 6.1.3 Installation Work Plan ....................................................................................... 6 - 7 Environmental and Social Baseline ................................................................................ 6 - 8 6.2.1 Natural Environment ......................................................................................... 6 - 8 6.2.2 Social Environment ........................................................................................... 6 - 16 System and Organization related to Environmental and Social Consideration in Malaysia ..................................................................................................................... 6 - 21 6.3.1 Legal Framework related to Environmental and Social Consideration ............. 6 - 21 6.3.2 Organization related to Environmental and Social Consideration .................... 6 - 21 6.3.3 EIA System in Malaysia .................................................................................... 6 - 22 Comparative Study on Alternatives ............................................................................... 6 - 24 6.4.1 Comparison of Site Location ............................................................................. 6 - 24 6.4.2 Zero Option ....................................................................................................... 6 - 24 Scoping and TOR of Environmental and Social Consideration Study ........................... 6 - 25 6.5.1 Scoping .............................................................................................................. 6 - 25 6.5.2 TOR ................................................................................................................... 6 - 26 6.5.3 Methods of Site Survey ..................................................................................... 6 - 27 Result of Environmental and Social Consideration Survey ........................................... 6 - 28 Environmental Impact Assessment ................................................................................ 6 - 31 Mitigation Measures and Cost ........................................................................................ 6 - 33 6.8.1 Mitigation Measures .......................................................................................... 6 - 33 6.8.2 Cost for Mitigation Measures ............................................................................ 6 - 33 Monitoring Plan.............................................................................................................. 6 - 33 6.9.1 Implementing Organization ..............................................................................
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