Detailed Environmental Impact Assessment for the Proposed Reclamation for the Development Chapter 3 of Oil and Gas Industrial Base at Kg. Rancha-Rancha, , F.T., Existing Environment

Chapter

3 Existing Environment

3.1 Introduction

This chapter outlines and records the existing conditions, in qualitative and quantitative terms, of the physico-chemical, biological and socio-economics environment at the project site (reclamation and sand borrow) and its surrounding areas (within 5-km radius) prior to implementation of the Project.

As mentioned in Chapter 2, this Project two (2) sites, i.e. 1) the reclamation site, where proposed reclamation and capital dredging in near vicinity to attain the required draft; and 2) the proposed sand borrow site, where sand materials will be extracted and transported to the reclamation site.

The purpose of describing the existing environmental setting is to establish a reliable “baseline”, which is an important pre-requisite for undertaking an environmental impact assessment and future project monitoring. 3.2 Physico-Chemical Environment 3.2.1 Bathymetry

The bathymetrical database for this DEIA study is derived from the C-Map electronic chart. All depths are referred to chart datum and reference in Universal Transverse Mercator (UTM-50) coordinate system.

Reclamation site: This site is located on the western side of Rancha-Rancha Industrial area facing the Sg Kina Benuwa bay. The bay morphology is composed by a mixture of sand mud and low lying rocks. The bathymetric at this site ranges from -1 MSL to -7 MSL.

Sand borrow site: The bathymetric at this site ranges between -5 MSL and -12 MSL (from north to south).

The bathymetry information regarding both sites can be referred to in Figure 3.2.1.

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Detailed Environmental Impact Assessment for the Proposed Reclamation for the Development Chapter 3 of Oil and Gas Industrial Base at Kg. Rancha-Rancha, Labuan, F.T., Malaysia Existing Environment

Figure 3.2.1: Bathymetries of the Reclamation and Sand Borrow Sites. 3.2.2 Tidal

The tidal information at Labuan is readily available from year 1995 to 2003. Table 3.2.1 summarises the tidal details. Table 3.2.1: Tidal Range of Labuan Location Labuan Authority RMN MDS 7 year 1 year Length of Tidal Recording (1995-03) (2004-05) Highest Astronomical Tide (HAT) + 2.60m + 2.8m Mean Higher High Water (MHHW) + 2.33m + 2.5m Mean Lower High Water (MLHW) + 1.77m + 1.9m Mean Sea Level (MSL) + 1.34m + 1.4m Mean Higher Low Water (MHLW) + 0.91m + 1.0m Mean Lower Low Water (MLLW) + 0.34m + 0.4m Lowest Astronomical Tide (LAT) 0.00m 0.0m MHHW – MLLW 0.99m 2.1m *Notes: 1. All values in Chart Datum (CD). 2. RMN – National Hydrographic Centre, Royal Malaysian Navy. 3. MDS – Jabatan Laut Sarawak (Marine Department Sarawak).

The tide within Labuan is considered mixed, dominantly diurnal tide with only one high water and one low water a day especially during spring tide. The semi-diurnal component becomes more apparent during neap tide.

Tidal range (MHHW – MLLW) at the site is small with around 1.5 m to 2 m expected in most days except during spring tides.

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3.2.3 Current

On regional scale, current patterns are dominated by the two monsoon seasons. During the North East Monsoon, the oceanic current of the ’s main circulation commences from current entering from Pacific Ocean through the gap between Taiwan and the Philippines known as Kuroshio Intrusion. As it enters South China Sea it travels along the southern coast of China and Vietnam and heads towards Karimata Strait. Off the coast of northern Sarawak and outside the continental shelf it branches off and turns northeast in direction as shown in the simplified current flow pattern of South China Sea during the north east monsoon in Figure 3.2.2.

Figure 3.2.2: Kuroshio Intrusion in the northern South China Sea and subsequent through branching offshore Vietnam, turning north-east and following the north- west coast of up to Sabah.

During the South West Monsoon the main current flow reverse the flow from Karimata Strait towards the Vietnam and southern China and into Pacific Ocean. Off the coast of northern Sarawak and Sabah, the current, similar to that occurred during the North East monsoon, flows north east. It can thus be concluded that the oceanic current off shore of both the reclamation and sand borrow sites are predominantly towards the north east. However, as both sites are located within are mostly sheltered from the South China Sea environment with little exposure if any. The effects of the exposure of the site to South China Sea at the gaps between Labuan and Sabah at the north east and between Labuan and Brunei at the west are reduced by series of islands and shallow patches lining along these gaps.

Due to low tidal gradient along the coast of Sabah and northern Sarawak, tidal current along the reclamation site is weak. Like the rest of current flow along the northern coast of Sabah and Sarawak, tidal flow is towards northeast during ebb and southwest during flood.

Wind generated currents are limited to the local wind generated within Brunei Bay. Based on other studies carried out around the borrow site, current speed within the proposed sand borrow site may reach 0.2 m/s.

3.2.4 Meteorology

3.2.4.1 General Climate

Labuan Island is located south-west of the coast of the state of Sabah, surrounded by the South China Sea. As it is located close to the equator, the region generally

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experiences an equatorial type of climate characterised by hot and humid weather all year round. The movement of the Inter-Tropical Convergence Zone (ITCZ) and the associated movement of the warm air with the monsoons influence the climate at both the reclamation and sand borrow sites. There are two distinct monsoon regimes, the North-East Monsoon from the months of November to March, and the South-West Monsoon from the months of May to September. The period between the monsoons is commonly referred to as the inter-monsoon or transition period.

Data from the Malaysian Meteorological Services (MMS) Department station located at Labuan Airport (latitude 5 ° 18’ N, longitude 115 ° 15’ E, elevation 29.0 m AMSL) about 8 km to the north-eastern direction from the reclamation site is used to describe the meteorological condition of the site concerned.

3.2.4.2 Surface Winds

Typical of a coastal site, the land and sea breezes have a strong influence on the behaviour of the diurnal wind. The sea breeze attains its maximum strength in the mid- afternoon in the presence of strong surface heating. It begins to weaken in the evening when the thermal difference that drives the local circulation becomes negligible. The land breeze, which normally sets during pre-dawn is much weaker with wind speeds not exceeding 5 metres/second. During times of the year when prevailing winds are light, such as the intermonsoon months, the sea breeze will play a dominant role in the transportation of pollutants at the area.

Wind profile recorded at the Malaysian Meteorological Services station at Labuan Airport (approximately 8 km from the reclamation site) is depicted as annual wind rose and seasonal wind rose summaries as shown in Figure 3.2.3 and Figure 3.2.4, respectively. From the wind profile, it can be seen that the prevailing wind direction is northerly with maximum wind speed between 5.5 m/s and 7.9 m/s. Calm weather occurs about 12.8% of the time annually.

During the North-East Monsoon from the months November to March, the prevailing wind direction is generally from the north and north-east with weaker winds blowing from the east and south-west. The dominant wind direction during the South-West Monsoon is from the south, south-west and west directions with weaker winds from the north and north-east.

3.2.4.3 Temperature

The temperature and relative humidity data for both the reclamation and sand borrow sites are obtained from Malaysian Meteorological Services Department from year 2001 to 2010, as tabulated in Table 3.2.2.

From Table 3.2.2, it can be seen that the 24-hour mean temperature ranges between 26.9 °C and 28.9 °C with an average temperature of 27.8 °C. The highest maximum temperature recorded was in the month of April 2003 at 28.9 °C while the lowest minimum temperature was in the month January 2005 at 26.9 °C.

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Detailed Environmental Impact Assessment for the Proposed Reclamation for the Development of Oil and Gas Industrial Base at Kg. Chapter 3 Rancha-Rancha, Labuan, F.T., Malaysia Existing Environment

Table 3.2.2: Records of Temperature in Labuan Island (2001-2010)

Year Jan Feb Mac Apr May Jun Jul Aug Sept Oct Nov Dec Average

2001 27.3 27.4 27.7 28.2 28.9 27.7 28.6 28.5 28.0 27.4 27.2 27.4 27.9

2002 27.1 26.9 27.6 28.6 28.9 28.3 28.7 28.0 27.9 27.6 27.8 28.5 28.0

2003 27.8 27.4 27.7 28.9 28.4 28.1 27.8 28.4 28.0 27.0 27.8 27.3 27.9

2004 27.3 26.9 27.7 28.7 28.1 28.2 27.6 28.4 27.5 27.5 27.9 27.6 27.8

2005 26.9 27.7 28.0 28.8 ------27.9

2006 27.6 27.7 27.6 28.3 28.4 27.7 28.7 28.1 27.6 27.6 28.6 28.1 28.0

2007 27.4 27.4 28.0 28.7 28.7 28.1 28.1 28.2 27.7 27.9 26.9 27.7 27.9

2008 27.4 26.2 27.0 27.6 27.7 27.6 27.1 27.6 27.5 27.2 27.5 27.7 27.3

2009 26.7 26.8 27.5 28.4 28.5 28.5 27.8 28.4 28.1 27.3 27.7 27.8 27.8

2010 27.1 28.0 28.2 28.4 28.6 27.8 27.4 27.8 27.5 27.7 - - 27.9

Average 27.8

Source: Malaysian Meteorological Services Department, 2010. Note: - denotes data not available

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3.2.4.4 Rainfall

The rainfall data for both the reclamation and sand borrow sites are obtained from Labuan airport. Generally, Labuan has constant rainfall throughout the year. The average monthly rainfall in Labuan recorded for a period of ten years from year 2001 to 2010 is summarised in Table 3.2.3The annual mean rainfall is approximately 3,318.6 mm, which is considerably high. The highest monthly rainfall recorded was in the month of September 2010 while the highest annual rainfall ever recorded was in 2008 with 3,823.4 mm. In addition, the lowest monthly rainfall reported was in the month of February 2010 whereby the amount of rainfall recorded is only 2.4 mm. Less rainy days have been observed in the months of February and March while the wet season is during the Inter-Monsoon period between the months of August and November.

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Table 3.2.3: Monthly Summary of Rainfall for Labuan Island (Year 2001 – 2010) Year Jan Feb Mac Apr May Jun July Aug Sept Oct Nov Dec Total Wet Days Milimetres 562.5 28.5 166.2 518.0 110.4 291.9 170.2 83.8 433.4 609.8 372.8 305.1 2001 3652.6 222 Days 26 9 18 23 12 22 11 10 25 25 25 16 Milimetres 59.5 34.2 111.5 148.3 149.2 418.2 264.1 281.0 333.2 576.2 435.4 250.0 2002 3060.8 165 Days 11 4 8 18 12 17 14 18 17 19 19 8 Milimetres 20.4 2.6 180.2 201.0 234.4 338.6 339.4 234.8 205.0 692.6 332.2 423.8 2003 3205.0 178 Days 5 3 13 11 15 17 19 17 17 22 22 17 Milimetres 71.8 46.4 151.0 113.1 432.2 143.6 353.0 88.4 356.4 183.4 249.2 219.4 2004 2407.9 176 Days 8 7 16 14 18 10 16 8 24 19 17 19 Milimetres 124.0 5.8 201.8 95.4 511.5 249.2 314.2 375.6 263.6 500.0 610.2 495.6 2005 3746.9 183 Days 8 3 13 8 18 18 15 16 18 22 23 21 Milimetres 339.2 106.0 175.0 118.6 290.4 534.0 183.6 464.8 486.4 240.4 271.6 311.6 2006 3521.6 219 Days 17 14 17 16 19 23 12 20 22 19 20 20 Milimetres 327.2 170.2 18.0 150.6 290.0 617.4 242.7 215.4 377.2 350.4 376.4 146.0 2007 3281.5 224 Days 23 14 6 17 18 24 19 16 22 22 23 20 Milimetres 154.6 266.0 284.4 244.4 165.0 414.8 307.2 287.4 319.6 698.4 379.4 302.2 2008 3823.4 207 Days 13 17 19 19 13 17 21 17 14 21 18 18 Milimetres 747.4 156.4 204.4 54.8 197.4 150.2 126.8 261.2 130.0 449.2 275.0 168.6 2009 2921.4 189 Days 26 15 21 12 12 13 14 15 10 20 16 15 Milimetres 287.4 2.4 51.4 262.4 259.4 456.0 389.4 659.0 968.4 229.0 2010 - - 3564.8 170 Days 16 3 8 18 20 23 21 18 25 18 Average 3,318.6

Source: Malaysian Meteorological Services Department, 2010. Note: - denotes data not available

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3.2.5 Hydrology and Drainage

3.2.5.1 River System

The study area in the vicinity of the reclamation site can be described as a small bay. Therefore, other than sea current (velocity and direction) and tide patterns the rivers and streams flowing in the area can also affect the water quality.

The major rivers flowing into the small bay includes Sg Kina Benuwa (north) and Sg Rancha-Rancha (east). The rivers are influenced by tides with relatively small freshwater flow except for Sg Kina Benuwa. The tidal influence in the rivers is expected due to the fact that Labuan island is a small landmass hence the watershed tends to be small.

3.2.6 Baseline Water Quality

Baseline water quality sampling was conducted in March 2013 at eight (8) locations at the reclamation site and five (5) locations at sand borrow site. Refer to details on sampling locations in Figure 3.2.5, Table 3.2.4 and Table 3.2.5. This sampling exercise is carried out to ascertain the existing water quality at both the reclamation and sand borrow sites as well as to establish the baseline water quality for future monitoring purposes. At the time of sampling, the weather was generally fine and cloudy. Table 3.2.4: Water Sampling Location at the Reclamation Site Sampling Point Longitude Latitude

P1 E 115° 12' 38.56" N 5° 15' 46.63" P2 E 115° 12' 56.21 N 5° 15' 29.16" P3 E 115° 13' 12.57" N 5° 15' 36.50" P4 E 115° 13' 31.68" N 5° 15' 11.46

P5 E 115° 13' 37.42" N 5° 14' 34.96" P6 E 115° 12' 42.87" N 5° 14' 34.96" P7 E 115° 12' 34.06 N 5° 16' 21.84" P8 E 115° 14' 9.42" N 5° 14' 53.57"

Table 3.2.5: Water Sampling Location at the Sand Borrow Site Sampling Point Longitude Latitude

A1 E 115° 18' 20.00" N 5° 15' 10.00" A2 E 115° 19' 25.50” N 5° 15' 10.00" A3 E 115° 19' 25.50” N 5° 14' 5.00" A4 E 115° 18' 20.00" " N 5° 14' 5.00"

A5 E 115° 18' 52.84" N 5° 15' 19.80”

The parameters for water quality analysis are outlined in Table 3.2.6: Table 3.2.6: Parameters for Baseline Water Quality Analysis Physical & Chemical Temperature Dissolved Oxygen, Ammonia, Oil and Grease, Total

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Detailed Environmental Impact Assessment for the Proposed Reclamation for the Development Chapter 3 of Oil and Gas Industrial Base at Kg. Rancha-Rancha, Labuan, F.T., Malaysia Existing Environment

Parameters Suspended Solids Microbiological Faecal Coliform Count Parameters Heavy Metals Arsenic, Cadmium, Chromium, Copper, Lead, Mercury, Zinc, Cyanide, Nitrite, Nitrate, Phosphate

The baseline water quality result is compared to Class 3 and Class E (for sampling point, P7 as it is located near to the mangrove area)of the Malaysia Marine Water Quality Criteria and Standard (MMWQCS). The result of the water quality parameters is summarized in Table 3.2.7 and full laboratory results are appended in Appendix 3.2.1 .

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Table 3.2.7: Baseline Water Quality Results at Vicinity of the Reclamation Area Class 3 of Class E of Parameter (s) P1 P2 P3 P4 P5 P6 P7 P8 MMWQCS MMWQCS Temperature, oC (in-situ) 31.3 31.1 30.3 31.7 31.5 30.1 30.1 30.4 - - Dissolved Oxygen, mg/l 6.45 6.15 6.15 6.55 6.05 6.25 6.25 6.60 3 4 Total Suspended Solids, 10.0 21.0 8.50 17.5 16.0 12.5 81.0 86.0 100 100 mg/l Cadmium (as Cd), mg/l <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 0.01 0.002 Chromium (as Cr), mg/l <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 0.048 0.01 Copper (as Cu), mg/l <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 0.01 0.0029 Lead (as Pb), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 0.06 0.04 0.05 0.0085 Zinc (as Zn), mg./l <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 0.1 0.05 Ammoniacal-Nitrogen 0.61 0.61 0.61 0.61 0.61 0.61 <0.2 <0.20 - - (as N), mg/l Oil & Grease, mg/l <1.50 <1.50 <1.50 <1.50 <1.50 <1.50 <1.50 <1.50 5 0.14 Nitrite Nitrogen (as N), <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 1 0.055 mg/l Nitrate Nitrogen (as N), <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.2 <0.2 1 0.06 mg/l Phosphate (as PO ), 4 <0.06 0.26 0.48 0.08 0.07 0.12 <0.06 <0.06 0.67 0.075 mg/l Mercury (as Hg), mg/l <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 0.002 0.001 0.5 0.0005 Arsenic (as As), mg/l <0.006 <0.006 <0.006 <0.006 <0.006 <0.006 <0.006 <0.006 0.05 0.06 Cyanide (as CN), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 0.02 0.007 Faecal Coliform Count, >16000 <1.1 <1.1 <1.1 <1.1 <1.1 <.1.1 110 200 100 MPN/100mL • Note: Shaded grey box denotes parameter exceeding the limits of the Class 3 of MMWQCS • Bolded font box denotes parameter exceeding the limits of the Class E of MMWQCS

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Table 3.2.8: Baseline Water Quality Results at Vicinity of the Sand Borrow Site Class 3 of Parameter (s) A1 A2 A3 A4 A5 MMWQCS Temperature, oC (in-situ) 29.3 29.2 28.6 29.5 29.3 - Dissolved Oxygen, mg/l 6.05 5.95 6.25 6.30 6.35 3 Total Suspended Solids, mg/l 13.5 7.50 10.5 15.5 14.5 100 Cadmium (as Cd), mg/l <0.002 <0.002 <0.002 <0.002 <0.002 0.01 Chromium (as Cr), mg/l <0.02 <0.02 <0.02 <0.02 <0.02 0.048 Copper (as Cu), mg/l <0.02 <0.02 <0.02 <0.02 <0.02 0.01 Lead (as Pb), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 0.05 Zinc (as Zn), mg./l <0.02 <0.02 <0.02 <0.02 <0.02 0.1 Ammoniacal-Nitrogen (as N), mg/l 0.61 0.61 0.61 0.61 1.22 - Oil & Grease, mg/l <1.50 <1.50 <1.50 <1.50 <1.50 5 Nitrate Nitrogen (as N), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 1 Nitrate Nitrogen (as N), mg/l 0.14 <0.02 <0.02 <0.02 <0.02 1

Phosphate (as PO 4), mg/l <0.06 0.23 0.07 <0.06 <0.06 0.67 Mercury (as Hg), mg/l <0.001 <0.001 <0.001 <0.001 <0.001 0.5 Arsenic (as As), mg/l <0.006 <0.006 <0.006 <0.006 <0.006 0.05 Cyanide (as CN), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 0.02 Faecal Coliform Count, MPN/100mL <1.1 <1.1 <1.1 <1.1 <1.1 200 Note: Shaded grey box denotes parameter exceeding the limits of the Class 3 of MMWQCS

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Detailed Environmental Impact Assessment for the Proposed Reclamation for the Development Chapter 3 of Oil and Gas Industrial Base at Kg. Rancha-Rancha, Labuan, F.T., Malaysia Existing Environment

From the results obtained, two (2) parameters have exceeded the stipulated limit of Class 3 namely dissolved oxygen (DO) and faecal coliform count at the reclamation site and DO at the sand borrow site. Further descriptions of the parameters of interest are provided below:

• Dissolved Oxygen

Dissolved oxygen (DO) is a measure of the amount of oxygen dissolved in a given volume of water at a certain temperature and atmospheric pressure. Dissolved oxygen value of more than 5 mg/L is considered as healthy 1 for aquatic organisms as it is required by aquatic organisms for aerobic respiration whereby oxygen is added to the water by photosynthetic activity of plant and re-aeration from the atmosphere. Dissolved oxygen level in water below 5 mg/L actually can put aquatic life under great stress. Since the results obtained for all samples at both the reclamation and sand borrow sites showed relatively high levels of DO, the present water quality seems to suggest a generally healthy environment for marine lives.

• Microbiological Content

Faecal coliform bacteria are typically used as an indicator of disease carrying pathogens in the aquatic environment although it normally does not cause disease. Typical sources of bacteria are from sewage, stormwater overflows, poor pasture management and animal-keeping practice, urban runoff, etc. The presence of excessive bacteria may also indicate other potential problems such as low dissolved oxygen in the surface water. From the water sampling conducted, the levels of coliform bacteria at P1 are considerably high. This location is near to Kg settlements, which are sited about 600m west of the sampling location. There are open discharged toilets observed in this settlement, hence the elevated level of coliform may be contributed by the direct discharge of wastewater to the open sea.

In addition, for P7 results parameters such as lead and mercury exceed the limit of Class E: Both heavy metals exceed the stipulated limit due to housing development noted upstream from the river mouth of Sg Kina Benuwa.

3.2.7 Seabed Sediment

3.2.7.1 Seabed Sediment Sampling

The assessment of sediment quality and its chemical composition is necessary in order to study the impacts of the proposed project’s activities to the marine ecology environment, which are generally related to the potential leaching of hydrocarbon, upwelling of settled compounds and transportation of contaminants from water column to the benthos. This sediment physicochemical characteristic study will be used to ascertain whether there is significant amount of contaminants generated from the proposed development activities being deposited in the sediment, which then may be transferred and accumulated to the benthic fauna food chain.

1Reference: http://www.soil.ncsu.edu/publications/BMPs/glossary.html & http://www.state.ky.us/nrepc/water/wcpdo.htm.

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Eleven (11) seabed sediment grab samples were collected in April 2013 near the vicinity of the reclamation site while eight (8) seabed sediment grab samples were collected at the sand borrow site. Refer to the sampling details in Table 3.2.9 and Table 3.2.10 . Table 3.2.9: Sediment Sampling Location at the Reclamation Site Sampling Point Longitude Latitude R1 E 115° 12' 36.37" N 5° 16' 26.64" R2 E 115° 12' 30.97" N 5° 16' 9.94" R3 E 115° 13' 17.49" N 5° 16' 3.51" R4 E 115° 13' 3.44" N 5° 15' 58.63"

R5 E 115° 12' 35.34" N 5° 15' 48.87" R6 E 115° 12' 44.59" N 5° 15' 28.01" R7 E 115° 12' 56.41" N 5° 15' 7.45" R8 E 115° 13' 8.49" N 5° 14' 50.23" R9 E 115° 13' 14.77" N 5° 15' 16.64" R10 E 115° 13' 14.76" N 5° 15' 3.57" R11 E 115° 13' 30.00" N 5° 14' 47.14"

Table 3.2.10: Sediment Sampling Location at the Sand Borrow Site Sampling Point Longitude Latitude B1 E 115° 18' 33.10" N 5° 14' 59.17" B2 E 115° 18' 52.75 N 5° 14' 59.17" B3 E 115° 19' 12.40" N 5° 14' 59.17" B4 E 115° 18' 45.02" N 5° 14' 42.11

B5 E 115° 19' 2.58" N 5° 14' 37.50" B6 E 115° 19' 12.40" N 5° 14' 37.50" B7 E 115° 18' 33.10 N 5° 14' 15.83" B8 E 115° 19' 12.40" N 5° 14' 15.83"

The seabed sediment samples were analysed for particle size distribution (using sieve and hydrometer analysis) and also heavy metals parameters which include lead, copper, zinc, cadmium, chromium, mercury and arsenic. The sampling results are further elaborated in the following sub-sections.

3.2.7.2 Heavy Metals Concentration

The laboratory analysis results for the seabed sediments’ chemical composition are as shown in Table 3.2.11 for the reclamation site and Table 3.2.12 for the sand borrow site. To ascertain the sediment quality, the concentrations of heavy metal results were compared to the National Oceanic and Atmospheric Administration (NOAA). The lower 10 percentile data were identified as Effects Range-Low (ERL), and the median as Effects Range-Median (ERM). The laboratory analysis results for the seabed sediments are appended in Appendix 3.2.7.

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Table 3.2.11: Sediment Analysis at the Reclamation Site NOAA 2 Parameter (s) R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 ERL ERM

Lead (as Pb), 16.1 29.8 16.8 15.1 6.7 <1.5 18.1 16.2 21.5 14.0 13.8 46.7 218 mg/kg

Copper (as Cu), 13.2 5.6 4.4 5.3 6.2 <1.5 10.4 9.7 41.8 9.4 8.5 34 270 mg/kg

Zinc (as Zn), 76.9 36.0 29.7 34.7 49.9 6.4 60.5 57.6 43.3 47.8 49.4 150 410 mg/kg

Cadmium (as <1.5 3.2 1.8 2.2 <1.5 <1.5 <1.5 <1.5 2.2 <1.5 <1.5 1.2 9.6 Cd), mg/kg

Chromium (as 12.4 10.7 5.1 8.1 5.5 2.2 10.1 8.4 7.7 8.1 7.9 81 370 Cr), mg/kg

Mercury (as Hg), <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 0.15 0.71 mg/kg

Arsenic (as As), <1.5 5.0 <1.5 2.5 <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 8.2 70 mg/kg

2 The National Oceanic and Atmospheric Administration (NOAA) is a federal agency focused on the condition of the oceans and the atmosphere.

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Table 3.2.12: Sediment Analysis at the Sand Borrow Site NOAA Parameter (s) B1 B2 B3 B4 B5 B6 B7 B8 ERL ERM Lead (as Pb), mg/kg <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 19.3 1.9 46.7 218 Copper (as Cu), mg/kg 1.9 <1.5 <1.5 43.0 <1.5 <1.5 10.6 3.2 34 270 Zinc (as Zn), mg/kg 5.9 5.3 5.4 8.9 7.0 8.8 62.2 20.4 150 410 Cadmium (as Cd), mg/kg <1.5 <1.5 <1.5 <1.5 1.5 <1.5 <1.5 <1.5 1.2 9.6 Chromium (as Cr), mg/kg 1.8 2.7 1.8 3.0 3.8 2.4 10.8 4.8 81 370 Mercury (as Hg), mg/kg <0.1 <0.1 0.3 <0.1 <0.1 <0.1 <0.1 <0.1 0.15 0.71 Arsenic (as As), mg/kg <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 8.2 70

Results

Based on the laboratory analysis results shown in Table 3.2.11 and Table 3.2.12 , all parameter are within the limit of NOAA sediment quality of Effects Range-Low (ERL) and Effect Range-Median (ERM) limit. The ERL and ERM are not threshold values to determine whether toxicity will occur - they are relationships between bulk chemical concentrations and toxicity effects that are expressed along a continuum. There is no concentration above which toxicity will occur and below which toxicity will not occur.

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3.2.7.3 Particle Size Distribution

The same samples for seabed sediments obtained using a grab sampler was also analysed to determine the percentage of various particle sizes at the proposed reclamation and sand borrow sites. Laboratory analyses were carried out using dry sieving methods (sieve analysis 3) for the identification of Particle Size Distribution. In overall, the results showed that the sediment sizes are generally divided into four (4) categories: Table 3.2.13: Various Sediment Type and Size Sediment Type Particle Size

Clay < 0.02 Silt 0.02 – 0.075 Sand 0.075 – 2.00 Gravel (Coarse Sand) > 2.00

The particle size distribution (PSD) results are summarised in Table 3.2.14 and Table 3.2.15 . The PSD compositions are also illustrated in Figure 3.2.6, and Figure 3.2.7 for both the reclamation site and sand borrow site, respectively. From Figure 3.2.6, it can be seen that the main compositions of sediments at the vicinity of the reclamation site are silt (62%) followed by clay (22%) and fine sand (63%).

0% 16% 22%

Gravel, Coarse Sand Fine Sand, Silt Clay

62%

Figure 3.2.6: Summary of Particle Size Distribution (PSD) Composition, Reclamation Site.

3 Sieve Analysis is a simple method of shaking the sample in sieves until the amount retained becomes more or less constant. Alternatively, the sample may be washed through with a non-reacting liquid such as water or blown through with air current.

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As for the sand borrow site (see Figure 3.2.7), the main PSD compositions are fine sand (78%), followed by silt (16%), clay (3%) and coarse sand (3%).

3% 3%

16%

Gravel, Coarse Sand Fine Sand, Silt Clay

78%

Figure 3.2.7: Summary of Particle Size Distribution (PSD) Composition, Sand Borrow Site. Table 3.2.14: Percentage of Particle Size Distribution (PSD) Composition – Reclamation Site

Parameter (s) R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11

Particle Size Distribution Gravel, Coarse 0 3.2 0.4 0 0 0 0 0 0 0 0 Sand, % Fine Sand, % 0.8 61.2 12.1 40 2.2 66 0.9 0.4 13.2 0.2 0.8 Silt, % 99.2 35.6 87.5 60 97.8 34 60.7 70.3 78.8 65 60.9 Clay, % 0 0 0 0 0 0 38.4 29.3 8 34.8 38.3

Table 3.2.15: Percentage of Particle Size Distribution (PSD) Composition –Sand Borrow Site

Parameter (s) B1 B2 B3 B4 B5 B6 B7 B8

Particle Size Distribution Gravel, Coarse Sand, % 14.5 2.9 0.9 0 1 1.3 0 0 Fine Sand, % 82.6 97.1 98.9 99.4 98.3 92 5.4 57.7 Silt, % 2.9 0 0.2 0.6 0.7 6.7 74.6 42.3 Clay, % 0 0 0 0 0 20 0

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3.2.8 Baseline Air Quality

Baseline air quality sampling is established at two (2) locations, i.e. project boundary and nearest receptor of the reclamation site (i.e. Kg Rancha-Rancha Laut). No sampling is deemed necessary at the sand borrow site since it is entirely surrounded by sea and the nearest receptor is 2 km away. See Figure 3.2.5 for the baseline sampling points.

Plate 3.1: Ambient air quality and noise Plate 3.2: Ambient air quality and noise level sampling at N1. level sampling at N2.

The weather condition on the day of sampling in March 2013 was generally fine and sunny. Details on the air quality sampling locations are presented in Table 3.2.16 . Table 3.2.16: Baseline Air Quality Monitoring Location Sample ID GPS Coordinates Description N 05° 15’ 32.41” Kg Rancha-Rancha Laut, N1 E 115° 13’ 33.00” north east of reclamation site N 05° 15’.33.34” On the immediate east of the N2 E 115° 14’ 5.74” reclamation site boundary

The parameter tested for air quality analysis was Total Suspended Particulates (TSP). The air quality result from the baseline air sampling is compared to the Malaysian Ambient Air Quality Guidelines (MAAQG). Refer to Appendix 3.2.8 . The result of the ambient air sampling is summarized in Table 3.2.17 and full laboratory result are appended in Appendix 3.2.8 . Table 3.2.17: Baseline Air Quality Result Results MAAQG Parameter N1 N2 Total Suspended Particulates (TSP) 19.0 37.8 260 µg/m 3

From the result shown in Table 3.2.17 , the baseline air quality recorded is well below the 260 µg/m 3 level stipulated under the Malaysian Ambient Air Quality Guidelines.

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3.2.9 Baseline Noise Levels

The intensity of noise generated can have a direct impact on human. The acceptability of a new noise source is much dependent on the existing noise level and this will determine the impact during the development stages of the Project.

Baseline noise monitoring for day time and night time was carried out to establish the existing background noise levels at the project site and its surrounding areas. The noise monitoring station established in March 2013 is as tabulated in Table 3.2.16 and illustrated in Figure 3.2.5. Noise sampling is not deemed necessary at the sand borrow site since it is surrounded by sea and the nearest receptor is 2 km away.

The measuring period for both day and night time is one hour per reading. The instrument used to monitor the noise level is a sound level meter 4. Main parameters 5 6 7 8 9 obtained were the L eq , L 10 , L90 , L min and L max percentile (statistical) levels. Results and observations on site with regards to the noise sources are as summarised in Table 3.2.18 and appended in Appendix 3.2.9 . Table 3.2.18: Baseline Noise Level Results Noise Parameter, dB(A) Date Time Leq Lmin Lmax L10 L90 N1 – At Kg Rancha-Rancha Laut Night Time 10.00 PM – 7 AM 52.9 33.0 80.7 53.6 46.7 (5 th March 2013) Day Time 7 AM – 10.00 PM 54.3 39.7 85.3 54.6 51.5 (6 th March 2013) N2 – On the Immediate east of the Reclamation Site Boundary Night Time 10.00 PM – 7 AM 49.7 47.2 69.5 47.3 47.3 (9 th March 2013) Day time 7.00 AM – 10.00 PM 51.1 24.2 85.5 43.1 26.6 (10 th March 2013) 70 Day Time Schedule 1 (Designated Industrial Zones) 60 Night Time

The noise level results indicate considerably acceptable noise levels of L eq for both N1 and N2. Based on the Department of Environment (DOE) guidelines – “The Planning Guidelines for Environmental Noise Limits and Control” under Schedule 1: Designated Industrial Zones (see Appendix 3.2.9 ), the recommended maximum permissible

4 The sound level meter will be set to measure instantaneous sound pressure level continuously for the entire period of day (about 7.00 A.M. to 10.00 P.M.) and night (about 10.00 P.M. to 7.00 A.M.). Results obtained directly from the meter’s computation are L eq day, (hourly basis for 15 hrs and L eq night, 9 hrs and the respective L max , Lmin , L10 and L 90 in dB(A). 5 Leq is the constant sound level that, in a given situation and time period, conveys the same sound energy as the actual time-varying A-weighted sound. 6 L10 is the measured tenth percentile sound level for the respective time period of the existing areas of interest in the absence of the proposed new development. 7 L90 is the measured ninety percentile sound level for the respective time period of the existing areas of interest in the absence of the proposed new development. 8 L min is the lowest noise level measured during the measurement time. 9 L max is the highest noise level measured during the measurement time.

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sound level by receiving land use for industrial areas are 70 dB(A) for day time and 60 dB(A) for night time, respectively.

From site assessment, the main noise sources during day time and night time were recorded to be mainly from vehicular movements around the industrial area. 3.3 Marine Ecology

The marine ecological and fishery surveys were conducted between the 8th and 16th of March, 2013. The detailed survey work included a total of eighteen (18) underwater survey sites, fourteen mangrove survey sites and thirty fishery questionnaires.

In order to obtain a graphic depiction of the proposed reclamation site, borrow site and potential nearby areas that could be impacted, underwater video surveys were conducted to provide a qualitative description of the survey zone with regard to substrate condition and macrobenthos type. Benthic transects were also undertaken where appropriate to provide quantitative data about the macrobenthic composition. Additionally nearby mangroves were surveyed regarding their health and composition, and finally local fishermen were interviewed about their fishing practices and sightings of protected species such as dugongs and turtles.

Video transects were recorded using HD underwater cameras and uploaded in an uncompressed format, following which video overlays were added to identify sites, dates and depths using post production processes. These were then compiled in a menu-selective interactive DVD. Digital media was uploaded to DVD for submission to the client. Identification of major benthic fauna was made by reference to the peer- reviewed publications.

3.3.1 Methodology

3.3.1.1 Survey Locations

As the standard for all geographic coordinates for this survey the World Geodetic System (WGS) 1984 chart datum was used to plot the locations of the survey sites.

Video and benthic transect site codes and depths are listed in Table 3.3.1. Refer to the survey locations in Figure 3.3.1, Figure 3.3.2 and Figure 3.3.3. Table 3.3.1: Benthic Transect Locations Site Depth (m) Lat Long A1 11.7 05°13.735 115°19.520 A2 12.9 05°13.620 115°18.384 A3 4.4 05°14.768 115°19.409 A4 4.1 05°14.806 115°18.410 A5 3.4 05°15.510 115°18.803 A6 7.4 05°14.293 115°18.973 C1 6.3 05°14.933 115°12.892 C2 6.5 05°14.018 115°13.974 C3 5.0 05°14.309 115°11.379

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Site Depth (m) Lat Long C4 3.6 05°15.335 115°13.342 C5 7.8 05°14.788 115°12.441 C6 4.7 05°14.828 115°12.137 V1 12.5 05°14.039 115°13.527 V2 12.1 05°14.399 115°12.779 V3 11.9 05°14.607 115°12.957 V4 8.0 05°14.633 115°13.507 V5 6.3 05°15.032 115°13.525 V6 4.3 05°15.265 115°13.050

3.3.1.2 Macrobenthos Surveys

3.3.1.2.1 Methodology

Macrobenthos (large, sessile marine organisms such as sea pens, soft corals and echinoderms) diversity and presence/absence were assessed by conducting short investigational dives. Using a small robust high-definition (1080p, 60fps) hand held video camera system; divers descended at six (6) pre-selected positions at the proposed reclamation site, and an additional six (6) positions surrounding the proposed sand borrow site ( Figure 3.3.1 and Figure 3.3.2). Straight line transects were conducted with videos typically lasting 1-2 minutes in duration. Each video transect was numbered and recorded in electronic format for subsequent analysis, and the position and depth of each recording was logged. The positions were recorded using a Garmin GPS60 (± 5m). Initial video was reviewed to check that the footage already obtained was suitable for analysis. In cases where this was found unacceptable, transects were repeated. Video clips were examined to get an overview of the sample site, and to obtain substrate and species data.

Figure 3.3.1: Macrobenthos survey sites at the Reclamation Site.

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Figure 3.3.2: Macrobenthos survey sites at the Sand Borrow Site.

3.3.1.2.2 Results

Reclamation Site

The survey sites were located within a 5 km radius of the reclamation site. There is a substantial discharge from Sg. Kina Benuwa which traverses the survey sites, which results in increased levels of fine particulate matter (increased suspended sediment). These conditions limit the wide distribution of sessile organisms, such as corals, that rely on photosynthesis to feed, and result in soft fine sediment substrates which do not promote a large diversity of flora and fauna. Table 3.3.2: Results of Marchobenthos Surveys at the Reclamation Site Site Visibility Substrate Description A muddy substrate with fine sedimentation characterised the benthos at this site. Particulate matter was easily disturbed resulting in increased Mud / Fine V1 Poor particle suspension hence the poor visibility. Sediment Annelid worm burrows were in low numbers. High levels of sediment inhibit light penetration and no corals were recorded. A thick layer of mud with fine sedimentation resting atop the benthos. As mentioned in V1 this was easily disturbed. Annelid worm burrows were present as with other muddy sites. A second species of Annelid Extremely worm was indirectly recorded at this site through a V2 Mud Poor differing feeding strategy, evident by star-shaped feed channels in the sediment, as opposed to the usual conical-mound burrowing Annelids commonly found in these habitats. Neither living nor dead corals were recorded. A dense, fine muddy substrate with fine, easily V3 Very Poor Mud resuspended particulate matter on top. Only Annelid worms appear to be present epibenthically in substantial numbers, with neither living nor dead

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Site Visibility Substrate Description corals recorded A dense, fine muddy substrate with fine particulate matter resting on top, easily resuspended. High levels of particles in suspension, resulting in extremely low Extremely visibility. Indications of shell litter suggest an V4 Mud Poor endobenthic bivalve community, however high sedimentation buries and prevents exposure of living specimens. The potential for living substrate to survive here was considered marginal. A dense, fine muddy substrate, with easily disturbed sediment on top. Annelid worms were the most prevalent organism, with small Gastropod snails recorded on top of the sediment in low abundance. In V5 Very Poor Mud rare occurrences single fronds of algal assemblages protruding from the sediment were recorded. This could be an indicator that sedimentation is not a rapid as in other sites visited previously. Again there was a lack of living or dead corals. A dense, fine muddy substrate, with easily-disturbed sediment on top. Greater levels of particulate suspension occurred here, as at site V4. Annelid Extremely V6 Mud worms were the most prevalent organism, with low Poor numbers of small Gastropods on top of the sediment covered in freshly settled particulate matter, inferring a high rate of sedimentation. No living or dead corals.

Sand Borrow Site

The sand borrow site was typified by a mixture of muddy and sandy bottoms, inhabited mainly by Annelid worms and small gastropods. The visible epibenthic (living on the surface) community was low in diversity and coverage. Visual clues provided by the topography and shell litter on the surface sediment indicated the prevalence of endobenthic organisms, notably annelid worm and bivalve molluscs. There were no significant aggregations of corals with the exception of the Heterocyathus sp. specimens found scattered at two (2) locations. Dead corals were also lacking, due to the unavailability of hard substrate for corals to colonise and low levels of light penetration. Table 3.3.3: Results of Marchobenthos Surveys at the Sand Borrow Site Site Visibility Substrate Description A thick, mostly flat, muddy substrate with an extremely low level of fauna. Various Gastropods were recorded in extremely sparse aggregations. A regular occurrence of burrows suggests an abundance of A1 Moderate Mud Annelid worms (Annelida) living within the benthos (endobenthic). There were no corals present nor any dead corals, indicating an inability for coralline settling, nor the ability for this site to support the biological needs of such organisms. A thick, mostly flat, muddy substrate with a low level of faunal coverage. The occurrence of sand mounds created by Annelida (Class Polychaeta), suggests a sandy bottom is present beneath the surface layer of A2 Moderate Mud /Silt mud. An abundance of mud burrows further suggests the common presence of Annelida. There were occasional records of sea pens (Pennatulacea), and an abundance of dead branching algae. Solitary, free-living corals (Heterocyathus sp.) occurred frequently. A soft coral

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Site Visibility Substrate Description species ( Sinularia sp.), was also present though in very low density. A thick, uneven, muddy substrate. Annelid worms were present in large numbers, evident by the amount of burrows and mounds. Heterocyathus sp. was common, A3 Moderate Mud along with sea pens (Pennatulacea). Singular assemblages of branching algae were frequently recorded An uneven sandy bottom with a thin layer of mud coverage. Annelid mounds were fairly common. There was an abundance of unoccupied bivalve mollusc shells Moderate/ found gathered in patches, suggesting the presence of a A4 Sand/Mud predatory organism actively removing them from the Good benthos. Gastropods (Cerithiodea) were also common. Fish were present at this site. Small fish (Gobiidae) were recorded occupying a sand burrow. Large motile urchins were also present, although in low numbers. A smooth sandy bottom littered with gastropods and the occasional bivalve shell. The presence of egg clusters Moderate/ suggests this to be a laying site for a species of fish. A5 Sand Good Closer inspection revealed well developed juveniles encased within each egg. Annelid worms and sea pens (Pennatulacea) were abundant. No corals were recorded A craterous muddy bottom with regular occurrences of sand mounds, both topographic features are formed by various annelid worms. Gastropods littered the surface of the benthos, accompanied by small localised patches of A6 Moderate Mud red algae, suggesting a lack of rapid sedimentation or sediment disturbance. Small clusters of sponges were found here aggregated in sparse distributions. Calciferous urchin skeletons were noted, indicating an urchin population, although relatively sparse

3.3.1.3 Coral Cover Surveys

3.3.1.3.1 Methodology

Coral reef habitats were assessed using protocols developed as part of the ASEAN- AIMS marine sampling strategy (English et al. 1997). The coral cover and percentage live cover were assessed by growth form category by conducting replicate 30m line transects at the primary reef depth at a six key coral reef sites within 5 km of the reclamation site (indicated as CR1 – CR6 in Figure 3.3.3). Three replicates of 30m long surveys were conducted, separated by at least 5m. Replicate transects were in locations that exhibited anything other than a singular bottom type, as opposed to only in the best or worst areas. Data was recorded on waterproof data sheets and subsequently transcribed to electronic format.

Video and photographic surveys were conducted using SCUBA equipment and in adherence to the Scientific and Archaeological Diving Practices (SI 1997 2776) under the Approved Code of Practice (ACOP) of the UK Health and Safety at Work Act (1974). All diving was monitored by a diving officer and detailed records of the diving practices were maintained in a diving log. Nitrogen build-up was monitored using a Suunto Viper dive computer and kept within US Navy dive table limits. Video was recorded using a HD digital (1800fps) camera in an underwater housing using natural

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light and auto white-balance. Digital still photographs will be taken with a Nikon D700 in a Nexus Housing with twin Inon strobes, providing 16MB resolution per frame.

Figure 3.3.3: Coral Reef Survey Sites.

3.3.1.3.2 Results

Within these sites there are two clearly divisible substrate types. One being that of a muddy bottom lacking significant diversity, as was typified by the sand borrow site, the other being of a relatively diverse community of living corals. Sites such as C2 and C3 demonstrate the greatest diversity and abundance of corals, possibly due to their location at the fringe of the bay. Here they are furthest away from the freshwater discharges. Sites such as C1, C4 and C5 are deeper and closer to the sources of sedimentation and are in locations where water movement to remove such sediment is limited. An exception is C6, which exhibits living substrate cover, but it is dominated by algae as opposed to coralline assemblages. It is located in the middle of the bay in clearer waters. At the more diverse sites (C2, C3, C6) there was a clear abundance of dead corals and sand. Many of the diverse sites demonstrated patchiness in their assemblages of coral. Large expanses of dead coral were interrupted by successful communities. Table 3.3.4: Results of Coral Survey Site Visibility Bottom Type Description A hard substrate bottom, typically consisting of rocks and dead coral divided by patches small of sand. Algal assemblages were common and moderately sized, individual C1 Good Rock/Sand/Dead Coral barrel sponges were patchily distributed. A small number fish belonging to the families Labridae (wrasse) and Pomacentridae (damsel fish) were present. Coral coverage was less than 5% approximately, the majority

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Site Visibility Bottom Type Description being small rounded coral colonies. A mixture of hard substrate consisting of mainly dead corals, separated by expanses of sand. Gorgonian soft corals were abundant, along with C2 Good Dead Coral/Sand low levels of large sponges. Xenia sp. soft corals were present in smaller numbers. Overall coverage was approximately 15% of sparsely populated massive and submassive corals. A hard substrate consisting of dead coral covered with red/brown algae. Two distinctly different bottom types: An expansive, relatively low diversity dead coral transitions into a reef crest with localised coral coverage of more than Dead Coral, Sand, 60%. Barrel sponges ( Xestospongia sp.), rare C3 Moderate Reef Crest occurrences of sea pens (Pennatulacea) and some soft corals typify the dead coral side of this site. The reef crest however boasts branching Acropora sp., digitate and submasive corals. Larger damsel fish (Pomacentridae) were recorded than at previous sites such as C1 A flat sandy bottom with slight sedimentation on top. Anemones can be found at this site, although not in great numbers. Annelid worms C4 Poor Mud/Sand were evident, along with a small number of Gastropod snails. Medium sized algal assemblages were sparse and patchy. No coral was recorded A thick muddy substrate littered with collections of dead sea pens (Pennatulacea) protruding from the sediment. Living sea pens were recorded, but were sparsely distributed. There C5 Poor Mud was evidence of Annelid worms such as noted at other muddy sites, although burrow numbers suggest these were less abundant at this site. No coral was recorded. A hard substrate consisting of predominantly of dead corals and sand with occasional patches of red/brown algae. The most common living macrobenthos were algal assemblages and Moderate/ foliose corals. Some soft corals were noted in a C6 Dead Coral/Sand few instances with occasional occurrences of Good massive and submassive corals, and barrel sponges (Xestospongia sp.). The site had roughly a 30% of living macrobenthos, of which roughly 7% constituted corals, the balance being predominantly algae.

Of the six preselected sites where a diverse benthos type was expected, four warranted conducting line intercept surveys and invertebrate counts. These were sites C1, C2, C3 and C6. Sites C4 and C5 were deemed to not have enough diversity to be able to obtain sufficient data in order to provide quantitative analysis, therefore it was judged that the visual data from the video transects of these sites would be sufficient to provide an accurate qualitative representation these areas.

Figure 3.3.4 depicts the general categorization of the benthic cover findings into three main categories: (i) living coral, (ii) dead coral and other non-living substrate, and (iii) other living invertebrates. The series of graphics presented in Figure 3.3.5 to Figure

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3.3.10 illustrate the results of the line-intercept transects to determine coral and other living invertebrate cover at each site.

Figure 3.3.4: Generalised classification of benthic cover: The oval on the left (green) encompasses all living corals, both Acropora spp. and non-Acropora spp. The middle oval (orange) covers all other living invertebrates such as soft corals, ascidians, sponges and algae. The right oval (red) depicts all non-living substrate including dead coral, rubble, silt and sand. Key: ACB - Acropora spp. Branching; ACD - Acropora spp. Digitate; ACE – Acropora spp. Encrusting; ACS – Acropora spp. Submassive; ACT - Acropora spp. Tabulate; CD - Coral Digitate; CB - Coral Branching; CE - Coral Encrusting; CF - Coral Foliose; CM - Coral Massive; CMR - Mushroom Coral; CS - Coral Submassive; SC - Soft Coral; OT - Other life forms; SP - Sponge; ZO – Zooanthid; AA – Algal Assemblage; DC - Dead Coral; R - Rubble; RCK – Rock; S – Sand.

Site C1 : Site C1 had a significantly higher proportion of inert substrate types such as sand and dead coral, with no living coral types are present in abundances more than 4%, partly due to the sandy substrate which is not an adequate surface for coral colonisation ( Figure 3.3.5). The most successful living organism was algae, known to flourish in areas in which corals struggle and to indirectly increase coral mortality via microbial activity (Smith et al, 2006).

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Figure 3.3.5 : Classification of benthic cover at site C1.

Site C2 : The greatest proportion of the substrate was occupied by dead coral and rubble, however both branching and tabulate Acropora spp. were successful in moderate abundances, as were soft corals ( Figure 3.3.6). These types of coral are fast growing, and typically account for a third of all reef building corals. The combination of these coral types and high levels of dead coral suggest that there is a high turnover of living material triggered by environmental or anthropogenic limiting factors.

Figure 3.3.6: Classification of benthic cover at site C2

Site C3 : Site C3 recorded a majority cover of branching Acropora spp. , followed by a substantive coverage of dead corals. Other living substrate types such as coral foliose, Digitate Acropora sp. and encrusting corals survived in smaller numbers (Figure 3.3.7). As at site C2 the high coverage of branching Acropora spp. and dead coral suggests a high turnover of living material, although perhaps not at the same rate, as the Acropora spp. appear to be more stable with larger colony sizes.

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Figure 3.3.7: Classification of benthic cover at site C3

Site C6 : Site C6 was dominated by non-living substrate types, particularly dead coral which accounted for more than 40% of the total substrate. There was a reasonable level of diversity amongst the living substrate types although none were prevalent ( Figure 3.3.8). Foliose and encrusting coral types were the most abundant with the exception of algal assemblages.

Figure 3.3.8: Classification of benthic cover at site C6.

Overall, when data was combined for all four sites, the dominant substrate types were dead coral, rubble and sand ( Figure 3.3.9). The combined average coverage of non-living substrate types across all sites was 66% ( Figure 3.3.10 ). Trends in living substrate coverage can be indicators of the overall health and diversity of the marine environment from location to location. Figure 3.3.10 compares the combined total coverage of living and non-living substrate types as indicators of the general health of each transect site. Branching Acropora spp. were by far the most successful coral type possibly due to its rapid rate of growth. There was a healthy diversity amongst other differing, living substrate types; however the low abundances are not indicative healthy communities.

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Figure 3.3.9: Classification of substrate coverage across all sites.

The least biologically diverse sites were C6 and C1 with the vast majority of substrate coverage being non-living. These sites are situated at locations within the bay where they are subjected to discharges from the river and effluents from nearby industries. As a result sedimentation is higher and likelihood of corals being able to colonise the substrate and survive is lower. Additionally, organisms which filter feed such as sponges and other soft corals also have a reduced likelihood of survival as fine particulate matter may clog the mechanisms with which they feed. Sites C2 and C3 demonstrated a more balanced coverage of living and non-living substrate types. These areas are located beyond the bay where the flow of cleaner waters is greater, bringing increased nutrients and removing sediment. As a result living substrate types are able to survive and grow, and in the case of C3 be more abundant than the non-living substrate.

Figure 3.3.10: Comparison of living and dead substrate types at each individual site.

3.3.1.4 Invertebrate Surveys

3.3.1.4.1 Methodology

Invertebrate spot counts were conducted in unison with the coral reel line intercept surveys and at the same locations. Three (3) replicates of 50m x 5m bands (250m 2) were conducted at each of the survey sites. Data was recorded on waterproof data sheets and subsequently transcribed to electronic format. These bio-inventories provide a quantitative

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means of assessing biodiversity abundance of macro-invertebrate species and provide an indication of the overall community health at each site.

3.3.1.4.2 Results

Invertebrate counts permit direct and indirect assessments of the health of marine habitats. For example, invertebrates such as sea urchins (Echinoidea) in small abundances are generally a sign of a healthy habitat as they graze algae which compete for space with other living substrate types. However, a large abundance of Echinoidia cause bioerosion and damage corals. This is an example of a direct assessment. As an example of an indirect assessment, the presence of giant clams (Tridacnidae) can indicate a healthy reef environment, as they require clean, unpolluted waters in which to grow and reproduce. Generalised descriptions are provided for each of the four key sites:

Site C1 : A reasonable level of biodiversity was evident at site C1. Shrimps were the most common invertebrate found. At this site they were found to be living symbiotically with gobies (Gobiidae). Nudibranchs and other gastropods which graze algae from the substrate were also present. Feather stars (Crinoids) which filter feed particulate matter in suspension were also found at this site suggesting higher water quality. It should be noted that although there is substantial diversity, numbers of each invertebrate type were fairly low (<14) for the 750m 2 of transect.

Site C2: Crinoids were prevalent here in substantial numbers, indicating greater water quality at this location. The large numbers also suggest that there is sufficient plankton in the water to support a large filter-feeding population.

Site C3: Sea urchins dominated at this site in substantially higher numbers compared to invertebrate abundances at other sites. At this site the urchin population may be detrimental to the reef habitat given the large numbers.

Site C6: C6 showed low numbers of individuals, the most abundant record being three echinoderms.

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Figure 3.3.11: Invertebrate counts across transect sites C1-C6.Key Invertebrate types recorded included sea urchins, sea stars and sea cucumbers (Echinodermata), clams (Tridacnidae), shrimps and crabs (Decapoda), feather stars (Crinoidea), Anemones (Cnidaria), nudibranchs and snails (Gastropoda).

When considering the total number of invertebrates recorded over the four (4) 750m 2 transects two invertebrate types were prevalent: sea urchins and crinoids ( Figure 3.3.12 ). Urchins are artificially dominant across all sites, but they were found inhabiting only one site in excessive numbers. Crinoids were consistently present across all sites. Gastropods were also able to occupy a variety of substrate types explaining their presence at all sites.

Figure 3.3.12: Relative percentage abundance of invertebrates

3.3.1.5 Mangrove Survey

3.3.1.5.1 Methodology

Mangrove ecosystems have important ecological and socioeconomic values to the lives and livelihoods of coastal communities and play vital coastal protection roles. These ecosystems also provide valuable life support services such as the fisheries nursery and habitat, coastal protection, or water quality services yielded.

Mangrove distribution and composition was determined via visual identification and photographic sampling. Sampling was conducted at five main locations and at nine additional locations possessing notable characteristics, spanning approximately four

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km of mangrove habitat between Kg Rancha Rancha and Kg Bebuloh ( Figure 3.3.13 ). Photographic documentation was used to provide descriptions of these ecosystems, as well as first hand visual identification of characteristics and species assemblage.

Figure 3.3.13: Mangrove survey locations.

An overlay of the hydrographic chart No. BA1844 and Google Earth graphics (© MapIt and 2012 DigitalGlobe) provided the baseline spatial distribution of mangrove areas, which have been transcribed into digital format and presented separately. Mangrove areas were manually digitised as polygons in Google Earth Pro 5.2.1.1329 (beta version) and saved as .kmz files. These were subsequently imported into ESRI’s ArgGIS 10.0 and converted to shapefiles (.shp) which can be accessed by most geographical information systems, and for import into Sabah State archives. These Shapefiles are provided in electronic format on DVD, along with video and digital image files. The overall distribution of mangrove and nipah palm is shown as outlined areas in Figure 3.3.14 .

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Figure 3.3.14: Distribution of mangrove habitats near the Reclamation site.

The Mangrove communities located between Kg. Bebuloh and Kg. Rancha Rancha Darat maintain a similar community structure in the majority of locations throughout the length of the mangrove habitat. Sonneratia ovata and Sonneratia alba , characterised by their flat, oval, leathery leaves are found in abundance at the mangrove fringe, also known as the mangrove belt. In the more inland and densely populated parts of the mangrove; species dominance transitions to Rhizophora apiculata which possess complex matrices of aerial roots and long radicles. To a lesser extent there is also coverage of Avicennia sp ., also known as the white mangrove.

The exception to this assemblage is in locations in the river mouth of Sg. Kina Benuwa, or situated within close proximity to the river outlet, where salinity is lower than in other locations further from the river and there is a noticeably sparser presence of Sonneratia spp . and a prevalence of Rhizophora sp . at the fringe. Avicennia remains present though not prevalent, much the same as in other locations.

Near Kg. Bebuloh the mangrove undergoes a community transition. In dryer areas such as the mud flats the mangrove palm Nypah fructus was found, and there is a dramatic change from mangrove trees dominance to a prevalence of larger palm trees and other more-terrestrial plants.

In the majority of locations the mangrove showed signs of being in healthy condition, however there were some areas where evidence of anthropogenic impacts such as accumulation of litter, encroachment of infrastructure development and human settlement. Localised destruction was also evident ( Plate 3.3 and Plate 3.4), possibly due to storm damage, however the presence of saplings growing in these areas suggests an overall ability for the mangrove to adapt to these stressors.

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Plate 3.3: Typical mangrove forest located between Kg Bebuloh and Kg Rancha Rancha: Sonneratia sp . fringing the sea.

Plate 3.4: Typical mangrove forest located between Kg Bebuloh and Kg Rancha Rancha: Rhizophora sp. fringing Sg. Kina Benuwa.

Various bird species were observed, although not in abundance. When surveying the mangrove mudflats there were mudskippers in abundance, however we recorded a distinct lack of decapods such as fiddler (Uca sp.) and mud (Scylla sp.) crabs. These species can usually be identified by their mud borrows and by audible snapping sounds.

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Plate 3.5: Damage to mangrove and human settlement encroachment, along with new saplings.

3.3.1.6 Fisheries Socio-Economic Survey

3.3.1.6.1 Methodology

Fishery composition and characteristics were determined through an assessment of characteristics of local, artisanal fisheries using a modified questionnaire based on the world-recognised fishery and bycatch questionnaire surveys developed by Duke University (Moore et al. 2010) and modified by Pilcher & Kwan (2012).

Semi-structured interviews were conducted with 30 fishers via targeted visits to Kg. Bebuloh authorised by the Ketua Kampung. Surveys addressed fisher background, fishing methods, catch trends, value and importance. Interviews also touched on perceptions of fishery trends and on the presence of dugongs and marine turtles, two species known to occur in Brunei Bay from Labuan inland to Teluk Padas and southward to Lawas (Jaaman & Lah-Anyi 2003), and which are fully protected in Sabah under the Wildlife Enactment and Federally through the Fisheries Act (1985) and the Wildlife Protection Act (1972).

3.3.1.6.2 Results

Results from the semi-structured interviews conducted with 30 fishers in the vicinity of Kg. Bebuloh and Kg. Rancha-Rancha provide baseline information on fisher background, fishing methods, catches, catch per unit effort, value and importance. Interviews also touched on perceptions of fishery trends, value and importance. Fishers were also asked to identify the areas surrounding Labuan that they visit to catch fish, allowing the key fishing sites to be identified ( Figure 3.3.15 ). The KMZ data files are supplied in electronic format on DVD.

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Interviews were conducted on two separate days, firstly by holding a meeting where fishers could volunteer to attend, secondly by visiting fishers in their home, place of work or in communal areas. All of the respondents were male and aged between 15 and 74 years (a spread of 59 years), with an average of 40 years. A Ryan Joiner test revealed the age data were normally distributed (RJ= 0.988, p>0.100) indicating the interviews covered an evenly distributed age-sample of respondents.

The mean fishing experience across all respondents was 26 years. Experience data were also normally distributed (RJ= 0.971, p>0.100) indicating the interviews covered an evenly distributed experience-sample of respondents. Nearly every respondent indicated their parents and grandparents were also fishers (97% and 80% respectively), providing an indication of experience and generational legacy.

Overall respondents communicated that fishing was their main income-earning activity; of which 90% of respondents stated that fishing was the only way they earned a living. Fishers reported that they fished on average 6 days a week, with the majority fishing all year round.

Figure 3.3.15: Seasonality of fishing activity.

Boats typically were ~5m in length. Some 86% of boats were fitted used outboard motors with low engine power and small crews (usually 2 or 3 persons). Larger boats are not used by the fishers present in Kg. Bebuloh.

Fishing gear usage was diverse, but typically the smaller boats used hook and line or gill nets, some used beach seines but these were mostly as a secondary method to their preferred gear type.

Catches were predominantly for fish, with only 8% of fishers targeting crabs ( Table 3.3.5). Landed catches were reported to range from 5 to 100 kg per outing, with a value of MYR 40 to 700. Unfortunately outings were not described in terms of days, but it is believed that the vast majority of cases were day trips, given vessel size and engine restrictions. Further research would be needed in order to quantify catches per outing, per month, and per year. Some 82% of fishers sell their catch to a third party, the majority doing so at market or to a middle man. None of the respondents claimed to be involved in seaweed farming.

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Table 3.3.5: Use-frequency of fishing gears and target catches Use Frequency Target Catch Only Mostly Sometimes Fish Crab Longline 1 1 Hook and Line 11 5 Purse Seine 1 Beach Seine 2 6 4 Trawl Nets 1 1 2 Gill Nets 7 4 6 8 Traps 2 1 2 Hand Thrown Nets 4 4

With regard to fishery trends; half of those asked believed the overall weight of catches has decreased over recent times (past 5 years), with 29% believing weights remained the same and 21% suggesting the weight of their catches has increased. A total of 93% of respondents believed that the average size of fish caught had decreased, with the remaining 7% suggesting caught fish had remained the same size. The current average size of fish being caught is between 15 and 30cm according to 68% of fishers. But in contrast most respondents suggested the overall catch composition had remained constant over time (79%) with little or no change in the location of the fishing grounds they accessed (81%). Those who claimed there was a change in composition and key fishing areas (21% and 19% respectively) identified an increase in seasonality as the main deviation from the past 5 years.

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Figure 3.3.16: Density graphic indicating primary fishing areas for the 30 respondent interviews.

As part of the semi-structured interviews, fishers were also asked about sightings of turtles and dugongs in order to ascertain abundances in the Labuan fishing areas. These data provide important information to management agencies involved with turtle and dugong conservation (Perikanan Sabah, Jabatan Hidupan Liar Sabah, Jabatan Perlindungan Hidupan Liar Dan Taman Negara - PERHILITAN, Jabatan Taman Laut Malaysia), upon which strategies for monitoring and protection can be designed.

All (100%) of the 30 fishers interviewed from Kg. Bebuloh had seen at least one turtle in their local fishing area. Two species were identified: Chelonia mydas (Green Turtle) and Eretmochelys imbricata (Hawksbill Turtle). Approximately 40% of sightings were reported to be Chelonia mydas and 52% Eretmochelys imbricata. In 9% of instances fishers were unsure as to which species they had seen. On 36% of occasions fishers were in transit to their fishing site, while 32% were at their chosen fishing site. In 15% of instances fishers had observed turtles laying eggs. The proportion of turtles caught in nets as bycatch was 15%.

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With regard to frequency, 67% of fishers stated that seeing turtles was a frequent event, one third of which saw turtles weekly and almost one quarter seeing them daily ( Figure 3.3.17 ). All fishers interviewed had seen a turtle in the past year (2012-2013), 78% of which were in the past three (3) months (2013).

Figure 3.3.17: Frequency of turtle sighting during 2012-2013.

When asked regarding the perceived abundance of turtles living in the local area, 43% fishers believed there to be less than 10 individuals with 48% believing there to be between 10 and 100 individuals. Fishers who were most confident in their answers were asked to answer some further questions in order to create a sightings record database (Table 3.3.6). Table 3.3.6: Turtle sighting records Sighting # Dead / Habitat Size Day / Night Year Month Condition Record Seen Alive T1 1 S Day 2012 Dead T2 1 Coral S Night 2013 3 Alive T3 3 Coral S Day 2013 3 Alive Swimming T4 5 Sea grass S Day & Night 2013 3 Alive Swimming T5 1 Bay S,L Day 2013 3 Alive Sick T6 1 S Day 2013 3 Alive Healthy T7 1 Sea grass S Day 2012 Alive T8 1 S Day 2013 1 Alive Healthy T9 1 S Day 2013 3 Alive Healthy T10 1 Island S Day 2013 2 Alive Healthy T11 1 Island S Night 2013 2 Alive Healthy T12 1 Island S Day 2013 3 Alive Healthy T13 1 Island S Day 2013 3 Alive Healthy

The data suggests that Labuan and its surrounding islands is an area able to adequately support a resident turtle population. Sightings were regular, in predictable locations, and usually in good health. Sightings were usually of small individuals, implying that they may be juveniles or sub-adults not yet sexually mature. The fact that turtles have been seen laying eggs infers that Labuan boasts turtle breeding grounds and is potentially an important area for migratory turtles, which supports key elements in the turtle’s life cycle.

Conversely, only 30% of the 30 fishers claimed to have ever seen a dugong. Some 57% of those who had, had only ever seen one once in their life time. One fisher claimed to have seen one in the past 12 months, three within the last two years, two more than 3 to 10 years in the past, with the balance being a many years ago (one fisher stating the sighting

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was in the 1960’s). Six of the 12 total sightings by the nine fishers were while in transit to fishing areas, and the balance were evenly split between stranded at sea, as bycatch of being seen while fishing. Some 13% of respondents said they knew of locations dugongs could be found. The general belief amongst those who felt able to estimate was that there were fewer than 10 individuals present in the key areas. Fishers were also asked further questions in order to create a sightings record ( Table 3.3.7). Table 3.3.7: Dugong Sighting Records Sighting # Mother - Day / Dead Record Seen Habitat Size Calf Night Year Month / Alive Condition D1 3 Shallow water S Yes Day 2013 3 Alive D2 1 L No Day 2003 Dead Bloated D3 1 Shallow water L No Day 2011 4 Alive Swimming D4 1 Bay S,L Yes Day 2012 4 Alive Active D5 1 Sea grass L No Day 1975 Alive Crying D6 1 Sea grass L No Day 1975 Alive Crying D7 1 L Yes Day 1960 Alive Good

Sightings records were sporadic suggesting that dugong presence was irregular. In the majority of instances the dugongs were sighted alive, sometimes as a Mother and Calf pair, indicating reproductive individuals continue to exist in this population. Two fishers suggested that dugongs could be found nearby at Menumbok, however this was with reference to observing them several decades previously.

Although fishers who had seen a dugong were a minority, some of the others had heard stories from people who had seen one. Often the name Duyong was used instead, which is understood to mean Mermaid. Fishers also conveyed their lack of knowledge of locations around Labuan in which sea grass can be found, the dietary staple for dugongs and green turtles. This, combined with the above data obtained from Kg. Bebuloh, suggests that dugongs are only transients in waters around Labuan, preferring seagrass habitats elsewhere.

3.3.1.7 Summary of Marine Ecology Survey

The surveys undertaken have provided a baseline assessment of the benthic composition and condition around the key borrow and proposed reclamation sites, including identifying the location and state of coral reefs, the composition and general health of nearby mangroves, as well as the fishing trends and socio-economics regarding fisheries in the immediate area. Video surveys of benthic faunal assemblages, line intercept transects, and with fisheries socio-economic assessments and first hand mangrove health assessments, are routine within modern academic research and industrial environmental analyses.

The majority of the benthic survey sites demonstrated a monotypic benthos, most commonly consisting of mud or sand. Moderate to high levels of particular matter in suspension were commonplace across most sites due to the local discharge from Sg. Kina Benuwa. Coral distribution was patchy and restricted to shallow water areas that were a proportionate distance from the resulting sedimentation prevalent in the bay. In the patchy areas of living benthic assemblages, the abundance of Acropora sp. was low-to-moderate accounting for an overall average of only 16.9% (range: 1.5% - 40.3%) of the total substrate in the four locations which recorded >0.1% living

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substrate coverage (C1 C2, C3, C6). The genus Acropora together with Montipora accounted for roughly one third of reef building corals. Coverage of other coralline species was low even in the presence of Acropora sp. Reefs were generally of low species diversity considering the waters of Sabah and Brunei are inclusive of some of the most biologically diverse reef areas in the world. Despite this, the reef areas remain key parts of the marine ecosystem. Large expanses of dead coral rubble dominated many sites, possibly due to high levels of coral turnover, community collapse or possibly historical blast fishing. During the time spent at the survey sites, no blast fishing was recorded.

Fish diversity and abundance was considered to be extremely low. Only three main families of fish (Gobiidae, Pomacentridae and Labridae) were present, restricted almost exclusively to the reef sites, with few instances of fish inhabiting areas of non- living substrate. Additionally within the three families there was low diversity of Genera. No commercial species (Groupers, Snappers, Carangids, etc) were recorded on any of the surveys. No large fish were observed, the largest fish being only 5-6cm in length. The absence of large fish is indicative of extensive over-fishing over a long period. Notably, half of the local fishers believed the overall catches have decreased over the past five years, with 93% respondents believing the fish they catch now are smaller.

Interviews with local fishers revealed that the local community rely heavily on the ability to land fish. The scale of each operation was low, involving boats averaging 5m in length with crews of 2-3 people, mainly targeting fish and using simple gear types such as gill nets and hooks and lines, as opposed to trawling. Some 90% of respondents claimed fishing was their only source of income, with 82% of the total catches (range: 5Kg – 100Kg per day) being outsourced to people or places of commerce. It is clear that fishing plays a significant role in the lives of local communities.

Mangroves act like a sieve, capturing large amounts of sediment from rivers and tides, preventing coastal erosion and absorbing contaminants like trace metals, freeing areas of marine real estate to potentially be colonised and inhabited by marine organisms. The nearby Mangrove forest appears to be generally in good health botanically, demonstrating a degree of resilience in the long term to the imposing anthropogenic developments which surround it. Areas that indicate damage and stress also show signs of recovery, as new saplings take advantage of the new space. Changes in community structure in different areas exemplify a number of mangrove species that are able to occupy differing niches based on natural variance. Few bird species were observed during surveys, whereby mangroves commonly provide a habitat for a wide array of native and migratory bird species. The lack of avian fauna in this instance may be an indication of increased disturbance from nearby industrial processes and the encroachment of manmade developments. There was a similar lack of biological diversity at the mudflats which would usually comprise fiddler crabs, mud crabs, mudskippers and various gastropod species. With the exception of mudskippers, the balances were almost completely absent.

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3.4 Existing Land Use

3.4.1 Regional Profile

Labuan or Labuan Island, is located off the northwest coast of Borneo, north of Brunei Bay, facing the South China Sea, roughly equidistant from Bangkok, Jakarta, Kuala Lumpur, Hong Kong, Manila and Singapore. It is a picturesque island endowed with natural splendors and resources (i.e. large and plentiful offshore Oil and Gas fields in Brunei Bay and surrounding areas) and is an offshore financial centre with the Financial Park Complex as its base. The Park offers a wide range of offshore financial products and services.

3.4.1.1 Administrative Profile

The Federal Territory of Labuan comprises Labuan Island (75 km 2) and six other smaller islands, i.e. Pulau Burung, Pulau Daat, Pulau Kuraman, Pulau Papan, Pulau Rusukan Kecil and Pulau Rusukan Besar, which have a combined total area of 92 km 2. Labuan is one of the three Federal Territories of Malaysia, which also include Kuala Lumpur and Putrajaya.

The territory of Labuan is subdivided into sixteen (16) administrative districts namely: 1. Kg. Tanjung Aru 9. Kg. Bukit Kalam 2. Batu Arang 10. Kg. Patau-Patau I & II 3. 11. Kg. Pohon Batu 4. Bandar Labuan 12. 5. Layang-Layangan 13. Kg. Sg. Bedaun 6. Lubok Temiang 14. Kg. Sg. Pagar 7. Rancha-Rancha 15. Kg. Sg. Labu 8. Kg. Tanjong Kubong 16. Kg. Durian Tunjung

3.4.2 Reclamation Site Profile

General

The reclamation site is located within an industrial zone. In Labuan F.T., due to the small land area, the industrial zone, residential area and commercial area are often not far part. The immediate present setting of the reclamation site is an industrial area, following by residential further north and east. The industrial zone extends to the south eastern part of the reclamation site.

Within the ReclamationSite

There is no significance usage of land within the reclamation site as the site is still a coastal area at the moment.

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3.4.2.1 Existing Land Use within 5km of the Reclamation Site

A site survey to record the existing land uses within the surrounding areas up to 5km radius, was carried out over the month of February 2013. Desktop research, interviews with local agencies, authorities as well as the local residents were among the additional efforts to verify the existing land uses.

From information gathered, the existing land uses within 5 km of the reclamation boundary comprises mainly industrial area, residential area and commercial area. The prominent land uses noted during the site surveys are described in the following and indicated on a land use map Figure 3.4.1 and in Table 3.4.1

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Table 3.2.7: Baseline Water Quality Results at Vicinity of the Reclamation Area Class 3 of Class E of Parameter (s) P1 P2 P3 P4 P5 P6 P7 P8 MMWQCS MMWQCS Temperature, oC (in-situ) 31.3 31.1 30.3 31.7 31.5 30.1 30.1 30.4 - - Dissolved Oxygen, mg/l 6.45 6.15 6.15 6.55 6.05 6.25 6.25 6.60 3 4 Total Suspended Solids, 10.0 21.0 8.50 17.5 16.0 12.5 81.0 86.0 100 100 mg/l Cadmium (as Cd), mg/l <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 <0.002 0.01 0.002 Chromium (as Cr), mg/l <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 0.048 0.01 Copper (as Cu), mg/l <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 0.01 0.0029 Lead (as Pb), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 0.06 0.04 0.05 0.0085 Zinc (as Zn), mg./l <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 0.1 0.05 Ammoniacal-Nitrogen 0.61 0.61 0.61 0.61 0.61 0.61 <0.2 <0.20 - - (as N), mg/l Oil & Grease, mg/l <1.50 <1.50 <1.50 <1.50 <1.50 <1.50 <1.50 <1.50 5 0.14 Nitrite Nitrogen (as N), <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 1 0.055 mg/l Nitrate Nitrogen (as N), <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.2 <0.2 1 0.06 mg/l Phosphate (as PO ), 4 <0.06 0.26 0.48 0.08 0.07 0.12 <0.06 <0.06 0.67 0.075 mg/l Mercury (as Hg), mg/l <0.001 <0.001 <0.001 <0.001 <0.001 <0.001 0.002 0.001 0.5 0.0005 Arsenic (as As), mg/l <0.006 <0.006 <0.006 <0.006 <0.006 <0.006 <0.006 <0.006 0.05 0.06 Cyanide (as CN), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 0.02 0.007 Faecal Coliform Count, >16000 <1.1 <1.1 <1.1 <1.1 <1.1 <.1.1 110 200 100 MPN/100mL • Note: Shaded grey box denotes parameter exceeding the limits of the Class 3 of MMWQCS • Bolded font box denotes parameter exceeding the limits of the Class E of MMWQCS

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Table 3.2.8: Baseline Water Quality Results at Vicinity of the Sand Borrow Site Class 3 of Parameter (s) A1 A2 A3 A4 A5 MMWQCS Temperature, oC (in-situ) 29.3 29.2 28.6 29.5 29.3 - Dissolved Oxygen, mg/l 6.05 5.95 6.25 6.30 6.35 3 Total Suspended Solids, mg/l 13.5 7.50 10.5 15.5 14.5 100 Cadmium (as Cd), mg/l <0.002 <0.002 <0.002 <0.002 <0.002 0.01 Chromium (as Cr), mg/l <0.02 <0.02 <0.02 <0.02 <0.02 0.048 Copper (as Cu), mg/l <0.02 <0.02 <0.02 <0.02 <0.02 0.01 Lead (as Pb), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 0.05 Zinc (as Zn), mg./l <0.02 <0.02 <0.02 <0.02 <0.02 0.1 Ammoniacal-Nitrogen (as N), mg/l 0.61 0.61 0.61 0.61 1.22 - Oil & Grease, mg/l <1.50 <1.50 <1.50 <1.50 <1.50 5 Nitrate Nitrogen (as N), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 1 Nitrate Nitrogen (as N), mg/l 0.14 <0.02 <0.02 <0.02 <0.02 1

Phosphate (as PO 4), mg/l <0.06 0.23 0.07 <0.06 <0.06 0.67 Mercury (as Hg), mg/l <0.001 <0.001 <0.001 <0.001 <0.001 0.5 Arsenic (as As), mg/l <0.006 <0.006 <0.006 <0.006 <0.006 0.05 Cyanide (as CN), mg/l <0.01 <0.01 <0.01 <0.01 <0.01 0.02 Faecal Coliform Count, MPN/100mL <1.1 <1.1 <1.1 <1.1 <1.1 200 Note: Shaded grey box denotes parameter exceeding the limits of the Class 3 of MMWQCS

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From the results obtained, two (2) parameters have exceeded the stipulated limit of Class 3 namely dissolved oxygen (DO) and faecal coliform count at the reclamation site and DO at the sand borrow site. Further descriptions of the parameters of interest are provided below:

• Dissolved Oxygen

Dissolved oxygen (DO) is a measure of the amount of oxygen dissolved in a given volume of water at a certain temperature and atmospheric pressure. Dissolved oxygen value of more than 5 mg/L is considered as healthy 1 for aquatic organisms as it is required by aquatic organisms for aerobic respiration whereby oxygen is added to the water by photosynthetic activity of plant and re-aeration from the atmosphere. Dissolved oxygen level in water below 5 mg/L actually can put aquatic life under great stress. Since the results obtained for all samples at both the reclamation and sand borrow sites showed relatively high levels of DO, the present water quality seems to suggest a generally healthy environment for marine lives.

• Microbiological Content

Faecal coliform bacteria are typically used as an indicator of disease carrying pathogens in the aquatic environment although it normally does not cause disease. Typical sources of bacteria are from sewage, stormwater overflows, poor pasture management and animal-keeping practice, urban runoff, etc. The presence of excessive bacteria may also indicate other potential problems such as low dissolved oxygen in the surface water. From the water sampling conducted, the levels of coliform bacteria at P1 are considerably high. This location is near to Kg Bebuloh settlements, which are sited about 600m west of the sampling location. There are open discharged toilets observed in this settlement, hence the elevated level of coliform may be contributed by the direct discharge of wastewater to the open sea.

In addition, for P7 results parameters such as lead and mercury exceed the limit of Class E: Both heavy metals exceed the stipulated limit due to housing development noted upstream from the river mouth of Sg Kina Benuwa.

3.2.7 Seabed Sediment

3.2.7.1 Seabed Sediment Sampling

The assessment of sediment quality and its chemical composition is necessary in order to study the impacts of the proposed project’s activities to the marine ecology environment, which are generally related to the potential leaching of hydrocarbon, upwelling of settled compounds and transportation of contaminants from water column to the benthos. This sediment physicochemical characteristic study will be used to ascertain whether there is significant amount of contaminants generated from the proposed development activities being deposited in the sediment, which then may be transferred and accumulated to the benthic fauna food chain.

1Reference: http://www.soil.ncsu.edu/publications/BMPs/glossary.html & http://www.state.ky.us/nrepc/water/wcpdo.htm.

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Eleven (11) seabed sediment grab samples were collected in April 2013 near the vicinity of the reclamation site while eight (8) seabed sediment grab samples were collected at the sand borrow site. Refer to the sampling details in Table 3.2.9 and Table 3.2.10 . Table 3.2.9: Sediment Sampling Location at the Reclamation Site Sampling Point Longitude Latitude R1 E 115° 12' 36.37" N 5° 16' 26.64" R2 E 115° 12' 30.97" N 5° 16' 9.94" R3 E 115° 13' 17.49" N 5° 16' 3.51" R4 E 115° 13' 3.44" N 5° 15' 58.63"

R5 E 115° 12' 35.34" N 5° 15' 48.87" R6 E 115° 12' 44.59" N 5° 15' 28.01" R7 E 115° 12' 56.41" N 5° 15' 7.45" R8 E 115° 13' 8.49" N 5° 14' 50.23" R9 E 115° 13' 14.77" N 5° 15' 16.64" R10 E 115° 13' 14.76" N 5° 15' 3.57" R11 E 115° 13' 30.00" N 5° 14' 47.14"

Table 3.2.10: Sediment Sampling Location at the Sand Borrow Site Sampling Point Longitude Latitude B1 E 115° 18' 33.10" N 5° 14' 59.17" B2 E 115° 18' 52.75 N 5° 14' 59.17" B3 E 115° 19' 12.40" N 5° 14' 59.17" B4 E 115° 18' 45.02" N 5° 14' 42.11

B5 E 115° 19' 2.58" N 5° 14' 37.50" B6 E 115° 19' 12.40" N 5° 14' 37.50" B7 E 115° 18' 33.10 N 5° 14' 15.83" B8 E 115° 19' 12.40" N 5° 14' 15.83"

The seabed sediment samples were analysed for particle size distribution (using sieve and hydrometer analysis) and also heavy metals parameters which include lead, copper, zinc, cadmium, chromium, mercury and arsenic. The sampling results are further elaborated in the following sub-sections.

3.2.7.2 Heavy Metals Concentration

The laboratory analysis results for the seabed sediments’ chemical composition are as shown in Table 3.2.11 for the reclamation site and Table 3.2.12 for the sand borrow site. To ascertain the sediment quality, the concentrations of heavy metal results were compared to the National Oceanic and Atmospheric Administration (NOAA). The lower 10 percentile data were identified as Effects Range-Low (ERL), and the median as Effects Range-Median (ERM). The laboratory analysis results for the seabed sediments are appended in Appendix 3.2.7.

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Table 3.2.11: Sediment Analysis at the Reclamation Site NOAA 2 Parameter (s) R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 ERL ERM

Lead (as Pb), 16.1 29.8 16.8 15.1 6.7 <1.5 18.1 16.2 21.5 14.0 13.8 46.7 218 mg/kg

Copper (as Cu), 13.2 5.6 4.4 5.3 6.2 <1.5 10.4 9.7 41.8 9.4 8.5 34 270 mg/kg

Zinc (as Zn), 76.9 36.0 29.7 34.7 49.9 6.4 60.5 57.6 43.3 47.8 49.4 150 410 mg/kg

Cadmium (as <1.5 3.2 1.8 2.2 <1.5 <1.5 <1.5 <1.5 2.2 <1.5 <1.5 1.2 9.6 Cd), mg/kg

Chromium (as 12.4 10.7 5.1 8.1 5.5 2.2 10.1 8.4 7.7 8.1 7.9 81 370 Cr), mg/kg

Mercury (as Hg), <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 0.15 0.71 mg/kg

Arsenic (as As), <1.5 5.0 <1.5 2.5 <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 8.2 70 mg/kg

2 The National Oceanic and Atmospheric Administration (NOAA) is a federal agency focused on the condition of the oceans and the atmosphere.

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Table 3.2.12: Sediment Analysis at the Sand Borrow Site NOAA Parameter (s) B1 B2 B3 B4 B5 B6 B7 B8 ERL ERM Lead (as Pb), mg/kg <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 19.3 1.9 46.7 218 Copper (as Cu), mg/kg 1.9 <1.5 <1.5 43.0 <1.5 <1.5 10.6 3.2 34 270 Zinc (as Zn), mg/kg 5.9 5.3 5.4 8.9 7.0 8.8 62.2 20.4 150 410 Cadmium (as Cd), mg/kg <1.5 <1.5 <1.5 <1.5 1.5 <1.5 <1.5 <1.5 1.2 9.6 Chromium (as Cr), mg/kg 1.8 2.7 1.8 3.0 3.8 2.4 10.8 4.8 81 370 Mercury (as Hg), mg/kg <0.1 <0.1 0.3 <0.1 <0.1 <0.1 <0.1 <0.1 0.15 0.71 Arsenic (as As), mg/kg <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 <1.5 8.2 70

Results

Based on the laboratory analysis results shown in Table 3.2.11 and Table 3.2.12 , all parameter are within the limit of NOAA sediment quality of Effects Range-Low (ERL) and Effect Range-Median (ERM) limit. The ERL and ERM are not threshold values to determine whether toxicity will occur - they are relationships between bulk chemical concentrations and toxicity effects that are expressed along a continuum. There is no concentration above which toxicity will occur and below which toxicity will not occur.

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3.2.7.3 Particle Size Distribution

The same samples for seabed sediments obtained using a grab sampler was also analysed to determine the percentage of various particle sizes at the proposed reclamation and sand borrow sites. Laboratory analyses were carried out using dry sieving methods (sieve analysis 3) for the identification of Particle Size Distribution. In overall, the results showed that the sediment sizes are generally divided into four (4) categories: Table 3.2.13: Various Sediment Type and Size Sediment Type Particle Size

Clay < 0.02 Silt 0.02 – 0.075 Sand 0.075 – 2.00 Gravel (Coarse Sand) > 2.00

The particle size distribution (PSD) results are summarised in Table 3.2.14 and Table 3.2.15 . The PSD compositions are also illustrated in Figure 3.2.6, and Figure 3.2.7 for both the reclamation site and sand borrow site, respectively. From Figure 3.2.6, it can be seen that the main compositions of sediments at the vicinity of the reclamation site are silt (62%) followed by clay (22%) and fine sand (63%).

0% 16% 22%

Gravel, Coarse Sand Fine Sand, Silt Clay

62%

Figure 3.2.6: Summary of Particle Size Distribution (PSD) Composition, Reclamation Site.

3 Sieve Analysis is a simple method of shaking the sample in sieves until the amount retained becomes more or less constant. Alternatively, the sample may be washed through with a non-reacting liquid such as water or blown through with air current.

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As for the sand borrow site (see Figure 3.2.7), the main PSD compositions are fine sand (78%), followed by silt (16%), clay (3%) and coarse sand (3%).

3% 3%

16%

Gravel, Coarse Sand Fine Sand, Silt Clay

78%

Figure 3.2.7: Summary of Particle Size Distribution (PSD) Composition, Sand Borrow Site. Table 3.2.14: Percentage of Particle Size Distribution (PSD) Composition – Reclamation Site

Parameter (s) R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11

Particle Size Distribution Gravel, Coarse 0 3.2 0.4 0 0 0 0 0 0 0 0 Sand, % Fine Sand, % 0.8 61.2 12.1 40 2.2 66 0.9 0.4 13.2 0.2 0.8 Silt, % 99.2 35.6 87.5 60 97.8 34 60.7 70.3 78.8 65 60.9 Clay, % 0 0 0 0 0 0 38.4 29.3 8 34.8 38.3

Table 3.2.15: Percentage of Particle Size Distribution (PSD) Composition –Sand Borrow Site

Parameter (s) B1 B2 B3 B4 B5 B6 B7 B8

Particle Size Distribution Gravel, Coarse Sand, % 14.5 2.9 0.9 0 1 1.3 0 0 Fine Sand, % 82.6 97.1 98.9 99.4 98.3 92 5.4 57.7 Silt, % 2.9 0 0.2 0.6 0.7 6.7 74.6 42.3 Clay, % 0 0 0 0 0 20 0

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3.2.8 Baseline Air Quality

Baseline air quality sampling is established at two (2) locations, i.e. project boundary and nearest receptor of the reclamation site (i.e. Kg Rancha-Rancha Laut). No sampling is deemed necessary at the sand borrow site since it is entirely surrounded by sea and the nearest receptor is 2 km away. See Figure 3.2.5 for the baseline sampling points.

Plate 3.1: Ambient air quality and noise Plate 3.2: Ambient air quality and noise level sampling at N1. level sampling at N2.

The weather condition on the day of sampling in March 2013 was generally fine and sunny. Details on the air quality sampling locations are presented in Table 3.2.16 . Table 3.2.16: Baseline Air Quality Monitoring Location Sample ID GPS Coordinates Description N 05° 15’ 32.41” Kg Rancha-Rancha Laut, N1 E 115° 13’ 33.00” north east of reclamation site N 05° 15’.33.34” On the immediate east of the N2 E 115° 14’ 5.74” reclamation site boundary

The parameter tested for air quality analysis was Total Suspended Particulates (TSP). The air quality result from the baseline air sampling is compared to the Malaysian Ambient Air Quality Guidelines (MAAQG). Refer to Appendix 3.2.8 . The result of the ambient air sampling is summarized in Table 3.2.17 and full laboratory result are appended in Appendix 3.2.8 . Table 3.2.17: Baseline Air Quality Result Results MAAQG Parameter N1 N2 Total Suspended Particulates (TSP) 19.0 37.8 260 µg/m 3

From the result shown in Table 3.2.17 , the baseline air quality recorded is well below the 260 µg/m 3 level stipulated under the Malaysian Ambient Air Quality Guidelines.

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3.2.9 Baseline Noise Levels

The intensity of noise generated can have a direct impact on human. The acceptability of a new noise source is much dependent on the existing noise level and this will determine the impact during the development stages of the Project.

Baseline noise monitoring for day time and night time was carried out to establish the existing background noise levels at the project site and its surrounding areas. The noise monitoring station established in March 2013 is as tabulated in Table 3.2.16 and illustrated in Figure 3.2.5. Noise sampling is not deemed necessary at the sand borrow site since it is surrounded by sea and the nearest receptor is 2 km away.

The measuring period for both day and night time is one hour per reading. The instrument used to monitor the noise level is a sound level meter 4. Main parameters 5 6 7 8 9 obtained were the L eq , L 10 , L90 , L min and L max percentile (statistical) levels. Results and observations on site with regards to the noise sources are as summarised in Table 3.2.18 and appended in Appendix 3.2.9 . Table 3.2.18: Baseline Noise Level Results Noise Parameter, dB(A) Date Time Leq Lmin Lmax L10 L90 N1 – At Kg Rancha-Rancha Laut Night Time 10.00 PM – 7 AM 52.9 33.0 80.7 53.6 46.7 (5 th March 2013) Day Time 7 AM – 10.00 PM 54.3 39.7 85.3 54.6 51.5 (6 th March 2013) N2 – On the Immediate east of the Reclamation Site Boundary Night Time 10.00 PM – 7 AM 49.7 47.2 69.5 47.3 47.3 (9 th March 2013) Day time 7.00 AM – 10.00 PM 51.1 24.2 85.5 43.1 26.6 (10 th March 2013) 70 Day Time Schedule 1 (Designated Industrial Zones) 60 Night Time

The noise level results indicate considerably acceptable noise levels of L eq for both N1 and N2. Based on the Department of Environment (DOE) guidelines – “The Planning Guidelines for Environmental Noise Limits and Control” under Schedule 1: Designated Industrial Zones (see Appendix 3.2.9 ), the recommended maximum permissible

4 The sound level meter will be set to measure instantaneous sound pressure level continuously for the entire period of day (about 7.00 A.M. to 10.00 P.M.) and night (about 10.00 P.M. to 7.00 A.M.). Results obtained directly from the meter’s computation are L eq day, (hourly basis for 15 hrs and L eq night, 9 hrs and the respective L max , Lmin , L10 and L 90 in dB(A). 5 Leq is the constant sound level that, in a given situation and time period, conveys the same sound energy as the actual time-varying A-weighted sound. 6 L10 is the measured tenth percentile sound level for the respective time period of the existing areas of interest in the absence of the proposed new development. 7 L90 is the measured ninety percentile sound level for the respective time period of the existing areas of interest in the absence of the proposed new development. 8 L min is the lowest noise level measured during the measurement time. 9 L max is the highest noise level measured during the measurement time.

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sound level by receiving land use for industrial areas are 70 dB(A) for day time and 60 dB(A) for night time, respectively.

From site assessment, the main noise sources during day time and night time were recorded to be mainly from vehicular movements around the industrial area. 3.3 Marine Ecology

The marine ecological and fishery surveys were conducted between the 8th and 16th of March, 2013. The detailed survey work included a total of eighteen (18) underwater survey sites, fourteen mangrove survey sites and thirty fishery questionnaires.

In order to obtain a graphic depiction of the proposed reclamation site, borrow site and potential nearby areas that could be impacted, underwater video surveys were conducted to provide a qualitative description of the survey zone with regard to substrate condition and macrobenthos type. Benthic transects were also undertaken where appropriate to provide quantitative data about the macrobenthic composition. Additionally nearby mangroves were surveyed regarding their health and composition, and finally local fishermen were interviewed about their fishing practices and sightings of protected species such as dugongs and turtles.

Video transects were recorded using HD underwater cameras and uploaded in an uncompressed format, following which video overlays were added to identify sites, dates and depths using post production processes. These were then compiled in a menu-selective interactive DVD. Digital media was uploaded to DVD for submission to the client. Identification of major benthic fauna was made by reference to the peer- reviewed publications.

3.3.1 Methodology

3.3.1.1 Survey Locations

As the standard for all geographic coordinates for this survey the World Geodetic System (WGS) 1984 chart datum was used to plot the locations of the survey sites.

Video and benthic transect site codes and depths are listed in Table 3.3.1. Refer to the survey locations in Figure 3.3.1, Figure 3.3.2 and Figure 3.3.3. Table 3.3.1: Benthic Transect Locations Site Depth (m) Lat Long A1 11.7 05°13.735 115°19.520 A2 12.9 05°13.620 115°18.384 A3 4.4 05°14.768 115°19.409 A4 4.1 05°14.806 115°18.410 A5 3.4 05°15.510 115°18.803 A6 7.4 05°14.293 115°18.973 C1 6.3 05°14.933 115°12.892 C2 6.5 05°14.018 115°13.974 C3 5.0 05°14.309 115°11.379

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Site Depth (m) Lat Long C4 3.6 05°15.335 115°13.342 C5 7.8 05°14.788 115°12.441 C6 4.7 05°14.828 115°12.137 V1 12.5 05°14.039 115°13.527 V2 12.1 05°14.399 115°12.779 V3 11.9 05°14.607 115°12.957 V4 8.0 05°14.633 115°13.507 V5 6.3 05°15.032 115°13.525 V6 4.3 05°15.265 115°13.050

3.3.1.2 Macrobenthos Surveys

3.3.1.2.1 Methodology

Macrobenthos (large, sessile marine organisms such as sea pens, soft corals and echinoderms) diversity and presence/absence were assessed by conducting short investigational dives. Using a small robust high-definition (1080p, 60fps) hand held video camera system; divers descended at six (6) pre-selected positions at the proposed reclamation site, and an additional six (6) positions surrounding the proposed sand borrow site ( Figure 3.3.1 and Figure 3.3.2). Straight line transects were conducted with videos typically lasting 1-2 minutes in duration. Each video transect was numbered and recorded in electronic format for subsequent analysis, and the position and depth of each recording was logged. The positions were recorded using a Garmin GPS60 (± 5m). Initial video was reviewed to check that the footage already obtained was suitable for analysis. In cases where this was found unacceptable, transects were repeated. Video clips were examined to get an overview of the sample site, and to obtain substrate and species data.

Figure 3.3.1: Macrobenthos survey sites at the Reclamation Site.

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Figure 3.3.2: Macrobenthos survey sites at the Sand Borrow Site.

3.3.1.2.2 Results

Reclamation Site

The survey sites were located within a 5 km radius of the reclamation site. There is a substantial discharge from Sg. Kina Benuwa which traverses the survey sites, which results in increased levels of fine particulate matter (increased suspended sediment). These conditions limit the wide distribution of sessile organisms, such as corals, that rely on photosynthesis to feed, and result in soft fine sediment substrates which do not promote a large diversity of flora and fauna. Table 3.3.2: Results of Marchobenthos Surveys at the Reclamation Site Site Visibility Substrate Description A muddy substrate with fine sedimentation characterised the benthos at this site. Particulate matter was easily disturbed resulting in increased Mud / Fine V1 Poor particle suspension hence the poor visibility. Sediment Annelid worm burrows were in low numbers. High levels of sediment inhibit light penetration and no corals were recorded. A thick layer of mud with fine sedimentation resting atop the benthos. As mentioned in V1 this was easily disturbed. Annelid worm burrows were present as with other muddy sites. A second species of Annelid Extremely worm was indirectly recorded at this site through a V2 Mud Poor differing feeding strategy, evident by star-shaped feed channels in the sediment, as opposed to the usual conical-mound burrowing Annelids commonly found in these habitats. Neither living nor dead corals were recorded. A dense, fine muddy substrate with fine, easily V3 Very Poor Mud resuspended particulate matter on top. Only Annelid worms appear to be present epibenthically in substantial numbers, with neither living nor dead

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Site Visibility Substrate Description corals recorded A dense, fine muddy substrate with fine particulate matter resting on top, easily resuspended. High levels of particles in suspension, resulting in extremely low Extremely visibility. Indications of shell litter suggest an V4 Mud Poor endobenthic bivalve community, however high sedimentation buries and prevents exposure of living specimens. The potential for living substrate to survive here was considered marginal. A dense, fine muddy substrate, with easily disturbed sediment on top. Annelid worms were the most prevalent organism, with small Gastropod snails recorded on top of the sediment in low abundance. In V5 Very Poor Mud rare occurrences single fronds of algal assemblages protruding from the sediment were recorded. This could be an indicator that sedimentation is not a rapid as in other sites visited previously. Again there was a lack of living or dead corals. A dense, fine muddy substrate, with easily-disturbed sediment on top. Greater levels of particulate suspension occurred here, as at site V4. Annelid Extremely V6 Mud worms were the most prevalent organism, with low Poor numbers of small Gastropods on top of the sediment covered in freshly settled particulate matter, inferring a high rate of sedimentation. No living or dead corals.

Sand Borrow Site

The sand borrow site was typified by a mixture of muddy and sandy bottoms, inhabited mainly by Annelid worms and small gastropods. The visible epibenthic (living on the surface) community was low in diversity and coverage. Visual clues provided by the topography and shell litter on the surface sediment indicated the prevalence of endobenthic organisms, notably annelid worm and bivalve molluscs. There were no significant aggregations of corals with the exception of the Heterocyathus sp. specimens found scattered at two (2) locations. Dead corals were also lacking, due to the unavailability of hard substrate for corals to colonise and low levels of light penetration. Table 3.3.3: Results of Marchobenthos Surveys at the Sand Borrow Site Site Visibility Substrate Description A thick, mostly flat, muddy substrate with an extremely low level of fauna. Various Gastropods were recorded in extremely sparse aggregations. A regular occurrence of burrows suggests an abundance of A1 Moderate Mud Annelid worms (Annelida) living within the benthos (endobenthic). There were no corals present nor any dead corals, indicating an inability for coralline settling, nor the ability for this site to support the biological needs of such organisms. A thick, mostly flat, muddy substrate with a low level of faunal coverage. The occurrence of sand mounds created by Annelida (Class Polychaeta), suggests a sandy bottom is present beneath the surface layer of A2 Moderate Mud /Silt mud. An abundance of mud burrows further suggests the common presence of Annelida. There were occasional records of sea pens (Pennatulacea), and an abundance of dead branching algae. Solitary, free-living corals (Heterocyathus sp.) occurred frequently. A soft coral

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Site Visibility Substrate Description species ( Sinularia sp.), was also present though in very low density. A thick, uneven, muddy substrate. Annelid worms were present in large numbers, evident by the amount of burrows and mounds. Heterocyathus sp. was common, A3 Moderate Mud along with sea pens (Pennatulacea). Singular assemblages of branching algae were frequently recorded An uneven sandy bottom with a thin layer of mud coverage. Annelid mounds were fairly common. There was an abundance of unoccupied bivalve mollusc shells Moderate/ found gathered in patches, suggesting the presence of a A4 Sand/Mud predatory organism actively removing them from the Good benthos. Gastropods (Cerithiodea) were also common. Fish were present at this site. Small fish (Gobiidae) were recorded occupying a sand burrow. Large motile urchins were also present, although in low numbers. A smooth sandy bottom littered with gastropods and the occasional bivalve shell. The presence of egg clusters Moderate/ suggests this to be a laying site for a species of fish. A5 Sand Good Closer inspection revealed well developed juveniles encased within each egg. Annelid worms and sea pens (Pennatulacea) were abundant. No corals were recorded A craterous muddy bottom with regular occurrences of sand mounds, both topographic features are formed by various annelid worms. Gastropods littered the surface of the benthos, accompanied by small localised patches of A6 Moderate Mud red algae, suggesting a lack of rapid sedimentation or sediment disturbance. Small clusters of sponges were found here aggregated in sparse distributions. Calciferous urchin skeletons were noted, indicating an urchin population, although relatively sparse

3.3.1.3 Coral Cover Surveys

3.3.1.3.1 Methodology

Coral reef habitats were assessed using protocols developed as part of the ASEAN- AIMS marine sampling strategy (English et al. 1997). The coral cover and percentage live cover were assessed by growth form category by conducting replicate 30m line transects at the primary reef depth at a six key coral reef sites within 5 km of the reclamation site (indicated as CR1 – CR6 in Figure 3.3.3). Three replicates of 30m long surveys were conducted, separated by at least 5m. Replicate transects were in locations that exhibited anything other than a singular bottom type, as opposed to only in the best or worst areas. Data was recorded on waterproof data sheets and subsequently transcribed to electronic format.

Video and photographic surveys were conducted using SCUBA equipment and in adherence to the Scientific and Archaeological Diving Practices (SI 1997 2776) under the Approved Code of Practice (ACOP) of the UK Health and Safety at Work Act (1974). All diving was monitored by a diving officer and detailed records of the diving practices were maintained in a diving log. Nitrogen build-up was monitored using a Suunto Viper dive computer and kept within US Navy dive table limits. Video was recorded using a HD digital (1800fps) camera in an underwater housing using natural

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light and auto white-balance. Digital still photographs will be taken with a Nikon D700 in a Nexus Housing with twin Inon strobes, providing 16MB resolution per frame.

Figure 3.3.3: Coral Reef Survey Sites.

3.3.1.3.2 Results

Within these sites there are two clearly divisible substrate types. One being that of a muddy bottom lacking significant diversity, as was typified by the sand borrow site, the other being of a relatively diverse community of living corals. Sites such as C2 and C3 demonstrate the greatest diversity and abundance of corals, possibly due to their location at the fringe of the bay. Here they are furthest away from the freshwater discharges. Sites such as C1, C4 and C5 are deeper and closer to the sources of sedimentation and are in locations where water movement to remove such sediment is limited. An exception is C6, which exhibits living substrate cover, but it is dominated by algae as opposed to coralline assemblages. It is located in the middle of the bay in clearer waters. At the more diverse sites (C2, C3, C6) there was a clear abundance of dead corals and sand. Many of the diverse sites demonstrated patchiness in their assemblages of coral. Large expanses of dead coral were interrupted by successful communities. Table 3.3.4: Results of Coral Survey Site Visibility Bottom Type Description A hard substrate bottom, typically consisting of rocks and dead coral divided by patches small of sand. Algal assemblages were common and moderately sized, individual C1 Good Rock/Sand/Dead Coral barrel sponges were patchily distributed. A small number fish belonging to the families Labridae (wrasse) and Pomacentridae (damsel fish) were present. Coral coverage was less than 5% approximately, the majority

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Site Visibility Bottom Type Description being small rounded coral colonies. A mixture of hard substrate consisting of mainly dead corals, separated by expanses of sand. Gorgonian soft corals were abundant, along with C2 Good Dead Coral/Sand low levels of large sponges. Xenia sp. soft corals were present in smaller numbers. Overall coverage was approximately 15% of sparsely populated massive and submassive corals. A hard substrate consisting of dead coral covered with red/brown algae. Two distinctly different bottom types: An expansive, relatively low diversity dead coral transitions into a reef crest with localised coral coverage of more than Dead Coral, Sand, 60%. Barrel sponges ( Xestospongia sp.), rare C3 Moderate Reef Crest occurrences of sea pens (Pennatulacea) and some soft corals typify the dead coral side of this site. The reef crest however boasts branching Acropora sp., digitate and submasive corals. Larger damsel fish (Pomacentridae) were recorded than at previous sites such as C1 A flat sandy bottom with slight sedimentation on top. Anemones can be found at this site, although not in great numbers. Annelid worms C4 Poor Mud/Sand were evident, along with a small number of Gastropod snails. Medium sized algal assemblages were sparse and patchy. No coral was recorded A thick muddy substrate littered with collections of dead sea pens (Pennatulacea) protruding from the sediment. Living sea pens were recorded, but were sparsely distributed. There C5 Poor Mud was evidence of Annelid worms such as noted at other muddy sites, although burrow numbers suggest these were less abundant at this site. No coral was recorded. A hard substrate consisting of predominantly of dead corals and sand with occasional patches of red/brown algae. The most common living macrobenthos were algal assemblages and Moderate/ foliose corals. Some soft corals were noted in a C6 Dead Coral/Sand few instances with occasional occurrences of Good massive and submassive corals, and barrel sponges (Xestospongia sp.). The site had roughly a 30% of living macrobenthos, of which roughly 7% constituted corals, the balance being predominantly algae.

Of the six preselected sites where a diverse benthos type was expected, four warranted conducting line intercept surveys and invertebrate counts. These were sites C1, C2, C3 and C6. Sites C4 and C5 were deemed to not have enough diversity to be able to obtain sufficient data in order to provide quantitative analysis, therefore it was judged that the visual data from the video transects of these sites would be sufficient to provide an accurate qualitative representation these areas.

Figure 3.3.4 depicts the general categorization of the benthic cover findings into three main categories: (i) living coral, (ii) dead coral and other non-living substrate, and (iii) other living invertebrates. The series of graphics presented in Figure 3.3.5 to Figure

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3.3.10 illustrate the results of the line-intercept transects to determine coral and other living invertebrate cover at each site.

Figure 3.3.4: Generalised classification of benthic cover: The oval on the left (green) encompasses all living corals, both Acropora spp. and non-Acropora spp. The middle oval (orange) covers all other living invertebrates such as soft corals, ascidians, sponges and algae. The right oval (red) depicts all non-living substrate including dead coral, rubble, silt and sand. Key: ACB - Acropora spp. Branching; ACD - Acropora spp. Digitate; ACE – Acropora spp. Encrusting; ACS – Acropora spp. Submassive; ACT - Acropora spp. Tabulate; CD - Coral Digitate; CB - Coral Branching; CE - Coral Encrusting; CF - Coral Foliose; CM - Coral Massive; CMR - Mushroom Coral; CS - Coral Submassive; SC - Soft Coral; OT - Other life forms; SP - Sponge; ZO – Zooanthid; AA – Algal Assemblage; DC - Dead Coral; R - Rubble; RCK – Rock; S – Sand.

Site C1 : Site C1 had a significantly higher proportion of inert substrate types such as sand and dead coral, with no living coral types are present in abundances more than 4%, partly due to the sandy substrate which is not an adequate surface for coral colonisation ( Figure 3.3.5). The most successful living organism was algae, known to flourish in areas in which corals struggle and to indirectly increase coral mortality via microbial activity (Smith et al, 2006).

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Figure 3.3.5 : Classification of benthic cover at site C1.

Site C2 : The greatest proportion of the substrate was occupied by dead coral and rubble, however both branching and tabulate Acropora spp. were successful in moderate abundances, as were soft corals ( Figure 3.3.6). These types of coral are fast growing, and typically account for a third of all reef building corals. The combination of these coral types and high levels of dead coral suggest that there is a high turnover of living material triggered by environmental or anthropogenic limiting factors.

Figure 3.3.6: Classification of benthic cover at site C2

Site C3 : Site C3 recorded a majority cover of branching Acropora spp. , followed by a substantive coverage of dead corals. Other living substrate types such as coral foliose, Digitate Acropora sp. and encrusting corals survived in smaller numbers (Figure 3.3.7). As at site C2 the high coverage of branching Acropora spp. and dead coral suggests a high turnover of living material, although perhaps not at the same rate, as the Acropora spp. appear to be more stable with larger colony sizes.

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Figure 3.3.7: Classification of benthic cover at site C3

Site C6 : Site C6 was dominated by non-living substrate types, particularly dead coral which accounted for more than 40% of the total substrate. There was a reasonable level of diversity amongst the living substrate types although none were prevalent ( Figure 3.3.8). Foliose and encrusting coral types were the most abundant with the exception of algal assemblages.

Figure 3.3.8: Classification of benthic cover at site C6.

Overall, when data was combined for all four sites, the dominant substrate types were dead coral, rubble and sand ( Figure 3.3.9). The combined average coverage of non-living substrate types across all sites was 66% ( Figure 3.3.10 ). Trends in living substrate coverage can be indicators of the overall health and diversity of the marine environment from location to location. Figure 3.3.10 compares the combined total coverage of living and non-living substrate types as indicators of the general health of each transect site. Branching Acropora spp. were by far the most successful coral type possibly due to its rapid rate of growth. There was a healthy diversity amongst other differing, living substrate types; however the low abundances are not indicative healthy communities.

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Figure 3.3.9: Classification of substrate coverage across all sites.

The least biologically diverse sites were C6 and C1 with the vast majority of substrate coverage being non-living. These sites are situated at locations within the bay where they are subjected to discharges from the river and effluents from nearby industries. As a result sedimentation is higher and likelihood of corals being able to colonise the substrate and survive is lower. Additionally, organisms which filter feed such as sponges and other soft corals also have a reduced likelihood of survival as fine particulate matter may clog the mechanisms with which they feed. Sites C2 and C3 demonstrated a more balanced coverage of living and non-living substrate types. These areas are located beyond the bay where the flow of cleaner waters is greater, bringing increased nutrients and removing sediment. As a result living substrate types are able to survive and grow, and in the case of C3 be more abundant than the non-living substrate.

Figure 3.3.10: Comparison of living and dead substrate types at each individual site.

3.3.1.4 Invertebrate Surveys

3.3.1.4.1 Methodology

Invertebrate spot counts were conducted in unison with the coral reel line intercept surveys and at the same locations. Three (3) replicates of 50m x 5m bands (250m 2) were conducted at each of the survey sites. Data was recorded on waterproof data sheets and subsequently transcribed to electronic format. These bio-inventories provide a quantitative

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means of assessing biodiversity abundance of macro-invertebrate species and provide an indication of the overall community health at each site.

3.3.1.4.2 Results

Invertebrate counts permit direct and indirect assessments of the health of marine habitats. For example, invertebrates such as sea urchins (Echinoidea) in small abundances are generally a sign of a healthy habitat as they graze algae which compete for space with other living substrate types. However, a large abundance of Echinoidia cause bioerosion and damage corals. This is an example of a direct assessment. As an example of an indirect assessment, the presence of giant clams (Tridacnidae) can indicate a healthy reef environment, as they require clean, unpolluted waters in which to grow and reproduce. Generalised descriptions are provided for each of the four key sites:

Site C1 : A reasonable level of biodiversity was evident at site C1. Shrimps were the most common invertebrate found. At this site they were found to be living symbiotically with gobies (Gobiidae). Nudibranchs and other gastropods which graze algae from the substrate were also present. Feather stars (Crinoids) which filter feed particulate matter in suspension were also found at this site suggesting higher water quality. It should be noted that although there is substantial diversity, numbers of each invertebrate type were fairly low (<14) for the 750m 2 of transect.

Site C2: Crinoids were prevalent here in substantial numbers, indicating greater water quality at this location. The large numbers also suggest that there is sufficient plankton in the water to support a large filter-feeding population.

Site C3: Sea urchins dominated at this site in substantially higher numbers compared to invertebrate abundances at other sites. At this site the urchin population may be detrimental to the reef habitat given the large numbers.

Site C6: C6 showed low numbers of individuals, the most abundant record being three echinoderms.

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Figure 3.3.11: Invertebrate counts across transect sites C1-C6.Key Invertebrate types recorded included sea urchins, sea stars and sea cucumbers (Echinodermata), clams (Tridacnidae), shrimps and crabs (Decapoda), feather stars (Crinoidea), Anemones (Cnidaria), nudibranchs and snails (Gastropoda).

When considering the total number of invertebrates recorded over the four (4) 750m 2 transects two invertebrate types were prevalent: sea urchins and crinoids ( Figure 3.3.12 ). Urchins are artificially dominant across all sites, but they were found inhabiting only one site in excessive numbers. Crinoids were consistently present across all sites. Gastropods were also able to occupy a variety of substrate types explaining their presence at all sites.

Figure 3.3.12: Relative percentage abundance of invertebrates

3.3.1.5 Mangrove Survey

3.3.1.5.1 Methodology

Mangrove ecosystems have important ecological and socioeconomic values to the lives and livelihoods of coastal communities and play vital coastal protection roles. These ecosystems also provide valuable life support services such as the fisheries nursery and habitat, coastal protection, or water quality services yielded.

Mangrove distribution and composition was determined via visual identification and photographic sampling. Sampling was conducted at five main locations and at nine additional locations possessing notable characteristics, spanning approximately four

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km of mangrove habitat between Kg Rancha Rancha and Kg Bebuloh ( Figure 3.3.13 ). Photographic documentation was used to provide descriptions of these ecosystems, as well as first hand visual identification of characteristics and species assemblage.

Figure 3.3.13: Mangrove survey locations.

An overlay of the hydrographic chart No. BA1844 and Google Earth graphics (© MapIt and 2012 DigitalGlobe) provided the baseline spatial distribution of mangrove areas, which have been transcribed into digital format and presented separately. Mangrove areas were manually digitised as polygons in Google Earth Pro 5.2.1.1329 (beta version) and saved as .kmz files. These were subsequently imported into ESRI’s ArgGIS 10.0 and converted to shapefiles (.shp) which can be accessed by most geographical information systems, and for import into Sabah State archives. These Shapefiles are provided in electronic format on DVD, along with video and digital image files. The overall distribution of mangrove and nipah palm is shown as outlined areas in Figure 3.3.14 .

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Figure 3.3.14: Distribution of mangrove habitats near the Reclamation site.

The Mangrove communities located between Kg. Bebuloh and Kg. Rancha Rancha Darat maintain a similar community structure in the majority of locations throughout the length of the mangrove habitat. Sonneratia ovata and Sonneratia alba , characterised by their flat, oval, leathery leaves are found in abundance at the mangrove fringe, also known as the mangrove belt. In the more inland and densely populated parts of the mangrove; species dominance transitions to Rhizophora apiculata which possess complex matrices of aerial roots and long radicles. To a lesser extent there is also coverage of Avicennia sp ., also known as the white mangrove.

The exception to this assemblage is in locations in the river mouth of Sg. Kina Benuwa, or situated within close proximity to the river outlet, where salinity is lower than in other locations further from the river and there is a noticeably sparser presence of Sonneratia spp . and a prevalence of Rhizophora sp . at the fringe. Avicennia remains present though not prevalent, much the same as in other locations.

Near Kg. Bebuloh the mangrove undergoes a community transition. In dryer areas such as the mud flats the mangrove palm Nypah fructus was found, and there is a dramatic change from mangrove trees dominance to a prevalence of larger palm trees and other more-terrestrial plants.

In the majority of locations the mangrove showed signs of being in healthy condition, however there were some areas where evidence of anthropogenic impacts such as accumulation of litter, encroachment of infrastructure development and human settlement. Localised destruction was also evident ( Plate 3.3 and Plate 3.4), possibly due to storm damage, however the presence of saplings growing in these areas suggests an overall ability for the mangrove to adapt to these stressors.

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Plate 3.3: Typical mangrove forest located between Kg Bebuloh and Kg Rancha Rancha: Sonneratia sp . fringing the sea.

Plate 3.4: Typical mangrove forest located between Kg Bebuloh and Kg Rancha Rancha: Rhizophora sp. fringing Sg. Kina Benuwa.

Various bird species were observed, although not in abundance. When surveying the mangrove mudflats there were mudskippers in abundance, however we recorded a distinct lack of decapods such as fiddler (Uca sp.) and mud (Scylla sp.) crabs. These species can usually be identified by their mud borrows and by audible snapping sounds.

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Plate 3.5: Damage to mangrove and human settlement encroachment, along with new saplings.

3.3.1.6 Fisheries Socio-Economic Survey

3.3.1.6.1 Methodology

Fishery composition and characteristics were determined through an assessment of characteristics of local, artisanal fisheries using a modified questionnaire based on the world-recognised fishery and bycatch questionnaire surveys developed by Duke University (Moore et al. 2010) and modified by Pilcher & Kwan (2012).

Semi-structured interviews were conducted with 30 fishers via targeted visits to Kg. Bebuloh authorised by the Ketua Kampung. Surveys addressed fisher background, fishing methods, catch trends, value and importance. Interviews also touched on perceptions of fishery trends and on the presence of dugongs and marine turtles, two species known to occur in Brunei Bay from Labuan inland to Teluk Padas and southward to Lawas (Jaaman & Lah-Anyi 2003), and which are fully protected in Sabah under the Wildlife Enactment and Federally through the Fisheries Act (1985) and the Wildlife Protection Act (1972).

3.3.1.6.2 Results

Results from the semi-structured interviews conducted with 30 fishers in the vicinity of Kg. Bebuloh and Kg. Rancha-Rancha provide baseline information on fisher background, fishing methods, catches, catch per unit effort, value and importance. Interviews also touched on perceptions of fishery trends, value and importance. Fishers were also asked to identify the areas surrounding Labuan that they visit to catch fish, allowing the key fishing sites to be identified ( Figure 3.3.15 ). The KMZ data files are supplied in electronic format on DVD.

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Interviews were conducted on two separate days, firstly by holding a meeting where fishers could volunteer to attend, secondly by visiting fishers in their home, place of work or in communal areas. All of the respondents were male and aged between 15 and 74 years (a spread of 59 years), with an average of 40 years. A Ryan Joiner test revealed the age data were normally distributed (RJ= 0.988, p>0.100) indicating the interviews covered an evenly distributed age-sample of respondents.

The mean fishing experience across all respondents was 26 years. Experience data were also normally distributed (RJ= 0.971, p>0.100) indicating the interviews covered an evenly distributed experience-sample of respondents. Nearly every respondent indicated their parents and grandparents were also fishers (97% and 80% respectively), providing an indication of experience and generational legacy.

Overall respondents communicated that fishing was their main income-earning activity; of which 90% of respondents stated that fishing was the only way they earned a living. Fishers reported that they fished on average 6 days a week, with the majority fishing all year round.

Figure 3.3.15: Seasonality of fishing activity.

Boats typically were ~5m in length. Some 86% of boats were fitted used outboard motors with low engine power and small crews (usually 2 or 3 persons). Larger boats are not used by the fishers present in Kg. Bebuloh.

Fishing gear usage was diverse, but typically the smaller boats used hook and line or gill nets, some used beach seines but these were mostly as a secondary method to their preferred gear type.

Catches were predominantly for fish, with only 8% of fishers targeting crabs ( Table 3.3.5). Landed catches were reported to range from 5 to 100 kg per outing, with a value of MYR 40 to 700. Unfortunately outings were not described in terms of days, but it is believed that the vast majority of cases were day trips, given vessel size and engine restrictions. Further research would be needed in order to quantify catches per outing, per month, and per year. Some 82% of fishers sell their catch to a third party, the majority doing so at market or to a middle man. None of the respondents claimed to be involved in seaweed farming.

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Table 3.3.5: Use-frequency of fishing gears and target catches Use Frequency Target Catch Only Mostly Sometimes Fish Crab Longline 1 1 Hook and Line 11 5 Purse Seine 1 Beach Seine 2 6 4 Trawl Nets 1 1 2 Gill Nets 7 4 6 8 Traps 2 1 2 Hand Thrown Nets 4 4

With regard to fishery trends; half of those asked believed the overall weight of catches has decreased over recent times (past 5 years), with 29% believing weights remained the same and 21% suggesting the weight of their catches has increased. A total of 93% of respondents believed that the average size of fish caught had decreased, with the remaining 7% suggesting caught fish had remained the same size. The current average size of fish being caught is between 15 and 30cm according to 68% of fishers. But in contrast most respondents suggested the overall catch composition had remained constant over time (79%) with little or no change in the location of the fishing grounds they accessed (81%). Those who claimed there was a change in composition and key fishing areas (21% and 19% respectively) identified an increase in seasonality as the main deviation from the past 5 years.

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Figure 3.3.16: Density graphic indicating primary fishing areas for the 30 respondent interviews.

As part of the semi-structured interviews, fishers were also asked about sightings of turtles and dugongs in order to ascertain abundances in the Labuan fishing areas. These data provide important information to management agencies involved with turtle and dugong conservation (Perikanan Sabah, Jabatan Hidupan Liar Sabah, Jabatan Perlindungan Hidupan Liar Dan Taman Negara - PERHILITAN, Jabatan Taman Laut Malaysia), upon which strategies for monitoring and protection can be designed.

All (100%) of the 30 fishers interviewed from Kg. Bebuloh had seen at least one turtle in their local fishing area. Two species were identified: Chelonia mydas (Green Turtle) and Eretmochelys imbricata (Hawksbill Turtle). Approximately 40% of sightings were reported to be Chelonia mydas and 52% Eretmochelys imbricata. In 9% of instances fishers were unsure as to which species they had seen. On 36% of occasions fishers were in transit to their fishing site, while 32% were at their chosen fishing site. In 15% of instances fishers had observed turtles laying eggs. The proportion of turtles caught in nets as bycatch was 15%.

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With regard to frequency, 67% of fishers stated that seeing turtles was a frequent event, one third of which saw turtles weekly and almost one quarter seeing them daily ( Figure 3.3.17 ). All fishers interviewed had seen a turtle in the past year (2012-2013), 78% of which were in the past three (3) months (2013).

Figure 3.3.17: Frequency of turtle sighting during 2012-2013.

When asked regarding the perceived abundance of turtles living in the local area, 43% fishers believed there to be less than 10 individuals with 48% believing there to be between 10 and 100 individuals. Fishers who were most confident in their answers were asked to answer some further questions in order to create a sightings record database (Table 3.3.6). Table 3.3.6: Turtle sighting records Sighting # Dead / Habitat Size Day / Night Year Month Condition Record Seen Alive T1 1 S Day 2012 Dead T2 1 Coral S Night 2013 3 Alive T3 3 Coral S Day 2013 3 Alive Swimming T4 5 Sea grass S Day & Night 2013 3 Alive Swimming T5 1 Bay S,L Day 2013 3 Alive Sick T6 1 S Day 2013 3 Alive Healthy T7 1 Sea grass S Day 2012 Alive T8 1 S Day 2013 1 Alive Healthy T9 1 S Day 2013 3 Alive Healthy T10 1 Island S Day 2013 2 Alive Healthy T11 1 Island S Night 2013 2 Alive Healthy T12 1 Island S Day 2013 3 Alive Healthy T13 1 Island S Day 2013 3 Alive Healthy

The data suggests that Labuan and its surrounding islands is an area able to adequately support a resident turtle population. Sightings were regular, in predictable locations, and usually in good health. Sightings were usually of small individuals, implying that they may be juveniles or sub-adults not yet sexually mature. The fact that turtles have been seen laying eggs infers that Labuan boasts turtle breeding grounds and is potentially an important area for migratory turtles, which supports key elements in the turtle’s life cycle.

Conversely, only 30% of the 30 fishers claimed to have ever seen a dugong. Some 57% of those who had, had only ever seen one once in their life time. One fisher claimed to have seen one in the past 12 months, three within the last two years, two more than 3 to 10 years in the past, with the balance being a many years ago (one fisher stating the sighting

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was in the 1960’s). Six of the 12 total sightings by the nine fishers were while in transit to fishing areas, and the balance were evenly split between stranded at sea, as bycatch of being seen while fishing. Some 13% of respondents said they knew of locations dugongs could be found. The general belief amongst those who felt able to estimate was that there were fewer than 10 individuals present in the key areas. Fishers were also asked further questions in order to create a sightings record ( Table 3.3.7). Table 3.3.7: Dugong Sighting Records Sighting # Mother - Day / Dead Record Seen Habitat Size Calf Night Year Month / Alive Condition D1 3 Shallow water S Yes Day 2013 3 Alive D2 1 L No Day 2003 Dead Bloated D3 1 Shallow water L No Day 2011 4 Alive Swimming D4 1 Bay S,L Yes Day 2012 4 Alive Active D5 1 Sea grass L No Day 1975 Alive Crying D6 1 Sea grass L No Day 1975 Alive Crying D7 1 L Yes Day 1960 Alive Good

Sightings records were sporadic suggesting that dugong presence was irregular. In the majority of instances the dugongs were sighted alive, sometimes as a Mother and Calf pair, indicating reproductive individuals continue to exist in this population. Two fishers suggested that dugongs could be found nearby at Menumbok, however this was with reference to observing them several decades previously.

Although fishers who had seen a dugong were a minority, some of the others had heard stories from people who had seen one. Often the name Duyong was used instead, which is understood to mean Mermaid. Fishers also conveyed their lack of knowledge of locations around Labuan in which sea grass can be found, the dietary staple for dugongs and green turtles. This, combined with the above data obtained from Kg. Bebuloh, suggests that dugongs are only transients in waters around Labuan, preferring seagrass habitats elsewhere.

3.3.1.7 Summary of Marine Ecology Survey

The surveys undertaken have provided a baseline assessment of the benthic composition and condition around the key borrow and proposed reclamation sites, including identifying the location and state of coral reefs, the composition and general health of nearby mangroves, as well as the fishing trends and socio-economics regarding fisheries in the immediate area. Video surveys of benthic faunal assemblages, line intercept transects, and with fisheries socio-economic assessments and first hand mangrove health assessments, are routine within modern academic research and industrial environmental analyses.

The majority of the benthic survey sites demonstrated a monotypic benthos, most commonly consisting of mud or sand. Moderate to high levels of particular matter in suspension were commonplace across most sites due to the local discharge from Sg. Kina Benuwa. Coral distribution was patchy and restricted to shallow water areas that were a proportionate distance from the resulting sedimentation prevalent in the bay. In the patchy areas of living benthic assemblages, the abundance of Acropora sp. was low-to-moderate accounting for an overall average of only 16.9% (range: 1.5% - 40.3%) of the total substrate in the four locations which recorded >0.1% living

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substrate coverage (C1 C2, C3, C6). The genus Acropora together with Montipora accounted for roughly one third of reef building corals. Coverage of other coralline species was low even in the presence of Acropora sp. Reefs were generally of low species diversity considering the waters of Sabah and Brunei are inclusive of some of the most biologically diverse reef areas in the world. Despite this, the reef areas remain key parts of the marine ecosystem. Large expanses of dead coral rubble dominated many sites, possibly due to high levels of coral turnover, community collapse or possibly historical blast fishing. During the time spent at the survey sites, no blast fishing was recorded.

Fish diversity and abundance was considered to be extremely low. Only three main families of fish (Gobiidae, Pomacentridae and Labridae) were present, restricted almost exclusively to the reef sites, with few instances of fish inhabiting areas of non- living substrate. Additionally within the three families there was low diversity of Genera. No commercial species (Groupers, Snappers, Carangids, etc) were recorded on any of the surveys. No large fish were observed, the largest fish being only 5-6cm in length. The absence of large fish is indicative of extensive over-fishing over a long period. Notably, half of the local fishers believed the overall catches have decreased over the past five years, with 93% respondents believing the fish they catch now are smaller.

Interviews with local fishers revealed that the local community rely heavily on the ability to land fish. The scale of each operation was low, involving boats averaging 5m in length with crews of 2-3 people, mainly targeting fish and using simple gear types such as gill nets and hooks and lines, as opposed to trawling. Some 90% of respondents claimed fishing was their only source of income, with 82% of the total catches (range: 5Kg – 100Kg per day) being outsourced to people or places of commerce. It is clear that fishing plays a significant role in the lives of local communities.

Mangroves act like a sieve, capturing large amounts of sediment from rivers and tides, preventing coastal erosion and absorbing contaminants like trace metals, freeing areas of marine real estate to potentially be colonised and inhabited by marine organisms. The nearby Mangrove forest appears to be generally in good health botanically, demonstrating a degree of resilience in the long term to the imposing anthropogenic developments which surround it. Areas that indicate damage and stress also show signs of recovery, as new saplings take advantage of the new space. Changes in community structure in different areas exemplify a number of mangrove species that are able to occupy differing niches based on natural variance. Few bird species were observed during surveys, whereby mangroves commonly provide a habitat for a wide array of native and migratory bird species. The lack of avian fauna in this instance may be an indication of increased disturbance from nearby industrial processes and the encroachment of manmade developments. There was a similar lack of biological diversity at the mudflats which would usually comprise fiddler crabs, mud crabs, mudskippers and various gastropod species. With the exception of mudskippers, the balances were almost completely absent.

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3.4 Existing Land Use

3.4.1 Regional Profile

Labuan or Labuan Island, is located off the northwest coast of Borneo, north of Brunei Bay, facing the South China Sea, roughly equidistant from Bangkok, Jakarta, Kuala Lumpur, Hong Kong, Manila and Singapore. It is a picturesque island endowed with natural splendors and resources (i.e. large and plentiful offshore Oil and Gas fields in Brunei Bay and surrounding areas) and is an offshore financial centre with the Financial Park Complex as its base. The Park offers a wide range of offshore financial products and services.

3.4.1.1 Administrative Profile

The Federal Territory of Labuan comprises Labuan Island (75 km 2) and six other smaller islands, i.e. Pulau Burung, Pulau Daat, Pulau Kuraman, Pulau Papan, Pulau Rusukan Kecil and Pulau Rusukan Besar, which have a combined total area of 92 km 2. Labuan is one of the three Federal Territories of Malaysia, which also include Kuala Lumpur and Putrajaya.

The territory of Labuan is subdivided into sixteen (16) administrative districts namely: 1. Kg. Tanjung Aru 9. Kg. Bukit Kalam 2. Batu Arang 10. Kg. Patau-Patau I & II 3. Batu Manikar 11. Kg. Pohon Batu 4. Bandar Labuan 12. Kiamsam 5. Layang-Layangan 13. Kg. Sg. Bedaun 6. Lubok Temiang 14. Kg. Sg. Pagar 7. Rancha-Rancha 15. Kg. Sg. Labu 8. Kg. Tanjong Kubong 16. Kg. Durian Tunjung

3.4.2 Reclamation Site Profile

General

The reclamation site is located within an industrial zone. In Labuan F.T., due to the small land area, the industrial zone, residential area and commercial area are often not far part. The immediate present setting of the reclamation site is an industrial area, following by residential further north and east. The industrial zone extends to the south eastern part of the reclamation site.

Within the ReclamationSite

There is no significance usage of land within the reclamation site as the site is still a coastal area at the moment.

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3.4.2.1 Existing Land Use within 5km of the Reclamation Site

A site survey to record the existing land uses within the surrounding areas up to 5km radius, was carried out over the month of February 2013. Desktop research, interviews with local agencies, authorities as well as the local residents were among the additional efforts to verify the existing land uses.

From information gathered, the existing land uses within 5 km of the reclamation boundary comprises mainly industrial area, residential area and commercial area. The prominent land uses noted during the site surveys are described in the following and indicated on a land use map Figure 3.4.1 and in Table 3.4.1

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Table 3.4.1: Land Use Noted within 5 km Radius of the Reclamation Site Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary Land Use within 500 m radius Industrial area North East to East The industrial area adjacent to the proposed reclamation site comprises various industries such as oil and gas industries and storage area.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary

Land Use within 500 m to 1 km Residential Area About 700 m North East Kg Rancha-Rancha Laut, which is densely populated. The houses are mainly built on wooden stilts.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary About 800 m North Kg Rancha-Rancha Darat, which is approximately 800 m north from the proposed reclamation site. The residents are well equipped with basic facilities such as electricity, water and telecommunication supply.

About 800 North Kg Ranggu, which is adjacent to Kg Rancha-Rancha Darat is sparsely populated.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary School About 700 North East Sk Rancha-Rancha, located in between Kg Rancha-Rancha Laut and Kg Rancha- Rancha Darat.

Industrial About 700 m East Oil and gas industrial area. These include Baker Hughes and Aker Solutions

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary

Industrial About 950 South East Solid waste treatment plant, which has been abandoned. The vacant area is seen to be overgrown with grasses and secondary vegetations.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary Land Use within 1 km to 3km Industrial area About 2km South East Industrial area with oil and gas industries and storage facilities such as Petronas, Sabah Flour and Mill sdn Bhd and pipeline storage area

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary

Residential Area About 2 km North East Kg Patau-Patau 1 whereby all the houses are built on wooden silts. Most of the residents work as fisherman and with the oil and gas industries.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary About 2.5 km North Kg Sg Keling, a Malay village.

School About 1.5 km North East Sekolah Agama Islam Nuruttaqwa, which is located within Kg Rancha-Rancha Darat.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary About 2 km North East Sk Patau – Patau, which is located approximately 2km north east from the proposed reclamation site.

School About 2.8km North Chung Hwa Kindergarten, which is located 2.8 km north from the proposed reclamation site.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary Religious Area About 1.7 km North East Chinese temple located along Jalan Rancha-Rancha.

Clinic About 2.5 km North East Klinik Desa Rancha-Rancha, located 2.5 km north east from the reclamation site.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary Land Use within 3 km to 5 km Residential About 3.5 km North East Taman Sin Tee, a residential area well equipped with basic infrastructures and facilities.

About 3.3 km North East Taman Lazenda Villa, which is accessibile via Jalan Rancha-Rancha is approximately 3.3 km north east from the proposed reclamation site.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary About 4 km North West Kg Sg. Bunton is a sparsely populated village.

About 4.5 km North West Kg Belukut, which has dense population of bumiputra ethnic group

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary About 4.7 km North West Kg Bebuloh, which is located 200 meters from Kg Belukut.

Mangroves About 3 km North Patches of mangroves noted further north of the reclamation site.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary Schools About 3.5 km North East SJK (C) Chung Hwa, which is located 3.5 km north east from reclamation site.

About 4.2 km North West SK Bebuloh, which is located 4.2 km north west from the reclamation site.

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Type of Land Use Approximate Distance Description of Land Use from Reclamation Site Boundary Clinic About 4 km North West Klinik Desa Bebuloh, which is located within Kg Bebuloh.

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3.4.3 Borrow Site Profile

General

The existing land uses within 5 km of the sand borrow site boundary is mainly an open sea. Two islands i.e. Pulau Daat and Pulau Papan are located 2 km north and 4 km west, respectively from the sand borrow site. Refer to the land use at sand borrow site presented in Figure 3.4.2.

3.4.3.1 Existing Land Use within 5km of the Sand Borrow Site

Table 3.4.2 summarized the land use at the vicinity of sand borrow site. Table 3.4.2: Land Use within 5km from the Sand Borrow Site Approximate Distance from the Description of Land Use Sand Borrow Site Boundary Land Use within 500 m to 1 km radius

The overall view of the land use within 500 m to 1km is mainly an open sea area. Land Use within 1 km to 3 km radius

Pulau Daat is located 2 km north from the sand borrow site. The south western coastline of the island is dominated by a fishing village.

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Land Use within 3 km to 5 km radius

Pulau Papan is located 4 km west of the sand borrow site. No settlement is noted within the island. There are a few chalets on this island that are owned and managed by Perbadanan Labuan catering mainly for local tourists.

3.5 Human Environment

3.5.1 Population

Ethnicity

According to official statistics, the total populations of Labuan F.T. are shown in Table 3.5.1 by ethnic group and sex. Table 3.5.1: Population by Ethnic Group and Sex, Labuan F.T Ethnic Group 2010 ‘000 Total 83.9 Malaysian Citizens 72.1 Malay 29 Kadazan/ Dusun 7.1 Bajau 6.1 Murut 0.7 Other Bumiputera 17.6 Chinese 9.6 India 0.6 Others 1.5 Non-Malaysian Citizens 11.7 Male 43.2 Female 40.6

Source: Dept. of Statistics, 2010 Note:

1. Population estimates are based on the 2010 Population Census;

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2. The added total may differ due to rounding

Referring to Table 3.5.1, the Malay constitutes the largest ethnic group in Labuan F.T., with approximate 30,000 individuals in 2010. The Chinese forms the second largest ethnic group with 9,600 individuals while the Dusun/ Kadazan is the third largest with 7,100 individuals. This is followed by the Bajau having a population size of 6,100. Overall, the Bumiputra forms about 79% of the Malaysian Citizen in Labuan F.T., and the non- Bumiputra makes up approximately 21%.

In 2010, the total population in Labuan F.T. consisted of 77.1% Malaysian Citizen and 22.9% non-Malaysian. The male population in Labuan F.T. in 2010 was 43,200 and the female population was 40,600.

Age Structure

Table 3.5.2 provides the age structure of the population of Labuan F.T. for year 2010. Approximately 29% of the population falls into the age group of 15 and below. This is typical of a growing population. The island has higher proportion of persons between age 15-64 (68%) while only 3% fall within the age group 65 years old and above.

Dependency Ratio is the ratio of the number of persons below age 15 years and the number of persons aged 65 years and above, to the number of persons in the working age of 15-64 years. Dependency ratio of Labuan F.T. is 65.5 per 100 persons.

Table 3.5.2: Age Structure of Labuan F.T., 2010

Age Group Labuan F.T. % 0-4 8819 11 5-9 7808 9 10-14 7591 9 15-19 8126 10 20-24 9089 11 25-29 11564 14 30-34 6626 8 35-39 5689 7 40-44 5028 6 45-49 4552 5 50-54 3415 4 55-59 2236 3 60-64 1355 2 65-69 859 1 70-74 523 1 75 and above 640 1 Total 83920 100%

Source: Dept. of Statistics, 2010

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3.5.2 Economy

The Gross Domestic Product (GDP) and the main economic activity in Labuan F.T. are presented in Table 3.5.3. Table 3.5.3: GDP and Kind of Economic Activity at Constant Price 2000 in Labuan F.T. Year Kind of Economic Activity (in RM Million) Agriculture Mining and Manufacturing Construction Services Plus: Import Total Quarrying Duties 2005 (RM Million) 66 - 461 17 1,556 10 2,110 2005 (% share) 0.2 - 0.4 0.1 0.7 0.2 0.5 2006 (RM Million) 92 - 693 17 1,394 11 2,206 2006 (% share) 0.2 - 0.5 0.1 0.6 0.2 0.5 2007 (RM Million) 92 - 634 12 1,565 10 2,314 2007 (% share) 0.2 - 0.4 0.1 0.6 0.2 0.5 2008 (RM Million) 100 - 456 13 1,688 15 2,150 2008 (% share) 0.2 - 0.3 0.1 0.6 0.2 0.4 2009 (RM Million) 97 - 417 13 1600 20 2,147 2009 (% share) 0.2 - 0.3 0.08 0.6 0.31 0.4 2010 (RM Million) 105 - 418 14 1,718 21 2,275 2010 (% share) 0.26 - 0.3 0.08 0.6 0.3 0.4

Source: Department of Statistic, Year 2010

*Note: % share refers of the percentage of Labuan’s GDP in relation to the national GDP for the respective sector

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According to Table 3.5.3, the service sector has been the largest GDP contributor in Labuan F.T. from year 2005 to 2010, contributing more than 65% of the total GDP of Labuan. The service sector consists of service providers, mainly for the oil and gas sector.

The manufacturing sector is the second largest GDP contributor of Labuan F.T., though a large gap exists between this and the service sector. This sector contributes between 20% and 32% of Labuan’s total GDP.

Agricultural sector is the third largest GDP contributor of Labuan F.T., making up 3% to 4.5% of Labuan’s total GDP. Agriculture activity is less significant in Labuan F.T. due to the fact that land utility is geared more towards property and industrial use.

From 2005 to 2008, Labuan’s GDP has stood at 0.4% to 0.5% of the total national GDP. There is generally an increase in the total GDP of Labuan from 2005 to 2007 but in 2008, the GDP marginally fluctuated.

Overall, the GDP of all sectors, except for manufacturing and construction sectors, recorded an upward trend from 2005 to 2008.

Labuan will continue to prosper based on its aim to thrive as an International Offshore Financial Centre (IOFC), a commercial hub and tourist destination. Major GDP contributions are expected to be derived from the service sectors mainly in the category of tourism, finance and transport.

Fishery in Labuan F.T.

The number of fishermen working on licensed fishing vessels in Labuan F.T., 2009 is shown in Table 3.5.4.

Table 3.5.4: Number of Fishermen Working on Licensed Fishing Vessels in Labuan F.T., 2009 Fisheries Districts Bumiputera Chinese Indians Others Total Labuan F.T Labuan 7 255 0 100 362 Kg. Patau-Patau 1 23 1 0 0 24 Kg. Patau-Patau 2 46 0 0 0 46 Kg. Baru 13 0 0 0 13 Kg. Muslim 4 0 0 0 4 Kg. Rancha-Rancha 35 0 0 0 35 Kg. Lubuk Temiang 49 0 0 0 49 Kg. Batu Manikar 15 1 0 0 16 Kg. Layang-Layang 1 0 0 0 1 Kg. Sg. Labu 1 0 0 0 1 Kg. Sg. Lada 37 0 0 0 37 Kg. Sg. Miri 9 0 0 0 9 Kg. Sg. Pagar 3 0 0 0 3 Kg. Belukut 21 7 0 0 28 Kg. Bebuloh 75 0 0 0 75 Kg. Sg. Buton 7 0 0 0 7

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Fisheries Districts Bumiputera Chinese Indians Others Total Kg. Batu Arang 3 0 0 0 3 Kg. Pulau Daat 17 0 0 0 17 Kg. Sg. Keling 6 0 0 0 6 Kg. Saguking 1 0 0 0 1 Kg. Bkt. Kudat 1 0 0 0 1 Kg. Pohon Batu 6 2 0 0 8 Total 424 266 0 100 790

Source: Department of Fishery Malaysia, 2009

There are only 790 fishermen working on licensed fishing vessels in Labuan F.T., representing only approximately 0.6% of the total fishermen working on licensed fishing vessels in the Malaysia, amounting to 125,632 individuals.

Of the fishermen, 424 individuals are Bumiputera, 266 are Chinese and 100 are of other ethnic group.

Aquaculture and riverine/ inland fishery are not significant in Labuan F.T. in comparison to marine fishery, as reflected in a lack of estimation of fish production from public waterbodies in Labuan F.T. The landings of marine fish by fishing gear group in Labuan F.T. are shown in Table 3.5.5. Table 3.5.5: Landings of Marine Fish by Fishing Gear Group 2009 Fishing Gear Group Marine Fish Landing (Tonnes) Trawl Nets 21,477 Fish Purse Seines 235 Anchovy Purse Seines 0 Other Seines 0 Drift/ Gill Nets 2,882 Lift Nets 151 Stationery Traps 0 Portable Traps 259 Hooks & Lines 4,433 Bag Nets 0 Barrier Nets 0 Push/ Scoop Nets 0 Shellfish Collection 0 Miscellaneous 0 Total 29,437

Source: Department of Fishery Malaysia, 2009 The marine fish landing in Labuan F.T. in 2009 is 29,437 tonnes, constituting only 2% of total the marine fish landing in Malaysia in that year. Fish landing from trawl nets forms the largest proportion, i.e. approximately 73% of the total fish landings in Labuan F.T, followed by fish landing from hooks and line (15%) as well as drift/ gill nets (approx. 10%) (see Table 3.5.5).

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3.5.3 Infrastructure and Amenities

Education Centre

In general, Labuan F.T. is equipped with various education institutions from elementary to tertiary level (see Table 3.5.6). Table 3.5.6: Education Institution in Labuan F.T No. Institution No. No. of Teacher No. of Students 1 Kindergarten 19 19 416 2 Primary School 17 583 8,055 3 Secondary School 9 584 5,763 4 Private School 1 27 136 5 Religion School (Primary) 11 128 2,823 6 Industrial Training Institute 1 82 476 7 Matriculation College 1 168 2,374 8 University 1 73 1,903 Total 60 1,628 21,946

Source: Perbadanan Labuan, 2010 Water Supply Labuan F.T. is still dependent on water supply from mainland Sabah via an undersea pipeline through the Padas River in Beaufort. The total length of the treated water pipeline is 51 km, of which about 25 km is submerge. Currently, demand for water in Labuan F.T. is about 56 million litres a day but supply is only at 42 million litres, a shortfall of 25 percent. The Ministry of Energy, Green Technology and Water of the Government of Malaysia is undertaking the development of a water pipeline in Labuan, East Malaysia that will connect from the existing Phase 1 treatment plant at Kg. Lawa to a new storage reservoir in Labuan to mitigate the acute water shortage in Labuan. Basically, Labuan F.T. does not have distinguished catchment area due to the fact that it is a low lying island. However, there are three water catchments in Labuan F.T., namely Bt. Kuda, Bt. Timbalai and near Kg. Kerupang Satu which function as reservoir for water supply previously. The water supply in Labuan F.T. by area and capacity is shown in Table 3.5.7. Table 3.5.7: Water Supply in Labuan F.T. by Area and Capacity Area Rated Capacity Current Capacity Output (MGD) (MGD) (MGD) Reservoir Bukit Kuda 1,100 1,100 2 Sg. Pagar 91 85 0.32 Kerupang 58 41 0.2 Sub-Total 1,249 1,226 2.52 River Kina Benuwa 10 0 0 (Labuan)

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Area Rated Capacity Current Capacity Output (MGD) (MGD) (MGD) Padas (Sabah) 8.3 4.2 4.2 Sub-Total 18.3 4.2 4.2 Total 1,267.3 1,230.2 6.72

Source: Water Department 2009

Solid Waste

Currently, all municipal solid waste from residential and commercial areas in Labuan F.T. is handled by Perbadanan Labuan. Collected waste is sent to the landfill in Bukit Kallam, about 7 km northwest of Labuan City. Other than collection by Perbadanan Labuan, there are parties who sent their solid wastes, ranging from green wastes to tyres, to the landfill.

Sewerage

Municipal sewage refers to any liquid waste or wastewater discharge containing human, animal or vegetative matter in suspension or solution. For the Labuan F.T. as a whole, currently the treatment of excreta/ sewage in most of the kampung houses, schools, factories and industrial parks, Government building, etc. is by utilizing individual septic tanks, with the treated effluent being discharged directly to the nearest external drainage system and then into the nearest water course.

For the more established development such as the factories and Government buildings, wastewater from kitchen sinks and bathrooms is conveyed by a separate plumbing system that discharges to the perimeter drains and subsequently into the nearest water course.

3.5.4 Public Heath

A study of the public health status of the community residing in the vicinity of the reclamation was conducted. The objective was to describe the existing, baseline information on the state of health of the community prior to the reclamation activities of the proposed project.

Health data on disease cases related to air pollution, water pollution, animal vectors and skin diseases were requested from the patient records of the two health facilities located nearest to the proposed project site, namely Jabatan Kesihatan Labuan and Klinik Kesihatan Rancha-Rancha for year 2012. The reported data covers the nearest residents at the vicinity of the reclamation site which cover Kg Rancha-Rancha Laut, Kg Rancha- Rancha Darat, Kg Sg Keling and Kg Ranggu.

Table 3.5.8 shows the disease cases related to air pollution reported in year 2012. Air pollution tends to impact children through respiratory diseases and adults through cardiovascular diseases. Eye and respiratory diseases normally aggravated by air pollution (as represented by conjunctivitis, upper respiratory tract infection, asthma and pneumonia) made up 178 cases air pollution related disease reported. Cardiovascular disease which may be worsened by air pollution was not reported.

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Table 3.5.8: Disease Cases Related to Air Pollution reported in Year 2012 No Air Pollution related Disease Cases Reported 1. Conjunctivitis 1 2. Lung Cancer 1 3. Tuberculosis 6 4. Chronic Bronchitis 0 5. Emphysema 0 6. Influenza 0 7. Cardiovascular diseases 0 8. Upper respiratory tract Infections 19 9. Asthma 39 10. Heart Failure 21 11. Pneumonia 91 Total 178 Source: Jabatan Kesihatan Labuan (2012)

Poor drinking water safety may predispose the population to water and foodborne diseases like dysentery, cholera, typhoid and paratyphoid, hepatitis A and acute poliomyelitis. However, no disease cases related to water pollution was reported. Animal vectors may be associated with a poorly managed environment. Often, discarded containers that are improperly disposed or the presence of water within homes and surroundings may become excellent breeding sites for the mosquitoes which transmit diseases. In Year 2012, a total of 2 cases of dengue fever were reported.

Table 3.5.9 indicates skin diseases reported in year 2012, a total of 53 cases of skin diseases were reported. It can be seen that the percentages of skin diseases reported were very minimal. Of all these skin diseases, dermatitis and eczema, urticaria and erythemas are allergic forms of skin reactions that may be exacerbated by allergens and irritants that may be present in air pollution or dust. Among these, only dermatitis and eczema was reported. Table 3.5.9: Skin Disease Cases Reported in Year 2012 No Skin Disease Cases Reported 1. Cutaneous abscess. 25 2. Cellulites 26 3. Dermatitis and eczema 1 4. Psoriasis 1 5. Urticaria 0 6. Disorder of skin appendages 0 7. Erythemas 0 8. Radiodermatitis and other radiation related 0 disorders of the skin Total 53 Source: Jabatan Kesihatan Labuan (2012)

In short, from the statistic health data provided, there is no severe disease related to air pollution and water pollution reported at the vicinity of the reclamation site. However, the Project Proponent and the future appointed contractor have to practice good waste

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management and housekeeping especially at the temporary site office and workers quarter area to avoid any unwanted transmitted diseases to the surrounding area.

3.5.5 Socio-Economic Survey

The main purpose of the study is to gather views of different segments of the communities on the proposed Project. Information concerning the demography, village and households, existing facilities, services, communication infrastructure, economic activities, local institutions were also gathered to supplement the information obtained from the relevant agencies. The latter has been elaborated in the sections above. Information collection techniques employed both the qualitative and quantitative approaches. In the qualitative approach, respondents’ personal views and observations were obtained. In the quantitative approach, information was collected by assigning numerical values to concepts under study and analysing it objectively.

The surveys were carried out at three (3) levels namely:

i. Public consultation/dialogue with villagers;

ii. Household / village level social survey; and

iii. Fishermen survey.

Fishermen survey has already been presented in Section 3.3.1.6 above, hence it will not be repeated in this section.

3.5.5.1 Public Consultation/ Dialogue

A dialogue session was carried out on November 2, 2013 with attendance from various stakeholders including the Project Proponent, Environmental Consultant, representatives from DOE Labuan and the villagers of Kg Rancha-Rancha Darat, Kg Rancha- Rancha Laut and Kg Ranggu. The session was held at the community hall of Kg Rancha – Rancha Darat.

The dialogue session aimed to brief the villagers of the Project and obtain a preliminary idea of the major concerns from the villagers. It was attended by over 70 men and women of the three villages. An oral presentation of the proposed Project, explaining the aim and scale of Project as well as the purpose of the assessment was given. This was followed by a question and-answer session as well as general comments and feedback regarding their concerns as well as their hopes and aspirations. This session aimed to gauge the awareness of the people about the Project as well as to clarify any misunderstanding of the Project, if any. The dialogue and subsequent discussions that follow after the session aim to establish good relationships between the affected people and the Project Proponent.

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Plate 3.6: Dialogue Session with nearby villages within the vicinity of the reclamation site.

Plate 3.7: Project briefing by the Environmental Consultant.

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Plate 3.8: Question and answer session.

The followings are the concerns raised and responses captured in the dialogue session:

Concerns Comments/ Responses Health and Safety Issue Project Proponent’s Representative: Residents are worried of the health and The reclaimed area will be utilized as storage area safety issue, citing the explosion of for oil and gas companies e.g. pipes and Petronas Methanol incident back in 2011. equipment for oil and gas exploration activities. It is There was concern that similar plant will be not envisaged that similar plant such as Petronas built at the reclaimed site in the future. Methanol will be constructed at the reclaimed area.

The residents also hoped that free medical The Project Proponent also agreed that free check up can be provided to the nearby medical check up can be considered for the villagers. villagers. DOE Labuan Representative: Air Pollution The air pollution index within Labuan area is still Residents queried the current air pollution under healthy level. If the residents are concerned index at the vicinity of Kg Rancha-Rancha on the dust and air pollution index, they may with the vast development of industries contact DOE Labuan to get the latest air pollution within the industrial area. index result. Water Pollution DOE Labuan Representative Residents claimed that industrial waste If such case was noted by the residents, they are were directly discharged into the river and urged to report the incident to DOE Labuan as they are worried that the river will be further further investigation and action can be taken. polluted by the upcoming industries.

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3.5.5.2 Findings of Social Survey

The social survey was carried out on March 2013 at eight (8) settlements identified as nearest to the Project. The profile of the settlements being surveyed is shown in Table 3.4.12 . Table 3.5.10: Profiles of Settlements Surveyed Settlement Approx. distance from Project Site Number of boundary Household Interviewed Kg Rancha-Rancha Laut 700 m north east 15 Kg Rancha-Rancha Darat 800 m north 30 Kg Ranggu 800 m north 4 Kg Patau-Patau 1 2 km north east 5 Taman Sin Tee 3.5 km north east 2 Kg Sg Buton 4 km north west 4 Kg. Belukut 4.5 km north west 3 Kg. Bebuloh 4.7 km north west 5 Total 68

Demographic Characteristics of Respondents

Table 3.5.11 summarizes the respondents’ demographic characteristics, including gender, ethnic group, age and employment.

Altogether 68 respondents were interviewed during the social survey. Each respondent represented his/ her respective household. Each respondent was interviewed based on a social survey questionnaire as in Appendix 3.4.1 . Table 3.5.11: Profile of Respondents Characteristics Frequencies Percentage Age Group of respondents 20-29 20 29 30-39 14 21 40-49 17 25 50-59 9 13 60-69 5 7 70-79 3 4

Total 68 100

Gender Male 49 72 Female 19 28

Total 68 100

Ethnic Groups Malay 52 76

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Characteristics Frequencies Percentage Chinese 3 4 Others 13 19

Total 68 100

Employment Fisherman 3 4 Government sector 5 7 Private sector 24 35 Business/ Own Work 9 13 Retired 5 7 Housewife 17 25 Unemployed 2 3 Other 3 4

Total 68 100

Source: Social survey conducted in March 2013.

Referring to Table 3.5.11 , the respondents mostly come from the age group of between 20 and 29 (29% of the total respondents). This is followed by 25% respondents in the age group of 40 to 49 and the remaining 21% from the age group of 30 to 39.

72% of the respondents are male while 28% are female. The respondents of Malay ethnicity constitute 76% of the total respondents, followed by the Chinese respondents (4%) and those of other ethnicity (13%). Those in the category of other ethnicity consist mainly of bumiputra such as Kadazan, Dusun etc.

35% of the respondents are employed by private sector, 25% of the respondents are housewives whereas 13% of them are running their own business. 7% of the respondents find employment in the government sector and equivalent percent of respondents are retirees and unemployed, respectively.

Perception and Awareness of the Project

The perception, awareness and concerns of the respondents were also gauged during the social surveys. The respondents can express multiple concerns associated with the environmental impacts of the Project. Table 3.5.12 summarizes the perception, awareness and concerns of the respondents with respect to the proposed Project. Table 3.5.12: Perception, Awareness and Concerns Aspects Frequencies Percentage Awareness of the Project Yes 2 3 No 66 97

Total 68 100

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Aspects Frequencies Percentage Source of Information if aware of the Project (Among those who are aware of the Project) Government agencies 1 50 Other 1 50

Total 1 100

Perception towards Project Perception of the Positive Impact of the Project to the Respondent Yes 25 37 No 16 24 Not Sure 27 40

Total 68 100

Perception of the Positive Impact Business opportunity 0 0 Job opportunity 14 0 Infrastructural development 2 0

Commencement of Project will cause

environment impact Yes 35 51 No 13 19 Not Sure 20 29

Total 68 100

Cause of Concern (Among those who identify the environmental effect of the Project) Dust Pollution 34 25 Traffic Congestion 23 17 Noise pollution 32 23 Water Pollution 27 20 Health and Safety Risk 22 16

Note: The respondents can identify more - - than one impact

Acceptance towards Project Good 35 51 Moderate 19 28 Low 6 9 Not Sure 8 12

68 100

Source: Social Survey, 2013

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Majority (97%) of the respondents were not aware or not sure of the Project.

37% of respondents foresee the reclamation activities to bring any positive impacts and 40% were not sure of the positive impacts that the reclamation activities could bring. 37% of the respondents expressed that the reclamation activities can create job opportunities.

51% of the respondents expressed their concern of the reclamation site being located in the vicinity of their respective settlements. 19% of them expressed that they were not concerned mainly because the Project is some distance away from their respective settlements. 29% of the respondents had no comment on this matter

Among the 51% of respondents who are concerned about the Project,

1. 25% thought that the Project would pose dust pollution, particularly related to the activities involves during reclamation stage.

2. 17% thought that the Project would pose traffic congestion during the reclamation stage.

3. 23% thought that the Project would result in noise pollution, mainly during the construction stage due to the operation of equipment and machinery.

4. 20% thought that the Project would result in water pollution, particularly when the sedimentation flows into the drains and the waterways.

5. 16% thought that the Project would pose safety and security risks, particularly relating to safety issue caused by foreign workers towards the nearby residents.

For overall acceptance towards the Project, 51% of the respondents shows good acceptance towards the project as it may create more job opportunities and improve the overall infrastructure at the vicinity of the Project site whereas 28% respondents shows moderate acceptance as they are quite aware of the environmental impacts caused during the reclamation stage. 9% respondents showed low acceptance as they thought that the proposed Project will not pose any positive impact to the surrounding. Last but not least, 12% of the respondents have no comment towards the Project.

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3.6 Marine Traffic

Source: Jabatan Laut Wilayah Labuan Figure 3.6.1: Map of Maritime Activities Adjacent to the Proposed Project Area

3.6.1 Jetties and Wharves

There are a total of six (6) major commercial jetties / wharves that contribute to the main maritime traffic movements in and out of Labuan.

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3.6.1.1 Labuan Liberty Wharf

Jabatan Laut Jetties

Labuan Liberty W

Source: Labuan website Plate 3.9: Labuan Liberty Wharf

Labuan Liberty Wharf has two outer berths and two inner berths and handles container cargo with a capacity of 100,000 twenty-foot equivalent units (TEU) annually. Despite its small size, the port has its own unique strengths compared to its neighbouring ports:-

• As a duty free port, customs procedures are much more relaxed. By using the appropriate import-export customs declaration forms, good can be cleared more speedily and without hassle.

• Being small, it can provide dedicated and specialised logistics arrangements for speedier handling. There is usually zero waiting time for berthing and cargo discharging (weather permitting). Also, all facilities are located next to each other thus saving much time, movements and handling costs.

• Comparatively, port charges such as storage charges, container handling fees and others are among the lowest in Malaysia.

• Certified as a safe port and operates in accordance with the International Ship and Port Facility Security Code (ISPS Code).

• Much room to grow in terms cargo volume, facilities, equipment and services. Various business opportunities in the logistics sector.

• The port is capable of providing integrated logistics solution to those involved in the oil and gas sector in line with the aspiration of Labuan to become a vibrant oil and gas hub.

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3.6.1.2 Asian Supply Base Jetty

Plate 3.10: Asain Supply Base Jetty

This supply base is a fully integrated logistics hub tailored to the requirements of oil and gas exploration and being a stocking point for offshore drilling, development and production consumables. The Asian Supply Base Jetty is 120 meters long with alongside depth of 8 meters.

3.6.1.3 Antarasteel Iron Ore Jetty

Plate 3.11: Iron Ore Jetty

The Iron Ore Jetty can serve vessels up to 150,000 deadweight tonnage (DWT). Specializing in iron ore cargoes, the jetty is 220 meters long with alongside depth of 18 meters.

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3.6.1.4 Petronas Methanol Jetty

The Methanol Jetty is 650 meters long with alongside depth of 13 meters specializing in methanol

Source: Labuan Website Plate 3.12: Petronas Methanol Jetty

3.6.1.5 Sabah Flour & Feed Mills Jetty

Plate 3.13: Sabah Flour Mill Jetty

The Sabah Flour Mill Jetty handles off-shore wheat and maize. Its own Jetty catering to ships of 10m drafts, provides berthing for ships of 25 000 DWT and is equipped with pneumatic unloading suction units as well as Grabs with discharge capacity of 1500mt per weather working day of grains.

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3.6.1.6 Shell Timur

Plate 3.14: Shell Timur Jetty

The Shell Timur Jetty, specializing in diesel products is 213 meters long with alongside depth of 9.4 meters, and it can accommodate vessels to 6000 DWT.

Apart from that, there exist seven Government agency jetties in the Victoria Harbour of Labuan Port which also contribute to the local maritime traffic such as:

1. Jabatan Laut (RoRo Ferry) Jetty

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2. Jabatan Laut (RMN) Jetty

3. Jabatan Laut Complex Jetty where Labuan Port Control Centre is situated

4. LKIM Jetty

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5. Agensi Penguatkuasaan Maritim Malaysia (APMM) Jetty

6. Jabatan Laut Workshop Jetty

There also exist a shipyard, the Labuan Shipyard & Engineering, which is one of the largest and most well-equipped in South-East Asia. It provides a 1000-m wharf space for shipbuilding, dry docking and repairs. It is capable of handling ships up to 16,000 deadweight tons with the capability of further expansion to take vessels of more than 20,000 tonnes deadweight.

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Plate 3.15: Labuan Shipyard & Engineering

Berthing Facility Table 3.6.1 Berthing Facility Length Depth Type of Berth Displacement (DWT) (m) (m) New Liberty Wharf 244.0 10 16,000 Labuan Passenger 20.0 - - Terminal (pontoon) 8.0 - - Victoria Wharf 83.6 4.6 -

Private Jetty Type of Berth Length Depth Vessel Size Purpose (m) (m) (DWT) Shell Jetty 213 9.4 6,000 Petroleum Iron Ore Jetty 220 18 150,000 Iron Ore Methanol Jetty 650 13 35,000 Methanol Asian Supply 120 8 6,000 Off-shore Base Jetty Wheat & Sabah Flour - - - maize Mill Jetty Source: Portsworld Sdn Bhd website

3.6.2 Marine Traffic

The present navigation system through the South Approach Channel is meant for all vessels coming into Labuan Port to the various jetties and wharves. Large international gas and iron ore carriers come into port to discharge/load their products at the two big facilities of Petronas Methanol and Antarasteel. Labuan is already a busy port with an average daily movement for this area is at an average of 50 vessel movements per day going to all the jetties/wharves (see Table 3.6.2). The sizes vary from a minimum of 100 DWT to a maximum of 150,000 DWT. The maximum draught of these vessels is up to 18 metres deep. Pilots are available if adequate notice is given but pilotage is not compulsory for vessels normally berth between 0600 hours and 1800 hours and unberthing at any hour of the day or night provided that notice of such movement received between 0800hrs

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and 1600hrs. Berthing Master boards about 2 nautical mile west southwest of the Single Buoy Mooring Inc (SBM)

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3.6.2.1 Government Craft

The irregular arrival and departure of Marine Department patrol craft to and from the Marine Department jetty are estimated at less than four per day on the average. Table 3.6.2: Vessel Movement Statistics

Port : Labuan Year : 2013

NO TYPE OF VESSEL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL 1 UTILITY VESSEL 62 45 67 71 109 100 82 98 134 143 130 4 1045 2 VEHICLE RO-RO 69 70 68 72 74 62 58 78 64 197 151 0 963 3 WATER TANKER 0 0 0 0 0 0 0 0 0 0 0 0 0 4 WORK BOAT 0 0 0 0 0 0 0 0 2 0 0 0 2 5 OTHER 1018 935 1114 1077 1173 1094 1175 1220 1224 1411 1158 4 12603 6 BUOY & AID TO NAVIGATION 4 0 0 0 0 2 5 9 10 8 7 0 45 7 CHEMICAL TANKER 32 34 28 33 31 22 37 40 35 44 32 0 368 8 CREW BOAT 127 114 151 158 203 175 159 123 117 147 113 0 1587 9 TENDER RIG 2 0 8 2 0 0 2 1 0 0 0 0 15 10 TUG BOAT 70 81 98 88 87 80 85 91 85 89 68 1 923 11 TUNDA 0 0 0 0 0 0 0 0 0 0 0 0 0 12 REEFER CARRIER 0 0 0 0 0 0 0 0 0 0 0 0 0 13 SPECIAL PURPOSE VESSEL 9 7 4 4 4 12 15 24 32 18 14 0 143 14 STEEL PILOT BOAT 0 0 1 0 0 0 0 0 0 0 0 0 1 15 DREDGER 0 0 0 0 0 0 0 0 0 0 0 0 0 16 FISHING VESSEL 105 88 124 131 135 120 163 168 167 167 137 0 1505 17 FPSO 0 0 0 0 0 0 0 0 0 0 0 0 0 18 PERSIARAN 0 0 0 0 0 0 0 0 0 0 0 0 0

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NO TYPE OF VESSEL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL 19 PILLING VESSEL 0 0 0 0 0 0 0 0 0 0 0 0 0 20 PLEASURE CRAFT 7 2 0 0 0 2 2 3 5 0 2 0 23 21 OIL TANKER 84 79 96 70 94 87 84 70 65 88 60 0 877 22 OTHERS 15 11 20 18 8 16 28 31 40 23 14 0 224 23 PASSENGER SHIP 574 558 592 558 626 641 674 747 666 674 565 0 6875 24 GOVERMENT SHIP 0 0 0 0 0 0 0 0 0 0 0 0 0 25 LANDING CRAFT 171 151 190 221 206 193 214 204 196 210 163 0 2119 26 LNG CARRIER 4 7 5 3 1 2 3 2 0 2 0 0 29 27 LOG CARRIER 0 0 0 0 0 0 0 0 0 0 0 0 0 28 LPG CARRIER 0 0 0 0 2 0 0 1 0 1 0 0 4 29 OFFSHORE SUPPORT VESSEL 308 250 303 273 293 268 265 298 290 446 353 0 3347 30 FULL CONTAINER 100 109 127 110 74 58 61 85 125 121 53 0 1023 31 GENERAL CARGO 53 27 62 44 45 57 66 51 56 80 57 0 598 32 GEOLOGICAL SURVEY 4 3 0 11 7 2 7 8 7 10 4 0 63 33 DERRICK PIPE LAY VESSEL 1 0 2 1 3 9 7 9 8 7 6 0 53 34 DIVING SUPPORT VESSEL 13 25 20 17 16 10 12 28 38 30 26 0 235 35 DREDGER 0 0 0 0 0 0 0 0 0 0 0 0 0 36 BOT KECIL PESIAR (SBH/SWK) 0 0 0 0 0 0 0 0 0 0 0 0 0 37 BOT KECIL TUNDA (SBH/SWK) 0 0 0 0 0 0 0 0 0 0 0 0 0 38 BULK CARRIER 10 1 7 1 7 7 9 4 3 3 1 0 53 39 ACCOMODATION & PIPE LAY BARGE 5 3 3 7 6 9 15 13 25 24 20 0 130 40 ANCHOR HANDLING 122 106 124 152 189 188 203 168 159 187 153 0 1751 41 BARGE 76 82 111 102 109 81 93 89 92 93 86 1 1015 TOTAL 3045 2788 3325 3224 3502 3297 3524 3663 3645 4223 3373 10 37619

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3.6.2.2 Fishing Vessel Activities

Based on the information obtained from local fishermen in the vicinity of Kampung Bebuloh and Rancha Rancha and the areas surrounding Labuan, their fish catch are identified in Figure 3.3.16 , page C3-42 . The average fishing experience across is about 26 years indicating that fishing is a hereditary activity providing an indication of experience and generational legacy.

From Section 3.3.1.6 , typically fishing boats are about 5m in length. Some 86% of boats were fitted used outboard motors with low engine power and small crew (usually 2 or 3 persons) however larger boats are not used by the fishermen in Kg. Bebuloh.

Fishing gear usage is diverse, but typically the smaller boats used hook and line or gill nets, some use beach seines but these were mostly as a secondary method to their preferred gear type.

Catches are predominantly for fish, with only 8% of fishermen targeting crabs (refer to Table 3.6.3). Landed catches were reported to range from 5 to 100 kg per outing, with a value of RM 40 to RM 700. The vast majority of cases are day trip fishing, given the vessel size and engine restrictions. Some 82% of fishermen sell their catch to a third party, the majority doing so at the market or to middle men. None of the fishermen claimed to be involved in seaweed farming. Table 3.6.3: Use-frequency of fishing gears and target catches

Usage Frequency Target Catch Only Mostly Sometimes Fish Crab Longline 1 1 Hook and Line 11 5 Purse Seine 1 Beach Seine 2 6 4 Trawl Nets 1 1 2 Gill Nets 7 4 6 8 Traps 2 1 2 Hand Thrown Nets 4 4

There is also a company principally engaged in fishing and fish processing. It has a fleet of about 40 fishing vessels and trawlers which supply the bulk of it is raw materials requirement for its tow processing factories in Labuan. Cultured shrimps are purchased from mainland Sabah to supplement its requirements. Its sales of frozen products are exported to US, Canada, Japan, Hong Kong, Korea and Australia.

Fishing vessels do criss-cross the navigational channels when sailing to and fro to their fishing grounds. They are careful not to impede the passage of vessels using the dredged South Approach Channel. To date there have been no reported cases of accidents or incidents involving fishing boats within the Port area.

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Detailed Environmental Impact Assessment for the Proposed Reclamation for the Development Chapter 3 of Oil and Gas Industrial Base at Kg. Rancha-Rancha, Labuan, F.T., Malaysia Existing Environment

3.6.2.3 Anchorage Areas

Plate 3.16: Anchorage Area

There are four anchorage areas for vessels in at least depth of 10 metres south east of Shell Timur Jetty namely the Petroleum, Explosives, Dry Bulk and Quarantine Anchorages. These areas are however not affected by the sand sourcing vessels.

3.6.2.4 Existing Marine Traffic Procedures and Safety Rules

Marine Legislation

The proposed Project is subject to:

• the Merchant Shipping Ordinance 1952, and Rules made under this Act; and

• The Federation Port Rules made under this Act.

Port Control Centre

The Labuan Port Control Centre (PCC) monitors and regulates marine traffic in the Proposed Project Area and the respective navigable waters and port limits in the approaches to the reclamation and sand borrow sites.

Chemsain Konsultant Sdn. Bhd. Page C3-94 CK/EV403-4176/12