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51112-001: Jawa-1 Liquefied Natural Gas-To Environmental and Social Impact Assessment Report (ESIA) – Part 2 Project Number: 51112-001 August 2018 INO: Jawa-1 LNG to Power Project Prepared by ERM for PT Jawa Satu Power (JSP) The environmental and social impact assessment is a document of the project sponsor. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of or any territory or area. 5 SCREENING AND SCOPING This section presents the results of the ESIA screening and scoping exercises. The regulatory EIA (AMDAL) process also goes through a screening and scoping process that is guided by the Indonesian AMDAL regulations, however it is important to understand that there are differences in the applicable standards and level of assessment applicable to ESIA and therefore this Chapter is independent of the AMDAL screening and scoping process. 5.1 OVERVIEW Screening and scoping exercises were carried out to provide a first pass assessment of key issues and any information gaps that should be addressed in the ESIA study in order to obtain the necessary level of data required for a robust Impact Assessment (IA). The exercises were undertaken: To define the applicable standards for the ESIA; To understand the Project, boundaries of the impact assessment and conduct a high-level identification of the key issues and potential benefits; To consider the Project, its components and options under consideration in context of environmental, social and public health receptors; To examine the availability and applicability of relevant environmental, social and public health legal requirements and baseline data to support a robust impact assessment and thus identify any additional baseline data collection needs; To establish the ESIA scope including: - Definition of key Project activities; - Potential significant environmental, social and health impacts to the sensitive receptors/ receivers that require particular attention within the ESIA; and - Additional primary baseline studies to be performed to provide the data required to conduct a robust impact assessment; and To determine key potential stakeholder concerns with respect to environmental, social and public health impacts of the Project. As a result, ERM uses the ESIA process to address the impacts which we have screened as being particularly relevant to the Project, or which require particular scrutiny under the IFC and ADB frameworks. Hence, this Chapter is also prepared to include the environmental and social risks and to specifically target areas which fall out of the scope of the AMDAL process. ENVIRONMENTAL RESOURCES MANAGEMENT PT JAWA SATU POWER (JSP) 0384401 ESIA REPORT_REV8 JULY 2018 5-1 5.2 SCREENING RESULTS The Sponsors have committed to meeting the ADB SPS, Equator Principles III 2013 (EP III), JBIC and NEXI standards. Through EP III, JBIC and NEXI environmental and social standards, the 2012 IFC Performance Standards 1- 8 (IFC PS) and applicable World Bank Group EHS Guidelines are also applicable to the Project as reference international standards. 5.2.1 Project Categorisation Under the applicable standards proposed projects are screened according to type, location, scale, and sensitivity and the magnitude of their potential environmental impacts, including direct, indirect, induced, and cumulative impacts. Projects are classified into categories in terms of the potential significance of impacts, taking into account such factors as: the sector and scale of the project, the substance, degree and uncertainty of potential environmental and social impacts considering the environmental and social context of the proposed project site and surrounding areas. The following provides the project categorisation under the applicable standards of the lenders. 5.2.1.1 ADB ADB categorises proposed projects under the Safeguard Categories of: Environment; Involuntary Resettlement; and Indigenous Peoples. The Project is considered to be categorised as: Environment Category A: A proposed Project is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. An environmental impact assessment (EIA), including an environmental management plan (EMP), is required. Involuntary Resettlement Category B: The scope of land acquisition has been confirmed and only economic resettlement will occur due to the PLTGU Jawa 1 Project. This recognises a willing buyer willing seller approach is being adopted across the tower footing, substation and coastal areas and that the Project has been identified the impact through the loss of more than 10 % of their productive assets (total combined income) including those residing around the Power Plant and coastal areas is ENVIRONMENTAL RESOURCES MANAGEMENT PT JAWA SATU POWER (JSP) 0384401 ESIA REPORT_REV8 JULY 2018 5-2 minimal. However for a Category B projects a resettlement plan, which includes an assessment of social impacts, is required. Indigenous peoples Category C: Impacts to Indigenous Peoples (IP) will not occur as a result of the Project as no IP have been identified in the Project area. As a result, no further assessment is required however ethnic groups are discussed in Chapter 7. 5.2.1.2 EPFI (EP III) Under EP III project category definitions are consistent with those of the IFC. The PLTGU Jawa 1 Project is considered as Category A, defined as: Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented. For all Category A Projects, the EPFI will require the client to conduct an Assessment process to address, to the EPFI’s satisfaction, the relevant environmental and social risks and impacts of the proposed Project, proposing measures to minimise, mitigate, and offset adverse impacts in a manner relevant and appropriate to the nature and scale of the proposed Project. 5.2.1.3 JBIC/NEXI Consistent with the approach of the ADB and EP III/IFC, JBIC and NEXI have consistent definitions for classifying the Project into categories from A to C for non-financial intermediary projects. The PLTGU Jawa 1 Project is considered as Category A, defined as: Projects likely to have significant adverse impact, complicated impact or unprecedented impact which are difficult to assess on the environment. The impact of Category A projects may affect an area broader than the sites or facilities subject to physical construction. Category A, in principle, includes projects in sensitive sectors (i.e., sectors that are liable to cause adverse environmental impact) or with sensitive characteristics (i.e., characteristics that are liable to cause adverse environmental impact), including large scale thermal power projects such as PLTGU Jawa 1, as well as projects located in or near sensitive areas, such as habitats with important ecological value (including mangroves as are present along the coastal area of the Project coastline). For Category A projects, borrowers must submit an EIA report and environmental permit certificates issued by the host governments or other appropriate authority. ENVIRONMENTAL RESOURCES MANAGEMENT PT JAWA SATU POWER (JSP) 0384401 ESIA REPORT_REV8 JULY 2018 5-3 5.3 SCOPING 5.3.1 Area of Influence Scoping was undertaken to identify potential interactions between the Project activities and resources/receptors in the Area of Influence (AoI). The AoI was defined for the Project AMDAL; and was utilised in this ESIA exercise. The AOI is defined to encompass: The area likely to be affected by: - The Project’s activities and facilities that are directly owned, operated or managed (including by contractors) and that are a component of the Project; and - Impacts from unplanned but predictable developments caused by the Project that may occur later or at a different location. Indirect Project impacts on: - Biodiversity or on ecosystem services upon which Affected Communities’ livelihoods are dependent; - Associated facilities, which are facilities that are not funded as part of the Project and that would not have been constructed or expanded if the Project did not exist and without which the Project would not be viable; and - Cumulative impacts that result from the incremental impact, on areas or resources used or directly impacted by the Project, from other existing, planned or reasonably defined developments at the time the risks and impacts identification process is conducted. The AOI encompasses the components that the Project is developing. Furthermore, the AOI also must consider downstream impacts, normally associated with aquatic discharges and air emissions associated with the Project during construction and operations. It is good practice to keep the AOI to a reasonable distance so that the potential impact assessed can be attributed to the Project rather than being affected by influences outside of the Project. Figure 5-1 illustrates the AoI. ENVIRONMENTAL RESOURCES MANAGEMENT PT JAWA SATU POWER (JSP) 0384401 ESIA REPORT_REV8 JULY 2018 5-4 Figure 5-1 Area of Influence ENVIRONMENTAL RESOURCES MANAGEMENT PT JAWA SATU
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