BASIC INFORMATION of PROJECT Revised

PROPOSED OIL PALM PLANTATION DEVELOPMENT ON 8,094.43 HECTARES (20,001 ACRES) LAND ON PT4951-PT4955 AND PT4987-PT4991 IN MUKIM TEMBELING, DISTRICT OF JERANTUT, PAHANG DARUL MAKMUR. (ENVIRONMENTAL SCOPING INFORMATION)

SECTION 2

BASIC INFORMATION OF PROJECT

2.1 PROJECT TITLE

This project is titled “Proposed Oil Palm Plantation Development on 8,094.43 Hectares (20,001 Acres) Land on PT4951 - PT4955 and PT4987 - PT4991 in Mukim Tembeling, District of Jerantut, Pahang Darul Makmur" (henceforth referred to as the 'Project').

The proposed Project will be developed by THP Agro Management Sdn Bhd while the land owner and Project Proponent is Deru Semangat Sdn Bhd. The details of both parties are listed below. All inquiry related to the project may directly forwarded to the project proponent and project developer as indicated below.

LAND OWNER AND PROJECT DEVELOPER PROJECT PROPONENT

DERU SEMANGAT SDN. BHD. THP AGRO MANAGEMENT SDN BHD

Contact Person: Tn. Ab Wahab B. Ab. Rashid Tn. Mat Saad Ramli (019-7125006) Designation: Senior Manager Plantation Director Contact Person: Tn. Muhamad Suhaili B. Shahruddin Tn. Md Hanif B. Md Nor (013-4266151) Designation Senior Assistant Manager Plantation Advisor Address: Ladang Tembeling THP Agro Management Sdn Bhd No 52, Jalan VM 2, Level 31 - 35, Taman Mutiara Villa, Menara TH Platinum, 27000 Jerantut, No. 9, Persiaran KLCC, Pahang Darul Makmur 50088 Kuala Lumpur. Tel: - 03 26034800 Fax: - 03 26034691

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2.2 PROJECT NATURE

The Project is located in Mukim Tembeling, District of Jerantut, on Lot PT4951 – PT4955 and PT4987 – PT4991. The Project plans to develop the logged over forest into an oil palm plantation covering an area of about 8,094.43 hectares (20,001 acres).

The development of the Project shall follow the same concept used for the establishment of existing oil palm plantation (phase 1) adjacent to the Project site also developed by THP Agro Management Sdn Bhd. The oil palm trees would be planted in the Project site as it is compatible with the regional biophysical and social context which is largely surrounded by agricultural environment.

2.2.1 Land Status

The existing condition of the Project site is a forest compartment which is classified as a production forest. According to Manual Perhutanan Volume III (2005), Forestry Department of Peninsular Malaysia, chapter 17, section 4.2.1, sub-section i(a), National Forestry Act 1984, the timber production from the forest is allowed with either a license or permit. Generally, this area is categorized based on: a) Elevation below than 1000 m, above mean sea level b) Slope not more than 40º c) Having a good road system and/or with slight difficulty to access

The land has been approved by Pejabat Daerah dan Tanah Jerantut through a letter with a reference number: Bil.(6)dlm.PTJ.6.287/15, Bil.(7)dlm.PTJ.6.288/15, Bil. (7)dlm.PTJ.6.286/15, Bil. (7)dlm.PTJ.6.285/15, Bil. (16)dlm.PTJ.6.284/15 dated on 29th April 2015; Bil. (10)dlm.PTJ.6.1257/15, Bil. (10)dlm.PTJ.6.1256/15, Bil. (10)dlm.PTJ.6.1255/15, Bil. (10)dlm.PTJ.6.1254/15 dated on 29th June 2016; Bil. (20)dlm.PTJ.6.2175/14, Bil. (21)dlm.PTJ.6.2175/14, Bil. (22)dlm.PTJ.6.2175/14, Bil. (23)dlm.PTJ.6.2175/14, Bil. (24)dlm.PTJ.6.2175/14 dated on 30th December 2014; Bil. (14)dlm.PTJ.6.1253/15 dated on 29th June 2016 (Refer Appendix 3). These lots have been alienated with a lease period of 99 years to Deru Semangat Sdn Bhd by Pejabat Daerah dan Tanah Jerantut. The project proponent is allowed to develop and manage the Project site as agricultural plantation concept (oil palm).

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2.2.2 Maklumat Semakan Perancangan dan Zoning Perkawasan (JPBD)

Based on "Maklumat Semakan Perancangan dan Zoning Perkawasan (JPBD)", the Project site is located in Mukim Tembeling, Jerantut (based on Rancangan Tempatan Daerah (RTD) Jerantut (Pengubahan) 2020. The current zoning and land use for the Project site is a forest zoning area.

2.2.3 Rancangan Tempatan Daerah (RTD) Jerantut 2020

According to "Pelan Cadangan 2020 Rancangan Tempatan Daerah (RTD) Jerantut (Pengubahan)", the Project site is located in Yong Forest Reserve specifically under Blok Perancangan Kecil (BPK) 4.3, where the land use is classified for both forest and agriculture. The current land use of the project site which is forest zoning and also in line with Maklumat Semakan Perancangan dan Zoning Perkawasan issued by the Jabatan Perancangan Bandar dan Desa (JPBD) Pahang can be changed and converted for agricultural purpose afterwards.

2.2.4 Environmentally Sensitive Area (ESA)

Referring to Rancangan Tempatan Daerah (RTD) Jerantut 2020, there were several components considered as an environmentally sensitive area (ESA) as shown in Table 2.2.1.

Table 2.2.1 Components of ESA within the Project Site LEVEL OF ESA COMPONENTS LEVEL 1 LEVEL 2 LEVEL 3  Yong Forest Reserve  Yong (Tambahan)

 Kg. Merting Receivers of Water Catchment  Kg. Tekai Area  Kg. Batu Balai

Note: 1-Highly Sensitive; 2-Moderate Sensitivity; 3-Low Sensitivity

According to "Garis Panduan Perancangan Pemuliharaan dan Pembangunan KSAS: Hutan Simpan Kekal" (Appendix 4), the project site which is located in the vicinity of Yong Forest Reserve is considered as Environmentally Sensitive Area (ESA). It is classified as moderately sensitive area (ESA 2) due to the elevation is within 300 to 1000 m above mean sea level and also the slope ranging between 25° to 35°.

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2.3 STATEMENT OF NEED

The oil palm industry forms the economic backbone of Malaysia and continues to face new challenges in the face of globalization. The growth of the palm industry in Malaysia has been phenomenal. From mere 400 hectares planted in 1920, the hectarage increased to 54,000 hectares in 1960. Since then many more areas have been opened up for oil palm cultivation, either from virgin jungles or from the conversion of plantations that originally supported rubber or other crops.

This increase in hectare is a direct consequence of the government's policy on crop diversification. By 1996, the hectarage under oil palm stood at a staggering 2.6 million hectares. By 2005 and 2010 the percentage change in the areas under oil palm was around 20% for each five-year period. In 2011, the hectarage reached 5 million hectares. It also saw a corresponding growth in the palm oil milling and refining sectors. Encouraged further by the government’s incentive to exploit the country's rich agro-based resources, oleo chemical processing from palm oil and palm kernel oil began to gain prominence in 1980's (MPOB, 2014).

The National Agro-Food Policy (NAP4) has been put in place to tackle the issue of sustainable agriculture and the competitiveness of the agro-food industry with food safety and nutrition aspects along its value chain.In line with the effort to develop Malaysia as a high-income nation, it is anticipated that the National Agro-Food Policy will increase the revenue of farmers as well as agro-entrepreneurs. This, in turn, will allow the agro-sector to develop into a steady and resilient industry.

Among the beneficial aspects of the project are:

 The Project is aimed to stimulate economic development and subscribe towards fulfilling national policies under the Eleventh Malaysian Plan (2015-2020) which emphasis to increase productivity through modernization of the sector and supported by strengthening the research innovation and development;  The Project will support palm oil mill operations and other related downstream industries;  It will provide and increase job opportunities amongst the population i.e. business opportunity and employment in agricultural sector;  The Project will stimulate socio economic growth in the district, as well as promote the development of supporting amenities and facilities in the district (Indirect Impact);  The project will transform a forest into a plantation site which will be environmentally sustainable;

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 The balance between rural and urban development in the district will be improved. It will promote better working skills and reduce potential migration to urban areas;  There is a potential for increased economic growth in the area over the long term due to the possible development of related agricultural and agro-based industries locally.  It would create rural townships where workers reside and enjoy an improved quality of life.

2.4 PROJECT LOCATION

The Project site is located on PT4951 - PT4955 and PT4987 - PT4991 in Mukim Tembeling, District of Jerantut, Pahang Darul Makmur with an area of 8,094.43 hectares (20,001 acres) (Plate 2.4.1). It is located adjacent to the existing development of oil palm plantation where the Project Proponents are similar to the current proposed Project. The adjacent site is currently in Phase 1 on PT4856, PT4857 and PT4860 (6,000 acres) and PT4858 and PT4859 (4,000 acres) whereby the proposed project will be in Phase 2 and Phase 3 on PT4951-PT4955 and PT4987- PT4991.

The coordinate point of the Project site boundary is located approximately as shown in Table 2.4.1. The surrounding areas of the project site at the southeastern part are oil palm and also rubber plantation. Based on Standard Sheet from Pahang Department of Survey and Mapping (JUPEM), the Project site location is mapped in the standard sheet number of 782-C, 782-D, 781-C, 772-A, 772-B, 771-A, 772-C, 772-D, 771-C, 762-B and 761-A (Appendix 5).

Plate 2.4.1: Existing condition of the Project Site

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Table 2.4.1 Coordinate Points of the Project Site COORDINATE POINTS MALAYSIAN RSO POINT LONGITUDE LATITUDE X Y 1 102º20'59.057"E 4° 15' 26.007" N 483975.6 470838.4 2 102º20'59.225"E 4° 10' 4.606" N 483964.1 460968.3 3 102º20'12.886"E 4° 10' 4.397" N 482535.3 460964.3 4 102º20'13.450"E 4° 8' 19.847" N 482547.3 457753.6 5 102º19'39.023"E 4° 7' 39.724" N 481483.6 456523.3 6 102º18'34.053"E 4° 7' 21.260" N 479479.4 455959.7 7 102º18'21.281"E 4° 7' 37.780" N 479086.5 456467.7 8 102º18'19.892"E 4° 10' 36.266" N 479053.3 461949.0 9 102º15'44.655"E 4° 10' 34.051" N 474266.9 461889.5 10 102º16'11.992"E 4° 11' 48.835" N 475113.9 464184.6 11 102º18'7.151"E 4° 11' 34.566" N 478663.6 463740.1 12 102º17'58.327"E 4° 13' 14.010" N 478396.9 466794.4 13 102º17'11.568"E 4° 13' 16.201" N 476955.4 466864.3 14 102º16'40.664"E 4° 15' 0.176" N 476008.3 470059.0 15 102º18'28.667"E 4° 15' 0.986" N 479338.0 470078.0 16 102º18'28.650"E 4° 15' 25.568" N 479338.8 470832.0

2.5 ACCESS TO PROJECT SITE

The project site is located in Mukim Tembeling, District of Jerantut. From Jerantut town, it can be accessed via Federal Route 234 (Kuala Tembeling - Kuala Lipis) where the route is heading to Kuala Lipis. Afterwards, after traversing for about 23 km through the Federal Route 234, the road junction will be on the right (Plate 2.5.1). This paved road is an access road to the Project Site. By using the existing paved road for about 1 km, it will reach at a concrete bridge (Plate 2.5.2) to cross Sg. Jelai. After crossing concrete bridge, the Project site can be accessed via existing unpaved road (Plate 2.5.3) for about 8 km till reaching the entrance of an existing oil palm plantation of phase 1 (PT4856 - PT4860) (Plate 2.5.4). After that, the access road will be on the left and approximately takes 4 km distance before reaching the boundary of Project site. The access road is located at the southwest of the project site and will be used during the development and operation phase. Figure 2.5.1 shows the key plan, location plan and access road of the project site.

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To Project Site

Plate 2.5.1 Federal Route 234 (Jerantut - Kuala Lipis)

Plate 2.5.2 The Concrete Bridge to cross Sg. Jelai

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Plate 2.5.3 Unpaved Access Road to the Project Site

Plate 2.5.4 Entrance to the Project Site

2.5.1 The Proposed Access Road Network

Surrounding the project site, the sharing of access road with the adjacent existing oil palm plantation development (phase 1) will be implemented. An existing road in Phase 1 (PT4856 - PT4860) will connect directly to the proposed access road of Phase 2 (PT4951-PT4955) and Phase 3 area (PT4987-PT4991). Existing access road and proposed access road is presented in Figure 2.5.2.

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Figure 2.5.1 Location Plan and Access Road to the Project Site

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Figure 2.5.2: The Access Road Network

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2.6 PROJECT COMPONENTS

Table 2.6.1 showed the project components to be used during development and also operation stage. The components for the Project such as living quarters, facilities and amenities, storage and maintenance and so on is as shown below. Figure 2.6.1 shows the layout plan for the project where the placement of workers as well as sewage management are also included located at existing office, quarters and workshops.

Table 2.6.1 Project Components

Components Unit Number of Quarters (mess, labour quarters) a) Mess 1 block b) Labour quarters (1x10 doors) 34 blocks c) Manager bungalow 2 blocks 1. d) Asst. manager bungalow 4 blocks e) Staff quarters 40 blocks f) Number of office 2 units g) Other buildings (store, water treatment 8 units plant & genset house etc.) Number of workers / man power 2. a) During development ratio 1: 12 400 mandays b) During operation ratio 1:18 1010 mandays Type and number of transport & machinery

During development: a) Excavator 21 units b) Bulldozer 29 units c) Tractor 10 units 3. d) Backhoe 1 units e) Hilux 7 units f) Lorry 3 units During operation: a) Tractor 71 units b) Backhoe 1 units Water supply 4. 4 points a) Tube well

Source: THP Agro Management Sdn Bhd

The consideration or a plan to build a palm oil mill or biogas plant within the Project site in the future will be included in the project component for EIA studies if there is any.

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Figure 2.6.1: Layout Plan for the Project Site

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2.7 PROJECT ACTIVITIES

The Project activities involved in this oil palm plantation development can be categorized under three distinct stages, namely pre-development stage, during development stage and post-development stage. An outline of the likely project activities under these stages is given below:

PRE-DEVELOPMENT DURING DEVELOPMENT POST - DEVELOPMENT

Preliminary Land Clearing Field Maintenance Investigation

Harvesting Site Preparation Post-harvest Field Management

Abandonment and Field Establishment Replanting

* The logging activity is not involved in this proposed development. The project proponent should inform in writing declaration they are only allowed to enter the project site after logging activity is completed.

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Pre-Development Stage

1. Preliminary Investigation  Site Survey  Soil Survey  Flora and Fauna Survey  Socio-Economic Survey  Identifying Access Road

During Development Stage

1. Land Clearing  Construction of Access Road  Stacking  Construction of Drainage System (Main Drain)

2. Site preparation  Marking the Block  Construction of Road (Collection Road)  Terracing  Conservation Bund  Silt Pits  Construction of Drainage System (Outlet, Collection and Field Drain)  Construction of Fence  Planting Cover Crop

3. Field establishment:  Preparation of lining  Mechanical Holing  Planting of Cover Crops and Seedling

Post Development Stage

1. Field maintenance  Weeding  Pruning  Manuring  Pest and disease management

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2. Harvesting  Collection of fresh fruit bunch  Transporting fresh fruit bunch  Loose fruit collection

3. Post-harvest field management  Weed management  Monitoring

4. Abandonment and replanting  Felling matured trees  Maintenance of planting row, terrace and drainage system  Planting seedlings and cover crops  Maintenance of plantation area

2.8 PROJECT JUSTIFICATION

THP Agro Management Sdn Bhd has been involved in oil palm business for many years and now desires to expand the hectares of its plantations. Hence, for this Project, approximately 8,094.43 hectares (20,001 acres) for Lot PT4951 - PT4955 and PT4987 - PT4991 will be planted with an oil palm.

The development of this Project will generate economic benefits by providing employment opportunities to the local community. Currently, many of the youngsters work outside of Jerantut because of the limited job opportunities locally. This development will provide the impetus for the local people to work here and stay in their villages. The development of this Project will also contribute towards the upgrading of facilities locally such as the construction of a bridge across Sg. Jelai which would ensure a safer and faster journey for the local people.

Overall, the Project will uplift the life quality of the people in the area which is a key issue in the sustainability platform. It is pertinent to note that growth of the oil palm industry has led to significant improvements in the social structure of rural communities which rely on plantations as a source of employment and income.

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2.9 PREVIOUSLY APPROVED EIA REPORTS OR STUDIES

Based on existing available information, there is several previous EIAs or studies that were conducted for other projects in the vicinity of this Project site as shown in Table 2.9.1 whereby Figure 2.9.1 depicted the previous EIAs project in the vicinity of the Project site.

Table 2.9.1 EIAs for Other Projects in the Vicinity of Project Site PROJECT NO PROJECT TITLE YEAR APPROVED PROPONENT

Proposed Oil Palm Plantation Development on 1618.74 THP Agro Hectares (4,000 Acres) Land on 1 March 2017 Management Sdn PT4858 and PT4859 in Mukim Bhd Tembeling, District of Jerantut, Pahang Darul Makmur

Proposed Oil Palm Plantation Development on 2428.114 THP Agro Hectares (6,000 Acres) Land on 2 March 2018 Management Sdn PT4856, PT4857 and PT4860 in Bhd Mukim Tembeling, District of Jerantut, Pahang Darul Makmur.

Source: EIA Consultant

These EIA reports will be reviewed during this EIA to extract any relevant information that is pertinent for this project.

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Figure 2.9.1: Previously Approved Projects in the Vicinity of the Project Site

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2.10 REGIONAL SETTING OF PROJECT

The proposed Project is compatible with the regional biophysical and social context which is largely surrounded by an agricultural environment.

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