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E4392 V2 Ethiopian Electric Power Corporation (Eepco) Alalobad-Tendaho Geothermal Power Development Project

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E4392 V2 Ethiopian Electric Power Corporation (Eepco) Alalobad-Tendaho Geothermal Power Development Project E4392 V2 Ethiopian Electric Power Corporation (EEPCo) Alalobad-Tendaho Geothermal Power Development Project ENVIRONMENT AND SOCIAL IMPACT ASSESSMENT Public Disclosure Authorized OF GEOTHERMAL SECTOR DEVELOPMENT PROJECT FOR Public Disclosure Authorized ALALOBAD TENDAHO GEOTHERMAL PROJECT SITE BY ETHIOPIAN ELECTRIC POWER CORPORATION Public Disclosure Authorized DECEMBER 2013 Public Disclosure Authorized i Ethiopian Electric Power Corporation (EEPCo) Alalobad-Tendaho Geothermal Power Development Project TABLE OF CONTENTS 1 EXECUTIVE SUMMARY ........................................................................... IV I. INTRODUCTION ............................................................................................ 1 I.1. Background ....................................................................................................... 1 I.2. Policy, Legal, Institutional and Administrative Frameworks ...................... 9 II. PROJECT DESCRIPTION........................................................................... 29 III. PROJECT ALTERNATIVES ....................................................................... 31 IV. BASELINE ENVIRONMENTAL CONDITIONS ..................................... 33 V. ENVIRONMENTAL AND SOCIO ECONOMIC IMPACT ..................... 48 VI. MITIGATION MEASURES ......................................................................... 59 VIII. PUBLIC CONSULTATION AND DISCLOSURE ..................................... 67 IX. SYNTHESIS OF ENVIRONMENTAL IMPACT ...................................... 81 X. ENVIRONMENTAL MANAGEMENT PLAN (EMP) .............................. 83 XI. ENVIRONMENTAL MONITORING PLAN ........................................... 109 XII. ESTIMATED MITIGATION COSTS ....................................................... 113 XIII. CONCLUSION AND RECOMMENDATION ......................................... 114 ii Ethiopian Electric Power Corporation (EEPCo) Alalobad-Tendaho Geothermal Power Development Project ACRONYMS ADLI Agricultural Development Led Industrialization ADB Asian Development Bank AFD Agence Francaise De Developpement AfDB African Development Bank ARCCH Authority for Research and Conservation of Cultural Heritage Birr Ethiopian Local Currency CSE Conservation Strategy of Ethiopia EEPCo Ethiopian Electric Power Corporation EMP Environmental Management Plan EMT Environment Monitoring Team FEPA Federal Environmental Protection Authority EPE Environmental Policy of Ethiopia ESIA Environmental and Social Impact Assessment FDRE Federal Democratic Republic of Ethiopia FHH Female Headed Household GSE Geological Survey of Ethiopia GRC Grievance Redress Committee Ha Hectare HIV/AIDS Human Immunodeficiency Virus /Acquired Immune Deficiency Syndrome IC Implementation Committee Km Kilometer kV Kilovolt MW Megawatt MoEF Ministry of Environment and Forest MoWIE Ministry of Water, Irrigation and Energy iii Ethiopian Electric Power Corporation (EEPCo) Alalobad-Tendaho Geothermal Power Development Project 1 EXECUTIVE SUMMARY Introduction The Alalobad-Tendaho geothermal field is one of the potential geothermal fields in the Ethiopian Rift valley that is intended to be explored with a set of four test drillings and several production drillings. The ultimate aim of the project is to generate 70 MW electric power to be supplied to Semera substation and connected to the national grid. The following are Alalobad-Tendaho Geothermal Power Development Project components. Drilling of geothermal wells Heat Gathering System (from geothermal wells to the power house) 70 MW Power Plant Construction and Switchyard 132 Kv Transmission Line (from Alalobad-Tendaho power plant to Semera substation) The Alalobad –Tendaho geothermal field is located in Doubti Woreda, Afar Regional State, Zone 1, in the North Eastern part of Ethiopia, some 600 km from the capital city, Addis Ababa. A feasibility study on geothermal power development has been conducted in March 2010 by consulting firms Ernst & Young ShinNihon LLC, Japan External Trade Organization (JETRO) and West Japan Engineering Consultants. The objective of the feasibility study was to assess the capacity of the geothermal resources to generate electricity and to determine the technical and eco-financial feasibility of the project. The objective of this ESIA is to identify potential impacts of the proposed project and to recommend appropriate mitigation measures to reduce adverse potential impacts. The ESIA study is conducted by EEPCo’s Power System Planning office, Environmental and Social experts. The study team conducted and identified i) base line environmental and social conditions, ii) environmental and social impacts, iii) mitigation measures iv) public consultation and collected information on views of stakeholders and communities on the proposed project. Project Location The Alalobad –Tendaho geothermal field is located in Doubti Woreda, Afar Regional State, Zone 1, in the North Eastern part of Ethiopia, some 600 km from the capital city, Addis Ababa. The proposed geothermal project site is located at geographic coordinates of latitude 110 38’ North and longitude 410 00’ East. Tendaho graben is traversed by an excellent national highway that serves as the main transport route for Ethiopia’s foreign trade through the port of Djibouti. iv Ethiopian Electric Power Corporation (EEPCo) Alalobad-Tendaho Geothermal Power Development Project Project Justification Generation source of EEPCo is mainly dominated by hydropower. About 99.3 % of the energy sources are from the hydropower plants, followed by two wind power plants of 120 and the other one with 100 MW capacity, respectively. Thus, Ethiopia’s energy generation capacity is likely to be affected by climatic change /drought and variability. To overcome this problem the energy mix /diversification scheme is very important. Currently the Ethiopian Government has embarked upon various plans and programs to explore and develop different energy resources (i.e., from wind, geothermal, solar and hydropower) to achieve the major goals of accelerating economic growth and reducing poverty. Geothermal resource is one source of the energy of the country. Along the Ethiopian Rift Valley, about 14 sites (i.e., Dalol, Tendaho, Abbe, Teo, Danab, Meteka, Dofan, Fantale, Kone, Gedemsa, Tulu Moye, Aluto Langano, Corbetti and Abaya) were investigated for their geothermal energy potential which extends some 400 km NNE from latitude of 60 North to latitude of 90 North. Ethiopian electric energy potential from geothermal resource is estimated to be 5,000 MW (Source, EEPCo’s facts in brief, 2011/12). Legal and Institutional Framework There is sufficient legal and administrative ground in Ethiopia for environmental and social management in the process of implementing development projects. The ESIA study considers both the Ethiopian and the World Bank environmental and social policy documents and guidelines. Concerning the institutional arrangement, Ministries and Organizations has established environmental and social branches to address their development activities. Ministry of Water, Irrigation and Energy (MoWIE) has an Environmental Impact and Social Development Office and EEPCo’s Power System Planning comprises of Environmental and Social Experts to address Environmental and Social issues in its development activities. Project Alternatives Different project alternatives has been identified and discussed in the assessment. The do- nothing alternative will worsen environmental degradation such as deforestation problem. Moreover, this alternative will not help to promote educational, commercial and industrial development. Thermal power option would depend on foreign fuel and it increases the emission into the atmosphere of CO2 which is the most important greenhouse gas contributor. In contrast with other energy generation sources, the geothermal energy source, being a renewable energy and environmentally friendly, it is therefore the most preferred. v Ethiopian Electric Power Corporation (EEPCo) Alalobad-Tendaho Geothermal Power Development Project Description of the Project Environment Physical Environment The Alalobad-Tendaho geothermal Power Development Project will be carried out near Logiya town some 23 km from Semera, Afar Regional State Capital. The total area of Doubti Woreda is 539,044.13 hectare and the total area of land required for this development project is about 40 km2. Topography The area of potential interest is predominately a flat /plain terrain at an elevation of 1319 feet, covering a surface area of thousands of square kilometers, locally surrounded by volcanic hills, rising a few hundred meters above the flat plain. Alalobad-Tendaho geothermal field is located in a geologically active zone with a history of naturally occurring earthquakes and smoking springs. Climate From 2003 - 2009, the maximum mean annual temperature is around 36.27 0 C, minimum mean annual temperature is around 23.20 0 C and mean monthly temperature ranges from 18.14 to 42.02 0C, with a little difference from month to month. The mean annual precipitation is around 15.94 mm. July to September and April are the wettest seasons, while October to March is dry season with low level of rainfall. Soil The quality of the soil is generally not good for agriculture and is low in natural fertility. Soil analysis carried out on surface soil samples, collected at a depth of 0 - 20 cm inside the project area appeared to have low contents of organic matter and nutrients. The soil is essentially alkaline with good cation exchange capacity
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