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(Draft): Bangladesh: Power System Efficiency Improvement Project

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(Draft): Bangladesh: Power System Efficiency Improvement Project Environmental Assessment Report (DRAFT) Project Number: 37113 March 2011 Bangladesh: Power System Efficiency Improvement Project Prepared by the Ministry of Power, Energy and Mineral Resources for the Asian Development Bank (ADB). The environmental assessment report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB‘s Board of Directors, Management, or staff, and may be preliminary in nature. LIST OF ABBREVIATIONS ADB - Asian Development Bank AGC - automatic generation control APSCL - Ashuganj Power Station Company Ltd BAN - Bangladesh BELI - Bangladesh Efficient Lighting Initiative BERC - Bangladesh Energy Regulatory Commission BIDS - Bangladesh Institute of Development Studies BIWTA - Bangladesh Inland Water Transport Authority BNBC - Bangladesh National Building Code BOT - build-operate-transfer BPDB - Bangladesh Power Development Board BSTI - Bangladesh Standards and Testing Institution CAPE - convective available potential energy CCPP - combined-cycle power plant CDM - clean development mechanism CFL - compact fluorescent lamp CNG - compressed natural gas CTG - Chittagong DESA - Dhaka Electric Supply Authority DESCO - Dhaka Electric Supply Company Limited DoE - Department of Environment DPDC - Dhaka Power Distribution Company EA - Executing Agency EAC Energy Audit Cell ECR - Environment Conservation Rules EGCB - Electricity Generation Company of Bangladesh EIA - environmental impact assessment EIA & MP environmental impact assessment & monitoring plan EMP - environmental management plan EMRD - Energy and Mineral Resource Division EPC - Engineering Procurement Construction Contractor ETP - effluent treatment plant FGD - focus group discussion FY - Financial Year GAP - Gender Action Plan GIS - geographical information systems GOB - Government of Bangladesh GWh - gigawatt hours HRSA - heat recovery steam generators HSE - health, safety, and environment ICA - institutional capacity assessment (World Bank) IDCOL - Infrastructure Development Company Ltd IEE - initial environmental examination IMR - infant mortality rate IPDP - indigenous peoples development plan IPP - independent power producer IRR - internal rate of return JICA - Japan International Cooperation Agency kV - kilovolts i kWh - kilowatt hours LARP - land acquisition and resettlement plan LNG - liquefied natural gas LTSF - Long-Term Strategy Framework MEPS - minimum energy performance standards MMR - maternal mortality rate MPEMR - Ministry of Power, Energy and Mineral Resources MW - megawatt NGO - non-government organisation NEMAP - National Environmental Management Action Plan NPV - net present value NWPGC - North West Power Generation Company NOx - oxides of nitrogen O&M - operations and maintenance PBS - Palli Biddut Samities (rural electric cooperatives) PCR - project completion report Petrobangla - Bangladesh Oil, Gas & Mineral Corporation PGCB - Power Grid Company of Bangladesh PIC - project implementation consultant PPER - project performance evaluation report PPTA - project preparation technical assistance PSA - production-sharing agreement PSOD - Private Sector Operations Division PSRB - power sector reforms in Bangladesh PV - photovoltaic RAPSS - remote area power systems REA - rapid environmental assessment REB - Rural Electrification Board ROM - rehabilitate-operate-maintain ROO - rehabilitate-own-operate RoW - right-of-way RPGCL - Rupantarita Prakritik Gas Company Limited SCADA - supervisory control and data acquisition SEDA - Sustainable Energy Development Authority SPP - small power plants SU - standard unit SOx - oxides of sulphur SPM - suspended particulate matter TOR - terms of reference TA - technical assistance TGTDCL - Titas Gas Transmission and Distribution Company Limited TOU - time of use U5MR - children under 5 years of age mortality rate WWTP - wastewater treatment plant ii TABLE OF CONTENTS EXECUTIVE SUMMARY ....................................................................................................... 1 1.0 Introduction ................................................................................................................... 1 2.0 Description of the Project .............................................................................................. 2 3.0 Description of the Environment ..................................................................................... 2 4.0 Anticipated Environmental Impacts and Mitigation Measures ........................................ 4 5.0 Analysis of Alternatives ................................................................................................. 7 6.0 Information Disclosure, Consultation, and Participation ................................................ 7 7.0 Grievance Redress Mechanism .................................................................................... 9 8.0 Environmental Management Plan ................................................................................. 9 9.0 Conclusion and Recommendation .............................................................................. 10 10.0 Structure of the Report ................................................................................................ 11 B. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ....................................... 12 B.1 Environment-related of ADB Policies in Bangladesh ................................................... 12 B.2 The Bangladesh EIA Process ..................................................................................... 15 B.3 List of International Treaties and Conventions Signed by Bangladesh ........................ 16 B.4 The Environmental Requirements of ADB ................................................................... 19 C. DESCRIPTION OF THE PROJECT ............................................................................ 21 C.1 Project Type ................................................................................................................ 21 C.2 Project Details – 450 MW Ashuganj Combined-Cycle Power Plant ............................. 22 D. DESCRIPTION OF THE ENVIRONMENT .................................................................. 37 D.1 General ....................................................................................................................... 37 D.2 Project Influence Area ................................................................................................. 37 D.3 Physical Environment ................................................................................................. 39 D.4 Ecological Baseline ..................................................................................................... 46 D.5 Socioeconomic Environment ....................................................................................... 50 E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ........ 56 E.1 Environmental Impacts Identification ........................................................................... 56 E.2 Evaluation and Mitigation of Impacts ........................................................................... 57 F. ANALYSIS OF ALTERNATIVES ................................................................................ 65 F.1 Do Nothing or Without Project Alternative ................................................................... 65 F.2 Type of Fuel ................................................................................................................ 65 F.3 Alternative Sites .......................................................................................................... 66 F.4 Power Plant Configuration .......................................................................................... 67 G. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION .............. 68 G.1 Overview of Public Consultation Process .................................................................... 68 iii G.2 Information Dissemination Process ............................................................................. 68 G.3 Key Stakeholder`s View .............................................................................................. 69 G.4 Details of Consultation Meeting and Discussion .......................................................... 69 H. GRIEVANCE REDRESS MECHANISM ...................................................................... 75 I. ENVIRONMENTAL MANAGEMENT PLAN ............................................................... 76 I.1 Objective ..................................................................................................................... 76 I.2 Mitigation Measures .................................................................................................... 76 I.3 Specific Management Plan ......................................................................................... 84 I.4 Institutional Arrangement and Environmental Monitoring Plan .................................... 91 J. CONCLUSION AND RECOMMENDATION .............................................................. 102 K. PART B PROJECT COMPONENTS - INITIAL ENVIRONMENTAL EXAMINATION 103 I. Kaptai 5 MW Solar Power Subproject ....................................................................... 121 II. Hatiya 2 MW Solar PV-Wind Hybrid System ............................................................. 123 III. 1000-km Solar PV and LED System of Streetlighting for Cities ................................. 143 iv LIST OF TABLES A. 450 MW Ashuganj Combined-Cycle Power Plant Table B.1
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