Ninh Thuan Solar Power Project, Vietnam
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Regulatory Environmental Impact Assessment Gap Analysis Report Solar Power Plant CMX Renewable Energy Vietnam Draft Report SUNSEAP 23 April 2018 www.erm.com The business of sustainability DRAFT REPORT SUNSEAP Regulatory Environmental Impact Assessment Gap Analysis Report Solar Power Plant CMX Renewable Energy Vietnam Project number: 0453853 For and on behalf of Environmental Resources Management Approved by: Hai Pham Signed: Position: Partner Date: 23 April 2018 This report has been prepared by Environmental Resources Management the trading name of ‘ERM Vietnam Co. Ltd”, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk. CONTENTS 1 INTRODUCTION 1 1.1 BACKGROUND 1 1.2 OBJECTIVES 2 1.3 SCOPE OF WORK AND APPROACH 2 1.4 LIMITATIONS 3 1.5 REPORT STRUCTURE 3 2 PROJECT DESCRIPTION 4 2.1 PROJECT LOCATION AND SETTING 4 2.2 PROJECT DESCRIPTION 8 2.3 PROJECT SCHEDULE 11 3 ADMINISTRATIVE FRAMEWORK (INCLUDING REGULATORY) 12 3.1 INTRODUCTION 12 3.2 THE APPLICABLE STANDARDS 12 4 EIA GAP ANALYSIS 20 4.1 EIA OVERVIEW 20 4.2 EIA REVIEW 27 5 TERMS OF REFERENCE FOR THE SUPPLEMENTAL IMPACT AND RISK ASSESSMENT 34 5.1 INTRODUCTION 34 5.2 CHANCE FIND PROCEDURE 34 5.3 CUMULATIVE IMPACTS 36 1 INTRODUCTION 1.1 BACKGROUND CMX RE Sunseap Vietnam Solar Power Joint Stock Company (hereafter referred as “Sunseap” or “Project Owner”) is developing a 168 MW solar power plant within an area of approximately 187 ha (hereafter referred to as The Project). This Project is located in Tan My and Phu Thuan Hamlets, My Son Commune, Ninh Son District, Ninh Thuan Province, Vietnam. The Project has been approved according to Decision No. 1412/TTg-CN dated Sep 18, 2017 of the Prime Minister on supplementing the Solar Power Plant CMX Renewable Energy Vietnam into the Seventh Revised Power Plan. Sunseap signed the Grid Connection Agreement with Vietnam Electricity (EVN) through Document No. 12/2017/EVN SPC-SOLAR CMX on 26 December 2017. The Project is now in the finalisation of several technical studies, including the Feasibility Study, Geology, Topography and Hydrology studies. In order to comply with national requirement on environmental mangement, a regulatory Environmenal Impact Assessment (EIA) report has been developed by the Project Owner’s local consultant and submitted to the Ninh Thuan Department of Natural Resources and Environment (DoNRE) for approval. Regulatory environmental approval is expected to occur in May 2018. In addition to compliance with the local regulations, the Project is also seeking to align itself with the environment and social standards established under the World Bank/International Finance Corporation (IFC) Standards, Asian Development Bank (ADB) standards and the Equator Principles (EPs) (“Applicable International Standards”). To support the project in complying with the applicable standards Environmental Resources Management Vietnam Company Ltd (ERM) was engaged to prepare a series of environment and social reports to address likely gaps between the regulatory EIA and the environment and social assessment and management expectations established under the applicable standards. In addition to this regulatory EIA gap analysis, the additional reporting consists of: • Stakeholder Engagement Plan; • Environment and Social Management Plan; and • Socio-economic Baseline Report and Expended Community Development Plan. Each of these are prepared as separate standalone reports. ENVIRONMENTAL RESOURCES MANAGEMENT SUNSEAP GAP ANALYSIS REPORT 23 APRIL 2018 1 1.2 OBJECTIVES The regulatory EIA Gap Analysis report seeks to clarify the E&S gaps between the regulatory EIA and applicable standards and determine if additional studies or reporting will be required to address these. Similarly, the report also identifies what appropriate management and mitigation strategies can be put in place to address the identified gaps and better align the project with the applicable standards. The following are the Applicable International Environment and Social Standards applied to ERM’s regulatory EIA Gap Analysis: • The Equator Principles III - 2013; • ADB Safeguard Policy Statement (SPS) - 2009; • IFC Performance Standards (PSs) - 2012; • IFC Environmental, Health, and Safety (EHS) Guidelines - 2007; • IFC Utility Scale Solar Power Plants: A Guide for Developers and Investors - 2012; and • World Bank’s Social Assessment Policies and Guidelines and the Social Analysis Sourcebook - 2003. It is noted that in addition to these, all relevant national and local regulations must be adhered to by the Project in all aspects, however these have not been reviewed in detail as part of this report. 1.3 SCOPE OF WORK AND APPROACH This review is based on a desk-based review of the EIA report and available environmental documentations for the Project, along with a site visit conducted from 2nd to 05th April 2018. The site visit was attended by an ERM social consultant and two environment consultants. The site visit involved the following activities: • Meeting with authorities of Ninh Son District and My Son Commune; • Site walk through to the Project site; • Visit the Cho Mo lake; • Observation of the nearest community (at Tan My and Phu Thuan hamlets of My Son Commune); • Interview with 21 displaced households by the Project; and • Focus group discussion with two farmer and vulnerable groups. The draft regulatory EIA report was prepared by the Project Owner’s local consultant as well as the site visit observations is the main basis of the review. A full list of documents made available as part of the review is provided at Annex A. ENVIRONMENTAL RESOURCES MANAGEMENT SUNSEAP GAP ANALYSIS REPORT 23 APRIL 2018 2 The regulatory EIA was reviewed against the international standards and guidelines (the Applicable Standards), as described in Section 3 below. During the regulatory EIA Review, ERM has focussed attention on: • The existing scope of the regulatory EIA and environmental and social baseline observations from the site visit; • The Project development design; • Clarifying with the Project Sponsor particular aspects of the project scope which are unclear, such as worker accommodation arrangements, water supply; • Land acquisition, compensation, support and resettlement plan; and • Project Administrative Framework. 1.4 LIMITATIONS This Review is based on information made available to date by the Project Owner and also the ERM’s site visit from 2nd to 05th April 2018. The regulatory EIA report was provided in Final draft format to submit for Ninh Thuan DoNRE to get approval. It was agreed that the Final Draft regulatory EIA be used as the basis of this report as the environment baseline and impact assessment is unlikely to require revision. ERM’s report is based on the project description provided within the regulatory EIA and should changes to this be made, this report may require future revision. 1.5 REPORT STRUCTURE The remaining of this report is structured as follows: Section 2 provides an overview of the project location and design; Section 3 presents an overview of legislation, standards and international obligations of relevance to the development of the project; Section 4 provides a gap analysis against Applicable Standards and provides recommendations to be incorporated into the ESMP or additional studies identified as being necessary; and Section 5 presents recommendations on the additional studies or actions required to address the identified gaps. ENVIRONMENTAL RESOURCES MANAGEMENT SUNSEAP GAP ANALYSIS REPORT 23 APRIL 2018 3 2 PROJECT DESCRIPTION 2.1 PROJECT LOCATION AND SETTING The Project is located in Tan My and Phu Thuan Hamlets, My Son Commune, Ninh Son District, approximately 35 kilometres north west of Phan Rang City, Ninh Thuan Province, South Central Coast of Vietnam. The Project is bordered by the following areas: • North: annual crop land, about 150m from a community road; • South: about 130m to the National Road No. 27; about 330m to the Cai river. • West: around 600m to the National Road No. 27; • East: annual crop land, about 550m from a community road. The Project location is shown in Figure 2.1. ENVIRONMENTAL RESOURCES MANAGEMENT SUNSEAP GAP ANALYSIS REPORT 23 APRIL 2018 4 Figure 2.1 The Project Location Source: ERM, 2018 ENVIRONMENTAL RESOURCES MANAGEMENT SUNSEAP GAP ANALYSIS REPORT 23 APRIL 2018 5 The nearest residential area of Tan My and Phu Thuan hamlets, My Son Commune is approximately 50m from the Project site. The site is located on a sparsely vegetated and flat expanse of land which is currently used for as hoc agricultural activities such as acacia plantation and crops such as cassava, sugar cane, corn, etc. Two households (HHs) used to live within the Project site prior to land acquisition. These HHs have since been relocated to their other land lots in My Son Commune. Sandy soil was observed in the Project site and no waterbodies were located within the site boundaries. The nearest waterbody is Cai River which is approximately 1km from the Project site. Cai River runs through Khanh Hoa, Ninh Thuan, Lam Dong and Binh Thuan provinces but more than 80% of its basin is within Ninh Thuan Province. Cai River is around 120km length, with quite steep bed slope at the upstream reaches and narrow valley and bending sections at downstream reaches. The Project area is located in the middle of the Cai River basin. According to the Flood Study prepared by the Project Owner’s consultant, Tan My water diversion project is being implemented at the time of ERM’s review.