Initial Environmental Examination December 2015 THA: Northeastern Thailand Wind Power Project (Volume 2) Prepared by Energy Absolute Public Company Limited for the Asian Development Bank. This initial environmental examination 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. Your attention is directed to the “terms of use” section on ADB’s 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 any territory or area. Initial Environmental Examination December 2015 THA: Northeastern Thailand Wind Power Project (48 MW Hanuman 5 Wind Farm Project) Prepared by Energy Absolute Public Company Limited for the Asian Development Bank. This initial environmental examination 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. Your attention is directed to the “terms of use” section on ADB’s 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 any territory or area. Table of Contents Page I. Executive Summary 1 II. Introduction 2 III. Policy, Legal and Administrative Framework 4 IV. Description of the Project 10 V. Description of Existing Environment & Socioeconomic Conditions 29 VI. Anticipated Environmental Impacts and Mitigation Measures 40 VII. Information Disclosure, Consultation and Participation 60 VIII. Grievance Redress Mechanism 63 IX. Environmental and Social Management Plan 64 X. Conclusions and Recommendations 80 Appendix I: “Shadow Flicker” Model Appendix II: Social Due Diligence Report Appendix III: Public Participation Meeting Report I. Executive Summary Hanuman 5 Wind Farm Project, a project of the Energy Absolute Public Company Limited (EA) will entail the construction of a 20 x (2.0-3.3 MW) wind farm in Watabaek sub- district, Thep Sathit district, Chaiyaphum province, Thailand (“the project”). The project is being developed by EA using a special purpose company “Pongnok Development Company Limited (“the project company”). The project has a total land requirement including substation area of approximate 9.76 hectares (about 61 rais).The generated electricity from the project will be exported to Electricity Generating Authority of Thailand (EGAT) under a Non-firm SPP of power purchase agreement (PPA) with automatically renewal every 5 years for a total contracted capacity of 48 MW. The scheduled COD date is expected to be within 30 May 2018. The project is located in Agricultural Land Reform Office (ALRO) land where it is presently used for cassava plantation by farmers. The long-term lease agreement concluded with ALRO which is the legal owner of the land is conducted according to the laws of Thailand. The compensation agreement with the affected farmers was reached openly and freely without the use of coercion, intimidation or deceit as amount of agreed rental fee is higher than the net income that can be derived from the affected agricultural land. In order to develop this project, the project company has spent more than 3 years to visit the communities surrounding the project area to give and educate the community leaders, villagers, ALRO and other stakeholders on project information, environmental impacts and social impacts including benefits to the affected farmers and communities by the project. The project company has received a very good feedback from the communities. Later a formal public participation meeting was organized on 18 September 2015 by inviting all stakeholders such as local government agencies, local administration organization, village headmen, villagers and other interested persons to participate in the meeting. The attitude of the stakeholders is generally very positive and agreed towards the project development. In term of environmental and social impacts, an initial environmental examination report was developed for the project. Assessment of the physical resources, biological resources, human use value and quality of life has been given careful attention. During construction and operation period, the project has proposed mitigation measures all environmental issues such as air quality, noise, transportation, avifauna, shadow flicker, occupation health and safety and etc. In addition, the project has proposed a monitoring plan for air quality and noise in construction period. For operation period, noise waste, occupational health and safety, bird/bat mortality and shadow flicker are also monitored to ensure that the project will have minimal environmental and social impacts. To promote and build strong partnership with the local community the project company will establish a Grievance Redress Mechanism that will allow local people to raise their issues, concerns or complaints during project implementation. 1 II. Introduction Hanuman 5 Wind Farm Project, a project of the Energy Absolute Public Company Limited (EA) will entail the construction of a 20 x (2.0-3.3 MW1) wind farm in Watabaek sub-district, Thep Sathit district, Chaiyaphum province, Thailand (“the project”). The project will be developed and implemented under a Non-firm SPP of power purchase agreement (PPA) with Electricity Generating Authority of Thailand (EGAT) with automatically renewal every 5 years for a total contracted capacity of 48 MW. A. Project Proponent The project is supported by EA using a project company, Pongnok Development Company Limited (“the project company”) a special purpose company established in Thailand. EA has two main businesses which are 1) Biodiesel business and 2) Power business. Regarding to the power business, EA has implemented 4 solar power projects and 3 wind power projects (Hadkanghan Wind Farm Project) with total capacity of 278 MW and 126 MW respectively. EA has been listed in Stock Exchange of Thailand since 2013. B. Project Overview The Project comprises of 20 WTGs x (2.0-3.3 MW) at 117-149 m. hub height turbine. The Project site could be accessed via Highway 2354. Existing roads are approximately 12 m. in width will be used as the wind farm access/internal road and will be upgraded as needed. The wind farm access/internal road will be used for the transportation of WTG’s components, and future access to each WTG and substation. Wind farm substation will be connected with the new 115 kV overhead lines of EGAT. During the construction period, the project area covers 29.11 hectares (about 213 rais) which includes wind turbine generators, substations, equipment, machineries. During the operation period, the projects area covers 9.76 hectares (about 61 rais) for location of wind turbine generators and substation. C. IEE Study According to Thai regulation, “The Announcement of Ministry of Natural Resources and Environment for the Type and Size of Projects or Activities to be developed an environmental impact assessment (EIA) and Rules, Methods, Practices and Guidelines for EIA development” dated in Thai Government Gazette on 20 June B.E. 2555 (A.D.2002), the wind power plant project is not required to develop an EIA. Nevertheless, EA has assigned Advance Energy Plus Co., Ltd. (AEP) to undertake an initial environmental examination (IEE) which includes environmental and social assessment of the project to ensure that the project will be environmentally sound and acceptable to the local communities. This IEE document presents the findings and conclusions to fully comply with ADB’s Safeguard 1There will be one type of turbine model installed for the project. The exact model and capacity is still under consideration and is not yet finalized. 2 Policy Statement (2009) for category B projects and internationally recognized standards such as United States for Environmental Protection Agency (USEPA). The objectives of the IEE are to: (i) Assess the existing environmental and socioeconomic conditions of the project area (ii) Identify likely impacts of the proposed project on the natural and human environment of the area, to predict and evaluate these impacts, and determine significance of these impacts, in the context of the technical and regulatory concerns (iii) Propose appropriate mitigation measures that should be incorporated in the design of the project to minimize, if not eliminate, the adverse impacts which cannot be avoided. (iv) Assess the compliance status of the proposed activities with respect to the environmental legislation and ADB’s environmental and social safeguards. (v) Formulate an environmental and social management plan (ESMP) to provide an implementation mechanism for the mitigation measures identified during the study. (vi) Create a grievance redress mechanism and ensure meaningful consultation are conducted. 3 III. Policy, Legal and Administrative Framework A. Compliance with Thai Regulation According to Thai regulation, “The Announcement of Ministry of Natural Resources and Environment for the Type and Size of Projects or Activities to be developed an environmental impact assessment (EIA) and Rules, Methods, Practices and Guidelines for EIA development” dated in Thai Government