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CAIRO NEW CAPITAL 4(2X400+400) Mwe COMBINED CYCLE POWER PROJECT Arab Republic of Egypt Ministry of Electricity and Energy Egyptian Electricity Holding Company Cairo Electricity Production Company CAIRO NEW CAPITAL 4(2x400+400) MWe COMBINED CYCLE POWER PROJECT Environmental and Social Impact Assessment DRAFT FINAL REPORT Volume – I Main Study Report September 2015 Submitted by: AL-AMAR CONSULTING GROUP (AMG) 20 Street 302, New Maadi, Cairo, Egypt P.O. Box 50- Sakr Koraish, Maadi 11931 Tel.: (202) 25177670 – Fax: (202) 2517 7676 Arab Republic of Egypt Ministry of Electricity and Energy Egyptian Electricity Holding Company Cairo Electricity Production Company CAIRO NEW CAPITAL 4 (2x400 + 400) MWe COMBINED CYCLE PROJECT Environmental and Social Impact Assessment DRAFT FINAL REPORT Volume – I Main Study Report September 2015 Prepared by: AL-AMAR CONSULTING GROUP (AMG) 20 Street 302, New Maadi, Cairo, Egypt P.O. Box 50- Sakr Koraish, Maadi 11931 Tel.: (202) 25177670 – Fax: (202) 2517 7676 CAIRO NEW CAPITAL 4 (2x400+400) MWe COMBINED CYCLE POWER PROJECT Environmental and Social Impact Assessment Final Report CONTENTS Volume-I: The Main Study Report NON-TECHNICAL SUMMARY 1. INTRODUCTION 2. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 2.1 IFC/World Bank (Wb) / Ifc Requirements for an ESIA 2.2 IFC Performance Standards on Environmental and Social Sustainability 2.3 Equator Principles 2.4 European Union (Eu) Requirements for an ESIA 2.5 Applicable Local Laws and Regulations of The Government of Egypt 2.6 Egyptian Requirements for The Scope of The ESIA 2.7 International and National Environmental Standards/ Guidelines 2.8 International Marine and Environmental Commitments 3. ANALYSIS OF ALTERNATIVES 3.1 Current Situation ("No Action" Option) 3.2 Alternative Technologies and Fuels 3.3 Alternative Designs of the Power Plant 3.4 Alternative Sites 4. DESCRIPTION OF THE PROPOSED PROJECT AND THE EXISTING FACILITY 4.1 Project Infrastructure 4.2 Design of the CAIRO NEW CAPITAL Power Plant 4.3 Process Description 4.4 Operational Releases to the Environment 4.5 Operational Management and Staffing 4.6 Operational Environmental Health and Safety 4.7 Construction Activities and Program _________________________________________________________________________________________________________________________________________ ESIA for Cairo New Capital, 4800MW Combined Cycle Power Plant Contents-1 September 2015 5. DESCRIPTION OF THE ENVIRONMENT 5.1 General Setting of the Site 5.2 Soils, Geology, Hydrogeology, Topography and Seismicity 5.3 Climate and Meteorology 5.4 Ambient Air Quality 5.5 Aquatic Environment 5.6 Terrestrial Ecology 5.7 Land Use and Landscape Character 5.8 Ambient Noise 5.9 Traffic and Transport 5.10 Archaeological, Historic and Cultural Heritage 5.11 Socio-Economic Environment 6. ENVIRONMENTAL IMPACT ASSESSMENT 6.1 Environmental Impact Process 6.2 Air Quality 6.3 Aquatic Environment 6.4 Noise and Vibration 6.5 Flora and Fauna 6.6 Land Use, Landscape and Visual Impact 6.7 Soils, Geology and Hydrogeology 6.8 Traffic 6.9 Socio-Economic Effects 6.10 Archaeological, Historic and Cultural Heritage 6.11 Natural Disaster Risk 6.12 Major Accident Hazards 6.13 Solid and Hazardous Waste Management 6.14 Public Health 6.15 Occupational Health and Safety Issues 6.16 Associated Infrastructure 7. MITIGATION OF ENVIRONMENTAL IMPACTS 7.1 Introduction 7.2 Mitigation Measures During Design and Construction 7.3 Mitigation Measures During Operation 7.4 Compensation For Affected Parties 8. ENVIRONMENTAL MITIGATION AND MONITORING: ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN (ESMP) 8.1 Objectives of the Plan 8.2 Environmental Management 8.3 Schedule and Costs for Preparation and Implementation of EHS Plans 8.4 Baseline Monitoring of the Pre-Construction Environment _________________________________________________________________________________________________________________________________________ ESIA for Cairo New Capital, 4800MW Combined Cycle Power Plant Contents-2 September 2015 8.5 Monitoring of Impacts During Power Plant Operation 9. CONSULTATION AND DISCLOSURE 9.1 Introduction and General Approach 9.2 Consultation Methodology 9.3 Phase I Consultation 9.4 Phase II Consultation and Disclosure 9.5 Ongoing Facility For Public Consultation and Disclosure REFERENCES Volume- II : Executive Summary (in Arabic) Volume- III : Quantitative Risk Assessment Volume- IV : Public Consultation Activities _________________________________________________________________________________________________________________________________________ ESIA for Cairo New Capital, 4800MW Combined Cycle Power Plant Contents-3 September 2015 1. INTRODUCTION In the context of the Egyptian government’s plans to significantly increase power generation capacities in the country, Siemens AG, Germany (acting as EPC and leader of consortia with various local partners being responsible for civil works), and the Egyptian Armament Authority Forces (acting on behalf of Egyptian Electricity Holding Company (“EEHC”) have recently concluded contracts for the supply, installation and commissioning of three combined cycle power plants (“CCPP”) of 4800 MW each as well as related goods and services, to be located at (i) Beni Suef, (ii) Burullus, and (iii) New Cairo (together the “Projects”). The capital expenditure for each of the Projects is approximately EUR 2 billion. Commissioning for the Projects is to be reached after 3 years in summer 2018. However, Siemens AG has been requested by EEHC to allow for a partial operation in open cycle mode from autumn 2017 to summer 2018 across all three Projects; details are still under negotiations. Deutsche Bank AG, HSBC Bank Middle East Limited and KfW IPEX-Bank GmbH have been appointed as co-ordinating initial mandated lead arrangers (the “CIMLAs”) to raise three loan facilities to partially finance the Projects, each amounting to approximately EUR 1.5 billion (the “Facilities”). Such Facilities shall be supported by the German ECA Euler Hermes Aktiengesellschaft on behalf of the German government (“Hermes”) and be extended to EEHC under a payment guarantee from the Ministry of Finance of Egypt (the “Guarantor”). The CIMLAs intend to invite further lending banks (the CIMLAs and such other banks together the “Lenders”) to participate in the Facilities. Financial closing for the project at Beni Suef is envisaged to be in September 2015 whilst the timelines for Burullus and New Cairo are still being discussed: financial closing may be required as early as September 2015 but not later than late October / early November 2015. AL-AMAR Consulting Group S.A. (AMG), a private consulting firm (Egypt) was commissioned by the Egyptian Electricity Holding Company (EEHC) / Cairo Electricity Production Company (CEPC) to prepare the technical documents and procedures required by: 1. the national Environmental, Health, Safety and Social (the “EHSS”) laws, regulations and permits; 2. International Finance Corporation (“IFC”) Performance Standards of January, 2012 – (“IFC PS”); 3. applicable World Bank and IFC Environmental, Health and Safety (“EH&S”) Guidelines; and 4. the Equator Principles (June 2013), as Benchmarking platform for the project, supported by lending Banks, concerning the Environmental and Social Assessment of the Cairo New Capital Combined Cycle (CNCCC) Power Project. EEHC is seeking financial assistance from the aforementioned Lending Institutions for the construction and operation of this 4 (2x400) + 400) MWe, dual fuel combined cycle power plant. The proposed plant is designated as a Category A project under IFC/WB rules, a Category 1 project under the _______________________________________________________________________________________________________________________________________ ESIA for Cairo New Capital, 4800MW Combined Cycle Power Plant Chapter 1- Page 1 of 10 September 2015 European Banks' rules and a Category C project under the Egyptian Environmental Regulations and therefore requires a full Environmental and Social Impact Assessment. Financing from Deutsche Bank AG, HSBC Bank Middle East Limited, KfW IPEX-Bank GmbH and other Development Banks is conditional upon obtaining the environmental clearance from both the Egyptian regulatory authorities and the International / Regional Banks, i.e. Deutsche Bank AG, HSBC Bank Middle East Limited, KfW IPEX-Bank GmbH and other Development Banks. 1.1 BACKGROUND 1.1.1 The Power Plant Cairo Electricity Production Company (CEPC), a company incorporated in Egypt and affiliated to the Egyptian Electricity Holding Company (EEHC) proposes to construct and operate a new thermal power plant at a selected site east of Cairo Governorate, which is in the desert east of Cairo along the east-west growth corridor from Cairo to Suez and Sokhna, north of the Qattamyya / Ain sokhna Freeway. The site is within an existing piece of land allocated to the Cairo Electricity Production Company (CEPC) by the Agreement Letter of the Minister of Housing, Public Utilities & New Communities (MHPUNC) for the development of the power plant. The overall proposed site area is approximately 744,811.44 m2. The proposed power plant will consist of four Combined Cycle Modules, with a nominal electricity generating capacity of 1200 megawatts (MWe) each, which will be known as Cairo New Capital power Plant. The overall generating capacity of the power plant will be 4,800 MWe. The power plant is intended to be partially operational in open cycle mode by the middle of the year 2017 and fully operational in Combined Cycle mode by mid 2018. The power output from the proposed plant will be sold to the Egyptian
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