Sustainable Energy Access in Eastern Indonesia—Power Generation Sector Project (RRP INO 49203) Environmental Impact Assessment Project Number: 49203-002 February 2019 INO: Sustainable Energy Access in Eastern Indonesia─Power Generation Sector Project Kaltim Peaker 2 Core Subproject Main Report Prepared by Perusahaan Listrik Negara (PLN) for the Asian Development Bank. This is an updated version of the draft originally posted on 9 March 2018 available on {http://www.adb.org/projects/49203-002/documents}. CURRENCY EQUIVALENTS (as of 15 February 2019) Currency unit – Indonesian Rupiah Rp1.00 = $0.0000657 $1.00 = Rp.15,224.75 ABREVIATIONS ADB Asian Development Bank ADC Air Dispersion Calculation AIMS ASEAN Interconnected Master Plan AMDAL Indonesian broad equivalent to an Environmental Impact Assessment APG ASEAN Power grid AQS Air Quality Standard DLH Dinas Lingkungan Hidup (Environmental Agency) CFPP Coal Fired Power Plant EA Executing Agency (PLN) EIA Environmental Impact Assessment (for Category A projects) EMP Environmental Management Plan GWh Giga Watt hours GFPP Gas Fired Power Plant GHG Green House Gas GRM Grievance Redress Mechanism HSD High Speed Diesel IEE Initial Environmental Examination (for Category B projects) IPP Indigenous Peoples Plan IPPF Indigenous Peoples Planning Framework ISO International Organization for Standardization LNG Liquefied Natural Gas NG Natural Gas O&M Operation and maintenance PAI Potential Acid Input PLN Perusahaan Listrik Negara (Indonesian State Electricity Company) POI Point of Interest (receptor in the noise emission study) PPE Personal Protective Equipment PPTA Project Preparatory Technical Assistance (the “PPTA Consultant” has been appointed by ADB to carry out the PPTA assignment) RKL - RPL EMP - Environmental Monitoring Plan in Indonesia RF Resettlement Framework PV Photovoltaic REA Rapid Environmental Assessment ROW Right of Way RP Resettlement Plan SMP Social Management Plan SPS Safeguard Policy Statement SS Substation OHL Overhead transmission line TOR Terms of References UKL – UPL Environmental Management and Environmental Monitoring Effort in Indonesia VICO Victoria Indonesia Company (LNG distribution, East Kalimantan) DEFINITIONS EIA = Environmental Impact Assessment: Assessment of the substantial impacts of a business and / or activities on the environment. EIA documents in Indonesia consist of: Terms of Reference (KA), AMDAL and RKL – RPL KA-ANDAL = Terms of Reference for the AMDAL AMDAL = Environmental Impact Assessment Document in Indonesia for significant impacts of a business and / or activity on the environment. RKL-RPL = Environmental Management Plan - Environmental Monitoring Plan: is a document containing a series of management and monitoring measures to be applied by the Proponent. This document applies for activities whose licensing requires a mandatory EIA UKL-UPL = Environmental Management and Environmental Monitoring Effort: is a document that contains the management and monitoring measures to be applied by the Proponent. This document applies for activities where licensing does not require a mandatory EIA. NOTE (i) In this report, "$" refers to US dollars, unless otherwise stated. This environmental impact assessment 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 I. Executive Summary 1 A. The Project 1 1. Project Background and General Objective 1 2. Objectives and Scope of the EIA 1 3. Project location and access to the site 1 4. Technical Project description 2 B. Legal requirements 2 C. Project categorization 3 D. Environmental and social baseline conditions 3 1. Physical environment 3 2. Natural environment 4 3. Human environment 4 E. Impact assessment 4 1. Physical environment 4 2. Biological Environment 5 3. Human environment 6 F. Environmental Management and Monitoring Plan 7 G. Public participation 8 H. Overall Findings and Recommendations 8 II. Introduction 11 A. Project Background and Objective 11 B. Project need 11 C. Scope of the Study 11 D. Data sources 12 E. Project categorization 12 F. Project area of influence 13 III. Institutional and Legislative Framework 14 A. Relevant framework 14 1. Air Emission Standards 14 2. Ambient Air Quality Standards 15 3. Effluent discharge standards 17 B. National Legal and Institutional Framework 19 C. Description of Key Laws and Regulations Pertaining to EIA 21 1. Law No 32 /2009 Regarding Environmental Protection and Management 21 2. Indonesian Government Regulation No. 27/2012 regarding the Environmental License 21 3. Indonesian Government Regulation No. 60/2012 Regarding Procedures for Modification of Land Use and Functions of Forest Areas. 22 4. State Minister for the Environment Regulation No.05 of 2012 Minister Decree No.05/2012 regarding Activities for which an AMDAL is mandatory. 22 5. State Minister for the Environment Regulation No.17 of 2012 regarding Guidelines for Community Involvement in The Process of Environmental Impact Assessment and Environmental License 23 6. Other Relevant Requirements 23 D. International Agreements 23 F. National Institutional Framework 24 G. Gaps between national requirements and international standards 26 IV. Description of the Project 28 A. Project setting 28 1. Project location 28 2. The project site 30 3. Access to the project site 31 B. Technical Description 32 1. Existing Tanjung Batu and Kaltim 1 Power Station Complex 32 2. Planned Technical Infrastructure for Kaltim Peaker 2 34 1. Project description 34 2. Project Layout 35 C. Project Associated facilities 36 3. Summary of project associated facilities 41 D. Project variants 42 1. No-Project Option Scenario and Analysis of Alternatives 42 V. Description of the Environment 44 A. Physical environment 44 1. Topography 44 2. Geology and Soil 44 3. Surface water 48 4. Ground water 48 5. Climate 50 6. Ambient Air Quality 51 7. Noise 53 B. Natural environment 55 1. Kutai Kartanegara regency Ecosystem Zones 55 2. Mahakam River 55 3. Protected areas and species 56 4. Ecological resources within Project site 63 C. Human environment 63 1. Kutai Kartanegara District 63 2. Project site 65 VI. Environmental Impact Assessment and Mitigation Measures 67 A. Methodology 67 1. Scoping 67 2. Assessment criteria 68 B. Cumulative impacts 68 C. Design Phase and Pre-Construction Impacts 70 1. Studies and audits to be conducted during DED and pre-construction phase 70 D. Construction Phase Impacts 72 1. Physical Environment 72 2. Natural Environment 77 3. Human Environment (Socio-economic resources) 80 E. Operation Phase Impacts 82 1. Physical Environment 82 2. Air Quality 83 3. Greenhouse Gases Emissions 94 4. Acid deposition 95 5. Noise 96 6. Natural Environment 103 7. Human Environment (Socio-economic resources) 104 F. Cumulative impacts 106 VII. Public Consultation and Information Disclosure 107 A. Information disclosure to date 107 B. Public Consultation to date 107 C. Future information disclosure and public consultation 110 VIII. Grievance Redress Mechanism 113 IX. Environmental Management Plan 115 A. Introduction 115 B. Institutional arrangements for EMP implementation 116 C. Corrective Actions to be Implemented by PLN prior to contract award 117 D. Contractor Obligations Prior to Construction 118 1. Conduct of additional studies and surveys as part of DED 118 2. Preparation of Contractor EHS Plan 118 3. Securing Permits for Spoil Disposal Sites, Work Areas 119 E. Impacts and Mitigation Measures 119 F. Monitoring, Reporting 142 1. Monitoring 142 2. Reporting 142 G. Emergency/Incident Response Procedures during Facility Installation 149 1. Institutional arrangements and responsibilities 149 2. Alert Procedures 151 3. Emergency Response Situations 151 H. Costs of EMP Implementation 153 X. Overall Findings and Recommendations 154 XI. References 156 Annexes A. Maps of the project site and the investigation area B. Public Participation and Meetings C. Air Quality Modeling D. Noise Control Feasibility Report E. Biodiversity Study F. Rapid Hazard Risk Assessment (HAZIP) G. Emergency Preparedness and Response Policies and Procedures List of Tables Table 1: Indonesian emission limits for emissions to air from stationary sources .............................................. 14 Table 2: .............................................................................................................................................................. 15 Table 3: IFC emission guidelines for facilities larger than 50 MWth with combustion .................................... 15 Table 4: National Ambient Air Quality Standards and WHO Guidelines ............................................................ 16 Table 5: National Standards and IFC Guidelines for Noise ................................................................................ 17 Table 6: Effluent discharge standards for Kaltim Peaker 2 derived from National ............................................. 18 Table 7: National Institutional Framework .......................................................................................................... 24 Table 8: Summary