Executive Summary

CONTENTS

1 Introduction...... 1 2 Statement of Need ...... 2 2.1 Strategic Opportunity ...... 2 2.2 Synergy Value with Various Clusters ...... 2 2.3 Benefits ...... 2 2.3.1 Environmental Benefits ...... 2 2.3.2 Benefits to the State and Malaysian Economy ...... 2 2.4 Synergy with existing legislations and policies ...... 3 3 Project Description ...... 3 3.1 Project Concept ...... 5 3.2 Buffer Zone ...... 6 3.3 Project Status ...... 6 3.4 Project Implementation Schedule ...... 6 4 Project Options ...... 7 4.1 Site Selection ...... 7 4.2 Reclamation Layout ...... 7 4.3 No Project Option ...... 8 5 Existing Environment at Project Site ...... 9 5.1 Physical Environment ...... 9 5.2 Biological Environment ...... 11 5.3 Human Environment ...... 13 5.4 Committed Developments in the vicinity of the Project ...... 15 5.5 Environmental Sensitive Receptors (ESR) ...... 16 6 Impact Assessment, Mitigation Measures and Residual Impacts ...... 18 7 Economic Valuation of Environmental Impacts ...... 33 8 Environmental Management Plan ...... 33 8.1 Management of Construction (Reclamation and Dredging) ...... 33 8.1.1 Overall Monitoring and Management Strategy ...... 33 8.1.2 Environmental Management Plans ...... 34 8.2 Management of Post-Construction / Operational ...... 36 9 Emergency Response Plan ...... 38 10 Summary and Conclusions ...... 38

FIGURES

Figure 1 Location of proposed project ...... 4 Figure 2 Project Implementation schedule envisaged to commence as soon as necessary approvals are obtained...... 7 Figure 3 All reclamation layouts ...... 8 Figure 4 Wind roses for the two prevailing monsoons showing predominate wind directions and speeds, and which is reflected dominate wave directions during the two monsoon seasons ...... 10 Figure 5 Public perception of the potential impacts from the proposed project ...... 15 Figure 6 Location of key committed developments in the vicinity of the proposed Project ...... 16

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Figure 7 Summary of identified sensitive receptors within 10 km of project...... 17 Figure 8 RIAM results for the overall project development – without mitigation...... 18 Figure 9 RIAM results for the overall project development – residual impacts (with mitigation)...... 18

TABLES

Table 1 Contact information of the project proponent ...... 1 Table 2 Main project components ...... 5 Table 3 Key details of each project option for reclamation layout ...... 6 Table 4 Summary of the impact assessment, mitigation measures and residual impact – Physical Environment ...... 19 Table 5 Summary of the impact assessment, mitigation measures and residual impact – Biological Environment ...... 23 Table 6 Summary of the impact assessment, mitigation measures and residual impact – Human Environment ...... 28 Table 7 EMP topics during construction (dredging and reclamation) phase ...... 34 Table 8 Summary of environmental monitoring and management program during construction...... 34 Table 9 Summary of monitoring programmes for post-construction / operational ...... 36

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1 Introduction

This Detailed Environmental Impact Assessment (DEIA) is for the project entitled the “Proposed Development of an Integrated Petroleum Hub and Maritime Industrial Park including Reclamation at , , ” (“the project”).

The project proponent is a joint-venture between the State Government of Johor Darul Takzim and the State Secretary Johor (Incorporated) and Spektrum Kukuh Sdn. Bhd. (“the proponent”). The contact details of the proponent are as per Table 1.

Table 1 Contact information of the project proponent

Company: State Government of Johor Darul Spektrum Kukuh Sdn. Bhd. Takzim and The State Secretary, Johor (Incorporated)

Address: Johor State Economic Planning Unit No. 38, Jalan Pengacara U1/48 Aras 3, Bangunan Dato’ Jaafar Temasya Industrial Park Muhammad, Glenmarie 79503 40150 Shah Alam Johor Darul Takzim Selangor Darul Ehsan

Tel: +607 266 6618 +603 5569 7366

Fax: +607 290 9992 +603 5569 0366

Contact Person: Tuan Haji A. Rahim Haji Nin (Director, Dato’ Leaw Seng Hai (Director) Johor State Economic Planning Unit) Raymond Ng Huat Hoe (General Manager)

The environmental consultant for the DEIA study is DHI Water & Environment (Malaysia) with the following registered address:

DHI Water and Environment (M) Sdn. Bhd

3A02, Block G, Phileo Damansara 1 No.9, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya, Selangor, Malaysia Tel: 03 7958 8160 Fax: 03 7958 1162 Contact Persons: Tania Golingi (DEIA Team Leader) Email: [email protected] Syed Mohazri Syed Hazari (DEIA Coordinator) Email: [email protected]

This report focuses on a detailed impact assessment, which have been determined based on scoping of the sensitivity of the receiving environment at the project site and the potential environmental impacts arising from its implementation. Where significant impacts have been identified mitigation measures are proposed in order to reduce the level of impact and an Environmental Monitoring Program is proposed.

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2 Statement of Need

2.1 Strategic Opportunity

One third of the world crude oil trade passes through the Strait of Melaka. has developed into a major storage terminal for oil trading over the years. However, future demand for storage terminal is limited by land scarcity in Singapore. The project is a strategic opportunity to tap into the world’s crude oil market that passes through the Straits of Melaka and spillover from Singapore’s major storage terminal for oil trading demand due to their lack of land capacity.

Oil trade storage terminalling potential is influenced by the Malaysian domestic and regional oil demand, terminalling demand and terminalling supply. Malaysia is projected to require an additional storage capacity of 2.5 million m3 by 2016 as Malaysian domestic oil demand will be 805,000 barrels per day. Another additional demand of 3 to 4 million m3 of storage capacity could be brought on by displacement of floating storage vessels, new oil and gas traders entering the market and expected closure of old and unproductive refineries in China and Australia.

Intermodal transfer to the project may potentially occur to capture the break bulk distribution of Malaysian refinery outputs currently exported to Singapore.

2.2 Synergy Value with Various Clusters

Two major industrial clusters identified for the project are (a) oil and gas and (b) utility providers and third party infrastructure. Large terminals for import, break-bulk export, mixing and storage of crude oil, filtered products, petrochemicals, chemicals, LNG and LPG will be included in the oil and gas cluster. In addition, engineering, packaging materials and solid products will be handled by a third party warehouse provision.

Terminal operators will include the provision of bulk liquid logistics services of third parties, providing operational services related to gas production and refining. It is envisaged that Malaysia and Singapore could co-operate to form an oil and gas region similar to the Amsterdam – Rotterdam – Antwerp (ARA) region.

2.3 Benefits

2.3.1 Environmental Benefits Currently, within Johor waters, Floating Storage Units (FSUs) present environmental risks in terms of oil spillage and waste disposal. The provision of the oil storage facilities at the project site, together with the infrastructure to support safe loading and unloading operations offers an environmentally preferred solution to the current circumstances.

Through this project, integrated infrastructure and facilities for oil and gas fabrication, shipyard and related marine equipment and services can be developed in a controlled manner, avoiding potential ad hoc developments within the mainland areas which could result in higher land use conflicts and a larger impact footprint.

2.3.2 Benefits to the State and Malaysian Economy The project is in line with the Malaysian Government’s policy to “…develop Malaysia into a leading oil and gas services hub in Asia, grow Malaysia’s role in Oil Storage, Logistics and

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Trading...” as stated by YAB Dato’ Seri Mohd Najib bin Tun Abdul Razak in Economic Transformation Programme (ETP): A Roadmap for Malaysia.

The project proponent has entered into a Development Agreement (DA) with the State Government of Johor Darul Takzim (“the State Government”) and the State Secretary, Johor (Incorporated) (“SSI”) on September 6, 2012.

In terms of economic benefits, the project is expected to attract RM 12.2 billion in foreign direct investment (FDI).

2.4 Synergy with existing legislations and policies

The project needs are governed by international, federal, state and local legislations and policies.

Internationally, The Convention on Wetland of International Importance especially as Waterfowl Habitat 1974 (Ramsar Convention on Wetland 1974) is observed as the project is 500 m at its closest to the Tg. Piai Ramsar Site and observes a buffer of 300 m between project site and Ramsar Site boundary. This project does not jeopardise Malaysia’s obligations under the Convention because there is no evidence that the project may cause changes to the ecological character of the Ramsar Site.

Under Federal legislations and policies, three legislations/policies are of relevance to the project. Based on (1) the National Physical Plan 2 (NPP2) (2010), the project area is in line with Conurbation area and RFN 24 (terminal port facilities with strategic national interests). Referring to the (2) National Physical Plan for Coastal Zone (NPP-CZ)(2012), the project site adheres to the suitable buffer zone for the Ramsar Site of 300 m and RFZPPN1 (conservation and sustainable management of terrestrial and marine fauna within coastal areas). Based on (3) The Integrated Shoreline Management Plan (ISMP) for West Coast of Johor (2012), the project site is in line as it is outside the ISMP boundaries, complements ISMP objectives to mitigate coastal erosion and vessel traffic control at Tg. Piai area from the ship wakes. In terms of promoting sustainable eco-tourism and river drainage maintenance (ISMP objective), the project is neutral.

There are two state legislations/policies affecting the project area. The project area is in line with item IN1.0 within the (1) State of Johor Structure Plan (2001-2020) where the project’s concept of an industrial park serves to consolidate industrial development within the integrated masterplan area and hence avoids ad-hoc or ribbon development along the sensitive shorelines around Sg. Pulai and Tg. Piai. The project is also in line with the (2) ISMP for (2010) where the project area is within the MU2-5: Tg Piai (includes Ramsar site) as the project footprint serves to buffer the Piai Ramsar site from the ship wakes along the existing navigation channel to the Port of Tg. Pelepas and also shield it from the short period waves generated by the vessel anchorage area to the south of the project area, in effect functioning as coastal protection for the affected shoreline.

3 Project Description

The project is located at the western shoreline of the State of Johor, off Tg. Piai, the southernmost point of mainland Asia. Administratively, the project is within Mukim Serkat, District of Pontian. The nearest town is Serkat Town, located approximately 3 km west of the project site (Figure 1).

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Figure 1 Location of proposed project

The project is an integrated petroleum hub and maritime industrial park focusing on a strategic oil storage terminal with ancillary facilities including utilities, amenity, security areas and a bridge linking the project and the mainland. The project is to be undertaken in three construction phases and total storage capacity upon completion is approximately 47,300,000 m3 of products, comprising 87% for crude oil and the remaining 13% for clean products. The

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park is also equipped with marine facilities having the capacity to accommodate vessels up to 350,000 DWT.

3.1 Project Concept

The project comprises five (5) main components as summarised in Table 2.

Table 2 Main project components

Project Component Description

Reclamation The reclamation area is 1,411 ha (3,487 ac) in total, requiring an estimated 97 million m3 of fill material to be sourced from a marine borrow site in , Johor. The reclamation is an island concept connected to the shoreline by means of a bridge. The island is located approximately 500 m from the shoreline at its closest point, and adjoins the existing APH reclamation along its northeastern perimeter. The reclamation will be carried out in three (3) phases.

Marine Facilities The marine facilities consist of two multi berth jetties and 13 shore connected berths for the handling of liquid petroleum and petrochemical products. The jetties will be constructed in two phases. In Phase 1, the jetties will be built offshore to the south of the reclamation. The jetties will include a total of 41 berths designed to handle a range of ship sizes from 2,000 DWT tankers up to 350,000 DWT Very Large Crude Carriers (VLCC). The shore connected berths will be constructed along the southern and eastern boundaries of the reclamation in Phase 2 / 3. These berths are single liquid product berths connected to the reclamation by a single jetty approach and will handle ships of up to 50,000 DWT depending on their location.

Capital Dredging Phase 1: No capital dredging. Phase 2: Dredging required along the eastern boundary of the reclamation for the handling of oil tankers of 50,000 DWT. The dredged basin is located adjacent to the existing navigation channel for the Port of Tg. Pelepas (PTP) and will be dredged to -14 m Chart Datum (CD). The estimated quantity of dredged materials is 10.8 million m3.

Onshore The onshore development will be in three (3) phases corresponding with the development (Largely reclamation phases: Petroleum storage) Phase1: 437 ha (1,080 ac) accommodating 129 units of steel tanks with a total storage capacity of 11,377,000 m3. Phase 2: 408 ha (1,008 ac) accommodating 153 tanks with a total storage capacity of 13,275,000 m3. Phase 3: 566 ha (1,399 ac) accommodating 253 tanks with a total storage capacity of 22,657,000 m3.

Access Bridge An access bridge will be built between the main entrance of Phase 1 of the project area and the mainland. This bridge will be built on piles, with a length of 550 m.

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3.2 Buffer Zone

Based on the ‘Guidelines on Siting and Zoning of Industries, 2nd Revised Edition’, the project is classified as a Category 3 industry, which describes industries with moderate pollution potential and safety and hazard risk. The buffer zone requirement for Category 3 is a primary buffer zone of 300 m. Based on the findings of the QRA study, this is buffer zone is more than sufficient to ensure risks to sensitive receptors are maintained within acceptable levels.

The actual distance of the project to the closest environmental sensitive receptors is beyond 300 m as shown in Table 3 below.

Table 3 Key details of each project option for reclamation layout

Receptor Distance

Minimum Distance to Mangrove 500 m

Minimum Distance from reclamation to Tg. Piai Ramsar Site 417 m

Minimum Distance from reclamation to PTP navigation channel 606 m

3.3 Project Status

The project, having been approved by National Physical Plan Council (NPPC) on January 07, 2014, is currently in the master planning stage as Phase 1 has been committed, with a binding agreement entered into on March 12, 2013 between the Proponent and 1MY Strategic Oil Terminal Sdn. Bhd.

Other project approvals needed include:

 Planning Approval  Earthworks Approval by Office; and  Temporary construction jetty approval by the Royal Customs Department, Malaysia.

3.4 Project Implementation Schedule

The project is proposed to commence immediately upon approval from Authorities and following finalisation of the engineering works as shown in the schedule below (Figure 2).

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Figure 2 Project Implementation schedule envisaged to commence as soon as necessary approvals are obtained.

4 Project Options

The project option was considered based on (1) site selection, (2) reclamation and jetty layout and (3) no project.

4.1 Site Selection

The project site has been selected based on its geographical position (confluence of the Straits of Malacca, the Straits of Singapore and the -which is one of the busiest shipping lanes in the world) and the deep waters bordering the site. This is one of the very few sites that meet these requirements on the west coast of Johor, so alternatives were not considered.

4.2 Reclamation Layout

Five reclamation layout options were considered. The other four options (Figure 3) were eliminated due these considerations:

1 Ensuring adequate buffer distance from the reclamation to the shoreline (distance needs to be at least 500 m to environmentally sensitive receptors in particular the mangroves within the Tg. Piai Ramsar Site) and the 300m to the Ramsar boundary; 2 Minimising hydraulic impacts in particular ensuring no significant changes in current patterns in the vicinity of the existing navigation areas; 3 Minimising impacts to existing navigation includes provision of a suitable distance between reclamation and PTP navigation channel (distance at least 600m and

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minimising the number of new berths accessed using the existing PTP navigation channel.

The final layout chosen (Figure 3) complied with all considerations with:

 A 417 m buffer distance from proposed island to Tg. Piai Ramsar site, distance between reclamation and mangrove of 500 m (to environmentally sensitive receptors),  The southern limit of reclamation moved north to area with less water depth to provide better current conditions compared to Option 1 to Option 4;  Distance between reclamation and PTP channel approximately 600 m which allows ships turned adjacent to the berths in this area with minimal impact on shipping transiting the channel;  6 berths adjacent to PTP channel and ship size design for these berths are 50, 000 DWT.

Figure 3 All reclamation layouts

4.3 No Project Option

The ‘No Project’ Option is a status quo option where no land reclamation works or oil storage terminal development on the reclaimed land will take place.

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However, the market demand for oil storage will still remain, and given the strategic location of the area there is a risk that development pressure will be increased around Sg. Pulai, which would impact the mangrove areas, or on the mainland area around Tg. Piai where land use conflicts and increased risk to the existing settlements in the area could occur.

In particular, the project’s masterplan concept where infrastructure is provided to various third party operators would decrease the impact footprint in comparison to ad hoc and independent developments all with their own infrastructure, amenities, wastewater treatment systems, etc.

In terms of economic benefits, if the ‘no project’ option is opted, it is envisaged that there will be an economic loss of at least RM 12.2 billion FDI.

5 Existing Environment at Project Site

5.1 Physical Environment

Primary and secondary data were collected within a radius of between 5 km to 10 km of the boundary of the project footprint. Data was sourced was as early as 1985 to as recent as 2014. The key relevant findings are summarised below:

Topography and Topography around the project area is generally flat with less than 5 – Bathymetry 10 m elevation and mostly covered with palm oil tree and rubber tree plantations. Low land comprised of mangrove and mudflat areas are found along the shoreline. The proposed reclamation area is located in the shallow tidal and sub tidal flats between Tg. Bin and Tg. Piai with depths ranging from 0 m CD (lowest astronomical tide) close to the shoreline to -10 m CD further out to the sea.

Geology The underlying geological formation within 5 km radius from the project area comprised of marine and continental deposits consisting of clay, silt, and peat with minor gravels deposited in the Holocene epic of the Quaternary period.

Marine Sediments Sediment within the project area has a high percentage of silt and clay. Up to 50% of silt content was found in sediments collected north of P. and along the coastline south of Kukup town in Malacca Strait as well as southwest of Tg. Piai and across the project area up to Tg. Bin. Sediments collected south of Tg. Kupang showed a high percentage of sand, with the percentage of sand increasing with depth. Metals concentrations along the east side of the proposed project boundary were less than the National Standards based on the Netherlands standard limits, with many of the samples being below the analytical limits of detection. Sediment chlorophyll-a concentrations were found to sit with a normally expected range of between 1 – 3 µg/kg with higher concentrations mostly closest to the coastline.

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Meteorology The meteorology of the region is a reflection of the seasonal changes in monsoon conditions and the short inter monsoonal periods. Winds come predominantly from the NE during one monsoon and the SE in the other as shown in the wind roses below (Figure 4). The project area is also exposed to Sumatra squalls, a high intensity over a short duration winds event. During these events, the winds can exceed 20 m/s.

Figure 4 Wind roses for the two prevailing monsoons showing predominate wind directions and speeds, and which is reflected dominate wave directions during the two monsoon seasons

Hydrographic The proposed development area has uniformly weak currents with Conditions mean speeds of 0.2 – 0.3 m/s. There is some seasonal difference in net currents (as distinct to tidally driven currents) reflecting the climatic conditions associated with the NE, SW and inter-monsoon periods. The water levels in the study area show a typical tidal range of 0.3 - 3.0 m CD at springs and 1.2 – 2.6 m CD at neaps. The tidal period is mixed but predominantly semidiurnal (twice daily). The proposed development area is partially enclosed and with limited fetch. Most wave action is locally generated in the southern area of the Malacca Straits and from the area south of the site. Other external influences affecting the wave condition of the area include the wave attenuation from the blocking effect of anchored ships, and waves caused by ship wakes, both of which are thought to have an effect on the erosion of the Tg Piai coastline.

Hydrology and There are five streams on the western side of the project area Drainage between Tg. Bin and Tg. Piai with small catchments and low annual flows. The main river within the study area is Sg. Pulai, the estuary mouth of which located approximately 1.5 km northeast of the project site. Sg. Pulai has an order of magnitude larger flows than the local streams.

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Coastal Morphological conditions in the Johor Straits area are characterised Geomorphology by fringing mangrove forests, tidal flats and shallow coastal waters. The western side of Tg. Piai shows a stable if not accreting coastline and mangrove forest fringe whereas the eastern side is seen to be eroding, especially along the southern part of the coastline.

Marine and River Across the monsoonal seasons, dissolved oxygen levels were Mouth/Estuarine sometimes less than the National Standards and the nitrate and Water Quality phosphate level were found to be variable and high. Similarly phytoplankton concentrations were variable and sometimes high. All of which reflect the high nutrient loads into the area from urban waste water and agricultural inputs. Suspended solids were low and below the limits of both the MMWQCS and the AMWQC, as were all other parameters.

Air Quality All the sampled parameters listed under the guideline including TSP, PM10, SO2, CO and NO2, were well within the stipulated limit. Carbon monoxide (CO) was not detected at any of the sampling stations. The limit for VOC was compared against threshold limit values (TLV) recommended under the American Conference of Governmental Industrial Hygienists (ACGIH) where it was found to be well below the stipulated limit. All pollutant levels are considered non-hazardous to human health as a result.

Ambient Noise Ambient noise levels at the four stations were found to below the National stands, and largely created by road traffic.

Vibration In general ambient vibration in the area is well below Curve 1 category. Aside from area north of Tg. Bin which recorded a slightly higher vibration levels could be due to vehicle movements and human activities such as unloading of building material activities.

5.2 Biological Environment

Data collection for marine ecology and terrestrial ecology encompasses area more than 10 km and 5 km radius from the project boundary, respectively. All primary and secondary data was sourced from year 2006 to 2014.

Terrestrial Terrestrial flora along the coastline around Tg. Piai is predominantly Ecology mangroves and mixed vegetation, while further inland plantations such as coconut, palm oil and rubber dominate. The different areas investigated reveal a total of between 12 and 28 species of mammals with the greatest diversity being the Tg Piai mangroves including 6 carnivores, four species of chiropterans (bats), three species of primates (monkeys), two species of rodents (rats), and one species of ungulate (pig). Only one mammal, the Slow loris (Nycticebus coucang) is listed Internationally as Totally Protected and 12 species as Protected.

Avifauna A total of 116 bird species, representing 48 families was recorded throughout the one-year assessment. Among these, 66 species were resident birds (57%), 35 species were migrant birds (30%), 12 species were listed as resident and migrant (10%), and three (3) species were introduced species (3%). Under the Protection of Wildlife Act 1972, 83 species are classified as ‘Totally Protected’, 3 species are listed as ‘Other Protected Bird

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Species’ and 16 species under ‘Game Bird’. Based on number of species and abundances, P. Kukup, the west coast of Tg. Piai, followed by Sg. Pulai represent the more important bird habitats in the study region.

Marine Ecology Mangrove A total of 28 species of mangroves belonging to nine (9) families were recorded within study area of P. Kukup, the west and eastern coasts of Tg. Piai and in Sg. Pulai / Sg. Chengkeh. The Rhizophoraceae family of species is the most dominant within the study area. The east coast of Tg. Piai adjacent to the project site is experiencing severe erosion that has resulted in the loss of significant areas of mangrove. On the western side however, the mangrove fringe is wide and currently advancing. The mangroves of Sg. Pulai are extensive and healthy, however under development pressure as significant areas have been converted to agriculture along the western fringes and industries in the lower reaches. Seagrass Habitat Seagrass beds are found in the estuary of Merambong Shoals, Sungai Pulai, and Tanjung Adang Shoals with average percent seagrass cover of 39%, 36% and 33%, respectively. These beds are of multi-species, with no distinct distribution of zonation. Invertebrate fauna populations co-existing with the seagrass beds include a total of sixty-four (64) taxa, with the highest number being recorded at the Merambong Shoals. Coral Sparsely distributed corals are found around P. Merambong, with average live coral cover of only 5%, which indicates a very poor reef condition. Only 10 taxa of hard corals, 10 taxa of soft corals and two (2) taxa of gorgonians were recorded. The reefs support both vertebrate and invertebrate as well and acts as a feeding and nursery grounds for the regional fish fauna. A total of 21 genera of reef fish belonging to 11 families were recorded at P. Merambong. Marine Megafauna The project area is located within the Straits of Malacca, and Tanjung Piai is potential habitat for the endangered dugong, Green Turtle, Spotted Seahorse, saltwater crocodiles, pipefishes, and dolphins. Up to 10 seahorse sighting were reported within Johor waters and the proposed project area of influence. Aside from the marine mammals, seahorses were also found in/around Tanjung Piai – Sungai Pulai – triangle. All the species reported to likely occur in the Johor Straits are listed as vulnerable in the IUCN Red List of Threatened Species and protected under National Legislation. Although seahorses are listed on CITES, there is no legislative protection at the national level. Fish Fauna Tanjung Piai is one of the main fishing fisheries areas for many of the locally based fishermen. Fishermen from Sg. Pulai (Sg. Dinar, Sg. Boh, Sg. Karang) catch fish mostly using drift nets. Fish surveys undertaken during the three (3) monsoons seasons found the highest number of fish and fish species recorded during the southwest monsoon. The highest number of crustaceans was also recorded during the southwest monsoon, followed by the inter monsoon and the lowest

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during the northeast monsoon. Plankton Communities Three (3) major phyla of phytoplankton were recorded in the study area and the area was found to have moderate species diverse. The most abundant phylum was Bacillariophyta, which constituted more than 98% of the total phytoplankton density. Macrobenthic Communities Eight (8) different phyla were recorded in the study area, where Annelida, Arthropoda (Crustacea), Mollusca, Echinodermata, Chordata and Sipuncula were found during northeast, southwest and intermonsoon. The most dominant phylum was Annelida, which accounted 60% of the total macrobenthic population. The greatest abundance of the macrobenthos are found during the northeast monsoon. Mean total biomass was highest around Tg. Adang to the northeast of the project site, and the lowest was along the western coast of Johor. Statistical analysis revealed that benthic biomass is positively correlated with the percent of sand whereas there is an inverse relationship with current speeds.

5.3 Human Environment

The study boundary for the human environment component is 5 km radius from the project boundary. Information concerning the study area was sought from published and unpublished reports on the human environment in the study area and from primary data collected from social surveys.

Settlements There are 19 settlements within 5 km radius from the project area and most of these settlements are traditional villages except for Pekan Serkat which has a more standard number of amenities.

Land Use In general the existing landuse within the 5 km radius comprises agricultural, industrial land use, environmentally sensitive areas (ESA), human settlement area and public facilities including schools, clinics and mosques. The existing land use of the proposed project area is a unmodified water body of Tg.Piai used by artisanal and commercial fishermen. Based on Draft Local Plan of Pontian District 2002 -2015 and Draft Local Plan of Johor Bahru and Kulaijaya District (Amended), there are no future developments planned within the proposed project site. There are several committed developments within the study area. They are:  (PTP)  Integrated Container Terminal (ICT)  Tanjung Bin Power Plant  Sungai Pulai Bridge Project Socio Economic The 5 km radius of the project boundary had a population of 4,796 Profile from an estimated 1,047 households in 2010 which represents 60% of the total Mukim Serkat. Out of the total population of Mukim Serkat, 64.6% are within the working age (15 – 64 years old) group. Malays represent the highest ethnic group in Mukim Serkat at 76.5%. A total of 230 people was interviewed for the socio survey. Up to 93% of the respondents fall within the working age group (18 – 60 years

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old). The education level of the respondents showed that 80.5% of them have completed primary and secondary education. According to the feedback the general size of an average family is 4-6 persons per family. The source of livelihood for 31.5% of the respondents came from the local fishery and aquaculture industry. Others source of livelihood are sectors such as government, private, self-employed, others and not working. The household income within the study area showed that 54.5% of the respondents’ falls within RM500- RM1,000 per household per month.

Fisheries and From the community within the 5 km radius of the study area 31% are Aquaculture coastal fishermen and represent almost 60% of all registered fishermen living in Mukim Serkat. Using mainly trammel nets and long lines, their main fishery catch is of commercially valuable fishes such as groupers, red snappers and mackerel. The busiest landing point according to the fishermen respondents is at Parit Penghulu on the west coastline of Mukim Serkat. Aquaculture activities are also undertaken at Pulau Kukup, a site located approximately 10 km from the proposed project area. The major system practiced is brackish water cage culture. The present state of the fishery showed that 89.3% of respondents claimed a decreased in their catch yield with the presence of two major industrial projects in the area. This has increased the negative perception to the proposed project due to the worry that the project may affect their fish catch and income. However, when presented with the option to change occupation, an equal distribution of fishermen are willing and those unwilling are mostly in the older age group and or unskilled.

Tourism Tourism sites within 10 km of the study area are Tg. Piai National Park (Ramsar Site) and the Tg. Piai Resort.

Public Health Health Indicator Data Almost all the people in Johor have been supplied a safe drinking water supply via piped water to their home. Pontian District has 100% electricity supply. Johor has good coverage of aseptic latrines. The majority of houses in Johor dispose of domestic waste by burying under soil, followed by municipal collection system, open burning and open space dumping. Thus, the risk of surface soil and water contamination within the study area is high. Health issues Pontian District is affected in small percentages (<23%) by many different types of illnesses; ranging from airborne diseases, vector borne diseases, food waterborne diseases, sexually transmitted diseases and other communicable diseases. Social wellbeing The nearest healthcare facilities to the project site is the Serkat Health Clinic and Pontian District Hospital. Six schools are located within accessible limit within the study area.

Public Perception From the views of a total of 230 respondents from within the study area over the five days of the social survey campaign carried out in September 2013 it was found that 49.1% supported the project due to the potential creation of job opportunities both during construction and operational phases, improvement of facilities and infrastructure development. A total of 42.2% did not support the project as a result of past experience of the negative impacts from previous development

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projects, such as the Tg. Bin Power Plant and Tg. Pelepas Port. A small percentage of 8.7% of the respondents were unsure or do not have any comments. A summary of public perception issues and weightings is given in Figure 5.

Figure 5 Public perception of the potential impacts from the proposed project

Marine Traffic and The Project is located in Port of Tanjung Pelepas (PTP) Port Limit to Navigation the south west of the existing PTP container berths and had 4,793 shipping movements in 2013. The closest adjacent ports are Kukup and Johor Bahru, which mainly handle ferry traffic and some STS operations respectively. The other major port close to the project is the port of Singapore. The Project is also immediately north of the westbound lane of the IMO navigation traffic separation scheme (TSS) for the Straits of Malacca which has some 78,000 shipping movements a year.

5.4 Committed Developments in the vicinity of the Project

There are several development projects within the study area which have been approved by either state or federal authorities. These developments are either under construction stage, operation stage or will be constructed in near future and include:

 Tg. Piai Coastal Protection structures  PTP Phase 3 Expansion  Asian Petroleum Hub

Their locations are shown in Figure 6

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Figure 6 Location of key committed developments in the vicinity of the proposed Project

5.5 Environmental Sensitive Receptors (ESR)

The main sensitive areas within a 5 km radius of the project site includes Tg. Piai National Park, Sg. Pulai Forest Reserve, mangroves including those in listed Ramsar area, intertidal mudflats of Tg. Piai and seagrass meadows off the Port of Tg. Pelepas and in the Sg. Pulai estuary.

The main sensitive areas at a range of 5 km up to 10 km around the project site are the Important Bird Area (IBA), the Ramsar Site and National Park at P. KukuPl, patches of corals around P. Merambong, and the Tg. Piai Ramsar site. The location of all identified ESRs are shown in Figure 7.

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Figure 7 Summary of identified sensitive receptors within 10 km of project.

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6 Impact Assessment, Mitigation Measures and Residual Impacts

The assessed impacts and recommended mitigation measures are summarised in Table 4 to Table 6 for the Physical Environment, Biological Environment and Human Environment respectively. Residual impacts are also indicated in this table, representing the expected impact significance or severity after all recommended mitigation measures has been implemented.

In addition, a summary of the overall impacts is presented based on the results of the Rapid Impact Assessment Matrix (RIAM) in Figure 8 and Figure 9 below. The RIAM results illustrate the culmination of the quantitative assessment of the physical impacts and semi- quantitative and qualitative assessment of biological and socio-economic impacts documented in this DEIA. These graphs show the number of issues or components that fall within each impact significance category, ranging from Major positive or negative impacts (+/- E) through to Slight positive or negative impacts (+/- A), or No changes (“N”).

The RIAM analysis presented in this section summarises the impacts over the project life- cycle (i.e. including construction and operational stages) both without mitigation (Figure 8) and with mitigation (residual impacts, Figure 9). The results show that, with mitigation, a significant number of negative impacts can be reduced to “No change” while the major negative impacts (-E and –D) are also minimised to Moderate (-C) or lower significance.

Figure 8 RIAM results for the overall project development – without mitigation.

Figure 9 RIAM results for the overall project development – residual impacts (with mitigation).

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Table 4 Summary of the impact assessment, mitigation measures and residual impact – Physical Environment

Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Sediment Plume Phase 1 Minor  Pre-bunding of Reclamation Slight Negative Negative  Silt curtain for shallow waters (e.g. mudflats) Impact  Will not reach the sensitive coral Impact habitat at Pulau Merambong and seagrass area at Sg. mouth or Tg. Adang areas.  The mangrove stretch along the east coast of Tg. Piai which is gazetted as Ramsar site is expected to be exposed to TSS concentrations of more than 25 mg/l for less than 5% of time.  No cross-boundary impacts are predicted

Phase 2 Significant  Scheduled Production Rate, considering the tidal and Slight Negative Negative seasonal flow to minimise sediment dispersal Impact  Excess suspended sediment of 5 mg/l Impact  Pre-bunding of Reclamation is expected to cross the Indonesia and Singapore international boundaries for  Spill budget control 5% to 25% of time.  Silt curtain for shallow waters (e.g. mudflats)  Impacts on group of islands and Ramsar sites (Pulau Kukup and Tg. Piai) are anticipated from exposure to 5 mg/l – 10 mg/l of excess suspended sediment concentrations.  Will not reach the seagrass and coral habitat.

Phase 3 Slight  Pre-bunding of Reclamation Slight Negative Negative  Silt curtain for shallow waters (e.g. mudflats) Impact  5 mg/l to 10 mg/l in excess suspended Impact sediment concentrations is expected to reach the Tg. Piai Ramsar Site for a short period of time  Will not reach the seagrass and coral habitat.

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Coastal morphology Some siltation will occur in the dredging/ Slight Control the sediment spill and dispersion during dredging Slight Negative reclamation area and also in the navigation Negative and reclamation Impact channel (during construction of Phase 2) Impact

Currents Potential current speed increase along Moderate  Drainage channel to reduce current speed Slight Negative western side of reclamation. Erosion could negative  Coastal structures to train current flows Impact occur and affect mudflats and mangroves. impact

Water Levels Change in water levels due to reclamation No change No mitigation measures required No Change footprint

Tidal prism Changes due to development are below No change No mitigation measures required No Change 1% of the existing tidal prism.

Waves Regional wave impacts due to project No change No mitigation measures required No Change footprint

Eastern coastline of Tg. Piai (adjacent to Minor positive No mitigation measures required Minor Positive project site) impact Impact

Wastewater Untreated discharge of sewage from Slight Provide temporary toilets with septic tanks and/or portable Slight Negative workers' onsite quarters could affect negative toilets, and periodically desludged. Impact hygienic water quality and cause impact eutrophication during the construction stage

Flushing Minor changes in the flushing capacity No change No mitigation measures required No Change predicted due to the project footprint

Salinity Changes in ambient salinity due to the Negative No mitigation measures required No Change project footprint and consequent changes impact in hydrodynamics

Ambient TSS during Change in ambient TSS levels due to the Slight Mitigation measures related to reduction of sediment plume Slight Negative Operations project footprint and consequent changes negative must be taken Impact in hydrodynamics. impact

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Thermal Plume during The pattern of the existing thermal plume Moderate Phase 3 reclamation is not carried out until the PTP Phase 3 Moderate operations from the Tg. Bin Power Plant may change negative expansion has been constructed to reduce the temperature Significant due to the project footprint and consequent impact increase Impact changes in hydrodynamics. The average increase in temperature is not significant except for a slight increase in Phase 3

Oil Spill Tanker collision at the Phase 2 berths Major  Emergency Response Plan Moderate releasing heavy oil is expected to produce negative negative impact the most acute impact. It may reach impact  A contingency plan to contain potential oil spill prepared eastern Muar coastline and international based on National Oil Spill Contingency Plan (NOSPC) Indonesia and Singapore boundaries. and floating booms to contain a local spill Three (3) Ramsar sites, coral and  The recommended target reaction time to contain an oil seagrass habitat will be affected within 6 spill is less than 60 minutes for oil spill during a tanker hours. collision and less than 30 minutes for a loading arm failure in particular to avoid oil contamination of the mangroves along Tg. Piai and in Sg. Pulai.

Ship Ballast Water Contaminant release may result in impacts Moderate Adherence to Ballast Water and Sediments Management Moderate of high significance if they affect the negative Plan (in compliance with IMO) negative impact fisheries in the area through toxic blooming impact species or diseases.

Routine Discharges Storm water could result in hydrocarbon Negative Scheduled release of storm water, retention ponds with oil Negative pollution due to minor spills and leaks from impact separation facility, and proper sewage plant impact tanks. Wastewater streams for 2,500 workers on-site is equipped with sewage treatment tank.

Blockage of Rivers Short term blockage of the streams Slight  That any temporary bunds or other construction areas No change discharging on the eastern shoreline of Tg. negative do not impact the discharge points of the streams on the Piai. impact eastern shoreline of Tg. Piai.  That the new drainage channel on the western side of the reclamation is constructed concurrently with the reclamation works.

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Impacts to Sg Pulai No significant changes in water levels, No change No mitigation measures required No change river flow, or tidal prism.

Streams Discharging No significant change in high water levels No change No mitigation measures required No change on the eastern Tg. Piai during extreme river flows from the five streams that discharge due to reclamation works.

Air Quality Spread of airborne dusts and emissions to Slight Establish hoarding along the site boundary to minimise the Slight negative the nearby sensitive receptors due to negative spread of flying dust to the surroundings, and all other impact construction activities impact preventive measure to minimise the emission of gas from construction vehicles and machineries

Emissions from the terminal during Slight Maintain the boilers to avoid any abnormal emissions as well Slight negative operations negative as conduct periodic stack monitoring at the stack outlets with impact impact periodic monitoring

Noise Noise impacts due to construction Slight Working schedule limited to daytime, and reduce noise from Slight negative negative construction vehicles and machineries impact impact

Operational noise from the terminal and Slight Regular maintenance of plant operation, wall fencing, Slight negative traffic. negative vegetation strip as noise attenuation impact impact

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Table 5 Summary of the impact assessment, mitigation measures and residual impact – Biological Environment

Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Terrestrial Ecology Construction noise, visual disturbance. Slight  Natural relocation of mobilise species Slight negative negative  No fencing impact impact  Implementation of management strategies  Waste management  Education and training  Same as noise and air impact mitigation measures

Operational noise, lighting and air pollution Slight  Waste management Slight negative negative  Same as noise and air impact mitigation measures impact impact

Mangrove Short term effects due to sedimentation No change Mitigation same as release and dispersion of suspended No Change from dredging and reclamation works. sediments impact.

Permanent conversion of mangroves due Moderate Rehabilitation and replanting works Moderate to construction of the bridge from project to negative positive impact mainland. Affected area of 0.8 acres of impact mangrove.

Long-term morphological impacts (erosion No change Development of coastal structures Significant and sedimentation) due to the project positive impact footprint

Oil spill impacts due to collision or loading Significant Mitigation measure same as water quality impact for Moderate arm failure during operations negative operation negative impact impact

Avifauna Avifaunal community within the project Moderate  Restriction in noise level Minor negative area (especially the mangrove fronting the negative  Construction activities during day time impact

project area) may become disturbed by the impact  Noise emission activities confined to during non- project activities, which may then cause migratory season them to fly away to other areas completely  No removal or disturbance of mangroves between Tg. Piai and Tg. Bin  Avifauna monitoring

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Increased disturbance due to noise and Negative  Vegetation belt along western boundary of the Not applicable light causes birds to change foraging sites impact reclamation site to the adjacent unaffected habitats  Minimise usage of lighting equipment  Lighting spread to be directed away from shoreline

 Rehabilitation of mangrove areas same as mangrove Not applicable Tg. Piai to Tg. Bin will be impacted, loss of Moderate impact habitat affects the Lesser Adjutant, a negative  Birds found within project area not to be disturbed species of high conservation concern impact during migratory season

Macrobenthos Suspended sediment may be detrimental Slight Same as water quality impact Not applicable and reduces abundance of certain negative crustaceans during construction impact

Impact of sedimentation to macrobenthic No Change No mitigation required Not applicable fauna during construction

Temporary habitat loss due to dredging Minor No mitigation required Not applicable works negative impact

Habitat loss and modification due to project Minor  No specific measures required Not applicable footprint negative  Same as coastal hydraulic measures for operation impact phase

Thermal plume dispersion impact during No Change  To be developed at Phase 3 and only after PTP Phase Not applicable operation 3 expansion  Same as water quality measures for operation

Salinity fluctuations impact during No specific measures required Not applicable operation No Change

Significant  No specific measures required Slight negative negative  Same as water quality measures for operation impact Oil spills impact during operation impact

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Plankton Sediment plume impact during construction Minor  No specific measures required Slight negative negative  Same as water quality measures on control of impact impact suspended sediments

Thermal plume impacts during operation Minor  To be developed at Phase 3 and only after PTP Phase No Change negative 3 expansion impact  Same as water quality measures for operation

Oil spill during operation Moderate  No specific measures required Slight negative negative  Same as water quality measures for operation impact impact

Fish Fauna Impact of suspended sediments to habitat Slight  No specific measures required Not applicable during construction negative  Same as water quality measures for construction impact

Underwater noise impact due to Minor No specific measures required Not applicable construction activities negative impact

Impact of fluctuations of temperature and Minor No specific measures required No Change salinity to fish fauna during operational negative impact

Oil spill impact to marine environment Moderate  No specific measures required Slight negative during operation negative  Same as water quality measures for operation impact impact

Marine Megafauna Impact of suspended sediment plumes due Minor Same as water quality in control of suspended sediment Minor negative to construction works negative plumes impact impact

Underwater noise impact due to Minor Establishment of exclusion zones

construction activities negative impact

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Boat strike impact due to increase marine Minor  Reduce travelling speeds of vessels and boats traffic during constructions negative  Regular observation and inspections impact  ERP

Loss of foraging habitats due to project Minor  Reduce travelling speeds of vessels and boats No Change footprint negative  Regular observation and inspections impact

Oil spill accidents during operation Minor Oil Spill Prevention and Response Plan negative impact

Boat strike due to increase marine traffic Minor  Reduce travelling speeds of vessels and boats during operation negative  Regular observation and inspections impact  ERP

Seagrass Suspended sediment plumes due to No Change  No specific measures required No change construction works  Same as water quality measures for construction

Impact of change in water temperature Minor  No specific measures required No Change during operation negative  Same as water quality measures for operation impact

Impact of change in salinity during No change operation No Change

Moderate Slight negative negative impact Impact of oil spill during operation change

Coral Suspended sediment impact to corals of P. No Change No specific measures required No Change Merambong due to construction works

Impact of change in water temperature No Change  No specific measures required No Change during operation  Same as water quality measures for operation

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Impact of change in salinity during No Change No Change operation

Impact of oil spill during operation Moderate Slight negative negative impact impact

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Table 6 Summary of the impact assessment, mitigation measures and residual impact – Human Environment

Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Socio-economic Impact to indigenous group of Orang Asli Moderate  Aquaculture entrepreneurship including professional Slight Positive Seletar during construction Negative training and output and aquaculture ventures Impact  Joint venture with other fishing industry  Artificial reefs deployment

Increased job opportunities during Negative  Funding for skills development Slight Positive construction Impact  Provide training specifically for the project need Impact  Provide training in reclamation industry

Increased business opportunities during Slight Provide training for local entrepreneurs Slight Positive construction Positive Impact

Impact

 Negotiation with Tg. Piai Resort Impact on local tourism industry during Negative Slight Negative construction Impact  Agro-Tourism in Tg. Piai Impact  Buffer zone for Tg. Piai National Park

Influx of foreign workers during Slight Development of facilities and accommodation No Change construction Negative Impact

Airborne dust nuisance during construction Slight  Standard operating procedures to be implemented Slight Negative Negative  Health monitoring Impact Impact

Increased job opportunities during Slight  Funding for skills development Slight Positive operation Negative  Provide training specifically for the project need Impact Impact  Provide equal opportunities

Increased business opportunities during Slight Provide training for local entrepreneurs Slight Positive operational phase Negative Impact Impact

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Transformation of rural community and its Significant - Significant economy to urban community during Positive Positive Impact operation Impact

Increased population due to operation Slight Development of facilities and accommodation Slight Negative Negative Impact Impact

Deterioration of surrounding environment Slight Collaboration with major industries to rehabilitate, conserve No Change due operational phase Negative and protect the degraded Sg. Pulai Ramsar site Impact

Increased land traffic during operation Slight  Installation of signal control (traffic light) No Change Negative  Installation of road signage Impact

Aesthetic impact due to project presence Significant  Green belt of trees to be planted along the south - Negative eastern of plant perimeter. Impact  Painting of tanks to reduce visual impact

Health Impact Health issues in association with Negative  Clean and safe water supply Negative Impact construction activities Impact  Presence of temporary toilets

 Rubbish bins or containers for solid waste collection  Social well-being

Social well-being issues in association to Negative Same as noise and air impact Negative Impact operational of the plant Impact

Land traffic Increased land traffic during construction Negative  Enhance accessibility/traffic flow Negative Impact works Impact  Upgrade of roadway performance

 Upgrade of junction performance

Increase land traffic and existing land traffic No Change Installation of signal control (traffic light) Slight Positive facilities during operation Impact

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Marine traffic and Increased marine traffic due to construction Slight  Adherence to Rules, Regulations, Guidelines and other Slight Negative navigation works Negative requirements Impact Impact  Enforcement of standard operating procedures

 Licensed PTP pilots to be utilised  Provide suitable marker buoys  Regular dialogue with local fishermen

Existing navigation aids during construction Significant Enhancing performance of existing navigation aids No Change phase Negative Impact

Marine traffic and Change in current patterns during No Change No mitigation measures required No Change navigation operation

Increased shipping traffic during operation Negative  Implementation of Standard Operating Procedure Negative Impact Impact (SOP)  Implementation of central port traffic control system  Utilised licensed PTP pilots  Inspection of vessels  In-house operational training an safety drills  Regular dialogue sessions with local fishermen

Navigation safety to project jetties during Slight  Implementation of Full Mission Ship Simulations No Change operation Negative (FMSS) Impact  Implementation of Standard Operating Procedure (SOP)  Installation of squall warning system  Real time monitoring of currents and winds  Optimising the final design of jetty structures

Quantitative Risk Predicted risk of the operation of the plant Slight  Further actions to manage risk included ERP, Slight Negative to the surrounding area Negative engineering design, etc. Impact Impact  Procedural in operation  Maintenance  Fire-fighting system

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Issue Impacts Significance Summary of Mitigation Measures Residual (without Impact mitigation) Significance

Landuse Compatibility Landuse compatibility of the plant to area Moderate No mitigation measures required Moderate Positive Positive

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Executive Summary

7 Economic Valuation of Environmental Impacts

An economic valuation was undertaken of the environmental impacts with the objective of assessing the impacts of the proposed project on the flow of environmental services.

At a 2% discount rate, the present value of the net environmental loss amounts to RM316.7 million. The corresponding values for 6% and 10% rates are RM155.5 million and RM95.5 million respectively.

It is clear from results of the evaluation exercise that a significant amount of environmental service loss is to be expected following project implementation. If so desired by the authority, some of the losses could be offset by compensating environmental enhancements elsewhere, the monetary quantum of which may be based on the computed values.

8 Environmental Management Plan

The EMP as outlined is prepared as a preliminary EMP specification. The final EMP will be prepared at the conclusion of the DEIA process and upon contract award, so that:

(i) comments on the DEIA as part of the public notification and DOE panel review stages can be taken into account; and

(ii) monitoring and management plans can be updated with respect to:

- Reclamation detailed design - Final construction sequence and time schedule - Final construction methodology (equipment).

The EMP is structured to address the major activities associated with each phase of the project development, comprising (i) the construction phase; and (ii) the post-construction / operational phase. The main components of the EMPs for each phase are summarised below:

8.1 Management of Construction (Reclamation and Dredging)

8.1.1 Overall Monitoring and Management Strategy A feedback monitoring strategy will be utilised for the Environmental Management Plan (EMP) of the dredging works. Given that the magnitude of predicted impacts of the reclamation activity alone are much less than with the dredging (Phase 2), the full feedback monitoring programme including online measurements and modelling are not proposed for the reclamation activity (Phases 1 and 3). The main elements of Feedback Monitoring are:

 Control measurements (suspended sediments and turbidity) targeted at the spill from the dredger/reclamation.  Sediment plume models (numerical models) are used to keep a running balance of cumulative impact levels based on actual production and measured spill. Action can then be taken in advance of any negative impacts occurring in the field.  The sediment plume model also includes a current forecast model, such that any intermediate construction stage impacts can be assessed.

The models give a spatial picture at all receptor sites not just the locations where instrumentation is deployed, as is the case for traditional monitoring methods. Coverage is

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thus more rigorous. The use of spill measurements and modelling allows the monitoring and management system to be responsive to changes in conditions (e.g. seasonal effects) and work schedules.

8.1.2 Environmental Management Plans The key environmental management issues that will be addressed by the EMP for Construction (reclamation and dredging) Phase are summarised in Table 7.

Table 7 EMP topics during construction (dredging and reclamation) phase

Management Issue Scope

Suspended sediment Generation and excursion of sediment plumes during reclamation and plume dredging works.

Ambient water quality Monitoring of water condition in the area

Coastal bathymetric Monitoring of erosion and sedimentation profile

Ecological impacts Monitoring of plankton

Monitoring of macrobenthos

Monitoring of fish fauna

Monitoring of mangrove

Monitoring of seagrass beds

Monitoring of coral reef

Air quality Monitoring and management of air during construction phase

Ambient noise level Monitoring and management of noise during construction phase

Social impact Monitoring of socioeconomic and other unforeseen problems emerging following construction start.

Fisheries and Monitoring fishing activities and fish cage culture farming operations at P. aquaculture Kukup

A summary of the monitoring requirements during the construction (dredging and reclamation) phase is given in Table 8.

Table 8 Summary of environmental monitoring and management program during construction

Monitoring Station Parameter to be Frequency during component Tested/Observed/Measured Construction

Water Quality

Maintenance of Along bunds, silt Inspection and maintenance Weekly and after control structures curtains, sedimentation storm events pond outlets

Total suspended 2 stations at overflow TSS Daily sediment outlet and within 200m of outlet

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Monitoring Station Parameter to be Frequency during component Tested/Observed/Measured Construction

6 stations Turbidity Daily

TSS Weekly

Sediment plume Surface mapping of Turbidity Weekly dispersion plume movement

General water 10 marine stations and Physical, heavy metals, Monthly quality 2 river mouth stations organic, microbial

Coastal Profile

Erosion/sediment 15 coastal transect Bathymetric profile Once before ation from shore to -5 m CD construction starts contour

Quarterly

Biannually upon completion of Phase 1 construction

Ecological Impacts

Plankton 10 stations Phytoplankton and zooplankton Quarterly

Macrobenthos 14 stations with 3  Benthic abundance and Quarterly replicates diversity  Sediment grain size analysis  TOC analysis

Fish Fauna 6 stations Fish abundance and diversity Quarterly

Mangrove 11 stations along Tg. Growth rate/survival of 100 Quarterly Piai shoreline young trees

3 permanent poles at Sedimentation level 11 stations

11 stations with 3 Grain size analysis replicate

Seagrass 15 stations  Seagrass mapping Monthly during  Shoot density reclamation and

 Species diversity dredging phase  % cover of substrate Quarterly during construction phase

Coral reef 4 stations Coral quality Quarterly

Air Quality

Ambient air 4 stations TSP, PM10, SOx, NOx, CO Quarterly quality

Ambient Noise Level

Ambient noise 4 stations Leq, Lmax, L90, L10 Quarterly

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Monitoring Station Parameter to be Frequency during component Tested/Observed/Measured Construction level

Social Impact

Community 3 suggestion / Collection of suggestion or Once before consultation complaint centres at opinions on the construction construction different area activities from the local communities Quarterly

Once after completion of each Villages along Tg. Piai Interview/ Questionnaires phase shoreline, villages with fishing community, villages that experience disruption to access of facilities or everyday activity

Fisheries and Aquaculture

Fisheries activities 3 sample sets of Volume and species diversity Once before and fish cage interviews/ consultation construction culture farming with fishermen and operations at P. cage culture operators Monthly for first 12 Kukup months

Quarterly

8.2 Management of Post-Construction / Operational

Following the completion of construction works including reclamation and dredging activities as well as marine and onshore facilities, summary of the environmental monitoring and management requirements for post-construction or operational phase of the development is given in Table 9.

Table 9 Summary of monitoring programmes for post-construction / operational

Monitoring Station Parameter to be Frequency during component Tested/Observed/Measured Construction

Water Quality

General water 6 marine stations with 2 Temperature, pH value, DO, Quarterly from quality replicates Salinity, Turbidity, TSS, COD, completion of the O&G, TPH, Benzene, Toluene, reclamation up to 1 Ethylbenzene, Xylene, Total year after the VOC commissioning of Phase 1

2 river mouth stations Temperature, Salinity, DO, Annually and 3 channel stations BOD, O&G, NO3N, NH4N, with 2 replicates PO4P, Chlorophyll-a, Faecal coliform

Coastal Profile

Erosion/sediment 15 coastal transect Bathymetric profile Once after ation from shore to -5 m CD completion of

36 62800607-RPT-05 Executive Summary

Monitoring Station Parameter to be Frequency during component Tested/Observed/Measured Construction contour construction phase

Ecological Impacts

Plankton 10 stations Phytoplankton and zooplankton Biannually

Macrobenthos 14 stations with 3  Benthic abundance and Biannually after replicates diversity completion of  Sediment grain size construction of analysis Phase 1  TOC analysis

Fish Fauna 6 stations Fish abundance and diversity Biannually

Mangrove 11 stations along Tg. Growth rate/survival of 100 Biannually Piai shoreline young trees

3 permanent poles at Sedimentation level 11 stations

11 stations with 3 Grain size analysis replicate

Seagrass 15 stations  Seagrass mapping Biannually  Shoot density

 Species diversity  % cover of substrate

Coral reef 4 stations Coral quality Biannually

Air Quality

Ambient air 4 stations TSP, PM10, SOx, NOx, CO Biannually quality

Operation Boiler stack Quarterly emissions

Ambient Noise Level

Ambient noise 4 stations Leq, Lmax, L90, L10 Biannually level

Social Impact

Community 3 suggestion / Collection of suggestion or Once after start of consultation complaint centres at opinions on the construction operation different area activities from the local communities

Villages along Tg. Piai Interview / Questionnaires shoreline, villages with fishing community, villages that experience disruption to access of facilities or everyday activity

Fisheries and Aquaculture

Fisheries activities 3 sample sets of Volume and species diversity Biannually and fish cage interviews/ consultation culture farming with fishermen and operations at P.

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Monitoring Station Parameter to be Frequency during component Tested/Observed/Measured Construction Kukup cage culture operators

9 Emergency Response Plan

An Emergency Response Plan (ERP) will be established for both construction and operational stages. The operational stage ERP shall cover both the Terminal and marine facilities. The ERP shall address at least the following:

 Marine collision in terminal  Oil Pollution Emergency Plan  Fire on the vessel(s) or on terminal.

10 Summary and Conclusions

The location of this project places it in close juxtaposition to a number of environmentally sensitive areas of which the most notable are the internationally recognised Ramsar mangrove wetlands along the adjacent coastline which are also National Parks or Forrest reserves, seagrass and coral reef habitats to the north and north east, and the nearby rural communities.

The nature of the reclamation is such that it will lead to an irreversible change in the area to be developed. The original physical, biological resources and productivity within the project footprint will be lost permanently and this not only represents a loss of habitat but also an import fishery resource critical to local communities.

In addition, the reclamation footprint may also introduce some changes in the associated hydrodynamics and sedimentation processes that may further impact the coastline. The coastline adjacent the project is actively eroding and this is leading to the destruction the mangroves at the seaward fringe within the Ramsar wetlands. It is concluded, however, that the reclamation to create the Park will diminish, if not reverse, this erosional process and facilitate the restoration of the mangrove habitat.

Most of the residual impacts which remain of moderate significance are socioeconomic impacts due to the loss of fishing grounds, the need to use imported labour and the economic transformation of the region from a rural (agriculture and fishing) to an urban and industrial economy. Although the impacts to these directly affected group of stakeholders is potentially high, given the predominantly positive response of the local inhabitants and fishermen to possible compensatory mitigation measures, the overall socio-economic impacts are assessed as of moderate significance. In addition, the Project will result in a number of strong positive impacts that will benefit the government and people of Johor on a broader scale.

In conclusion, the DEIA study has found that, with the incorporation of the recommended mitigation measures and implementation of an Environmental Management Plan, and an associated Corporate Social Responsibility program the Project can be implemented with acceptable environmental impacts and risk.

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