Environmental Assessment Report July 2011 Bangladesh: Power System Efficiency Improvement Project Prepared by the Ministry of Power, Energy and Mineral Resources for the Asian Development Bank (ADB). The environmental assessment report 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. CURRENCY EQUIVALENTS (as of 3 June 2011) Currency Unit - India rupee/s (INR) Rupee 1.00 = $0.02243 $1.00 = Rs44.59 ABBREVIATIONS ADB - Asian Development Bank APSCL - Ashuganj Power Station Company Ltd BAN - Bangladesh BELI - Bangladesh Efficient Lighting Initiative BERC - Bangladesh Energy Regulatory Commission BIDS - Bangladesh Institute of Development Studies BIWTA - Bangladesh Inland Water Transport Authority BNBC - Bangladesh National Building Code BPDB - Bangladesh Power Development Board CAPE - convective available potential energy CCPP - combined-cycle power plant CDM - clean development mechanism CFL - compact fluorescent lamp CNG - compressed natural gas CTG - Chittagong DoE - Department of Environment DPDC - Dhaka Power Distribution Company EA - Executing Agency ECR - Environment Conservation Rules EGCB - Electricity Generation Company of Bangladesh EIA - environmental impact assessment EMP - environmental management plan EMRD - Energy and Mineral Resource Division EPC - Engineering Procurement Construction Contractor ETP - effluent treatment plant FGD - focus group discussion GoB - Government of Bangladesh HRSG - heat recovery steam generator HSE - health, safety, and environment IDCOL - Infrastructure Development Company Ltd IEE - initial environmental examination NGO - non-government organisation NEMAP - National Environmental Management Action Plan NOx - oxides of nitrogen O&M - operations and maintenance Petrobangla - Bangladesh Oil, Gas & Mineral Corporation PGCB - Power Grid Company of Bangladesh PIC - project implementation consultant PPTA - project preparatory technical assistance i PV - photovoltaic RoW - right-of-way RPGCL - Rupantarita Prakritik Gas Company Limited SOx - oxides of sulphur SPM - suspended particulate matter TOR - terms of reference TA - technical assistance WWTP - wastewater treatment plant WEIGHTS AND MEASURES cm - centimeter GWh - gigawatt hour ha - hectare km - kilometer kV - kilovolt (1,000 volts) kWh - kilowatt hours m - meter MVA - megavolt-ampere MW - megawatt mm - millimeter C - degree Celsius ii TABLE OF CONTENTS EXECUTIVE SUMMARY ....................................................................................................... 1 1.0 Introduction ................................................................................................................... 1 2.0 Description of the Project .............................................................................................. 2 3.0 Description of the Environment ..................................................................................... 2 4.0 Anticipated Environmental Impacts and Mitigation Measures ........................................ 4 5.0 Analysis of Alternatives ................................................................................................. 7 6.0 Information Disclosure, Consultation, and Participation ................................................ 7 7.0 Grievance Redress Mechanism .................................................................................... 9 8.0 Environmental Management Plan ................................................................................. 9 9.0 Conclusion and Recommendation .............................................................................. 10 10.0 Structure of the Report ................................................................................................ 11 B. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ....................................... 12 B.1 Environment-related of ADB Policies in Bangladesh ................................................... 12 B.2 The Bangladesh EIA Process ..................................................................................... 15 B.3 List of International Treaties and Conventions Signed by Bangladesh ........................ 16 B.4 The Environmental Requirements of ADB ................................................................... 19 C. DESCRIPTION OF THE PROJECT ............................................................................ 21 C.1 Project Type ................................................................................................................ 21 C.2 Project Details – 450 MW Ashuganj Combined-Cycle Power Plant ............................. 22 D. DESCRIPTION OF THE ENVIRONMENT .................................................................. 37 D.1 General ....................................................................................................................... 37 D.2 Project Influence Area ................................................................................................. 37 D.3 Physical Environment ................................................................................................. 39 D.4 Ecological Baseline ..................................................................................................... 46 D.5 Socioeconomic Environment ....................................................................................... 50 E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ........ 56 E.1 Environmental Impacts Identification ........................................................................... 56 E.2 Evaluation and Mitigation of Impacts ........................................................................... 57 F. ANALYSIS OF ALTERNATIVES ................................................................................ 65 F.1 Do Nothing or Without Project Alternative ................................................................... 65 F.2 Type of Fuel ................................................................................................................ 65 F.3 Alternative Sites .......................................................................................................... 66 F.4 Power Plant Configuration .......................................................................................... 67 G. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION .............. 68 G.1 Overview of Public Consultation Process .................................................................... 68 iii G.2 Information Dissemination Process ............................................................................. 68 G.3 Key Stakeholder`s View .............................................................................................. 69 G.4 Details of Consultation Meeting and Discussion .......................................................... 69 H. GRIEVANCE REDRESS MECHANISM ...................................................................... 75 I. ENVIRONMENTAL MANAGEMENT PLAN ............................................................... 76 I.1 Objective ..................................................................................................................... 76 I.2 Mitigation Measures .................................................................................................... 76 I.3 Specific Management Plan ......................................................................................... 84 I.4 Institutional Arrangement and Environmental Monitoring Plan .................................... 91 J. CONCLUSION AND RECOMMENDATION .............................................................. 102 K. PART B PROJECT COMPONENTS - INITIAL ENVIRONMENTAL EXAMINATION 103 I. Kaptai 5 MW Solar Power Subproject ....................................................................... 121 II. Hatiya 2 MW Solar PV-Wind Hybrid System ............................................................. 123 III. 1000-km Solar PV and LED System of Streetlighting for Cities ................................. 143 iv LIST OF TABLES A. 450 MW Ashuganj Combined-Cycle Power Plant Table B.1 Environment-Realted Laws in Bangladesh 14 Table B.2 List of International Treaties and Conventions Signed by Bangladesh 18 Table C.1 Water Abstraction for Cooling Purpose within the APSCL Complex 30 Table C.2 Composition of Natural Gas 33 Table C.3 Project Cost Estimates 38 Table D.1 Maximum and Minimum Flow at the Meghna River (m3/s) 45 Table D.2 Water Quality Data for Meghna River 45 Table D.3 Water Quality of the Meghna River - Surface Water Quality Test Report 46 Table D.4 Ambient Air Quality Test Report 48 Table D.5 Ambient Noise Quality Analysis 49 Table D.6 Ambient Noise Quality Standards 49 Table D.7 Fish Species in the Meghna River and in Ponds 52 Table D.8 Population and demographic characteristics surrounding the project area (Zila, Upazilas and Paurashavas) 54 Table D.9 Population and Demographic Characteristics surrounding the Project Area Unions of Ashuganj and Bhairab Upazila 55 Table D.10 Population and Demographic Characteristics surrounding the Project Area Pourashava Unions of Bhairab Upazila 55 Table D.11 Population of the Project Upazila 55 Table D.12 Type of Religion of the Sample households Bhairab Upazila 56 Table D.13 Land Holdings and Ownership of Land at Ashuganj Upazila 56 Table D.14 Cooking Fuel 58 Table D.15 Rate of Literacy for Male and Female 58 Table D.16 Electricity Facility 58 Table E.1 Ground level NOx Concentration at Various Distances