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(ESIA) INO: Eastern Indonesia Renewable Energy Project

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(ESIA) INO: Eastern Indonesia Renewable Energy Project Draft Environmental and Social Impact Assessment Report (ESIA) Project No.: 51209-001 October 2017 INO: Eastern Indonesia Renewable Energy Project Prepared by ESC for PT Energi Bayu Jeneponto (EBK) (Republic of Indonesia) The environmental and social impact assessment is a document of the project sponsor. The views expressed herein do not necessarily represent those of ADB’s Board of Director, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this 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 or any territory or area. Tolo I Wind Farm Environmental and Social Impact Assessment (ESIA) 17.10 1-1 2017 EXECUTIVE SUMMARY Some 39 million Indonesians still lack access to electricity, especially those in rural areas, a number predicted to increase with population growth. The Indonesian National Electricity Forecast predicts electricity demand increase of about 10% annually; at present, slightly over 36 Gigawatts of capacity exists, targeted to increase to 115 GW in 2025. The planned energy mix includes 25% renewable energy; The Government of Indonesia is committed to reduce 26% of greenhouse gas emissions (GHG) by prioritizing renewable energy as outlined in the National Action Plan for Reduction of GHG. Wind power produces little to no GHG emissions in operation; wind energy is renewable, clean, consumes no water, and uses little land. Net effects on the environment are far less problematic than use of fossil-fuel power sources. Equis Asia Fund II, through its Indonesian platform PT Redaya Energi Indonesia (REI) and PT Energi Bayu Jeneponto (EBJ) (together, Equis), has signed a Power Purchase Agreement with National electric utility PT PLN (Persero) to develop the Tolo Wind Farm Project in Jeneponto, “outh “ulaesi, ith ojeties of otiutig to the GoIs apait goth poga producing 72 MW of wind energy, also helping achieve the renewable energy target and supporting the Sulawesi electrical grid, and thus contributing to development of the regional economy. Euis is oe of Asias lagest eeale eeg deelopes ad iestos ith . GW of renewable generation assets financed across Asia and some US$2.6 billion in equity raised. Equis has been a UN Principles for Responsible Investment (UNPRI) signatory since 2014. The Project is considered Category B, as it entails limited environmental/social impacts, applies world-class engineering and proven technology, and adopts good international practices, including IFC Performance Standards and EHS Guidelines. The Tolo I Project covers an area of approximately 50 hectares at the southern end of the Island of Sulawesi (turbine and transmission tower, building, and infrastructure foot prints). The Project includes 20 turbines (hub height 135m with 63.5m rotors blades), with tower hardstands sites of about 0.63 ha each, 14 km of roads, a Pooling Substation, O & M facilities, a 33 kV underground collector system connecting the turbines, and 150 kV, 3.5 km overhead transmission line to the PLN Jeneponto substation. The planning phase for Tolo I (design, engineering, and site preparation) is expected to be completed by Q1 2017, followed by 15-18 months of construction (early works followed by 12 months post-NTP), with 3-6 months for commissioning. Construction will employ a maximum of 180 workers. Wind energy production is targeted to commence in Q2 2018, with a very small onsite operational control work force, and will continue for at least 30 years. Decommissioning may be undertaken in 2048, but the Project may continue to operate under other contractual arrangements, depending on economic and technological conditions at that time. Alternative sites and technologies have been considered, but offer no advantages over those selected. The expansion (Tolo II), if carried out, will be a stand-alone new project about 2-5 km to the north and east of Tolo I. ii Environmental and Social Impact Assessment and Management Plan PT. Energi Bayu Jeneponto Indonesian EIA permitting (AMDAL) has been completed, with the Environmental Permit (Izin Lingkungan) obtained on 6 March 2017. A separate UKL-UPL permitting effort for the 150 kV transmission line has already been submitted and approved, with Izin Lingkungan obtained on 15 March 2017. The majority of project elements are sited on rain-fed rice fields, land that is relatively unproductive in that it lacks irrigation and produces only one crop per year. Land acquisition involved no physical relocation and only minor household economic impacts. Short- term, minor impacts of air quality deterioration, noise, water consumption, soil erosion and compaction, and increased traffic load are expected during construction, with some stimulation of local economic activity. In operation, minor noise, and shadow flicker effects can be expected to impact several adjacent residential settlements. Health and safety risks for nearby communities are considered minor. No protected or endangered bat or bird species have been identified in the Project area. The bird and bat survey study has also confirmed that the project location is not traversed by global migration route of bird species or other groups. Management of all these impacts is addressed by the Environmental and Social Management System and Plan. Conclusions Examining the activities involved in planning, constructing, operating, and decommissioning the Tolo I Wind Power Project, the characteristics of the existing natural and social environment, and the predicted impacts and management/mitigation measures to be applied, it is concluded that the Project: ▪ Is environmentally and socially feasible, with no severe impacts on the population or environment; ▪ All significant impacts can be managed or at least mitigated; ▪ Will assist Indonesia in meeting the needs for electricity in the southern part of Sulawesi Island; ▪ By using wind, a renewable energy resource, assist Indonesia in meeting targets for reducing carbon emissions; and ▪ Will provide local residents with benefits during construction and operation. iii TABLE OF CONTENTS CHAPTER 1 PROJECT OVERVIEW .................................................................................. 1 1.1 Project Objectives ..............................................................................................1 1.2 Project Proponent ..............................................................................................3 1.3 Location and Spatial Characteristics ..................................................................3 1.3.1 Project Location ..................................................................................3 1.3.2 Project Access .....................................................................................4 1.3.3 Conformance with Spatial Planning ...................................................4 1.4 Project Components and Associated Facilities ..................................................4 1.5 Project Phases ....................................................................................................1 1.6 Project Workforce Requirements ......................................................................1 1.7 Project Alternatives ...........................................................................................1 1.7.1 No Project ...........................................................................................2 1.7.2 Alternative Siting ................................................................................2 1.7.3 Alternative Project Configuration ......................................................2 1.7.4 Alternative Technology ......................................................................3 1.7.5 Alternative Site Access .......................................................................3 1.8 Environmental and Social Impact Assessment and Management Plan Overview ............................................................................................................4 1.8.1 Objectives ...........................................................................................4 1.8.2 Regulatory Permitting Requirements .................................................4 1.8.3 Scope of ESIA ......................................................................................5 1.8.4 Project Categorization ........................................................................5 1.8.5 Summary of Main Impacts .................................................................5 1.8.6 ESIA Consultant ..................................................................................6 CHAPTER 2 ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS FRAMEWORK ............. 9 2.1 Environmental and Social Management System ...............................................9 2.2 Investment Code ................................................................................................9 2.3 Environmental and Social Policy ..................................................................... 10 2.4 Organizational Capacity and Competence ..................................................... 12 2.5 Training and Review ....................................................................................... 19 2.6 Emergency Preparedness and Response System ........................................... 19 2.7 Environmental Management
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