TITLE OF PROJECT The Proposed Nenggiri Hydroelectrict Project, Jajahan Gua Musang, Kelantan Darul Naim.

PROJECT LOCATION The Nenggiri Hydroelectric Project site is located within Sg. Nenggiri catchment in Jajahan Gua Musang, Kelantan which is approximately 30 km from Gua Musang town. Sungai Nenggiri has a catchment area of 3,703 km2 and occupies approximately 30% of the Sg. Kelantan basin measured at the Guillemard Bridge. The catchment area is flanked on the western side by the main range, which traverses from north to south through the centre of the Peninsular.

PROJECT PROPONENT The Project Proponent is Tenaga Nasional Berhad (TNB) (herein after referred to as the Project Proponent). The contact details of the Project Proponent are as follows:

Address : Tenaga Nasional Berhad Project Execution Department Energy Ventures Division 15th Floor, PJ Tower AMCORP Trade Centre No. 18, Jalan Persiaran Barat 46050 Petaling Jaya Selangor Darul Ehsan. Telephone/Fax : 03 7953 9600 / 03 7954 5476 Contact Person : En. Wan Mat Wan Musa General Manager (Hydro Projects)

UKM Pakarunding Sdn. Bhd. (561663-U) ES-1 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

AUTHORISATION AND CONSULTANTS The EIA consultant appointed by the Project Proponent to carry out the EIA study is UKM Pakarunding Sdn. Bhd. The company address and details of the contact person are as follows:

Address : UKM Pakarunding Sdn. Bhd. Aras 3, Bangunan Wawasan Universiti Kebangsaan Malaysia 43600 Bangi, Selangor Tel/Fax : 03 8921 3142 / 03 8925 2469

Contact Person : Prof. Dr. Norhamidi Muhammad Study Team Leader Email : [email protected]

ENGINEERING CONSULTANT TNB has engaged the consortium of – SMEC International – Tokyo Electric Power Services Corporation Limited (TEPSCO) – SMEC Malaysia Consortium (STSC) to carry out design and construction supervision of the project.

Address : Nenggiri HEP Project Office 15‐01, 15th Floor, PJX – H.M. Shah Tower No. 16A, Jalan Persiaran Barat 46050 Petaling Jaya Selangor Darul Ehsan. Telephone : 03 7932 1144 Contact Person : Mr. Andrew Pattle Project Manager Email : [email protected]

UKM Pakarunding Sdn. Bhd. (561663-U) ES-2 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

Legal Aspects Under Environmental Quality Act, 1974 (EQA, 1974) for activities prescribed in the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 2015, an Environmental Impact Assessment (EIA) needs to be undertaken for the development of:-

 The activities specified in the First Schedule and the Second Schedule are prescribed activities.  The activities specified in the Second Schedule require public display and public comment.  Public display and public comment shall be at a place and within the time determined by the Director General. Second Schedule Dam of 15 meters or more in height and ancillary structures covering a Activity 15b (i) total area of 40 hectares or more. Activity 15b (ii) Reservoir with a surface area of 100 hectares or more. Logging, or cutting or taking of timber covering an area of 500 Activity 5d hectares or more. First Schedule Activity 19 Quarrying for rock material.

In compliance with the above requirements, a report on the impacts of the Proposed Project on the environment and recommendations to mitigate the impacts is to be prepared for the approval of the Department of Environment. It also involves an assessment of the impacts of logging as well as quarrying activities and recommendations for judicious and practical mitigation measures to control/minimise the impacts to the environment.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-3 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

Page intentionally left blank

UKM Pakarunding Sdn. Bhd. (561663-U) ES-4 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

Figure ES1 Overview of Project Location Plan and the Proposed Nenggiri Dam

UKM Pakarunding Sdn. Bhd. (561663-U) ES-5 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

Figure ES2 Land Status (ha) of the Proposed Inundated Area

UKM Pakarunding Sdn. Bhd. (561663-U) ES-6 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

PHYSICAL ENVIRONMENT

AIR QUALITY  Activities for dam construction are expected to produce some degrees of adverse impacts to the ambient air quality, therefore total suspended particulates (TSP),

particulate matter (PM10), carbon monoxide (CO), sulphur dioxide (SO2), nitrogen

dioxide (NO2), and hydrogen sulphide (H2S) were determined.

 Results for all air quality parameters at all the sampling stations are relatively low compared to the recommended Malaysia air quality guidelines. This demonstrates that there is no existing threat of air quality within the study area and the results can be used as baseline data.

 No significant air pollution is expected to be occurring during the pre-construction phase since only small amounts of vegetation will be cleared and no major work is needed. However, there would be several sources of air pollution expected during the construction phase. Earthwork activities and the movement of vehicles during site preparation and construction phase could produce some hazardous gases such as CO,

SOx, NOx, etc. Earthwork such as land clearance could release dust particles (PM10) into the atmosphere. Heavy machinery and other transportation vehicles could release hazardous gases such as mentioned above. The impact will be localized within the dam project area, power intake, diversion tunnel, quarry and borrow areas.

 Logging activities that include timber cutting and transportation are expected to create

some degrees of air pollution. Timber cutting could generate PM10 into the air since the land surface is exposed. Timber transportation could contribute air pollutants from

the exhaust emissions of vehicles. Even though the impact of dust, CO and CO2 is temporary, the recipient in the nearest settlement will be exposed to the impact.

 Quarrying activities would alter the geology and soil texture and could emit significant amounts of dust into the air. Dust emission may be derived from quarry activities at the primary crushing or at the extraction site. Transportation of raw materials will result in fugitive dust generated by internal vehicle movements on unpaved internal haul roads. The area of exposed quarry surfaces, including quarry faces and quarry floor will promote dust emission during windy period. Apart from dust emission,

some hazardous gases such as sulphur dioxide (SO2), nitrogen oxides (NOx), carbon monoxide (CO), and traces of VOCs could be released by the transportation of materials.

 During the impoundment phase, production of hydrogen sulphide (H2S) and methane

(CH4) are expected due to inundated vegetation left underwater. However, it would take a very long time for the degradation process to release these toxic organic compounds (gases) into the water body and the atmosphere.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-7 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

NOISE & VIBRATION  Assessment on the baseline noise found that a number of existing noise levels exceeded the limits for rural or low populated areas as stipulated by DOE guidelines for environmental noise limits, which were likely due to nearby human activities and vehicle traffic.

 Vibration study, the measured ambient vibration levels at the selected sampling stations were below the limit for a steady state vibration, as stipulated by the DOE guidelines for vibration limits in the environment

 During pre-construction and construction phases, activities that may cause potential noise and vibration impacts to residential areas and sensitive recipients around the project sites include activities for seismic study, construction of access road, site clearing and earthworks, river diversion and construction of the main dam, saddle dam, re-regulating dam as well as related infrastructure, amenities and facilities. Due to the surrounding geological profile which can absorb ground vibration and the nearest residents are located several kilometres from the main dam and several dam facilities, impacts due to noise and vibration during the pre-construction and construction phases can be considered as minimal.

 The impacts can be mitigated through the use of a vibration free piling method when working close to residential areas, by scheduling the noisy construction activities and movement of heavy vehicles during working hours and days only, and by maintaining communication with the affected residents and recipients regarding the on-going construction activities. During the operation phase, noise and vibration levels generated by the project are also minimal. However, depending on the for micro- seismic profile recorded during commissioning and operations, the vibration level needs to be continuously monitored as a safety measure in ensuring the integrity of the dam structure and its safety, as well as the surrounding populace.

WATER QUALITY  The proposed Nenggiri HEP is predicted to produce various types of adverse effects to Sg. Nenggiri water body. A total of 20 water quality sampling locations were selected and samplings were undertaken during normal flow to represent ambient water quality. The water samples were analysed for physical, chemical and biological parameters following APHA, 2009 and the water samples were sent to an ISO 17025

accredited laboratory for analysis for suspended solids, nutrients, BOD5, COD, total organic carbon (TOC), oil & grease, metals and total coliforms. Some common parameters (pH, dissolved oxygen, conductivity, TDS and salinity) were measured in situ.

 Physical water quality indicates that Sg. Nenggiri and its tributaries are in moderate to good quality conditions. The dissolved oxygen and pH are within the ambient range of concentrations. Only TSS exhibited substantial variations but as far as the average

UKM Pakarunding Sdn. Bhd. (561663-U) ES-8 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

value is concerned, Sg. Nenggiri is considered to have low TSS. Similar to the physical water quality values, all chemical and biological water quality parameters indicate that Sg. Nenggiri and its tributaries are not significantly affected by the various kinds of pollution, possibly due to its large size and volume of flow. Although the parameter values have a wide of concentrations the ambient levels are still within the class I to II based on NWQS.

 Only phosphates and nitrates were detected at high concentrations at certain locations. Surface runoff from the nearby rubber and oil palm plantations which normally use a lot of fertilizers may be the main reason for such high values of nutrients at certain river stretches. Heavy metals concentrations in the general Sg. Nenggiri riverine stretch are relatively low and within ambient concentrations. This reflects the natural level, indicating that currently there are no substantial anthropogenic inputs of heavy metals into Sg. Nenggiri. The total coliform concentrations detected vary between locations and at several sampling stations the values detected are above the safety level i.e., 5 X 103 MPN/100 mL (Ministry of Health Malaysia). This means that some stretches of Sg. Nenggiri are not suitable for water supply and these are mostly near the settlement or village areas.

 The water quality index value indicates that most of the Sg. Nenggiri riverine area has moderate water quality (class II), while a few sites were in class I and some were in class III. These findings were quite different from those reported by the Department of Environment in its Environmental Quality Report of 2015, which indicated that the whole of Sg. Nenggiri then was of Class II only, whereas the current conditions indicate some signs of improvement at certain segments of Sg. Nenggiri.

 There are very minimum impacts on water quality during pre-construction phase. All activities not directly involve with river water body and land clearance activities would not produce significant impacts on water quality.

 Major adverse water quality effects are expected to occur during the construction phase. Earthworks, construction of the saddle dam, re-regulating dam and main dam may have significant impacts on water quality, especially suspended solids (TSS). Water runoff and erosion from the various earthwork areas as well as erosion from the spoil dumps may result in siltation of downstream rivers. Transportation along the haul roads that cross the rivers or streams may have significant impacts on some of the water quality parameters such as fuel spillage, oil and grease, apart from TSS. In addition, the large number of construction work force would generate significant amounts of solid waste, sewage and waste water. Oil and fuel spillage and leakages from transport, storage and operation of equipment may all pollute the river. The presence of workers at the base camp nearby to the proposed re-regulating dam could cause sewage contamination to the Sg. Nenggiri.

 Similar to the other main activities, logging is also predicted to cause serious sedimentation into Sg. Nenggiri and its tributaries since the area for logging is located

UKM Pakarunding Sdn. Bhd. (561663-U) ES-9 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

at the very upstream parts of the river. Apart from sedimentation, logging could also cause water contamination by organic and solid wastes originating from the worksites and base camps.

 Quarrying activities such as drilling, blasting, stone washing and transportation are expected to produce huge amounts of TSS and without proper management, could inflate the levels of suspended solids and turbidity in the river.

 The impoundment of water causes an ecosystem change and would definitely alter the water quality of the new water body. The water quality would completely change since the ecosystem would change from lotic to lentic. Downstream of the re-regulating dam would experience low water discharge and affect some of the water quality parameters such as DO, TSS and nutrients.

 During the operation phase of the dam project, inundated debris and other organic materials could be degraded and produce hazardous gases such as methane and hydrogen sulphide. The water quality would change from the typical fast flowing one to that of a stagnant water quality and it would also form thermal stratification. Stagnant water can be easily affected by thermal conditions. The accumulated and retained sediments would hinder the natural nutrient replenishment of the downstream ecosystem. Enrichment of nutrients will trigger the growth of algae and rooted , thus inducing eutrophication. Eutrophication may result in depletion of dissolved oxygen in the bottom layer of the reservoir and the release of soluble iron, manganese and hydrogen sulphide.

HYDROLOGY

Climate  The proposed Nenggiri dam project has a tropical climate characterised by uniformly high temperatures, high relative humidity and high rainfall. In general, the project area experiences two types of seasons, namely the wet season from October to early January, and the relatively drier period from February to July. From late July to September, the project site and almost the entire state of Kelantan are influenced by the south-west monsoon, which carries relatively more rain compared to the dry season. The months of February to April are generally considered to be in the drier period. Less rain falls during this period and in fact, rainfall is almost absent between the end of February and April, while at the same time, the rate of evapotranspiration is the highest.

River System  Sg. Nenggiri is one of the major tributaries of the Sg. Kelantan with a catchment area of about 3,703 km2. Right up to the hydrometric station at Chegar Atas, the catchment area is approximately 3,740 km2 and comprises about 30% of the total catchment area of the Sg. Kelantan at Gullimard Bridge. The Sg. Kelantan itself drains a total area of

UKM Pakarunding Sdn. Bhd. (561663-U) ES-10 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

more than 13,000 km2 and comprises virtually the whole of the State of Kelantan. The main river systems in the Proposed Project area are Sg. Berok, Sg. Betis, Sg. Perias, Sg. Jentera and Sg. Nenggiri. All these river systems flow out into Sg. Nenggiri which form Sg. Kelantan at further downstream and subsequently, to the South China Sea. Most of the low lying areas in the floodplain are inundated by flood waters almost every monsoon season. The latest heavy flood was recorded on December 25, 2014, which was considered as the biggest flood in the century.

SOIL EROSION  Soil of the study area has developed from two different parent materials which are arenaceous sediment and limestone crags, argillaceous and mixed sediment, and igneous rocks. The pH of soil was from 3.42 to 4.89. Organic matter in soil ranges from 1.18 to 7.85%. The soil has a low to fast hydraulic conductivity which ranges from 0.44 to 15.66 cm/hour. Soil analysis indicates that the soil is dominated by loamy texture which indicates an equal amount of sand, clay and silt fractions. Generally, the clay contents are lower than silt and sand, indicating a progressive state of chemical weathering that may render the soil weakly bound, thus may not be able to withstand dispersion due to direct impact of rainfall and disturbance by moving water.

 The predicted rate of soil loss in the present condition is from very low to moderately high, with sediment yield ranging from 2.54 tonnes/storm event to 153.67 tonnes/storm event. The rate of soil loss at worst case scenario is very high which is more than 740.57 tonnes/ha/yr, with sediment yield ranging from 208.70 to 14620.62 tonnes/storm event. Incorporation of proper mitigation measures during construction and operation phases would significantly reduce the amount of soil loss and sediment yield. During construction, the amount of soil loss would increase from 5.33 to 96.02 tonnes/ha/yr, whereas sediment yield would increase from 0.02 to 23.70 tonnes/storm event. During operation phase of the project the amount of soil loss after mitigation would change from 2.77 to 49.93 tonnes/ha/yr, whereas sediment yield would change from 0.01 to 7.58 tonnes/storm event.

GEOLOGY AND GEOTECHNICS  The geology of Nenggiri is comprised of rocks from Gua Musang Formation that was dated from Middle Permian into Middle Triassic. The Nenggiri area, which also includes the reservoir and dam sites is comprised of mainly three types of rock formations, namely (i) basement metamorphic rocks; (ii) crystalline limestone (marble) and (iii) granite. Basement metamorphic rocks are comprised of meta-volcanics, meta- sediments, schists, quartzites, meta-agglomerate and hornfels. Crystalline limestone or marble is a product of low grade metamorphism of limestone due to the intrusion of granite (i.e. contact metamorphism). The granites have intruded metamorphic rock formations in this area. The metamorphic rocks and marble rock formations have a direct association with the proposed main dam site foundation, saddle dam and its reservoir.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-11 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

 Meanwhile, granite rocks are located adjacent to the Proposed Project site in the form of large, oval-shaped massive and elongated ridges. The main dam site is largely located in meta-volcanics rocks (meta-tuffaceous and meta-agglomerate) bordering with very steep limestone cliff on top. Meta-volcanic rocks are comprised of meta- tuffaceous and meta-agglomerate and were seen exposed at both sides of the river banks. Meta-agglomerate is obviously composed of volcanic fragments of various sizes (large clasts) and high degrees of angularity (irregular shape), while meta-tuffaceous rock is fine grained and greenish in colour. Both rocks are very dense, strong and were cut by three joint sets.

 The geology at the saddle dam is limited to two main lithotypes: the marbles, which form the eastern abutment and about two thirds of the foundation, and metamorphic rocks (almost totally weathered), which form the western abutment. Except for the vertical marble cliff of the eastern abutment, quite clean and sound, the remaining dam site area is covered with an overburden of topsoil and residual clay, with a thickness varying from 5 to about 20 m.

 The investigation study also confirmed the presence of some karst features in the form of small solution cavities filled with clay in the foundations of the saddle dam. The reservoir created by the Nenggiri Dam at the proposed site can be considered impermeable, except for that part of the reservoir comprised between the main dam and the saddle dams, which could be susceptible to some water leakage. The limestone cliff borders the reservoir discontinuously from the saddle dam to the main dam.

LANDUSE  The area surrounding the Proposed Project site displays a coherent land use pattern. The main land use pattern within the study area consists of forest and agriculture (PLAN Malaysia). However, based on the SPOT 6 and SPOT 7 satellite images, the land use pattern in the 5 km Proposed Project consists of clear land, forest, oil palm, quarry, rubber, settlement and water bodies. The development patterns show that the placement of the Malay settlement was around the proposed re-regulating dam, while the pattern of Orang Asli settlements is in the vicinity of the reservoir area. The open space is an area planned for oil palm or rubber cultivation.

WASTE MANAGEMENT  The objective of Waste Management assessment is to ensure that wastes due to or associated with the Proposed Project are properly managed so as to have insignificant environmental impact on the surrounding environment. The wastes are dam site clearing wastes, scheduled wastes, construction wastes, garbage and sewage and sullage, which if not properly managed would not only affect the downstream water quality, but could pose dangers due to pests, such as the vectors of dengue and leptospirosis.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-12 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

 Due to the remoteness of the area, transporting out wastes is expensive, thus the recommended mitigating measures involve processing on-site or temporary storage before transporting out, such as for scheduled wastes and recyclable construction wastes. Plant biomass is to be recovered, as far as possible, as logs and chipboard wood where appropriate, with the rest left to break down in rip-rap erosion barriers. Sewage is to be treated to Standard A river discharge, in small packaged units with aeration chamber, equipped with moving bed biofilm media, to enable the ammonia level of 5 mg/L to be consistently achieved. Garbage is to be separated into recyclables and putrescibles, with the putrescibles composted in totally enclosed composters, to prevent odour and pests. Management of scheduled wastes, by contractors, are to be in accordance with the scheduled wastes regulation 2005, the EQ(SW)R 2005.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-13 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

BIOLOGICAL ENVIRONMENT

TERRESTRIAL FLORA  The terrestrial flora assessment on community structure, species diversity and biomass of trees at riparian forests within the Sg. Nenggiri river basin is based on 12 plot studies (0.6 hectare) at Hutan Simpan Ulu Nenggiri, Hutan Simpan Sg. Terah and Hutan Simpan Balah, and general flora survey within the riparian buffer zone of Sg. Perias, Sg. Jenera, Sg. Betis, Sg. Wias and Kg. Wias, Kg. Pasir Mayat and Kg. Pulau Setelu. The vegetation is classified into riparian, limestone and secondary forests. Riparian forests occur along the streams in the study area, especially along Sg. Nenggiri, whilst limestone forest is found near the limestone hill e.g. Gua Cha. Secondary forest occurs in the logged-over area or near the plantations of rubber, oil palm and orchards. The common families are Euphorbiaceae, , Leguminosae and Sapindaceae.

 The main canopy and understorey are less dense than the forest floor vegetation for riparian forests in the upper stream of Sg. Nenggiri river basin within the Hutan Simpan Ulu Nenggiri and Hutan Simpan Balah. Dipterocarp tree stand is common, especially along the Sg. Nenggiri viz. Dipterocarpus oblongifolius, and D. oblongifolia. Pioneer species commonly found along the roadside and open area with large forest gaps include common species like Hibiscus floccosus, H. macrophyllus, Macaranga tanarius, Mallotus leucodermis, M. peltatus, Neolamarckia cadamba and Trema cannabina. The most common species along streams of riparian forests in the downstream of Nenggiri river basin within the Hutan Simpan Sg. Terah is Pometia pinnata (Sapindaceae). Forest floor vegetation is dense with the saplings of Rubiaceae, Annonaceae and Euphorbiaceae. The pioneer species recorded in this area include Arthrophyllum diversifolium (Araliaceae), Macaranga conifera (Euphorbiaceae) and Neolamarckia cadamba. The riparian vegetation of the re-regulating dam area are mostly orchard plants, forest fringe plants and common riparian species.

 Tree species composition recorded a total of 660 trees (DBH > 5 cm) representing 55 families, 157 genera and 241 species. Euphorbiaceae was the biggest family while Syzygium was the most specious genus. Tree stand structure of Sg. Nenggiri riparian forest showed that 56.99% of the trees were in 5.0 cm – 14.9 cm diameter class. Total tree basal area (BA) was 61.10 m²/ha, in which Leguminosae contributed the highest basal whilst Bombax valetonii showed the highest basal area of 4.68 m²/ha. The total tree species density was 1100 ind./ha. Euphorbiaceae recorded the highest density of 232 ind./ha whilst Pometia pinnata was the species with the highest density of 50 ind./ha. Leguminosae was recorded as the most frequent family that occurred in all 12 sampling plots. Euphorbiaceae was the most important family with Family Important Index (FIVi) of 13.21% whilst Pometia pinnata (Sapindaceae) was the most important

species. Shannon Diversity Index was high at 5.04 (Hmax=5.48). The total estimated biomass from the 0.6 ha sampling plot was at 1034.33 tonnes/ha, contributed by the above ground biomass (ABG) and below ground biomass (BGB) of 882.60 t/ha and 151.73 t/ha, respectively. Since the study area are logged-over lowland dipterocarp

UKM Pakarunding Sdn. Bhd. (561663-U) ES-14 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

forests and the estimated biomass was from small sampling plot area of less than 1 hectare in size, the reported value of 882.60 t/ha above ground biomass could have over-estimated the true value of total biomass of the study site.

 Out of the 241 species recorded from the 0.6 ha sampling plot of riparian forests within the Sg. Nenggiri river basin, a total of 23 tree species are endemic to Peninsular Malaysia. Suregada multiflora var. lamellata from Euphorbiaceae was hyper-endemic to Gua Musang, Kelantan. Rare species includes Popowia fusca (Annonaceae), Scutinanthe brunnea (Burseraceae), magna (Annonaceae) and Pterocymbium tubulatum (Sterculiaceae). Three dipterocarps species at the study site were listed as Vulnerable in Malaysia Plant Red List i.e. Anisoptera scaphula, Hopea mengerawan and Hopea pierrei.

 It is estimated that the forest areas that will be impounded by the proposed project is about 2,145 hectares, representing 39.84 % of the total reservoir (5,384 ha). The expected affected forest reserves are parts of Hutan Rizab Sungai Terah, Hutan Rizab Berangkat, Hutan Rizab Nenggiri, Hutan Rizab Balah and Hutan Rizab Sungai Perias. Hutan Rizab Gunung Setong Selatan is expected as refuge forest for wildlife and seed source for natural regeneration of the disturbed/ degraded forests. Another 2,080.75 hectares (38.65%) of agricultural areas will also be affected. However, the percentage of the total forest areas (2,145 ha) impacted by the proposed development out of the total forest reserves (191,510 ha) that served as production forests is only 1.12%.

 During pre-construction of the dam, minimal vegetation clearing along the route to the project site is expected as well as minimal clearing to prepare temporary camping sites for surveyors to rest overnight. During construction, vegetation clearing will incur the most significant impacts in terms of erosion and sedimentation problems into the rivers if no mitigation measures are taken. The existing and abandoned logging roads and base camps should be utilised to minimize disturbances to the natural ecology. Removal of unwanted biomass in the 2,145 hectares of forest reserve areas and another 2,080.75 hectares of agricultural areas, (other than the merchantable logs) i.e. roots, branches and shrubs should follow proper guidelines and disposal should be at the designated approved dumpsites. Rescue operation and recovery plan should be undertaken for both threatened as well as common dipterocarp plant species. The plants may be used later in forest restoration activities.

 During quarrying and logging activities, loss of commercially and ecologically important species will be a permanent loss. Logging may expose the adjacent forests e.g. Hutan Rizab Gunung Setong Selatan to be more vulnerable to wind throw, fire, illegal felling and shifting cultivation. The forest may also suffer from diebacks due to changes in atmospheric and physical factors. Landslides and mud slides are more likely to occur, especially during the wet season. Loss of carbon sequestration would be from the removal of forests and the release of greenhouse gases from the decaying vegetation. The estimated removal of above ground carbon stock at the proposed area is 413 tonnes Carbon/ha. The logging method must follow the Operational Forest Harvesting

UKM Pakarunding Sdn. Bhd. (561663-U) ES-15 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

Plan (OFHP) and comply with the existing Reduced Impact Logging (RIL) for maximum protection of forest reserve areas. Harvesting must be done in the drier months, i.e. February to September and should avoid the monsoon season, from October to January.

 Species composition and abundance of the riverine habitat will be altered and reduced. Best Management Practices is to either adopt an area equivalent to lost land in order to offset the carbon loss or to substitute the loss forest grounds and enhance degraded forests through reforestation activities by the Project Proponent. The carbon stocking through replanting to offset the carbon loss should be monitored by both the Project Proponent and Kelantan Forestry Department. The estimated amount of above ground carbon stock to be restored in this project is 1,072.56 Mega tonnes Carbon. Restoration and landscape enhancement should be maintained, including reservoir islands for conservation and refuge for wildlife.

TERRESTRIAL FAUNA  Terrestrial fauna which comprises large, medium and small mammals, bats, birds, reptiles and amphibian were investigated at three study sites representing two main forest reserves (FR), namely Nenggiri FR (known as Site A) and Balah FR (Site B and Site C). The site selection was made based on i) high forest habitat quality for wildlife, ii) minimal disturbance from logging and from the locals (including Orang Asli and loggers), iii) representing several major habitats, and iv) areas that are predicted will have major impacts of the Proposed Project on wildlife.

 Total mammal species recorded at Nenggiri FR (or Site A) was 24 species, at Balah FR Site B was 11 species and at Site C was 13 species, respectively. Cumulative mammal species recorded at Nenggiri FR was 24 species from 15 families, while at Balah FR it was 19 species from 11 families.

 Considering only large and medium mammal species, 6 and 5 species (from 5 orders and 5 families), respectively, were recorded at Site A. The most abundance species found here was Sus scrofa, and among the rarest were Arctictis binturong, Cuon alpinus, Helarctos malayanus, Macaca nemestrina, Tapirus indicus and Prionailurus bengalensis. Other species recorded at this site were Hystrix brachyuran, Muntiacus muntjak, Elephas maximus, Symphalangus syndactylus and Hylobates lar. At the other two sites (Site B and C) within Balah FR the total number of large and medium mammal species documented was 5 and 3 species, respectively, representing 7 families and 4 orders. The most commonly found wildlife species were Elephas maximus, Sus scrofa and Muntiacus muntjak. These three species were recorded mostly based on the tracking of the animal’s foot prints and were also photographed by installed cameras traps. Assessment on the location and size of the foot prints and dungs suggests that this location is roamed by one herd of elephants consisting of at least 10 to 15 individuals with several baby elephants, suggesting that this is a healthy breeding population. Other species that were recorded at Balah FR were Macaca fascicularis,

UKM Pakarunding Sdn. Bhd. (561663-U) ES-16 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

Macaca nemestrina, Helarctos malayanus, Canis lupus familiaris and Pardofelis marmorata.

 Among the large and medium mammal species recorded at the all study sites (A, B and C), five species are classified as Endangered (Asian Elephant, Siamang, Lar Gibbon, Dhole and Malayan Tapir), three are Vulnerable (Pig-tailed Macaque, Binturong and Malayan Sunbear) and one is Near-Threatened (Marbled Cat). Based on the local law (Wildlife Conservation Act 2010) six species fall under Protected Species (Protected Wildlife, 1st Schedule, Sec. 3, Part 1 or Part 2), and another 10 fall under Totally Protected species (2nd Schedule, Sec. 3, Totally Protected Wildlife). All of the Totally Protected species are important and need conservation attention. Large mammal species are more important because they are predicted to be affected more significantly compared to the small mammal species due to any changes in their habitat.

 A total of nine small mammal species was recorded at Nenggiri FR (Site A) comprising 4 squirrels, 3 rats/mice, 1 treeshrew and 1 porcupine. At Balah FR (Site B and C) a total of 11 species was recorded, comprising 8 rats, 2 squirrels, and 1 treeshrew. Among these, 5 species comprising 3 rats, 1 squirrel, and 1 treeshrew were recorded at Site B, while 8 species representing 6 rats, 1 squirrel and 1 treeshrew were recorded at Site C. Most of the small mammal species recorded from this study are listed as Least Concern (IUCN) and not protected (Wildlife Conservation Act 2010) except for two rat species, namely Dark-tailed Tree Rat (Niviventer cremoriventer) and Brown Spiny Rat (Maxomys rajah), which fall under Vulnerable species (IUCN Red Data Book).

 A total of 12 bat species was recorded at Site A, 22 species at Site B, and 13 species at Site C. Cumulative bat species recorded at all three study sites were 28 species from 4 families, among which, 5 were plant-visiting bats (family Pteropodidae) and the rest of the species were insect-eating bats from the family Hipposideridae (with 7 species), Rhinolophidae (5 species) and Vespertilionidae (11 species), respectively. Furthermore, four of these species are listed as Near Threatened by the International Union for Conservation of Nature (IUCN) 2017, which include Hipposideros dorie, Rhinolophus robinsoni, Kerivoula intermedia, Kerivoula minuta, and Kerivoula pellucida. There rests of the species are listed as Least Concern or Not Accessed. None of the species caught were listed under any schedule of Laws of Malaysia Act 716 (Wildlife Conservation Act 2010) for Peninsular Malaysia. However, there are a few rare species such as Harpiacephalus harpia, Hipposideros dorie and Hipposideros dyacorum.

 Bird species recorded from all the three study sites totalled 130 species from 40 families. The most dominant species were Drongo Cuckoo (Surniculus lugubris), Black- headed Bulbul (Pycnonotus atriceps), and Pin-striped Tit-babbler (Macronous gularis). The highest number of species was recorded at Site B, with 83 species, followed by Site C with 73 species, and the least was at Site A with 57 species. Similarly, Site B has the most abundant bird species with 286 individuals, followed by Site C with 241

UKM Pakarunding Sdn. Bhd. (561663-U) ES-17 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

individuals and the least was in Site A with 218 individuals. Further analysis suggested that the species composition is more similar in Site B and C, compared to Site A. This pattern is attributed to the distance, location and habitat types of each study site.

 Bird survey also recorded a total of 20 species categorized as Near-threatened (NT) species (IUCN Red Data List). Among these species are Blue-rumped Parrot, Rufous- collared Kingfisher, Rhinocerous Hornbill, Yellow Crowned Barbet, Green Broadbill, Black-and-Yellow Broadbill, the Leafbirds, Scaly-breasted Bulbul, White-chested Babbler, Fluffy-backed Tit-babbler and Chestnut-naped Forktail. At the sampling Sites A and B, 12 species were recorded in this category, whereas at Site C, 9 species were recorded in this category. Among the birds recorded at all the study sites, more than 90% of the species are either Protected or Totally Protected, and most of these species are also resident birds, and about 70 and 90 % of them are lowland species. Habitat quality and rate of disturbance (land clearing and loss of forest habitat) within these study sites are also reflected in the community structure and abundance of bird species. Generally, if one area or habitat is already degraded and lost, then the ‘forest characteristics’ of this area will also be lost including all the forest species and will be replaced by urban bird species. However, most of the study sites still maintain a healthy representation of bird diversity, as not many of the non-forest birds have been recorded during the surveys.

 Amphibian is represented by 16 species from five families, namely Bufonidae, Dicroglossidae, Microhylidae, Ranidae and Racophoridae. Among the sampling sites, Site C recorded the highest number of species (10 species), followed by Site A (6 species) and Site B (5 species). Among these species only one species is listed as Near Threatened (NT) according to the IUCN Red list, which is Limnonectes blythii. Meanwhile, the other species are listed as Least Concern excepr for Polypedates discantus and Raochestes sp., which are noted as Not Accessed. Raochestes sp., however, is considered rare, and possibly related to its specific habitat being in the forest canopy. All the other species are commonly found in any habitats elsewhere. In conclusion, the diversity of amphibians in this area is considered as very low in comparison with over 100 species of amphibian recorded in Peninsular Malaysia. It is probably related to; i) the habitat loss, and ii) change in stream water quality affected by high sedimentation loads.

 Reptiles recorded at the three study sites are from four families, namely Agamidae, Gekkonidae, Scincidae and Varanidae. Each of these families is represented by one to two species, with cumulative total of six species from all the study sites. Among these species, the most important species of conservation interest are Gekko gecko (Tokey Gecko), Calotes emma (Emma Gray's Forest Lizard), and Varanus salvator (Monitor Lizard). These species fall under the First Schedule [part 2] or protected species (others) of the Wildlife Act 2010. In conclusion, the reptile diversity in this area is considered low compared to the total of around 100 reptiles species found in Peninsular Malaysia and this is possibly associated with habitat alteration, and weather conditions.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-18 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

 The general impact of the Proposed Project on terrestrial fauna is predicted to be minimal for birds and bats, but significant for large and medium size mammals. The impacts of the Proposed Project on the terrestrial fauna (small and large mammals), bats and birds are at minimal during pre-construction and thus, no mitigation measure is required. The activities during this stage are generally associated with survey and investigation works which include the presence of researchers in the field, clearing several areas for camps and tracks. However, the activities during construction stage such as construction of haul or access roads is predicted to have direct impact on the wildlife activities (e.g. foraging activities), especially for the medium and small size animals. The presence of vehicles and heavy machinery may increase disturbance and the number of ‘roadkill’ affecting wildlife. To minimize this impact it is suggested to minimize the unnecessary opening, cutting and land clearing of the area. Choosing the right alignment for new roads is also required to reduce erosion and also to reduce cutting and earthworks to minimize disturbance to the wildlife habitats. Further mitigation measures to minimize the impact include rehabilitation of any cleared areas to prevent erosion and reporting on any sighting of wildlife to the authority (PERHILITAN) especially with regard to endangered species such as tapir and elephant.

 The creation of a reservoir would submerge many parts of the existing plantation and residential areas (Pos Pulat) and the impact (the existence of the reservoir) is permanent. A new reservoir is also predicted to have an impact on wildlife movements, roaming habitat and migratory routes, especially for the larger mammal species (e.g. elephant). Large species that require a larger area for foraging might be displaced and forced to raid adjacent plantations such as those at the south (towards Kuala Betis), west (towards Kg Kuala Yai) and north (towards Pos Gob) of the project area. Some species can move further north towards the Belum and Temenggor forest complex. The displacement of wildlife or conflict with humans (if any) can be mitigated through these measures: i) monitoring of potential conflict with wildlife species like elephant and wild boar, to determine the population size, carrying capacity, movement, and direction, ii) guiding back the wildlife to the existing habitat, iii) establishment of electric fence and dry moat at the perimeter of the affected plantations, iv) creating designated corridors for wildlife at the north and west of the project, and v) translocation of the affected wildlife species as the last option.

 The existence of access roads inside the forest reserve will increase the opportunity for illegal hunting. Should the existing roads to Pos Tohoi, Pos Gob and other Orang Asli villages at the west of the catchment be upgraded, then it may allow for the movement of poachers deep inside the catchment. The presence of well-maintained roads may also have an impact on the movement of wildlife such as elephants. The elephants require a large area for foraging and roaming and the existence of this road may have an impact on their movement and foraging areas. Hunting activities can be stopped by regulating the movement of vehicles that use the service road (or logging road) inside the catchments (except for Orang Asli). Patrolling of the area needs to be

UKM Pakarunding Sdn. Bhd. (561663-U) ES-19 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

carried out regularly by the Department of Wildlife and National Parks and the Forestry Department.

FRESHWATER ECOLOGY  The proposed dam construction at Sg. Nenggiri in Kelantan State is expected to cause several changes to the freshwater communities. The main activities for the dam construction are predicted to create environmental change especially to the aquatic ecosystem. A qualitative study was undertaken to estimate the existing conditions of phytoplankton, zooplankton and fish within the Sg, Nenggiri network. Since the affected area is large, sampling was separated into four different zones to represent upstream of the affected area, impounded area and downstream of proposed dam area.

 Generally, Sg. Nenggiri and its tributaries support low fish diversity and composition. A total of 21 species had been recorded, including a species of freshwater prawn. The most dominant family recorded was Cyprinidae. The cyprinid family is represented by eight species and most of them were caught in higher composition compared to the other families. Cyprinids had been recorded as an abundant family in the freshwater ecosystems. The most common cyprinids such as Cyclocheilighthys and Mystacoleucus were recorded at every zone of the study area. Other species from this family were recorded at lower composition.

 Other families that exhibit good composition and distribution are Pangasiidae and Sissoridae. Both families were recorded at most of the sampling sites. However, these families are represented by a smaller number of species. The freshwater king prawn was recorded at high composition in every zone and was represented by Macrobrachium rosenbergii. Out of 21 species recorded, only one species, namely Tor tambra is categorised in the Threatened category. This species is known to be intolerant to water pollution. However, other species like the freshwater prawn, shark catfish and goonch exhibit good adaptation with the existing water quality.

 The upstream zone that represents less a disturbed area supports higher fish diversity and density compared to the downstream zones. Our results clearly demonstrate the impact of logging and plantation to the fish communities. Similar results were also exhibited by the invertebrates and phytoplankton. Generally, as far as biotic communities are concerned, Sg. Nenggiri and its tributaries indicate moderate to stress conditions due to human activities, especially logging and plantation activities.

 During pre-construction of the dam, very minimal adverse effect is expected to be happen to the aquatic communities. Activities involved during this stage would include vegetation clearing along the route to the project site, as well as minimal clearing to prepare for temporary camping sites for the surveyors.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-20 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

 The most significant adverse effects are predicted to occur during logging, quarrying and construction works. Most of the activities are expected to cause significant land disturbance and eventually, sedimentation to the receiving water body. Total suspended solids (TSS) would be the main contaminant in the river system, and at excessive concentrations could harm fish and other aquatic communities. In addition, chemical and biological contamination such as oil and grease and sewage effluents could occur during the construction phase. However, sufficient mitigating measures are available to minimise the impacts.

 The main impacts to occur during impoundment phase involve changes from lotic to lentic ecosystem. The aquatic communities would be affected since they have already been adapted to life in a fast flowing ecosystem. Fast swimming organisms such as fish could swim upstream to avoid stagnant water, but other sedentary species will have to adapt to the new environment. Some previous dam developments have proven that some fish species exhibit good population growth in the newly established lentic ecosystem. Regulating for a slow impoundment rate is the best mitigating measure to solve some of these problems. At the downstream part of the dam/impoundment area, the flow would be reduced and could affect various environmental components. The environmental flow analysis determines 39m3/s the minimum flow needs to be released to support aquatic communities.

 A very minimum effect is predicted during the operation phase. Most of the previous dam development projects demonstrate that the aquatic communities within the impoundment area exhibit good regrowth rates. During this period, fishery activities and aqua-tourism could enhance the local income by producing sport fishing and even fish culture activities. A more detailed study is required to estimate the impacts of aquaculture on the lake water quality and BMP would aid in enhancing the production and minimising the effects of aquaculture on the lake ecosystem. Stocking the reservoir with selected native fish species will replenish the losses resulting from the disappearance of the former fish communities. The fish should be allowed to grow up to market size. This would provide an alternative way of subsistence and additional income to the local people and could avoid the high pressure of illegal fishing upon the native fish stocks.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-21 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

HUMAN ENVIRONMENT

ANTHROPOLOGY  The anthropological study highlighted in this report focuses on the Orang Asli communities that are expected to be directly impacted by the Sg. Nenggiri Dam Project. Fourteen Orang Asli villages are found to be located close to Sg. Nenggiri and its tributaries, and are within the perimeter of 5 km zone of impact. The villages are Pos Tohoi, Kg. Kuala Wook, Kg. Wias, Kg. Bring Lama, Pos Gob, Pos Pulat. Others include several villages under RPS Kuala Betis, like Kg. Guling, Kg. Langsat, Kg. Tinjing, Kg. Depak, Kg. Jias A, Kg. Jias B, Kg. Jias C, Kg. Seladak, Kg. Bawik and Kg. Setawar will also be indirectly impacted by the project.

 Three villages, namely Pos Tohoi, Pos Pulat and Kg. Wias have been identified to be directly impacted and submerged under water once the impoundment of the dam is completed. These three settlements will have to be relocated to a safer place and their economic resources must be developed in the relocation site to ensure that the disruption or adverse impact of the project on their life is minimised. A total of 197 household units with a total population of 1115 persons will be involved in the relocation excercise. The implementation of the project will cause some parts of the access road to the indirectly impacted settlement to be innundated by the dam. Crops like fruit orchards found along the innudated banks that belong to the Orang Asli might be damaged or cleared during the site construction.

 After conducting public dialogues with the three directly impacted communities, a survey using questionares was conducted to assess their feelings towards the project. It was found that more than 70% of the village population agreed to the construction of the Nenggiri Dam. Nonetheless, some members of the Jaringan Orang Asli (NGO) who resides in the village, were against the project and they made several efforts to convince the community to protest against the project. But they failed to gather the community support. Engagement with the communities, and furnishing them with information, listening to and understanding their predicaments, as well as explaining to them how the issues they raised could be mitigated, had helped them reduced their anxiety and develop more trust towards the project.

 Several major issues that were seen to cause adverse impacts on their well-being were raised by the community. The issues were, (i) the place where they will be relocated. (ii) loss of homes. (iii) loss of economic resources. (iv) loss of graves and their tanah adat. (v) loss of basic ameinities (electricity, water supply, telecomunication facility) that they are currently enjoying, and loss of cultural identity.

 With regards to the place of relocation, the Orang Asli were given the choice to choose the location sites they wished to be relocated. Their requests were entertained and positively supported by the government agencies at the district and state levels.  Pertaining to the loss of homes; the Orang Asli were promised by the project proponent that they will be given new homes at the relocation site. They were also given the

UKM Pakarunding Sdn. Bhd. (561663-U) ES-22 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

opportunity to give inputs to the design of the house. The is part of the proactive actions to encourage them to particapte in the decision making process.

 Regarding the loss of economic resources or income, the community was also consulted on how the project proponent could address the issue. They requested the project proponent to provide them with commercial crops (rubber plantation). The State Government has agreed to give 6 acres of land for commercial crop and ½ acre as housing lot to every household head involved. At the same time, a living allowance for a period of 48 months After relocation, living allowance for certain period would be considered yet need to be finalised .will be paid to them monthly. (This is in accordance with the Pahang-Selangor Raw Water Transfer Project by KETTHA involving the Orang Asli in the Lurah Bilut Relocation programme) This is used as a benchmark in the context of compensation and support for the affected community in this report). This new residential complex will be equipped with power and water supply and also access road. Other facilities that are recognised in the existing villages will be rebuilt in their new settlement.

 Regarding the current grave sites that will be submerged, the community has agreed that they follow their culture that not to disturb the dead spirit. There will be no relocation of graves, but instead they requested that the community be compensated. The amount of the compensation will be decided based on previous excercise that have been practised by TNB and other government projects.

 Pertaining to the worry of losing their cultural identity and tanah adat, the people have requested that a Balai Adat be built for them in the residential site. To help them retain their closeness to the forest, their choice of relocation sites was strongly supported as these sites are close to the jungle. Regarding the loss of tanah adat, the Temiar is aware that their tanah adat has long gone because of commercial crop development and logging that have been conducted in the area. According to the Penghulu, roaming in the forest for food is not an active practice of the community any more. This is due to (i) the forest near their homes having been cleared and (ii) converting to Islam have reduced their hunting of wild animals for food.

SOCIO-ECONOMICS  From the field surveys, more than three quarters of those interviewed agreed that the Proposed Project will bring positive benefits to the surrounding areas, especially in improving the aesthetics, the general landscape and overall living environment of the area, the sanitary conditions and general wellbeing. Nevertheless, a large majority of the respondents agreed that there are going to be many advantages of having the proposed Nenggiri Dam project.

 With regards to the impacts of the Proposed Project on their personal socio-economics, 80 % of the respondents indicated that the Proposed Project would be very beneficial to them economically, and 20 % had no comments or that there would be no difference made to their lives even before and after the project construction. Those who

UKM Pakarunding Sdn. Bhd. (561663-U) ES-23 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

considered it as a good project were amongst the educated elderly people who had lived there for over 30 years. Those without comments are mainly amongst the less educated and younger age group and whose houses are well buffered from the Proposed Project and hence, do not encounter any major difference in their daily lives. In terms of bad smell or foul odour or dust, 85.0 % of those interviewed mentioned that there was no problem with bad odour and dust generally, and 15.0 % mentioned that there would be some dust and noise, especially during the construction and operation phases.

 It was mentioned by the respondents that the Proposed Project would not in any way affect their jobs (79.0 %), and would not affect their income (74.0 %). In fact, the Proposed Project would open up some job opportunities, especially at the unskilled and general worker level for some of them. Most of the respondents (70 %) mentioned that the Nenggiri Dam project would not adversely affect their living standards and also those who were not doing any business mentioned that it would not affect their job opportunities at all (79.0 %). The respondents also mentioned that their economic activities would go on as usual. Approximately 60.0 % of those interviewed mentioned that their livelihood would, in many ways be better off after the establishment of the Proposed Project. These are especially among the stall owners and those doing petty trading, whose earnings would get better due to the better living environment and the influx of workers and newcomers.

 As an overall evaluation, it can be safely said that the socioeconomic survey carried out at the premises mentioned indicates that the people are generally happy with the Proposed Project and there are no major issues expected from the Proposed Project (except for relocation and compensation). In fact, the Proposed Project will bring much benefit in all aspects of their daily life. Apart from the much improved public environmental exposure, the Proposed Project will be contributory to the altered economic landscape, especially in the general public attractions and investors’ confidence to this part of Gua Musang, and the associated escalation of property prices and rentals of residential units. It is possible that with the continued trend, Bandar Gua Musang will become more developed, mushrooming with the business and economic activities which can attract all walks of life to settle in the area.

PUBLIC HEALTH  The proposed hydroelectric dam project is located in the district of Gua Musang within the state of Negeri Kelantan. The district is served by the Gua Musang Hospital that provides emergency services, outpatient and in-patient care. The area is served by the Klinik Kesihatan Gua Musang with 12 Rural Clinics. In Gua Musang, there were about 93 (7.6%) new tuberculosis cases compared to 1218 cases for the whole state in the last year. There were 39 cases of dengue fever, 40 cases (36.1%) of malaria, and 1957 cases of leptospirosis with 18 deaths in 2015. However, in 2016, the numbers were reduced. The district was free from typhus.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-24 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

 Regarding food and waterborne diseases, the district was free from cholera, dysentery and hepatitis A. However, a couple of cases of typhoid fever were notified in 2015 and 75 cases of food poisoning in 2016. Pertaining to sexually transmitted infections (STI’s) like human immunodeficiency virus (HIV) infection, gonorrhoea, syphilis and hepatitis C, the district is unexceptional. It had 12 cases of HIV, four cases of gonorrhoea, eight cases of syphilis, and 22 cases of hepatitis C seen at Gua Musang in 2016. However, all those cases were very low compared to the state figures. Other communicable diseases like leprosy, measles, and viral encephalitis, Gua Musang is spared from these diseases in 2016. However, there were about 36 cases of Hand-foot-mouth disease seen in Gua Musang in 2016.

 From a community survey, a total of 320 households from 22 different locations within a 5km radius zone of impact had been enrolled in this study. The majority of them (90.6%) had sanitary latrines, and about 79.8% received safe drinking water supply. Others share connecting pipe from outside, use tube well, collect rain water, and use the Sg. Nenggiri directly. However, few of the households use the river for defecation and as their source of drinking water. Most of them practised open burning. The commonest complaints are the respiratory tract infection, dermatitis, cardiovascular diseases, and infections. Infectious diseases are the most common diagnosis for the hospitalisation, such as dengue fever, malaria, tuberculosis, and leptospirosis. The cumulative hazard index (HI) for each air monitoring station is not more than one. However, for noise, most of the areas are considered as high background noise areas, most probably due to various sounds emitted by fauna or the nearby human activities. Most of the ground water sampling locations have good water quality except for the total E. coli, mercury and manganese content. In general, the well water at Kg. Kala is not suitable for human consumption and for others due to the presence of E. coli, and the water must be fully boiled before consumption.

ARCHEOLOGY  The Sg. Nenggiri river basin, located in Hulu Kelantan, has many cultural heritage sites, among which are the archaeological sites of prehistoric and protohistoric times. These sites are very significant in historical developments in the state of Kelantan, especially the famous sites such as Gua Cha and Gua Chawas, which highlight the artifacts that make up the historical chronology of Kelantan's early history. The proposed hydro- electric dam project to be built in Hulu Kelantan will cause some of the archaeological sites of this prehistoric age to be submerged. As a result, a systematic survey was conducted to record the data of existing sites as well as the new sites found in the Nenggiri River basin affected by the construction of the hydro-electric dam.

 There are many studies conducted in Hulu Kelantan, especially the most famous site, Gua Cha. The first archeological research was conducted by Noone in 1935 and subsequently followed by Sieveking (1954) and Adi Taha (1979). The main function of Gua Cha was as a place of burial for Hoabinhian and Neolithic society since 12,000 to 13,000 thousand years ago. Another cave that had the same function as a place of burial is the Peraling Cave, where this cave is situated opposite the Sg. Perias. The

UKM Pakarunding Sdn. Bhd. (561663-U) ES-25 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

study of this cave was conducted by William Hunt in 1951 and also Noone in 1936. Two other caves, Gua Jaya and Gua Chawan, which are located at the meeting point (confluene) between the Sg. Jenera and the Sg. Nenggiri, also have their own specific functions. Gua Chawan was used as the worksite to produce Hoabinhian stone tools while Gua Jaya was found to contain thousands of earthenware fragments used for cooking, storing food or storing clean water. Lamb and Peacock (1963) and Adi Taha (1994-95) were among those who had conducted previous excavations on these sites. Studies involving secondary sources and fieldwork surveys aided by the use of the GARMIN RINO 650 GPS have re-recorded the prehistoric archaeological sites in the Sg. Nenggiri River basin that are expected to be significantly impacted by the construction of the Nenggiri dam. This study is also based on the guidelines of the National Heritage Act 2005 (Act 645), wherein the list of Heritage Registration and National Heritage Registration is also being referred. The most important site in the Sg. Nenggiri river basin is Gua Cha, and this cave has been registered in the Heritage Registration under the registration number of GUA CHA P.U. (B) 292 16 June 2016. This registration enables Gua Cave to be protected under the National Heritage Act 2005 and the Gua Cha Protection Plan that prohibits any development activities in the area should include the Core Zone and Buffer Zone areas. Other prehistoric sites have not yet been registered in the Heritage List but the importance of these sites as heritage sites containing valuable archaeological data is irrefutable. Among these sites in the study area are Gua Peraling, Gua Jaya and Gua Chawan, whereas other caves such as Gua Lembu and Gua Dala were found to have no archaeological potential.

 This study or survey has also found new prehistoric archaeological sites which have high archeological potential. These sites are close to Pos Pulat while some others are close to the main dam. Among the new sites found include Gua Keledung, Gua Cahaya, Gua Kecil (Stone Add), Gua Lubang Kelewar (Stone Add), Gua Perdang, Gua Rahmat, Gua Kemiri and Gua Tok Batin located in Mount Kemiri near the main dam. Among the caves, Gua Lubang Kelewar, Gua Kecil, Gua Kemiri, Gua Perdang, Gua Tok Batin and Gua Keledung have high archaeological potential. Among the surface artifacts discovered were stone tools, pottery fragments and food remains such as the shells of freshwater snails. The two caves, Gua Kecil (Stone Add) and Gua Lubang Kelewar (Stone Add) also have very interesting cave drawings using charcoal. The drawings found in both cave sites were more substantial than those found in the previous caves that also have cave drawings. Other caves such as Gua Rahmat, Gua Cahaya and Gua Janggut do not have much archaeological potential.

 Based on the Lidar altitude data, most of these prehistoric archaeological sites will be submerged in water when the Nenggiri dam project is completed. Although the prehistoric sites would not be destroyed and are only drowned, is would be very difficult indeed to carry out further studies to acquire the valuable archaeological data in the future. High-potential archaeological caves such as Gua Cha, Gua Chawan, Gua Peraling, Gua Kecil (Stone Add), Gua Lubang Kelewar (Stone Add), Gua Perdang, and Gua Keledung will be flooded by the dam reservoir water. The only caves expected to be safe are Gua Jaya, Gua Kemiri and Gua Tok Batin. However, the position of Gua

UKM Pakarunding Sdn. Bhd. (561663-U) ES-26 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

Kemiri and Gua Tok Batin, which is very close to the main dam, is questionable as to whether this cave will be safe or not from inundation. In this regard, during site preparation and earthworks, archaeological excavation rescue works are compulsory at these significant sites prior to being inundated by water. For the other caves such as Gua Cha, Gua Chawan, Gua Peraling, Gua Kecil (Stone Add), Gua Lubang Kelewar (Stone Add), Gua Perdang, Gua Keledung it would be necessary to perform rescue excavations in order to salvage all valuable archaeological data in the form of artifacts, ecofacts and features. A special place to showcase all these artifacts, ecofacts and features should be built at a suitable site not affected by the construction of the dam.

 During quarry and logging activities, there may be new discovery of potential Neolithic sites located along the stream or river estuary. The work activities will destroy the archaeological sites if there is no vigilant monitoring conducted during this stage. Any quarry activities involving cave hills should be reported first to the archaeologists in order to ascertain whether the cave concerned has any archaeological potential or not. Mitigation measures that can be undertaken include ongoing monitoring of the possibility of discovering newly opened archaeological sites associated with the logging and quarry activities. During the impoundment and dam operations, most of the archaeological sites will be submerged. Any non-sunken archaeological site should be preserved and the site registered under the Heritage List. The Hulu Kelantan Prehistoric Archaeological Gallery is also proposed to be created in the Gua Musang area to showcase all the artifacts, ecofacts and features obtained during the rescue excavation of the submerged caves. Heritage Tourism activities should also be intensified by involving the local community and making the prehistoric community caves as one of the tourist attractions, irrespective of whether the site is located in the dam reservoir area or outside the dam area. Signboards showing the submerged archaeological sites are also proposed to be placed at the top of the hills where these caves are located.

ECOTOURISM  Ecotourism is often initiated as the catalyst for both development and conservation purposes in many developing countries. The existence of ecotourism sites has always been in the rural and remote areas. In fact, ecotourism has been closely associated with the aboriginal tribes residing in the remote areas. However, ecotourism has also been affected by the rapid development of mega project initiatives such dam and resort developments. In the study area, it is argued that the Nenggiri Hydroelectric Dam development will be impacting ecotourism with a degree of loss in terms of values of various aspects of the local community life as well as the natural habitat of the people. This study aims to investigate the community responses on the impact of proposed hydroelectric dam on the ecotourism of the Nenggeri area. A survey was carried out in March, 2017 aimed at gauging the awareness and perception of the community within 5 km radius that circumscribes the outer boundary of impact zone of the proposed project. The primary data were gathered through a questionnaire survey directed towards 320 respondents who were mainly heads of households.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-27 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

 The findings show the community concern on ecotourism attractions and the impact on their livelihood, economic and cultural tradition. From the mean values of the attractions, the community seems to have appreciated their assets highly. Of all the attractions of habitat, ranging from the forest, rivers, waterfall to the panoramic attraction, the mean values are above 2.0 and above average means. To the community, the natural setting have provided them with ample resources for ecotourism, even though the actual tourism activities are taking place at a slow pace compared to other sites in the state of Kelantan. Meanwhile forest attraction can be found at indigenous villages where they are individuals who are mostly exposed to nature. Other than that, the uniqueness of plants (flora) in the karst (limestone) ecosystem of Gua Musang can be used as a tourist attraction as many valuable herbs and traditional medicine such as the famous aphrodisiac Tongkat Ali (Eurycoma longifolia) can be found here. Besides, the Forestry Department has found two types of hyper-endemic plant species in Gua Musang, namely Balai (Schefflera calcicola) and Rukam (Scolopia steenisiana) which are being threatened by habitat loss. Nevertheless, the attraction of caves in Gua Musang was perceived to have the lowest score, with only 28.4% respondents agreeing to this attraction. The two archaeological caves along the Nenggiri River, i.e. Cha Cave and Peralen Cave in particular, had been losing their status as a unique tourist site due to poor promotional campaign.

 In terms of involvement of the community in tourism sector, majority of the respondents said that they were not involved in tourism (66.3%) because of their lack of knowledge on how to engage in the tourism sector. Only one third of the total respondents confirmed their involvement in the tourism sector. This includes being a tourist guide, selling and making of the local handicrafts, providing the accommodation and cultural shows. Among the range of job opportunities, the highest is being the tourist guide and running a restaurant, each of which records 25.3%, respectively. It is quite surprising that involvement with the forest such as selling forest products and herbs by the Orang Asli communities is scored at only 15%.

 The communities are also asked about their concern regarding the proposed project and the impacts on the ecotourism as their source of income and livelihood. They are asked whether or not ecotourism should be pursued or developed in their proposed new resettlement area. With regard to having/holding consultations on the proposed resettlements among the respondents, the responses are deemed unsatisfactory. Only a small percentage of the respondents answered ‘Yes’ (13. 4%) compared to those who answered ‘No’ and ‘Not Sure’ (31.9 and 54.7%, respectively). On the cultural asset, the highest mean was the dance, traditional games and the village itself. The respondents agree that their cultural tradition can still be their specialities. The traditional dance can also be performed by the Orang Asli when they have ritual ceremonies, while the Malays can still perform Tarian Ulek Mayang at a wedding ceremony. However, when looking at the least cultural practice at the proposed new settlement, many singled out the lifestyle (1.069%) especially for Orang Asli. The reasons are indeed closely related to their loss of the roaming areas; and to them, set the constraints of collecting forest products and food.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-28 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

 The perceived benefits of their concern are especially directly related to socioeconomic and only a little concern on other benefits. This is shown when the lowest mean for the perceived benefits are about preserving culture, customs, lifestyle and values (3.36%). This is because the local communities will be moved to a new place and the existing culture cannot be fully preserved. On the physical impacts during the construction phase of the dam, the community are concerned on the erosion. They expressed when soil erosion occurs and runoff sediment loads could discharge into the Sg. Nenggiri, adversely affecting its water quality and aquatic life. The construction activities also cause concerns on public safety due to the risks of road accidents and traffic congestion, since many heavy vehicles would be plying the access roads to transport construction material and wastes and passing through the settlement areas. The respondents perceived that the highest environmental impact is on the earth surface (44.1%) mainly due to pollution, especially to rivers and water resources. The landscape will also be affected due to the construction activities. About 31.6% of the respondents agreed that historical and archaeological sites and buildings would be adversely affected by the dam project. On a similar vien, the respondents (40.3%) also perceived that the peace and tranquillity of the place and the community would be adversely affected during construction phase of the project.

 While agreeing to the impacts, the suggestions by the respondents are: the provision of needed basic amenities and facilities to ease their daily lives; increase in job opportunities that can generate monthly income; ensuring a safe environment; and safeguarding the traditions of the Orang Asli community at the relocated new settlement. This includes maintaining sufficient forest cover because their source of daily income is dependent of forest products. Finally, the local communities have high hopes that the dam project will not deprive them of their future livelihood, and that they might not be marginalised from the mainstream development. This is because since time immemorial they have always been an essential part of Nenggiri and the state of Kelantan.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-29 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

ECONOMIC VALUATION OF ENVIRONMENTAL IMPACTS  The construction and operation of the dam is expected to positively contribute towards the national economy by further enhancing power generation and supply through renewable source. Project implementation will, however, give rise to negative environmental impacts that cannot be completely mitigated thus justifying the need to quantify the degradation in services obtainable from the disturbed natural environment. The main goal of the EVEI is to provide quantification in monetary terms the negative (or loss) and positive (or gain) in services obtainable from the environment. This valuation exercise allows for the appreciation of the significance of the environmental values of the services that will be gained or lost due to project implementation. This study adopts the impact pathway approach (IPA) where the physical environmental impacts are linked to an economic valuation process.

 Five environmental impacts have been identified to be potentially significant to be considered for evaluation. These are removal of forest vegetation, the loss of land planted with oil palm, degradation of water quality that feeds into an intake point, and degradation in water quality that affects the quality of river-based recreational site/s. Of the 5 potential changes in environmental services, two are considered to be significant enough for evaluation. These are changes due to i) removal of forest vegetation, and ii) the loss of land planted with oil palm. After discounting at the rate of 4%, the total present value of the stream of net loss amounts to (-RM241.2) million over a 50-year period. When 6% and 8% rates of discount are used, the corresponding value are (-RM132.9) million and (-RM65.7) million respectively.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-30 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

DAM BREAK  The objectives of the Dam Break Study are to derive the dam break hydrograph for the main (MD), saddle (SD) and re-regulating (RR) dams, to simulate the dam break process based on several scenarios during a probable maximum precipitation (PMP) event and on a clear day (CD), and to develop flood inundation maps to show the extend of the flooding due to the dam break. A total of 5 possible scenarios of dam break incidents were simulated, i.e. the MD breaks after a PMP event occurred (PMP- MD), the SD breaks after a PMP event occurred (PMP-SD), the MD breaks on a CD (CD-MD), the SD breaks on a CD (CD-SD) and the RR dam break on a CD (CD-RR).

 The 2-D TREX dam break modelling produced the flood inundation maps and dam break hydrograph for all scenarios, i.e. CD-MD, CD-SD, CD-RR, PMP-MD and PMP-SD. The highest peak discharge of 224,608 m3/s is estimated at Kg. Chegar Atas, which is located just downstream of the main and re-regulating dams for PMP-MD scenario. The PMP-MD is the worst case scenario in this study. The impact of flooding is contained locally within the downstream of areas of the main and re-regulating dams. This condition is contributed by the existence of low-lying areas that act as a pond and store up the flood water after the dam break incident. Minimal impacts are observed in Jerek and Dabong, which are located further downstream of the main and re- regulating dams. Therefore, it is concluded that the impact of dam break for other scenarios, i.e. CD-MD, CD-SD, CD-RR and PMP-SD will also be contained within the downstream areas of the dams. Additionally, the simulation results also show that it takes between 2 and 3 days for the discharge to be constant after a dam break incident. The CD-RR scenario causes minimal impact to Kg. Star and Kg. Chegar Atas, i.e. 0.6 m of MID on the floodplain.

RISK ASSESSMENT  Based on the study of the dam project, the average individual risk posed during construction and installation phase is 1.16 x 10-4 fatalities per person-year. The average individual risk posed by the proposed Nenggiri Dam is 2 x 10-5. In both cases the levels are higher than the involuntary risk of 1 x 10-6 fatalities per person-year set by the DOE. However, the value obtained for the project is more towards involuntary risk of 1 x 10-5. The argument is that the level obtained is an appropriate value for the type of project under study. In fact, the historical data quoted also confirmed that the level of individual risk should be within the results obtained and therefore, should be acceptable.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-31 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

LAND DISTURBING POLLUTION PREVENTION AND MITIGATING MEASURE  For the purpose of this conceptual LDP2M2, topographic data as provided by LiDAR and satellite images are utilised to enable a plan to be formulated so that erosion, sediment and incidental pollution problems can be contained on-site; without causing deterioration of the water quality of the rivers in the area. The detailed LDP2M2 will be a further refinement of this conceptual plan for the areas concerned, and will need to be modified from time to time, to take into account the changes to the construction and actual conditions on the ground.

 The LDP2M2 covers the following areas:

o The Main Dam on Sg. Nenggiri o The Saddle Dam o The Re-Regulating Dam o The Excavation and Fill Area for the Reregulating Dam o The Quarry Sites o The Spoil Dump Sites o The 2,145 hectares of Deforestation for the Lake Inundation Area o The Access Roads o The Workers’ Accommodation Area (Labour Camp) o The Parking Sites for heavy machinery and dump trucks

 BMPs for erosion and sediment control have been designed in accordance with the current Guidelines for Erosion and Sediment Control in Malaysia (2010) manual, and are mainly from the following list:

o Buffer Zones; o Check Dams; o Collector Drains o Diversion Drains; o Earth Bunds o Erosion Control Blankets / Compost Blankets o Silt Fences; o Silt Traps; o Sediment Basins; o Pipe Slope Drains; o Rolled Fibre Mats (eg. Coir Log) o Water Turnouts / Bars

 The Buffer zones will be existing vegetated areas which will be left intact during construction works and especially for the logging activity for the inundated area. These will be zones fronting the rivers to filter out sediment from reaching the riverbanks

UKM Pakarunding Sdn. Bhd. (561663-U) ES-32 THE PROPOSED NENGGIRI HYDROELECTRIC PROJECT Executive Summary

during the construction period. In cases where the buffer zone is bare or bereft of vegetation, these will have to be restored through “Hydroseeding” or equivalent mulching cover (e.g. cleared brush from other areas).

 A combination of Bunds, Silt Fences, Earth Drains (Collector and Diversion Drains) and Bunds will be used to divert runoff around construction and logged areas to Silt Traps and Sediment Ponds. Check Dams will be used to slow down flow inside the drains where needed.

 Pipe Slope Drains will convey collected runoff, through pipes, down the slopes to avoid runoff directly flowing on the surface of such slopes. Sediment Basins will be provided for sub-basins to trap sediment before discharge to the river itself. These will be designed according to the Erosion and Sediment Control guidelines for Malaysia (2010) requirements.

 The BMPs are shown in the ESC plans. The plans may be modified as necessary at the detailed design stage where actual site conditions and final construction design are already made for the main structures of the project.

 When properly maintained, these measures should enable control of erosion, sediment and incidental pollution in the project area to comply with Department of Environment requirements.

UKM Pakarunding Sdn. Bhd. (561663-U) ES-33