Second Schedule

Environmental Impact Assessment Report

Volume I of VI

Linggi Base Sdn. Bhd.

Proposed Reclamation and Development of Kuala Linggi International Port (KLIP) at Kuala Linggi, Malacca,

June 2016

62801230-RPT-02 Rev.02

This report has been prepared under the DHI Business Management System certified by Bureau Veritas to comply with ISO 9001 (Quality Management)

LIST OF DOCUMENTS

VOLUME I: EXECUTIVE SUMMARY

VOLUME II: MAIN EIA

Chapter 1 Introduction Chapter 2 Statement of Need Chapter 3 Project Options Chapter 4 Project Description Chapter 5 Existing Environment Chapter 6 Evaluation of Impacts and Mitigation Measures Chapter 7 Environmental Management Plan (EMP) and Environmental Monitoring Chapter 8 Study Findings Chapter 9 References

DRAWINGS No 1 Project Location No 2 Land use 5 km No 3 Environmental Sensitive Area (ESA) 10 km No 4 Environmental Sensitive Area (ESA) 5 km No.5 Physical Monitoring Stations No.6 Biological Monitoring Station (Land) No.7 Biological Monitoring Station (Marine)

VOLUME III: APPENDICES A TO C

Appendix A Project Supporting Information Appendix B Initial Environmental and Coastal Assessment Appendix C Baseline Report

VOLUME IV: APPENDICES D TO F

Appendix D Air and Noise Modelling Report Appendix E Fauna Report Appendix F Socio-economic Impact Assessment (SIA) Study Report

VOLUME V: APPENDIX G

Appendix G Hydraulic Study Report

VOLUME VI: APPENDICES H TO M

Appendix H Navigation Study Appendix I Navigation Simulation Report Appendix J Quantitative Risk Assessment (QRA) Appendix K Economic Valuation (EV) Study Report Appendix L Health Impact Assessment (HIA) Study Appendix M Traffic Impact Assessment (TIA) Study

Proposed Reclamation and Development of Kuala Linggi International Port (KLIP) at

Kuala Linggi, Malacca, Malaysia

Executive Summary / Ringkasan Eksekutif

Prepared for Linggi Base Sdn. Bhd.

Represented by Commander Ramli Johari (Rtd.) Project Layout

Current Revision Approvals

Name / Title Signature Date Joanna Mary McCal; Malinda Auluck; Siti Prepared by JMM; MAU; SNF Jun 30, 2016 Nurulfirdauz Binti Hashim Reviewed by Tania Golingi TAG Jun 30, 2016

Approved by Tania Golingi TAG Jun 30, 2016

Classification Open Restricted Confidential

DHI Water & Environment (M) Sdn. Bhd. (535484-V) Kota Kinabalu Office • Tel: +60 88 260780 • Fax: +60 88 260781 Kuala Lumpur Office • Tel: +60 3 7958 8160 • Fax: +60 3 7958 1162 [email protected] • www.dhi.com.my

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Document Information Project No. 62801230 Proposed Reclamation and Development of Kuala Linggi International Port Project Title (KLIP) at Kuala Linggi, Malacca, Malaysia Subject Ringkasan Eksekutif / Executive Summary

Client Linggi Base Sdn. Bhd.

Document No. 62801230-RPT-02 Rev 02

Distribution Type of Data No of copies

Linggi Base Sdn. Bhd. Hardcopy 1

Department of Environment Hardcopy+Digital 48+1

DHI Water & Environment (M) Sdn. Bhd. Hardcopy 1

Document Revision History

Description of Change/ Rev Rev Date Prepared by Checked by Approved by Reason for Issue

01 20/6/2016 Draft EIA to Client SMH TAG TAG

02 30/6/2016 Submission to DOE SMH TAG TAG

The information contained in this document produced by DHI Water and Environment (M) Sdn. Bhd. is solely for the use of the Client identified on the cover sheet for the purpose for which it has been prepared. DHI Water and Environment (M) Sdn. Bhd. makes no representation, undertakes no duty, and accepts no responsibility to any third party who may use or rely upon this document or the information.

All rights reserved. No section or element of this document may be removed from this document, reproduced, electronically stored or transmitted in any form without the written permission of DHI Water and Environment (M) Sdn. Bhd.

© DHI Water and Environment (M) Sdn. Bhd.

DHI Water & Environment (M) Sdn. Bhd. (license registration only) 3A01 & 02, Block G, Pusat Dagangan Phileo Damansara 1, No. 9, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya, Selangor Darul Ehsan, Malaysia Tel: +603 7958 8160• Fax: +603 7958 1162• [email protected] • www.dhi.com.my

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EXECUTIVE SUMMARY

CONTENTS

1 Introduction...... 1 2 Project Description ...... 1 3 Existing Environment at Project Site ...... 4 4 Impact Assessment, Mitigation Measures and Residual Impacts ...... 9 5 Environmental Management Plan (EMP) and Environmental Monitoring ...... 23 6 Summary and Conclusions ...... 26

FIGURES

Figure 1 Location of the proposed Project in relation to the shoreline, state and international boundaries (see Drawings for A3 size figure)...... 2 Figure 2 Conceptual layout for the Kuala Linggi International Port (KLIP)...... 3 Figure 3 Summary of identified sensitive receptors within 5 km of project (see Drawings for A3 size figure) ...... 7 Figure 4 Summary of identified sensitive receptors within 10 km of project (see Drawings for A3 size figure) ...... 8 Figure 5 RIAM results during construction phase ...... 9 Figure 6 RIAM results during operation phase ...... 10

TABLES

Table 1 Summary of impact assessment during construction ...... 11 Table 2 Summary of impact assessment during operation ...... 17 Table 3 Summary of EMP components ...... 23

DRAWINGS

No 1 Project Location No 2 Land use 5 km No 3 Environmental Sensitive Area (ESA) 10 km

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Executive Summary

1 Introduction

This Environmental Impact Assessment (EIA) is for the project entitled the Proposed Reclamation and Development of Kuala Linggi International Port (KLIP) at Kuala Linggi, Malacca, Malaysia (“the project”).

The project proponent is Linggi Base Sdn. Bhd. (hereafter referred to as the ‘project proponent’). The contact details of the project proponent are as follows:

Linggi Base Sdn. Bhd. G35 & 135, Block 5 Laman Seri Business Park Section 13 401000 Shah Alam Selangor Darul Ehsan Malaysia Tel: 03 5510 0770

Fax: 03 5510 1771

Contact Person: Commander Ramli Johari (Rtd.)

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

DHI Water and Environment (M) Sdn. Bhd

3A02, Block G, Phileo Damansara 1 No.9, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya, Selangor, Malaysia Tel: 03 7958 8160 Fax: 03 7958 1162

Contact Persons: Tania Golingi (EIA Team Leader)………………………Email: [email protected] Syed Mohazri Syed Hazari (EIA Coordinator)……… Email: [email protected]

2 Project Description

The project is located at the northern boundary of the State of Malacca, near the river-mouth of Sg. Linggi, at the site shown in Figure 1. The project is within Kuala Linggi, District of Alor Gajah. It lies 35 km north of Malacca Town and 23 km south of Town in . The Malaysia-Indonesia International Border is located approximately 22 km from the project site while the Negeri Sembilan-Malacca State Boundary lies approximately 400 m to the north of the project. Some 50% of the proposed project footprint lies within the existing Kuala Sg. Linggi Port boundary. An extension of the port boundary is being sought to encompass the project. The project site access adjoins an existing road at Tg. Bt. Supai.

The reclamation will cover a total area of 620 ac (251 ha). It has a total length of 2.8 km along the shore, with a maximum width of 4.27 km towards the sea. At its nearest point, the reclamation lies approximately 300 m from the shoreline.

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Figure 1 Location of the proposed Project in relation to the shoreline, state and international boundaries (see Drawings for A3 size figure).

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The proposed project is a new port and marine industrial hub associated with the existing Kuala Sg. Linggi Port operations. It has been designed to become a major destination for shipping and trade, with additional potential for vessel repair and rig fabrication. The project will be an international port, consisting of a strategic liquid product storage terminal and jetty, shipyard, fabrication yard, general cargo wharf and ancillary facilities (utilities, amenity and security areas) (Figure 2). As required by the State of Malacca, the project also includes an area designated to the State Government.

All these facilities will be sited on reclaimed island, connected to the mainland via a bridge, with the following key components:

 Land reclamation of approximately 620 ac (251 ha);  Access bridge - 800 m long with a piled length of 522 m;  Liquid product jetty - 1.3 km in length; and  Capital dredging of 3 million m3 to -13 m CD along the shipyard and cargo wharfs.

These project components are proposed to be carried out in four phases over the course of approximately 10 years.

Figure 2 Conceptual layout for the Kuala Linggi International Port (KLIP).

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3 Existing Environment at Project Site

Physical Setting The project is an island reclamation lying approximately 500 m offshore of the mouth. The project site is located on shallow sub-tidal flats, with depths ranging from 0 m CD (lowest astronomical tide) close to the shoreline to - 8 m CD further out to the sea. This site was identified as the ideal area due to this shallow area suitable for reclamation adjoined by naturally deep water such that the minimum of dredging is required and deep water vessels can be berthed with as short a jetty length as possible.

Currents in the shallow areas of the project site are relatively weak with predicted mean current speeds below 0.3 m/s and maximum current speeds of up to 0.5 m/s. The current speed increases from the shallow to the deeper areas.

The island reclamation footprint lies approximately 300 m from the shoreline at its nearest point (the distance from the shoreline is between 250 to 375 m). The adjacent shoreline is a sandy beach that is currently experiencing erosion, with some stretches already protected by rock revetment.

The marine sediments in and around the project site were finer towards the north nearer to the Linggi river and coarser elsewhere, including the dredging area which comprised higher proportions of sand and gravel. The sediments in the dredging area are classed as clean overall; however, certain metals (cadmium, manganese, arsenic and mercury) were found to exceed at least one Sediment Quality Guideline limit at one or more stations.

The environment at the project site is shaped by the discharge from Sg. Linggi, and the met- ocean conditions within the Malacca Straits. The highest average river discharge occurs in November, followed by December. This coincides with the northeast monsoon which occurs between late October and early March. During this period the winds are predominantly from the north.

The lowest runoff occurs in the months of July and August, which partially overlaps with the southwest monsoon period between May and early September. During this period winds are predominantly from the south and wave conditions during the southwest monsoon are significantly higher than those occurring during other seasons.

The marine waters around the project site are generally quite turbid, with resuspension of fines from the seabed in shallow areas on each ebb tide. Suspended solids ranged from 2 to 35 mg/L at the time of the surveys. The estuarine water quality in Sg. Linggi has much higher nutrient concentrations compared to the marine waters, with some samples exceeding the Malaysian Marine Water Quality Criteria and Standard (MMWQCS) for estuarine waters. Faecal coliforms were also relatively high at both marine and estuarine stations, exceeding the MMWQCS class 2 limit.

Elevated levels of oil and grease where found at a number of locations; however total petroleum hydrocarbon concentrations were below detection limits. No heavy metal contamination was observed.

Human Environment The land use on the mainland adjacent to the project site is predominantly rural, with villages, landscape and village gardens. There are seven settlements within 5 km from the project area, with a predominantly Malay population. All villages have basic amenities and facilities.

There are a number of chalets along the Kuala Sg. Linggi beach opposite the project site that cater to local tourists, in particular anglers who carry out recreational fishing in the offshore waters.

A social survey carried out in an area encompassing a 10 km distance from the project boundary showed that almost half of the respondents (48%) perceived the project as bringing

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economic benefit to them. Approximately 43% of the respondents did not support the project, due to concerns about possible negative impacts on fishermen and environmental degradation. This is despite the fact that in the overall study area, only 7.4% are fishermen and aquaculture operators based on Department of Statistics data.

Based on the Alor Gajah District Local Plan 2020, the coastal area is gazetted as a tourism zone. In the Rancangan Struktur Negeri Melaka 2000 – 2020 (Malacca Structure Plan), the project area also lies within the area categorised as Potential Development Zone 1 which describes the zone as a main development area which is able to contribute to the state’s economy. The project is approved by the Malacca State government and will be incorporated into the new Structure Plan.

The project lies partially within the Kuala Linggi Port Limit, which presently extends from Tg Bt. Supai down to Tg.Bidara. Ship-To-Ship Transfer Operations and Linggi International Floating Transhipment and Trading Hub (LIGT-HUB) currently operates within the port limit, and the growth in demand for these existing activities is one of the key drivers for the present proposed project.

Biological-Ecological Environment Flora found along the coastline to the north of Sg. Linggi is predominantly mangrove, while south of the river (adjacent to the project site) mixed coastal vegetation lines the shoreline. The hinterland comprises plantation areas, primarily oil palm. Riverine mangroves line Sg. Linggi, which also support a higher diversity of mammals and other fauna compared to the coastal area immediately adjacent to the project site. The dominant mangrove plant species observed were Rhizophora spp. and Sonneratia spp. and frequently observed species included Avicennia spp., Bruguiera spp. and nipah.

Four terrestrial mammal species observed in the Linggi mangrove areas are totally protected under the Malaysian Wildlife Enactment 2010; these are the slow loris (Nycticebus coucang), leopard cat (Prionailurus bengalensis), oriental small-clawed otter (Aonyx cinerea) and smooth otter (Lutra perspicillata). The lowest mammal diversity was observed along the shoreline of Malacca (Tg. Batu Supai to Kuala Sg. Baru) due to the mainly residential landuse and more limited terrestrial vegetation compared to the Sg. Linggi and Negeri Sembilan shoreline

The avifauna in the study area, which includes the Linggi mangroves, has relatively high abundance and species richness. This is probably due to the large habitat variability (e.g. mangroves, mudflats, mixed vegetation, shrubs, oil palm plantation, rubber plantation and orchards) within the area. Surveys indicate that the project footprint is not a key foraging or roosting habitat for the birds. However, Tg. Tuan, located approximately 10 km north of the site, is an important bird area, and the mangroves of Sg. Linggi and along the Negeri Sembilan shoreline appear to be important in terms of habitat connectivity.

The project area and its surroundings from Tg. Selamat to Tg. Dahan was found to support areas of soft coral associated with patchy rocky / hard substrate. The distribution of these rocky areas is sparsely scattered over a large area of approximately 3,150 ha, including part of the reclamation footprint.

A small patch of hard coral was observed off Tg. Dahan, 3 km south of the project area, while a mixture of hard and soft corals were observed at Tg. Tuan. The nearshore waters around Tg. Tuan are part of a Fisheries Prohibited zone, and hence the coral habitats here are considered important fish habitat.

Apart from coral, three very small and discrete patches of seagrass were observed in the intertidal areas of the Tg. Bt. Supai embayment, less than 60 m from the shoreline and near the proposed access bridge for the project. The patches of seagrass were single-species - the two larger patches comprised Halodule pinifolia and a small patch comprised Enhalus acoroides. The absence of seagrass elsewhere is likely to reflect the turbid conditions, as seagrass is light limited with depth.

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Aquatic fauna of conservation significance reported at the site include the hawksbill turtle (Eretmochelys imbricata) and Painted Terrapin (Batagur borneoensis). The hawksbill turtles nest along the beaches in Malacca, including the beaches nearby the project site. The sites in the State which receive the most nests are Padang Kemunting, located 16-18 km south of the project site (18% of all nests), Pulau Upeh, located 40 km from the project site (18% of all nests), Kem Terendak (15% of all nests; approximately 25 km from the project site), and Pasir Gembur (10% of all nests; approximately 20 km from the project site.).

The Painted Terrapin is actually a freshwater turtle that inhabits parts of large rivers under tidal influence and the females migrate to coastal beaches for nesting. In Peninsular Malaysia, the Setiu and Paka Rivers in Terengganu are believed to harbour the largest nesting populations, followed by the Linggi, Pahang, Semerak and Kemaman Rivers. Nesting beaches in the Linggi area range from Kuala Linggi down to Tanjung Kling.

The population the Painted Terrapin appears to be depleted in Linggi River due to the large number of adults that have fallen prey to illegal traders. It is believed that the decrease in numbers is due to the human consumption of eggs and yet to be identified environmental stress.

A relatively large population of crocodiles in Sg. Linggi was observed during field surveys for the present EIA study. The population density along the downstream stretch of Sungai Linggi is estimated at 12.5 ind/km. The extensive mangroves in Sg. Linggi provide ideal breeding habitat for the crocodile.

No marine mammals were observed in the study area at the time of the surveys. However, nine species of marine mammals have been recorded within the Straits of Malacca waters which are protected under the Wildlife Conservation Act 2010. Previously recorded sightings in Malacca and Negeri Sembilan waters include the ginkgo-toothed whale (Mesoplodon ginkgodens), Indo-Pacific humpback dolphins (Sousa chinensis) and Irrawaddy dolphins (Orcaella brevirostris).

Fish Fauna and Fisheries Fish catch surveys carried out in the study area revealed a relatively high abundance of fish, shrimp and crab, including two horseshoe crabs. However, the commercial value of the fish species caught during the survey was generally low, with only up to 20% categorised as high commercial value species. The species caught in the highest number was the anchovy, Setipinna taty (ikan kasai), followed by the river perch, Johnius belangerii (ikan gelama). Fishermen also indicated high abundance of ikan gelama during interviews.

Within the study area for fisheries (10 km from the project site), 345 fishermen from Malacca and 263 fishermen from Negeri Sembilan were reported. Most of the fishing activities are conducted along the coastline from Pasir Panjang, Negeri Sembilan to Tg. Kling, Malacca. The main commercial capture fisheries are stingrays, shrimps, mussels/cockles and squid. Artificial reefs have been set up by the fishermen and scattered along the coastline. Based on the surveys carried out at the project site, fishermen reportedly earn an average of around RM 14,500 per annum.

Summary of Environmental Sensitive Receptors (ESR) The main sensitive areas within a 5 km radius of the project site include mangroves, corals, seagrass, turtle and terrapin landing sites. In terms of the human environment, sensitive receptors include the Linggi port limit, state boundary and fishing and population areas.

The location of all identified ESRs are shown in Figure 3 and Figure 4.

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Figure 3 Summary of identified sensitive receptors within 5 km of project (see Drawings for A3 size figure)

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Figure 4 Summary of identified sensitive receptors within 10 km of project (see Drawings for A3 size figure)

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Executive Summary

4 Impact Assessment, Mitigation Measures and Residual Impacts

The present EIA study covers the impacts arising from the construction and operations of the project, including the reclamation of land, capital dredging, construction of the jetty, construction of the access bridge and onshore facilities.

It should be emphasized that this EIA does not assess the impacts of the following activities, which will be assessed under separate approval processes:

 Disposal of the dredged spoil material at the designated spoil disposal ground; and  Borrow dredging (sourcing of reclamation fill material).

The assessed impacts and recommended mitigation measures are summarised in Table 1 and Table 2 for during the construction and operational phase respectively. Residual impacts are also indicated in this table, representing the expected impact significance or severity after all recommended mitigation measures has been implemented.

In addition, a summary of the overall impacts is presented based on the results of the Rapid Impact Assessment Matrix (RIAM) for the construction stage (Figure 5) and during operation (Figure 6). The RIAM results illustrate the culmination of the quantitative/semi-quantitative and qualitative assessment of the impacts during construction and operation phase documented in this EIA. These graphs show the number of issues or components that fall within each impact significance category, ranging from Major positive or negative impacts (+/- E) through to Slight positive or negative impacts (+/- A), or No changes (“N”).

The results show that, with mitigation, a significant number of negative impacts can be reduced to “No change” while the major negative impacts (-E and –D) are also minimised to Moderate (-C), Minor (-B) or lower significance.

Figure 5 RIAM results during construction phase

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Figure 6 RIAM results during operation phase

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Table 1 Summary of impact assessment during construction

Impact Significance – during construction Reference Page (Impact; Pollution Prevention and Mitigation Component Potential Impact Without mitigation With mitigation Mitigation Measures (Residual Impact) Measures; Residual Impact) Coastal Change to current, No change No change No mitigating measures required. 6-15; hydraulics water levels, and waves Coastal Sedimentation Minor negative impact Minor negative impact  As per water quality component. 6-24; 6-254; morphology  Sand nourishment between Tg. Che’ Amar and Tg. Bt. Supai to mitigate risk of erosion during Phase 1 reclamation. Water quality Suspended Moderate negative Minor negative impact Perimeter bunding with silt curtain and 6-37; 6-256; sediment during impact controllable outfall weirs / overflow gates at Phase 1, 2 and 3 the perimeter bund. Suspended Significant negative Minor negative impact Dredging rate should not exceed 20,000 m3. 6-50; 6-256; sediment during impact Phase 4 Hydrology and No impact No change No change No mitigating measures required. 6-92; drainage Air quality Airborne dust Minor negative impact Slight negative impact  Best management practices to reduce 6-98; 6-259; fugitive dust (e.g. water spraying on roads, constructing hoarding, covering lorry loads etc.  Open burning is strictly prohibited. Noise Noise emission Slight negative impact Slight negative impact  Working hours for high noise emitting 6-105; 6-260; activities limited to daytime.  Standard best management practices on maintenance, speed limit, etc. Terrestrial Noise and visual Slight negative impact Slight negative impact  Measures as per air and noise 6-112; 6-260; ecology disturbance to component. fauna  Avoid encroachment beyond the required working area.  Workers education and awareness on wildlife management.

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Impact Significance – during construction Reference Page (Impact; Pollution Prevention and Mitigation Component Potential Impact Without mitigation With mitigation Mitigation Measures (Residual Impact) Measures; Residual Impact) Loss of habitat No change No change No mitigating measures required. 6-113; 6-251; Avifauna Noise and Slight negative impact Slight negative impact  Mangrove beyond the project footprint 6-117; 6-261; increased marine shall not be disturbed / removed. traffic  Patrols to identify any accidental injury of wildlife.  A wildlife management response team is also to be established which includes an avifauna expert. Mangrove Suspended No change No change Mangrove beyond the project footprint shall 6-120; sediment and not be disturbed / removed. sedimentation Seagrass Loss of habitat Slight negative impact Slight negative impact No mitigating measures required. 6-128;

Benthic habitat Suspended Significant negative Minor negative impact  Control of suspended sediments as per 6-131; 6-261; sediment impact water quality component.  Marine working area and marine navigation management plan to be established to limit impacts beyond the working area. Turtle Light Moderate negative Minor negative impact Adherence to Dark Sky Association principles 6-151; 6-262; change & guidelines. Noise and vibration Minor negative impact Slight negative impact  Vessel speed limit. 6-153; 6-262;  Adherence to marine working area and marine navigation management plan. Increased physical Slight negative impact Slight negative impact  Use of turtle deflectors on all dredge 6-154; 6-262; interaction vessels.  Dredging to be scheduled outside of peak turtle season.  Impose 5 knot speed limit around working area.  Adopt Joint Nature Conservation Committee guidelines.

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Impact Significance – during construction Reference Page (Impact; Pollution Prevention and Mitigation Component Potential Impact Without mitigation With mitigation Mitigation Measures (Residual Impact) Measures; Residual Impact) Benthic habitat Slight negative impact Slight negative impact  Marine navigation management plan as 6-155; 6-262; disturbance per benthic habitat component.  Control of sediment plumes as per water quality component. Water quality Slight negative impact No change Adherence to strict and measurable HSE 6-155; 6-262; standards and implementation of IMO regulations. Suspended Minor negative impact Minor negative impact As per water quality component. 6-156; 6-262; sediment Loss of coral area Minor negative impact Slight negative impact As per benthic habitat component. 6-160; 6-262; Sand nourishment Minor negative impact Minor negative impact  Sand for proposed beach nourishment to 6-160; 6-262; have similar chemical and physical properties to existing beach sand.  Use of river sand preferable. Painted Turbidity, light, Significant negative Moderate negative  Schedule major nearshore construction 6-165; 6-263 terrapins noise and impact impact activities e.g. access bridge outside of construction peak terrapin nesting season. activities  Wildlife management response team to include a terrapin expert.  Create an environmental offset by contribution of funds to terrapin research programme. Crocodiles Noise, marine Slight negative impact Slight negative impact  Avoid encroachment of mangrove 6-173; 6-264; traffic, encounters beyond the project footprint. and suspended  Wildlife management response team to sediment observe and record any incidence of crocodile movement into the marine working area.  Workers education and awareness on wildlife management.  Erect “do not disturb crocodile” signage within the project construction area.

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Impact Significance – during construction Reference Page (Impact; Pollution Prevention and Mitigation Component Potential Impact Without mitigation With mitigation Mitigation Measures (Residual Impact) Measures; Residual Impact) Marine Noise and Moderate negative Moderate negative  Control of sediment spill as per water 6-174; 6-264; megafauna suspended impact impact quality component. sediment  Observations of the presence of marine megafauna within a 350 m radius around piling area prior to start. Alternatively, a soft start to piling may be considered. Fish fauna Suspended Moderate negative Minor negative impact Control of sediment spill as per water quality 6-177; 6-265; sediment and impact component. prohibited fishing area Plankton Change to water No change No change No mitigating measures required. 6-182; quality Suspended Minor negative impact Minor negative impact Control of sediment spill as per water quality 6-182; sediment component. Macrobenthos Loss of habitat Minor negative Minor negative impact No specific mitigation measures. 6-185; 6-264; Suspended Minor negative Minor negative impact Control of sediment spill as per water quality 6-186; 6-264; sediment component. Sedimentation No change No change No mitigating measures required. 6-187; Bioaccumulation Slight negative No change Fill material should have low levels of 6-187; 6-265; contaminants and low organic matter content. Integrated Cumulative effects Slight negative impact Slight negative impact No specific mitigation measures. 6-191; ecological to ecological impacts processes Socio Livelihood of Significant negative Moderate negative Proponent to provide compensation for 6-191; 6-265; economic fishermen impact impact disruption of fishing activity. Job opportunities No change Slight positive impact  Give priority to local residents for jobs. 6-192; 6-266;

 Provide skills training to interested locals

National job Minor positive impact Minor positive impact No mitigating measures required. 6-193;

opportunities

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Impact Significance – during construction Reference Page (Impact; Pollution Prevention and Mitigation Component Potential Impact Without mitigation With mitigation Mitigation Measures (Residual Impact) Measures; Residual Impact) Business Significant positive Significant positive No mitigating measures required. 6-193; opportunities impact impact Influx of foreign Significant negative Moderate negative  Temporary social facilities and amenities 6-194; 6-266; workers impact impact for the construction workers to be provided.  All foreign workers employed by the Proponent and all contractors shall possess valid permits in accordance to immigration laws and regulations. Tourism Moderate negative Minor negative impact Utilisation of chalets / homestays by working 6-195; 6-267; personnel and contractors to be encouraged. Health and safety Moderate negative Minor negative impact  Mitigation measures as per air and noise 6-195; 6-267; components.  Road signs to be erected signalling presence of heavy vehicles and speed limit. Aesthetics Minor negative Minor negative impact No specific mitigation measures. 6-196; All impacts - Establish community working group as 6-258; ongoing consultation and grievance mechanism. Health impact Air and noise Slight negative Slight negative impact No specific mitigation measures. 6-203; assessment Land traffic Traffic condition Minor negative No change Upgrade the access route on Jalan Kuala 6-228; 6-269; Linggi Port to a single lane road with 3.25 m lane width. Marine traffic Increase marine Slight negative No change Establish marine working area and vessel 6-241; 6-260; and navigation traffic management plan (including SOPs and EOP) in compliance with all marine department requirements including:  Providing a clear passage from the pilot boarding ground to the works area.  Install temporary navigation aids.

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Impact Significance – during construction Reference Page (Impact; Pollution Prevention and Mitigation Component Potential Impact Without mitigation With mitigation Mitigation Measures (Residual Impact) Measures; Residual Impact)  All vessel movements to the work area are under compulsory pilotage and under authority/ guidance of port control / vessel traffic control station.  All structures in the water ways must be well illuminated by night and clearly marked.  All reclamation and dredging vessels to be fitted with Automatic Identification System (AIS) transponders coupled with a Global Positioning System (GPS) receiver.  Frequent security patrols to ensure that fishing activities are not carried out in the project working areas and navigation routes to these areas.

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Table 2 Summary of impact assessment during operation

Impact Significance – during operation Reference Page Pollution Prevention and Mitigation (Impact; Component Potential Impact With mitigation Without mitigation Measures Mitigation (Residual Impact) Measures) Coastal Change in water No change No change No mitigating measures required. 6-16; hydraulics levels Change in currents Minor negative impact Minor negative impact No mitigating measures proposed. 6-18; Change in waves Minor positive impact Minor positive impact No mitigating measures proposed. 6-21; Coastal Reduction or Minor positive impact Minor positive impact No mitigating measures required. 6-26; morphology stabilisation of existing erosion Water quality Flushing capacity No change No change No mitigating measures required. 6-54; Salinity No change No change No mitigating measures required. 6-60;

Nutrients Minor negative impact Minor negative impact No mitigating measures proposed. 6-70; Oil spill Major negative impact Significant negative  Prepare and implement an oil spill 6-84; 6-259; impact contingency plan in line with the National Oil Spill Contingency Plan (NOSPC).  The OSCP shall target a reaction time of less than 60 minutes for oil spill during a tanker collision and less than 30 minutes for a loading arm failure. Ship ballast water No change No change Preparation and implementation of a ballast 6-90; 6-258; water and sediment management plan in accordance to IMO regulations. Wastewater Minor negative impact Slight negative impact Stormwater management: 6-91; 6-258;  Prevent surface runoff wherever possible. If not practical, runoff from process and storage areas to be segregated from less contaminated runoff.  Use of best available technologies e.g. installation of oil-water separators and grease traps, sump pits in tank pits,

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Impact Significance – during operation Reference Page Pollution Prevention and Mitigation (Impact; Component Potential Impact With mitigation Without mitigation Measures Mitigation (Residual Impact) Measures) appropriate disposal of sludge from stormwater collection system. Emission control at shipyard and fabrication yard to follow best management practices. Hydrology and Upstream flooding No change No change No mitigating measures required. 6-92; drainage Air quality Emission of Volatile Minor negative impact No change Use of best management practices and 6-100; 6-259; Organic abatement technologies e.g.: Compounds  Proper tank installation, quality control / (VOCs) assurance to ensure minimum venting of VOC.  Provide training for plant personnel in handling of volatile liquids during paint spraying.  Maintaining stable tank pressure and vapour space  Establish procedure for periodic monitoring of emissions from pipes, valves, seals, tanks and other infrastructure components with vapour detection equipment, with subsequent maintenance as needed. Noise Noise emission Minor negative impact Slight negative impact  Establish maintenance schedule for 6-108; 6-260; regular maintenance of heavy vehicles and machinery.  Silencer to be fitted to noisy equipment and enclosure of noisy equipment, when necessary.  Substitution of diesel motor to electric motor, where applicable. Terrestrial Noise and visual Slight negative impact Slight negative impact  Appropriate waste management to be 6-115; 6-260; ecology disturbance implemented to prevent the opportunistic feeding of ‘pest’ species.

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Executive Summary

Impact Significance – during operation Reference Page Pollution Prevention and Mitigation (Impact; Component Potential Impact With mitigation Without mitigation Measures Mitigation (Residual Impact) Measures)  Adherence to Dark Sky Association principles & guidelines for lighting. Avifauna Increased Moderate negative Moderate negative  Adherence to Dark Sky Association 6-118; 6-261; disturbance impact impact principles & guidelines for lighting.  Do not disturb any birds found within the project area. Loss of habitat Slight negative impact Slight negative impact No mitigating measures required. 6-119; Mangrove Sedimentation and Moderate positive Moderate positive No mitigating measures required. 6-121; change in impact impact morphology

Permanent habitat Slight negative impact Slight negative impact No mitigating measures required. 6-121; loss Oil spill Moderate negative Moderate negative Oil spill contingency plan as per water 6-124; impact impact quality component. Benthic habitat Oil spill Significant negative Moderate negative Oil spill contingency plan as per water 6-135; impact impact quality component. Habitat loss Slight negative impact Slight negative impact No mitigating measures required. 6-139; Turtle Presence of Significant negative Significant negative No specific mitigation measure is possible. 6-160; infrastructure impact impact Change in coastal Minor negative impact Minor negative impact No mitigation measures are proposed. 6-161; hydraulics and water quality Painted Change in water Major negative Moderate negative  Proponent to contribute funds to 6-169; 6-263; terrapins levels, current, impact terrapin research programme as an salinity, coastal environmental offset. morphology,  It is recommended that the State increase marine Government of Malacca develop a traffic, loss of Species Conservation Strategy for the habitat, oil spill Painted Terrapin in Malacca to ensure protection of remaining habitat in the State. Crocodiles No specific impact No change No change No mitigating measures required. 6-173;

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Impact Significance – during operation Reference Page Pollution Prevention and Mitigation (Impact; Component Potential Impact With mitigation Without mitigation Measures Mitigation (Residual Impact) Measures) Marine Loss of foraging Slight negative impact Slight negative impact No mitigating measures required. 6-175; megafauna habitat Oil spill Moderate negative Moderate negative Oil spill contingency plan as per water 6-175; impact impact quality component. Boat strike Minor negative impact Minor negative impact  Impose speed limit of 5 knots within 3 6-176; 6-264; km of the marine working area.  Accidental injury or strike of marine megafauna to be covered under emergency response plan. Fish fauna Loss of habitat Slight negative impact No change Proponent to establish artificial reefs. 6-178; 6-265; Salinity No change No change No mitigating measures required. 6-180;

Oil spill Significant negative Minor negative impact Oil spill contingency plan as per water 6-180; impact quality component. Plankton Water quality No change No residual No mitigating measures required. 6-183; Oil spill Significant negative Minor negative impact Oil spill contingency plan as per water 6-184; impact quality component. Macrobenthos Change in Slight positive impact Slight positive impact No mitigating measures required. 6-188; sediment texture Oil spill Moderate negative Moderate negative Oil spill contingency plan as per water 6-188; impact impact quality component. Integrated Cumulative effects No change No change No mitigating measures required. 6-190; ecological to ecological impacts processes Socio Livelihood of Major negative impact Significant negative  Compensation to fishermen. 6-197; economic fishermen impact  Prioritise fishermen in providing job and business opportunities (as below).

Job opportunities Minor positive impact Moderate positive  Prioritise local residents in providing job 6-197; 6-267; impact and business opportunities. Contracts to impose local content ruling.  Proponent to fund training for local community.

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Executive Summary

Impact Significance – during operation Reference Page Pollution Prevention and Mitigation (Impact; Component Potential Impact With mitigation Without mitigation Measures Mitigation (Residual Impact) Measures) Business Significant positive Significant positive  The local government should consider 6-198; 6-267; opportunities impact impact planning areas where local businesses can be set up to manage small-scale or informal services e.g. food stalls.  Proponent to fund training for local entrepreneurs. Cost of living and Significant negative Significant negative No mitigating measures required. 6-199; change in social impact impact fabric Tourism Moderate negative Minor negative impact  Promote/ encourage working personnel 6-199; 6-267; impact to stay at the chalets/ homestays; possibility of collaboration between project proponent and operators.  Adequate compensation if project cause losses to the businesses Health and safety Moderate negative Minor negative impact No mitigating measures required. 6-200; impact Aesthetics Minor negative impact Slight negative impact No mitigating measures required. 6-200; Health impact Air and noise Slight negative impact Slight negative impact Control of air and noise as per the air and 6-204; assessment noise component. Quantitative Probability and Moderate negative Minor negative impact Prepare an emergency response plan (ERP) 6-206; risk consequences of impact to include possible emergency scenarios assessment the possible due to the operation of the proposed project. accidents Prepare and implement standard operating procedures, including:  Ensure only fully trained and competent personnel are employed.  Safety procedures to ensure authorized access only to the project site with further restrictions in place to limit storage area access to approved persons only.

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Impact Significance – during operation Reference Page Pollution Prevention and Mitigation (Impact; Component Potential Impact With mitigation Without mitigation Measures Mitigation (Residual Impact) Measures)  Ensure tanks have enough headspace margin for the intake to be closed off in time.  Inspection and maintenance schedule for all protection systems.  Perform regular emergency response drills as well as feedback and review sessions with the local fire and rescue services for handling and controlling the worst case scenario. Land traffic Traffic condition No change No change No mitigating measures required. 6-234; Marine traffic Increase shipping Slight negative impact Slight negative impact Setup and enforce SOPs for marine related 6-241; 6-269; and navigation traffic activities in compliance with Rules, Regulations, Guidelines and other requirements of the relevant Malaysian marine authorities. Changes in No change No change No mitigating measures required. 6-241; currents in the existing navigation areas

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5 Environmental Management Plan (EMP) and Environmental Monitoring

This Environmental Management Plan (EMP) is prepared as a preliminary EMP specification where a Final EMP will be prepared post-EIA approval and before the commencement of any construction works. This allows comments during DOE review stage to be taken into consideration in the Final EMP together with the details of the appointed contractor and final construction methodology.

The main components of the EMPs are summarised in Table 3.

Table 3 Summary of EMP components

Component Monitoring Parameters Monitoring Frequency Monitoring Stations Performance Monitoring Suspended Before and during construction Pre-Construction 6 fixed stations Sediment  TSS  Daily for two (2) weeks 2 mobile stations at During construction each reclamation outlet location . Daily 2 online monitoring  Continuous online stations station During dredging During dredging 4 overflow samples  Monitoring of overflow and  Daily from each hopper load discharge water from  3 times a week dredger (model)  Forecast / Hindcast Model of plume dispersion Sewage During Operation During Operation STP outfall Treatment  Effluent discharge  Monthly Plant Compliance Monitoring

Suspended Evidence of construction of During reclamation and - Sediment perimeter bund when needed Inspection and maintenance of Monthly and after major - bund storm events Evidence of installation of silt During reclamation and - curtain when needed Inspection and maintenance of Throughout reclamation - silt curtain activity and when needed

Ambient Layout plan and photographs  At construction start - Water of the oily waste temporary and as required Quality storage area(s), garbage  Weekly site inspection disposal site and sewage facility at reclamation site

Log of scheduled waste During construction - disposal  As required Adequate and well-maintained During construction - sanitary provisions and waste  Monthly site inspection bins

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Component Monitoring Parameters Monitoring Frequency Monitoring Stations Discharge of oily wastewater Pre-Construction - into an oil separator. Managed  Include in tender as schedule waste During construction  As required Layout plan and photographs  At construction start - of temporary onsite diesel and as required storage at least 30 m from  Weekly site inspection waterfront Air Quality  Equipment/ vehicle During construction - maintenance log  As required  Road and site watering Layout plan and photographs At construction start - of wet dust suppression system and washing bay system  Layout plan and During construction - description of stabilisation  Monthly works  Site inspection of covered earth transporting lorries, wheels of vehicles using the washing bay and no open burning Public complaints on dirty As required - wheels of construction vehicles / open burning on site Emissions comply with the During operations - guidelines of the Environmental Quality (Clean Air) Regulations 2014. Noise Construction machinery fitted Machinery specifications with noise suppressors list included in contract Installation of enclosures At construction start and around power generators and when necessary other noisy machinery. Noise complaint register Per occurrence Turtles and Appointment of sea turtle and Prior to beach nourishment Terrapins terrapin specialists to advise (Phase 1) on beach design Establishment Wildlife Prior to construction Management Response Team including lead terrapin and sea turtle specialists Report of Terrapin Research During construction Programme funded by the  Annually Proponent A Species Conservation Strategy for Sg. Linggi terrapin population by the Malacca State Government recommended. Fishermen Establishment of Fishermen’s Prior to construction start/ Working Group then quarterly

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Component Monitoring Parameters Monitoring Frequency Monitoring Stations  To submit schedule to At construction start/ then Marine Department and quarterly include in the EMP report  To submit minutes of the consultations between fishermen working group and proponents. Impact Monitoring Water  In-situ, turbidity, TSS, During construction 4 marine stations Quality BOD, COD, O&G,  Monthly and 2 estuary nutrients and heavy stations metals During operation  Biannually for 1 year after commissioning Phase 4 and annually thereafter Coastal -  Once before 15 beach profiles Bathymetric construction starts Profile  Quarterly during construction stage  Biannually upon completion of Phase 4 construction Fish Fauna No significant decrease in fish During construction 7 stations fauna  Quarterly during reclamation and continuously for 2 years upon completion of Phase 4 During operation  Annually Turtle  Nesting volume  At least one baseline 8 beaches Nesting  Nesting success season (prior to construction start);  Incubation success  Construction phase – Turtle  Reports and statistics of annually for 10 years hatchling hatchlings departing construction period orientation  Reports on hatchling  Post-commissioning - and dispersal dispersal annually for 2 years evaluation Turtle Reports - maps and density During construction - tracking graphics for 5 satellite tracked  Annually for 10 years post-nesting sea turtles and 2 season post construction Turtle - light Ambient light levels at night  Baseline prior to 4 locations monitoring construction  During construction – quarterly  Suring operation – quarterly for 2 years Painted  Nesting survey A year-long monitoring 5 locations terrapins  Clutch size programme to be drafted  Mark and recapture

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Component Monitoring Parameters Monitoring Frequency Monitoring Stations Coral reefs Habitat health at 10 permanent  Baseline prior to 2 stations quadrats each station construction  Quarterly during reclamation  Quarterly for 1 year upon completion of each reclamation phase. Air Quality During construction During construction 4 stations

 PM10 and PM2.5  Quarterly During operation During operation

 PM10 and PM2.5  Annually  SOx, NOx, CO and VOC

Ambient LAeq, Lmax, L90 and L10  Baseline – once before Noise construction start  Construction – quarterly  Operations - biannually Fisheries Volume and species diversity  3 sample sets prior to 3 fish landing areas Activities construction and then monthly for 12 months  Construction – quarterly and 6 months upon completion  Operations - biannually Social  Community/ Community During construction - Impact Leaders Working Group  Quarterly (CWG)  Monthly during Phase  Grievance Mechanism 4  Socio economic feedback During operations monitoring programme . Biannually (interviews, stakeholder groups)

6 Summary and Conclusions

The location of this project places it in close juxtaposition to a number of environmentally sensitive areas. The nature of the reclamation is such that it will lead to an irreversible change in the area to be developed. The original physical, biological resources and productivity within the reclamation footprint will be lost permanently and this not only represents a loss of habitat but also part of an important fishery resource for the local fishermen.

The coastline fronting the project is actively eroding and this is leading to the loss of turtle nesting areas. It is concluded, however, that the reclamation footprint to create the port will diminish, if not reverse, this erosional process and facilitate the restoration of the beach. Apart from that, it is proposed that beach nourishment be carried out for the beach area fronting the project area as a mitigating measure to address potential erosion in this area during the course of the project construction.

One of the primary concerns during the reclamation and dredging works for the project is the impact of suspended sediments on the marine environment. This has been addressed through

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the control of production rate ensured by intensive compliance and impact monitoring in order to reduce impacts on corals and marine fauna to acceptable levels.

Another key issue that emerged from the assessments relate to the potential impact on sea turtles and painted terrapins. Both species are of international conservation significance and their conservation is a major concern for both Federal and State Governments. The impact assessment, for the painted terrapin in particular, has been hampered by the lack of knowledge of the biology, life-cycle and distribution of this species in the study area and beyond. While no severe impacts are predicted as a result of the changes to the physical environment, the impact assessment reflects the uncertainties surrounding the present conservation status of these key species and the likely impacts on them.

Impacts on the human environment relate primarily to the local fishermen. A range of mitigation measures have been proposed, including compensation, provision of artificial reefs, and training opportunities to ensure alternative resources or livelihoods are available to the affected fishermen. Other impacts to the wider community have been shown to be minor while the employment and entrepreneurial opportunities proffered by the project is expected to result in significant benefits to the local community as well as the state and national economy.

In conclusion, the EIA study has found that, with the incorporation of the recommended mitigation measures and implementation of the Environmental Management Plan, the project can be implemented with acceptable environmental impacts and risk and an overall positive outcome.

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D R A W I N G S

No 1 Project Location No 2 Land Use 5 km No 3 ESA 10 km