Thar Coalfields Block VI 2x330MW Coal-Fired Power Plant Non-technical summary (NTS) March 2017 Oracle Coalfields PLC Victory House Trafalgar Place Brighton BN1 4FY United Kingdom T +44 (0)1273 365000 F +44 (0)1273 365100 mottmac.com Thar Coalfields Block VI 366902 1 B 2x330MW . Coal-Fired Power Plant Mott MacDonald Non-technical summary (NTS) March 2017 Oracle Coalfields PLC Mott MacDonald | Thar Coalfields Block VI 2x330MW Coal-Fired Power Plant Issue and Revision Record Revision Date Originator Checker Approver Description A 3/10/2016 A Halcrow L Stone G. Clamp Draft B February J. Yasenko I. Scott I. Scott Final 2017 L. Stone Information class: Standard This document is issued for the party which commissioned it and for specific purposes connected with the above- captioned project only. It should not be relied upon by any other party or used for any other purpose. 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T his r eport is confi denti al and contains p r opri etar y intell ectual property. 366902 | 1 | B | March 2017 . Mott MacDonald | Thar Coalfields Block VI 2x330MW Coal-Fired Power Plant Contents 1 Introduction 1 1.1 What is this document? 1 1.2 Who is developing the project? 1 1.3 Where can I find more information on the Project? 1 2 Summary of the Project 2 2.1 Where is the Project to be located? 2 2.2 Why is the Project needed and what alternatives were considered? 4 2.3 What will the Project consist of? 4 3 Managing Environmental and Social Issues 6 3.1 What project activities could affect the environment and people? 6 3.2 How was the Project assessed? 6 3.3 How will people and the environment be affected? 7 3.3.1 Impacts on people 7 3.3.2 Impacts on the natural environment and resources 9 3.4 Construction of associated facilities 11 3.4.1 What infrastructure will be required to support the Project? 11 3.4.2 Will associated facilities have any impacts on people and the environment? 12 4 Managing Environmental and Social Impacts 13 4.1 How will environmental and social impacts from the Project be managed? 13 366902 | 1 | B | March 2017 . Mott MacDonald | Thar Coalfields Block VI 2x330MW Coal-Fired Power Plant 1 1 Introduction 1.1 What is this document? This document is a non-technical summary (NTS) which presents the findings of the environmental and social impact assessment (ESIA) completed for a new coal-fired power plant to be developed in the Thar coalfields in the province of Sindh, Pakistan. The power plant will provide 2 x 330 megawatts of electricity using lignite coal. An ESIA and supporting documents, including an environmental and social management and monitoring plan were prepared to assess the potential environmental and social impacts of the project and any measures that would be needed to reduce or eliminate any significant impacts. The ESIA was carried out in accordance with national legislation and where applicable, international methodologies have been used to assess whether the project met the relevant environmental and social standards. 1.2 Who is developing the project? Pakistan currently imports much of its fuel to produce electricity to power homes and businesses. Electricity demand outweighs supply in Pakistan and so the Government of Sindh is considering all available options for power generation. The Government of Sindh is keen to pursue coal to power generation as it is believed to be one of the least costly options for Pakistan. To address the need for new power infrastructure, Oracle Coalfields PLC (‘the Developer’) has been appointed to develop the project. 1.3 Where can I find more information on the Project? The ESIA process has been informed by consultations, which set out the proposed approach for the assessment and then to inform interested groups of what the potential environmental and social impacts of the project may be and how these impacts would be managed. This NTS represents Volume I of the overall ESIA, which comprises four volumes in total: ● Volume I: Non-technical summary (this volume) ● Volume II: Environmental and social impact assessment ● Volume III: Technical appendices ● Volume III: Environmental & social management and monitoring plan 366902 | 1 | B | March 2017 . Mott MacDonald | Thar Coalfields Block VI 2x330MW Coal-Fired Power Plant 2 2 Summary of the Project 2.1 Where is the Project to be located? The Project will be located in the south-east corner of the Sindh Province, which is in south- eastern Pakistan. This area is known as the Thar Desert and part of the locality has been identified as a zone for development, divided into plots known as Blocks. The Project will be constructed in Block VI located in the southern part of the Thar Coalfield adjacent to Block II. Block VI covers an area of approximately 66 square kilometres (km) and is situated approximately 380km north-east of Karachi, 20km north-east of Islamkot, and 77km east of Mithi. More specifically, Block VI is situated within the district of Tharparkar which is a sub-district of Mithi. Two main villages, Ranjho Nun and Kharo Jani are located within Block VI, with other smaller villages located in and around the area. The area is accessed by a road which extends from Karachi to Singharo and goes through the towns of Badin and Mithi. Figure 1 shows the project setting, Figure 2 shows the location of Block VI, and Figure 3 shows the regional setting. Figure 1: Project setting Source: Mott MacDonald 366902 | 1 | B | March 2017 . Mott MacDonald | Thar Coalfields Block VI 2x330MW Coal-Fired Power Plant 3 Figure 2: Location of Block VI Source: Mott MacDonald Figure 3: Regional location of Block VI Source: EIA for Block VI Lignite Mining Project, Hagler Bailly, Pakistan, 2013 366902 | 1 | B | March 2017 . Mott MacDonald | Thar Coalfields Block VI 2x330MW Coal-Fired Power Plant 4 2.2 Why is the Project needed and what alternatives were considered? The development of the Thar Coalfield and the associated establishment of coal to power projects are major objectives of the Government of Sindh, to achieve increased power production, with associated economic growth to ultimately reduce poverty in the country. The key aspects considered as alternatives for the Project as follows: ● No project alternative ● Location of the Project ● Options and alternatives for key technical and process aspects of the Project Pakistan’s energy demand continues to grow, and as such, the “no project” alternative is not considered feasible. The Project will generate 660 megawatts of electricity, which will contribute towards bridging the gap between electricity supply and demand, with coal to power generation being one of the least costly options. The Project will be developed within a designated strategic area for lignite/coal to power generation. The chosen location provides access to infrastructure being developed by the government and has easy access to a lignite/coal. Circulating fluidised bed boiler technology has been selected as it is very efficient and significantly reduces releases of nitrogen dioxide pollutants into the atmosphere as a result of low temperatures at which combustion takes place. Other technology alternatives considered relate to the power plant cooling system and the emission of small particles and sulphur oxides. Coal/lignite is the most appropriate fuel for the Project given its abundance in the Thar region. 2.3 What will the Project consist of? Thermal power plants generate electricity by burning fuel (in this instance lignite), which heats water to generate high temperature, high pressure steam, that is subsequently used to drive a steam turbine. At one end of the steam turbine is a condenser. As steam passes from the boiler to the condenser, it passes through the steam turbine causing the turbine blades to rotate and electricity to be generated. The key components of the Project within Block VI include: ● Coal storage yard and coal conveyor ● 2 x 330 megawatt generation units ● A substation that will connect to an existing 500 kilovolt transmission line ● One 210 metre exhaust stack ● Cooling water system ● Ash yard (temporary storage) ● Ash disposal area ● Access roads ● On-site accommodation, office facilities fire station, workshop and open materials storage area Figure 4 provides an illustration of the Project once constructed. The coal stockyard is in the foreground with a conveyor delivering coal to the boiler in the centre and the 2 x 330 megawatt units. The two cooling towers will be located to the rear of the main plant. 366902 | 1 | B | March 2017 . Mott MacDonald | Thar Coalfields Block VI 2x330MW Coal-Fired Power Plant 5 Figure 4: 2 x 330MW power plant conceptual view Source: SEPCO 366902 | 1 | B | March 2017 .