SMC Consolidated Power Corporation Limay Coal-Fired Power Plant Project Volume I: ESIA Non-technical Summary FEBRUARY 2016 Table of contents 1. Introduction..................................................................................................................................... 1 2. The Project ..................................................................................................................................... 2 2.1 Project components ............................................................................................................. 4 2.2 Project phases ..................................................................................................................... 5 3. Summary of environmental and social baseline conditions, impacts and mitigating measures........................................................................................................................................ 6 3.1 The Project and land resources ........................................................................................... 6 3.2 The Project and ecology ...................................................................................................... 7 3.3 The Project and water resources ......................................................................................... 9 3.4 The Project and air ............................................................................................................. 10 3.5 The Project and the people ................................................................................................ 11 4. Environmental and social management and monitoring .............................................................. 13 Table index Table 1 Main features of the Project ................................................................................................. 2 Figure index Figure 2-1 Project location .................................................................................................................... 3 GHD | Report for SMC Consolidated Power Corporation - Limay Coal-Fired Power Plant, 71/12155 | i 1. Introduction SMC Consolidated Power Corporation (SMC CPC) is undertaking the development of the Limay Coal-Fired Power Plant Project utilising the Circulating Fluidised Bed (CFB) Boiler technology in Barangays Lamao and Alangan in the Municipality of Limay, Province of Bataan. The Project is expected to have a total installed capacity of 600 MW, to be developed in two phases, each having a generation capacity of 2 x 150 MW. The Project includes the development of an ash storage facility to manage the wastes that will be generated by the power plant once operation starts. The Project was issued an Environmental Compliance Certificate (ECC), presented in Appendix A, by the Environmental Management Bureau of the Department of Environment and Natural Resources (DENR‒EMB) in 2014 following the submission of an Environmental Impact Statement (EIS) prepared by LCI Envi Corporation (LCI), which satisfactorily complied with the requirements of the DENR‒EMB under Presidential Decree 1586 (Establishing Philippine EIS System). Construction of Phase 1 of the power plant commenced in 2013 and full commercial operation of Phase 1 (i.e. both units) is scheduled in January 2017. SMC CPC has decided to seek funding for Phase 1 of the Project from international lending institutions, consisting of a project finance facility to be provided by Mizuho Bank, Ltd and Standard Chartered Bank, and SMC CPC’s equity. SMC CPC is required to prepare and submit an Environmental and Social Impact Assessment (ESIA), in accordance with applicable environmental and social performance standards such as Equator Principles (EP), International Finance Corporation (IFC) Performance Standards and World Bank (WB) Environment, Health, Safety (EHS) Guidelines, in order to meet the requirements of international lenders. SMC CPC has commissioned GHD Pty Ltd to undertake the additional studies required for the ESIA, and to develop the Environmental and Social Management System (ESMS), Environmental and Social Management Plan (ESMP) and Environmental and Social Action Plan (ESAP) of the Project in compliance with Philippine regulations and international finance requirements. The purpose of this ESIA is to identify and assess potential environmental and social impacts of the Project and ensure that the Project complies with relevant national and international standards, specifically the Equator Principles, IFC Performance Standards, and WB EHS general and industry-specific guidelines. This ESIA was prepared at the time when SMC CPC was roughly 19 months into project development. The report is a compilation of the documentation prepared by LCI to secure the Project’s ECC, project updates and development stages from the time the ECC was issued until December 2015 (i.e. preparation of this report), validation of findings onsite by GHD from March to November 2015, and additional studies to determine the cumulative impacts of the Project. Through these activities, the ESIA specifically aims to: Determine the current status of compliance of SMC CPC with applicable guidelines and standards to serve as a basis for establishing the acceptable incremental impacts from project-related activities Validate and assess baseline information against the environmental status during the construction and operation phases of the Project Identify environmental and social impacts and assess their significance Establish mitigation measures, as well as a monitoring program to address residual impacts after mitigation measures have been implemented GHD | Report for SMC Consolidated Power Corporation - Limay Coal-Fired Power Plant, 71/12155 | 1 Inform the community about the Project 2. The Project SMC CPC is currently developing a 600 MW coal-fired power plant utilising the CFB boiler technology. The Project is located in Barangay Lamao in the Municipality of Limay, Province of Bataan (Figure 1). It has a total land area of 47 hectares, 37 hectares of which is apportioned to Phase 1 and 10 hectares of which is apportioned to Phase 2. The ash storage facility has a total land area of 27.6 hectares. It is located two kilometres away from the power plant facility. The Project is situated within an industrial area owned by Petron and its subsidiaries, with the land area of the Project under the ownership of New Ventures Realty Corporation (NVRC) and the foreshore area of the Project currently leased to Grand Planters International Incorporated (GPII). The Project area is bounded on the north by Petron Bataan Refinery, on the east by Manila Bay, on the south by the fishing community of Barangay Lamao, and on the west by the Bataan Provincial Highway. The project will be developed in two phases, with Phase 1 and Phase 2 each having a generation capacity of 2 x 150 MW. The construction of the Project has commenced in the last quarter of 2013 and is roughly 19 months into project development at the time of the preparation of this report. The main features of the project are summarised in Table 1. Table 1 Main features of the Project Features Phase 1 Phase 2 Total Generation capacity 2 x 150 MW 2 x 150 MW 4 x 150 MW (MW) Technology 2 x CFB boiler 2 x CFB boiler 4 x CFB boiler Area 37 hectares 10 hectares 47 hectares Pier facilities 46 hectares 46 hectares (Foreshore Lease Agreement currently under application) Coal consumption Approximately 178 tons Approximately Approximately of coal per hour 178 tons of coal 356 tons of coal per hour per hour Freshwater requirement 1,600 m3/day 1,600 m3/day 3,200 m3/hour Cooling water 72,000 m3/hour 72,000 m3/hour 144,000 m3/hour requirement (sea water) Coal source Local and imported Local and imported Local and imported Ash storage facility 27.6 hectares 2 | GHD | Report for SMC Consolidated Power Corporation - Limay Coal-Fired Power Plant, 71/12155 238,500 239,000 239,500 240,000 240,500 241,000 241,500 242,000 242,500 243,000 243,500 244,000 uz & L g 2 an Kit gan Alan 1,608,500 1,608,500 1,608,000 1,608,000 SMC Project Site 1,607,500 1,607,500 Alangan Lamao 1,607,000 1,607,000 1,606,500 1,606,500 1,606,000 1,606,000 Lamao Batangas II 1,605,500 1,605,500 238,500 239,000 239,500 240,000 240,500 241,000 241,500 242,000 242,500 243,000 243,500 244,000 LEGEND onsolidated Power Corporation Job Number 71-12155 Paper Size A3 SMC C Limay Coal-Fired Power Plant Project Revision 0 0 250 500 SMC Project Site Environmental and Social Impact Assessment Date 19 Feb 2016 Metres Ash Storage Facility Map Projection: Transverse Mercator Barangays Horizontal Datum: WGS 1984 o Grid: WGS 1984 UTM Zone 51N SMC Project Site Figure 1 G:\71\12155\GIS\Maps\MXD\Rev0\7112155_2-1_ProposedProject_rev0.mxd 11/F Alphaland Southgate Tower, 2258 Chino Roces Avenue corner EDSA, Makati City 1232 Philippines T 63 2 479 5600 F 63 2 479 5601 E [email protected] W www.ghd.com © 2016. Whilst every care has been taken to prepare this map, GHD, NAMRIA, Google Earth and OSM make no representations or warranties about its accuracy, reliability, completeness or suitability for any particular purpose and cannot accept liability and responsibility of any kind (whether in contract, tort or otherwise) for any expenses, losses, damages and/or costs (including indirect or consequential damage) which are or may be incurred by any party as a result of the map being inaccurate, incomplete or unsuitable in any way and for any reason. Data source: GHD/SMC - SMC Project Site and Ash Storage Facility. NAMRIA - Barangays. Google