Hamriyah Independent Power Project Environmental and Social Impact Assessment October 2018 GE Energy Financial Services / Sumitomo Corporation Mott MacDonald Al Ghaith Tower Hamdan Street PO Box 47094, Abu Dhabi United Arab Emirates T +971 (0)2 401 5333 F +971 (0)2 627 0734 mottmac.com GE Energy Financial Services / Sumitomo Corporation Hamriyah Independent Power 395137 010 C Project Mott MacDonald Environmental and Social Impact Assessment October 2018 Mott MacDonald Limited. Registered in England and Wales no. 1243967. Registered office: Mott MacDonald House, 8-10 Sydenham Road, Croydon CR0 2EE, GE Energy Financial Services / Sumitomo Corporation United Kingdom Mott MacDonald | Hamriyah Independent Power Project Environmental and Social Impact Assessment Issue and revision record Revision Date Originator Checker Approver Description A 15/07/18 Project team R. Abou- G. Clamp First draft for client review Atieh B 22/07/2018 Project team R. Abou- G. Clamp Submission to EPAA Atieh C 25/10/2018 Project team R. Abou- G. Clamp Final - Amended with final Atieh marine survey results and responded to the EPAA and lender’s advisor comments Document reference: 395137 | 010 | C 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. We accept no responsibility for the consequences of this document being relied upon by any other party, or being used for any other purpose, or containing any error or omission which is due to an error or omission in data supplied to us by other parties. This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it. 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C onsequentl y M ott MacDonal d does not guarantee or warr ant the concl usi ons contained i n the repor t as there are li kel y to be differ ences between th e for ecasts and the actual results and those di ffer ences may be material. Whil e we consi der that the infor mation and opini ons gi ven i n this r eport are sound all parti es must rel y on their own skill and j udgement when making use of it. Under no circumstances may this report or any extr act or summar y ther eof be used in connection with any public or pri vate sec urities offering i ncluding any rel ated memorandum or prospectus for any securities offering or stock exchange listing or announcement. 395137 | 010 | C | October 2018 Mott MacDonald | Hamriyah Independent Power Project Environmental and Social Impact Assessment Contents Executive summary 1 1 Introduction 12 1.1 Overview 12 1.2 Project proponent 13 1.3 ESIA objectives 13 1.4 ESIA report structure 14 1.5 Climate change assessment and adaptation 15 2 Project description 16 2.1 Project requirements and justification 16 2.2 Project site selection and alternatives 16 2.3 Technology alternatives 16 2.4 Site location 21 2.4.1 Site condition, land use, and ownership 21 2.4.2 Geology, soil, and topography 26 2.4.3 Climate 26 2.5 Key project components 28 2.5.1 Overview 28 2.5.2 Cooling water system 29 2.5.3 Water supply system 31 2.5.4 Chemical dosing systems 32 2.5.5 Compressed air system 32 2.5.6 Continuous emission monitoring system 32 2.5.7 Power evacuation facilities 32 2.5.8 Infrastructure facilities 33 2.6 Project schedule 36 2.7 Decommissioning 36 2.8 Sensitive receptors 36 3 Legal and institutional framework 39 3.1 Introduction 39 3.2 National regulatory framework 39 3.2.1 UAE federal requirements and guidelines 39 3.2.2 Local environmental requirements and guidelines 40 3.2.3 National social legislation 41 3.3 International requirements 43 3.3.1 Equator Principles (EPs) 43 3.3.2 International Finance Corporation 44 3.3.3 Japan Bank for International Cooperation (JBIC) 46 395137 | 010 | C | October 2018 Mott MacDonald | Hamriyah Independent Power Project Environmental and Social Impact Assessment 3.3.4 Nippon Export and Investment Insurance (NEXI) 47 3.4 International and regional conventions and treaties 47 4 Impact assessment and evaluation of significance 49 4.1 Overview 49 4.2 Objectives of the ESIA report 49 4.3 ESIA methodology 49 4.3.1 Zone of influence 49 4.3.2 Assessment of impact significance 50 4.3.3 Mitigation and enhancement measures 51 4.3.4 Residual impacts 52 4.3.5 Uncertainties 52 4.3.6 Cumulative impacts 52 5 Air Quality 53 5.1 Introduction 53 5.1.1 Overview 53 5.1.2 Key pollutants 53 5.2 Methodology and assessment criteria 54 5.2.1 Area of influence 54 5.2.2 Baseline methodology 55 5.2.3 Construction phase 55 5.2.4 Operational phase 57 5.3 Legislative framework 64 5.3.1 Emission standards 64 5.3.2 Ambient standards 65 5.3.3 Summary 65 5.4 Significance of impacts 67 5.4.1 Construction phase 67 5.4.2 Operational phase 67 5.5 Baseline description 68 5.5.1 Overview 68 5.5.2 Baseline ambient air quality 69 5.5.3 Baseline concentrations used in the assessment 69 5.6 Assessment of impacts 70 5.6.1 Construction impacts 70 5.6.2 Operational phase 72 5.7 Mitigation, monitoring and enhancement measures 81 5.7.1 Construction phase 81 5.7.2 Operational phase 82 5.8 Residual impacts 82 6 Greenhouse gases (GHGs) assessment 84 6.1 Introduction 84 395137 | 010 | C | October 2018 Mott MacDonald | Hamriyah Independent Power Project Environmental and Social Impact Assessment 6.1.1 Objective of assessment 84 6.1.2 Sources considered 84 6.2 Greenhouse gas policy 84 6.2.1 International Finance Corporation (IFC) standards and guidelines 84 6.2.2 International policy 85 6.2.3 Local policy 85 6.3 Current greenhouse gas emissions - baseline 86 6.4 Assessment input data and methodology 86 6.4.1 Scope 86 6.4.2 Emission sources 87 6.4.3 Operating scenarios 87 6.4.4 Operational input data and methodology 87 6.4.5 Construction input data and methodology 88 6.5 Calculation of emissions 89 6.5.1 Overview 89 6.5.2 Estimate of GHG emissions 89 6.5.3 Discussion of GHG assessment results 90 6.5.4 Mitigation measures 91 6.6 Summary 91 6.7 References 92 7 Marine environment 93 7.1 Introduction 93 7.2 Methodology and assessment criteria 93 7.2.1 Study area and sampling locations 93 7.2.2 Seawater quality profiling and sampling survey 95 7.2.3 Sediment quality 96 7.2.4 Benthic infauna 96 7.2.5 Side-scan sonar and drop-down video 97 7.2.6 Fish population census 97 7.2.7 Intertidal survey 97 7.3 Assessment criteria 98 7.4 Legislative framework 100 7.4.1 Discharge standards 100 7.4.2 Ambient marine water quality standards 102 7.4.3 Sediment quality benchmarks 103 7.4.4 National and international treaties 106 7.5 Baseline description 106 7.5.1 Overview 106 7.5.2 Seawater quality and seawater sampling survey 106 7.5.3 Sediment quality 115 7.5.1 Marine habitat and ecology 122 7.6 Hydrodynamic modelling 140 7.6.1 Hydrodynamic modelling and recirculation study 140 7.7 Assessment of impacts 152 395137 | 010 | C | October 2018 Mott MacDonald | Hamriyah Independent Power Project Environmental and Social Impact Assessment 7.7.1 Construction 152 7.7.2 Operation 152 7.7.3 Decommissioning 160 7.8 Cumulative impacts 160 7.9 Mitigation, monitoring, and enhancement measures 161 7.10 Residual impacts 163 8 Soil, groundwater and land contamination 169 8.1 Overview 169 8.2 Methodology 169 8.3 Assessment criteria 171 8.3.1 Magnitude of impact 171 8.3.2 Sensitivity 172 8.3.3 Determining significance 173 8.4 Legislative summary 173 8.4.1 National legislation 173 8.4.2 International standards 173 8.5 Baseline description 174 8.5.1 Phase II – Soil and Groundwater Sampling and Assessment 174 8.6 Assessment of impacts 174 8.6.1 Effects during construction 175 8.6.2 Effects during