LNG to Power Project, El Salvador Prepared For: Cumulative Impact Assessment – Draft December 2018 Environmental Resources Management 1776 I Street, NW Suite 200 Washington, DC 20006 www.erm.com The world's leading sustainability consultancy. LNG to Power Project, El Salvador Cumulative Impact Assessment December 2018 Ricardo Calvo, PhD Partner Environmental Resources Management 1776 I Street, NW Suite 200 Washington, DC 20006 202.466.9090(p) 202.466.9191(f) http://www.erm.com ERM Draft Cumulative IA - December 2018 TABLE OF CONTENTS Executive Summary ............................................................................................. ES-1-3 1. Introduction .......................................................................................................... 1-4 2. Objectives and Scope ............................................................................................ 2-6 3. Methodology ......................................................................................................... 3-6 Key Terminology for the CIA........................................................................ 3-6 Overall CIA Approach .................................................................................. 3-7 Limitations .................................................................................................... 3-8 Determination of Spatial and Temporal Boundaries ....................................... 3-8 Identification of VECs, Other Projects, and External Drivers ....................... 3-10 3.5.1. VECs ................................................................................................ 3-10 3.5.2. Other Projects ................................................................................... 3-11 3.5.3. External Drivers ................................................................................ 3-12 Description of VEC Conditions ................................................................... 3-12 Assessment of Cumulative Impacts on VECs .............................................. 3-12 Cumulative Impact Management Framework .............................................. 3-13 4. Other Projects and External Drivers ................................................................. 4-13 Other Projects .............................................................................................. 4-13 External Drivers .......................................................................................... 4-32 4.2.1. Climate Change and Natural Hazards ................................................ 4-32 4.2.2. Coastal Solid Waste Pollution ........................................................... 4-32 5. VEC Selection and Description .......................................................................... 5-33 Selection of VECs ....................................................................................... 5-33 VEC Description ......................................................................................... 5-34 5.2.1. Terrestrial Biota (flora and fauna) ..................................................... 5-34 5.2.2. Coastal-Marine Biota (flora and fauna) ............................................. 5-37 5.2.3. Land Traffic ...................................................................................... 5-39 5.2.4. Livelihood from Artisanal Fishing .................................................... 5-40 5.2.5. Air Quality ........................................................................................ 5-41 5.2.6. Noise and Vibration .......................................................................... 5-42 5.2.7. Marine Water Quality ....................................................................... 5-43 6. Assessment of Cumulative Impacts.................................................................... 6-44 7. Cumulative Impacts Management Framework................................................. 7-50 Project Level ............................................................................................... 7-50 Regional Level ............................................................................................ 7-50 8. References ........................................................................................................... 8-51 ACRONYMS ERM i Draft Cumulative IA - December 2018 AOI area of influence BOD biochemical oxygen demand CEPA Comisión Ejecutiva Portuaria Autónoma (Autonomous Port Commission) CIA cumulative impact assessment CO carbon monoxide COD chemical oxygen demand EHS environmental, health and safety ESIA environmental and social impact assessment EDP Energía del Pacífico Ltda. de C.V. FSRU floating storage regasification unit GHG greenhouse gases HRSG heat recovery steam generators IFC International Finance Corporation IUCN International Union for the Conservation of Nature km kilometer kV kilovolt LNG liquefied natural gas m meter MAG Ministerio de Agricultura (Ministry of Agriculture) MARN Ministerio de Ambiente y Recursos Naturales (Environmental and Natural Resources Ministry) MPA Marine Protected Area MW megawatt NOX nitrogen oxides PAC project-affected communities PM particulate matter PS Performance Standards PV photovoltaic SO2 sulfur dioxide TL transmission line VEC valued environmental component VOC volatile organic compounds ERM ii Draft Cumulative IA - December 2018 LNG to Power Project Draft Cumulative Impact Assessment EXECUTIVE SUMMARY To be completed for the Final version. 1-3 LNG to Power Project Draft Cumulative Impact Assessment 1. INTRODUCTION Energía del Pacífico Ltda. de C.V. (EDP) is seeking financing for the construction and operation of a liquefied natural gas (LNG) to power project in El Salvador (the Project). The Project will involve the construction and operation of: • Power Plant (see Figure 1-1): a 378 megawatt (MW) thermal power plant at the Port of Acajutla in the Department of Sonsonate, a marine terminal for LNG delivery, storage, and regasification, and a natural gas pipeline that will run from a floating storage regasification unit (FSRU) to the power plant, and • Transmission Line (TL) (see Figure 1-2): a 44 kilometer (km), 230 kilovolt (kV) TL and related substations to connect the Power Plant to the electrical network of El Salvador. Source: EDP 2016. Figure 1-1: Project Power Plant Location 1-4 LNG to Power Project Draft Cumulative Impact Assessment Source: EDP 2017. Figure 1-2: Project Transmission Line Location This report discusses the cumulative impact assessment (CIA) conducted to evaluate the potential contribution of the Project towards the cumulative impacts on resources identified as Valued Environmental Components (VECs) by stakeholders. This report follows the International Finance Corporation’s (IFC’s) Good Practice Handbook— Cumulative Impact Assessment and Management: Guidance for Private Sector in Emerging Markets (“the Handbook”) (IFC 2013). The Handbook provides a methodology for identifying the most significant cumulative impacts. The methodology includes a desktop review of publicly available information and consultation with key stakeholders. This methodology focuses on environmental and social components referred to in the handbook as VECs, which are: (1) rated as “critical” by potential Project-Affected Communities (PACs)1 and/or the scientific community; and (2) cumulatively impacted by the Project under evaluation, by other projects, 1 PACs are defined as local communities potentially directly affected by the Project (consistent with IFC Performance Standard 1, paragraph 1 [IFC 2012a]). 1-5 LNG to Power Project Draft Cumulative Impact Assessment and/or by natural environmental and social external drivers (IFC 2013). The methodology applied herein is generally consistent with the relevant IFC Performance Standards (PS), especially PS 1—Assessment and Management of Environmental and Social Risks and Impacts, and PS 6—Biodiversity Conservation and Sustainable Management of Living Natural Resources (IFC 2012). 2. OBJECTIVES AND SCOPE The overall objective of this CIA is to identify and assess the contribution by the Project to cumulative impacts. The specific objectives are: • Identify VECs that could be impacted cumulatively in the onshore and offshore areas potentially affected by the Project, considering input from stakeholders and potential PACs through consultation process; • Identify other existing and planned projects and external environmental and social drivers that could cumulatively impact VECs; • Undertake a high-level assessment of potential cumulative impacts on VECs, considering the Project and the other identified existing and planned projects and external drivers in the area, identifying the contribution of the Project to the cumulative impacts; • Recommend a management framework for the integrated management of potential cumulative impacts. 3. METHODOLOGY KEY TERMINOLOGY FOR THE CIA The following are definitions for key terminology used in the CIA. Cumulative Impact: Impacts that result from the successive, incremental, and/or combined effects of an action, project, or activity added to other existing, planned, and/or reasonably anticipated actions, projects, or activities. For practical reasons, the identification, assessment, and management of cumulative impacts are limited to those effects generally recognized as important on the basis of scientific concern and/or concerns of PACs. CIA: Process to identify and evaluate cumulative impacts. Other Projects: Existing, planned, or reasonably expected future