AFRICAN DEVELOPMENT BANK GROUP PROJECT : MIDELT SOLAR POWER COMPLEX PROJECT – PHASE I COUNTRY : KINGDOM OF MOROCCO ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA) SUMMARY Team Leader Adama MOUSSA, Principal Electrical Engineer RDGN1/COMA Succès MASRA, Principal Economist and Financial PERN1/COCM Analyst William DAKPO, Regional Procurement Coordinator SNFI1/RDGN Modeste KINANE, Principal Environmentalist SNSC Mamadou YARO, Regional Financial Management SNFI2/RDGN Team Members Coordinator Patrice HORUGAVYE, Chief Socio-Economist SNSC Vincent CASTEL, Chief Economist RDGN1/COMA Appraisal Wadii RAIS, Financial Analyst, COMA Team Iman SERROKH, Disbursement Assistant FIFC3/COMA Acting Sector Adama MOUSSA RDGN1 Division Manager Resident Yacine FAL COMA Representative Regional Director- Mohamed EL AZIZI RDGN General Sector Director Ousseynou NAKOULIMA PERN 1 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA) SUMMARY Project : Noor Midelt Solar Power Complex – Phase I Project No.: P-MA-FF0-004 Country: Kingdom of Morocco Department: Category: 1 Introduction This document is a summary of the Framework Environmental and Social Impact Assessment (ESIA) of the NOOR Midelt Solar Power Complex Project - Phase I. The detailed design of the NOOR Midelt project’s power plants will be provided by the projects selected following an international competitive bidding, which explains why this assessment is a framework ESIA covering: (i) the entire site and related infrastructure (water and road infrastructure, power supply for water infrastructure (22kv line); and (ii) all the different technological options. Following their selection, the developers will submit specific ESIA/ESMP for each power plant, taking into account the specificities of each plant and will be based on the specific proposal of the developer to whom the project has been awarded. This framework ESIA was submitted to the National EIA Committee which declared the project’s environmental acceptability and issued it on 12 January 2016. In accordance with the African Development Bank’s Integrated Safeguards System (ISS) and national requirements, this project is classified in Category 1. This summary was prepared in compliance with the AfDB’s environmental and social impact assessment guidelines and procedures for projects in the aforementioned category. The project description and rationale are presented first, followed by the legal and institutional framework in Morocco. A brief description is then given of the main physical conditions in the project area through its physical, biological and human components. The technological options are available and compared in terms of technical, economic, environmental and social feasibility. The most significant positive and negative impacts on the bio-physical and human environments (socio-economic) are then presented. It should be noted that these are anticipated impacts, irrespective of the type of solar power plant and those concerning related infrastructure. Enhancement and mitigation measures are then proposed to increase the benefits and/or prevent, minimize or offset the negative impacts along with the monitoring programme followed by a presentation of public consultations held as well as complementary initiatives relating to the project. Finally, the executing agency’s existing capacities are analyzed. 1. Project Description and Rationale 1.1. Project Rationale This project is part of the Moroccan solar power programme (the NOOR programme) estimated at US$9 billion and whose objective is to develop, by 2020, electric power generation capacity of at least 2000 MW through large-scale integrated solar power projects covering several sites. The Ouarzazate (580 MW), Laayoune (80 MW) and Boujdour (20 MW) site development works are ongoing and expected to be completed in 2018. The development of renewable energy projects in Morocco, especially relating to wind or solar power, is combined with industrial integration (local) to strengthen green job-creating sectors and contribute to the emergence of national expertise in that area. 2 These projects will enable the country to: (i) reduce its energy dependency and supply industrial units with electric power at competitive prices; (ii) develop new industrial sub-sectors through strong local project integration (technical assistance is being provided in order to map these sub- sectors); and (iii) honour commitments made by Morocco under COP 21 and 22. The Bank is also envisaging technical assistance to promote power efficiency and renewable energy experience sharing between Morocco and Africa. 1.2 Project Objectives The project sector goal is to build national electric power generation capacity in order to improve the security of supply and availability of electric power against a backdrop of sustainable development. The project will help to sustain growth and improve the population’s living conditions. Its goal is to reduce the country’s energy dependency and build national electric power generation capacity by deploying electric power production from renewable energy sources. It will help to: (i) mitigate the negative impact of energy imports on the general government budget and on the trade balance; (ii) reduce vulnerability to fuel price fluctuations and to the volatility of these prices; (iii) create a local industry in the solar power sector by manufacturing equipment; (iv) strengthen national renewable energy expertise; and (iv) protect the environment. The project’s specific objective is to develop in a Public-Private Partnership (PPP) context, two power plants (NOORm I and NOORm II) using hybrid solar power technology, that is, a mix of concentrated solar power (CSP1) (with a CSP capacity of 150 to 190 MW per plant) and photovoltaic (PV) capacity. PV capacity will be optimized by the developer. The project will also increase the use of PPP models in electric power generation from renewable sources in Morocco. 1.3 Project Description The Noor Midelt (NOORM) project consists in the construction of a solar power generation complex with several tranches (plants). Its development is planned in several phases under a PPP for private electric power generation in IPP2 form covering the design, financing, construction, operation and maintenance of solar power plants over a 25-year period. The first phase ‘NOORM First Phase’ of the project, the subject of this project, will comprise two (2) hybrid solar power plants (mix between CSP and PV technologies). Each plant will have a CSP capacity of 150 MW to 190 MW with a thermal power storage system that will allow its operation for at least five hours without solar radiation (after sunset or during cloudy periods). The CSP technology could be of the parabolic trough collector or solar tower type (see analysis in the section on the analysis of alternatives for details). The project comprises a single component described below. 1 Concentrated Solar Power 2 Independent Power Producer 3 Table 1: Project Component Project Component (amounts in million UA) Description Component Description Design and development of two PV/CSP hybrid solar power plants (each with a CSP NOORm capacity of 150 to 190 MW). The PV capacity will be optimized by the developer, Power including site development, solar fields, power plants, electric power evacuation, Electric Power Plant I thermal power storage systems, thermal energy transfer systems, cooling systems, Infrastructure environmental and social measures, technical assistance, engineering and NOORm development, works control and supervision, project administration and Power management, financial statement audits, monitoring and evaluation, etc. Plant II Total Project Cost 1.7 billion units of account (UA3), i.e. US$ 2.3 billion The project will be financed by the AfDB, AFD, EIB, the World Bank, the Clean Technology Fund and KfW, the European Commission and private developers (for equity contributions). The project concerns the following related infrastructure: Water Infrastructure: (I) Water intake at the Hassan II dam reservoir; (ii) Lifting and de-sludging stations; (iii) Water pipe from the de-sludging station to the on-site storage reservoir; (iv) electric power supply for water supply equipment (22kv line); Road Infrastructure: (i) Improvement of main access road on an existing feeder road from NR 13 to the site; (ii) Construction of a second access road from the Hassan II dam to the site on an existing road; Electric Power Infrastructure: Two 22kV power lines are planned to supply the site and hydraulic structures, namely: (i) Line 1: linking the Zaïda sub-station to the site via the national road and the right-of-way of the site access road. This line will be extended to the site to provide redundancy; (ii) Line 2: Linking the Mibladene sub-station to the site from the dam. The electric power facilities developed by ONEE for the evacuation of energy generated by the plants (400 kV/225 kV lines, establishment of sub-stations, extension of sub-stations, feeder lines, etc.) will be the subjects of specific ESIA and procurement plans4 Other infrastructure will be covered by this ESIA. 1.4 Project Location The site of the future solar power complex (NOORM) is administratively located in Midelt province on an Upper Moulouya plateau about 20 km north-east of the town of Midelt. It is accessible 30 km from National Road 13 linking Meknès to Midelt. The site’s low, flat profile is suitable for the construction of a solar power complex. The site is also located about 11 km from the Hassan II dam (400 million m3)