Initial Environmental Examination Draft November 2019 INO: Geothermal Power Development Project - Dieng Unit 2 Project Component Prepared by P. T. Geo Dipa Energi for the Asian Development Bank CURRENCY EQUIVALENTS (as of 1 October 2019) Currency unit – Rupiah (IR) IR1.00 = $0.00071 $1.00 = IR14,168.32 ABBREVIATIONS ADB – Asian Development Bank AMDAL – Analisis Mengenai Dampak Lingkungan CTF – Clean Technology Fund CITES – Convention on International Trade in Endangered Species of Wild Fauna and Flora CAP – corrective action plan DMF – design and monitoring framework DO – dissolved oxygen EMP – environmental management plan EMoP – environmental monitoring plan EPC – engineering, procurement, and construction FEED - front-end engineering design FGD – focus group discussion GDE – PT Geo Dipa Energi GRC – grievance redress committee GRM – grievance redress mechanism HSE – health, safety, and environment IEE – initial environmental examination ORC - organic Rankine cycle PMC – project management consultant PMU – project management unit RUPTL – Rencana Umum Penyadiaan Tenaga Listrik (Electricity Power Supply Business Plan) SAGS – steam above ground gathering system SCS – stakeholder communication strategy SPS – Safeguard Policy Statement TOR – terms of reference WEIGHTS AND MEASURES oC – degree celsius dB(A) – A-weighted decibel ha – hectare km – kilometer kV – kilovolt MW – megawatt MWh – megawatt-hour mg/L – milligram per liter µg/m3 – microgram per cubic meter mg/Nm3 – milligram per normal cubic meter m2 – square meter ppm – parts per million NOTE In this report, "$" refers to United States dollars. This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. TABLE OF CONTENTS 1 INTRODUCTION ................................................................................................................................. 13 1.1 Overview of the Project ............................................................................................................ 15 1.2 Project Implementation Arrangements ................................................................................... 16 1.3 The Need for Environmental Assessment .............................................................................. 17 1.3.1 National Requirements ............................................................................................................ 17 1.3.2 Environmental requirements of ADB ....................................................................................... 17 1.4 IEE Methodology ....................................................................................................................... 18 2 Policy, Legal, and Administrative Framework ............................................................................... 19 2.1 National environmental requirements .................................................................................... 19 2.1.1 Environmental Agency ............................................................................................................ 19 2.1.2 Environmental regulations ....................................................................................................... 19 2.1.3 Other applicable regulations ................................................................................................... 21 2.1.4 Applicable Environmental Standards ...................................................................................... 23 2.1.5 Relevant International Environmental Agreements ................................................................. 28 2.2 Environmental requirements of ADB ...................................................................................... 29 2.2.1 Environmental requirements ................................................................................................... 30 2.2.2 Disclosure requirements ......................................................................................................... 30 3 Description of the Project ................................................................................................................ 34 3.1 Brief History of Dieng Geothermal Field ................................................................................. 34 3.2 Development and Need for the Project ................................................................................... 34 3.3 Location ..................................................................................................................................... 34 3.4 Project Components ................................................................................................................. 35 3.4.1 Well Development ................................................................................................................... 37 3.4.2 Steam Above Ground System ................................................................................................. 38 3.4.3 Power Generation System ...................................................................................................... 41 3.5 Project Activities ....................................................................................................................... 42 3.5.1 Pre-construction Phase ........................................................................................................... 42 3.5.2 Construction Phase ................................................................................................................. 43 3.5.3 Operation Phase ..................................................................................................................... 44 3.5.4 Decommissioning Phase ......................................................................................................... 44 3.6 Overall Project Implementation Arrangements and Schedule ............................................. 44 3.6.1 Overall Project Implementation Plan ....................................................................................... 45 4 Description of the Environment (Baseline Data) ........................................................................... 46 4.1 Project Area of Influence .......................................................................................................... 46 4.2 Physical Environment ............................................................................................................... 48 4.2.1 Climate and Meteorology ........................................................................................................ 48 4.2.2 Ambient Air Quality and Noise ................................................................................................ 50 4.2.3 Geology and Topography ........................................................................................................ 55 4.2.4 Hydrology and Water Resources ............................................................................................ 57 4.3 Biological Environment ............................................................................................................ 67 4.4 Socio-economics and Land Use .............................................................................................. 79 4.5 Community Health .................................................................................................................... 86 4.6 Occupational Health and Safety .............................................................................................. 87 4.7 Corporate Social Responsibility .............................................................................................. 91 5 ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ............................. 93 5.1 Scoping of Environmental Risks and Impacts ....................................................................... 93 5.2 Project Phases .......................................................................................................................... 95 5.2.1 Front end engineering design (FEED)/Detailed engineering design ...................................... 95 5.2.2 Demolition of Existing Structures at the Project Site ............................................................... 96 5.2.3 Construction Phase ................................................................................................................. 97 5.2.4 Operation Phase ..................................................................................................................... 98 5.2.5 Decommissioning Phase ......................................................................................................... 98 5.3 Assessment of Major Impacts ................................................................................................. 98 5.3.1 Impact on ambient air quality .................................................................................................. 98 5.3.2 Noise ....................................................................................................................................