FINAL REPORT ENVIRONMENTAL IMPACT ASSESSMENT VACA HYDROELECTRIC PROJECT, CAYO DISTRICT BELIZE Prepared for: 2-1/2 Miles. Northern Highway Belize City, Belize, CA Prepared by: ESL MANAGEMENT SOLUTIONS LIMITED 20 West Kings House Road Kingston 10 April 2006 This document presents the findings of the Environmental Impact Assessment (EIA) for the proposed Hydroelectric Power Plant at Vaca Falls in Cayo District. Two site options were investigated and the site that presented the least environmental impacts was selected, for detailed impact assessment. Several impacts have been identified and mitigation measures presented. Environmental Impact Assessment ESL Management Solutions Ltd. Table of Contents TABLE OF CONTENTS ..............................................................................................................I EXECUTIVE SUMMARY ......................................................................................................... A 1.0 INTRODUCTION............................................................................................................. 1 1.1 THE REPORT .................................................................................................................... 1 1.2 BACKGROUND.................................................................................................................. 1 1.3 THE PROPOSED PROJECT.................................................................................................. 4 1.4 PROJECT JUSTIFICATION................................................................................................... 7 1.4.1 CURRENT ENERGY SOURCES.................................................................................................9 1.4.1.1 The Belize Energy Supply ............................................................................... 9 1.4.1.2 Issues Related to the Purchase of Energy from Mexico .................................. 10 1.4.2 LEAST COST GENERATION - STONE & WEBSTER STUDY ................................................12 1.4.2.1 Electricity Sales Forecast for Belize..................................................................... 12 1.4.3 GENERATION EXPANSION PLAN .........................................................................................16 1.4.3.1 The Need for an Expansion Plan ..................................................................... 16 1.4.3.2 Peak Demand Growth Forecast............................................................................ 16 1.4.3.3 Conclusions from SWMCI Study........................................................................... 19 1.4.3.4 No Action Plan.................................................................................................. 19 1.4.3.4.1 Belize Energy Situation...................................................................................... 20 1.4.3.4.1.1 Existing Supply........................................................................................... 20 1.4.3.4.1.2 Energy Sales And Demand Forecast.......................................................... 22 1.4.3.4.1.3 Planning Criteria ........................................................................................ 24 1.4.3.4.2 Capacity Deficit without Generation Additions after Belcogen.................... 24 1.4.3.4.3 Capacity Deficit With New Generation Addition.......................................... 26 1.4.3.4.4 Conclusions of the No Action Alternative................................................... 28 1.4.4 THE VACA HYDROELECTRIC PROJECT.............................................................................29 1.4.4.1 Need for Additional Generation............................................................................ 29 1.4.4.2 The Options ......................................................................................................................29 1.4.4.3 BECOL’S Response .........................................................................................................31 1.4.4.4 The Public Utilities Commission .......................................................................... 32 2.0 POTENTIAL AREAS OF IMPACT............................................................................. 34 2.1 STUDY AREA – FOOTPRINT OF THE PROJECT AND SPHERE OF INFLUENCE ..................... 34 2.2 THE MACAL RIVER BASIN ............................................................................................. 37 3.0 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ............................... 42 3.1 PERTINENT REGULATIONS, STANDARDS AND POLICIES ................................................. 42 3.1.1 PLANNING AND DEVELOPMENT PHASE........................................................................43 3.1.2 PERMITTING .......................................................................................................................50 3.1.3 CONSTRUCTION AND IMPLEMENTATION PHASE ........................................................57 3.1.4 OPERATION AND MAINTENANCE PHASE.......................................................................60 Belize Electric Company Ltd. i Vaca Hydroelectric Project Environmental Impact Assessment ESL Management Solutions Ltd. 3.1.5 DECOMISSIONING AND ABANDONMENT PHASE .........................................................60 4.0 APPROACH AND METHODOLOGY ........................................................................ 62 4.1 GENERAL APPROACH..................................................................................................... 62 4.2 PHASE I – COLLECTION OF BASELINE DATA.................................................................. 63 4.2.1 PHYSICAL ENVIRONMENT ................................................................................................63 4.2.1.1 Topography................................................................................................... 63 4.2.1.2 Climate and Meteorology ................................................................................ 64 4.2.1.3 Geology/Geotechnics ....................................................................................... 64 4.2.1.4 Hydrology ........................................................................................................ 65 4.2.1.5 Water Quality................................................................................................... 65 4.2.1.6 Natural Hazards............................................................................................... 69 4.2.2 BIOLOGICAL ENVIRONMENT...........................................................................................69 4.2.2.1 Ecosystems ....................................................................................................... 69 4.2.2.2 Flora ................................................................................................................ 71 4.2.2.3 Fauna ............................................................................................................... 71 4.2.2.3.1 Fish.............................................................................................................. 71 4.2.2.3.2 Amphibians and Reptiles ............................................................................ 72 4.2.2.3.3 Birds............................................................................................................ 74 4.2.2.3.4 Mammals.................................................................................................... 74 4.2.3 PARKS AND PROTECTED AREAS .....................................................................................76 4.2.4 ARCHAEOLOGY ..................................................................................................................76 4.2.5 SOCIO-ECONOMIC CHARACTERISTICS..........................................................................77 4.2.5.1 General Approach............................................................................................. 77 4.2.5.2 Secondary Research......................................................................................... 79 4.2.5.3 Primary Research ............................................................................................ 79 4.3 PHASE II – IDENTIFICATION OF THE BETTER SITE OPTION ............................................. 80 4.4 PHASE III - ASSESSMENT OF POTENTIAL IMPACTS......................................................... 80 5.0 BASELINE DATA.......................................................................................................... 81 5.1 TOPOGRAPHY................................................................................................................. 81 5.1.1 REGIONAL TERRAIN ..........................................................................................................85 5.1.2 SITE TERRAIN......................................................................................................................87 5.2 CLIMATE AND METEOROLOGY....................................................................................... 88 5.3 2005 SEASONAL VARIATIONS IN RAINFALL.................................................................. 89 5.4 GEOLOGY/GEOTECHNICS ............................................................................................... 92 5.4.1 LITHOLOGIES .....................................................................................................................92 5.4.2 GEOTECHNICAL CHARACTERISTICS..............................................................................97