Initial Environmental Examination February 2013 THA: Central Thailand Solar Power Project Prepared by Solarco Solar Co., Ltd. for the Asian Development Bank. Initial Environmental Examination Report Solarco Solar Power Project Prepared by Solarco Solar Co., Ltd. November 2012 The initial environmental examination is a document of the borrower. Initial Environmental Examination Report Solarco Solar Co., Ltd. Table of Content Page A. Introduction 1 B. Policy Legal and Administrative Framework 1 C. Project Description 1 D. Description of Environment 8 E. Anticipated Impacts and Mitigation Measures 13 F. Analysis of Alternative 16 G. Information Disclosure, Consultation and Participation 16 H. Grievance Redress Mechanism 16 I. Project Personnel 17 J. Environmental Management Plan 17 K. Conclusion and Recommendation 18 Initial Environmental Examination Report Solarco Solar Co., Ltd. INITIAL ENVIRONMENTAL EXAMINATION A. Introduction 1. Solarco Solar Co., Ltd. is the developer of a solar energy project, which is comprised of six sites in three locations. Five out of six sites, Sai Yai 1&2 and Sai Phet 1&2&3, are located in Nakhon Pathom province, while the other site, Sai Kyo 1, is in Suphan Buri province. Both provinces are situated next to one another in the central region of Thailand. The Solarco Solar project has total production capacity of 9.5 x 6 = 57 MW-AC, which will be sold to Provincial Electricity Authority or PEA under a very small power producer (VSPP) contract. 2. Solarco Solar Co., Ltd. (Solarco) was formed as a joint venture company between two parties – Yanhee Solar Power Company Limited (YSP) and Electricity Generating Public Company Limited (EGCO). The former is holding a larger stake of 51 percent, while the latter is holding the rest of 49 percent equity stake in the newly established company. The Project has an investment cost of approximately seven billion THB. Sources of funds are expected to be in various forms. A portion of about 75 percent will be financed from banks, especially a low-interest loan available from the Asian Development Bank (ADB). This leaves the rest of 25 percent to be self-invested by Solarco. 3. Being classified as Category B under the ADB classification criteria, the Project is required for an initial environmental examination (IEE) to meet the environmental assessment requirements regarding ADB’s Safeguard Policy Statement (SPS; March 2010). Moreover, the preparation of IEE also pursues the Thai environmental regulations on development of an industrial project not listed under the requirement for preparing an environmental impact assessment (EIA) report. PEA will be responsible for the construction of the new transmission line to be connected to the existing 115 kV. Such construction is not required for conducting an IEE by the environment authority. 4. The initial environment examination (IEE) report is prepared to initially assess potential impacts likely to occur from the Project’s entire life cycle on the local environmental quality and communities. The assessment came up with a set of impact mitigation measures as well as monitoring programs for the Project to pursue in order to ensure minimized adverse impacts on the environment and communities nearby. B. Policy Legal and Administrative Framework 5. Environmental impact assessment is not required for solar power projects in Thailand. However, environmental aspect was reviewed in the project feasibility study report and Solarco held public consultation meetings to communities dwelling within the study area of its every location site. This activity was conducted to be in compliance with the requirement listed in the Thai constitution. 6. As Solarco has developed an IEE report for its solar farm project to comply with the lending and financing consideration processes of Asian Development Bank (ADB), it is necessary that the IEE conform to ADB policies and guidelines. Please see Attachment 1 for the Asian Development Bank Policies and Guidelines. C. Project Description a. Project Sponsors 7. Yanhee Solar Power Co., Ltd. has been experienced in solar farm business in Thailand for more than two years. So far, YSP has been involved in the development of 8 solar power plants across the country, accumulating a total electricity generation capacity of 34 MW-AC from this renewable energy model. - 1 - Initial Environmental Examination Report Solarco Solar Co., Ltd. 8. EGCO Group is Thailand’s first independent power producer. As of June 2012, it has a total generation capacity of more than 5,045 MW from its both wholly and partially owned power plants. EGCO is also involved in developing solar farms, for example, the 55 MW Lopburi Solar Power Plant currently supplying electricity to Electricity Generating Authority of Thailand or EGAT. The group has strategies to expand its business towards renewable energy which is targeted to reach 300 MW by 2015.1 b. Project Location 9. The three project locations in Nakhon Pathom and Suphan Buri are as presented in Figure C-1. Each of the six sites in these three locations has its coordinates as the table below. Sai Kyo1 Song Phi Nong District Suphan Buri Nakhon Pathom Suphan Buri Sai Yai 1&2 Nakhon Pathom Tha Chin river Bang Len District Sai Phet 1&2&3 1 Mile 2 Km Figure C-1 Locations of 6 Project Sites in Nakhon Pathom and Suphan Buri Site Coordinates (Latitude/longitude) Address Sai Phet 1 14⁰ 06’ 17” N / 100⁰ 10’ 19” E Hinmoon sub-district, Bang Len district, Nakhon Pathom province Sai Phet 2 14⁰ 06’ 29” N / 100⁰ 10’ 29” E Hinmoon sub-district, Bang Len district, Nakhon Pathom province Sai Phet 3 14⁰ 06’ 45” N / 100⁰ 10’ 35” E Hinmoon sub-district, Bang Len district, Nakhon Pathom province 1 http://www.egco.com/en/corperate_com_press_detail.asp?press_id=174&iYear=2012 Initial Environmental Examination Report Solarco Solar Co., Ltd. Sai Yai 1 14⁰ 08’ 06” N / 100⁰ 08’ 15” E Bang Luang sub-district, Bang Len district, Nakhon Pathom province Sai Yai 2 14⁰ 08’ 09” N / 100⁰ 08’ 33” E Bang Luang sub-district, Bang Len district, Nakhon Pathom province Sai Kyo 1 14⁰ 09’ 18” N / 100⁰ 08’ 15” E Bang Ta Then sub-district, Song Phi Nong district, Suphan Buri province Sai Kyo Site 10. The Sai Kyo site is located in Bang Ta Then sub-district, Song Phi Nong district, Suphan Buri province. The site is approximately 87 km away to the northwest of Bangkok City, and can be reached by using National Highway No.9, 340 and 3422, respectively. A representative grid reference of the Sai Kyo site is 14⁰ 09’ 18” N / 100⁰ 08’ 15” E. The altitude of the site, obtained from AEC’s site survey result, varies from 0.8 to 2.8 meters above mean sea level (MSL), with an average of 1.15 meters MSL. The site has an area of 175-1-44 rais, or 280,576 square meters. Aerial photograph of Sai Kyo site location is as depicted in Figure C-2. Figure C-2 Aerial photograph of Sai Kyo site Sai Yai sites 11. The Sai Yai area comprises 2 project sites, both of which are located in Bang Luang sub-district, Bang Len district, Nakhon Pathom province. The sites are approximately 90 km away to the northwest of Bangkok City. Its location is approximately 2.6 kilometers southward of Sai Kyo’s. Site references of the Sai Yai 1&2 are 14⁰ 08’ 06” N 100⁰ 08’ 15” E and 14⁰ 08’ 09” N 100⁰ 08’ 33” E, respectively. The altitude of the sites, obtained from AEC’s site survey result, varies from 0.14 to 3.31meters MSL, with an average of 1.36 meters MSL. The Sai Yai sites 1&2 have land area sizes of 214–0–55 and 203–0–53 rais (342,620 and 325,012 square meters). There is a buffer zone between the two plots with an area size of 29-0-25 rais (46,500 square meters). Aerial photograph of Sai Yai sites location is as depicted in Figure C-3. - 3 - Initial Environmental Examination Report Solarco Solar Co., Ltd. Sai Phet sites 12. The Sai Phet area comprises 3 project sites, all of which are located next to one another in Hinmoon sub-district, Bang Len district, Nakhon Pathom province. The sites are approximately 97 km away to the northwest of Bangkok City. Its location is approximately 9.6 kilometers southward of Sai Kyo’s. Site references of the Sai Yai 1&2&3 are 14⁰ 06’ 17” N / 100⁰ 10’ 19” E, 14⁰ 06’ 29” N / 100⁰ 10’ 29” E and 14⁰ 06’ 45” N / 100⁰ 10’ 35” E, respectively. The altitude of the sites, obtained from AEC’s site survey result, varies from 0.45 to 3.25 meters MSL, with an average of 1.39 meters MSL. The Sai Yai sites 1&2&3 have land area sizes of 164-3-75, 205-3-50 and 213-1-89 rais (263,900, 329,400 and 341,556 square meters). There are two buffer zones located in between each two plots. The one between Sai Phet 1 and 2 has an area size of 18-2-99 rais (29,996 square meters), and the other between Sai Phet 2 and 3 is 16-3-97 rais (27,118 square meters) in size. Sai Phet sites location is as depicted in Figure C-4. Figure C-3 Aerial photograph of Sai Yai sites 1&2 On the East side of Sai Yai site 2, there will be Solarta Solar Power Project. This project is not relevant to Solarco and it has commercially operated since the middle of 2012. Figure C-4 Aerial photograph of Sai Phet sites 1&2&3 Initial Environmental Examination Report Solarco Solar Co., Ltd.