ENVIRONMENTAL IMPACT ASSESSMENT (EIA) Master Changan Motor Auto Manufacturing Plant Final Report February, 2021 Ref: EIA/01/02/21 EMC PAKISTAN PVT. LTD. 503, Anum Estate, Opp. Duty Free Shop, Main Shahrah-e-Faisal, Karachi. Phones(+) 9221- 34311466, 34382860, Fax : (+) 9221-34311467. E-mail : [email protected], [email protected] Website : www.emc.com.pk Disclaimer: This report has Attorney – Client Privilege. EMC Pakistan Private Limited has prepared this report in accordance with the instructions of Master Changan Motors Ltd for their sole and specific use. Any other persons who use any information contained herein do so at their own risk. This report cannot be used in the court of law for any negotiation or standardization. © EMC Pakistan Private Limited 2021. Environmental Impact Assessment (EIA) i “Master Changan Motor Auto Manufacturing Plant” Executive Summary Master Changan Motors Ltd (hereinafter referred as Project Proponent) intends to establish a Master Changan Motor Auto Manufacturing Plant (MCMAMP), Bin Qasim Town, Karachi. The proponent has commissioned the services of EMC Pakistan (Pvt) Ltd to conduct the Environmental Impact Assessment (EIA) of the project. Master Changan Motor Ltd plans to set up an automobile manufacturing plant Plot No. DSU-40 to DSU-44, Downstream industrial Estate Pakistan Steel, Karachi. Master Changan Motor Limited is the manufacturer in Pakistan for leading Commercial Vehicles from China including world renowned Foton (Light Duty Truck and Heavy- Duty Truck) and Yuejin. It will produce a wide range of Commercial Vehicles from 1.5 Ton loading capacity to 60 Ton GCW Prime Mover. For this purpose, 25 acres of land has been purchased with already constructed working sheds, boundary wall and other civil structures. Location of the Project within Downstream industrial Estate Pakistan Steel in Bin Qasim is shown in the figure below; Figure Ex 1: Location Map of the Project Being classified under Schedule II of the Sindh EPA (Review of IEE/EIA) Regulation 2014, an Environmental Impact Assessment (EIA) of the project has been carried out to meet the environmental assessment requirements. The assembling of motor vehicles can potentially create a number of E&S risk issues. Most of these risks are associated with harmful substances, which are used during the manufacturing process as well as hazards arising from waste and emissions. Environmental Impact Assessment (EIA) ii “Master Changan Motor Auto Manufacturing Plant” This EIA study was carried out to assess the environmental impacts during the siting, construction and operational phase Master Changan Motor Auto Manufacturing Plant in Karachi, Sindh. The assessment was carried out according to the requirements of Sindh Environmental Protection Act 2014 and all applicable national & international standards. The baseline environmental and socioeconomic information was collected from a variety of sources, including reports of previous studies, published literature, and field survey (primary information). The information collected was used to develop baseline conditions of project area with respect to the natural, socioeconomic, and cultural environments likely to be affected by the project. The proposed project activities were reviewed, and an assessment made of the potential impact of these activities on the area’s natural, socioeconomic, and cultural environments is also described in this report. Where appropriate, mitigation measures were recommended to keep the adverse environmental impact within the acceptable limits. The findings of impact assessment and visual inspections of existing environment of the project area in the present scenario indicates following main impacts along with simultaneous relevant and appropriate mitigation measures: ▪ The majority of the emissions to air generated during motor vehicle assembly are volatile organic compounds (VOCs) emitted from painting and finishing operations (paint storage, mixing, applications, and drying). The emissions are primarily organic solvents, which are used as carriers for the paint and solvents used for cleaning equipment between color changes and to clean spray booths. The project has provision for Installation of abatement technologies to minimize exposure to hazardous substances and to control the release of emissions, e.g., enclosure of equipment, use of appropriate ventilation with filters, gas balancing systems, cyclones, and wet or alkali scrubbers ▪ Inadequate control or accidental releases of hazardous substances on site or in transit may result in significant environmental impacts in relation to soil, groundwater and surface water contamination and occupational health and safety, e.g., disposal of empty drums and packaging of fuel and chemicals. Chemicals with different hazard symbols will not be stored together - clear guidance on the compatibility of different chemicals will be obtained from the Materials Safety Data Sheets (MSDS) which would be readily available from the manufacturer and on site. It will be ensured that the chemicals are stored in a dedicated, enclosed and secure facility with a roof and a paved/concrete floor. Chemical tanks will be completely contained within secondary containment such as bunding. ▪ There are several areas with a potential to contaminate waters via accidental discharge to drains and sewers or onto ground. These include gun wash within the paint gun cleaning unit, residues from solvent-containing paint, waste gun cleaner or dirty water from wet filters (where used). There should be no open drains or sinks where solvent materials are being handled or stored. Other liquid waste includes paint overspray caught by emissions control devices and unused paint. Plant effluent and wastewater will be routed through Wastewater treatment plant before discharging into allocated sewer. Environmental Impact Assessment (EIA) iii “Master Changan Motor Auto Manufacturing Plant” ▪ Solid wastes may arise from several sources during assembly and the majority of wastes by volume result from packaging - reusable or disposable. Reusable packaging covers metal racks, bins and containers and disposable packaging covers wood pallets, cardboard, plastic, polystyrene and polythene film. All hazardous and non-hazardous wastes will be disposed of through EPA approved contractor. ▪ Motor vehicle assembly plants use energy throughout the plants for many different end-uses. The main energy types used on-site are electricity, steam, gas and compressed air. Paint shops are major energy consumers. Energy is used to condition the air for the painting and drying steps, and for treatment of the emissions and for ventilation. The proponent is committed to monitor and target energy usage and implement behavioral change programmes. ▪ Chemicals involved in the motor vehicle assembly may have a wide range of hazardous effects, including being toxins, carcinogens or highly corrosive upon skin contact. Direct skin and eye exposure to and/or inhalation of hazardous chemicals can result in health impacts for workers. Prolonged exposure over years can induce chronic health effects. Prior to the commencement project, the Environment, Health and Safety (EHS) specialists will develop Occupational Health and Safety Plan (OHSP). ▪ Vehicle assembly plant can be noisy work places due to the high level of use of machinery. Transport of products by road may also generate noise. The proponent will ensure provision of personal protective equipment (PPE) that is fit for the task to prevent injury and maintain hygiene standards. Staff will be trained in the correct selection, use and maintenance of PPE, and put in place measures to encourage/ mandate its use. Enclose noisy machines to isolate people from the noise where practicable. ▪ Project site has no sensitive areas such as protected sites including wildlife sanctuaries, game reserves or national parks, or any archaeological, historical or cultural heritage in its neighborhood; as such its siting would have no sensitivity in this regard. Screening of potential impacts suggests that the construction and Operation of &M of Greenfield Auto Manufacturing Plant in Downstream industrial Estate Pakistan Steel, on adoption of the suggested mitigation measures, be an environmentally acceptable proposition and will be an add-on in the production capacity of the facility. Careful implementation of the Environmental Management Plan (EMP) will ensure that the environmental impacts are proportionally managed and minimized and the project proponent meets all statutory requirements. There are two essential recommendations that need to be followed to ensure that the environmental impacts of the project are successfully mitigated. The proponent shall ensure that: ▪ All mitigation, compensation and enhancement measures proposed in this EIA report are implemented in full, as described in the document; ▪ The Environmental Management Plan is implemented in letter and spirit. It is recommended that the EIA be approved with the condition that recommendations given in the EIA and NOC will be duly followed by the proponent. Environmental Impact Assessment (EIA) Contents “Master Changan Motor Auto Manufacturing Plant” Table of Contents 1 Introduction ............................................................................................................ 1 1.1 General ........................................................................................................................ 1 1.2 Project Proponent ....................................................................................................