INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized I. Basic Information Date prepared/updated: 03/31/2010 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: AC Basic Project Data Country: Egypt, Arab Republic of Project ID: P Project Name: EG-Giza North Power Project Task Team Leader: Vladislav Vucetic Estimated Appraisal Date: Estimated Board Date: May 27, 2010 Managing Unit: MNSSD Lending Instrument: Specific Investment Loan Sector: Power (100%) Theme: Infrastructure services for private sector development (100%) IBRD Amount (US$m.): IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower EC: European Investment Bank OPEC FUND Environmental Category: A - Full Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) [ ] No [] 2. Project Objectives The project development objective is to contribute to improving the security and efficiency of electricity supply by adding a new generation capacity based on the most efficient thermal power generation technology. 3. Project Description The investment part of the proposed project comprises development and construction of a 1,500-MW combined cycle gas turbine (CCGT) power plant at Giza North near Cairo. The plant will use natural gas as the main fuel and light diesel oil as a back-up. The plant will be owned and operated by the Cairo Electricity Production Company (CEPC), a subsidiary of EEHC. The power plant will include two identical 750-MW modules, each module consisting of two 250-MW gas turbines (with an electricity generator for each turbine), two multi-pressure heat-recovery steam generators (HRSG), and a 250-MW steam turbine driving an electricity generator. Step-up transformers and a switchyard are also included in the project, with a number of other auxiliary systems. The project will include transmission lines to connect the plant to the national transmission grid, and gas pipeline to connect the plant to the gas pipeline system for fuel supply.

2 The technical assistance associated with the project includes the following components: (a) Support for promotion of private sector investment in electricity generation, including for the process of selecting private developer for the IPP at Dairut (already announced by the government); (b) Development of a power sector strategy for the power sector for the next 7-10 years, focusing on attracting additional private investment (beyond the Dairut IPP) and associated tariff and other policies to facilitate efficient financing of investment needs; and (c) Support for promotion of energy efficiency. 4. Project Location and salient physical characteristics relevant to the safeguard analysis Project is located at Giza North, on the El-Beheiry canal in El-Kata village, the Sixth of October governorate. It is on El-Manashi / El-Khatatba road, with Riah El-Beheiry canal from the east and agriculture land from the north, south and west sides. The site is located approximately 30 kilometers northwest of Cairo City and along the Manshyyet El-Qanater / Etay El-Baroud Regional Road, which runs parallel to the El-Rayyah El- Beheiry canal. The site is a part of the flat agricultural land partly covered with fruit trees and palm trees. The site has historically been used for cultivation of wheat and vegetables and showed no evidence of any current or past encroachment or squatters. The site with approximately 295,000 square meters of flat land is flanked on three sides (west, north and east) by agriculture lands with similar land use. The main road runs parallel to the southern side of the site connecting to the city - Sixth of October, which is 15 km east with a reported population of over a million people. The site did not indicate presence of any industrial contamination or waste disposal or cultural properties. The site of the Giza North power plant was chosen due to its proximity to water canal, gas network and the national electricity transmission network. Borrower#s Institutional Capacity for Safeguard Policies: The Borrower has been financing power projects with international financing institutions for a number of years and is thus experienced with the Bank#s environmental and social safeguard policies. The Egyptian Electricity Holding Company (EEHC) has strong institutional capacity with respect to Bank#s safeguard policies having two Bankfinanced large Category A projects under supervision. In addition, Egypt has strict environmental regulations on ESIAs in conjunction with large infrastructure projects and each ESIA undertaken needs formal approval by the Egyptian Environmental Affairs Agency (EEAA). 5. Environmental and Social Safeguards Specialists Mr Knut Opsal (MNSSO) Mr Sanjay Srivastava (SARDE)

3 6. Safeguard Policies Triggered No Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The gas power plant will be based on Combined Cycle Gas Turbines (CCGT) including low NOx burners and once through cooling system designed to meet the World Bank emission and discharge requirements. The site is a flat land purchased directly from a private owner through a commercial transaction that has been completed and settled. The site has historically been used for cultivation of wheat and vegetables and showed no evidence of any current or past encroachment or squatters. The ESIA indicates that environmental impacts associated with the site are expected to be insignificant, reversible and non-cumulative, and primarily construction related such as increased dust, noise, and vibration, etc.. The land requirements for associated infrastructure will be minimal, and a Resettlement Policy Framework has been developed that provides details of policies, procedures and implementation arrangements to address any cases of involuntary resettlement that may arise. In case of land acquisition, Resettlement and rehabilitation will be addressed through preparation of a specific Resettlement Action Plan. The environmental impacts of associated infrastructure such as gas pipeline, transmission lines, potable water connections and access road are expected to be localized, short lived, and reversible. Mitigation measures have been provided by adequate institutional arrangements and budget for effective implementation, supervision and monitoring. Mitigation measures as detailed in the tables in Annex 10 of the PAD provide mitigation, monitoring and management measures proposed to be adopted by the EDEPC. These requirements will be included as conditions of contract on the contractor and any subcontractors employed to build or operate any part of the power plant. The Gas Turbine Units will be dry NOx type, i.e. equipped with low-nox combustors, minimizing the emission of NOx which is the key pollutant associated with combustion of natural gas. Detailed design will also consider further NOx reduction techniques, such as over fire air ports and flue gas re-circulation. Air pollution control systems will ensure compliance with both the WB and EEAA emission standards for power plant. Stack emissions to the air from the proposed plant are expected to be within the Egyptian, as well as the World Bank guidelines, with full compliance with SO2 standards when firing the emergency light fuel oil. The impacts of the plant#s emissions during on ambient air

4 quality in the project area is well within the Egyptian 24-hour limit of 150 ug/m3. The maximum 24-hour impact level of the Giza North power project is ug/m3 (excluding the background level). The maximum combined 1-hour impact level, including the highest value during 2007, is ug/m3. The Giza North plant contributed ug/m3 at this location. The plant will install monitoring stations equipped with meteorological monitoring system within the power plant site to regularly monitor air quality in the area Cooling water and process water for power plant operation will be drawn from the El- Rayyah El-Beheiry via an intake structure. The quantity of the cooling water that will be returned to the El-Rayyah El-Beheiry is about 27.2 m3/sec, which represents a loss of 0.07% used as process water. Potable water will be supplied to the power plant via the El- Kata local potable water system. Cooling water will be returned to the El-Rayyah El- Beheiry via a discharge structure whilst waste process water will be disposed through El- Kata local sewer system or after treatment via discharge system. No ground water or other surface water will be used during power plant construction and operation. The Contractors will be responsible for relevant water/toilet facilities during construction and the need to provide appropriate services will be specified in their contracts. The aquatic environment surrounding the project site is characterized by poor biodiversity and no sensitive ecosystems. The project is expected to have limited and insignificant impacts due to construction of the power plant, dredging and or due to construction of the intake and discharge structures In addition, good site management and engineering practices during construction will ensure that any residual impacts are reduced to a minimum. A wastewater treatment facility on the site will treat liquid wastes and produce an effluent suitable for discharge into the canal. All oil waste effluents will be collected into a separate network and sent to an oil separator, then disposed of by petroleum company. The use of water treatment chemicals will be reduced to the minimum required to achieve safe and efficient operation of the power plant. Power plant operation will result in a heated plume of waste cooling water being discharged into the El-Rayyah El-Beheiry. Thermal modeling of the discharge plume shows that, at max. operational conditions, the point at which the plume has decreased in temperature to 3oC above ambient, lies at approximately within 100 m from the point of discharge. The temperature of the returned cooling water at the point of discharge conforms to the Egyptian Standard, and the discharge as modeled satisfies the World Bank standard of a maximum increase of 3oC above ambient at the edge of the mixing zone (100 m from the point of discharge). The construction of the Giza North power plant is expected to generate a maximum noise level of 59 db(a) during the day at the fence of the power plant and 57 db(a) at night. These worst-case construction noise levels are both within Egyptian and World Bank guidelines, and for most of the construction periods, the noise levels will be lower than these values.

5 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The ESIA indicate that the environment and social impacts associated with the power plant including the associated infrastructure are not significant, unprecedented or irreversible. The indirect impacts of associated infrastructures are summarized as follows: Impact due to Transmission Lines. The power plant will be connected through eight lines, connecting to two separate 2x220 kv network interconnected to the National Unified Power System (NUPS). The length of the proposed transmission line route is estimated to be km long. The project will use manual methods for removal of shrubs along the right of way for the transmission lines, and does not envisage use of herbicides or chemicals for maintenance of right of way, therefore, the policy on Pest Management has not been triggered (OP 4.09). ESIA includes procedures consistent with the Bank policy on Cultural Properties OPN4.11, for any chance find of any cultural properties. The majority of affected land owners seem to have fairly large farms, with average land holdings estimated at 8-10 Feddans. The land required for each tower footing is expected to be maximum 20x20 meters. This requirement will be almost half for angle towers compared to suspension towers. Very small pieces of land will be taken against compensation, but no resettlement will be associated to the power interconnecting lines. Impact due to Gas Supply Lines. The new gas pipeline connection will be provided to the site from the nearest point from an existing gas supply junction. This work will be done in consultation with EGAS. The exact route for this gas supply line is under determination. The gas pipelines will be buried underground along the identified route and no land acquisition is expected. Most of the impact will be construction related and are expected to be temporary and insignificant. The anticipated environmental impacts include generation of dust, noise and workers health and safety issue, which will be mitigated by implementing an environmental management and monitoring plan..in the unlikely event of the need for involuntary land acquisition, the Resettlement Policy Framework (RPF) will be used as a basis to identify, enumerate prepare, implement and monitor a Resettlement Action Plan. Access Road. As part of the development of the power plant, an existing access road will be paved from the main regional road on the verge of the site west southern boundary to the inside of the proposed site, over a very short distance of about 1.7 km. The environment impacts of construction will be mitigated and monitored using the Environment management plan. It is likely that the right of way of the existing road will be sufficient and additional land acquisition is not expected. Potable water connections: Even though potable water network may exist to the power plant site, the power plant produces its demand of potable water via its own water treatment system. No potable water pipelines are envisaged to be extended particularly for the power plant

6 Local livelihoods: A few part time fishermen utilize the waters near the planned power plant. Based upon experience from a number of similar plants elsewhere along the Nile River and its branches, as well as the opinions of the fishermen, the impacts of slightly warmer water on fisheries are likely to be positive. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The ESIA considered 3 sites for power generation plant. The selected site was chosen due its proximity to road, water canal, transmission links that has least environmental and social impacts. Two alignment options were considered for transmission lines. A shorter connection had also been discussed, but has not been found acceptable as it will likely go through a number of orchards as well as cultivated lands. The proposed option seems to be less intrusive, both in terms of adverse socio-economic impacts and land acquisition challenges. The proposed transmission route of km with an estimated 69 transmission towers would be footed mostly (at least 80%) on dry, unproductive land. The final location of towers and sub stations is yet to be determined following a detailed land survey. A preliminary walk through of these sites does not indicate the presence of any sensitive habitats or receptors indicating that the identified route will cause no significant, cumulative or irreversible environmental impacts. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The Project Management Unit will have the overall responsibility for implementation of Environment and Social Management Plan and the RPF. The PMU will hire environmental and social specialists who will work closely with contractors and subcontractors to ensure that all environment and social impact mitigation measures including occupation, health and safety guidelines are mainstreamed into the project design; monitored and supervised. Assistant Plant Manager reporting directly to Chairman/General Manager of CEPC/GNPP and supported by CEPC Project Manager in collaboration with PGESCo Site Manager will have direct responsibility for the Environment, Safety and Quality Assurance program on site during construction and operation. All staff employed at the plant will be trained in general operation of the power plant; occupational health and safety; and contingency plans and emergency procedures. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. During the preparation of ESIA and RPF, the client undertook consultations with a variety of organizations to assist them in the identification of environmental and social concerns and the overall development of the project. These stakeholders included the Egyptian Electricity Holding Company (EEHC), Cairo Electricity Production Company (CEPC), Egyptian Environmental Affairs Agency (EEAA), the 6th of October Governorate and the District Council of the 6th of October, including Imbaba & Menshat El-Qanater zone, Egyptian General Authority for Shore Protection, Hydraulics Research Institute and local population leaders. The purpose of these consultations was primarily to provide information regarding the project, identify published and non-published sources

7 of relevant data and information relating to the site and surrounding area, obtain views on the scope of the project, and open channels for ongoing discussions The key environmental and social issues raised during these consultations are summarized in the ESIA report and these issues were subsequently taken into account in the preparation of ESIA documentation both for local permitting requirements and this ESIA report. Minimeetings were held with fishermen along the El-Rayyah El-Beheiry at about 5 km to the north west of the proposed site, the El-Kata area representatives, Imbaba and Menshat El- Qanater District Administration, General Authority for Fishery Development and two active NGOs in the 6th of October zone, "October for Environment & Development", 6 of October City, and "Youth and Environment Friends", Siqil, Ossim. In addition to continued consultation during the ESIA process, formal consultations were undertaken by ECG involving a larger number of stakeholders in collaboration with the EEHC and CEPC to discuss the ESIA/ESMP and RPF. A scoping session was convened on October 21, 2009 where a wide selection of stakeholders participated. A second public consultation meeting was held on January 11, The details of these meetings have been outlined in the ESIA, and the documentation includes Q & A, newspaper advertisements, invitations, consultation agendas, list of participants, nontechnical summary, as well as presentation slides and photos. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Date of receipt by the Bank 01/26/2010 Date of "in-country" disclosure 01/26/2010 Date of submission to InfoShop 01/26/2010 For category A projects, date of distributing the Executive 01/26/2010 Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank 01/26/2010 Date of "in-country" disclosure 01/26/2010 Date of submission to InfoShop 01/26/2010 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop

8 * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OP/BP Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank s Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents?

9 D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Vladislav Vucetic 03/31/2010 Environmental Specialist: Mr Hocine Chalal 03/31/2010 Social Development Specialist Ms Wendy E. Wakeman 03/31/2010 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Hocine Chalal 03/31/2010 Comments: Sector Manager: Mr Jonathan D. Walters 03/31/2010 Comments: