Abeokuta, Nigeria Greenfield Power Generation Plant Environmental Impact Assessment (EIA) Background Information Document (BID) January 2015

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1 Abeokuta, Nigeria Greenfield Power Generation Plant Environmental Impact Assessment (EIA) Background Information Document (BID) January 2015 Background Energy Culture, an indigenous integrated energy company, is planning to develop, construct and operate a power plant under the Nigerian government s programme. This power plant is being developed to meet the growing demand for power. The planned facility requires an Environmental and Social Impact Assessment (EIA). The aim of this document is to provide background information about the project and the EIA process and to invite comments on any issues you may have. Project Location The power plant will be located on a 4 hectare site near Abeokuta in Ogun State, Nigeria (refer to Figure 1 below) Proposed Facilities Energy Culture has already acquired the land for the Project. The power plant will have a total installed capacity of 147 MWe comprising three General Electric LM6000 PC gas-powered turbines. Energy Culture is considering purchasing an existing plant located in Europe and relocating it to the site. The Project will also include a short transmission line from the Project site to the national grid and a short pipeline to receive gas from the existing gas network. Project Activities The project activities can be divided into construction and operation phase activities. The Construction Phase activities will include the construction of an aboveground transmission line with a pylon or laying of an underground transmission line. The construction of an underground or aboveground gas pipeline from the proposed plant to the existing gas network. The preparation and clearing of the site, followed by the construction of access roads, power plant and ancillary facilities with the installation of equipment, including fuel and water storage facilities. During the Operational Phase the Power Plant Facility will be operated on a 24 hour, 7 days a week basis. There will be some traffic bringing supplies to the power station during commercial operations. There will general maintenance and servicing of the facility on an annual basis and major maintenance activities approximately every 6 years. Project Schedule The construction of the power plant is estimated to take approximately 10 months. Construction is planned to be completed by late Potential benefits The construction of more power plants in Nigeria will result in a more reliable source of power for industry and other technologies as well as for the supply of domestic power thus resulting in a more sustainable development for the country. Potential Issues A power plant can affect the environment by its construction and its operation. These effects or impacts, can either be temporary or permanent. Below are the potential issues or impacts which could result from the Greenfield Power Generation Plant. Air Quality: Air pollutants from the operating power plant could decrease ambient air quality, therefore the power plant will need to be fitted with pollution control equipment to reduce emissions. Noise: Operating the power plant could increase noise levels in the area and may be a concern particularly to nearby residents, medical facilities, schools, day-cares, or users of nearby parks or recreational places. Vegetation: Vegetation Impacts can be of two basic types, including direct impacts of vegetation removal and damage during construction and indirect impacts on vegetation from air pollution or surface water impacts caused by the power plant. Water Quality: Pollution and pollutants discharged to surface water from power plants can result in adverse water quality effects Wildlife: Impacts on vegetation could create a chain of wildlife impacts. Impacts on local or migrating wildlife could occur when their habitat and source of food is removed or damaged. The food source could be the vegetation itself or bugs, animals, birds, or organisms that rely on the vegetation for food. Resettlement Action: Due to the location of the power plant possible resettlement may be required for surrounding communities.

2 Figure 1: Site Location (see red triangle)

3 Legal Framework Under the Nigeria Environmental Impact Assessment Decree (No. 86 of 1992), Energy Culture is required to submit an EIA in order to construct and operate a power plant under the Nigerian government s programme. Energy Culture has appointed Fugro Nigeria Limited (a Nigerian consultancy) in collaboration with Environmental Resources Management (ERM) to undertake the ESIA for this project. The ESIA will describe the project, the affected areas, assess the likely positive and negative impacts of the project and describe the proposed plans to manage these impacts. The ESIA Report, along with comments received from stakeholders will be submitted to the Federal Ministry of Environment (FMEnv) who will decide whether or not to authorise the proposed project. EIA Process The EIA process aims to identify all the potential impacts of the proposed project, assess the significance of the impacts, and to present measures to mitigate these impacts. Key steps in the EIA Process are detailed in the table below. Submission of EIA Application and Project Proposal Screening 1. Submit EIA application and project proposal to FMEnv. 2. FMEnv conducts Inspection and Screening 3. Stakeholder scoping meetings 4. Submit Scoping Report and ToR to FMEnv 5. Undertake baseline studies and further stakeholder consultation. 6. Submit draft EIA report and EMP to FMEnv 7. FMEnv determine review method and review EIA report and EMP. 8. Submit final EIA report and EMP to FMEnv. TOR Revision Required Inspection EIA Required Scoping and TOR TOR Review EIA We are here 9. FMEnv decision to issue Environmental Permit. Stakeholder Engagement The stakeholder engagement process is designed to conform to the Nigerian EIA Decree and international standards, including the IFC Performance Standards. Key objectives for stakeholder engagement for this project are: Inform and educate stakeholders. Gather local knowledge to improve understanding of the environmental and social context. Better understand locally-important issues. Enable stakeholders to input into the project. Incorporate stakeholder views into the development of management plans. Lay foundation for future stakeholder engagement. EIA Revision Required Public Hearing / In-house / Panel Review EP Declined Figure 5: EIA Process Flow Diagram Submission of Draft EIA Report Draft EIA Review Determine Review Method FME Decision EP Issued Figure 1.1: Example of a gas-fired Figure 1.2: Example of gas turbine Figure 1.3: Existing 132 kv line which Figure 1.4: Gas metering station to the power plant in Australia. auxiliary systems and infrastructure will transmit power to the national grid east of the Project site.

4 How to Submit Comments We would like you to take part in this EIA process so you can raise any issues and comments you may have about the proposed project. Your comments are a key part of the study to see whether the project should proceed and it is important that Energy Culture understands your comments so that they can be answered and dealt with in the EIA report. To receive regular information throughout the EIA process, you must register as an Interested and Affected Party. To register please send this form to Energy Culture at any of the addresses given below. If you want to make any comments at this stage please use this form. Alternatively, please do not hesitate to send an or write separately. The draft EIA report will be submitted to the FMEnv and made available for public comment. You can make additional comments for the study team to record on a separate page or on the reverse side of this form. Please post or fax this comment sheet to any of the addresses below as soon as possible and preferably by (Date) so that we can take your comments into consideration in the EIA. Please fill in your details Name: Organisation: Telephone: Position: Cell phone: Address: Please post or fax this form to any of the following addresses: Fugro Nigeria Limited Tel: +234 (0) Fax: n/a emeka.okusor@fugronigeria.com Address: 91 Odani Road (Fugro Avenue) Off PH-Eleme Expressway Elelenwo P.M.B. 053 Port Harcourt Rivers State Nigeria Environmental Resources Management Tel: Fax: AbeokutaIPP.ESIA@erm.com Address: 1st Floor Building 32 The Woodlands Office Park Woodlands Drive Woodmead 2148 Johannesburg South Africa

5 Comments Form It would be useful if you could answer the questions below but please feel free to provide any comments you would like to raise. Please continue on additional paper if required. 1. What are the primary comments that you or your community or your organisation has about this project?