SHAMS MA AN SOLAR PV POWER PLANT PROJECT (50MW) NON-TECHNICAL SUMMARY IN ENGLISH 21 October 2014
TABLE OF CONTENT Table of Content... i 1. Introduction... 1 1.1 Project Alternatives... 2 2. Project Description... 2 2.1 Project Setting... 2 2.2 Project Components... 3 2.3 Project Phases... 4 3. ESIA, Stakeholder Engagement & Land Acquisition Process... 4 3.1 ESIA Process... 4 3.2 Jordanian Environmental Clearance Process... 4 3.3 Stakeholder Engagement Process... 5 3.4 Land Acquisition Process... 5 4. Summary of Environmental and Social Baseline Conditions & Impacts... 5 4.1 Introduction... 5 4.2 Environmental & Social Baseline Conditions & Impacts... 6 5. Environmental & Social Management & Monitoring... 11 6. Further Information & Contact Details... 12 Page i
1. INTRODUCTION As part of Jordan s overall strategy to diversify energy resources and increase the share of renewable energy, a number of renewable energy projects have been proposed by the private sector to the Ministry of Energy and Mineral Resources (MEMR). Shams Ma an Power Generation PSC (hereafter referred to as the Developer ) has been selected by MEMR for the development of a 50 Mega Watt (MW) Solar Photovoltaic (PV) Power project (hereafter referred to as the Project ) in Ma an Governorate. This document provides a summary in non-technical language of the findings contained in the Environmental and Social Impact Assessment (ESIA) Report, which has been submitted to the Ministry of Environment (MoEnv). The Developer will be seeking financing for the Project from prospective lenders, including International Financial Institutions (IFIs). Therefore, the ESIA has been also developed in accordance with the International Finance Corporation s (IFC) Policy on Social and Environmental Sustainability including the IFC Performance Standards (PS) and the Environmental, Health & Safety (EHS) Guidelines. The IFC requirements have become the de facto international environmental and social performance benchmark for project financing. The ESIA Report contains more detailed information on the Project and the environmental and social issues considered. It includes a description of the need for the Project; details of the Project and the main alternatives considered; the assessment of the potential effects from the proposed development upon the environment and community; and details of any required procedures to mitigate significantly adverse environmental effects. It includes an Environmental and Social Management Plan (ESMP) which describes the monitoring and mitigation requirements for the duration of the project, including responsibilities and any legal requirements. The Developer commits to the ESMP. A Stakeholder Engagement Plan (SEP) has also been developed for the Project, which describes the planned stakeholder consultation activities and engagement process. This Non-Technical Summary (NTS) describes the Project, and summarizes the findings of the environmental and social investigations conducted and the risks identified. The Project will result in crucial positive environmental and economic impacts on the strategic and national level given the current challenges the energy sector in Jordan is facing. Such positive impacts underpin rationale for the project: The Project allows for more sustainable development and shows the commitment of the Government of Jordan to realizing its Energy Strategy and meeting the set targets for renewable energy sources; The Project will contribute to increasing energy security through reliance on an indigenous, inexhaustible and mostly import-independent energy resource. The expected electricity generation from the Project will serve the average annual electricity needs of more than 30,000 local households; The Project will produce clean energy which will contribute to lowering electricity generation costs when compared to the current costs associated with liquid fuels, and thus leads to a decrease in the Government of Jordan s fiscal deficit; and Generating electricity through PV power is rather pollution-free during operation. Compared with the conventional way of producing electricity in Jordan, the clean energy produced is expected to reduce the current consumption of liquid fuels, and will help to reduce greenhouse gas emissions and air pollution. The Project will save more than 100,000 tons of carbon dioxide emissions each year in Jordan. Page 1
1.1 Project Alternatives During the project s development a number of alternatives have been identified and analyzed, including project location, processes, technology and the no project alternative: The Project location was assessed upon its proximity to the national grid and road network, the natural landscape of the site, whether the land had any community value and the reasonable distance from any sensitive receptors. All these factors informed the decision of the chosen Project location. Other solar technologies (such as concentrated solar power), wind technology and thermal power plants were considered as technological alternatives to solar PV power. Project design alternatives were also considered, mainly related to water use and measures to maximize water use efficiency at the Project site and reduce water consumption levels. 2. PROJECT DESCRIPTION 2.1 Project Setting The Project is located within Ma an Governorate in the South of Jordan, approximately 200km south of the capital city of Amman, 9km southeast of Ma an city and 6 km northwest of Al Mahata Village. The Project site is near a major highway (Highway #5) which runs from Ma an city to the Saudi Arabian Border in the South (known as the Mudawwara Borders). An Industrial Park is located 1.5km north of the Project site. Figure A below shows the Project location. Figure A: Project Location The Project site is 20 meters from an operating railway on the northern site boundary. The railway is operated and managed by the Aqaba Railway Corporation (ARC) and transports phosphate from the mines in Ma an Governorate to Aqaba. Page 2
The Project is located within a Development Zone known as the Ma an Development Area (MDA) which is managed by the Ma an Development Company (MDC). The MDC has allocated an area of 5km 2 for the development of solar power generation projects known as the Solar Park (highlighted in black in Figure A above). Shams Ma an has been allocated an area of 2km 2 within the Solar Park (highlighted in red in the Figure A above) for the development of their 50MW Project. The remaining 3km 2 of the Solar Park will be developed by eight other companies for a total generation capacity of 160MW. 2.2 Project Components The key component of the Project are the power arrays which are composed of several Photovoltaic (PV) panels which convert solar energy (radiation from the sun) into electricity. The Project includes thirty four (34) power arrays distributed throughout the Project site where each array will have about twenty thousand PV panels. Typical PV power arrays are shown in Figure B below. Figure B: Typical PV Power Arrays Composed of PV Panels The Project will also include underground cables which connect the power arrays with a collector station. The collector station collects all the electricity from the underground cables and then connects with a substation, which will connect to the National Grid 500m to the north of the Project site. Other buildings and infrastructure needed onsite include: Office buildings used for normal daily operational related work; A warehouse for storage of equipment and machinery; A road network for access to the site; and On-site water reservoirs for cleaning equipment. The construction of the PV Project is anticipated to start in November 2014 and take approximately 15 months. Operation of the Project is anticipated to start in January 2016 for a period of 20 years as agreed with MEMR. The Project will provide approximately 500 jobs during the construction phase. Jobs will include engineers, electrical and mechanical technicians and unskilled workers. During operation, the Project will provide approximately 25 jobs, which will include skilled labour (such as electrical and mechanical technicians) and unskilled labour (such as module cleaners and security personnel) for a duration of 20 years. Page 3
2.3 Project Phases Planning and Construction Phase: This phase includes preparation of a detailed design for the Project, planning and transportation of the various Project components to the site (e.g. PV modules), and onsite preparation activities for installation of the PV arrays and various other components. Site preparation activities could include excavations, grading, levelling, and land clearing activities. Operations Phase: This phase involves maintenance of the PV Power Arrays and all the various electrical equipment. This includes, for example, regular PV module cleaning to prevent dust build-up which could affect their performance. Decommissioning Phase: it is unclear whether MEMR would take ownership of the Project after 20 years and continue operating it, or whether the Project will be completely decommissioned. In the case of decommissioning of the Project, decommissioning activities could include the disconnection of the various Project components for final disposal. 3. ESIA, STAKEHOLDER ENGAGEMENT & LAND ACQUISITION PROCESS 3.1 ESIA Process The ESIA has been prepared in accordance with the: Jordanian environmental clearance process to obtain an environmental permit, and the legal framework including the Environmental Impact Assessment Regulation No. (37) of 2005 ; IFC Policy on Social and Environmental Sustainability including the IFC Performance Standards (PS) and the Environmental, Health & Safety (EHS) Guidelines which cover key areas of environmental and social impacts and issues. 3.2 Jordanian Environmental Clearance Process The process for environmental clearance and obtaining the environmental permit for this Project is stipulated by the Environmental Protection Law No. (52) of 2006, Environmental Impact Assessment Regulation No. (37) of 2005", and the Instructions for Site Selection of Development Projects for the year 2012. This comprises of a number of key steps: Location/Site Approval Permit Application & Decision: The Developer applies to the MoEnv with the intention to undertake a development project and the MoEnv determines the appropriateness of the site for the proposed development. Screening Decision/EIA Requirement: As part of the location/site approval permit decision, the MoEnv determines whether or not an ESIA is required of the proposed development project and the nature of this report. EIA Study Phases: The ESIA comprises of 2 phases: - Scoping Phase: which includes the undertaking of a scoping session and submission of a Scoping Report/Terms of Reference (ToR) approved by MoEnv for the study; and - Assessment Phase: which includes undertaking the baseline studies, evaluation and assessment of impacts, and the development of an environmental management plan. Approval of EIA: Upon submission of the ESIA document, the MoEnv reviews the report and either approves the study and grants the environmental clearance and environmental permit for the Project or rejects it. The ESIA process for the Project has followed the environmental clearance process: Page 4
Location/Site Approval Permit & Screening Decision: the site has been approved by the MoEnv for the development of the Project conditional that a comprehensive ESIA study is undertaken before commencement of any construction or operational activities; Scoping Phase: the scoping session for the Project was held on 1 April 2014 and the Scoping Report/ToR was submitted to the MoEnv and was approved on 24 April 2014; and Assessment Phase: The assessment phase has been carried out in accordance with the approved ToR by the MoEnv. The environmental permit has been granted for the Project and the ESIA was approved on 10 July 2014. 3.3 Stakeholder Engagement Process Stakeholder engagement is an integral part of ESIA good practice and is a statutory requirement of the national EIA legal framework in Jordan and is a requirement of IFC PS1 1, which set out certain recommendations for stakeholder engagement to ensure that stakeholders are appropriately engaged on environmental and social issues that could potentially affect them through a process of information disclosure and meaningful consultation. Stakeholder consultation and engagement has been carried out in accordance with the regulatory requirements in Jordan and international best practice. A Stakeholder Engagement Plan (SEP) has been prepared to identify the key project stakeholders and define relevant procedures. Stakeholder engagement will be implemented as an ongoing process involving the public disclosure of appropriate information so as to enable meaningful consultation with stakeholders and potentially affected parties who can raise their comments or complaints in line with the procedures set in the SEP. 3.4 Land Acquisition Process The Project site is located within the Ma an Development Area (MDA) and specifically within the Solar Park. The land parcels are owned by the Ma an Development Company (MDC). The Developer has signed a Land Lease Agreement with the MDC for leasing of the Project site for the required development over the Project duration. Therefore the Developer will undertake no land acquisition, and there will be no involuntary resettlement nor economic displacement will be undertaken as part of this project. 4. SUMMARY OF ENVIRONMENTAL AND SOCIAL BASELINE CONDITIONS & IMPACTS 4.1 Introduction The environmental and social impact assessment (ESIA) comprised of environmental and social baseline studies and an assessment of impacts. Mitigation measures were identified for potential significant effects and the significance of residual effects determined. The impact assessment followed an assessment methodology developed to reflect current best practice. The ESIA has provided the engineers and designers with important information regarding the sensitivities of baseline environmental and social resources that could be affected by the proposed development. The resulting design proposal has been developed to take account of these sensitivities and avoid negative environmental effects wherever possible. The key baseline and impact assessment findings are further discussed below. 1 IFC Performance Standard One: Assessment and Management of Environmental and Social Risks and Impacts; January 2012. pg 7-9. Page 5
4.2 Environmental & Social Baseline Conditions & Impacts (i) Landscape and Visual The Project area is characterized by fairly flat surfaces shown in Figure C and is classified as a desert-like habitat that is barren and mostly covered with Chert Pebbles, with scattered vegetation strips. Views towards the northern parts of the site are limited to the Highway #5, High Voltage National Grid, Railway, and the Industrial Park while views towards the south, east, and west are limited to the desert stretch. The Project area does not have any key sensitive visual receptors. Figure C: General Topography and Landscape of the Project Site The key impacts from the Project development are limited to the operation phase and which include impacts from project visibility and impacts from glare, both of which are discussed below. Although there is expected to be a visual impact of the project, there are no key sensitive visual receptors within the surrounding vicinity of the Project site, and such impacts are considered to be of minor significance. The cumulative impacts from the various PV development projects of the Solar Park are similar to this Project in specific and are also considered of minor significance. There is potential for glare from the PV panels, as shown in Figure D below, which may affect the operator of the train and commuters along Highway #5. This impact is expected to be temporary and of minor significance. The cumulative impacts from the various PV development projects of the Solar Park area are similar to this Project in specific and are also considered of minor significance Mitigation to avoid any impacts on receptors recommends that the Developer coordinates with the other developers of the Solar Park to inform the Aqaba Railway Corporation about the potential for glare in the area, as well as the Ma an Public Works Directorate to install informative signs on Highway#5 for commuters. Page 6
Figure D: Typical Glare from PV Panels (ii) Land Use The Project site location does not conflict with any land use planning as set by the various governmental institutions (such as the Ministry of Municipal Affairs, Ministry of Environment, Ministry of Agriculture, etc.). Consultation with relevant local governmental institutions and the local community concluded that the Project site and the Solar Park area is not considered of any specific value to the local community and is not utilized for any specific purpose (such as agricultural activities). In addition, the area is not known for nomadic or semi-nomadic settlements given the natural characteristics of the site (being a desert area that is arid and barren with no water resources). There are no anticipated impacts from the Project in relation to land use. Similarly, there are no cumulative impacts from the various PV development projects of the Solar Park area. (iii) Geology, Hydrology, and Hydrogeology A wadi intersects within the Project site known as Wadi Aqeeqa. This wadi is generated from high land and then spreads to several branches which merge and diverge in and near the Project area location as shown in Figure E below. This wadi has only seasonal floods of short duration and drains mostly eastward towards the railway and Highway#5. The Project site is therefore subject to potential risk of local flood hazards during the rainy season and especially during flash flood events. Page 7
Figure E: Wadi System within the Project Site To this extent, the MDC has requested that each developer within the Solar Park undertake an individual flood risk study for the specific project site to provide measures to mitigate flood risks. Nevertheless, it is recommended that a holistic approach is adopted by the MDC in coordination with the various developers within the Solar Park area for managing and mitigating flood risks, given the generic nature of such risks on all developments. Such a holistic approach could include the undertaking of one flood risk study for the entire Solar park area. During the construction and operation phase, improper housekeeping practices (e.g. improper management of waste streams, improper storage of hazardous materials, etc.) could contaminate and pollute soil which in turn could pollute groundwater resources. Mitigation measures to control such impacts and ensure proper housekeeping practices are outlined in the Project s ESMP. Any cumulative impacts from the various PV development projects of the Solar Park are similar to this Project and can be managed through similar mitigation measures identified within each Project s ESIA and ESMP. (iv) Biodiversity The site s habitat is considered barren and of low ecological significance due to its natural setting. Generally, there are no protected animal, plant or bird species within the Project site, nor is the Project site located within or near an area of environmental concern. The area is considered to be disturbed by human activities and this could also affect the biodiversity of the site. This includes factors such as the presence of a nearby highway and railway and other projects in the wider area such as mining and the Industrial Park. Site preparation activities during construction may disturb existing habitats, however these impacts are considered to be minor due to the site s low ecological significance. Mitigation measures for impacts to biodiversity have been identified, such as good housekeeping, and these measures will be implemented throughout the construction and operation phase of the Project. Any cumulative impacts from the various PV development projects of the Solar Park are similar to this Project and can be managed through similar mitigation measures identified within each Project s ESIA and ESMP. Page 8
(v) Archeology and Cultural Heritage The Project site is devoid of any important or significant archeological or cultural remains. However, within the Solar Park area, there are two locations where remains were recorded and which must be protected: An Ottoman military camp site (recorded approximately 700m outside of the Project site to the west) which was used during the building of the Hejaz Railway; and A watchtower (recorded around 80m outside of the Project site to the east) which relates to the defense system of the Hejaz Railway. In order that these remains are not damaged during construction, mitigation measures have been identified to ensure proper management of construction activities and to prevent damage to those sites and ensuring appropriate code of conduct by construction workers. There is the potential for remains of archaeological importance to be discovered during construction. An appropriate chance finds procedure will be implemented should such remains in the ground be discovered throughout the construction phase. Any cumulative impacts from the various PV development projects of the Solar Park are similar to this Project and can be managed through similar mitigation measures identified within each Project s ESIA and ESMP. (vi) Air Quality and Noise Air quality and noise levels are all currently within the legal limits at the Project site. Construction activities may produce an increased level of dust and particulate matter emissions, which will temporarily impact ambient air quality. The use of machinery and equipment are expected to be a source of noise and vibration within the Project site and its surroundings. The dust control and suppression measures as well as noise suppression measures have been identified to control such impacts. Any cumulative impacts from the various PV development projects of the Solar Park are similar to this Project and can be managed through similar mitigation measures identified within each Project s ESIA and ESMP. (vii) Infrastructures and Utilities Water Resources and Utilities water supply to this Project will most likely be from MDC through the water supply system to the Industrial Park which includes a pipeline from the local water network and two water wells located within the Industrial Park. A license has been granted from the Ministry of Water and Irrigation for drilling and operation of the wells and the water supply is considered to be able to cope with the demands of the Project. Wastewater and Solid Waste Utilities Wastewater from the Project will most likely be disposed at a wastewater treatment plant located within the Industrial Park which has sufficient capacity. Solid waste from the Project will most likely be disposed at the Ma an Central Landfill Site. Both facilities can adequately handle waste produced by the Project. Hazardous Waste Utilities Hazardous waste from the Project will likely be disposed at the Swaqa Hazardous Waste Treatment Facility. Of particular importance is the disposal of the PV panels at the decommissioning phase. Such panels will be considered hazardous and electronic waste by the Ministry of Environment and must be disposed at hazardous waste facilities and will be of significant number (around 700,000). It is unknown whether the Swaqa Facility would be able to accept such quantities in twenty years time. The ESIA and ESMP recommends that a disposal plan be developed before commencement of the decommissioning phase; the Plan must first opt for disposing the panels as part of panels supplier s global recycling program Page 9
whom offers collection and recycling services for their end-of-life PV modules. As a last option the plan must investigate the disposal at hazardous waste facilities through coordination with the MoEnv. Road network Project components will be transported to the port of Aqaba and then transported by road to the Project site, which must be managed so as to not affect traffic flow on the highway. The ESIA and ESMP recommends that a Transport Study is developed before commencement of any transportation activities to ensure that the transportation process is properly and adequately managed in coordination with the relevant entities. Railway Improper management and movement of vehicles and machinery into/out of the site during the construction and operation phase could damage the railway. The MDC has agreed to construct a road to cross the railway. There will be a railway signal on the junctions between the road and railway to instruct the user of the road not to pass when the train is near. The ESIA also investigated the cumulative impacts from the various PV developments within the Solar Park; such cumulative impacts are unlikely to entail any constraints on the infrastructure and utility elements discussed above and can be controlled through the similar mitigation measures identified within the ESIA. Any cumulative impacts from the various PV development projects of the Solar Park are similar to this Project and can be managed through similar mitigation measures identified within each Project s ESIA and ESMP. (viii) Socio-economic Conditions The main socio-economic conditions of those local communities near the Project site (mainly Ma an City and Al-Mahata village) can be summarized as follows: Ma an city has a population of around 33,000 while Al-Mahata Village is around 300. The main livelihood and employment patterns of those local communities include public services (public administration offices and civilian central government) as well as industry and commerce (mainly limited to small economic establishments that engage in retail trade of commodities); One of the main socio-economic challenges facing those communities is unemployment. This is attributed to several reasons, which includes amongst others: (i) lack of governmental and private sector investment projects that can employ labour, (ii) the development projects that were targeted for the area were weak and several of those projects failed to employ local community members; and The local community expressed their concern on the lack of qualified training and capacity building programs in the area. Based on several past experiences by the local community, several Vocational Training Center s (VTC) were established with the objective of providing training and capacity building in the hope of providing employment opportunities in development projects. Such VTC s failed to deliver the required qualifications to local community, and thus they were not employed within such development projects as they were considered incompetent. The Project is expected to create around 500 job opportunities during the construction phase for a duration of approximately 15 months and around 25 job opportunities during the operation phase for a duration of 20 years. The Developer is committed to social responsibly as it s aiming to hire to the greatest extent possible local community members throughout the construction and operation phase, and is also considering other social responsibility aspects to the local community. Nevertheless, given that the Project is part of the Solar Park where other PV developers will be operating it is highly recommended that the various PV developers, along with MDC, collaborate and collectively develop and adopt a holistic social Action Plan for the area. Such collaboration is favored over individual planning and implementation by each developer because it is more likely to bring a greater and more sustainable benefit to the local community. The Plan, must at a minimum, consider the following components amongst others: Page 10
- Direct involvement and contribution to the VTC s training and capacity building program to ensure that local community that is to be recruited are equipped with the required skills and qualifications; and - As part of the Action Plan, the ESIA requires that each developer allocate funds for social responsibility programs to be implemented for the local communities. Such funds should be managed in coordination with other entities that have the expertise in working with the local community and have an understanding and awareness on their needs and the socio-economic challenges that they face. Such collaboration would allow for a transparent and systematic method for allocating funds which in turn would ensure maximum benefit to those local communities. (ix) Occupational Health and Safety During the construction and operation phase there will be generic occupational health and safety risks to workers, such as working on construction sites, exposure electric shock hazards during maintenance activities, etc. The Developer has prepared a detailed Occupational Health and Safety Manual to ensure the health and safety of all personnel in order to concur and maintain a smooth and proper progress of work at the site and prevent accident which may injure personnel. (x) Community Health, Safety, and Security The risk of trespassing by unauthorized personnel into the Project site could result in potential risks from several hazards of the various Project components (e.g. electric shock, exposure to chemicals and hazardous materials, etc). To mitigate such impacts, the Developer will be installing a non-electric fence around the entire facility to control trespassing of unauthorized personnel. In addition, there will be two security guards whom will be available onsite on a 24hour/ 7day basis. 5. ENVIRONMENTAL & SOCIAL MANAGEMENT & MONITORING The ESIA contains an outline plan for managing and monitoring the environmental and social impacts during construction, operation and decommissioning of the Project. Monitoring will form an important part of the implementation and operation of the project. In accordance with the EIA Regulation No. (37) of 2005, the Regulator (being MoEnv), will be responsible for undertaking compliance monitoring to ensure that the responsible entity is adhering to the ESMP requirements. During both construction and operation, certain activities, indicators and environmental and social resources will be monitored. Monitoring may include observation and recording, or may include data gathering and sampling. Monitoring reports will be required from the Contractor and Operator during the construction and operational phases. The monitoring results will be useful for assessing the long term cumulative effects, if any. If ongoing problems occur, adaptive mitigation measures can be developed and implemented. Page 11
6. FURTHER INFORMATION & CONTACT DETAILS Full project preparation documents, including the ESIA, its respective annexes, including the ESMP and SEP are available on the Developer website (http://www.kawar.com/content/energy-water-environment). In addition, hard copies are available at the Ministry of Environment, Ma an Development Company (Ma an and Amman Office), Greater Ma an Municipality, and Ma an Governorate. Contact details for the Project are: Mr. Hanna Zaghloul Chief Executive Officer 24 Sharif Abdul Hamid Sharaf Str. Shmeisani P.O. Box 222 Amman 11118 Jordan Tel: +962 6 560 9500 Fax: +962 6 569 8322 E-mail: hanna.zaghloul@kawar.com Page 12