E=330VOL2ENVIRONMENTAL IMPACT ASSESSMENTHARIPUR POWER PROJECTTECHNICAL APPENDICIES: VOLUME 11PREPARED FOR:AES HARIPUR PRIVATE LIMITEDDHAKA, BANGLADESHPREPARED BY:ESG INTERNATIONALGUELPH, CANADAMARCH 1999

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EMD1ONLSW AC1ASSESI_rAES HARIPUR POWER PROJECrTABLE OF CONTENTS: TECHNfCAL APPENDICES (VOLUME IQAppendix A: Project Sponsor and EIA Study Team Irifornation TAB AAppendix B: List of Proposed Machinery and Conceptual Power Plant Layout TAB BAppendix C: Project Site Land Lease Agreement TAB CAppendix DI: DOE Site Clearance Certificate TAB DD2: DHPE Tube Well CertificateD3: Bangladesh Inland Water Transportation Authority No Objection Certificateand Dredging ApprovalD4: Bangladesh Water Development Board No Objection CertificateAppendix E: Preliminary Environmental Issues List TAB EAppendix Fl: Environmental Protection Regulabion-Bangladesh DOE TAB FF2: Environmental Protection and Social Framework - IDCOLF3: Pollution Prevention and Abatement Handbook, Thermal Power Plants -Intemational Finance CorporationP4: Operational Policies - Intemational Finance CorporationAppendix G: Preliminary Process Flow Diagrams TAB GAppendix H: BPDB Electrical Transmission Line Construction and Operation TAB HImpact ManagementAppendix I: litas Natural Gas Transmission Pipeline Construction and Operation TAB IImpact ManagementAppendix J: Organization Hierarchy of the Govemment of Bangladesh TAB JAppendix Ki: Sitalakhya River Sediment Sampling Results TAB KK2: Sitalakhya River Surface Water Sampling ResultsAppendix Li: Sitalakhya River Traffic Survey TAB LL2: Akkha Canal Traffic SurVeyU: Archaeological and Cultural Sites SurveyAppendix M: Ambient Noise Sampling Results and Screening Analysis TAB MAppendix N: CORMIX Modelling Results TAB NAppendix 0: Air Quality Modelling Results TAB 0Appendix P: Reseftlement Action Plan TAB PP1: Consultation Meetings for CompensafionP2: Supplemental Resettlement Action PlanESG UITERNATIONALMarch 5, 1998

ElNVIRON AL PACrASSE9S _AMS HMiPUR POWER PROJECTLIST OF APPENDICES CONTINUEDAppendix 01: Power Plant Safety Procedure Marmat TAB QQ2: Draft Emergency Response PlanAppendix R: Annual Monitoring Form TAB RAppendix S: Land Slide Check by Deep Dredging TAB SESG INTERNATIONALMarch 5, 1998

BV~EDFAL MPACrASSESSMENrAES HARIPUR POWER PROJECTAPPENDIX A: PROJECT SPONSOR AND EIA STUDY TEAMINFORMATIONESG INTERNATIONALMARCH 5, 1999

EKVN MEKrMiALnPAT ASSES rAES HIARIPu POWER PROJECrA.1. Project CompanyThe AES Corporation, founded in 1981, is the world's largest global power company. AES Corporation suppliessafe, clean, reliable electricity to meet global energy needs. tt owns or has an irnterest in eighty-seven plantstotalling over 23,000 MW in thirteen countries around the world. In addition to having assets in excess of $8 billion,they have numerous projects under construction or in the late stages of project development.AES Corporation has over IS yeas of experiece developing and qperafiri, large, campx pow generatingfacilities. They operate gas-fired, hydropower, and solid-fuel plants, and employ roughly 31,000 people. Projects incountries such as Brazil, Argentina, Kazakstan, Dominican Republic, China, and Pakistan are currently operatingunder AES Corporation's ownership.A.2. Project SponsorAES Corporation formed AES Harpur Private Limited (AES), based in Dhaka, Bangladesh, for the purposes ofmanaging the Haripur Power Project. AES is the project sponsor and is supported with technical and managerialstaff from AES Corporation. It is a wholly owned subsidiary of AES Corporation and was incorporated on April 1,1998 under the Govemment of Bangladesh's Companies Act of 1994. The authorized capital of the company isTaka 10 million divided into 10,000 shares of Taka 1,000 each. Management of the company is comprised of aBoard of Directors and a number of recruited personnel.AES is developing the 360 MW Haripur Power Project, which is to be established on a Build, Own, and Operatebasis. The project was granted to AES through a competitive bidding process that has resufted in the execution offour project agreements;> Implementation Agreement with the Ministry of Energy and Mineral Resources;> Gas Supply Agreement with Ttas Gas Transmission and Distribution Company Limited;> Land Lease Agreement with the Ministry of Industries; and> Power Purchase Agreement with Bangladesh Power Development Board.All project agreements were officially executed on September 17, 1998. AES expects to start commercial operationof the power plant within thirty months of the execution of the project agreements.A.3. Study TeamThe Canadian-based firm of ESG Intemational was the lead consultant for preparation of the Initial EnvironmentalExamination and Environmental Impact Assessment. ESG Intemational's personnel are familiar with power projectdevelopment as well as the environmental guidelines applied by multilateral lending institutions, such as theIntemational Finance Corporation. ESG Intemational also has experience with the environmental assessment andapprovals process administered by the Department of Environment for Bangladesh.To aid in the collection, interpretation, and analysis of data relevant to this project, ESG Intemational has co-ordinated input from specialist subconsultants in the areas of: air dispersion modelling and noise assessment (RWDIInc., Canada); public consultation and socio-economic assessment (Deodar Associates Inc., USA); in-countryexpertise (Design Planning Consultants, Bangladesh); and power plant design and operation (AES Haripur PrivateLimited and Metz and McLellan).ESG INTERNATIONAL AlMARCH 5,1999

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0L ArAS5rAES HARIPUR POWER PROJECrAPPENDIX B: LIST OF PROPOSED MACHINERIES ANDCONCEPTUAL POWER PLANT LAYOUTESG INTERNATIONALMARCH 5, 1999

BHapixrC=zbiw CyeklFawwhuC SR. REAKO. _EQUIPMENTSCOPE Q"rY- Magneic sber 1- Prosion conductvity meter 1- Orsat gas analyzer 1- Spectmphotometer- pH measuring metem with elecbodes- Drying oven 1- Mume furnaoe- Water bath 1- Oil vscometer- Cent fue.- Laboratory air vacuum pump 1-Turbidty meter- Saet rst aid kit 1- Flash point apparatus18.0 Workshop Equipment lot- See th secdon 10.5.1519.0 MiscellanhousI*CO2boe'.- N2 botte I set- H2 boltleC. ELECTRICAL1.0 230 kV switchyard and outdoor equipment- 245 IV GCB, 40 kA 6 sets- 245 kV, CT. CVT, EDS, DS. ES 1 lot-216 kV, LA, 10 kA 1 lot- Tariff metering system 1 iotStctre, conductors and others 1 lot- G/T generator transformer 230119 kV I lot- SIT generator transformer 230113.8 kW i lot- Unit transformer 1916.9 kV & 13.tY6.9 kV 2 sets- Grr & StT generator Isolated phase bus duct 2 sets- Oher necessaries 1 lot2.0 Indoor equipment- 6,9(6.6) kV switchgear 1 ht- 415(400) V switchgear I lot-415(400) V NSPS I lot-415(400) V MCC I lotDC 220 V system 2 setr.- 230V UPS system I set* Switchyard control panels I lotHyundii.Enig. & Const Co., Ltd..

_~ -NO. ~~EQUIPMENT SCOPE Q'TY R5FAARKSProtection & relay panels for ewitchyard and transformers I lotGCT & ST generator swithgaar 2 sets-Aux Transformer 6.6/0.415 kV 8 setsOer neesaries lot3.0 MIslamneomus syestem- Grounding and lightning system I bt- Lightng system 1ot- Fire detection & alarm receiving system I lot- Comnunican system Io- Cathodic proteton system 1ot- Cable and raceway (tray, conduit, etc.) I lot0. CONTROL AND INSTRUMENTATIONIA Distuted control systm for combined cycle- Operators CRT & Keyboarud - PMtl.s 3 st- Engineering wobuiston (CRT & per) I set- Date highway (Redundancy) I set- Long term data storege (CRT & pnnter) 1 set- Plant proteckon and interlock system 1991- Sequen control ysten I set-ModulatW contro system *setSequence event recording 1set2.0 Lowl control panels I ot3.0 Field instrumentauon 1 lot- Measuring elemenb- Local gauges- Local switehes- Transmitters4.0 Control vaves 1ht- Pneumalc actuatorsControl valvesE. SERVICES FOR THE CLIENT1.0 On-site & off-site training 1 l2.0 Site office accommodation for employe' pesonal I lt- Five offices . .Conferene rmom (capable of accommodating 20 people) I___ ___ Hyundai Eng. L Consu. Co., LtL.

DaugIad~~~~~~~~k ~HiparipzCombinedCcimPoPmt(SR.NO. EQUIPMENT SCOPE Q'TY REMARK(S- Caeiftia (may be common wffh falfibes provided forContraes conhtfeton mrnhgegment personnel- Tolles wfth shower facilibesF. OPTION ITEMS1.0 Recommended spare parts for 6 yeas operaton i lot2.0 Recommended spare parts for major overhaul 1 lt6 PRUMINARY WORK1.0 Site prepartion oivil work to be perforned before finrl 1 lotNTPH~iunidui Eng. & Const Co.- CiT-

uqrcuw Cy cawcrrat9.7.2 Terminal PointsThe following terminal points are specified to limit and clarify Contractor's scope of worksmd rsposibflty.* Fuel gasInterconmecing point to be located 1 meter from the gas supplier's reducing andmetering station.* Electrical powerAt the outgoing 230 kV busbar connection of the plants 230 kV switchyard.* TelephoneAt the site boundary.- Access roadsAt he Haripur village* Site effluent dischargeAt the Sitlakhya river. ChemicalsAt the unloading couple of the bulk storage tank unloading couples* Cooling water abstraction/dischargeAl the SiLalakbya river* Barge landingjettyAt the Sitalakhya riverHyundai Eng. ConsL Co., Ld. -

SR.~~~~SNsO EQUIPMENT SCOPE QIy REM S1.oA Waste water ftatment system (Main proposal)- Abnormal wastewater pond intemal & accessories I- Abnormal wastwatr pump 2- OflstwatrPC"&inbt to., &a c rw t- ODy wastewater ppum 2- CPI oil separatDr I- Neutralmation pond internal & accessories I-Air bkwu 1- Fmal disposal pump 2- HCI dosing tank IHCI dosing pump 2- NaOH dosing tank I- NaOH dosing pump 211.08 Waste water treatment system (Alternative proposal)- Abnorrml wastewater pond intemal & accessories 1- Abnomif wastewater pump 2- Oily waft water pond intemal & acessres 1- Oily wastwater pump 2- CPI oil separ I- Neutrslizaon pond intemal & accessories I( -Air blower IHCI dosing tank IHCI dosing pump 2NaOH dosig tank I- NaOH dosing pump 2- Thickener i -- Sludge rnsfer pump 2- Polyrer subon tank fbr dehydrator 1- Polymer fteed pump 2- Filter washing water tank 1- Filer washing pump 2- Dehydrator 1- Cake hopper 1- Rewvery water pond and accessories 1- Recovery water pump 2- Fina disposal pump 212.0 Compressed aIr system- Air compressor 3- Air dryer 2- Service air receiver I- Instrument air receiver 13.) Fire fighting system .- Fire fighUng pump(Motor driven) 1Hyundai Eng. Const Co., Ltd . ' ;

EaugIsd~~~~~~~~~~~ ~narp.r CaNhd CydeNiWWFha-~~crSR.NO. EQUIPMENT SCOPE QOTY REMARKS- Fire fighig pump(Engine driven) 2- Fire fightng pump(Jocley pump) 1- Fire hydrant system 1 lot-Carbon dndde system I bt. Fne detedion system lotWaLer spray system lot- Sprnmder ystern 1ot- Potble fire exdngusher lot14.0 AC System- Air handfing urit 2Split air conditoning 11- Roof fbn 24Wail fan 15Filrwrun 1 IdDuct work (contrI bulding only) I lot- Piping work 1 lt-Plumbingfxtuet 115.r' Cmne and hoist- EOH crameforgs turbine- EOH crane for steam turbine building 1r EOH crane forwoilhop building 1- Electc monorail hoist for gas compressor 1- Elecic mnonorail hoist for emergenw DIG building 1- 0ectric monorail hoist for boiler feed purmp - Eleb monorail hoist for fre water pump 1-Manual hoist for water atrnent building 1- Gantry crane for intake facility & C.W. Pump 116.0 Emergency Diesel Generator Set- Emergency dlesel generator and auxiiary I17.0 Chemical Laboatory Equipment17.1 Fumiture- Double side center benches 2- Wal benches 4- Wall cabinets 6- Cha 617.2 Apparats,mi GI..-N ,.s- AnalyHical balance Eng - .\'-'-'.Hyumlui Eng- & Const Co-, Lt.

sapucomocydlpowkS9NO. EQUIPMENT SCOPE OITY REMARKSNO. n_-EWA. CILANDBILDING WORK1.0 civa wos t- Equipment foundatons- Cooing water intake structure- Waste water ponds- Cable btnctes- Roads whin battery lIit excuding new acess road- Boundary fence for st serty- Water supply well2.0 Building Works Itota6 trbine gtructure- Steam tLrbine buildingCentral control buNding- AdmInIston buldin. Workshop and sorage- Fuel gas compressor building- Water eabtnent building- chiOnabon end CWP swikchgear building- Diesel genertor house- Service gas strage shelter- Dormitory- Secury gate houseB. MECHANICAL1.0 Gos Turbine Generator 12.0 Heat ReCovery Steam Generator 13.0 Steam Turbine / Generator 14.0 Condensate & Feedwater System4.1 Condenser -4.2 Condenser air extracton equipment *%- Vacuum pump 2- Water box prming vacuum pump 2 .Hyunda Eng. & Cos? Co.. Ud.

Duugt.B b Hsilp rCeselitCycelPowu!'IatSRP.NO. EQUIPMENT SCOPE QITY FtEMARKS4.3 Condenser tube cleaning system 14-4 Condensate ePMralon pump 24.5 HP I IP feedwater pump 24.6 Stam turbine by-pass system (HP iP I LP) 15.0 Main Cooring Water System5.1 Intake faciities-Siltpump 1-stop og 3sCoase arscreen 2- Mechanical cleaner ITravellmg saen 2- Screen wash pump 2-Fish deternt device 15.2 Ciculatng water pump 26.0 AuxTliary Cooling Water System6.1 Clsed coolng water cooer Z6.2 Closed coolg water pump 26.3 CAosed cooling water head tank 16.4 CCW chemical injection tank I6.5 Aux. cooring waWtr pump 27.0 Fuel Gas Supply System7.1 Gas comprssor 37.2 Gas metering wLit- Pressure cotrol vave I- Gas metering system 18.0A Water treatment system (Main proposal)8.1A Raw water (Well water) supply system- Raw water suppy pump 2-Raw wat storage tank 18=2A Deminerarzation plat rHyundai En. Caiisi Co.. Ltd. ~.-

_- CC cy.p_pSR.-EQUIPMENT SCOPE Q_TY REMARKSNO. " - Caton exchanger 2Anion exchanger 2- DegasiFier with bbwer 2- Degasified water pump 4- Mixed bed polisher 2- Regenemton pump 2Dernmneralized waer storage tank I- Derinerareed water make-up transfer pump 2-Air recier 2- Sulphuric acid storage tank I- Sulphuric acid dosing tank 1- Sulphunc acid transfer pump 2- NaOH storage tank I- NaOH dosing tank 1- NaOH vansfer pump 2* Sumw pump I8.3A Seroce war system- Servioe water pump 2BAA Potable water system- Potable water supply pump 2- UC fter 1- NaOCI dosing tank 1- NaOCI dosing pump .2- Elevated head tank8.aB Water breatent system (Altemative proposal)8a B Raw wsaer(River water) supply system- Raw water supply pump 18.28 Pretreated water system- Clarified water pump 1- Clarifier 2- Pressure sand filer 2- AC filter 2- Filtered water tank I- Slurry pump 2 GFiter backwash pump 2- NaOH solution tank I- NaOH feed pumnp 2- Coagulant solution tank 1- - - Coagulant feed pump 2 Ud.Hyundai Eno. & Conat. Co., Ltd.

* 3I hi ubPA R m.Comimsd Cyde P.wPkat- - tBR.NO. EQUIPMENT SCOPE QTY REMARKq- Polymer solubon tank 1- Polymer feed pump 28.30 Denilnerafization plantPrerested water transfer punp 2- Caton exchanger 2-Anion excharger 2Degasiw with blower 2Degas war pump 4- Mbced bed poisher 2- Regeneaton pumps 2Deri watr storage tank I- Deri water rmale.up watr pump 2- Air recwver 2- Sulphuric acd storage tank I- SulPhuric aid dosing tank I- Sulphuric acid transfer pump 2, NaOH storage tank Ii NaOH dosig tank I- NaOH transfer pump 2- Sump pump I8.45 SerVice water system- Senrice water pump 28.50 Potable water system- Potable water supply pum 2- NaOCI dosin tank. 1NaOCI dosing pump 2- Elated head tank 19.0 Chemical fod system. -Ammonialutio tank 1- Ammonia dosing pump 2- Phosphate soluin tank 1Phosphate feed pump 6- Hydrazine soluton tank I- Hydrazine dosng pump 210.0 Chlortnaton sytem- Chlrine container 3- Chlbrinator feo CWP inlke 1l Booser pump for CWP intake 2Hyundai Eng. & Const Co., LI.

Er-LPA iCrASSESinE4rAES HARIPUR POWER PROJECrAPPENDIX C: PROJECT SITE LAND LEASE AGREEMENTESG INTERNATIONALMARCH 5, 1999

LAND LEASE AGREEMENTBETWEENTHE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESHRepresented byTHE MINISTRY OF INDUSTRIESANDAES HARIPUR (PRIVATE) LIMITEDEXECUTED ON SEPTEMBER 17,1998RELATING TOA POWER GENERATION COMPLEX ATHARIPUR (DISTRICT NARAYANGANJ), BANGLADESH

THITl LAND LEASE AGREEMENT, hereinafter referred to as the "Lease Agreement", isexec, .ed as of September 17, 199,, in Dhaka, BangladeshBETWEENTHE PEOPLE'S REPUBLIC OF BANGLADESH represented by THE MINISTRY OFINDUSTRIES, hereinafter referred to as the "LESSOR" which expression wherever theterms so admit or imply includes its successors, representatives or assignees;ANDAES HARIPUR (PRIVATE) LIMITED, hereinafter referred as to the "Company", acompany incorporated under the Companies Act, 1994 (Act 18 of 1994) of B3angladesh, withits registered office located at IDB Bhaban, 5h Floor, Et8-A, Rokeya Sharani, Sher-e-BanglaNagar, Dhaka-1207, Bangladesh and hereinafter also referred to as the "LESSEE" whichexpression wherever the terms so admit or imply shall include its successors, representativesand permitted assignees.WHEREAS, the LESSEE has proposed to design, finance, acquire, construct, own, operateand maintain an electric power plant at Haripur, in the district of Narayanganj, Bangladesh, tosupply electricity to the Bangladesh Power Development Board hereinafter referred to as the"BPDB" under a Power Purchase Agreement with the BPDB executed on September 17,1 998.WHEREAS, the LESSOR, being in exclusive possession of the Demised Premises (asdefined hereinafter) including any appurtenances, rights of way and access to and from publichighways at Haripur approximately 22 km from Dhaka, has agreed to lease the DemisedPremises to the LESSEE solely for the purposes of the Project on the terms and conditions setforth herein:NOW THIS LEASE AGREEMENT WITNESSETH that in consideration of the Rent (ashereinafter defined), and covenants and conditions hereinafter reserved and contained and onthe part of the LESSEE to be paid, performed and observed, the LESSOR hereby demises tothe LESSEE the Demised Premises solely for the purposes of the Project for the Term (ashereinafter defined) on the terms, covenants and conditions hereinafter contained.

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PEVI_rNU 111ACT'ASSEAES IARIPUR POWER PROJECrAPPENDIX Dl: DEPARTMENT OF ENVIRONMENTSITE CLEARANCE CERTIFICATE(Issued November 29, 1998)ESG INTERNATIONALMARCH 5, 1999

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30/1~d'99 La94 ES fRIPLaR PVT LTD. + 15983624S3 H.72i GM/~~~AV ?-7

Major lnternational Convendtions, Treaties and Protocols (ICPTs)3.5 There are a number of ICFTs in the field ofenvironment, dating back to as eariy as 1933.Not all of them have the same significance or relevance for Bangladesh. A list of the ICPTs thathave relevance to Bangladesh are listed in Annex 2. [DC will strive to be current on theevolving climate of intemational agreements, and implications for projects to be financed.Regulatory and fnstitutionat Framework3.6 In 1989, the Ministry of Environment and Forest was established to address the emergingenvironment related issues. In 1995, the Bangladesh Environment Conservation Act (BECA) wasenacted, the Department of Environment (DOE) was established, and the Director-General(DOE) empowered to undertake activities for the "conservation of environment, development ofenvironmental standards, and environmental pollution control and reduction which may beappropriate and necessary under the provisions of the Act". The DOE is operational, though thecomplete organizational structure is yet to be established. However, seveml line Ministries havelegal and regulatory power related to the Environment as shown in Table 3.3Table 3.3Key Government Institutions that have Regulatory Power related to the EnvironmentMinistry/ApexBody lmplemenlingAgency Legal Framework RegulatoryPowerDepartmentof Environment Envirnment Protection& DOE has fegulatory power. Ministry(DOE) ConservationAct. 1995 hus policy and liaison functionsonly.Ministzyof ForestAcLt 1927(amended in (This applies to all Ministries)Environmcntand DepartmentofForcss(FD) 1989)1:orst (MOEF)Bangladesh WildlifcAcL1974Bangladesh Pletroleum Act. BOGMC has the regulatorv power1974 and Environmental foroil & gas opcmtions. Guidelinesunder preparationPetulum Policy. 1993Ministry of Encrgy& (BOGMC) Environment& Safety Environment& Safety DivisionMineral Resources Regulations- currcntlv (ESD) has been recently set upASME/latcnationalCodes. within BOGMC to take care of oilNew Sector-specific & gas-related environmental&Environment& salfty codes safety issuesare being rorTulated byConsultantsChief Inspectorof Explosivcs Bangladesh ExplosivesAct Chief lnspectorof Explosiveshas(for handling inflammabie the regulatory powerhydrocarbons)Ministryof Industrics Board or lnvestmcnti BOI)- Industrial Policy Investment Regulatory Power only ease ofPrime MinisteasOfrie Board AcL 1989 Reserved Sectors. All other>)8

_ trial sectors ae free sectors andtaumberregi*.Power to ask for anviroamenalclearance from DOEMinisifyof Works Urban Development BuildingConstructionAct. RAJUK has the regulstorypowerDirectoratc(UDD) 1984 (RAJUK) for construction in urban areas.UDD does not haveany regulatorypower oc c-si ivtiesasuchDpartnmcntorAgricuhural Agi-Acts. Policy Agri- These departmentsare primarilyExtcnsion Research Extension Works research and extension-orientedandInput Mawgement(SoiL with focus on input developmentSeed. Fatilizer. Watr. and manageCMnL MoNs PlanningPesticides) Cell to look after the environmentalaspetsMinistryof BangladeshAgriculturai Act of the Parliament Look after crop bio-diversityAgriculturc Research Council (DARC)BangladeshAgricultural Act of the Parliament BARI is engaged prkmarily inReseach Institute(BARI)& developmentof improved varietiesBangladesh Rice Rescarch of rice. genetic rcsourceklnsitute(BRRI) conscrvaionBgladesh Water The Enbankznent& BWDB has rulatory power for altDevelopmetBoard DinagcAcL 1952 water issues includinggroundand(BWDB) surftce water hydrologyMinistry of Water Surface Water Modeling The lrigatiokAct 1976Resourcesk Flood Cntr(SWMC)ControlWater Resource Planning Has mndate for watersector EIA guidelinesdeveloped by FAP-Organization(WARPO) planing, daubase 16 nd its effecmanagemenitand EIA of theproject by an act ofthe.__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ parliam entMinisuyof Land Land Reform and Land The Land Refonn AcL 1989 Regulatory Power. Rcsponsible forAcquisition Directoratc all land acquisition issues. cspeciallythose by GOB or of GOB's own.________ (Khas) landsThe Protection& The Dcpartmcntof Fisheries haveMinistyocFishries DepartncntorFisheries ConservationofFish AcL rgulattrypower for conservationofand Livestock-190fsMarine Fisheries Ordinance Regulatorypower for rish1984 conservationMinistTyof Local Local Govermment. Various Acts and Ordinances LGED or relevant project area isGovernmcntand Rural Enginecring rclt,ingto Locll Governfment responsible for approval ofDcvelopmcnt Dcparnmcnt(LGED). - constructionplans. It is alsoMunicipalitics.Local responsiblefor looking aftcrGovernment Agencies Environmental lealth. LGED hasEIA guidelincs for its infrstructuredevelopmentprojects

3.7 The National Environmental Policy of 1992. provides policy guidance for environmentalprotection and preservation, Ln 1992. the Nawinnal Consrvatima Strtegy was draied, ald in1995, a National Environmental Management Action Plan (NEMAP) was prepared. TheNational Environmental Policy Statement underscores the emphasis on maintaining a balancebetween development and conservation of the environment and natural resources:* Maintenance of ecological balance along with overall progress ad deveopmentof the country;* Protection of the country against natural disasters;* Identification and control of all types of activities leading to pollution anddegradation of the environment;* Environmentally-sound development in all sectors.* Sustainable, long-term and environmental congenial utilization of all naturalresources; and* Active association with all environment-related international initiatives.Rules, Guidelines and Standards3.8 Rules, guidelines and Environmental Quality Standards (EQS) in different sectors arebeing framed. Some sectors such as water, rural infrastructure development, etc. developedenvironmental assessment guidelines before the Bangladesh Envirounent Conservation Act of1995 was enacted. However, since the enactment of the BECA, all development projects fallunder its umbrella. Under section 20 of the BECA, the DOEIMOEF is mandated to fornulatethe regulatory framework, rules. procedures and EQS. To date, guidelines for EnvironmentalAssessment in the Industrial Sector (discussed elsewhere in the Report) and a draft EQS for theindustrial sector have been developed.3.9 The DOE has formulated the draft environmental quality standards for the industrialsector comprised of the following. water quality standards* treated sewage standards* industrial effluent standardsa ambient air quality standards* air emissions standards* motor vehicle exhaust emission standards, and* noise standards.The proposed EQS for Bangladesh and a comparison with other countries in the Region is shownin Annex 3. Surface waters are classified into seven categories of beneficial use: (I) drinkingwater source: (ii) recreational; (iii) fishery; (iv) industrial; (v) irrigation: (vi) livestockwatering; and (vii) coastal waters. Three sets of general effluent standards have been specified inthe draft EQS - for discharge to inland surface waters, discharge to sewers connected to effluentI 10

treatment plants, and discharge onto land for irrigation. The draft EQS proposs four sets ofambient air quality standwds to bc applied to the fattowing areas:Category Type of Land UseA Industrial and mixed useB Commercial and mixed useC Residential and ruralD Sensitive areasEnvironmental Assessment Process in Bangladesh3.10 The BECA, 1995. stipulates that "no industrial unit or project shall be established orundertaken without obtaining environmental clearance from the Director General (DG),Department of Environment (DOE) in the manner prescribed by the Rules. Further, the Act hasbestowed DOE with the rule-making power vide section 20 of the Act; clause (2) (f) of thissection requires that rules be made to X evaluate. review the environmental impact assessment(EIA) of various projects and activities and procedures be established for approval". These Rulesare expected to be promulgated vide government notification, following completion of thepreparation of industrial guidelines, and will describe the procedure to be followed to obtainenvironmental clearance. According to the guidelines, the project proponent is responsible forpreparing the EIA, either with in-house resources or by employing the services of a consultant.3.11 There are slightly different procedures for industrial projects, and projects in othersectors. The EIA procedure for industrial projects consists of three stages: (I) screening; (ii)initial environmental examination (IEE); and (iii) detailed examination. The EIA Process forIndustrial Projects is described in Annex 4.3.12 Currently, for non-industrial projects. either EIA's are done by the project sponsor andthen sent to the DOE for environmental clearance by the sectoral line agencies of thegovernment, or sometimes project proposals are sent by the line agencies to the DOE forenvironmental clearance without an EA. In both cases. DOE reviews the projects and conductsenvironmental screening and decides whether the projects require an Initial EnvironmentalExamination (IEE) or an EIA, or no EIA. For reviewing both industrial and non-industrialprojects and providing environmental and site clearance. the DOE has constituted a technicalcommittee chaired by the Director (Technical), and comprised- of Deputy Director(Enforcement), Deputy Director (Research), Joint Director (Biodiversity) and ProjectCoordinator. For the non industrial sector project there is no clear cut guideline for preparation.and review of environmental assessments. Thus the procedure followed by the DOE for givingenvironmental clearance of the projects in the non industrial sectors is still very much on adhocbasis. In practice. committee uses the draft industrial sector guidelines and guidelines of somemany multilateral institutions as guidance while reviewing the non industrial sector projects.though there is no executive order of the government to do so.It may be mentioned here that in some sectoral EA guidelines are being prepared such as gas andoil sector, inland water transport, etc. However, in many of the sectors, EA guidelines are yet to_2- 11

be developed. It may be recommended that in absene of any sectoral guideines, the DOEshould make one environmental clearance procedum for thm am in stial s oc bUy combfgthe EA guidelines of the World Bank, Asian Development Bank, etc., until guidelines in othersectors are prepared.World Bank Operational Directive on the Environment3.13 The World Bank's Operational Directive 4.01 (OD 4.01) outlines policy and proceduresfor environmental assessment of projects funded by the World Bank Group (which includesIDA). Key characteristics of OD 4.01 include categorization of projects based on potentialenvironmental impact, the EA process throughout the entire project cycle, the consultation withaffected groups and public disclosure of EA reports. For details of OD 4.01, refer to Annex 5.Operations of IDC will conform with the requirements of OD 4.01Comparison of Bangladesh Requirements with OD 4.013.14 The EIA process under both the legislation in Bangladesh and OD 4.01 have their ownrequirements, which do not necessary match. A comparison is made to identify similarities anddifferences, so that a process meeting more stringent of the requirements can be applied to IDCprojects. Table 3.4 lists some key comparisons, and discusses the requirements for theBangladesh law with OD 4.01. In general, OD 4.01 requirements are more comprehensive whencompared with the requirements of Bangladesh legal system.Table. 3.4Comparison of Bangladesh Law with World Bank Group's Operational Directive onEnvironment (OD 4.01)Criteria Requirements as per Law in Requirements as per OD 4.01BangladeshI. Typc of Environmental Analysis project specific project specific.regional and sccioral2. ILisis for categorization Currently screening crite-ria available Detailed screcning criteria for allonly for industrial projects. where they projects based onare done based on. * Sensitivity* level of pollution cmission m natusc wnd magnitude of potential* type of project and location impacts* scalc of project * social ancment-component* operational activities * resettlemcnt and rehabilitationNon-industrial projects arc reviewed ona casc-by-case basis by DOE.3. LA Outputs Since detailed rules and regulations for * EA RcportEA have not been prescribed. EA * Analysis of alternativesoutputs arc not specificd. Ilowever. the * Acceptable Environmentalindustrial sector guidelines, the wata ManagcmcnL Plansector guidelincs. and the rural * Acccptable Resettlement Actioninfrastructurm development guidelines Planhave specific EA output requirements * Acceptable Indigenous Peoplessuch as Development Plan* baseline surveyLI 12

*EIA/IEE repoit* site clearance* risk analysis and man3gcmctm* analysis of Alternatives4. Public Consulation No special mtion is mde for public Mandatory atconsultation in BECA. Sectorat * preparation of EAguidelines mentioned above have * project appraisalprescribed consultation. plusa* prcet design* project implemcntation andmonitoringS. Disclosure of Infornation BECA makes no refcrencc to disclosurm * MandatoryThe Sectoral guidclines prescribe some * Summary of project description andprovisions for disclosur, potential advcrsc impacts* Summary of EA repot andconclusions* EA reportSocial Aspects3.15 The laws, regulations and guidelines that are applicable to projects involving landacquisition, resettlement and other social issues in Bangladesh are discussed below. These lawsand. guidelines and the World Bank's Operational Directive number 4.30 (InvoluntaryResettlement) and 4.20 (Indigenous Peoples) have been taken into account while preparing theESF. Preparation, processing, implementation and monitoring of the social issues component ofthe specific sub-projects will be carried out in accordance with the specific provisions of theESF.Constitutional provisions3.16 The fundamental rights guaranteed under the Constitution of Bangladesh indicate thegeneral guideline for a policy on resettlement/rehabilitationof citizens affected adversely (whateverbe the mechanism) due to any activity of the State. However, there is a certain ambivalence.Article 40 states categorically that every citizen has the right to practice any lawful occupationwhich implies that anything that impedes such right should either be not done or there should besupolementarv - measures to make good the losses incurred by the citizens&Resettlement/rehabilitation of adversely affected people due to infrastructure development veryclearly falls within such supplementarymeasures.3.17 The Constitution, however, restricts the right of citizen categorically when under Article(42). sub-clause (2) it states that no law with provision of compensation for acquisition of land canbe challenged in-a court on the ground that such compensationhas been inadequate.9z13

Land Acquisition Acts3.18 [n 1982. the Acquisition and Requisition of Immovable Property Ordinance, came in force.This law replaced the earlier law, The Land Acquisition Act, 1894 (1 of 1894) and others at havebeen in force between 1947 and 1982, and is the major basis for all the present actions regardingacquisition. resettlement and rehabilitation. The relevant and salient points of the 1982 law are asfollows:* "Property" means only immovable property (land and building) and includes anyright in such property.* "Owner" includes the occupiers:* Matters to be considered in determining compensation include- the market value of property- damage to standing crops or trees due to acquisition- damage due to severance of acquired property from other property at thetime of actual taking of permission by concerned authorities- damage to other properties or earnings- expenses for relocation of residence- damage due to lowering of profit of the property to be acquired between theserving of acquisition notice and actual acquisition.3.19 While the rules under the Act 'appeare fairly generous, problems often arise in.implementing the provisions of the Act. Determining market value and damage to property orincome are difficult to establish in normal circumstances. It becomes more so in an emotioncharged situation such as acquisition of land in a land-scarce and agricultural-dependentsociety.Arbitrariness is almost certainly likely to result. The situadon is not helped by assigning by thegovernment to itself sweeping powers in matters of acquisition. Read with the Article 42. sub-clause (2) of the Constitution referred to above, there is every chance that the acquisition may notbe entirely necessary, that compensation may be rather inadequate or paid such later than actualacquisition.320 To sum-up the legal context, while there .are constitutional and legal provisions foracquisition and payment of compensation for acquisition of land and other immovable property forstate-determined purposes. there are also uncertainties in the actual practice because of lack of clearguidelines. sweeping power given to Deputy Commissioners who actually serve notice and takepossession of acquired property and the denial of legal instruments to citizens against such actions.3.21 Of late. however. there have been certain changes in practice. Thus. one finds a very largeresettlementand rehabilitationscheme for the Jarnuna Multipurpose Bridge (JMB) financed amongothers by IDA. In this case a very large group of people has been affected due to acquisition ofland. A Resettlement Action Plan (RAP) to address the issues of resettlement and rehabilitationof>;33

(b) Sharcholders Agreement will confirn the project sponsor's obligations as spetout in the Concession Agreement and will conform to the IDC ESF.(c) Construction Agteement will record the rective obligations of the ContactorConsortium and the Project Sponsor with respect to actions related to mitigationof environmental and social impacts during the construction phase.(d} Operation and maiterance (O& -) Agreement will record the respectiveobligations of the O&M consortia and project sponsor with respect toenvironmental and social management action during the operation phase.(e) Lenders Agreement between the project sponsor and IDC will take on record,inter alia, the Concession Agreement, Shareholders Agreement, ConstructionAgreement and O&M Agreement, and shall be executed after all theaforementioned documents have been executed.5.24 Monitorinm of Mitigation Plans. The project sponsor would include a satisfactorymonitoring plan in the EMP and IFC would supervise its implementation. Tlie consultant couldbe the same as those responsible for review of ESR. Each mitigation/development plan willspecify the schedule and indicators for monitoring. Corrective action, if necessary, will beproposed to the Investment Manager and the project sponsor. Follow up actions initiated by theproject sponsor will be reviewed in subsequent monitoring exercises.5.25 Periodic Social Audit. The IDC may conduct periodic Social Audits of various projectsunder implementation to provide an independent assessment of perfornance on social issues.This process can be useful in providing feedback on ongoing and new projects. An independentconsultant will undertake this review on the basis of project documentation. including all thecomponents of the ESF, project agreements, and the various monitoring reports. The consultantwill submit its audit report to the Board of Directors of IDC. The audit report shall be sharedwith IDA. and can be released for disclosure to public.tL34

CHAPTER 6IDC - IDA INTERFACE6.1 As a financial intermediary, IDC may access funding from a variety of lenders includingmultilateral agencies, such as IDA. In order to ensure that the preparation of the candidateprojects is in conformity with IDA requirements and IDC business practices, IDC will submit thefollowing documents for review by IDA. Though the suggested interface is applicable only to theinteraction of IDC with IDA, other financiers are encouraged to follow a similar process whilereviewing candidate projects financed by them.62 In order to ensure that its infrastructure projects are in conformity with [DA's ODrequirements and business practices, IDC shall submit the following documents for IDA review.Table 6.1 outlines the institutional interface matrix.Table 6.1IDC-IDA InterfaceEnvironmental and Social Assessment Output to be submitted to IDAMilestone -Screening Initial screening reportFinalization of terrns of reference for ESR Terms of ReferenceReview of ESR ESR reviewed by IDCTranslation of agreements into Lenders Agreement along with otherinstruments AgreementsMonitoring Compliance reportEnvirommental and Social Audit Audit compliance report6.3 IDA concurrence to the outputs generated at each stage will be obtained prior toproceeding to the next stage. However. when the capacity of IDC is established, IDAconcurrence and approval will be required only for the-TOR, and ESR (EMP. RAP, IPDP) andthe associated agreements, prior to approvinmfinancss for candidateproiects. In all cases wheremore than 2C0 persons are affected by land acquisition and I or resettlement, or an IPDP isrequired. the RAP and/or IPDP will be sent to IDA for review and approval.1>2-35

ClAPTER 17ENVrRONMENTAL AND SOCIAL RISK MANAGEMENT7.1 Infrastructure projects have a range of associated environmental and social risks andliabilities. IDC's project management procedures will include provisions to handle these risksand the liabilities that could fall on IDC as a lender. However, IDC will remain exposed tosevet ricsks risks of interference by government, political stability, legal and regulatory risks,environmental and social risk etc. While some of these risks are identifiable, others are often hardto recognize.7.2 IDC will approach envirorunental and social risks by a principle of Avoid, Reduce, Limit,Control, and Share. [DC will work with project sponsors to use insurance schemes and contractsto effectively allocate, manage and mitigate risks. A simple risk identification and managementprocess is outlined in this chapter.Environmental and Social Risks7.3 Environmental and Social Risks are often caused by non-recognition of a problem, nottaking measures to deal with it, design failure, non-compliance and unforeseen incidents. Atypical list of risks associated with infirastructure projects is described below:Environmental* Catastrophic explosion in a gas-based thernal power station* Source for a water supply project is contaminated. Environmental standards in the country made more stringentI increased floods due to reclamation of flood plains for a projectSocial* Non-compliance with RAP/IPDP* Accident during cristruction/operation* Severe impacts on most vulnerable groups* Sustained opposition to project from non-governmental organizationsRisk Evaluation Process in the IDC Environmental and Social Assessment Process. 7.4 The IDC risk management strategy will consist of four steps: (i) risk identification; (ii)risk assessment; (iii) risk allocation; and (iv) risk management. These steps are incorporated aspart of the IDC Environment and Social Assessment Process (outlined in Table 5.3). At eachstage, IDC will ensure that project confirms to the process. Table 7.1 outlines how the risk3j 36

evaluation and maagement proces will be part of the key stej of the Envimonmal and SocialAssessment Process.Table 7.1The Environmental and Social Risk Assessment ProcessState in Project Cycle Outputs Responsibility Risk Evaluation as input in ESRScreening Initial Screening Report [DC * Major risk issucs* Stakcholdes in risk managemcntScoping Finalization of TOR Project Sponsor. TOR to includcIDC * issucs for critical examination_______________________ *~~~~~~~~~~~ allocation of responsibilityESA studics ESR Project - ESR to evaluate Lalloation ofS__ _ _ _r/C_nsultant r25 monitoring. etc.Revicw of ESR Agreements on EMP. RAP. PrqJ Vp e Agreencnt on allocation of responsibilityIPDP IDCIGOB/IDA and mitigation plansTranslation of Agreements - concession. IDClProject * Risk Managemcnt Planagrecmcnts into legal shareholders. construction. Sponsor. GOB. * Allocation oa rcsponsibilitiesinstrumcnts operations, lenders other actors * legal agrcements on risk mitigationinsthumcntsMonitoring Periodic progress reports Project Monitor conformity with agreementsSponsorlIDCEnvitonmental and Annual audit of iDC IDC * Monitor conformity with agreementsSocial Audit inanced projects _ * Public disclosure1YL 37

CHAPTER 8INSTITUTIONAL SUPPORT FOR ESF8.1 IDC will establish an institutional structure capable of implementing the provisions of theESF. This main principle for institutional development in this regard is that the environmentaland social objectives of IDC (as embodied in the ESF) are best achieved when they are made anintrinsic part of the project cycle. Tie instituional suppon and development reflects this iment.8.2 The main objective of development of IDC's capacity on environmental and social issuesis to ensure that projects submitted for financing conform to the ESF. IDC's responsibility islimited to review and monitoring of ESR submitted by project sponsors in order to ensure thatimplementation is in accordance with ESF objectives, principles and procedures. In order toachieve the objective described above, [DC shall:(a) Integrate the Environmcntal and Social Assessment process with the IDC projectcycle;(b) Ensure that the Investment Manager's Unit has the capability to addressenvironmental and social issues.(c) Appoint consultants, as necessary, to undertake special assignments with respectto environmental and social issues.8.3 IDC shall build capacity in the IM's unit (or through consultants) for the followingactivities:* Screening of projects.* Finalizing the terms of reference for ESR.* Advising project sponsors on appointment of consultants for preparing ESR.* Review of completed ESR.* Translation of mitigation agreements into enforceable instruments* Monitoring project implementation.* Conduct periodic Environmental and Social Audit.8.4 In order to facilitate conduct of above tasks:(a) IDC's Investment Manager will be the operational manager with overallresponsibility for implementing the provisions of this ESF.(b) IDC will initially engage consultants for implementing the different stages of theEnvironmental and Social Assessment process -- for the purpose of reviewing theESR, IDC will retain a corporate consultant to advise on environmental and socialissues.bL38

(c) Increase awareness amnong all departments /staff of IDC regarding the importanceof addressing eaviu and social issu throgh integration with theprojectcycle. A training program for the invest manager and other staff of IDC tofamiliarize them with the provision of the ESF and their application. IP2-j ~39

I

EmTL wLrAEUwErAES HARMUR POWER PROJECTAPPENDIX F3: POLLUTION PREVENTION & ABATEMENTHANDBOOK, THERMAL POWER PLANTS -INTERNATIONAL FINANCE CORPORATIONESG INTERNATIONALMARCH 5, 1999

Pollution Prevention and AbatementHandbook - Part IlThermal Power -Guidelinesfor New PlantsThese guidelines present maximum emissions levels that can be achieved at low costfor aU new plants, and aprocessfor establishing stricter eission levs in mponse to local ambient conditions. Thguidelineemphasize the use of cleanerfuels wherever these are economicallyfiasble, and focus on the operationalperformance of controls as well as their design stands. In the exceptional circmstaces where new plants areproposed to be located in significantly polluted areas, the guideins require that an Environmental Assementconsiders meass on an offset basis within the whole airshedwater basin, rather than just controls at the plantitsdf T'hese guideines apply to specfc investment projects which should reprsent asi-cost elments of a powersector st rat ev, taking into account envionmental and socialfactors. The guideines should read inconjunction with the reDeant pollutant and pollutant control teclnology gudines contai elsewhe in PartIU of the Pollution Prevention and Abatement Handbook.Industry Description and Practices Advanced coal utilization technologies(Fluidized Bed Combustion, IntegratedThese gudelines set forth procedures for Gasification Combined Cyde) are becomingestablishing maximum emission levels for all available, and other systems such asfossil-fuel based thermal power plants with a cogeneration offer improvements in either orcapacity of 50 megawatts of electricity (MWe) or both thermal efficiency and environmentallarger using coal, fuel oil, or natural gas. performance relative to conventional power(Guidelines for thermal power plants with a plants. The economic and environmental costscapacity of less for smaller than 50 MWe, and benefits of such advanced technologiesincluding non-fossil fuel fired power plants are need to be examined on a case-by-case basis,given in Annex A.) taking into account alternative fuel choices,Conventional steam-producmg thermal pow er demonstrated commercial viability, and plantplants generate electricity through a series of locations. The criteria spelled out in theseenergy conversion stages: fuel is bumned in guidelines apply regardless of the pariularboilers to convert water to high-pressure steam technology chosen.which is then used to drive a turbine to generate Engine driven power plants are usuallyelectricity. considered for power generation capacities of- Combined cyce units burn fuel in a up to 150 MWe and have the added advantagescombustion chamber and. the exhaust gases are of shorter building period, higher overallused to drive a turbine. Waste heat boilers efficiency (low fuel consumption per unit ofrecover energy from the turbine exhaust gases output), optimal matching of different loadfor the production of steam which is then used demands, and moderate investment costs asto drive another turbine. (Generally, the total compared to conventional thermal powerefficiency of a combined cycle system in terms plants. (Further information on engine drivenof the amount of electricity generated per unit of plants is given in Annex B.)fuel is greater than for conventional thermalpower systems but may require fuels such asnatural gas.)This technical guideline is pan of te Woedd Ban; Gmoup's Pollaum Prevention and Abatement Handbook and should be read in conjunctionwith the Intoduction as wll as Parts I and wich spel out imporant policy and pdul cmnsideations. lbe infonnamon is inteded for useby WodW Bank staff and consultants in catiying out the policies set out n the Opeonal Poicy on Enviuonental Assesment (OP 4.01) andelated docunnts.

PdhUtSA P i _ A_ - Put MIbesmi P_r - GuMuim for New P14July 1, 1999 Pae 2Waste Characteristics including steam condensaincu Water is alsorequired for auxiliary station equipmt, ashThe wastes generated by thermal power plants handling and FGD systems. The characteisticsare typical of those from combustion processes. of the waste waters generated depend upon theThe exhaust gases from bumnig coal and oil ways in which water has reen used.contain primarily particulates (including heavy Contamination arises from demninermizers,metals if present in significant concentrations in lubricating and auxiliary tuel oils, and chlonne,the fuel), sulfur and nitrogen oxides, and biocides, and other chemicals used to managevolatile organic compounds. For example, a 500 the qualty of water in coolig systems. Once-MWe plant using coal with 2.5% sulfur (S), 16% through cooling systems inraease theash, and 30,000 kilojoules per kilogram (kJ/kg) temperature of the receiving water.heat content will emit each day 200 metric tonsof sulfur dioxide (SO2), 70 metric tons of Policy Frameworknitrogen dioxide (NO2), and 500 metric tons offly ash if no controls are present. In addition, The development of a set of environmentalabout 500 metric tons of solid waste will be requireients for a new thermal power plantgenerated and the plant will have about 17 involves decisions of two distinct kinds. First,gigawatt-hours (GWh) of thermal discharge. there are the specific requirements for thePrimary attention is focused in these power plant itself. These are the responsibilityguidelines on emissions of particulates less than of the project developer in collaboration with10 rnicrons, (,um) in size (PMw including relevant local or other environmentalsulfates), on sulfur dioxide (SO,) and on authorities. This guideline focuses on the issuesnitrogen oxides (NO) - both for the direct that should be addressed in arriving at project-effects of NO and as a precursor for the specific emission standards and otherformation of ground-level ozone. Information requirements.concening the health and other damage caused Second, there are requirements which relateby these and other pollutants, as well as on to the operation of the power system as whole.alternative methods of emission control, are These strategic issues must be the concern ofprovided in the relevant pollutant and pollutant national or regional authorities with thecontrol guidelines. The concentrations of these responsibility for setting the overall policypollutants in the exhaust gases are a function of framework for the development of the powerthe firing configuration, operating practices, and sector. Examples of such requirements indudefuel composition. Gas-fired plants generally measures to promote energy conservation viaproduce negligible quantities of particulates and better demand-side management, to encouragesulfur oxides, and the levels of nitrogen oxides the use of renewable sources of energy ratherare about 60% of those from plants using coaL than fossil fuels, and to meet overall targets forThey alo release lower quantities of carbon the reduction of emnissions of sulfur dioxide,dioxide, a greenhouse gas. nitrogen oxides, or greenhouse gases.Ash residues and the dust removed from In the context of its regular country dialogueexhaust gases may contain significant levels of on energy and environrmental issues, the Worldheavy metals and some organic compounds in Bank is willing to assist its clients to develop theaddition to inert mnaterials. Fly ash removed policy framework to implment suchfrom exhaust gases makes up 60-85% of the coal environmental requirements for the powerash residue in pulverized coal boilers. Bottom sector as a whole. One step in this processash includes slag and coarser, heavier particles could be the preparation of a Sectoralthan fly ash. The volume of solid wastes may be Environmental Assessment. These guidelinessubstantially higher if environmental measures assume that the pr-ect is consistent with broadsuch as flue-gas desulfurization (FGD) are sectoral policies and requirements that haveadopted and the residues are not reused in been promulgated by the relevant authorities inother industries. order to meet interational obligations andSteam turbines and other equipment may other environmental goals affecting the powerrequire large quantities of water for cooling, sector.lbis tchnical guidi is pan of de Wodd Bank G;op's Pollunom Prevenon and Abaeie Hlandboo an should be d in cenuncuwith tie Innoducuon as wel as Pans I ad D wbind spell out impptnnt plicy uad poduralW cosidtas. The infonanon is inmeded for useby Wodd Bank Grwp staff and consuls in cwiying out the pdoicies ot ut i the Opeal Policy on EnvimmWal AssnieA (OP 4.01)and miated documents.

Pmbm d Af t Humd - Pw mPg 3 July 1, 1998 In some cases, strategies for meeting system- as that considers a small number ofwide goals may be developed through a power options in order to justify a predetermied set ofsector planning exercise which takes accourt of desip dri.environmental and social factors. This would,for instance, be appropriate for a small country Evaluation of Project Alternaiveswith a single integrated utility. In other cases,governments may decide to rely upon a set of The environmental assessment (EA) shouldincentives and environmental standards that are include an analysis of reasonable alternativesdesigned to inRuerwe tiedecisitns ade by tHt meet the ultimate o&ve oi the Pzojemany independent operators. The assessment may lead to alternatives that aremore sound from an environmental,Determining Site-Specific sociocultural, and economic point of view thatRequirements the originally proposed project. A number ofalternatives need to be considered indudingThese guidelines spell out the process - startingfrom a set of maximrum emission levels * alternative fuels;acceptable to the World Bank Group - thatshould be followed in determining the site- * alternative power generation technologies;specific emission guidelines. These guidelinescould encompass both controls on the plant as * alternative heat rejection systems;well as other measures - perhaps outside theplant - that may be necessary to mitigate the * alternative water supply/intakes;impact of the plant on the airshed (orwatershed) in which it is located. This process * alternative solid waste disposal systems;outlines the implementation of the World BankGroup's policy on environmental assessment * plant (and sanitary) waste discharge(OP 4.01, Environmental Assessment) for thermal alternatives;power plants.The guidelines are designed to: (i) protect * engineering and pollution controlhuman health; (ii) reduce mass loading to the equipment altematives (see Annex C forenvironment to acceptable levels; (iii) achieve some examples); andemissions levels based on conmmercially provenand widely used technologies; (iv) follow the * altemative management systems.current regulatory and technology trends; (v) becost-effective; and (vi) promote the use of Altematives should be evaluated as a part ofcleaner fuels and good management practices the conceptual design process. However, thosewhich increase energy efficiency and altematives that provide cost-effectiveproductivity, environmental management are preferred.It is important to stress that the results of theenvironmnental assessment are critical to The potential role of the Clean Developmentdefining many of the design parameters and Mechanism (CDM): The provisions of the Kyotoother assumptions - such as location, fuel Protocol allow for the use of the Cleanchoice, etc. - required to develop the detailed Development Mechanism (CDM), under whichspecification of a project They must be greenhouse gas emissions from the year 2000integrated with econonic analyses of the key onwards from projects in Non-Annex Idesign options. Thus, it is essential that the countries that are certified by designatedwork of preparing an environmental assessment operating entities can be acquired by Annex Ishould be initiated during the early stages of countries and credited against their emissionproject conception and design, so that the initial binding commitments. The availability of CDMresults of the study can be used in subsequent financing may alter, in some cases, the choice ofstages of project development. It is not the least-cost project alternative. Once the CDMacceptable to prepare an environmental is enacted, it will be advisable to incorporate theis techical guidedi is pa of the Wold Bank Gru,p's Pollna Prevenion and Abamen Handbook ad should be ed in conjunctwith the Intoduction as wel as Pans I and D whidi spell out impontn policy and pcedural cogsidons. The infornat is inended for uby Wodd Bank Gmp saff nd consultants n canybng out the pohic e out in the Opeaonal Poicy on Envi_onnta Assrenmt (OP 4.01)and mlaed documents.

Pd_lia Pit d _ , i__ - IDThln Pe - G _lih w9_NewPbabJ*l 1.1996 Page 4following into the process of evaluating project cogcetratos of these polluuas, on thealtematives: assumption that the maximum emission levels* the identification and assessment of those detailedbelow apply (see relevant notes onaltematives that are eligible for CDM-type airshed models in Part II of the Pollutionfinancing (e.g., alternatives that are non- Prevention and Abatement Handbook). When thereeconomical without carbon offsets and whose is a reasonable likelihood that the power plantincremental costs above the least-cost baseline will be expanded (or that other pollutionalternative with the account of local sources are likely to increase significantly) in theenvironmental externalities are smaller tan the med 0r lorI'r erni, the analysis should takecosts of resulting carbon offsets); and, if such account of the impact of the proposed plantalternatives are determined, design both immediately and after any probable* negotiation with Annex I Parties of possible expansion in capacity or in other sources ofoffset arrangements. The World Bank Group pollution. The EA should also include impactswill be prepared to assist the process of from construction work and other activities thatidentifying the CDM-eligible alternatives and normally occur such as migration of workersnegotiating offset arrangements for projects that when large facilities are builtare partly financed or guaranteed by the World At the same time, plant design should allowBank Group. for future installation of additional pollutioncontrol equipment should this prove desirableEnvironmental Assessment or necessary.The EA should also address other project-A^n EA should be carried out early in the project specific environmental concerns, such ascycle in order to establish emission emissions of cadmium, mercury, and otherrequirements and other measures on a site- heavy metals resulting from burning certainspecific basis for a new thermal power plant or types of coal or heavy fuel oiL (Guidance onunit of 50 MWe or larger. The initial tasks in acceptable ambient levels for heavy metals iscarrYing out the EA should include: (a) the provided in the PoUutant section of the Pollutioncollection of baseline data' on ambient Prevention and Abatement Handbook). In suchconcentrations of PM, and SO, (for oil and coal- cases, the government (or the prodect sponsor)fired plants), and NO, (and ground-level ozone and the World Bank Group wiU agree onif levels of ambient exposure are thought to be a specific measures to mitigate the impact of suchproblem) within a defined airshed emissions and on the associated emissionencompassing the proposed project;2 (b) the guidelines.collection of similar baseline data for critical The quality of the EA (including systematicwater quality indicators that might be affected cost estimates) is likely to have a majorby the plant; and (c) the use of appropriate air influence on the ease and speed of projectquality/dispersion models to estimate the preparation, and a good EA prepared early inimpact of the project on the ambient the project cycle should make a significantcontribution to keeping the overall costs of theproject down.I For plants proposed in greenfield sites, qualittiveassessments may suffice. For non-degraded ainheds, Mu2imum Emission Levelsquantitative assessment using nmodels and represent tivemonitoring data may suffke.m1on daksW wi betake tD refer to the kKai aru arourid As descrbed, emission levels for the design and2 The airshed will be taken to rer to the local area as0c operation of each project must be establishedthe plant whose ambient air quality is directly affected by operauao thea proc base ontcountremissions from the plant. The size of the relevant loal through the EA process, based an countqairshed will depend upon plant charactaistics (such as legislation and the Pollution Prevention andstack height) as well as local meteorological conditions and Abatement Handbook as applied to localtopography. In some cases, airsheds are defined in conditions. The emission levels selected must belegislation or by the relevant environmental authorities lf justified in the EA andl acceptable to the Worldnot, the EA should clearly define the airshed on the basis of Bank Grouconsultations with those responsible for local penvironmental managementis edcal guiddine us put of dte World Bank GCwp's PoiLton Preventm and Abamnau Handbook and should be rad n conjuncinwith the Inxnducons as we a Pats I and nl which spell out imponta policy mnd podued can cmtios. The infomnn is intended for useby Waod Bank Grup staff and consulants in canyin out die poliaes t out in tte Operiondl Plicy an Emvirunustal A/ement (OP 4.01)and weated documents.

palAm PT, aid P_ - Pact MPage 5 ~~~~~~~~~~~~~~~~~~~~July!1. imThe following maximum emissian leves are En- Price (GEP) recomm odatm .normally acceptable to the World Bank Group Plants should not use stbk heights less than thein making decisions regarding the provisin of GEP recommrnded value mdess the airqraityWorld Bank Group assistance for new fossil-fuel impact analysis has taken into account buildingfired thermal power plants or units of 50 MWe downwash effects. All of the maximumor larger (using conventional fuels). The emission levels should be achieved for at leastenission levels have been set so they can be 95% of the time that the plant or unit isachieved by adopting a variety of cost-effective operating, to be calculated as a proportion ofopti ors e rtimeies, i e useof amual epatng hours4 The five peret of theclean fuels or washed coaL For example, dust annual operating hours are assumed to be forcontrols capable of over 99% removal efficiency, startup, shutdown, emergency fuel use, andsuch as electrostatic precipitators (ESPs) or unexpected incidents. For peaking units wherebaghouses, should always be installed for coal- the startup mode is expected to be longer thanfired power plants. Similarly, the use of low- five percent of the annual operating hours,NO, burners with other combustion exceedance should be justified by the EA withmodifications (e.g., low excess air), should be a regard to air quality impacts.standard practice. The range of options for thecontrol of SO. is greater because of large Pouwer plants in degraded airsheds. Thedifferences in the sulfur content of different following definitions apply in airsheds wherefuels and in control costs. In generaL for low there already exists a significant level ofsulfur (3% S). Fluidized bed combustion, Either the annual mean value of (i) PMK.when technically and economically feasible, has exceeds 50 micrograms per cubic meterrelatively low SO. emissions. The technology (pg/m3) or 80 jIg/in3 for TSP or (ii) SO0choice depends on a benefit-cost analysis of the exceeds 50 Lg/m7 or (iii) NO2 exceedsenvironmental performance for different fuels 100 jg/in3 for the airshed,and the cost of controls.Any deviations from the following emission Or the 98o percentile of 24 hour meanlevels must be described in the World Bank values of PM. or SO, or NO, for theGroup project documentation. airshed over a penod of a year exceeds150 jg/g3 (or 230 jIg/i3 for TSP).Air EmissionsAn airshed will be classified as having poorThe maximum emission levels given here can be air quality with respect to particulates, sulfurconsistently achieved by well-designed, well- dioxide, or nitrogen dioxide if:operated and well-maintained pollution controlsystems. In contrast, poor operating ormaintenance procedures affect actual polutant 3 See, eg., the US Code of Federal Regulations ritle 40, Partremoval efficiency and may reduce it to well 51.100 (ii) Normally, GEP Stack Height = H+1.5L, where Hbelow the design specification. The maximum is the height of nearby stuctures and L is the lremission levels are expressed as concentrations dinension of either height or projected width of nearbyto facilitate monitoring. Dilution of air emissions structures.to achieve these guidelines is unacceptable. 4 Assumptions - Coal: Flue Gas dry 6% excess 02 -Compliance with ambient air quality guidelines assumes 350 Nm'/GJ; Oil Flue Gas dry 3% excess 02 -should be assessed on the basis of Good assumes 280 Nm'/GJ; Gas: Flue Gas dry 3% excess 02 -assumes 270 Nm`/GJ (see Annex E). Oxygen level in engineexhausts and combustion turbines is assumed to be 15percent, dry. Refer to the monitoring guideline formeasurement methods.Tlis tehnical guideie is pan of dhe Wodd Bank Gwp's Polunon Prevenzon and Abarean Handbook awd shoul be rend in ccnjuncionwith the rnoduction as well as Parts I and n which spel out imnt policy and ptocduzal considmauis. The infomudan is irnded for useby Wadd Bank Group stff and osaukants in caryrng out the poicis sa out in the Opeional Poicy un Enironmtal Asmt (OP 4.01)and ed documnts.

PaWm ?uwmrfim md AbIuum Hanhek ~-Pan MII P_ - Gaueims for Ntw PaubJuyx 1.1998 PEither the anmual mean of (i) PM, exceeds in ial phnts - in the sme aied, and (c)100 g/rn3 (or 160 jig/rn for TSP)or (ii) investments in gas distribution or districtS02 exceeds 100 gg/mr or (iii) NO, heating systems designed to subsitut fortheexceeds 200 jg/m3 for the airshed; use of coal for residential heating and othersmall boilers.' The monitoring and enforcementOr the 95th percentile of 24 hour mean of offset provisions would be the responsibilityvalues of PMW or SO, or NO2 for the of the appropriate local or national agencyairshed over a period of a year exceeds responsible for granting and supervisingISO iggrn (or 230 Lg/mr for TSP). e rah l pemits. Such offset provisonswould normally be detailed in a specificPlants smaller than 500 MWe in airsheds with covenant in the project loan agreement.moderate air quality are subject to the maximum Project sponsors who do not wish to engageemission levels indicated below provided that in the negotiations necessary to put together anthe EA shows that the plant will not lead to offset agreement would have the option ofeither the airshed dropping into the category relying upon an appropriate combination ofhaving poor air quality or an increase of more clean fuels and/or controls.than 5 ;ig/r' in the annual mean level ofparticulates (PM. or TSP), SO,, or NO2 for the PARCULATE MATTE For all plants orentire airshed. If either of these conditions is not units, PM emissions (all sizes) should notsatisfied, then lower site-specific emission levels exceed 50 milligrams per normal cubic meter -should be established which would ensure that Nm' measured at 1 atmosphere and 0rCthey can be satisfied. The limit of a 5 gg/mr (mg/Nm3).','increase in the annual mean will apply to the Fine Particulates. The EA should pay specificcumulative total impact of all power plants built attention to particulates smaller than 10 pm inin the airshed within any 10 year period aerodynamic diameter (PM,) in the airshed,beginning on or after the date at which the since these are inhaled into the lungs and areguideline comes into effect.Plants greater or equal to 500 MWe in airsheds 6 W } posdbk e offset p viskm *ould bewith moderate air quality and all plants in airsheds impemene within the franewor of an ovell air qualitywith poor air quality are subject to site-specific management strategy designed to ensure that air quality inrequirements that include offset provisions to the airshed is brought into compliane with ambientensure that (a) there is no net increase in the sdatotal emissions of particulates and/or So. 7 The additional cost of controls designed to meet thiswithin the airshed; and (b) the resultant ambient requirement rather than one of 150 mg/Nm' (eg., dO.5% oflevels of NO2 do not exceed the levels specified total investment costs for a 600 MW plnt) is expected to befor moderately degraded airshed.5 The lss than the benefits of reducing ambient exposure tothe offset provisions paricuates. The high overall removal rate is necessary tomeasures agreed under the prln capture PM1O and fine particulates which seriously affectmust be implemented before the power plant human health). Typically, about 40% of PM by mass iscomes fully on-stream. Suitable offset measures smaller than lOpm, but the collection efficieny of ESPscould include reductions in emissions of dops cmnsiderably for smale partices. A properlyparticulates, SO2 and/or NO. resulting from: (a) designed and well-operated plnt can normally achieve thethe installation of new or more effective controls lowe miss n lvel as eay as it can aceve higherat other units within the same power plant or at vother power plants in the same airshed, (b) the 'An eccepto to the maximum PM emission level may beinstallation of new or more effective controls at granted to ne-driven power plans Ifor which fundingothe large sources - dis*ict heatingor applications are received before January 1, 2001 for PMother large sources - district heating or emission levels of up to 75 mg/Nm' provided te EApresents documentation to show tat: (i) lower-ash gradesof fuel oil are not commercially available; (ii) emission5 Gas-fired plants (provided that the back-up fuel contains control technologies are not commercialy available; andlss than 0.3% sulfur), and other plants that achieve (ii) the resultant ambient levds for PM1o (annual averageemission levels of less than 400 mg/Nm' for sulfur oxides of less than 50 pg/n' and 24-hour mean of less than 150 ILand nitrogen oxides are exempt from the offset g/m') will be maintained for the entire duration of therequrements since their emissions are relatively less. projecthis technical guideli is part of de Wodd Bank Grup's POlluton Prnm ad bae Hfdbfart and dld be rad in conjuionwith the Iniaducton as wel as Pau I and I which sPel Out inill:t poliky and proceMl d Tn. .mfu is intnded for uby World Bank GDup staff ad co t in aymg out the polices et out in t Optl Polic on E m A (OP 4.01)mad mdated documnus.

Pft mmift m Aimm Hmdol - PM MTbmi Pow - Go fr New ._Page 7 July 1. 199assocated with the most serious effects on NrrROGEN O M: Th specific e:mss=human health. Where possible, ambient levels of limits are: 750 mg/Nim3 (ar 260 nanogram perfine particulates (less thrm 25 pm in diameter, joule (ng/IE or365 palts per milHimpartswhich penetrate most deeply into the lungs) (ppm)) for a coal fired power plant (and up toshould be measured. Recent epidemiological 1,500 mg/Nm3 for plants using coals withevidence suggests that much of the health volatile matter less than 10h); 460 mg/Nm3 (ordamage caused by exposure to particulates is 130 ng/J or 225 ppm) for an oil fired powerassociated with these fine particles. Emissions of plant; and 320 mg/Nm3 (86 ng/J or 155 ppm) forPM10 and fine partcates inchde ash, soot and a gas fired power plaocarbon compounds (often the results of For combustion turbine units, '0theincomplete combustion), acid condensates, maximum NO, emission level is 125 mg/Nm'sulfates and nitrates, as well as lead, cadmium (dry at 15 percent oxygen) for gas, 165 mglNm'and other metals. In addition, fine particulates - (dry at 15 percent oxygen) for diesel (No. 2 oil),including sulfates, nitrates and carbon and 300 mg/Nm3 (dry at 15 percent oxygen) forcompounds - are formed by chemical processes fuel oil (No. 6 and others). Where there arein the atmosphere. The latter, however, tend to technical difficulties (such as scarcity of waterdisperse over the whole airshed. available for water injection), an emissionvariance allowing a maximum emission level ofSULFUR DIOXIDE The total SO2 emissions up to 400 mg/Nm3 dry (@ 15 percent oxygen), isfrom the power plant or unit should be less than considered acceptable, provided there are no0.20 metric tons per day (tpd) per MWe of significant environmental concerns associatedcapacity for the first 500 MWe plus 0.10 tpd for with ambient levels of ozone or nitrogeneach additional MWe of capacity over 500 dioxide.MWe.' As well, The concentration of SO in flue For engine-driven power plants, the EAgases should not exceed 2,000 mg/Nm3 (see should pay particular attention to levels of NO,footnote 4 for assumptions), with a maximum before and after the completion of the project.emnission level of 500 tpd. Construction of two or Provided the resultant maximum ambient levels'more separate plants in the same airshed to of nitrogen dioxide are less than 150 ig/m' (24-circunvent this cap is not acceptable.10 Where nitrogen content of the liquid fuel is greater than0.015 percent and the selected equipment manufacurercannot guarantee the emission levels provided in the text, a9 The maximum sulfur dioxide emission levels were back- NO, emission allowance (ie., added to the maximumcalculated using the US Environmental Protection Agency's emission level) can be computed based on the following as(US-EPA) Industrial Source Complex (ISC) Model with the exceptionsobjective of complying with the 1987 WHO Air Quality Nitrgen contert Correction Factor (NO)Guidelines for acceptable 1-hour (peak) ambientconcentration levels (350 pg/mr). The modeling results (percent by weight) percent by volume)show that in general, an emission level of 2,000 mg/m'(equivalent to 0.2 tpd per MWe) results in a 1-hour level of 0.015 to 0.1 0.04 N300 pg/m' which - when added to a typical existing 0.1 to 0.25 0.004 + 0.0067(N - 0.1)background level of 50 pg/m' for greenfield sites - resultsin a 1-hour level of 350 pg/m' (see discussion of degraded >0.25 0.005airsheds). Compliance with the WHO 1-hour level is Note: A correction factor of 0.004 percent=40 ppm=80norrnally the most significant, as short-term health impacts mg/Nme.are considered to be the most important; compliance withthis level also in general, implies compliance with the WHO There may be some cases where cost-effective NO. controls24-hour and annual average guidelines. For large plants may not be technically feasible. Exceptions to the NO,(greater than 500 MWe), the emission guidelines for sulfir emission requirements (including the above) are acceptabledioxide were further reduced to 0.1 tpd per MWe for provided it can be shown that (1) the alternative emissioncapacities above 500 MWe to maintain acceptable mass level will not result in ambient conditions which have aloadings to the environment and thus address ecological significant impact on human health and the environmentconcerns (acid rain). This results in a sulfur dioxide for the entire duration of the project; and (2) cost-effectiveemission level of 0.15 tpd/MWe (or 1.275 lb/mmuBtu) for a techniques such as low NO, burners, low excess air, water1,000 MWe plant. or steam injection, and reburning are not feasible.This technical guidei is part of the World Bank Group's Poll"on Pwrain and Abaiemen Hedbook and d be rad in ainjuntsionwith the Inuoduction as wel as Pwns l nd D which spell out iniponant policy an procedual casidezions. 7he infor m is invaded for uswby Word Bank Goup staffand se ns in caing out the policis Id out in die Opemuional Policy an Envonnena Assaent (OP 4.01)and related docunmts.

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