Sustainable Energy Access in Eastern Indonesia—Power Generation Sector Project (RRP INO 49203)

Environmental Impact Assessment

Project Number: 49203-002 February 2019

INO: Sustainable Energy Access in Eastern Indonesia ─ Power Generation Sector Project

Kupang Peaker 2 Core Subproject

Main Report

Prepared by Perusahaan Listrik Negara (PLN) for the Asian Development Bank. This is an updated version of the draft originally posted on 9 March 2018 available on {http://www.adb.org/projects/49203-002/documents}.

CURRENCY EQUIVALENTS (as of 15 February 2019)

Currency unit – Indonesian Rupiah

Rp1.00 = $0.0000657 $1.00 = Rp.15,224.75

ABREVIATIONS

ADB Asian Development Bank ADC Air Dispersion Calculation AIMS ASEAN Interconnected Master Plan

AMDAL Indonesian broad equivalent to an Environmental Impact Assessment

APG ASEAN Power grid AQS Air Quality Standard DLH Dinas Lingkungan Hidup (Environmental Agency) CFPP Coal Fired Power Plant EA Executing Agency (PLN)

EIA Environmental Impact Assessment (for Category A projects)

EMP Environmental Management Plan GWh Giga Watt hours GFPP Gas Fired Power Plant GHG Green House Gas GRM Grievance Redress Mechanism HSD High Speed Diesel IEE Initial Environmental Examination (for Category B

projects) IPP Indigenous Peoples Plan IPPF Indigenous Peoples Planning Framework ISO International Organization for Standardization LNG Liquefied Natural Gas NG Natural Gas O&M Operation and maintenance PAI Potential Acid Input

PLN Perusahaan Listrik Negara (Indonesian State Electricity Company)

POI Point of Interest (receptor in the noise emission study) PPE Personal Protective Equipment PPTA Project Preparatory Technical Assistance (the “PPTA

Consultant” has been appointed by ADB to carry out the PPTA assignment)

RKL - RPL EMP - Environmental Monitoring Plan in Indonesia RF Resettlement Framework PV Photovoltaic REA Rapid Environmental Assessment ROW Right of Way

RP Resettlement Plan SMP Social Management Plan SPS Safeguard Policy Statement SS Substation OHL Overhead transmission line TOR Terms of References UKL – UPL Environmental Management and Environmental

Monitoring Effort in Indonesia

DEFINITIONS EIA = Environmental Impact Assessment: Assessment of the substantial impacts of a business and / or activities on the environment. EIA documents in Indonesia consist of: Terms of Reference (KA), AMDAL and RKL – RPL

KA-ANDAL = Terms of Reference for the AMDAL

AMDAL = Environmental Impact Assessment Document in Indonesia for significant impacts of a business and / or activity on the environment.

RKL-RPL = Environmental Management Plan - Environmental Monitoring Plan: is a document containing a series of management and monitoring measures to be applied by the Proponent. This document applies for activities whose licensing requires a mandatory EIA

UKL-UPL = Environmental Management and Environmental Monitoring Effort: is a document that contains the management and monitoring measures to be applied by the Proponent. This document applies for activities where licensing does not require a mandatory EIA.

NOTE

(i) In this report, "$" refers to US dollars, unless otherwise stated.

This environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Table of Contents

I. Executive Summary i

A. The Project i

a. Project Background and General Objective i

b. Project Classification, Objectives and Scope of the EIA i

c. Project location and access to the site i

d. Technical Project description ii

B. Legal requirements iii

C. Project categorization iii

D. Environmental and social baseline conditions iii

a. Physical environment iii

b. Natural environment iv

c. Socio-economic conditions v

E. Impact assessment vi

a. Impact on physical environment vi

b. Impact on natural environment / ecological resources vii

c. Impacts to socio-economic resources vii

F. Environmental Management and Monitoring Plan viii

G. Public participation ix

H. Overall findings and Recommendations x

II. Introduction 1

A. Project Background and Objective 1

B. Scope of the Study 1

C. Data sources 3

D. Project categorization 4

III. Institutional and Legislative Framework 5

A. Domestic regulatory framework 5

a. Ambient Air Quality Standards 7

b. Regulatory framework related to Occupational health and safety, Disaster risk management 10

B. ADB Safeguards 11

C. National Legal and Institutional Framework 11

a. National Legal Framework 11

b. Indonesian Law related to Environmental Impact Assessment 13

c. Head of Environmental Impact Management Agency (BAPEDAL) Decrees 16

d. Other Relevant Requirements 17

e. National Institutional Framework 17

D. International Guidelines and Standards 18

E. Gaps between national requirements and international standards 19

IV. Description of the Project 22

A. Project setting 22

a. Project location 22

b. Access to the project site 23

c. The project site 25

B. Technical Description 26

a. Planned Technical Infrastructure of the PLTU Timor 1 and Kupang Peaker 1 site 26

b. Planned Technical Infrastructure for Kupang 2 29

c. Project Layout 33

C. Project associated facilities 33

D. Assessment of Project Alternatives 35

V. Description of the Environment 37

A. Physical environment 37

a. Topography 37

b. Geology and Soil 37

c. Seismicity 39

d. Surface water 40

e. Ground water 41

f. Climate 42

g. Precipitation 42

h. Wind 42

i. Air quality 44

j. Noise 45

B. Natural environment 45

a. Flora 45

b. Fauna 50

c. Protected areas and species 51

d. Laut Sawu Marine National Park (LSMNP) 51

e. Marine Habitats 54

f. Consultations with Fishermen 56

g. Additional marine expert study 60

h. Terrestrial Habitats 63

i. Species and conservation concern 65

j. Critical Habitat Screening Assessment 66

C. Socio-economic conditions 83

a. Population 83

b. Language 84

c. Ethnic Groups/Minorities 84

d. Human health 86

e. Land Acquisition and Social Safeguards Issues 86

f. Gender Aspects 88

VI. Environmental Impact Assessment and Mitigation Measures 89

A. Methodology 89

B. Assessment criteria 90

C. Cumulative impacts 91

D. Design Phase and Pre-Construction Impacts 92

E. Studies and audits to be conducted during DED and pre-construction phase 93

F. Construction Phase Impacts 95

a. Earthwork, Material and Equipment Requirement 95

b. Physical Environment 97

c. Natural Environment 107

d. Human Environment (Socio-economic resources) 110

G. Operation Phase Impacts 112

a. Physical Environment 112

b. SO2 Impacts 116

c. NO2 Impacts 118

d. PM10 Impacts 121

e. Greenhouse Gases Emissions 127

f. Noise 128

g. Natural Environment 133

H. Critical Habitat Considerations 138

VII. Public participation 140

I. Information disclosure 140

J. Public Consultations to Date 140

K. Findings 140

L. Future information disclosure and public consultation 142

VIII. Environmental Management Plan 143

A. Introduction 143

B. Institutional arrangements for EMP implementation 144

C. Corrective Actions to be Implemented by PLN prior to contract award 145

D. Contractor Obligations Prior to Construction 146

1. Conduct of additional studies and surveys as part of DED 146

2. Preparation of Contractor EHS Plan 147

3. Securing Permits for Spoil Disposal Sites, Work Areas 148

E. Impacts and Mitigation Measures 148

F. Monitoring, Reporting 176

a. Monitoring 176

b. Reporting 176

G. Emergency/Incident Response Procedures during Facility Installation 184

a. Institutional arrangements and responsibilities 184

b. Alert Procedures 186

c. Emergency Response Situations 187

H. Costs of EMP Implementation 188

IX. OVERALL FINDINGS AND RECOMMENDATIONS 190

X. References 192

List of Tables Table 1: Indonesian emission limits for emissions to air from stationary sources 5 Table 2: Adapted Indonesian emission limits for emissions to air from stationary sources 6 Table 3: IFC emission guidelines for facilities larger than 50 MW with combustion turbines

and combustion engines (IFC, 2008) 6 Table 4: National Ambient Air Quality Standards and WHO Guidelines 7 Table 5: National Standards and IFC Guidelines for Noise 8 Table 6: Marine discharge standards for Kupang Peaker 2 derived from National Standards

and IFC Guidelines for thermal power plants 10 Table 7: Other characteristics of the stacks and the flue gas from the Timor 1 PP 27 Table 8: Characteristics of the stacks and the flue gas from the Kupang 1 Peaker PP 28 Table 9: Characteristics of the stacks and the flue gas from the Kupang Peaker 2 30 Table 10: Clean water need plant at construction stage 31 Table 11: Water use and wastewater generation during operation phase 32 Table 12: Existing facilities and their Status 35 Table 13: Average Baseline Air Quality during 2016 44 Table 14: Air Quality observations during February 2017 44 Table 15: Data of forest function based on Kupang Regency 46 Table 16: Diversity of Mangrove Types in Nusa Tenggara Timur 46 Table 17: Forest Area in Kupang Barat Sub district 48 Table 18: Condition of mangrove habitat 50 Table 19: Nesting Locations for turtles near Kupang and Semau and Rote islands 59 Table 20: Marine features and coordinates of observations points during marine study 61 Table 21: List of Animals of Tuadale Lake Wildlife Reserve 64 Table 22: List of migrant bird observed at Tuadale brackish lake 65 Table 23: IFC EHS Guidance Note on Critical Habitat Screening 68 Table 24: Critical Habitat Screening Assessment 71 Table 25: Construction material requirement for Kupang Peaker 2 96 Table 26: Main construction machinery deployment during peak construction period 97 Table 27: Predicted noise levels at various receptor distance from plant boundary 105 Table 28: Maximum simulated SO2 Concentrations 116 Table 29: Maximum simulated NO2 Concentrations 120 Table 30: Maximum simulated PM10 Concentrations 122 Table 31: Percent GLC for Short-term standards for air pollutants 124 Table 32: Percent GLC for long-term standards for air pollutants (annual) 124 Table 33: Simulated Air Quality GLCs for 24 hours HSD operations for Kupang Peaker 2 126 Table 34: GHG Emissions from powerplants 128 Table 35: Predicted noise for Timor 1, Kupang Peaker 1 and Kupang Peaker 2 individually and

under cumulative operations 129 Table 36: Predicted noise with mitigation measures – baseline and cumulative impacts 131 Table 37: Corrective Action Plan for Compliance with Environmental Safeguards 146 Table 38: Environmental Management and Monitoring Plan for Kupang Peaker 2 - Pre-

Construction and Construction phase 150 Table 39: Environmental Management Plan for Kupang Peaker 2 - Operation phase 168 Table 40: Monitoring Requirements during Pre-Construction, Construction and Operation Phase 177 Table 41: External Auditing Plan for the Kupang Peaker 2 184 Table 42: Roles and responsibilities in emergency/incident response 185 Table 43: Evacuation Procedure 187 Table 44: Response Procedure During Medical Emergency 187 Table 45: Response Procedure In Case of Fire/Explosion 188

List of Figures Figure 1: Location of the future Power Plants Complex, including Kupang Peaker 2

(source of the topographic maps: URL 1 and URL 2) 22 Figure 2: Location of the planned project site Kupang Peaker 2 (marked in red),

bordering the planned project sites of Kupang Peaker 1 and the coal fired PLTU power plant Timor 1 in the North. 24

Figure 3: Location of the planned project site Kupang 2 (marked in orange), bordering the Kupang 1 Peaker site and the PLTU Timor 1 in the North. 25

Figure 4: Basic design layout of the Kupang 1 PP and Kupang 2 PP (orange) 26 Figure 5: Basic design layout of the Power Plan Complex comprising Timor 1 CFPP,

Kupang Peaker 1 and Kupang 2 PP. 28 Figure 6: Layout plan of the planned project site Kupang 2 (marked in Red), bordering

the planned Kupang 1 Peaker site in the North. 33 Figure 7: Geology Map of Kupang District 38 Figure 8: Project site with very shallow soil and outcropping volcanic base rock in

numerous places 39 Figure 9: Earthquake risk, based on recordings from 1900 - 2010 39 Figure 10: Earthquake events 1900 - 2010 40 Figure 11: Hydrological Map of Kupang District 41 Figure 12: Windrose for the year 2016 as simulated with the model WRF (wind blowing

from) (source of the satellite image: Google Earth TM) 43 Figure 13: Palm trees within the proposed project site for Kupang Peaker 2, surrounded

by poor and shallow extensive agricultural land and outcropping base rock. 49 Figure 14: Condition of mangrove habitat in Tanjung Lampu, P. acidula (left) and A.

Marina (right) 50 Figure 15: Zonation of Laut Sawu Aquatic National Park with cetacean sighting data

2013-2017 52 Figure 16: Zonation of national marine reserve of Sawu near project area 55 Figure 17: Natural habitat types near the project area 55 Figure 18: Condition of coral reef near project 56 Figure 19: Upwelling area in LSMNP 57 Figure 20: Cetacean sighting locations in Semau strait 57 Figure 21: Participatory mapping of sighting large IUCN listed species near Project

location 58 Figure 22: Nesting locations for sea turtle near Kupang and Semau and Rote islands 60 Figure 23: Physical Extent of Coastline Covered during the Marine Survey 60 Figure 24: Natural habitats nearby the proposed power plant 62 Figure 25: Location of key natural habitats from Kupang Peaker 2 plant site 62 Figure 26: Tuadale Lake wildlife reserve in relation to the project site 64 Figure 27: DMUs for marine and terrestrial habitats for Kupang Peaker 2 Project 69 Figure 28: Bapak Barnabas being interviewed and expressing his views during the

consultation. 85 Figure 29: Posyandu - the Health facility in the hamlet Panaf (Dusun Panaf) 87 Figure 30: Modeled area, location of the sensitive receptors and emission sources (R –

Receptor, T1 – Timor 1, KP1 – Kupang Peaker 1, KP2 –Kupang Peaker 2) 115 Figure 31: Noise contours for cumulative operations of Timor1, Kupang Peaker 1 and

Kupang Peaker 2 Power Plants 130 Figure 32: Noise contours for cumulative operations of Timor 1, Kupang Peaker 1 and

Kupang Peaker 2 Power Plants with noise control measure 132 Figure 33: Shipping lanes through Sawu Sea 134 Figure 34: Closer view of nearest shipping lane to the Project 134 Figure 35: Shipping route density through Semau strait 135

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EXECUTIVE SUMMARY

A. The Project

a. Project Background and General Objective 1. Electric energy is a central factor to support the regional development specially to support and develop economic activities. Along with the growth of regional development and construction sectors, the demand for energy, particularly electric energy will continue to rise. In future, the growth of economic activity will increase the demand for particularly electric energy continuously. 2. The planned Kupang 2 Peaker Gas Fired Power Plant is part of ADB’s Eastern Indonesia Sustainable Energy Access Sector Project TA-9082 INO. 3. The Kupang 2 Peaker will be a gas engine facility capable of running on natural gas (NG) as primary fuel or high-speed diesel (HSD) as a secondary/backup fuel with a power output capacity of 50 MW and shall serve peak load demands. 4. The project objectives are:

(i) Increasing electricity supply in the region of Nusa Tenggara Timur Province, especially in the Kupang regency;

(ii) Implement Accelerated Development of Power Generation with the use of Gas; (iii) Increasing the availability and reliability of electricity supply from gas-fired power

plant in Nusa Tenggara Timur province; (iv) Providing sufficient energy to fulfill the load demand during peak hours;

5. The Kupang Peaker 2 will improve the reliability and capacity of the existing electrical system in West Timor as well as meet the increasing demand for electric energy during peak hours (05:00 p.m. to 10:00 p.m.).

b. Project Classification, Objectives and Scope of the EIA 6. The project was classified as environment category A per ADB’s Safeguard Policy Statement (SPS 2009), requiring the conduct of an environmental impact assessment (EIA). This EIA covers environmental impact assessment, environmental management plan (EMP) and environmental monitoring plan for Kupang Peaker 2 following the requirements of ADB’s SPS 2009 for such assessment. 7. The main objective of the EIA study is to identify significant environmental impacts and risks resulting from the planned project and to propose measures in order to avoid or at least to reduce environmental impacts and risks to acceptable levels.

c. Project location and access to the site 8. The project site for the planned Kupang Peaker 2 is located south-west of the hamlet Panaf (Dusun Panaf), which is part of the village Lifuleo (Desa Lifuleo), District of West Kupang, Kupang Regency, Nusa Tenggara Timur Province, at the most western tip of Timor Island.

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9. The 20-ha wide project site is presently used for extensive, rainfed agriculture (roughly 60 % of the site, mainly corn and peanuts). The rest of the project site (around 40 %) is secondary bushland with some trees interspersed. The bushland is used for cattle and goat breeding and harvesting of fruits (coconut, cashew). 10. The gas supply will take place through a new jetty, which will be built for neighbouring Kupang Peaker 1. The jetty is planned to be in operation when the construction works for Kupang Peaker 2 commence. Diesel for operating the plant under emergency or during the maintenance of the LNG delivery system will be supplied via road transport. 11. Access to the new site Kupang Peaker 2 will be on the existing access road to the power plants Timor 1 and Kupang Peaker 1 (under construction). These projects are not financed by ADB. 12. Power evacuation will be done via the then existing power lines, which will be constructed/upgraded for the power plants Timor 1 and Kupang Peaker 1.

d. Technical Project description 13. The planned project is directly bordering a planned power plant complex in the north, which is planned to be in operation when the construction activities for Kupang Peaker 2 will commence. Operation of these power plants is considered in the EIA to assess the cumulative impacts in combination with the planned project. 14. Kupang Peaker 1, as the name suggests is planned as a part of Power Plants Complex, which will be built before the construction works for Kupang Peaker 2 begin and comprise:

(i) Timor 1 power plant planned as a steam turbine plant with a power output of 100 MW, with two coal-fired boilers; and

(ii) Kupang Peaker 1 - an engine power plant with 5 dual fuel (NG and HSD) gas engines and an output of 40 MW.

15. Kupang Peaker 2 will be the third power plant in the complex. 16. At the time this report was written, no project or site-specific technical documentation associated with the Kupang Peaker 2 was available. However, planning documents and a layout plan for the neighbouring power plant Kupang Peaker 1 (not financed under the ADB loan) were available and the respective Feasibility Study Report was provided to Fichtner1. Kupang Peaker 2 will be located directly adjacent to Kupang Peaker 1, within the same power plant complex boundary, and will be technically very similar. The main difference is the power output, which will be 40 MW for Kupang Peaker 1 with 5 dual fired engines (NG and HSD) and 50 MW for Kupang Peaker 2 with 4-8 dual fired engines (NG and HSD)2. 17. The Plant will be operated in peaking mode supplying electric power to the local grid, primarily during times of high demand. The peak demand typically occurs daily over a 5 hours

1 Fichtner, Germany had prepared the initial draft of this EIA. The draft EIA has been extensively revised and modified under an individual consultant contract that came in effect in February 2018. 2 The exact number of engines and their capacity totaling to 50 MW is not known at this stage, This EIA considered 4X12.5 MW configuration for Kupang Peaker 2 Power Plant. This is sufficient to predict the impacts of project on all relevant environmental components.

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period between 17:00 and 22:00. In this EIA and in the expert studies for air and noise emission calculations it was therefore assumed that the Kupang Peaker 2 Plant will adopt the same configuration and technology as the planned Kupang Peaker 1 Plant. 18. As a worst-case scenario for the air emission calculations the usage of HSD was assumed.

B. Legal requirements

19. The planned project must comply with the Indonesian environmental and social laws and regulations. 20. In order to fulfil the requirements of ADB’s SPS 2009, project relevant IFC Environmental, Health, and Safety Guidelines as well as WHO standards were considered in this EIA. Recommendations based on these considerations are obligatory to achieve compliance with ADB’s SPS.

C. Project categorization

21. Environmentally the planned project falls into Category A, mainly because of the fact that the project is surrounded by a Marine National Reserve (Suwa Sea, classifying as a critical habitat per ADB’s SPS) and the potential presence of rare, endangered and protected species in the wider project area, especially marine species. East of the project site there is the Tuadale Lake Wildlife Reserve that is home to IUCN red-listed species and contains a mangrove area in fair condition. Significant environmental impacts from the planned project on rare, endangered, or protected species, especially in the marine environment, could not be excluded a priori. 22. The project also gives rise to cumulative impacts of the planned project together with the impacts from the neighbouring power plants Timor 1 and Kupang Peaker 1. There is also Bolok power plant (coal (60 MW); HSD (60 MW)) located at a radial distance of about 13 kilometers that could influence air quality within the area of influence of the project, specially the areas located near to Bolok power plant towards NNE. Proximity of a critical habitat though is the key reason for assigning highest safeguards category for environment by ADB.

D. Environmental and social baseline conditions

23. To determine the environmental and social effects of constructing and operating the planned power plant, a baseline description of the project’s affected area was made for the further assessment of environmental and social impacts caused by the construction and the operation of the planned power plant. This description includes the physical, biological and socioeconomic environment that might be influenced by the construction and operation of the planned project.

a. Physical environment 24. The project site is located at the utmost western Tip of Timor Island near the coast at a south exposed hillside with an inclination of up to 2 %. Wide parts of the 20-ha large project site are flat. 25. The whole project site only has a very shallow layer of laterite soil cover. There are outcrops of volcanic base rock all over the project site without any soil cover. Most of the coastal area is pure volcanic base rock and only locally sandy areas can be found.

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26. Timor island is located at the northern edge of the Australian Plate, near the border to the Sunda plate in a medium earthquake risk zone with a peak ground acceleration of up to 1.6 m/s2. 27. There are no permanent surface water bodies within the physically impacted power plant complex area west of Panaf hamlet. 28. The geological conditions at the project site lead to the assumptions that ground water is expected to be found at best in rock cleavages, and that there is no coherent ground water body. 29. The general climate of the project area is dry and tropical with two distinct seasons. The rainy season lasts for up to 4 months, the dry season up to 9 months. One project site specific peculiarity is the fact that the wind, which comes from a predominantly south-easterly direction, will mostly blow eventual emissions away from the planned power plant complex mainly to north-west, towards the sea and away from Timor island. 30. The environmental assessment documents required under Indonesian regulations, AMDAL for Timor 1 and UKL-UPL for Kupang Peaker 1, were available at the time of preparing this EIA. These documents included air quality and noise measurements at and around the project site and were used to define baseline for air quality and noise for this EIA. These observations indicate near pristine air quality and low ambient noise baseline levels well below national and international standards for air quality and noise. These observations appear representative of the project area which is sparsely populated and devoid of industrial activity, motorized traffic or anthropogenic sources of noise.

b. Natural environment 31. A large part (around 60%) of the proposed project area for Kupang Peaker 2 is covered by rainfed crops (corn and peanuts) and secondary bushland (roughly 40 %) with shrubs and a few trees (coconut, cashew) interspersed. 32. Beside several common bird species, monkeys and deer can be observed in the secondary forest and bushland, according to statements from local residents. The quite poor onshore situation regarding environmental species and habitats stands in strong contrast to the rich marine environment surrounding the power plant complex in the south and west. 33. As the planned project is located near the coast, an expert study about the marine environment was conducted to compile baseline data, but also to include the opinion of a marine expert on the assessment of potential impacts for the planned project. The marine expert study is attached as Annex C to this EIA report. 34. The planned power plant complex is surrounded by a marine utilization zone, which is part of the Sawu Sea Marine National Park. This National Park, which covers 3.36 million hectares (ha) with a core zone of 80,000 ha is based on the Minister Decree of Marine Affairs and Fisheries of the Republic of Indonesia 38/2009 dated May 8, 2009. 35. According to this decree this approximately 1 km wide utilization zone is mainly designated for ecotourism, research and education, and as a shipping route. The utilization zone is surrounded by an area specifically designated for the protection of cetaceans (whales and dolphins).

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36. Sawu Sea is essentially a coastal upwelling zone for the Indo Pacific region. Coastal upwelling supports the growth of seaweed and plankton and creates a rich ecosystem. These provide food for marine biota such as cetacean (whales, and dolphins) and Dugong. 37. The environmental quality of the coastal waters and habitats bordering the project complex though is still fair and coral reefs and sea grass areas exist in proximity to the project site; the habitat does not satisfy the population criteria to qualify as critical habitat for any of the species other than Hawksbill turtle (IUCN status – CR). 38. The frequency of Hawksbill turtle visiting the project area could not be determined by the interviews with local fishermen. However, considering the proximity of the nesting site at Tudale Lake Wildlife Reserve beach area (at about 7 km from the project site), as a matter of precaution it is considered that the marine habitat adjoining the project is frequently visited by the Hawksbill turtle and it is a critical habitat for the species. 39. Tudale Lake Wildlife Reserve located East of the project site is also home to several IUCN red-listed species including One migrant bird (Numenius madagascariensis) classified as Endangered (EN). The reserve also has a mangrove forest that is partly in poor (near the project site) and partly in fair condition (near Lifuleo village).

c. Socio-economic conditions 40. The project site for the planned Kupang Peaker 2 is located at the most western tip of Timor island, around 700 m south-west of Panaf hamlet (Dusun Panaf), which is part of Lifuleo village (Desa Lifuleo), in the District of West Kupang, Kupang Regency, Nusa Tenggara Timur Province. 41. No residential houses are located within the project site for Kupang Peaker 2 and the land of the project site is used by local residents for rainfed agriculture (corn and peanuts) and the bushland is used for cattle breeding and harvesting of coconuts and cashew nuts. 42. The hamlet (Dusun) Panaf, one of the hamlets of Lifuleo Village, has 37 households that consist of 34 male-headed households and 3 female-headed households (Damaris Saketu, Juliana Saketu, and Mama Naema). The customary community in Dusun Panaf is known as the Suku Minfini. 43. Community work is the general working method in the farming village. While farming remains the main livelihood activity in the community, fishing activities are also conducted on a seasonal basis. Other minor livelihood activities in the community are seaweed farming, and livestock raising (cattle, goat, pig). 44. The fishing period lasts from December to April. In October, at the beginning of the rainy season, agricultural lands are usually prepared for farming. Planting and/or seeding on the farmlands starts in early December and the harvest season begins in May. Suku Minfini leadership is patriarchal whereby the eldest son/male heir is appointed as Head of Suku/customary leader. All decisions regarding land use are discussed with the customary leader. There are 4 main important places/resources for the Minfini: burial area of ancestors, settlements, church, and agriculture land. The Minfini lives by strict adherence to local customs and wisdom in order to maintain social order and mutual cooperation.

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E. Impact assessment

45. The assessment of the impacts of the planned power plant was conducted within the project’s area of influence, and covered impact to the physical, the biological and the socio-economic environment. It considers the construction and the operational phases (including maintenance) of the project.

a. Impact on physical environment 46. The major environmental issues in connection with a gas and diesel fired power plant during the operation phase are usually air and noise emissions. 47. As a sound basis for an assessment of noise and air emissions, expert studies with noise and air emission calculations were conducted, which are considering the overlapping effects of the relevant noise and air emission sources from the planned neighbouring Power Plant facilities Timor 1 and Kupang Peaker 1 as well as the forecast emissions from the planned Kupang Peaker 2. Wherever more than one project option exists, “worst case scenarios” were used for the emission calculations and the impact assessment. The expert reports are attached as Annex D (Air Quality Modelling) and Annex E (Noise Emission Calculations) to this EIA Report. 48. The air quality modeling simulations indicate that Kupang Peaker 2 Power Plant, as a standalone plant, fully complies with the Indonesian ambient air quality standards. Furthermore, for all air quality parameters, its contribution to pollutants concentrations at any point in airshed remains within 25% of Indonesian ambient air quality standards, if the plant operates as a Peaker plant and limits its operations to 6 hours a day (instead of planned 5). 49. In terms of cumulative impacts, the Bolok power plant 13 km north of the project does not significantly influence the air quality at locations proximate to the Project. It though has some influence on the northern region of the airshed. 50. The results of air quality modelling further show that for SO2, due to the impact of Timor 1 power plant, the 24-hourly average GLCs at nearby receptors to the Project are higher than the WHO guideline value for 24 hourly average levels (20 µg/m3). As per ADB policy therefore the airshed for SO2 is termed as ‘degraded’. Under HSD operations mode, the SO2 contribution due to the project, itself, at all locations are however insignificant and within the permissible levels. For gas mode operations the Project does not add to SO2. The Project therefore complies with the ADB policy for its impacts for SO2. 51. For NO2 the GLC under cumulative impacts., at all receptors, are within WHO guideline value for 1 hourly average (200 µg/m3). There are some exceedances to WHO guideline value but these are limited to within the plant boundary and therefore the airshed is termed as ‘non-degraded’ for NO2. The Project contribution to NO2 at any point is below 25% of the 1 hourly average national ambient air quality standards (400 µg/m3). These observations though, are relevant if the plant operates as a Peaker plant and limits its operations to 6 hours a day (instead of planned 5). The project, therefore, complies with ADB policy for NO2. PM10 emissions in the airshed are low and PM10 GLCs are well within the WHO guideline value. These results have been obtained considering the stack height of Kupang Peaker 2 as 45 m.

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52. The air quality modelling simulation is done with the assumption that Timor 1 and Kupang Peaker 1 power plants will comply with national emission standards for all parameters. PLN will ensure such compliance by design of Timor 1 and Kupang Peaker 1. 53. The noise studies indicate that in standalone mode the individual plants meet the applicable noise levels (national for Timor 1 and Kupang Peaker 1 and international for Kupang Peaker 2). Additional noise control by way of installation of combustion air intake silencer will be required at Kupang Peaker 2 to meet the ambient noise standards for operations in cumulative mode. It may be noted that both Kupang Peaker 1 and Kupang Peaker 2 will be equipped with silencers at gas engine exhaust stack and gas engine building openings as per the current practice for noise control in similar power plants in Indonesia.

b. Impact on natural environment / ecological resources 54. For Kupang Peaker 2, the construction phase activities that impact natural environment are (i) construction of water intake and discharge lines near the coast fronting the project; and (ii) construction activities at the project site that could affect marine and terrestrial environment. 55. Construction of intake and effluent discharge infrastructures will not lead to any measurable impacts on marine environment as the facilities are very small in size and do not involve any heavy construction. During operations, quantum of water intake (100m3/day) and discharge of treated effluents (5 m3/day) meeting international effluent standards for discharge into marine waters (IFC EHS Guidelines) are very small and not likely to cause measurable impacts. 56. Sediment runoff and discharge of effluents during construction could lead to impairment of marine water quality and thus impact marine biodiversity. In case of Kupang Peaker 2, due to small footprint and rocky substrata the sediment runoff is expected to be low. The impacts are further controlled through mitigation measures for sediment control and effluent treatment. 57. There are no significant direct impacts during construction or operation on terrestrial natural habitat. Indirect impacts due to intrusion by workers into Taudale Lake Wildlife Reserve or coastal environment and indulgence in illegal poaching or destruction of corals though poses a significant risk to natural habitat if not controlled. EMP entails that PLN through contractor and direct supervision exercises strict vigilance and imposes heavy penalties on offenders to mitigate such risk. 58. Operation of LNG supply tankers for Kupang 2 Peaker could lead to potential impact on marine mammals in the Sawu Sea. A set of mitigation measures for tanker operation have been recommended to avoid collisions with the mammals and lower the level of disturbance. 59. Kupang Peaker 1 and Kupang Peaker 2 do not have any cumulative impacts with Timor 1 due to cooling water discharge as these dual fuel engine-based power plants use radiator technology where cooling is achieved through flow of forced air on radiator frame.

c. Impacts to socio-economic resources 60. No houses or buildings are located within the planned project site for Kupang Peaker 2. Affected property will be compensated by PLN.

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61. Presently the project site is used by the local people for extensive, rain fed agriculture (mainly corn and peanuts), livestock breeding (cattle, pigs, goats) and harvesting of fruits (coconuts and cashews). The settlement next to the project site is the hamlet Panaf, around 500m north of the planned project site. 62. PLN acquired 52 hectares of land for the power plant complex. Of the 52 ha, the ADB-funded Kupang Peaker 2 will require around 5 ha. A total of 9 households (41 persons) of the Minfini ethnic group will be affected by the project. Six affected households (AHs) are deemed vulnerable and all 9 AHs will be severely affected. The land acquisition process was completed at the time this EIA Report was finalized. These issues are covered under social safeguards for the project. 63. The planned project will provide job opportunities for the local people, numerous temporary jobs during the construction phase and some permanent jobs in the operation phase. 64. Air and noise emission calculations were made to assess the impacts of the emissions from the existing as well as from the planned power plant on residential houses and sensitive areas in the vicinity of the project site. The project does not have any significant air quality impact at any of these sensitive receptors. Suitable mitigation measures have been incorporated in the plant design for abatement of noise to comply with national and international standards for ambient noise at sensitive receptors.

F. Environmental Management and Monitoring Plan

65. The mitigation measures, necessary to keep the construction and operation phase environmental impacts of the project to acceptable levels, are compiled in this EIA Report in form of an Environmental Management Plan (EMP). The EMP details:

(i) The environmental attribute (e.g. air quality) that is likely to be impacted; (ii) A summary of the potential impact and/or likely issue; (iii) The identified mitigation actions that aim to eliminate and/or reduce the potential

impact to acceptable levels; (iv) Monitoring requirements to ensure that the identified mitigation measures are

implemented. Monitoring actions include: inspections, review of reports/plans, reporting, and the undertaking of certain environmental effect monitoring measures;

(v) The frequency for implementing the monitoring actions, which include: once, continuously throughout the construction/operation period (depending on the mitigation measure identified this could include daily, weekly, or monthly), or upon occurrence of a certain issue;

(vi) The responsible entity for implementing the mitigation measures and monitoring actions identified;

(vii) Monitoring must commence from the loan effectiveness date, as it includes monitoring of pre-construction measures. Semi-annual monitoring reports must be provided, even if to confirm that no works commenced.

66. The EMP forms the basis for further, more detailed protection, safety and security measures planning (site-specific EMP), which must be set up by the EPC contractor during detailed engineering design (DED) and submitted to the PLN for clearance. As a “living document”

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the site-specific EMP shall be updated once per year throughout the entire construction period. This requirement will be clearly spelled out in the Bidding Documents for the EPC contract. 67. Additionally, specific Health & Safety protocols must be set up by the EPC contractor. The EPC contractor must ensure that the necessary measures to prevent accidents and injuries in the construction phase are properly planned and applied through an EHS Plan. 68. A construction safety manager shall be nominated to perform inspections on site, monitor the application of the plan and report accidents, incidents and emergencies. An emergency preparedness and response plan for the construction/installation phase has been developed and is described in Section 6 of the EMP. 69. An environmental and social expert, employed by the contractor, shall survey the construction works and ensure that the EMP and the specific H&S plans are de facto applied at the construction site. 70. In the operation phase, internal EMP implementation supervision and monitoring will be conducted by the EPC contractor and the implementation consultant. In addition, and in response to ADB’s Safeguard Policy Statement (2009) requirements for cat. A project, an external environmental expert will be contracted by the PLN to verify the EMP monitoring findings. The internal and external monitoring reports will be submitted to PLN and ADB for review and disclosure.

G. Public participation

71. Meaningful public consultation was conducted throughout project preparation, and will continue throughout project implementation. 72. Formal stakeholder consultations on environmental safeguards were held on two occasions, January 29, 2018 and July 17, 2018 at Panaf village. These consultations were attended by 72 and 67 participants, respectively, from PT PLN (Persero), Asian Development Bank (ADB), PPTA Consultant, NTT Provincial Government Officials, Sub-District’s Head, Village Head, Community Leaders, Indigenous Leaders, and Project Affected Persons. 73. The purpose of the first consultation was to inform the stakeholders about the project and its likely impacts and seek their views on key environmental issues that require mitigation. The second consultation was held after the draft environmental assessment was completed. The purpose of this consultation was to present the key impacts of the Project and seek stakeholders’ views on adequacy of proposed mitigation measures. During the second consultation, a detailed presentation of anticipated project impacts and proposed mitigation measures was made. 74. The key issues raised by the community during the first consultation were primarily related to construction phase impacts and included safety of children, noise and dust pollution due to transportation of construction material, poor approach road needing improvement and impacts of disposal of wastewater on coastal waters impacting the fishermen and sea weed farming. 75. During the second consultation, the stakeholders did not seek any further explanations on operational phase air quality and noise impacts but made several suggestions related to construction phase impacts including road improvement, traffic management, speed control, road safety, vibrations and dust impacts. A compilation of the two meetings is attached as Annex B to

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this report. The EMP was further strengthened to address stakeholders’ concerns related to project impacts.

H. Overall findings and Recommendations

76. The impacts caused by the planned standalone project Kupang Peaker 2 are assessed as not significant after application of the proposed mitigation measures. 77. The wider coastal area west of Kupang comprises Sawu sea marine national park that is an important natural habitat for several IUCN red-listed species. A marine study undertaken by the project, interactions with the fishermen and observations by the project team concluded that the marine area adjoining the project also has important ecological features and was of conservation significance. The presence of the critically endangered (CR) Hawksbill turtle was confirmed in the project area. Though the investigations could not establish if the project area was a critical habitat for the species, as a precautionary measure, the project area was considered as such and applicable provisions of ADB’s SPS for critical habitats were applied. 78. Due to the project’s small environmental footprint, the assessment could conclude that direct impacts of the project on marine (critical habitat) as well as terrestrial (natural habitat) environment were negligible. The project, therefore, can be supported by ADB if its indirect impacts on wildlife due to probable intrusion by workers into marine or terrestrial habitat are adequately mitigated. The potential impact to marine life due to collision with LNG vessels was another issue that needed attention. The EMP for the project considers these issues in detail and necessary recommendations for their mitigation are included. 79. Air quality impacts of the project were assessed using AERMOD View version 9.5. Cumulative impacts of all relevant air emission sources including the existing Bolok power plant (a coal and diesel fired power plant located at 13 km NNE of project), planned Timor 1, Kupang Peaker 1 (under construction) power plants and planned Kupang Peaker 2 were considered. Wherever more than one project option exists, “worst case scenarios” were used for the emission calculations and impact assessment. 80. The assessment indicates that the Project (assuming the project and Timor 1 and Kupang Peaker 1 will meet the national air emissions standards) will comply with ADB’s SPS for its impacts on air quality. PLN therefore will need to ensure by design and operation of the plants that such compliance is achieved for Timor 1 and Kupang Peaker 2 power plants. PLN will also ensure that the stack heights of Timor 1, Kupang Peaker 1 and Kupang Peaker 2 are 80m, 27m and 45 m, respectively. Any change to these pre-identified stack heights must be justified at DED stage by the EPC contractor through detailed dispersion modelling. 81. Regarding noise, an expert noise study was conducted that provides quantitative assessment of noise impacts. The study recommends to meet the national and international standards. It is observed that none of the projects, in standalone mode, exceeds the noise standards at Panaf village. In cumulative mode, however, the noise is projected to exceed the standards. Additional noise control measures for Kupang Peaker 1 as well as Kupang Peaker 2 have been recommended to ensure compliance with applicable ambient noise standards. 82. The following key commitments are necessary to maintain the environmental impacts of Kupang Peaker 2 to an acceptable level:

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(i) Conduct of a series of additional surveys as part of the DED, to be prepared by the EPC Contractor for the project. These surveys will include, but not be limited to:

• Site-specific seismic hazard study including liquefaction study;

• Pile capacity analysis;

• Fire hazard study and fire safety proposal;

• Operational noise impact assessment, to demonstrate compliance with (i) maximum sound pressure levels at 1m from any point on any item of equipment including valves (85dBA); maximum sound pressure level at site boundary (70 dBA during daytime and 60 dBA during nighttime); and (iii) maximum sound pressure level at nearest sensitive receptor (55 dBA during daytime and 45 dBA during nighttime), or a maximum incremental increase of 3 dBA should baseline indicate exceedance with the standard;

• Dispersion modeling in accordance with the configuration of equipment which will be used; ensure minimum stack height of all stacks for Timor 1, Kupang Peaker 1 and Kupang Peaker 2 at 80m, 27m and 45m, respectively. Any change to identified stack heights must be justified at DED stage by the EPC contractor through detailed air quality modelling.

• Health and safety risk assessment and management plan, with a focus on fire and explosion risk of gas and diesel supply and storage facilities, accounting for external and internal hazards.

(ii) Operate Kupang Peaker 2 with LNG under normal operations and only in case of emergency and in short-term with HSD (Sulphur content below 0.25%).

(iii) All plants need to comply with national air emissions standards. (iv) Installation of recommended additional noise control measures for Kupang Peaker

1 (additional) and for Kupang Peaker 2. (v) Develop a wildlife conservation/protection protocol for workers and impose strict

penalties against offenders. (vi) Maintain vigilance on LNG vessels for presence of cetacean in vessel’s path and

reduce speed, if presence is detected. (vii) Lead all marine vessels to project site under guidance of a pilot boat maintaining

cruise speed within 4 km/h.

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INTRODUCTION

A. Project Background and Objective

83. Electric energy is a central factor to support the regional development, especially to support and develop economic activities. Along with the growth of regional development and construction sectors, the demand for energy, particularly electric energy will continue to rise. In future, the growth of economic activity will increase the demand for particularly electric energy continuously. 84. The electricity system in East Nusa Tenggara (NTT) Province in Indonesia consists of 59 power plants with a total peak energy output of 158,7 MW (September 2014). All energy is produced by diesel fuelled and coal fired power plants, but there are also hydro and mini-hydro powerplants. So far, the Bolok Coal Fired Power Plant (Coal (60 MW); HSD (60 MW)), located 13 km north-north -east (NNE) of the planned Kupang Peaker 2 has supplied energy for Kupang City and Kupang Regency via a 20 20-kV transmission line. 85. Most of the power plants in NTT are diesel fuelled and cause high costs. Highest electricity demand in Kupang occurs in the evening. PLN will construct new power plants to fulfil peak power needs, especially to provide energy during peak hours. The new power plants to be built include Kupang Peaker 1 (gas-fired, 40 MW), Timor 1 Coal Fired Powerplant (2x50 MW), and Kupang Peaker 2 (Gas Power Plant 50 MW). These three power plants are planned next to each other at the utmost western tip of Timor Island. 86. The main objective of the planned development project Kupang Peaker 2 supported by this project is to provide sufficient energy to fulfil the load demand especially during peak hours. 87. The new power plant will improve the reliability and capacity of the existing electrical system in East Nusa Tenggara (NTT) Province on the Timur Island, as well as meet the increasing demand for electric energy especially during peak hours. 88. For these reasons PLN has decided to build the new power plants Kupang Peaker 1 (40 MW), Timor 1 Coal Fired Power Plant (2x50 MW), and Kupang Peaker 2 (Gas Power Plant 50 MW). The power output capacity of Kupang Peaker 2 will be 50 MW +- 10%.

B. Scope of the Study

89. According to the TOR the following environmental safeguard documents have to be provided in line with ADBs SPS 2009:

(i) environmental assessment and review framework for the overall sector project;

(ii) environmental impact assessment (EIA) or initial environmental examination (IEE) of each core subproject;

(iii) environmental management plan (EMP), environmental monitoring plan and cost estimates for the implementation of the EMP for each core subproject.

90. This EIA covers the item (ii) and (iii) for the core project Kupang Peaker 2.

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91. The main objective of the EIA study is to identify the environmental impacts and risks resulting from the planned project and to propose measures to avoid or at least to reduce environmental impacts and risks to an acceptable level. 92. Within the scope of this EIA is the project’s potential impact on physical, biological (terrestrial and marine) and socio-economic resources in the project area of influence (AOI). 93. Regarding noise impacts, the project area of influence (AOI) for Kupang Peaker 2 is defined as the 55 dB(A) zone. For marine impacts, an AOI of 1 km radius from the Project location has been considered. This is due to limited extent of physical marine infrastructure required for the project. A radius of 10 km around the center of point-source emissions has been considered as the calculation area for air emissions, as some sensitive receptors were identified in the area, including beaches and villages. The AOI encompasses the seaweed beach in the north, the mangrove forest in the east, and the coastal areas (including the reef flat and the slope) nearby the proposed site. 94. Outside the power plant site itself there are no project associated facilities which have to be assessed within the EIA for Kupang Peaker 2, as the necessary infrastructure will already have been built as part of the projects Timor 1 and Kupang Peaker 1. These structures will be built anyway, independently of Kupang Peaker 2 and thus do not classify as associated facilities per ADB’s SPS. The EIA though assesses impacts of construction and operations of the LNG jetty for Kupang Peaker 1; and recommends mitigation measures to avoid, minimize and mitigate the impacts on marine environment. This is a precautionary approach to ensure that at the time of construction of Kupang Peaker 2 (which will also use the jetty as existing infrastructure with Kupang Peaker 1).. For more information regarding associated facilities, please refer to chapter IV. 95. The Timor 1 and Kupang Peaker 1 projects are at different stages of development but according to the information provided by PLN they will be built and operating by the time the construction activities for Kupang Peaker 2 begins. The construction of Kupang Peaker 1 commenced in late 2017 and is expected to be completed by middle of 2019. For the assessment of the environmental impacts within this report, it is therefore assumed that both plants will be operating during construction and operation of the Kupang Peaker 2. A few gaps in compliance with ADB policy are observed during the ongoing construction of Kupang Peaker 1. The scope of corrective measures to address these gaps along with measure to minimize and mitigate impacts to corals during construction of LNG jetty have been summarised in the Corrective Action Plan (CAP) in this EIA for Kupang Peaker 2. Implementation of CAP is a condition precedence for release of funds for the Project under ADB loan. 96. The projects Timor 1 and Kupang Peaker 1 have already been approved by the relevant Indonesian environmental authorities, and as these are not financed by ADB, these are not further assessed in this EIA Report3.

3 The EIA though includes key observations made during the site visit to the project site (May 2018), at an early stage of construction of Kupang Peaker 2, and includes the recommendations made to PLN to address observed gaps with respect to good construction practice.

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C. Data sources

97. Beside a generic layout, no specific documentation associated with the Kupang Peaker 2 was available at the time this report was written. The project is listed in the current RUPTL, but PLN has still to prepare a Feasibility Study for it. As completion of this project is intended for 2022, the project so far was not on PLN’s completion priority schedule. 98. The planning of Kupang Peaker 1 (not financed under this ADB sector loan) was more advanced than that of Kupang 2, and the respective Feasibility Study was made available. According to information from PLN, Kupang Peaker 2 will be located adjacent to and south of Kupang Peaker 1. The capacity will be 40 MW for Kupang Peaker 1 and 50 MW for Kupang Peaker 2. 99. As no technical description and no specific layout was available at the time when this EIA was conducted, it was assumed that Kupang Peaker 2 will be technically similar to Kupang Peaker 1. Therefore, the general layout and the technical description of Kupang Peaker 2 was derived from and adapted from the documents available for Kupang Peaker 1. Since both plants are modular gas engine power plants, this approach seems adequate to provide sufficiently reliable conclusions of the environmental assessment. This information was used as a basis for the environmental assessment of Kupang Peaker 2. 100. The main technical information sources for this EIA report were the PLN Feasibility Studies for Timor 1 and Kupang Peaker 1, and the Kupang Peaker Technical Report. Other documents used as a baseline for this study comprise:

(i) Final Report Feasibility Study KUPANG GEPP (PEAKER) 40 MW (Kupang Peaker 1), August 2015

(ii) Draft UKL-UPL PLTMG Kupang Peaker 1, April 2016 (iii) Draft AMDAL for Timor 1 coal power plant (iv) Kupang Peaker 2 - Site visit Report, Fichtner, October 2016 (v) Kupang Peaker 2 - Rapid Environmental Assessment Report, Fichtner,

December 2016

101. Four technical studies were conducted to provide additional information and technical inputs on air quality, noise impacts, biodiversity and rapid risk assessment for the assessment of environmental impacts from the Kupang 2 PP. These technical studies comprise:

(i) Marine Study (Annex C to this Report) (ii) Air Quality Modeling (Annex D to this report) (iii) Noise Emission Study (Annex E to this report) (iv) Rapid Risk Assessment (Annex F to this report)

102. In addition to the available data, additional information was collected during field surveys conducted by the national and international environmental and socio-economic experts in 2016, 2017 and 2018. Socio-economic baseline surveys were carried out for sample populations located within the project area of influence. Additional information was collected from literature, internet sources, and discussion with local residents, experts, administration and authorities.

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103. Recent, high-resolution (50 cm) satellite maps were bought for the project area of influence in order to precisely locate impact areas and to enable a quantitative assessment (wherever possible) of ecological and social impacts.

D. Project categorization

104. Environmentally the planned project falls into Category A, mainly because the project is surrounded by a Marine National Reserve (Suwa Sea, a critical habitat) and the potential presence of rare, endangered and protected species in the wider project area, especially marine species. East of the project site there is Tuadale Lake Wildlife Reserve that is home to IUCN red-listed species and contains a mangrove area in fair condition. Significant environmental impacts from the planned project on rare, endangered, or protected species, especially in the marine environment, could not be excluded a priori. 105. The project also gives rise to cumulative impacts together with the impacts from the neighbouring power plants Timor 1 and Kupang Peaker 1. There is also Bolok power plant (coal (60 MW); HSD (60 MW)) located at a radial distance of about 13 kilometers that could influence air quality within the area of influence of the project, specially the areas located near to Bolok power plant towards NNE. Proximity of a critical habitat though is the key reason for assigning highest category safeguards for environment by ADB. 106. Regarding Involuntary Resettlement and Indigenous Peoples, the planned project falls into Category B. A Resettlement and Customary Communities Development Plan (RCCDP) has been developed for the project to address the impacts on the affected households.

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INSTITUTIONAL AND LEGISLATIVE FRAMEWORK

A. Domestic regulatory framework

107. Generally, the major environmental issues with a gas and diesel fired power plant are air emissions, noise emissions, and emissions of wastewater discharged into the aquatic environment. An important concern is plant safety during operation. 108. The national emission limits for stationary sources, including thermal power plants, were issued on 1 December 2008 and replaced the earlier 1995 standards. The regulations include limits for the emissions of Sulphur dioxide, carbon monoxide, nitrogen oxides (as nitrogen dioxide) and particulate matter for existing, in development and new power plants. Fuel types covered by the decree include coal, oil and natural gas. Power plants must meet these emission standards 95% of the time over 3 months. 109. Table 1 shows the national emission limit values applicable for engines and boilers facilities producing more than 50 MWth. Because these values consider “standard” conditions (temperature of the flue gas of 25 °C), Table 2 shows the values adapted to meet the “normal” conditions (0°C). A correction for the percentage of O2 is also undertaken.

Table 1: Indonesian emission limits for emissions to air from stationary sources (Ministry of Environment Regulation No. 21 of 2008)

Pollutant

ELV [mg/m3] for new engines **

ELV [mg/m3] for boilers > 50 MWth

Gas Oil Coal

CO 500 540 NE

SO2 150 600 750

NO2 320 1,000 750

TSP 30 120 100

Dry gas, excess O2 content

5% 5% 7%

Temperature flue gas

25°C 25°C 25°C

ELV: Emission Limit Values | NE: Non-existent * Attachment II B | ** Attachment IV B

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Table 2: Adapted Indonesian emission limits for emissions to air from stationary sources (adapted from Ministry of Environment Regulation

No. 21 of 2008)

Pollutant

Adapted ELV [mg/m3] for new engines **

ELV [mg/m3] for boilers > 50 MWth

Gas Oil Coal

CO 203 219 NE

SO2 61 243 878

NO2 130 405 878

TSP 12 49 117

Dry gas, excess O2 content

15% 15% 6%

Temperature flue gas

0°C 0°C 0°C

ELV: Emission Limit Values | NE: Non-existent * Adapted from Attachment II B | ** Adapted from Attachment IV B

110. The International Finance Corporation (IFC, World Bank Group) defined guidelines for the emissions of facilities producing more than 50 MWth using combustion engines and combustion turbines (Table 3).

Table 3: IFC emission guidelines for facilities larger than 50 MW with combustion turbines and combustion engines (IFC, 2008)

Pollutant

ELV [mg/Nm3] for combustion engines; facilities > 50 MWth

ELV [mg/m3] for boilers > 50 MWth

Natural Gas

Liquid fuels < 300 MWth

Coal

CO NE NE NE

SO2 NE 0.5 - 2%S/1,170 400 - 1,500

NO2 400 (dual fuel)

400 - 2,000 (dual fuel)

200 - 1,100

TSP NE 30 - 50 30 - 50

Dry gas, excess O2

content 15% 15%

6%

Temperature flue gas

0°C 0°C 0°C

NE: Non-existent

111. The specifications for Kupang Peaker 2 require the compliance with the national emission limit values. It is noteworthy that national standards for gas engines-based power plants are more stringent than IFC EHS defined guidelines. Compliance with national standards therefore meets the requirement of ADB policy.

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a. Ambient Air Quality Standards 112. The Air Quality Standards are defined according to the different levels of danger that the pollutants pose depending on the period of exposure. This way, the standards are defined for different time frames, allowing the protection against the short-term acute impacts, the medium-term impacts and the long-term impacts. 113. IFC states that emissions from projects shall not result in pollutant concentrations in the ambient air that reach or exceed the relevant ambient air quality guidelines and standards by applying the national legislated standards or, in their absence, the World Health Organization (WHO) Guidelines or other internationally recognized sources like the U.S. EPA (United States Environmental Protection Agency) or the European Council Directives (ECD). 114. The IFC recommends, in addition, that the emissions from a single project should not contribute to more than 25% of the applicable ambient air quality standards to allow additional, future sustainable development in the same airshed. This implies that even when ground level concentration (GLC) of a certain pollutant complies with ambient air quality standard, it shall be evaluated whether it is below or above 25% of that standard. This is also assessed in the present study. 115. Table 4 presents the national ambient air quality standards (NAAQS, established by the 1999 Government Decree No. 41) and the guidelines defined by WHO (2005) that are applicable to the project. The WHO provides interim targets (IT) in recognition of the need for a staged approach to achieve the recommended guidelines (GL). It is evident from Table 4 that the national standards are generally less restrictive than the IT and GL defined by the WHO.

Table 4: National Ambient Air Quality Standards and WHO Guidelines

Pollutant Averaging

period

Air Quality Standards [μg/m³] *

Indonesia NAAQS **

WHO

CO

1 hour 30,000 -

24 hours 10,000 -

SO2

10 minutes - 500 (GL)

1 hour 900 -

24 hours

365

125 (IT1) 50 (IT2) 20 (GL)

1 year 60 -

NO2

1 hour 400 200 (GL)

24 hours 150 -

1 year 100 40 (GL)

24 hours

150

150 (IT1) 100 (IT2) 75 (IT3) 50 (GL)

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PM10

1 year

-

70 (IT1) 50 (IT2) 30 (IT3) 20 (GL)

TSP

24 hours 230 -

1 year 90 -

IT = Interim target; IT are provided in recognition of the need for a staged approach to achieve the recommended guidelines | GL = Guideline * 20°C and 101.3 kPa ** ADB, 2006

116. Benchmark for measuring the impact of noise level is the stricter regulation of either Decree Number KEP/48/MENLH/11/1996 or the respective IFC EHS guidelines. A comparison of the national standards and IFC guidelines for acoustic environment is provided in the table below. IFC Guidelines for noise limits in residential areas at night time (22:00 to 7:00) are stricter compared to the national standards. Notwithstanding the standards, IFC guidelines do not allow increase of more than 3dB(A) to background noise levels.

Table 5: National Standards and IFC Guidelines for Noise

Parameter Indonesian Standard*

IFC Standard**

Noise (dBA), workplace 85 85

Noise (dBA), industry, trading, services 70 70

Noise (dBA), government and public facilities, cultural reserves

60

Noise (dBA), residential, day (7:00 – 22:00) 55 55

Noise (dBA), residential, night (22:00 – 7:00) - 45

Source: *) MoE Decree No. 481996 concerning on Noise Level Standard **) IFC EHS General Guidelines – Table 1.7 Noise Level Guidelines and Table 2.3.1 Noise Limits for Various Working Environment. The levels prescribed in these guidelines for ambient noise at residential land use are hourly equivalent noise level.

117. Effluent discharge from the Project will primarily be associated with wastewater from the construction worker camp during construction, and sanitary facilities and workshops during the operation of the power plants. As per the ADB policy the parameters of treated process water from the plant should not exceed the discharge standards provided in the IFC EHS guidelines for Thermal Power Plants.

118. It is observed that national standards for effluent discharge into marine waters provide some parameters not included in IFC EHS guidelines. The Project therefore adopts national standards for such parameters. For other parameters it is observed that IFC EHS guidelines are more stringent than the national standards. The Project therefore adopts IFC EHS guideline values for those parameters.

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Table 6 presents the recommended standards for the Kupang Peaker 2 for discharge of treated effluents into marine waters. 119. The Project being located along the coast that comprise the utilization zone for Sawu Sea National Marine Park, the effluent discharge into the sea was consulted with the Sawu Sea National Marine Park Authority (BKKPN). BKKPN confirmed that water intake and effluent discharge were permitted activities within the utilization zone of the Park. The effluent discharges must meet the national discharge standards for marine waters. Being more stringent among the national standards and IFC EHS guidelines, the standards adopted for the project comply with the BKKPN requirement.

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Table 6: Marine discharge standards for Kupang Peaker 2 derived from National Standards and IFC Guidelines for thermal power plants (Unit

= mg/l, except for pH and temperature)

Parameter

Env. Minister Decree *

IFC Effluent Guidelines ** Standards for Kupang

Peaker 2***

1 Temperature 40oC To be determined (by the

EA4) <3oC above ambient

3 Suspended Solids 100 50 50

4 pH 6 – 9 6 – 9 6 – 9

5 Iron (Fe) Total Fe: 3 1.0 (Total Fe) 1.0 (Total Fe)

6 Copper (Cu) 1 0.5 0.5

7 Zinc (Zn) 1 1.0 1.0

8 Total Chromium 0.5 0.5 0.5

9 Cadmium (Cd) 0.1 0.1 0.1

10 Mercury (Hg) - 0.005 0.005

11 Lead (Pb) - 0.5 0.5

12 Arsenic (As) - 0.5 0.5

13 Free Chlorine (Cl2) 0.5 0.2 (Total residual Cl) 0.2 (Total residual Cl)

14 Oil & Grease 10 10 10

15 Phosphate (PO4-) 10 2 2

* Environmental Minister Decree No. 55/MENLH/2013, concerning wastewater discharge standards; ** IFC Effluent Guidelines as stipulated in the IFC EHS Guidelines – Thermal Power Plants, 2008 *** The standards adopted for the Project is generally the more stringent of the two standards.

b. Regulatory framework related to Occupational health and safety, Disaster risk management

120. The Indonesian legal framework is equivalent with ADB’s SPS policy principle No 10, which requires the borrower to (i) provide workers with safe and healthy working conditions and prevent accidents, injuries, and disease; and (ii) establish preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities.5 121. In addition to the requirements on worker safety through the national Law on Labor, PLN has issued its internal decree that requires projects to provide PLN workers with safe and healthy working conditions and prevent accidents, injuries, and occupational disease. It also requires the establishment of preventive and emergency preparedness and response measures in PLN. This decree applies for employees and labors in all units of the company. 122. Additionally, national laws on disaster management provide for the protection of communities through disaster risk management measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities.

4 The area of elevated temperature due to the discharge of the cooling water should be minimized by adjusting the

intake and outfall design. The EA will provide input to this, based on any identified sensitive aquatic ecosystem near the discharge point (e.g., 1°C, 2°C, or 3°C above the ambient water temperature).

5 ADB. 2009. Safeguard Policy Statement. Manila. p. 16.

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B. ADB Safeguards

123. Environmental sustainability is one core issue of ADB’s environmental policy. The ADB requires environmental assessment of all project loans, program loans, sector loans, sector development program loans, financial intermediation loans, and private sector investment operations. Environmental assessment is a process rather than a one-time report and includes necessary environmental analyses and environmental management planning that take place throughout the project cycle. 124. This EIA was carried out in accordance with the following ADB documents:

(i) Safeguard Policy Statement (SPS), June 2009, effective since January 2010; (ii) Operations Manual (OM) with relevant Bank Policies (BP), March 2010.

125. Other relevant international guidelines

(i) General IFC Health and Safety Guidelines (2007); (ii) IFC Environmental, Health, and Safety Guidelines for Thermal Power Plants,

December 2008; (iii) IFC Environmental, Health, and Safety Guidelines for Liquified Natural Gas

Facilities, April 2007 (iv) IFC Environmental, Health, and Safety Guidelines for Shipping, April 2007 (v) IFC Performance Standards and Guidance Notes (2012).

C. National Legal and Institutional Framework

a. National Legal Framework 126. The following list comprises project relevant Indonesian laws regarding environmental protection and management including:

(i) Law 2/2013: Acquisition of Land for Development in the Public Interest (ii) Law 32/2009: Environmental Protection and Management (iii) Law 22/2009: Traffic and Road – relevant reference for vehicle and road traffic

management (iv) Law 18/2008: Waste Management – general legislation and regulation

regarding waste management (v) Law 26/2007: Spatial Planning Law (vi) Law 13/2003: Workforce – relevant for workforce issues (vii) Law 7/2004: Water Resources – hydrological impact assessment within the

assessment area (viii) Law 5/1990: Conservation of Living Natural Resources and their Ecosystems. (ix) Law 19/ 2009: Ratification of Stockholm Conservation on Persistent Organic

Pollutants.

127. These laws are accompanied by various ministerial and provincial decrees and regulations, including:

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(i) Ministry of Land and Spatial Planning 6/2015: Technical Guidelines for Land Acquisition – Standard operating procedure to conduct land acquisition for public interest development;

(ii) Ministry of Health 492/MENKES/PER/VIV/2010: Qualification of Drinking Water Quality – drinking water parameters and measures to manage environmental impact to drinking water sources;

(iii) Ministry of Health Regulation 416/1990: Water Quality; (iv) Ministry of Public Works 14/PRT/M/2013: Standards and Guidelines for

procurement Construction Work and Consulting Services; (v) Ministry of Public Works 03/2013: Regarding Implementation of Infrastructure

and Waste Facility in Household Waste Management and Household-like Waste Management;

(vi) Ministry of Public Works 45/1990: Water Quality Control in Water Resources – relevant for water quality control and monitoring review.

128. Environmental protection and management ministerial decrees include:

(i) State Minister for the Environment Decree Number 13, year 1995, on Standard Quality of Emission of Stationary Source;

(ii) State Minister for Environment Decree Number 48, year 1996, on Noise Level Standard;

(iii) State Minister for the Environment Decree Number 49, year 1996, on standard of Vibration Level;

(iv) State Minister for the Environment Decree Number 45, year 1990, on standard Index of Air Pollutant;

(v) Ministry of Environment 15/2013: Measurement, Reporting and Verification of Climate Change Mitigation;

(vi) Ministry of Environment 7/2010: Competence Certification of AMDAL Preparation and Training Requirements for AMDAL Preparation;

(vii) Ministry of Environment 5/2008: AMDAL evaluator Working Guidelines – relevant reference for reviewing AMDAL document compliance;

(viii) Ministry of Environment 21/2008, Emission Standard for Stationary and/or Thermal Power Generation Activities;

(ix) Ministry of Environment Regulation 8/2009: Wastewater Quality;

129. Environmental protection and management government regulations include:

(i) Government Regulation 101/2013: Hazardous Waste Management; (ii) Government Regulation 81/2012: Household Waste Management and

Household-like Waste Management; (iii) Government Regulation 43/2008: Groundwater – groundwater management

and pollution control review; (iv) Government Regulation 26/2008: National Spatial Plan; (v) Government Regulation 16/2004: Land Use – relevant for land use and land

acquisition review; (vi) Government Regulation 41/1999: Air Pollution Control – air quality; (vii) Government Regulation 82/2001: Water Quality Management and (viii) Water Pollution Control – surface water quality; (ix) Government Regulation 7/1999: Flora Fauna Conservation – (x) biodiversity;

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(xi) Government regulation 18/ 1999, in conjunction to government Regulation 85/1995: Management of Dangerous and Poisonous Materials.

130. Presidential Decrees include:

(i) Presidential Decree 71/2012: Implementation of Land Acquisition for Development of the Public Interest Facility. Amended through 40/2014, 99/2014 and 30/2015;

(ii) Presidential Decree 15/2015: Establishment of Ministry of Public Works and Housing for 2014-19;

(iii) Presidential Decree 185/2014: Acceleration of Water and Sanitation provision; (iv) Presidential Decree 71/2012: National Greenhouse Gases Inventory; (v) Presidential Decree 61/2011: Greenhouse Gas Emission Reduction National

Action Plan.

b. Indonesian Law related to Environmental Impact Assessment 131. Law No 32 /2009 Regarding Environmental Protection and Management. 132. The purpose of this Law is to allow an environmentally sustainable development through means of an environmental planning policy and the rational exploitation, development, maintenance, restoration, supervision and control of the environment. 133. Requirements and procedures for obtaining an environmental license are set out in the Law. Particular attention shall be paid to the importance given by the Law to the community involvement in the environmental protection and management. 134. In Article 22 (1) it is stated that every business or activity having a substantial impact in the environment shall be mandatorily subject to an Environmental Impact Assessment (EIA) and Article 23 describes these activities. Article 34 explains that the activities which are not subject to a mandatory EIA shall prepare environmental management and monitoring efforts (UKL-UPL). Article 36 (1) states that EIA or UKL/UPL is a pre-requisite for an environmental license for all types of activities. 135. For any business or activity where an AMDAL is required, an RKL-RPL (Environmental Management Plan - Environmental Monitoring Plan) must also be provided. Indonesian Government Regulations related to Environmental Impact Assessment Indonesian Government Regulation No. 27/2012 regarding the Environmental License 136. An environmental license is defined as a license issued to a party engaged in any business activity which requires an AMDAL or UKL-UPL for protection and management of the environment. This is a prerequisite for a business license. In principle, the AMDAL is a study of the potential substantial impact of the proposed business activity on the environment, while the UKL-UPL covers monitoring and management efforts undertaken for business activities which are not likely to have a significant impact on the environment. 137. The required AMDAL and UKL–UPL assessments must be completed before an environmental license can be issued. In other words, any business activities which require an

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AMDAL or UKL-UPL also require an environmental license. Certain stated business activities are exempt from the AMDAL requirement. 138. The UKL-UPL is prepared at the planning stage of a business activity by completing the prescribed forms and submitting them to the relevant authority. Only one UKL – UPL is required for several different business activities if they are located in the same ecosystem. 139. The application for an environmental license must be submitted along with its supporting documents, such as the AMDAL or UKL–UPL, to the Minister of Environmental Affairs, Governor, or Mayor/Regent in line with their respective authorities. 140. Having obtained an environmental license, the holder must:

(i) comply with the terms and conditions of the environmental license; (ii) submit a report on the compliance with the terms and conditions of the

environmental license to the Minister, Governor, or Mayor/Regent every six months; and

(iii) provide guarantee funds for environmental recovery. (iv) Sanctions for failure to comply with the Government Regulation no 27/2012

may include written warnings, government action, the suspension and eventually revocation of the environmental license.

141. Article 42 (1) states that the environmental permit application shall be submitted in written form by the person in charge of the business and/or activity as the Proponent. Article 43 (1) states that the application must be accompanied by: (i) the AMDAL document or the UKL/UPL; (ii) Article association, and (iii) Company Profile and/or activities. Article 45 refers to community involvement. 142. Indonesian Government Regulation No. 60/2012 Regarding Procedures for Modification of Land Use and Functions of Forest Areas. 143. PP 60/2012 is specifically for plantation companies operating in production forest areas, and is applied to other forest activities including logging and mining companies. This regulation is concerned with the provision of land replacement by a borrow-to-use permit. Indonesian Minister Decrees related to Environmental Impact Assessment State Minister for the Environment Regulation No.05 of 2012 Minister Decree No.05/2012 regarding Activities for which an AMDAL is mandatory 144. This minister regulation provides guidance/direction of the preparation of the procedures for the environmental documentation. Article 4 explains that the business and/or activities undertaken: (i) within a protected area, and or (ii) directly adjacent to a protected area, have to prepare an AMDAL. 145. Attachment 1 from this regulation contains a list of the activities for which an AMDAL is mandatory. 146. The Environmental Documents comprise the following 3 documents, which have to be prepared depending on the impacts to be expected from the respective project:

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(i) AMDAL (Indonesian version of an Environmental Impact Assessment), which is an assessment report of the significant impacts expected by the company’s business and/or activities on the environment, and which is necessary for the process of decision making regarding the running of the business and/or activities.

(ii) Environmental Management Efforts and Environmental Monitoring Efforts Form (UKL-UPL Form), which pertains to the management and monitoring efforts by the company of its business and activities that have no significant impacts on the environment, and which is necessary for the process of decision making regarding the running of the business and/or business activities.

(iii) Statement of Environmental Management and Monitoring undertaking (Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup/SPPL), which is a statement regarding the company’s activities to monitor and manage the environmental impact of its business and/or activities which are exempted from the AMDAL or UKL-UPL requirement.

147. Depending on the project type, one of the first two documents is required for the submission of the application for the Environmental License. The SPPL is only for businesses and/or activities which are exempted from the AMDAL and UKL-UPL requirement. 148. Setting up the Terms of Reference is the initial stage of the assessment of the impacts of the business and/or activities on the environment, which is then further elaborated in the AMDAL. 149. The RKL-RPL sets forth the plans for the management of the environment and prevention of the negative impacts on the environment. 150. The Regulation No.16 of 2012 intensifies the environment assessment requirement but simplifies the composition of the AMDAL documents. 151. Section 4 explains that the EIA/AMDAL document shall consist of: (i) Terms of Reference (ii) Environmental Impact Analysis and (iii) RKL – RPL (management and monitoring plan). For UKL-UPL, Article 8 states that it must contain: a) the identity of the initiator; b) business plans and/or activities; c) environmental impacts that would occur, and environmental management and monitoring program; d) the number and type of license protection and environmental management which is needed; e) statement of the initiator committing to implement the provisions of the UKL-UPL form; f) bibliography; and g) attachments. 152. The planned project Kupang Peaker 2 is regarded as the extension of the then already existing facilities Timor 1 (CFPP), for which a full AMDAL must be conducted and for which an environmental permit must be given, which is assumed to be still valid, when PLN will apply for the license for Kupang Peaker 2 per. For an extension of an existing facility no full AMDAL is required. For the planned project an addendum to the existing AMDAL including an RKL-RPL has to be prepared. 153. At the time when this EIA had been prepared no environmental document had been prepared for the planned project Kupnag Peaker 2. 154. With the enactment of the Regulation, the following older regulations are revoked:

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(i) State Minister for the Environment Regulation No. 08 of 2006 on Guidelines for the Composition of AMDAL documents;

(ii) State Minister for the Environment Regulation No. 13 of 2010 on UKL-UPL and SPPL.

155. State Minister for the Environment Regulation No.17 of 2012 regarding Guidelines for Community Involvement in The Process of Environmental Impact Assessment and Environmental License 156. The Ministry of Environment has issued guidelines for the involvement of the public in the environmental impact assessment (AMDAL) process and in the issuance process of environmental licenses. 157. The Regulation explains why the public is included in the processes:

(i) the public gets information on business plans or activities that may have a significant impact on the environment;

(ii) the public can give suggestions, opinions or comments on the business plans or activities;

(iii) the public can be involved in the process of decision making in relation to the worthiness or unworthiness of business plans or activities;

(iv) the public can give suggestions, opinions and comments on the issuance process of environmental licenses.

158. The communities that are included in the AMDAL process are (i) the community which is suffering from the impact; (ii) the concerned community; and (iii) the community which is affected by any form of decision in the AMDAL process. 159. The affected community must be included in the assessment process of the AMDAL and of the other environmental documents (Environmental Management Plan – Environmental Monitoring Plan or RKL-RPL) through its appointed representative who will be a member of the AMDAL Appraisal Committee. 160. The rules and procedures for the public’s participation in the AMDAL process and for the involvement of the public in the issuance of environmental licenses are specified in Chapter II and Chapter III of the Regulation.

c. Head of Environmental Impact Management Agency (BAPEDAL) Decrees

(i) Head of BAPEDAL Decree 9/2000: AMDAL Preparation Guidelines for the Components of Public Health

(ii) Head of BAPEDAL Decree 8/2000: Community Involvement and Information Disclosure in the Process of Environmental Impact Assessment

(iii) Head of BAPEDAL Decree 124/12/1997: Guidelines for Reviewing Public Health Aspects on Environmental Impact Assessment

(iv) Head of BAPEDAL Decree 105/1997: Monitoring of Implementation of Environmental Management and Monitoring (RKL & RPL) – relevant as reference for reviewing the progress of environmental management and monitoring plan

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(v) Head of BAPEDAL Decree 56/1994: Guidelines to determine significance and scale of environmental impact – as the most relevant reference for reviewing important and significance impacts.

d. Other Relevant Requirements

(i) Relevant requirements with respect to workers’ health and safety include Law No.1-year 1970 on Workers’ Safety and Ministry of Workforce Decree No. Kep-51/MEN/1999 on Reference Standard on Activities in Working Area.

e. National Institutional Framework 161. The following table summarizes the various organizations relevant for environmental protection in Indonesia and indicates the capacity or capacity needs in order to strengthen tier environmental protection capacities.

ORGANISATION CAPACITY IN IMPLEMENTING NATIONAL LAWS AND ADB

REQUIREMENTS

National level

Ministry of Environment and Forestry

Has full capacity as regulator for environmental management.

Ministry of Mineral Resources and Energy

Has enough capacity. There is the Minister’s Expert Staff for Environmental and Spatial, and Sub Directorate of Electrification and Environmental Protection under Environmental and Technical Directorate.

Ministry of Maritime Affairs and Fisheries

Has enough capacity. There is Marine Biodiversity and Conservation Directorate with task on prevention and protection of conservation area and biodiversity, including management authority of CITES; Costal Utilization Directorate with function of pollution prevention and climate change adaptation.

In addition, there is section of Environmental Revitalization under sub directorate of Environmental Regulation.

Ministry of Agriculture

There is sub directorate of environment, water conservation and climate.

Provincial level

Provincial Environmental Agency

There is division of Environmental Impact Assessment and Environmental Planning Division.

Provincial Mineral Resource and Energy Service

Has no capacity: in East Nusa Tenggara Province, there is Environmental Protection Section which only under Mining Sector; there is no environmental management section under Energy Utilization and Electrical Sector. In East Kalimantan Province, there is Geology Environment and Ground Water Section under Mineral Resources and Geology.

Provincial Maritime Affairs and Fisheries Service

There is no section or division that relate to environmental management and monitoring.

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ORGANISATION CAPACITY IN IMPLEMENTING NATIONAL LAWS AND ADB

REQUIREMENTS

Provincial Agriculture Service

There is no section or division that relate to environmental management and monitoring.

Provincial Development Planning Agency

As coordinating agency among related organizations/institutions in provincial level.

District level

District Environmental Agency (DEA)

There is division of AMDAL & UKL/UPL

District Mineral Resource and Energy Service

Mostly there no section or division that relate to environmental management and monitoring.

District Maritime Affairs and Fisheries Service

Mostly there no section or division that relate to environmental management and monitoring.

District Agriculture Service

Mostly there no section or division that relate to environmental management and monitoring.

District Development Planning Agency

As coordinating agency among related organizations/institutions in district level.

D. International Guidelines and Standards

162. International Agreements. Indonesia has ratified several international conventions, including:

(i) Convention on Fishing and Conservation of Living Resources of the High Seas (Marine Life Conservation). Objectives: Solve the problem of preservation of biological resources in the high seas through international collaboration with the consideration that the use of modern technology for the exploitation of resources in excess will cause harm to these resources.

(ii) Convention on Biological Diversity, for parties to require the environmental assessment of their proposed projects that are likely to have significant adverse impacts on biological diversity with a view of avoiding or minimizing such impacts;

(iii) Convention on Wetlands of International Importance Especially as Waterfowl Habitat (1972). Indonesia has International agreement to make controlling the continuous encroachment of wetland in the present and future, to recognize the basic ecological functions of wetlands follows the economic, cultural, scientific, and recreation.

(iv) Convention on the Prevention of Marine Pollution by Dumping Wastes and Other Matter (1972). Indonesia has international agreement to control of marine pollution due to accumulation of waste and other materials and to encourage regional agreements to complement the Convention; London Convention come into effect in 1996.

(v) Vienna Convention for the Protection of the Ozone Layer, in 1998, and subsequent protocol and amendments, for parties to take appropriate measures to protect human health and the environment against adverse impacts likely to arise from human activities that will/likely modify the ozone layer.

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(vi) Protocol of 1978 Relating to the International Convention for the Prevention of Pollution from Ships, 1973 (MARPOL). Indonesia ratified international agreement to conserve the marine environment / marine pollution by banning oil and other hazardous substances and disposal of hazardous substances to suppress levels that do inadvertently (e.g. due to accidents).

(vii) Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989). Indonesia has ratified international agreement to reduce cross-country movement of waste in accordance with the minimum limit of the Convention in order to create an environmentally friendly waste management and efficient; reducing toxicity of waste generated and to ensure that environmental management is the basis for resource development.

(viii) United Nations Framework Convention on Climate Change (1992). Indonesia has ratified international agreement to achieve stabilization of greenhouse gas concentrations in the atmosphere as low as possible in order to prevent dangerous anthropogenic interference with the climate.

(ix) Kyoto Protocol to the United Nations Framework Convention on Climate Change. Indonesia has ratified international agreement to reduce greenhouse gas emissions by promoting national programs in developed countries aimed at reducing greenhouse gas emissions and determine the percentage of reduction targets for developed countries.

(x) Indonesia ratified the Paris Agreement within the United Nations Framework Convention on Climate Change (UNFCCC) dealing with greenhouse gases emissions mitigation, adaptation and finance in October 2016.

E. Gaps between national requirements and international standards

163. The legal framework of the Republic of Indonesia does essentially correspond with the international regulations and safeguards. Gaps however do exist in enforcement of the regulations. There is still a considerable lack of institutional capacities for implementation, monitoring and evaluation. 164. In general, the ADB’s SPS requirements regarding environmental assessment and Indonesian national legal requirements address the same topics. However, ADB’s SPS requirements regarding environmental assessment are more detailed than Indonesian national legal requirements, for example in the following areas:

• Identifying gender impacts and impacts on vulnerable groups within Identification of socioeconomic impacts

• Considering of the no-project alternative

• The legal framework for EMP does not appear to require detailed information on proposed mitigation measures beyond references to “form” and “location”

• The legal framework requires monitoring plans but does not appear to specify reporting requirements

• The legal framework references the “environmental management institution” as a component of EMP but does not appear to require a description of institutional or organizational arrangements.

• The legal framework does not appear require the EMP to specify proposed capacity development and training measures.

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• The legal framework does not appear to require the EMP to specify its cost estimates.

• The legal framework does not appear require the EMP to address significant harm to third parties nor does it require application of the polluter pays principle

• The legal framework explicitly requires that NGOs be included in the consultation process

• There are no requirements regarding corrective actions or disclosure of monitoring reports in the legal framework.

165. The Indonesian legal framework does not directly define the areas of “critical habitat” apart from various categories of protected areas. However, the prohibitions applicable to protected areas reference “environmental function” unless otherwise defined, can be presumed to include habitat protection. The biodiversity guidelines for effective implementation of legislation are vague with much left to discretion. This appears to be a gap in legislation and capacity, and the Project EIA/IEE will have to follow ADB SPS 2009 and IFC Policies and Guidelines to address this gap. 166. The Indonesian legal framework does not generally prohibit significant conversion or degradation of natural habitat outside of formally designated protected areas, but makes this subject to alternatives assessment, cost-benefit analysis or mitigation requirements. 167. The use of a precautionary approach to develop and manage natural resources is not explicitly mentioned in the Indonesian legal framework.

ADB POLICY PRINCIPLE

GOI LEGAL EQUIVALENCE

DOES NOT COVER

Screening Process Fully covered --

Environmental Assessment

Fully covered --

Alternatives Fully covered --

Offset Adverse Impacts Partially covered Capacity development and training, cost estimates

Consultation Partially covered Ensuring women’s participation and grievance redress mechanism

Disclose EMP Partially covered Public disclosure of draft AMDAL and EMP

Implement EMP & Monitor

Partially covered Public disclosure of EMP monitoring results

Critical Habitats Partially covered EMP for impact monitoring and Committee releasing recommendations to mitigate impacts

Pollution Prevention Partially covered IFC standards are more strict than national standards

Health & Safety Fully covered --

Cultural Resources Partially covered Provisions for ‘chance finds’

168. Summing up these considerations it appears that legal provisions of Indonesia’s safeguards country system are general in compliance with the requirements of ADB SPS 2009. The national requirements are fully or partially equivalent to the policy principles and key elements

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of ADB SPS 2009. However, the existing practice of implementation and enforcement of these provisions needs a substantial support.

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DESCRIPTION OF THE PROJECT

A. Project setting

a. Project location 169. The project site for the planned Kupang Peaker 2 will be located south-west of Panaf hamlet (Dusun Panaf), which is part of Lifuleo village (Desa Lifuleo), in the District of West Kupang, Kupang Regency, Nusa Tenggara Timur Province, at the most western tip of Timor island.

Figure 1: Location of the future Power Plants Complex, including

Kupang Peaker 2 (source of the topographic maps: URL 1 and URL 2)

170. The project area is presently a greenfield, however, a Power Plant Complex is planned there which will comprise:

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(i) Timor 1 Coal Fired Steam Power Plant - 100 MW (ii) Kupang Peaker 1 Gas Fired Power Plant - 40 MW (iii) Kupang Peaker 2 Gas Fired Power Plant - 50 MW (the Project)

171. The Coal Fired Steam Power Plant Timor 1 and the Kupang Peaker 1 will be built before the construction activities of Kupang Peaker 2 commence.

b. Access to the project site 172. The nearest Airport from the project site is El Tari Airport. There are numerous flights from Soekarno-Hatta International Airport in Jakarta to El Tari Airport in Kupang with a flight time of around three hours and thirty minutes. 173. From El Tari Airport, the project site can be reached by car in about 60 minutes and the distance is about 40 km. A two-lane public asphalt road in good condition leads from the airport to the beginning of the access road to the project site. 174. This access road to the project site is about 6 km long, unpaved, and most sections are in poor condition. After the commencement of construction for Kupang Peaker 1 the road further deteriorated. This aspect was brought to the attention of PLN during the May 2018 site visit by the consultant. Issues related to dust and risk prone road section along Archina beach were also highlights. 175. Following this observation, PLN commenced the paving of 4 km long stretch from the site passing along the Archina beach and ending just before the small settlement on the way to starting point of access road. It is expected that after completion of this work (more than half complete at the time of writing this EIA) the dust problem due to transportation of construction material will be resolved in this four-kilometer-long stretch6. No road upgrading activities are necessary for Kupang Peaker 2 provided the last 2 km long stretch of the access road is also paved during the construction of Kupang Peaker 1. In the framework of public consultation, PLN committed to pave the access road to the Project and will collaborate with Dinas PU Bina Marga and village heads to carry out road improvement up to the 2 km as part of Peaker 1 development. 176. The project site for Kupang 2 Peaker is part of a planned Power Plant Complex and will directly border the planned Kupang Peaker 1 site and the 100 MW Coal Fired (PLTU) Steam Power Plant Timor 1 in the North.

6 The road after completion of paving will require prominent display of road signage, speed control and traffic supervision. The remaining unpaved road section will also require periodic maintenance and regular sprinkling of water, especially in the section passing through the settlement. It is recommended that for effectively controlling dust in the remaining section, the entire 6 km long stretch of the access road be paved.

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Figure 2: Location of the planned project site Kupang Peaker 2 (marked

in red), bordering the planned project sites of Kupang Peaker 1 and the coal fired PLTU power plant Timor 1 in the North.

177. Kupang Peaker 2 will be located south-east of the planned new 40 MW Kupang Peaker 1 (commercial operation planned for 2019) and broadly adjacent to the planned new PLTU-Timor 1 coal fired Power Plant (commercial operation planned for 2021). Kupang Peaker 2 is planned to become operational in 2022. According to PLN’s planning schedules, both projects neighbouring Timor 1 and Kupang Peaker 1 will be completed before the construction activities for Kupang Peaker 2 begin and will be constructed in any case, i.e. not related to the decision if the Kupang Peaker 2 facility will be constructed or not. 178. As Kupang Peaker 2 will be built in the vicinity of the planned Kupang Peaker 1 and the coal fired Power Plant, the emissions of these plants must be considered for the assessment of cumulative impacts of the power plant complex in the area as shown in Appendix 1 to this report. There may also be a need to consider Bolok power plant located about 13km NNE of the Project for its influence on project airshed7. 179. The following layout shows the whole planned power plant complex comprising the planned coal fired Power Plant Timor 1, Kupang Peaker 1, and Kupang Peaker 2.

7 Air quality modelling for cumulative impact assessment of the Project includes the impacts of emissions from Bolok Power Plant.

Access Road to the Kupang Power plant complex

Panaf hamlet

Kupang Peaker 1

PLTU Timor 1

Kupang Peaker 2

2 2 2

Kupang

Peaker 1

Sea Weed Beach

Mangrove Beach

Mangrove Forest

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Figure 3: Location of the planned project site Kupang 2 (marked in orange), bordering the Kupang 1 Peaker site and the PLTU Timor 1 in the North.

c. The project site 180. The total area for the whole power plant complex acquired by PLN (PLTU Timor, Kupang Peaker 1, and Kupang Peaker 2) is located west of Panaf village and comprises 52 ha. 181. Within these 52 ha the site for Kupang Peaker 2 occupies a 5 hectares wide area, 400 m south-west of Panaf village. Within the power plant complex only Kupang Peaker 2 will be financed by ADB and this EIA therefore focuses on this site and the selected significant impacts outside the project site during construction and operation of the power plant. 182. The familiarization of customary communities with respect to the project plan was conducted by PLN on 28th – 29th September 2016. The land acquisition planning document was prepared by PLN and submitted to the Regent of Kupang. 183. The land acquisition process was completed and the DDR finalized including consultations at the time this EIA was completed. The delimitation of the project site Kupang 2 and the layout plan was available.

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Figure 4: Basic design layout of the Kupang 1 PP and Kupang 2 PP

(orange)

184. The layout of Kupang Peaker 1 was used for this EIA as no specific layout plan was available at the time when this EIA Report was compiled. The technology for both plants is the same. Kupang Peaker 2 (50 MW) will have 2 more or equal or higher generation capacity gas engines than Kupang Peaker 1 with 40 MW total capacity. This EIA has considered four gas engines of 12.5 MW capacity for assessment of impacts.

B. Technical Description

a. Planned Technical Infrastructure of the PLTU Timor 1 and Kupang Peaker 1 site 185. All technical information for these plants was taken from the Feasibility Studies (May 2016) provided by PLN. The Timor 1 study contains some technical information (general layout and technical characteristics of the plant plan, e.g. coal specifications, amount of coal consumed, etc.). However, other data needed for the air dispersion and the noise emission calculations had to be reasonably assumed and estimated. The planning of Kupang Peaker 1 and the respective Feasibility Study was also made available. A short description of the projects and their layout is given below. Timor 1 Coal Fired Steam Power Plant - 100 MW

186. The Timor 1 coal fired PP will be located in the same complex as the Kupang Peaker 1 and Kupang Peaker 2 plants. 187. The environmentally most relevant elements of this power plant are the coal loading (jetty), coal transport (belt conveyors), coal storage (coal yard), the power plant itself, the ash yard, the marine water intake and the wastewater disposal infrastructure. As none of the infrastructure facilities to be built for Timor 1 are required by the Project, cumulative impacts of Timor 1 (together

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with Kupang Peaker 1) for noise and air quality are the only relevant impacts for EIA of Kupang Peaker 2. 188. According to the available feasibility study (May 2016), the plant will operate with two stacks, each one associated with one 50 MW boiler. The location of the stacks is shown in the layout plan below. This information along with expected noise and air emissions from the plant has been used in assessment of cumulative impacts. Table 7 provides the stack characteristics and emissions from Timor 1 power plant (along with assumptions used to derive some of the critical data) considered for cumulative assessment for air quality.

Table 7: Other characteristics of the stacks and the flue gas from the Timor 1 PP

Parameter Value Source

Number of stacks 2 Based on available data for Timor 1

Height of stacks [m] 80 Based on FS for Timor 1 power plant

Diameter of stacks (inner) [m] 2.3 Based on a Combustion Calculation

Flue gas exit temperature [K] 423.15 Based on available technology

Flue gas exit velocity [m/s] 20

Actual* flue gas exit flow [m3/s] per stack

86.3 Based on a Combustion Calculation

Emission rate CO [g/s] per stack 7.0 Based on available technology

Emission rate SO2 [g/s] per stack 61.0 Assuming fulfillment of national ELV

Emission rate NO2 [g/s] per stack 61.0

Emission rate PM10 [g/s] per stack 3.1 Based on an ESP installation**

Emission rate TSP [g/s] per stack 3.5

* Actual means at the actual conditions of temperature, pressure, moisture and O2 content of the flue gas | ** ESP = Electrostatic Precipitator

Kupang 1 Gas Fired Power Plant - 40 MW 189. The Power Plant will operate 2 groups of engines, each one with 2 engines and associated two stacks. The location of the four stacks is shown in the layout plan below.

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Figure 5: Basic design layout of the Power Plan Complex comprising Timor 1 CFPP, Kupang Peaker 1 and Kupang 2 PP.

190. The stack characteristics and emissions from Kupang Peaker 1 power plant (along with assumptions used to derive some of the critical data) considered for cumulative assessment for air quality are presented in Table 8.

Table 8: Characteristics of the stacks and the flue gas from the Kupang 1 Peaker PP

Parameter Value for HSD

Source

Number of stacks 4 Based on available data for Kupang Peaker 1

Height of stacks [m] 27 Based on Bid Document for Kupang Peaker 1

Diameter of stacks (inner) [m] 1.62 Based on a Combustion Calculation

Flue gas exit temperature [K] 640 Based on available technology

Flue gas exit velocity [m/s] 20

Actual* flue gas exit flow [m3/s] per stack

41.4 Based on a Combustion Calculation

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* Actual means at the actual conditions of temperature, pressure, moisture and O2 content of the flue gas

b. Planned Technical Infrastructure for Kupang 2 191. As no specific technical description has been available for the planned project, it was decided during the workshop in Jakarta in March 2017 that the information associated with the Kupang Peaker 1 may reasonably be used as a basis to carry out the assessment of Kupang Peaker 2, as both projects are using the same technology and just differ in their power output. The technical information regarding Kupang Peaker 2 as described below has therefore been derived from the Kupang Peaker 1 Feasibility Study. 192. Based on the documents available for Kupang 1, Kupang 2 will technically be a standard project, applying state of the art gas engine power plant technology and state of the art balance of plant systems. Major technical challenges are not expected. For assessment of noise impacts it was necessary to understand the current practice of noise control in design of gas engines. For this purpose, recently commission Bontang power plant (Kalimanthan) with installed capacity of 36MW of new duel fuel gas engines was visited and noise control measures inspected (May 2018). While assessing the noise impacts for the Project, it is considered that similar noise control measures will be adopted in Kupang Peaker 1 and Kupang Peaker 2 power plants. 193. The Kupang Peaker 2 will have dual fuel firing capability with the primary fuel being gas (delivered as LNG). The LNG supplier will operate an LNG re-gasification and storage facility at the site and supply the terminal via medium capacity size LNG tankers. The back-up fuel will be HSD and will be provided via road tanker and stored at the site. Once the infrastructure to receive and use LNG is constructed, LNG supply will only be disrupted if the weather is too rough for LNG vessel to sail to site. Such disruption may delay the LNG delivery upto one week during the which the plant will run of HSD. Such event is not expected to occur more than twice in a calender year. 194. The Kupang Peaker 2 will be operated in peak mode supplying electric power to the local grid, primarily during times of high demand. This generally occurs daily over a 5-hour period between 17:00 and 22:00. 195. The Kupang Peaker 2 plant will consist of 2 groups of gas engines, with each group consisting of 2 to 6 units. The plant will use one engine type only. A single gas engine may thus have a capacity of minimum 4.1 MW and maximum 12.5 MW. The following configuration is assumed:

I. 2 groups of gas engines;

Emission rate CO [g/s] per stack 0.60 Based on available technology

Emission rate SO2 [g/s] per stack 3.32 Based on combustion calculation (0.25% S)

Emission rate NO2 [g/s] per stack 9.31 Assuming fulfillment of national ELV

Emission rate PM10 [g/s] per stack 1.01

Emission rate TSP [g/s] per stack 1.12

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(i) Each group will have 2 gas engines (total of 4 engines); (ii) Each group will have a capacity of 25 MW; (iii) Each engine will have a capacity of 12.5 MW.

II. 4 stacks8 (one per engine);

196. The stack characteristics and emissions from Kupang Peaker 2 power plant (along with assumptions used to derive some of the critical data) considered for cumulative assessment for air quality are presented in Table 9.

Table 9: Characteristics of the stacks and the flue gas from the Kupang Peaker 2

Parameter Value for HSD

Source

Number of stacks 4 Based on available data for Kupang Peaker 1 *

Height of stacks [m] 45 Based on FS for Kupang Peaker 1

Diameter of stacks (inner) [m] 1.82 Based on a Combustion Calculation

Flue gas exit temperature [K]

Flue gas exit velocity [m/s]

640

20

Based on available technology

Actual* flue gas exit flow [m3/s] per stack 51.8 Based on a Combustion Calculation

Emission rate CO [g/s] per stack 0.75 Based on available Technology

Emission rate SO2 [g/s] per stack 3.94 Based on combustion calculation (0.25% S)

Emission rate NO2 [g/s] per stack 11.64 Assuming fulfillment of national ELVs

Emission rate PM10 [g/s] per stack Emission rate TSP [g/s] per stack

1.26

1.40

Assuming fulfillment of national ELVs

* Actual means at the actual conditions of temperature, pressure, moisture and O2 content of the flue gas | ** It is assumed that the same technology and configuration of Kupang Peaker 1 will be adopted for Kupang Peaker 2

197. A new HSD storage facility will be established on the site of the Kupang Peaker 2. The EPC contractor will be responsible for the design of the HSD storage facility including complete instrumentation and control systems. The storage system will consist of an HSD storage for 7 days operation, and one day tank for 1-day operation. The tanks will be designed in accordance with AP 650 and will include reinforced concrete foundation supported by piles, reinforced concrete dike wall, oil separator. Oil leakage from the HSD tank to the tank dike will be drained

8 The exact number of stacks is not known at this stage. The air quality dispersion study assumes 1 stack with 4 pipes wah connecting to a gas engine. From the point of view of modelling Kupang Peaker 2 is assumed to act as one-point source.

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via an oil separator. The tanks will be equipped with at least 3 fire detecting devices, with alarm to be transmitted to the fire protection panel in the central control room. 198. Clean water for the needs of workers (bathing ad washing) and for construction will be procured from outside with water tank container. From water tanker container, water will be pumped to the reservoir tower and from the reservoir tower the water will be channelled by gravity to the requiring place. Water for drinking will be imported from Kupang in the form of gallons containing refill water. The water needs for the construction of Kupang Peaker 2 is 20.6 m3/day with details as seen in Table 10.

Table 10: Clean water need plant at construction stage

DESCRIPTION L/UNIT/

PERSON

TOTAL PEOPLE/

UNIT

UNIT

L/DAY WASTE

Workers 100 146 14,600 11,680

Foundry - 2,000 2,000 0

Ground Spraying

2,000 2,000 0

Transportation Washing 200 10 2,000 1,800

Total

20,600 13,480

199. From Table 10, it is observed that wastewater from the usage of 20.6m3/day water is about 13.480 L or 13.48 m3/day, with details of wastewater from workers (washing and bathing) as much as 11,680 L/day, and from washing vehicles as much as 1,800 L/day. The EPC contractor will be required to design a WWTP that is able to comply with effluent quality standards. It is anticipated that wastewater from workers will pass through a grey water treatment system and stored at site for use in a pond/lined pit for re-use for dust suppression and landscaping. When not required the water will overflow with a gravity fed rock filter to drainage line leading to sea. The wastewater for washing of vehicles will pass through an oil separator before joining the greywater stream. Sewage during the construction (<5 m3/d) will pass through a septic tank and subsurface constructed wetland. The effluent from the wetland will join the grey water treatment effluents pond and will be discharged into sea only when not required for dust suppression or landscaping purpose. It will be ensured that all effluent discharge meet the IFC EHS guidelines for treated sewage discharge9. 200. During the operation phase, the water requirement for the plant is estimated at 30m3/day. The water for operation phase will be sourced from sea. Prior to use, the raw sea water will be processed in Water Treatment Plant (WTP), with RO (Reverse Osmosis) system. The desalinated water will be stored in raw water tanks made of carbon steel. The tank will store 90 m3 of raw water for 3 days of operation. 201. Table 10 provides the breakup for use of water during the operation phase. It is observed that the use of 30m3/day water in plant operation, about 4 m3/day of wastewater will be generated.

9 pH – 6-9, BOD – 30 mg/l, COD – 125 mg/l, Total Nitrogen – 10 mg/l, Total phosphorus – 2 mg/l, Oil and grease – 10 mg/l, Total Suspended solids – 50 mg/l, Total coliform bacteria – 400 MPN/100 ml

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202. The plant operational requirement consists of water for rinsing air filter and as cooling water. For the separator filter, it is estimated to reach 1,500 L / day. While refrigerant is only required as an additional make-up of approximately 250 L/day/machine unit. Further, because of the number of generating machines are 4 units then this water requirement is amounted to 5 x 250 L /day=1,000 L /day. Based on the description above, the clean water estimation for Kupang Peaker 2 Gas Engine Power Plant (40 MW) operation, is listed in Table 11.

Table 11: Water use and wastewater generation during operation phase

NO NEEDS LITRE/DAY WASTE (L/Day)

1. For employees 3,000 2,400

2. Garden 25,000 0

3. Plant operation (Makeup) 1,000 0

4. Process in Separator 1,500 1,500

TOTAL 30,000 3,900

203. To treat the wastewater during operation phase, a wastewater treatment plant (WWTP) of treatment capacity 5 m3/day will be built to treat construction phase sewage. The EPC contractor will be required to design the wastewater treatment facility and demonstrate as part of its DED that the facility can comply with national effluent quality standards. 204. Based on the Kupang 1 Feasibility Study, the general design of the fire protection facilities at the Kupang 2 PP considers that the basic operating policy for the power plant will have the minimum of personnel supervision for the gas engine. All fire protection installations will need to comply with the requirements of the codes of practice of the National Fire Protection Association (NFPA) especially NFPA 850, “Recommended Practice for Fire Protection for Electric Generating Plants and High Voltage Direct Current Converter Stations”. Fire protection system will include Fire Pumps, CO2 System, Hydrant System, Portable Equipment, Water spray system, Automatic sprinklers, Foam System, Automatic FM-200 Deluge system, Fire Detection System and Fire Fighting Control System.

Other facilities 205. The Kupang Peaker 2 will also include other buildings and facilities, most importantly:

• Fully insulated and air-conditioned central control room;

• An HSD generator building including fuel oil tanks (see above);

• Workshop and warehouse;

• Waste storage facility, including for hazardous waste;

• A central laboratory, which will be equipped with laboratory facilities to conduct water and wastewater analysis, gas fuel analysis, lubricating and insulating oil analysis, exhaust gas analysis;

• Automatic fire protection, gas detection and alarm system;

• Continuous exhaust gas monitoring system, noise monitoring system.

• Guard house, gates.

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206. The worker camp for Kupang Peaker 2 will be located within the fenced project site. Excavated material will be stored and used to the extent possible on site. Excavated material that is not suitable as fill material will be hauled and transport to and disposed of into a spoil area off the Project Site. The site shall be proposed by the EPC contractor as part of its DED, subject to approval of local environmental protection authorities. Solid waste generated during construction will be collected, stored on site in appropriate storage facilities, and transported off site to approved disposal facilities. No on-site landfilling will be allowed. This is specified in the draft BD for the EPC contract. Hazardous waste during construction will be collected and stored separately on site in approved facilities and will be removed from the site to approved hazardous waste disposal facilities by a license waste transportation company. Material Safety Data Sheets (MSDS) will be used to identify chemicals and other hazardous substances and to warn workers from hazards.

c. Project Layout

207. The proposed civil works are based on the overall plant layout. The new plant will be built at the southernmost corner of the planned power plant complex. The new project and all its new project components will be located within the fenced area shown in Figure

6 below.

Figure 6: Layout plan of the planned project site Kupang 2 (marked in Red), bordering the planned

Kupang 1 Peaker site in the North.

C. Project associated facilities

208. For the Kupang Peaker 2, the following project-related infrastructure is required:

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i. Access road

ii. Jetty (LNG supply) iii. LNG re-gasification and storage iv. Power evacuation line (interconnection to the Timor transmission system)

209. Access road: Out of the total length of 6 km, 4 km of the access road nearest to the project have already been paved for ongoing construction of Kupang Peaker 1. The consultant has inspected the access road for construction phase impacts in May 2018 and has recommended measures for dust and speed control, and road safety necessary to meet ADB environment, health and safety requirements. In the July 2018 site visit, it was confirmed that PLN has taken actions on each recommendation. These issues were further discussed during stakeholder consultations (July 2018) and based on community feedback, measures for further improvement of transport related impacts due to construction of Kupang Peaker 1 are being implemented by PLN. The upgraded access road therefore will already exist by the time construction works commence for the Kupang Peaker 2. The then already existing access road to the power plant site (Kupang Peaker 1 and PLTU-Timor 1) will then be used for the access to the Kupang Peaker 2 site. Therefore, in the context of the ADB SPS 2009, the access road is not considered as an associated facility of the project Kupang Peaker 2. 210. The LNG jetty will be constructed for Kupang Peaker 1. The construction and operation will be done under a Built / Operate / Transfer (BOT) scheme. The jetty is being constructed as part of Kupang Peaker 1 project. No upgrading of the jetty is anticipated to be required to accommodate Kupang Peaker 2. Therefore, the LNG jetty is not considered as an associated facility of Kupang Peaker 2. As a proactive measure, the EIA though assesses the key impacts due to jetty construction, especially on coral reef and cetaceans, and recommends mitigation measures that PLN will implement as a part of Kupang Peaker 1 project. 211. The LNG re-gasification and storage facility is being constructed for Kupang Peaker 1. No upgrading of the LNG re-gasification and storage facility is anticipated to be required to accommodate Kupang Peaker 2. Therefore, the LNG re-gasification and storage is not considered as an associated facility of the project Kupang Peaker 2. 212. Similar to the LNG jetty, the electrical interconnection to the transmission system will be constructed ahead of Kupang Peaker 2 to permit evacuation of the power from the power plant sites Kupang Peaker 1 and PLTU-Timor. It will already exist at the time when the construction activities for Kupang Peaker 2 begin and will be constructed irrespective of the construction of Kupang Peaker 2. Therefore, the electrical transmission system is not considered as an associated facility of the project Kupang Peaker 2. 213. The following table summarizes the environmentally relevant project associated facilities and their present status.

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Table 12: Existing facilities and their Status

Project component

Kupang Peaker 2

Access road existing* and upgraded (shared with other PPs)

Jetty (LNG and Diesel supply) existing* (shared with Kupang Peaker 1)

LNG re-gasification and storage existing* (shared with Kupang Peaker 1)

Power evacuation line existing* (shared with other PPs)

existing* - With the exception of access road that is being paved, this infrastructure is presently not yet existing however it will be existing at the time when the construction activities for Kupang Peaker 2 commence.

D. Assessment of Project Alternatives

214. The location of the project site Kupang Peaker 2 was determined by PLN and the delimitation of the project site was derived from the project layout plan provided by PLN. No other project locations were considered. 215. At the time when the EIA process for this project was conducted, only a layout plan of the project was available. No site or project specific documents were made available due to the fact that this project so far has only been listed in the RUPTL (the operation shall not begin before 2022). 216. As the planned Kupang Peaker 2 will be technically very similar to Kupang Peaker 1, the Feasibility Study as well as the Draft UKL-UPL were used as main data sources for the planned project. In case there was more than one technical possibility, worst case scenarios were assumed for impact forecast and assessment, following the standards of international financing agencies. 217. Regarding gaseous emissions, the air quality modeling was done for worst case scenario where it was assumed that all power plants will meet the national emissions standards (the actual emission control is likely to result in emissions lower than the national emission limits) and, where Kupang Peaker 2 will run on a continuous basis with HSD for six hours during the evening peak demand hours (instead of planned 5 hours from 5 pm to 10 pm). The same was assumed for the operating hours of neighboring plant Kupang Peaker 1. Timor 1 was assumed to run continuously with coal. 218. The operation of Kupang Peaker 1 and Kupang Peaker 2 using HSD though is contrary to the intentions and the economic incentives of PLN. It is therefore highly likely that the Peaker plants will be run on gas being provided through the LNG infrastructure being developed. Plant operations using LNG therefore is the more realistic mode of operation form the plant. However, in an initial stage the facilities are likely to be operating on HSD. As a result, from air quality impact assessment the diesel operations have been considered. It is noteworthy that HSD operations give rise to higher power plant emissions and therefore plant operation by HSD in a conservative assumption.

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219. The planned Kupang Peaker 2 project is just one piece in PLNs energy plan in order to achieve a sufficient and reliable energy supply on Timor Island. Without this project, interruptions of the energy supply will continue. 220. Since Kupang Peaker 2 is the third plant of a power complex, is a small plant and will be operated on gas, the most environmentally friendly fuel option for a Peaker plant due to low air emissions compared to any other fuel option, besides noise it does not have any significant impact that will add to the impacts of earlier planned power plants – Timor 1 and Kupang Peaker 1. On this background the additional impacts resulting from the planned Kupang Peaker 2, besides temporary construction phase impacts, are almost negligible compared to the then existing and ongoing impacts from the operation of the then existing power plant complex. 221. The Sawu Sea and surroundings, including Kupang Regency, have been officially designated as a national marine reserve. The National Marine Reserve of Sawu Sea is classified as category II of IUCN protected areas categories system, thus is considered a critical habitat according to ADB SPS 2009. Category II areas comprise large natural or near natural areas set aside to protect large-scale ecological processes, along with the complement of species and ecosystems characteristic of the area, which also provide a foundation for environmentally and culturally compatible spiritual, scientific, educational, recreational and visitor opportunities. The project though is located along the utilization zone of Sawu Sea Marine National Park and as explained in later sections, the Project has negligible additional impacts (due to more frequent movement of LNG vessels) on Sawu Sea considering that Timor 1 is already planned and Kupang Peaker 1 power plant is under construction. 218. With respect to analysis of alternatives for such a small Peaker plant gas firing mode is most environmentally friendly and cost effective. The site does not have potential for commercial exploitation of wind energy. Solar energy without large battery storage cannot play the role of peaking stations besides it needs large land area. Use of planned transmission system was one of key economic reason to select the present site.

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DESCRIPTION OF THE ENVIRONMENT

A. Physical environment

222. The environmental components of the physical environment considered in this EIA are topography, geology and soils, seismicity, water, climate, air, and noise.

a. Topography 223. The planned Kupang 2 Peaker site has a general south-west inclination of around 2% and is located at a height between 5 to 10 meters above sea level. Large parts of the project site have a quite plain topography with fairly flat terrain. Those parts are mostly used for extensive, rain-fed agriculture. Steeper parts are covered with secondary bushland.

b. Geology and Soil 224. District. Generally, the geological conditions in Kupang District are mixed conditions dominated by Noele Formation, Bobonaro complex and Batuputih Formation with little formation of Ofu and Alluvium in coastal areas in the southern part of Kupang District. Whereas in the middle to the north is dominated by Bobonaro complex with little Batuputih Formation, while in the east and west coastal areas are dominated by Mutis complex, Limestone Formation and little bit of Alluvium.

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Figure 7: Geology Map of Kupang District

225. The type of soil in Kupang District consists of lithosol, alluvial, sandy clay, and soil mixture of rocks. The soil mixture of rocks contains of several types of minerals i.e. (1) limestone; (2) Poral sand; (3) marble; (4) clay; (5) sandstone; (6) terracotta; (7) ornamental stones; (8) gold elements; (9) silver elements; (10) the elements copper; and (11) the manganese elements. Litosol is suitable for planting of crops that are resistant to heat, whereas alluvial soils are planted with perennial plants and seasonal crops. Sandy clay is usually found in coastal areas and estuaries, while large areas on hills and hillsides are only covered by shallow soils on base rocks. 226. Project site. Most of the project area is covered with only up to a few cm of laterite soil. In some places within the project site and especially along the coastline volcanic base rock is directly outcropping from the surface without any soil cover, as shown in Error! Reference source not found. below. The stones in the area are of volcanic origin. These geological conditions may cause difficulties during construction (levelling, excavations). No blasting will be used for construction. Only directly along the coastline limestones were found during the site visit originating obviously from coral reefs offshore the coastline. 227. A detailed soil investigation will be conducted by the successful bidder (EPC contract) prior to civil works. Soil investigations will include sampling and coring, standard penetration test, physical property test (moisture content, specific gravity, density and unit weight, chemical analysis of soil and salinity content of groundwater), mechanical property test, among others. Boring holes to a depth of at 50m will be performed.

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Figure 8: Project site with very shallow soil and outcropping volcanic

base rock in numerous places

c. Seismicity 228. According to the earthquake risk map shown in Error! Reference source not found. below, Timor Island is located at the northern edge of the Australian Plate, near the border to the Sunda plate in a medium earthquake risk zone with a peak ground acceleration of up to 1.6 m/s2.

Figure 9: Earthquake risk, based on recordings from 1900 - 2010

Source: Seismicity of the Earth 1900-2010, New Guinea and Vicinity, Seismic Hazard Map of Indonesia, Benz, Harley M. et al., 2011

229. According to the earthquake events shown in Error! Reference source not found.Figure 10 below, the seismicity recordings show that there were numerous earthquake events in western Timor. These events were relatively shallow with a depth of up to 69 km and a magnitude of up to 6.4 on the Richter Scale.

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230. The EPC contractor, as basis for the DED, will be required to conduct a comprehensive, site-specific seismic hazard study including liquefaction study. This requirement will be defined in the BD for the EPC contract.

Figure 10: Earthquake events 1900 – 2010

Source: Seismicity of the Earth 1900-2010, New Guinea and Vicinity, Seismic Hazard Map of Indonesia, Benz, Harley M. et al., 2011

d. Surface water 231. District. Annual rainfall average in Kupang District ranges between 100 and 800 mm/year. The region with rainfall < 300 mm/year is located in the western part of the Sulamu, Fatuleu, and South Amfoang sub districts, as well as the western and northern parts of the North Amfoang; including the eastern part of the East Kupang, Semau and South Semau sub districts. The heaviest rainfall of the entire territory occurred in the Amarasi sub district, partly of East Kupang and the western part of the Sulamu and Takari sub districts, in the central part of the Fatuleu sub district and the eastern part of South Amfoang sub district. 232. Most of the surface water flows in the Kupang District are ephemeral and depend on rain events. However, there are some permanent rivers that carry water throughout the year i.e. Oesao River in East Kupang sub district, Manikin River in Central Kupang sub district, river of Termanu, Kapali and Metan in South Amfoang sub district, river of Noelfael, Nalinen and Toko in North Amfoang sub district, Bokong River in Takari sub district; and Barate River in West Fatuleu sub district. These rivers are not only used for irrigation water sources, but also for the daily needs of the local community. 233. In the wider project area, ca. 5 km east of the project site, out of the area of influence from the planned project, the Tuadale lake can be found, which consists of 5 different lakes located near the hamlet 23 Lifuleo village, West Kupang Subdistrict, Kupang District. The total surface area of the lakes reaches ± 10 ha. The lakes are inhabited by various kinds of fish among them tilapia, snapper, and cork. The Tuadale lake is one of the assets of the district government of Kupang. Since 1998 the lake has been managed by the Village Head Lifuleo for commercial fish breeding.

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Figure 11: Hydrological Map of Kupang District

234. Project area. There are no permanent surface water bodies within the physical footprint (directly impacted power plant complex area) west of Panaf hamlet. The next open waterbodies are located in a distance of around 1.3 km east of the planned project site within the mangrove forest. 235. As part of the DED, the EPC contractor will be required to conduct a detailed site assessment including flood risk assessment to ensure that project facilities have adequate provisions to respond to potential floods.

e. Ground water 236. District. Generally, most of Kupang District has the potential of shallow ground water which is spread evenly on each sub district, even on a relatively small area that is on the west side (partly of West Kupang sub district, some part of Sulamu and Fatuleu sub district), and also partly of East Kupang and Takari sub district, as well as the eastern part of South Amfoang sub district. 237. Project area. Most of the project area is covered with only up to a few cm of soil and in some places base rock is outcropping from the surface. These geological conditions lead to the assumptions that ground water is expected to be found at best in rock cleavages, that there is no

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coherent ground water body, and that the groundwater yields are very small and directly depend on rain events. 238. Fresh water for Panaf hamlet is supplied from deep wells located in a distance of about 2 km away from the project site.

f. Climate 239. District. Kupang District is generally tropical and dry; the rainy season lasts for about 3 or 4 months, the dry season up to 9 months. The rainy season mostly occurs from December to March, in Semau. These climatic conditions certainly influence the cropping and farming patterns of communities in Kupang District. 240. According to the Köppen climate classification, the Kupang District is tropical wet and dry climate (Aw). Unlike many areas outside Indonesia with tropical climate, the temperature Kupang District varies a little between summer season (hotter months) from October to March and winter season (cooler months) from April to September. The hottest month is October with an average temperature of 28.8 °C, while the coolest month is July with the average temperature 26.1 °C. The yearly average air temperature is 27o with an average humidity of 75%. 241. Project area. The general climate of the project area is determined by the climate as described above for the district. Site specific peculiarities are the south-west inclination of the project site and the fact that the wind, which comes from a predominantly south-eastern direction, will blow eventual emissions from future power plants mainly to north-west, towards the sea and away from Timor island.

g. Precipitation 242. Kupang District is likely to be affected by the wind and is categorized as a semi-arid region due to the relatively low rainfall, with an average of 1,441 mm of rainfall per year, or 120.1 mm average per month. The district has two distinct seasons, a wet season and a dry season. The wettest month is January with an average precipitation of 389 mm and the driest month is September with an average precipitation of 2 mm.

h. Wind 243. Error! Reference source not found. presents the simulated wind rose for the year 2016. It shows that the prevailing winds blow from southeast (SE), while most of the receptors are located to the northeast (NE) of the plant. The wind rose also indicates that the more frequent wind speed is around 5 m/sec, which is equivalent, in the Beaufort scale, to the level “gentle breeze”.

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Figure 12: Windrose for the year 2016 as simulated with the model WRF

(wind blowing from) (source of the satellite image: Google Earth TM)

44

i. Air quality 244. Air quality measurements have been undertaken in the area for the Initial Environmental Examination (in Bahasa UKL-UPL) for Kupang 1 PP (PT.PLN, 2016). Measurements have been undertaken at 6 locations (please see a location map in Annex D):

(i) two locations in Lifuleo (belonging to Oisina); (ii) four locations within the proposed project site (office, engine

area, access road and jetty).

245. The Table 13 summarizes the results as average of all observations for each parameter. The site being a green field site with minimal human activities the averaging of all six sites could be justified to provide a general idea of air quality in the airshed surround the project.

Table 13: Average Baseline Air Quality during 2016

Air quality Parameter Average of six locations (μg/Nm3)

CO 2,827

SO2 17.7

NO2 16.7

TSP 11.5

246. The background air quality concentrations at the plant site and nearby areas were also measured during 17-21 February 2017 for AMDAL of Timor 1. 1-hourly air quality samples were collected at five stations. Table 14 presents the results of air quality monitoring. It is observed that these values are slightly above the values obtained in 2016. The values based on Table 14 have been considered as the upper range for respective air quality parameters in Table 14.

Table 14: Air Quality observations during February 2017

247. Based on the Table 13 and Table 14, a conservative value of 30 μg/Nm3 has been added to model predictions to account for 1 hourly values for SO2 and NO2 and 60 μg/Nm3 for PM10. A value of 12.5 μg/Nm3 has been added to model predictions for 24 hourly average predictions for SO2 and NO2 and 25 μg/Nm3 for PM10. A multiplication factor of 0,4 has been used for converting 1 hourly concentrations to 24 hourly concentrations based on the guidance provided by US EPA (Screening Procedures for Estimating

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the Air Quality Impact of Stationary Sources. EPA-454/R-92-019. U.S. Environmental Protection Agency, Research Triangle Park, NC 27711, 1992).

j. Noise 248. At present there are no relevant noise sources within the wider area of the planned power plant complex. The present noise is originated by natural sources like marine waves, wind in the trees, and animals (birds, cows, sheep, goats), together with the sounds from the rural and poor hamlet Panaf, without motorized workshops or motor vehicles. There are no cars in the village, and only a few times per day the sound of a small motor bike is audible. 249. Measurements of noise levels (UKL-UPL for Kupang Peaker 1, PLN 2016) were conducted in the project area using sound level meter according to the Regulation of the Minister of Environment No. 48/MENLH/11/1996 about noise level standards. These measurements (spot measurements) showed sound levels between 39 and 42 dB(A). 250. As part of the DED, the EPC contractor will be required to conduct a comprehensive operational noise impact assessment, to demonstrate compliance with (i) maximum sound pressure levels at 1m from any point on any item of equipment including valves (85dBA); maximum sound pressure level at site boundary (70 dBA during daytime and 60 dBA during nighttime); and (iii) maximum sound pressure level at nearest sensitive receptor (55 dBA during daytime and 45 dBA during nighttime), or a maximum increment of 3 dBA should baseline indicate exceedance with the standard. This noise impact assessment will be based on a new baseline noise assessment at key sensitive receptors. This requirement will be defined in the BD for the EPC contract.

B. Natural environment

251. The natural environment chapter comprises flora and fauna species and their habitats, but also the protection status of these species and habitats.

a. Flora 252. District. Biodiversity documentation in the Nusa Tenggara Timur Province is quite limited, however typical plants of Kupang District are savanna-type grass species (adapted to endure hot and dry periods), palmyra palm (Borassus flabelifer), pine trees, sandalwood (gewang, Santalum spec.), and mangroves (Rhizophora sp.). 253. In the forest areas there are acacia, eucalyptus, papyrus, eaglewood, etc. Among the numerous tree species in Kupang district, the most famous is sandalwood, which has a better quality than the timber from most other regions in Indonesia. Eucalyptus trees and palmyra palms are the dominating tree species in this area. 254. Around 3.46% or 18,787 hectares of the Kupang District area are dry paddy land, while around 96.54%, or about 523,610 hectares are dry rock land or moor.

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255. In the vicinity of the project area in direction east is a mangrove forest area. The mangrove forest area in Kupang Regency, East Nusa Tenggara Province consists of some area in Bipolo, Nanas Beach, Pariti Village, and Nunkurus Village of Sulamu Sub-district; Oebelo Village, Kupang Tengah Sub-district; Enoraen Village, Amarasi East, Sub-district; Lifuleo Village, Sub-district Kupang Barat; and Akle Village, South Semau Sub-district. Of the 40,695 hectares of mangrove forest in East Nusa Tenggara, a great share has been subject to mangrove logging by communities for the need of building materials and firewood. Discrepancies exist in data regarding mangrove area size from various sources. According to Kupang Regency in Figures, 2017, based on Crops and Forestry Service of Kupang Regency, 2015, the area covered with mangrove forest in Kupang Regency is 3,266.10 ha (Table 15). The types of mangrove in Nusa Tenggara Timur are presented in Table 16.

Table 15: Data of forest function based on Kupang Regency

(Source: Kupang Regency in Figures, 2017; based on Crops and Forestry Service of Kupang Regency, 2015)

Table 16: Diversity of Mangrove Types in Nusa Tenggara Timur

No. Family Types Source Remarks

1 Rhizophoraceae Ceriops tagal (Perr) 1, 2 and 5 True mangrove

2 Rhizophoraceae Ceriops decandra (Griff). DH

1 and 3 True mangrove

3 Rhizophoraceae Rhizophora apiculata (Bi) 1,2, 4, and 5 True mangrove

4 Rhizophoraceae Rhizophora mucronata Lmk 1,2, 4, and 5 True mangrove

5 Rhizophoraceae Rhizophora stylosa Griff 1 True mangrove

6 Rhizophoraceae Rhizophora lamarckii 1 True mangrove

No. Forest Function Total Forest

Area (Ha)

1. Protection Forest 109,463.41

2. Production Forest 107,904.42

3. Limited Production Forest 0

4. Convertible Production Forest 0

5. Wildlife Reserve 3,041.60

6. Hunting Park 0

7. Natural Recreation Park 831.92

8. Mangrove 3,266.10

9 Marine Natural Recreation Park 63,889.55

Total 288,397.00

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7 Rhizophoraceae Bruguiera parviflora Roxb 2 and 5 True mangrove

8 Rhizophoraceae Bruguiera cylindrical (L) BI 1 and 2 True mangrove

9 Rhizophoraceae Bruguiera gymnorrhiza (L) Lamk

1,2, 3, and 5 True mangrove

10 Rhizophoraceae Bruguiera sexangula Lour 5 True mangrove

11 Pteridaceae Acrosthicum aureum aureum Linn

5 True mangrove

12 Acanthaceae Acanthus ilicifolius L 2 and 3 True mangrove

13 Acanthaceae Acanthus ebracteatus Vahl 2 True mangrove

14 Myrsinaceae Aegiceras floridum R. & S. 1 and 2 True mangrove

15 Myrsinaceae Aegiceras coniculatum (L) Blanco

1, 2 and 3 True mangrove

16 Myrtaceae Osbornia octodonta F.v.M. 1 True mangrove

17 Lythraceae Phempis acidula 1, 2, and 5 True mangrove

18 Meliaceae Xylocarpus granatum, Koen 1, 2, and 5 True mangrove

19 Meliaceae Xylocarpus moluccensis (Lamk)

1 True mangrove

20 Meliaceae Xylocarpus rumphii (Kostel) Mabb

1 True mangrove

21 Euphorbiaceae Excoecaria agallocha L 1, 2 and 4 True mangrove

22 Plumbaginaceae Aegialitis annulata R. Br 4 True mangrove

23 Rubiaceae Scyphiphora hydrophyllacea Gaertn

1 and 2 True mangrove

24 Avicenniaceae Avicennia alba Bl. 2 and 3 True mangrove

25 Avicenniaceae Avicennia marina (Forks.) Vierh

1, 3 and 4 True mangrove

26 Avicenniaceae Avicennia officinalis L 1 True mangrove

27 Sonneratiaceae Sonneratia alba J.R Smith 1, 2, 3, and 4 True mangrove

28 Sonneratiaceae Sonneratia caseolaris (L) Engl.

3 True mangrove

29 Arecaceae Nypa fruticans Wurmb. 3 True mangrove

30 Sterculiaceae Heritiera littolaris Dryland, ex W. Ait

1 True mangrove

31 Combretaceae Lumnitzera rasemosa Wild. Var

1, 3 and 4 True mangrove

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32 Combretaceae Terminalia catappa L 2 Associates mangrove

33 Malvaceae Hibiscus tiliaceus L 1 and 2 Associates mangrove

34 Malvaceae Thespesia populnea (L) Soland

1 Associates mangrove

35 Molluginaceae Sesuvium postucalartum (L) L

2 Associates mangrove

36 Goodeniaceae Scaevola taccada (Gaertn.) Roxb

2 Associates mangrove

37 Leguminosae Derris trifoliata Lour 5 Associates mangrove

38 Pandanaceae Pandanus odoratissima 2 Associates mangrove

39 Apocynaceae Carbera manghas L 2 Associates mangrove

Sources: 1) Seno, A (2012); 2) Hidayatullah, M.dkk (2012); 3) Talib, M.F (2008); 4) Jafar, dkk (2007); and 5) Hidayatullah, M.dkk (2013).

*) True mangrove is a group of mangrove plants that forms pure stands (major) or dominant in the mangrove community, has both breath and viviparous roots. Examples: Avicennia, Rhizophora, Bruguiera, Ceriops, Sonneratia, Kandelia, Lumnitzera, and Nypa.

**) Associates mangrove is a group of plant species that associate (follow-up) with the type of mangrove (major and minor). Examples: Derris, Hibiscus, and Calamus, etc. (Chapman, 1984).

Table 17: Forest Area in Kupang Barat Sub district (Source: Kupang Barat Sub district in Figures, 2013)

Village State

Forest/Protection (Ha)

Community Forest (Ha)

Tablolong 0 225.25

Lifuleo 68.00 170.00

Tesabela 214.80 537.00

Sumlili 72.00 28.80

Oematnunu 0 14.45

Kuanheun 214.60 214.60

Bolok 0 9.01

Nitneo 0 11.72

Batakte 0 0

Manulai I 0 44.80

Oenesu 5.13 102.60

Oenaek 0 71.60

TOTAL 574.53 1,429.83

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256. In Lifuleo Village, community forest is estimated to be 170ha according to Kupang Regency in Figures, 2017 (Table 17). 257. The beach near to the project area i.e. Salupu Beach (mangrove beach) is known as a family tourism area. The beach’s length is about 2 kilometers, with width of sand beaches ranging from 5 to 10 meters. In this area there is a mangrove forest. 258. Project area. A large part (60%) of the proposed project area for Kupang Peaker 2 is covered by rainfed crops and secondary bushland (40 %) with shrubs and a few trees interspersed. Dominant species are kosambi (Schleichera oleosa, MERR) and tamarind (Tamarindus indica). The crops mainly comprise corn (Zea mays) and peanuts (Arachis hypogaea). Some trees such as lontar (Borassus flabellifer), coconut (Cocos nucifera), teakwood (Tectona grandis), cashew (Anacardium occidentale) and other species were observed during the site visits.

Figure 13: Palm trees within the proposed project site for Kupang Peaker 2, surrounded by poor and shallow extensive agricultural land and

outcropping base rock.

259. As observed during the marine environmental study commissioned by ADB in spring of 2017, mangrove forest is mainly located southeast of the proposed Kupang 2 power plant. It spans approximately 4 km from Tanjung Lampu to the estuary area in Lifuleo village. It appears that, based on the density, mangrove habitat nearby the proposed site is categorized “poor’’ and then the density becomes higher in Lifuleo village (categorized fair) as it becomes close to the estuary area (see the Table and Photos below). Although it is categorized poor, the mangrove habitat is effective to protect the shoreline from flood and abrasion and plays important role in preserving biodiversity.

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Table 18: Condition of mangrove habitat

Station Substrate Species Average

basal area

Density (trees/hectare)

Category (Dharmawan & Pramudji,

2014)

St. 8 rock and sand

Pemphis acidula

60.9 cm

530 Poor Hisbiscus tiliaceus

54. 6 cm

St. 9 Sand Avicennia marina

196.3 cm

130 Poor

St. 10 Sand

Rhizophora stylosa

25.9 cm

2750 Fair Ceriops tagal

7.1 cm

Figure 14: Condition of mangrove habitat in Tanjung Lampu, P. acidula (left) and A. Marina (right)

b. Fauna 260. District. In the western part of the Kupang district wildlife mainly comprises forest area species such as deer, wild boar, wild buffalo, and wild horses. Domesticated animals in the district comprise horses, cows, buffalo, goats, and various types of birds. 261. In the Tuadale Lake, West Kupang, there are wildlife species such as Hawksbill (eretmochelis imbricata), white stork (Egreta sp), white-crested cockatoo (Cacatua sulphurea) and others. In addition, fauna in the community area consist of big cattle i.e. cattle, buffalo and horse. There are also small farm animals i.e. pigs, goats, sheep; and poultry i.e. chicken and duck. Cacatua sulphurea is globally Critically Endangered, owing mainly to collecting for the pet bird trade. It naturally occurs in dry forest and scrub habitats, among others, ranging widely across seasons. Interviews with forest department officials for collecting information for this assessment, though confirmed that this species is not anymore present in Tuadale lake wildlife reserve.

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262. Project site. Based on the UKL/UPL Report for Kupang 1 and discussions with local people, the avifauna found in and around the planned project area includes: aves turtledove (Geopelia striata), finches (Pycnonotus aurigaster), and helmeted friarbird (Philemon buceroides), cerulean kingfisher (Alcedo coerulescens), and some species of whistler birds. 263. According to statements of the local people, monkeys and deer can be observed in the secondary forest and bushland.

c. Protected areas and species 264. The nature reserve, nature conservation, and cultural preservation areas within Kupang Regency comprise some Wildlife Reserves, Mangrove Forest Areas, a Forest Park (TAHURA), Nature Parks and Marine Natural Parks. 265. The total area of Wildlife Reserve in Kupang Regency is 2,949.5 ha consisting of some a Wildlife Reserve i.e. Lake Tuadale, Perhalu, Menipo and Amalato. 266. According to the status determined by the province of NTT, the Mangrove forest area in Kupang Regency is 4,197.09 hectares that spread in Bipolo village, Pariti village, and Nunkurus village within Sulamu subdistrict; Oebelo village, Kupang Tengah subdistrict; Enoraen village, Amarasi Timur subdistrict; Lifuleo village, subdistrict of West Kupang; and Akle village, Subdistrict of South Semau. The mangrove forest area at Tuadale-wild reserve, which is bordering with its utmost western tip the project area in the east is approximately 300 ha near Lifuleo village. 267. The area of Nature Parks and Marine Nature Parks according to the status set in NTT province is 63,233.60 ha comprising Camplong Nature Parks (696 ha), Baumata Nature Parks (800 ha), and Marine Nature Parks of Teluk Kupang (50,000 hectares). 268. According to a decree from the Ministry of Marine Affairs and Fisheries of the Republic of Indonesia (decree number KEP.38/MEN/2009 and 5/KEPMEN-KP/2014), the Sawu Sea and surroundings marine area in Kupang Regency, have been officially designated as a national marine reserve. The National Marine Reserve of Sawu Sea is also classified as category II IUCN protected area.

d. Laut Sawu Marine National Park (LSMNP) 269. The Kupang Peaker 2 power plant is located at western most tip of Timor island in Kupang Regency, Nusa Tenggara Timur Province. The adjoining coastal sea is part of Sawu Sea Aquatic National Park that extends up to 400 km to the west of Kupang Regency (Figure 15). 270. Sawu Sea was declared by the government as an aquatic national park under the name of Laut Sawu Marine National Park (LSMNP) through the Minister Decree of Marine Affairs and Fisheries of the Republic of Indonesia 38/2009 dated May 8, 2009. LSMNP has an aquatic area of about 3.36 million hectares (core zone 80,000 ha). LSMNP consists of 2 parts, namely Sumba aquatic area and surrounding area, covering 567,165.64 hectares and aquatic area of Sabu-Rote-Timor-Batek island and surrounding, covering an area of 2,953,964.37 hectares. 271. To enhance the management strategy of this LSMNP, the Ministry has issued a decree (6/KEPMEN-KP/2014) which regulates the management plan and zonation system. These

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management zones have different management objectives and conservation priorities. Figure 15 presents demarcation of marine park zones together with cetacean sighting locations in LSMNP for a period of 2013-2017. Following colour scheme has been adopted to depict the management zones of LSMNP:

i. Red: Core Zone

ii. Light Green: Utilization zone

iii. Dark green: Utilization for tourism and cultivation

iv. Dark Blue: Traditional sustainable fisheries zone

v. light Blue: Sustainable fisheries

vi. Pink: Cetacean protected zone

vii. Light yellow: NTT Province

viii. Brown: East Timor (Timor Leste)

ix. white: Non protected area

Figure 15: Zonation of Laut Sawu Aquatic National Park with cetacean

sighting data 2013-2017

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272. According to this zonation system the proposed plant site for Kupang Peaker 2 is bordering the 1.5 km wide utilization zone, i.e. a zone mainly designated for ecotourism, research and education, and as a shipping route. 273. The project itself will have a very limited marine footprint by way of water intake pipeline extending up to about 50 m into the sea from the lowest low tide line and an effluent discharge line discharging within the intertidal zone. Sea water requirement for the project is 100m3/day or 70 litres/min and a pipeline of 10 cm diameter will be more than sufficient for the purpose. This pipeline will either be anchored on the superstructure of LNG jetty or be anchored on marine buoys. In either case it will be ensured that the pipeline will be adequately secured against wave action and coastal currents. The treated wastewater will be less than 5m3/day and it will be discharged through a buried pipeline in the intertidal zone along with the RO reject water of 70m3/day after on-site treatment. A discharge line of 15 cm diameter will be sufficient for the purpose. This pipeline will be buried in a trench that will be dug using an excavator and securely filled after laying the pipeline. The marine footprint of the project therefore is minuscule. 274. The project also involves limited marine vessels movement, during plant construction and operations. Construction phase movements are likely to be about 10 trips over a period of 90 days to carry heavy equipment and gas engine plant components. During operations phase at the most 6 additional vessel trips per month will be required to deliver LNG for Kupang Peaker 2. Temporary jetty already constructed for Kupang Peaker 1 will be used for construction phase delivery. During the operation phase, LNG jetty constructed to receive LNG for Kupang Peaker 1 will be used by the project. PLN re-confirmed that the LNG jetty would be completed on time, i.e. prior to operation of the Kupang Peaker 2. 275. By virtue of being located at the coast adjoining the utilization zone of LSMNP and having a marine footprint, the Project triggers the “Legally Protected Areas“provision under Biodiversity Conservation and Sustainable Natural Resource Management requirement of ADB’s SPS. Under this provision ADB’s SPS requires that the borrower will (i) act in a manner consistent with defined protected area management plan; (ii) consult protected area sponsors and managers, local communities and other key stakeholders of the proposed project and (iii) implement additional, programs, as appropriate, to promote and enhance the conservation aim of the protected area. 276. Some activities are strictly prohibited within the two zones of the Sawu Marine National Park, including destructive fishing methods, mangrove harvesting, hunting of protected animals, coral reef extraction (especially hard corals, both dead and living), mining activities (oil, gas, and sand) and sewage and garbage disposal. In addition, the decree also mentions that the main infrastructures allowed in the utilization zone are local residential houses, shipping routes, patrol office, guard house and jetty, resorts and hotels. More detailed information about activities in the protection zones can be derived from Table 11 in the Marine Environmental Assessment Report (Annex C to this EIA). Mangrove forest falling under Tuadale Wildlife Reserve also has a protection status and mangrove harvesting is prohibited. Mangroves outside Tuadale Wildlife Reserve can be used for ecological services. 277. During the course of preparation of this EIA, consultations were held with Ministry of Marine Affaires and Fisheries and Sawu Protected Area Management Authority to discuss the permissible activities in utilization zone in the context of the Project and to minimize and mitigate negative impacts of construction of LNG Jetty for Kupang Peaker 1 that will also receive LNG for the Project.

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278. It was confirmed by Ministry of Marine Affairs and Fisheries and Sawu Protected Area Management Authority (SPAMA) that water abstraction and discharge of effluents complying with national marine standards as well as construction of jetties to receive and dispatch materials and shipping were permissible activities in the utilization zone of LSMNP. The project will comply with IFC EHS guidelines for discharge from thermal power plants into sea that are more stringent than the national marine standards. Planned water abstraction and effluent discharge for the project are therefore permissible activities for LSMNP. 279. Minimizing damage to marine environment, specially the coral reefs and sea grass was also discussed with SPAMA. Based on SPAMA’s advise, an action plan for identifying least damaging alignment for LNG jetty, monitoring impact of LNG jetty construction on corals and undertaking coral rehabilitation to compensate for the damage has been prepared. The EIA includes budgetary provision and management measures for coral rehabilitation (about 4 times of the likely damage) and thus appropriately contributes to conservation aim of the protected area. 280. Based on the above, it is concluded that the project meets all three requirements for operating in “Legally Protected Areas” under Biodiversity Conservation and Sustainable Natural Resource Management covenant of ADB policy.

e. Marine Habitats 281. Figure 16 provides an enlarged view of marine zones around the project site comprising of utilization zone, cetacean protection zone and traditional sustainable fisheries zone. It is observed from Figure 16 that the coastal area adjoining the Project location falls under the utilization zone of the marine park that extends up to about 1.5 km into the sea. Thereafter the cetacean protection zone commences. Lateral extent of utilization zone is about 11 km. The main purpose of the cetacean protection zone is to protect marine habitats, fish population and cetaceans, as well as their migration pathways. It is also noteworthy that the core zone of marine park is over 150km away from the Project location (Figure 15).

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Figure 16: Zonation of national marine reserve of Sawu near project area (Source: Ministry of Marine Affairs and Fisheries of Republic

Indonesia)

282. Figure 17 presents the natural coastline habitat of the LSMNP around the coastline of project site along with the locations of occurrence of coral reefs, sea grass and mangroves. These locations are based on survey data in 2013. Figure 17, it is observed that the marine habitat near the project location is mostly a sea grass habitat (light green) with also has a presence of coral reef towards Semau straight (north-west) and mangroves along the coast to south-east.

Legend: Blue= Coral reef, Light green=Sea grass, Yellow= Estuarine, Black= Mangrove and O = Project site

Figure 17: Natural habitat types near the project area (Source: appendix of Ministry decree 6/KEPMEN-KP/2014)

283. Figure 18 presents the condition of coral reef that forms an important natural habitat at and around the project site. The Figure 18 covers the coral reef area all along the Semau strait and Semau island. It is observed that although quite extensive in geographical spread, the coral reef is in relatively poor conditions and mostly consists of significantly less than 50% live corals. The condition of coral reef is especially poor near the project site where all along the coast the coral reef is comprises less than 10% live coals. The coral reef deterioration in the project and surrounding areas is a result unsustainable fishing practice in the past. 284. It is further observed that the Sawu Sea is essentially a coastal upwelling zone for the Indo Pacific region. Coastal upwelling supports the growth of seaweed and plankton and creates a rich ecosystem. These provide food for marine biota such as Cetacean (whales, and dolphins), and Dugong. Figure 19 presents the upwelling area in LSMNP. From Figure 19, it is observed that the entire coastal area adjacent to the project location is an upwelling area.

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f. Consultations with Fishermen 285. Primarily due to upwelling phenomenon, the Rote and Semau straits are a productive ecosystem that could provide feeding grounds for cetaceans and other marine species. Due to limited cetacean sighting data in records, consultations with seven Tablolong village fishers who accompany during field (May 2018) visit were held to better understand the frequency of sighting of cetacean and other marine life in and around the project area. 286. The consultations revealed that almost every year one or two blue whales are observed crossing the Semau strait and moving to and opposite Tablolong village. The migration period for cetacean through Sawu sea was further discussed with SPAMA (May 2018) who informed that the migratory season for cetacean from Pacific to Australia was during October to December and from Australia to Pacific was during March to May. The Nature Conservancy (TNC) 2011 monitoring report also mentions the sighting of the blue whale (Balaenoptera musculus) and unidentified whale at Semau strait. The monitoring team also saw dolphins in the area. Figure 20 presents the location of the 2011 whale sighting by TNC.

Legend: Red = 0-10 % coverage, Yellow =11-25 % coverage, Light green= 25-50% coverage, Light blue = 0-75% coverage, Dark blue = 75-100% coverage = project site

Figure 18: Condition of coral reef near project (Source: Munasik, et all, 2011)

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Figure 19: Upwelling area in LSMNP (Source: appendix of Ministry decree 6/KEPMEN-KP/2014)

Figure 20: Cetacean sighting locations in Semau strait

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(Source: appendix of Ministry decree 6/KEPMEN-KP/2014)

287. It is to be noted that the blue whale is a cosmopolitan species, found in all oceans. The subspecies-specific taxonomy for Blue Whale is not yet fully elucidated in all regions. It is not clear what subspecies of blue whale recorded visiting the project site. The researcher who published the sighting in the Semau identified the whale as Pygmy Blue whale (Balaenoptera musculus brevicauda). 288. Figure 21 presents results of participatory mapping of sea mammal sighting around the project site involving fishermen, it is observed that and showing the Rote and Semau straits are the habitat of dugongs and dolphins.

.

Figure 21: Participatory mapping of sighting large IUCN listed species near Project location

(Source: appendix of Ministry decree 6/KEPMEN-KP/2014)

289. Based on participatory mapping conducted by TNC in Kupang district, there are four species of turtles, namely (Endangered Species Chelonia mydas / Green turtles) and critically endangered species (Eretmochelys imbricata / Hawksbill turtles), vulnerable (Dermochelys coriacea / Leatherback turtles) and vulnerable (Lepidochelys olivacea / Olive Ridley turtle). These observations are also corroborated by the information from fishermen and Marine Study (Annex C: Marine Environmental Assessment Report) that also notes that sea waters near the project site (Semau Strait) are often visited by endangered species (Chelonia mydas / Green turtle) and occasionally by critically endangered species (Eretmochelys imbricata / Hawksbill turtles). 290. These turtles likely visit the area for food sources. Though the seagrass and coral reef are in poor condition, these natural habitats still hold high diversity and are high in productivity especially the area frequently having upwelling (Figure 19). However, the marine study and ADB due diligence survey did not find any signs of turtle nesting at the sandy beach adjacent to the project site. The local fishermen community also informed that the area is not a turtle nesting ground. Participative mapping in 2011 shows location of turtles nesting ground at Kupang as

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shown in Table 19 and Sawu Marine Figure 22. It is observed from Figure 22 that nearest nesting grounds to the project location, for Hawksbill turtle are in east along the coast of Tuadale wildlife reserve at a distance of about 7 km and for leather back turtle further about 20 km east. 291. The frequency of Hawksbill turtle visiting the project area could not be determined by the interviews with the fishermen. However, considering the proximity of the nesting site at Tudale lake wildlife reserve beach area (at about 7 km from the project site), as a matter of precaution it is considered that the marine DMU s frequently visited by the Hawksbill turtle.

Table 19: Nesting Locations for turtles near Kupang and Semau and Rote islands

Species of turtle Nesting location Period of nesting

Green turtle

Batek Island Amfoang beach Naikliu beach West Naikliu

Jan - December June - July March - December November-December

Green turtles and Hawksbill turtles

Naus, Manubelon, Pulau Tabui, Pulau Tabui Bisolo Salupu, sepanjang Bone, Tasikona, Ni mituka

July – August July – August every month April - December May- October July- September, February - March

Olive Ridley turtle

Pulau Batek, P. Manipo

January-December, July - August

Source: Participative mapping (YPPL and The Nature Concervancy,2011)

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Legend: Blue = Logger head turtle, Orange= Hawksbill turtle, Yellow = Flat back turtle, Purple= olive ridley turtle, Black =Leather back turtle, Dark green= green turtle, Red =Crocodile, O = project site

Figure 22: Nesting locations for sea turtle near Kupang and Semau and Rote islands

(Source: (TNC Sawu Sea Project, 2011)

g. Additional marine expert study 292. Based on the above information, it is evident that the natural marine habitat surrounding the project is of ecological significance that needs to be conserved. The information available in literature and records of LSMNP though is broad based and covers a large geographical area. To assess the significance of the natural habitat near the project site and assess the impacts of project activities, a separate marine expert study, which is attached as Annex C to this EIA report, was conducted for the project Kupang Peaker 2.

293. This study was done over a period of 5 days during February 2017 and covered a physical extent of about 7 km long coastline, from Air China beach (St 7) on the north to the mouth of a creek on the east

(St 10). The stations 8, 9 and 10 are located in Tuadale lake wildlife reserve. The creek extends into the land for about 3 km and supports a mangrove forest along its banks. (Figure 23). Based on a broad survey

of the area, 10 locations where distinct marine habitats were in comparatively rich conditions were identified for quantitative

assessment of habitat quality. The coordinates of points for specific observations are presented in

Table 20.

Figure 23: Physical Extent of Coastline Covered during the Marine Survey

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Table 20: Marine features and coordinates of observations points during marine study

Name

Observed Feature

Coordinates

Latitude Longitude

St 1 Coral reef 10o20’46.00’’ 123o27’21.35’’

St 2 Plankton 10o20’46.42’’ 123o27’18.39’’

St 3 Plankton 10o20’50.44’’ 123o27’13.89’’

St 4

Sea grass 10o21’15.66’’ 123o27’22.50’’

St 5 Shallow

hard bottom

10o21’02.53’’ 123o27’17.61’’

St 6 Sandy

beach 10o21’14.79’’ 123o27’23.04’’

St 7 Sandy

beach 10o20’18.09’’ 123o27’52.91’’

St 8 Mangrove 10o21’26.62’’ 123o27’34.64’’

St 9 Mangrove 10o21’27.72’’ 123o27’39.17’’

St 10 Mangrove 10o20’54.66’’ 123o29’26.09’’

294. Modified habitats were found in Archina and Tablolong, approximately 1.5 and 3 km northward respectively from the Project site and out of the AOI (1 km radius for marine impact assessment) of Kupang Peaker 2. The locals seasonally cultivate seaweed, E. cottonii, using a mono line method in Archina. In Tablolong, there is a coral transplantation garden in the reef slope held by PT Panorama Alam Tropika which is currently not operating. 295. In the coastal area around the proposed project site, certain important natural habitats, including coral reef (in the slope), small sea grass meadows, shallow rock bottoms, and sandy beaches are observed. The locations of these natural features are presented in Figure 24. The Figure 24 also depicts onshore, a mangrove habitat area east of the Project site, which has been slightly modified by the locals who have created an access to go to the beach.

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Figure 24: Natural habitats nearby the proposed power plant

296. Shallow hard bottom reef flat, one of the key natural habitats in the studies area spans approximately 200 meters from the shoreline to the sea. Although it is mainly dominated by rock/hard substrate, it comprises many types of benthic communities, not only macroalgae, sponges, and ascidians, but also soft and hard corals. 23 species of benthic community were observed during the survey in shallow hard bottom. None of these species was categorized as threatened by the IUCN Red List (Annex C: Maine Study Table 3). Any changes in the condition of this habitat will though impair the habitat conditions and also affect the self-protection ability of the shoreline from abrasion.

Figure 25: Location of key natural habitats from Kupang Peaker 2 plant site

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297. Figure 25 also indicates the south extreme of important natural marine habitats such as sea grass. Coral reef as well as sea grass habitat mainly have been observed approximately 200 meters westward of the Project site. The condition of the coral habitat is determined based on the percent cover of hard corals and is rated as poor due to percent area of hard corals at 19.37%, below the threshold of 25%. It is noteworthy that Kupang Peaker 2 site is located more towards to the open sea where wave action is stronger than the western regions that are protected by the Semau strait between the land mass of Timor and Semau island. The inner portions of the strait (Semau strait) therefore are more favourable for coral reef formation, sea grass and related ecological diversity and forms the key area studied under the marine study. 298. In all, 59 species of benthic communities in coral reef habitat and 30 species of reef fish belonging to 11 families were found in the coral habitat in the surveyed area. The details of these species are provided in the marine study (Annex C). Most of the species observed are categorized as of ‘least concern’. Some of the species fall under ‘vulnerable’ and ‘near threatened’ category of IUCN. One benthic species of holothurian (Thelenota ananas) is classified as endangered species found at reef habitat close to the Project site. Though sampling effort was limited and was of short duration to observe the presence of migratory species, for benthic species that are sessile and whose presence is independent of season, the survey period was sufficient to record their presence. 299. During the marine observations, there was no evidence found that the beach is a nesting ground of sea turtles. It is envisaged that the long flat reef may be hampering sea turtles from reaching the beach whose presence has been indicated by the local fishermen near surveyed area. The reef does, however, support sponges and has the potential to provide feeding grounds for the Critically Endangered Hawksbill Turtle. But the condition of habitat itself being poor, there is limited potential of providing such feeding grounds. 300. Based on interviews with the fishermen, sea turtles are frequently seen in coastal waters but do not nest at the beaches nearby the surveyed area. This observation tallies with the recorded data on turtle nesting presented in Figure 22. 301. The information summarised above (for more details see Annex C: Marine Study) has been used for critical habitat screening assessment in the following sections.

h. Terrestrial Habitats 302. The project site located at Cape Oisina is about 300 m north of the western tip of the Tuadale Lake Wildlife Reserve. The wildlife reserve consists of lowland volcanic limestone rocks ecosystem and mangrove forest ecosystems which dominate on the fringe of brackish water lakes, there are three brackish water lakes which are the habitat of various species life in swampy ecosystem and lake including native resident water birds and migratory water birds. The closest brackish lake/swamp area to the project is 4.5 km. (outside AOI).

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Figure 26: Tuadale Lake wildlife reserve in relation to the project site

303. Animals in the wildlife reserve, among others, are Python Timor (Python timorensis), Timor monitor lizard (Varanus timorensis), Pacific Reef-egret (Egretta sacra), White-bellied Sea-eagle (Haliaeetus leucogaster), Marigold Lorikeet (Trichoglosus capistratus), seagulls (Sterna sp), Barred Buttonquail (Turnix suscitator), and Spotted Kestrel (Falco moluccensis), as well as various species of migratory water birds that occupy the Tuadale brackish lake habitat during certain seasons. Table 21 and Table 22 present the list of animal and migrant birds live in the Tuadale lake wildlife reserve.

Table 21: List of Animals of Tuadale Lake Wildlife Reserve

o Local Name Scientific Name Status

1 Sanca timor Python timorensis Not Evaluated

2 Biayak Timor Varanus timorensis Not Evaluated

3 Bangau putih Egretta sacra Least Concern

4 Alap – alap Falco moluccensis Least Concern

5 Ulung – ulung Haliaeetus leucogaster Least Concern

6 Perkici dada kuning Trichoglossus capistratus Least Concern

7 Burung camar Sterna sp. -

8 Burung puyuh Turnix suscitator Least Concern

9 Burung Kakatua Cacatua sulphurea* Critically Endangered

10 Penyu sisik Eretmochelys imbricata Critically Endangered

Source: BKSDA Regional Information Book of East Nusa Tenggara, 2015

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* Tuadale wildlife reserve was a habitat for Cacatua sulphurea but now the bird cannot be found in the area

Table 22: List of migrant bird observed at Tuadale brackish lake

No Local Name Scientific Name

Status

1 Kuntil perak Ardea intermedia Least Concern

2 Trinil pantai Actitis hypoleucos Least Concern

3 Cerek kalung kecil Charadrius dubius Least Concern

4 Kuntul kecil Egretta garzetta Least Concern

5 Biru laut ekor blorok Limosa lapponica Near Threatened

6 Cangak australia Egretta novaehollandiae Least Concern

7 Gajahan timor Numenius madagascariensis Endangered

8 Kokokan laut Butorides striata Least Concern

9 Cerek topi merah Charadrius ruficapillus Least Concern

10 Dara laut kaspia Hydroprogne caspia Least Concern

11 Dara laut tiram Gelochelidon nilotica Least Concern

Source: Kupang Forestry Research Team

304. Modified Habitat at Cape Oisina dominate, primarily by rain fed agriculture land, settlement and shrubs land. On the agriculture land farmer grow cash crop mainly corn and some low land vegetable. During wet season farmers grow cash crop and put their cattle on paddock to avoid cattle getting in to the agriculture land at the end of rainy season farmer herd their cattle on the agriculture land including to the grass land at west part of Tuadalae Lake wildlife reserve. 305. The most tip area of wildlife reserve is dominated by tall shrubs kosambi (Schleichera oleosa, MERR) with lontar (Borassus flabellifer) interspersed and grass and close to the coastal dominated by mangrove growth on sand, these part of Tuadale lake wildlife reserve used by locals as grazeland for cattle or as a source of cattle food during wet season when the cattle in paddock. Schleichera oleosa shrubs tree used by community as a fire wood to make Se'i (smoke beef).

i. Species and conservation concern 306. Based on the field observation results and literature study, most of the species in the AOI are categorized as Least Concern species; some species are categorized as “Near Threatened “and “Vulnerable” by IUCN. 307. One marine mammal (Balaenoptera musculus – Blue whale), one bird (Numenius madagascariensis), one sea turtle (Chelonia mydas) and one holothurian (Thelenota ananas) are categorized as “Endangered“ by IUCN, and one sea turtle (Eretmochelys imbricata) is classified as “Critically Endangered.” As discussed in previous sections, the utilization zone of LSMNP is not at important part of the protected site for cetacean protection or migration. Further, there is no evidence of turtles nesting at the coastal areas near the site. Their food supply, sponges at the coral reef are located at the minimum of 200m and farther from the Project location. 308. Sea cucumbers (Thelenota ananas, an endangered species - IUCN, 2018) are invertebrate sea animals very close to sea stars and sea urchins. Sea cucumber browses slowly at the bottom of coral-reefs, feeding on microorganisms attached to sediment. This species is found along the slope and passes along the reef flats at a depth of 2 to 35 m, but is more common in waters between 10-20 m. Thelenota ananas has high value in market and is commercially

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exploited to supply consumers around the world. This species may be more vulnerable to overfishing given its low fecundity and late sexual maturation. (IUCN, 2018). 309. One bird species (Cacatua sulphurea, Yellow Crest cockatoo) is categorized as “Critically Endangered“ by IUCN. Based on interviews with forest department officials for collecting information for this assessment, they confirmed that this species is not anymore present in Tuadale lake wildlife reserve. 310. One migrant bird (Numenius madagascariensis) is classified as Endangered. This bird, though not observed during the survey, is likely to be present in the DMU because apart from the swampy area close to lakes in Tuadale lake wildlife reserve (located more than 4 km from the project site), the reef beds in close proximity to the project (although mostly inundated and exposed only during lowest low tide) are also a habitat. 311. Due to the presence of a CR species, likely presence of a few EN species and overall significance of the coastal area near the project site, it is necessary to screen the marine and terrestrial habitats near the project for likelihood of those being Critical Habitat for any of the marine or terrestrial species. The following sections provide such assessment based on the information presented in marine natural habitat and terrestrial natural habitats.

j. Critical Habitat Screening Assessment

312. Determination of Critical Habitat is a process that usually follows determination as to whether the habitat area in question is Natural or Modified. Natural habitats are generally of higher biodiversity value than Modified Habitats, although both can still support species that trigger Critical Habitat (as regularly happening in man-made wetland habitats which support large assemblages of migratory birds). 313. Examples may include but not be limited to: areas of high scientific value; concentrations of Vulnerable species (under the IUCN Red List of Threatened Species) where there is uncertainty regarding their listing; and landscape and ecological processes (e.g. water catchment areas, areas which prevent flooding or fire). In the context of the Project, the marine area surrounding the project falls under natural habitat. The adjoining area is also IUCN category II protected area for cetaceans. This aspect has already been discussed in section on legally protected areas. 314. The terrestrial habitat adjoining the project is a mix of natural and modified habitat. 315. The Critical Habitat assessment for the project utilises the assessment methodology as outlined in the IFC Performance Standard 6 and associated Guidance Note. Table 23 presents the IFC criteria for assessment of critical habitats for threatened, endemic and migratory species. 316. Discrete Management Units (DMU). Based on IFC PS 6 Guidance Note 6, the Project is required to ‘determine a sensible ecological or political boundary that defines the area of habitat to be considered for the Critical Habitat Assessment’. Termed as a Discrete Management Unit (DMU), this is an area with a ‘definable boundary within which the biological communities and/or management issues have more in common with each other than they do with those in adjacent areas. DMUs may hence be defined using ecological boundaries such as rivers and mountain ridges/valleys where wildlife is determined to be unable to cross, management boundaries such as a Protected Area, or an artificial barrier to movement such as roads and urban areas.

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317. DMUs do not imply management control or responsibility by the Project, and often include areas outside of their control. The DMU also does not indicate Project footprint or impacted area, and in most cases is larger than either of these. This ensures impacts on biodiversity values in the larger landscape are adequately considered. 318. DMUs are challenging to define in marine environments. For this Project, the DMU for marine habitat has thus been defined as the coastal area fronting the project and extending up to the shipping lane in Semau strait towards west (about 2 km from the coast). This DMU is necessarily somewhat arbitrary but does encompass all potential marine project impacts. The eastern boundary of the marine DMU is the Kupang coastline itself extending on either side of the project site with overall extent of about 7 km. The area is a part of LSMNP, provides a secondary migratory route for cetacean and includes zone of protection of cetacean, traditional fishing and utilization zone of LSANP. 319. The terrestrial DMU is easier to define for this project, owing to a reasonably distinct area of patchy modified and natural habitat around the project area, disjunct from more extensive areas of natural habitat to the east and south. The DMU boundary extends around the project site, skirting the mangrove area and west tip of Tuadale lake wildlife reserve on the south, Panaf village and rainfed agriculture area used by its inhabitants to the east and approach road to the site on the north. Both marine and terrestrial DMUs are presented in Figure 26.

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Table 23: IFC EHS Guidance Note on Critical Habitat Screening10

Species Level Criteria

Tier 1 Tear 2

Criteria 1: Critically Endangered (CR)/ Endangered (EN) Species

(a) Habitat required to sustain ≥10% of the global population of a CR or EN species/subspecies where there are known, regular occurrences of the species and where that habitat could be considered a discrete management unit for that species. (b) Habitat with known, regular occurrences of CR or EN species where that habitat is one of 10 or fewer discrete management sites globally for that species

(c) Habitat that supports the regular occurrence of a single individual of a CR species and/or habitat containing regionally- important concentrations of a Red-listed EN species where that habitat could be considered a discrete management unit for that species/ subspecies. (d) Habitat of significant importance to CR or EN species that are wide-ranging and/or whose population distribution is not well understood and where the loss of such a habitat could potentially impact the long-term survivability of the species. (e) As appropriate, habitat containing nationally/regionally important concentrations of an EN, CR or equivalent national/regional listing.

Criteria 2: Endemic/ Restricted Range Species

(a) Habitat known to sustain ≥95% of the global population of an endemic or restricted-range species where that habitat could be considered a discrete management unit for that species (e.g., a single-site endemic).

(b) Habitat known to sustain ≥1% but <95% of the global population of an endemic or restricted-range species where that habitat could be considered a discrete management unit for that species, where data are available and/or based on expert judgment.

Criteria 3: Migratory/ Congregatory Species

(a) Habitat known to sustain, on a cyclical or otherwise regular basis, ≥95% of the global population of a migratory or congregatory species at any point of the species lifecycle where that habitat could be considered a discrete management unit for that species

(b) Habitat known to sustain, on a cyclical or otherwise regular basis, ≥1% but <95% of the global population of a migratory or congregatory species at any point of the species life cycle and where that habitat could be considered a discrete management unit for that species, where adequate data are available and/or based on expert judgment. (c) For birds, habitat that meets Bird Life International’s Criterion A4 for congregations and/or Ramsar Criteria 5 or 6 for Identifying Wetlands of International Importance. (d) For species with large but clumped distributions, a provisional threshold is set at ≥5% of the global population for both terrestrial and marine species.

10 The definition of critical habitats as per IFC Performance Standard 6 and associated Guidance Note is generally equivalent and compatible with ADB’s definition of critical habitats as per ADB’s SPS 2009, i.e.: Critical habitat is a subset of both natural and modified habitat that deserves particular attention. Critical habitat includes areas with high biodiversity value, including habitat required for the survival of critically endangered or endangered species; areas having special significance for endemic or restricted-range species; sites that are critical for the survival of migratory species; areas supporting globally significant concentrations or numbers of individuals of congregatory species; areas with unique assemblages of species or that are associated with key evolutionary processes or provide key ecosystem services; and areas having biodiversity of significant social, economic, or cultural importance to local communities. Critical habitats include those areas either legally protected or officially proposed for protection, such as areas that meet the criteria of the World Conservation Union classification, the Ramsar List of Wetlands of International Importance, and the United Nations Educational, Scientific, and Cultural Organization’s world natural heritage sites.

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(e) Source sites that contribute ≥1% of the global population of recruits.

Ecosystem Level Criteria

Criteria Highly threatened and/or unique ecosystems;

Criterion 4 is triggered by ecosystems that are threatened, house unique assemblages of biome-restricted species, or are recognized for high conservation value, including protected areas. Where data permitted, quantitative categories and criteria from Rodriguez et al. (2011) were applied to evaluate ecosystem status. Ecosystems considered CR or EN were identified as CH, and ecosystems rated as VU were evaluated on an individual basis through consultation with experts. Ecosystems with unique assemblages of species or of high conservation value were evaluated based on field data, literature and consultation.

Landscape Level Criteria

Criteria 5 Key evolutionary processes

Criterion 5 applies to landscape-level features that can influence key evolutionary processes. Key landscape features such as unique topography that creates unique habitats and areas important for climate change adaptation were identified using literature review and through expert consultation. Criterion 5 also applies at the species level for “distinct species” which include those coined as “Evolutionarily Distinct and Globally Endangered” (EDGE) (GN 95 IFC 2012b; Zoological Society of London 2013). Species within the CHAA identified as EDGE species were evaluated for critical habitat on a case-by-case basis in consultation with appropriate experts.

(1) The Biodiversity Consultancy (TBC) (2013) getting through PS6: Critical Habitat and its requirements. Case Studies from Guinea and Mongolia. Whitmore, T.C. (1984) Tropical Rain Forests of the Far East. Oxford University Press. Second Edition.

(2) McDonald-Madden, E. Gordon, A. Wintle, B. Walker, S. Grantham, H. Carvalho, S. Bottrill, M. Joseph, L. Ponce, R. Stewart, R. & Possingham, H. P. (2009). “True” Conservation Progress. Science 323: 43-44.

Figure 27: DMUs for marine and terrestrial habitats for Kupang Peaker 2

Project

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320. Findings. Table 24 presents the findings of Critical Habitat Screening Assessment using the IFC guidelines and criteria summarised in Table 23. Based on this screening, it is concluded that the marine DMU is a critical habitat for Eretmochelys imbricata (Hawksbill turtle) whereas the terrestrial DMU does not trigger critical habitat criteria for any of the species. 321. These findings entail that the EIA assessing the project for its compliance with the project implementation conditions for critical habitats under biodiversity conservation and sustainable natural resource management of ADB and proceeds only if the project meets these requirements.

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Table 24: Critical Habitat Screening Assessment

No

Species Common Name

IUCN Red List Category

Crite

rio

n 1

Crite

rio

n 2

Crite

rio

n 3

Crite

rio

n 4

Crite

rio

n 5

Species Information Habitat within DMU

Recorded in DMU

Critical Habitat (CH) Rationale

1 Eretmochelys imbricata

Hawksbill Turtle

CR x x

Hawksbill Turtle population has declined in the last three generations due to overexploitation of eggs and increased disturbance to the nesting beach and habitat degradation at sea, and also deaths from sinking due to entanglements in fishing nets. (IUCN,2018) The Hawksbill has a circumglobal distribution throughout the Atlantic Ocean, Indian Ocean, and the Pacific Ocean. Hawksbills are migratory during their lifetimes. Hawksbill nesting in at least 70 countries, Hawksbills are believed to inhabit 108 country coastal waters. (Groombridge and Luxmoore 1989, Baillie and Groombridge 1996 (IUCN,2018) The Hawksbill turtle nesting population in the Sawu area and in eastern Indonesia is the lowest in Indonesia (see annex1) The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not during survey but presence is likely

Although only a few individuals may visit the DMU and no nesting sites have been observed in the DMU during field surveys, the species being critically endangered (CR), It is considered that for this species DMU is a Tier 2 CH under Criterion 1. The population threshold for Tier 2 CH under Criterion 3 though is unlikely to be met. Overall the DMU is considered as CH for Eretmochelys imbricata.

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2 Chelonia mydas

Green Sea Turtle

EN x x Green turtle population has declined in the last three generations due to overexploitation of eggs and increased disturbance to the nesting beach and habitat degradation at sea, and also deaths from sinking due to entanglements in fishing nets. The Green Turtle has a circumglobal distribution, occurring throughout tropical and, to a lesser extent, subtropical waters. Green turtles are highly migratory, nesting occurs in more than 80 countries worldwide (Hirth 1997) it is believed that green turtles inhabit coastal waters of over 140 countries (Groombridge and Luxmoore 1989).(IUCN,2002) (IUCN,2018) The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not during the survey but presence is likely

Although individuals may use the project site, none were identified during survey and no nesting sites have been identified in the DMU during the field survey. Since the species is not critically endangered (CR), it is unlikely that DMU will meet population threshold for CH for this species either under Criterion 1 or 3. DMU is not considered a CH for Chelonia mydas.

3 Balaenoptera musculus

Blue Whale / Pygmy Blue Whale

EN/DD

x x The blue whale is a cosmopolitan species, the sub-species taxonomy for Blue Whale is not yet fully elucidated in all regions. The published report of the sighting in 2011 in Rote and Semau straits classified the whale as Pygmy Blue whale. (IUCN,2018) Pygmy blue whales (B. m. brevicauda) are found in the southern Indian Ocean of Madagascar, and Western Australia, and off the coast of South Australia where they form part of a more or less continuous distribution from Tasmania to Indonesia. (IUCN, 2018). As per the published reports, in Indonesia Blue whales migrate from the Ombay strait to the Arafura Sea and not through the Rote Strait and Semau strait. (Khan 2005; Mulyadi et al. 2008; Salim 2011; Yusron. But local fishermen claim that one or two individuals (blue whale) between October to December across the Semau strait, annually. Research conducted by TNC in 2011 the team saw Pygmy Blue whale Crossing the Semau Strait from Rote Strait to ward Tablolong

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food during annual migration.

Not during the survey but presence is likely

A few Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria for CH either under Criterion 1 or Criterion 3. The DMU is

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The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

not considered CH for Balaenoptera musculus,

4 Thelenota ananas

Prickly Redfish

EN x

This species is found throughout the Indo-Pacific, on reef zone and along outer reef flats to depths of 35 m, but more common at a depth of 10-20 m. This species is commercially exploited to supply consumers worldwide. The population is estimated decreased by 80-90% or at least 50% (IUCN 2018) The species was observed during the marine study.

Based on marine survey only a limited presence is anticipated in the DMU.

Yes The species have wide geographical range and within Indonesia there are areas that hold a rich population of Thelentone anans namely Malucas and Papua. The DMU due to poor state of corals and human pressures over a long time is unlikely to meet the population threshold under Criterion 1 for Tier 1 or Tier 2 CH. The DMU is not considered CH for Thelenota ananas.

Rhincodon typus

Whale shark

EN x x The world’s largest living fish, the Whale Shark (Rhincodon typus), is a cosmopolitan tropical and warm temperate species has a circumtropical distribution through all tropical and warm temperate seas. Whale Shark distribution is likely to be temperature limited, as they are rarely sighted in surface cold water temperatures. Their core distribution is between approximately 30°N and 35°S, with occasional seasonal penetration to the north and south (Colman 1997, Rowat and Brooks 2012, Sequeira et al. 2014). IUCN 2018

Although habitat is present for the species, individuals are likely to only occasionally/rare visit the DMU for food during

No A very rare Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the

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Whale shark sighting can be found in many places In Indonesia Including Sawu Sea, Report sighting is in Alor Strait and most likely Kupang Bay. (IBAT 2018) Whale Sharks by catch in fishers’ nets was reported from Solor strait north of project site (Misool Foundation 2016) The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

annual migration.

population criteria for CH either under Criterion 1 or Criterion 3. The DMU is not considered CH for Balaenoptera musculus,

5 Stenella longirostris

Spinner Dolphin

DD In most tropical waters, nearly all records of spinner dolphins are associated with inshore waters, islands or banks. .(IUCN 2018) Most Spinner Dolphins feed predominantly at night, on small (<20 cm) midwater fish of many different families, squids, and sergestid shrimps (Perrin et al. 1973; Dolar et al. 2003). (IUCN 2018) The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not observed during the survey but presence is likely

Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria for CH under Criterion 3. The DMU is not considered CH for Stenella longirostris.

6 Stenella attenuata

Pan-tropical spotted dolphin

LC Stenella attenuata is pantropical, found in all oceans between about 40°N and 40°S. The range extends to some enclosed seas, such as the Red Sea and Persian Gulf, but does not include the Mediterranean Sea (Perrin 2001, 2002).(IUCN 2018) The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not observed during the survey but presence is likely

Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria for CH Criterion 3. The DMU is not considered CH for

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Stenella attenuata.

7 Steno bredanensis

Rough-toothed dolphin

LC The Rough-toothed Dolphin is a tropical to subtropical species, which generally inhabits deep waters of all three major oceans. Offshore Spotted Dolphins feed largely on small fish and mesopelagic fishes, crustaceans and squids and also flying fish. (IUCN 2018). The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not observed during the survey but presence is likely

Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria for CH Criterion 3. The DMU is not considered CH for Steno bredanensis

8 Grampus griseus

Risso’s dolphin

LC Risso’s dolphin is a widely-distributed, inhabiting primarily deep waters, from the tropics through the temperate regions (IUCN). The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU.

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not observed during the survey but presence is likely

Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria for CH Criterion 3. The DMU is not considered CH for Grampus griseus

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9 Tursiops truncatus

Bottlenose dolphin

LC Dolphins Bottlenose bottles are generally found in coastal areas, but sometimes they are in pelagic waters (Wells and Scott 1999). (IUCN 2018) Bottlenose dolphins live with other cetacean groups, including large whales and other dolphin species (Wells and Scott 1999). (IUCN 2018) Bottled dolphins consume a variety of prey species, mostly fish and squid (Barros and Odell 1990, Barros and Wells 1998, Blanco et al. 2001, Santos et al. 2001). They sometimes eat shrimp and other crustaceans. (IUCN 2018) The species was not observed during the marine study. However local fishermen have confirmed occasional dolphin presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not observed during the survey but presence is likely

Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria for CH Criterion 3. The DMU is not considered CH for Tursiops truncatus

10

Lagenodelphis hosei

Fraser’s dolphin

LC The Fraser’s dolphin distribution is poorly known. the species has a pantropical distribution, mainly between 30°N and 30°S in all three major oceans (Jefferson and Leatherwood 1994, Dolar 2002). (IUCN 2018) The species was not observed during the marine study. However local fishermen have confirmed occasional dolphin presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not observed during the survey but presence is likely

Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria for CH Criterion 3. The DMU is not considered CH for Lagenodelphis hosei,

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Tursiops aduncus

Indo-Pacific bottlenose dolphin

DD Indo-Pacific Bottlenose Dolphins generally live in shallow coastal waters on the continental shelf or around oceanic islands. They are sometimes in mixed groups with Common Bottlenose Dolphins and other dolphin species. They ate various kinds of demersal and coral fish and cephalopods. (IUCN 2018) The species was not observed during the marine study. However local fishermen have confirmed occasional dolphin presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not observed during the survey but presence is likely

Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria for CH

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Criterion 3. The DMU is not considered CH for Tursiops aduncus

12

Dermochelys coriacea

Leatherback turtles

VU The Dermochelys. coriacea is deep-diving marine turtle widely distributed in tropical, subtropical, and subpolar seas. Leatherbacks seasonally migrate between feeding ground areas, the nesting areas. Leatherbacks prey predominantly on salps and jellyfishes, and siphonophores. (IUCN 2018) Leatherback turtles population declined in the last three generations due to overexploitation of eggs and increased disturbance to the nesting beach and habitat degradation at sea, and also deaths from sinking due to entanglements in fishing nets. (IUCN 2018) The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not observed during the survey but presence is likely

Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria Criterion 3 for CH. The DMU is not considered CH for Dermochelys coriacea.

13

Lepidochelys olivacea

Olive Ridley turtle

VU The Olive Ridley sea turtle has a widely distributed in tropical, nesting occurring throughout tropical waters (except the Gulf of Mexico) and migratory in tropical and some subtropical areas. Breeding in nearly 60 countries. Migratory movements are less known than other marine turtle species. (IUCN 2018) Olive Ridley turtle population declines in the last three generations due to overexploitation of eggs and increased disturbance to the nesting beach and habitat degradation at sea, and also deaths from sinking due to entanglements in fishing nets. (IUCN 2018) The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

Although habitat is present for the species, individuals are likely to only occasionally visit the DMU for food

Not observed during the survey but presence is likely

Individuals are likely to pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population Criterion 3 for CH. The DMU is not considered CH for Lepidochelys olivacea.

14

Dugong dugong

Dugong/Sea Cow

VU Dugongs habitat coastal areas, shallow to medium deep, warm waters (15-17°C minimum), feeding on seagrass beds,

Although habitat is

Not observed

Individuals are likely to

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particularly low fiber species. Dugongs show significant variability in movement patterns and migration. . (IUCN 2018) The species was not observed during the marine study. However local fishermen have confirmed occasional presence in DMU

present for the species, individuals are likely to only occasionally visit the DMU for food

during the survey but presence is likely

pass through the DMU during annual migration. It is though unlikely that the DMU will meet the population criteria Criterion 3 for CH. The DMU is not considered CH for Dugong dugong

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15

Cymodocea serrulata Cymodocea rotundata Enhalus acoroides Halophila ovalis Syringodium isoetifolium Halodule uninervis Thalassia hemprichii

Sea Grass

LC x Seagrasses are one of the most rapidly declining ecosystems on Earth. These underwater marine coastal plants are losing 7% of their known area per year. This alarming loss was confirmed at the 11th International Seagrass Biology Workshop (ISBW11) in Sanya, China last month, where 100 leading seagrass scientists and conservationists met to discuss and update the global status of this critical habitat The results of seagrass research and monitoring by international scientists confirmed the global trend of continued seagrass habitat loss and degradation, driven by unsustainable practices in coastal regions including rapid development and pollution. Seagrass losses pose a further danger to already-threatened species that depend on seagrass for food and habitat, including sea turtles, dugongs and sea horses. Seagrass habitats are a nursery for many fisheries species and stabilize and filter shallow coastal environments. The food security of coastal people worldwide depends on healthy seagrass meadows. Additionally, ocean carbon is stored in seagrass meadows, preventing its release into the atmosphere where it would contribute to global climate change. Sawu sea in Nusa Tengara Timur (NTT) Province is in ecoregion of Sunda lesser, seagrass at sunda leser is ranked no 4 after ecoregion of papua, Arafura Sea and Sunda Shelf/Java Sea (see annex:2)

Based on marine survey for the project though the sea grass habitat is in fair condition with average coverage 29.87 %, the extent of sea grass in the DMU is very limited.

Yes See grass in the DMU is LC conservation status mostly less than 30 % /coverage

TheSea grass species in the DMU fall under LC category of IUCN. Sea grass found in Small patches with coverage less than 30 % in unlikely to meet criterion 4 for CH. DMU is not considered CH for sea grass.

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Pachyseris speciosa Porites annae Porites lobata Porites lutea Porites rus Favites abdita Favia pallida Favia rotundata

Hard coral

LC x The condition of coral reefs in the Savu Sea Marine National Park area varies from very poor to very good. The coral reefs in very poor 55.8% of the total coral area, moderate category is 39.2%, good condition 4.6% and conditions and very good 0.4%. The coral reef in good condition is at Rote Ndao District at Tesabela Village, and Onatali Villages and the Island of Ndo’o . The Coral reef condition in the DMU in poor with coral coverage less than 25 %. (marine study 20 The coral reef damage in the Savu Sea TNP area is generally caused by sedimentation (including resuspension), destructive fishing using bombs, poisons and anchor.

Based on marine survey coral reef habitat in poor condition only a limited presence is anticipated in the DMU

Yes The Hard Coral species in the DMU fall under LC and NT conservation category. The hard corals in DMU with less than 25% coverage are unlikely to meet CH under

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Favia speciosa Favia veroni Montastrea curta Favites flexuosa Galaxea astreata Galaxea fascicularis Hydnophora microconos Leptastrea transversa Millepora alcicornis Acropora gemmifera Acropora insignis Acropora secale Acropora millepora Acropora valida Acropora tenuis Acropora cytherea Acropora florida Astreopora myriopthalma Cyphastrea chalcidicum Echinophyllia echinoporoides Pocillopora verrucosa Pocillopora eydouxi Montastrea magnistellata Symphyllia valenciennesii

Category 4. The DMU is considered CH for had corals.

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Tubipora musica Seriatopora caliendrum Stylophora pistillata Stylophora subseriata Symphyllia agaricia Montastrea valenciennesi Montipora efflorescens Montipora floweri Montipora grisea Montipora informis Montipora peltiformis Montipora turgescens Pachyseris speciosa

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Cacatua sulphurea

yellow-crested cockatoo

CR x yellow-crested cockatoo the bird is critically endangered, in West Timor is estimated only 30-50 birds left in the wild (Balai Besar Konservasi Sumber Day alam NTT, 2018). in the past Tuadalae Lake wildlife reserve is one of their habitats but now the bird only can be found in Manipo and Harlu Wildlife Reserves at the Kupang District. (Balai Besar Konservasi Sumber Day alam NTT, 2018)

No No No presence of yellow-crested cockatoo is recorded in the project area or even in the Tuadale wild reserve. The species is unlikely to be present in the DMU. The DMU is not considered CH for Cacatua sulphurea

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Numenius madagascariensis

Far Eastern curlew

EN x x This species breeds in eastern Russia, from the upper reaches of the Nizhnyaya Tunguska river east though the Verkhoyarsk mountains to Kamchatka, and south to Primorye and north-eastern Mongolia (del Hoyo et al. 1996). The Yellow Sea region

No No Present at Tuadale wild reserve. and is likely in the

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of Democratic People's Republic of Korea, Republic of Korea and China is a particularly important stopover site on northward and southward migration. It has been recorded as a passage migrant in Japan, Brunei, Bangladesh, Thailand, VietNam, Philippines, Malaysia and Singapore, with up to 75% of the population wintering in Australia. The remaining proportion of the population winters in China, Indonesia, Papua New Guinea, and New Zealand (del Hoyo et al. 1996). (IUCN 2018)

DMU during lowest low tide for food. The DMU is unlikely to meet population threshold under Criterion 1 or 3 of CH. The DMU is not considered CH for Numenius madagascariensis.

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C. Socio-economic conditions

a. Population

322. District. Kupang District consists of 24 subdistricts and 177 villages, with a total population of 348,010 persons, living in 77,484 households (Kupang District Figures, 2016). West Kupang Subdistrict comprises 12 villages, with a population of 17,541 persons living in 3,984 households. 323. Project area and site. Lifuleo Village is located around 13 km from the West Kupang sub-district city, and 61 km from Kupang District city. It has an area of about 6.80 km2 or about 4.54% from the total area of villages in West Kupang sub-district. Lifuleo Village has 4 hamlets (Dusun 1 Nefo, Dusun 2 Tuadale, Dusun 3 Tuadale, and Dusun Panaf), 3 community groups (RW/Rukun Warga), and 12 neighborhood groups (RT/Rukun Tetangga). 324. The village topography is generally sloping, about 5 m above sea level. The village is classified as ‘Desa Swakarya’ (self-help village)11: able to fulfill its own needs, where surplus production (i.e. agriculture, fisheries) is sold to other regions. According to Government of Indonesia, Desa Swakarya can be characterized as: under influence from the outside or external influence leading to social change - a change in mindset; community/people adopt to changes regardless of customs/traditions; productivity increase; and facilities and infrastructure increase. 325. The total number of Lifuleo village households12 in 2014 was 275 households consisting of 257 of male-headed households and 18 female-headed households. This increased to 282 households in 2015: 263 male-headed households and 20 female-headed households. The average number of household members is 4. Most (99.74%) are Christians (Protestant) and 0.26% Catholic. Around 68.2% of the village population is engaged in swidden agriculture, followed by fishermen (24.9%), and business (4.8%). Other types of income generation are as civil servants, pensioner/retiree, and members of the local police force. 326. Education facilities are accessible within Lufuleo village from early childhood to primary school. Health facilities include: 1-unit Village Health Post (Puskesmas Pembantu/Pustu) and 4 units Neighborhood Health Center (Posyandu). There are also traditional birth attendants. 327. Accessible educational facilities are: one PAUD (early childhood education) in the Church, as well as a primary school located far from Panaf hamlet. A secondary school (SMP), is only available in the sub district city. Public transportation is not available in the hamlet, so children have to walk to school. The daily school routine is from 6 am to 2 pm including travel time. The community members, particularly the women, hope that there will be a school in their hamlet, at least a primary school. 328. Since 2015, electricity, especially for lighting, for 224 households is provided by PLN, while 55 households still use fuel lamps and torch (and/or “pelita/petromak/sentir obor”). Water sources are mainly from dug wells (227 households), pump wells (25), and spring water (30 households). For toilet facilities, about 211 households use their own latrines and 27 with communal latrines. Around 235 households in Lifuleo Village have houses made of permanent materials, while 3

11 East Nusa Tenggara Statistical Bureau document (West Kupang in Figure 2015). 12 West Kupang in Figure 2015, East Nusa Tenggara Statistical Bureau.

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households have semi-permanent houses. Around 60 households have television sets and parabola, and 250 households have mobile phones. 329. Village roads in this area comprise: asphalt 2.6 km; pavement 20.9 km, and dirt roads 4 km. Length of the roads regarding road management authorities cover: provincial level 4 km, district level 11 km, and village level 12.5 km.

b. Language

330. A language map of Timor presented below indicates that at the south-western tip of Timor, where the planned project is located, there is a language or dialect called “Helong”, which is only spoken by members of the local community Suku Minfini in this small part of the island of Timor.

Map -Languages of Timor (Source:

https://upload.wikimedia.org/wikipedia/commons/thumb/6/6d/Timor_Sprache_en.png/220px-Timor_Sprache_en.png)

c. Ethnic Groups/Minorities

331. Dusun Panaf, one of the hamlets of Lifuleo Village, has 37 households that consist of 34 male-headed households and 3 female-headed households (Damaris Saketu, Juliana Saketu, and Mama Naema). The customary community in Dusun Panaf is known as the Suku Minfini with three customary/suku leaders: Bapak Barnabas Minfini who lives in Dusun Panaf, Bapak Yonas Minfini also in Dusun Panaf, and Bapak Usias Saketu in Bolok.

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Figure 28: Bapak Barnabas being interviewed and expressing his views

during the consultation.

332. According to Bapak Barnabas, a local resident and head of Panaf hamlet, the Suku Minfini originally came from Timor Tengah Selatan/TTS (Suku Helong) and migrated to Pulau Semau. Their ancestor married with a woman from Panaf, hence their presence in the area. There are 3 marga (sub-suku, a clan/family) under Suku Minfini, i.e. Saketu, Tosi, and Minfini, all of them known as Suku Minfini.13 All of the land in the hamlet belongs to Suku Minfini, known as ‘Tanah Suku Minfini’ (customary land). All decisions regarding land use are discussed with the customary leader. 333. Community livelihood revolves around farming, fishing (seasonal), animal husbandry (cattle, goat, and pig), and seaweed farming. All 37 households are engaged in farming, while around 20 of them are seasonal fishermen, and 5 households conduct seaweed farming (data year 2016). 334. Crops (palawija) are corn and peanuts (ground nuts) harvested once a year on an average farming area of 1-2 hectares. In general, farming season is from October - March. Land preparation is around 2-3 months (October-November), planting in December, and harvesting from February-March. Seasonal fishing activity usually takes place from January - May. It is done by diving into the sea and catching fish using arrows called ‘nyilam’ (origin of the word “menyelam” - dive). 335. On the average, each household earns IDR 30 million from farming (corn and ground nuts) per cropping period. Aside from farming on own land, farmers also engage in ‘land borrow system’ (sharecroppers). Tenant farmers (sharecroppers) give part of their harvest as a form of rent. 336. During discussions, the community members uttered four priority issues: access to (i) clean water, (ii) electricity, (iii) roads (asphalt), and (iv) economic opportunities. Regarding

13 To date, Suku Minfini is still not listed as a customary community/IP in the AMAN website. Further clarification with AMAN

is still in the process.

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electricity, Lampu Pelita/Petromaks and/or genset/generators are in use. The present price of Genset/ generator rental excluding fuel is IDR 500,000/night.

d. Human health

337. The only health facility in Dusun Panaf is the Posyandu which is housed in the residence of the Head of the RT and health services are available only on the 17th day of each month. The Puskesmas (Community Health Center) is located in the sub district city - in a distance of around 15 km from Dusun Panaf. 338. The community largely uses potable water from an artesian well located 1 km from the settlement. The artesian well was built by the local government in 2007 and each household pays IDR 35,000 per month for operation and maintenance. About 70% of households have their own latrines, while the remaining 30% share with their nearest neighbor or the nearest forest (open defecation). 339. The community largely uses potable water from an artesian well located 1 km from the settlement. The artesian well was built by the local government in 2007 and each household pays IDR 35,000 per month for operation and maintenance. About 70% of households have their own latrines, while the remaining 30% share with their nearest neighbor or the nearest forest (open defecation).

e. Land Acquisition and Social Safeguards Issues

340. PLN conducted land surveys which resulted in a request to acquire about 60 hectares and additional 10 hectares for the whole power plant complex. The local people rejected the plan, because this plan would have impact on the church, graves and residential areas. The Minfini counter proposed that the project area be moved near/along the beach area. Specifically, the

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additional 10 hectares is located near the community settlement, thus the Minfini refused the request for the additional 10 hectares. An agreement with PLN for 40 hectares was reached.

Figure 29: Posyandu - the Health facility in the hamlet Panaf (Dusun Panaf)

341. The heads of the three tribes (Bp Barnabas Minfini, Bp Yonas Minfini, and Bp Usias Saketu) will decide amongst them in observance of traditional ceremonies with due consideration of three important places that shall be protected: Graveyard, Church and Residential areas. If these structures are endangered, the Minfini threatened to reject the proposed project. 342. About 70% of the identified 40 hectares required by PLN are non-farming land, generally rocky with overgrown thickets/vegetation, while the remaining 30% is farmland planted with corn and peanuts. 343. The Minfini valuate the land to be IDR 100,000/m2 for non-agricultural land and IDR 150,000/m2 for farmlands. They suggest that land turnover shall start with traditional ceremony as led by their custom leader. They further propose for PLN to employ 70% of Anak Suku (community) as workers in the PLN project. Compensation for trees/crops still has to be discussed. 344. The Minfini of Dusun Panaf are ready to accept the proposed project under the conditions described above. They also hope that the community will be provided with water supply, roads, electricity, and increased economic opportunities.

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f. Gender Aspects

345. In Panaf hamlet both men and women are involved in farming. Men are more involved in land preparation (land clearing) and spraying (grass). Both are involved in seeding/planting, maintenance, and harvesting. However, during the fishing season, women spend more time in farming compared to the men. Women wake up at 6 a.m. and do domestic work (collect drinking water, prepare breakfast, and child rearing) until 8 a.m. After domestic works are completed, they proceed to the fields for about 4 hours (8 a.m. to 12 a.m.). They take a break to rest and have lunch, and go back again to the field (3 or 4 p.m. – 6 p.m.). Men usually farm in the morning (8 a.m. to 12 a.m.) and take a rest until afternoon as they prepare for night fishing. In the tradition of the community, all domestic work is still the responsibility of women except under certain conditions, i.e. wife (women) is sick, pregnant, or giving birth; then the men will engage themselves in domestic work.

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ENVIRONMENTAL IMPACT ASSESSMENT AND MITIGATION MEASURES

A. Methodology

346. The planned Kupang 2 Peaker site borders the Kupang 1 Peaker and will share the following infrastructure that will be built as part of Kupang 1 project:

(i) Access road (ii) Jetty (LNG supply) (iii) LNG re-gasification and storage (iv) Power evacuation line (interconnection to the Timor transmission system) (v) Water intake facilities

347. The impact of construction and operation of this infrastructure will be assessed in the relevant documents for Kupang Peaker 1 Power Plant and is considered in this Kupang Peaker 2 EIA only if it affects the environment in a cumulative fashion with impacts of Kupang Peaker 2. In particular, since the construction of the jetty for LNG delivery will be completed before the start of Kupang Peaker 2 project, there will be no project activities directly impacting the coral reef and other coastal zone ecosystems in the project area for Kupang Peaker 2. This EIA, however, provides recommendations that will help PLN mitigate the impacts of construction of LNG jetty, on coral reef and marine ecosystem near the project area. PLN will implement these measures during the construction of LNG Jetty for Kupang Peaker 1 through the EPC contractor and the PLN local office under supervision of Sawu Sea Marine Park Authority, as specified in this EIA. 348. During the preparation of the EIA various environmental and social impacts on physical, natural, and human environment have been identified and evaluated, including cumulative impacts. 349. The assessment of environmental impacts is carried out through determination, description and assessment of the impact that the planned project has or could have during pre-construction, construction, and operation of the work regarding:

(i) the physical environment (geology, soil, surface and ground water, air quality, acoustic environment),

(ii) the natural environment (flora, fauna, habitats, protected areas and species), and

(iii) the human environment (health, livelihood, income, infrastructure, cultural heritage)

350. The following sections describe the expected impacts caused by the planned Kupang Peaker 2 for pre-construction, construction, and operation, and present mitigation measures in the form of an Environmental Management Plan (EMP) for their management. An Environmental Monitoring Plan (EMoP) is also presented that includes EMP implementation monitoring by direct supervision of construction activities and by periodic monitoring of relevant environmental parameters. 351. The EMP identifies the type of mitigation measures, where and when these measures are required, and which party is responsible for implementation and supervision. In relation to mitigation measures that relate to schedule and scale of construction, the EMP provisions needs

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to be detailed by the contractor in the form of site specific EMP that will be reviewed and approved by the PLN before commencement of construction. 352. For a 50 MW thermal power plant like Kupang Peaker 2, the most significant environmental impacts are usually air pollution, noise, and occupational and community safety during both construction and operation. Environmental impacts and mitigation measures for operational air pollution and noise have been quantitatively assessed using state-of-art mathematical models, AERMOD View 9.5 for air quality and using a 3D acoustic model for sound propagation for assessing and managing noise impacts. The findings of these technical studies are attached as Annex D (Air Quality Modelling) and Annex E (Noise Control Feasibility Study) to this EIA. The impacts on other environmental and social components were assessed qualitatively.

B. Assessment criteria

353. The predicted impacts of activities for the new Kupang Peaker 2 shall meet the requirements of the national laws and regulations, as well as the policies and guidelines of the IFC and ADB. When the requirements of national and international policies differ, the Project impacts will be managed by following the requirements that are more stringent. 354. The expected impacts caused by the planned project Kupang Peaker 2 are assessed for the pre-construction, construction and the operation phases, based on the baseline information and information from the technical planners. 355. The criteria for the analysis of the characteristics of potential impacts are described with regard to:

(i) Extent of the impact (location and size of the affected area); (ii) Magnitude and complexity of the impact; (iii) Likelihood/Probability of the impact; (iv) Duration, frequency and reversibility of the impact.

356. Impacts can range from insignificant to highly significant, and from short term to long term. Once the assessment of potential impacts has been completed, mitigating measures will be described to prevent or at least to reduce the potential significant impacts to acceptable levels. In practice, most of the impacts can be mitigated through the implementation of effective mitigation measures and by the application of best available technology. 357. The best possible measures available to achieve mitigation are identified on the basis of the principles of the hierarchy of mitigation. In order of preference this is:

(i) Avoidance (ii) Reduction (iii) Compensation (iv) Remediation (v) Enhancement.

358. For the pre-construction, construction and operation phases, an Environmental Management Plan (EMP) was prepared to define the necessary measures as well as activities, timing, and responsibilities. Environmental supervision and monitoring must be carried out during

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pre-construction, construction and operation phases in order to ensure that the required mitigation measures have been incorporated into the DED, that mitigation measures are implemented during construction and that the facility operates in accordance with the applicable standards for pollution control and operational safety.

C. Cumulative impacts

359. Cumulative impacts are impacts that result from overlapping effects caused by planned project together with other past, present or reasonably foreseeable projects or activities within the area of influence of the planned project. Typically, the assessment of cumulative impacts of the project is only conducted when:

(i) the project will result in a measurable, demonstrable or reasonably-expected residual environmental impact on a component of the biophysical or human environment; and

(ii) the project-specific residual environmental impact on that component does, or is likely to, act in a cumulative fashion with the environmental impacts of other past or future projects and activities that are likely to occur”.

360. Regarding the cumulative impacts of Kupang Peaker 2 during construction, other than planned development of Timor 1 and Kupang Peaker 1 power plants (latter under construction), there are no ongoing or planned construction activities that can cause cumulative environmental impacts with the Project. The construction of Timor 1 and Kupang Peaker 1 will be completed before commencement of construction of Kupang Peaker 2. Therefore, construction phase cumulative impacts are not relevant for Kupang Peaker 2. The EIA, though, recommends measures for minimizing and managing impacts of construction of LNG jetty for Kupang Peaker 1 with the objective that the construction of LNG Jetty follow good international practices. These recommendations are reflected in the corrective action plan (see EMP). 361. Any other impacts from the construction of Timor 1 and Kupang Peaker 1 will not be considered in this EIA, as these will take place before the construction activities for Kupang Peaker 2 commence. It is noteworthy in this context that the regasification facility for the Kupang Peaker 1 (that can also serve the needs for Kupang Peaker 2 by additional operational hours) is a small facility. Construction and operation of such facility does not have any significant impacts other than the usual impacts during construction, and fire and explosion safety during operation. The facility though needs to follow standard international standards for LNG facilities, and its safety should be demonstrated through a hazard analysis. A rapid risk assessment was conducted to identify operational risks of the facility (Appendix F). 362. The EPC contractor will be required, as part of the DED, to conduct an additional construction and operational risk assessment for the facilities of Kupang Peaker 2. This assessment will include a review of external safety risks, which covers the regasification facility of Peaker 1. In addition, PLN will commission an external safety audit of the proposed facilities for Kupang Peaker 2 at DED stage. The audit will also look at external hazards, including the regasification plant. The audit will be shared with PLN and ADB for review prior to approval of the DED.

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363. Some environmental impacts from operation of Kupang Peaker 2 may act in a cumulative fashion with the impacts from the operation of Timor 1 and Kupang Peaker 1 which will start running prior to the Kupang 2 project. 364. The following impacts on environmental components have been assessed for cumulative impacts:

(i) Impact on air quality (i) Impact on acoustic environment and (ii) Impact on marine environment due to increased frequency of operation of the

LNG tankers.

365. With regards to effluent discharge to the sea, the construction of Timor 1, Kupang Peaker 1 and Kupang Peaker 2 will take place at different time frames and therefore, as stated above, no cumulative construction phase impacts on marine environment are expected. During operation phase, treated effluents from Kupang Peaker 2 (<5 m3/day) will be discharged by discharge pipe, in the intertidal zone at a minimum of 200m from the nearest discharge location from Kupang Peaker 1. While laying the discharge line, care will be exercised that no important marine ecological features are disturbed. Due to small volume of discharge and spatial distance, no cumulative impacts are envisaged as a result of treated effluent discharge into marine environment. The EPC contractor will be required to conduct an assessment of the potential impacts of effluent discharge on the marine ecosystem as part of the DED, and to adjust project design and effluent pipe siting as needed.

D. Design Phase and Pre-Construction Impacts

366. In most projects the greatest opportunity to avoid or minimize environmental impacts is given during the technical planning phase. An environmentally sound technical planning, which demands a close cooperation between technical and environmental planners, can help to avoid big problems in the construction and operation phases. This approach following the principle “avoiding the emergence of problems from the beginning is better than repairing problems” also proved to be beneficial in many projects regarding public acceptance of a project and also regarding saving costs for trying to repair impacts. 367. For Kupang Peaker 2, though the EIA has been prepared in absence of project specific technical details, due to its similarity in design and location with Kupang Peaker 1, the lack of such information has not affected the pro-active planning for the project. Also, ADB’s involvement has facilitated in in-depth assessment of cumulative environmental impacts and proactive stakeholder consultation of effective management of construction phase impacts. 368. More detailed assessments of air quality and noise impacts will be conducted by the EPC contractor during DED. These are described in the next section of this chapter. 369. Labor mobilization shall be conducted by prioritizing local workers by suitability training the them during the construction of Kupang Peaker 1 and Timor 1 for work opportunities matching their skills and aptitude, this approach will increase the acceptability of the planned project by providing job opportunities and income. This approach also helps to minimize changes of social values and norms as a consequence of interaction between the local community members and outside workers.

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370. The specific instructions for the construction activities within the construction sites (clearing activities, cutting of trees, levelling, access road extension, power plant, deposit sites, etc.) will be detailed in an Environment, Health and Safety Plan, which will be set up by the implementing contractor (see below). 371. Earthquake risk. From the point of view of seismicity, the project is located in medium seismic risk zone. The contractor is required to incorporate the seismic risks while designing the structural features of the plant and ensure that national regulation in relation to seismic risks are complied with. The plant being located at a few hundred meters from the coast and at low elevation ranging from 9-12 m does have a risk of damage if a tsunami wave strikes the coast. The contractor while designing the plant will assess the structural risk due to tsunami and incorporate sufficient safety margins in the plant design. The contractor will also install advance warning signal for tsunami alert to warn the workers to take timely safety measures and construct a tsunami shelter at a nearby location at safer grounds. An emergency evaluation plan will be prepared for such an event. In addition, based on a cost-benefit analysis PLN will plan for LNG and HSD emergency scenario, in the event of a Tsunami event.

E. Studies and audits to be conducted during DED and pre-construction phase

372. The project will be implemented through an EPC contract. As part of (and as basis for) the DED, the EPC contractor will be required to conduct a series of assessments and studies relevant to pollution control and occupational and community safety. Key studies include the following: 373. The power plant including auxiliary facilities will be designed, built and operated by one main contractor through a DBO contract. Key environment and safety requirements have been included in the draft bidding documents for the DBO contract, as described below. 374. Operational noise impact assessment. The EPC contractor will be required to conduct a comprehensive operational noise impact assessment, to demonstrate compliance with (i) maximum sound pressure levels at 1m from any point on any item of equipment including valves (85dBA); maximum sound pressure level at site boundary (70 dBA during daytime and 60 dBA during nighttime); and (iii) maximum sound pressure level at nearest sensitive receptor (55 dBA during daytime and 45 dBA during nighttime), or a maximum increment of 3 dBA should baseline indicate exceedance with the standard. This noise impact assessment will be based on a new baseline noise assessment at key sensitive receptors. This requirement shall be defined in the BD for the EPC contract. 375. Air quality modeling in accordance with the configuration of equipment which will be used. The dispersion modeling shall indicate the maximum concentrations of pollutants of concern at site boundary and nearest sensitive receptors, and demonstrate that national air quality standards can be achieved. 376. Water supply study, including assessment of the existing intake facility of Kupang Peaker 2 to confirm adequate supply capacity and design complying with EHS Guidelines. In case an extension is required, the EPC contractor will identify modifications in its DED. The modifications will be based on survey works to provide sufficient data on bathymetry, tidal levels, ecology, and others for design of intake structures.

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377. Effluent discharge assessment, including identification of suitable discharge point to avoid any impact of corals and seaweed, and demonstrating that WWTP can achieve required effluent quality standard. 378. Detailed site investigation including soil analysis, ground elevation analysis, flood risk assessment, storm drainage analysis, and building condition survey along roads to be used by construction vehicles. 379. Operation hazard study, including fire and explosion hazard assessment and fire safety and gas detection proposal (fire detection and alarm system design); the assessment shall account for internal (i.e. within perimeter of Kupang Peaker 2) and external (e.g. LNG supply and storage system, regasification facility) hazards. The study should be based on the rapid assessment conducted (Appendix F) and demonstrate that the facility will not result in unacceptable risks to facility operators and nearby communities during plant operation. 380. Site-specific seismic hazard study including liquefaction study; 381. Air conditioning and ventilation calculation for all rooms and buildings; 382. Contractor Environment, Health and Safety Plan (EHS Plan). The EPC contractor will develop, and submit to PLN and ADB for clearance, their contractor EHS plan. The measures defined therein must follow the General IFC Health and Safety Guidelines and the IFC Environmental, Health, and Safety Guidelines for Thermal Power Plants. The plan will include, but not be limited to: (i) site regulations (covering security, occupational health and safety, gate control, sanitation, medical care, fire prevention, emergency preparedness and response) to ensure worker and community safety, and prevent accidents during construction works; (ii) earthwork management plan; Materials Management Plan, giving arrangements for supply of construction materials to avoid unnecessary stockpiling outside project site. (iii) waste management plan, for handling, transport, storage and disposal of solid and liquid wastes and hazardous materials at sites approved by local authorities; (iv) drainage plan, to ensure that construction works will not cause ponding or flooding at construction camp, temporary spoil disposal site, and other areas used for project-related activities and adjacent areas; (v) temporary traffic management plan, to control safe interaction of vehicular traffic and nearby communities during construction (vi) noise and dust control plan, to minimize impacts to sensitive receptors (residential areas, school etc.) due to construction works, sourcing and transport of construction materials, and other project-related activities. The EHS Plan will first be developed for the pre-construction and construction phase, but will eventually also include the operation phase (through the development of operational manuals for all processes of the plant, including emergency preparedness and response procedures, fire prevention and fighting procedures, etc). 383. Securing necessary permits. The EPC contractor shall obtain all required environmental permits prior to operation of any spoil disposal site and construction site. In addition, PLN will prepare, or commission separate independent entities to prepare, the following assessments and studies during (and prior to approval of) the DED:

a) Independent safety audit for the Kupang Peaker 1 facility, including LNG regasification facility.

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b) Survey to confirm that permanent jetty will avoid zones with sea grass and corals in construction, ensuring no significant impact on coral reef as well as sea grass habitat (mainly observed approximately 200 meters westward of the Project site).

F. Construction Phase Impacts

a. Earthwork, Material and Equipment Requirement 384. The Kupang Peaker 2 construction activities will involve civil works, including:

(i) earth works (clearing, grading, compacting, leveling, excavation and disposal of materials);

(ii) concrete works; (iii) construction of the buildings, connecting roads and internal pipelines; (iv) equipment delivery, assembling and tests.

385. Earthwork will involve site clearing, grading, compacting, living, excavation and disposal of excess excavated materials. Clearing will include removal and disposal of trees, bushes, hedges and other vegetation or organic materials, and rubbish, debris or other foreign materials at grade. Grubbing will include the removal and disposal of stumps, large roots, buried logs and other objectionable materials below ground surface. Stripping will consist of removing all organic matter, rubbish and organic topsoil. 386. Materials and water requirement for construction of Kupang Peaker 2 is considered to be similar to Kupang Peaker 1. This assumption is considered appropriate for estimating the vehicle trips, deployment of construction machinery and wastewater generation that give rise to key construction phase impacts in terms of air quality, noise and water quality. 387. Table 25 provides the estimated requirement for construction materials for Kupang Peaker 2 in terms of sand, gravel, bricks, wood, concrete, steel and concrete (ready mix). Transportation of this material will primarily be by road. The material will be sourced from licensed providers located at an approximate distance of about 15 km from Panaf village. Some of building materials such as cement (ready mix), steel and wood, will be procured through a third party or distributors in Kupang. 388. Transportation of the construction material will result in a total of 1150 truck trips spread over the construction period of 18 months. Bulk of these trips will take place during the peak construction period of 6 months at an average of about 120 trips per month, with a maximum of 10 trips per day. In addition, 3 water tanker trips per day will be required to supply construction phase water requirement of 20.6 m3/day.

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Table 25: Construction material requirement for Kupang Peaker 2

NO. DESCRIPTION UNIT VOLUME

TRANSPORTATION

TYPE VOLUME

TRANSPORT FREQUENCY

(TIMES)

1.

Sand M3 300 Truck

8 M3

38

2.

Fine Granular material for working pavement

M3

50 Truck 8 M3 7

3.

Gravel for working pavement

M3 30 Truck 8 M3 4

4.

Steel bar Ton 500 Truck 8 Ton 63

5.

Concrete (ready mix) M3

3,600 Truck 5 M3

720

6.

Brick Piece 1,250,000 Truck 4,280 293

7.

Wood Ton 10 Truck 5 M3 2

8.

Plywood Piece 1,500 Container 100 15

389. Heavy equipment and plant components for Kupang Peaker 2 will be transported by sea route and delivered at the temporary jetty. Temporary jetty constructed for Kupang Peaker 1 will be used for Kupang Peaker 2 and no new jetty construction will be required Table 26 presents the key construction machinery that will be deployed at the peak construction phase lasting for 6 months. Table 26 also provides noise emissions specification, their acoustic usage factor and hourly equivalent noise specifications for each of the machine units and the number of units that are likely to operate during peak construction period. 390. The impacts caused by construction phase activities though are temporary and will last at their peak intensity for about 6 months, all significant impacts need to be suitably mitigated. Following sections assess these impacts and recommend measures for their effective management. The EPC contractor is required to detail these measures in the EHS Plan in terms of site-specific mitigation measures and seek PLN’s approval before commencement of construction.

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Table 26: Main construction machinery deployment during peak construction period (Reference noise emissions: FHWA Highway

Construction Noise Handbook, August 2006)

. No,

Construction Machine Unit

Number of Units

Acoustic Usage Factor (%)

Noise Specifications (Lmax @ 15.2 m dB(A))

Noise Specifications (Leq(hr)@15.2m dB(A))14

1 Excavator Mounted Pneumatic Hammer

3 20 90 83

2 Bulldozer 3 40 85 81

3 Excavator 3 40 85 81

4 Dump Truck 3 40 84 80

5 Generator 1 50 82 79

6 Cement Mixer 1 40 85 81

7 Wheel Loader 3 40 82 78

b. Physical Environment

Geology and soils Impacts:

391. General geology is not affected by the planned project. Although, part of the surface strata is composed of hard rock beneath, the project will not engage any blasting during construction. Excavator mounted pneumatic hammer will be used for rock cutting. 392. Soil can be affected in three primary ways: loss of topsoil and natural soil functions due to ground clearing and sealing for construction sites and roads, soil densification and disturbance by heavy machinery and contamination from accidental spills. 393. Erosion must be expected at open, especially sloping areas, wherever the natural vegetation cover has been removed. Given the small footprint of the project and relatively flat terrain of construction site and rocky substrata, soil erosion risk during the construction phase is considered low. Mitigation measures to control soil erosion from the site have been included in the EMP in line of good engineering practice that further lower the impacts. 394. Direct runoff from the construction site into the sea in case of heavy rain events may have negative impacts on marine habitat. Considering that the site drains into Sawu Sea National Marine Park, there is a need to employ adequate precautions to arrest sediments in runoff from the site before it enters the coastal sea. Mitigation measures

395. The following measures are included in the EMP and will be included in the bidding document for the EPC contract:

14 Leq(hr)=Lmax -10 Log10(Acoustic Usage Factor (%)/100)

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396. The contractor shall notify the Owner in writing at least 3 working days prior to the start of earthwork and submit for the Owner’s approval a plan of operation with complete details of the method of excavation, type of equipment to be used, proposed method of diversion of drainage, safety measures to be applied, and others. 397. Excavation slopes shall be protected and supported, where required, so that the slopes and bottoms will be maintained so that adjacent structures or other construction and workers will be protected from damage caused by any earth or rock movement. 398. Trees shall be felled in such a manner as not to damage trees or other vegetation indicated to remain in place, not to damage existing structures and facilities, nor constitute a hazard to traffic or occupational safety. No trees shall be cut outside the clearing limits and all trees designated by the Owner to be left intact shall be protected from damage by the contractor. 399. No explosives shall be used for any construction activity for the project. 400. Soil densification and disturbance due to heavy machinery must be avoided outside of construction sites and access roads by installing warning signs and warning tapes and routine monitoring during the construction. 401. Topsoil shall be recovered from temporary or permanent project sites before the ground is disturbed and then stored until it is needed for rehabilitation measures at the end of the construction activities. A topsoil storage and management program shall be developed by the contractor. The exposed surfaces will be regreened by a suitable vegetation cover soon after completion of construction using the stored topsoil. 402. No grading and earth moving shall start in any area until clearing, grubbing and stripping have been completed for that area. 403. All materials excavated during clearing, grubbing and stripping operations that cannot be reused internally shall be disposed in disposal areas designated by the Owner and with the necessary environmental permits. 404. The contractor shall construct temporary drainage ditches, culverts and other structures as required to divert/drain water from the work areas. A pond shall be construction to treat surface runoff prior to discharge to the environment. No surface runoff shall be ponded or restructured to a greater degree than would have occurred naturally before construction. The contractor shall control suspended solids concentration of discharge water to below 50mg/L in order to prevent pollution in the receiving water bodies. 405. Incidents with unintended release of hazardous materials (e.g. fires, spillage of fuel, hydraulic oil, paints, etc.) may always occur. Spill kits shall be available in all transport vehicles and at the construction site. A pollution prevention and response plan must be set up by the contractor describing timely applied protection measures against spills. Training must be provided for all drivers and equipment operators.

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Surface and Ground Water Impacts: 406. Within the project site impacts on surface and ground water quality may be caused by construction works, vegetation clearing activities, and land levelling. This impact however is not considered to be relevant, as the project site is located near the coast and ground water is expected to be in the mixing zone between sweet and salt water. And there are no permanent surface water bodies in the project area of influence. 407. Waste and wastewater from the construction workers camp may constitute a source of marine water pollution. The impacts caused by these activities are temporary in nature (only during construction phase) and can be mitigated with proper measures applied. 408. The water for construction is estimated to be 20.6m3/day and will be sourced from outside the project area. It will be ensured that water resources used by Panaf and adjoining villages along the access road are not used for construction purpose. During operations 30 m3/d of sea water will be abstracted and undergo desalination to meet the operational requirement of the Project. The pipe line for drawing the water will be securely anchored with the LNG jetty or on marine buoys along an alignment that will avoid areas of sea grass or corals to sea abstract water at suitable depth. The water will be abstracted through a collector tub to ensure that the intake velocities are within 0.15m/s and no sea biota is sucked into the intake pipe. Mitigation and monitoring 409. The surface runoff from the project site will flow into the utilization zone of LSMNP. For protection of coastal water quality and to ensure no measurable water quality impact of coastal waters, the contractor will implement a combination of mitigation measures. These measures will comprise, (i) maintaining a 20 m wide vegetation buffer between the project coast line and coastward boundary of construction, (ii) channelize all site run-offs through a sedimentation basin with oil separator with a minimum retention period of 60 minutes and (iii) providing two layers of geotextile rolls in the effluent channels leading to sea to arrest any residual suspended solids. The geotextile rolls will be periodically replaced and cleaned. The contractor will ensure that the suspended solids in run-off from the site are below 50mg/l (IFC EHS guidelines). 410. The grey (Kitchen and bathing area) wastewater from workers’ camp (150 workers during peak construction) will pass through a grey wastewater treatment system (oil and grease trap and rock filter) and stored at site in a pond/lined pit for re-use for dust suppression and landscaping. When not required the water will overflow through a gravity fed sand filter to drainage line leading to sea. The wastewater for washing of vehicles will have provision of oil separator before joining the greywater stream. 411. Sewage during the construction (<5 m3/d) will pass through a septic tank and subsurface constructed wetland. The effluents from the wetland will join the grey water treatment effluents pond and will be discharged into sea only when not required for dust suppression or landscaping purpose. The wastewater will comply with the requirements of Indonesian Environmental Regulation for wastewater standard (regulation of the Minister of Environment No. 08 Year 2009

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on Wastewater Quality Standard for Thermal Power Plant Businesses and/or Activities) and the IFC EHS guidelines for thermal power plant. 412. During operations, a wastewater treatment plant (WWTP) will be built with capacity of 5 m3/day. The treatment plant will have provision of a pre-treatment facility for process water by way of oil separator and sediment tub. Following this the process water along with sewage will pass through a wastewater treatment system to ensure that the plant effluents meet the wastewater effluents standards set out in this EIA (Table 5), complying with the requirements of Indonesian Environmental Regulation for wastewater standard (regulation of the Minister of Environment No. 08 Year 2009 on Wastewater Quality Standard for Thermal Power Plant Businesses and/or Activities) and the IFC EHS guidelines for thermal power plants. The constructed subsurface wetland used for construction phase wastewater treatment could be continued as treatment system during the operations. 413. After establishing the functionality of wastewater treatment system. water quality monitoring (sea water quality at the coast south of the PP) will be conducted weekly during construction and operation of the power plant. The samples will be collected at 100m into the sea from the wastewater discharge point. The monitoring parameters for water quality must include all the parameters as set out in Table 5 of the IFC Environmental, Health, and Safety Guidelines for Thermal Power Plants, including temperature and for sanitary wastewater, as set out in the IFC General Environmental, Health, and Safety Guidelines on water, including faecal coliform. Before commencement of construction the contractor will establish baseline sea water quality by analysing sea water samples for above listed location and location.

Air Quality and Noise Impacts: 414. Impairments of air quality will be caused by levelling activities as well as equipment and material transport during the construction phase of the project. Dispersion of dust generated by project vehicles and movement of materials such as cement, sand, gravel, etc. cause decrease in quality of air in the vicinity of project location. Generally, there will be an increase of pollutants from vehicles in the form of CO (Carbon Monoxide), NO2 (Nitrogen Dioxide), SO2 (Sulfur Dioxide), HC (Hydrocarbons), and Dust (Particulate Matter). The density of traffic for movement of construction material, 10 to 15 trucks per day is too low to cause air pollution issues in terms of gaseous pollutants. The approach road to project site has been paved that eliminates dust suspension. Vibrations due to movement of material laden trucks could though be an issue that requires mitigation. Dust from the construction site is a minor impact due to rocky substrata and a distance of more than 700m to the nearest settlement of Panaf village. Dust suppression measures though have been recommended to further control dust impacts. Benchmark for measuring this impact is the quality standard of air quality based on Government Regulation No. 41 of 1999 and the respective IFC guidelines. 415. Noise impacts due to operations of construction machinery have been estimated by placing 3 assemblies of equipment comprising one unit each of pneumatic hammer, excavator, bulldozer, dump truck and wheel loader at an interval of 100 m on the site. These three assemblies are supported by 1 cement mixer and 1 generator. This is estimated to be maximum equipment

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deployment during the site levelling and foundation work for the plant, the noisiest construction phase activity. 416. The noise levels at the nearest sensitive receptor. Panaf village located 700m from the project site have been estimated using the following equation:

𝐿(𝑟𝑒𝑐) = 𝐿(𝑟𝑒𝑓) − 10 𝑙𝑜𝑔10(𝐷(𝑟𝑒𝑐)/𝐷(𝑟𝑒𝑓)) - Aats - Agr - Amics

Where:𝐿(𝑟𝑒𝑐): 𝐻𝑜𝑢𝑟𝑙𝑦 𝑒𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡 𝑛𝑜𝑖𝑠𝑒 𝑙𝑒𝑣𝑒𝑙 𝑎𝑡 𝑡ℎ𝑒 𝑟𝑒𝑐𝑒𝑝𝑡𝑜𝑟 𝐿(𝑟𝑒𝑓): 𝐻𝑜𝑢𝑙𝑦 𝑒𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡 𝑛𝑜𝑖𝑠𝑒 𝑙𝑒𝑣𝑒𝑙 𝑎𝑡 𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒

𝑓𝑟𝑜𝑚 𝑠𝑜𝑢𝑟𝑐𝑒 𝐷(𝑟𝑒𝑐): 𝐷𝑖𝑠𝑡𝑎𝑛𝑐𝑒 𝑜𝑓 𝑟𝑒𝑐𝑒𝑝𝑡𝑜𝑟 𝑓𝑟𝑜𝑚 𝑆𝑜𝑢𝑟𝑐𝑒, 15.2 𝑚

Aats : 𝐴𝑡𝑡𝑒𝑛𝑢𝑎𝑡𝑖𝑜𝑛 𝑑𝑢𝑒 𝑡𝑜 𝑎𝑡𝑚𝑜𝑠𝑝ℎ𝑒𝑟𝑖𝑐 𝑎𝑏𝑠𝑜𝑟𝑝𝑡𝑖𝑜𝑛 Agr : 𝐴𝑡𝑡𝑒𝑛𝑢𝑎𝑡𝑖𝑜𝑛 𝑑𝑢𝑒 𝑡𝑜 𝑔𝑟𝑜𝑢𝑛𝑑 𝑒𝑓𝑒𝑐𝑡𝑠

Amics: : 𝐴𝑡𝑡𝑒𝑛𝑢𝑎𝑡𝑖𝑜𝑛 𝑑𝑢𝑒 𝑡𝑜 𝑚𝑖𝑠𝑐𝑒𝑙𝑙𝑒𝑛𝑒𝑜𝑢𝑠 𝑜𝑡ℎ𝑒𝑟 𝑒𝑓𝑓𝑒𝑐𝑡𝑠

417. The noise for multiple sources – 3 machine unit assemblies as described above - are aggregated by logarithmically adding the noise levels due to individual assemblies. It is assumed that the machine unit assemblies are place at a distance of 100 meters from each other. The nearest assembly being at a distance of 750m from the nearest houses and Panaf Village. 418. Attenuation due to atmospheric absorption, ground and miscellaneous effects is assumed to be 2 dB(A) up to 100m, 3 dB(A) up to 400m and 5 dB(A) at longer distances. These are conservative assumptions given the long distance to the receptor over vegetated soft ground.

419. Based on above equations, emission characteristics for construction machinery, machinery deployment schedule and noise attenuation assumptions,

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Table 27 presents the predicted noise levels at various distance from the construction site.

420. From

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Table 27, it is observed that noise levels at the Panaf village for operations of any construction equipment assembly individually or in combination are within the daytime standards of IFC EHS guidelines (55 dB(A), hourly equivalent). During the night time 10pm to 6am, no noisy operations will be permitted and therefore night time standards are not applicable for construction phase impacts.

421. The shortest distance to mangrove beach, the other sensitive receptor near the project site, is about 250m from the site boundary. It is observed from

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Table 27 that noise levels at this receptor exceed 55 dB(A). However, the mangrove beach is a long beach and the region frequented by the fishermen is further away and is not likely to be adversely affected. Air China beach located at a distance of about 1500m from the site will not experience any elevated noise due to the construction activities.

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Table 27: Predicted noise levels at various receptor distance from plant boundary

Sr. No.

Distance to Receptor from Site Boundary

(east)

Noise Levels at Receptor Leq(hr) dB(A)

m Assembly 1

in Operations Assembly 2

in Operations Assembly 3

in Operations Cumulative

Impacts

1 0 70.6 64.6 61.0 71.9

2 50 66.1 61.6 58.7 68.0

3 100 63.6 60.0 57.5 65.9

4 150 61.6 58.7 56.5 64.2

5 200 60.0 57.5 55.6 62.9

6 250 58.7 56.5 54.8 61.7

7 300 55.5 53.6 52.0 58.7

8 350 54.5 52.8 51.3 57.8

9 400 53.6 52.0 50.7 57.0

10 450 52.8 51.3 50.1 56.3

11 500 52.0 50.7 49.5 55.6

12 550 51.3 50.1 49.0 55.0

13 600 50.7 49.5 48.5 54.4

14 650 50.1 49.0 48.0 53.9

15 700 49.5 48.5 47.6 53.4

422. The noise levels at the plant boundary exceed the threshold of 70 dB(A) marginally (shown in red font in

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Table 27). Since the noise levels exceed the standards only for operations of construction assembly 1 and in the cumulative mode and fall below the standards within a few meters, no noise mitigation measures are recommended in EIA. The EPC contractor will be required to conduct weekly noise monitoring during daytime and nighttime at nearest sensitive receptors to demonstrate compliance with the IFC EHS standards. These results will be verified by the independent environment monitor. Should non-compliance be observed and should these be attributable to the project activities, the contractor will be required to implement additional noise mitigation measures. 423. Vibration impacts due to construction at project site are not considered to be significant due to rocky substrata and large distance to nearest settlements. 424. In addition to operations of construction machinery, noise and vibrations will be caused by movement of construction vehicles along the approach road. The frequency of movement of construction vehicles (15 movements/day) is too low to cause any noise impacts. During the consultations, villagers have complaint about vibration impacts. There is a need to mitigate these impacts by restricting the speed of construction vehicles while passing through the villages. Also, structural safety of structures near the road needs to be examined before commencement of construction. It is to be ensures that the vibrations due to passage of vehicles are well within the safe limits for these structures. Mitigation and monitoring 425. In dry periods of the construction phase, when dust is visible, dust control measures are required, including wetting of dirt roads and construction sites. The contractor has to provide truck mounted water sprinkler for dust control and apply water a minimum of 2 times a day or more often if required, on the dusty surfaces during the dry periods. 426. Vehicles and equipment that burn fuel will have exhaust emissions, however using up-to date equipment and keeping engines in good conditions will reduce emissions to the possible minimum. 427. Constructor will exercise speed control measures (10 km per hour within the construction site, 30 km per hour on the access road to the construction site and 15 km/hour for material laden construction vehicles while passing through settlements along the access road). to minimize dust, noise and vibrations due to traffic and also lower the risk of accidents. Contractor will also set up a traffic management plan is to monitoring that the speed limits are adhered to. 428. Noisy construction activities shall be limited to daytime (6:00 a.m. to 10:00 p.m). Before commencement of construction, the contractor will undertake a 48 hours noise survey at the site boundary and the Panaf village to establish the baseline day and night noise conditions. Care will be exercised to ensure that these observations are not influenced by any ongoing temporary construction near the site. 429. Weekly monitoring of noise will be conducted by the EPC contractor during the whole construction phase at site boundary and nearest sensitive receptors to demonstrate compliance with the IFC EHS standards. These results will be verified by the independent environment monitor. Quarterly monitoring by the UIP for 48 hours duration, during the peak construction

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period, will be sufficient to verify the internal monitoring conducted by the EPC contractor. Additional monitoring will though be conducted, as needed, in case complaints are received from of local residents. 430. Before commencement of construction, the contractor will undertake a structural survey of sensitive houses/structures (structurally weak) along the approach road and determine the safe vibrational limit for these structures. During the construction phase, the contractor will install vibration monitors at a sensitive receptor in Panaf hamlet, and will ensure that vibrations at the sensitive receptors are within the safe limits. As a precaution and for traffic safety, all vehicles carrying construction material will maintain a speed limit of 15 km/hour while passing through the villages. The approach road through the villages have already been paved and it is expected that with recommended speed control, vibrations caused by the passage of construction vehicles will be within safe limits. In the event of any complaints from the villagers, contractor will take appropriate additional measures to address the grievance.

c. Natural Environment Impacts 431. The construction phase activities that impact natural environment in an around project site can be grouped in three categories; (i) the activities that will take place near the coast and in coastal sea and could directly affect the marine environment. (ii) activities that will take place on land but the impacts could be carried to marine environment and (iii) the activities that will take place on land and will only affect the terrestrial environment. 432. As explained earlier, Kupang Peaker 2 is bordering the 1.5 km wide utilization zone where water abstraction and treated wastewater discharge meeting the national effluent standards is permitted. The project itself will have a very limited marine footprint by way of water intake pipeline extending up to about 50 m into the sea from the lowest low tide line and an effluent discharge line discharging within the intertidal zone. Sea water requirement for the project is 100m3/day or 70 liters/min and a pipeline of 10cm diameter will be more than sufficient for the purpose. The pipeline can be anchored with the super structure of LNG jetty or could be anchored on marine buoys minimizing the marine impacts of the project. 433. The treated wastewater volume will be less than 5m3/day and it will be discharged through a buried pipeline in the intertidal zone along with the RO reject water of 70m3/day. A discharge line of 15 cm diameter will be sufficient for the purpose. Due to its low volume, this discharge with total dissolved solids of about 46,000-50,000 mg/l will not lead to any significant localized impacts on coastal salinity. The runoffs from the site will be channelized through a sedimentation basin and will further be filtered through geotextile filters before reaching the coastal waters. A 20 m wide buffer of existing coastal vegetation will be maintained between the construction site and the sea to further lower the impacts of project on marine habitat. 434. The project barring the loss of vegetation due to site clearance does not have any measurable primary impact on terrestrial habitat outside the project boundary. A buffer of about 100m exists between the construction site and western tip of Tuadale lake wildlife reserve. There could though be secondary impacts on wildlife and mangrove forests by way of poaching and felling of trees by the construction workers. These impacts need to be managed by following good

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construction practices and exercising strict vigilance on activities of construction workers. The air quality and noise impacts are likely to extend to a few 100 meters but are within the applicable standards at all points outside the project boundary. 435. Kupang Peaker 2 will use the same jetty for receiving LNG as Kupang Peaker 1. There will not be any additional construction impacts for the Project due to jetty construction or augmentation of LNG transfer capacity. This EIA though assesses the likely impacts of construction of LNG jetty for Kupang Peaker 1 and recommends mitigation measures. The purpose of this exercise is to follow good construction practices for conservation of natural habitat while constructing the LNG jetty that will be an existing facility for Kupang Peaker 2. 436. The design of LNG jetty for Kupang Peaker 1 though has not been completed. The LNG jetty though will be located south of coal jetty for Timor1, towards open sea in coastal area that is expected to have lesser coral formation. Following a conservative approach, though, it is assumed that the LNG jetty alignment will have similar underlying coral formation as the jetty to receive coal for Timor 1. Furthermore, for the purpose of assessment of impacts of jetty construction on coral reef and their mitigation, it is assumed that the LNG jetty will be of similar dimensions as coal jetty for Timor1. 437. According to the AMDAL for Timor 1, the trestle area for jetty including the approach and docking area is 1,664 m2 that is supported by 138 piles each of diameter 0.514m. Therefore, the maximum coral reef area that could be directly affected by construction of Timor 1 jetty was estimated to be 28.6 m2. This estimate assumes that all piles will be on coral reef which is a conservative assumption of direct impact to coral reef. However, during the driving of piles, due to suspension of sediments, some additional area of coral reef is likely to get damaged. This EIA therefore multiplies the area of damage with a factor of 4 and estimates maximum probable damage to coral reef as 100 m2. Mitigation and Monitoring 438. Rehabilitation of corals to compensate for the damage during the construction of LNG jetty is one of key mitigation measures. Coral rehabilitation will be done by PLN, under supervision of SPAMA, by engaging an agency experienced in marine survey and coral rehabilitation. The tasks will involve (i) a preliminary survey of seabed along the conceptual jetty alignment to assess likely damage to corals and suggest changes in alignment, as feasible, to reduce the impact (ii) to undertake a baseline survey on corals recording the species and status of corals along the final jetty alignment, 2 to 3 months before the commencement of construction work for jetty. This survey will cover a seabed area twice the size of the trestle area of LNG jetty, (iii) to undertake a post construction survey of seabed to assess the damage to corals due to construction of jetty. This survey will be completed within two months of completion of construction, (iv) to undertake rehabilitation of corals, 120% of the estimated damage under step (iii) and (v) to undertake six monthly surveys of coral rehabilitation until a growth of 1 cm is achieved for rehabilitated corals (this is expected to be achieved in one year after completion of rehabilitation). 439. The seabed surveys and coral rehabilitation process and costs were discussed with SPAMA during consultation on May 15, 2018. The cost of surveys (5 surveys) and coral rehabilitation is estimated to be IDR 600 million ($42,000) and IDR 500 million ($35,000), respectively. The rehabilitation cost estimate is provided for rehabilitation of 120m2 of corals.

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440. Noisy construction activities will be limited to daytime (6:00 a.m. to 10:00 p.m.). Based on the noise modelling, if the construction machinery is well maintained and comply with the standard noise emissions, no additional noise control measures are required during construction phase. Addition noise control by way of noise barriers or use of noise dampeners at source will be required, if levels exceed the standards at the receptors, and if there are complaints from public. 441. Certain amount of hammering will be required for piling during the construction of LNG Jetty for Kupang Peaker 1. Care will be exercised not to undertake the piling works during cetacean migration period (October to December and March to May)15. In addition, silt curtains around the piles will be used to minimize suspension and spread of sediments in corals. 442. The area of the construction activities will be limited to the absolutely necessary. Fencing or other marking will be provided to guide the workers to confine construction activities to designated sites. Loss of trees will be compensated by planting of new native trees in a ratio 1: 2 (for one lost tree 2 young trees will be planted). The contractor will be required to assess as part of the DED site assessment the impact on forestry resources, and to identify the need for compensation replanting. 443. The contractor will maintain strict vigilance to minimize the secondary impacts on Tuadale Lake Wildlife Reserve by way of cutting of trees and poaching of wildlife by the construction workers. 444. The contractor will ensure that construction workers are not illegally poaching, collecting birds or other wildlife for sale, or fishing (e.g. with explosives or poison) or damaging the coral reefs (e.g. selling of corals to tourists) or the seagrass areas. Strict penalties will be imposed on offenders. These penalties will be decided by contractor in consultation with PLN and submitted to ADB for approval before commencement of construction. 445. PLN will engage a team of marine and terrestrial biodiversity experts (two experts) who will visit the site every three months during construction period to observe and report compliance with restriction on poaching of wildlife. During each visit, the team will directly engage with the workers to help enhance their aware of importance of conservation and sensitize them for the correct response in case during the course of their work they encounter wildlife or observe red-listed marine species. 446. The contractor will be required to meet the applicable national/international regulations, as presented in this EIA, with regards to effluent discharge, noise emissions and air emissions, during the construction (and operation) phase. In addition, silt screens and/or silt curtains will be used to prevent significant flow of sediment from land to sea during construction, in particular to prevent impacts to corals. 447. Littering and deposition of solid waste must be prevented, especially in the coastal area by setting up solid waste bins, which are regularly emptied. The contractor will separate the recyclable waste from organic waste. Recyclables will be sold to licensed waste handlers and organic waste will be composted at site and used for landscaping and/or soil enrichment.

15 This is a precautionary recommendation. The actual period of cetacean migration through the DMU is expected to be shorter and should be determined by holding additional consultations with the local fishmen.

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Daily monitoring of the construction activities, including the practical application of the EMP, will be the responsibility of the contractor, who has to include a local environmental and social expert in his site supervision team. In addition, regular construction site controls by the PIC, PLN and/or a contracted environmental monitoring expert shall be undertaken at least quarterly.

d. Human Environment (Socio-economic resources) Impacts 448. PLN will acquire 52 hectares of land for the power plant complex and Kupang Peaker 2 will be built within the complex after the other 2 facilities have been constructed. Of the 52 ha, the ADB-funded Kupang Peaker 2 will require ca. 5 ha. A total of 9 households (41 persons) of the Minfini ethnic group (will be affected by the project by loss of farmland (43,100 m2), 6 secondary structures (69 m2) belonging to 6 AHs, 143 timber trees owned by 6 AHs, 33 fruit trees owned by 5 AHs, and 55,450 m2 of croplands (multiple crops planted on a rotational basis by the 9 AHs). Six AHs are deemed vulnerable and all 9 AHs will be severely affected. These issues are covered under social safeguards for the project. 449. The project will create numerous temporary job opportunities for local residents during the construction phase and a few permanent opportunities during the operations. This is a positive impact of the Project for the local inhabitants. However, incidents can happen at anytime and anywhere on or near the site because of carelessness. Consequently, such incidents can cause a heavy burden on the society and family of affected people. 450. Accident risks will be unavoidable due to operation of construction equipment and other construction activities. Risks due to fires, traffic accidents and occupational accidents may also cause injuries of workers and local people. Development and strict compliance with safety regulations will minimize incident risks. 451. The establishment of worker camps and the presence of workers from abroad can potentially disrupt existing social networks and traditions. There will be a temporary increase in population as workers will live in the area during construction phase. It is envisaged that project will hire local workers and for the purpose provide training to local inhabitants for the right skills (contractor will provide necessary training to suitable persons), which can benefit the local economy. 452. The risk of accidents, especially on the access road to and through Panaf hamlet, will increase due to the construction traffic. Workers may disturb the way of life of the local population, due to the influx of money, communicable diseases, behavior, cultural or religious differences, etc. 453. The Indonesian legal framework requires contractors to (i) provide workers with safe and healthy working conditions and prevent accidents, injuries, and disease; and (ii) establish preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities.

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454. In addition to the requirements on worker safety through the national Law on Labor, PLN has issued its internal policy that requires contractors to provide PLN workers with safe and healthy working conditions and prevent accidents, injuries, and occupational disease. It also requires the establishment of preventive and emergency preparedness and response measures in PLN. This decree applies for employees and labors in all units of the company. 455. Additionally, national laws on disaster management provide for the protection of communities through disaster risk management measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities. For this project, a series of measures are identified in the EMP to address occupational and community health and safety. These are described below. Mitigation and Monitoring 456. The worker camp, which will be located within the project site, must be in accordance with the pollution, health and safety measures set out in the General IFC Health and Safety Guidelines (2007) and IFC and EBRD guidelines for Workers’ Accommodation: Processes and Standards (September 2009). 457. Noisy construction activities will be limited to daytime (6:00 a.m. to 10:00 p.m.). Piling (hammering) will be limited to the absolute minimum. 458. The contractor has to ensure adherence to the requirements of the national regulations and international standards regarding protection of the human environment (H&S, water quality, noise and air emissions) are met. As described above, at pre-construction phase, an Environment, Health and Safety (EHS) Plan must to be developed by the Contractor and approved by PLN before the construction activities begin. The plan must cover security, occupational health and safety, gate control, sanitation, medical care, fire prevention, emergency preparedness and response. Periodic medical checks shall be provided for all workers at no costs to the workers. 459. The organization of environmental management and health & safety training for the workers is of vital importance to assure the minimization of incidents at the construction site. The contractor has to regularly inform and train his staff regarding health and safety issues (PPE), emergency response (e.g. accidents, spills), and transferrable diseases (e.g. HIV). Daily toolbox meetings shall be organized for construction workers. 460. To minimize the personal risks for the workers PPE equipment (ear muffs, safety boots, warning vests) must be provided by the contractor and the proper use of this equipment must be regularly supervised. 461. To reduce the risk of accidents due to construction related traffic, specific measures (speed limits and warning signs, especially on the access road to the site) shall be defined in the Environment, Health and Safety Plan. A temporary traffic management plan shall be developed in consultation with local authorities as part of the EHS Plan and submitted to PLN for approval. 462. To respond to accidents and emergencies during facility construction/installation, an emergency/incident response procedure have been developed and are documented in the EMP

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(see Section 6). The procedures will be revised and detailed by the EPC Contractor prior to commencement of works in the framework of EHS Plan preparation. The plan will be submitted to PLN for approval. 463. The contractor has to set up a grievance redress mechanism, and the local people must be informed how to address complaints. This grievance redress mechanism must be explained to the local residents during a public presentation at the beginning of the construction activities. 464. In case archaeological relicts are found during excavation works, the construction activities must be stopped, and the responsible authority has to be informed. The contractor has to include the respective contact data and the procedure in his Environment, Health and Safety Plan and during worker training.

G. Operation Phase Impacts

465. Environmental issues in thermal power plant operation primarily include the following:

(i) Noise

(ii) Air emissions and acid deposition

(iii) Greenhouse gas emissions

(iv) Water consumption and aquatic habitat alteration

(v) Effluent discharge

(vi) Solid wastes, hazardous materials and oil waste

(vii) Occupational and community health and safety (operational safety)

a. Physical Environment

Geology and soils Impacts 466. Geology is not affected in any way in the operation phase of the planned project. Soil is not affected by the normal operation of the Kupang Peaker 2. Incidents with unintended release of hazardous materials (e.g. fires, spillage of fuel, hydraulic oil, solvents, paints, etc.) may occur and could impact soil. Direct and uncontrolled runoff from the project site should be avoided as storm water may cause erosion that could impair soils and marine environment. Mitigation measures 467. PLN will ensure that hazardous substances on site are orderly stored in well-designed storage facilities and a proper inventory of such substances in maintained. 468. Spill kits must be available at the plant site. An emergency preparedness and response plan must be set up by the EPC contractor describing timely applied protection measures against spills. This plan will be submitted to PLN for review and approval, and tested during trial operation. The EPC contractor will also prepare a series of operations manuals, including an emergency preparedness and response manual. Training must be provided for all workers, drivers and equipment operators. An emergency preparedness and response plan are described in the EMP.

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469. Sound maintenance of construction roads, including drainage facilities. Landscaping of uncovered soil to control sediments in runoffs from the site.

Surface and Ground Water Impacts 470. Considering that the Kupang Peaker 2 will be an engine power plant, there will be no substantial water intake to and discharges from the power plant site during the operation phase. Notwithstanding, waste and wastewater from the Kupang Peaker 2 site may constitute a source of water pollution if not properly controlled. 471. During operations phase, sea water requirement for the project is 100m3/day or 70 liters/min. The treated wastewater will be less than 5m3/day and it will be discharged through a buried pipeline in the intertidal zone along with the RO reject water of 70m3/day. The impacts of water abstraction of wastewater discharge (meeting the effluent standards) on receiving coastal waters is considered negligible due to their extremely small volumes. Within the project site, impacts on surface and ground water quality may be caused by unintended release of hazardous materials (e.g. fires, spillage of fuel, hydraulic oil, solvents, paints, etc.). Mitigation measures 472. Domestic wastewater from the plant site will be treated through wastewater treatment plant built for treating construction phase sewage, and will meet the IFC EHS guidelines for discharge of treated domestic effluents as well as guidelines for discharge from thermal power plant. The facility must provide 2-year storage capacity for accumulating sludge. Sludge emptied from the facility shall be transported by a qualified operator and disposed of in accordance with national regulations. 473. The unbuilt surfaces at the plant site will be landscaped with grass and bushes to ensure that the runoff from the plant site do not carry added silt load. Furthermore, the runoffs will be channelized and uniformly distributed over the 20 m wide buffer of coastal vegetation maintained along coastal boundary of the plant. This will ensure no additional silt load is released to coastal environmental from the plant.

Air Quality Impacts 474. Impairment of air quality may be caused by air emissions (NO2, SO2, and PM10) produced by the plant’s operation. If ambient air quality standards are routinely exceeded, degradation of soil and water quality due to deposition of pollutants (only in case of severe pollution) and impact on health of local residents specially children and elderly due to lung function impairment could be expected. 475. The operation phase impacts of Kupang Peaker 2, being a Peaker plant operating during evening peak hours, the project impacts on air quality are limited to 5 pm to 10 pm. This lowers the potential of air quality impacts of the project as GLCs for longer average periods get distributed

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over a longer period (typically 24 hours) and for shorter averaging periods (typically 1 hour) likelihood of high GLC’s that relates to adverse meteorological conditions lowers. 476. In the case of Kupang Peaker 2 power plant, due to planned projects of Timor 1 and Kupang Peaker 1 power plants within the same complex, air quality assessment of the Project requires a cumulative impact assessment for planned power plants as well as the neighboring coal cum HSD fired Bolok power plant. While undertaking air quality simulations therefore it is considered that the emissions from the stacks of all existing and planned plants will comply with the Regulation of the Minister for Environment Number 21 of 2008 concerning Quality Standard of Emission from Immovable Sources for Thermal Power Plant Activities. The Kupang Peaker 2, (ADB project) will also comply with the national emission regulations for gas as well as HSD fired engines that are more stringent than applicable standards defined by IFC EHS guidelines. The referred standards have already been described earlier. 477. A detailed air quality modeling has been undertaken to assess the impact of the air emissions from the relevant sources at the Kupang power complex for the relevant parameters (SO2, NO2, and PM10). 478. Among the pollutants considered, NO2 and PM10 are a product of fuel combustion whereas SO2 emissions are a function of sulfur content of fuel. In this case, presence of sulfur in HSD is the only cause for flue gas content of SO2. During the combustion process sulfur in fuel gets oxidized under high temperature and gets converted into SO2. The flue gas SO2 levels are proportional to the sulfur content of the fuel. The air quality modelling has used 0.25 percent sulfur, which is a requirement of Indonesian regulations. PLN also provided fuel analysis certificate for two of its existing plants that confirmed that the sulfur content of HSD used by their plants is below 0.25 percent. 479. The air quality modeling study was performed using AERMOD View (Version 9.5) for three criteria pollutants SO2, NO2 and PM10, for averaging periods of 1 hour, 24 hours and 1 year, respectively. Stack height for Timor 1, Kupang Peaker 1 and Kupang Peaker 2 in these simulations are considered as 80m, 27m and 45m, respectively. The study considered the following scenarios to assess air quality impacts of Kupang Peaker 1 and neighbouring plants:

(i) Project Only scenario: Only Kupang Peaker 2 operating at full capacity as Peaker Plant (5 hours; from 5 pm to 10 pm)16

(ii) Existing Plants Only Scenario: Timor 1 operating at full capacity for 24 hours and Kupang Peaker 1 operating at full capacity as Peaker Plant

(iii) Baseline scenario: Timor 1and Bolok PPs operating at full capacity for 24 hours and Kupang Peaker 1 operating at full capacity as Peaker Plant

(iv) Cumulative Impacts: Timor 1 and Bolok operating at full capacity for 24 hours, Kupang Peaker 1 and Kupang Peaker 2 both operating at full capacity as Peaker Plants.

480. The model simulation results are presented in the form of Tables showing the maximum simulated ground level concentrations (GLC) in the assessment area (including the maximum concentration and maximum GLCs at the sensitive receptors). The predicted values that exceed

16 All simulations for Kupang Peaker 1 and Kupang Peaker 2 are performed assuming operations for 6 hours per day as a conservative measure. Also, as a worst-case simulation, Kupang Peaker 1 and Kupang Peaker 2 have been assumed to operate on HSD.

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the WHO GL value are highlighted in ‘Blue’ and those that exceed the national air quality standards are highlighted in ‘Red’. The locations of sensitive receptors presented in Figures 24 and 25. These include within a radius of 10 km, the sensitive receptors where human presence exists, namely the neighboring village/settlements, beaches and areas that are typically visited by people. Eight receptor locations have been selected as representative receptor points:

• R1 = 500 m away from the site, village of Oisina.

• R2 = 200 meters away from the site, mangrove beach

• R3 = 1.5 km away from the site, sea weed beach

• R4 = 3 km away from the site, village of Tablolong

• R5 = 5 km away from the site, village of Tablolong, at the coast

• R6 = 6 km away from the site, village of Tuakdale

• R7 = 9 km away from the site, village of Tuakdale

• R8 = 8 km away from the site, village unknown

481. The location of the listed receptors (R) are also shown in Figure 30.

Figure 30: Modeled area, location of the sensitive receptors and emission sources (R – Receptor, T1 – Timor 1, KP1 – Kupang Peaker 1, KP2 –

Kupang Peaker 2)

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b. SO2 Impacts

482. Table 28 presents the results of all four modeling scenarios for SO2. While interpreting the results 30 µg/m3 and 12.5 µg/m3, respectively, are added to 1 hourly and 24-hourly average values to account for the background concentrations. No such additions are done for annual average concentration as the predicted values for all scenarios are much below the annual standards and accounting for baseline concentration does not influence the interpretation.

Table 28: Maximum simulated SO2 Concentrations

Receptors Coordinator SO2 (µg/m3) SO2 (µg/m3) SO2 (µg/m3)

X Y 1-hr 24-hr Annual

Indonesian Ambient AQ Standards 900 365 60

WHO Ambient AQ Standards NA 20 NA

SCENARIO A - Only Kupang Peaker 2

GLCmax 549531 8855610 29.4 5.4 0.273

R1 550782 8855895 22.4 0.9 0.020

R2 550349 8855054 7.4 0.3 0.002

R3 550921 8857029 14.4 1.8 0.014

R4 553126 8857937 8.3 0.7 0.013

R5 552443 8859716 6.2 0.7 0.012

R6 555614 8858818 7.1 0.6 0.01

R7 558559 8858898 5.6 0.5 0.01

R8 554656 8861833 9.3 0.5 0.009

SCENARIO B - Timor 1 and Kupang Peaker 1

GLCmax 550746 8855755 278.3 54.5 13.8

R1 550782 8855895 134.9 36.3 1.9

R2 550349 8855054 115.3 34.3 1.3

R3 550921 8857029 62.4 15.9 0.9

R4 553126 8857937 66.5 8.2 0.5

R5 552443 8859716 95.2 7.4 0.3

R6 555614 8858818 65 5.1 0.3

R7 558559 8858898 50 6.6 0.3

R8 554656 8861833 82.8 6.4 0.3

SCENARIO C – Timor 1, Kupang Peaker 1 and Bolok – Baseline

GLCmax 550746 8855755 280 54.5 13.9

R1 550782 8855895 134.9 36.4 2

R2 550349 8855054 115.4 34.4 1.4

R3 550921 8857029 62.4 15.9 1

R4 553126 8857937 67 8.2 0.6

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Receptors Coordinator SO2 (µg/m3) SO2 (µg/m3) SO2 (µg/m3)

X Y 1-hr 24-hr Annual

Indonesian Ambient AQ Standards 900 365 60

WHO Ambient AQ Standards NA 20 NA

R5 552443 8859716 95.7 8.4 0.5

R6 555614 8858818 65.8 7.9 0.5

R7 558559 8858898 50.2 6.6 0.5

R8 554656 8861833 82.9 12.7 0.6

SCENARIO D - Cumulative Impacts: All Plants Timor 1, Kupang Peaker 1, Bolok with Kupang Peaker 2

GLCmax 550746 8855755 280 54.5 14.1

R1 550782 8855895 134.9 36.4 2

R2 550349 8855054 115.4 34.4 1.4

R3 550921 8857029 66.3 17.7 1

R4 553126 8857937 67 8.4 0.7

R5 552443 8859716 95.7 8.4 0.5

R6 555614 8858818 65.8 7.9 0.5

R7 558559 8858898 50.2 7.0 0.5

R8 554656 8861833 92.3 12.7 0.6

(GLCmax coordinates correspond to SO2 concentration in Bold, all values in Table are modelled values without baseline correction)

483. Based on the modelling results following observations are made:

(i) The predicted values for SO2, under all scenarios, are significantly below the national ambient air quality standard of 1 hourly average (900 µg/m3), 24 hourly average (365 µg/m3), and yearly average (60 µg/m3). The project therefore fully complies with national ambient air quality standards for SO2.

(ii) For 24 hourly average ambient air quality, the model predictions under baseline scenario (Scenarios C), are above WHO GL (20 µg/m3) at all nearby receptors (R1, R2 and R3) and also at a distant receptor (R817). The airshed at full operational capacity of planned Timor 1 and Kupang Peaker 1 power plants, that will come in operation before ADB funded Kupang Peaker 2, therefore, needs to be considered as degraded airshed to assess compliance of standards for SO2, with respect to ADB policy.

(iii) The contribution of the Kupang Peaker 2 alone to ambient SO2, concentrations, at all receptor locations, for 24 hourly average is low and it stands at 0.5% of national ambient 24-hourly average standard (365 µg/m3). Table 31 presents the contribution of Kupang Peaker 1 operating at full capacity in standalone mode at all receptors, as a percent of WHO Guidelines and national 24-hourly average

17 The exceedance at R8 is due to neighboring coal fired power plant (CFK) that otherwise does not cause significant cumulative impacts. The influence of CFK is more dominant at R8 due to its proximity with the plant.

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standards. It is observed that maximum ground level concentration for SO2, for Kupang Peaker 2 is at 1.5% of NAQS. This value is within the premises of Timor 1 power plant where the exposure of plant operators to ambient air will be limited. The highest 24-hour average GLC at a sensitive receptor is projected at 9% of the WHO standard, and 0.5% of the NAQS (Archina village).

(iv) The simulations for SO2 are performed for HSD mode (0.25% S). For LNG operations which is the primary operation mode for the Kupang Peaker 2, the plant will not contribute to ambient SO2. The Project therefore complies with the ADB policy for degraded airshed for SO2 in HSD as well as in gas operations mode.

c. NO2 Impacts 484. Table 29 presents the results of all four modeling scenarios for NO2. Similar to SO2 scenarios, while interpreting the results 30 µg/m3 and 12.5 µg/m3 are added to 1 hourly and 24-hourly average values, respective, to account for background concentration. No such additions are done for annual average concentration as the predicted values for all scenarios are much below the standards and accounting for baseline concentration does not influence the interpretation.

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Receptors Coordinator NO2 (µg/m3) NO2 (µg/m3) NO2 (µg/m3)

X Y 1-hr 24-hr Annual

Indonesian Ambient AQ Standards 400 150 100

WHO Ambient AQ Standards 200 NA 40

SCENARIO A - Only Kupang Peaker 2

GLCmax 550001 8855705 86.9 16.1 0.807

R1 550782 8855895 66.2 2.8 0.060

R2 550349 8855054 21.9 0.9 0.005

R3 550921 8857029 42.7 5.2 0.042

R4 553126 8857937 24.5 2.0 0.040

R5 552443 8859716 18.2 2.1 0.034

R6 555614 8858818 21.1 1.6 0.028

R7 558559 8858898 16.4 1.4 0.029

R8 554656 8861833 27.6 1.4 0.028

SCENARIO B - Timor 1 and Kupang Peaker 1

GLCmax 550205 8855557 278.3 54.6 14.5

R1 550782 8855895 134.9 36.4 1.9

R2 550349 8855054 119.9 34.4 1.3

R3 550921 8857029 75.3 20.4 0.9

R4 553126 8857937 72.2 8.7 0.5

R5 552443 8859716 95.2 8.8 0.3

R6 555614 8858818 66.8 5.3 0.3

R7 558559 8858898 50 7.5 0.3

R8 554656 8861833 97.2 6.4 0.3

SCENARIO C - Timor1, Kupang Peaker 1 and Bolok - Baseline

GLCmax 550205 8855557 280.6 54.6 14.7

R1 550782 8855895 134.9 36.4 2.1

R2 550349 8855054 120.3 34.5 1.5

R3 550921 8857029 75.3 20.4 1.1

R4 553126 8857937 87 8.6 0.7

R5 552443 8859716 106 9.5 0.6

R6 555614 8858818 67 11.3 0.6

R7 558559 8858898 50.3 7.5 0.6

R8 554656 8861833 97.4 16.6 0.7

SCENARIO D - Cumulative Impacts: All Plants Timor 1, Kupang Peaker 1, Bolok with Kupang Peaker 2

GLCmax 550205 8855557 280.6 54.7 15.3

R1 550782 8855895 135.1 36.4 2.2

R2 550349 8855054 142.2 34.5 1.5

R3 550921 8857029 118 25.6 1.1

R4 553126 8857937 96.7 9.1 0.8

R5 552443 8859716 106.5 10.7 0.6

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Table 29: Maximum simulated NO2 Concentrations

(GLCmax coordinates correspond to NO2 concentration in Bold, all values in Table are modelled values without baseline correction).

485. Based on the modelling results following observations are made:

(i) The predicted values under all four scenarios, even after accounting for background concentrations, are significantly below the national ambient air quality standard of 1 hourly average (400 µg/m3), 24 hourly average (150 µg/m3) and yearly average (100 µg/m3). The project therefore fully complies with national air quality standards for NO2.

(ii) For 1 hourly average ambient air quality, the model predictions under baseline scenario (Scenarios C), are above WHO GL (200 µg/m3) for maximum GLC. The maximum GLC is at about 75m from Timor 1. The GLCs values exceed the standards up to 350 m from the stack. At all larger distances the GLCs are below the WHO GL for 1 hourly average. At none of the receptor locations the NO2 1 hourly average GLC though exceeds the standards even after accounting for the background corrections. Because the exceedance of WHO GL is limited to locations close to the plant within the plant boundary and at none of the sensitive receptors the GLCs exceed the standards, the airshed for NO2 is considered non-degraded. It also noteworthy that all GLCs are well within the national standard for 1 hourly average NO2 levels (400 µg/m3).

(iii) The annual average concentrations, for NO2 for all scenarios and at all locations, are significantly below the WHO GL of 40 µg/m3.

(iv) The contribution of the Kupang Peaker 2 to the NO2 concentrations at receptors R1 is 17% and at R3 11% of national standard (Table 31). It is less than 10% at all other receptors. The project thus complies with the IFC EHS requirements of not contributing by more than 25% of applicable ambient standards for NO2. It is noteworthy that at these locations the cumulative impacts do not exceed the WHO GL on national standards for 1 hourly average NO2 and therefore no additional NO2 control beyond meeting the national emission standards is required for Timor 1 and Kupang Peaker 1 power plants.

(v) The simulations indicate that within the modelled area, Bolok PP does not influence the 1 hourly average value significantly. The influence of Bolok power plant is relatively more noticeable for 24 hourly averages. The Bolok’s impact though is limited to region near R6 and R8 that are located relatively close to Bolok power plant. For annual average concentration Bolok is not seen to impact the airshed significantly, mainly because of overall low values of predicted annual average concentration.

(vi) In gas operation mode the national ELVs (the applicable national standards being more stringent than the IFC EHS standards) are about 3 folds stringent than the HSD

R6 555614 8858818 88 11.3 0.6

R7 558559 8858898 66.5 8.9 0.6

R8 554656 8861833 125 16.6 0.8

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mode. For NG operations therefore, the addition to NO2 GLCs for Kupang Peaker 2 will be about one-third of its contribution in HSD mode. Since Timor 1 is the main contributor to the ambient NO2 in airshed, gas mode operations for Kupang Peaker 1 and Kupang Peaker 2 will not cause significant reduction. For gas operation model, the air quality inference therefore will remain the same as the HSD mode. The gas operation mode for Peaker plants therefore has not been simulated.

486. It is also noteworthy that for 1 hourly NO2 average, WHO GL is half of national ambient air quality. For annual average, WHO GL is 0.4 of the national standards. Considering non-degraded nature of the airshed and full compliance of national ambient air quality for the cumulative impacts, it is concluded that the Project complies with the ADB policy for ambient air quality for NO2.

d. PM10 Impacts 487. Table 30 presents the results of all four modeling scenarios for PM10. Similar to SO2 and NO2 scenarios, while interpreting the results 60 µg/m3 and 25 µg/m3 are added to 1 hourly and 24-hourly average values, respective, to account for background concentration. No such additions are done for annual average concentration as the predicted values for all scenarios are much below the standards and accounting for baseline concentration does not influence the interpretation.

Receptors Coordinator PM10 (µg/m3) PM10

(µg/m3) PM10 (µg/m3)

X Y 1-hr 24-hr Annual

Indonesian Ambient AQ Standards NA 150 NA

WHO Ambient AQ Standards NA 50 20

SCENARIO A - Only Kupang Peaker 2

GLCmax 549531 8855610 9.4 1.7 0.087

R1 550782 8855895 7.2 0.3 0.007

R2 550349 8855054 2.4 0.1 0.001

R3 550921 8857029 4.6 0.6 0.005

R4 553126 8857937 2.6 0.2 0.004

R5 552443 8859716 2.0 0.2 0.004

R6 555614 8858818 2.3 0.2 0.003

R7 558559 8858898 1.8 0.2 0.003

R8 554656 8861833 3 0.2 0.003

SCENARIO B - Timor 1 and Kupang Peaker 1

GLCmax 549826 8855558 16.9 3.3 0.8

R1 550782 8855895 8.5 1.9 0.10

R2 550349 8855054 10.4 1.7 0.07

R3 550921 8857029 6.2 1.4 0.05

R4 553126 8857937 5.1 0.5 0.03

R5 552443 8859716 4,8 0.5 0.02

R6 555614 8858818 4.4 0.3 0.02

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R7 558559 8858898 3.4 0.5 0.02

R8 554656 8861833 6.2 0.4 0.02

SCENARIO C - Timor 1, Kupang Peaker 1 and Bolok – Baseline

GLCmax 549826 8855558 16.9 3.3 0.8

R1 550782 8855895 8.5 1.9 0.12

R2 550349 8855054 10.4 1.8 0.08

R3 550921 8857029 6.2 1.4 0.06

R4 553126 8857937 6.4 0.6 0.05

R5 552443 8859716 7.8 0.6 0.04

R6 555614 8858818 4.4 0.9 0.04

R7 558559 8858898 3.7 0.5 0.04

R8 554656 8861833 6.2 1.2 0.05

SCENARIO D - Cumulative Impacts: All Plants Timor 1, Kupang Peaker 1, Bolok with Kupang Peaker 2

GLCmax 549728 8855575 22.9 4.5 0.9

R1 550782 8855895 14.5 1.9 0.12

R2 550349 8855054 12.8 1.9 0.09

R3 550921 8857029 10.6 2.0 0.07

R4 553126 8857937 7.8 0.7 0.05

R5 552443 8859716 7.8 0.8 0.04

R6 555614 8858818 6.7 0.9 0.04

R7 558559 8858898 5.2 0.6 0.04

R8 554656 8861833 9.2 1.2 0.05

Table 30: Maximum simulated PM10 Concentrations

(GLCmax coordinates correspond to PM10 concentration in Bold, all values in Table are modelled values without baseline correction)

488. Based on the modelling results following observations are made:

(i) The predicted values under all four scenarios, even after accounting for background concentrations, are significantly below the national ambient air quality standard of 24-hourly average (150 µg/m3). Indonesia does not have a yearly average standard for PM10. The project therefore fully complies with national air quality standards for PM10.

(ii) For 24 hourly average ambient air quality, the model predictions under baseline scenario (Scenarios C), are below WHO GL (50 µg/m3) for maximum GLC as well GLCs at all receptors. The airshed for PM10, therefore is considered non-degraded.

(iii) The predicted values under all four scenarios, even after accounting for background concentrations, are also below the WHO GL for 24 hourly average (50 µg/m3) and WHO GL for yearly average (20 µg/m3). The percent contribution of Kupang Peaker 2 to PM10 in airshed is also below 10% for short term averages and below 1% for long-term average. The project therefore fully complies with IFC EHS for PM10.

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(iv) In gas operation mode for Kupang Peaker 1 and Kupang Peaker 2 the PM10 values will be further lower. As such the impact of proposed power plants on PM10 in the airshed in negligible and baselines conditions are not expected to be altered in any significant way.

489. Over all, the air quality modeling simulations indicate that Kupang Peaker 2 Power Plant, as a standalone plant, fully complies with the Indonesian ambient air quality standards. Furthermore, for all air quality parameters its contribution to pollutant’s concentration at any point in airshed remains within 25% of Indonesian ambient air quality standards. 490. In terms of cumulative impacts, the Bolok power plant 13 km north of the project does not significantly influence the air quality at locations proximate to the Project. It though has some influence on northern region of the airshed. 491. For SO2, due to the impact of Timor 1 power plant, the 24-hourly average GLCs at nearby receptors to the Project are higher than the WHO GL for 24 hourly average (20 µg/m3). As per ADB policy therefore the airshed for SO2 is termed as ‘degraded’. The SO2 contribution due to the project at all locations are however insignificant and within the permissible levels. The Project therefore complies with the ADB policy for its impacts in terms of SO2. For gas mode operations the Project will not add to SO2. 492. For NO2 the GLC under cumulative impacts considerations are within WHO GL for 1 hourly average (200 µg/m3) at all receptors. There are some exceedances to WHO GL but these are limited to within the plant boundaries and therefore the airshed is terms as ‘non-degraded’ for NO2. The Project contribution to NO2 at any point being within 25% of the 1 hourly average national ambient air quality standards (400 µg/m3) ,the project thus complies with ADB policy for NO2. 493. For PM10 the GLC under cumulative impacts considerations are within WHO GL for 24 hourly average (50 µg/m3) at all receptors. The airshed for PM10 therefore is considered as non-degraded and ambient national standards for PM10 are the applicable standards. It is observed from Table 31 and Table 32 that the percent contribution of Kupang Peaker 2 to the airshed is well below the threshold of significance of 10% for short term averages and 1% for long-term average. The project therefore complies with ADB policy for Pm10. 494. As mention earlier, the project is located at the western tip of Timor island and more than 50% area of air quality modelling domain falls over the costal sea, a part of LSMNP. The air quality simulations indicate that for short term predictions (1 hourly averages), the highest concentrations of air pollutants occur within about 50-100 m from the coast. The maximum simulated levels for NO2 and SO2 are below 85 µg/m3 and 25 µg/m3. At longer distance over the sea the pollutants‘ concentrations are expected to rapidly decrease as the gaseous pollutants combine with water vapour and get removed. Due to low concentrations of air pollutants and short resident time (residence time for travelling fishermen or air breathing mammals (unlikely to come so close to coast due to shallow coastal area) is a few minutes) the air quality impacts of the project over coastal areas are negligible and more stringent air quality standards for ecologically sensitive areas as defined in IFC EHS guidelines have not been considered as applicable standards, in this case.

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Receptor Location

Percent of WHO GL Percent of National

Standard

SO2 NO2 PM10 SO2 NO2 PM10

GLCmax 27.0 43.5 3.40 1.50 21.73 1.13

Panaf Village (R1) 4.5 33.1 0.60 0.25 16.55 0.20

Mangrove Beach (R2) 1.5 11.0 0.20 0.08 5.48 0.07

Archina Beach (R3) 9.0 21.4 1.20 0.50 10.68 0.40

Tablolong Village (R4) 3.5 12.3 0.40 0.19 6.13 0.13

Tabalolong Village, Coast (R5) 3.5 9.1 0.40 0.19 4.55 0.13

R6 3.0 10.6 0.40 0.17 5.28 0.13

R7 2.5 8.2 0.40 0.14 4.10 0.13

R8 2.5 13.8 0.40 0.14 6.90 0.13

Table 31: Percent GLC for short-term standards for air pollutants (1-hourly for NO2 and 24-hourly for SO2 and PM10 as applicable)

Receptor Location Percent of WHO GL

Percent of National Standard

SO2 NO2 PM10 SO2 NO2 PM10

GLCmax NA 2.018 0.435 0.455 0.807 NA

Panaf Village (R1} NA 0.150 0.035 0.033 0.060 NA

Mangrove Beach (R2) NA 0.013 0.005 0.003 0.005 NA

Archina Beach (R3) NA 0.105 0.025 0.023 0.042 NA

Tablolong Village (R4) NA 0.100 0.020 0.022 0.040 NA

Tabalolong Village, Coast(R5) NA 0.085 0.020 0.020 0.034 NA

R6 NA 0.070 0.015 0.017 0.028 NA

R7 NA 0.073 0.015 0.003 0.029 NA

R8 NA 0.070 0.015 0.003 0.028 NA

Table 32: Percent GLC for long-term standards for air pollutants (annual)

495. The impact of Kupang Peaker 2 on NO2, SO2 and PM10, GLCs for 24 hours operations of Kupang Peaker 2 under HSD operations is further examined in Table 32. Table 33 presents the GLCs for these parameters at all sensitive receptors as well the maximum GLCs for 24 hourly average for SO2 and PM10 and hourly average for NO2 (the averaging periods for which short term WHO GLs exist for respective parameters). The results in Table 32 indicate that the contribution of the project under 24-hours operations for HSD mode does not exceed the 10% NAQS threshold of significance for air quality impacts at several locations. 496. For NO2, the predicted GLCs at all sensitive receptors are within the threshold of 25% of applicable standard (national ambient air quality standard for NO2 – 400 µg/m3). The maximum GLC will remain within the standards, and not exceed the 25% NAQS threshold at any sensitive site. The maximum 1-h increase is anticipated to amount to 16.5% at Panaf village. For PM10 all values are within applicable standard.

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497. The assumption of 24-hours operations of Kupang Peaker 2 on HSD though is overly conservative. Even from the electric demand perspective, with Timor 1 adding 100 MW to generation capacity in Kupang grid, a situation that will require Kupang Peaker 2 to operate 24 hours could only become realistic several years in future. Even in a case of higher than expected demand, the project can operate a few engines rather than full capacity operations at certain hours during the day. 498. The EIA therefore takes an adaptive management approach and requires that the contractor designs the power plant to meet the national air emissions standards and at the time of commissioning consider installing additional control measures, if air quality simulation at that stage indicate the ADB’s policy for air quality will not be complied with. It is recommended that this exercise is done every 5 years for projected demand of next five years rather than installing additional measures upfront.

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Table 33: Simulated Air Quality GLCs for 24 hours HSD operations for Kupang Peaker 2

(all values are modelled values without baseline correction)

499. In conclusion, the Project with the assumptions that it will meet the national air emissions standards, complies with ADB policy for its impacts on air quality, if Kupang Peaker 2 operates as a Peaker plant even on HSD. It is noteworthy that for policy compliance Timor 1 and Kupang Peaker 1 also need to meet the national emission standards. PLN therefore will ensure by design of the plants that such compliance is achieved for Timor 1 and Kupang Peaker 1 power plants; and stack heights for Timor 1, Kupang Peaker 1 and Kupang Peaker 2, at the minimum, are 80m, 27m and 45m, respectively, unless dispersion modelling to be conducted by the EPC contractor at DED stage can demonstrate that NAQS can be achieved with smaller stack heights.

Mitigation and Monitoring 500. The plant must meet the national standards for emissions of SO2, NO2 and PM10 (more stringent than the applicable IFC Environment Health and Safety Guidelines for Thermal Power Plants (December 2008)) as presented in Table 2. Continuous stack emission monitoring system will be installed to monitor SO2, NO2 and PM10. At the time of commissioning of the plant, operator will undertake air quality simulation for projected demand over next 5 years. The operator will install additional air pollution control equipment if the simulations indicate that a non-compliance with the ADB policy is projected. 501. During the first year of operation, PLN will undertake quarterly stack monitoring to ensure compliance of these standards. Once the regular compliance is achieved, the stack monitoring will be undertaken every six months. Six-monthly air quality monitoring will be undertaken at plant site and Panaf village for SO2, NO2, and PM10. On each instance, air quality monitoring will be undertaken for 3 days. 502. Diesel shall be used only in rare emergency cases and during the maintenance of LNG delivery system. In case diesel has to be used, the sulfur content of the HSD must be below 0.25

Receptors Coordinates

SO2 (µg/m3)

NO2 (µg/m3) PM10

(µg/m3)

X Y 24-hr 1-hr Annual

Indonesian Ambient AQ Standard 360 400 150

WHO Ambient AQ Guideline 20 200 50

24 ours HSD operations for Kupang Peaker 2

GLCmax 15.2 166.5 0.081

R1 550782 8855895 5.5 66.1 0.027

R2 550349 8855054 4.9 62.9 0.011

R3 550921 8857029 3.3 42.7 0.015

R4 553126 8857937 1.5 25.7 0.014

R5 552443 8859716 1.2 34.7 0.012

R6 555614 8858818 0.8 34.4 0.017

R7 558559 8858898 0.7 17.7 0.015

R8 554656 8861833 1,0 27.6 0.011

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% S, as required by the national regulation. This will also meet the IFC Guidelines mentioned in para above. 503. Compliance with ambient air quality standards also entails that the neighboring plants to Kupang Peaker 2 i.e. Timor 1 and Kupang Peaker 1 comply with national air quality emission standards. PLN will ensure such compliance by the design of these plants and regular stack monitoring of these plants during their operations and provide confirmation for such compliance to ADB. 504. Regular maintenance of the plant components contributes to good functioning of the plant, and consequently to reducing of hazardous emissions.

e. Greenhouse Gases Emissions GHG emission estimate 505. The direct (scope 1) GHG emissions for operation of the power plant18 were calculated using the methodology described in the Guidelines for Estimating Greenhouse Gas Emissions of Asian Development Bank Projects: Additional guidance for clean energy projects. Mandaluyong City, Philippines: Asian Development Bank (2017). 506. Carbon dioxide (CO2) is the primary GHG associated with the combustion of fuel and is emitted in direct proportion to fuel consumption, with different emissions levels associated with different fuel types. Other GHGs include methane (CH4), nitrous oxide (NO2), and hydrofluorocarbons (HFCs), which together account for small percent of power generation GHG emissions. NO2 and CH4 are not directly related to fuel consumption, but instead are dependent on operating conditions and emissions control technologies. In addition, HFCs are emitted from air conditioners and refrigeration used in some freight shipments; these emissions depend on factors such as the age of the equipment and how often air conditioners are used. 507. CO2 emissions from power generation can be calculated based on the amount of fuel – natural gas or diesel, and other fuels - used by power generation turbines or engines. The equations and parameters used to calculate the Project GHG emissions are provided below.

• GHG Emissions = Eelec × EG

• Eelec = (Efuel /Ƞ) × 3.6

• Eelec = electricity emission factor (for specific power plant/technology), tCO2/GWh

• EG = electricity produced, GWh

• Efuel = emission factor of fuel used in power plant, tCO2/TJ

• Ƞ = thermal efficiency of power plants

• Conversion factor: 3.6 TJ/GWh

18 The ADB SPS 2009 requires the borrower/client to quantify direct emissions from the facilities within the physical project boundary and indirect emissions associated with the off-site production of power used by the project.

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Parameter Diesel Natural gas

Electricity produced a year, GWh 438 438

Emission factor, tCO2/GWh 71.4 56.1

Thermal efficiency, open cycle % 39.5 39.5

Thermal efficiency, combined cycle % 60 60

GHG Emissions, tCO2 a year open cycle 285,021 223,945

GHG Emissions, tCO2 a year combined cycle 187,639 147,430

Table 34: GHG Emissions from powerplants

508. The calculations are performed with the assumption of 24 hours, 365 days a year operation of the plant and are presented in Table 34. Operation as a Peaker (daily over a 5 hours period between 17:00 and 22:00) would further decrease the GHG emission to 60,000 tCO2 a year (open cycle, diesel fuel) and 47,000 tCO2 a year (open cycle, natural gas fuel) . GHG emission monitoring, reduction and offset 509. The ADB SPS 2009 requires that for projects emitting 100,000 tons CO2eq or more (of direct sources and indirect sources associated with electricity purchased for own consumption) the borrower/client has to conduct quantification and monitoring of greenhouse gas emissions annually in accordance with internationally recognized methodologies. In addition, the borrower/client has to evaluate technically and financially feasible and cost-effective options to reduce or offset project-related greenhouse gas emissions during project design and operation, and pursue appropriate options. 510. A conservative estimate of direct GHG emission exceeds the ADB SPS 2009 recommended threshold of 100,000 tons, however the operation of the plant as a Peaker would bring the emission down to 60,000 tons a year. Use of natural gas as a primary fuel will further decrease the emission. 511. PLN will implement the environmental management plan to minimize leaks of natural gas and efficiently manage air conditioning equipment to minimize losses of HFC’s to the atmosphere. 512. The Project also requires clearing a number of trees at the power plant site. As per the EMP these will be replanted in the ratio of 1:2.

f. Noise

Impacts 513. For the calculation and evaluation of the noise emissions from the planned plants and the Kupang 2 Peaker, a Noise Emission Expert Study was conducted. For more details see Annex E Noise Emission Study to this EIA Report. 514. Operation of the various plant components such as gas engines, generators, oil pumps, fuel gas station, transformers, etc., will produce noise that will be cautiously generated during plant operation. A prolonged exposure to high noise levels can cause negative health impacts including irritation and sleep and hearing impairment. Assessment of noise impacts due to a plant

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or machinery though entails information on noise emissions as well as inbuilt noise control measures which was not available for Kupang Peaker 1 or Kupang Peaker 2. 515. To overcome this gap in information and understand current practice of noise control in power plants in Indonesia, the consultant visited a recently commissioned gas engine plant constructed and operated by PLN at Bantong, Kalimantan. Bantong power plant has 4 newly installed gas engine by Wartsila from Finland. It was observed that the Bantong power plant has advanced noise control measures by way of silencers at gas engine exhaust stack and gas engine building openings. Similar, configuration for noise control measures has been considered for Kupang Peaker 1 and Kupang Peaker 2 plants as the baseline. 516. The sound pressure level of the noise received from the power plants complex under various operating scenarios has been calculated at the following specific points-of-interest (POIs), considered as noise sensitive receptors due to the land use and proximity to the project:

(i) POI 1: "Settlement" (hamlet Panaf, village of Oisina (700 m north-east of the Project)

(i) POI 2: "Mangrove beach" (150 m south of the of the Project and used by fishermen)

(ii) POI 3: "Archian beach" (1,800 m north-west of the Project and used for recreation by public)

517. Following Table 35 presents the noise level at the POIs when Timor 1 and Kupang Peaker 1 are operating as standalone plants without additional noise mitigation. It is observed that in standalone mode, for Timor 1 noise levels at all POIs are significantly lower than the national ambient noise standards (55 dB(A)). Timor 1 therefore does not require additional noise control measures. 518. It is further observed that in standalone mode Kupang Peaker 1 does not comply with national ambient noise standards at POI2 and therefore requires installation of additional noise control measures.

POI Description of POI

Timor 1 dB(A)

Kupang Peaker 1 dB(A)

Kupang Peaker 2 dB(A)

Cumulative Impact dB(A)

1 Panaf Village 49.9 52.3 52.1 56.3

2 Mangrove beach

43.3 58.8 64.6 65.6

3 Sea weed beach

37.5 35.1 32.9 40.3

Table 35: Predicted noise for Timor 1, Kupang Peaker 1 and Kupang Peaker 2 individually and under cumulative operations

519. Kupang Peaker 2 though less noisy for Panaf village, results in high noise impacts at Mangrove beach (POI2) and will need higher noise control than Kupang Peaker 1. This is primarily

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due to proximity of Mangrove beach to the plant. Cumulatively, the noise levels exceed the standards at Panaf Village and Mangrove beach19. 520. Table 36 presents the noise level at the POIs with the consideration of noise control measure. Two scenarios are presents. First, Kupang Peaker 1 operating at full capacity with Timor 1. This represents the baseline condition for the Project. Second, all three plants Timor 1, Kupang Peaker 1 and Kupang Peaker 2 operating at full capacity. The second scenario presents the maximum noise levels that will occur at the POIs, at any point of time during the life of the Project.

Figure 31: Noise contours for cumulative operations of Timor1, Kupang Peaker 1 and Kupang Peaker 2 Power Plants

POI Description

of POI Baseline Noise (Timor 1 and Kupang Peaker 1 (with noise control) in Operation) dB(A)

Noise Impacts of Kupang Peaker 2 with Noise Control (dB(A))

Cumulative impacts with mitigation measures dB(A)

19 The POI at the Mangrove beach has been considered as the south-west corner of the beach that is nearest to the Project. The beach itself extends for several kilometers and the beach area that is connected by the nearest road is at 4.5 km from the south-west corner. The noise impacts on Mangrove beach therefore is not likely to be an issue.

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1 Panaf Village 50.6 39.1 50.9

2 Mangrove beach

49.4 49.6 52.0

3 Sea weed beach

36.1 25.2 38.8

Table 36: Predicted noise with mitigation measures – baseline and cumulative impacts

521. Figure 32 presents the noise contours for cumulative impact scenarios for the Project. It is observed that the 55 dB(A) contour does not extend to the POIs that indicates that the noise levels at the POIs under cumulative impacts with mitigation measures is within the national and international standards. It is further observed from Table 36, that Kupang Peaker 2 complies with nighttime standards of 45 dB(A) at Panaf village and daytime standard of 55 dB(A) at all receptors. It may be noted that nighttime standard at mangrove beach is not relevant due to it being a public beach and not in use during the night. It is further observed from Table 36 that noise increment due to the project to the baseline noise levels Timor 1 and Kupang Peaker 1 in operation) is limited to 2.6 dB(A) less than the threshold of 3 dB(A) and mangrove beach the POI that is most impacted due to noise. The project, therefore complies with complies with the ADB policy for less than 3 dB(A) increase to ambient noise.

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Figure 32: Noise contours for cumulative operations of Timor 1, Kupang Peaker 1 and Kupang Peaker 2 Power Plants with noise control

measure

Mitigation and Monitoring 522. It is necessary that PLN installs noise control measures as presented in the noise study (Annex E) and reproduced below at Kupang Peaker 1. No additional noise control measures are required for Timor 1 power plant.

Kupang Peaker 1

- Gas engine exhaust stacks (all stacks)

• Installation of a silencer

- Type: 1:1 combined absorption-resonator splitter silencer

- Length: 2.0 m

- Splitter thickness: 200 mm

- Splitter gap width: 200 mm

- Gas engine building ventilation openings (all units, all openings)

• Installation of a silencer

• Type: absorption splitter silencer

- Length: 0.5 m

- Splitter thickness: 100 mm

- Splitter gap width: 150 mm 523. It is further required that Kupang Peaker 2 also installs recommended noise control measures indicated in Annex E ((i) Stack silencers, (ii) silencer at gas engine intake openings and (iii) silencer at combustion air intake openings for each engine). The details of noise control measures for Kupang Peaker 2 are presented below:

Kupang Peaker 2

- Gas engine exhaust stacks (all stacks)

• Installation of a silencer

- Type: 1:1 combined absorption-resonator splitter silencer

- Length: 3.0 m

- Splitter thickness: 200 mm

- Splitter gap width: 100 mm

- Gas engine building ventilation openings (all units, all openings)

• Installation of a silencer

• Type: absorption splitter silencer

- Length: 1.0 m

- Splitter thickness: 100 mm

- Splitter gap width: 100 mm

- Combustion air intakes (all units, all intakes)

• Installation of a silencer

- Type: absorption-resonator splitter silencer

- Length: 1.0 m

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- Splitter thickness: 100 mm

- Splitter gap width: 100 mm 524. The EPC contractor will be required to conduct a comprehensive operational noise impact assessment, to demonstrate compliance with (i) maximum sound pressure levels at 1m from any point on any item of equipment including valves (85dBA); maximum sound pressure level at site boundary (70 dBA during daytime and 60 dBA during nighttime); and (iii) maximum sound pressure level at nearest sensitive receptor (55 dBA during daytime and 45 dBA during nighttime), or a maximum increment of 3 dBA should baseline indicate exceedance with the standard. This noise impact assessment will be based on a new baseline noise assessment at key sensitive receptors. This requirement shall be defined in the BD for the EPC contract. 525. An overview of the most important noise control principles applied in industrial acoustics in general along with examples for typical designs and applications is provided in the Annex F. 526. Before commencement of operation of Kupang Peaker 2, PLN will undertake a 48 hours long noise monitoring, recording hourly equivalent noise. The observations will include one working and one non-working day. 527. During operation, in case the noise limits are exceeded by more than 3 dB(A) at any of the sensitive receptor (mainly Panaf hamlet) on a consistent basis (targeting monitored will be done in case of exceedance or a noise related complaint by the community), PLN will provide primary noise protection measures at the plant site, and/or secondary noise protection measures (e.g. noise protection walls or fences) near sensitive receptors.

g. Natural Environment Impacts 528. Movement of LNG vessels for transportation of LNG form west Indonesia to LNG Jetty is the main operational phase activity that can impact the marine environment around the project. The LNG vessel while travelling to Semau strait will follow the existing shipping lanes through the Sawu sea presented in Figure 33 and Figure 34. It is observed from these figures that the main shipping traffic is west of Semau island and relatively small number of vessels pass through the Semau strait. It is observed from Figure 30 that the existing shipping lanes through Semau strait pass about 2 km west of the project area.

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Figure 33: Shipping lanes through Sawu Sea

Figure 34: Closer view of nearest shipping lane to the Project

Figure 35 provides a quantitative perception of shipping traffic through Semau strait. Present route density through Semau strait is in the range of 30-40 thousand routes/year. The additional shipping roués due to the project are expected to be 150 routes/year (one LNG vessel every 5 days) which is small compared to exiting traffic through the Semau strait. The increase in shipping traffic due to the project therefore is negligible. During the period of migration of cetacean, there is a possibility that cetacean may collide with the LNG vessel and get injured. Suitable precautions need to be exercised to avoid/minimize such instances.

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Figure 35: Shipping route density through Semau strait

529. From the regular shipping lane, the LNG vessel will travel about 2 km to LNG jetty. Along this route as the vessel approaches the coast, the likelihood of collision with slow moving marine life (such as turtles) increases. Since the project marine DMU is considered as a critical habitat for Hawksbill turtle, the EMP provides mitigation measures byway of speed restrictions to avoid such possibility. 530. During plant operations, the treated wastewater discharge is limited to less than 5 m3/day of treated effluents and 70m3/day RO rejects. These effluents will be discharged into the intertidal zone and are unlikely to have any measurable impact on marine water quality beyond 20-25 m the point of discharge. 531. The project does not have any significant primary impacts on terrestrial habitat. The air quality and noise impacts extend to only a few hundred meters beyond the project boundary. The GLCs of air pollutants are well within the applicable ambient air quality standards. The 55 dB(A), noise contour, with the mitigation measures, also falls entirely within the terrestrial DMU and does not impact the sensitive areas of Tuadale lake wildlife reserve. 532. The project though could have significant secondary impacts if the power plant workers operating the plant, engage in poaching of marine or terrestrial animals, destruction of corals or felling of trees in mangrove areas. These impacts need to be eliminated by strict surveillance and penal actions on the offenders. Mitigation and Monitoring 533. The plant operator is required to ensure that workers from the Kupang Peaker 2 plant are not illegally poaching or fishing (e.g. with explosives or poison). This also includes the protection of the coral reefs, as corals are often sold to tourists. For this purpose, PLN will make in obligatory for plant operator to (i) fence the plant boundary in all directions and exercise vigilance by

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engaging a third party security agency to ensure that the workers do not intrude over the coastal area fronting the project or into the Tuadale lake wildlife reserve and (ii) take strict penal action against any offenders who are seen to engage or encourage any such illegal activities that could harm the marine or terrestrial wildlife. 534. The LNG vessel while passing through LSMNP during the period of cetacean migration (October-December and March-May), will assign a suitably trained crew member to observe and report presence of cetacean in vessel’s path. On such occurrence the vessel speed will be immediately reduced to 10 km/h, to ensure safe passage for migrating cetacean. 535. The movement LNG vessel between the shipping lane and LNG jetty (about 2 km) will be under guidance of a pilot boat. During this movement, the pilot boat will ensure that the LNG vessel speed is 4 km/h or less to avoid possibility of collision with slow moving turtles, likely to be present in the area. Human Environment (Socio-economic environment)

Impacts and benefits, mitigation measures 536. Employment opportunities for operating the power plant and other related services will be created for limited surrounding workforce during the operational phase, which is an important positive impact. The employment opportunities will generate various benefits on local people’s income, particularly on the households whose family members are long-term employed during operation of Kupang Peaker 2. 537. However, plant staff may disturb the way of life of the local population, due to the influx of money, communicable diseases, behavior, cultural or religious differences. The incremental impact of labor force during project operation is not expected to be significant given the presence of workers at the Kupang Peaker 1 site. 538. Key operational issues that may affect workers and nearby residents is the impact of the facility on ambient noise and air quality, and occupational and community safety risks during plant operation, especially in case of plant malfunctioning or accidents (fire, explosions, gas release). Issues related to noise and air quality have been discussed earlier. Air quality and noise will be monitored regularly by the plant operator at defined receptor points within the plant at nearby residential areas, as it might impair community health (details of the monitoring routine are described in the EMP). Since the power plant will be operated as a Peaker, the impact will be intermittent. The ambient air quality and noise standards will refer to the IFC EHS General Guidelines (April 2007). 539. In terms of occupational health and safety during normal operation, the facility operator will be required to ensure compliance with the Law on Labor. In addition to the requirements on worker safety through the national law on Labor, PLN has issued its internal policy (decree) which requires facility operators to provide workers with safe and healthy working conditions and prevent accidents, injuries, and occupational disease. Each facility operator must establish a safety plan per PLN internal regulation. It also requires the establishment of preventive and emergency preparedness and response measures. The operator has to regularly inform and train his staff regarding health and safety issues (e.g. PPE), emergency response (e.g. accidents, spills), and transferrable diseases (e.g. HIV/AIDS).

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540. The main risk of plant malfunctioning that may affect health and safety of workers and nearby communities mainly relate to the gas and diesel supply and storage system. HSD will be stored in tanks that are designed and constructed in accordance to international good practice. The diesel storage system will consist of an HSD storage for 7 days operation, and one day tank for 1-day operation. The tanks will be designed in accordance with AP 650 and will include reinforced concrete foundation supported by piles, reinforced concrete dike wall, oil separator. The tanks will be equipped with at least 3 fire detecting devices, with alarm to be transmitted to the fire protection panel in the central control room. These requirements will be defined in the BD for the EPC contract. 541. To minimize the risk of gas leaks, emergency shutdown walves (ESD) will be installed within the power stations‘ inner boundary fence to isolate the gas fuel supply for the entire generating plant. Operation of the ESDV will be by pneumatic actuator. 542. The distance between the facilities and the next residential houses is anticipated to be at least 500 m, so that the safety risk to local residents in case of an accident is assessed to be low. However, this shall be confirmed at DED stage. The EPC contractor will be required to demonstrate through the conduct of a safety risk assessment at DED stage that no member of the community nearby the facilities will be at risk in case of a fire or explosion. The assessment will be confirmed through an independent safety audit, to be commissioned by PLN. The audit shall also assess the risk of existing facilities at Kupang Peaker 1. 543. The facilities will also include an automatic fire protection, gas detection and alarm system. All critical facilities will be connected to the automated system. In order to prevent the spread of fire by cables in floor voids and other enclosed space not protected with fire extinguishing systems, all cables shall be completely coated with a water-resistant fire-retardant coating. The EPC contractor will be in charge for complete design, furnishing, delivery and testing of the fire protection, gas detection and alarm system. The emergency preparedness and response system will be triggered in case of gas leaks, fires or explosions. The EPC contractor will prepare a detailed manual and provide regular training to staff and nearby communities to respond to emergencies. 544. Hazardous substances must be stored in safe locations that shall comply with the Regionation of Chaurman of Bapedal No. 01 (1995) regarding hazardous building, storage and collecting of Toxic and Hazardous Goods. Hazardous waste should be collected and stored separately from other waste in the temporary storage area of hazardous waste. Emergency procedures shall be set up by the contractor how to address spillage of hazardous substances. 545. The operator will ensure that plant emissions are within the requirements of the national regulations and international standards regarding protection of the human environment (H&S, water quality, noise and air emissions) are met. 546. The operator has to set up a grievance redress mechanism, and the local people must be informed how to address complaints. This grievance redress mechanism must be explained to the local residents during a public presentation at the beginning of the operation activities. The operator has to regularly inform and train his staff regarding health and safety issues (PPE), emergency response (e.g. accidents, spills), and transferable diseases (e.g. HIV).

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H. Critical Habitat Considerations

547. Critical habitat screening assessment performed under Chapter V-B-3 had concluded that the marine DMU housing the project was CH for critically endangered Eretmochelys imbricata (Hawksbill turtle). The Kupang Peaker 2 project therefore triggers the critical habitats requirement under biodiversity conservation and sustainable natural resource management provision of ADB safeguards policy. Accordingly, a project in areas of critical habitat can proceed only if it complies with the following conditions: 548. There are no measurable adverse impacts, or likelihood of such, on the critical habitat which could impair its high biodiversity value or the ability to function 549. The project is not anticipated to lead to a reduction in the population of any recognized endangered or critically endangered species or a loss in the area of the habitat concerned such that the presence of a viable and representative host ecosystem be compromised. 550. Any lesser impacts are mitigated by mitigation measures that would be designed to achieve at least no net loss of biodiversity. 551. The assessment of impacts on marine and terrestrial environment indicates that the primary impacts of the Project on terrestrial environment during construction, in terms of air quality and noise, are confined to a few hundred meters from the project boundary; and are temporary and insignificant. The secondary impacts of the Project, due to workers’ actions, could extend to a few kilometers beyond the project boundary, including areas of Tuadale lake wildlife reserve and can cause long-lasting and significant impacts on its biodiversity value. 552. These impacts though can be adequately controlled by strict vigilance and severe penalties against the offenders. 553. Similarly, primary impacts of the Project on coastal marine environment during construction as well as operations are negligible. The workers, if venture into the coastal sea and engage in destruction of corals and poaching of red listed species, can cause significant secondary impacts on marine environment. Similar to terrestrial impacts, these impacts also can be adequately mitigated by exercising strict vigilance and imposing strict penalties on offenders. 554. During operation, there is a risk of collision of LNG vessels with migrating cetacean and turtles. These risks can be adequately mitigated by recommended mitigation measures of stationing observer on LNG vessel to warn of presence of cetacean in vessel’s path and reduce its speed and navigate the final stretch to LNG jetty at reduced speed under guidance of a pilot boat. 555. It is thus concluded that the Project does not have any measurable primary impacts on either marine or terrestrial environment and therefore meets the requirements under item (i) and (ii) above. The project can have some adverse impact on natural environment by way of irresponsible behavior of its workers. The mitigation measures, specially provision of strict penalties to punish such behavior, backed by effective surveillance, though, should ensure that

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the requirement under (iii) is also met. The Project, therefore complies with CH requirements of the ADB Policy.

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PUBLIC CONSULTATION AND PARTICIPATION

I. Information disclosure

556. ADB’s Safeguard Policy Statement (2009) requires the disclosure of a draft environmental assessment (including the EMP) in a timely manner, before project appraisal, in an accessible place and in a form and language(s) understandable to affected people and other stakeholders. Indonesia’s legal framework on environment is fully equivalent to this policy principle and requires the disclosure of the draft and final environmental assessment (AMDAL-RKL-RPL) in a timely manner, before project appraisal, in an accessible place and in a form and a language(s) understandable to the affected people and other stakeholders. Disclosure of the final environmental assessment and its updates, if any, to affected people and other stakeholders is also required. 557. Disclosure of project information to potentially affected persons and key stakeholders occurred during the preparation of the project, the AMDAL and the EIA. The AMDAL prepared for Kupang 1 and the AMDAL Amendment for Kupang 2 were disclosed on the website of PLN. This draft EIA was posted on the ADB website in March 2018. The final EIA will be disclosed on PLN’s and ADB’s website and hard copies will be provided to the village head of Lifuleo village.

J. Public Consultations to Date

558. During the course of preparation of this EIA, two consultations were held at Panaf Hamlet of Lifuleo village. The first of these consultations was held on January 29, 2018 at PNIEL Church in Panaf Hamlet, Lifuleo Village. This was attended by 72 participants from PT PLN (Persero), Asian Development Bank (ADB), PPTA Consultant, NTT Provincial Government Officials, Sub-District’s Head, Village Head, Community Leaders, Indigenous Leaders, and Project Affected Persons of Kupang Peaker 2. The purpose of the first consultation was to inform the stakeholders about the project and its likely impacts and seek their views on key environmental issues that require mitigation. 559. The second consultation was held on July 17, 2018 at the same venue. This consultation was attended by 67 participants (42 males and 25 females), from PT PLN (Persero), the Asian Development Bank (ADB), the Environmental Agency (DLH)NTT, the Center for Natural Resources Conservation (BBKASDA) NTT, the National Aquatic Conservation Center (BKKPN) Kupang, the Department of Marine and Fisheries (DKP) Kupang, the Department of Animal Husbandry Kupang District, the Head of West Kupang, representatives from Nitneo and Lifuleo Villages, Community Leader, the Customary Leader, and the Local Community Affected by the proposed Kupang Peaker-2. 560. The second consultation was held after draft environmental impact assessment was completed. The purpose of this consultation was to present the key impacts of the Project and seek stakeholders’ views on adequacy of proposed mitigation measures. A detailed presentation of project impacts and proposed mitigation measures was made during the consultation.

K. Findings

561. During the Consultation of January 2018, the community expressed support for the development of PLTMG Kupang Peaker-2. However, some members of the community were

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apprehensive of likely impacts of the project during construction and raised concerned about the safety of children, poor road conditions needing improvement, possible impacts of disposal of wastewater in coastal waters that could affect fishermen and sea weed farming, and noise and dust pollution. Members of the community also raised some issues about the damage to the Welcome Gate caused by a construction vehicle (construction of Kupang Peaker 1 had commenced at the time of consultation). Some also requested provision of better health facilities. 562. Following this first consultation, PLN improved the road signage along the approach road and commenced blacktopping 4km long section from the plant site. At the time of the second consultation, the blacktopping of the approach road was in progress. During the second consultation, the stakeholders did not seek any further explanations on operational phase air quality and noise impacts but made several suggestions on construction phase impacts. Some of the key points raised by the stakeholders are the following:

(i) Greater emphasis on managing and monitoring the impact of dust and vibrations. To mitigate the impact of dust, the head of Panaf Hamlet suggests that PLN needs to provide routine medical checkup for residents around the project.

(ii) Need to repair and increase the project road’s shoulder for the safety of riders. (iii) Need for safety and awareness training for construction vehicle drivers and the local

community near the project. Anyone associated with the project who violates speed limits or traffic signs, including those installed by the project, should face penalties or sanctions.

(iv) Emphasis to train the local community near the project site, especially youth, to meet with required qualifications to become workers.

(v) Greater effort to manage solid and liquid waste. Contractor and PLN should not dispose wastewater to marine that will impact to the fishermen and seaweed farming activities

(vi) Request to provide fences for livestock. (vii) Need for workers to report to village officials that they are non-permanent residents in

the area. (viii) The local community requested PLN to build a well to obtain clean water near the

project site and to water horticulture, to improve the productivity of agriculture and to reduce females’ work to obtain water.

(ix) Improving coordination and communication between the local community and PLN (including the focal person who manages environment and social work) and contractor.

563. A summary of the public participation events is attached as Annex B to this Report. With regard to special requests/concerns, PLN confirmed and committed to the following:

• PLN committed to provide routine medical examination services several times a year through the CSR program.

• To minimize the risk of traffic accidents, PLN will place traffic signs along the access road to limit speed to 20 km/hours, and will request the EPC contractor to provide awareness raising to its drivers to ensure careful driving behavior.

• With regard to livestock protection, PLN committed to conduct further discussions

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with the head of the village to find a better solution.

• With regard to wastewater disposal to the sea, PLN explained that the contractor will be required to treat wastewater that will meet national effluent standard prior to its discharge.

• Local workers will be recruited wherever possible for the project, based on the qualifications and needs for workers in the project. ADB emphasized that the project prohibits the recruitment of children and requested local authorities to inform PLN immediately if child labor is observed.

• With regard to improved coordination, PLN explained that the contractor will be required to regularly update the community on forthcoming activities, and advised people that concerns could be filed anytime through the project grievance redress mechanism.

564. As mentioned earlier, the construction of Kupang Peaker 1 had commenced by the time of the first consultation and had progressed significantly by the time of second consultation. The stakeholders were experiencing construction phase impacts mainly due to transportation of construction material close to the village. The main cause of these impacts was dust and vibrations due to poor state of the approach road where the road improvement works were still in progress. Though the stakeholder’s concerns and suggestions were more for managing the impacts of Kupang Peaker 1, several management measures have been added to the EMP to ensure that impacts of dust, vibrations, noise are minimized and people’s safety is ensured. Strict speed controls, training of drivers and traffic managements are some of the such measures include in the EMP. EMP also added emphasis of waste management and control on wastewater discharge into coastal environment to ensure that the ecological functioning of marine environment is not compromised due to the project.

L. Future information disclosure and public consultation

565. During the construction phase, for the communities living near to the working sites, the impacts of noise, dust, vibration, traffic, and lighting associated with construction can cause disturbances and mental stress, as well as pose a physical or health hazard. In addition, social conflicts with external workers might also arise. To avoid such situations, whether for large capital works or minor construction activities, the EPC Contractor, in consultation with the PMU and UIP, shall provide the public notification of:

• the purpose and nature of the construction activities;

• the start date and duration of the overall construction works and of specific operations (terrain clearing, transport of heavy components, etc.);

• potential impacts and monitoring results;

• information whom to contact if there are concerns/complaints related to the contractor, workers or the works.

566. A regular disclosure of information related to the management of the environmental and social matters (application of measures, monitoring efforts and results) shall be done. This can be done by means of roadside signs, poster boards in public places, newsletters, door-to-door leaflets, mail, SMS, newspapers, radio, TV, website, direct contact with village officers, etc.

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ENVIRONMENTAL MANAGEMENT PLAN

A. Introduction

567. This Environmental Management Plan (EMP) is developed for the Kupang Peaker 2 Core Subproject. It identifies the potential project environmental impacts and defines mitigation measures and monitoring requirements for the pre-construction, construction, and operational stages of the project. It also defines the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, procedures and budgets for implementation of the EMP. 568. The EMP seeks to ensure environmental protection activities during preconstruction, construction, and operation continuously improve to prevent, reduce, or mitigate adverse environmental impacts and risks. The EMP draws on the findings of this EIA, the Project Preparation Technical Assistance (PPTA) reports and the AMDAL prepared for the project, and discussions and agreements with relevant government agencies and the Asian Development Bank (ADB). 569. This EMP is based on proposed preliminary engineering design as of March 2018. Detailed engineering design is yet to be initiated, and will be conducted in framework of a Engineer, Procure and Build (EPC) contract. The EMP will be included as a separate annex in the bidding document for the EPC contract. Interested firms will be informed of their obligations to implement the EMP, and to include EMP implementation costs in their bids for project works. 570. The EMP covers the following aspects:

• The environmental factor that is likely to be impacted;

• A brief summary of the potential impact and/or likely issue;

• The identified mitigation actions that aim to eliminate and/or reduce the potential impact to acceptable levels;

• Monitoring actions to ensure that the identified mitigation measures are implemented. Monitoring actions include: inspections, review of reports/plans, reporting, and the undertaking of certain monitoring measures;

• The frequency for implementing the monitoring actions, which include: once, continuously throughout the construction/operation period (depending on the mitigation measure identified this could include daily, weekly, or monthly), or upon occurrence of a certain issue; and

• The responsible entity for implementing the mitigation measures and monitoring actions identified.

571. The EMP includes an environmental monitoring program. The monitoring results will be used to evaluate (i) the extent and severity of actual environmental impacts against the predicted impacts, (ii) the performance of the environmental protection measures and compliance with relevant Indonesian laws and regulations as well as internationally accepted standards as defined in the IFC Environment, Health and Safety Guidelines, (iii) trends of impacts, and (iv) overall effectiveness of the project EMP.

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572. The EMP is a “living document” that shall be updated by the contractor based on the then available detailed engineering before the beginning of the construction phase. In addition, the EMP shall be updated once per year, if necessary, in order to include new issues that were not or not sufficiently considered in the EMP so far. Monitoring must commence as soon as loan effectiveness date, as it includes monitoring of pre-construction measures and is required to establish baseline for some of the environmental components such as air quality and noise in a more comprehensive manner. Semi-annual monitoring reports must be provided, even if to confirm that no works commenced, etc.

B. Institutional arrangements for EMP implementation

573. PLN. PT PLN (Persero) Head Quarter (PLN Pusat) regulated by the Ministry of Energy and Mineral Resources and the Ministry of State Owned Enterprises will act as the executing agency (EA) of this project and will be responsible for overall coordination, policy directions, and administration, including those related to environmental safeguards. 574. PLN will hire a Project Implementing Consultant (PIC) including the Environmental Safeguards Specialists and an External Monitor with the following roles and responsibilities:

• The Environmental Safeguards Specialists (under the PIC), will be responsible for assisting PLN in supervising implementation of the subproject. They will coordinate closely with environmental specialists in the project management unit (PMU) and the subproject implementation unit (SPIU) and with PLN‘s consultants in charge of monitoring the implementation of the applicable environmental safeguards as defined in the EMP for the subproject along with potential corrective action plans as well as addressing environmental safeguards concerns across the various implementation stages.

• For environment category A sub-projects PLN will engage a qualified and experienced external environmental monitor, which will be approved by ADB. The external monitor will review and verify the monitoring reports regarding EMP implementation and determine if EMP provisions are being conducted in an appropriate and timely manner and in accordance with the budget identified within the EMP. The External Monitor shall undertake such monitoring on a semi-annual basis and shall submit semi-annual monitoring report to PLN and ADB.

575. EPC Contractor. The construction of the subproject will be performed by a EPC Contractor. The EPC contract and the tender documents will stipulate that the contractor is required to comply with the EMP that forms part of the EIA. The obligation shall also include the preparation of a contractor EHS Plan and eventual corrective or preventive actions set out in safeguards monitoring reports that PLN will prepare from time to time to monitor implementation of the EMP. 576. The Contractor is required to allocate a budget for compliance with these measures. Commencement of civil works is permitted only after approval of the EIA/AMDAL and completion of the compensation measures. If the bid submission or the EPC contract signature is prior to completion of the EMP, the contractor must be aware that the EMP as finalized later will apply. EPC Contractor must appoint their own environment, health and safety staff. The contract must

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not be awarded until EIA and EMP has been cleared nationally and by ADB and the EMP has been incorporated into the contract document. 577. ADB. ADB will review project performance against PLN’s commitments as agreed in the legal documents. The extent of ADB's monitoring and supervision activities will be commensurate with the project’s risks and impacts, and will be performed on an ongoing basis until a project completion report is issued. If PLN fails to comply with the legal agreements on safeguard requirements, including those described in the safeguard plans and frameworks, ADB will seek corrective measures and work with PLN to achieve compliance. If PLN fails to re-establish compliance, then ADB may exercise remedies, including suspension, cancellation, or acceleration of maturity that are available under ADB legal agreements. Before resorting to such measures, ADB will use other available means to rectify the situation satisfactory to all parties to the legal agreements, including initiating dialogue with the parties concerned to achieve compliance with legal agreements. 578. DLH. The Indonesian Ministry of Environment and Forestry (MOEF) is mandated to formulate and implement policies concerning conservation and management of ecosystems and natural resources and control of pollution and climate change. MOEF regulates environmental regulation on strategic and central level, including AMDAL. MOEF at central level is the approving authority for environmental permits for projects crossing over more than one province, and/or crossing over to other countries. Environmental permits for projects laying within province are mandated by provincial environmental agencies (Dinas Lingkungan Hidup Propinsi (DLH)) and projects within one district are handled by district environmental agencies (Dinas Lingkungan Hidup Kabupaten/DLH - Local Environmental Agency).

C. Corrective Actions to be Implemented by PLN prior to contract award

579. The quantitative assessment of noise and air quality impacts of planned power plants at Kupang power complex reveals certain non-compliance with respect to national ambient noise standards. For noise standards, it is observed that Kupang Peaker 1 will not comply with ambient national regulations of 55 dB(A) at Mangrove Beach, one of the sensitive receptors. 580. Kupang Peaker 1, therefore need to install additional noise control measures, as recommended in this EIA, to comply with ambient noise standards. Additional noise control measures also need to be implemented before award of construction contracts for Kupang Peaker 2. 581. From the air quality point of view, the model simulations undertaken for EIA assume that the national emission levels are met for Kupang Peaker 1 and Timor 1. As and when these plants are built (Kupang Peaker 1 is already under construction), PLN needs to ensure that plant design complies with the national air emission standards for NO2. and SO2 for Timor 1, only) and HSD used for Kupang Peaker 1 has sulphur content of below 0.25%. In addition, for control of PM10 for Timor 1, installation of an Electrostatic Precipitator (ESP) is considered that brings down the PM10 levels to below the national emission standards which forms the basis of air quality simulation for this EIA. 582. PLN, therefore, will ensure that the PM10 emissions considered in this EIA will be complied with for all power plants in Kupang power complex. Otherwise, PLN will require that the contractor demonstrate through air quality simulation that his design (i) complies with the national emission

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standards for PM10 and (ii) meets the national ambient air quality standards for Timor 1 and Kupang Peaker 1 (in HSD mode). 583. To control dust due to movement of construction vehicles PLN will complete the paving of entire stretch of approach road to Kupang Peaker 1 construction site (6 km out of which 4 km is already paved) and will maintain it in good operating condition throughout the construction and operation phase. 584. With regards to construction of LNG jetty, while finalizing the alignment of jetty, PLN will undertake marine survey along the alignment for damage to corals, sea grass and to detect presence of any endangered species. This task will be done in consultation and under the supervision of SPAMA. Area with the presence of sea grass will be avoided. The steps to minimize the damage to corals (IUCN -EN category), will be undertaken as described Table 37 under EMP and to assess the damage to coral and undertake rehabilitation of 120% of damaged area. Any EN benthic species will be translocated to suitable habitat. Time line for implementation of corrective action plan is provided in the table below:

Table 37: Corrective Action Plan for Compliance with Environmental Safeguards

Required Corrective Action Completion Before Project Milestone

Duration Proposed Schedule

Start Date End Date

Installation of Noise Control Measures at Kupang Peaker 1as set out in the EIA (para. 476)

Before Commencement of operation

4 months TBD June 2019

Meet national air quality emission standards for Kupang Peaker 1 as set out in Table 2 of the EIA

Within 6 months of commencement of operation

6 months TBD December

2019

Meet national air quality emission standards for Timor 1 as set out in Table 2 of the EIA

Within 6 months of commencement of operation

6 months TBD TBD

Pave the entire stretch of approach road to Kupang Peaker 1

Immediate 3 months Immediate March 2019

Minimization of damage to marine habitat due to LNG jetty, species translocation and rehabilitation of corals

3 months before commencement of construction of LNG jetty

4-5 years TBD TBD

D. Contractor Obligations Prior to Construction

1. Conduct of additional studies and surveys as part of DED

585. Following contract award but before approval of the DED, the EPC contractor must conduct a series of studies and surveys that shall inform final project design. These studies shall include, but may not be limited to, the following:

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586. Operational noise impact assessment. The EPC contractor will be required to conduct a comprehensive operational noise impact assessment, to demonstrate compliance with (i) maximum sound pressure levels at 1m from any point on any item of equipment including valves (85dBA); maximum sound pressure level at site boundary (70 dBA during daytime and 60 dBA during nighttime); and (iii) maximum sound pressure level at nearest sensitive receptor (55 dBA during daytime and 45 dBA during nighttime), or a maximum increment of 3 dBA should baseline indicate exceedance with the standard. This noise impact assessment will be based on a new baseline noise assessment at key sensitive receptors. This requirement shall be defined in the BD for the EPC contract. 587. Air quality modeling in accordance with the configuration of equipment which will be used. The dispersion modeling shall indicate the maximum concentrations of pollutants of concern at site boundary and nearest sensitive receptors, and demonstrate that national air quality standards can be achieved. 588. Water supply study, including assessment of the existing intake facility of Kupang Peaker 2 to confirm adequate supply capacity and design complying with EHS Guidelines. In case an extension is required, the EPC contractor will identify modifications in its DED. The modifications will be based on survey works to provide sufficient data on bathymetry, tidal levels, ecology, and others for design of intake structures. 589. Effluent discharge assessment, including identification of suitable discharge point to avoid any impact of corals and seaweed, and demonstrating that WWTP can achieve required effluent quality standard. 590. Detailed site investigation including soil analysis, ground elevation analysis, flood risk assessment, storm drainage analysis, and building condition survey along roads to be used by construction vehicles. 591. Operation hazard study, including fire and explosion hazard assessment and fire safety and gas detection proposal (fire detection and alarm system design); the assessment shall account for internal (i.e. within perimeter of Kupang Peaker 2) and external (e.g. LNG supply and storage system, regasification facility) hazards. The study should demonstrate that the facility will not result in unacceptable risks to facility operators and nearby communities during plant operation. The study shall be based on the rapid hazard identification (HAZID) and risk assessment conducted by an independent consulting firm (IJK Consultancy) in November 2018 (Appendix F). 592. Site-specific seismic hazard study including liquefaction study.

2. Preparation of Contractor EHS Plan 593. Following contract award but before site works commence, the EPC contractor must produce a construction or contractor EHS Plan. 594. The measures defined in the EHS Plan must follow the General IFC Health and Safety Guidelines and the IFC Environmental, Health, and Safety Guidelines for Thermal Power Plants.

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The plan will include, but not be limited to: (i) site regulations (covering security, occupational health and safety, gate control, sanitation, medical care, fire prevention, emergency preparedness and response) to ensure worker and community safety, and prevent accidents during construction works; (ii) earthwork management plan; materials management plan, giving arrangements for supply of construction materials to avoid unnecessary stockpiling outside project site; (iii) waste management plan, for handling, transport, storage and disposal of solid and liquid wastes and hazardous materials at sites approved by local authorities; (iv) drainage plan, to ensure that construction works will not cause ponding or flooding at construction camp, temporary spoil disposal site, and other areas used for project-related activities and adjacent areas; (v) temporary traffic management plan, to control safe interaction of vehicular traffic and nearby communities during construction (vi) noise and dust control plan, to minimize impacts to sensitive receptors (residential areas, school etc.) due to construction works, sourcing and transport of construction materials, and other project-related activities. The EHS Plan will first be developed for the pre-construction and construction phase, but will eventually also include the operation phase (through the development of operational manuals for all processes of the plant, including emergency preparedness and response procedures, fire prevention and fighting procedures, etc). 595. The EHS Plan shall be submitted to the PIC and PLN for review and clearance prior to construction works. The CEMP is a dynamic document and may be subject to change by the contractor as the work progresses. Periodic reviews may be necessary and these should in fact be encouraged.

3. Securing Permits for Spoil Disposal Sites, Work Areas

596. The Contractor shall obtain all required environmental permits prior to construction. These include spoil disposal sites, concrete and asphalt batching plants, waste disposal sites, working areas, etc. The Contractor must confirm that any such spoil disposal site has the relevant environmental permits.

E. Impacts and Mitigation Measures

597. Potential environmental issues and impacts during the pre-construction, construction and operation phases, as identified in the EIA as well as corresponding mitigation measures designed to minimize the impacts are identified in the Table 38 and Table 39 Mitigation includes two types of environmental measures: 598. Measures that will permanently become part of the infrastructure such as fire detection and protection facilities, wastewater collection and treatment facilities are included in the EPC contract costs, and are estimated to amount to 3% of the total investment costs. 599. Temporary measures during the construction stage (e.g. dust suppression, use of quiet / low noise powered mechanical equipment, provision of sedimentation basins for suspended solids in construction site runoff, provision of sanitary facilities for construction workers, etc) will be included in the bidding document to ensure that EPC contractor includes them in their budgets. The implementation of these measures is estimated to cost 1% of the total investment costs. 600. The mitigation measures defined in the EMP will be (i) checked and where necessary re-designed by the PIC prior to construction and the EMP subsequently updated, as needed; (ii) incorporated into the EHS Plan of the EPC Contractor; and (iii) implemented by EPC Contractor

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under supervision of the PLN/UIP and the PIC. The effectiveness of these measures will be evaluated based on the results of the environmental effect monitoring conducted by the EPC Contractor and the UIP, and through EMP compliance verification conducted by the EEMC.

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Table 38: Environmental Management and Monitoring Plan for Kupang Peaker 2 - Pre-Construction and Construction phase

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

Detailed Design and Pre-Construction Phase

Safety Audit for planned facilities

• The safety of the planned LNG supply, storage and regasification; and HSD supply and storage (for Kupang Peaker 1) shall be assessed in the framework of a safety audit to be commissioned by PLN once draft Detailed Engineering Design (DED) is available.

• The safety audit shall assess the fire and explosion risk of planned facilities (LNG supply, storage and regasification, and supply and storage of HSD for Kupang Peaker 1. The audit shall be submitted to PLN and ADB for review prior to approval of the DED.

Not Applicable- Before approval of DED

PLN, Contractor

• Demonstrate through the conduct of a safety risk assessment at DED stage that no member of the community nearby the facilities will be at risk in case of a fire or explosion due to any storage and use of fuel at the Kupang Peaker 2.

Not Applicable- Before approval of DED

Contractor

GHG performance

• Ensure that Kupang Peaker 2 gas engines are designed to achieve a net efficiency of 38-45% of LHV (Low Heat Value) and CO2 emissions below or equal to 549 tCO2/GWh as required by IFC EHS Guidelines for Thermal Power Plants for gas engines.

Not Applicable Before approval of DED

Contractor

Detailed site investigation

• Conduct detailed site investigation including soil analysis, ground elevation analysis, flood risk assessment, assessment of Tsunami risk, storm drainage analysis, and vegetation to be cleared.

• Install advance warning signal for tsunami alert to warn the workers to take timely safety measures and construct a tsunami shelter at a nearby location at safer grounds. An emergency evacuation plan will be prepared for such an event.

Not Applicable Before approval of DED

Contractor

• Plan for LNG and HSD emergency scenario, in the event of a ssunami event

Not Applicable Before approval of DED

PLN

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Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

Consideration of operation phase impacts in the detailed engineering design (noise, air emissions, water intake and effluent discharge)

• Ensure by design of water intake system for operations phase that water is abstracted through a collector tub to ensure that the water intake velocities are within 0.15m/s and no sea biota is sucked into the intake pipe.

• The design of Kupang Peaker 2 power plant shall guarantee that the relevant performance standards for noise (day and night noise levels, as presented in Table 5 of EIA) can be achieved.

• The contractor shall conduct a comprehensive operational noise impact assessment as part of the DED, to demonstrate compliance with (i) maximum sound pressure levels at 1m from any point on any item of equipment including valves (85dB(A)); maximum sound pressure level at site boundary (70 dB(A) during daytime and 60 dB(A) during nighttime); and (iii) maximum sound pressure level at nearest sensitive receptor (55 dB(A) during daytime and 45 dB(A) during nighttime), or a maximum increment of 3 dB(A) should baseline indicate exceedance with the standard.

• As part of the noise impact assessment, the contractor shall undertake a 48 hours noise survey at the site boundary and Panaf village. to establish the baseline day and night noise conditions. Additional secondary noise mitigation (e.g. acoustic barriers) must be incorporated into the design to ensure that ambient noise at sensitive receptor locations due to project alone is <45dB(A) or results in <3dB(A) above night time background.

• The updated noise impact assessment requires review by ADB review.

Not Applicable- Before approval of DED

Contractor

• Kupang Peaker 2 shall be designed with 45m stacks and achieve emission standards set out in Table 3 of the EIA for gas engines for >50MWth for NO2 and TSP. Any adjustment to the stack height must be justified through detailed dispersion modeling at DED stage.

• For SO2 fuel to be used must be have sulfur content of 0.25% or below.

Not Applicable- Before approval of DED

Contractor

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Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

• Undertake a 48 hours air quality survey at Panaf Village, Mangrove beach, Archina beach and project site to establish baseline air quality in terms of SO2, NO2 and PM10., during the dry season with Timor 1 and Kupang Peaker 1 in operation.

• If the air quality survey concludes that the airshed is ‚degraded‘, revisit plant design (for projected demand of 5 years) to ensure that plant’s contribution to ambient air pollution is <10% of short term standards and <1% of long term applicable air quality standards (by air quality modeling simulation).

• Submit updated AQ assessment to PLN/ADB for approval

• Conduct water supply and wastewater discharge assessment. The water intake must comply with IFC EHS Guidelines and the wastewater treatment system must ensure that discharge standards set out in Table 6 of the EIA can be complied with.

Not Applicable- Before approval of DED

Contractor

Seismic considerations in plant design

• Conduct seismic hazard study and demonstrate that power plant structural design is seismically safe for anticipated seismic risks. The structural design is to be checked by a suitably qualified and experienced third-party structural engineer who is independent of PLN, their designer and contractor.

Not Applicable Before approval of DED

Contractor and PLN

Fire and explosion risk assessment

• Undertake quantitative risk assessment (QRA) of Kupang Peaker 2 design to confirm risk to communities is normal and to workers is ALARP per BS 1473 or equivalent.

• The study shall include fire and explosion hazard assessment and fire safety and gas detection proposal (fire detection and alarm system design account for internal (i.e. within perimeter of Kupang Peaker 2) and external (e.g. LNG storage, regasification and HSD storage tank of Kupang Peaker 1) hazards.

• The study should demonstrate that the facility will not result in unacceptable risks to facility operators and nearby communities during plant operation.

Not Applicable Before approval of DED

Contractor

Integration of aesthetic elements in design

• Incorporate landscape architecture elements into the detailed project design to optimize harmonious integration of the infrastructure into the landscape.

All construction areas.

Before approval of DED

Contractor

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Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

EHS Plan including site specific construction phase management plans

• Before commencement of construction, develop, and submit to PLN and ADB for clearance, a contractor‘s EHS plan. The measures defined therein must follow the General IFC Health and Safety Guidelines and the IFC Environmental, Health, and Safety Guidelines for Thermal Power Plants. The plan shall include, but not be limited to: o site regulations (covering security, facilities and provisions at

construction camps, occupational health and safety, gate control, pollution prevention and sanitation, medical care, fire prevention, emergency preparedness and response) to ensure worker and community safety, and prevent accidents during construction works;

o earthwork management plan including topsoil storage and management plan; Materials Management Plan, giving arrangements for supply of construction materials to avoid unnecessary stockpiling outside project site.

o waste management plan, for handling, transport, storage and disposal of solid and liquid wastes and hazardous materials at sites approved by local authorities;

o drainage plan, to ensure that construction works will not cause ponding or flooding at construction camp, temporary spoil disposal site, and other areas used for project-related activities and adjacent areas;

o temporary traffic management plan, to control safe interaction of vehicular traffic and river traffic with nearby communities during construction.

o noise, vibrations and dust control plan, to minimize impacts to sensitive receptors (residential areas) due to construction works, sourcing and transport of construction materials, and other project-related activities.

• The EHS Plan shall first be developed for the pre-construction and construction phase, but shall eventually also include the operation phase (through the development of operational manuals for all processes of the plant, including emergency

All construction sites and approaches to the site (road and river)

Before commencement of construction

Contractor

154

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

preparedness and response procedures, fire prevention and fighting procedures, etc.).

Staffing for supervision of EMP

• Before commencement of any works, the contractor must employ and have the following staff based full time at the site (separate positions): o Construction manager o H&S manager (Construction Safety Manager) o Environmental manager

All Construction Sites

Before commencement of construction

Contractor

• Before commencement of any works PLN must employ the following: o Supervising Engineer with EHS certification and expertise o External Environment Monitor (report verification)

Not Applicable Before commencement of construction

PLN

Community consultations and awareness

• Site specific construction phase EHS Plan must be presented to the community and their relevant suggestions should be incorporated.

• Construction methods for temporary jetty and river traffic management must be discussed with fishing community and their concurrence to planned mitigation and management measures be taken

Panaf Village Before commencement of construction

Contractor

• Grievance redress mechanism must be explained to the local residents during a public presentation prior to the beginning of the construction activities.

• PLN to implement awareness raising campaign for local community on dangers associated with construction works and power plant once operational.

Panaf Village Before commencement of construction

PLN, Contractor

Corrective actions

• Implement the corrective action plan defined in Section C of this EMP including the following measures: a) Pave the entire 6 km of access road to the construction site

of Kupang Peaker 1 b) Minimization damage to coastal ecosystem during

construction of LNG jetty, in consultation with and under the supervision of SPAMA, by:

As specified under the corrective action

As specified under the corrective action

PLN

155

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

(i) a preliminary survey of seabed along the conceptual jetty alignment to assess likely damage to corals and suggest changes in alignment, as feasible, to reduce the impact

(ii) to undertake a baseline survey on corals recording the species and status of corals along the final jetty alignment, 2 to 3 months before the commencement of construction work for jetty. This survey will cover a seabed area twice the size of the trestle area of LNG jetty,

(iii) to undertake a post-construction survey on completion of LNG jetty construction of seabed to assess the damage to corals due to construction of jetty. This survey will be completed within two months of completion of construction,

(iv) to undertake rehabilitation of corals, 120% of the estimated damage under step (iii)

(v) Translocate any IUCN-EN category benthic fauna along the jetty alignment and

(vi) Avoid sea grass patches by shifting the alignment suitably. (The cost of surveys and coral rehabilitation is estimated to be IDR 600 million ($42,000) and IDR 500 million ($35,000), respectively. The rehabilitation cost estimate is provided for rehabilitation of 120m2 of corals).

Protection of wildlife and conserving biodiversity

• Develop a code of conduct for workers to eliminate any likelihood of their involvement in illegal poaching, collection of birds or other wildlife for sale, or fishing or damaging the coral reefs (selling of corals to tourists) or the seagrass areas. Strict penalties and surveillance protocol should be worked out in consultation with PLN and approved by ADB.

• Undertake ecological survey of construction footprint of intake and outfall to confirm coral and seagrass habitat are avoided.

• Submit design with updated assessment of ecological impact for intake and outfall for approval PLN/ADB.

Natural Habitat around the ProJet area

Before commencement of construction

Contractor

156

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

• Submit design for wastewater treatment systems to meet IFC EHS guideline/national standards (surface water, grey water, black water) to PLN/ADB for approval

Establish safe vibration limits for sensitive structures

• Undertake a structural survey of sensitive houses/structures (structurally weak) along the approach road and determine the safe vibrational limit for these structures.

Along the approach road

Before commencement of construction,

Contractor

Construction Phase

Recording of Pollution and H&S Incidence and Corrective Actions

• During construction the following must be recorded and reported to [PLN/ADB] within 24 hours of occurrence of major or fatal incident and 72 hours of near miss or minor incident with a plan for corrective action: o Pollution incident (near miss, minor, major) o H&S incident (near miss, minor, lost time, fatal)

All construction sites and approaches

Throughout the construction

Contractor

Sourcing of Construction material

• Only existing licensed sources of materials shall be used for construction. No borrow pit or quarry shall be opend for the project.

Not Applicable Throughout the construction

Contractor

Sanitation environmental and PPE requirements for Workers’ Camp

• Offices and workers accommodation must be located within the fenced Kupang Peaker 2 site boundary. If another location is used an assessment of the impact must be submitted for approval by PLN/ADB. It must also be agreed with the community at Panaf village. The worker camp must be fenced with security.

• No siting of offices, workers accommodation, septic tanks or soak pits within 500m of sea of houses or groundwater wells, Graveyard, Church. The worker camp, must be in accordance with the pollution, health and safety measures set out in the General IFC Health and Safety Guidelines (2007) and EBRD/IFC Guidelines on Worker Accommodation.

• Workers must be provided with drinking water meeting INO drinking water standards. If imported test certificates must be obtained, if provided by PLN the drinking water must be tested weekly for compliance.

• To minimize the personal risks for the workers, PPE equipment (ear muffs, safety boots, warning vests) must be provided by the

All construction sites

Throughout the construction

Contractor

157

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

contractor and the proper use of this equipment must be regularly supervised.

• No under 18 to be employed in any role under the project, PLN to check eligibility of workers.

Physical Environment

Soil erosion and degradation

• The contractor shall notify the Owner in writing at least 3 working days prior to the start of earthwork, and submit for the Owner’s approval a plan of operation with complete details of the method of excavation, type of equipment to be used, proposed method of diversion of drainage, safety measures to be applied, and others.

• Excavation slopes shall be protected and supported, where required, so that the slopes and bottoms will be maintained so that adjacent structures or other construction and workers will be protected from damage caused by any earth or rock movement.

• Trees shall be felled in such a manner as not to damage trees or other vegetation indicated to remain in place, not to damage existing structures and facilities, nor constitute a hazard to traffic or occupational safety. No trees shall be cut outside the clearing limits and all trees designated by the Owner to be left intact shall be protected from damage by the contractor.

• No explosives shall be used for any construction activity for the project.

• Soil densification and disturbance due to heavy machinery must be avoided outside of construction sites and access roads by installing warning signs and warning tapes and routine monitoring during the construction.

• Topsoil shall be recovered from temporary or permanent project sites before the ground is disturbed and then stored until it is needed for rehabilitation measures at the end of the construction activities. A topsoil storage and management program shall be developed by the contractor. The exposed surfaces will be regreened by a suitable vegetation cover soon after completion of construction using the stored topsoil.

• No grading and earth moving shall start in any area until clearing, grubbing and stripping have been completed for that area.

All working areas including adjacent open area

Regularly during construction works

Contractor

158

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

• All materials excavated during clearing, grubbing and stripping operations that cannot be reused internally shall be disposed in disposal areas designated by the Owner and with the necessary environmental permits.

• Construct temporary drainage ditches, culverts and other structures as required to divert/drain water from the work areas. A pond shall be construction to treat surface runoff prior to discharge to the environment. No surface runoff shall be ponded or restructured to a greater degree than would have occurred naturally before construction. The contractor shall control suspended solids concentration of discharge water to below 50mg/L in order to prevent pollution in the receiving water bodies.

• Spill kits shall be available in all transport vehicles and at the construction site. A pollution prevention and response plan must be set up by the contractor describing timely applied protection measures against spills. Training must be provided for all drivers and equipment operators.

• Install warning signs and warning tapes and undertake regular monitoring to avoid soil densification and disturbance due to heavy machinery operations outside of construction area and access roads.

All working areas

• Plant appropriate grass mixtures to initially stabilize vegetation free construction areas; afterwards, the landscape soils with native plants.

All working areas Immediately after completion of construction works

Contractor

• All the potentially dangerous products that can contaminate the soil during the construction works must be stored, disposed or recovered safely as per IFC EHS Guidelines (with 110% bunds).

All working areas Regularly during construction works

Contractor

• Construction works must be performed in a way to minimize surface erosion.

All working areas Regularly during construction works

Contractor

159

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

• No dredging will be undertaken for construction of Kupang Peaker 2

• No dumping of excavated material at the coastline or in (dry) water streams to the sea is permitted. All waste excavated material will be disposed in a licensed landfill for construction waste.

Coastal area Regularly during construction works

Contractor

• Where excavation is carried out, landscape works shall be performed after finalisation of the construction works.

All construction areas

Regularly during construction works

Contractor

• Disposal operations must be conducted so as to prevent any unnecessary destruction, scarring or defacing of the soils

Disposal areas Regularly during construction works

Contractor

Soil pollution by waste deposition

Develop a Waste Management Plan (within the HSE Management Plan) containing measures such as: - Coordinate with the Municipality or hire a competent private

contractor for the collection of solid waste from the site to the municipal approved and engineered landfill.

- Distribute appropriate number of properly contained litter bins and containers properly marked for the different types of waste, such as: recyclable, hazardous, for landfill, etc. Hazardous waste will be stored in designated storage area designed as per the IFC EHS Guidelines requirements.

- Place contaminated soil safety at the temporary hazardous waste storage area.

- Provide spill kits in all transport vehicles and at construction site. - Require the contractor to prepare an emergency spill response

plan. - Train drivers and equipment operators about the emergency spill

response plan. - Maintain records and manifests that indicate volume of waste

generated onsite, collected by contractor, and disposed of. The numbers within the records are to be consistent to ensure no illegal dumping at the site or other areas

All construction and surrounding areas

Before the ground levelling works Regularly during construction works

Contractor, PLN

Pollution of the surface waters by sediments, solid and liquid waste, oil leaks

Risk of groundwater pollution with oil, fuels or waste

160

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

- The construction waste shall be recycled as much as possible on site

- Any construction debris generated shall be removed from the site immediately after the completion of construction activities

- Sanitary toilets must be made available in the workers’ camps and the waste water originated must be properly disposed as per the IFC EHS/EBRD Guidelines for workers’ accommodation.

- Enforce prohibition of littering - Developing and implementing a general soil erosion and

sedimentation control plan - Use new and well-maintained vehicles - The maintenance of the vehicles shall only be done in areas

located 500 m away from the water resources. - Ensure that a minimum of 1,000 liters of general-purpose spill

absorbent is available at hazardous material storage facility. - If spillage occurs, spill must be immediately contained, cleaned-

up, and contaminated soil disposed as hazardous waste. - Fuel, oil, chemicals and wastes are to be stored in accordance

with IFC EHS Guideline requirements, all liquid and putrespible wastes to be on impermeable surface bunded with 110% capacity to contain any spills

- All pollution incident (near miss, minor, major) and action taken to be recorded

- The suspended solids in runoff discharge should not exceed 50 mg/l as per the IFC EHS guidelines.

- If drainage water is contaminated, it must be drained into appropriate facilities (such as sumps and pits). Drainage must be pumped and disposed of as hazardous waste.

-

161

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

Pollution of marine water due to the discharge of wastewater from the construction camp; and construction site.

• Maintaining a 20 m wide vegetation buffer between the project coast line and coastward boundary of construction site,

• Channelize all site run-offs through a sedimentation basin with oil separator with a minimum retention period of 60 minutes

• Providing two layers of geotextile rolls in the effluent channels leading to sea to arrest any residual suspended solids. The geotextile rolls will be periodically replaced and cleaned. The contractor will ensure that the suspended solids in run-off from the site are below 50mg/l (IFC EHS guidelines).

• Pass the grey (Kitchen and bathing areas) wastewater from workers’ camp through a grey wastewater treatment system (oil and grease trap and rock filter) and store it at site in a pond/lined pit for re-use for dust suppression and landscaping. When not required the water will overflow through a gravity fed sand filter to drainage line (pipe) leading to sea.

Workers’ camp

Regularly during construction works

Contractor

• Provide a constructed subsurface wetland or a suitably designed wastewater treatment system to treat sewage from workers’ camp and contractor’s office. Channelize the effluents to treated grey water storage pond for further use or disposal. The wastewater system will be designed in accordance with IFC EHS Guidelines to be approved before works

• Pass the wastewater for washing of vehicles through an oil separator before joining the greywater stream.

• No untreated wastewater will be discharged to land or sea. All treated wastewater must per be the standards in Table 6 EIA

• Ensure that the treated effluent discharge pipe is in the intertidal zone at a minimum distance of 200m from the nearest discharge location from Kupang Peaker 1.

• While laying the intake (if not attached to jetty) and discharge pipe lines, care will be exercised that no important marine ecological features are disturbed.

• The intake and discharge pipelines will be laid under full time supervision of a marine ecologist to ensure this is the case

All working areas, Coastal areas

All through construction works

Contractor

162

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

Air pollution due to emissions of particulates and gases from construction operations and circulation and usage of equipment and vehicles

• Ensure that the entire access road to project site from the arterial road (6 km), is paved and maintained in good condition throughout the construction period.

Access road to the project site

Initial stage of construction

Contractor

• Cover the internal pathways and the working area with non-pulverulent material (gravel, grit, concrete, bitumen)

Construction areas All transport routes

Before and regularly during construction works

Contractor

• Water the non-paved pathways and working areas, especially on windy and dry days. Watering should be done a minimum of two times in a day and more often if dusty conditions prevail. Application of water using tanker mounted water sprinklers is recommended.

All working areas All transport routes

Regularly during construction works

Contractor

• Cover the load of every truck transporting pulverulent materials with adequate cover.

All working areas All transport routes

Regularly during construction works

Contractor

• Store the pulverulent materials in closed compartments; whenever this is not feasible, water these materials.

Construction areas Regularly during construction works

Contractor

• Use new vehicles or well-maintained vehicles and construction equipment complying with emission standards. Monitoring such compliance quarterly.

All working areas All transport routes

During construction works

Contractor

• Do not place pulverulent materials in non- protected areas situated upwind of offices or workers’ housing

All working areas During construction works

Contractor

• Set fences with enough height to separate the construction site from the outside areas.

All working areas Previous to construction works

Contractor

• Regularly seek feedback from local residents on effectiveness of mitigation measures for dust, vibrations and noise control.

Residential areas Prior to and regularly during construction works

Contractor

• Regardless of the size or type of vehicle, fleet owners / operators shall implement the manufacturer recommended engine maintenance programs.

All working areas All transport routes

Regularly during construction works

Contractor

• Drivers shall be instructed on the benefits of safe driving practices that reduce both the risk of accidents and fuel consumption and maintain speed limits recommended in this EIA.

• Exercise speed control measures (10 km per hour within the construction site, 30 km per hour on the access road to the

All working areas All transport routes

Prior to and regularly during construction works

Contractor

163

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

construction site and 15 km/hour for material laden construction vehicles while passing through settlements along the access road). to minimize dust, noise and vibrations due to traffic and also lower the risk of accidents.

• Set up a traffic management plan is to monitoring that the speed limits are adhered to.

• During the construction phase, the contractor will install vibration monitors at a sensitive receptor in Panaf hamlet, and will ensure that vibrations at the sensitive receptors are within the safe limits.

• As a precaution and for traffic safety, all vehicles carrying construction material will maintain a speed limit of 15 km/hour while passing through the villages.

• In the event of any complaints from the villagers, contractor will take appropriate additional measures to address the grievance.

• Vehicles shall have emissions control devices, such as catalytic converters.

All working areas All transport routes

Prior to and during construction works

Contractor

Noise and vibration nuisance due to construction operations and circulation and usage of equipment and vehicles

• Selection of equipment with lower sound power levels and use of properly maintained equipment and vehicles.

All working areas All transport routes

During construction works

Contractor

• Install acoustic bafflers in the structures housing noise generating machinery.

All working areas Prior to construction works

Contractor

• Perform the noisy construction activities only during day time (7 am to 10 pm).

• Comply with IFC EHS Guidelines on OHS noise exposure. The noisy working areas to be signed accordingly and ear protection provided when performance standards exceeded

All working areas During construction works

Contractor

• If generators are used, locate them far from (minimum 200 m) the workers’ housing. In case this is not possible, enclose the generators in sound enclosures with a minimum noise attenuation of 10 dB(A).

Workers’ housing During construction works

Contractor

Changes in landscape as a result of excavation

• Remove all the waste and leftover materials from the site promptly.

All working areas Immediately after completion of construction works

Contractor

164

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

works withdrawal and disposal of materials

• Re-cultivate and re-vegetate the access roads and temporary construction sites that will no longer be needed, with local plant types and soil cover

All working areas All transport routes

Immediately after completion of construction works

Contractor

• Delimitation of valuable biotopes and habitats before construction activities begin with signal bands - if necessary (e.g. mangrove forest)

All construction areas

During construction works

Contractor

Natural Environment

• The marine vessels transporting construction material, while passing through LSMNP during the period of cetacean migration (October-December and March-May), will assign a suitably trained crew member to observe and report presence of cetacean in vessel’s path. On such occurrence the vessel speed will be immediately reduced to 10 km/h, to ensure safe passage for migrating cetacean.

• The movement vessels transporting construction material between the shipping lane and temporary jetty (about 2 km) will be under guidance of a pilot boat. During this movement, the pilot boat will ensure that the vessels speed is 4 km/h or less to avoid possibility of collision with slow moving turtles, likely to be present in the area.

LNG jetty and Adjoining shipping lane

All through the construction

Contractor

Disturbance of biotopes and habitats

• Do not undertake piling for LNG jetty during cetacean migration period in Semau strait.

LNG jetty

Applicable during construction of LNG jetty for Kupang Peaker 1

Kupang Peaker 1 Contractor through PLN

• Use silt curtains around piles during construction to minimize damage to corals due to sedimentation.

LNG jetty

Applicable during construction of LNG jetty for Kupang Peaker 1

Kupang Peaker 1 Contractor

• Undertake strict surveillance and impose penalties for any deviations from workers protocol for protection of wildlife and conservation of biodiversity.

Natural habitat around the project

Previous and during construction works

PLN and Contractor

165

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

• Display of clear sign boards and warnings to remind workers to stay away from natural habitat around

Natural habitat around the project

Previous and during construction period

Contractor

• Restriction of all construction activities to absolutely necessary areas.

All working areas and their vicinities

Previous and during construction works

Contractor

• Survey by engaging trained ecologists the terrestrial and marine life around the project site

Coastal areas in front of the construction site and adjoining area of Tuadale lake wildlife reserve

Annually, based on specialists advise

PLN

• Provide fencing or other marking to guide the workers to confine the construction related activities to designated sites.

Wider construction area

At commencement of construction

Contractor

Impact on vegetation (trees)

• Conduct vegetation survey and impact assessment as part of the site survey. If tree cutting is required, replace lost trees by new tree planting in a 1:2 ratio at least.

• Survey of the natural vegetation and cultural trees within and near the construction site. Take corrective action is if a loss or adverse change is observed.

All construction areas

At the end of the construction phase, before commencement of operation

Contractor

Human Environment (Socio-economic resources)

Exposure of workers and local people to hazards at the construction site (pollution, accidents, diseases)

• Develop an emergency preparedness and response plan in accordance with the plan outlined in Annex H of this EMP.

• Establish and maintain health and safety plan in accordance to emergency preparedness and response pan.

• Appoint a Construction Safety Manager as accident prevention and response officer. He/she shall have the authority to issue instructions and take protective measures to prevent accidents.

• Organize environmental management, safety and health training and awareness for all workers. Provide training to all drivers and equipment operators on safe operations of vehicles/equipment.

• Ensure that medical staff, first aid facilities and ambulance services are available at all times at the Site. Regular medical checks by trained medical staff will be performed for all construction workers

All working areas Prior to and during construction works

Contractor

166

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

• Construction of the camp to accommodate the workers outside the village limits.

• Ensure lodging and food supply to the workers, adequate water supply, sanitation system, management of waste and camp cleaning as per IFC EHS Guidelines for Occupational Health and Safety.

• Mount general safety advice and warnings at prominent points at construction camps and working area

• Provide personal protective equipment (PPE) for the workers

• Use appropriate vehicles (with features required to contain hazardous waste in case of an accident or toppling) for the transport of hazardous materials.

• Provide face masks to the workers working it dusty areas of construction site and make the use of such masks mandatory.

Health problems in the population due to the project implementation

• Prepare and implement health awareness program as per IFC EHS Guidelines for Community Health and Safety.

Project area Prior to construction works

PLN (with Health authorities)

• Provide access to skilled medical personal to the residents of Panaf village

• Skilled health personnel and appropriate first aid equipment must be continuously available in the worker camp.

• An ambulance should be stationed at the construction site for any medical emergency.

Project Area During construction works

Contractor

Social stress between the local residents and the foreign workers

• Ensure that water resources used by Panaf and adjoining villages along the access road are not used for construction purpose.

• Provide vocational training to local residents for gainful employment with the project.

• The workers’ camp site will be within the confine of Kupang Peaker 2 fenced area.

Panaf Village Prior to / at beginning of construction works

Contractor

• Accommodate all foreign/migrant workers in a workers’ camp outside the limits of existing villages

All working areas Prior to / at beginning of construction works

Contractor

167

Issue / Potential Impact Mitigation Action Location Timing and frequency

Action Party

• Designate a project representative to proactively receive and resolve complaints of the people in relation to social conduct of workers.

Construction site Continuously during construction works

PLN

• Limit the construction activities strictly to absolutely required areas - usage of agricultural land, even if temporary, has to be avoided.

All working areas During construction works

PLN, Contractor

Loss of access to infrastructures

• Have a share in the benefits of the project by assisting the local village with water supply and health services.

Affected communities

Prior to and during construction works

PLN

• Provide the new communities with material, social and administrative infrastructure and services in such a way that the population is able to compensate losses or hardships

Affected communities

Prior to and during construction works

PLN

Complaints and problems with the local population

• Regularly address the community complaints through Grievance Redress Mechanism set-up as per this EIA (Chapter VIII)

Project site Continuously during the first 3 years of the operation phase

PLN/Contractor

Impact on cultural heritage – site preparation activities could potentially disturb /damage cultural sites and archaeological remains which could be present within the Project site.

• Fence the church and the cemetery at Panaf village to avoid unintended damage from the construction activities

• observe traditional ceremonies with due consideration of three important places that shall be protected: Graveyard, Church and Residential areas.

Church and cemetery at Panaf hamlet

Prior to construction works

Contractor

• Implement appropriate measures for chance find procedures which mainly include that construction activities be halted and the area fenced, while immediately notifying the responsible authorities.

• No additional work will be allowed before the authorities assess the found potential archaeological site.

• The contractor will include the respective contact data and the procedure in his Environment, Health and Safety Plan and during workers‘ training.

All working and surrounding areas

Upon occurrence Contractor

168

Table 39: Environmental Management Plan for Kupang Peaker 2 - Operation phase

Issue / Potential Impact Mitigation Actions Location Timing and frequency

Action Party

Physical Environment

Soil pollution due to spills of waste and toxic substances

• Develop and implement waste management plan/manual and an emergency spill response plan/manual. These shall be reviewed and approved by PLN prior to operation.

• Manage the solid waste by segregating recyclables, non-recyclables, hazardous waste; and composting the organic waste.

• Provide appropriate number of properly contained litter bins and containers properly marked for the different types of waste, such as: recyclable, hazardous, oil, chemicals, waste for landfill/treatment, etc and enforce prohibition of littering.

• Fuel, oil, chemicals and wastes are to be stored in accordance with IFC EHS Guideline requirements and Regulation of Chairman of Bapedal No. 01 (1995). All liquid and putrescible wastes to be placed on impermeable surface bunded with 110% capacity to contain any spills.

• Coordinate with the Municipality or hire a competent private contractor for the collection of solid waste from the site to a suitably designed and licensed landfill.

• Ensure sound maintenance of approach roads and drainage facilities.

• Use well maintained vehicles during operation and ensure that any maintenance works are done in areas located away from the water resources.

• Provide spill kits in all transport vehicles and at plant site.

• Train drivers and equipment operators to implement the emergency spill response plan.

• Ensure hazardous waste at the site are placed orderly stored in well-designed hazardous waste storage facilities. The storage facility will be regularly inspected and faults/gaps will be immediately rectified.

Plant site Regularly during operation

Operator

169

Issue / Potential Impact Mitigation Actions Location Timing and frequency

Action Party

• Maintain records and manifests that indicate volume of hazardous waste generated onsite and collected by licensed contractors. The numbers within the records are to be consistent to ensure no illegal dumping at the site or other areas

• Ensure that a minimum of 1,000 liters of general-purpose spill absorbent is available at hazardous material storage facility.

• If spillage occurs, spill must be immediately contained, cleaned-up, and contaminated soil disposed as hazardous waste.

• Place contaminated soil safety at the temporary hazardous waste storage area.

Surface and groundwater pollution from wastewater

• PLN to apply for and obtain the required permit to cover the wastewater releases from Kupang Peaker 2 before it is permitted to operate.

Plant site Prior to operation

PLN

• Ensure that process wastewater is collected on-site and treated in the on-site treatment facility. Ensure that treated effluents will comply with effluent standards provided in Table 6-Standards for Kupang Peaker 2 of this EIA.

• For power plant intake the sea water will be abstracted through a collector tub to ensure that the intake velocities are within 0.15m/s and no sea biota is sucked into the intake pipe

• Unbuilt surfaces at the plant site will be landscaped with grass and bushes to ensure that the runoff from the plant site do not carry added silt load.

• The runoffs from the plant site will be channelized and uniformly distributed over the 20 m wide buffer of coastal vegetation maintained along coastal boundary of the plant to ensure that no additional silt load is released to coastal environmental from the plant.

• Domestic wastewater from the plant site will be treated through wastewater treatment plant built for treating construction phase sewage, and will meet the IFC EHS guidelines for discharge of

Plant site

Regularly during operation Semi-annual monitoring of effluent

Operator

170

Issue / Potential Impact Mitigation Actions Location Timing and frequency

Action Party

treated domestic effluents as well as guidelines for discharge from thermal power plant.

• The wastewater treatment facility must provide 2-year storage capacity for accumulating sludge. Sludge emptied from the facility shall be transported by a qualified operator and disposed of in accordance with national regulations

The operation of the plant contributes to the degradation of air quality and emissions of GHG in the project area

• Ensure that the plant meets the national standards for emissions of SO2, NO2 and PM10 (more stringent than specified in IFC Environment Health and Safety Guidelines for Thermal Power Plants (December 2008)) as presented in Table 2 of the EIA.

• Every 4th year undertake air quality simulation to check air quality compliance with ADB policy for projected demand for next 5 years. In case a policy violation is anticipated, install additional air quality control measures to ensure that project impacts are within those required by policy (GLCs <10% of short-term standards and <1% of long-term applicable air quality standards)

• The Kupang Peaker 2 plant will be fired with LNG from regular commissioning. Diesel shall be used only in rare emergency cases (unexpected fault in LNG supply or delay in LNG delivery due to inclement weather) and for a short period of not more than 7 days per year for annual maintenance of LNG delivery, storage and regasification system.

• In case Diesel has to be used, the sulfur content of the HSD must be below 0.25 % S, as required by the national regulation.

• Unless it is shown by air quality modelling based on actual emissions at the power complex that longer hours of operation are permissible; Kupang Peaker 2 will run with HSD for no more than six hours during the evening peak demand hours (instead of planned 5 hours from 5 pm to 10 pm).

• The maximum daily operations of Kupang Peaker 2 with HSD will be limited to within those indicated as permissible by air quality modelling.

Kupang Peaker 2

All through operation

Operator

171

Issue / Potential Impact Mitigation Actions Location Timing and frequency

Action Party

• Install continuous emissions monitoring system (CEMS) to monitor SO2, NO2 and PM10 at each stack of Kupang Peaker 2.

• Conduct monthly ambient air quality at site boundary and nearest sensitive receptors (Panaf village).

• Quantify total greenhouse gas emissions for Kupang Peaker 2 during operation and report these in regular monitoring reports and also report to ADB if emissions are above 100,000 CO2eq Tons annually.

• Maintain the plant in optimal working conditions to minimize the air emissions and keep the CO2 emissions within the designed range.

• Minimize leaks of natural gas and efficiently manage air conditioning equipment to minimize losses of HFC’s to the atmosphere.

• During the first year of operation, undertake quarterly stack monitoring to ensure compliance of standards.

• Once the regular compliance is achieved, the stack monitoring will be undertaken every six months.

• Six monthly air quality monitoring will be undertaken at plant site and Panaf village for SO2, NO2, and PM10. On each instance, air quality monitoring will be undertaken for 3 days including a weekday and a weekend..

Kupang Peaker 2 All through operation

PLN

Noise from operation of Kupang Peaker 1 and 2. power plants

• Implement additional noise controls at Kupang Peaker 1 power plant as per para 522 of the EIA.

Kupang Peaker 1 All through operation

Operator • Operate noise control measures for Kupang Peaker 2 that

includes stack silencer and silencer at gas engine air intake openings and silencer at combustion air intake openings for each gas engine as per para 523 of the EIA or the noise mitigations measures approved during the pre-construction phase for Kupang Peaker 2.

Kupang Peaker 2 Regularly during operation

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Issue / Potential Impact Mitigation Actions Location Timing and frequency

Action Party

• Conduct periodic noise monitoring near equipment, at site boundary and at nearest sensitive receptors.

• Provide secondary noise protection measures, e.g. protection walls or fences near sensitive receptors, if the ambient noise standards exceed those provided in Table 5 of this EIA (IFC EHS Guidelines for Noise).

Sensitive receptor sites

As required during operations

Natural Environment

Impacts on habitats and local marine and terrestrial wildlife

• LNG vessels will follow IFC EHS Guidelines on Shipping including regulating ballast discharge of project-associated vessels in accordance with IMO (2004) guidelines to avoid introduction of invasive species.

• LNG Operations will follow IFC EHS Guidelines on LNG Facilities

• The LNG vessel while passing through LSMNP during the period of cetacean migration (October-December and March-May), will assign a suitably trained crew member to observe and report presence of cetacean in vessel’s path. On such occurrence the vessel speed will be immediately reduced to 10 km/h, to ensure safe passage for migrating cetacean.

• The movement LNG vessel between the shipping lane and LNG jetty (about 2 km) will be under guidance of a pilot boat. During this movement, the pilot boat will ensure that the LNG vessel speed is 4 km/h or less to avoid possibility of collision with slow moving turtles, likely to be present in the area.

.

LNG jetty and Adjoining shipping lane

All through the operations

• Operator

• Provide semi-annual information dissemination and awareness campaigns for plant workers by a trained ecologist on preservation of adjoining costal and terrestrial natural habitat.

• Monitor human activity near adjoining the coastline and Tudale lake wildlife sanitary area and impose restriction by workers to access to the natural habitat by fencing and patrolling the plant boundary by a third-party security agency.

Plant site Regularly during operations

Operator

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Issue / Potential Impact Mitigation Actions Location Timing and frequency

Action Party

• Ensure during the leisure time the plant workers do not poach wildlife or do fishing or impair valuable habitats.

• Introduce and maintain prohibition/ penalties to workers to ensure ‘zero ‘interaction of workers with marine and terrestrial wildlife.

• to undertake six monthly surveys of coral rehabilitation until a growth of 1 cm is achieved for rehabilitated corals (this is expected to be achieved in one year after completion of rehabilitation).

• Undertake additional coral rehabilitation if the monitoring of coral rehabilitation (by or under supervision by SPDMA) indicates a shortfall

Coral rehabilitation area

Until completion of coral rehabilitation

PLN

Human Environment (Socio-economic resources)

Noise nuisance due to the operation of the power plant

• Maintain noise protection measures and demonstrate compliance with (i) maximum sound pressure levels at 1m from any point on any item of equipment including valves (85dBA); maximum sound pressure level at site boundary (70 dBA during daytime and 60 dBA during nighttime); and (iii) maximum sound pressure level at nearest sensitive receptor (55 dBA during daytime and 45 dBA during nighttime), or a maximum increment of 3 dBA should baseline indicate exceedance with the standard.

• Limit the access to the areas of higher plant noise with clear warning signs and make use of ear muffs obligatory.

• Ensure that necessary safety gear (ear muffs) is provided to workers working in noisy area and their exposure to noise does not exceed OHS noise standards prescribed by IFC EHS Guidelines.

Noise generating Power Plant Components

Regularly during operation

Operator

Occupational Health and Safety

• Ensure compliance with the Law on Labor

• Establish and implement emergency preparedness and response (EPR) procedures. The procedures shall be submitted to PLN for review and approval, and tested during trial operation.

Kupang Peaker 2 Continuously during operation

Operator

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Issue / Potential Impact Mitigation Actions Location Timing and frequency

Action Party

• Regularly inform and train his staff regarding health and safety issues (e.g. PPE), emergency response (e.g. accidents, spills), and transferrable diseases (e.g. HIV/AIDS).

• Provide all workers with, and enforce use of PPE.

• Ensure adequate supply of drinking water of tested water quality and sanitation for plant workers following IFC EHS Guidelines for Occupation Health and Safety.

• All visitors to the site shall receive appropriate H&S instructions and personal equipment

• Conduct regular visual inspection of the workers and their daily tasks to ensure that the safety measures are adhered to. Limit access to danger sours area to only trained workers for the task.

• Compile annual reports on EHS performance, implement corrective actions, if necessary.

Risk of fires and explosions (LNG supply, HSD storage)

• Prepare and implement emergency preparedness and response (EPR) system which shall be triggered in case of gas leaks, fires or explosions or collision of LNG vessel.

• Prepare a detailed manual and provide regular training to staff and nearby communities to respond to emergencies. Install and maintain emergency shutdown walves (ESD) within the power stations‘ inner boundary fence to isolate the LNG fuel supply for the entire generating plant.

• Install and maintain automatic fire protection, gas detection and alarm system. All critical facilities shall be connected to the automated system.

• In order to prevent the spread of fire by cables in floor voids and other enclosed space not protected with fire extinguishing systems\all cables shall be completely coated with a water-resistant fire-retardant coating.

Kupang Peaker 2 Continuously during operation

Operator

Recording of Pollution and H&S Incidence and Corrective Actions

• During operations the following must be recorded and reported to [PLN/ADB] within 24 hours of occurrence of major or fatal incident and 72 hours of near miss or minor incident with a plan for corrective action:

Plant site Throughout the Operation

Operator

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Issue / Potential Impact Mitigation Actions Location Timing and frequency

Action Party

o Pollution incident (near miss, minor, major) o H&S incident (near miss, minor, lost time, fatal)

Community health and safety risks, community concerns

• Train the community on EPR plan, display the contact numbers of local authorities, hospitals and designated plant authorities and designate persons responsible to coordinate immediate response actions with the community.

• Set up a grievance redress mechanism, inform local people on how to file complaints during a public presentation at the beginning of the operation activities.

Panaf village Panaf village and villages along the approach road to pant

Regularly during operation

PLN / Operator

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F. Monitoring, Reporting

a. Monitoring 601. An environmental monitoring plan has been defined for the subproject in accordance with the Government of Indonesia and ADB requirements. The plan focuses on environmental compliance monitoring and environmental quality monitoring (e.g. air, water, soil, vibration and noise) during pre-construction, construction and operation. 602. Monitoring will include environmental compliance monitoring (to be conducted by the UIP with support of the PIC, and to be verified by the EEMC) and environmental quality monitoring (to be conducted by the UIP, potentially to be sub-contracted to a licensed monitoring entity). The EPC Contractor will also be required to conduct frequent air quality and noise monitoring around construction sites at nearest sensitive receptors. Monitoring arrangements defined for this subproject are described in Table 40 and Table 41.

b. Reporting 603. The following reports related to the implementation of the EMP will be prepared and submitted to relevant agencies. 604. Monthly progress reports by the EPC Contractor (to the UIP, PMU). The EPC Contractor will submit monthly progress reports to the UIP and PMU. These reports will include reporting on EMP implementation performance as well as results of the internal ambient quality monitoring (noise, air quality, surface water quality). 605. Quarterly reports by the UIP (to the PMU). The UIP will submit quarterly reports to the PMU. These reports shall include a comprehensive section on EMP and EHS Plan implementation progress, grievances received, minor and major infringements, occupational accidents, and necessary corrective actions. 606. Semi-annual environmental monitoring reports by PMU/PLN (to ADB). The PMU will submit semi-annual environmental monitoring reports to ADB for clearance and disclosure. The reports will follow the template prescribed by ADB. Semi-annual reporting shall continue after construction completion until the project completion report is issued. 607. Annual external verification reports by the EEMC (to PLN, ADB). Besides the internal self-monitoring, the auditing of the implementation of the mitigation and monitoring measures for the Project will be done by experienced external environmental monitoring consultant (EEMC). The progress of EMP implementation with supporting environmental monitoring and audit report will be submitted to ADB annually during construction and operation. The EEMC will submit annual independent EMP verification reports to PLN and ADB. These reports will be disclosed to AHs. Independent EMP verification shall continue after construction completion until the project completion report is issued.

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Table 40: Monitoring Requirements during Pre-Construction, Construction and Operation Phase

Purpose/Issue Monitoring actions Location Timing and Frequency

Action Party

Pre-Construction Phase

Establish baseline noise quality at sensitive receptors

Undertake noise monitoring continuously for 48 hours, recording the hourly equivalent noise levels in dB(A) at Panaf Village and at the entry gate to the plant near the security booth.

Panaf Village and Entry gate to plant

During DED Contractor

Establish baseline air quality at sensitive receptors

Undertake air quality monitoring for NOx, SO2 and PM10 for a minimum of three days extending over one week including a weekend to establish baseline air quality near project area.

Panaf Village and at project site

During DED Contractor

Establish baseline sea water quality near wastewater discharge point

Undertake sea water quality monitoring for 3 days collecting 2 samples daily at 100 m from the coastline. The monitoring parameters for water quality must include all the parameters as set out in Table 5 of the IFC Environmental, Health, and Safety Guidelines for Thermal Power Plants, including temperature and for sanitary wastewater, as set out in the IFC General Environmental, Health, and Safety Guidelines on water, including faecal coliform. Mark the location with a marine buoy for future sampling during construction and operation phase.

Coastal sea fronting the wastewater discharge location

During DED Contractor

Establish baseline for groundwater quality

Undertake groundwater quality monitoring at Panaf village. Nearest well at Panaf Village to site boundary

During DED Contractor

Construction Phase

(A) Compliance Monitoring for EMP Implementation

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Purpose/Issue Monitoring actions Location Timing and Frequency

Action Party

Soil erosion, degradation of soil or water quality due to spillage of waste

Visual inspection of all construction areas including coastal area extending up to the temporary jetty (Kupang Peaker 1 site) and approach road from Kupang Peaker 1 to construction site to detect areas subject to erosion, sedimentation, and soil pollution (signs of spillage of oil, municipal waste or hazardous substance) during daily construction supervision.

All working areas

Daily during construction works

Contractor

Monthly during construction works

PLN (PIC)

Monitor the application of waste (hazardous waste, construction waste and municipal waste) management procedures (handling, storage, disposal and transportation); identify and report areas of concern for immediate corrective actions

All working areas

Daily during construction works

Contractor

Monthly during construction works

PLN (PIC)

Monitor records of hazardous waste generation, storage and disposal to ensure no illegal dumping/disposal of hazardous waste

Hazardous waste storage area

Weekly during construction

Contractor

Monthly during construction works

PLN (PIC)

Monitor sediments flow or visual signs of oily residues in water, at all outlets from the site into the river. If abnormal presence of sediments or oil is detected, identify cause of water pollution, review mitigation measures, identify and implement corrective actions.

All effluent outlets from construction site

Daily during construction

Contractor

Monthly during construction works

PLN (PIC)

Visually monitor coast fronting the project site and area along the construction site boundary towards Tudale Lake wildlife sanctuary to detect any signs of dumping of waste, scarring of natural vegetation or disposal of effluents to take immediate corrective actions, Including restoration of damage, enhanced vigilance and action against the offenders.

Marine and terrestrial habitat adjoining the construction site boundary

Weekly during construction works

Contractor

Monthly during construction works

PLN (PIC)

Monitor the hazardous waste storage facility for compliance with construction phase storage, inventory and disposal requirements. In

Hazardous waste storage facility

Daily during construction

Contractor

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Purpose/Issue Monitoring actions Location Timing and Frequency

Action Party

Effective management of hazardous waste

case any gap/defect at the hazardous waste storage facility is observed, take immediate action to rectify it.

Monthly during construction works

PLN (PIC)

Air pollution due to emissions of particulates and gases from construction operations and circulation and usage of equipment and vehicles

Monitor implementation of dust and air pollution control measures as per construction phase EMP.

Construction site and approach roads

Weekly during construction

Contractor

Monthly during construction works

PLN (PIC)

Monitor use of personal protective equipment to protect from dust– face masks by the workers working at dusty construction areas

Construction site

Daily during construction

Contractor

Monthly during construction works

PLN (PIC)

Noise Control

Monitor implementation of noise control measures as per the construction phase EMP.

Construction sites

Weekly Contractor

Monthly during construction works

PLN (PIC)

Conduct spot checks to ensure that construction machinery noise emission levels do not exceed the specifications provided in construction contract and in compliance with the good international practice.

Specified distance from construction machinery

Random, all through construction

Contractor

Monthly during construction works

PLN (PIC)

Protection of natural habitat

Daily monitoring of human activities adjoining the boundary of construction site (place permanent guards with training in conservation) to ensure compliance of wildlife protection measures mentioned in the construction phase EMP.

All along the construction site boundary with the Tudale Lake wildlife sanctuary and coast line

Daily during construction

Contractor

Monthly during construction works

PLN (PIC)

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Purpose/Issue Monitoring actions Location Timing and Frequency

Action Party

External verification of EMP implementation

Verify compliance with EMP provisions, relevance and accuracy of monitoring results.

At construction site Semi-annually during construction

External environment monitor

(B) Environmental quality monitoring for assessing effectiveness of EMP Implementation

Surface water quality monitoring

Monitor sea water quality at the location of establishing sea water quality at during the DED stage. The monitoring parameters for water quality must include all the parameters as set out in Table 5 of the IFC Environmental, Health, and Safety Guidelines for Thermal Power Plants, including temperature and for sanitary wastewater, as set out in the IFC General Environmental, Health, and Safety Guidelines on water, including faecal coliform. Relevant standard Environmental Minister Decree No. 55/MENLH/2013, concerning wastewater discharge standards; and IFC Effluent Guidelines as stipulated in the IFC EHS Guidelines – Thermal Power Plants, 2008

Coastal waters adjoining discharge point (Marked location during baseline survey)

Quarterly during construction/ Monthly for turbidity and SS

Contractor

Groundwater quality monitoring

Groundwater quality monitoring at nearest well to site boundary at Panaf Village. Relevant standard: Ministry of Health’s Regulation No.492/2010 with regard Drinking Water Quality Standard; Government Regulation No. 82 Year 2001 regarding Water Quality Management and Water Pollution Control.

Panaf Village (same well as baseline monitoring point)

Quarterly during construction

Contractor

Effluent monitoring

Effluent quality monitoring at effluent outlet leading to sea to ensure that effluent quality complies with the discharge standards (Table 6 – Effluent standard for Kupang Peaker 2). In case of any exceedance, take corrective actions within 48 hours. Relevant standard: Environmental Minister Decree No. 55/MENLH/2013, concerning wastewater discharge standard; EIA Table 6.

Inlet to effluent channel to sea

Monthly during construction

Contractor

Air quality monitoring Monitoring air quality for NOx, SO2 and PM10 for a minimum of three days extending over one week, including a weekend, every quarter, at all sensitive receptors.

Panaf Village, workers camp and

Quarterly during construction works

Contractor

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Purpose/Issue Monitoring actions Location Timing and Frequency

Action Party

Monitoring of TSP at workers’ camp, construction office and entry gate. Relevant standard: Government Decree No. 41/1999

entry gate to plant near security booth

Ambient noise monitoring

Noise monitoring at site boundary during pneumatic drilling to ensure compliance with 70dB(A) standard at site boundary (for 1 hour to measure hourly equivalent noise during peak construction activity for the day)

Site boundary towards Panaf Village

Daily during pneumatic drilling

Contractor

Noise monitoring during daytime and nighttime, measuring hourly equivalent noise levels at Panaf Village and construction site boundary (the nearest sensitive receptors) from construction site to demonstrate compliance with the IFC EHS standards for ambient noise. Relevant standard: IFC EHS General Guidelines – Table 1.7 Noise Level Guidelines and Table 2.3.1 Noise Limits for Various Working Environment.

Panaf Village, Security post at boundary of construction site

Weekly Contractor

Biodiversity survey Survey of the terrestrial and marine life around the project site

Coastal areas in front of the construction site and adjoining area of Tuadale Lake wildlife reserve

Annually, based on specialists advise

PLN

Operation Phase

(A) Compliance Monitoring for EMP Implementation

Operational Phase EMP measures

Monitor implementation of EMP measures for operation phase Plant site Continuously during operations

Operator

Monitor and supervise implementation of EMP measures for operation phase

Plant site Monthly, during operations

PLN

(B) Environmental Monitoring to ensure policy compliance

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Purpose/Issue Monitoring actions Location Timing and Frequency

Action Party

Water quality monitoring

Water quality monitoring at inlet to effluent channel leading to coastal discharge point to ensure that the effluent quality complies with the discharge standards (Table 6 – Effluent standard for Kupang Peaker 2). In case of any exceedance, take corrective actions within 48 hours. Relevant standard: Environmental Minister Decree No. 55/MENLH/2013, concerning wastewater discharge standard; EIA Table 6.

Effluent Channel Monthly, during operations

Operator

Air quality monitoring

Continuous emissions monitoring (CEMS) of SO2, NO2 and PM10 at each stack of Kupang Peaker 2. Relevant standard: Ministry of Environment Regulation No. 21 of 2008; IFC emission guidelines for facilities larger than 50 MWth with combustion turbines and combustion engines (IFC, 2008)

Kupang Peaker 2 (All stacks)

Continuously during operation

Operator

In addition, during the first year of operation, undertake quarterly manual stack monitoring to ensure compliance of emission standards presented in Table 2 of the EIA for gas engines. Once the regular compliance is achieved, the manual stack monitoring will be undertaken every six months.

Kupang Peaker 2 (All stacks)

Quarterly/every six months during operations

Operator

Undertake quarterly stack monitoring at the existing plants (Kupang Peaker 1 and Timor 1), during first year of operations to confirm that these plants comply with national emission standards. Once the compliance is established the stack monitoring frequency at the existing plants will be lowered to once in six months. Relevant standard: Ministry of Environment Regulation No. 21 of 2008; IFC emission guidelines for facilities larger than 50 MWth with combustion turbines and combustion engines (IFC, 2008)

Kupang Peaker 1 and Timor 1 (all stacks)

Quarterly/every six months during operations

PLN

Six monthly air quality monitoring at plant boundary at the entry gate near the security post and Panaf Village for SO2, NO2, and PM10. On each instance, air quality monitoring shall be undertaken for 3 days over a period of one week including a working day and a weekend. Relevant standard: Government Decree No. 41/1999

Entry to plant and Panaf Village

Six monthly PLN

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Purpose/Issue Monitoring actions Location Timing and Frequency

Action Party

Ambient noise monitoring

Noise monitoring during daytime and nighttime, measuring hourly equivalent noise levels at Panaf Village (the nearest sensitive receptor) from plant site to demonstrate compliance with the IFC EHS standards for ambient noise. Relevant standard: IFC EHS General Guidelines – Table 1.7 Noise Level Guidelines and Table 2.3.1 Noise Limits for Various Working Environment.

Near equipment, at site boundary and at nearest sensitive receptors (Panaf Village)

Monthly Operator

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Table 41: External Auditing Plan for the Kupang Peaker 2

Project Phase Auditing Actions

Auditing Party

Reporting Action

Schedule/ Status

Pre-construction and Construction

Semi-annual construction site audits shall be performed to ensure that the mitigation and monitoring measures are being implemented.

EEMC To PLN

Headquarters

First audit at start of construction and from then every 12 months

Operation

Annual audits to ensure that the mitigation and monitoring measures are being implemented.

EEMC To PLN

Headquarters

First audit one month after start of operation and from then on, every year

G. Emergency/Incident Response Procedures during Facility Installation

a. Institutional arrangements and responsibilities 608. As part of the contractor’s EMP and its EHS Plan, the EPC Contractor should develop emergency or incident response procedures during facility installation (fire, explosion, earthquakes, tsunamis, etc). In the operational phase, PLN, the operator and civil authorities will have responsibility for any emergencies or serious incidents. The installation phase should ensure:

• Emergency Response Team (ERT) of the EPC Contractor as initial responder with PLN staff support;

• The Kupang fire and police departments, emergency medical services, etc, collectively referred to as the External Emergency Response Team (EERT), as ultimate responders.

609. The EPC Contractor will provide and sustain the required technical, human and financial resources for quick response during installation. 610. The EPC Contractor shall at all times take all reasonable precautions to maintain the health and safety of the Contractor’s Personnel. In collaboration with local health, police and fire fighting authorities, the Contractor shall ensure that medical staff, first aid facilities and ambulance services are available at all times at the Site. The EPC Contractor shall appoint a Construction

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Safety Manager as accident prevention and response officer. The Construction Safety Manager shall have the authority to issue instructions and take protective measures to prevent accidents. 611. The EPC Contractor shall send to PLN details of any accidents as soon as possible but not later than 24 hours after its occurrence. The EPC Contractor shall maintain records and make reports concerning health, safety and welfare of persons, and damage to property, as part of the monthly progress reports to PLN.

Table 42: Roles and responsibilities in emergency/incident response

Entity Responsibilities

Contractor Team (ERT) Communicates/alerts the EERT. Prepares the emergency site to facilitate the response action of the EERT, e.g.: vacating, clearing, restricting site. When necessary and requested by the EERT, lends support/provides assistance during EERT’s response operations.

External Emergency Response Team (EERT)

Solves the emergency/incident.

Contractor Resources Provides and sustain the people, equipment, tools and funds necessary to ensure quickly response to emergency situations. Maintain good communication lines with the EERT to ensure prompt help response and adequate protection, by keeping them informed of implementation progress. Send to PLN details of any accident as soon as practicable but not later than 24 hours after its occurrence.

612. The ERT will be led by the Construction Safety Manager (designated ERT Leader) on site with a suitably trained foreman or junior engineer as deputy. Trained first-aiders and security crew will be the core members of the ERT. The Contractor will ensure that ERT members are physically, technically and psychologically fit for their emergency response roles and responsibilities. Prior to the mobilization of civil works, the Contractor, through its Construction Manager, ERT Leader, in coordination with PLN, will meet with the ultimate response institutions to discuss the overall installation process, including, but not limited to:

• work sites

• installation time frame and phasing

• any special construction techniques and equipment that will be used

• any hazardous materials that will be brought to and stored in the construction premises and details on their applications and handling/management system

• the Contractor’s Emergency Management Plan

• names and contact details of the ERT members

613. The objective of this meeting is to provide the ultimate response institutions the context for:

• their comments on the adequacy of the respective Emergency Management Plans

• their own assessment of what types, likely magnitude and likely incidence rate of potential hazards are anticipated

• the arrangements for coordination and collaboration.

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614. To ensure effective emergency response, prior to mobilization of civil works, the Contractor will:

• set up the ERT

• set up all support equipment and facilities in working condition

• make arrangements with the EERT

• conducted proper training of ERT members, and encouraged and trained volunteers from the work force;

• conduct orientation to all construction workers on the emergency response procedures and facilities, particularly evacuation procedures, evacuation routes, evacuation assembly points, and self-first response, among others; and

• conduct drills for different possible situations.

615. To sustain effective emergency response throughout implementation an adequate budget shall be provided to sustain the capabilities and efficiency of the emergency response mechanism, the emergency response equipment, tools, facilities and supplies. Drills and reminders will take place regularly.

b. Alert Procedures 616. Means of communicating, reporting and alerting an emergency situation may be any combination of the following: (i) audible alarm (siren, bell or gong); (ii) visual alarm (blinking/rotating red light or orange safety flag); (iii) telephone (landline); (iv) mobile phone; (v) two-way radio; and (vi) public address system/loud speakers. Some rules relative to communicating/alerting will be: 617. Whoever detects an emergency situation first shall immediately: (i) call the attention of other people in the emergency site; (ii) sound the nearest alarm, and/or; (iii) report/communicate the emergency situation to the ERT. 618. Only the ERT Leader and, if ERT Leader is not available, the Deputy ERT Leader are authorized to communicate with the EERT. Exceptional cases to this rule may be necessary and should be defined in the Emergency Management Plans. When communicating/alerting an emergency to the EERT, it is important to provide them with at least: (i) the type of emergency situation; (ii) correct location of the emergency; (ii) estimated magnitude of the situation; (iii) estimated persons harmed; (iv) time it happened; (v) in case of a spill, which hazardous substance spilled; and (vi) in case of fire and explosion, what caused it. Such details would allow the EERT to prepare for the appropriate response actions. 619. For an effective reporting/alerting of an emergency situation, the names and contact details of the relevant persons and institutions should be readily available in, or near to, all forms of communication equipment, and strategically posted ie:

• Most relevant construction/operations staffs namely, the ERT Leader, Deputy ERT Leader, first aiders, supervising engineers, foremen

• EERT institutions/organizations

• Concerned village authority/ies

• PLN

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620. The site should have good access to any combination of audible and visual alarms, landline phones, mobile phones and two-way radio communication at all times.

c. Emergency Response Situations 621. The following tables suggest general procedures that will be refined during detailed design, and described in more detail in the EHS Plan of the Contractor’s construction EMP.

Table 43: Evacuation Procedure

Procedure Remarks

Move out as quickly as possible as a group, but avoid panic

All workers/staff, sub-contractors, site visitors to move out, guided by the ERT

Evacuate through the directed evacuation route. The safe evacuation shall have been determined fast by the ERTL/Deputy ERTL & immediately communicated to ERT members.

Keep moving until everyone is safely away from the emergency site and its influence area.

A restricted area must be established outside the emergency site, all to stay beyond the restricted area.

Once outside, conduct head counts Foremen to do head counts of their sub-groups; ERTL/Deputy ERTL of the ERT.

Report missing persons to EERT immediately. ERTL/Deputy ERTL to communicate with the EERT

Assist the injured in evacuation & hand them over to the ERT first-aiders or EERT medical group

ERT to manage injured persons to ensure proper handling.

If injury warrants special care, DO NOT MOVE them, unless necessary & instructed/directed by the EERT.

ERTL/Deputy ERTL communicates with EERT to get instructions/directions in handling the injured.

Table 44: Response Procedure During Medical Emergency

Procedure Remarks

Administer First Aid regardless of severity immediately.

Fundamentals when giving First Aid:

• Safety first of both the rescuer and the victim.

• Do not move an injured person unless:

• victim is exposed to more danger when left where they are, e.g., during fire, chemical spill it would be impossible for EERT to aid victims in their locations, e.g., under a collapsed structure

• instructed or directed by the EERT.

• First AID to be conducted only by a person who has been properly trained in giving First Aid.

Call the EERT emergency medical services &/or nearest hospital.

ERTL/Deputy ERTL or authorized on-site emergency communicator

Facilitate leading the EERT to the emergency site. ERTL/Deputy ERTL to instruct: an ERT member on- site to meet EERT in access road/strategic location. He/she shall hold orange safety flag to get their attention & lead them to site. Other ERT members to clear access road for smooth passage of the EERT.

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If applicable, vacate site & influence area at once, restrict site, suspend work until further notice.

Follow evacuation procedure.

Table 45: Response Procedure In Case of Fire/Explosion

Procedure Remarks

Alert a fire situation. Whoever detects the fire shall immediately:

• call the attention of other people in the site,

• sound the nearest alarm, and/or

• Foreman or any ERT member among the construction sub-group contacts the fire department (in this case it should be agreed on that it is alright for any ERT member in the sub-group to alert the fire department)

• report/communicate the emergency situation to the ERTL/Deputy ERTL

Stop all activities/operations and evacuate. All (non-ERT) workers/staff sub-contractors, site visitors and concerned public to move out to safe grounds following the evacuation procedure.

Activate ERT to contain fire/control fire from spreading.

Guided by the training they undertook, ERT members assigned to mitigate the fire shall assess their own safety situation first before attempting to control fire spread.

Call the nearest fire & police stations &, if applicable, emergency medical services.

When alerting the EERT, ERTL will give the location, cause of fire, estimated fire alarm rating, any injuries.

ERT to vacate the site as soon as their safety is assessed as in danger.

Follow appropriate evacuation procedure

H. Costs of EMP Implementation

622. In this specific planning case the EMP does not include all environmental components of construction or rehabilitation costs, as these measures still have to be defined based on the final layout of the power plant site and detailed planning by the contractor. This detailed planning was not available at the time when this EIA Report was compiled. 623. The contractor has to take care that the EMP and the SMP for the construction period are practically applied at the construction site during the whole construction period.623. For this reason, a local environmental and social expert shall be employed by the contractor and shall be present at the construction site to conduct continuous environmental and social site supervision, and to write down relevant findings in his daily, weekly, and monthly site supervision reports. 624. The findings of the monthly reports from the contractor shall be summarized in form of quarterly or semi-annual construction site reports which will be prepared by external environmental experts contracted by PLN. 625. During the operation phase it is the obligation of the project operator to take care that the national environmental laws and regulations are met and that the EMP is practically applied. 626. Based on statements from the PLN staff the approximative costs are as follows:

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(iii) Annual costs of an Indonesian environmental expert employed by PLN/Contractor during the construction period: IDR 30,000,000 - 40,000,000 per month, i.e. max. IDR 480,000,000 per year

(iv) Costs for the semi-annual monitoring of the operating plant, overall costs for

the Monitoring Report: IDR 40,000,000 per half-year, i.e. IDR 80,000,000 per year.

627. In addition to EMP monitoring, PLN is required to undertake coral rehabilitation for construction of LNG jetty for Kupang Peaker 1. PLN will conduct a marine survey to estimate expected damage after the alignment and dimensions of the LNG jetty are finalized. This EIA uses the information available for Timor 1 jetty to estimate cost of coral rehabilitation. Accordingly, it is estimated that the overall cost for coral rehabilitation (surveys to estimate damage, rehabilitation and post-rehabilitation surveys) will be within IDR 1100 million ($ 77,000).

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OVERALL FINDINGS AND RECOMMENDATIONS

628. The impacts caused by the planned standalone project Kupang Peaker 2 are assessed as not significant after application of the proposed mitigation measures. 629. LNG fired power plant Kupang Peaker 2 (HSD as backup fuel) having an installed capacity of 50 MW and designed to operate as a Peaker plant is a small power generation facility. Such facilities typically do not have any significant impacts other than air quality and noise impacts. The plant however is located at western most tip of Timor island in Kupang Regency, adjoining the Sawu Sea Aquatic National Park (LSMNP) that extends up to 400 km to the west and is home to several IUCN red-listed species. On the east, there exists Tudale lake wild life reserve that too is home to rare species and contains a mangrove forest in fair condition. The plant also leads to cumulative impacts on air and noise with existing, under construction and proposed projects. 630. Assessment of impacts of Kapung Peaker 2 on surrounding natural habitat and cumulative impacts on noise and air quality therefore formed were the key areas of investigation during this EIA. The EIA also considered the construction phase impacts and other lesser impacts during operations while recommending the mitigation measures. Two consultations with stakeholders were conducted to scope the project and present EIAs findings and incorporating their concerns in the EIA. 631. Although the coastal area adjoining the project forms a part of utilization zone of LSMNP where several activities (including water abstraction, effluent discharge complying with national standards and shipping is permitted), a marine study undertaken by the project, interactions with the fishermen and observations by the project team concluded that the marine ecosystem adjoining the project has important ecological features and w of conservation significance. Specially presence of critically endangered Hawksbill turtle was confirmed in the project area. Though the investigations could not establish if the project area was a critical habitat for the species, due to presence of food source for the species and nearby nesting site (7 km from the project site), as a precautionary measure, the project area is considered as critical habitat and applicable provisions of ADB policy have been applied. 632. Due to small marine footprint of the project, the assessment could conclude that primary impacts of the project on marine as well as terrestrial environment were negligible and project could be supported by ADB provided its secondary impacts due to workers’ intrusion into marine or terrestrial habitat and potential collision of LNG vessel with marine life could be controlled. The EMP makes necessary recommendations in this context. 633. As a sound basis for an assessment of the impacts caused by noise and air emissions, respective expert studies with noise and air dispersion calculations were conducted, which considered the cumulative impacts of the relevant noise and air emission sources from the existing Bolok power plant (a coal and diesel fired power plant located at 13 km NNE of project) planned power plant facilities for Timor 1 and Kupang Peaker 1 (under construction) as well as the forecasted emissions from the planned Kupang Peaker 2. Wherever more than one project option exists, ““worst case scenarios” were used for the emission calculations and impact assessment.

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634. The results of these calculations show that for SO2, due to the impact of Timor 1 power plant, the 24-hourly average GLCs at nearby receptors to the Project are higher than the WHO GL for 24 hourly average (20 µg/m3). As per ADB policy therefore the airshed for SO2 is termed as ‘degraded’. The SO2 contribution due to the project, in HSD mode, at all locations are however insignificant and within the permissible levels. The Project therefore complies with the ADB policy for its impacts in terms of SO2. For gas mode operations the Project will not add to SO2. 635. For NO2 the GLC under cumulative impacts considerations are within WHO GL for 1 hourly average (200 µg/m3) at all receptors. There are some exceedances to WHO GL but these are limited to within the plant boundaries and therefore the airshed is terms as ‘non-degraded’ for NO2. The Project contribution to NO2 at any point being within 25% of the 1 hourly average national ambient air quality standards (400 µg/m3), the project thus complies with ADB policy for NO2. PM10 emissions in the airshed are low and PM10 GLCs are well within the WHO standards. These results have been obtained considering the stack height of Kupang Peaker 2 as 45 m. In terms of cumulative impacts, the Bolok power plant 13 km north of the project does not significant influence the air quality at locations proximate to the Project. It though has some influence on northern region of the airshed. 636. Regarding noise, an expert noise study was done that provides quantitative assessment of noise impacts and recommend to meet the national and international standards. It is observed that none of the projects, in standalone mode, exceeds the noise standards at Panaf village. In cumulative mode, though, the noise exceeds the standards. Additional appropriate noise control measures for Kupang Peaker 1 as well as Kupang Peaker 2 have been recommended for project to comply with applicable ambient noise standards. The following key commitments are necessary to maintain the environmental impacts of Kupang Peaker 2 to an acceptable level:

(i) Operate Kupang Peaker 2 with LNG under normal operations and only in emergency and in short-term with HSD (Sulphur below 0.25%).

(ii) Ensure minimum stack height of all stacks for Timor1, Kupang Peaker 1 and Kupang Peaker 2 to be 80m, 27m and 45m, respectively, or demonstrate at DED stage through detailed dispersion modeling that NAQS can be achieved at lower stack heights.

(iii) All plants need to comply with national air emissions standards. (iv) Installation of recommended additional noise control measures for Kupang Peaker

1 (additional) and for Kupang Peaker 2. (v) Develop a wildlife conservation protocol, as recommended, for workers and

impose strict penalties against offenders. (vi) Maintain vigilance on LNG vessels for presence of cetacean in vessel’s path and

reduce speed, if presence is detected. (vii) Lead all marine vessels to project site under guidance of a pilot boat maintaining

cruise speed within 4 km/h.

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REFERENCES

Fichtner, November 2016, Rapid Environmental Assessment Report - Final ADB, 2006: Country Synthesis Report on Urban Air Quality Management - Indonesia, Asian Development Bank and the Clean Air Initiative for Asian Cities (CAI-Asia) Center, 2006 ECD, 2008: Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner air for Europe EPA, 1992: Screening Procedures for Estimating the Air Quality Impact of Stationary Sources. EPA-454/R-92-019. U.S. Environmental Protection Agency, Research Triangle Park, NC 27711, 1992 EPA, 2015: National Ambient Air Quality Standards (40 CFR part 50) IFC, 2007: Environmental, Health, and Safety Guidelines - General EHS Guidelines: Air Emissions and Ambient Air Quality, International Finance Corporation, April 2007 IFC, 2008: Environmental, Health, and Safety Guidelines for Thermal Power Plants, International Finance Corporation, December 2008 OME, 2008: Methodology for modeling assessments of contaminants with 10-minute average standards and guidelines under O. Reg. 419/05, Ontario Ministry of the Environment, Canada, April 2008 PT PLN (PERSEO), 2015, Feasibility Study Kupang-1 Gas Fired Power Plant (Peaker) PT PLN (PERSEO), 2016, Draft UKL-UPL for Kupang Peaker 2 Southall, B.L., A.E. Bowles, W.T. Ellison, J.J. Finneran, R.L. Gentry, C.R. Greene, Jr., D. Kastak, D.R. Ketten, J.H. Miller, P.E. Nachtigall, W.J. Richardson, J.A. Thomas, and P.L. Tyack. 2007. Marine mammal noise exposure criteria: Initial scientific recommendations. Aquatic Mammals 33: 411-521. Available at: http://www.pinnipedlab.org/publications/pub_131_2007.pdf. Accessed August 5, 2011. URL 1: https://www.cia.gov/library/publications/the-world-factbook/geos/id.html URL 2: http://www.lavalontouristinfo.com/lavalon/timor.htm WHO, 1995: Occupational Exposure to Noise: Evaluation, Prevention and Control, WHO, 1995 WHO, 1999: Hazard prevention and control in the work environment: Airborne Dust, WHO, Geneva, August 1999

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WHO, 2005: Air quality guidelines - global update 2005, World Health Organization, Genève, Switzerland, 2005