Mott MacDonald Report Template

Ulubelu Units 3 & 4 Supplemental ESIA –

Volume I

Non-Technical Summary

September 2014

Pertamina Geothermal Energy

314049 TRD EFR 001 B

314049_Ulubelu NTS_RevB

September 2014

Ulubelu Units 3 & 4 Supplemental ESIA – Volume I


Ulubelu Units 3 & 4 Supplemental ESIA – Volume I


September 2014

Pertamina Geothermal Energy

Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom

T +44 (0)1273 365 000 F +44(0) 1273 365 100 W www.mottmac.com

Menara Cakrawala 15th floor, Jalan MH. Thamrin No. 09 - Jakarta 10340, Indonesia

Ulubelu Units 3 & 4 Supplemental ESIA – Volume I Non-Technical Summary

314049/TRD/EFR/001/B September 2014 314049_Ulubelu NTS_RevB

Revision Date Originator Checker Approver Description Standard

A 01/08/2014 Shalini Arora Ian Scott Ian Scott 1st Draft, for comment

B 18/09/2014 Shalini Arora Ian Scott Ian Scott 2nd Draft, for disclosure

Issue and revision record

This document is issued for the party which commissioned it and for specific purposes connected with the above-captioned project only. It should not be relied upon by any other party or used for any other purpose.

We accept no responsibility for the consequences of this document being relied upon by any other party, or being used for any other purpose, or containing any error or omission which is due to an error or omission in data supplied to us by other parties.

This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it..



Section Title Page

1 Introduction 1

1.1 Overview _________________________________________________________________________ 1 1.2 The Project developer _______________________________________________________________ 2 1.3 Opportunity to comment on the Project __________________________________________________ 2 1.4 What are the key ESIA documents related to the Project? ____________________________________ 3

2 The Project 4

2.1 The need for the Project ______________________________________________________________ 4 2.2 Project definition ____________________________________________________________________ 4 2.3 Schedule ________________________________________________________________________ 11 2.4 Selection of Project site and technology _________________________________________________ 11

3 Managing Environmental and Social Impacts 12

3.1 Assessing the Project _______________________________________________________________ 12 3.2 Environmental and social impacts _____________________________________________________ 13 3.3 Cumulative impacts ________________________________________________________________ 29 3.4 PGE’s management of environmental and social impacts ___________________________________ 30

4 Summary 31

Figures

Figure 2.1: Geothermal Power Plant Process Summary ______________________________________________ 5 Figure 2.2: Project Location in relation to South Sumatra _____________________________________________ 6 Figure 2.3: Main Project Components as assessed in the Original ESIA __________________________________ 7 Figure 2.4: Project Component Scope (Supplemental ESIA) __________________________________________ 10

Tables

Table 3.1: Summary of significant surface water impacts and mitigation measures ________________________ 14 Table 3.2: Summary of significant groundwater impacts and mitigation measures _________________________ 16 Table 3.3: Summary of significant noise impacts and mitigation measures ______________________________ 18 Table 3.4: Summary of significant ecology impacts and mitigation measures _____________________________ 19 Table 3.5: Summary of significant air quality impacts and mitigation measures ___________________________ 21 Table 3.6: Summary of significant climate change impacts and mitigation measures _______________________ 22 Table 3.7: Summary of significant waste management impacts and mitigation measures ___________________ 22 Table 3.8: Summary of significant geology and erosion impacts and mitigation measures ___________________ 23 Table 3.9: Summary of significant land contamination impacts and mitigation measures ____________________ 23 Table 3.10: Summary of significant traffic impacts and mitigation measures ______________________________ 25 Table 3.11: Summary of significant social impacts and mitigation measures ______________________________ 26

Contents



AIDS Acquired Immune Deficiency Syndrome

AMDAL Environmental Impact Assessment

ANDAL ESIA Report

BAL Basic Agrarian Law

BAPEDAL Environmental Impact Management Agency (or EIMA)

BAPEDALDA Regional Environmental Impact Management Agency

BKSDA Local Wildlife Protection Office

BLH Environment Agency at Provincial and Regency Levels

BOD Biochemical Oxygen Demand

BPLH Environmental Management Agency

CAS Chemical Abstracts Service

CBD Convention on Biological Diversity

CHS Community Health & Safety

CITES Convention on International Trade of Endangered Species of

Wild Fauna and Flora

CLO Community Liaison Officer

CMS Conservation of Migratory Species of Animal Wildlife

COD Chemical Oxygen Demand

EA Environmental Assessment

EHS Environmental, Health and Safety

EIMA Environmental Impact Management Agency (or BAPEDAL)

EMA Environmental Management Act

ESIA Environmental and Social Impact Assessment

ESMP Environmental and Social Management Plan

GDP Gross Domestic Product

HGV Heavy Good Vehicles

HIV Human Immunodeficiency Virus

HKm Hutan Kemasyarakatan (Community Forest)

HSE Health, Safety and Environment

IFC International Finance Corporations

ILO International Labour Organisation

IPPKH Ijin Pinjam Pakai Kawasn Hutan

IUCN International Union for Conservation of Nature

IUP Mining Activity Permit

IUPL Electricity Supply Business Permit

JAMSOSTEK Social Security System

JICA Japanese International Cooperation Agency

Glossary



KA-ANDAL Terms of Reference of ESIA Report

KLH Kementarian Lingkungan Hidup (Ministry of Environment)

KK Kementarian Kehutanan (Ministry of Forestry)

KSPSI Confederation of All Indonesian Workers' Union

LU Land Use

MDG Millennium Development Goal

MENKES Decree of. Minister of Health Regulation

MENLH Ministry of Environment

MKLH Decree of Ministry of Environment

MML Mott MacDonald Limited

MPN Most probable number

MT Magneto-telluric

MW Mega Watt

NA Not Available or Applicable

NCG Non Condensable Gas

ND Not Detected

NER Net Enrolment Rate

NGOs Non-governmental Organisations

NJOP Nilai Jual Objek Pajak (Sales Value of the Tax Object)

NW North West

OHS Occupational Health & Safety

OP Indigenous Peoples

OP Operational Policy

PCDP Public Consultation and Disclosure Plan

PE Decree of Ministry of Mines and Energy

Persero Corporation managed by the State or Region

PGE Pertamina Geothermal Energy

PKK Pemberdayaan dan Kesejahteraan Keluarga (Empowerment

and Family Welfare / Women’s Group)

PLN Indonesian State Electricity Company

PLTP Thermal Power Plants

PNOC Philippines National Oil Company

Posyandu Pos Pelayanan Terpadu (Integrated Service Post for Mothers’

and Children’s healthcare)

PP Government Regulations

PPE Personal Protective Equipment

PT Company Limited



Puskesmas Pusat Kesehatan Masyarakat (Society Health Centre)

RAMSAR Convention on Wetlands

RI Republic of Indonesia

RKL Environmental Management Plan

RPL Environmental Monitoring Plan

RUKN Local Electricity Plan

SCR Selective Catalytic Reduction

SE South East

SEP Stakeholder Engagement Plan

SPPGE Serikat Perkerja Pertamina Geothermal Energy

SMK3LL HSE System Management

SW South West

TEM Transient Electro-Magnetic

TSS Total Suspended Solids

TWA Time Weighted Average

UBL Ulubelu

UK United Kingdom

UKL Environmental Efforts

UN United Nations

UPL Environmental Monitoring Effort

US United States

USEPA States Environmental Protection Agency

UU Acts

UUPA Basic Regulations on Agrarian Principles

WALHI Indonesian Forum for Environment

WB World Bank

WHO World Health Organisation

WMP Waste Management Plan (WMP)

WPS Water Pumping Stations

WWTP Wastewater Treatment Plant



1

1.1 Overview

The purpose of this document is to present in a clear, simple and concise manner, the main findings and

conclusions of studies of the potential environmental and social impacts of the construction and operation

of the Ulubelu Units 3&4 Geothermal Power Project (the Project), located in the Tanggamus district of

Lampung Province, Sumatra. This document is a non-technical summary (NTS) of the Environmental and

Social Impact Assessments (ESIA) that have been undertaken to identify and manage impacts. The

Project is being developed by Pertamina Geothermal Energy (PGE).

The development of geothermal power seeks to increase the amount of energy generated in Indonesia,

given the existing power shortages and predicted growth in demand for energy and electricity. Geothermal

power is a source of renewable energy and allows Indonesia to use its existing national resources.

The Project involves the development of well clusters, steamfields and a power plant. The steam extracted

from the geothermal wells will power a geothermal power station with an output capacity of 110 MW, made

up of the two 55MW units, referred to as Units 3&4. This part of the Project included the preparation of an

international-quality ESIA, in compliance with World Bank procedures and guidelines. This ‘Original ESIA’

was completed in 2011.

Since the finalisation of the Original ESIA in 2011, PGE has identified a need to develop additional well

clusters and associated project infrastructure connected with Units3&4 of the geothermal power station.

This is primarily due to insufficient capacity in the existing network of well clusters to maintain future steam

supply (and hence power supply). PGE therefore intends to undertake further development of the Ulubelu

Units 3&4 Geothermal Power Project. This work includes the preparation of a ‘Supplemental ESIA’, to

identify any potentially significant environmental and social impacts resulting from the additional Project

infrastructure.

Under Indonesian legislation, environmental assessment as a planning tool is known as Analisa Mengenai

Dampak Lingkungan (AMDAL). Due to the size of the Project, a full AMDAL process is required resulting in

the production of an Environmental Statement (known as an ANDAL report), an Environmental

Management Plan (RKL) and Environmental Monitoring Plan (RPL). An AMDAL for the purpose of

permitting and compliance with Indonesian legislation was undertaken and completed on behalf of PGE by

a local university consultancy, Lembaga Penelitian Universitas Lampung (the Local AMDAL Consultant)

and approval from the Head of the Environment Agency of Lampung Province was issued on 20 October

2010. This AMDAL covered the Units 3&4 power plant, a 500m internal transmission link and the original

steam field (access roads, wells and pipelines). A further AMDAL study has since been completed to

account for the proposed new Project components. This was submitted to the Ministry of Environment

(KLH) for approval in 2013 and was approved on 2 June 2014.

The scope of the Original ESIA included the steam field (addressing cluster development for the project,

separators and pipes), the water pumping stations, access roads built for the Project and Ulubelu Units

3&4 power plant. The scope of the Supplemental ESIA focussed only on those components which are

additional or modified since the Original ESIA.

1 Introduction



2

The Original ESIA report is available on PGE’s website1; it is recommended that this document is

consulted alongside the Supplemental ESIA documents for further information.

1.2 The Project developer

The Project is being developed by Pertamina Geothermal Energy, a subsidiary of the Indonesian national

oil company PT Pertamina (Persero), was established in 2006 as mandated by the Government of

Indonesia (GoI) to develop 14 Geothermal Business Working Areas in Indonesia. Of the 14 Geothermal

Business Working Areas, four are operational sites (Kamojang, Lahendong, Sibayak and Ulubelu Units

1&2), which collectively generate on average 20 million tons of steam per year..

PGE is developing several other sites, including the Ulubelu Units 3&4 site which is the focus of this report.

PGE has received a portion of a grant from The Government of New Zealand, which has been channelled

through the World Bank, to assist them in capacity building and contributing to the costs of development of

the Ulubelu Units 3&4 Geothermal Power Project.

1.3 Opportunity to comment on the Project

As part of the AMDAL process for the wells (steam field) and for the power plant, “socialisation” or public

consultation has previously been carried out by the Local AMDAL Consultant in accordance with

Indonesian legislation. Formal consultation was also undertaken during the preparation of the Original

ESIA. Consultation with heads of villages and with national and regional bodies has been undertaken to

inform the Draft Supplemental ESIA.

For the Draft Supplemental ESIA disclosure and consultation:

PGE will make the Draft Supplemental ESIA documents (Volumes I to III) available on the PGE

(www.pge.pertamina.com) and World Bank InfoShop (http://publications.worldbank.org) websites for 30

days. The Original ESIA Volume II (main report) and Volume III (Appendices) will also be disclosed

alongside the Supplemental documents to provide the necessary background information to read and

understand the Supplemental ESIA. Interested and/or affected stakeholders will be given the

opportunity to comment on the Supplemental ESIA before it is finalised.

PGE will also hold a printed copy of these documents (translated into Bahasa Indonesia) at the PGE

site office and each Kepala Pekon’s office for 30 days to enable local community members to review

the Supplemental ESIA and submit comments.

The Supplemental ESIA will also be disclosed via email to key NGOs which have expressed an interest

in the Project.

1 http://pge.pertamina.com/index.php?lang=en&option=com_phocadownload&view=category&id=13%3Aesia-ulubelu&Itemid=110#

http://publications.worldbank.org/

http://pge.pertamina.com/index.php?lang=en&option=com_phocadownload&view=category&id=13%3Aesia-ulubelu&Itemid=110



3

The key channels identified for communicating information to interested parties are as follows:

Disclosure within the local communities of the Supplemental ESIA;

Ongoing media communications;

Ongoing stakeholder meetings during construction and operation;

Community investment activities;

Annual reports; and

Open days during operation.

In addition to the 30 day disclosure and consultation period for comments on the ESIA, questions and

comments can be addressed to PGE Project Public Relations Officer:

PGE – Project Proponent

Name: Mr. Permadi Bela Patria

Role: Public Relations Officer (PRO)

Address: Jalan Raya Ulu Belu, Pekon Karang Rejo, Kecamatan Ulu Belu, Tanggamus 35379

Tel: (072) 922881

Email: [email protected]

1.4 What are the key ESIA documents related to the Project?

The ‘Original ESIA’ documentation prepared by MML (finalised in March 2011) comprised four volumes, as

follows:

Ulubelu 3&4 Revised ESIA Report - Volume I, Non-Technical Summary (NTS) (March 2011);

Ulubelu 3&4 Revised ESIA Report - Volume II: Environmental and Social Impact Assessment (ESIA)

(March 2011);

Ulubelu 3&4 Revised ESIA Report - Volume III: Appendices (February 2011);

Ulubelu 3&4 Revised ESIA Report - Volume IV: Environmental and Social Management Plan (ESMP)

(March 2011).

This ‘Supplemental ESIA’ documentation prepared by MML (draft 2014) comprises three volumes, as

follows:

Ulubelu Units 3 & 4 Supplemental ESIA – Volume I: Non-Technical Summary (this document,

which supersedes the Volume I: NTS produced in 2011);

Ulubelu Units 3 & 4 Supplemental ESIA – Volume II: Supplemental Environmental and Social Impact

Assessment (which is supplemental to the Volume II: ESIA produced in March 2011 and also makes

reference to ‘Volume III: Appendices’ produced in February 2011);

Ulubelu Units 3 & 4 Supplemental ESIA – Volume III: Environmental and Social Management Plan

(which supersedes the Volume IV: ESMP produced in 2011).



4

2.1 The need for the Project

As a whole, Indonesia has been experiencing rapid demand growth in all segments of the energy sector for

several years. Power shortages resulting in frequent blackouts have been experienced in 250 regions,

including Sumatra. Given the existing power shortages and predicted growth in energy demand the need

for new energy generation facilities to be established and commissioned over the next few years is high.

The following points highlight the national and regional needs for development of additional energy sources

with the objectives of the Project being to:

Contribute to national energy requirement for sustainable development;

Contribute to regional energy requirements of Sumatra;

Contribute to a diverse energy base to secure energy requirements for Sumatra;

Provide continuous, reliable, high efficiency and low cost energy;

Provide economic and social benefits on both a national and regional level;

Provide potential employment opportunities to the community residing in the region and nearby;

Contribute to the local economy, social and technical infrastructure; and

Increase the diversity of energy resources.

In particular geothermal energy provides an alternative solution to current dependence on coal to supply

the majority of baseload demand.

2.2 Project definition

2.2.1 Geothermal power

To utilise geothermal energy, production wells are drilled down into the heated water contained within the

Earth's crust - the geothermal reservoir. Once these geothermal reservoirs are tapped into, the heated

water and steam rise to the surface where the steam is separated and used to power steam turbines,

which then generate mechanical energy that can be harnessed as electricity. Brine and condensate are

returned via reinjection wells back to the geothermal reservoir.

Figure 2.1 presents a high level summary of the overall geothermal power plant process. The process can

be separated in two main areas:

Steam fields, where steam is extracted, processed and also subsequently re-injected; and

Power plant, where the extracted steam is used to generate electricity.

2 The Project



5

Figure 2.1: Geothermal Power Plant Process Summary

Source: PGE

2.2.2 Ulubelu Units 3&4 Geothermal Project

2.2.2.1 Project location

The Ulubelu Project site is located 80km west of Bandar Lampung, in the Tanggamus district of Lampung

Province, Sumatra, Indonesia. Several villages are located in the vicinity of the Project, including

Datarajan, Gunung Tiga, Karang Rejo, Pagar Alam, Ngarip, Air Abang and Muara Dua. The proposed new

Project components also introduce activity in the vicinity of sub-villages, including Talang Darus and

Wijimulyo. The area predominantly comprises cultivated land (including rice and coffee plantations) in an

undulating basin surrounded by mountainous regions to the north, west and east. Following modification of

the project components since the Original ESIA, the northern components of the Project now extend into

the watershed protection forest (Hutan Lindung).

The Project location in relation to Lampung Province is provided on Figure 2.2.



6

Figure 2.2: Project Location in relation to South Sumatra

Source: National Coordinating Agency for Surveys and Mapping

2.2.2.2 Original Project definition

The Ulubelu Units 3&4 Project originally included six clusters (groups of wells); four for steam production

and two for condensate and brine reinjection, and associated access roads. The steam produced will

power a geothermal power station of two 55MW units referred to as Ulubelu Units 3&4 with a total power

output of 110MW.

Also located on the Ulubelu geothermal field, the geothermal Unit 1&2 power project (consisting of two

55MW units) has been separately developed by PLN (with financing from JICA); this plant entered into

commercial operation in 2012. PGE is also involved in this project as it is responsible for the drilling of

production and reinjection wells to support Units 1&2; however the development of power plant Units 1&2

and corresponding well development is outside the project financing scope of the World Bank.

Although the PLN and PGE power plants are separate developments, they will be located near each other,

roughly in the centre of the clusters. In addition, some wellpad clusters will accommodate dedicated wells

for one power plant or the other although there are no proposals for interconnection in the Ulubelu



7

steamfield between respective projects. Therefore, although the Unit 1&2 development is not the focus of

this ESIA, Units 1&2 has been considered where cumulative impacts are expected.

Power from Units 3&4 will be sent to the PLN Units 1&2 switchyard via a dedicated 500m transmission link,

which was included in the Original ESIA scope. Independently from the Project under consideration in this

ESIA, PLN has built a 150kV transmission line to connect Units 1&2 to the South Sumatra transmission

grid.

Figure 2.3 presents a summary of the Project components that formed the focus of the Original ESIA for

Ulubelu Units 3&4.

Figure 2.3: Main Project Components as assessed in the Original ESIA

Legend:

Source: Mott MacDonald Ulubelu 3&4 Revised ESIA Report – Volume III



8

2.2.2.3 Supplemental Project definition

There is an operational requirement to expand the Ulubelu geothermal field. The production capability of

the wells drilled under the scope of the Original Project has been shown to be inadequate to meet

electricity generation requirements at the Units 3&4 plant. Therefore, additional production and reinjection

wells have been proposed by PGE to account for this shortfall in generating capacity.

The Supplemental ESIA also focuses on the Units 3&4 power plant and the production wells, reinjection

wells and make-up wells proposed to serve it; some of these are the same as the Original ESIA, some

have been modified and others are new additions. Potential cumulative impacts – the impacts of PGE

Units 3&4 combined with impacts of PLN Units 1&2 – have been considered where they are beyond those

considered in the Original ESIA.

The modified Project consists of a total of fifteen clusters (each with one to seven wells specific to the

Project). Six of the clusters (B, C, G, H, I and K) will be used for steam production and two (R1 and R2) for

condensate and brine reinjection. Cluster E was installed following the Original ESIA; it is now idle but will

be retained for future well monitoring / other purposes. The remaining six clusters are designated as make-

up clusters (J, MK1, MK2, MK3, MK4 and MK5) to maintain generating capacity in future years as the

productivity of the production wells declines.

The scope of the Supplemental ESIA therefore includes:

Clusters which are retained and/or modified from the Original ESIA:

Cluster C, which was originally proposed to serve PLN Units 1&2 only as a production cluster, is now

proposed to have one well (UBL-27) serving Units 3&4 and is therefore included in the scope;

Clusters B, G and H are still intended to serve Units 3&4 as per the Original ESIA (although Cluster B

will also serve PLN Units 1&2), therefore these clusters are also included in the Project scope.

New Project components proposed since the Original ESIA:

Two new production clusters (I and K) and two new reinjection clusters (R1 and R2) are proposed to be

located on private land, each with a maximum of seven wells. Clusters R1 and R2 will serve Units 3&4

and, providing well permeability is suitable, PLN Units 1&2 also.

A total of nine make-up clusters have been proposed to help maintain future power generation capacity

at both plants. Only six of these clusters (Cluster J and Clusters MK1-5) are intended to serve Units

3&4 and therefore the remaining clusters (R, S and T) are considered outside of the Project scope.

Clusters J, MK2, MK3, MK4 and MK5 are located within the boundary of the Hutan Lindung; Cluster

MK1 will be located on privately owned agricultural land outside of the Hutan Lindung boundary (see

Figure 2.4).

Four new water pumping stations (WPS) in addition to the three existing WPS will support all activities

(including those considered to be outside of the Project scope). The new WPS are intended to be

located near the new make-up wells; all four of these are included in the Project scope and will be

located within the Hutan Lindung although their exact locations have yet to be finalised.

Additional pipeline corridors are also proposed to connect the various project components. Given the

locations of clusters, certain lengths of pipeline will be located in the Hutan Lindung.



9

The steamfield above-ground system (SAGS) will consist of three separators located at a separator

station near Cluster H. Two phase pipelines will connect all clusters to the separator station. Steam

pipelines will run from the separators to the power plant and brine pipelines will run from the separators

to the reinjection Clusters R1 and R2. Condensate from the power plant will be returned to Cluster R2

for reinjection via a dedicated condensate pipeline.

Figure 2.4 presents a summary of the Project components associated with the Ulubelu geothermal

development; these are divided into those within the scope of the Supplemental ESIA for Ulubelu Units

3&4 and those activities outside of the Project scope (i.e. serving PLN Units 1&2 only).

2.2.2.4 Status of Project components

Access roads to clusters B, C, G, H, I and R1 have been completed, whilst Clusters B, C, G and H have

been constructed and drilled; of these Clusters, B and C are operational as they are currently supplying

steam for PLN Units 1&2. At the time of the site visit in September 2013, Cluster I was under construction

and was being prepared for drilling. Cluster R1 was at the site clearance and earthworks stage of

construction.

As of July 2014, cluster K is in the land acquisition process and cluster R2 is under construction. Land has

not been acquired for the remaining new Project components (the make-up wells) as they are

predominantly located within the Hutan Lindung. The Hutan Lindung is owned by the Government of

Indonesia and PGE will apply for a permit to use the land for geothermal power. However, it is anticipated

that construction of the make-up clusters will not occur immediately as they are unlikely to be required for

some years.



10

Figure 2.4: Project Component Scope (Supplemental ESIA)

Note: Locations of new clusters except Cluster I to be confirmed (indicative only as land not acquired)



11

2.3 Schedule

PLN Units 1&2 reached commercial operation in September and October 2012 respectively; therefore all

steamfield components designated to serve the PLN plant were completed before this time and are now

operational. Further site preparation, detailed design, mobilisation and civil works have taken place at

some of the proposed production and reinjection clusters since the Original ESIA; drilling at these sites is

scheduled to be completed in 2015 and production testing is also scheduled to be completed in 2015.

Engineering, procurement and construction (EPC) for Units 3 and 4 is expected to take 23 and 33 months

respectively. The Commercial Operation Date (COD) for Unit 3 is currently scheduled for June 2016; COD

for Units 4 is expected approximately one year later in June 2017. A detailed schedule for the construction

and operation of the make-up clusters (J, MK1, MK2, MK3, MK4 and MK5) has not yet been proposed,

although it is acknowledged that this process will be dependent on the timescales involved in obtaining

Land Use permits for the Hutan Lindung.

2.4 Selection of Project site and technology

The Project development and the ESIA process included consideration of alternative sites, technologies

and configurations.

The search for potential geothermal prospects is carried out through geological mapping, geochemical

sampling of springs and streams along with geophysical surveying. Shallow wells are used to map the

extent of the geothermal site and slim holes may be drilled down to 500-1000 m depth to investigate

temperatures at depth prior to location and drilling of production and re-injection wells. The general

location of well pads and power station in geothermal developments is initially constrained by the overall

geothermal resource. However the physical footprints of the power station, well pads, and access roads

required are small in comparison to the overall exploitation area. The use of directional drilling (the hole is

not vertical and the bottom of the well therefore not directly underneath the well head) of wells to reach the

geothermal resource allows for the development of well pad clusters which can be sensitively located away

from important receptors. Site selection process starts with a review of the topography of the area for

selecting the location for well pads and power plant and determining routes for the process, reinjection

pipes and gathering system. The selection of well pads to date has avoided dwellings and taken into

consideration existing land use. In addition, where feasible, wells have been sited away from steep slopes

and paddy field locations and to minimise the removal of trees. The layout chosen has aimed to maximise

the natural elevation and eliminate the need for pumps within the system, which is instead powered by

natural gravity and pressure within the system.

Based on the requirements for base load (continuous electricity production), stable electricity generation,

costs, raw materials availability and other developments envisaged by PLN, the analysis of alternatives

has concluded that a coal fired thermal power plant would be the most likely alternative to the Project. The

environmental and social impacts of the two options were compared in the Original ESIA and the

comparative review illustrates the benefits of geothermal generation over coal for this Project. A

geothermal generation plant is considered to be the most appropriate solution for achieving the objectives

of this project as well as the overall power generation expansion plan for Indonesia.



12

3.1 Assessing the Project

An assessment of the potential impacts arising from the Project development has been undertaken, as

described in Section 3.2 below; the assessment comprised a detailed review of the potential environmental

and social impacts of the Project. The assessment included:

Establishing or updating the baseline to understand current conditions at and around the proposed

Project sites;

Prediction of impacts, using, where relevant, advanced modelling tools;

Identification of mitigation measures to be included in the design, procedures, development and

management of the Project.

The assessment process was supported by local consultation undertaken during the Original ESIA and the

Supplemental ESIA site visit to ensure that PGE understands and has incorporated the concerns of local

people from the surrounding villages into the process.

The significance of an impact is described based on sensitivity of project affected persons / environment

and magnitude of impacts. Where possible, impact magnitude and sensitivity are described with reference

to legal requirements, accepted scientific standards or accepted impact assessment practice and/or social

acceptability. Where the ESIA found that the project could cause significant impacts then actions or

procedures (referred to as mitigation measures) have been developed to avoid, reduce or otherwise

mitigate the effects and reduce their significance. A great number of potential impacts can either be

avoided or reduced through mitigation; however, some environmental impacts may still occur after the

application of mitigation (known as residual impacts). Each chapter of the ESIA has assessed whether

residual impacts, either beneficial or adverse, remain after mitigation.

A summary of the key findings of the appraisal process is provided below for environmental and social

impacts. A full description of all environmental and social impacts is provided in the ESIA document

(Volume II). Only those impacts assessed as ‘significant’ are presented in detail in this NTS document,

along with a description of the mitigation required and any residual impacts. These represent the most

important findings of the ESIA. A brief description is also provided of other impacts although these are not

presented in detail.

3 Managing Environmental and Social Impacts



13

It is recognised that a project of this scale and duration has the potential to impact the environment and the

community, both in a positive and negative way. The phases of the Project are:

Exploration, drilling and construction (relating to the exploration of the geothermal resource, drilling of

geothermal wells and construction of the SAGS and power plant);

Operation (relating to the operation of the steamfield and power plant); and

Decommissioning (relating to the post operation of the power plant)

Project activities were considered to identify potential environmental impacts associated with:

Water quality and hydrology

Groundwater

Noise

Ecology

Air quality

Climate change

Waste management

Geology and erosion

Land contamination

Traffic management

Archaeology and cultural heritage

Project activities were considered to identify potential social impacts associated with:

Employment generation;

Workers well-being

Community health, safety and well-being

Land acquisition

Community investment

These impacts were assessed in the Original ESIA and where impacts have changed since the Original

ESIA, these have then been assessed in detail in the Supplemental ESIA.

3.2 Environmental and social impacts

The summary tables below display the impacts as assessed in the Original ESIA. Where notable changes

to these impacts or additional impacts have been identified in the Supplemental ESIA, these are presented

in bold font to differentiate them from impacts identified in the Original ESIA. The tables below therefore

represent a combined view of the outputs of the Original ESIA and the Supplemental ESIA.

Formatted: Normal,~BodyText

14 314049/TRD/EFR/001/B September 2014 314049_Ulubelu NTS_RevB


3.2.1 Environmental impacts

3.2.1.1 Water quality and hydrology

Table 3.1: Summary of significant surface water impacts and mitigation measures

Phase Activity Impact Impact Significance Mitigation Measures Residual Significance

Exploration, drilling and construction

Abstraction during dry season

Less water available for human and ecological needs

Adverse impact of major significance

Prior to any new river abstractions, identify any local users downstream as far as Karang Rejo.

Choose abstraction flow rate and timing to minimise impacts on water course and to ensure minimal stream flow maintained. Where this cannot be achieved, before drilling construction, PGE to construct new water supply pipeline from alternative source to ensure community water supply unaffected.

Use pond to store water for drilling and recycle “muds” to minimise need for “new” water.

Include additional locations in the Hutan Lindung to be regularly monitored for water quality and flow. Monitoring will commence one year prior to construction to contribute to an improved baseline dataset and should continue throughout the construction and operation of the Project.

Apply closed system for drilling activity / use of geothermal fluid (if applicable) or treated water from ponds to minimise need for “new” water.

Adherence to framework Water Management Plan

Adverse impact of low significance

Vegetation clearance and earth moving including diversion of water course

Damage to ecology

Potential reduction in flow


Avoid temporary or permanent diversion of water courses or natural flow paths where possible. If unavoidable, ensure that diversion works are of adequate capacity and profile of new channel matches the old channel.

Negligible

Vegetation clearance; earth moving

Erosion and increased sediment load reaching local water courses


Good construction practice, including bunding of working areas.

Minimise vegetation clearance.

Re-vegetate as soon as possible on completion of works.

Negligible

Temporary waste water settling pond overspill

Pollution of watercourse by “Muds”


Size temporary facilities appropriately and have contingency.

Design adequate capacity of treatment ponds / water filters to safely manage quantities of waste water arising.





Use of water based drilling muds as opposed to oil-based drilling muds.

Recycling of drilling muds.

Design adequate capacity of treatment ponds/water filters to safely manage quantities of waste water arising.

Storage ponds to have impermeable lining such as HDPE or similar geomembrane of appropriate thickness bonded together to ensure water-tightness

Ponds monitored and cleared of silt periodically to maintain integrity of treatment and drainage system.

Spills from poor storage of fuels and chemicals

Chemicals or fuel entering local water course used for domestic or irrigation supply

Adverse impact of moderate to major significance

Development of relevant procedures to avoid and minimise risk of spills, including:

All chemicals and fuels are to be stored in designated sites with impermeable surface and adequate bunding to prevent accidental contamination. Storage areas to be located away from surface waters.

Suitable spill kits to be provided within storage areas and near any fuelling / loading areas.


Well Testing Discharge of well brines to surface water


Ensure settling ponds have adequate storage capacity.

Reinjection of water through reinjection wells.

Creation of bunded areas in low lying land around reinjection clusters and provision of diversion channel around bunded areas

Negligible

Operation Water abstraction to supply water needs of initial charge of cooling circuit at the power plant

Less water available for human and ecological needs

Adverse impact of moderate significance

Choose abstraction rate and timing to minimise impacts on water course and to ensure minimal stream flow maintained.

Record quantity of water abstracted and timing of abstractions

Water quality and flow monitoring to continue at additional Hutan Lindung locations. Adherence to framework Water Management Plan. Monitoring will commence one year prior to construction to contribute to an improved baseline dataset and should continue throughout the construction and operation of the Project.

Negligible

Failure of brine / condensate pipeline

Discharge of brine to surface water


Creation of a brine management plan.

In the event of pipeline failure, brine will be diverted via a storage pond of sufficient capacity.

Employ best practice.


Failure of brine reinjection system.

Discharge of well brines to surface


Minimise risk of brine / condensate discharge through implementation of reinjection system and provision of





water adequate sized lined storage ponds / system shut down in case of reinjection failure.

Develop brine management plan to minimise risk of brine discharges.

In the event of emergency discharge of brine / condensate to surface waters, treatment will be undertaken prior to discharge of effluent to comply with Indonesian discharge geothermal effluent standard.


Chemicals or fuel entering local watercourse used for domestic or irrigation supply


Best practice as for construction. Adverse impact of low significance

Decommissioning Infill of wells As those seen in Construction period


Application of same mitigation measures as for construction. Adverse impact of low significance

3.2.1.2 Groundwater

Table 3.2: Summary of significant groundwater impacts and mitigation measures



Construction of wells and potential hydrofracturing creating new pathways between the deep and shallow aquifer

Introduction of highly mineralised water from deep aquifer into the shallow groundwater used for domestic or irrigation supply


Good well design with deep casing as used and applied previously in this area.

Groundwater quality monitoring to confirm water quality not affected.

If water levels are found to have been affected then provision of alternative water supplies may be considered

Additional locations in the Hutan Lindung to be regularly monitored. Monitoring will commence one year prior to construction to contribute to an improved baseline dataset and should continue throughout the construction and operation of the Project.

Adherence to framework Water Management Plan




Chemicals or fuel entering local wells used for domestic or irrigation supply


Development of best practice measures to avoid and minimise risk of spills.

Designated sites for chemical and fuel storage to prevent accidental contamination.

Suitable spill kits to be provided within storage areas and near any fuelling / loading areas.





Land levelling Changes in groundwater flow and level due to the levelling of land below groundwater table


Additional water level monitoring for the ESMP used to ensure that water levels in local wells are not affected by the land levelling and that sufficient water is available for use. If water levels are found to have dropped in local wells then deepening of the affected wells may be considered


Vegetation clearance and road construction increasing risk of landslides

Decrease in local groundwater quality


Best practice construction methods, such as ensuring slope angles are keep to a minimum, stabilising slopes where necessary and reseeding of land.


Operation Water abstraction from shallow groundwater to supply water needs of power plant

Reduced groundwater levels and potential drying of local wells used for domestic and irrigation supply


Investigation into water levels and flow during construction phase.

Investigate new source of water for plant if risk is found to be high.

Deepen wells affected by reduced water levels.

Provide alternative water supply to residents if affected by reduced water levels.

Negligible


Chemicals or fuel entering local community wells used for domestic or irrigation supply


Best practice for the storage of fuels and chemicals. Good housekeeping to keep leaks to minimum.


Decommissioning Infill of wells / dismantling of Power Plant

Detrimental change in groundwater quality in community wells


Application of same mitigation measures as for construction. Adverse impact of low significance

The incorrect disposal of scale, other operational waste and domestic waste has the potential to result in leaching of minera ls into shallow groundwater used for

domestic or irrigation supply; this impact has been assessed as low adverse significance. Disposal of any hazardous waste (as determined through toxicity

testing) by licensed third parties according to regulations and disposal of domestic waste through appropriate methods in line with Indonesian regulations would

reduce this to an impact which is not significant.



3.2.1.3 Noise

Table 3.3: Summary of significant noise impacts and mitigation measures



Increased site noise during construction stage

Temporary nuisance to nearby residential receptors

Adverse impact of critical significance (Cluster B, E and F receptors).

Negligible all other cluster receptors

Restricting working hours.

Use of well maintained plant.

Appropriate positioning of plant considering directionality.

Use of material stockpiles for screening.

Turning off plant when not in use.

Use of appropriate construction methods.

Use of sound reduction equipment (e.g. rock mufflers during well testing).

Advising villagers in advance of particularly noisy work.

Adverse impact of moderate significance with limited periods of adverse major / critical for Clusters B, E and F.

Negligible for all other cluster receptors

Increased road traffic noise during construction stage

Temporary nuisance to residential receptors


Restricting working hours.

Appropriate speed limits (in accordance with PGE policy: SOP B005/PGE765-3/2014-S0 (TKO Layanan Angkutan Penumpang dan Barang)

Adequately maintain vehicles and turn off engines when not in use. Routine vehicle inspection to be carried out HSE.


Decommissioning Increased site noise

Temporary nuisance to residential receptors

Adverse impact of major significance (Cluster B, E and F receptors).

Negligible all other cluster receptors

As for construction. Adverse impact of low significance for cluster B, E and F receptors.

Adverse negligible for all other cluster receptors.

Impacts on the safety and well-being of workers will be reduced through the use of PPE, including ear protection during drilling. During the operation phase of

the project, increased site noise (due to operation of the plant) and road traffic noise are considered to have a negligible impact on residential receptors.

Nonetheless, mitigation measures including the use of low noise plant, adhering to appropriate speed limits on roads and undertaking maintenance during the

day only have been suggested to further reduce the significance of these impacts. Increased road traffic noise during the decommissioning phase could have an

adverse impact; the same mitigation measures have been proposed as for the construction phase.



3.2.1.4 Ecology

Table 3.4: Summary of significant ecology impacts and mitigation measures



Construction of access roads and clusters

Clearance of secondary and primary forest caused by displacement from loss of agricultural land


Minimise land-take, number of landholdings and families affected through project design;

An ecologist to advise on final layout design of access roads to identify micro-siting constraints;

Confirm that the Government will provide appropriate alternative agricultural land for HKm users in non-forest areas (e.g. modified habitat instead of natural habitat)

Any off-set or resettlement sites for current land uses (legal or illegal) identified as part of the project that fall outside the land envelope covered by the components of this study will be subject to an independent environmental assessment.

Provide opportunities for alternative means of employment;

Cooperate with local authorities to report and enforce unlawful forest clearance;

Local community engagement to be undertaken in villages in Project area to raise awareness of Hutan Lindung and species of conservation importance.

Replanting of habitats temporarily disturbed or cleared during construction, including native trees at a ratio of 3:1 for any that are removed.

Creation of Biodiversity Management Plan



Construction of access roads near primary forest (construction and operation phases)

Hunting and increased human disturbance in primary forest


Coordinate local community and worker awareness programmes to promote understanding of conservation of biodiversity;

Restrict use of site access roads to prohibit use for illegal logging and hunting of protected species;

Cooperation with local authorities (routine site patrols and sharing of site monitoring information) to increase enforcement of legislation preventing unlawful logging and hunting;

Engage with the MoF to identify appropriate measures to support the Ministry in stewardship of the Hutan Lindung;

Creation of Biodiversity Management Plan.


Exploration, Construction Temporary Adverse impact of An ecologist will survey the site to determine habitual Adverse impact of




drilling and construction

of access roads and infrastructure; routine site operations.

displacement (i.e. duration of the source of disturbance only) of primates from suitable habitat due to increased disturbance from noise

moderate significance locations of feeding and resting primates. This will be used to determine biodiversity sensitive areas; night-work will not be undertaken in Hutan Lindung or biodiversity sensitive areas; vehicles and staff activity will not be permitted in biodiversity sensitive areas without prior authorisation.

low to moderate significance

As none of the original Project components were located in the Hutan Lindung, the Original ESIA concluded that there would not be any significant impacts on

ecology. This included impacts from vegetation clearance, earthworks and well drilling / construction, the construction of weirs for water abstraction and the

introduction of staff to the area. The Supplemental ESIA includes several components which are located in the Hutan Lindung and impacts are therefore

assessed to be significant, as shown in the above table. However, the implementation of the mitigation measures is considered sufficient to address these

impacts to a level where the effects are not considered to be significant.



3.2.1.5 Air quality

Table 3.5: Summary of significant air quality impacts and mitigation measures



Site clearing, earthworks and construction activities

Dust nuisance Negligible to adverse impact of moderate significance

Dust suppression and control measures, visual monitoring.

PPE for minimising dust exposure from on-site receptors.

Negligible to adverse impact of low significance

Well tests Hydrogen sulphide (H2S) and particulate releases

Negligible to adverse impact of moderate significance

No vertical well testing.

Use of rock mufflers to elevate emission source.

H2S contractor to implement H2S emergency response plan.

Negligible to adverse impact of low significance

Well blowout H2S and particulate releases

Negligible to adverse impact of moderate significance

Site H2S emergency response plan by drilling contractor. Negligible to adverse impact of low significance

Operation Cooling tower emissions

H2S releases Negligible

(reduced from critical significance in the Original ESIA to negligible significance in the Supplemental ESIA)

Personal H2S monitors for workers, suitable on site ventilation, information on H2S, maintain levels below occupational limit, on site H2S monitoring system, confined space procedures.

Periodic monitoring of H2S emissions.

Ambient monitoring of H2S concentrations at one continuous analyser and five portable monitor sites.

Health data collection to continue.

Emergency response plan.

Note that the Original ESIA proposed 60% H2S emission abatement (based on conservative well test results for NCG and H2S content). Based on the updated assessment in the Supplemental ESIA this is no longer required, however the Ulubelu Units 3&4 plant should be made abatement-ready.

Negligible

Impacts from on-site traffic and vehicle movements and off-site vehicles are not expected to result in significant effects. The primary difference between the

Original ESIA findings and the Supplemental ESIA findings (as noted in the table above) are that exceedences of the (World Health Organization WHO) H2S

guideline are no longer predicted as a result of the operation of the plant. However, given the uncertainties inherent in the assessment, it has been

recommended that the Units 3&4 plant is made abatement-ready so that abatement technology could be installed in the future if monitoring results indicate that

this is necessary.



3.2.1.6 Climate change

Table 3.6: Summary of significant climate change impacts and mitigation measures


Operation Power generation

Displacement of Greenhouse Gases (that would have been produced in generating this level of power)

Beneficial impact of major significance

None required. Beneficial impact of major significance

3.2.1.7 Waste management

Table 3.7: Summary of significant waste management impacts and mitigation measures


Exploration, Drilling and Construction

Day to day construction activities including drilling mud cuttings; Scrap metals, waste oils, plastics, consumables, office wastes

Contamination of groundwater and streams from waste excavation

Adverse impact of low to moderate significance

Implement Waste Management Plan (WMP) which identifies measures for minimisation of waste and safe disposal of construction wastes.

Appropriate facilities/containers for segregation and temporary storage of general wastes on site and establishment of regular disposal to landfill or recycling where possible.

Use of water based drill muds and recycling of drill muds.

Storage of muds in lined ponds and of cuttings in dedicated houses.

Regular removal of muds from the settling ponds for re-injection into total loss wells where available or storage and subsequent treatment of the muds as relevant waste category as determined by Indonesia regulation.

Disposal of hazardous waste by third party licensed by MoE. Segregation of waste streams for reusing and recycling.

Identify reuse and recycle options of non hazardous waste with local community.

Identification of appropriate site(s) for excavation material disposal, away from sensitive surface / ground water features.




3.2.1.8 Geology and erosion

Table 3.8: Summary of significant geology and erosion impacts and mitigation measures


Exploration, Drilling and Construction

Soil excavation for well pads MK2, MK3, MK4, MK5 and J

Increased erosion Adverse impact of major significance

(Increased from moderate adverse in the Original ESIA)

Site selection.

Cover of vulnerable soil with erosion resistant material and re-vegetation.



Decreased slope stability



Site selection.

Support walls with retaining walls or other appropriate structures.

Additional ground elevations, subsidence and seismicity monitoring



Increased surface runoff



Site selection.

Make water channels to direct water and minimise bank erosion.


Operation phase impacts on geology and erosion were assessed as not significant in both the Original ESIA and Supplemental ESIA.

3.2.1.9 Land contamination

Table 3.9: Summary of significant land contamination impacts and mitigation measures



Settling ponds for drilling muds, event of flooding spill

Change in soil chemistry and consequent restriction of use, risk to humans


Well designed and maintained ponds, monitoring and trained and responsible staff, spill response plan.


Collection, storage, transport of drilling muds and cuttings

Change in soil chemistry and consequent restriction of use, other indirect community and environmental risks


Use of water based drill muds and recycling of drill muds.

Storage of muds in lined ponds and of cuttings in dedicated houses.

Regular removal of muds from the settling ponds for re-injection into total loss wells where available or storage and subsequent treatment of the muds as relevant waste category as determined by Indonesia regulation.




Storage, transport and use of chemicals, fuel and waste on construction site.



Appropriate facilities / containers for segregation of waste and temporary storage of chemicals / fuel on site.

Training of Contractor employees by Contractor.


Handling of waste, spill of leachate



Management plan, well designed storage and well maintained, labelling, monitoring and trained and responsible staff, spill response plan


Operation Storage, transport and use of chemical, fuels and waste on operational sites



Appropriate facilities/containers for segregation and permanent storage of chemicals / fuel on site. Temporary storage facilities available for maintenance periods.

Internal training of PGE operational shift staff / maintenance staff.


Handling of waste, spill of leachate



Suitable sized storage and well maintained, labelling, monitoring and trained and responsible staff, develop spill response plans.


The spill of brine and condensates during the operation phase could result in changes in soil chemistry and a risk to human health. The same impact could result

from demolition work and the production of hazardous waste in the decommissioning phase. Both of these impacts have been assessed as adverse low

significance both before and after the application of mitigation. Mitigation measures proposed for the operation phase include the implementation of a brine re-

injection system, provision of adequately sized storage ponds and the development of and adherence to a Brine Management Plan. Mitigation proposed for the

decommissioning phase is similar to the construction phase and includes appropriate disposal of hazardous wastes.



3.2.1.10 Traffic management

Table 3.10: Summary of significant traffic impacts and mitigation measures


Construction Traffic associated with steam field / power plant development

Increased risks associated with road safety


Development and implementation by EPC contractor of Traffic Management Plan (TMP)

Provision of educational sessions for children in all schools along the road to the Project sites from Karang Rejo village.


Traffic associated with steam field / power plant development

Physical effects (wear and tear) of construction traffic (including abnormal loads) on local road infrastructure.


Traffic Management Plan

Potential improvement as part of CSR programme.

Beneficial impact of low significance

Construction Traffic associated with development of proposed new steam field components

Increased duration of works, additional number of fleet and personnel movements and further infrastructure wear and tear


Adherence to the Traffic Management Plan

Any road damage specifically associated with the construction and mobilisation activity of the geothermal system shall be addressed and repaired by PGE.


Adverse low impacts are predicted to occur due to the increase in traffic associated with the steam field / power plant development resulting in delays on the

local traffic network. A Traffic Management Plan and assessment of road capacity and a review of route selection if required have been proposed as mitigation,

although residual impacts are predicted to remain as adverse low significance. Negligible impacts are predicted to occur due to the increase in traffic associated

with staff movements and maintenance.

3.2.1.11 Archaeology and cultural heritage

Excavation works during the construction phase are not expected to have a significant impact on the disturbance of on-site archaeology or cultural heritage.

PGE will require contractors to establish a Chance Find Procedure.



3.2.2 Social impacts

Table 3.11: Summary of significant social impacts and mitigation measures

Phase Activity Impact Impact Significance Mitigation / benefit enhancement Measures Residual Significance


Employment Generation

Generation of approximately 1,080 temporary low-skilled jobs phased throughout the whole of construction period.

Beneficial impact of moderate significance

Disclosure of a published recruitment policy, including prioritisation of local employment.

Use of village employment committees.

Local employment to be prioritised, contractor to provide additional specialised training to local workforce in skills required by contractor.


Operation Employment Generation

Generation of approximately 380 mainly long-term medium-highly skilled jobs.


Disclosure of a published recruitment policy, including prioritisation of local employment. Use of village employment committees.

Local employment to be prioritised, PGE to provide vocational training schemes to local workforce employed for a minimum of one year via supply companies in skills required by power plant operation.



Activities within site and worker camp boundaries

Risk to community health, safety and well-being from site activities and workers


Mitigation of environmental impacts such as noise, dust and excavation waste.

Restricting access to sites through appropriate fencing / signage around site perimeter.

Reducing malarial incidence through maintenance of good construction site drainage, minimising standing water within Project areas, managing storage / settlement ponds to control mosquitoes.

Site security personnel (appropriately vetted and trained.

Site registry/identification system.

Develop and disclose emergency preparedness and response plans.

Develop and disclose community grievance mechanisms.


Well production testing

Risks to community members’ safety and damage to crops from debris, health risks due to H2S exposure

Avoid vertical testing in favour of horizontal testing.

Use of rock muffler to mitigate noise emissions during horizontal well testing.



Phase Activity Impact Impact Significance Mitigation / benefit enhancement Measures Residual Significance

Heavy load and other vehicles driving through communities

Road safety risks and damage to road infrastructure and drainage systems

Road safety plans / maximum speed limits for site and access routes and traffic safety sessions for children.

Contractor programme to monitor and enforce safety plans, accident reporting and statistics, establish penalties for violations.

Maintenance of site and access roads under PGE’s responsibility to reduce erosion/degradation of drainage channels.

Water extraction and settling ponds

Pollution of / shortages in community water

Audits of water infrastructure, maintenance and activities and monitoring of ground and surface waters.

Operation Activities within site boundaries and steam transmission piping

Risk to community health and safety from contact with hot water/steam


Raising community awareness on health and safety issues related to steam pipelines – information campaigns for residents living close to steam pipes.

Isolation around steam traps to prevent access by community members by closing steam trap and redesign scrubbing line system so there is no brine comes out to the environment

Adverse impact of low significance Adverse impact of low significance

Operation Activities within site boundaries and steam transmission piping

Risk to community health and safety including health impacts as a result of H2S exposure


Continuation of relevant activities above.

Development of an emergency preparedness and response plan to be enacted in the event of abnormal operation.

Ongoing monitoring of ambient H2S concentrations and health of nearby communities.



Land Acquisition - Rent Use of land in Hutan Lindung / HKm

Payment of cash compensation for acquired assets and crops


Updates to LARPF to protect users of the Hutan Kemasyarakatan (HKm), tenants and informal land users


Starting immediately continuing through all phases


Community development Beneficial impact of low to moderate significance

Development of participatory community investment planning.

Feasibility study into rural electrification.


Starting immediately continuing through all phases


Community development

Beneficial impact of low to moderate significance

Villagers, village leaders, local schools and sub-district level local government to be consulted to identify community needs to help prioritise the CSR budget.

Implementation of CSR to be recorded in an activity log, supported by photographs, to assist in future monitoring by project lenders.




In addition to the significant impacts detailed above, the following non-significant impacts were also identified:

Beneficial impacts were identified for land acquisition from the payment of cash compensation for acquired land, assets and crops;

Adverse impacts were identified for the well-being of workers on site and in camps; however these could be reduced to negligible impacts through the

implementation of mitigation measures such as the distribution of health awareness brochures, the installation of safety ladders to settling ponds and the

development of labour management and staff grievance policies.



29

3.3 Cumulative impacts

Cumulative impacts are those that may result from the combined effects of several activities. In addition to

the cumulative impacts from developing several well pads, the main source of cumulative impacts is the

development of the PLN Units 1&2 Plant. This has been taken into account in the assessment and

residual impacts above include the combined effect of PLN Units 1&2 and PGE Units 3&4.

Cumulative impacts due to power plant construction are expected to be low given the distance and

different schedules of Units 1&2 and Units 3&4.

Cumulative impacts during the operation of Units 1&2 and Units 3&4 are also predicted to be low. A key

difference between the Original ESIA findings and the Supplemental ESIA findings is the significance of

Hydrogen Sulphide (H2S) emission impacts (both separately and cumulatively) from Units 3&4 and Units

1&2. The Original ESIA found that the close proximity of the two plants meant that, at some residential

locations, the cumulative effect of their emissions was predicted to result in concentrations of H2S that are

very close to, or above, guidelines for the protection of human health. Abatement measures were originally

proposed for both Units 1&2 and Units 3&4 to reduce emissions of H2S.

However, the recent dispersion modelling undertaken for the Supplemental ESIA, which is based on the

latest and most accurate estimates of steam composition, predicts that the air quality impacts from Units

3&4 (both in isolation and in combination with Units 1&2 emissions) will not give rise to significant effects.

Therefore, no abatement technology is required. However the uncertainties involved in the assessment

process (including estimates of steam composition, operational emissions from Units 1&2 and the air

dispersion model used) are recognised and therefore it is recommended that the Ulubelu Units 3&4 power

plant is made ‘abatement ready’. This means that abatement technology can more easily be installed in the

future, if additional monitoring or modelling indicates that this is necessary to comply with the applicable

standards.



30

3.4 PGE’s management of environmental and social impacts

PGE has developed an Environmental and Social Management Plan (ESMP) that draws upon the

management and mitigation measures which have been defined within the Original and Supplemental

ESIAs. The ESMP is presented as Volume III of the Supplemental ESIA documentation. The primary

objective of an ESMP is to safeguard the environment, site staff and the local population from site activity

that may cause harm or nuisance. The management plan, which also covers monitoring, is the basis of

the environmental and social protection measures to be implemented by PGE and its contractors.

In addition to the ESMP, a number of complementary framework plans, policies and procedures have been

developed including the following:

Air quality (H2S) monitoring programme;

Health data collection programme;

H2S emergency response plan;

Recruitment plan;

Retrenchment plan;

Labour grievance mechanism framework;

Biodiversity management plan;

Waste management plan;

Water management plan;

Traffic management plan;

Temporary worker accommodation management plan; and

Chance finds procedure.

Responsibilities for implementation are outlined in the ESMP (Volume III) and fall to either PGE or the

contractors undertaking the work. The implementation of the ESMP provides the framework to manage

environmental and social impacts (including World Bank operational policies and guidelines) and best

practice.



31

The development of geothermal resources in Indonesia is important in meeting growing demand for

energy. Geothermal power generation at Ulubelu will contribute to providing electricity in Sumatra and in

particular Lampung Province. The environmental and social impacts of development of the geothermal

field, including the construction of Units 3&4 power plant, steam field and access roads have been

assessed. The majority of the infrastructure was assessed and reported in 2011 in the Original ESIA and

additional infrastructure (mainly the development of additional well pads) assessed and reported in 2014 in

the Supplemental ESIA.

The findings of the ESIA identified several issues that were likely to result in significant effects on the

environment or people. These issues are:

The potential for noise disturbance affecting residents near Clusters B, E and F during the construction

phase

The noise from construction activities could affect nearby habitat which is used by primates and could

therefore result in the temporary displacement of primates

The generation of power by means of geothermal resources would have a beneficial effect in terms of

greenhouse gas emissions compared to generation of power from non-renewable sources

Employment generation during the construction (around 1,000 jobs) and operation (around 400 jobs) is

considered to have a beneficial effect

Commitments by PGE to work with local people to identify priorities for investment in community

development and to undertake work on the feasibility of providing electricity to local rural areas are

considered to be beneficial impacts.

A number of potential impacts have been avoided or reduced through the adoption of a range of mitigation

measures. These are identified in the impact assessment and often take the form of management plans for

specific issues. For example, management plans will control activities relating to water, waste, biodiversity

and traffic, each containing specific objectives and actions to protect and manage the environment.

Monitoring will be adopted as part of construction and operational environmental management in order to

ensure that impacts will be maintained at or below the predicted level of impact. Information gathered from

water quality monitoring will be used to refine the mitigation measures proposed. Ecological surveys, in

particular pre-clearance surveys at proposed sites in the Hutan Lindung will be used to inform the

construction schedule and influence site selection. Similarly, ground subsidence and seismicity monitoring

results will be used in the site selection process for certain cluster locations. Air quality monitoring in the

Ulubelu project area will continue, using a combination of fixed and portable H2S monitors. The health data

collection programme and emergency response plan help to provide confidence that actual events are in-

line with predictions, for the protection of the local community.

Management plans and monitoring systems are public commitments by PGE to protect the environment

and local people and these responsibilities are also applicable to contractors appointed by PGE.

4 Summary

Documents

Mott MacDonald Report Template