PHU MY 2-2 BOT PROJECT ENVIRONMENTAL IMPACT EVALUATION PROJECT SUMMARY … · 2016-07-15 · PHU MY...

E521Volume 1

SOCIALIST REPUBLIC OF VIETNAMMINISTRY OF INDUSTRY

EDFI CONSORTIUM

PHU MY 2-2 BOT PROJECT

ENVIRONMENTAL IMPACT EVALUATION

PROJECT SUMMARY REPORT

Managing Agency: Implementing Agencies.

EDFI Consortium Vietnam Association for the Conservation ofEnvironment

Power Engineering and ConsultingCompany No2

APRIL 2001

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EDVI Consortium LIA Phu -Mv 2.2 1301I 'Pv ;cr 1roject

1. LEGAL BACKGROUND AND TECHNICAL DOCUNIENTS UISED IN TllSEIA STUDY

This EIA study is based on Government of Vietnam (GOV) legal documents and \\'orld Ban.k(WB) environment assessment guidelines.

The technical aspects of the EIA are based on the Feasibility Study Report of the P\12-2power project prepared by EDFI Consortium and various scientific data obtained from thesurvey programs of VESDEC, and the Vietnam Association for the Conservation of iNatureand Environment (VACNE), the Vietnamese agency, which carried out the EIA. It is thebasis of this Project Summary Report, which follows international standard methods

In order to clarify potential impacts of the project the following items are assessed in the EIA

- Collection and evaluation of existing data on the natural environment and socio-economvof the project area.

- Surveillance and investigation of present environmental conditions (water, soil, sedimentquality, air quality, noise, biological resource and socio-economy) at the project site andin the surrounding area

- Computation and assessment of potential environmental pollution conceivably created bythe project (dispersion of cooling water, oil spills and emission).

- Proposal of an Environmental Management Plan (END), including mitigation measuresfor negative impacts, measures for pollution control and environmental monitoring

2. BRIEF PROJECT DESCRIPTION

2.1 The Project Objectives

The main objectives of the project are as follows:

- To provide 715 MW of electrical generating capacity.

- To strengthen the regional power supply system, upgrade the general physicalinfrastructure, stimulate industrial development, improve the living standard of localresidents and associated stakeholders and general enhancement of the other economicsectors in the Southern Economic Focal Zone (SEFZ)

- To efficiently use the indigenous natural gas from the Nam Con Son resource area f()loperation of the plant. The Phu My 2-2 project is an integral part of the natural (asconsumption chain of projects that enable the development of the Nam Con Son natuLralgas resource area

- The creation of long term, stable, high quality direct employment for approximately 45people, who will operate the plant, temporary jobs for approximately 1000 skilled and

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EDVI Consortium EIA Phu -Mv' 2 2 BOT Power Project

unskilled workers during the construction phase, and numerous indirect jobs in thesupporting local service and supply industry

- The project will promote industrialisation and urbanisation in the Southern EconomicFocal Zone (SEFZ).

- The project will enhance the capital flow and stimulate additional direct foreigninvestment into Vietnam. As the first successful major infrastructure project in Vietnamto be structured under BOT commercial terms, legal and commercial precedents setduring the development of the Phu My 2-2 project will help Vietnam to attract additionalforeign investment.

- To promote the transfer of technology and management technique and expertise, throughthe implementation of long term advanced level multi-disciplinary skill training. This isexpected to result in the transfer of complete and functional operational control andadministration supported by local management and human resources to Vietnam by theend of the BOT period.

2.2 Project Location

The Phu My 2-2 Power Plant project is located in the Phu My Power Generation Complex inthe town of Phu My, Tan Thanh district, Ba Ria - Vung Tau province in the SEFZ. The areastretches between the Vina Kyoei Steel Company in the East and the Thi Vai River in theWest. It is located 75 km from Ho Chi Minh City and 40km from Vung Tau.

2.3 Construction

The Project will include the following:

- 2 Gas Turbines.

- I Steam turbine.

- 3 Step-up transformers.

- 2 Heat Recovery Steam Generators

- 500kV switchyard.- Natural Gas fuel system

- Distillate Oil system.

- Cooling Water pumping station- Raw water treatment area.

- Water demineralisation plant.

- Waste water treatment area.

- Administration and control building.

- Fire fighting station.

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EDII Consorti um EfA Phu -My 2.2 BOT Power Project

- Warehouse.

- Workshop.

- Parking area,.

2.4 Main Technical Characteristics, Related With Environmental Assessment

* Gas Turbine - Generators

Type. PG93 5 1 FA OutdoorNumber: 2Capacity: 226MW (gas fired)Exhaust system: 30m high, 6,9m Diameter bypass stacks with

silencers and blanking plates.Emissions control:

Natural Gas Dry Low NOx (25ppm @15%02) cDistillate Oil Water injection (58ppm @ 15%02)

Each gas turbine generator shall directly be coupled with the applicable gas turbine. It shall bea horizontal, three phase, synchronous, hydrogen cooled, totally enclosed type machine.

* Steam Turbine - Generators

The steam turbine including dual (2) casings, combined HPIIP and double-flow LP and reheatis designed to operate in combined-cycle mode with the gas turbine.

Type. Axial flow, impulse-reactionNumber: ICapacity: 275MWExhaust system: Stack height 60 mEmissions control:

Natural Gas (at CT) Dry Low NOx (25ppm @15%02)Distillate Oil (at CT) Water injection (58ppm @I15%02)

The steam turbine generator shall directly be coupled with the steam turbine. It shall be ahorizontal, three phase, synchronous, hydrogen cooled, totally enclosed type machine.

* Ftel Supply

- Natural Gas Fuel

Natural gas for the project will be supplied from the Nam Con Son basin offshore gas fieldsby PetroVietnam. Petro Vietnam will install and operate a gas pre-treatment facility near thePhu My Power Generation Complex to ensure that the fuel gas supplied meets the agreedphysical and composition standards.

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- Distillate Oil (DO)

Standby fuel for plant is distillate oil N°2 The quality complies with criterion of GEI 41047specification. The Gas Turbine systems will be designed to switch automatically from firingnatural gas fuel to firing distillate oil fuel

Distillate Oil will be transported to the plant by tanker or barge via local waterways and willbe stored in tanks with a sufficient capacity to meet contractual oblintations The Phu My 2-2Plant ilff not operate on distillate oil for more than 5 days in any year

* Water Supply

- Fresh Water Supply

Raw water to meet plant make-up requirements and the associated utility demands of thepower plant will be supplied by the Ba Ria Vung Tau Water Company. The required rawwater supply for the plant is estimated to be approximately 0.045 m3/s.

Potable water systems for the power station site and administration building shall be designedto support a staff of up to 100 people.

The water treatment systems will consist of a demineralisation system and a chemical wasteneutralization system.

- Cooling Water Supply

Cooling water will be taken from the Sao River and discharged to the Thi Vai River, thedesign will ensure proper diffusion of warm water and is based on current environmentalregulations. Cooling water demand is about 17m3/s.

* Main Project Technical Parameters

- Main Structures and Characteristics

Station type: Combined CycleStation capacity; 71 5MWStack height: 60 m (Nlain stacks)

30 m (By-pass stacks)Elevation of the project site: 4.0 meters above mean sea levelNO,, emission control. DIy Low NO, combustion in gas mode

operationWater injection in DO mode operation

Cooling water system: Once through using brackish river waterRoad to be widened and improved about 1.8 km from National Road N51 to the

plant

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EDF7 Consorlium lI/A Phu-Mv 2.2 B1()1 lo\ er l'rojuct

Oil storage area: Permeability and run off is controlled by earth-supported walls sealed with concrete grout

Solid waste disposal area: Off-site location to be identifiedOn-site oil storage: 20,200 tonnes

Schedule Milestones and Duration

Duration of active on-site construction: 24 months from the contractualFinancial Closin;, assumingpreliminary activities to be carriedout in advance of the FinancialClosing.

Duration of the operation phase 20 years or term of the BOTContract

Labour force:

- During the construction phase about 1000 persons (peak-)- During the operation phase about 45 persons (average)

3. PRESENT STATE OF THE ENVIRONMENT AT THE PROJECT SITE

3.1 Physical Environment

* Topography

The town of Phu My (formerly Phu My commune) of Tan Thanh district (Ba Ria-Vung Tauprovince) is located in a flat area with an altitude sloping from the East (near the foot of ThiVai Mountain) 50-60m to the West (the riverside of the Thi Vai River). Although Thi VaiMountain is about 470 m high, it does not obstruct or impact the dispersion of the flue gasfrom the power plant because it is approximately 5 km from the project site and occupies avery small area.

* Climate

- Ba Ria-Vung Tau province has a relatively high and generally stable atmospherictemperature range. The average annual temperature varies between 24 80C (January) and29.10C (May). In the hottest months (April, May), the monthly average temperature is about290C and in the coldest month (December in mainland, January offshore) the monithly averagetemperature is about 25"C The annual amplitude of temperature is narrow, about 3"C' - 4' C asfor both the sea and mainland.

- Atmospheric pressure is relatively consistent throughout the year. The average barometricpressure is between 1008 and 1012 mbar in the dry season and between 1008 and 1010 mbarin the rainy season The maximum can reach 1016 mbar and the minimum 1003 mbar

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- Because of the significant disparity in solar radiation between the dry season and the rainyseason, difference in humidity between the two seasons is large During the rainy season, themonthly average relative humidity varies between 79% and 86% During the dry season therelative humidity varies between 75% and 84%.

- The evaporation rate in Ba Ria-Vung Tau can be the highest in Vietnam. This is anindication that the area is rich in radiant heat, energy and wind. The highest evaporation (140- 160 mm) occurs in March, and the lowest (49 - 62 mm) in September. The annual total ofevaporation pan rate is over 1,100 mm.

- In Ba Ria - Vung Tau province, there is an intensive differentiation between the rainyseason and the dry season. Rainfall during the 6 months of the rainy season generallyaccounts for 85%-90% of the total rainfall in any year. In the period from May to October, themonthly average of rainfall at Phu My averages 230 to 319 mm and during the dry seasonperiod from December to April it ranges from9-35 mm.

- The project site is influenced by two types of monsoon

The Southwest, West - Southwest wind primarily appears during the rainy season (NMay -October) with an average speed of 2.0 to 3.2 m/s. It usually brings rain.

The East, East - Northeast wind primarily appears during the period from November to Aprilw ith an average speed of 2.4- 4.7 m/s.

This is not an area characterised by a high frequency of typhoons or tropical storms but lowintensity tempests are common.

Storms with wind having a grade velocity of 9 - 10 are very rare. Storms and tropical lowpressures occasionally occur in the September to December period, mostly in November. Themajor storms are moving from West or West - Southwest. Most storms appear in offshoreareas.

* Hydrology

- The Sao River

The Sao River including the Muong stream runs across the project site. The Sao Riveroriginates from Trinh Mountain at the Northeast of the project site It runs across NationalRoad 5 1 at the Ngoc Ha Bridge then joins the Thi Vai River, Northeast of the site. The SaoRiver provides the Phu My Power Generation Complex with cooling water

- The Thi Vai RiverThe Thi Vai River is the domestic waterway that will be utilised for transportation of liquidfuel to the Phu My Power Generation Complex. It also receives the heated water from thecooling system of the plants. With a length of about 40 km, the River originates from LongThanh (Dong Nai province), running across districts of Tan Thanh and Chau Thanh of Ba Ria- Vung Tau province and discharges water into the East Sea through the Ganh Rai gulf In its

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EDFI Consortium EJA Phu-Mv 2.2 BOT Power Project

downstream, the River has tributaries linking with the system of the Saigon - Dong NaiRivers

The river basin is small and its length is short. The width of the river reaches 700 to 800m atthe estuary. The riverbed is deep with a U-shape cross-section The depth of the river nearthe power plant complex is approximately 10 - 15 meters The hydrological regime of the ThiVai River significantly depends on a semi-diurnal tidal regime.

Water Quality

Water salinity is moderate and the flow is considered brackish with a TDS of 4000-12000mg/L and significant seasonal turbidity. The river is significantly contaminated by organicmatter, particularly in the regions located near the districts of Long Thanh, Nhon Trach (DongNai province) and Phu My town where Biologic Oxygen Demand (BOD20) varies in the rangeof 3-13 mg/L.

It is also significantly polluted by nutrients with high concentrations of NO3 and NI4- andtotal P of 0.1-0.7 mg/I; 0.1-0.4 mg/I and 0.02-0.10 mg/l respectively.

The concentration of bacteria (coliform, E.coli) varies from 15000 MPN/100ml, to 43000MPN/IOOml which is higher than the Vietnamese Standard (TCVN 5942-1995: maximumallowable concentration of bacteria in surface water is 10,000 MPN/IOml for water source).

Although the pollution due to heavy metal and pesticides is detectable, concentrations arewithin the allowable standards of Vietnam for water source of grade A. However, pollutiondue to oil is already significant

* Bottom Sediment

Contents of Pb, Cr and Hg in the bottom mud at Phu My are significant. However, comparedto the US EPA Guideline for Dredged Material Use and Disposal, they are still low. Sedimentin the Thi Vai River is not polluted by organochloride pesticides

* Air Quality

- Dust Pollution

Concentration of dust (TSP) is 0 26 to 1 45 mg/m3. Four of the monitoring sites have recordeddust concentration lower than 0 30 nl&M3, meeting the Vietnamese Environmental Standards(TCVN 5937-1995) while 6 sites exceed the Vietnamese standard with a maximum of 1.45mg/nu3. Dust is.generated from various sources, mainly from construction and transportation.

- SO2 Pollution

At the 10 monitoring sites (sampling for i-hour average) concentrations of SO2 vary between0.056 and 0.303 mg/n 3, meeting the Vietnamese Standard (TCVN 5937- 1995).


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- NO2 Pollution

Oxides of nitrogen can be one of the primary air pollutants emitted from a natural gas-firedpower plant. It can also result from combustion (flaring) of the tail gas at the Phu My gasstation. The readings in this area varied from 0.033 to 0.297mg/m3. All monitoring sitesmeet the Vietnamese Standard (TCVN 5937- 1995, permissible concentration of NO2 is 0.4mg/m 3). However, the concentration of NO2 has increased significantly in the past three yearsAccording to monitoring results in 1996-1997, the average concentration of NO2 in TanThanh was 0.026 mg/m3.

- THC Pollution

The concentration of total hydrocarbon (THC) at the monitoring sites varies from 1.1 to 8.6mg/m3. This is much lower than the permissible concentration in the Vietnamese Standard(TCVN-5937- 1995).

- Noise Pollution

Background readings of daytime noise level (6 a.m - 6 p.m) were from 44.1 to 67.3 dB(A) andall monitoring sites meet the allowable level given in the Vietnamese Standard (TCVN 5949-1995) for residential area in daytime.

3.2 Present Biological Environment

In the project area there are no valuable natural biological resources because almost allvegetation was removed to construct the industrial park. The following information indicatesthe biological resources at the areas along the Thi Vai River, located out-side of the projectarea but which may be impacted by the project operation.

* Vegetation

A major part of the Eastern bank of the river belongs to an agricultural ecosystem The basiccharacteristic of this agricultural ecosystem is the interference of fresh water and brackishwater in the whole Thi Vai basin.

In arable land the dominant trees are cashew (Anacardium) and eucalyptus (Eucaliptus)upland crops (tapioca, corn, green beans, soy beans etc) and fruit trees (longan, orange,banana, coconut) planted on higher elevation fields. In the flat lower elevation fields rice ismore common Other kinds of wild vegetation are grass and mangrove trees (Rhizophora,Phoenix fruiticans, Avicennia etc.). The flora broadly distributed in the area is not very rich interms of species composition or variety and quantity of individuals.

In the Western part of the Thi Vai River belonging to Can Gio district, a dense mangroveforest is found. The main mangrove trees are Nipa palm, Rhizophora, Sonneratia, Avicenniaetc.

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EDEF Consortium EIA Phu-My 2.2 BOJ Th eXr ierujc&r

* Terrestrial Fauna

Bird

Thirty six bird species have been observed at the mangrove forest in Can Gio district (WestBank of the Thi Vai River)

- MammalsSo far, I I mammal species have been observed in the mangrove forest in the W est Bank ofthe Thi Vai, including wild boar, squirrel, wild cat, rabbit, monkey, otter, etc They mostlyaggregate under the canopy of Rhizophora and Phoenix Paludosa on mounds inside themangrove forest. There are many sounders of wild boars developing in the mangrove forestThe species belonging to the list of wild animals to be strictly conserved required by the GOVare Lutra lutra (otter), Felis spp.

- Amphibian and Reptile

Eight species of amphibian and reptile have been observed They are common in wetlandareas.

So far, the animal species mentioned above have been observed in the mangrove forest on theWest Bank of the Thi Vai River. They were not found in the Project area.

* Aquatic Ecosystem of the Thi Vai and Sao Rivers

- Phytoplankton

Ninety phytoplankton species were identified in the Dry Season 2000. The quantity ofphytoplankton is very high in the main flow and tributaries (Sao River), from 153,000,000 to684,450,000 cells/m 3. Oscillatoria geitleriana is absolutely dominant in the whole system. Thequantity of phytoplankton is increased from the estuary to the middle of the River section(Phu My port, Go Dau port, Muong canal) and reduced in the upstream.

- Zooplankton

In December 1999, 21 Zooplankton species were identified in the Thi Vai River

Within the range from 7,000 to 115,300 individuals/m 3, quantities of zooplanktorn sarvconsiderably from a sampling point to another. It is low in the estuary and it is increased fromnPhu My port to the gate of the Sao River, then decreased in Go Dau port and again increasedin Long Tho.

- Zoobenthos

In December 1999, 32 species were identified.

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Large variations of Zoobenthos have recently been observed between the differentmonitoring sites. Apart from the Go Dau port site where a great amount of zoobenthos werekilled, zoobenthos are abundant at the other sites with the dominance of Sedentaria species

- Fish Species Composition

Among aquatic species found in the Thi Vai River, over 20 fish species, 11 species of shrimpcrab and over 20 other aquatic species are considered economically valuable. Valuable fishspecies include Crinidens sarissophorus, Pama croaker, whitegoby, tassel fish, mullet etcHowever, shrimp species (Penaeus monodon and P. merguiensis) are the most valuableproduct of coastal zone in the basin. Sea products are the main economic sources of coastaland estuarine inhabitants in Ba Ria-Vung Tau and Ho Chi Minh Cities.

3.3 The Present Socio-Economic Conditions at the Project Area

* General Information About Phu My Town

The project is located in Phu My Town, which belongs to Tan Thanh district, Ba Ria - VungTau province. The town lies on both sides of National Road 51 from Km 44 (My Xuancommune) to Km 47 (Phuoc Hoa commune). It is located on the left bank of the Thi VaiRiver.

Phu My commune was upgraded to be a town in August 1994. It is the administrative centerof Tan Thanh district. Its area is of 3,173 ha and the population in 1999 was 10,020 (It was8,651 in 1998).

The main occupations of local inhabitants include farming, husbandry, aquaculture, fishing,salt making, and forestry. A minor part of local inhabitants earns their living by trading,providing services and creating handicrafts. In the recent past, economic growth of the townhas been high. The total production of the town increased by 305% from VND 12.73 billion in1995 to VND51.6 billion in 1999, marking a year-to-year average grovth rate of 46.8%.

* Agriculture of Phu My Town

Area of agricultural land is 1,791.2 ha, perennial crops occupy 1,065 4 ha, aquaculture 493.2ha, rice only 117.9 ha (1999)

Husbandry tripled from 918 pigs in 1995 to 2,811 in 1999. The number of fowl increased by5.2 times to 70,080 in 1999 from 14,000 in 1994. The turnover of agriculture increased by74% within five years (1994-1999) with an annual growth rate of 19 6%. The density ofhusbandry accounted for 47% in the overall growth.

* Fishery of Phu My Town

- Aquaculture


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Under the influence of brackish and saline water, shrimp farming is the prevailing sector ofaquaculture along the Thi Vai River. The most valuable shrimp species are Penaeusmerguiensis and P. monodon. There are also other kinds of fish and crab. Area of shrimpculture was 50 ha in 1995 and only 29 ha in 1999, although the area planned for aquacultureis 493.2 ha.

- Fishing output

The fishing output in 1994 in the zone from the project site (Phu NMy) to the Thi Vai estuarywas highest (1495.7 tons) while that of the zone from the project site to Go Dau was lower(I 105.6 tons). Due to reduction of fish source, fishing output of Phu My town was over 100tons in 1995 but has reduced to less than 50 tons in 1999.

* Handicraft Production

This sector was stabilized and governed for the development of potential business such asmechanical and food processing and new business such as the overhaul and repair of cars,electronic appliances and refrigerators. The turnover of this sector in the town is VND540million in 1994, increasing by 19.57 times to VND8.950 billion in 1999 with an averagegrowth rate of 52% per annum, accounting for 18.22% of GDP.

* Education

In recent years, the number of pupils has increased at an average rate of 5% per annum. Onehundred per cent of 6-year-old children go to school. 100% and 83% of pupils pass thegraduation exam of primary school and secondary school, respectively

* Archaeology

There is no archaeological site in the project area but according to the Department of Science,Technology and Environment of Dong Nai province, there are cultural relics of the BronzeAge in Hac Dinh village, 5 km far from the project site to the northeast.

* Reactions of Local Households to Industrial Projects

Basically, local people and leaders of Phu My town strongly support the projects of industrialdevelopmenit, particularly the Thermal Power Plant projects in Phu My with high expectationfor jobs and improvements of their life.

4. ASSESSMENT OF THE POTENTIAL ENVIRONMIENTAL INIPACTS OFTHE PHU MY 2.2

The Project, including the construction and the operation of a combined cycle power plant of715MW will play a very important role in the development of the Vietnam Energy Sector,particularly in the Southern part of Vietnam. It will promote the policy of industrialisation and


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EDFJ Consortiuzm IELI P'hu-Mfp 2.2 B07 Power Project

modernisation of the Government of Vietnam in the coming decades as well as create a greatopportunity for urbanisation, proper change in land-use and overall socio-economicdevelopment of the Southern Economic Focal Zone. These positive socio-economic values ofthe project are clearly indicated in Chapter Three of the EIA and in the Feasibility Study.

Beside the significant beneficial impacts, and despite the use of a modern and cleantechnology and the use of natural gas as main fuel, the project may produce impacts on theenvironment. However, the project will not result in the occupation of any additional land forthe construction of the plant, but will only use the existing planned area, on which there are noresidential or commercial sites. The potential environmental impacts are identified andassessed by various methods (checklist, matrix, network and modelling). Conclusions fromthis assessment are given as follows.

4.1 Impacts Associated With the Project's Design and Pre-Construction Phase

The new thermal power plant will be constructed in the planned Energy Complex area, inwhich all residential sites, economic units were removed some years ago; encroachment onagricultural, aquacultural and residential lands is not expected.

4.2 Impacts Associated With the Construction Phase

Construction of the Phu My 2.2 Thermal Power Plant will involve civil works during theconstruction process, which may cause the following impacts to the environment-

- A temporary increase in the volume of transportation activities in the area due totransportation of construction materials, plant equipment and operation of constructionequipment. This may obstruct normal traffic on the National Highway 51 and on roadconnecting the Energy Complex with the Highway.

- Air pollution from the construction site and from transport of construction materials mayaffect human health, cultural and historical sites.

- Noise and vibration pollution produced by construction equipment may affect humanhealth.

- Soil and water pollution by oil and grease from construction equipment

- Soil and water pollution from soil dredging in the saline and/or acid sulphate soils, withpotential damage to limited sectors of the aquatic ecosystem and possible impact onaquaculture.

- River water pollution created by erosion at the construction site, spoil disposal area andwaste handling facilities.

- Water and soil pollution created by wastes from construction camps and work sites.

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These impacts can be assessed as negative but temporary and localised. These impacts can beminimised by using effective mitigation measures. Local regulations (concernino noise, dustcontrol, material transport and traffic management) will be complied with in order to mitigatepotential impacts.

Detailed assessment of the above impacts was given in the detailed EIA Report

4.3 Impacts Associated With Operation Phase

* Air Pollution

Natural gas is used as primary fuel, Distillate Oil is contemplated as the secondary fuel butnot more than 5 days any year. Air pollution will be limited because natural gas is aninherently clean fuel, which contains very little sulphur and produces very low levels ofnitrogen oxides due to the incorporation of a dry low NOx combustion process.

Using an air quality model, a study showed that ground concentrations of SO2 , NO\ and dustwill meet the Vietnam Standard and WB guideline for ambient air.

* Water And Soil Pollution

Pollution created by fuel leakage from fuel storage tanks and from tankers will be limitedbecause tanks are installed within an adequately sized, impermeably sealed retention areaDischarge of treated wastewater and solid waste will be strictly controlled and will complywith all applicable regulations.

River water may be thermally polluted by heated flume from cooling water discharge but theincrease temperature between the inlet and outlet of the condenser will be no more than 7°C.

Using a thermal pollution dispersion model, the study indicated in cases of water intake of 17m3 s (when PHU MY 2-2 is only in operation) to 80m

3 s (when the entire projected PHU MY'complex is in operation) that the river temperature at the mixing zone will be increased bvonly 1-20C, which will not significantly damage the local aquatic ecosystem.

The threat to aquatic organisms in the Thi Vai River and connected rivers by the coolingwater intake may be serious. This impact cannot be avoided, but it will be miinimised byimplementing appropriate technical mitigation measures

* Noise And Vibration Pollution

Noise and vibration pollution generated from the plant will impact the plant xvork-ing areas butthe noise transmitted to the surrounding area will be minimal and will managed to complywith all applicable regulations.

5. ANALYSIS OF ALTERNATIVES


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5.1 Alternatives To Be Considered

In this EIA study 3 alternatives were analyzed.

* Alternative One: without the Phu NMy 2.2 TPP and without replacement of the Phu Nly 2 2TPP by any other power plant project.

* Alternative Two Replacement of the Phu My 2.2 TPP Project by other power plantprojects.

* Alternative Three with the project in the proposed area

5.2 Analysis of Alternative One: Without Phu My 2.2 TPP As Well As Any OtherPower Plant Project in the Proposed Site

In the case without the Phu My 2.2 TPP or any other Power Plant Project in the planned PhuMy Energy Complex, the following environmental and socio-economic impacts can beexpected

* Limitation of The Impacts on The Natural Environment

Without the Phu My 2.2 Project or any other Power Plant Project the expected encroachmentof hundreds of construction workers into the mangrove forest and aquatic ecological areasalong the Thi Vai River may not occur. The Can Gio mangrove forest located in the Westbank of the Thi Vai River, which has been approved by UNESCO to be a World EcologicalReserve Site (1999), will not be encroached by construction activities at the East River bank.

* Limitation of Environmental Pollution

Air, noise, vibration, water pollution caused by the construction and operation activities of thePhu My 2.2 TPP as well as any other power plants is clearly assessed in the EIA Report.Without the project this impact may not be created. The environment quality of the area maynot be worse than that at the present time.

* Shortage in Energy Supply and Limitation of Socio-Economic Development

Without the addition of the electrical capacity proposed from this project, economic growth inthe area will be hindered and significant economic effect can be expected to impact the entireregion If adequate electric supplies are not available to stimulate new job production andadditional foreign investment the socio-economic impact can be significant. At the least verylittle progress will be made to improve the quality of life of the local inhabitants and regionalstakeholders and at the worst a regression of life quality can occur as the local populationscontinues to increase and stress the local environment. Without new sources of foreigncapital investment and the associated transfer of technology and education little progress isexpected, and the educational resources can be expected to decline and opportunities forwomen to progress in the industrial workplace may not be realized. Adequate physical


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infrastructure including a sufficient supply of electrical power is a fundamental requirementfor economic growth and the progression of quality of life to modern standards.

5.3 Analysis of Alternative Two: Replacement of the Phu My 2.2 TPP by OtherProjects

The 108 ha Phu My Energy Complex was planned by the Government to centralize a totalgeneration capacity of about 3850 MW. Since energy demand has increased from year toyear, in case where the Phu My 2.2 project is replaced by another energy project, it can beexpected that the replacement facility will be implemented on the same site This means thatfurther development of large scale energy projects in the Phu My Energy Complex isirreversible .

In this alternative two cases may be planned:

* Case 1: Replacement of the Phu My 2.2 TPP by Fuel Oil Power Plant with a similargeneration capacity.

* Case 2: Replacement of the Phu My 2.2 TPP by a Coal Power Plant with a similargeneration capacity.

Expected potential environment impacts of the two above proposed cases are compared inTable 1.

Table I Comparison of potential environmental impacts of 3 type of power plants

Environmental Level of negative impactproblems

Phu My 2.2 TPP FO Power Plant Coal Power Plant

1. Environmentalproblems duringthe pre-constructionphase:

- Change in land use - Requirement for

- Compensation for additional land arearesettlement No No for ajetty for coal

import and an areaof 50-1 00 ha for anash disposal site.Therefore, theproject has asignificant negativesocio-economicimpact

Project Summarv Report April 200115/24

EDE! Consortium EIA pllim-MV 2.2 BOTPower Project

2. Environmentalproblems duringthe constructionphase:

- Construction of a No No An ash disposal sitejetty and a jetty for coal

- Construction of an delivery should beash disposal site constructed,

No No therefore, air, noise,land, water pollutionwill become a hugeconcern

- Construction of - Air, water, land -Air, water, land -Air, water landpower plant pollution. Vibration pollution. Vibration pollution. Vibration

and noise pollution and noise pollution. and noise pollution(see Chapter Four)

-Change in surface -Change in surface -Change in surfaceflow. flow flow

3. Environmentalproblems duringthe operationphase

- Air pollution (incase of ineffectivecontrol) by:

Dust No Significant Serious

S0 2 No Low High

NO, Low Low Slight

- Noise, vibration Significant Significant Significantpollution in theplant area.

- Change in river Significant Sionificant iMore significant,ecology by cooling because waterwater intake and cooling flow ratedischarge much more

i mportant

- Environmentalrisks (in case ofineffective control)


EDFI Consortium EIA Ph2u-Aly 2.2 BOT Il()0tr Projecr

e. g:

- Oil spill Non significant More significant, Significantbecause moreimportant storage isneeded

- Fire, explosion at Expected, low Expected, high Expected, lo% gas line or fuelstorage sites.

- Creation of Very low High Highgreenhouse gases

- Environmental No No Highpollution created byash disposal site

- Influence on water Low Significant Significantway transport due tofuel transportation I

- Effect on public Low (excepted for High very highhealth and ecology cases of fire risk)

* Analysis of Case 1 (Replacement By a FO Power Plant)

In the case of construction and operation of another energy project utilizing FO as fuel inreplacement of the Phu My 2.2 TPP, the negative impacts of the new project on air qualitywill be more significant than with the Phu My 2.2 TPP. Concentrations of dust, SO2, NO. influe gas from a FO power plant are much higher than that from a natural gas combine cyclepower plant.

Transportation and storage of a great volume of liquid fuel is likely to eventually cause an oilspill of some magnitude. Dispersion of oil spill on the Thi Vai River in various scenarios hasbeen predicted in the EIA studies for port development project on the Thi Vai RiverConsequences of oil spill will damage aquatic ecosystem and aquaculture at the Thi Vai Riverestuarine area.

* Analysis of Case 2 (Replacement By a Coal Power Plant)

In the case of replacement of the Phu My 2.2 TPP by a coal power plant project with a similargenerated capacity, the natural and socio-economic environment at Phu My town andsurrounding areas will be seriously damaged, if a suitable Environmental Management Plan(EMP) is not properly implemented.


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EDFI Consornzni EIA 'hu-Mify 2.2 BOTPower Project

At the occasion of Pha Lai and Quang Ninh Projects, both coal power stations, EnvironmentalImpact Studies were carried out. The important negative impacts of the Coal power stationswere clearly analyzed in Chapter 5 of the EIA Report.

5.4 Analysis of Alternative Three (With the Phu Mly 2.2 TPP)

The potential impacts of the Phu My 2.2 TPP are assessed in the section 4 of the EIA report.

5.5 Conclusions

From the above, it can be concluded that:

- In comparison with other types of power plants e.g coal and fuel oil power plants, naturalgas combined cycle power plants like Phu My 2.2 plant have few adverse impacts on thenatural environment. This is due to the type of technology used and type of fuel. Withnatural gas fuel and the advanced technology which will be implemented, there isminimal pollution due to sulfur, and very little air pollution attributable to oxides ofnitrogen. From the water pollution point of view, there is a very low risk of leakage asthere is no huge fuel oil storage. Distillate Oil will be used as only as a back up fuel onlyand even then not for more than five days a year. Consequently, storage requirements aremuch smaller and there are no ash ponds. Hence there is minimal risk of pollution tosubterranean water aquifers.

- Location of the Project is suitable for a large size natural gas combined cycle power plantbecause of the close proximity to the highly developed industrial and urban centers ofsouthern Vietnam. It is also near a water source suitable for cooling water intake anddischarge and is not far from the fuel supply source.

- The Project will have significant positive socio-economic impacts in the local area and inthe region.

Therefore, positive impacts of the project are expected to be much higher than the negativeimpacts on local socio-economy and on the environment. This is the main reason why theGovernment, EVN and local people strongly support the project.

6 ENVIRONMENTAL MANAGEMENT PLAN

6.1 Nlitigation Measures In The Design and Pre-Construction Phase

. Limitation of Encroaclhment into Densely Populated and Natural, HistoricalProtected Areas

There are no churches, temples, pagodas, natural forests, or wildlife sanctuaries in the projectarea that could be encroached upon by construction or operation of the plant. Therefore,mitigation measures for the limitation of potential encroachment on people, cultural andprotected sites are not necessary.


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EDFI Consortiuni lIA Phl -My 2.2 BOT Power Project

The scope of works within Phu My 22, does not contemplate any additional jetty or anyconstruction works that would encroach upon any existing natural waterway.

* Resettlement Action Plan (RAP)

The project is located in the existing industrial park, where all households have been removedand compensated many years ago. Therefore, a RAP is not required for the project.

* Proper Design for Poll0tion Control

The Project Design Team will strictly follow the Vietnam Standards on the environment sothat the design will meet all pertinent standards.

- Flue gas emission will meet the Vietnam Standard (TCVN 5939-1995) and World Bankguidelines (1998) for air emission related to particulate matter (PM), SO2, NON, CO inboth cases of Natural gas and Distillate Oil use

- Selection of cooling water intake and discharge points, so that the thermal pollution in theriver will be minimized,

- Design and installation of proper fish screening devices at the cooling water intake site sothat the loss of fish and shrimps by water intake will be minimized.

Because the Phu My Energy Complex is responsible for the design and construction ofthe cooling water intake and discharge gates, the Phu My 2.2 TPP will not be responsiblefor design and installation of this device.

- Selection of the sites for concrete mixing, pile driving and diesel hammers, so that theresultant impact vibration and noise will not seriously affect any sensitive surroundingreceptors (factories, offices of other companies).

- Design and installation of proper Distillate Oil fuel containers, so that fuel will not leakinto the environment and fire will not happen.

6.2 Mitigating measures in the construction phase

* Mitigating Measures for Impacts on Natural Ecosystems

The followving mitigating measures will be implemented

- Protection of Terrestrial Ecosystems

- Protection of Water Quality and Aquatic Ecosystems

* Prevention of Soil Erosion and Soil Loss


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EDEl Consortiuim iiA Pini-Mv, 2.2 BOT Power Project

Soil erosion will be closely managed during the construction phase

* MIitigation Measures for Impacts on Air Quality in the Construction Phase

Air pollution will be an environmental problem during the construction phase. The feasiblerecommendations were given in the EIA Report to mitigate air pollution at the constructionsite.

* Mitigation of Noise Impacts in the Construction Phase

Various measures were proposed to prevent noise impact from construction equipment andvehicles.

* Prevention of Labor Accidents and Occupational Health for Construction Workers

The Constructors will be required to provide adequate management and technical measuresfor prevention of labour accidents and to optimise occupational health conditions for allworkers.

6.3 Mitigation of Environmental Impacts in the Operation Phase

* Air Emission Control

Impact from particulate matter exhausted from the stacks is negligible because the Phu My 2.2Thermal Power Plant will use clean natural gas as the primary fuel. Exhaust gases will becontinuously monitored.

- D.O. is a limited use stand-by fuel. It will be only for short periods of time in the limitedcase where natural gas is interrupted and not available on a transient basis.

- The maximum duration of operation using DO is five days per year.

* Pollution Control at the Area of Fuel Containers and Gas Pipe Line

To prevent soil and water pollution caused by fuel containers (tanks), oil leakage is avoided bytechnical and management measures. Fuel storage is installed in an impermeable lined retentionarea.

* Noise and Vibration Control

Noise and vibration will be controlled by various measures to meet the Vietnanm Standards.Isolated packages on gas turbines for example.

* Wastewater Pollution Control


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EDF1 Consortium ELIA Phu-My 2.2 BOT Power Pro ec r

Measures to prevent wastewater pollution will be used in the operation phase of the projectPolluted water will be treated and analysed before discharging in order to comply with localregulations.

* Measures to Protect Aquatic Organisms at the Water Intakes

The following measures to protect aquatic resources should be applied by the Phu My EnergyComplex as the party responsible for construction and operation of the Cooling Water Intake.and the Phu My 2-2 Project as appropriate:

- A Proper Location of the Water Intake Gate

The following measures may be applicable to mitigate potential impacts of cooling water intakeon aquatic organisms.

- Installation of Technical Facilities

Travelling screen and/or Behavioural barriers will be installed to protect fish species in the ThiVai River.

* Control of Water and land Pollution Due to Oil Spill Accidents

A retention area will be built around storage tanks. In case of an accident (which is unlikely tohappen), various recommended mechanical, physicochemical treatment methods will be appliedto control water and land pollution due to oil spill accident.

* Control of Industrial and Sanitary Solid Wastes

- Industrial Waste

Industrial solid waste such as packs, cloth or other porous materials saturated with oil and/orgrease and sludge extracted from a treatment system will be gathered and treated or transportedto an appropriate place of disposal and will not be burned in-situ thus avoiding the generation ofnew air or water pollution.

- Waste Products

In the operational phase the quantity of waste product from 40 staff of the power plant isapproximately 40 kg/day. Plant operational staff can collect and transport this minor amount toan appropriate landfill site on a routine basis as required.

* Fire Prevention

The plant will carry out frequent regular training sessions for all workers in fire safety andprevention. Proper industrial fire management and control techniques will be applied.

Project Summary Report Aprit 20()

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EDEI Consortium EIA Pht-My 2 2 BOTPower Projeut

* Fire Prevention at Area of Tanks and Gas Station

Established policies, detailed safety procedures and relevant regulations and fire fightingguidelines will be available at the area of tanks and gas station. Fire fighting equipment will befrequently maintained and inspected and ready in case of emergency.

Necessary prevention measures will be installed:

- Training manpower for fire, explosion prevention and control

- Close relations with local police and fire squadrons in fire prevention and control.

- Regular monitoring of gas and oil leakage from tanks and pipelines.

Regular repair of gas station, tanks, pipe line, so that gas and oil leaks do not occur.

6.4 Environmental Monitoring and Management of the Phu My 2.2 Thermal PowerPlant

In order to properly assess environmental impacts of the Phu My 2.2 Thermal Power Plant aswell as evaluate effectiveness of mitigation measures applied for abatement of environmentalpollution, a program of monitoring and oversight of the project will be implemented. TheDepartment of Science, Technology and Environment of Ba Ria - Vung Tau province incollaboration with the Plant and Management Board, will implement this oversight program.

Legal and institutional backgrounds of the monitoring programmes were indicated. Proper airquality, water quality, noise, vibration and wildlife monitoring including parameters, frequencyand location to be selected were recommended and will be implemented.

Budget of environmental monitoring programmer were estimated and will be provided by theBOT Company.

7. PUBLIC PARTICIPATION

In Vietnam, there is currently no detailed guideline for Public Consultation. Because the PhuMy 2.2 Combined cycle power plant has no associated relocation and resettlement issues, partof WB guideline for public consultation could not be applied in this project. Combining thepolicy of GOV and WB guidelines the following process regarding Public Consultationorganisation is considered for the implementation of the Phu My 2.2 Power Plant

- Two meetings with local People Committee, social organisation, environmentalmanagement agency and representatives of local people will be organised by the PMU ofthe investor. The first meeting will be in the EIA study period The second meeting will beorganised after completion of EIA study.


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EDFI Consortium EIA Phu-My 2.2 BOT Power Project

- The EIA Appraisal Committee formed by the National Environment Agency (NEA) willreview and approve the EIA report in a maximum duration of 45 days from the day whenNEA receives the report submitted by EDFI Consortium.

- Additional Public Hearing from scientists, economists, NGOs etc. will be conducted bythe BOT Company by publishing adequate information about the project in various centraland local print and broadcast media.

During the public consultation process, World Bank Representatives will be invited to visitthe site and observe the process in action.


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