-Environmentali A-ssessment - --Reportdocuments.worldbank.org/curated/en/... · project to develop...

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Transcript of -Environmentali A-ssessment - --Reportdocuments.worldbank.org/curated/en/... · project to develop...

Page 1: -Environmentali A-ssessment - --Reportdocuments.worldbank.org/curated/en/... · project to develop power generating capacity at Phumy in the South of Vietnam. The proposed development

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EnvironmentalAssessmentReportfor the Combined Cycle Developmentat Phumy II, Vietnam

Executive Summary

August 1995

ESB INTERNATIONAL

ESBI ENGINEERING LTDStephen Court, 18/21 St. Stephen's Green, Dublin 2, Ireland,

Telephone: +353-1-703 8000 Fax: +353-1-661 5359Telex 30598 ESBT El

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Reference: PE61 1-F 12-1

Client: Electricity of Vietnam (EVN)

Report No: PE6 l1 -R2

Report Title: Environmental Assessment Report for theCombined Cycle Development (Phumy II)at Phumy, Vietnam

Executive Summary

Volume 1 of 1

Approved: I e

Date: 4 September 1995

ESBI ENGINEERING LIMITEDStephen Court, 18/21 St. Stephen's Green, Dublin 2, Ireland.Telephone: +353-1-7038000 Fax: +353-1-6764400 ESB INTERNATIONALTelex: 30691 ESBT El

QF14-1

EB222.Misc

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EXECUTIVE SUMMARY

CONTENTS

Page No.

Legal, Policy and Administrative Framnework 1

The Developer 1

IBRD Requirements and Guidelines 1

Vietnamese Environmental Policy and Regulations 2

EIA Review and Approval Process 2

Summary of Main Environmental Issues 2

Project Description 3

Baseline Data 4

Environmental Impacts 6

Summary of Alternatives 8

Summary of Mitigation Measures 12

Consultation with Affect Groups 13

Environmental Management and Training 14

Environmental Monitoring 15

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EXECUTIVE SUMMARY

Policy, Legal & Administrative Framework

1.1 This environmental impact assessment report (EIA) addresses the impacts of aproject to develop power generating capacity at Phumy in the South of Vietnam.The proposed development will consist of two blocks of combined cycle plant ofapproximately 800 MW total. Each block will likely consist of gas turbines, wasteheat boilers and a steam turbine. This project (Phumy II) is likely to be part fundedby the International Bank for Reconstruction and Development (IBRD).

1.2 A separate power development project (Phumy I) consisting of 600 MW ofconventional thermal plant is also planned for the site at Phumy and an EIA for thisproject has already been prepared. For completeness of information this EIA willaddress the impacts of the complete site development, i.e. Phumy I and Phumy II.

The Developer

1.3 The Developer of the proposed project is Electricity of Vietnam (EVN), a stateowned company which is responsible for supplying power to all of Vietnam.Shortage of adequate base load capacity together with high growth in demand hasled EVN to develop this additional power generation capacity. Natural gas from theoffshore White Tiger gas field will be available to Phumy in 1997 making it an idealsite for development of combined cycle plant.

International Bank for Reconstruction and Development (IBRD) Requirements& Guidelines

1.4 This environmental assessment report is prepared for EVN according to the scopeand format detailed in IBRD's Operational Directive OD 4.01. It is IBRD policythat all major projects shall be subject to an environmental assessment.

1.5 Environmental Guidelines have been issued by the IBRD to cover a wide range ofspecific industries. Each guideline contains emission limits as well as permittedambient levels for all relevant media and likely contaminants. Values are intendedas a guideline and mostly relate emissions to units of production. These guidelinesare addressed where appropriate in assessing the impacts of the proposeddevelopment, and the ones relevant to this proposed project are summarised inAppendix IV. Suitable environmental control technology is also specified in thisdocument. It is IBRD policy that where there exist different limits between itsguidelines and national controls, the stricter of the two shall be applied.

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Vietnamese Environment Policy And Regulations

1.6 A comprehensive environmental plan was adopted by Vietnam in 1991 called "TheNational Plan for Environmental and Sustainable Development: A Framework forAction". This plan provides the framework for establishing environmental issues.The implementation of this plan rests with the Vietnam State Committee for Scienceand Technology (SCTC).

1.7 Within this context national regulations and guidelines have been adopted givingpermitted levels of contaminants in air, water and soils. These regulations areaddressed where appropriate in this report and the relevant guidelines aresummarised in Appendix IV. Several provincial centres including Ho Chi Minh Cityhave also issued local environmental guidelines.

1.8 This law extends environrmental impact assessment requirements to a broad range ofpublic and private sector development activities, proposes procedures for screeningand incorporating of mitigation plans into project design, and explicitly links EIAreview to the project approval process.

1.9 The core agency with environmental mandate is the Ministry for Science,Technology and Environment (MSTE) which was formed in 1992 from the StateCommittee for Science. Within MSTE, the Department of Environment and NaturalResources (DENR) is the environmental arm with the main responsibility forcarrying out these environmental functions.

EIA Review And Approval Process

1.10 Responsibility for project approval, for projects such as the current one underVietnam's investment policy is given to the National Project Evaluation Board(NPEB) under the chairmanship of the State Planning Commission (SPC). As amember of the NPEB, the Ministry for Science Technology and Environment hasthe formal authority to comment on environmental aspects of the project. Thisfunction would normally be carried out by the Department of Environment andNatural Resources and a copy of the EIA has been submitted for their approval.

1.11 At the provincial level Environmental Committees also have formnal authority toreview and comment on environmnental aspects of investment applications. TheEnvironmental Committee at Vung Tau is the one of most relevance to the presentproposed project and this EIA has been submitted for their approval. A copy hasalso been made available to the public in the municipality of Phumy where theproject is being developed.

1.12 Within the IBRD EIAs are reviewed and assessed within the appropriate divisions.Both the EIA and the EIA summary are made available for public scrutiny.

Summary of Main Environmental Issues

1.13 The proposed development has major environmental benefits in the provision of anextra 800MW of combined cycle plant. Combined cycle plant is the most benign ofthermal power plants with higher efficiencies and lower emissions per unit of

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electricity generated. This extra generation capacity will allow the strengthening ofthe power supply system, the improvement of living standards and the developmentof industry and other economic activities in the region.

1.14 The overall development would directly affect 157 families in the Phumy area. Aseparate Rehabilitation Action Plan (RAP) is being carried out to World Bank (OD4.30) guidelines.

1.15 The use of natural gas as a fuel and the availability of an extensive body of water fordispersing heat will ensure only minor impacts from stack emissions and coolingwater emissions. A variety of mitigating measures will ensure that the impacts ofall other emissions from the proposed plant will not be significant.

1.16 It is recommended that monitoring programmes during the construction andoperating phases be put in place for the successful implementation of the Project.Recommendations are also made for the establishment of an environmental unit atPhumy as well as that of an environmental co-ordinator within EVN as its thermalprogram expands with the function of developing environmental policy andensuring compliance with regulations. This co-ordinator would also liaise withother groups such as a Coastal Zone Management Group in order to promote theprotection and sustainable development of the delicate coastal area. It is alsostressed in the report that oil spills represent a particular hazard and that strictprocedures, must be put in place to minimise this risk.

Project Description

1.17 The project is for the development of 800MW of combined cycle plant at Phumy inthe South of Vietnam. Combined cycle plant consist of gas turbines which generateelectricity directly as well as waste heat boilers which utilise the hot gases exhaustedfrom the gas turbines to raise steam and generate further electricity in the steamturbines. Combined cycle plants have advantages in terms of higher efficiency andlower environmental emissions. Figures 3.1, 3.2, 3.3, 4.2 illustrate the location andlayout of the project.

1.18 The plant will burn natural gas which will be available in mid 1997. At this stagethe only stack emissions of significance would be NOx (oxides of nitrogen) whichwill be maintained below a level of 50 ppm by use of low NOx burners. The firsttwo gas turbines will, however, be commissioned in December 1996 and will burndistillate fuel oil for about 6 months until natural gas is available. During this phaseemission of NOx will be rather high at about 300 ppm as it is not justifiable toinstall NOx reduction measures for such a short period.

1.19 A conventional thermal plant called Phumy I as also planned for the site and willconsist of 3 x 200MW units. Phumy I will also burn natural gas. Residual fuel oilwill be used for emergency standby. For completeness of information this EIAconsiders total emissions from the site, i.e. Phumy I and II.

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1.20 Cooling water for the plants will be taken from the Sao stream at the rate of 60m3/sand will be discharged to the Thivai estuary. Chlorination of the system in order toreduce fouling will be carried out so that the residual chlorine level at the dischargeis <0.02 ppm.

1.21 Waste water streams will include water treatment plant waste, sewage, surfacedrains, boiler washings and other minor sources typical of a power station. Theywill be treated as appropriate so that the effluents will satisfy IBRD and Vietnameseregulations.

1.22 The plant will require fresh water for boiler make-up and domestic use at amaximum rate of about 2000 m3 /day. This will be supplied by wells on site. Gaswill be delivered by pipeline and distillate and heavy fuel oil by tanker. A 4kmpower line will be constructed to join the existing transmission system.

Baseline Data

1.23 The Phumy site is located in a rural area about 70km south east of Ho Chi MinhCity. The population of the small townlet is about 8000 and the main economicactivities are farming and fishing. The average income is low even compared tonearby districts and infrastructure and services such as electrical supply, roads,health services and education are also poor.

1.24 About 157 families in Phumy will be directly affected by the project implementationconsisting of:..

6 families who live on the site (Phumy I).

1 35 families who own land and farm on the site (47 for Phumy II, 88 forPhumy I).

16 families who will have to be rehoused because the construction of atransmission line (Phumy II).

1.25 A survey of these people showed that in general they welcomed the project as asource of jobs for their children, but were worried about the amount ofcompensation they would receive. A separate Rehabilitation Action Plan (RAP)report is being prepared which will include full details of all these affected people,including land, assets, crops, so that fair and adequate compensation can be agreed.

1.26 Given the rural nature of the site air quality is expected to be good. Limitedmeasurements on the site show that this is so with levels of NO2 of 0 - 0.06 mg/m3

and levels of SO2 of 0.010 - 0.02 mg/m3.

1.27 Noise measurements carried out at 3 locations show levels of about 40 dBA at nightand higher levels at day time, probably due to nearby construction activities for aharbour development. For power station design night time levels are the mostsignificant as the permitted noise levels are lowest during night.

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1.28 The most significant ecological system is that of the mangrove forest and associatedfish, shell fish and other animal species. This appears under threat in this region asit does in many parts of South East Asia due to:-

Excessive siltation and organic pollution

Harvesting for firewood and charcoal manufacture

Operation of shrimp and fish aquaculture enterprises which may involveclearing mangrove areas as well as, depending on the stocking level, waterpollution from biocides and other wastes.

1.29 There is evidence of all the above activities near Phumy; however successfulreplanting of mangroves has also taken place in areas where they were cut down.Development of shrimp aquaculture probably represents the single greatest threat.

1.30 A survey of mangrove trees in the site and nearby study area indicated the presenceof 32 species. The distribution depends on submersion and salinity levels as well asimpacts of artificial replanting. The survey also found the following numbers ofanimal species which are largely associated with the mangrove areas;

30 species of birds

17 species of mammals

8 species of amphibians

16 species of reptiles

1.31 The site itself; which is 150ha in extent contain, about 20 ha of mangrove area. Therest is mostly cultivated for rice, cashew nut trees, eucalyptus and other crops.Apart from the mangroves there are no significant habitats or wild life areas on thesite or in the surrounding area. A study carried out showed the presence of 201species of plant in the study area of which 101 occurred in the actual site area.

1.32 The Thivai river estuary, which runs by the site, will be utilised to disperse the heatin the cooling water discharged from the plant. It is wide (400m) and deep (15 -30m) with a tidal variation of about 3m and a large tidal flow (10,00Om3/s).Analyses of the water quality of the Thivai estuary indicated the following mainfeatures:-

* High salinity levels, particularly in the dry season.

* Some evidence of oil pollution.

* Organic pollution from domestic sources.

* Moderate levels of dissolved oxygen.

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1.33 Surveys of the aquatic ecosystem of the Thivai river indicate that it is typical of thenearby large area of delta. It is rich in numbers of species but with some evidenceof an impact from organic pollution. The baseline surveys identified the followingnumbers of species:-

72 species of phytoplankton and 31 species of zooplancton.

60 species of fish and 22 species of shellfish.

42 species of zoobenthos (near site).

1.34 Fish eggs and larvae are considered particularly sensitive to environmentaldisturbance. A survey of eggs and larvae in the Thivai estuary showed numbers andspecies composition typical of the delta area. The larvae were found to migratefrom surface layer to the bottom depending on the time of day.

Environmental Impacts

1.35 The positive impacts of the proposed project are summarised below. The negativeimpacts are summarised in tables 1, 2, 3, and 4 and described below.

1.36 The proposed project, consisting of combined cycle plant burning natural gas, is themost environmentally benign forn of thermal power plant. It has a very highefficiency, close to 50%, and lower air emissions and cooling water requirementsper unit of electricity generated than for conventional plant. In particular, whenburning natural gas with a low NOx burner as is planned for this project, there areno significant emissions of NOx or SO2 and emissions of carbon dioxide are 50%lower than for conventional plant burning fuel oil or coal.

1.37 A major and ]positive impact will be the provision of 800MW generating capacity.This will impact on a regional basis by strengthening the electricity supply networkand allowing the connection of extra consumers and the development of industryand services in the region. The employment of large number of people during theconstruction and operation phase will also benefit the local economy.

1.38 The main groups of people directly affected by the overall development include sixfamilies, who live on the site, 135 families who own land on the site and 16 familieswho will be displaced from their homes because of power line construction. Aseparate RAP report will be carried out to IBRD guidelines which will detail thecompensation to be awarded to those people for their land, houses, crops and otherassets. The process will ensure that no families will suffer a drop in standard ofliving as a result of the project.

1.39 While some disturbance will be caused to the townlet of Phumy the overall impactshould be positive by the provision of jobs and improvement of infrastructure.

1.40 During the construction phase there will be a permanent loss of 2 ha of mangroveforest due to the construction of a jetty and a loss of about 0.5 ha of mangrove at thecooling water intake. There will be a temporary loss of 1 ha due to construction ofthe cooling water outlet pipes. As these will be buried the areas can be replanted.

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1.41 Dredging of the Thivai river in order to allow berthing of tankers of 10,000 dwtonnage as well as all the cooling water system construction will cause a local andtemporary loss of benthnic animals as well as disturbance of fish and otherorganisms.

1.42 Impacts of other construction activities such as noise, dust, sewage, after taking intoaccount mitigation measures, will be minor.

1.43 The Phumy I and II Power Stations will burn natural gas and the only stackemission of interest will be NOx. A dispersion analysis was carried out for the caseof plants on full load and showed that the maximum hourly ground levelconcentration of NO2 when burning natural gas would be 0.11 mg/m3 while themaximum annual average will be 0.002 mg/m3 . These relatively low values will bewell below I]BRD and Vietnamese air quality regulations and will be of minorsignificance to air quality in the area.

1.44 For about six months the first two gas turbines to be commissioned will burndistillate until natural gas reaches the site. The rate of emission of NOx will bequite high at 300 ppm as methods of reducing NOx levels such as water injectionare not considered feasible for this short period. However as they will be on opencycle for this period the high exit temperature will provide good dispersioncharacteristics. A dispersion analysis for this case showed that maximum hourlyground level concentrations of NO2 would be 0.100 mg/m33 This level will notbreak ambient air quality standards nor will it have a significant impact over theshort period involved.

1.45 Specification for the proposed plant will be such that noise levels at the siteperimeter will not exceed permitted levels for residential areas. This will ensurethat no noise nuisance is caused at nearest residences.

1.46 Cooling water discharge will be at a maximum rate of 60m3/s and a temperature riseof 70C. The discharge will be deep into the Thivai estuary which has a large tidalflow of 10,000 m3/sec. A thermal diffusion study indicates that the physical impactwill be minor with, for the worst case, a thermal plume of I OC extending across theestuary. Beyond the immediate outfall the maximum temperature rise will be 1.5°C.

1.47 Ecological impacts of the thermal plume are not predicted to be significant.However, because it is a deep discharge some scouring will take place at the outfall.No significant impacts will be caused to aquaculture or commercial fishery on theThivai River.

1.48 Chlorination of the cooling water will take place at a rate that will leave a residuallevel of <0.02 ppm at the outfall. At this concentration the chlorine should not haveany significant impacts beyond the discharge point.

1.49 A large number of organisms including fish eggs and larvae will be entrained by thecooling water system and significant mortality will occur due to pressure,temperature rise and chlorination. This is not predicted to have an overall impact onfish numbers in the area due to the large amount of similar habitat in the region anddue to the small ratio of CW flow to overall tidal flow.

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1.50 Other waste water streams from the plant include water treatment plant effluent,sewage, surface drains, boiler washes and acid cleans. These will all be treated asappropriate so that the effluents will satisfy Vietnamese regulations and will have noenvironmental impacts on the receiving water.

1.51 Oil spillage into the sensitive mangrove ecosystem represents a serious menace. Inorder to minimise this risk strict procedures will be implemented for the delivery,unloading, storage and handling of oil as well as an emergency response plan andclean up procedures.

1.52 Dredging will be required occasionally in order to maintain navigable depth at thejetty. This will create a local and temporary disturbance to biota in the area. Thedredged material will be transported for land reclamation to an area not yetdesignated.

Summary of Alternatives

1.53 Alternatives to the proposed project should be seen in the context of a highpredicted growth in electricity demand in the South Vietnam area over the nexttwenty years. This growth is required for economic development and improvementin standard of living. A mixture of thermal and hydroelectric power, which arecomplimentary to each other, is required to satisfy this demand. Alternative designsand sites were considered.

1.54 A natural gas fired combined cycle plant, such as the present design, has thefollowing major advantage over other types of thermal plant which might beconsidered :-

* Lower capital costShorter lead times to power production

* Small land area requirements* Higher efficiencies

Lower air emissions per unit of electricity generated* Lower cooling water requirements per unit of electricity generated.

1.55 A number of alternative sites were considered and evaluated on the followingcriteria:-

Proximity to Bach-Ho - Thu Duc gas pipelineDistance to transmission linesCooling water availability

* Environmental and socioeconomic issues* Site area available* Construction and engineering issues.

The site at Phumy was judged as the optimum available.

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TABLE 1

Summary of Environmental ImpactsDuring Construction Phase

Source Environmental Mitigation Measures Residual ImpactImpact

Site Displacement of Adequate and timely TemporaryAcquisition people living and resettlement and/or disturbance - no

owning land on site compensation reduction inassets or income

Transmission line Displacement of 16 Adequate and timely Temporaryconstruction families resettlement disturbance only

Construction of Loss of 2ha of None Local butJetty Mangrove permanent

Construction of Loss of 1 ha Pipes are buried and area TemporaryC.W. outlet Mangrove will be replanted

Dredging Loss of benthnic None Local andactivities fauna Temporary loss

Sanitation Sewage discharge Effluent will be treated to Minorfacilities Vietnamese standards

Noise Noise during piling Restrict piling to day light Minor andand steam purging hours. Notify residents of temporaryoperations steam blows

Dust Dust generated Spraying of access roads Minorand truck tyres

Construction Traffic Increase Road Improvement MinorWork lWork during Short term Beneficial shortconstruction employment for term

over 1000 workers

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TABLE 2

Summary of Impacts of Atmospheric Emissions for Phumy I and IIWhen Burning Natural Gas

Impact Predicted Vietnamese IBRDRegulations

Nitrogen Oxide (NO2 )

Ambient1 -hour maximum 4g/m3 110 300 l

24-hour maximum 1Lg/m3 l

Max. annual average Ptg/m3 2 80 100

Sulphur Dioxide (SO2) (a)

Ambient1 -hour maximum jtg/m3 0 30024-hour maximum jig/m3 0 --- 500Max. annual average jig/M3 0 80 100

Carbon Dioxide (CO2) (a)

EmissionTonnes/annum (total) 4.7 x 106 ---

Noise (dB (A))

Noise Levels at Boundary fence 55 55 (b)

Residential Area <55 55/60 (b) 55 (b)

Particulates24-hour maximum jig/mi3 <1 200 500

(a) 100% load factor

(b) Varies with day / night; indoors and outdoors and other factors

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TABLE 3

Summary of Environmental ImpactsDuring Operation of Plant - Aqueous Emissions of Phumy I and II

Source Environmental Mitigation Measures Residual impactImpact

Water Treatment Contains strong Treated in neutralisation NegligiblePlant Waste acids and alkalis tank to pH 6-9.

Effluent will comply withwaste water standards(Ref.8)

Oil Contaminated Adverse impact on All surface drains will be MinorSurface Water marine organisms routed through oil

if discharged interceptors.directly Effluent will comply with

waste water standards(Ref.8)

Sewage High BOD and Sewage will be treated to Minormicro biological <20 mg/l BOD beforepollutants discharge

Boiler Blowdown Contain very low No treatment necessary Negligibleconcentration ofcontaminants

Boiler Acid Utilises toxic These will be treated with MinorClean chemicals. This the waste removed off site

process arises only for disposal. Effluentrarely. discharged will satisfy

waste water regulations(Ref.8)

Chemical Bulk chemicals Stored bulk chemicals will NegligibleSpillage stored on site, in be bunded so that any

particular acid and spillage will be containedalkali and controlled

Boiler Washing If burning residual Metals will be precipitated Minorfuel oil can contain by chemical treatment andvanadium and other removed offsite to land fillmetals

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Table 4

Summary of Impacts of Cooling Water System Operationfor Phumy I and II

Source Environmental Mitigation ResidualImpact Measures Impact

Intake of 60 m3/s Loss of fish eggs None Small in relationand plankton to overall

abundance in thearea

Intake screens Loss of fish Optimum measures Minorthrough not yet selectedimpingement

Discharge of Impact on Discharge designed Minorheated water sensitive so that temperature

organisms rise will not exceedIO0C

Chlorination of Impact of Residual chorine NegligibleC.W. system residual chlorine levels will be kept

on ecosystem to < .02ppm

Discharge of CW Scouring of None Permanent butbottom local disturbance

of area

Summary of Mitigation Measures

1.56 In order to reduce environmental impacts from the proposed development mitigationmeasures, summarised below, have already been put in hand or are planned. Apartfrom these, and taking into account the minor residual impacts of the proposeddevelopment, no further mitigation measures are considered necessary.

1.57 About 157 families who own land, houses and other assets in the area will beimpacted directly by the project. A Rehabilitation Action Plan (RAP) process willbe completed to IBRD guidelines to ensure compensation will be given in a fair andtimely way. This will ensure that all the people affected, will, at the end of theprocess, be at least as well off as they were previously.

1.58 Mitigation measures to apply during the construction phase include the following:-

Provision of housing, clean water, sanitation facilities, health services tothe construction workers.

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Sewage treatment.

Dust suppression control

Noise control

1.59 During the operation phase air emissions will be controlled by burning natural gasand installing low NOx burners.

1.60 Noise control will be by housing and acoustic cladding of noisy plant to ensurenoise levels at the site perimeter are within regulations. Other noise reductionmeasures such as tree plantations may be used as appropriate.

1.61 Impacts of the cooling water system will be mitigated by:-

Design of outfall to reduce extent of thermal plumes.

Maintaining residual chlorine levels at less than 0.02 ppm.

* Measures to reduce impingement of fish at the intake.

1.62 All other waste water streams will be treated so that effluents will satisfyVietnamese regulations and will not cause any significant impacts.

1.63 In order to avoid risks of ground water pollution or soil contamination all wastematerials that will arise at the site will be monitored as to type and quantity andremoved offsite for disposal or recycling.

Consultation with Affected Groups

1.64 The groups directly affected by the project are:

6 families who live on the project site (Phumy I).

135 other families who own land and other assets on the site (88 forPhumy 1, 47 for Phumy II).

16 families who live in houses along the proposed route of thetransmission line and who will have to move (Phumy II).

1.65 These people are represented by the Peoples Committee of Phumy who also lookafter their interests in relation to compensation and resettlement. The companyresponsible for this project (EVN) have had discussions with the PeoplesCommittee about plans for the project and compensation issues and the PeoplesCommittee have informed the families concerned. A representative of EVN hasalso spoken individually to each of the project affected families.

1.66 As already described in Chapter 4, a survey was carried out of the families affectedby the project by Environmental Protection Centre (EPC), H.C.M City. Thissurvey established details of the area of land owned by each family, the type and

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quantity of crops grown on each property, the annual income as well as the attitudeof the families towards the project and the preferred type of compensation. Noobjection was voiced to the project as long as proper compensation was agreed.

1.67 On July 15th Dr. C. McMahon of the Consultancy Company, ESBI, visited thePhumy area in order to have independent discussions with the affected groups. Inan open discussion with the Peoples Committee the same views as above wereexpressed i.e. the project is welcome because of the provision of badly needed jobsin the community as well as improvements in infrastructure such as roads andelectricity supply. There was an issue about compensation for land, crops andtrees. It was felt that the preliminary amount suggested was not sufficient forpeople to purchase equivalent land elsewhere. Apart from this the only issue raisedwas that of dust from trucks passing by during construction and a request to hardsurface the road. This is already planned.

1.68 Discussions were also held with several individuals who live or own land on thesite. These all expressed the view that they were happy with the representation ofthe Peoples Committee and the way they were kept informed of the project, butwere worried about the amount of compensation being talked about for their land,crops and other assets. No firm offers had yet been made. Apart from this theywelcomed the project, particularly as regards the likelihood of providing jobs fortheir children.

1.69 It should be noted that a Rehabilitation Action Plan (RAP) is being finalised byEVN and is being done to World Bank (OD 4.3) criteria and guidelines. Thecriteria for resettlement/compensation is that overall no affected person shouldsuffer in termrs of standard of living and must be given full rights to participate inthe RAP process.

Environmental Management and Training

1.70 It is recommended that an environmental unit be set up as part of the managementstructure in the new development at Phumy. The main function of this unit wouldbe the monitoring and control of waste water streams and other emissions from theplant. This function could be combined with the already planned water qualityanalysis programme at little additional expense.

1.71 It is also recommended that as EVN expands its generation programme, anenvironmental co-ordinator be established with the function of developingenvironmental policy, issuing in-house guidelines and establishing compliancewith standards and regulations and setting up an environmental managementsystem.

1.72 It is further recommended that this co-ordinator would also liaise with other groupssuch as a coastal zone management group in order to promote strategies for theprotection and sustainable development of the delicate coastal zone.

EBI 72.REP 14

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Environmental Monitoring

1.73 In order to fully control the implementation of the proposed project, it isrecommended that the following monitoring programme be put in place:-

Monitoring programme of the waste water streams from the new project.

* Extension of the existing air monitoring programme.

* Noise monitoring at the site perimeter.

* Monitoring of waste materials arising on site.

* A review of the baseline ecological study of the Thivai river estuaryparticularly in the area near the power plant site.

1.74 During the construction phase monitoring for dust levels, noise levels, sewageeffluent should be carried out to ensure no nuisance is created.

1.75 Recommendations are made for training programs for management and staff at theproposed plant. Particular attention should be given to staff involved inenvironmental work, to those handling oil and chemicals and those involved inemergency and safety procedures.

EB172.REP 15

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: Enviuro nlental -;Assessment -

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EnvironmentalAssessmentReportfor the Combined Cycle Developmentat Fhumy II, Vietnam

Executive Summary

August 1995

ESB INTERNATIONALESBI ENGINEERING LTD

Stephen Court, 18/21 St. Stephen's Green. Dublin 2, Ireland,Telephone: +353-1-703 8000 Fax: +353-1-661 5359

Telex: 30598 ESBT El

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Reference: PE61 1-F12-1

Client: Electricity of Vietnam (EVN)

Report No: PE61 1-R2

Report Title: Environmental Assessment Report for theCombined Cycle Development (Phumy II)at Phumy, Vietnam

Executive Summary

Volume 1 of 1

Approved: e

Date: 4 September 1995

ESBI ENGINEERING LIMITEDStephen Court, 18/21 St. Stephen's Green, Dublin 2,1Ireland. XTelephone: +353-1-7038000 Fax: +353-1-6764400Telex: 30691 ESBT El ESB INTERNATIONAL

QF14-1

EB222.Misc

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EXECUTIVE SUMMARY

CONTENTS

Page No.

Legal, Policy and Administrative Framework 1

The Developer 1

IBRD Requirements and Guidelines I

Vietnamese Environmental Policy and Regulations 2

EIA Review and Approval Process 2

Summary of Main Environmental Issues 2

Project Description 3

Baseline Data 4

Environmental Impacts 6

Summary of Alternatives 8

Summary of Mitigation Measures 12

Consultation with Affect Groups 13

Environmental Management and Training 14

Environmental Monitoring 15

EB] 71.REP

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EXECUTIVE SUMMARY

Policy, Legal & Administrative Framework

1.1 This environmental impact assessment report (EIA) addresses the impacts of aproject to develop power generating capacity at Phumy in the South of Vietnam.The proposed development will consist of two blocks of combined cycle plant ofapproximately 800 MW total. Each block will likely consist of gas turbines, wasteheat boilers and a steam turbine. This project (Phumy II) is likely to be part fundedby the International Bank for Reconstruction and Development (IBRD).

1.2 A separate power development project (Phumy I) consisting of 600 MW ofconventional thermal plant is also planned for the site at Phumy and an EIA for thisproject has already been prepared. For completeness of inforrnation this EIA willaddress the impacts of the complete site development, i.e. Phumy I and Phumy II.

The Developer

1.3 The Developer of the proposed project is Electricity of Vietnam (EVN), a stateowned company which is responsible for supplying power to all of Vietnam.Shortage of adequate base load capacity together with high growth in demand hasled EVN to develop this additional power generation capacity. Natural gas from theoffshore White Tiger gas field will be available to Phumy in 1997 making it an idealsite for development of combined cycle plant.

International Bank for Reconstruction and Development (IBRD) Requirements& Guidelines

1.4 This environmental assessment report is prepared for EVN according to the scopeand format detailed in IBRD's Operational Directive OD 4.01. It is IBRD policythat all major projects shall be subject to an environmental assessment.

1.5 Enviromnental Guidelines have been issued by the IBRD to cover a wide range ofspecific industries. Each guideline contains emission limits as well as permittedambient levels for all relevant media and likely contaminants. Values are intendedas a guideline and mostly relate emissions to units of production. These guidelinesare addressed where appropriate in assessing the impacts of the proposeddevelopment, and the ones relevant to this proposed project are summarised inAppendix IV. Suitable environmental control technology is also specified in thisdocument. It is IBRD policy that where there exist different limits between itsguidelines and national controls, the stricter of the two shall be applied.

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Vietnamese Environment Policy And Regulations

1.6 A comprehensive environmental plan was adopted by Vietnam in 1991 called "TheNational Plan for Environmental and Sustainable Development: A Framework forAction". This plan provides the framework for establishing environmental issues.The implementation of this plan rests with the Vietnam State Committee for Scienceand Technology (SCTC).

1.7 Within this context national regulations and guidelines have been adopted givingpermitted levels of contaminants in air, water and soils. These regulations areaddressed where appropriate in this report and the relevant guidelines aresummarised in Appendix IV. Several provincial centres including Ho Chi Minh Cityhave also issued local environmental guidelines.

1.8 This law extends environmental impact assessment requirements to a broad range ofpublic and private sector development activities, proposes procedures for screeningand incorporating of mitigation plans into project design, and explicitly links EIAreview to the project approval process.

1.9 The core agency with environmental mandate is the Ministry for Science,Technology and Environment (MSTE) which was formed in 1992 from the StateCommittee for Science. Within MSTE, the Department of Environment and NaturalResources (DENR) is the environmental arm with the main responsibility forcarrying out these environmental functions.

EIA Review And Approval Process

1.10 Responsibility for project approval, for projects such as the current one underVietnam's investment policy is given to the National Project Evaluation Board(NPEB) under the chairmanship of the State Planning Commission (SPC). As amember of the NPEB, the Ministry for Science Technology and Environment hasthe formal authority to comment on environmental aspects of the project. Thisfunction would normally be carried out by the Department of Environment andNatural Resources and a copy of the EIA has been submitted for their approval.

1.11 At the provincial level Environmental Committees also have formal authority toreview and comment on environmental aspects of investment applications. TheEnvironmental Committee at Vung Tau is the one of most relevance to the presentproposed project and this EIA has been submitted for their approval. A copy hasalso been made available to the public in the municipality of Phumy where theproject is being developed.

1.12 Within the IBRD EIAs are reviewed and assessed within the appropriate divisions.Both the EIA and the EIA summary are made available for public scrutiny.

Summary of Main Environmental Issues

1.13 The proposed development has major environmental benefits in the provision of anextra 800MW of combined cycle plant. Combined cycle plant is the most benign ofthermal power plants with higher efficiencies and lower emissions per unit of

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electricity generated. This extra generation capacity will allow the strengthening ofthe power supply system, the improvement of living standards and the developmentof industry and other economic activities in the region.

1.14 The overall development would directly affect 157 families in the Phumy area. Aseparate Rehabilitation Action Plan (RAP) is being carried out to World Bank (OD4.30) guidelines.

1.15 The use of natural gas as a fuel and the availability of an extensive body of water fordispersing heat will ensure only minor impacts from stack emissions and coolingwater emissions. A variety of mitigating measures will ensure that the impacts ofall other emissions from the proposed plant will not be significant.

1.16 It is recommended that monitoring programmes during the construction andoperating phases be put in place for the successful implementation of the Project.Recommendations are also made for the establishment of an environmental unit atPhumy as well as that of an environmental co-ordinator within EVN as its thermalprogram expands with the function of developing environmental policy andensuring compliance with regulations. This co-ordinator would also liaise withother groups such as a Coastal Zone Management Group in order to promote theprotection and sustainable development of the delicate coastal area. It is alsostressed in the report that oil spills represent a particular hazard and that strictprocedures, rnust be put in place to minimise this risk.

Project Description

1.17 The project is for the development of 800MW of combined cycle plant at Phumy inthe South of Vietnam. Combined cycle plant consist of gas turbines which generateelectricity directly as well as waste heat boilers which utilise the hot gases exhaustedfrom the gas turbines to raise steam and generate further electricity in the steamturbines. Combined cycle plants have advantages in terms of higher efficiency andlower environmental emissions. Figures 3.1, 3.2, 3.3, 4.2 illustrate the location andlayout of the project.

1.18 The plant will burn natural gas which will be available in mid 1997. At this stagethe only stack emissions of significance would be NOx (oxides of nitrogen) whichwill be maintained below a level of 50 ppm by use of low NOx burners. The firsttwo gas turbines will, however, be commissioned in December 1996 and will burndistillate fuel oil for about 6 months until natural gas is available. During this phaseemission of NOx will be rather high at about 300 ppm as it is not justifiable toinstall NOx reduction measures for such a short period.

1.19 A conventional thermal plant called Phumy I as also planned for the site and willconsist of 3 x 200MW units. Phumy I will also bum natural gas. Residual fuel oilwill be used for emergency standby. For completeness of information this EIAconsiders total emissions from the site, i.e. Phumy I and II.

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1.20 Cooling water for the plants will be taken from the Sao stream at the rate of 60m3 /sand will be discharged to the Thivai estuary. Chlorination of the svstem in order toreduce fouling will be carried out so that the residual chlorine level at the dischargeis <0.02 ppm.

1.21 Waste water streams will include water treatment plant waste, sewage, surfacedrains, boiler washings and other minor sources typical of a power station. Thevwill be treated as appropriate so that the effluents will satisfy IBRD and Vietnameseregulations.

1.22 The plant will require fresh water for boiler make-up and domestic use at amaximum rate of about 2000 m3 /day. This will be supplied by wells on site. Gaswill be delivered by pipeline and distillate and heavy fuel oil by tanker. A 4kmpower line will be constructed to join the existing transmission system.

Baseline Data

1.23 The Phumy site is located in a rural area about 70km south east of Ho Chi MinhCity. The population of the small townlet is about 8000 and the main economicactivities are farming and fishing. The average income is low even compared tonearby districts and infrastructure and services such as electrical supply, roads,health services and education are also poor.

1.24 About 157 families in Phumy will be directly affected by the project implementationconsisting of:-

6 families who live on the site (Phumy I).

135 families who own land and farm on the site (47 for Phumy II, 88 forPhumy I).

16 families who will have to be rehoused because the construction of atransmission line (Phumy II).

1.25 A survey of these people showed that in general they welcomed the project as asource of jobs for their children, but were worried about the amount ofcompensation they would receive. A separate Rehabilitation Action Plan (RAP)report is being prepared which will include full details of all these affected people,including land, assets, crops, so that fair and adequate compensation can be agreed.

1.26 Given the rural nature of the site air quality is expected to be good. Limitedmeasurements on the site show that this is so with levels of NO2 of 0 - 0.06 mg/m3

and levels of SO2 of 0.010 - 0.02 mg/m3.

1.27 Noise measurements carried out at 3 locations show levels of about 40 dBA at nightand higher levels at day time, probably due to nearby construction activities for aharbour development. For power station design night time levels are the mostsignificant as the permitted noise levels are lowest during night.

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1.28 The most significant ecological system is that of the mangrove forest and associatedfish, shell fish and other animal species. This appears under threat in this region asit does in many parts of South East Asia due to:-

Excessive siltation and organic pollution

. Harvesting for firewood and charcoal manufacture

Operation of shrimp and fish aquaculture enterprises which may involveclearing mangrove areas as well as, depending on the stocking level, waterpollution from biocides and other wastes.

1.29 There is evidence of all the above activities near Phumy; however successfulreplanting of mangroves has also taken place in areas where they were cut down.Development of shrimp aquaculture probably represents the single greatest threat.

1.30 A survey of mangrove trees in the site and nearby study area indicated the presenceof 32 species. The distribution depends on submersion and salinity levels as well asimpacts of artificial replanting. The survey also found the following numbers ofanimal species which are largely associated with the mangrove areas;

- 30 species of birds

* 17 species of mammals

* 8 species of amphibians

* 16 species of reptiles

1.31 The site itself, which is 150ha in extent contain, about 20 ha of mangrove area. Therest is mostly cultivated for rice, cashew nut trees, eucalyptus and other crops.Apart from the mangroves there are no significant habitats or wild life areas on thesite or in the surrounding area. A study carried out showed the presence of 201species of plant in the study area of which 101 occurred in the actual site area.

1.32 The Thivai iiver estuary, which runs by the site, will be utilised to disperse the heatin the cooling water discharged from the plant. It is wide (400m) and deep (15 -30m) with a tidal variation of about 3m and a large tidal flow (lO,00Om3/s).Analyses of the water quality of the Thivai estuary indicated the following mainfeatures:-

* High salinity levels, particularly in the dry season.

* Some evidence of oil pollution.

a Organic pollution from domestic sources.

* Moderate levels of dissolved oxygen.

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1.33 Surveys of the aquatic ecosystem of the Thivai river indicate that it is typical of thenearby large area of delta. It is rich in numbers of species but with some evidenceof an impact from organic pollution. The baseline surveys identified the followingnumbers of species:-

72 species of phytoplankton and 31 species of zooplancton.

60 species of fish and 22 species of shellfish.

42 species of zoobenthos (near site).

1.34 Fish eggs and larvae are considered particularly sensitive to environmentaldisturbance. A survey of eggs and larvae in the Thivai estuary showed numbers andspecies composition typical of the delta area. The larvae were found to migratefrom surface layer to the bottom depending on the time of day.

Environmental Impacts

1.35 The positive impacts of the proposed project are summarised below. The negativeimpacts are summarised in tables 1, 2, 3, and 4 and described below.

1.36 The proposed project, consisting of combined cycle plant burning natural gas, is themost environmentally benign form of thermal power plant. It has a very highefficiency, close to 50%, and lower air emissions and cooling water requirementsper unit of electricity generated than for conventional plant. In particular, whenburning natural gas with a low NOx burner as is planned for this project, there areno significant emissions of NOx or SO2 and emissions of carbon dioxide are 50%lower than for conventional plant burning fuel oil or coal.

1.37 A major and positive impact will be the provision of 800MW generating capacity.This will impact on a regional basis by strengthening the electricity supply networkand allowing the connection of extra consumers and the development of industryand services in the region. The employment of large number of people during theconstruction and operation phase will also benefit the local economy.

1.38 The main groups of people directly affected by the overall development include sixfamilies, who live on the site, 135 families who own land on the site and 16 familieswho will be displaced from their homes because of power line construction. Aseparate RAP report will be carried out to IBRD guidelines which will detail thecompensation to be awarded to those people for their land, houses, crops and otherassets. The process will ensure that no families will suffer a drop in standard ofliving as a result of the project.

1.39 While some disturbance will be caused to the townlet of Phumy the overall impactshould be positive by the provision ofjobs and improvement of infrastructure.

1.40 During the construction phase there will be a permanent loss of 2 ha of mangroveforest due to the construction of a jetty and a loss of about 0.5 ha of mangrove at thecooling water intake. There will be a temporary loss of 1 ha due to construction ofthe cooling water outlet pipes. As these will be buried the areas can be replanted.

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1.41 Dredging of the Thivai river in order to allow berthing of tankers of 10,000 dwtonnage as well as all the cooling water system construction will cause a local andtemporary loss of benthnic animals as well as disturbance of fish and otherorganisms.

1.42 Impacts of other construction activities such as noise, dust, sewage, after taking intoaccount mitigation measures, will be minor.

1.43 The Phumy I and II Power Stations will burn natural gas and the only stackemission of interest will be NOx. A dispersion analysis was carried out for the caseof plants on full load and showed that the maximum hourly ground levelconcentration of NO2 when burning natural gas would be 0.11 mg/m3 while themaximum annual average will be 0.002 mg/m3 . These relatively low values will bewell below IBRD and Vietnamese air quality regulations and will be of minorsignificance to air quality in the area.

1.44 For about six months the first two gas turbines to be commissioned will burndistillate until natural gas reaches the site. The rate of emission of NOx will bequite high at 300 ppm as methods of reducing NOx levels such as water injectionare not considered feasible for this short period. However as they will be on opencycle for this period the high exit temperature will provide good dispersioncharacteristics. A dispersion analysis for this case showed that maximum hourlyground level concentrations of NO2 would be 0.100 mg/m33 This level will notbreak ambient air quality standards nor will it have a significant impact over theshort period involved.

1.45 Specification for the proposed plant will be such that noise levels at the siteperimeter will not exceed permitted levels for residential areas. This will ensurethat no noise nuisance is caused at nearest residences.

1.46 Cooling water discharge will be at a maximum rate of 60m3/s and a temperature riseof 70C. The discharge will be deep into the Thivai estuary which has a large tidalflow of 10,000 m3/sec. A thermal diffusion study indicates that the physical impactwill be minor with, for the worst case, a thermal plume of 1 C extending across theestuary. Beyond the immediate outfall the maximum temperature rise will be 1.50C.

1.47 Ecological impacts of the thermal plume are not predicted to be significant.However, because it is a deep discharge some scouring will take place at the outfall.No significant impacts will be caused to aquaculture or commercial fishery on theThivai River.

1.48 Chlorination of the cooling water will take place at a rate that will leave a residuallevel of <0.02 ppm at the outfall. At this concentration the chlorine should not haveany significant impacts beyond the discharge point.

1.49 A large number of organisms including fish eggs and larvae will be entrained by thecooling water system and significant mortality will occur due to pressure,temperature rise and chlorination. This is not predicted to have an overall impact onfish numbers in the area due to the large amount of similar habitat in the region anddue to the small ratio of CW flow to overall tidal flow.

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1.50 Other waste water streams from the plant include water treatment plant effluent.sewage, surface drains, boiler washes and acid cleans. These will all be treated asappropriate so that the effluents will satisfy Vietnamese regulations and will have noenvironmental impacts on the receiving water.

1.51 Oil spillage into the sensitive mangrove ecosystem represents a serious menace. Inorder to minimise this risk strict procedures will be implemented for the delivery,unloading, storage and handling of oil as well as an emergency response plan andclean up procedures.

1.52 Dredging will be required occasionally in order to maintain navigable depth at thejetty. This will create a local and temporary disturbance to biota in the area. Thedredged material will be transported for land reclamation to an area not yetdesignated.

Summary of Alternatives

1.53 Alternatives to the proposed project should be seen in the context of a highpredicted growth in electricity demand in the South Vietnam area over the nexttwenty years. This growth is required for economic development and improvementin standard of living. A mixture of thermal and hydroelectric power, which arecomplimentary to each other, is required to satisfy this demand. Alternative designsand sites were considered.

1.54 A natural gas fired combined cycle plant, such as the present design, has thefollowing major advantage over other types of thermal plant which might beconsidered :-

* Lower capital cost- Shorter lead times to power production- Small land area requirementse Higher efficiencies* Lower air emissions per unit of electricity generated* Lower cooling water requirements per unit of electricity generated.

1.55 A number of alternative sites were considered and evaluated on the followingcriteria:-

Proximity to Bach-Ho - Thu Duc gas pipelineDistance to transmission linesCooling water availabilityEnvironmental and socioeconomic issuesSite area availableConstruction and engineering issues.

The site at Phurny was judged as the optimum available.

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TABLE 1

Summary of Environmental ImpactsDuring Construction Phase

Source Environmental Mitigation Measures Residual ImpactImpact

Site Displacement of Adequate and timely TemporaryAcquisition people living and resettlement and/or disturbance - no

owning land on site compensation reduction inassets or income

Transmission line Displacement of 16 Adequate and timely Temporaryconstruction families resettlement disturbance only

Construction of Loss of 2ha of None Local butJetty Mangrove permanent

Construction of Loss of I ha Pipes are buried and area TemporaryC.W. outlet Mangrove will be replanted

Dredging Loss of benthnic None Local andactivities fauna Temporary loss

Sanitation Sewage discharge Effluent will be treated to Minorfacilities Vietnamese standards

Noise Noise during piling Restrict piling to day light Minor andand steam purging hours. Notify residents of temporaryoperations steam blows

Dust Dust generated Spraying of access roads Minor_______________ ._______________ and truck tyresConstruction Traffic Increase Road Improvement MinorWorkWork during Short term Beneficial shortconstruction employment for term

over 1000 workers

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TABLE 2

Summary of Impacts of Atmospheric Emissions for Phumv I and IIWhen Burning Natural Gas

Impact Predicted Vietnamese IBRDRegulations

Nitrogen Oxide (NO2 )

Ambient1-hour maximum HLg/m3 110 30024-hour maximum pg/m, l

Max. annual average Pg/m3 2 80 100

Sulphur Dioxide (SO2) (a)

Ambient1-hour maximum jg/m3 0 300 l

24-hour maximum jg/m 3 0 --- 500Max. annual average jg/m3 0 80 100

Carbon Dioxide (CO2) (a)

EmissionTonnes/annum (total) 4.7 x 106

Noise (dB (A))

Noise Levels at Boundary fence 55 55 (b)

Residential Area <55 55/60 (b) 55 (b)

Particulates24-hour maximum jg/m3 <1 200 500

(a) 100% load factor

(b) Varies with day / night; indoors and outdoors and other factors

EB]72,REP 10

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TABLE 3

Summarv of Environmental ImpactsDuring Operation of Plant - Aqueous Emissions of Phumy I and II

Source Environmental Mitigation Measures Residual impactImpact

Water Treatment Contains strong Treated in neutralisation NegligiblePlant Waste acids and alkalis tank to pH 6-9.

Effluent will comply withwaste water standards(Ref.8)

Oil Contaminated Adverse impact on All surface drains will be MinorSurface Water marine organisms routed through oil

if discharged interceptors.directly Effluent will comply with

waste water standards(Ref.8)

Sewage High BOD and Sewage will be treated to Minormicro biological <20 mg/l BOD beforepollutants discharge

Boiler Blowdown Contain very low No treatment necessary Negligibleconcentration ofcontaminants

Boiler Acid Utilises toxic These will be treated with MinorClean chemicals. This the waste removed off site

process arises only for disposal. Effluentrarely. discharged will satisfy

waste water regulations(Ref.8)

Chemical Bulk chemicals Stored bulk chemicals will NegligibleSpillage stored on site, in be bunded so that any

particular acid and spillage will be containedalkali and controlled

Boiler Washing If burning residual Metals will be precipitated Minorfuel oil can contain by chemical treatment andvanadium and other removed offsite to land fillmetals

EB172.REP 11

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Table 4

Summary of Impacts of Cooling Water System Operationfor Phumy I and II

Source Environmental Mitigation ResidualImpact Measures Impact

Intake of 60 m 3/s Loss of fish eggs None Small in relationand plankton to overall

abundance in thearea

Intake screens Loss of fish Optimum measures Minorthrough not yet selectedimpingement

Discharge of Impact on Discharge designed Minorheated water sensitive so that temperature

organisms rise will not exceedI°C

Chlorination of Impact of Residual chorine NegligibleC.W. system residual chlorine levels will be kept

on ecosystem to < .02ppm

Discharge of CW Scouring of None Permanent butbottom local disturbance

of area

Summary of Mitigation Measures

1.56 In order to reduce environmental impacts from the proposed development mitigationmeasures, summarised below, have already been put in hand or are planned. Apartfrom these, and taking into account the minor residual impacts of the proposeddevelopment, no further mitigation measures are considered necessary.

1.57 About 157 families who own land, houses and other assets in the area will beimpacted directly by the project. A Rehabilitation Action Plan (RAP) process willbe completed to IBRD guidelines to ensure compensation will be given in a fair andtimely way. This will ensure that all the people affected, will, at the end of theprocess, be at least as well off as they were previously.

1.58 Mitigation measures to apply during the construction phase include the following:-

Provision of housing, clean water, sanitation facilities, health services tothe construction workers.

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Sewage treatment.

Dust suppression control

Noise control

1.59 During the operation phase air emissions will be controlled by burning natural gasand installing low NOx burners.

1.60 Noise control will be by housing and acoustic cladding of noisy plant to ensurenoise levels at the site perimeter are within regulations. Other noise reductionmeasures such as tree plantations may be used as appropriate.

1.61 Impacts of the cooling water system will be mitigated by:-

* Design of outfall to reduce extent of thermal plumes.

Maintaining residual chlorine levels at less than 0.02 ppm.

Measures to reduce impingement of fish at the intake.

1.62 All other waste water streams will be treated so that effluents will satisfyVietnamese regulations and will not cause any significant impacts.

1.63 In order to avoid risks of ground water pollution or soil contamination all wastematerials that will arise at the site will be monitored as to type and quantity andremoved offsite for disposal or recycling.

Consultation with Affected Groups

1.64 The groups directly affected by the project are:

6 families who live on the project site (Phumy I).

135 other families who own land and other assets on the site (88 forPhumy I, 47 for Phumy II).

. 16 families who live in houses along the proposed route of thetransmission line and who will have to move (Phumy II).

1.65 These people are represented by the Peoples Committee of Phumy who also lookafter their interests in relation to compensation and resettlement. The companyresponsible for this project (EVN) have had discussions with the PeoplesCommittee about plans for the project and compensation issues and the PeoplesCommittee have informed the families concerned. A representative of EVN hasalso spoken individually to each of the project affected families.

1.66 As already described in Chapter 4, a survey was carried out of the families affectedby the project by Environmental Protection Centre (EPC), H.C.M City. Thissurvey established details of the area of land owned by each family, the type and

EBI 72.REP 13

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quantity of crops grown on each property. the annual income as well as the attitudeof the families towards the project and the preferred type of compensation. Noobjection was voiced to the project as long as proper compensation was agreed.

1.67 On July 15th Dr. C. McMahon of the Consultancy Company, ESBI, visited thePhumy area in order to have independent discussions with the affected groups. Inan open discussion with the Peoples Committee the same views as above wereexpressed i.e. the project is welcome because of the provision of badly needed jobsin the community as well as improvements in infrastructure such as roads andelectricity supply. There was an issue about compensation for land, crops andtrees. It was felt that the preliminary amount suggested was not sufficient forpeople to purchase equivalent land elsewhere. Apart from this the only issue raisedwas that of dust from trucks passing by during construction and a request to hardsurface the road. This is already planned.

1.68 Discussions were also held with several individuals who live or own land on thesite. These all expressed the view that they were happy with the representation ofthe Peoples Committee and the way they were kept informed of the project, butwere worried about the amount of compensation being talked about for their land,crops and other assets. No firm offers had yet been made. Apart from this theywelcomed the project, particularly as regards the likelihood of providing jobs fortheir children.

1.69 It should be noted that a Rehabilitation Action Plan (RAP) is being finalised byEVN and is being done to World Bank (OD 4.3) criteria and guidelines. Thecriteria for resettlement/compensation is that overall no affected person shouldsuffer in terms of standard of living and must be given full rights to participate inthe RAP process.

Environmental Management and Training

1.70 It is recommended that an environmental unit be set up as part of the managementstructure in the new development at Phumy. The main function of this unit wouldbe the monitoring and control of waste water streams and other emissions from theplant. This function could be combined with the already planned water qualityanalysis programme at little additional expense.

1.71 It is also recommended that as EVN expands its generation programme, anenvironmental co-ordinator be established with the function of developingenvironmental policy, issuing in-house guidelines and establishing compliancewith standards and regulations and setting up an environmental managementsystem.

1.72 It is further recommended that this co-ordinator would also liaise with other groupssuch as a coastal zone management group in order to promote strategies for theprotection and sustainable development of the delicate coastal zone.

EB 72.REP 14

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Environmental Monitoring

1.73 In order to fully control the implementation of the proposed project, it isrecommended that the following monitoring programme be put in place:-

* Monitoring programme of the waste water streams from the new project.

* Extension of the existing air monitoring programme.

* Noise monitoring at the site perimeter.

* Monitoring of waste materials arising on site.

* A review of the baseline ecological study of the Thivai river estuaryparticularly in the area near the power plant site.

1.74 During the construction phase monitoring for dust levels, noise levels, sewageeffluent should be carried out to ensure no nuisance is created.

1.75 Recommendations are made for training programs for management and staff at theproposed plant. Particular attention should be given to staff involved inenvironmental work, to those handling oil and chemicals and those involved inemergency and safety procedures.

EB172.REP 15

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EnvironmentalAssessmentReportfor the Combined Cycle Developmentat Fhumy II, Vietnam

Executive Summary

August 1995

ESB INTERNATIONAL

ESBI ENGINEERING LTDStephen Court, 18/21 St. Stephen's Green. Dublin 2, Ireland,

Telephone: +353-1-703 8000 Fax: +353-1-661 5359Telex: 30598 ESBT El

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Reference: PE61 1-F12-1

Client: Electricity of Vietnam (EVN)

Report No: PE61 1-R2

Report Title: Environmental Assessment Report for theCombined Cycle Development (Phumy II)at Phumy, Vietnam

Executive Summary

Volume 1 of 1

Approved: V eDate: 4 September 1995

ESBI ENGINEERING LIMITEDStephen Court, 18/21 St. Stephen's Green, Dublin 2, Ireland. Telephone: +353-1-7038000 Fax: +353-1Se764400 2, Ireland.Telex: 30691 ESBTEI ESBINTERNATIONAL

QF14-1

EB222.Misc

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EXECUTIVE SUMMARY

CONTENTS

Page No.

Legal, Policy and Administrative Framework I

The Developer 1

IBRD Requirements and Guidelines I

Vietnamese Environmrental Policy and Regulations 2

EIA Review and Approval Process 2

Summary of Main Environmnental Issues 2

Project Description 3

Baseline Data 4

Environmental Impacts 6

Summary of Alternatives 8

Summary of Mitigation Measures 12

Consultation with Affect Groups 13

Environmental Management and Training 14

Environmental Monitoring 15

EBI 71.REP

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EXECUTIVE SUMMARY

Policy, Legal & Administrative Framework

1.1 This environmental impact assessment report (EIA) addresses the impacts of aproject to develop power generating capacity at Phumy in the South of Vietnam.The proposed development will consist of two blocks of combined cycle plant ofapproximately 800 MW total. Each block will likely consist of gas turbines, wasteheat boilers and a steam turbine. This project (Phumy II) is likely to be part fundedby the International Bank for Reconstruction and Development (IBRD).

1.2 A separate power development project (Phumy I) consisting of 600 MW ofconventional thermal plant is also planned for the site at Phumy and an EIA for thisproject has already been prepared. For completeness of information this EIA willaddress the impacts of the complete site development, i.e. Phumy I and Phumy II.

The Developer

1.3 The Developer of the proposed project is Electricity of Vietnam (EVN), a stateowned company which is responsible for supplying power to all of Vietnam.Shortage of adequate base load capacity together with high growth in demand hasled EVN to develop this additional power generation capacity. Natural gas from theoffshore White Tiger gas field will be available to Phumy in 1997 making it an idealsite for development of combined cycle plant.

International Bank for Reconstruction and Development (IBRD) Requirements& Guidelines

1.4 This environmental assessment report is prepared for EVN according to the scopeand format detailed in IBRD's Operational Directive OD 4.01. It is IBRD policythat all major projects shall be subject to an environmental assessment.

1.5 Environmental Guidelines have been issued by the IBRD to cover a wide range ofspecific industries. Each guideline contains emission limits as well as permittedambient levels for all relevant media and likely contaminants. Values are intendedas a guideline and mostly relate emissions to units of production. These guidelinesare addressed where appropriate in assessing the impacts of the proposeddevelopment, and the ones relevant to this proposed project are summarised inAppendix IV. Suitable environmental control technology is also specified in thisdocument. It is IBRD policy that where there exist different limits between itsguidelines and national controls, the stricter of the two shall be applied.

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Vietnamese Environment Policy And Regulations

1.6 A comprehensive environmnental plan was adopted by Vietnam in 1991 called "TheNational Plan for Environmental and Sustainable Development: A Framework forAction". This plan provides the framework for establishing environmental issues.The implementation of this plan rests with the Vietnam State Committee for Scienceand Technology (SCTC).

1.7 Within this context national regulations and guidelines have been adopted givingpermitted levels of contaminants in air, water and soils. These regulations areaddressed where appropriate in this report and the relevant guidelines aresummarised in Appendix IV. Several provincial centres including Ho Chi Minh Cityhave also issued local environmental guidelines.

1.8 This law extends environmental impact assessment requirements to a broad range ofpublic and private sector development activities, proposes procedures for screeningand incorporating of mitigation plans into project design, and explicitly links EIAreview to the project approval process.

1.9 The core agency with environmental mandate is the Ministry for Science,Technology and Environment (MSTE) which was formed in 1992 from the StateCommittee for Science. Within MSTE, the Department of Environment and NaturalResources (DENR) is the environmental arm with the main responsibility forcarrying out these environmental functions.

EIA Review And Approval Process

1.10 Responsibility for project approval, for projects such as the current one underVietnam's investment policy is given to the National Project Evaluation Board(NPEB) under the chairmanship of the State Planning Commission (SPC). As amember of the NPEB, the Ministry for Science Technology and Environment hasthe formal authority to comment on environmental aspects of the project. Thisfunction would normally be carried out by the Department of Environment andNatural Resources and a copy of the EIA has been submitted for their approval.

1.11 At the provincial level Environmental Committees also have formal authority toreview and comment on environmental aspects of investment applications. TheEnvironmental Committee at Vung Tau is the one of most relevance to the presentproposed project and this EIA has been submitted for their approval. A copy hasalso been made available to the public in the municipality of Phumy where theproject is being developed.

1.12 Within the IBRD EIAs are reviewed and assessed within the appropriate divisions.Both the EIA and the EIA summary are made available for public scrutiny.

Summary of Main Environmental Issues

1.13 The proposed development has major environmental benefits in the provision of anextra 800MW of combined cycle plant. Combined cycle plant is the most benign ofthermal power plants with higher efficiencies and lower emissions per unit of

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electricity generated. This extra generation capacity will allow the strengthening ofthe power supply system, the improvement of living standards and the developmentof industry and other economic activities in the region.

1.14 The overall development would directly affect 157 families in the Phumy area. Aseparate Rehabilitation Action Plan (RAP) is being carried out to World Bank (OD

* 4.30) guidelines.

1.15 The use of natural gas as a fuel and the availability of an extensive body of water fordispersing heat will ensure only minor impacts from stack emissions and coolingwater emissions. A variety of mitigating measures will ensure that the impacts ofall other emissions from the proposed plant will not be significant.

1.16 It is recommended that monitoring programmes during the construction andoperating phases be put in place for the successful implementation of the Project.Recommendations are also made for the establishment of an environmental unit atPhumy as well as that of an environmental co-ordinator within EVN as its thermalprogram expands with the function of developing environmental policy andensuring compliance with regulations. This co-ordinator would also liaise withother groups such as a Coastal Zone Management Group in order to promote theprotection and sustainable development of the delicate coastal area. It is alsostressed in the report that oil spills represent a particular hazard and that strictprocedures, must be put in place to minimise this risk.

Project Description

1.17 The project is for the development of 800MW of combined cycle plant at Phumy inthe South of Vietnam. Combined cycle plant consist of gas turbines which generateelectricity directly as well as waste heat boilers which utilise the hot gases exhaustedfrom the gas turbines to raise steam and generate further electricity in the steamturbines. Combined cycle plants have advantages in terms of higher efficiency andlower environmental emissions. Figures 3.1, 3.2, 3.3, 4.2 illustrate the location andlayout of the project.

1.18 The plant will burn natural gas which will be available in mid 1997. At this stagethe only stack emissions of significance would be NOx (oxides of nitrogen) whichwill be maintained below a level of 50 ppm by use of low NOx burners. The firsttwo gas turbines will, however, be commissioned in December 1996 and will burndistillate fuel oil for about 6 months until natural gas is available. During this phaseemission of NOx will be rather high at about 300 ppm as it is not justifiable toinstall NOx reduction measures for such a short period.

1.19 A conventional thermal plant called Phumy I as also planned for the site and willconsist of 3 x 200MW units. Phumy I will also burn natural gas. Residual fuel oilwill be used for emergency standby. For completeness of information this EIAconsiders total emissions from the site, i.e. Phumy I and II.

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1.20 Cooling water for the plants will be taken from the Sao stream at the rate of 60m3 /sand will be discharged to the Thivai estuary. Chlorination of the svstem in order toreduce fouling will be carried out so that the residual chlorine level at the dischargeis <0.02 ppm.

1.21 Waste water streams will include water treatment plant waste, sewage, surfacedrains, boiler washings and other minor sources typical of a power station. Thevwill be treated as appropriate so that the effluents will satisfy IBRD and Vietnameseregulations.

1.22 The plant will require fresh water for boiler make-up and domestic use at amaximum rate of about 2000 m3/day. This will be supplied by wells on site. Gaswill be delivered by pipeline and distillate and heavy fuel oil by tanker. A 4kmpower line will be constructed to join the existing transmission system.

Baseline Data

1.23 The Phumy site is located in a rural area about 70km south east of H-o Chi MinhCity. The population of the small townlet is about 8000 and the main economicactivities are farming and fishing. The average income is low even compared tonearby districts and infrastructure and services such as electrical supply, roads,health services and education are also poor.

1.24 About 157 families in Phumy will be directly affected by the project implementationconsisting of:-

6 families who live on the site (Phumy I).

135 families who own land and farm on the site (47 for Phumy II, 88 forPhumy I).

16 families who will have to be rehoused because the construction of atransmission line (Phumy II).

1.25 A survey of these people showed that in general they welcomed the project as asource of jobs for their children, but were worried about the amount ofcompensation they would receive. A separate Rehabilitation Action Plan (RAP)report is being prepared which will include full details of all these affected people,including land, assets, crops, so that fair and adequate compensation can be agreed.

1.26 Given the rural nature of the site air quality is expected to be good. Limitedmeasurements on the site show that this is so with levels of NO2 of 0 - 0.06 mg/m3

and levels of SO2 of 0.010 - 0.02 mg/m3.

1.27 Noise measurements carried out at 3 locations show levels of about 40 dBA at nightand higher levels at day time, probably due to nearby construction activities for aharbour development. For power station design night time levels are the mostsignificant as the permitted noise levels are lowest during night.

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1.28 The most significant ecological system is that of the mangrove forest and associatedfish, shell fish and other animal species. This appears under threat in this region asit does in many parts of South East Asia due to:-

Excessive siltation and organic pollution

Harvesting for firewood and charcoal manufacture

Operation of shrimp and fish aquaculture enterprises which may involveclearing mangrove areas as well as, depending on the stocking level, waterpollution from biocides and other wastes.

1.29 There is evidence of all the above activities near Phumy; however successfulreplanting of mangroves has also taken place in areas where they were cut down.Development of shrimp aquaculture probably represents the single greatest threat.

1.30 A survey of mangrove trees in the site and nearby study area indicated the presenceof 32 species. The distribution depends on submersion and salinity levels as well asimpacts of artificial replanting. The survey also found the following numbers ofanimal species which are largely associated with the mangrove areas;

* 30 species of birds

* 17 species of manmals

* 8 species of amphibians

* 16 species of reptiles

1.31 The site itself, which is 1 50ha in extent contain, about 20 ha of mangrove area. Therest is mostly cultivated for rice, cashew nut trees, eucalyptus and other crops.Apart from the mangroves there are no significant habitats or wild life areas on thesite or in the surrounding area. A study carried out showed the presence of 201species of plant in the study area of which 101 occurred in the actual site area.

1.32 The Thivai river estuary, which runs by the site, will be utilised to disperse the heatin the cooling water discharged from the plant. It is wide (400m) and deep (15 -30m) with a tidal variation of about 3m and a large tidal flow (10,00m 3/s).Analyses of the water quality of the Thivai estuary indicated the following mainfeatures:-

* High salinity levels, particularly in the dry season.

* Some evidence of oil pollution.

* Organic pollution from domestic sources.

* Moderate levels of dissolved oxygen.

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1.33 Surveys of the aquatic ecosystem of the Thivai river indicate that it is typical of thenearby large area of delta. It is rich in numbers of species but with some evidenceof an impact from organic pollution. The baseline surveys identified the followingnumbers of species:-

72 species of phytoplankton and 31 species of zooplancton.

60 species of fish and 22 species of shellfish.

* 42 species of zoobenthos (near site).

1.34 Fish eggs and larvae are considered particularly sensitive to environmentaldisturbance. A survey of eggs and larvae in the Thivai estuary showed numbers andspecies composition typical of the delta area. The larvae were found to migratefrom surface layer to the bottom depending on the time of day.

Environmental Impacts

1.35 The positive impacts of the proposed project are summarised below. The negativeimpacts are summarised in tables 1, 2, 3, and 4 and described below.

1.36 The proposed project, consisting of combined cycle plant burning natural gas, is themost environmentally benign form of thermal power plant. It has a very highefficiency, close to 50%, and lower air emissions and cooling water requirementsper unit of electricity generated than for conventional plant. In particular, whenburning natural gas with a low NOx burner as is planned for this project, there areno significant emissions of NOx or S02 and emissions of carbon dioxide are 50%lower than for conventional plant burning fuel oil or coal.

1.37 A major and positive impact will be the provision of 800MW generating capacity.This will impact on a regional basis by strengthening the electricity supply networkand allowing the connection of extra consumers and the development of industryand services in the region. The employment of large number of people during theconstruction and operation phase will also benefit the local economy.

1.38 The main groups of people directly affected by the overall development include sixfamnilies, who live on the site, 135 families who own land on the site and 16 familieswho will be displaced from their homes because of power line construction. Aseparate RAP report will be carried out to IBRD guidelines which will detail thecompensation to be awarded to those people for their land, houses, crops and otherassets. The process will ensure that no families will suffer a drop in standard ofliving as a result of the project.

1.39 While some disturbance will be caused to the townlet of Phumy the overall impactshould be positive by the provision of jobs and improvement of infrastructure.

1.40 During the construction phase there will be a permanent loss of 2 ha of mangroveforest due to the construction of a jetty and a loss of about 0.5 ha of mangrove at thecooling water intake. There will be a temporary loss of I ha due to construction ofthe cooling water outlet pipes. As these will be buried the areas can be replanted.

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1.41 Dredging of the Thivai river in order to allow berthing of tankers of 10.000 dwtonnage as well as all the cooling water system construction will cause a local andtemporary loss of benthnic animals as well as disturbance of fish and otherorganisms.

1.42 Impacts of other construction activities such as noise, dust, sewage, after taking intoaccount mitigation measures, will be minor.

1.43 The Phumy I and II Power Stations will burn natural gas and the only stackemission of interest will be NOx. A dispersion analysis was carried out for the caseof plants on full load and showed that the maximum hourly ground levelconcentration of NO, when burning natural gas would be 0.11 mg/m3 while themaximum armual average will be 0.002 mg/m3 . These relatively low values will bewell below IBRD and Vietnamese air quality regulations and will be of minorsignificance to air quality in the area.

1.44 For about six months the first two gas turbines to be commissioned will burndistillate until natural gas reaches the site. The rate of emission of NOx will bequite high at 300 ppm as methods of reducing NOx levels such as water injectionare not considered feasible for this short period. However as they will be on opencycle for this period the high exit temperature will provide good dispersioncharacteristics. A dispersion analysis for this case showed that maximum hourlyground level concentrations of NO2 would be 0.100 mg/im3 This level will notbreak ambient air quality standards nor will it have a significant impact over theshort period involved.

1.45 Specification for the proposed plant will be such that noise levels at the siteperimeter will not exceed permitted levels for residential areas. This will ensurethat no noise nuisance is caused at nearest residences.

1.46 Cooling water discharge will be at a maximum rate of 60m3/s and a temperature riseof 70C. The discharge will be deep into the Thivai estuary which has a large tidalflow of 10,000 m3/sec. A thermal diff-usion study indicates that the physical impactwill be minor with, for the worst case, a thermal plume of 1 C extending across theestuary. Beyond the immediate outfall the maximum temperature rise will be 1.5°C.

1.47 Ecological impacts of the thermal plume are not predicted to be significant.However, because it is a deep discharge some scouring will take place at the outfall.No significant impacts will be caused to aquaculture or commercial fishery on theThivai River.

1.48 Chlorination of the cooling water will take place at a rate that will leave a residuallevel of <0.02 ppm at the outfall. At this concentration the chlorine should not haveany significant impacts beyond the discharge point.

1.49 A large number of organisms including fish eggs and larvae will be entrained by thecooling water system and significant mortality will occur due to pressure,temperature rise and chlorination. This is not predicted to have an overall impact onfish numbers in the area due to the large amount of similar habitat in the region anddue to the snrmall ratio of CW flow to overall tidal flow.

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1.50 Other waste water streamns from the plant include water treatment plant effluent.sewage, surface drains, boiler washes and acid cleans. These will all be treated asappropriate so that the effluents will satisfy Vietnamese regulations and will have noenvironmental impacts on the receiving water.

1.51 Oil spillage into the sensitive mangrove ecosvstem represents a serious menace. Inorder to minimise this risk strict procedures will be implemented for the delivery,unloading, storage and handling of oil as well as an emergency response plan andclean up procedures.

1.52 Dredging will be required occasionally in order to maintain navigable depth at thejetty. This will create a local and temporary disturbance to biota in the area. Thedredged material will be transported for land reclamation to an area not yetdesignated.

Summary of Alternatives

1.53 Alternatives to the proposed project should be seen in the context of a highpredicted growth in electricity demand in the South Vietnam area over the nexttwenty years. This growth is required for economic development and improvementin standard of living. A mixture of thermal and hydroelectric power, which arecomplimentary to each other, is required to satisfy this demand. Alternative designsand sites were considered.

1.54 A natural gas fired combined cycle plant, such as the present design, has thefollowing major advantage over other types of thermal plant which might beconsidered :-

* Lower capital cost* Shorter lead times to power production= Small land area requirements- Higher efficiencies

Lower air emissions per unit of electricity generated* Lower cooling water requirements per unit of electricity generated.

1.55 A number of alternative sites were considered and evaluated on the followingcriteria:-

* Proximity to Bach-Ho - Thu Duc gas pipeline* Distance to transmission lines

Cooling water availabilityEnvironmental and socioeconomic issues

* Site area available* Construction and engineering issues.

The site at Phumy was judged as the optimum available.

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TABLE 1

Summary of Environmental ImpactsDuring Construction Phase

Source Environmental Mitigation Measures Residual ImpactImpact

Site Displacement of Adequate and timely TemporaryAcquisition people living and resettlement and/or disturbance - no

owning land on site compensation reduction inassets or income

Transmission line Displacement of 16 Adequate and timely Temporaryconstruction families resettlement disturbance only

Construction of Loss of 2ha of None Local butJetty Mangrove permanent

Construction of Loss of 1 ha Pipes are buried and area TemporaryC.W. outlet Mangrove will be replanted

Dredging Loss of benthnic None Local andactivities fauna Temporary loss

Sanitation Sewage discharge Effluent will be treated to Minorfacilities Vietnamese standards

Noise Noise during piling Restrict piling to day light Minor andand steam purging hours. Notify residents of temporaryoperations steam blows

Dust Dust generated Spraying of access roads Minorand truck tyres

Construction Traffic Increase Road Improvement MinorWork

Work during Short term Beneficial shortconstruction employment for term

over 1000 workers

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TABLE 2

Summary of Impacts of Atmospheric Emissions for Phumv I and IIWhen Burning Natural Gas

Impact Predicted Vietnamese IBRDl________ Regulations

Nitrogen Oxide (NO2 )

AmbientI1-hour maximum 4g/m3 110 30024-hour maximum ng/mr3

Max. annual average 49g/m3 2 80 100

Sulphur Dioxide (SO2) (a)

Ambient1 -hour maximum jig/M3 0 30024-hour maximum ptg/m3 0 --- 500Max. annual average jIg/rn3 0 80 100

Carbon Dioxide (CO2) (a)

EmissionTonnes/annum (total) 4.7 x 106

Noise (dB (A))

Noise Levels at Boundary fence 55 55 (b)

Residential Area <55 55/60 (b) 55 (b)

Particulates24-hour maximum jig/m3 <1 200 500

(a) 100% load factor

(b) Varies with day / night; indoors and outdoors and other factors

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TABLE 3

Summary of Environmental ImpactsDuring Ojperation of Plant - Aqueous Emissions of Phumy I and II

Source Environmental Mitigation Measures Residual impactImpact

Water Treatment Contains strong Treated in neutralisation NegligiblePlant Waste acids and alkalis tank to pH 6-9.

Effluent will comply withwaste water standards(Ref.8)

Oil Contaminated Adverse impact on All surface drains will be MinorSurface Water marine organisms routed through oil

if discharged interceptors.directly Effluent will comply with

waste water standards(Ref.8)

Sewage High BOD and Sewage will be treated to Minormicro biological <20 mg/l BOD beforepollutants discharge

Boiler Blowdown Contain very low No treatment necessary Negligibleconcentration ofcontaminants

Boiler Acid Utilises toxic These will be treated with MinorClean chemicals. This the waste removed off site

process arises only for disposal. Effluentrarely. discharged will satisfy

waste water regulations(Ref.8)

Chemical Bulk chemicals Stored bulk chemicals will NegligibleSpillage stored on site, in be bunded so that any

particular acid and spillage will be containedalkali and controlled

Boiler Washing If burning residual Metals will be precipitated Minorfuel oil can contain by chemical treatment andvanadium and other removed offsite to land fillmetals

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Table 4

Summary of Impacts of Cooling Water System Operationfor Phumy I and II

Source Environmental Mitigation ResidualImpact Measures Impact

Intake of 60 m3/s Loss of fish eggs None Small in relationand plankton to overall

abundance in thearea

Intake screens Loss of fish Optimum measures Minorthrough not yet selectedimpingement

Discharge of Impact on Discharge designed Minorheated water sensitive so that temperature

organisms rise will not exceed1OC

Chlorination of Impact of Residual chorine NegligibleC. W. system residual chlorine levels will be kept

on ecosystem to < .02ppm

Discharge of CW Scouring of None Permanent butbottom local disturbance

of area

Summary of Mitigation Measures

1.56 In order to reduce environmental impacts from the proposed development mitigationmeasures, summarised below, have already been put in hand or are planned. Apartfrom these, and taking into account the minor residual impacts of the proposeddevelopment, no further mitigation measures are considered necessary.

1.57 About 157 families who own land, houses and other assets in the area will beimpacted directly by the project. A Rehabilitation Action Plan (RAP) process willbe completed to IBRD guidelines to ensure compensation will be given in a fair andtimely way. This will ensure that all the people affected, will, at the end of theprocess, be at least as well off as they were previously.

1.58 Mitigation measures to apply during the construction phase include the following:-

Provision of housing, clean water, sanitation facilities, health services tothe construction workers.

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Sewage treatment.

Dust suppression control

Noise control

1.59 During the operation phase air emissions will be controlled by burning natural gasand installing low NOx burners.

1.60 Noise control will be by housing and acoustic cladding of noisy plant to ensurenoise levels at the site perimeter are within regulations. Other noise reductionmeasures such as tree plantations may be used as appropriate.

1.61 Impacts of the cooling water system will be mitigated by:-

Design of outfall to reduce extent of thermal plumes.

Maintaining residual chlorine levels at less than 0.02 ppm.

Measures to reduce impingement of fish at the intake.

1.62 All other waste water streams will be treated so that effluents will satisfyVietnamese regulations and will not cause any significant impacts.

1.63 In order to avoid risks of ground water pollution or soil contamination all wastematerials that will arise at the site will be monitored as to type and quantity andremoved offsite for disposal or recycling.

Consultation with Affected Groups

1.64 The groups directly affected by the project are:

6 families who live on the project site (Phumy I).

135 other families who own land and other assets on the site (88 forPhurny 1, 47 for Phumy II).

16 families who live in houses along the proposed route of thetransmission line and who will have to move (Phumy II).

1.65 These people are represented by the Peoples Committee of Phumy who also lookafter their interests in relation to compensation and resettlement. The companyresponsible for this project (EVN) have had discussions with the PeoplesCommittee about plans for the project and compensation issues and the PeoplesCommittee have informed the families concerned. A representative of EVN hasalso spoken individually to each of the project affected families.

1.66 As already described in Chapter 4, a survey was carried out of the families affectedby the project by Environmental Protection Centre (EPC), H.C.M City. Thissurvey established details of the area of land owned by each family, the type and

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quantity of crops grown on each property, the annual income as well as the attitudeof the families towards the project and the preferred type of compensation. Noobjection was voiced to the project as long as proper compensation was agreed.

1.67 On July 15th Dr. C. McMahon of the Consultancy Company, ESBI, visited thePhumy area in order to have independent discussions with the affected groups. Inan open discussion with the Peoples Committee the same views as above wereexpressed i.e. the project is welcome because of the provision of badly needed jobsin the community as well as improvements in infrastructure such as roads andelectricity supply. There was an issue about compensation for land, crops andtrees. It was felt that the preliminary amount suggested was not sufficient forpeople to purchase equivalent land elsewhere. Apart from this the only issue raisedwas that of dust from trucks passing by during construction and a request to hardsurface the road. This is already planned.

1.68 Discussions were also held with several individuals who live or own land on thesite. These all expressed the view that they were happy with the representation ofthe Peoples Committee and the way they were kept informed of the project, butwere worried about the amount of compensation being talked about for their land,crops and other assets. No firm offers had yet been made. Apart from this theywelcomed the project, particularly as regards the likelihood of providing jobs fortheir children.

1.69 It should be noted that a Rehabilitation Action Plan (RAP) is being finalised byEVN and is being done to World Bank (OD 4.3) criteria and guidelines. Thecriteria for resettlement/compensation is that overall no affected person shouldsuffer in terms of standard of living and must be given fUll rights to participate inthe RAP process.

Environmental Management and Training

1.70 It is recommended that an environmental unit be set up as part of the managementstructure in the new development at Phumy. The main function of this unit wouldbe the monitoring and control of waste water streams and other emissions from theplant. This function could be combined with the already planned water qualityanalysis programme at little additional expense.

1.71 It is also recommended that as EVN expands its generation programme, anenvironmental co-ordinator be established with the fimction of developingenvironmental policy, issuing in-house guidelines and establishing compliancewith standards and regulations and setting up an environmental managementsystem.

1.72 It is further recommended that this co-ordinator would also liaise with other groupssuch as a coastal zone management group in order to promote strategies for theprotection and sustainable development of the delicate coastal zone.

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Environmental Monitoring

1.73 In order to fully control the implementation of the proposed project, it isrecommended that the following monitoring programme be put in place:-

* Monitoring programme of the waste water streams from the new project.

. Extension of the existing air monitoring progranmme.

* Noise monitoring at the site perimeter.

* Monitoring of waste materials arising on site.

* A review of the baseline ecological study of the Thivai river estuaryparticularly in the area near the power plant site.

1.74 During the construction phase monitoring for dust levels, noise levels, sewageeffluent should be carried out to ensure no nuisance is created.

1.75 Recommendations are made for training programs for management and staff at theproposed plant. Particular attention should be given to staff involved inenvironmental work, to those handling oil and chemicals and those involved inemergency and safety procedures.

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