wb-phu my bot power project-envir ass

- Surveillance and investigation of present environmental conditions water, soil, sediment quality, air quality, noise, biological resource and socio-economy at the project site and in t

PROJECT SUMMARY REPORT

EDFI Consortium Vietnam Association for the Conservation of

EnvironmentPower Engineering and ConsultingCompany No2

APRIL 2001

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

1 LEGAL BACKGROUND AND TECHNICAL DOCUNIENTS UISED IN TllS EIA STUDY

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

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

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

- Collection and evaluation of existing data on the natural environment and socio-economv

of the project area.

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

in the surrounding area

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

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

2 BRIEF PROJECT DESCRIPTION

2.1 The Project Objectives

The main objectives of the project are as follows:

- To provide 715 MW of electrical generating capacity.

- To strengthen the regional power supply system, upgrade the general physical infrastructure, stimulate industrial development, improve the living standard of local residents and associated stakeholders and general enhancement of the other economic sectors in the Southern Economic Focal Zone (SEFZ)

- To efficiently use the indigenous natural gas from the Nam Con Son resource area f()l operation of the plant The Phu My 2-2 project is an integral part of the natural (as consumption chain of projects that enable the development of the Nam Con Son natuLral gas resource area

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

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

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

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

- The project will enhance the capital flow and stimulate additional direct foreign investment into Vietnam As the first successful major infrastructure project in Vietnam

to be structured under BOT commercial terms, legal and commercial precedents set during the development of the Phu My 2-2 project will help Vietnam to attract additional foreign investment.

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

2.2 Project Location

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

- Natural Gas fuel system

- Distillate Oil system.

- Cooling Water pumping station

- Raw water treatment area.

- Water demineralisation plant.

- Waste water treatment area.

- Administration and control building.

- Fire fighting station.

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EDII Consorti um EfA Phu -My 2.2 BOT Power Project

- Warehouse

- Workshop

-Parking area,

2.4 Main Technical Characteristics, Related With Environmental Assessment

* Gas Turbine - Generators

Type PG93 5 1 FA Outdoor

Capacity: 226MW (gas fired)

Exhaust system: 30m high, 6,9m Diameter bypass stacks with

silencers and blanking plates.

Emissions control:

Natural Gas Dry Low NOx (25ppm @15%02) c

Distillate Oil Water injection (58ppm @ 15%02)

Each gas turbine generator shall directly be coupled with the applicable gas turbine It shall be

a horizontal, three phase, synchronous, hydrogen cooled, totally enclosed type machine.

* Steam Turbine - Generators

The steam turbine including dual (2) casings, combined HPIIP and double-flow LP and reheat

is designed to operate in combined-cycle mode with the gas turbine.

Type Axial flow, impulse-reaction

Capacity: 275MW

Exhaust system: Stack height 60 m

Emissions control:

Natural Gas (at CT) Dry Low NOx (25ppm @15%02)

Distillate Oil (at CT) Water injection (58ppm @I15%02)

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

* Ftel Supply

- Natural Gas Fuel

Natural gas for the project will be supplied from the Nam Con Son basin offshore gas fields

by PetroVietnam Petro Vietnam will install and operate a gas pre-treatment facility near the Phu My Power Generation Complex to ensure that the fuel gas supplied meets the agreed physical and composition standards.

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-Distillate Oil (DO)

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

Distillate Oil will be transported to the plant by tanker or barge via local waterways and will

be stored in tanks with a sufficient capacity to meet contractual oblintations The Phu My 2-2 Plant ilff not operate on distillate oil for more than 5 days in any year

* Water Supply

- Fresh Water Supply

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

Potable water systems for the power station site and administration building shall be designed

to support a staff of up to 100 people.

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

- Cooling Water Supply

Cooling water will be taken from the Sao River and discharged to the Thi Vai River, the

design will ensure proper diffusion of warm water and is based on current environmental

regulations Cooling water demand is about 17m3/s.

* Main Project Technical Parameters

-Main Structures and Characteristics

Station type: Combined Cycle

Station capacity; 71 5MW

Stack height: 60 m (Nlain stacks)

30 m (By-pass stacks) Elevation of the project site: 4.0 meters above mean sea level

NO,, emission control DIy Low NO, combustion in gas mode

operation Water injection in DO mode operation Cooling water system: Once through using brackish river water

Road to be widened and improved about 1.8 km from National Road N51 to the

plant

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

Oil storage area: Permeability and run off is controlled by

earth-supported walls sealed with concrete groutSolid waste disposal area: Off-site location to be identified

Schedule Milestones and Duration

Duration of active on-site construction: 24 months from the contractual

Financial Closin;, assumingpreliminary activities to be carriedout in advance of the Financial

Closing.

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

Contract Labour force:

- During the construction phase about 1000 persons (peak-)

- During the operation phase about 45 persons (average)

3.1 Physical Environment

* Topography

The town of Phu My (formerly Phu My commune) of Tan Thanh district (Ba Ria-Vung Tau

province) is located in a flat area with an altitude sloping from the East (near the foot of Thi

Vai Mountain) 50-60m to the West (the riverside of the Thi Vai River) Although Thi VaiMountain is about 470 m high, it does not obstruct or impact the dispersion of the flue gasfrom the power plant because it is approximately 5 km from the project site and occupies avery small area

* Climate

- Ba Ria-Vung Tau province has a relatively high and generally stable atmospherictemperature range The average annual temperature varies between 24 80C (January) and29.10C (May) In the hottest months (April, May), the monthly average temperature is about

290C and in the coldest month (December in mainland, January offshore) the monithly averagetemperature is about 25"C The annual amplitude of temperature is narrow, about 3"C' - 4' C asfor both the sea and mainland

- Atmospheric pressure is relatively consistent throughout the year The average barometricpressure is between 1008 and 1012 mbar in the dry season and between 1008 and 1010 mbar

in the rainy season The maximum can reach 1016 mbar and the minimum 1003 mbar

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EDFI Consortiium EIA Ph-A-Mv 2.2 BOTPower Project

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

- The evaporation rate in Ba Ria-Vung Tau can be the highest in Vietnam This is anindication that the area is rich in radiant heat, energy and wind The highest evaporation (140

- 160 mm) occurs in March, and the lowest (49 - 62 mm) in September The annual total of

evaporation pan rate is over 1,100 mm.

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

- The project site is influenced by two types of monsoon

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

-The East, East - Northeast wind primarily appears during the period from November to April

w ith an average speed of 2.4- 4.7 m/s

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

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

* Hydrology

-The Sao River

The Sao River including the Muong stream runs across the project site The Sao River

originates from Trinh Mountain at the Northeast of the project site It runs across National

Road 5 1 at the Ngoc Ha Bridge then joins the Thi Vai River, Northeast of the site The Sao River provides the Phu My Power Generation Complex with cooling water

- The Thi Vai River

The Thi Vai River is the domestic waterway that will be utilised for transportation of liquid fuel to the Phu My Power Generation Complex It also receives the heated water from the cooling system of the plants With a length of about 40 km, the River originates from Long Thanh (Dong Nai province), running across districts of Tan Thanh and Chau Thanh of Ba Ria

- Vung Tau province and discharges water into the East Sea through the Ganh Rai gulf In its

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EDFI Consortium EJA Phu-Mv 2.2 BOT Power Project

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

The river basin is small and its length is short The width of the river reaches 700 to 800m at

the estuary The riverbed is deep with a U-shape cross-section The depth of the river nearthe power plant complex is approximately 10 - 15 meters The hydrological regime of the ThiVai River significantly depends on a semi-diurnal tidal regime

Water Quality

Water salinity is moderate and the flow is considered brackish with a TDS of 4000-12000mg/L and significant seasonal turbidity The river is significantly contaminated by organicmatter, particularly in the regions located near the districts of Long Thanh, Nhon Trach (DongNai province) and Phu My town where Biologic Oxygen Demand (BOD2 0) varies in the range

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

* Bottom Sediment

Contents of Pb, Cr and Hg in the bottom mud at Phu My are significant However, compared

to the US EPA Guideline for Dredged Material Use and Disposal, they are still low Sediment

in the Thi Vai River is not polluted by organochloride pesticides

* Air Quality

- Dust Pollution

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

EDFI Consortium EMI Mh-A'iv 2.2 BOT Power Project

- THC Pollution

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

- Noise Pollution

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

3.2 Present Biological Environment

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

* Vegetation

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

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

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

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

- Amphibian and Reptile

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

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

* Aquatic Ecosystem of the Thi Vai and Sao Rivers

-Phytoplankton

Ninety phytoplankton species were identified in the Dry Season 2000 The quantity ofphytoplankton is very high in the main flow and tributaries (Sao River), from 153,000,000 to684,450,000 cells/m3 Oscillatoria geitleriana is absolutely dominant in the whole system Thequantity of phytoplankton is increased from the estuary to the middle of the River section(Phu My port, Go Dau port, Muong canal) and reduced in the upstream

- Zooplankton

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

Within the range from 7,000 to 115,300 individuals/m3, quantities of zooplanktorn sarvconsiderably from a sampling point to another It is low in the estuary and it is increased fromnPhu My port to the gate of the Sao River, then decreased in Go Dau port and again increased

in Long Tho

- Zoobenthos

In December 1999, 32 species were identified

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

-Fish Species Composition

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

3.3 The Present Socio-Economic Conditions at the Project Area

* General Information About Phu My Town

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

Phu My commune was upgraded to be a town in August 1994 It is the administrative center

of Tan Thanh district Its area is of 3,173 ha and the population in 1999 was 10,020 (It was8,651 in 1998)

The main occupations of local inhabitants include farming, husbandry, aquaculture, fishing,salt making, and forestry A minor part of local inhabitants earns their living by trading,providing services and creating handicrafts In the recent past, economic growth of the townhas been high The total production of the town increased by 305% from VND 12.73 billion in

1995 to VND51.6 billion in 1999, marking a year-to-year average grovth rate of 46.8%

* Agriculture of Phu My Town

Area of agricultural land is 1,791.2 ha, perennial crops occupy 1,065 4 ha, aquaculture 493.2

ha, rice only 117.9 ha (1999)

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

* Fishery of Phu My Town

- Aquaculture

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

is 493.2 ha

-Fishing output

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

* Handicraft Production

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

* Education

In recent years, the number of pupils has increased at an average rate of 5% per annum One

hundred per cent of 6-year-old children go to school 100% and 83% of pupils pass the

graduation exam of primary school and secondary school, respectively

* Archaeology

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

* Reactions of Local Households to Industrial Projects

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

4 ASSESSMENT OF THE POTENTIAL ENVIRONMIENTAL INIPACTS OF

THE PHU MY 2.2

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

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