EXECUTIVE SUMMARY

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					EXECUTIVE SUMMARY

1.0    INTRODUCTION

Lahad Datu Energy Sdn Bhd (LDESB) is planning to construct and operate a coal-fired power
plant in Felda Sahabat, Sabah. The power plant, with a capacity of 4 x 75MW will operate as a
base-load plant and the electricity produced will be purchased by Sabah Electricity Sdn. Bhd.
(SESB) under Power Purchase Agreement (PPA) for a duration of 25 years. This proposed power
plant will generate electricity to meet increased demand particularly in the East Coast of Sabah. In
addition, it is also intended to keep generating cost at reasonable level, increase grid stability, sustain
supply and demand situation in East Coast of Sabah.

The proposed project is expected to be completed by the first quarter 2014.



2.0    LEGAL REQUIREMENT

The proposed project consists of components which are prescribed activities as stipulated in the
Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 1987
(herein after referred to as the EIA Order) made under Section 34A of the Environmental Quality
Act 1974 (Act 127). The prescribed activities as in the EIA Order relevant to the proposed project
are:

         Schedule 13 (a): Construction of steam generated power stations burning fossil fuels and
                          having capacity of more than 10 megawatts.
         Schedule 10 (a): Construction of ports.

In compliance with the above requirements, a report on the impacts of the proposed project on the
environment and recommendations to mitigate the impacts is to be prepared for the approval of the
Department of Environment.



3.0    STATEMENT OF NEED

The increase of economic activities in the state has lead to the increase demand of infrastructure
facilities such as electricity. Frequent power disruptions especially in the east coast of Sabah have



UKM Pakarunding Sdn. Bhd. (561663-U)                                                                Exe - 1
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                               Executive Summary


greatly affected the business communities and have caused inconvenience to consumers. In view of
the increasing demand for electricity in the east coast of Sabah, a base-load power plant is critically
needed. The proposed 300 MW Coal-fired IPP in Felda Sahabat will provide a continuous and
reliable supply of electricity in the East Coast region of Sabah thus less susceptible to failure risk of
long transmission line from the West Coast power plants.

There are essentially seven major justifications for additional electricity generation capacity in the
east cost of Sabah. These are:

      1. To support the national 5-fuel energy policy, ensure sufficiency, diversification, security,
         reliability, quality and cost effectiveness of energy supply.
      2. To meet increased electricity demand and sufficient reserve capacity in the East Coast of
         Sabah.
      3. To keep generating cost at reasonable level.
      4. To replace aging, unreliable and uneconomical diesel power plants in Eastern Sabah.
      5. To increase grid stability in the East Coast of Sabah.
      6. To sustain supply and demand situation in East Coast of Sabah.
      7. To provide reliable power supply to East Coast of Sabah.

In line with the National Energy Policy, fuel diversification is required to ensure security of supply.
This coal-fired power plant will contribute to this fuel diversification strategy to reduce over
dependence on oil and gas. Oil and gas currently account for 77.7 per cent of total fuel for
electricity generation.



4.0     PROJECT DESCRIPTION

4.1       Project Location

The proposed project will be sited on an existing agricultural land in FELDA Sahabat, Lahad Datu,
Sabah. Figure E4.1 shows the location of the proposed 300 MW Coal-fired Power Plant. The
coordinates of the proposed project site are N 5°05'29"E 119°05'45" and N 5°05'08"E 119°06'13"
respectively. The project area is located about 80 km away from Lahad Datu town.

4.2     Project Components

The proposed power plant will have four (4) coal-fired units, each having a net electrical output of
75 MW. The conceptual cross section of the proposed power plant is shown Figure E4.2. The
design lifetime of the Plant shall be more than 25 years of operation. The main fuel will be sub-
bituminous coal coming from Kalimantan, Indonesia. The coal will be imported by sea-going
vessels and unloaded at a dedicated jetty protruding from the project site. Distillate Fuel will be used
for starting-up and will be brought in by road tankers.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                              Exe - 2
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                                             Executive Summary




                                                                         Proposed
                                                                        Project Site




                                                 Figure E4.1: Location of the Proposed Project




UKM Pakarunding Sdn. Bhd. (561663-U)                                                                        Exe - 3
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                                                               Executive Summary




                                    Turbine                                                  Boiler
                                  /Generator
                                                                                                      Chimney


                                                                                                       ESP

                                                                                                             FGD




                                                 Figure E4.2: Cross Section of Power Plant




UKM Pakarunding Sdn. Bhd. (561663-U)                                                                                          Exe - 4
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                            Executive Summary


The proposed power plant will use the most widely used method of burning coal to generate steam
and consequently electrical power, i.e. Pulverised Fuel Combustion (PFC). Electrostatic
precipitators (ESP) and flue gas desulphurization (FGD) using seawater will be installed to control
atmospheric emissions so as not to pollute the air.

It is expected that most of the fly ash, and some of the bottom ash produced will be sold to local
cement manufactures for construction material. The ash which is not sold shall be disposed off in a
designated ash yard.

The main equipment in the power plant includes:
          Coal handling system;
          4 boilers;
          4 steam turbines;
          4 generators;
          Other associated auxiliaries.

The auxiliaries consist of:
          Seawater cooling system with water intake and discharge structures
          Electro-chlorination plant
          Raw water treatment facility
          Waste water treatment plant
          Flue gas desulphurisation plant
          Switchyard

A coal unloading jetty will be constructed to handle sea barges with capacity between 8,000 to 10,000
dwt with the following specifications:
          Access length: 650 m (for 8 m design depth/draught)
          Access width: 11 m (jetty access: 7 m, conveyer belt: 4 m)
          Handling platform: 151 m x 22 m



5.0        PROJECT OPTION

5.1       No Project Option

By not developing the proposed project, the economic development of the east coast of Sabah will
be hampered because of power supply problem. Without the project, the economic potential for the
eastern corridor including Sandakan, Lahad Datu and Tawau could not be fully exploited.

In 2008, the reliability of electricity supply in Sabah was seriously undermined due to a power
interruption of about 460MW to almost 90% of the main town in the West Coast and East Coast of
Sabah, with the exception of W.P. Labuan, Beaufort, Keningau, Tambunan, Tenom, Telupid and
Ranau.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                          Exe - 5
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary


An investigation by the Energy Commission on the power interruption revealed that inadequate
generation capacity had caused the system to be unable to withstand the disturbance and hence
partially collapsed. The incident impacted significantly on the performance of the Sabah
transmission system and has confirmed the urgent need of a base load power plant to increase the
power generation capacity and stability on the East Coast of Sabah. The problem will persist if new
power generation project is not implemented.

5.2       Site Option

The Federal and State Governments had decided to establish the proposed power plant at the east
coast of Sabah, mainly to balance and stabilize the power generation grid network and thus ensuring
uninterrupted power distribution to the eastern part of Sabah. In 2006, SESB issued a Request for
Proposal for a coal-fired power plant which identified Silam, Lahad Datu as the proposed site. The
project was awarded to the Proponent in 2007 through open tender. DEIA was carried out and
submitted to DOE Putrajaya (and distributed to all relevant Sabah State Agencies) in March 2008.

In April 2008, the Sabah State Government instructed the Proponent to look for an alternative site.
Subsequently, the Proponent and SESB embarked on an extensive survey for new sites. The
following criteria were used for the site selection:

      •       Close proximity to load centre
      •       Access to deep water for ease of coal transportation
      •       Sufficient supply of seawater for plant cooling and desulphurization plant systems
      •       Availability of town water supply
      •       Access to nearby public road
      •       Shortest transmission route
      •       Away from environmentally sensitive areas
      •       Minimum relocation of inhabitants
      •       Compatibility with industrial land use zoning
      •       Land terrain type with minimum earthworks

Based on the above criteria, a series of surveys were conducted at several potential sites along the
east coast of Sabah from Tawau to Sandakan namely POIC Sandakan, Gum Gum, Batu Sapi,
Bagahak, FELDA Sahabat, Merotai, Batu Payung, Pulau Sebatik, Serudong and POIC Lahad Datu.

POIC Sandakan was then identified as the alternative site and the Proponent proceeded to carry out
a new DEIA study. In March 2009, the Sabah State Government again instructed the Proponent to
look for a different site.

In September 2009, the Federal Government decided to proceed with the project to be located at
Dent Peninsular, Lahad Datu in order to address the State power supply shortage problem.
Subsequently the FELDA authorities agreed to situate the coal-fired power plant at FELDA Sahabat
16.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                               Exe - 6
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                               Executive Summary


5.3   Fuel Option

The National Fuel Policy aims to diversify the fuel mix for electricity generation in order to reduce
high dependency on oil and natural gas. The use of coal to generate electricity is one of strategies to
achieve the diversification goal.

Coal is plentiful around the world and its price is relatively stable. Technologies are also available to
generate electricity from coal with acceptable environmental impacts.

Other power generating options that could be considered are diesel, gas, hydro, nuclear, solar, wind,
geothermal, wave and biomass. Some of these options have less environmental impact such as gas,
wind, solar, geothermal and wave. However, most of them are not feasible for the purpose of
generating 300 MW of base load electricity for the east coast of Sabah.

5.4     Emissions Control Options

There are several emission control technologies that can be adopted for the power plant. Among
these options, proven technologies/equipments are selected to meet the emission standards.

(a)     Particulate

Mitigation measures for the dispersion of particulate from the pulverized boiler include the ‘state of
the art' electrostatic precipitator (ESP) with effective cleaning capability. The advantages of ESP
against other particulate removal technologies are its cost effectiveness and high availability.

(b)     SOx Reduction

There are various types of Flue Gas Desulphurization (FGD) for SOx removal. Amongst all,
seawater scrubber type FGD system offers a better option due to its simple design and high
efficiency of SO2 removal. It is the most reliable available process, low operation cost, no bulk
chemical requirements and no formation of solids.

(c)     NOx Reduction

Low NOx burners are used to limit the Nitric Oxide (NO) and Nitrogen Dioxide (NO 2) to be
within acceptable levels. The type of burner is of a proven design and has been used in major coal-
fired power plant throughout the world.

(d)     COx Reduction

Carbon dioxide (CO2) is the main part of flue gases. CO2 is an inevitability of any type of
combustion and can only be reduced through improved power station efficiency. CO emission is
due to incomplete combustion. The CO concentration is normally low in pulverized fuel
combustion as compared to other type of coal combustion techniques.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                              Exe - 7
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary


6.0   EXISTING ENVIRONMENT, POTENTIAL IMPACTS AND MITIGATION
      MEASURES

6.1     Landuse

In general, the proposed project site is flat and identified as sandy low land. The surrounding area is
undulating with the highest point is 167 m above mean sea level, located in the middle part of
FELDA Sahabat. The nearest river system is Sg. Merah, to the east of the proposed project site. Oil
palm plantation dominates the landuse of the surrounding area. The nearest residential area is a
traditional village, known as Kg. Sinakut. Further away, 10 traditional villages and three FELDA
residential areas (Bandar Sahabat, Embara Budi and Baiduri Ayu) can be found within 20 km radius
from the proposed project site. The nearest towns are Bandar Sahabat (3 km from the proposed
project) and Bandar Cenderawasih, located 13 km away to the north of the proposed project.
Access to the proposed project site from Bandar Sahabat comprises a narrow paved road and
followed by a stretch of dirt and gravel road within the oil palm plantation and grasses-bushes.

The Sabah Development Corridor (SDC) blueprint designates a wildlife sanctuary that includes
Tabin Wildlife Reserve (20km away) to the north of the POIC Lahad Datu, while to the west one
finds the Sabah Biodiversity Conservation Zone (Danum Valley – approximately 160km away). The
SDC for the Eastern Sub-Region also identifies the coastal area and part of the Celebes Sea as the
Marine Industry and Tourism Zone. Within this zone, one finds Darvel Bay (approximately 100km
away), Tun Sakaran Marine Park (approximately 70km away) and Sipadan Island (approximately
110km away). At Tun Sakaran Marine Park, there are diving spots (Pandanan Island, Mataking
Island, Mabul Island and Kapalai Island). The proposed project is located relatively far away from
the Marine Industry and Tourism Zone. Due to the significant distances of the proposed project
site from these locations, no landuse compatibility issue is expected.



6.2     Geology and Soil

The study area is covered by sedimentary rocks which can be divided into two main groups which
are Segama Group and Dent Group. The Segama Group is characterised by abundant of pyroclastic
rocks, most of which were deposited under marine environment, and interpreted to be of Miocene
age. The Dent Group is represented by Sebahat and Ganduman Formation. The Dent and Segama
Formation form a lowland topography of the study area which elevates less than 100 m above sea
level. The Tungku Formation of the Segama Group aged late Miocene to Early Pliocene.

Soil subsidence of the proposed project site is not expected due to its already stable and compact
foundation. The study area is far from the Lahad Datu Faults which was mentioned by Felix
Tongkul, therefore are quite safe in term of earthquake tremors effect. Soil of the project site has
developed from elevated sandy beaches which are commonly found along the beach of Dent
Peninsular. These soils are composed of beach sands of largely quartz in composition.

Within the proposed power plant site, the predicted erosion rate is estimated to range from 5.37 to
29.00 ton/ha/yr. The soil loss per hectare per year in the project site is considered low.

Based on the erosion rate and the amount of rainfall and hydraulic conductivity of the sandy soil, a
sedimentation pond of 12m x 10m x 1m in size is required for 2 hour retention time (HRT). The
capacity of the sedimentation pond will allow sufficient time for sediment to settle and prevent
direct discharge into the sea. The sedimentation pond along with drainage system must be
constructed before construction work begins.


UKM Pakarunding Sdn. Bhd. (561663-U)                                                            Exe - 8
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary



6.3     Climate

The project area experiences equatorial climate characterised by warm and humid weather all year
round. The climate is also characterised by two inter-monsoons, the Northeast and the Southwest
Monsoons. Sunshine of the Lahad Datu region shows no variation between years but shows
variation between months. Temperatures as well as relative humidity are fairly constant. Mean
monthly rainfall varies between 100.5 mm (July) to 293.4 mm (January) with minimum rainfall
occurred during the month of October (42.4 mm). From the annual wind rose summary statistics, it
can be seen that velocities of less than 10 m/s occupy about 80% of the observation period with
13.2 % of calm period. The period of calm for different months and monsoons are almost constant
with the percentage of calm period ranging from 7.5% (November) to 15.3% (November to March).

6.4     Surface Water Hydrology

River System

The area surrounding the proposed project site are drained by two main river systems, namely Sg
Sahabat and Sg Merah which are 8km and 5km away from the proposed project site respectively.
There are also several artificial streams that are part of the drainage and irrigation schemes developed
by FELDA Plantations Sdn Bhd. Most of the streams are shallow (below 1 m). Based on the
survey, it is confirmed that the two streams located within the project site are not part of the river
tributaries of Sg Sahabat neither Sg Merah. The streams were constructed as part of the subsidiary
and collection drains used to maintain water at appropriate level. The drain is connected to
collection and subsidiary drains for efficient water management. The streams were normally used for
flushing out water from collection drain when the water level exceeds 45 cm from the surface.

Flood Scenario

There is no flood record in the study area compiled by the Drainage and Irrigation Department.
This study relies on interviews with locals and visual observation to identify the signs of flooding.
No flooding incidents were reported at the proposed project site. No flood water marks are found
along the subsidiary, main and outlet drains except some minor spill marks closed to culvert point,
mainly due to scouring and impact from water turbulence.

During construction of the proposed power plant, site clearing will cause surface erosion and
sedimentation may increase and block the river flow. Erosion and sediment control plan must be
prepared and approved by the relevant authority before construction commences. The plan must
clearly show the locations and specification of drains and sediment traps in order to control
sedimentation into nearby streams. The drains and sediment traps must be of sufficient capacity and
be installed before construction begins. Regular maintenance of the drains and silt traps is required
within the proposed project site. Existing nearby streams must be inspected and, if required,
maintained to clear accumulated silt. Exposed ground should be tuft to minimise surface erosion.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                             Exe - 9
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary


6.5     Water Quality

Results of analyses of sea water samples show that the existing marine water quality along the coast
of the proposed project area still in good condition with no serious pollution. Most of the measured
parameters such as dissolved oxygen, suspended solids, oil and grease, organic content, nutrient and
coliform and heavy metals are found to be within the permissible limits as set by the Malaysia
Interim Marine Water Quality Standards (MIMWQS).

Transportation via marine vessels will generate waste oils and bilge water. If not properly managed
and disposed, these will lead to pollution of marine waters. Piling and trenching activities will
increase the turbidity in the construction and adjacent area. According to the hydraulic modelling
results, the suspended sediment concentrations in excess of 50mg/l in the worst case scenario
(during the North East Monsoon) are limited to only within about 150m from the piling and
trenching sites (on both sides).

During the plant testing and commissioning phase, water will be used to test the mechanical integrity
of pipelines and pressure vessels and to ensure that there will be no leak at all joints. The water used
will be flushed out after completion of the test. The improper disposal of the flushed water will
pollute the surface and marine water. However, since the project proponent will be directing the
wastewater into the effluent treatment plant, the effect to the marine water will not be significant.
There could be some scheduled wastes produced. The scheduled wastes could be waste lubrication
oils, hydraulic oils, etc. from mechanical moving parts such as turbines, pumps and blowers.

During operation phase, the cooling water with temperature above ambient will be discharged from
the plant, into the sea via an underwater pipeline. A surface temperature increase of 4°C and above
is expected to occur in an area near the coast about 2.5km in length to the North and 1.5km to the
South under the worst case scenario (NE monsoon). The average width of the strip is about 250m,
thus covering an area of about 1km2 during plant operation. Below the surface, the maximum
excess temperature is significantly lower and covers a much smaller area. Sodium hypochlorite will
be injected into the intake cooling water system to inhibit barnacles and algal growth. Results of the
chlorine dispersion modeling show that the extent of the dispersion for chlorine concentration
greater than 0.3mg/l is only confined to a small area at the discharged point. Even under the worst
case scenario (Pure Tide), the size of the area with concentration greater than 0.3mg/l is only about
0.1km2.

Industrial wastewater consists of equipment process water, area washdown water (both boiler and
turbine building sources), component and equipment washdown water, boiler blowdown, coal yard
runoff, excess water from ash yard, effluent from oily-water separator, and contaminated rainwater
runoff. The effluent treatment plant (ETP) will be built to receive all the liquid wastes from various
sources.

Ash from coal combustion is deposited in an ash yard. Based on the coal consumption of 700,000
tonnes per year, the maximum total ash generation in the power plant is estimated at 49,000 tonnes
per year. The ash yard will be lined with an impermeable membrane to prevent leachate polluting
the groundwater.

Bilge water has to be pumped into containers to be sent for treatment. Cleaning of bilge water may
be via the conventional physicochemical method, which generate chemical sludges and bears
chemical costs, or the increasingly appealing "passive" methods such as bioremediation.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                            Exe - 10
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                             Executive Summary


Turbidity around the construction site should be controlled by erecting double-layered silt curtain to
completely and securely enclose the construction area in order to minimize the impact on water
quality. The enclosure can be done in stages from one work area to another and not the entire
length of the jetty and pipe trench.

The project proponent must ensure that all the flushed water used for pressure testing during testing
and commissioning phase go to effluent treatment plant. Water contaminated with oil and grease
should be treated as scheduled waste and disposed in an approved manner as stipulated in the
EQ(SW)R 2005. All environmental control equipment must be tested and functional prior to
commissioning of the boiler.

The plant must be regularly maintained and closely monitored, so that the discharged cooling water
temperature will always remain within the limits specified. Residual chlorine should be ensured to be
at low concentrations by controlling sodium hypochlorite dosing such that the level at the outfall
should never exceed 0.5 mg/l using a control system within the Electro Chlorination Plant (ECP).

Regular monitoring of the ETP condition is necessary to optimize its performance and minimize
operating costs. Monitoring has to be carried out at the frequency stipulated by the DOE and with
analysis for all the parameters as per Standard B, Third Schedule, Environmental Quality (Industrial
Effluents) Regulation 2009, or the EQ(IE)R 2009, which is the applicable emission limit. For the
proposed project, all treated effluents from the ETP will be retained in a water storage pond (WSP)
for reuse and the plant will have zero discharge.

Design of the ash yard will incorporate a basin made of impermeable membrane that will prevent
any leachate from going into the groundwater. Regular sampling of groundwater near the ash yard
should be conducted. Regular checks water quality from monitoring wells would indicate if there is
any leakage of the membrane.

6.6     Waste Management

During construction there will be quite a large number of workers, estimated to be a total of about
2,000 heads, for a period of about 24 months. Therefore there will be solid wastes generated by the
workers, estimated to be at about 2,000 kg/day. Improper management of these wastes will lead to
odour, flies and pollution of the marine waters, with risks to aquatic life. Littering and improper
management of solid wastes on land may lead to the wastes being swept to the drain and thus the sea
during heavy rains. Large volume of construction wastes comprising wood wastes, chemicals and
their containers, metal and plastic wastes, waste oils, etc, will also be generated.

In the proposed project scheduled wastes could be waste lubrication oils, hydraulic oils, etc. from
mechanical moving parts such as turbines, pumps and blowers. Improper management and storage
of scheduled wastes could lead to spillages and even illegal disposal.

During operation there will be generation of solid wastes from the power plant. Improper
management of garbage or MSW will lead to littering, odour, flies and pollution of surrounding
water bodies.

Facilities provided during construction should include sufficient number of garbage bins. Regular
garbage collection should be carried out by the contractor or its agents and the collected garbage
should be properly transported in garbage trucks to prevent spillage of garbage and leachate.
Garbage should be disposed at an approved facility or sanitary landfill site for the town.



UKM Pakarunding Sdn. Bhd. (561663-U)                                                          Exe - 11
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                             Executive Summary


As much of the waste resources should be recovered as possible, whether for reuse, such as wood
wastes, or for sale, such as metal parts, plastic containers, etc. Designated collection bins or areas
for different wastes to be recycled or reused should be provided so that while the construction is on-
going, workers may segregate wastes by depositing them into designated collection bins or areas. The
collected wastes should then be collected by or sent to recyclers.

The project proponent must adhere to procedures legally binding on scheduled waste generators as
in the EQ(SW)R 2005. Scheduled wastes have to be disposed to an Integrated Scheduled Waste
Management Centre such as at Mambong, Sarawak. Proper reuse of the waste should be sought to
avoid costly storage and transport.

Enough number of garbage bins should be provided for them to be within convenient reach and
thus used. The garbage should be regularly collected and disposed at an approved site.

6.7     Sewage and Sullage

During construction there will be quite a large number of workers, estimated to be a total of about
2,000 heads, for a period of about 24 month. Therefore there will be sewage and sullage generated
by the workers, estimated to be at about 400 m3/day. Improper management of sewage and sullage
will lead to odour, breeding of mosquitoes and flies, and water pollution.

During operation, the total number of heads is about 250, generating about 50 m3/day of sanitary
wastewater. If the STP is not properly operated and maintained, the effluent would pollute the
receiving water body. Improper management of sewage and sullage will lead to odour, flies and
pollution of waters close to the proposed project.

The sewage treatment plant (STP) should be ready before construction starts so that sewage and
sullage from workers may be treated in the facility. Regular sewage collection should be carried out
by the contractor or its agent and the collected sewage should be disposed at an approved facility or
properly operating STP with capacity to accommodate the added load. Regular monitoring of the
STP condition is necessary to optimize its performance and minimize operating costs.

6.8     Noise and Vibration

The existing noise levels LAeq measured at PGA Kg. Sinakut and PGA Kg. Sg. Merah were higher
than the permissible day time noise level of 55dBA for residential area due to windy condition and
human activities. Meanwhile the measured LAeq noise levels at Sek. Men. Keb. Desa Kenchana was
higher than the permissible day time noise level of 50dBA for noise sensitive areas because of traffic
and human activities.

The measured LAeq noise levels for night time for all monitoring stations were higher than the
permissible night time LAeq noise level of 45dBA (for residential area) and 40dBA (for noise sensitive
areas). The high noise level is contributed mainly by traffic and insects.

Typical operation of the proposed plant will increase environmental noise levels in surrounding
areas. However, noise impact is dependent on how close the location of a residential area or a noise
sensitive area from the plant. The existence of a 0.5 km buffer zone for heavy industry may provide
significant attenuation to the noise level should the noise level at the plant boundary be maintained
at 70 dBA and 60 dBA for day and night, respectively, for a designated industrial zone as stipulated
in the Planning Guidelines for Environmental Noise Levels and Control (2007).



UKM Pakarunding Sdn. Bhd. (561663-U)                                                          Exe - 12
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                               Executive Summary



Only two locations will be affected significantly by the proposed power plant, namely NS1 (located
inside the plant area) and NS2 (located just outside Buffer Zone). For the nearest residents at Kg.
Sinakut which is located around 500 m from the plant property boundary, the noise increment from
the existing background level to be experienced by the residents is predicted around 1.5-2.5 dBA.
However, the day noise level is close to the limit set by the guideline for mixed development areas
(residential-commercial) while the night noise level is higher from that of the guideline due to high
existing background noise.

The equipment and machinery that are expected to be the major contributors for vibration impact of
the power plant are boiler units, compressors, fans, pumps, and turbine units. However, the
vibration impact during operation of the power plant is expected to be minimal because all rotating
and vibrating equipment in the plant will be properly balanced and dampened in order to ensure an
optimum working condition of the equipment. The vibration limits shall generally comply to ISO
1940-1:2003 for requirement for rotors for mechanical vibration. Any impact of ground vibration to
residents in Kg. Sinakut located about 500 m from the plant boundary is predicted to be minimal.

Appropriate mitigating measures is required to control and reduce the overall noise level emitted by
the proposed power plant. All rotary equipment available in the proposed power plant area must be
fitted with the correct vibration isolators and treated with the proper noise insulators and enclosures.
Noise monitoring program should also be conducted during operational stage of the proposed plant
in order ensure that the noise level emitted by the power plant facilities is within the limits impose by
the Department of Environment (DOE). Project proponent also has to maintain the maximum
noise level of 65dBA during daytime and 60dBA during night time at the proposed power plant
boundary.

6.9     Air Quality

Monitoring results show that the existing ambient air quality at the proposed project site and it’s
surrounding for TSP, gaseous pollutants (CO, SO2, NO2 and O3) and heavy metals in TSP such as
Pb, Cr, Hg and As are within the respective limits stipulated in the Recommended Malaysian Air
Quality Guidelines (RMAQG).

During construction, vehicles and machineries with diesel engines may emit black smoke if the
engine is not properly tuned or has become inefficient. Mud and silt from the tyres of the trucks
and other construction vehicles may be deposited on the main road as they leave the site and the
unpaved access roads. This can form clouds of dust in the air when churned up by passing vehicles
during the dry weather period that could reduce visibility at the main road and can affect the safety
of road users.

During testing and commissioning, there may be air emission exceeding the control limit when the
air pollution control equipment is not fully in operation. Breaching of emission limits are temporary
and are unavoidable in the calibration processes.

During operation, with the proposed air pollution control equipment to be installed, the predicted
maximum ground level concentration for all air pollutants (SO2, NO2, TSP and Mercury) are below
the ambient air quality standards. The actual values may still be lower as the prediction is based on
the maximum emission limit during normal operation. The maximum SO2 and NO2 concentration
under normal operation are well below the EU limits for the protection of ecosystem (Council of the
European Union (EU) Directive 2008/50/EC and Council Directive 1999/30/EC of 22 April
1999). The limits are 30 µg/Nm3 for SO2 and 20 µg/Nm3 for NO2. If the air pollution control
equipment fail, the plant must be safely brought to a lower operating output until it does not emit


UKM Pakarunding Sdn. Bhd. (561663-U)                                                             Exe - 13
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary


pollutants to the level that will be harmful to the environment. In the worst scenario, the boiler will
be completely shutdown.

Project proponent and the contractor employed in the construction works have to ensure that all
diesel engines used are properly maintained and efficient. The emissions must comply with the
Environmental Quality (Control of Emissions from Diesel Engines) Regulation, 1996.

Access roads should be sprayed lightly with water by means of tanker vehicles. A water trough
should be installed at the exit of the construction site to clean vehicle tyres prior to travelling on
public roads.

The air pollution control equipment should be commissioned prior to testing of the boiler and coal
handling equipment.

The frequency of failure of air pollution control equipments must be minimized by inspection and
maintenance according to their recommended schedules. To check that the air pollution control
equipments are working at their design efficiencies, it is important to install continuous emission
monitoring system (CEMS).

Ambient air quality monitoring within the surrounding area should be carried out to monitor the
actual ambient levels of various pollutants.

6.10    Land Transportation and Traffic

Almost all major towns in Sabah are connected with fairly good federal and state roads. Presently,
the roads leading to the project site are in good condition and are fairly flat, although sometimes
winding. These roads are normally of two-lane (both sides) in nature with lane width ranging from
3.2 to 3.5 m each, paved with asphaltic materials and painted with lane markings.

Sixteen-hour traffic counts were conducted on the 11th to 13th. of October 2009 which represent a
weekend and two weekday’s traffic volumes scenarios at two stations (Bandar Cenderawasih and
junction to Bandar Sahabat). The traffic volumes collected at both stations are generally low. The
highest traffic count in both direction recorded at Station 1 is 838 vehicles (1700 to 1800 hours).
The corresponding figure for Station 2 is only 420 (0800 to 0900 hours). Results of the traffic
analysis also show that both locations are operating at below capacity. Station 1 registers a Level of
Service (LOS) A with no delay and no queue. Station 2 is also in good condition with LOS A;
maximum delay of 10 seconds and maximum queue of 1.9 vehicles.

During construction period, since a dedicated access road will be constructed to the proposed
project site, an increase of construction vehicles flow, especially lorries and trailers entering and
exiting the construction site of the Proposed Project will not cause congestion to the existing road.
However, the junction of the main public roads going to the FELDA Sahabat area and the access
road will be slightly affected by the increased of construction vehicles. Signage to indicate that slow
moving heavy vehicles are travelling on the public roads near the junctions to the constructions site
should be constructed. In addition, flagmen with proper personal protective equipment and clothing
should be stationed at the junctions of the project site with the main public roads to warn road users
of approaching heavy vehicles.

6.11    Marine Traffic and Navigational Safety




UKM Pakarunding Sdn. Bhd. (561663-U)                                                           Exe - 14
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                               Executive Summary


The proposed project is adjacent to the coastline about 1.9 nautical miles (3.5 kilometres) eastwards
of the root of the Felda Sahabat Jetty at Bandar Sahabat, Lahad Datu, together with a dedicated
purpose built jetty at which line towed barges carrying coal will be berthed to unload coal which will
be used as fuel for the proposed power station.

The marine part of the proposed project will consist of an 'L' shaped jetty with a single berth of
sufficient size to safely berth one dumb barge carrying coal. The design depth (ACD) of water
required by the barges carrying the coal is expected to be 8 metres, thus they shall be able to enter
and leave from the proposed Coal Unloading Jetty at all states of the tide with a minimum under
keel clearance (UKC) of 1 metre. It is expected that the approach bridge to Coal Unloading Jetty
head may be about 650 metres in length.

Close offshore there is an open expanse of natural deep water. According to British Admiralty Chart
BA1868, the 5 fathom (9.14 metre) contour lies within about 0.5 nautical mile (926 metres) of the
coast.

The only operational marine facility on the coastline, within the study area is the Felda Sahabat Jetty
at Bandar Sahabat jetty which lies about 1.9 nautical miles (3.5 kilometres) westwards. The jetty is
1,250 metres in length but there is no 'T' head. Vessels berth along both sides of the jetty to load
liquid cargoes, such as crude palm oil, crude palm kernel oil, and other palm kernel derivative oils
and dry cargo bulk cargo in the form of palm kernel expeller (PKE). Vessels also unload agricultural
fertilizers. Four vessels can berth at any one time at the Felda Sahabat Jetty. The scheduled arrival,
departure and designation of anchorages for vessels come under the jurisdiction of the Ports and
Harbours Department, Lahad Datu.

There will be no impact on marine traffic congestion or marine safety in the vicinity of the jetty due
to the absence of marine traffic in the area (except for local fishing craft). There may be some
localised impact on fishing activities since they will not be allowed to come close to the jetty area. At
the jetty, there is a chance of spillage of oil, chemicals and other pollutants into the sea caused by
accidents such as collisions or sinkings. Should the tugboats and their towed barges accidentally
transit across, or close to Gazetted Marine Parks, or should they anchor, they may cause damage to
the coral and harm marine life.

Project proponent must ensure all Rules and Regulations, both local and international appertaining
to the manning, registration, licensing, operation, routing, equipping and management of marine
craft will have to be strictly complied with. All vessel entering and leaving port may need to be
vetted by inspectors from Lahad Datu Ports and Harbours Department and must comply with all
the safety and other requirements of the Ports and Harbours Department, the local Port Authority
and the Marine Department before they proceed to the Coal Unloading Jetty at Felda Sahabat. The
project proponent must also ensure that the extremities of the coal unloading jetty and mooring
dolphins, if any, connected therewith, should be clearly marked with lighted beacons.

Fishermen should be informed that they are not allowed to enter the restricted zone near the jetty to
carry out their fishing activities for the sake of their safety.

To reduce the risk of the spillage of oil, chemicals and other pollutants into the sea, an Oil Spill
Prevention and Response Plan should be formulated.

All Gazetted Marine Parks have exclusion zones and all vessels must not enter such prohibited areas
and every vessel should always give them a wide berth. The routes of the tugboats and their barges




UKM Pakarunding Sdn. Bhd. (561663-U)                                                             Exe - 15
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                            Executive Summary


must ensure that all prohibited areas around Marine parks are given as wide a berth as safely
possible.

6.12    Archaeology

Lahad Datu is one of the earliest Pleistocene hunter-gatherers territories in Sabah. Archaeological
excavation at the site of Gua Samaq Buat showed that the area was occupied back to 28,000 years
ago. Since that, prehistoric inhabitants expand their territorial dietary to the north (Sandakan) and
south (Semporna) of Sabah east coast. During traditional periods in 11th to 16th centuries, the
Chinese traders come to the area to trade with the local tribes. The valuable merchandise was bird
nest, gathered by the Bagahak and Idahan tribes within the area of Lahad Datu. The areas were
dominated and controlled by the Iranun and Tausug warlords for centuries. The most notorious
history about Lahad Datu was pirate and slave trade in the 18th and 19th centuries. This activity was
ended by the British North Borneo Chattered Company at the end of 19th century which caused
revolts among the local warlords especially the Tunku’s Iranun at the east of Lahad Datu.

This study found that there are no archaeological features within the villages’ area except for the
religious features such as suraus, mosques and graveyards. Therefore, the proposed project is not
expected to have any impact on the archaeological aspect of the area.

6.13    Marine Ecology

Generally, coral coverage is very low within the vicinity of the survey area. The nearest identified
sites with corals are located 9.5km away from the proposed project site. Within the 20km vicinity,
there is no large coverage of seagrass and seaweed found on the bottom of the sea. Seaweed line-
farming (on water surface) cover a vast area, and can be found until 15km from the proposed project
site.

A total of 47 phytoplankton species from 4,160 individuals were sampled and identified at five
sampling stations in the study area. The total abundance ranges from 742 individuals to 904
individuals. The number of taxa ranges from 28 species to 36 species. The phytoplankton diversity
is also high. All stations show the same distributional pattern where Bacillariophyta is the most
dominant taxa (>80%), which is typical for tropical coastal marine environment. Other
phytoplankton groups sampled are the Dinophyta and Pyrrophyta, which contributed about 8.44%
and 7.74% respectively of total individuals sampled. Comparison with previous study showed the
phytoplankton composition was slightly lower compared with previous report from Malaysian
waters. The Chlorophyll-a concentrations were also measured, and they range from 0.17 ± 0.02
g/L to 0.49 ± 0.08 g/L.

A total of 1,617 individuals of macrobenthos from 34 different taxa were sampled from the study
area. The macrobenthos community consists mainly of Polychaetes followed by the Crustaceans,
Echinoderms and others. Within the polychaeta; Spionidae, Paraonidae and Capitellidae are among
the abundant families. Within the crustaceans; Amphipoda was the most dominat taxon. The
macrobenthos densities are considered high compared with other areas in Malaysian waters.
However, the macrobenthos diversity and family richness were low. The evenness index was
moderately low to high. Statistical analysis found no significant difference in terms of diversity,
richness, dominance and evenness values, between stations (P>0.05). The high density, low diversity
and low richness values are characteristics of a disturbed or stressed condition. However, the low
dominance and considerably high evenness index might indicate that the area was somehow still in
fairly good condition.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                         Exe - 16
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                                  Executive Summary


The marine fish fauna recorded in the study area were represented by a relatively large number of
commercial species. Among them were lutjanids (e.g. Lutjanus malabaricus), sciaenids (e.g. Johnius
belangerri), scombrids (e.g. Scomberomorus commerson) and Selar crumenopthalmus. Other species that
occurred in abundance but has low commercial value include Leiognathus equulus, Drepane punctata,
Atropus atropus, Nemipterus furcosus and Arothron stellatus.

Fishing activities are concentrated within the 30 nautical mile limit. The range of catch obtained was
between 20 – 80 kg/hr (± 40 kg/hr) within 5 nautical mile from the shoreline but it was slightly
lower (20 – 60 kg/hr) in the area beyond. The commercial landings were mainly contributed by
trawlers (25 percent), bottom gillnets (10 percent) and purse seiners (9%). The fish species that
significantly contribute to the total fish landings are Decapterus spp., Sardinella melanura, Thunnus tonggol
and Rastriliger kanagurta.

During operation, results of thermal plume modeling show that the ecological impact from the
thermal discharge is expected to occur in an area near the coast about 2.5km in length to the North
and 1.5km to the South under the worst case scenario (NE monsoon). The average width of the
strip is about 250m, thus covering an area of about 1km2 during plant operation. In this area, a
surface temperature increase of 4°C and above is expected. Below the surface, the maximum excess
temperature is significantly lower and covers a much smaller area.

The fish community within 1km2 adjacent to the proposed project site will not be significantly
affected because they can swim away from the higher temperature level. However, the demersal
(bottom dwelling) fish and fish that navigate the bottom layer of the water body will not be affected.
The study on fish community near Kapar Power Station showed that fish diversity significantly
declined for the temperature above 33°C (Samat et al. 2004). The benthic community that resides in
the seabed zone will not be affected by the thermal plume since temperature increase is confined to
surface water. There will be a total loss of phytoplankton within the area near the coast about 2.5km
in length to the North and 1.5km to the South. Beyond this area, phytoplankton will be in the
adaptive tolerance state. There will be no effects on corals or seagrass bed because they are not
found within the 10 km radius of the proposed project site. Although there is no published findings
on the impact of thermal plume on seaweed, this study conservatively predicts that there will be a
total loss of seaweed farming area near the coast about 2.5km in length to the North and 1.5km to
the South under the worst case scenario (NE monsoon) due to temperature increase of more than
4oC.

Results of the chlorine dispersion modeling show that the extent of the dispersion for chlorine
concentration greater than 0.3mg/l is only confined to a small area at the discharged point. Even
under the worst case scenario (Pure Tide), the size of the area with concentration greater than
0.3mg/l is only about 0.1km2.

Only early life stages individuals of marine organisms such as fish larvae are affected in the small
area (0.1km2) at the discharged point where the concentration chlorine is greater than 0.3mg/l.
There is no impact on adult fishes in this zone and beyond. Macrobenthos within the outfall area
(chlorine concentration between 0.3 – 0.5 mg/l) will be slightly affected. There will be changes in the
composition and abundance of benthic community. Sensitive microbenthos species will be replaced
by more tolerant or hardy species. Benthic communities beyond this area will not be affected.
Phytoplankton within this zone where the chlorine level between 0.3 and 0.5 mg/l, will be slightly
affected (reduction in primary production). There will be no impact on coral because chlorine
concentration will not exceed 0.5mg/l even at the discharged point and there is no coral found
within 10km radius from the proposed project site. Since chlorine concentration below 0.3mg/l can
be considered low (Davis 1971, Husnah and Lin 2002, Weng et al 2004), no detrimental effect to
seaweed farming are expected. Chlorine concentration will dissipate below 0.1mg/l 6km away from
the proposed project site. Therefore sensitive and pristine area such as the Darvel Bay


UKM Pakarunding Sdn. Bhd. (561663-U)                                                                 Exe - 17
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                            Executive Summary


(approximately 100km away) and Tun Sakaran Marine Park (approximately 70km away) will not be
affected.

The cooling system will be designed so that the temperature of the discharged cooling water is 80C
above the intake temperature. Further to meet the DOE requirement, the discharged temperature
into the marine system will not exceed 400C. The plant must be regularly maintained and closely
monitored, so that the discharged cooling water temperature will always remain within the limits
specified.

Residual chlorine should be ensured to be at low concentrations by controlling sodium hypochlorite
dosing such that the level at the outfall should never exceed 0.5 mg/l using a control system within
the Electro Chlorination Plant.

At the macro level, the proposed project site is located at the border of the Coral Triangle (CT) and
Sulu Sulawesi Marine Eco-region (SSME). The CT region spans part of the marine waters of
Indonesia, Malaysia, Papua New Guinea, the Philippines, the Solomon islands and Timur-Leste.
The SSME is a tri-national treaty between Malaysia, Indonesia and the Phillippines to conserve the
sensitive habitats which is coral reef, mangrove and seagrass. This area also is known as a marine
hotspot and it lies at the apex of the Coral Triangle. The impact of the proposed power plant on the
marine environment is limited to thermal plume, chlorine dispersion, possible spillage of coal during
transportation and sinking of coal barges. The extent of the thermal plume and chlorine dispersion is
limited to an area of 1 km2 in the worst case scenario near the coast. Coral reef, mangrove, seagrass
and sensitive habitats that are subject to the CT and SSME treaties, are not found within this
relatively small zone of impact.

6.14    Terrestrial Flora

Vegetation survey was conducted within the core and buffer zone and also 1 km, 5 km, and 10 km
radius of the proposed site. The core zone is mainly covered by common and widely distributed
plant species, a part from the saplings of oil palm and landscape trees. Similar plant species
composition was recorded in the buffer zone and within the 1 km radius. Nine common exclusive
mangrove species were also recorded within the 1 km radius areas. Sungai Merah (5 km radius)
recorded 16 exclusive and 10 non-exclusive mangrove species including two rare mangrove plant
species. Sungai Sahabat (10 km radius) recorded 20 exclusive and 22 non-exclusive mangrove species
whereby another two rare species were found, Ximenia americana and Osbornia octodonta, and the latter
is an endemic species to Borneo. Seven fern species were recorded in the palm plantations and
mangrove habitats at Sg. Merah and Sg. Sahabat. Stenochlaena cumingii Holttum is identified and
confirmed as a new record for Sabah fern flora.

During construction, the most significant impacts of the proposed development on biological
components would be the loss of some cultivated (oil palm) and natural vegetation of the coastal
habitats. About 69.8 hectares of land will be cleared generating biomass amounting to 1,300 tonnes
that requires disposal.

The biomass should be disposed at the buffer zone using zero-burning techniques (ECD 2000).
After removing the felled trees to the buffer zone, the trunks should be chipped into smaller pieces
and left in-situ to decompose naturally. Zero burning enhances the soil organic matter, thus helping
to improve the fertility and physical characteristics of the soils.

During operation, coal combustion would produce stack emissions containing particulate matter,
hydrocarbons, CO, SOx and NOx. The latter two may affect sensitive plants. Species of



UKM Pakarunding Sdn. Bhd. (561663-U)                                                         Exe - 18
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary


intermediate sensitivity are not expected to be affected during the operation phase of the proposed
power plant. However, compared to hardy perennial species such as coconut and oil palm trees,
more sensitive species such as broadleaves and herbaceous plants such as vegetables are likely to be
more affected in the long term through exposure to acid rain produced by dissolved SOx and NOx in
the atmosphere.

Sulphur dioxide (SO2) and nitrogen oxides (NOx) are the primary causes of acid rain. The Council
of the European Union (EU) in a directive (Directive 2008/50/EC and Council Directive
1999/30/EC of 22 April 1999) relating to limit values for sulphur dioxide, nitrogen dioxide and
oxides of nitrogen, particulate matter and lead in ambient air specifies threshold limits for SO 2 and
NO2 for the protection ecosystem. The limits are 30 µg/Nm3 for SO2 and 20 µg/Nm3 for NO2.
Results of the air quality modeling show that, for the proposed project, the maximum SO2 and NO2
concentration under normal operation are less than 3 µg/Nm3 i.e. well below EU limits.

6.15    Terrestrial Fauna

Terrestrial fauna which comprises large and small mammals, bats and birds were studied at the
proposed project sites and two surrounding habitats namely Sungai Merah and Sungai Sahabat.
These study sites were selected due to two main reasons; i) these are the major forest habitats found
within 20 km radius of the proposed project site, and ii) they represent several habitats such as
riverine and lowland forest.

At Sg Merah, 14 mammal species were recorded where from this number 9 species are large
mammals and 5 species are small mammals. No bat species was recorded in this area. Among large
mammals, 5 species are ungulates (Artiodactyla), 2 species are carnivores and 2 species are monkeys
(Primates). Leopard Cat and Sambar Deer are categorised as Protected while Lesser Mouse Deer,
Barking Deer and Bearded Pig are categorised as game species under Wildlife Conservation
Enactment 1997. For small mammals found in the area, no species are protected locally and
internationally and the presence of Malaysian field rat in large number (or dominance) is an
indication that the study site is a disturbed habitat.

At Sg Sahabat, the total number of mammal species recorded was 15 species with 8 large mammals
and 5 small mammals including two bat species. The large mammal species are represented by 3
species of ungulates and 2 species of monkeys. Locally Protected species are Leopard Cat, Smooth
Otter and long-tailed Macaque. Small mammal species found at Sg Sahabat are similar with those
species found at Sg Merah. The two fruit bat species found however, are common especially in
degraded lowland forest.

The proposed project site is located next to the shore line and is at present primarily covered by
newly planted oil palm trees with legumes as vegetation cover. The habitat of this area is reflected by
the number of mammals; with only 10 species – 5 large mammals, 3 small mammals and 2 fruit bats.
All of mammal species found here are also found at the other two study sites.

Birds from 50 species from 24 families were captured at all three study sites. At Sg Merah, 25 species
from 17 families of birds were captured. At the proposed project site 29 species from 18 families
were caught, whilst at Sg Sahabat the corresponding figures are 38 species from 16 families.
Generally, most of the bird species are those associated with estuary (e.g. kingfishers, sandpipers,
caocal and egrets), and open area and degraded forest (e.g. bulbuls, doves, and munias).

Result from this study show that 8 of the species captured at all of the study areas are either Totally
Protected or Protected.



UKM Pakarunding Sdn. Bhd. (561663-U)                                                           Exe - 19
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary



During construction, clearing of the area will pose threat to wildlife (small mammals and birds). The
threat comes in the form of reduced habitat size for foraging and nesting. Although the
construction site is far from major forest areas, it is however surrounded by oil palm plantation
inhabited by wildlife species especially birds. The high number of workers may pose threat to
wildlife due to illegal hunting. Illegal hunting which is not only endangering the survival of wildlife
but also safety of the workers. To minimize the impacts, site clearing and subsequent activities (e.g.
earthworks – although not very extensive) are to be carried out in phases to minimize the size of
exposed areas at any particular time. Exposed areas need to be covered to prevent erosion. Any
sighting of protected wildlife within the construction site needs to be reported to the Sabah Wildlife
Department. Again, hunting of protected wildlife species is prohibited. Finally, workers need to be
educated on the importance of maintaining diversity of flora and fauna.

During the operation phase, it is predicted that no direct impacts of project on wildlife. However the
existence large and tall structure near the shoreline may have impacts on migratory birds such as
eagles and seabirds. Tall structure will have indirect impacts on migrating birds such as eagles and
seabirds – birds may disorientate during flight or need to avoid the tall structure with changing flight
direction.

Nuisance birds need to be monitored at the early stage by several ways, i) reduce any perching sites
within the compound, ii) reducing the lighting within the potential perching sites, iii) removal of
individuals from the site if the number start to increase.

Results of the air quality modeling show that, for the proposed project, the maximum SO2 and NO2
concentration under normal operation are well below limits set by the EU for the protection of
ecosystem. For example, the concentration level for SO2 at Kg Sg Merah (5km away) is predicted to
be about 1 µg/Nm3. Therefore, protected areas such as Tabin Wildlife Reserve which is located
more than 20 km away from the proposed power plants is anticipated not to be affected from the
proposed power plant emission.

6.17    Socioeconomy

Within 20 km from the project site, there are 8 FELDA settlements and 7 traditional villages with a
total population of 31,890 found. The nearest human settlement to the proposed site is a fishing
village known as Kampung Sinakut, which has a population of about 400 people of the Bajau and
the Suluk origin. Besides fishing some of the villagers are also involved in sea-weed farming.

Five hundred respondents were surveyed and two focused groups’ discussions were conducted to
elicit their opinions on the proposed project. Of the 500 respondents surveyed 44% were Bajau,
11% Bugis, 10% Kadazandusun, 9% Suluk and 24% others. In terms of religion, 95% were Muslim
and 5% were Christians, and 92% were Malaysian citizens and 8% were non Malaysian. It was
found that the monthly income of most households range between RM1,000 – RM1,500, while
about 21% of them earned more than RM1,500 monthly.

Sixty four percent of the respondents claimed that they were aware of the proposed project. A total
of 41.8% of the respondents were of the opinion that the project would be beneficial, 43% were not
sure, and 14.4% believe that the project were not beneficial. In terms of necessity of the project,
46.6% believe it is necessary, 8% say it is not and 45% say they were not sure.

Pertaining to the suitability of the site chosen, 37.2% agreed to the site chosen, 17.2 % disagreed and
45.6% were not sure. Those who disagreed believed that the project will cause pollution to their


UKM Pakarunding Sdn. Bhd. (561663-U)                                                            Exe - 20
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary


environment and that it will give a negative impact to their health. On an average, 42% of the
respondents viewed the proposed project positively compared to 13% otherwise. The remainder
(45%) were ‘not sure’.

Views expressed during the public dialogue and focus group discussions indicate that the
participants were not too sure about the actual impact of the proposed project although they also
seem to agree and support the government’s effort to build the coal-fired power plant in the
proposed site. Just to quote what one of them say, ‘kami mahu terang, kami mahu lihat anak-anak kami
dapat hidup dalam terang. Kampung kami sudah lama tiada lektrik.’ Kami juga mahu anak kami pandai
komputer. Tiada letrik mana boleh komputer’. On the same note, they also expressed their hope that the
government will ensure that their environment will be safe and healthy.

About 70 families will be relocated to make way for the proposed project. Relocation imposes
negative socioeconomic impacts in the form of monetary cost, psychological stress, loss of income
and disruption to daily activities. On the positive side, since the residents of Kampung Sinakut are
staying as squatters in their present village, relocation will give them an opportunity to own a secure
and permanent place of residence.

The construction of the jetty will reduce the size of the fishing ground available to the local
fishermen. The area near the jetty will no longer be available for fishing because of the construction
activities that may pose danger to fishermen and their vessels and gears. The size of the affected
area is estimated at 0.2 km2. This study notes that the entire coastal areas are used by local fishermen
as fishing ground and the size of the area is estimated to amount to about 500 km2. The size of the
affected fishing ground is therefore estimated to be about 0.04 % of the total.

Fishermen safety may also be adversely affected since construction activities (including increased in
vessel movements for transporting construction equipment and materials) can increase the risk of
collision and accidents involving fishermen vessels.

During the construction phase, a base camp will be built and equipped with a site office, warehouse
and workers accommodation quarters. The base camp impact would come mostly from problems of
(i) interaction among workers employed of different ethnic origin/nationalities stationed at the base
camp, (ii) overcrowded and cramped base camps which would be uncomfortable and unhygienic to
workers. It is expected that during the construction period a large number of foreign workers will
be employed. As highlighted by members in the focus group discussion, the local people are
concerned about foreign workers that will be hired.

During the construction period it is anticipated that there will be more jobs and business
opportunities available. This will enable the locals and local businessman to get employment and
supply contracts.

During operation, the proposed project will contribute towards the economic and social well-being
of the state of Sabah by providing a more stable power supply that will reduce the frequency of
black-outs or power failure endured by the people. The project will also provide economic
opportunity like employment, supply and maintenance contracts and other business opportunities.

From the socioeconomic standpoint, the proposed project may heighten concerns of the local
communities of the impact of the proposed power plant on public health. These concerns are
confirmed by results of the socioeconomic survey and public dialogue. Although the health hazard
assessment conducted in this study indicates that the impact is minor, the project proponent must
allay the fear of the local communities.



UKM Pakarunding Sdn. Bhd. (561663-U)                                                            Exe - 21
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                             Executive Summary



The impact of relocation can be mitigated by providing adequate compensation, engaging the people
affected during the process of selecting relocation site, preparing relocation plan with full
consultation with the affected parties, seeking the help of the state authority and local community
leaders of Kg. Sinakut in facilitating negotiations and provision of basic infrastructure at the
relocation site.

To minimize the loss in fishing ground, sediment dispersion should be controlled by erecting
double-layered silt curtain to completely enclose the construction area. The enclosure can be done
in stages from one work area to another and not the entire length of the jetty and pipe trench. To
mitigate the cost of increased fishing effort, some form of financial compensation should be made as
part of the overall compensation scheme for the affected fishermen. The relevant state authorities
should take the lead in the negotiation process with the affected fishermen.

The main contractors should provide workers quarters, and group the workers in these quarters
according to their ethnic origins or nationalities. This must be carried out by the contractors to
maintain harmony and avoid misunderstanding amongst workers. Base camps need to be self-
contained and be provided with adequate basic amenities and health requirement. It is proposed
that the project proponent hire more local workers or workers from within the state of Sabah.
When hiring foreign workers, the project proponents/contractors must abide by the rules and
regulations of employment. The contractors are also responsible in managing unwanted behaviour
of workers on and off the jobsite in order to help minimize undesirable strain with local community.

To enhance the positive impact of the project on the local communities, efforts must be made to
ensure the locals are given priorities to involve in economic activities like direct employment in the
project and other spin-off business activities and to ensure the continuation of a healthy
environment in the area, a stringent monitoring of the environments should be carried out regularly
in accordance to recommendations of this DEIA.

The project proponent must disseminate objective information on the health impact of the project.
This can be done by engaging the communities through meetings, dialogues, preparation and
distribution of factsheets and appearances in the media. The project proponent must comply with
all operational rules and regulations as well as the conditions set by the DOE.

6.18    Public Health

A community survey involving a total of 500 people were conducted as part of the study. Most of
the respondents (44.4%) are from the Bajau ethnic group. Majority (81.6%) of respondents have
sanitary latrine and piped drinking water system. Only a small percentage of the respondents (5.6%)
choose beach side areas for defecation and 16 of them still use rain water as the source of drinking
water. These practices give rise to a higher risk of diseases spreading among family and community
members. Domestic wastes are collected regularly by the local authority. However there are 24
respondents (4.8%) who simply dump their domestic and other wastes at beach area and into the
sea.

Most of the respondents (83.8%) claimed that they or their dependents had at least one time felt sick
in the past six months. The main health problems are flu and upper respiratory infection (URTI),
skin problem and acute gastroenteritis (AGE). The majority (318 - 75.9%) had sought treatment
from medical doctors. The study also found that only 20.1% of them were hospitalized. Other
diseases are present but not significant.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                          Exe - 22
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                               Executive Summary


From the monthly surveillance records of the Lahad Datu District Office of Sabah (2008), using
estimated mid-year total population, 28 cases per 100 000 population for the respiratory diseases
were recorded during the swine flu pandemic. This rate is higher than the recent national morbidity
rate. Obviously, the pandemic of swine flu during that time gave a tremendous number of cases
involving the respiratory system among respondents. For skin problem, it recorded 1.6 cases per 100
000 population, which is lower than the national average. A similar pattern was also observed in the
first half year surveillance report for both diseases for 2009.

6.19    Aesthetics

Physical structures such as building and chimneys protruding from the flat ground amongst the palm
oil plantation disturb the scenery of the locality either seen from the land or from the sea. However,
in time, the existence of the structures will be accepted as part of development and the scenery.
During night-time, the proposed power plant will be lighted up and can be seen from afar. This
increase in lighting will affect the natural ambience of the area during night-time.

To mitigate the impact of protrusion of physical structures, the building should be painted with
colour scheme that allows for greater blending of the structures to the surrounding environment. In
addition, landscaping using local plant species will also soften the ‘hard’ viewscape of the proposed
power plant.



7.0    QUANTITATIVE RISK                 ASSESSMENT           (QRA)      AND       HEALTH         RISK
       ASSESSMENT (HRA)

Among potential incident outcomes associated with the proposed power plant is major fire at the
coal storage yard, dust explosion at the crusher or pulverizer unit, physical explosion at the boiler
unit and major fire at the fuel oil storage facility. Result of the qualitative risk assessment concluded
that the only the potential occurrence of major fire at the coal storage yard and major fire at the fuel
oil storage facility required more in-depth analysis in the form of QRA. The 1 x 10-6
fatalities/person/year risk contour is non-existent, therefore satisfying the EIA Guidelines for Risk
Assessment (2004) and should be considered safe to the surrounding population. Figure E7.1
shows the location of the 1 x 10-7 fatalities/person/year risk contour which is within the proposed
power plant boundary.

Air quality modeling was conducted to predict the dispersion of total suspended particulate (TSP),
sulfur dioxide (SO2), nitrogen dioxides (NO2), and mercury. All pollutants are non-carcinogenic
substances and their reference dose (RfC) was used to determine the cumulative hazard index (HI).
The cumulative HI was computed for residential areas within the impact zone such as Bandar
Sahabat, Kg. Sinakut, Kg. Batu-batu and Kg. Sungai Merah. All areas register HI of less than 1 for
both normal plant operation and worst-case scenarios.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                             Exe - 23
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                                                                    Executive Summary




                             Figure E7.1: 1x10-7 death/person-yr Individual Risk Contour for the Proposed Power Plant



UKM Pakarunding Sdn. Bhd. (561663-U)                                                                                              Exe - 24
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary


8.0     ECONOMIC VALUATION OF ENVIRONMENTAL IMPACTS

The construction and operation of the proposed power plant is expected to positively contribute
towards the state economy through increased investment in power generation facility and
subsequently induced commercial/ economic activities. However, project implementation will also
give rise to negative environmental impacts that cannot be completely mitigated thus justifying the
need to quantify the degradation in services obtainable from the disturbed natural environment. In
evaluating the impact of the proposed project on environmental services, this study adopts the
impact pathway approach (IPA) where the physical environmental impacts are linked to an
economic valuation process.

Three environmental impacts have been identified to be significant enough to be considered for
evaluation. Potential impacts in the forms of increased air emission of SO 2, NO2 and CO2,
degradation in water quality, and the subsequent impacts on seaweed farming are evaluated in this
study. This study finds that the resulting pollutant concentration level as a result of plant operation
does not exceed the health impact threshold. However, for prudence, the air pollution impact is still
evaluated. After discounting at the rate of 4%, the project is expected to bring about a present value
of environmental cost amounting to (-RM19.332) million over a 30-year period. The corresponding
values are equal to (-RM15.685) million and (-RM13.070) million when 6% and 8% rates of discount
are used respectively.



9.0     RESIDUAL IMPACTS AND ABANDONMENT

Some impacts cannot be mitigated completely, as not all adverse impacts that arise from the
proposed project can be fully alleviated. The surrounding air quality will be affected due to the
emission from the stack and from fugitive sources of the power plant. However, the predicted
ground level concentration of the air quality parameters from the operation of the power plant such
as SO2, NO2 and TSP are still within the limits of the Recommended Malaysia Air Quality Guideline
(RMAQG).

The proposed power plant will have physical structures such as building and chimneys protruding
from the flat ground amongst the palm oil plantation. These types of structures disturb the scenery
of the locality either seen from the land or from the sea. However, in time, the existence of the
structures will be accepted as part of development and the scenery.

There will be some loss of seaweed farming area measuring 4km along the coast fronting the
proposed project site due to thermal dispersion which will increase the sea temperature by 40C above
ambient temperature. Phytoplankton will also be similarly affected by the temperature increase.

The livelihood of some fishermen will be affected due to the loss of some fishing grounds as a result
of the operation of the power plant, jetty, water intake and outfall pipes that renders this area as a
security zone.

On the other hand, the operation of the power plant also provides opportunities for jobs and
business to local populations although the scale may be smaller compared to the construction stage.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                           Exe - 25
DEIA for 300MW Coal-fired Power Plant Project,
Felda Sahabat, Sabah                                                              Executive Summary


10.0    MARINE NAVIGATION SIMULATION

A ship manoeuvring simulation exercise was undertaken to assess the navigation safety issues related
to the safe berthing/unberthing of a tug-and-tow combination at the proposed Felda Sahabat jetty.
The study seeks to identify safety concerns on the tug-and-tow arrival and departure manoeuvres.

A total of 12 simulation runs were undertaken, using the tug-and-tow combination in the fully laden
condition for both arrival and departure, to represent worst case scenarios. The manoeuvring
scenarios are set at the time when the tidal currents are at their strongest. The tug-and-tow may
approach the jetty either from the North easterly or the South westerly directions stemming the tidal
stream, or from either direction at slack tide, with the tidal stream flowing parallel to shoreline.

There is no significant safety concern in berthing and unberthing a tug-and-tow at the Felda Sahabat
jetty at all stages of the tide. However, in order to optimize the safe-work operating conditions of
the future terminal, several recommendations should be implemented including licensed harbour
pilot must be provided, tug boats with enough bollard capacity should be used and implementation
of the Standard Operating Procedures (SOPs) and Emergency Operating Procedures (EOPs) for the
coal terminal.


11.0    CONCLUSION

With good design and responsible implementation and management by the Project Proponent, most
of these impacts can be reasonably minimised with appropriate mitigation and control measures as
proposed in this report. The proposed monitoring programmes to be carried out will ensure that
criteria and standards of environmental quality are observed and abided by the project proponent
throughout the project's life. It is important that this project be carried out in full compliance with
all the conditions set by DOE and the relevant regulatory agencies.




UKM Pakarunding Sdn. Bhd. (561663-U)                                                           Exe - 26

				
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