Case Study Category AP roject In Country X

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							    Case Study: EMP for the Combined-Cycle Power Plant Project in
                             Country X

Case presentation and discussion format

Participants are given a PowerPoint presentation in which the key elements of the case
are laid out. Each participant receives a printed copy of the presentation and key tables
from the Environmental Management Plan (EMP) for the hypothetical project in the case.
Equipped with this material, the participants are given a few minutes to think about the
general question included in the Role Play (see below). Then they are “visited” by the
author of the case study impersonating the NGO critic of the project, who asks them the
specific questions given below. Ideally, the participants should be able to retrieve the
appropriate information from the EMP and the PowerPoint presentation to answer the
questions. After the role play, a discussion follows, in which the answers given by the
participants may be compared with the possible answers given below.

Learning objectives:
    Identify and analyze strengths and weaknesses of an EMP
    Learn about typical environmental issues covered in an EMP for a project
      involving construction of a thermal power plant
    Analyze EMP in a broader context of the project development cycle
    Appreciate the importance of public information and timely involvement of the
      local community.

Scenario for discussion

Country X has would like to improve its energy supply situation and decides to build a
new thermal power plant with an electric capacity of about 100 MW. The country’s
Ministry of Energy is the borrower. The country’s National Power Company (NPC) is put
in charge of implementing the main physical component of the project, which consists of
building a combined-cycle thermal power plant and connect it to the power grid. The
choice of power plant site is made according to certain criteria (environment being one of
them). The task team leader (TTL) discusses the project with the NPC management. TTL
says, “It is obvious that the project is Category A. The World Bank takes Category A
projects very seriously. Let’s make sure the EIA is comprehensive and state of the art. I
would like the EMP to be especially well developed. At the end of the day, the EMP is
the document that will be most useful to you in practice. Fortunately, we have secured
enough grant money to hire top-quality experts to conduct the EIA and develop the
EMP.”

EIA/EMP is prepared by a highly reputable team of environmental experts from
consulting firm Top Quality Experts (TQE) hired by the Ministry of Energy. The
EIA/EMP is the third phase in TQE’s contract. The two earlier phases consisted of (i)
selecting the best site, technology, and fuel for the generation facility (power plant); and
(ii) conducting a feasibility study to evaluate the technical requirements, as well as the
                                           2
environmental, economic, and financial viability of the generation facility at the selected
site.

The TQE team chooses the sea coast of town Z to be the site for the power plant. It also
chooses liquid fuel (distillate oil) as the primary fuel, and the once-through cooling
(OTC) system utilizing the sea water for converting the plant’s exhaust steam back into
water.

When the EIA report is completed, it includes an EMP as one of its chapters. The EMP
consists of an Environmental Mitigation Plan and an Environmental Monitoring Plan (see
Annex 1 for the key tables from the EMP).

When the bids are invited for the Engineering, Procurement, and Construction (EPC)
contract, the EMP requirements are incorporated in the bidding/contract documents
(binding for EPC contractor). Relevant EMP provisions are also included into the
contracts for fuel supply during operating phase.

The borrower believes that the environmental aspects of this project’s preparation are
exemplary. State of the art combined cycle power plant is designed by the EPC contractor
and is ready to be supplied and installed. The office of the PIU director proudly displays
the computer-generated image of the plant.




Source: http://eia.csir.co.za/cip/docs/Overview_CIP_Eskom_iGas_13092006.pdf

Still, the TTL is worried about possible criticisms from environmental groups (NGOs).
                                                   3
Role play

General Question. You are the PIU Director at the NPC, and you are asked to prepare
for a meeting with Dr. Ruffle, a senior representative from an international environmental
NGO and a likely critic of the project. You believe that the recently finalized EMP can
help you answer his questions. What kind of issues do you think you need to be
especially prepared to discuss?

Some correct answers:
    Siting (relates to avoidance versus mitigation of environmental impacts)
    Technology used (esp., once-through cooling), including mitigation technology
    Public consultation (note that public consultations in our case were held in an
      exemplary manner)
    The effectiveness/practical implementation of EMP

Possible scenario of the meeting between the PIU director and NGO activist

Specific Questions

     Siting:
Ruffle: In environmental management, like in many other fields, avoidance of damage is
considered a better option than mitigation. The World Bank, among others, certainly
subscribes to this view in its guidance on Environmental Management Plans1. Some of
the impacts this project will have on the environment might have been completely
avoided had a different site been chosen for the project. This particular coastal area of
Country X is particularly valuable/vulnerable and only 3 km away from a National Park.
How did your experts choose the coastal area of town Z as the site for the project? What
kind of criteria did you use to eliminate all the other possible locations?
PIU Director: We have considered six other possible locations, and every one of them
had some environmental issues of its own. But if you would like to know all the selection
criteria we used, here they are: (i) environmental conditions on site; (ii) air quality
concerns; (iii) cost of electricity generation; (iv) socio-economic concerns; (v) proximity
to available transmission lines; (vi) transmission system considerations; (vii) fuel
availability; (viii) water and sewer needs; (ix) transportation; and (x) property
availability.
Ruffle: Thank you for this information, but I remain unconvinced. The environmental
criteria you mention seem too general. An in-depth analysis of environmental conditions
should have led you away from the green field areas of town Z and into areas that are
already built-up by industry.

      Air Pollution Control:
Ruffle: How will you manage the air quality concerns at the site you have selected –
especially the pollution resulting from fuel oil combustion?
PIU Director: As you know, Country X has adopted the standards of the European
Union for air quality. To demonstrate compliance with these standards, our experts have
utilized the latest US EPA air pollution simulation model (ISCST3).
1
    Environmental Management Plans. Environmental Sourcebook Update/ No. 25. January 1999.
                                             4

                   Annual Averaging Period            24-hour Averaging Period
 Pollutant Maximum        Ambient Air Quality      Maximum      Ambient Air Quality
             Modeled      Standards (μg/m3)        Modeled      Standards (μg/m3)
             Impacts      World       European     Impacts      World       European
             (μg/m3)      Bank        Union        (μg/m3)      Bank        Union
 NOx         4.5          100         40           17.5         150
 PM10        0.5          50          40           2.2          150         50
 SO2         2.1          80          20           10.5         150         125

As you can see, these modeled concentrations are far below the strictest of the standards
we could possibly apply, and these air quality levels will be ensured through the
mitigation measures included in the EMP. Specifically, the combustion turbines will
employ state of the art control technology for all pollutants. NOx will be controlled using
low-NOx burners and water injection. SO2 will be controlled by firing only low-sulfur
(less than 0.1% by weight) distillate fuel oil. Employing good combustion control will
control CO, particulate matter, and volatile organic compounds. The plant will feature
stack heights that conform to good engineering practice to facilitate dispersion of emitted
gases. The plant stack heights in our case will be at least 45 m. At the plant
commissioning, the EPC contractor will need to demonstrate compliance with the
emission standards guaranteed by the manufacturer. Subsequently, there will be
continuous monitoring of NOx and opacity emissions. Fuel sulfur content will be
monitored to ensure that it is less than or equal to 0.1% by weight. Sampling and analysis
will be performed on each delivery received.

     Fuel supplies:
Ruffle: Choosing offshore oil as primary fuel is a big environmental risk to take. How
many tanker trips per year do you anticipate, and how will you manage the risk of oil
spills?
PIU Director:
For some impacts of the project, the EMP we have developed is only a start. Oil spills is
one of the risks requiring an individual risk management plan. The plan must be
acceptable to the NPC and the World Bank. It is anticipated that about 30 deliveries will
be made per year by a barge with minimum capacity of 3,000 m3 from a distance of 20
km away. Monitoring and enforcement of sea conditions under which a vessel may make
deliveries will be part of the plant procedures and implemented through the delivery
contract. The necessary response equipment will be provided.

Ruffle: What other impacts of the project will require a specialized EMP?
PIU Director: To name just a few: waste management plan, site drainage and grading
plan, health and safety plan, and noise and vibration plan (the complete list of such
specialized EMPs, as well as additional studies required, is given after the tables in
Annex 1).

     Power plant cooling technology
Ruffle: I am surprised that, after so much analysis of environmental impacts, your
experts would choose the once-through cooling (OTC) technology to cool the power
plant. The OTC technology uses the living and breathing sea water as the radiator fluid to
                                                5
run through the plant. Furthermore, the quantities of water involved in this process are
enormous. Do you know how much water these systems use? There are estimates2 that
the water demand for a once-through cooling system is 30 to 50 times that of a closed-
cycle system. Not only are fish and other marine organisms destroyed by being sucked
into the plant at the point of intake, but the thermal and chemical pollution of the sea by
the return water coming from the outfall is also very harmful for the aquatic ecology.
Would you like to have a few copies of this poster?

Once-through cooling technology
schematic emphasizing damage to aquatic environment




PIU Director: The OTC option was chosen based on its superior cost-benefit
characteristics. The power plant is known to operate more efficiently when this
technology is used. Regarding the environmental impact, please note first of all that there
are no local restrictions in Country X on the use of OTC. Secondly, our EIA has clearly
demonstrated an acceptable level of environmental impact resulting from the use of OTC
technology. In our EMP, we have included the necessary mitigation measures: traveling
water screens at cooling water pump suctions will be employed. An inlet velocity less
than 1 m/s will be used to minimize entrainment of fish and other aquatic fauna. Thirdly,
thermal discharge modeling demonstrates that the thermal impact from the discharge is
well below 3ºC allowed by international guidelines. Finally, the chemical discharges are
in compliance with the residual chlorine discharge limits recommended by the World
Bank.


2
    http://www.lcca.co.uk/upload/pdf/POWER_STATIONS_WATER_DEMAND.pdf
                                              6
Ruffle: In that case, why do you think the US EPA is considering a prohibition on the
construction of new power plants using OTC in the United States? They are even
studying the options for upgrading the existing power plants to the closed-cycle cooling
system. I have just returned from a trip to California. The environmental community is
clearly winning the argument there.

PIU Director: The closed-cycle cooling system requires the construction of cooling
towers and is generally more expensive. However, we did consider this option in our
analysis of alternatives in the EIA. Our experts estimated that a cooling tower would add
as much as US$10 million (or almost 9%) to the cost of the project. Corrosion-resistant
materials would have to be used if the system uses saltwater from the sea, while using
fresh water is practically out of the question due its intermittent availability. The plant
efficiency would also be somewhat lower with the closed-cycle cooling system, which
would translate into higher consumption of fuel.

     Wastewater disposal
Ruffle: How will you manage the wastewater coming from the pant?
PIU Director: A sewage treatment facility will be provided at the plant and discharge of
treated effluent will be combined with the cooling water discharge. The sewage treatment
plant will provide secondary treatment.

     Practical implementation (enforcement) of EMP
Ruffle: I have seen your EMP and I appreciate the fact that it was on the table when the
consultation meetings were held with the local public. I have to admit that it is probably
one of the best documents of this sort that I have seen for similar projects. But I have
some concerns about its practical implementation. How exactly can you make sure that
the mitigation and monitoring measures included in the EMP will be actually enforced?
PIU Director: I would like to answer as follows:
     First of all, there is a provision in the project agreement about the need to
        implement the EMP. The National Power Company, as the project implementing
        entity, is legally obligated to follow the provisions of the agreement. And why
        wouldn’t it? You may have noticed that practically every item of the EMP has a
        cost estimate. Essentially, this is the budget allocated to these items, and they are
        included in the procurement plan.
     Secondly, every time we have a tender, we include the relevant provisions of the
        EMP into the bidding documents. You can see from Annex 2 how detailed these
        environmental requirements are. To win the tender, the candidate contractor will
        have to fully accept these requirements as an integral part of their contract. In our
        case, the successful EPC contractor has gone beyond the scope of the mandatory
        EMP provisions and developed its own version of the EMP, which is more
        detailed than the original version.
     Also, we’ll make sure that NPC includes the relevant environmental requirements
        into the contracts with the fuel suppliers.
     Last but not least, implementation of the environmental mitigation measures will
        be closely supervised. The PIU has recruited a full-time environmental specialist.
        It is in her job description to periodically check compliance of the project with the
                                          7
       environmental monitoring plan and obtain regular reports from the NPC on
       compliance.


Analysis/Discussion

The EMP strengths and weaknesses

Strengths:
The EMP (and the Environmental Management Planning process more broadly)
incorporates the following elements of best practice:
     The air pollution control measures are designed to comply with the stricter of the
       potentially applicable standards (EU, WB)
     Cost estimates are available for most items in the EMP and included in the
       Procurement Plan
     EMP requirements are incorporated in the bidding/contract documents (binding
       for EPC contractor) and into the contracts of suppliers of fuel during operating
       phase
     The EMP has been adequately disclosed, and the local community was actively
       involved

Weaknesses and what might have been done differently/better:
   The mitigation options in the EMP are limited by the earlier commitments to
     pursue particular technological solutions (e.g., the once-through cooling system)
   Furthermore, both the technology and the project site have been chosen mostly on
     the basis of narrowly defined (financial) cost minimization and plant efficiency,
     giving a lower priority to environmental considerations
   No siting or technology choices should be eliminated until completion of the
     detailed EIA: while the EMP reduces the impacts, some of them might have been
     completely avoided with a different site and/or technology

Lesson learned:
    EMP is not an isolated tool but should be part of the overall good environmental
      management and decision making
    Environmental mitigation is an integral part of decision making and must be
      considered simultaneously with the analysis of alternative technological and siting
      choices
    The project team may prepare a state of the art EMP, but may still be in a
      vulnerable position if the upstream decision making is perceived to be flawed
    In making choices about the technology, it is more prudent to err on the
      conservative side and require the technology consistent with the higher degree of
      environmental protection: the absence of local environmental restrictions on
      certain technology in Country X is a weak excuse if the environmental credentials
      of the technology are known to be questioned
    Economic (including environmental) rather than just financial costs/benefits need
      to be part of the analysis of alternatives.
                                              8
               Annex 1. Environmental Management Plan

                                    A. Mitigation Plan

                                       Construction Phase Mitigation
Activity       Potential             Mitigation Measure                                       Responsi     Approximate
               Impacts                                                                        bility       Cost
Site Work –    Loss of Trees         There are few trees that are potentially affected by     EPC          $5,000
Clearing and                         the site work. No trees will be cut that do not          Contractor
Grading                              interfere with the site work. The wood that is cleared
                                     will be made available to local residents.
Site Work –    Interference with     Final site grade will facilitate drainage and avoid      EPC          $40,000
Clearing and   Natural Site          flooding and pooling. A site drainage plan will be       Contractor
Grading        Drainage – Soil       developed that protects against erosion. Protecting
               Erosion               stockpiles through the use of silt fencing and reduced
                                     slope angles will also minimize soil erosion during
                                     construction.
Site Work –    Noise from            Construction equipment shall meet the applicable         EPC          Minor
Clearing and   Equipment             standard in EU Directive 2000/14/EC of May 2000.         Contractor
Grading                              The Directive applies to the manufacturer of the
                                     noise emitting equipment. Work involving nuisance
                                     noise will be minimized during locally recognized
                                     days of rest and at night. All equipment will be
                                     maintained in good working order. Construction
                                     activities that generate significant noise levels will
                                     be limited to reasonable daytime hours. These
                                     conditions will be specified in the bidding
                                     documents.
Site Access    Dust and Noise        Watering of disturbed site areas on an as needed         EPC          $5,000
Upgrades -     from Equipment        basis will minimize dust. No equipment noise will        Contractor
Roadwork                             exceed the applicable standard in EU Directive
                                     2000/14/EC of May 2000. This Directive applies to
                                     the manufacturer of the noise emitting equipment.
                                     Work involving nuisance noise will be minimized
                                     during locally recognized days of rest and at night.
                                     All equipment will be maintained in good working
                                     order. Construction activities that generate
                                     significant noise levels will be limited to reasonable
                                     daytime hours. These conditions will be specified in
                                     the bidding documents.
Dewatering     Sediment and Oil      Where site excavations require dewatering, the           EPC          $7,500
               and Grease loading    excess water will be visually inspected for oil          Contractor
               to Nearby             contamination prior to discharge to the site drainage
               Waterways             system. Oil contaminated water will require
                                     treatment prior to disposal. Water potentially
                                     contaminated with oil will be routed to the onsite
                                     water oil/water separator (OWS). Package OWS
                                     typically remove oil below the manufacturers
                                     guarantee of 10 ppm.
Borrow Site    Conflicts with        Borrow area will avoid agricultural areas.               EPC          Minor
               Present Land Use                                                               Contractor
Borrow Site    Disturbance to        All permits and approvals will be obtained from the      EPC          $2,000
               Local Community       appropriate authority prior to operating a borrow        Contractor
                                     site.
Borrow Site    Unsightly Area        Borrow areas will be reworked to blend into the          EPC          $4,000
                                                 9
                    Finished with       surroundings. Revegetation will be performed using        Contractor
                    Borrow Activity     local plants. All slopes and working faces will be
                                        returned to a stable condition.
Disposal of         Disturbance to      Local authorities should approve the disposal site. It    EPC          $2,000
Excavated           Land                will not interfere with local land use. Vegetation will   Contractor
Material if                             be performed using local plants. All slopes at a
Necessary                               borrow disposal site will be graded to a stable
                                        condition.
Transmission        Disturbance to      The amount of land used for the transmission              EPC          Minor
Interconnection     Land                interconnection will be minimized. No agricultural        Contractor
                                        lands will be disturbed by the transmission line.
                                        Private land acquisition will follow the procedures
                                        that are based on Country X Law No. XXXX, dated
                                        XXXX, etc.
Provision of        Reduced Water       The water supply for use in construction of the           EPC          $5,000
Potable Water       Supply to Area      generation facility must be monitored to ensure that      Contractor
                    Residence           it does not adversely affect other water uses in the
                                        area.
Handling and        Potential Health    All employees will undergo health and safety              EPC          $12,000
Storage of Fuels    and Safety          training. Those dealing with hazardous materials will     Contractor
and Hazardous       Concerns            receive specific training in handling the materials.
Materials                               There will be no ash generated from the oil
                                        combustion. Hazardous waste generated will
                                        primarily be from waste lubricants and rags from
                                        clean-up and maintenance activity.
Handling and        Soil and Water      Fuel storage tanks will have secondary containment        EPC          $30,000
Storage of Fuels    Contamination       with sufficient volume to contain a spill from the        Contractor
and Hazardous       from Spills         largest tank in the containment structure. The
Materials                               containment area will have a means of removing
                                        accumulated water. Drains will be routed through the
                                        site oil/water separator. A spill and emergency
                                        response plan will be developed and put in place
                                        prior to commencement of construction. This plan
                                        must be acceptable to NPC and the World Bank.
Aggregate Source    Reduced Local       No new sources will be developed. Existing quarries       EPC          Minor
                    Resources           will be utilized.                                         Contractor
Batch Plant –       Noise, Dust, and    Storm water runoff will be directed to the site           EPC          $2,000
Concrete and        Potential Runoff    drainage system. Noise will be controlled to an           Contractor
Asphalt             Concerns            acceptable level. Dust bags will be installed as
                                        necessary. The EPC specification will require that
                                        the batch plant owner/operator must hold valid
                                        operating permits.
Construction Work   Influx of Workers   Influx of workers is not expected to exceed 400           EPC          $10,000
Force               Creating Pressure   individuals. Workers will be housed in Z and bussed       Contractor
                    on Housing and      to the site. A first aid station will be provide for
                    Other Resources     workers onsite.
Delivery of         Increased Traffic   Upgrade of the main access road to plant will have        EPC          $200,000
Equipment and       and Dust            positive effect on local traffic. Dust from the road      Contractor
Materials                               will be minimized with water during construction
                                        and by providing paved surface. Trucks will be
                                        tarped when carrying load. Road speeds will be
                                        controlled to reduce the potential for accidents.
Solid Waste         Potential Health    Solid waste will be stored in a special area and          EPC          $20,000
Disposal            Concerns            disposed of using a licensed contractor.                  Contractor
Liquid Waste        Potential Water     A packaged sewage treatment facility will be              EPC          $95,000
Disposal            Contamination       provided for the site. No direct discharge of             Contractor
                                        untreated liquid waste will be allowed.
                                                     10
Intake and Outfall    Disturbance of         Main mitigation is in siting the exact location of the   EPC          $200,000
Construction          Aquatic Resources      intake and outfall. Construction wastes will not be      Contractor
                                             disposed of in the bay. Intake design will follow the
                                             USEPA Draft Guidance for Evaluating Adverse
                                             Impact of Cooling Water Structures on the Aquatic
                                             Environment and the European Commission IPPC
                                             reference Document on the Best Available
                                             Techniques for Industrial Cooling Systems. Dredged
                                             materials and water will be monitored for mercury.
                                             Dredged materials and water found to have a
                                             mercury content above the guidance found in
                                             Evaluation of Dredged Material Proposed for Ocean
                                             Disposal (USEPA 503/8-91/001) will be segregated
                                             and disposed of in a secure hazardous waste landfill.
                                             Liquid wastes will be sent for offsite treatment.
Intake and Outfall    Interference to        Construction period will be scheduled to minimize        EPC          Minor
Construction          Coastal Fishing        impact on fishermen.
Intake and Outfall    Interference to        All barges and buoys will be clearly marked and          EPC          $20,000
Construction          Navigation             illuminated at night. Proper authorization will be       Contractor
                                             obtained prior to commencement of offshore work.
Intake and Outfall    Sediment Release       Intake and outfall will be constructed with the intent   EPC          $50,000
Construction                                 to minimize the release of sediments to the bay.         Contractor
Final Site            Aesthetics             Topsoil will be graded and planted as appropriate.       EPC          $5,000
                                                                                                      Contractor



                                                 Operation Phase Mitigation
Activity              Potential              Mitigation Measure                                       Responsi     Approximate
                      Impacts                                                                         bility       Cost
Distillate Fuel Oil   Air emissions of       The combustion turbines will employ state of the art     EPC          $1,000,000
Combustion            NOx, SO2, CO,          control technology for all pollutants. NOx will be       Contractor
                      particulate matter,    controlled using low-NOx burners and water               /NPC
                      and volatile           injection. SO2 will be controlled by firing only low-
                      organic                sulfur (<0.1% by wt.) distillate fuel oil. [Employing
                      compounds that         good combustion control will control CO, particulate
                      can adversely          matter, and volatile organic compounds. The plant
                      affect human           will feature stack heights that conform to good
                      health and the         engineering practice (GEP) stack height to facilitate
                      environment.           dispersion of emitted gases]. The plant stack height
                                             will be at least 45 m to facilitate dispersion of
                                             emitted gases.
Equipment             Noise from             The combustion turbines will be enclosed in an           EPC          $180,000
Operation             Equipment              acoustic enclosure to ensure that noise does not         Contractor
                                             exceed 85 dB(A) at 1 m. [Workers in close                /NPC
                                             proximity to this equipment will be required to use
                                             hearing protection]. Offsite noise will not exceed 70
                                             dB(A). There is no residential housing in the area of
                                             the site.
Cooling Water         Entrainment of         Final location to be made to minimize impact on          EPC
Intake                larval fish,           aquatic environment. Bar screen intake screens will      Contractor
                      shellfish, and other   be utilized. Final screening with traveling water
                      marine fauna.          screens at cooling water pump suctions will be
                                             employed. An inlet velocity less than 1 m/s will be
                                             used to minimize entrainment.

Cooling Water         Impingement of         See above
                                                  11
Intake             adult and juvenile
                   fish and shellfish
Cooling Water      Thermal effects on     Thermal discharge modeling demonstrates that the         NPC          Minor
Discharge          marine fauna           thermal impact from the discharge is less than or
                                          equal to 3ºC after mixing zone. This ensures that
                                          there is minimal impact from the discharge. The
                                          discharge will be designed to minimize or eliminate
                                          re-suspension of sediment in the vicinity of the
                                          outfall. If the impacts are found to be greater than
                                          predicted after operation begins, modifications to the
                                          diffuser operation can be made to increase mixing
                                          and reduce impacts accordingly.
Cooling Water      Chemical effects       Cooling water will be treated with sodium                NPC          Minor
Discharge          on aquatic             hypochlorite to eliminate fouling. Residual chlorine
                   ecosystem              in the effluent will meet World Bank guidelines (0.2
                                          mg/l)
Fresh Water        Reduce water           The plant will supply its own service water supply       EPC          $1,000,000
Supply             supply to the local    from the Blue Sea through a membrane desalination        Contractor
                   community              system                                                   /NPC
Sewage Treatment   Discharge of           A sewage treatment facility will be provided at the      EPC
                   nutrients and other    plant and discharge of treated effluent will be          Contractor
                   containments to        combined with the cooling water discharge. The           /NPC
                   waterways              sewage treatment plant will provide secondary
                                          treatment either through aerobic or anaerobic
                                          treatment.
Local Community    Stress on the local    The infrastructure of the town of Z will be able to      NPC          Minor
Services           infrastructure         accommodate the amount of new residence of new
                                          workers in the plant even if all workers come from
                                          outside the country. However, it is anticipated that
                                          many of these workers will be from the town Z area.
Handling and       Delivery of fuel oil   A spill response plan and necessary response             NPC          $50,000
Storage of Fuels   could result in a      equipment will be provided. The plan must be
and Hazardous      spill that would       acceptable to NPC and the financing institutions. It
Materials          impact the aquatic     is anticipated that as many as 30 deliveries will be
                   and coastal            made per year by a barge with minimum capacity of
                   environment            3,000 m3. Monitoring and enforcement of sea
                                          conditions under which a vessel may make deliveries
                                          will be part of the plant procedures and implemented
                                          through the delivery contract.
Handling and       Pipeline between       The pipeline will be regularly inspected and             NPC          $15,000
Storage of Fuels   the terminal and       maintained. An inspection and maintenance program
and Hazardous      the site could         will be developed as part of the plant operating
Materials          rupture and impact     procedures.
                   the aquatic and
                   coastal
                   environment
Handling and       Oil storage tanks      Oil storage tanks will include secondary containment     EPC
Storage of Fuels   could fail and         of sufficient size to contain 110% of the contents of    Contractor
and Hazardous      result in adverse      the largest tank. A means of removing rainwater will     /NPC
Materials          impacts on the soil    be included. Drains will be routed through the plant
                   and groundwater        oil/water separator.
                   resources
Hazardous Waste    Ground water           Small amount are anticipated. Waste will be handled      NPC          Minor
                   pollution. Health      in accordance with Country X regulations and sent to
                   and safety risk.       a dedicated facility properly equipped for receiving
                                          these materials.
Transmission of    Disturbance to         Clearing for transmission lines will be minimized.       NPC          Minor
                                           12
Power        Land                   Lines will be routed to minimize the impact on
                                    residential areas. The electromagnetic field (EMF)
                                    emitted by the line will be checked.
Aesthetics   Aesthetically          Some disruption is unavoidable. The plant will be    NPC   $40,000
             displeasing            shielded by trees and set back from the ocean.
             appearance may         Comprehensive landscaping will be used to enhance
             affect the tourist     the appearance of the generation facility.
             appeal of the coast.
                                                   13
                                        B. Monitoring Plan

                                      Monitoring Plan for Construction
Activity                            Monitored Parameters                                              Responsibility
Site Work – Clearing and            The practice of sharing the wood that is cleared with the local   EPC Contractor
Grading                             residents will be monitored
Site Work – Clearing and            Protecting stockpiles through the use of silt fencing and         EPC Contractor
Grading                             reduced slope angles to minimize soil erosion during
                                    construction will be monitored to ensure that the practice
                                    conforms to site drainage plan.
Site Work – Clearing and            See detail provided in the Final EIA on Air Quality and Site      EPC Contractor
Grading                             Drainage.
Site Access Upgrades -              See detail provided in the Final EIA on Air Quality and Site      EPC Contractor
Roadwork                            Drainage.
Dewatering                          Maintain a record of visual inspection of excess water from       EPC Contractor
                                    dewatering activity
Borrow Site                         Monitor and document that borrow areas avoid agricultural         EPC Contractor
                                    areas.
Borrow Site                         Obtain and maintain applicable permits.                           EPC Contractor
Borrow Site                         Document final condition of borrow areas to ensure that they      EPC Contractor
                                    have been reworked to blend into the surroundings and are
                                    safe.
Disposal of Excavated Material if   Monitor and document the use of borrow material.                  EPC Contractor
Necessary
Disposal of Excavated Material if   Obtain and maintain applicable permits. Document final            EPC Contractor
Necessary                           condition of borrow areas to ensure that they have been
                                    reworked to blend into the surroundings and are safe.
Transmission Interconnection        Document the amount of land used for the transmission             EPC Contractor
                                    interconnection and that no agricultural lands are disturbed.
Provision of Potable Water          Monitor water supply to ensure that it does not adversely         EPC Contractor
                                    affect other water uses in the area.
Handling and Storage of Fuel and    Document health and safety training.                              EPC Contractor
Hazardous Materials
Handling and Storage of Fuel and    Spill Response Plan                                               EPC Contractor
Hazardous Materials
Aggregate Source                    Records will be kept on quarries utilized                         EPC Contractor
Batch Plant – Concrete and          Noise will be monitored once, at both day and night, for an       EPC Contractor
Asphalt                             eight-hour period at the perimeter of the site during the peak
                                    of construction activity. In addition, spot monitoring of
                                    various pieces of construction equipment will take place to
                                    ensure that noise emissions are not excessive. The site
                                    construction manager will maintain records of any noise
                                    complaints received during the construction process. Visual
                                    inspection of dust emissions will be performed daily with
                                    records of results.
Construction Work Force             A first aide station will be provided for workers onsite.         EPC Contractor
Delivery of Equipment and           Visual inspection of dust from road construction will be          EPC Contractor
Materials                           ongoing and application of water will be employed to suppress
                                    dust during periods of high dust generation. Road speeds will
                                    be clearly posted.
Solid Waste Disposal                Contact for proper disposal of solid waste will be kept onsite.   EPC Contractor
                                    Records on the date of disposal and the amount and type of
                                    solid waste disposed will be maintained.
Liquid Waste Disposal and           Monitoring of the appropriate operational parameters will be      EPC Contractor
Sewage Treatment                    performed as per the manufacturer’s requirements. Oil water
                                    separators will be equipped with an oil level indicator and
                                                  14
                                  inspected daily. Sewage treatment may include portable
                                  facilities. If so, the containment levels will be monitored daily
                                  and the contents disposed of properly when full level is
                                  reached. If the sewage treatment consists of the packaged
                                  treatment facility that will ultimately be placed into service for
                                  the facility, then the appropriate parameters such as airflow,
                                  temperature, and discharge biological oxygen demand (BOD)
                                  should be monitored.
Intake and Outfall Construction   Documentation on the siting study performed to locate the            EPC Contractor
                                  intake and discharge will be maintained onsite.
Intake and Outfall Construction   Documentation on the siting study performed to locate the            EPC Contractor
                                  intake and discharge will include a construction schedule and
                                  information and information on historic fishing activity. A
                                  copy of this report will be maintained onsite.
Intake and Outfall Construction   Documentation of construction authorization will be                  EPC Contractor
                                  maintained onsite.
Intake and Outfall Construction   The construction technique and means minimizing sediment             EPC Contractor
                                  releases will be documented and a copy maintained onsite.
                                  Monitoring of mercury in sediments will be carried out if
                                  excavating and dredging are performed as part of the intake
                                  and outfall construction.
Final Site                        A plan for final grading and landscaping of the site will be         EPC Contractor
                                  developed and maintained onsite.



                                      Monitoring Plan for Operation
Activity                          Monitored Parameters                                                 Responsibility
Distillate Fuel Oil Combustion    Fuel sulfur content will be monitored to ensure that it is less      NPC
                                  than or equal to 0.1% by weight. Sampling and analysis will
                                  be performed on each delivery received.

                                  An initial performance test will be performed to confirm the
                                  emissions from the plant do not exceed the amounts listed in
                                  this report. The stack will include continuous monitoring of
                                  NOx and opacity emissions.
Equipment Operation               Baseline noise monitoring will be conducted prior to operation       NPC
                                  of the plant, both at the plant and at predefined receptor
                                  locations. Then, offsite, far field noise monitoring will be
                                  performed at those locations once during operation of the
                                  facility to confirm that the operation conforms to 70 dB(A)
                                  limit.

                                  Workers in close proximity to the turbines or other noise
                                  emitting equipment will wear hearing protection in accordance
                                  with a written health and safety plan. A copy of the health and
                                  safety plan will be maintained onsite.
Cooling Water Intake              Documentation will be maintained onsite concerning the final         NPC
                                  design of the water intake including the inlet velocity.
Cooling Water Intake              See above                                                            NPC
Cooling Water Discharge           The condenser discharge temperature will be monitored to             NPC
                                  ensure the operation of the facility meets the maximum
                                  temperature discharge described in this report. Quarterly
                                  monitoring of the temperature at the discharge will be
                                  performed to confirm the maximum discharge temperature
                                  used in this analysis. In addition, pH and residual chlorine
                                  levels will be monitored on a continuous basis. Suspended
                                                15
                                solids and oil and grease will be measured semiannually.
Fresh Water Supply              The use of water from the desalination plant will be confirmed       NPC
                                through maintaining the pertinent plant design documents
                                onsite.
Sewage Treatment                Monitoring of the appropriate operational parameters will be         NPC
                                performed as per the manufacturer’s requirements. If the
                                sewage treatment consists of the packaged aerobic treatment
                                system then the airflow, temperature, and discharge biological
                                oxygen demand (BOD) should be monitored at a minimum. If
                                the system consists of an anaerobic treatment process, then
                                process temperature, and discharge BOD should be monitored
                                at a minimum. All associated values, pumps, blowers, and
                                filters will be visually inspected weekly.
Local Community Services        Maintain record on complaints concerning stress on the local         NPC
                                community services created by the plant operation.
Handling and Storage of Fuels   Maintain records to demonstrate adherence to the spill               NPC
and Hazardous Materials         response plan.
Handling and Storage of Fuels   Maintain record of pipeline inspections. Inspections should          NPC
and Hazardous Materials         include daily inspections of visible fittings, valves, and joints.
                                Annual pressure testing of the line must be performed to
                                verify the pipeline integrity.
Handling and Storage of Fuels   Maintain the pertinent design information onsite. Records on         NPC
and Hazardous Materials         the date of discharge, approximate quantity of discharge, and
                                final disposition of the discharge. Oil water separators must be
                                equipped with an oil level indicator and inspected regularly.
                                Daily inspections of the levels in the oil water separators must
                                be performed. Weekly inspections of the proper function of
                                the oil level indicator must be performed.
Transmission of Power           The electric and magnetic field (voltage and magnetic                NPC
                                gradients close to an energized transmission line) emitted by
                                the interconnection line will be monitored once at four
                                locations along the line. Measurement must take place when
                                the line is fully energized. The location of the measurements
                                will be at the plant switchyard, at the terminating substation
                                and two places in between to be determined by NPC.
Aesthetics                      The property maintenance records will be maintained onsite.          NPC

Additional Plans and Studies

There are a number of additional plans and studies recommended throughout the EIA,
many of which include the collection of site specific data. The plans required are to
establish operational and response procedures. The studies are intended to both verify
some findings in the Final EIA and generate useful information for design and execution
of the project. The additional plans and studies are as follows:
     Oil spill response, recovery, and mitigation plan
     Emergency response plan
     Site drainage and grading plan
     Community impact action plan (only if deemed necessary)
     Health and safety plan
     Noise and vibration plan including baseline monitoring
     Waste management plan
     Simplified employee health and safety manual
     Environmental assessment of the final transmission line
                                        16
   Ambient air monitoring including meteorological data, sulfur dioxide, oxides of
    nitrogen, and particulate matter
   Cooling water intake and discharge structure location study including fish studies,
    seabed flora and fauna, sea temperature monitoring, sediment sampling and
    analysis for mercury contamination in areas of potential dredging.
                                                                                         17



Annex 2. Environmental Requirements for the EPC Contractor included in the Bidding Documents
A. Mitigation Plan
                             Item no.                     Potential
  Category                                  Activity       Effects                         Mitigation Plan                    Responsibility
                                        Site Access    Stress on local   Numerous small bridges and culverts along the            EPC
                                        Upgrades -     infrastructure    route will also require upgrade to support the        Contractor
                                        Roadwork                         high loads associated with the heavy-haul of the
                                                                         turbine-generator components. Sediment control
                               1.1                                       measures, (i.e. sediment sampling and analysis)
                                                                         may also be required for road improvement
                                                                         activities, particularly at stream crossings.
     1. Planning/Logistics




                                        Modification   Stress on local   Several low hanging distribution power lines             EPC
                                        of existing    infrastructure    will require modification to allow the passage of      Contractor
                               1.2      transmission                     large components and construction equipment.
                                        lines                            Any permits required for this work should be
                                                                         obtained from the proper authority.

                                        Borrow Site    Disturbance to    Soil borrow sites should be carefully selected to        EPC
                                                       Local             assure that the sites can be properly regarded and     Contractor
                               1.3                     Community         revegetated after completion of the project.


                                        Construction   Influx of         Influx of workers is not expected to exceed 350          EPC
                                        Work Force     Workers           to 500 individuals. Workers shall be housed in         Contractor
                                                       Creating          the town of Z and bussed to the Site. A first aid
                               1.4                     Pressure on       station shall be provided for workers onsite.
                                                       Housing and
                                                       Other
                                                       Resources
                                                       18



      Handling and   Potential         All employees shall undergo health and safety         EPC
      Storage of     Health and        training. Those dealing with hazardous and toxic    Contractor
      Fuels and      Safety            materials shall receive specific training in
      Hazardous      Concerns          properly handling, storage and disposal of the
1.5   Materials                        materials. There shall be no ash generated from
                                       the oil combustion. Hazardous waste generated
                                       shall primarily be from waste lubricants and rags
                                       from clean-up and maintenance activity.

      Solid Waste    Potential         Solid waste shall be stored in a special area and     EPC
1.6   Disposal       Health            disposed of using licensed contractors.             Contractor
                     Concerns
      Liquid Waste   Potential         A packaged sewage treatment facility shall be         EPC
      Disposal       Water             provided for the site. No direct discharge of       Contractor
1.7                  Contamination     untreated liquid waste shall be allowed.


      Intake and     Interference to   Water construction activities associated with the     EPC
      Outfall        Coastal           pipelines for the cooling water intake and          Contractor
      Construction   Fishing           discharge systems should be performed during
                                       periods of low fish activity. Marine disposal of
1.8                                    excavated material should be timed to be outside
                                       of the upwelling period. NPC to advice EPC-
                                       Contractor regarding disposal sites.


      Intake and     Interference to   All barges and buoys shall be clearly marked and      EPC
      Outfall        Navigation        illuminated at night. Proper authorization shall    Contractor
1.9   Construction                     be obtained prior to commencement of offshore
                                       work.
                                                                                 19



                              Transmission      Disturbance to   The amount of land used for the transmission           EPC
                              Interconnection   Land             interconnection will be minimized. No                Contractor
                                                                 agricultural lands will be disturbed by the
                                                                 transmission line. Private land acquisition will
                                                                 follow the procedures that are based on Country
                                                                 X’s Laws Nos. XXXX. The width of the corridor
                                                                 for the transmission line should be no more than
                                                                 60m. Any wood vegetation which must be
                                                                 cleared in the transmission line corridor shall be
                                                                 made available to the local residents. Clearing
                                                                 for transmission lines will be minimized. Lines
                        2.1                                      will be routed to minimize the impact on
2. Power Plant Design




                                                                 residential areas. The electromagnetic field
                                                                 (EMF) emitted by the line will be checked. If
                                                                 possible the area under transmission line should
                                                                 not be cleared.




                              Handling and      Soil and         Fuel storage tanks will have secondary                 EPC
                              Storage of        Water            containment with sufficient volume to contain a      Contractor
                              Fuels and         Contamination    spill from the largest tank in the containment
                              Hazardous         from Spills      structure (110% of the contents of largest tank).
                              Materials                          The containment area will have a means of
                                                                 removing accumulated water. Drains will be
                        2.2                                      routed through the site oil/water separator.
                                                                 Proper equipment must be available on site for
                                                                 the workers to contain and clean up spills of
                                                                 chemicals, oil and fuel in case of an emergency.
                                                        20



      Intake and      Disturbance of   Main mitigation is in siting the exact location of       EPC
      Outfall         Aquatic          the intake and outfall. Construction wastes will       Contractor
      Construction    Resources        not be disposed of in the bay. Intake design will
                                       follow the USEPA Draft Guidance for
                                       Evaluating Adverse Impact of Cooling Water
                                       Structures on the Aquatic Environment and the
                                       European      Commission       IPPC      reference
                                       Document on the Best Available Techniques for
                                       Industrial Cooling Systems. Dredged materials
                                       and water will be monitored for mercury.
                                       Dredged materials and water found to have a
2.3                                    mercury content above the guidance found in
                                       Evaluation of Dredged Material Proposed for
                                       Ocean Disposal (USEPA 503/8-91/001) will be
                                       segregated and disposed of in a secure hazardous
                                       waste landfill. Liquid wastes will be sent for
                                       offsite    treatment.     Experienced       marine
                                       contractors with environmental procedure in
                                       place should be contract ted to perform all work.




      Cooling Water   Chemical         Cooling water will be treated with sodium                EPC
      Discharge       effects on       hypochlorite to eliminate fouling. Residual            Contractor
                      aquatic          chlorine in the effluent will meet World Bank
2.4                   ecosystem        guidelines (0.2 mg/liter). PH and residual
                                       chlorine levels shall be monitored on a
                                       continuous basis.

      Cooling Water   Thermal          The discharge will be designed to minimize or            EPC
      Discharge       effects on       eliminate re-suspension of sediment in the             Contractor
                      marine fauna.    vicinity of the outfall. If the impacts are found to
2.9                                    be greater than predicted after operation begins,
                                       modifications to the diffuser operation shall be
                                       made to increase mixing and reduce impacts
                                       accordingly.
                                                          21



      Cooling Water     Entrainment       Final location to be made to minimize impact on        EPC
      Intake            of larval fish,   aquatic environment. Bar screen intake screens       Contractor
                        shellfish, and    with spacing of 25cm will be utilized. Final
2.5                     other marine      screening with traveling water screens at cooling
                        fauna.            water pump suctions will be employed. An inlet
                                          velocity less than 1 m/s to will be used to
                                          minimized entrainment.

      Intake and        Sediment          Intake and outfall will be constructed with the        EPC
2.6   Outfall           Release           intent to minimize the release of sediments to the   Contractor
      Construction                        bay.
      Distillate Fuel   Air emissions     The combustion turbines will employ state of the       EPC
      Oil               of NOx, SO2,      art control technology for all pollutants. NOx       Contractor
      Combustion        CO,               shall be controlled using water injection. SO2
                        particulate       shall be controlled by firing only low sulfur
                        matter, and       (<0.1% by wt.), distillate fuel oil. Employing
                        volatile          good combustion control will control CO,
                        organic           particulate matter, and volatile organic
2.7                     compounds         compounds. The plant will feature stack heights
                        that can          that conform to good engineering practice (GEP)
                        adversely         stack height to facilitate dispersion of emitted
                        affect human      gasses. The stack height will be approximately
                        health and the    50 m from grade.
                        environment.


      Equipment         Noise from        The combustion turbines will be enclosed in an         EPC
      Operation         Equipment         acoustic enclosure to ensure that noise does not     Contractor
                                          exceed 85 dB(A) at 1 m. Workers in close
                                          proximity to this equipment will be required to
2.8                                       use hearing protection. Offsite noise will not
                                          exceed 70 dB(A). The noise requirement stated
                                          in the technical proposal shall be respected.
                                                       22



       Fresh Water   Reduce water      The plant will supply its own service water             EPC
       Supply        supply to the     supply from the Blue Sea through a membrane           Contractor
2.10                 local             desalination system.
                     community.
       Storm water   Site drainage -   All buildings shall be provided with suitable           EPC
                     soil erosion      means for disposal of storm water. This shall be      Contractor
                                       accomplished by either use of gutters or down
                                       pipes or gargoyles as appropriate to the
                                       building's design and usage. All such drainage
2.11
                                       shall be routed to the site drainage system. It is
                                       important that all culverts be sized to adequately
                                       pass expected sreamflow under flood conditions.


                                       Any marine disposal of excavated material               EPC
2.12                                   should be done away from sensitive fisheries or       Contractor
                                       breeding grounds.
                                       Marine contractors utilized on the project will be      EPC
                                       required to demonstrate use of BMP’s to               Contractor
2.14                                   minimize the environmental impact of their
                                       work. It is up to the EPC contractor to identify
                                       and avoid sensitive marine environments.

       Sewage        Discharge of      A sewage treatment facility will be provided at         EPC
       Treatment     nutrients and     the plant and discharge of treated effluent will be   Contractor
                     other             combined with the cooling water discharge. The
                     contaminants      sewage treatment plant will provide secondary
                     to waterways      treatment either through aerobic or anaerobic
2.15
                                       treatment. The EPC contractor will be
                                       responsible for the design of the treatment
                                       system to meet the effluent standards stated in
                                       this specification.
                                                                                 23



                                 Aesthetics     Aesthetically    Some disruption is unavoidable. The plant will          EPC
                                                displeasing      be shielded by trees and set back from the ocean.     Contractor
                                                appearance       Comprehensive landscaping will be used to
                          2.17                  may affect the   enhance the appearance of the generation
                                                tourist appeal   facility.
                                                of the coast.

                                 Site Work –    Loss of Trees    There are few trees that are potentially affected       EPC
                                 Clearing and                    by the Site work. No trees will be cut that do not    Contractor
                          3.1    Grading                         interfere with the site work. The wood that is
    3. Site Preparation




                                                                 cleared will be made available to local residents.


                                 Site Work –    Contamination    Vegetative removal should be done manually              EPC
                          3.2    Clearing and   of soil          without the use of herbicides.                        Contractor
                                 Grading
                                 Borrow Site    Conflicts with   Borrow area shall avoid agricultural areas.             EPC
                          3.3                   Present Land                                                           Contractor
                                                Use
                                 Borrow Site    Disturbance to   All permits and approvals will be obtained from         EPC
                          3.4                   Local            the appropriate authority prior to operating a        Contractor
                                                Community        borrow area on or off site.
                                 Site Work –    Interference     Final site grade will facilitate drainage and avoid     EPC
4. Construction /
 Commissioning




                                 Clearing and   with Natural     flooding and pooling. Protecting stockpiles           Contractor
                                 Grading        Site Drainage    through the use of silt fencing and reduced slope
                                                - Soil Erosion   angles will also minimize soil erosion during
                                                                 construction. Measures such as seeding may also
                          4.1
                                                                 be implemented to minimize erosion of
                                                                 stockpiles.
                                                      24



      Site Work –      Noise from     Construction equipment shall meet the                 EPC
      Clearing and     Equipment      applicable standard in EU Directive 2000/14/EC      Contractor
      Grading - site                  of May 2000. This Directive applies to the
      access and                      manufacturer of the noise emitting equipment.
      roadwork                        Work involving nuisance noise will be
                                      minimized during locally recognized days of rest
4.2                                   and at night. All equipment will be maintained in
                                      good working order. Construction activities that
                                      generate significant noise levels will be limited
                                      to reasonable daytime hours. These conditions
                                      shall be specified in the bidding documents.



      Site Work –      Dust from      Watering of disturbed site areas on an as needed      EPC
      Clearing and     Equipment      basis will minimize dust. Fugitive dust emissions   Contractor
      Grading - site                  from roads and site work can be eliminated on
4.3   access and                      minimized by applying water on an as needed
      roadwork                        basis to dirt roads and exposed construction
                                      areas during the dry season (oil will not be used
                                      as a dust suppressant).

      Dewatering       Sediment and   Where site excavations requiring dewatering, the      EPC
                       Oil and        excess water will be visually inspected for oil     Contractor
                       Grease         contamination prior to discharge to the site
                       loading to     drainage system. Oil contaminated water will
4.4                    Nearby         require treatment prior to disposal. Water
                       Waterways      potentially contaminated. Any visible oil and
                                      grease shall be skimmed off the surface using
                                      absorbent pads.

      Dewatering       Sediment to    Measures that may be taken to remove settle able      EPC
                       nearby         solids prior to discharging water from the site     Contractor
4.6                    waterways      include the use of sediment sumps or other
                                      sediment control structures. An oil water
                                      separator shall be installed.
                                                          25



       Site Work –      Sediment to       Exposed soil surfaces should be revegetated as         EPC
       Clearing and     nearby            soon as possible to further minimize the potential   Contractor
4.8    Grading - site   waterways         for erosion and sediment releases.
       access and
       roadwork

                        Potential         The construction mitigation plan contains              EPC
                        Mercury           sediment sampling and analysis requirements to       Contractor
4.9                     release from      ensure that contaminated material is handled
                        dredging          properly.
       Segregation of   Contamination     The following mitigation measures should be            EPC
       liquid wastes    of surrounding    employed: Segregate all waste oils and               Contractor
                        surface water     lubricants from maintenance of construction
                        and               equipment and dispose of these wastes properly;
4.10                    groundwater       inspect secondary containment areas and other
                                          sumps regularly and properly remove oil from
                                          the surface of the accumulated material.


       Disposal of      Interference to   The amount of material to be disposed of will be       EPC
       Excavated        Natural           minimized by borrowing only as much as is            Contractor
4.11   Material if      Drainage          needed.
       Necessary
       Disposal of      Disturbance to    Local authorities should approve the disposal          EPC
       Excavated        Land              site. It will not interfere with local land use.     Contractor
4.12   Material if                        Vegetation will be performed using local plants.
       Necessary                          All slopes at a borrow disposal site will be
                                          graded to a stable condition.

       Provision of     Reduced           The water supply for use in construction of the        EPC
       Potable Water    Water Supply      generation facility must be monitored to ensure      Contractor
4.13                    to Area           that it does not adversely affect other water uses
                        Residence         in the area.
                                                                      26



                      Aggregate       Reduced         No new sources will be developed. Existing              EPC
               4.14   Source          Local           quarries will be utilized.                            Contractor
                                      Resources
                      Batch Plant -   Noise, Dust,    Storm water runoff will be directed to the site         EPC
                      Concrete and    and Potential   drainage system. Noise will be controlled to an       Contractor
                      Asphalt         Runoff          acceptable level. Dust bags will be installed as
               4.15                   Concerns        necessary. The EPC specification will require
                                                      that the batch plant owner/operator must hold
                                                      valid operating permit.

                      Delivery of     Increased       Scheduling the delivery of major plant                  EPC
                      Equipment and   Traffic and     components for off-peak traffic times can also        Contractor
               4.16   Materials       Dust            help to mitigate impacts on the local traffic flow.


                      Delivery of     Increased       Upgrade of the main access road to plant will           EPC
                      Equipment and   Traffic and     have positive effect on local traffic. Dust from      Contractor
                      Materials       Dust            the road will be minimized with water during
               4.17                                   construction and by providing paved surface.
                                                      Trucks will be tarped when carrying load. Road
                                                      speeds will be control

                      Borrow Site     Unsightly       On and off site borrow areas will be reworked to        EPC
                                      Area Finished   blend into the surroundings. Renegotiation will       Contractor
Construction




                                      with Borrow     be performed using notice plant species. All
 5. End of




               5.1
                                      Activity        slopes and working faces will be returned to a
                                                      stable condition.

                      Final Site      Aesthetics      Topsoil will be graded and planted as                   EPC
               5.2                                    appropriate.                                          Contractor
                                                                                            27



B. Monitoring Plan
                                                                                                                                                    Responsibility
                                                                                                                                                    - Submission      Approval
  Category                   Item no.       Activity                    Plan / Monitored Parameter                      Monitoring Schedule               Date           by
                                        Transmission      An environmental assessment of the transmission line                                         NPC Env.         NPC
                                        line routing      will be performed when the final transmission line route                                     Consultant
                               1.1                        is set.                                                                                    8 weeks after
                                                                                                                                                    finalization of
                                                                                                                                                      line routing
                                        Handling and      Oil spill response, recovery and mitigation plan.             Audit storage and                EPC            NPC
                                        Storage of        All related activities shall be tracked and documented.       handling records monthly;     Contractor
                               1.2      Fuels and                                                                       revise plan as required.    4 weeks before
                                        Hazardous                                                                                                     excavation
     1. Planning/Logistics




                                        Materials
                                        All site          Emergency response plan. All related actives shall be         Audit records monthly;           EPC            NPC
                                        activities        tracked and documented.                                       revise plan as required.      Contractor
                               1.3
                                                                                                                                                    4 weeks before
                                                                                                                                                      excavation
                                        Site Work -       A site grading and drainage plan shall be developed to        Audit records semi-              EPC            NPC
                                        Clearing and      manage flow of water offsite in a responsible manner.         annually                      Contractor
                                        Grading - site    Measures taken to protect against erosion shall be                                        4 weeks before
                               1.4      access and road   indicated. All areas shall be included in this plan such as                                 excavation
                                        work              the construction site itself, the batch plant area, the
                                                          equipment staging areas etc.
                                        Construction      Community impact action plant (only if deemed                                                 NPC /
                                        and Operation     necessary)                                                                                  Consultant
                                        of Power Plant                                                                                              NPC to clarify
                               1.5                                                                                                                    necessarily
                                                                                                                                                    before contract
                                                                                                                                                        award
                                                         28



       Handling and    Health and safety plan. All related activities shall be       Audit records semi-            EPC             NPC
       Storage of      tracked and documented.                                       annually.                    Contractor
1.6    Fuels and
       Hazardous
       Materials
       Compliance      Noise and vibration plan including baseline monitoring                                        EPC            NPC
       with noise                                                                                                 Contractor
1.7    requirements                                                                                             4 weeks before
                                                                                                                  excavation
       Disposal of     Waste management plan shall be developed                      Audit records monthly;           EPC           NPC
       Waste                                                                         revise plan as required.      Contractor
1.8
                                                                                                                4 weeks before
                                                                                                                   excavation
       Establishing    Simplified employee health and safety manual                                                   NPC
       health and                                                                                                4 weeks before
1.9    safety                                                                                                   commencement
       standards for                                                                                                   of
       O&M staff                                                                                                commissioning
       Establishing    Ambient air monitoring including meteorological data,         Continuous monitoring          NPC
       baseline for    sulfur dioxide, oxides of nitrogen, and particulate matter.                                 ongoing
1.10   ambient air
       quality
       Intake and      The EPC contractor will perform a siting study to                                             EPC          NPC / Env.
       Outfall         determine the most appropriate exact location and the                                    Contractor to     Consultant
1.11   Construction    best time to construct the intake and outfall structures.                                be indicated by
                                                                                                                 Contractor in
                                                                                                                      Bid
                                                                             29



                      Intake and          The EPC Contractor will also conduct subsequent                                               EPC          NPC / Env.
                      Outfall             confirmatory modeling to assess the thermal impact and                                   Contractor to     Consultant
                      Construction        make adjustments to the discharge diffuser design if                                     be indicated by
                                          necessary. Thermal discharge modeling demonstrates                                        Contractor in
               1.12                       that the thermal impact from the discharge is less than or                                     Bid
                                          equal to 3°C after mixing zone. This ensures that there is
                                          minimal impact from the discharge.


                      Sediment            Sediment control plan including procedures for sampling       Weekly                          EPC          NPC / Env.
                      control             and analysis for mercury contamination in areas of                                         Contractor      Consultant
               1.13                       potential dredging. All related activities shall be tracked                              4 weeks before
                                          and documented.                                                                            excavation
                      Site Work -         The practice of sharing the wood that is cleared with the     Weekly                         EPC             NPC
               1.14   Clearing and        local residents shall be monitored and documented.                                         Contractor
                      Grading
                      Final Site          A plan for final grading and landscaping of the site will     Audit records semi-            EPC             NPC
               1.15                       be developed and maintained onsite.                           annually.                    Contractor

                      Permitting          Contractor shall provide support to the Owner for             Review requirements             NPC
                                          obtaining the relevant environmental permits for the          monthly
               1.16                       construction and operation of the plant from the
                                          authorities.

                      Borrow Site         Monitor and document that borrow areas avoid                  Monthly                        EPC
Construction




               2.1                        agricultural areas.                                                                        Contractor
                      Borrow Site         Obtain and maintain applicable permits.                       As required                    EPC
               2.2
     2.




                                                                                                                                     Contractor
                      All activities of   A first aid station will be provided for workers onsite.      Aid station to be manned       EPC
               2.3    Construction                                                                      continuously during          Contractor
                      Work Force                                                                        working hours.
                                                           30



       Site Work -       Protecting stockpiles through the use of silt fencing and    Weekly                       EPC
       Clearing and      reduced slope angles to minimize soil erosion during                                    Contractor
2.4    Grading           construction will be monitored to ensure that the practice
                         conforms to site drainage plan.
       Site Work -       High-volume dust sample to monitor emissions from            Sample for 24-hr period,     EPC
       Clearing and      batch plant.                                                 monthly throughout         Contractor
       Grading                                                                        construction
2.5



       Site Access       High-volume dust sample to monitor emissions from            Sample for 24-hr period,     EPC
       Upgrades -        batch plant.                                                 monthly throughout         Contractor
       Roadwork                                                                       construction
2.6



       Dewatering        Maintain a record of visual inspection of excess water       Monthly                      EPC
2.7                      from dewatering activity.                                                               Contractor
       Disposal of       Monitor and document the use of borrow material.             Monthly                      EPC
       Excavated                                                                                                 Contractor
2.8    Material if
       Necessary
       Transmission      Document the amount of land used for the transmission        Monthly                      EPC
2.9    Interconnection   interconnection and that no agricultural lands are                                      Contractor
                         disturbed.
       Provision of      Monitor water supply to ensure that it does not adversely    Monthly                      EPC
2.10   Potable Water     affect other water uses in the area.                                                    Contractor
       Aggregate         Records will be kept on quarries utilized                    Audit records semi-          EPC
2.11   Source                                                                         annually.                  Contractor
                                                         31



       Batch Plant -   Monitor noise at the perimeter of the site during the peak   Monitor noise once, at         EPC
       Concrete and    of construction activity. In addition, spot monitoring of    both day and night, for an   Contractor
       Asphalt         various pieces of construction equipment will take place     eight-hour period. Spot
                       to ensure that noise emissions are not excessive. The site   monitoring of equipment
                       construction manager will maintain records of any noise      to be conducted weekly.
2.12                   complaints received during the construction process.         Review complaint records
                       Visual inspection of dust emissions will be performed        monthly. Inspect dust
                       daily with records of results.                               emissions daily.



       Delivery of     Visual inspection of dust from road construction will be     Monitor road dust and          EPC
       Equipment and   ongoing and application of water will be employed to         speeds daily.                Contractor
2.13   Materials       suppress dust during periods of high dust generation.
                       Road speeds shall be clearly posted.


       Solid Waste     Contact for proper disposal of solid waste will be kept      Audit records semi-            EPC
       Disposal        onsite. Records on the date of disposal and the amount       annually.                    Contractor
2.14                   and type of solid waste disposed will be maintained.
                                                        32



       Liquid Waste   Monitoring of the appropriate operational parameters         Monitor operational            EPC
       Disposal and   will be performed as per the manufacturer’s                  parameters monthly.          Contractor
       Sewage         requirements. Oil water separators will be equipped with     Inspect oil levels in
       Treatment      an oil level indicator and inspected daily. Sewage           separators daily. Monitor
                      treatment may include portable facilities. If so, the        containment levels in
                      containment levels will be monitored daily and the           portable facilities daily.
                      contents disposed of properly when full level is reached.    Monitor sewage treatment
                      If the sewage treatment consists of the packaged             parameters daily.
2.15                  treatment facility that will ultimately be placed into
                      service for the facility, then the appropriate parameters
                      such as airflow, temperature, and discharge biological
                      oxygen demand (BOD) should be monitored.




       Intake and     Documentation on the siting study performed to locate        Audit records semi-            EPC
2.16   Outfall        the intake and discharge will be maintained onsite.          annually.                    Contractor
       Construction
       Intake and     Documentation on the siting study performed to locate        Audit records semi-            EPC
       Outfall        the intake and discharge will be maintained, including a     annually.                    Contractor
2.17   Construction   construction schedule and information on historic
                      fishing activity. A copy of this report will be maintained
                      onsite.

       Intake and     Documentation of construction authorization will be          Audit records semi-            EPC
2.18   Outfall        maintained onsite                                            annually.                    Contractor
       Construction
                                                                                   33



                              Intake and        The construction technique and means of minimizing            Audit records semi-              EPC
                              Outfall           sediment releases will be documented and a copy               annually. Monitor              Contractor
                              Construction      maintained onsite. Monitoring of mercury in sediments         sediments for mercury
                       2.19                     will be carried out if excavating and dredging are            weekly (if required).
                                                performed as part of the intake and outfall construction.


                              Cooling Water     Documentation will be maintained onsite concerning the        Audit records semi-              EPC
                       2.20   Intake            final design of the water intake including the inlet          annually.                      Contractor
                                                velocity.
                              Borrow Site       Document final condition of borrow areas to ensure that       Upon closure                     EPC
Construction




                       3.1                      they have been reworked to blend into the surroundings                                       Contractor
 3. End of




                                                and are safe.

                              Disposal of       Obtain and maintain applicable permits. Document final        Permitting as required.          EPC
                              Excavated         condition of borrow areas to ensure that they have been       Document final area            Contractor
                       3.2    Material if       reworked to blend into the surroundings and are safe.         conditions upon closure.
                              Necessary

                              Distillate Fuel   Fuel Sulfur content will be monitored to ensure that it is    Conduct comprehensive            EPC
                              Oil               less than or equal to 0.1% by weight.                         performance test. Monitor      Contractor
                              Combustion                                                                      NOx and opacity
                                                Conduct performance test to confirm the emissions from        continuously (minimum
4. Trial Run / Plant




                       4.1
 Performance Test




                                                the plant do not exceed the amounts listed in this report.    three samples per hour).
                                                The stack will include continuous monitoring of NOx
                                                and opacity emissions.

                              Equipment         Conduct baseline noise monitoring at the plant and at         Monitor baseline noise           EPC
                              Operation         predefined offsite receptor locations. Monitor offsite, far   prior to start of operation.   Contractor
                                                field noise at offsite locations to confirm that the          Monitor far field noise
                                                operation conforms to 70 dB(A) limit.                         once during facility
                       4.2                                                                                    operation (at maximum
                                                Workers in close proximity to the turbines or other noise     operation conditions).
                                                emitting equipment will wear hearing protection in            Hearing protection to be
                                                accordance with a written health and safety plan.             used as required.
                                                                                 34



                             Cooling Water     The condenser discharge temperature will be monitored       Monitor daily                     EPC
                             Discharge         to ensure the operation of the facility meets the                                           Contractor
                    4.3                        maximum temperature discharge. In addition, monitor
                                               pH, residual chlorine, suspended solids and oil and
                                               grease concentrations.

                             Sewage            Monitoring of the appropriate operational parameters        Monitor treatment plant           EPC
                             Treatment         will be performed as per the manufacturer’s                 daily for manufacturer's        Contractor
                                               requirements. If the sewage treatment consists of the       recommended operating
                                               packaged aerobic treatment system then the airflow,         parameters. Inspect
                                               temperature, and discharge biological oxygen demand         associated equipment
                                               (BOD) should be monitored at a minimum. If the system       weekly. Audit records
                    4.4                        consists of an anaerobic treatment process, then process    semi-annually.
                                               temperature, and discharge BOD should be monitored at
                                               a minimum. Visually inspect all associated valves,
                                               pumps, blowers, and filters.


                             Handling and      Maintain the pertinent design information onsite.           Inspect containment levels        EPC
                             Storage of        Records on the date of discharge, approximate quantity      in separators daily. Test       Contractor
                             Fuel's and        of discharge, and final disposition of the discharge. Oil   function of oil level
                    4.5      Hazardous         water separators must be equipped with an oil level         indicator weekly. Audit
                             Materials         indicator and inspected regularly. Inspections of the       records semi-annually.
                                               proper function of the oil level indicator must be
                                               performed.


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