Republic of the Philippines

PROPOSED HOPEWELL POWER (PHILIPPINES) CORPORATION

(700 MW BOT Pagbilao Coal-Fired Thermal Power Plant)

Summary Environmental Impact Assessment

July 1992
 EXECUTIVE SUMMARY

1. Introduction
1. The Quezon Coal Fired Thermal Power Plant will involve the construction of a 700
MW (2x350 MW) generation capacity plant in Pagbilao Grande Island, in Quezon Provinces
consisting of two units. The first unit scheduled to be commissioned in 36 months from project
commencement with the second unit projected to be completed 4 months later.
2. The Philippine power supply is divided into three grids, namely, Luzon, Visayas and
Mindanao. The proposed power plant will be connected to the Luzon grid. Luzon, as of December
1991, had an installed power capacity of 4,626 MW. However, due to technical problems plaguing
existing plants and the low water reservoir in hydroelectric plants, the dependable capacity in the
Luzon grid was only about 80% of the installed capacity. To aggravate the problem, some power
plants became non-operational in 1991 due to a variety of problems. As a consequence, Luzon grid
has a dependable capacity to date of 3,484 MW. Since the peak power demand is estimated to be
about 3,213 MW (1991), it is apparent that the system reserve is too small to supplant power
requirements when an emergency shutdown of the old generating plants becomes necessary. Power
shortage is therefore common requiring rotating power outages for industries, commercial
establishments and residential consumers. This has led to significant economic losses and limited
productivity. The situation is expected to worsen with the projected annual power demand growth
of 7.11%. New power sources have to be developed to provide the projected power demand of
6,029 MW by the year 2000.
3. In 1991, the National Power Corporation (NPC) signed a Build-Operate-Transfer
(BOT) contract with Hopewell Power (Phils) Corp. (HPPC). Under the contract, HPPC will build
a 700-MW coal fired plant, operate it for 25 years, sell all power generated to the NPC and transfer
the plant to the NPC at the end of the 25 year period at no cost. Based on the laws of the
Philippines, power projects are subject to the Environmental Impact Assessment (EIA) requirement.
Thus, in November 1991, HPPC contracted BHP Engineering Phils. Inc. to conduct the EIA and
prepare the required EIS for the project. The EIS was completed in April 1992 and is currently
under review by the Environmental Management Bureau (EMB), Department of Environment and
Natural Resources (DENR). The EMB - DENR is the Central Philippine government agency
responsible for implementing environmental rules and regulations. It is responsible for the review
of the EIS and the issuance of the Environmental Compliance Certificate (ECC) for the Project.

2. Project Objectives and Scope

4. The Project aims to augment the power supply of Luzon and provide reliable power
supply to the grid. It is expected to: (i) support the power needs of existing industries thus
minimizing power outages and consequent economic losses; (ii) provide needed power supply to
attract new investors to the Philippines; and (iii) provide cheaper baseload power source to replace
the much delayed Nuclear Power plant. Moreover, the Project proposes to achieve the above
objectives in a manner that is in compliance with the environmental regulatory framework of the
Philippine government.
 2
3. Present Status
5. The Project is currently in the planning and conceptual design phase. Government
permits are currently being secured and financing for the project is being negotiated and finalized.

4. Site Alternatives
6. Two sites were considered namely: i) San Juan, Batangas and; ii) Pagbilao Grande
Island, Pagbilao, Quezon. San Juan Batangas lies on the western shore of Tayabas Bay, about 40
km southwest of Pagbilao. The terrain at San Juan is characterized by soft rolling hills but having
shallow waters, while Pagbilao has rough terrain and deep waters. The two sites share practically
the same climatic conditions. The sites also share the same tectonic elements being proximate to
the same earthquake generators. Tidal characteristics between the two sites are common, both
being on the same Tayabas Bay Area.
7. Pagbilao site was selected against San Juan due to the following conditions:
Proximity to deep water access resulting to less massive port facilities. San Juan site
will require a jetty about 1.5 km long into the open sea to achieve the necessary draft
required by coal ships. Dredging an approach canal was an alternative, but will
result into too much marine ecology dislocation.
Fresh water supply source is Palsabangon River about 19 km away, while at San Juan,
Malaking Ilog River requires a piping system about 25 km long.
iii) Impacts of storm winds coming from the southeast will be softened by the body of
the island. The San Juan site is practically facing the open Tayabas Bay Area. The
nearest refuge area for coal ships should have been at the western side of the site
towards Batangas Bay, while at Pagbilao, it will just be about 1 km inward of Pagbilao
Bay.
Shorter cooling water intake and outfall structures because of its proximity to deep
water. This condition again reflects into the magnitude of resulting marine
disturbances. The San Juan site should have required extensive structures because
of shallow water condition, or alternatively, extensive dredging.
v) Shorter power transmission line, thus lower energy losses.

vi) Fa r t h e r fr o m u r b a n i ze d c om m u ni t ie s.

vii) Closer to sources of indigenous construction materials.

viii) More cooperative local government officials and people.

5. Project Description and Components
8. The plant will be located on an island, Sitio Quidding, Polo Ibaba, Pagbilao Grande
Island, Pagbilao Quezon, approximately 30 sq. km. in area about 115 km south of Manila, refer to
Attachment 1. The plant and some facilities like the coal yard, switch yard, wastewater treatment
facility and the ash lagoon will occupy approximately 145 ha. of land and 22 ha. of foreshore area.
An additional area for staff housing will be allocated near the project site.
 3

9. The Project will have the following major components: i) construction of two 350
MW coal-fired electric generating units including boilers, turbines, ash removal systems,
instrumentation' and controls; ii) a coal-handling system including conveying system, coal yard and
pulverizers; iii) off-shore facilities like jetty, ash disposal area and other facilities such as staff
housing, bridge, access road, make-up water system, the 230 kv transmission line connecting the
power plant with the existing grid and the resettlement site.

10. Under the BOT agreement, NPC will provide fuel at no cost. The coal will be
imported from Kalimantan, Indonesia. The plant will utilize about 1.75 M mt/year of coal with a
maximum sulfur and ash content of 1% and 13.84% respectively. Also, about 200 tons/day of light
fuel will be used during commissioning and testing. Water requirements of the plant will come from
two sources. First, cooling water will be sourced from the sea at a rate of 25 m 3/s. Make-up water
is proposed to be sourced from the Palsabangon River in the mainland, 19 km. from the plant, at
a rate of 3,000 m3/day.
11. Sources of wastes, emissions and effluent from plant operations will consist of bottom
and fly ash, flue gases such as SO2 and NO,, and wastewater. Wastewater will come from a variety
of sources including boiler blowdown, chemical cleaning and electro-mechanical discharges,
domestic sewage, leachate and run-off from the ashpond, coal-yard and fuel storage area.

12. The plant will be provided with a stack of 200 m height to facilitate dispersion of
flue gases. An electrostatic precipitator of 99% removal efficiency will be installed to remove
particulates. A wastewater treatment facility and ash disposal area will be designed and developed
to handle wastewater, bottom ash and fly ash generated. In addition, oil water separators will be
set-up to reclaim oil in effluent and run-off.

6. Description of the Environment

Natural Environment

13. The climate in the project area is subject to the influence of the southwest monsoon
from June to October and, from late October to March, to the northeast monsoon. Rainfall
averages 3,084 mm/year with a wet season during October and November and a dry season during
February and March. Temperatures are stable year around,. ranging from 23 C to 30 C. The
mean annual relative humidity is 87%. Average wind speed throughout the year is 2 m/s. Land
and sea breezes occur on the project site but are weak in comparison to the dominant monsoon
circulation system. However, strong surface winds can occur from October to December, associated
with tropical cyclones, when wind speeds can reach 37 m/s (133 km/h).

14. Reliable figures on actual ambient air quality do not exist. Estimates derived for
the project site are about 21 ug/m3 for particulates, while SO 2 and NO are both non-detectable.
These measurements are from a single one-hour spot-check. However, these ground level
concentrations are typical of air quality in the rural areas of the Philippines and are considered
unpolluted.

15. Background noise levels range from 42 dB(A) to 45 dB(A) and are characteristic of
rural areas.
16. The project site is adjacent to areas which have been the epicenter of some
earthquakes. These are the Philippines Fault system, 40 kms east of Pagbilao Grande Island; the
 4
offshore Mompog Pass Fault about 20 kms south of the project site; the seismically active Lubang
Island - Mindoro area, 50 km to the west and the Mt. Banahaw Volcano, 25 km north of the island.
' These tectonic elements are probable earthquake generators and can trigger ground shaking and
displacement. Historical records of epicenters of earthquakes reveal intensities of about 4.

17. The area's freshwater and marine ecology are both rich in aquatic life. In the marine
ecology, corals, mangroves and seagrasses predominate. The area's coral reefs are reported to be
in fair to good conditions. Mangrove vegetation is generally in a deteriorating state on Grande
Pagbilao Island as these areas have been negatively impacted by conversion to fishponds. Reef fish
population was found to be small, due to illegal fishing using improper fishing methods such as
dynamite and cyanide.
18. The Palsabangon River system is the proposed freshwater source for the project's
make-up water. The measured flow in the river has a maximum value of about 032 m3/s and a
mean minimum of about 0.19 m3/s. Irrigated agriculture (13,220 m3/d = 0.15 m3/s) and domestic
water supply (3,793 m3/d = 0.04 m3/s) both result in substantial abstractions of water from the
river and both figures are expected to rise (domestic water needs to 6,654 mad = 0.08 m3/s by the
.

year 2000). The water demand of the power plant is 3,000 m3/d' ( = 0.03m3/s). The combined
water demands of the existing irrigation systems and domestic water needs as well as the proposed
power plant are well below the average flows in the Palsabangon River, even under minimum flow
condition (February to July).
19. The river water meets the standards for Class D, Industrial Water Supply Class II
and Class GA, respectively, both set by DENR's Administrative Order No. 34, March 20, 1990.
20. Tidal characteristics at the project site are mixed (i.e. the tides become d iurnal
around the time of the moon's maximum declination). The average difference between the mean
high water level and the mean lower water level at the site is 0.91 m, while the average diurnal
range (difference between tide elevations at mean higher high water mark and mean lower low
water marks) is 1.46 m. The mean tide level is estimated at 0.7 m above the mean lower low water
level. The influence of the wind driven current system is small. Significant waves can be generated
by winds during the southwest monsoon. Waves can reach 1.0 m with a period of 2.4 seconds and
can increase to 4.0 m during a tropical cyclone. Coastal seawater is homogeneous in temperature
and salinity. Mean seawater surface temperature is 27C, varying between 26C and 29C, with
salinity about 33.5 ppt.
21. Vegetation on the island is predominantly small fields producing a variety of
agricultural crops, coconut plantations, firewood lots and, along the beach areas, mangrove. Some
agricultural crops like rice, corn and cassava are grown on the island. A total of 303 species
belonging to 123 genera and 78 families were identified on the project site and adjacent areas. No
rare or endangered species were noted during impact assessment study.
22. Wildlife species on the island show a relatively diverse population with one
endangered species present, the Rufous Night Heron. The Rufous Night, Heron is present in the
island and uses the mangrove forests in Capas-Capas as its roosting place. The other wildlife
species are hardy and well able to adapt themselves to habitat disturbances.

23. The Province of Pagbilao had a population of 42,000 in May 1990. In the immediate
project area of Ibabang Polo there are 1,265 people. Population growth during the last decade is
Human Environment
 5

about 38%. The proposed site is located in Polo Ibaba and covers 3 small villages - Tuklas,
Quidding and Capas-Capas with a combined population of 180 households, who will be directly
"affected by the proposed plant facilities. Two other villages are located in the immediate vicinity
with a population of about 370 households. Livelihood is predominantly fishing and small-scale
farming. Land ownership is limited to very few individuals, mostly non-residents of the island.
Residents are mostly migrants from central Philippines who stayed on the island because of
livelihood opportunities and relatives.
24. Water supply and toilet facilities are virtually non-existent. Electricity is not available
on the island. No major industrial establishments are found within 50 km. radius of the proposed
site although Quezon Province is included as a priority area for regional development.

7. Public Involvement

25. On May 1991, HPPC presented the project to the Provincial Governor of Quezon.
The Project Development Plan was discussed in detail, which became the basis of the Provincial
Board's endorsement. The Provincial Governor in turn endorsed the project to the Municipal
Mayor of Pagbilao. On September 1991, HPPC undertook a project presentation to the Municipal
Board and Municipal Development Council, who subsequently endorsed it. The municipal
government body also created on December 1991 a special group "Inter-Agency Committee" (IAC)
composed of municipal officials, NGO officials, concerned citizens, members of the academe and
church. The IAC is tasked as the working body to evaluate issues for and against the project. On
January 1992, HPPC again presented the Project to the Municipal Board, with all concerned
citizens, NGO officials, religious groups, and private sector representatives in attendance. The
Project's positive and negative impacts were thoroughly discussed. Also in early January 1992,
HPPC conducted a dialogue and project presentation in three different occasions with the villagers
where the Project will be located. Concerns and issues were properly noted and addressed. These
presentations with the villagers resulted in an endorsement resolution by the village officials. On
early February, another project presentation and dialogue was undertaken with the officials of the
other town adjacent to the site (town of Padre Burgos, about 8 km east of the site). The Municipal
Board of Padre Burgos, after proper deliberation, also resolved to endorse the Project last March
1992. On 10 March 1992, HPPC presented the Project to the Regional Development Council
where all the government line agencies' regional directors were in attendance. This body also
endorsed the Project as of 01 April 1992. The National Economic and Development Authority
(NEDA), through its Investment Coordination Committee (ICC) had approved the Project as of
23 September 1991.

26. As part of the public information campaign, HPPC arranged an ocular inspection by
the members of the Pagbilao Inter-Agency Committee of Calaca I Power Plant in Batangas. During
the visit, the people of Pagbilao conducted their own inquiry with the residents and officials of
Calaca about the true situation of the coal-fired power plant, its effects to the environinaThsit well
as the veracity of media-fed information. Subsequent deliberation meetings of th & IAC resulted
to the issuance of "project social acceptability" resolution. About late March 1992, HP made
a project presentation and dialogue with the Pagbilao Elementary School Teachers Association.
27. Community organization started last April 1992. Priority was given to those who will
be relocated and to the community to whom they will be integrated. Project information drive was
conducted along "family module" levels. Livelihood opportunities were iden tified. Skills
development and training programs are being drawn up in coordination with provincial, and
municipal and NGO officials. Benefit packages are being developed, incorporating the mitigating
measures as required by the ETA Report. Community organizational and information drive works
 6

are also on-going for the other villages that are directly affected by the fresh water supply systems,
access road/bridge and power transmission lines.

8. Projected Impacts and. Planned Mitigation Measures

28. The EIA study for the proposed power plant was undertaken to comply with national
statutory requirements. The basic method was to evaluate the existing environment with respect
to air and water quality, noise level, conditions of dust and fumes inside the facility and the
surrounding human environment. The analysis of the existing environment was followed by an
evaluation of the quality and quantity of gaseous emissions, liquid effluent, noise and impacts on
the local population generated by the Project. The potential pollutants from the power station
project were determined to be:
Stack Emissions particulates (fly ash), SO 2 and NO
Dust and Fumes dust generated during construction, CO and. SO 2 from
increased traffic and heavy equipment operations; fugitive
dust from the coal yard
Effluent coal yard run-off, ash pond leachate, boiler blowdown, chemical
and maintenance discharges, domestic wastes, water containing
oil from fuel storage spills and wastewater treatment plant
discharges;
Thermal Effluent cooling water discharge into Tayabas Bay

Solid wastes bottom ash, fly ash, dust from coal yard and domestic solid
wastes.

Noise generated by plant machinery and equipment,

29. In addition, there are potential adverse socio-economic and health impacts of the
project such as:

Displacement of about 180 households living within the plant premises and those
along the right-of-way of other plant facilities, e.g. road, transmission line;

Disturbance of residents near the proposed site particularly during construction;

Displacement of farmers engaged in agricultural activity ;

Migration of people to the island due to increased commercial activity and

employment opportunities may promote increased demand for services and
infrastructure as well as taxing of existing amenities and services, e.g. schools, health
centers;
Increase in traffic; and
Possible incidences in communicable diseases due to population migration.
 7

30. The results of the impact identification and prediction was the basis for the
mitigation measures recommended for incorporation in the project design. These impacts and
mitigation measures are discussed in more detail in the sections that follow.

Air Quality Impacts

31. Air quality modeling was carried out using plant parameters and the 20 -year
meteorological data gathered from the nearest meteorological station in Tayabas. The model
considered plant emissions based on the design and possible worst-case scenario. The existing or
"background" average ground level concentration of pollutants were established and a prediction of
the expected ground level air quality was made using an air quality dispersion model.
Recommendations on the optimum stack height (200 m), lowest permissible efficiency of the
electrostatic precipitator (95%) and the quality of coal (1% S and 13.84% ash) were defined using
the results of the model. Attachment 2 shows the stack emissions and how it relates to Philippine
standards.
32. Particulates. The fuel to be used for the proposed Project will be high quality coal
from Kalimantan, Indonesia. This coal was selected to mitigate air quality impacts of the power
plant. Ash content of the coal will be 13.84%. The plant will consume an estimated 1.75M mt/year
of coal. To reduce the amount of particulate matter to be emitted by the plant to acceptable levels,
an electrostatic precipitator (EP) with a rated efficiency of at least 99% will be installed between
the boilers and the exhaust stack. With the EP operating at 99% efficiency, particulate emissions
is estimated to be 109.6 mg/scm. This is within the standard set by the Philippine government of
300 mg/scm and the World Bank standard of 150 mg/scm. If the EP is maintained at the rated
efficiency, predicted long-term (annual) mean maximum ground level concentration is 3.5 ug/m3
and maximum one-hour ground level concentration is 33.4 ug/m3. Results of the modeling show
that EP efficiency should be maintained at 95% to be able to meet Philippine standard. Attachment
3 shows the projected ambient concentrations of the various emissions as it compares to Philippine
and WB standards.

33. SO2 Emissions: The sulfur content of coal produces SO2 as a by-product of the
combustion process. The project will utilize coal of as low as .53% S content to a maximum of 1%
S. Projected emissions at stack using these types of coal will be 839.5 and 1,584 mg/scm.,
respectively. Both exceed the Philippine standard of 250 mg/scm. However, the Philippine
standards provide that should emission standards be exceeded, then ambient levels will apply. Based
on the predicted ground level concentrations at worst case conditions, i.e., ambient temperature of
30C, flue gas temp. at 110C and stability Class A, the plant will contribute a maximum of 483
ug/scm to the ambient ground level concentration. Since background concentration is not
detectable, the ambient standard of 850 ug/scm can be complied with even without any further
mitigation. Comparing the emissions with WB standards, even assuming the use of coal of 1% S,
this will result in total emission of 133 t/day as compared to 70 t/day for design coal. This is well
within the 500 t/day standard of the WB. The peak one-hour average ground level concentration
is calculated to be 483 ug/scm, compared to the 1000 ug/scm WB standard. Attachment 3 provides
comparative summary.
34. NO Emissions: NO emission rates very much depends on the type of burner to
be used for the plant. The project will use low NO x burners predicted to emit about 650 mg/scm.
Results of the model show that with this type of burner a stack height of at least 200 m should be
built to meet the ambient national standard of 190 ug/scm. Comparing these emissions with the
WB standard, even assuming NO x emission of 700 mg/scm at the stack, this will be equivalent to
350 nanogram/J. As such, predicted mean ground level concentration is 5.6 ug/m3 which is less
 8

than the WB standard of 100 ug/scm. (See Attachment 3).

35. Dust and Fumes. Fugitive coal dust will be produced during coal handling operations
and from wind erosion of the coal yard. The project will install a covered conveying system to
minimize dust during handling. In addition, the coal stockpile will be properly compacted and
provided with water sprinklers to minimize spontaneous combustion.

36. To determine the contribution of fugitive dust on the projected air quality of the
area, an area source model was used. Results show that the maximum concentration is about 42
ug/scm 100 meters downwind from the source. Additional dispersion up to a distance of 1 km
from the source will further reduce concentration to 4 ug/scm.

Noise Impacts

37. Noise will be generated both during the construction and operational stages. During
construction, noise will come from construction equipment, activities and increased traffic. During
plant operation principal noise sources are the gas outlets of the boilers and the boilers generating
room. Background noise levels are within 42-45 decibels. To determine the impacts of noise, data
on noise levels generated by various equipment was made. Using these results, a computer model
for multiple sources was used and the resulting isolines of sound level (Attachment 4) show
government standards for noise are not exceeded beyond the boundary line.

In order to mitigate plant noise levels the following measures will be adopted:

Insulation and installation of noise absorption material and vibrations isolation will
be implemented.

Landscaping around the plant perimeter will be designed to assist in noise

absorption;

iii) Specifications of plant equipment will require the lowestpossible noise characteristics
and adequate noise reduction casings, mounting and similar methods.

Water Quality Impacts

.

38. The project plans to divert water from the Palsabangon River for freshwater
make-up. Based on the information provided in the EIS, it appears that the river will be una ble
to provide the necessary volumes of make-up water during the dry season (particularly in a
generally dry year). This problem is further complicated by other water users. In particular there
could be an additional problem as the Local Irrigation Association is planning to abstract additional
volumes of water for irrigation purposes. HPPC is planning to supplement the river water with
additional volumes from available groundwater resources most likely on the mainland.

39. There will be minor temporary impacts on the area's surface water and groundwater
during construction. However, coastal water quality is affected, in particular, by increased sediment
levels from surface runoff. To minimize these impacts, a seawall will be completed prior to
construction activities. During plant operation, a variety of liquid effluent will be produced: 1)
cooling water released to the sea, 2) wastewater from the various treatment facilities (e.g. ash
lagoon, blowdown from the water treatment plant, plant site surface runoff), 3) sanitary wastewater,
4) boiler water blowdown and 5) coal stockpile runoff.
 9

40. No liquid effluent will be discharged to the Bay unless it meets the prescribed
national standards. Total volume of wastewater is estimated to be 2000 m3/day. Attachment 5
"shows the Philippine standards for water quality.
41. Contaminants from boiler blowdown discharges will be removed by wastewater
treatment method comprising 4 stages of treatment: Removal of ash will be the first stage, trace
metals and other elements will be removed in stages 2 and 3 while pH adjustment, COD removal
and suspended solid separation will be carried out in the 4th stage.
42. In the coal stockpile area a leachate collection system will be installed, and all
leachate and runoff from the stockpile area will be collected, treated and monitored prior to
discharging. Following treatment and monitoring all the effluent will be mixed with the cooling
water and discharged through a properly designed cooling water outfall structure. This structure
will ensure maximum mixing of the cooling water and associated treated effluent with the receiving
seawater. This will limit the impact of plant operations on the area's seawater quality. Sanitary
wastes will be conventionally treated by means of septic tanks with leaching chambers and
sub-surface drainage.
43. To prevent contamination of the area's groundwater and coastal water from leachate
originating from the ash disposal lagoon, which is located near the coastline, the ash lagoon will
either be lined with clay or with a high density polyethylene liner (HDPL). In addition a drainage
system will be constructed underneath the ash disposal lagoon to monitor leaks in the leachate
containment system. Precipitation and ash slurry water will be pumped from the ash lagoon into
a sedimentation pond for treatment prior to discharge with the cooling water.
44. Sludge produced from coagulation/sedimentation will undergo further treatment in
a sludge tank thickener followed by a sludge dehydration. Sludge cakes will be disposed in the ash-
pond.
45. Thermal Pollution: Through a submerged intake structure at least 10 m from the
surface, water will be drawn from Tayabas Bay and circulated through the condenser before exiting
to the outfall, to be located 4 m from the water surface. Temperature change will be about 7C from
point of intake. Average water temperature on site range between 23C to 31C. Assuming that
the plant will discharge heated effluent at 25 m3/sec with a discharge velocity of .42 m/s, a thermal
plume model was used to determine its impacts on Tayabas Bay. The results show that area
enclosed by a temperature increase of greater than or equal to 3C will be felt over 0.07 km 2 area.
The area enclosed by a temperature change of 1C or higher is about 5 km 2. Impact on corals is
not significant owing to the fact that heated effluents rise to the surface.
Solid Waste Impacts
46. The solid wastes of the Project will consist of bottom ash, fly ash, and coal dust.
Both bottom ash and fly ash will be mixed with water to form a slurry before it is pumped to the
ash disposal area. The ash pond capacity will have a life span of 30 years. The area will be covered
with soil and rehabilitated at each stage of the pond's development.
Terrestrial and Aquatic Ecology
47. The planned location for the housing compound should minimize any disturbance
of the mangrove areas, which are the roosting area of the Rufous Night Heron. HPPC has agreed
to locate the housing compound as far as possible from these mangrove area.
 10

48. The original transmission line route traversed the Quezon National Park. However,
HPPC will now route the transmission line in such a way as to avoid the National Park.
49. Dredging of the Palsabangon River will result in an increased suspended sediment
load which could effect aquatic life and cause silt deposition further downstream. However, silt traps
will be installed to contain dredge spoils and thus minimize the problem. Dredge spoils generated
during the construction of the intake and outfall structures and the coal jetty will be transported and
dumped in offshore areas. These areas will be selected to minimize impacts on the marine
environment.
50. Construction activities might affect .the mangroves, marine benthic organisms, and
coral. Onshore and offshore construction activities will be undertaken in such a way as to minimize
these impacts. The construction of the seawall and the treatment of on-site sediment laden surface
runoff will minimize construction impacts on the marine environment. A gene pool near the project
area will be maintained by relevant government agencies, assisted by the Project Proponent to
supply seeds for the rehabilitation of areas negatively impacted by construction through such
activities as seagrass replanting and mangrove reforestation.

Socio-Cultural Impacts
51. The potential adverse socio-cultural impacts from the Project are focused within the
area covered by the plant and those living within 1 km. from the proposed plant. HPPC, in
coordination with the provincial and municipal government, is committed to comply with the DENR
- ENO requirements.
The impacts and proposed mitigation measures are summarized below:

i) Displacement of 180 households. A relocation area will be developed on the

northern part of the island (Polo Ilaya). The resettlement package will provide for
the development and construction of the required housing units, provision of water
supply and other amenities like a multi-purpose hall, basketball court and a health
center. The affected families will be properly compensated and will be provided with
seed capital to start livelihood projects.
ii) People whose produce and crops will be affected by the project will be duly
compensated.
iii) Potential overload of local housing and public services due to requirements of project
construction and influx of migrants to the area will result. HPPC will coordinate with
the local government to prepare for the increased demand of these public services.
In addition, temporary construction workers' housing will be provided.
iv) Increased traffic. An access road will be constructed on the island and a bridge
linking the mainland and the island will be constructed.
The commercial and industrial growth induced by the development will have both
positive and negative impacts. Negative impacts will be mitigated by providing the required
infrastructure to support this development. For this purpose, coordination with the Provincial
Development Office is being undertaken.
 11

vi) Training of affected residents on skills required by the plant will be conducted in
coordination with the Provincial government. This will ensure that priority of
employment opportunities will be given to adversely affected people.
52. A significant number of people will move to Pagbilao Grande Island creating a heavy
demand for services such as houses, social and technical infrastructure, law enforcement,
administration and recreation. The majority of these services are presently not available on the
island. HPPC will coordinate with government authorities for the provision of these services. The
population increase on the island as a result of plant construction and operation, while benefitting
the local economy, must be carefully monitored. Purchases of supplies, building materials, food and
other basic commodities will stimulate the area's commerce and local economy, but will require
control to minimize the socio-economic impact on the island's local population.
53. National, provincial and local governments as well as HPPC must coordinate the
development of the area's social, technical and institutional infrastructure. These are mainly:
housing developments, construction of roads, supply of electricity, water supply, waste disposal
(liquid and solid), communication facilities, health facilities, education and vocational training,
recreation and administration facilities. It is expected that construction and operation of the power
plant will have beneficial, long-term socio-economic effects including diversification of the local
economy and development of new job opportunities for local people.
Occupational Health and Safety
54. HPPC will implement stringent occupational health and safety requirements during
both construction and operation. These requirements will comply with both Government of
Philippines regulations as well as relevant international guidelines. During plant construction the
occupational health and safety policy will comprise: i) requirement of all workers to wear protective
equipment; ii) proper security of the construction sites at all times; iii) availability of fire fighting
equipments (at all strategic locations); iv) provision of sanitary facilities, potable drinking water
and proper garbage collection and disposal facilities; v) availability of medical staff and facilities
on-site; and vi) effective training and monitoring to ensure proper health and safety procedures are
being used.
55. During plant operation HPPC's occupational health and safety policy will include: i)
electrically controlled closed circuit fire alarm systems; ii) lightning protection system composed of
lightning rods, holder poles, brackets for holder poles, lightning conductor, PVC conduit vinyl box,
conductor connector, etc.; iii) preventive maintenance program with regular control of equipment
to prevent malfunction and degradation including a 73-day-period every year of no operation for
maintenance purposes; iv) fire fighting systems and adequate equipment to contain a fire (e.g. safety
devices, screens, fire batteries, fire barriers); and v) training of all employees in safe work practices
and use of safety equipment.
9. Risk Assessment
56. The Project can be classified as posing low hazard with significant potential risks as follows:
i) Even with the coal quality maintained at its worst possible quality, i.e. 1% content,
the Philippine standards will not be exceeded. Long term contracts with suppliers
will ensure continuous availability of this type of coal.
 12
Reduction of the EP efficiency to a level below 95% will require plant shutdown.
However, maintenance and repair should not pose any problem in attaining required
efficiency level.
iii) Continuous monitoring and the adequate training of personnel will ensure early
detection and immediate institution of remedies for the prevention of any discharge of
untreated effluents into the bay.
10. Contingency Plan
57. The power plant will be designed to resist natural disasters such as earthquakes,
floods, typhoons and tsunamis. Every building, structure, equipment and their supports will be
designed and constructed to withstand major forces from any direction associated with high winds,
earthquakes, etc. With regard to the risk of seismic events, the power plant design will comply with
the requirements of the Structural Code of the Philippines or other equivalent international
standards. The acceleration coefficient used in the plant design will be in accordance with the
seismic zone classification of the Government of the Philippines. The fire resistance period of all
buildings will be one hour.
11. Environmental Management Plan
58. HPPC is committed to develop a detailed environmental management plan for the
project to augment the mitigation measures described above. The plan will include:
i) construction activities to avoid high noise levels at night, to minimize soil erosion
during the rainy season and the generation of dust, particularly when the prevailing
winds are from the northeast;

roads to be compacted and/or sprinkled with water to minimize generation of dust; construction of a
seawall early in project development and site work;
vegetation clearing to be limited to locations where necessary and buffer zones to
be provided around the construction area and between the construction area and
the housing compounds;
provision of sprinklers and covered conveyor belts to reduce dust at the jetty and in
the coal stockpile area;

construction and maintenance of containment berms around fuel storage areas;

proper collection and disposal of garbage;
design of water intake systems to minimize the entrainment of aquatic organism;
preparation of a water master plan to regulate water utilization and water allocation
in the area;

revegetation programs for surfaces exposed by site preparation and excavations;

xi) implementation of slope stability measures;
 13

xii) operation of a gene pool reserve to ensure maintenance bio diversity of terrestrial and
aquatic ecology, in particular coral reef, reef fish, seagrass, seaweed, and mangrove
areas;

xili) rehabilitation of dredged and reclaimed coastal areas through seagrass transplanting
and mangrove reforestation;

xiv) development of employee training programs; and

xv) development and implementation of an integrated development plan for the entire
Pagbilao Grande Island.

12. Environmental Monitoring Plan

59. HPPC is committed to continue implementing monitoring programs, prior to
construction, during construction and during plant operation, covering a wide range of parameters
in all environmental media:

)
Meteorological Data - meteorological stations will be set up in the area to provide
continuous baseline meteorological data such as wind speed, wind direction,
temperature, precipitation, humidity, solar radiation and evaporation;

ii) Ground level Ambient Air Quality Data - a system of monitoring stations, including
a mobile station will monitor weekly concentrations of SO 2, NO and particulates.
This will contribute significantly to the increase in reliability of background
information. The power plant will be provided with stack sampling equipment with
a remote data logger to continuously monitor stack emissions (oxygen, combustible
gas, SO2, NOR, CO, particulates and smoke density) and with a ground station to
monitor ambient air quality within the plant fence. The stack monitoring system will
be equipped with an automatic alarm system.

iii) Water Resources - the Palsabangon River basin will be equipped with a river gauging
system to control dam operation and to better assess (and manage) the water
resources between the various users. Groundwater levels on the surrounding areas
in the mainland will be observed and pump tests carried out at observation wells to
determine a safe yield for groundwater;
iv) Water Quality - an integrated network for water quality monitoring will be installed
and operated, comprising surface water quality of the Palsabangon River,
groundwater quality from tube wells near the power plant and ash disposal lagoon,
and from drinking water wells throughout the island. Furthermore, coastal water
quality will be observed. Sampling and testing will be completed twice a month.
Water will be analyzed for parameters specified in the Government of the Philippines
DENR Standards Administrative Order No. 34, 20 March 1990 and to ensure
compliance with international guidelines;
Liquid Effluent - they will be continuously monitored and analyzed according to the
Government of the Philippines DENR Standards for liquid effluent including
turbidity, suspended solids, pH, COD, BOD5, color, chromium, oil and grease,
temperature, and heavy metals;
 14

vi) Soils - a regular monitoring program will be designed and implemented on all cut
slopes to avoid large-scale slope failures. Measurements of soil quality on the island
will also be performed to monitor soil degradation;
vii) Terrestrial and Aquatic Ecology - the adverse impacts of the construction and
operation of the power plant on terrestrial and aquatic ecology will develop gradually
over a longer period of time. It is therefore necessary that periodic biological
monitoring of population dynamics, biodiversity levels and the terrestrial ecosystems
be implemented. The monitoring of aquatic ecology will include important
characteristics such as occurrence, abundance and diversity of aquatic communities
in selected areas and over established periods. This will also include areas of coral,
reef fish and plankton;
viii) Public Health - Monitoring of health statistics on the island and neighboring towns
will be carried out to determine any increase in incidence of diseases and other
illnesses. This should be duly coordinated with health officials and HPPC
management should there be a need to institute additional safeguards.
13. Conclusion
60. Based on the assessment of the environmental and socio-economic aspects of this
project and the fact that Hopewell Power (Phils.) Corp. has undertaken to meet the commitments
described above, it is concluded that all environmental, occupational, health, safety and socio-
economic impacts of this project can be mitigated to levels which fully comply with all applicable
international guidelines and the requirements of the Government of the Philippines.