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Sustainable Energy Access in Eastern IndonesiaPower Generation Sector Project (RRP INO 49203) Due Diligence Report (Environment): Kaltim Peaker 2 Core Subproject Project Number: 49203-002 October 2017 INO: Sustainable Energy Access in Eastern Indonesia─Power Generation Sector Project Kaltim Peaker 2 Core Subproject Prepared by Fichtner for the Asian Development Bank. This environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Transcript

Sustainable Energy Access in Eastern Indonesia—Power Generation Sector Project (RRP INO 49203)

Due Diligence Report (Environment): Kaltim Peaker 2 Core Subproject

Project Number: 49203-002

October 2017

INO: Sustainable Energy Access in Eastern

Indonesia─Power Generation Sector Project

Kaltim Peaker 2 Core Subproject

Prepared by Fichtner for the Asian Development Bank.

This environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Final Report October 2017

CONSULTING SERVICES FOR

"TA-9082 INO: Preparing the Eastern Indonesia Sustainable Energy Access Sector Project“

KALTIM PEAKER 2/ Tanjung Batu Power Plant Complex

Environmental Due Diligence

7203F96/FICHT-19385689-v2 i

Sarweystrasse 3 ● 70191 Stuttgart P.O. 10 14 54 ● 70013 Stuttgart Germany Phone: +49 711 8995-0 Fax: +49 711 8995-459 www.fichtner.de Please contact: Dr. Werner Miller Extension: 418 E-mail: [email protected]

Rev No.

Rev-date Contents /amendments Prepared/revised Checked/released

0 05.10.2017 Environmental Due Diligence - Draft Zajac Miller

1 20.10.2017 Environmental Due Diligence - Final Zajac Miller

7203F96/FICHT-19385689-v2 ii

Disclaimer The content of this document is intended for the exclusive use of Fichtner’s client and other

contractually agreed recipients. It may only be made available in whole or in part to third

parties with the client’s consent and on a non-reliance basis. Fichtner is not liable to third

parties for the completeness and accuracy of the information provided therein.

7203F96/FICHT-19385689-v2 iii

ABBREVIATIONS

ADB – Asian Development Bank

AH – Affected household

BLH – Badan Lingkungan Hidup (Environmental Agency)

BPN – Badan Pertanahan Nasional (National Land Agency)

CFK – Cahaya Fajar Kaltim (Private Power Developer)

CNG – Compressed Natural Gas

CSR – Corporate Social Responsibility

DDR – Due Diligence Report

dwt – Deadweight tonnage

EA – Executing Agency (PLN)

EIA – Environmental Impact Assessment (for Category A projects)

GFPP – Gas Fired Power Plant

GOI – Government of Indonesia

GRM – Grievance Redress Mechanism

GWh – Giga Watt hours

Ha – Hectare

HSD – High Speed Diesel

LNG – Liquefied Natural Gas

MW – Mega Watt

NJOP – Nilai Jual Obyek Pajak (Sale Value of Tax Object)

PIB – Project Information Booklet

PLN – Perusahaan Listrik Negara (Indonesian State Electricity Company)

PLTGU – Combined Cycle (gas and steam) PP

PPC - Power Plants Complex

PPTA – Project Preparatory Technical Assistance

PT – Perseroan Terbatas (Limited Liability Company)

PV – Photovoltaic

RCCDF – Resettlement and Customary Communities Development Framework

RKL-RPL – Environmental Management Plan - Environmental Monitoring Plan in Indonesia

Rp – Rupiah

SPS – Safeguard Policy Statement

UIP – Unit Induk Pembangunan (Project Implementation Unit)

UKL – UPL – Environmental Management and Environmental Monitoring Effort in Indonesia

VICO – Victoria Indonesia Company (LNG distribution, East Kalimantan)

WWTP – Wastewater Treatment Plant

7203F96/FICHT-19385689-v2 iv

TABLE OF CONTENTS

ABBREVIATIONS III

TABLE OF CONTENTS IV

LIST OF TABLES I

I. INTRODUCTION 2

A. Report Purpose and Rationale 2

B. Project Location and Scope 2

C. Implementation Progress as of September 2017 3

D. Environmental Categorization, Assessment and Reporting 4

E. Institutional Setup and Responsibilities 4

II. COMPLIANCE WITH ENVIRONMENTAL SAFEGUARDS REQUIREMENTS AND IMPLEMENTATION 5

A. Monitoring Requirements Based on National Environmental Laws 5 a. Stack Emissions Monitoring Requirements 5 b. Monitoring Requirements for Ambient Air (24 hours) 6 c. Noise Monitoring Requirements 7 d. Wastewater Monitoring Requirements 7 e. Hazardous Waste of PLTGU Tanjung Batu 8

B. International Guidelines 8 a. Air Emission Limits 8 b. Air Quality Standards 9 c. Noise Level Guidelines 9 d. Wastewater Guidelines 10

C. Monitoring Results 11 a. Results of Air Emissions Monitoring 11 b. Results of Ambient Air Monitoring 12 c. Results of Noise Monitoring 13 d. Results of wastewater monitoring 14 e. Hazardous Waste Management 15 f. Complaints by the Public 15

III. FINDINGS AND RECOMMENDATIONS 16

IV. REFERENCES 17

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List of Tables

Table 1: Stack Emissions Monitoring Parameters 5

Table 2: Locations of the Stack Emissions Monitoring Points 6

Table 3: Ambient Air Monitoring Parameters 6

Table 4: Locations of the Ambient Air Monitoring Points 6

Table 5: Noise Monitoring Parameters 7

Table 6: Wastewater Monitoring Parameters 7

Table 7: IFC emission guidelines for facilities larger than 50 MW with combustion turbines and combustion engines (IFC, 2008) 8

Table 8: WHO Guidelines for Ambient Air Quality 9

Table 9: Noise Level Guidelines (IFC, 2007) 10

Table 10: Effluent Guidelines (IFC, 2008) 10

Table 11: Air Emissions Monitoring Results Tanjung Batu Gas Turbine Combined Cycle 11

Table 12: Air Emissions Monitoring Results - Kaltim 1 Gas Fired Power Plant 12

Table 13: Ambient Air Monitoring Results 13

Table 14: Noise monitoring results 14

Table 15: Wastewater monitoring results (Semester I 2016) 14

Table 16: Wastewater monitoring results (Semester II 2016) 15

7203F96/FICHT-19385689-v2 2

I. INTRODUCTION

A. Report Purpose and Rationale

1. ADB has agreed to assist the Government of Indonesia (the Government) with technical

assistance (Technical Assistance) for the TA-9082 INO: Preparing the Eastern Indonesia

Sustainable Energy Access Sector Project - Consulting Services (49203-001) by an agreement (the

Technical Assistance Agreement) executed between the Government and ADB. Within the Eastern

Indonesia Sustainable Energy Access Sector Project, the Indonesian state electricity company PT

Perusahaan Listrik Negara (PLN) planning to build 10 to 15 power plants (sub-projects).

2. One core sub-project under the Technical Assistance Agreement is a new Gas Fired Power

Plant Kaltim 2 Peaker which will be constructed adjacent to the already operating Tanjung Batu

Power Plants Complex.

3. Paragraph 53 of the Operations Manual Section F1 / Bank Policies (October 2013), states

that for projects involving facilities and/or business activities that already exist before ADB's

involvement, ADB requires the borrower/client to conduct an environment compliance audit to

determine their safeguard compliance status. The audit by the borrower/client includes on-site

environmental assessments to identify past or present safeguards concerns related to the impacts

on the environment. Where noncompliance is identified, ADB and the borrower/client agree on a

corrective action plan, implementation schedule, and sufficient funds to bring the project into

compliance with the safeguard policy requirements.

4. This environmental DD identifies past and/or present safeguards concerns related to the

impacts on the environment by the operating Tanjung Batu Power Plant Complex (PPC). The

Tanjung Batu Power Plant Complex was not financed or co-finaced by ADB and therefore not

planned or built under consideration of the ADB safeguard regulations. Only national environmental

requirements were considered.

5. The environmental due diligence was prepared based on review of the environmental

impact assessment report for Kaltim Peaker 2, as well as the available environmental monitoring

data of the existing facilities and Addendum AMDAL for Kaltim Peaker 2. During the preparation of

this report, a series of discussions was conducted with the PLN, as well as the UIP IX during site

visits conducted to the Tanjung Batu PPC.

B. Project Location and Scope

6. PLN plans to build a new Gas Fired Power Plant Kaltim Peaker 2 using dual fuel type, a

single cycle gas turbine facility capable of running on natural gas (primary fuel) or HSD

(secondary/backup fuel) to serve peak load (peaking) with a net power output capacity of 100 MW

± 10%. The new Power Plant Kaltim Peaker 2 will be constructed adjacent to the already operating

Tanjung Batu Power Plants Complex (PPC), which consists of the Kaltim Peaker 1 and Tanjung

Batu PP. The gas supply will take place through a new gas pipeline, which will be constructed for

the supply of the existing PPC. Access to the new Kaltim Peaker 2 site is possible on the already

existing access road to the Tanjung Batu PPC. Backup Diesel haulage and storage as well as

water supply and wastewater disposal will use already existing facilities of the Tanjung Batu PPC.

Power evacuation will be done via already existing power lines.

7203F96/FICHT-19385689-v2 3

7. The new project is in principle a duplication of the Kaltim Peaker 1 project and the new site

located directly adjacent to the Kaltim Peaker 1 site within the Tanjung Batu PPC. Therefore the

environmental impacts of Kaltim Peaker 2 will be overlapping with the impacts from the other power

plants within the Tanjung Batu PPC and cumulative impacts must be considered. This is especially

true for air emissions and noise, hazardous waste management, and water consumption and

wastewater releases. These issues have been addressed in detail in the EIA Report for the planned

project, consistent with national laws and regulations as well as international guidelines.

8. Gas supply for Kaltim Peaker 2 will be provided by the gas producer i.e. VICO Indonesia,

through a new gas pipeline (55 Km) from Muara Badak, East of Tanjung Batu. The new pipeline will

use an existing ROW; hence PLN does not need to acquire additional land.

9. Presently all power plants within the Tanjung Batu complex run on HSD, which is delivered

every 4 days by a 6,000 dwt tanker through a jetty on the Mahakam riverbank and stored in fuel

tanks within the complex. The minimum water depth at the jetty is 6.5 m.

10. The proposed project site is located near Tanjung Batu Village, Tenggarong Seberang

District, Kutai Kertanegara Regency, in East Kalimantan Province. The plant site is located south of

the Tanjung Batu PPC, directly bordering the existing Kaltim Peaker 1 in the North. The land for the

planned Kaltim Peaker 2 is owned by PLN and it is uninhabited and unfarmed. PLN started

acquiring land in 1998 on to 2006 for a total of 1,709,190 m2 (171 ha). The official certificate (Buku

Tanah Propinsi Kalimantan Timur Kabupaten) grants PLN the right to build (Hak Guna Bangunan)

on the land for 30 years, i.e., until April 1st 2028. The certificate can be extended in due course.

From these 171 ha, 5 ha will be used for the Kaltim Peaker 2, hence there is no need to acquire

additional land.

11. The existing Tanjung Batu Power Plant Complex presently consists of 2 power plants1:

(i) PLTGU Tanjung Batu i.e. gas turbine combined cycle 60 MW (2x20 MW GT (gas turbine)

and 1x20 MW ST (steam turbine) dual fuel i.e. gas and HSD (high speed diesel). Start of

operation in 1997. However, gas supply declined, hence since 2013 the power plant runs by

using HSD;

(ii) PLTGU Kaltim Peaker 1 (in operation since 17 March 2014 for unit 1, and 18 April 2014 for

unit 2), installed capacity 2x80 MW open cycle gas turbine; COD (commercial operation

date) 2x60 MW, planned as dual fuel. The plant has never used gas and only runs by HSD

since the first operation.

C. Implementation Progress as of September 2017

12. Kaltim 2 Peaker subproject is currently in pre-construction stage with PLN still generating

the necessary permits prior to construction.

13. Total land which has already been acquired more than 10 years ago by PLN is 171 ha:

1 There have been two more small power plants operating at the site but both of them have been taken out of

operation, the last of them in July 2017

7203F96/FICHT-19385689-v2 4

20 ha are fenced with a controlled entrance gate and are presently used as location for 2

power plants including project associated infrastructure (office building, substation, control

room, WWTP, warehouse, canteen etc.);

5 ha will be provided for Kaltim 2 Peaker; and

20 – 25 ha are intended to be used for a PV solar plant.

14. The remaining land within the PLN property is forest (a critical habitat with a small

population of Proboscis monkeys, endemic to Kalimantan), swampland, and secondary bushland.

Human land use and infrastructure comprises PLN housing, school, the access road, non-

permanent houses/shelters and farmland. The farmland is managed by local communities living in

the surrounding of PLN land, with permission from PLN to manage the land.

D. Environmental Categorization, Assessment and Reporting

15. Following ADB’s Safeguard Policy Statement 2009 (SPS 2009) environmentally the Kaltim

Peaker 2 project falls into Category A, mainly because of the project size (100 MW thermal power

plant) and the presence of rare and endangered species in the wider project area, especially

Proboscis Monkeys.

16. An Environmental Assessment and Review Framework (EARF) has been prepared for the

Eastern Indonesia Sustainable Energy Access Sector Project, and an EIA report was conducted for

Kaltim Peaker 2.

E. Institutional Setup and Responsibilities

17. The project executing agency will be the PLN Pusat, which will be responsible for overall

project implementation. The PLN Region (Kalimantan Timur and Utara) will coordinate and

supervise project preparation, while the UIP Kalimantan Bagian Timur IX will be responsible for

supervising procurement and project implementation.

18. The implementing agency will be the PLN Region Kalimantan Timur and Utara, which is

responsible for development of all Power Plants in Kalimantan Timur. PLN Sector of Mahakam is

responsible for project construction, operations management, finance and accounting and

maintenance of infrastructure assets. UIP Kalimantan Bagian Timur IX will be responsible for

coordinating and implementing all project components. PLN Pusat has numerous experiences with

ADB and World Bank projects, and the personnel are familiar with ADB procurement policies and

procedures.

19. The project will be implemented over 2 years from June 2018 to June 2020. The longer

implementation period is due to the fact that this project is linked to the previous Kaltim Peaker 1

project. All procurement to be financed under the ADB loan will be carried out in accordance with

ADB’s Procurement Guidelines (2017).

7203F96/FICHT-19385689-v2 5

II. COMPLIANCE WITH ENVIRONMENTAL SAFEGUARDS REQUIREMENTS AND

IMPLEMENTATION

20. The approach for this due diligence is anchored on consultation and participation of

Regional PLN, UIP IX, and the Executing Agency (EA), as well other community members.

The following data sources and methods were used to set up this DD Report:

(i) One site visit was conducted, together with PLN safeguards officials, PLN – UIP, and the

PPTA environmental team, from 15 - 17 March 2017, to set up this Due Diligence Report.

(ii) Key interviews and discussions were held with staff of Tanjung Batu PP/PLN Sector

Mahakam, process was conducted by staff of UIP Kalimantan Bagian Timur (UIP IX);

(iii) Public consultations were conducted with focus on public acceptance and eventual

complaints against the Tanjung Batu PP activities; village members involved in community

relations were interviewed as well;

(iv) A review of all available project documents was conducted with support from PLN,

especially regarding secondary data and analysis.

A. Monitoring Requirements Based on National Environmental Laws

21. To verify compliance with national environmental requirements, Environmental Management

and Monitoring Reports for years 2014-2016 were used to obtain monitoring results and compare

them with requirements stipulated in the respective national environmental laws and regulations for

the Tanjung Batu Power Plant Complex.

a. Stack Emissions Monitoring Requirements

22. Based on Minister of Environment Regulation No. 21/2008 regarding Fixed Emission Quality

Standards for Thermal Power Plants, the required parameters to be monitored are SO2, NO2, TSP,

opacity and CO. Monitoring parameters and locations are presented in the following tables.

Table 1: Stack Emissions Monitoring Parameters

No PARAMETER UNIT QUALITY STANDARDS *)

METHOD **) Diesel Gas

1 Sulphur Dioxide (SO2) mg/Nm3 800 150 Gas Analyzer

2 Nitrogen Dioxide (NO2) mg/Nm3 800 400 Gas Analyzer

3 Total Suspended Particulate (TSP)

mg/Nm3 150 30 SNI 19-7117.12-2005

4 Opacity % 20 - SNI 19-7117.11-2005

5 Carbon Monoxide (CO) mg/Nm3 600 - Gas Analyzer

6 Flow velocity m/s - - Manometer

*) Minister of Environment Regulation No. 21/2008, Fixed Emission Quality Standards for Thermal Power Plant, Appendix III A (Gas and Steam Power Plant) IV A (Diesel Power Plant)

**) PT. iTEC Solution Indonesian

Source: Environmental Management and Monitoring Report, 2015

7203F96/FICHT-19385689-v2 6

Required monitoring frequency is every 6 months at designated monitoring locations, i.e. stacks of

Tanjung Batu PP and Kaltim Peaker 1. Available coordinates of the monitoring points are presented

in Table 2.

Table 2: Locations of the Stack Emissions Monitoring Points

LOCATION COORDINATE

South East

GT #1 00° 22’ 55’’ 117° 03’ 3’’

GT #2 NA NA

Peaking No. 1 00° 23’ 52’’ 117° 03’ 2’’

Peaking No. 2 00° 23’ 58’’ 117° 03’ 5’’

b. Monitoring Requirements for Ambient Air (24 hours)

23. According to Government Regulation No. 41/1999, National Quality Standards for Ambient

Air, values of SO2, NO2, TSP and CO are required for monitoring. Due to the usage of diesel at

Tanjung Batu Power Plant, carbon monoxide emission was monitored as well. Ambient air

monitoring parameters are given in Table 3.

Table 3: Ambient Air Monitoring Parameters

No PARAMETER UNIT QUALITY

STANDARDS *) METHOD **)

1 Sulphur Dioxide (SO2) µg/m3 365 SNI 19-7119.7-2005

2 Nitrogen Dioxide (NO2) µg/m3 150 SNI 19-7119.2-2005

3 Total Suspended Particulate (TSP)

µg/m3 230 SNI 19-7119.3-2005

4 Carbon Monoxide (CO) µg/m3 10000 SNI 19-7119.10-2011

*) Government Regulation No. 41/1999, National Quality Standards for Ambient Air

**) PT. iTEC Solution Indonesian

24. The monitoring takes place at designated monitoring locations in the Tanjung Batu office

yard, the PLN staff housing and in Tanjung Batu Village. Coordinates of the monitoring points are

shown in Table 4.

Table 4: Locations of the Ambient Air Monitoring Points

LOCATION COORDINATE

South East

Tj. Batu Office yard 00° 22’ 49,10’’ 117° 03’ 2,91’’

PLN Housing 00° 23’ 23,66’’ 117° 03’ 9,90’’

Tj. Batu settlement 00° 22’ 46,05’’ 117° 03’ 24,71’’

7203F96/FICHT-19385689-v2 7

c. Noise Monitoring Requirements

25. For far-field limits (Noise Sensitive Receptors (NSRs)), the A-weighted sound pressure level

at specific locations must not exceed the corresponding limit values as specified in Table 5. The

given values are valid for both day time and night time.

Table 5: Noise Monitoring Parameters

PARAMETER QUALITY STANDARDS *) METHOD **)

Industrial Area Settlement and Housing Area Sound level meter Noise 70 dB(A) 55 dB(A)

*) Minister of Environment Regulation No. 48/MENLH/11/1996, Noise Quality Standards

**) PT. iTEC Solution Indonesian

26. Within the property limits/plant boundary (power plant fence), the A-weighted sound

pressure level must not exceed the corresponding limit values 70 dB(A) for day time, and 60 dB(A)

for night time (Minister of Environment Regulation No. 48/MENLH/11/1996).

27. Required monitoring frequency is every 6 months at the designated monitoring locations as

described in Table 4 above.

d. Wastewater Monitoring Requirements

28. Monitoring requirements for Tanjung Batu PPC are stipulated in the Wastewater Disposal

Permit No: 660.1/016/B.II.1/SK/BLHD/IV/2013, for PLN Regional East Kalimantan, Mahakam

Sector, Tanjung Batu PLTGU. According to the permit, the wastewater monitoring includes

operations and maintenance of PLTGU, including its auxiliary equipment. Applicable Standard is

the Local Regulation of East Kalimantan Province No. 2/2011, Water Pollution Control and Water

Quality Management, Appendix I.37 and I.39.

Table 6: Wastewater Monitoring Parameters

NO PARAMETER MAXIMUM LEVEL (mg/L) METHOD

1 pH 6 – 9 SNI 06-6989.11-2004

2 TSS 100 SNI 06-6989.27-2005

3 Free Chlorine (Cl) * 0.5 SNI 06-6989.11-2004

4 Oil and Grease 10 SNI 06-6989.11-2004

5 Total Chromium (Cr) 0.5 SNI 06-6989.11-2004

6 Copper (Cu) 1 SNI 06-6989.11-2004

7 Iron (Fe) 3 SNI 06-6989.11-2004

8 Zinc (Zn) 1 SNI 06-6989.11-2004

9 Phosphate (PO4-) ** 10 SNI 06-6989.11-2004

10 Total Organic Carbon 110 SNI 06-6989.11-2004

Source: Perda Kaltim No. 2/2011, Appendix I.39 (main process)

*) cooling water blowdown streamed to the WWTP **) if phosphate injection

7203F96/FICHT-19385689-v2 8

29. Required monitoring frequency is once per month at the discharge point of the PLTGU

Tanjung Batu.

30. Monitoring of wastewater temperature is not required according to the existing permit, thus

regular measurements regarding effluent temperatures were not conducted. However, in 2017

the Tanjung Batu PP operated occasionally, and temperature tests from the outlet of the condenser

(warm wastewater) were made. These measurements showed that the wastewater temperature

was up to a maximum of 38°C. The maximum national standard of temperature for wastewater

releases is 40°C (Minister of Environmental Regulation No. 8/2009, regarding Wastewater Quality

Standards of Thermal Power Plants).

e. Hazardous Waste of PLTGU Tanjung Batu

31. Management of hazardous waste at Tanjung Batu PP is regulated based on the Hazardous

Waste Temporary Storage Permit No: 660.1/43/BLHD/III/ 2015, for PLN Regional East Kalimantan,

Mahakam Sector, Tanjung Batu PLTGU, Building/warehouse dimension: 7 x 10.70 m2.

32. The expire date of this license was 30 March 2017, but according to a notification letter from

the Environmental Agency to PLN Tanjung Batu the Hazardous Waste Temporary Storage Permit

has been extended.

B. International Guidelines

a. Air Emission Limits

33. The International Finance Corporation (IFC, World Bank Group) defined guidelines for the

emissions of facilities producing more than 50 MWth using combustion engines and combustion

turbines (Table 7).

Table 7: IFC emission guidelines for facilities larger than 50 MW with combustion turbines and combustion engines (IFC, 2008)

Pollutant

ELV [mg/Nm3] for combustion engines; facilities > 50 MWth

ELV [mg/Nm3] for combustion turbines; facilities > 50 MWth

Natural Gas Liquid fuels < 300 MWth Natural Gas Other fuels

CO NE NE NE NE

SO2 NE 0.5 - 2%S/1,170 NE 0.5 - 1 % S

NO2 400 (dual

fuel) 400 - 2,000 (dual fuel) 51 152

TSP NE 30 - 50 NE 30 - 50

Dry gas, excess O2

content 15% 15% 15% 15%

Temperature flue gas

0°C 0°C 0°C 0°C

NE: Non-existent

7203F96/FICHT-19385689-v2 9

b. Air Quality Standards

34. The Air Quality Standards are defined according to the different levels of hazard that the

pollutants pose depending on the exposition period. This way, the standards are defined for

different time frames, allowing the protection against the short term acute impacts, the medium

term impacts and the long term impacts.

35. IFC states that emissions from projects shall not result in pollutant concentrations in the

ambient air that reach or exceed the relevant ambient air quality guidelines and standards by

applying the national legislated standards or, in their absence, the World Health Organization

(WHO) Guidelines or other internationally recognized sources like the U.S. EPA (United States

Environmental Protection Agency) or the European Council Directives (ECD). The World Health

Organization (WHO) Guidelines for averaging period of 24 hours are given in Table 8.

Table 8: WHO Guidelines for Ambient Air Quality

Pollutant Averaging period Air Quality Standards [μg/m³] *

WHO

CO 24 hours -

SO2 24 hours

125 (IT1)

50 (IT2)

20 (GL)

NO2 24 hours -

PM10 24 hours

150 (IT1)

100 (IT2)

75 (IT3)

50 (GL)

TSP 24 hours -

IT = Interim target; IT are provided in recognition of the need for a staged approach to achieve the recommended guidelines | GL = Guideline

* 20°C and 101.3 kPa

c. Noise Level Guidelines

36. This section addresses noise level guidelines beyond the property boundary of the facilities

according to the IFC General EHS Guidelines. Noise impacts should not exceed the levels

presented in Table 9, or result in a maximum increase in background levels of 3 dB at the nearest

receptor location off-site.

7203F96/FICHT-19385689-v2 10

Table 9: Noise Level Guidelines (IFC, 2007)

One Hour LAeq (dBA)

Receptor Daytime

07:00 - 22:00

Nighttime

22:00 - 07:00

Residential, institutional,

educational

55 45

Industrial, commercial 70 70

d. Wastewater Guidelines

37. Effluent guidelines are applicable for direct discharges of treated effluents to surface waters

for general use. Guideline values for process emissions and effluents in this sector are indicative of

good international industry practice as reflected in standards of countries with recognized

regulatory frameworks. These levels should be achieved, without dilution, at least 95 percent of the

time that the plant or unit is operating, to be calculated as a proportion of annual operating hours.

Table 10: Effluent Guidelines (IFC, 2008)

Parameter mg/L, except pH and temp

pH 6-9

TSS 50

Oil and grease 10

Total residual chlorine 0.2

Chromium - Total (Cr) 0.5

Copper (Cu) 0.5

Iron (Fe) 1.0

Zinc (Zn) 1.0

Lead (Pb) 0.5

Cadmium (Cd) 0.1

Mercury (Hg) 0.005

Arsenic (As) 0.5

Temperature increase by thermal discharge from cooling system

Site specific requirement to be established by the EA.

Elevated temperature areas due to discharge of once-through cooling water (e.g., 1 Celsius above, 2 Celsius above, 3 Celsius above ambient water temperature) should be minimized by adjusting intake and outfall design through the project specific EA depending on the sensitive aquatic ecosystems around the discharge point.

Note: Applicability of heavy metals should be determined in the EA. Guideline limits in the Table are from various references of effluent performance by thermal power plants.

7203F96/FICHT-19385689-v2 11

C. Monitoring Results

a. Results of Air Emissions Monitoring

Tanjung Batu Gas Turbine Combined Cycle - 60 MW

38. Fichtner had access to emission data for this plant for the years 2014, 2015, and 2016. It is

known that the plant operates exclusively with HSD since 2013, and that in the second semester of

2015 only one turbine was operating.

39. HSD with 1.2% of sulfur (S) has been assumed to be used. The IFC EHS Guideline for

Thermal Power Plants (2008) states up to 1.0 % S for non-degraded airsheds, and up to 0.5 % S

for degraded airsheds. The characteristics of the HSD have been discussed in the Feasibility

Study for the Kupang Peaker 1, to be built in the Nusa Tenggara Timur Province. It is assumed

that the same HSD type will be used throughout the country.

40. The emission data show that the national emission limit values are respected, but that the

international ones regarding the amount of sulfur (S) in the fuel and the concentration of emitted

NO2 are not.

Table 11: Air Emissions Monitoring Results Tanjung Batu Gas Turbine Combined Cycle

No PARAMETER SOURCES

PERIOD 2014 PERIOD 2015 PERIOD

2016 Quality *) Standards Semester

I Semester

II Semester

I Semester

II Semester

I

1 SO2 (mg/Nm3) GT #1 - 42 - 1 1

800 GT #2 15 36 - - -

2 NO2 (mg/Nm3)

GT #1 - 256 - 267 21 800

GT #2 344 256 - - -

3 TSP (mg/Nm3)

GT #1 - 10.32 - 21.87 18.56 150

GT #2 7.74 49 - - -

4 Opacity (%) GT #1 - 10 - 10 10

20% GT #2 5 10 - - -

5 CO (mg/Nm3) GT #1 - 486 - 260 43

600 GT #2 517 476 - - -

6 Flow velocity (m/s)

GT #1 - 13.41 - 11.64 17.26 -

GT #2 - 13.6 - - -

Source: Environmental Management and Monitoring Report, 2014 – 2016.

*) Minister of Environment Regulation No. 21/2008, Fixed Emission Quality Standards for Thermal Power Plant, Appendix

III A (Gas and Steam Power Plant).

Note: in Semester II 2015 up to Semester I 2016, only GT #1 was operating, due to the repair works on the GT#2.

7203F96/FICHT-19385689-v2 12

Kaltim 1 Gas Fired Power Plant - 100 MW

41. Fichtner was given access to emission data for the existing Kaltim Peaker 1 (Table 12).

Data which were not made available have been estimated based on available technology and on a

combustion calculation. As a basis for the combustion calculation, HSD with 1.2% of sulfur (S) has

been assumed to be used. The characteristics of the HSD have been consulted in the Feasibility

Study for the Kupang Peaker 1 Plant, to be built in the Nusa Tenggara Timur Province. It is

assumed that the same HSD type will be used throughout the country.

42. All monitoring parameter concentrations are below the national and the international

emission limit values applicable, with the only exception of the maximum amount of S in the fuel,

following international standards.

Table 12: Air Emissions Monitoring Results - Kaltim 1 Gas Fired Power Plant

No PARAMETER SOURCES PERIOD 2016 Quality *)

Standards Semester I Semester II

1 SO2 (mg/m3) Peaking No. 1 1 1

650 Peaking No. 2 1 1

2 NO2 (mg/m3) Peaking No. 1 27 32

450 Peaking No. 2 18 46

3 TSP (mg/m3) Peaking No. 1 25.88 26.41

100 Peaking No. 2 23.55 33.15

4 Opacity (%) Peaking No. 1 10 10

20% Peaking No. 2 10 10

5 CO (mg/m3) Peaking No. 1 51 48

- Peaking No. 2 36 59

6 Flow velocity (m/s) Peaking No. 1 13.29 18.971

- Peaking No. 2 13.54 7.23

Source: Environmental Management and Monitoring Report, 2016.

*) Minister of Environment Regulation No. 21/2008, Fixed Emission Quality Standards for Thermal Power Plant,

Appendix II A (Gas Power Plant)

b. Results of Ambient Air Monitoring

43. The summarized results are shown in Table 13 as averages for the period 2014-2016 and

for all locations. The measured concentrations correspond to 24-hour averages for all pollutants.

7203F96/FICHT-19385689-v2 13

Table 13: Ambient Air Monitoring Results

No PARAMETER SOURCES PERIOD 2014 PERIOD 2015 PERIOD 2016 Quality *)

Standards I II I II I II

1 SO2 (µg/m3)

Office yard 0.02 44.47 0.07 10.74 8.74 8.74

365

PLN Housing

0.02 17.21 0.02 14.47 9.55 13.27

Tj. Batu settlement

0.04 19.63 0.13 13.15 8.25 11.77

2 NO2 (µg/m3)

Office yard 2.05 18.9 13.75 23.64 13.55 13.55

250 PLN

Housing 1.01 4.79 9.42 32.75 16.48 11.94

Tj. Batu settlement

3.15 2.5 11.46 30.48 15.62 9.66

3 TSP (µg/m3)

Office yard 117.7

8 29.86 117.78 29.86 31.25 31.25

230 PLN

Housing 84.4 53.31 84.4 53.31 25.67 30.28

Tj. Batu settlement

142.22

45.9 142.22 45.9 38.96 29.32

4 CO (µg/m3)

Office yard 2,280 683.8 1,140 854.21 1,176 1,176

10000 PLN

Housing 1,140

1,717.41

1,140 1,084.2

5 812 962

Tj. Batu settlement

1,140 591.38 1,140 1,231.8

7 1,375 1,124

Source: Environmental Management and Monitoring Report, 2014 – 2016.

*) Government Regulation No. 41/1999, National Quality Standards for Ambient Air

44. Table 13 shows that all measured and calculated concentrations are all well below national

and WHO standards (except for a single SO2 value in 2014, which is above the guideline value,

and below the interim target value).

c. Results of Noise Monitoring

45. The summarized noise monitoring results are shown in Table 14 as averages for the period

2014-2016 and for each location.

7203F96/FICHT-19385689-v2 14

Table 14: Noise monitoring results

No CRITERIA SOURCES PERIOD 2014 PERIOD 2015 PERIOD 2016 Quality *)

Standards I II I II I II

1 Industrial Area [dB (A)]

Office yard 72.6 59.3 52.2 54.33 48 51.1 70

2

Settlement and Housing Area

[dB (A)]

PLN Housing

50.1 61 49.7 49.57 51.2 51.3

55 Tj. Batu

settlement 50.2 62.5 51 52.85 42.2 54.3

Source: Environmental Management and Monitoring Report, 2014 – 2016.

*) Minister of Environment Regulation No. 48/MENLH/11/1996, Noise Quality Standards

46. As can be noticed in Table 14, minor exceedances of the national and international limits in

2014. However, results show neither exceedances of the national nor the international limit in the

following years.

d. Results of wastewater monitoring

47. The summarized wastewater monitoring results are shown in Table 15 and Table 16 as

averages for the year 2016. All values are in compliance with national requirements, however a

near-exceedance of international limit value of iron content can be observed in March, and one

exceedance in June. According to the monitoring results, free chlorine is not present in the

monitored wastewater.

48. Monitoring of lead, cadmium, mercury and arsenic was not required for the fulfillment of

national legal requirements, thus not performed. As most of the wastewater infrastructure is made

of steel these substances are not expected in the wastewater effluents.

Table 15: Wastewater monitoring results (Semester I 2016)

TEST PARAMETERS Standard (mg/L) *

SEMESTER I 2016

January February March April May June

pH 6 – 9 7.44 7.28 7.28 7.44 6.88 6.56

TSS 100 5.6 7.4 7.2 5.2 5.8 5.2

Free Chlorine (Cl) 0.5 0 0 0 0 0 0

Oil and Fat 10 0.005 0.008 0.01 0.007 0.016 0.097

Total Chromium (Cr) 0.5 0.009 0.009 0.0675 0.009 0.009 0.228

Copper (Cu) 1 0.0078 0.0164 0.0078 0.0078 0.0078 0.0078

Iron (Fe) 3 0.39 0.486 0.966 0.33 0.301 2.674

Zinc (Zn) 1 0.021 0.201 0.009 0.003 0.028 0.071

Phosphate (PO4-) 10 1.3699 1.0965 0.8618 1.1972 1.0086 0.0658

Total Organic Carbon 110 15.64 11.29 11.8 9.17 9.02 22.65

*) Perda Kaltim No. 2/2011

7203F96/FICHT-19385689-v2 15

Table 16: Wastewater monitoring results (Semester II 2016)

TEST

PARAMETERS

Standard

(mg/L) *

SEMESTER II 2016

July August September October November December

pH 6 – 9 7.28 7.43 6.65 6.89 6.88 6.4

TSS 100 9.2 3.115 13 30.8 3.115 4.2

Free Chlorine (Cl) 0.5 0 0 0 0 0 0

Oil and Fat 10 0.005 0.001 0.005 0.009 0.004 0.005

Total Chromium

(Cr) 0.5 0.009 0.009 0.009 0.009 0.009 0.009

Copper (Cu) 1 0.0078 0.0078 0.0078 0.0078 0.0078 0.0078

Iron (Fe) 3 0.516 0.27 0.318 0.604 0.33 0.213

Zinc (Zn) 1 0.004 0.003 0.003 0.003 0.003 0.003

Phosphate (PO4-) 10 1.3699 1.0965 0.8618 1.1972 1.0086 0.0658

Total Organic

Carbon 110 1.001 0.0882 0.9626 1.9225 1.0345 0.5022

*) Perda Kaltim No. 2/2011

e. Hazardous Waste Management

49. The Tanjung Batu power plant has a permit for temporary storage of hazardous waste and,

according to power plant staff, a legally-compliant approach for its handling, transportation, and

disposal. This Permit is also used for Peaker 1, and according to information from PLN Kaltim

Peaker 2 will use the same system.

f. Complaints by the Public

50. No complaints were made by local residents regarding the operation of the existing power

plant complex Tanjung Batu. Pointed questions regarding complaints against air pollution or noise

from this site were always negated.

7203F96/FICHT-19385689-v2 16

III. FINDINGS AND RECOMMENDATIONS

51. The Tanjung Batu Power Plant Complex was not financed or co-finaced by ADB and

therefore not planned or built under consideration of the ADB safeguard regulations. Only national

environmental requirements were considered.

52. Environmental management is implemented and semi-annual monitoring is conducted in

accordance with the required national environmental regulations, with monitoring focus on air

emissions, ambient air quality, noise emissions, and wastewater quality.

53. Most of the national and international environmental safeguards have been complied with

satisfactorily in the Tanjung Batu Power Plant Complex. Several non-compliances with the

international requirements have been noted.

54. The air emission data show that the national emission limit values at Tanjung Batu PP are

respected.

55. International limits regarding the amount of sulfur in the fuel and the concentration of

emitted NO2 are partially not complied with.

56. HSD used in the Tanjung Batu PPC has a sulfur content of 1.2%, whereas the IFC EHS

Guideline for Thermal Power Plants (2008) states up to 1.0 % S for non-degraded airsheds, and up

to 0.5 % S for degraded airsheds is forseen. The Tanjung Batu Power Plant Complex is operating

in a non-degraded airshed. PLN should use low-sulphur HSD (up to 1 % S) for the plant operation

to comply with international standards.

57. Measurements of NO2 emissions in the yard of Tanjung Batu PP showed up to 344 mg/Nm3

NO2, which is not compliant with the 152 mg/Nm3 NO2 standard of the IFC emission guidelines.

58. Minor exceedances of the national and international limits for noise level occurred in 2014.

However, results show no exceedance of the neither national nor international limits in the

succeeding years at all receptor points.

59. All values of wastewater are in compliance with national requirements, however a near-

exceedance of international limit value of iron content can be observed in March 2016, and an

exceedance in June 2016.

60. For hazardous waste handling, transportation, and disposal a legally-compliant approach is

implemented in the Tanjung Batu PP.

61. Complaints from the local residents concerning environmental safeguards have not been

identified.

62. It is important that PLN continues their efforts to comply not only with the relevant national

environmental policies but also to fulfill ADB’s environmental safeguard requirements.

63. With construction of the new gas pipeline, the Tanjung Batu PP complex is expected to

increase use of natural gas as a main fuel, which is expected to have positive effects especially

regarding the emission of SO2.

7203F96/FICHT-19385689-v2 17

IV. REFERENCES

Government Regulation No. 41/1999, regarding National Quality Standards for Ambient Air;

Minister of Environment Regulation No. 21/2008, Fixed Emission Quality Standards for Thermal

Power Plant;

Minister of Environment Regulation No. 48/MENLH/11/1996, regarding Noise Quality Standards;

Environmental Management and Monitoring Report of Tanjung Batu Power Plant 2014 – 2016;

Addendum of AMDAL Document Kaltim Peaker 2;

EIA Report Kaltim Peaker 2;

DDR Kaltim 2 Peaker for Social Safeguard;

IFC, 2008: Environmental, Health, and Safety Guidelines for Thermal Power Plants, International Finance Corporation, December 2008

IFC, 2007: Environmental, Health, and Safety (EHS) Guidelines, General Ehs Guidelines:

Environmental Noise Management, 1.7 Noise, International Finance Corporation, April 2007


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