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BURGOS WIND PROJECT Environmental and Social Impact Assessment Report

June 2014

This summary is prepared by EBWPC to complement the ESIA produced by GHD

2 Environmental & Social Impact Assessment – Summary

Burgos Wind Project

I. Introduction

The Environmental and Social Impact Assessment (ESIA) was conducted consistent with the International Finance

Corporation (IFC) performance standards and its guidance notes, which include conformance to the host country’s

environmental assessment laws and regulations (i.e. the Philippine Environmental Impact Statement System and

its Implementing Rules and Regulations). Specifically, the ESIA was conducted to:

- Assess in detail the environmental, social, and health impacts that would result from the proposed Burgos

Wind Project

- Identify environmental and social mitigation measures to address the impacts identified

- Develop an appropriate Environmental and Social Action Plan for the proposed Burgos Wind Project

based on the mitigation and enhancement measures developed in the EPRMP, in accordance with

national and international regulations (e.g. DAO 2003-30 and IFC Performance Standard)

The ESIA was also prepared in accordance with the Equator Principles used by the financing institutions. It was

prepared using several EIA reports as references. EIA reports include the Initial Environmental Examination (IEE)

Reports submitted on April 2000 and February 2002 and Environmental Performance Report and Management

Plan (EPRMP) submitted on September 2010 and July 2013 to the Department of Environment and Natural

Resources- Environmental Management Bureau Region 1 (DENR-EMB R1) in compliance with the Philippine

Environmental Impact Statement System (PEISS) under Presidential Decree (PD) 1586.

II. Project Description

Project Location

EDC Burgos Wind Power Corporation (“EBWPC” or the “Company”), a wholly owned subsidiary of the Energy

Development Corporation (“EDC”), is developing the Burgos Wind Project (the “Project”) located in Barangays

Saoit, Nagsurot and Poblacion, in the Municipality of Burgos, Province of Ilocos Norte, Northern Philippines. The

location is located approximately 500 km north of Manila.

Figure 1-1 shows the proposed location of the project which is located in a largely unpopulated an undeveloped

area in the region. The Project will involve the construction and installation of up to 55 wind turbine generators

(WTG), access roads, a substation within the approximately 600 hectares development block. Proposed

development plan is to begin construction on June 2013 and works will be completed by end- 2014. Indicative

project capital expenditure is at USD 400 million.

Project Design and Layout

EBWPC identified approximately 618 out of the 1,296 hectares of the service contract area as the Project

development block. This spans three barangays, namely Barangays Saoit, Poblacion, and Nagsurot. The selection of

the Project site was based on the following considerations:

- Positive results of measurement of wind speed and direction performed over a period of at least eight

years

- Avoidance of residential areas in the three impact barangays

- Avoidance of environmental critical areas (ECA) such as critical slope and potential tourist areas

After a long process of tendering and revisions, Vestas and its proposed project design layout using the Vestas V90-

3.0MW machines were chosen. Different factors were also considered in determining the final location of each


Burgos Wind Project

WTG, including geological and geohazard results, visual considerations, wind viability, and soil conditions among

others.

Project Components

Wind Turbine Generators

WTG Specifications Details

Make and Model Vestas 3.0MW V90

Hub Height 75m

Blade/ Rotor Diameter 90m

Type of Tower Conical tubular

Rated Wind Speed 16 m/s

Cut-in Wind Speed 3.5 m/s

Cut Out Wind Speed 2.5 m/s

It was originally envisaged that a total of up to 55 WTGs with a capacity of 3 MW each will be built within the

development block. Current site optimization studies though have suggested installing only 50 WTGs. Figure 2

shows the proposed layout of the 50WTG Project.

Substation and Control Center The substation will connect the Project to the Luzon Grid through the National Grid Corporation of the Philippines’

(NGCP) substation in Laoag City. An on-site control building will house the data collection and communication

equipment for the operations of the wind farm.

Support Facilities These include access roads, wind masts, temporary batching plant, jetty, staging areas, and temporary facilities of

the contractors.

Project rationale

In December 2008, the Philippine legislative division signed into law Republic Act 9513 or the Renewable Energy

Act of 2008. The Philippines exhibits a promising potential for wind energy development and this has attracted

various energy companies to enter the wind energy industry. As of April 2014, 45 wind service contracts have been

awarded to 24 developers. Among those, seven projects are located in the vicinity of the Burgos Wind Project.

The Project is being proposed for the following reasons:

1. The Project addresses 1.5% of the projected demand growth for electricity in the Philippines’ Luzon Grid

The 2012–2030 Philippine Energy Plan of the Department of Energy (DOE) shows that the energy demand in

the country is expected to grow with the Philippine economy. With electricity demand expected to grow at 4.8

percent per annum, an additional 10,500 MW of new capacity is needed in the Luzon grid onwards to 2030. Of

the 10,500 MW, 600 MW is needed by 2016 to meet the forecasted demand. The Project is expected to

contribute up to 165 MW to the grid by 2015.

2. The Project promotes fuel diversification and improves fuel security and sufficiency

The electricity generated by the Project is expected to offset the power generated by coal and oil-fired power


Burgos Wind Project

plants in the Luzon grid. Since the Project harnesses wind to generate power, the Project is further expected

to promote Philippine fuel security and help reduce the country’s dependence on imported fuel.

3. The Project supports the regulatory framework that grants financial benefits to the host Communities The RE Law provides for a one percent royalty fee based on Gross Income which the developer is required to

remit to the Philippine government with 40% of the royalty fee shall be distributed to the local government

and further allocated downwards from the provincial to municipal to the barangay level. A government share

is also collected from a generation company based on kWh generated to be allocated for the community’s

financial benefit.

4. The Project benefits from the establishment of a Feed-In Tariff System The proposed Philippine Feed-in Tariff System (FiT) is patterned after other successful international schemes.

It guarantees the purchase of all output from FiT-eligible technology such as wind at a FiT rate for a period of

at least 15 years. Below are some specific features of the scheme that are aimed at improving the financial

viability of wind farms while reducing project risks:

o Priority connections to the grid for electricity generated from emerging renewable resources,

such as wind.

o The priority purchase, transmission of, and payment for such electricity by the grid system

operator. This eliminates the need to sign individual off-take agreement with provincial electric

cooperatives and distribution utilities.

o A cost sharing mechanism that will allow additional cost of the FiT to be recovered equally from

all consumers connected to the transmission and distribution grids. The scheme is therefore

more robust since it does not rely on any government budget allocations for it to be successfully

implemented.

Legal and Policy Framework

The Burgos Wind Project was awarded a Wind Energy Service Contract (WESC) by the Department of Energy (DOE)

on 14 September 2009. This WESC provides the developer exclusive rights to develop wind energy resources in the

identified service contract area for 25 years, until 2034, and is renewable for another 25 years. The design life of

the current equipment is for 20 years.

Moreover, the environmental impact assessment (EIA) of the Burgos Wind Project started as early as year 2000

when the project was conceptualised as the Northern Luzon Wind Power Project under the then PNOC-EDC.

Several EIA reports were submitted to the Environmental Management Bureau (EMB) Region 1 for the application

of the Environmental Compliance Certificate (ECC) from year 2000 to 2013 due to amendments on project

development plans as a result of evolving design concepts. Currently, the project holds an ECC for the

development of up to 165MW of wind energy in the development block.


Burgos Wind Project

III. ESIA Assessment Methodology

The ESIA is being conducted in compliance with IFC Performance Standards which underpin the Equator Principles

and the World Bank safeguard policies. The Project has been categorized under Category B of the aforementioned

standards, which is described as “Projects with potential limited adverse environmental and social risks and/or

impacts that are few in number, generally site specific, largely reversible and readily addressed through mitigation

measures”. Philippine environmental and social regulations are also considered in correspondence with the

Equator Principles and IFC Performance Standards.

Potential environmental and social issues were identified for study against established baseline conditions. Each is

further discussed in the succeeding sections, and evaluates the Project’s impact and possible

mitigation/enhancement activities:

Environmental Issues Affected Phase

(Construction or Operations)

Land Use

- Overlap in land use

- Access to environmentally critical areas (ECA)

Construction & Operations


Noise

- Construction noise

- Increase in ambient noise

Construction

Operations

Biodiversity

- Vegetation removal

- Habitat and species fragmentation

- Species disturbance

Construction

Construction

Construction

Drainage and hydrology

- Water sourcing

- Drainage morphology

Construction

Construction

Soil, Water Quality and Contamination

- Soil loss

- Water contamination

- Change in surface topography/landform

Construction


Construction

Air Quality

- Dust generation

Construction

Traffic, access, safety

- Traffic congestion

Construction

Landscape Visual Assessment

- Presence of WTG


Social Issues Affected Phase

(Construction or Operations)

Socio-Economic Issues

- Social acceptability

- Displacement

- Generation of benefits





Burgos Wind Project

- Public safety, health, resource competition

- Noise, shadow flicker

Construction


Heritage and Cultural resources

- Tourism activities


IV. Potential Impacts and Mitigation

Physical Aspects

Noise This assessment considers the potential noise impacts from the construction and operation of the Burgos Wind

Project. Measurement of ambient noise condition in the proposed site was conducted during the assessment and

receptors that may potentially be affected were identified. Ocular and ambient noise measurements were taken

on 22 April to 3 May 2013. The CadnnA model was used to simulate noise.

This assessment has considered the potential for noise impacts resulting from the construction and operation of

the proposed Burgos Wind Project. The assessment of noise was undertaken following the Philippine NPCC MC

1982-22 and the IFC General Environmental Health and Safety Guidelines of 2007. There are 24 receptors

identified that are in close proximity to the project footprint and its vicinity. Distance of receptors varies from 250–

500 m away from the nearest WTG unit. Construction related noise levels complied with NPCC Class A standard

and IFC standard of 55 bB(A) during daytime but it exceeded the standard of 45 dB(A) during night time for

receptors located within 250 m from the nearest WTG unit. This can be mitigated by limiting project construction

activities during daytime period. During operation phase, predicted noise levels at two receptors (R-02 and R-03)

exceeded the 45 dB(A) night time standards of NPCC Class A and IFC with values ranges at 46–48 dB(A) at wind

speeds equal or greater than 12.1 m/s.

Possible measures to address and monitor impacts resulting from the operation of the Burgos Wind Project

include:

o Stakeholder engagement program that allows complaints to be received and addressed in a

timely manner

o Engine silencing

o Screening

o Acoustic enclosures

It is recommended that EBWPC consider the conduct of on-site validation of predicted noise levels from WTG

operations prior to or during the project commissioning. Cumulative noise levels at all receptors complied with the

adopted IFC standard with values less than 51 dB(A) at all wind speeds.

Biodiversity and Conservation Assessment The biodiversity and conservation assessment has considered the potential impacts resulting from construction

and operation of the proposed Burgos Wind Project. It was undertaken following Philippine and international

legislations and standards. Desktop studies as well as flora and fauna field surveys were undertaken to determine

the baseline characteristics in the project study area. Ecosystem services and biodiversity offsets were likewise

identified. The proposed project has an impact on terrestrial flora and fauna during construction phase (vegetation

removal, habitat fragmentation, species impact) and minimal impact during operation phase (tree pruning, bird


Burgos Wind Project

and bat strikes). Options for prevention, mitigation or enhancements have been suggested.

Drainage and Hydrogeological Assessment The location of the Burgos Wind Project has poor ground water potential. The development of springs and/or

surface water is the most feasible to supply requirements of the Project. Water permits can be acquired for the

extraction of water from the Kapurpurawan Spring and the Balbalayang Spring. A discussion with the local

government unit and local irrigation association is also recommended to ensure that no competition in water

sourcing happens with irrigation requirements.

Soil, Water, Air Quality Results of water quality analysis indicate generally clean waters in the study area. All results for all parameters in

all inland surface water stations, except for Kapurpurawan Creek downstream, were within the standards for Class

C and D waters. Result of water samples from wells exhibit water quality that is appropriate for the current use

(domestic and livestock) however, further treatment is necessary before it can be used as potable water.

Potential sources of water contaminants without the project are wastes generated from grazing animals or

livestock due to nutrient and bacteriological content of their waste. This, however, is not considered significant.

During construction, impacts of the project on soil include soil loss and increase in spoil. These can be mitigated

through the implementation of progressive soil removal and progressive rehabilitation. Spoils will also be properly

managed by temporarily placing them in designated areas away from natural barriers and can be later on use as

backfills. Potential sedimentation and contamination of streams due to construction activities can be mitigated by

implementation of an Erosion and Sediment Control Plan, proper solid waste and wastewater management and

proper maintenance of vehicles and machinery to prevent leakage.

The proposed project will have minimal impact on surface landform, topography, terrain or slope. Based on EGGAR

study conducted by PNOC-EDC, there is no active fault passing directly to the project site, which limits the

potential for ground cracking or subsurface rupture. Likewise, erosion hazards, sinkhole hazards, and earthquake-

generated hazards (ground vibration) pose little or no threat to the project site (EGGAR 2000).

Visual Impact GHD engaged Kimberly Graphics Philippines, Inc. (KGPI) to undertake the landscape and visual impact assessment

(LVIA) component of the ESIA. Twenty (20) initial viewpoints were established and sensitive receptors with

potential views of the wind farm were identified. Six (6) viewpoints were chosen for further assessment. Receptor

sensitivity and magnitude of potential impacts were established to determine the significance of both positive and

negative visual impacts for the construction and operation stages.

The predicted visual impact was demonstrated in photomontages and is summarized as:

- Generally the views of the project from the south along Manila North Road (represented by VP5) are

filtered or screened by vegetation and topography and pose no major impacts.

- VP1 located adjacent to the site, and VP3 located within the site, generally indicate that these areas will

experience the greatest change in views. In VP1 the project is seen to intrude into the natural scenery due

to the ‘disconnect’ of the areas on the top (the WTGs) and at the bottom of the escarpment

(Kapurpurawan). In contrast, in VP3 the WTGs are seen to become integral to and part of Palpalokada’s

scenery, framing much of its borrowed vistas. Changes at VP1, VP2 and VP3 are positive during operation

phase due to the added ‘attraction’ it would bring to the areas from an eco-tourism point of view.

- Predictably the Project’s impact on the visual amenity gradually reduces as one goes farther out. VP4


Burgos Wind Project

located approximately 2 km to the west of the site is predicted to be moderately impacted, whilst the

impact on VP6 17 km across Bangui Bay is of almost no significance.

Shadow Flicker Based on the study of EPHC (2009 cited in Wind Turbine and Health), the chance of conventional horizontal axis

wind turbines causing seizure for an individual experiencing shadow flicker is less than 1 in 10 million.

Eighty-three (83) houses exceeded the ‘real-case’ limit of 10 hours per year. Extrapolating the preliminary visual

obstruction results in a linear fashion, it may be assumed that the final results will identify no more than 2 houses

that could be removed from the realistic case results, reducing the number of affected houses in the realistic case

from 83 to 81. It may also be extrapolated that approximately 15 houses may fall into the category of being at a

‘lower risk’ of shadow flicker, and could potentially be treated separately from the other affected houses.

Collecting data on the location of the houses using GPS units increased the certainty of the number of houses that

would be affected by shadow flicker at present. However there were some issues found, including three locations

with clear transcription errors in coordinate locations. These anomalies could potentially be addressed by

resurveying these locations.

Based on the specific design and use of the houses assessed, EBWPC will consider in consultation with relevant

stakeholders what limits for shadow flicker may reasonably be adopted for the project, considering there is no

Philippine regulation or guidance on this environmental aspect of the Project.

Social Aspects

Land use This section describes the baseline condition of the project area and evaluates the impacts of the proposed Burgos

Wind Project on the existing land use. The project development block is classified as forest land, and alienable and

disposable (A&D) land with land areas of 219 ha and 399 ha, respectively. A Forest Land Use Agreement (FLAg) was

issued by the DENR to EBWPC in the use of the public land. No area in the development block was identified as

culturally sensitive and a Certificate of Non-Overlap was issued by the National Commission on Indigenous People.

Land use is largely dedicated as a foraging area for small scale livestock raisers. EBWPC has signed a Joint

Memorandum of Agreement with the local government units representing the communal pasture land for the

mutually beneficial activities across the area. Critical areas were also identified and recognized, of which mitigation

measures were considered in the siting of the WTGs.

Traffic, access, safety Traffic access and safety-related impacts associated during the operation and maintenance phase of project will be

insignificant given the minimal number of staff (i.e. around 10) who will be working during this phase.

Impacts are associated with the construction activities and delivery of material, which will involve a peak number

of 350 construction workers and 85 vehicles over a period of 19 months. These, however, can be appropriately

mitigated.

With suitable traffic management measures, impact of traffic flows for both general construction route and

transport of WTG components will be minimal and will not cause disruption to other road users. Appropriate


Burgos Wind Project

escort system, especially during delivery of WTG components, will be implemented to ensure safe environment for

both existing road users and construction site personnel.

Economic Aspects

Economic Displacement The wind farm project development block covers the entire 219 ha of the communal pasture land used by small

scale livestock raisers. During construction phase, impacts will include economic dislocation and social issues

resulting from displacement of livestock and cattle as well as reduction of grazing area. This may lead to loss of

livelihood or source of additional income for the impacted residents.

As emphasized during stakeholder consultation, specific areas within the pasture land will be identified and will

not be used for the wind project infrastructure development (i.e. temporary facility, road access, WTG). In case the

currently utilized foraging area will be used for project development, EBWPC with the assistance of the Municipal

Agriculture Office (MAO) and members of the Burgos Agri-based Association (BABA) will identify a suitable area

within the pasture land to replace the foraging area that has been allocated for the infrastructure development.

EBWPC will likewise provide the necessary technical and financial support in the development of the alternative

foraging area.

Foot patrol will be hired to prevent cattle and livestock from wandering around thus averting cattle death or injury.

A memorandum of agreement (MOA) was signed between the Local Government of Burgos, as the administrator

of the 247 ha communal pasture land and the Energy Development Corporation (EDC), owner of EBWPC, on

October 2008, stating the co-existence of a communal pasture land and a wind farm as beneficial arrangement for

both parties, for the common use, mutually beneficial purposes of the communal pasture land by EDC for the

construction, erection, operation and maintenance of a Wind Farm and by LGU for breeding, raising and pasturing

of the community’s livestock and other livelihood activities compatible with the operation and maintenance of the

Wind Farm.

Further, a social development plan (SDP) was developed to address issues and concerns raised by the community

regarding the project. The SDP was prepared in partnership with the host communities who assisted in identifying

community programs and projects through needs assessment. The SDP focuses on six key areas to include

livelihood, health, education, environment, culture, and infrastructure development.

Physical displacement is not expected since there is no inhabitant or settlement found within the project

development block. Likewise, commercial establishments at the end of the Kapurpurawan Road leading to the

Kapurpurawan Rock Formation will not be affected during construction phase.

During operation phase, impact on economic displacement is negligible. It is expected that during this phase, the

long-term agreement on shared use of land will continue to be implemented and both parties will have to meet

their responsibilities to ensure not only sustained livestock grazing and agricultural production but enhanced level

of development due to growing families of the livestock raisers.

V. Risk Assessment


Burgos Wind Project

Top three risks identified during the construction phase were (1) regulatory compliance due to breach, (2) water

availability due to competition, and (3) occupational safety due to accidents. All risks were rated extreme. With

control measures, residual risks for regulatory compliance and occupational safety were rated moderate, while

water availability was rated low.

Top three risks identified during the operation phase were (1) biodiversity and conservation due to bird/bat

strikes, (2) people safety due to blade throw, and (3) noise due to increased noise levels. Biodiversity and

conservation risk was rated high, while the other two were moderate. With control measures applied, top two

risks were reduced to moderate levels. Residual risk for noise was rated low.

Each identified risk during the workshop requires ongoing management control through the appropriate systems.

These risks are to be incorporated into the Environmental and Social Management Plan for the proposed project.

By doing so, monitoring programs could be established to assess ongoing performance and help predict whether

risk events would be more likely.

Management plans to be implemented during the construction phase include, among others:

Progressive rehabilitation

Biodiversity monitoring plan

Topsoil management plan

Erosion and sediment control measures

Dust management plan

Traffic management plan

VI. Environmental and Social Management Plan

Environment and Social Monitoring Plan The monitoring plan is designed to monitor compliance of EBWPC to environmental standards and ensure effective

implementation of mitigation measures that the Company has committed to undertake. The monitoring program

may be revisited during the project life cycle depending on the extent of activities involved in each of the project

phases.

During construction phase, flora and fauna will be monitored annually. Air is to be monitored quarterly. Water

quality, water contamination, noise-terrestrial fauna, noise-people, people-employment, and people-health and

sanitation are to be monitored monthly or as needed. People-access road, people-in migration, and people –

peace and order are to be monitored daily.

During operation phase, flora is to be monitored semi-annually. Air, water, shadow flicker, and noise-people are to

be monitored quarterly or as needed. Land-terrestrial fauna, people-in migration, and people-peace and order are

to be monitored daily.

Social Development Plan The social development plan focuses on five key areas, which include livelihood, health, education, environment,

and culture. EBWPC is committed to support community development as embodied in its Corporate Social

Responsibility (CSR) Program. The activities undertaken by the Company as well as subsequent social development

programs are as follows:


Burgos Wind Project

- Livelihood: Pasture development project with Burgos Agri-Based Association, livelihood skills training

- Health: Medical, surgical, and dental missions, Health and sanitation facilities in public schools

- Education: Manpower skills development

- Environment: BINHI: Tree for the Future Project program

- Culture: Sponsorships on various LGU activities such as kite-flying contests and fiestas

VII. Ancilliary Projects

Transmission Line

The Project will be connected to the Luzon grid via a 42-km 115kV single-circuit transmission line. This will traverse

4 municipalities namely, Burgos, Pasuquin, Bacarra and Laoag, spanning approximately 120 hectares. The

transmission line will be comprised of 147 structures, broken down into 127 lattice steel towers and 20 steel poles.

A Certificate of Non-Coverage (CNC) was secured in lieu of an ECC for the transmission line.

The transmission line traverses both private and public land. The 22.4 hectares of public land affected by the route

is covered by a Forest Landuse Agreement (FLAg) with the Department of Environmental & Natural Resources

(DENR). A comprehensive development plan is in place for compliance to the FLAg requirements.

burgos wind project - ekf - danmarks eksportkredit wind project... · development plan is to begin...

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