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Cirebon Expansion (JAWA-1) 1 x 1000 MW Coal Fired

Steam Power Plant IPP Project - ESIA


CT Cirebon Energi Prasarana

Non-Technical Summary (NTS)

IZ014000-NEM-RP-0026 | V2
December 2016

Tec hnic al R eport - Waste and Haz ardous Substanc es


CEPR
Non-Technical Summary

Cirebon Expansion (JAWA-1) 1 x 1000 MW Coal Fired Steam Power Plant IPP Project -
ESIA
Project no: IZ014000
Document title: Non-Technical Summary
Document No.: IZ014000-NEM-RP-0026
Revision: V2
Date: December 2016
Client name: PT Cirebon Energi Prasarana
Project manager: Bruce Clarke
Author: Pete Gabriel
File name: \\jacobs.com\NZProjects\AENVW\Projects\AE04515\Deliverables\Reports\Draft Technical
Reports\Non-Technical Summary

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Document history and status

Revision Date Description By Review Approved

V0 13.06.2016 First Draft Pete Gabriel B Clarke B Clarke

V1 19.09.2016 Issue to CEPR for Review Pete Gabriel B Clarke B Clarke

V2 19.12.2016 Issue Pete Gabriel B Clarke B Clarke

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Contents
1. Introduction ................................................................................................................................................ 4
1.1 Introduction .................................................................................................................................................. 4
1.2 Purpose of the Non-Technical Summary .................................................................................................... 4
2. Project Justification and Site Selection .................................................................................................. 5
2.1 Project Site .................................................................................................................................................. 5
2.2 Project Justification ...................................................................................................................................... 6
2.3 Alternative Sites ........................................................................................................................................... 7
2.4 Alternative Technologies ............................................................................................................................. 7
2.5 Transmission Line ....................................................................................................................................... 8
3. Phases of the Project .............................................................................................................................. 10
3.1 Introduction ................................................................................................................................................ 10
3.2 Power Plant ............................................................................................................................................... 10
3.3 Transmission Line Pre-Construction, Construction and Operation ........................................................... 12
4. Description of Existing Environment .................................................................................................... 13
4.1 Physical Environment ................................................................................................................................ 13
4.2 Biological Environment .............................................................................................................................. 16
4.3 Socio-Economic Environment ................................................................................................................... 18
5. Consultation ............................................................................................................................................. 20
5.1 Introduction ................................................................................................................................................ 20
5.2 Previous and Ongoing Stakeholder Engagement Activities ...................................................................... 20
5.3 Stakeholder Engagement Programme ...................................................................................................... 20
5.4 Livelihood Restoration Framework ............................................................................................................ 20
5.5 Grievance Mechanism ............................................................................................................................... 20
6. Environmental Impact Assessment ....................................................................................................... 22
6.1 Impact Assessment Methodology ............................................................................................................. 22
6.2 Power Plant Construction Impacts ............................................................................................................ 22
6.3 Power Plant Operational Impacts .............................................................................................................. 25
6.4 Transmission Line Construction and Operation Impacts .......................................................................... 27
6.5 Cirebon 1 and 2 Power Plants Cumulative Impacts .................................................................................. 29
7. Mitigation and Monitoring....................................................................................................................... 31
7.1 Mitigation ................................................................................................................................................... 31
7.2 Monitoring .................................................................................................................................................. 31
8. Conclusion ............................................................................................................................................... 32

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Important note about your report

The sole purpose of this report and the associated services performed by Jacobs New Zealand Limited
(Jacobs) is to provide Non-Technical Summary for the ESIA for the Cirebon 2 Project in accordance with the
scope of services set out in the contract between Jacobs and the Client. That scope of services, as described in
this report, was developed with the Client.

In preparing this report, Jacobs has relied upon, and presumed accurate, any information (or confirmation of the
absence thereof) provided by the Client and/or from other sources. Except as otherwise stated in the report,
Jacobs has not attempted to verify the accuracy or completeness of any such information. If the information is
subsequently determined to be false, inaccurate or incomplete then it is possible that our observations and
conclusions as expressed in this report may change.

Jacobs derived the data in this report from information sourced from the Client (if any) and/or available in the
public domain at the time or times outlined in this report. The passage of time, manifestation of latent conditions
or impacts of future events may require further examination of the project and subsequent data analysis, and re-
evaluation of the data, findings, observations and conclusions expressed in this report. Jacobs has prepared
this report in accordance with the usual care and thoroughness of the consulting profession, for the sole
purpose described above and by reference to applicable standards, guidelines, procedures and practices at the
date of issue of this report. For the reasons outlined above, however, no other warranty or guarantee, whether
expressed or implied, is made as to the data, observations and findings expressed in this report, to the extent
permitted by law.

This report should be read in full and no excerpts are to be taken as representative of the findings. No
responsibility is accepted by Jacobs for use of any part of this report in any other context.

The report is based on information supplied by Jacobs Client and from information held by Jacobs for the
Cirebon 2 Project. This report has been prepared on behalf of, and for the exclusive use of, Jacobs Client, and
is subject to, and issued in accordance with, the provisions of the contract between Jacobs and the Client.
Jacobs accepts no liability or responsibility whatsoever for, or in respect of, any use of, or reliance upon, this
report by any third party.

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1. Introduction
1.1 Introduction

This Non-Technical Summary (NTS) presents the main findings and conclusions of the Environmental and
Social Impact Assessment (ESIA) prepared for the construction and operation of the Cirebon Expansion
(JAWA-1) 1 x 1000MW Coal Fired Steam Power Plant IPP Project (Cirebon 2), which consists of 1000MWe
ultra-super critical coal fired power plant and ancillary facilities including 500kV transmission line (referred to
hereafter as the Project). Cirebon 2 is an expansion of the existing Cirebon 1 Independent Power Station
(Cirebon 1) in Java, Indonesia, which was developed by PT Cirebon Electric Power (CEP) and entered into
production mid-2012. The Project Sponsors are Marubeni Corporation, PT. Indika Energi Tbk, Korea Midland
Power Co., Ltd, Samtan Co., Ltd., and Chubu Electric Power Co., Inc. who are together Jacobs client and with
the Project being delivered via PT Cirebon Energi Prasarana (CEPR), based in Indonesia.

When constructed the Cirebon 2 power plant (referred to hereafter as the power plant) will have a capacity of
1000MWe and will utilise ultra-supercritical technology. The power plant will be located to the east of the
existing Cirebon 1 site, and will take up 41.5ha (excluding construction laydown area, site office and access
road) of the 204.5ha (Project area) being procured by the Project Sponsors.

Key components of the Project will comprise the following:


power generated by a single 1000MWe ultra-supercritical coal fired power plant, fired on a typical
Indonesian sub-bituminous coal;
air emissions will be released to the atmosphere via a 200m high chimney;
coal will be stockpiled and the capacity of the stockpile is for 30 days (with plant load factor of 85%) of
operation;
coal barge jetty terminal and coal handling systems;
seawater intake and outlet;
recirculating mechanical draught cooling towers;
earthworks to raise the power plant platform to 2.8m above mean sea level means approximately
3
3,138,351m of soil will be required for backfilling over the 41.5ha power plant site, the laydown area,
offices and temporary jetty, with the soil being transported to the site from nearby certified quarries; and
500kV transmission line route from power plant to the national grid 18.2km in length.
The Project has been developed with consideration of environmental, social, technical and economic
aspects. An iterative selection process was carried out aimed at determining the most viable and least
impact option. Various alternatives have been explored relating to technology options, power plant site
options and transmission line route selection.

1.2 Purpose of the Non-Technical Summary

This NTS provides an overview, in non-technical language, of the main findings of the ESIA. It is important to
note that this NTS does not, and is not intended to, convey all of the information relating to the Project and its
potential effects on the environment. By necessity, the text provided herein is a summary of the detailed
assessments discussed in the ESIA. Therefore, for fully detailed information pertaining to any part of this NTS,
please refer to the Cirebon 2 ESIA, which is available at CEPRs offices.

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2. Project Justification and Site Selection


2.1 Project Site

2.1.1 Project Site Location

The Cirebon 2 power plant site is located approximately 20km to the east of the city of Cirebon on the northern
coast of Java, Indonesia. The Cirebon 2 power plant site is located near Kanci Village of which the coordinates
are 108 37 44 East and 06 46 36 South. The site is bounded by the Java Sea to the north, the Kanci-1
River to the west and the Ci Paluh River to the east.

The power plant will be located east of the existing Cirebon 1 site. The larger Project area is 204.5ha of land,
with the actual power plant area being 41.5ha. The location and footprint of existing Cirebon 1 and proposed
Cirebon 2 is shown in Figure 1.

Figure 1: Site location for Cirebon 1 and 2

The proposed transmission line will by 18.2km long and run from the proposed power plant to the 500kV
Mandirancan Substation. The line will run through two regencies, being Cirebon and Kuningan, with
transmission towers located in five districts and 15 villages. CEPR proposes to erect 45 transmission towers
with a transmission corridor of around 17m each side of the transmission lines as required by local regulation
(total Right of Way (RoW) of 34m). This means the transmission line towers will have a total estimated land
2
footprint of 5ha (50,000m ).

The proposed transmission line route crosses mainly areas of land used for agricultural purposes being rice
paddy fields, crops and plantation areas. The line travels inland from just at sea level at the Cirebon 2 power
plant site to the Mandirancan Substation. A map of the proposed transmission line route is provided in Figure 2.

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Figure 1: Transmission line route

2.2 Project Justification

The Indonesian Government developed and maintains the National Electricity Plan (RUKN), which is a key
policy document that guides electricity and energy infrastructure in Indonesia. The plan sets out, amongst other
things, a ten year estimate for electricity demand and supply, as well an approach for meeting demand. The
state-owned electricity corporation Persero (PLN) is actively encouraging the private sector to develop
generation capability to meet current and expected electricity demand.

The Electricity Supply Business Plan (RUPTL) for 2013 2022 is based on RUKN and provides a ten year
development plan for electricity in Indonesia. RUPTL serves as a guidance document to streamline the
development of power infrastructure to meet electricity demand within PLN business areas. Under RUPTL,
electricity consumption in Indonesia is expected to increase from 189TWh to 386 between 2013 and 2022.
Regionally, the electricity demand in Java is expected to increase from 144TWh to 275TWh, growing at a rate of
7.6% per annum. To meet the growing power demand, an additional generating capacity of 59.5GW for the
whole of Indonesia is required.

PLN has an extensive programme for increasing the generation capacity from a range of sources including
renewable sources such as geothermal, hydroelectric and biomass. However, the demand for electricity is such
that the generation capacity required cannot be attained solely from renewable sources. As a result, PLN is also
developing conventional thermal power plants utilising coal and natural gas. New coal-fired power plants are
expected to dominate the additional generation capacity, producing 65.6% of energy by 2022. This is followed
by natural gas (16.6%), geothermal (11%), hydroelectric (5.1%) and oil and other fuels (1.7%).

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The high proportion of generation capacity expected from coal-fired power plants is also as a result of the
following contributing factors1:
the Indonesian government decreasing electricity subsidies, resulting in PLN looking for lower cost
alternatives for its energy supply; and
Indonesias abundance of coal reserves, especially the low calorific value of coal (below 5,100 kcal/kg),
which is less attractive to the export market and has therefore typically been used for local energy
generation.

In this context, the Project is consistent with the direction provided by Indonesias long-term electricity plan. PLN
is promoting the Project as part of a broader initiative to encourage private sector Build-Own-Operate-Transfer
(BOOT) projects. In general, PLN will tender for projects such as this. However, PLN is supporting the Project
given it is an expansion of an already existing project, being Cirebon 1.

2.3 Alternative Sites

The power plant site was selected as the preferred site for the Project through a multi-criteria assessment
process. This is reported in detail in the Pre-Feasibility Study Report for Cirebon Expansion CFSPP 1,000MV,
Rev 2 (Indopower International, 2013).The assessment covered a range of issues including:
Technical aspects site characteristics, geological conditions, cooling water availability, domestic water
availability, distance to transmission or distribution network and the electrical load centre, coal
transportation and access road requirements.
Socio-economic aspects population density, current load status, regional development planning, and
compensation for land acquisition.
Environmental aspects air pollution impacts, thermal pollution impacts, waste water pollution, wind
direction and velocity, ash disposal and local people income.

After an initial pre-screening of desirable locations for Cirebon 2, three potential sites were considered:
Alternative 1 Kanci Village;
Alternative 2 Bandengan Village; and
Alternative 3 Pengarengan Village.

Kanci Village was the chosen site based on the criteria outlined above. In particular, the selected site is the
most feasible location for the Cirebon expansion, given the proximately to Cirebon 1 and accessibility to existing
facilities to support the operation and construction of the power plant, including the Trans-Java Highway, 500kV
transmission lines and 20kV distribution lines. Other factors include the ability to use sea water for cooling water
due to close proximity to the coast, the topography of the land being nearly flat, the site is not productive land,
the current owners are willing to sell the land, the site is sufficient distance from nearby villages, the site is a
sufficient size, and the flood risk can be minimised through site elevation.

2.4 Alternative Technologies

2.4.1 Key Technologies Considered

A range of technologies currently exist for coal-fired power plants. Each technology has advantages and
disadvantages from a financial, reliability, efficiency and environmental perspective. The power generating
technologies considered for the Project in the Pre-Feasibility Study were as follows:
Pulverised Coal (PC) technology Well-established technology with units in the 1,000MWe range available
commercially, normally designed for specific coal characteristics.

1
Ernst & Young, Opportunities and challenges of the Indonesian electrification drive, March 2015 (accessed 11 April 2016 from
http://www.ey.com/Publication/vwLUAssets/opportunities-and-challenges-of-the-indonesian-electrification-drive-february-2015/$FILE/ey-
opportunitiesand-challenges-of-the-indonesian-electrification-drive.pdf)

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Circulating Fluidized Bed (CFB) technology Well-established technology but not commercially available at
1,000MWe capacity.
The Project will use an Ultra-Super Critical (USC) boiler, which is applied for large power plant capacity
(>1000MWe) that use PC technology. USC boilers have better steam conditions through being able to generate
higher temperatures and pressures, which results in a greater potential efficiency of thermal to electricity energy
conversion in the steam turbine/generator portion of the power plant. The main advantages of using USC
technology are high plant efficiency and low emissions. When compared to Supercritical and Subcritical
technologies, USC technology is currently the preferred coal fired power plant technology available on a
commercial basis for the reduction of greenhouse gas emissions.

2.4.2 Other Technology Decisions

In addition to selecting the power plant technology, CEPR has made decisions about other aspects of the
Project considering a range of potential technologies that may be relevant. The range of technologies selected
note only will help to improve the efficiency of the power plant but in many cases will also help to reduce
potential adverse environmental impacts. These include consideration of the following:
Control of SO2 the power plant wil use low sulphur coal and will treat 40% of the flue gases produced after
the boiler by flue gas desluphurisation using a wet lime slurry method. .
Control of NOX a range of NOX minimisation methods will be applied in the Project design and operation.
Methods include low NO X burners, multi-stage burning, secondary (over fire air systems) and coal with a
higher water (moisture) content than normal (which reduces furnace temperature and therefore NO X
formation);
Dust emissions will be controlled by a range of methods in including the use of environmental grabs for
unloading of barges, enclosing all coal conveyors, use of dust suppression sprays, installation of a wind
break fence around the coal year and the use of electrostatic precipitators to remove dust and particulate
matter from the boiler discharge;
Water abstraction the Project will use existing groundwater abstraction bores on site during construction
and install a seawater desalination plant for the operational water needs. The desalination plant has been
selected ahead of deep groundwater abstraction to avoid the potential for impact on existing groundwater
bores in the wider Project area;
Wastewater treatment the Project will use sophisticated wastewater treatments systems designed to treat
four distinct waste streams: abnormal wastewater, normal wastewater, oily wastewater and sanitary
sewage; and
Cooling tower technology the Project will include a closed-loop system cooling water system, with a
cooling tower and blowdown to help improve water use efficiency and reduce overall environmental impact.

2.5 Transmission Line

The power plant will be connected to the Java grid through an 18.2km long 500kV transmission line. The
transmission line will cross through two Regencies, five Districts and 15 Villages. The transmission line facilities
and route selection was based on a preliminary study.

2.5.1 Key selection criteria

Identifying the appropriate transmission route includes seeking a balance between the potential impacts of the
locality of the transmission line, as well as the technical requirements for the transmission line, such as
dependability. The Transmission Line Preliminary Study assessed three alternative routes against a range of
selection criteria, including (but not limited to): minimising the length of the line where possible to reduce costs
and impact area; reducing impacts on existing network during construction; and sharing the Right of Way with
existing transmission lines.

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2.5.2 Route Selection

There are a range of alternative connections to transfer power from Cirebon 2 to the PLN grid system and
specifically the Mandirancan 500kV Substation. However, as the Cirebon 2 power plant will have a proposed
capacity of 1000MW, the transmission line capacity must be enough to transfer the load to the grid. Three
possible connections to the Mandirancan 500kV Substation were assessed:
Alternative 1: Double connection to the existing two single circuit 500kV line from Ungaran to Mandirancan
Alternative 2: Direct connection to Mandirancan 500kV Substation via new line
Alternative 3: Connection to the partially existing 70kV RoW to Mandirancan

Based on the route selection criteria and capacity requirements, the Transmission Line Preliminary Study
identified Alternative 2 as the preferred option. This has been proposed for the transmission line design for the
Project.

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3. Phases of the Project


3.1 Introduction

The three primary stages in the Projects lifecycle are as follows:


Pre-construction: The pre-construction stage will involve field surveys, land acquisition works, the
engagement of a construction workforce and basic land clearance and preparation for backfilling.
Construction: The construction stage will involve land preparation works, including site clearance,
backfilling and land drainage, as well as the diversion of some watercourses, construction of an access road
and temporary jetty. The key components of the Project will also be constructed, including the power plant
and associated structures, installation of the transmission line, and the construction of the permanent jetty.
Operation: The operation stage will involve the full operation of the 1000MWe coal-fired power plant and
associated infrastructure, with the PPA term of 25 years.

Construction of the Project is anticipated to run from 31 January 2017 to April 2021.

3.2 Power Plant

3.2.1 Pre-construction

CEPR has been conducting field surveys of the site, including topographical survey, geological and
geotechnical investigations of the soil, in order to collect the data required to finalise the location and design of
the power plants construction. These activities also involve survey activities for the preparation of the ESIA.
Baseline field surveys have also taken place at the proposed power plant site and along the route of the
transmission line, including ambient air and noise monitoring, ecological surveys (terrestrial, freshwater and
marine), water and sediment quality sampling and social awareness surveys of local communities.

The Equator Principles, Performance Standards and local Indonesian regulations set requirements for acquiring
land and for public use. The Ministry of Environment and Forestry (MOEFO) owns the majority of the 204.5ha
land (195 ha) required for the power plant, with several private landowners owning the remaining land (9.5ha).
Requirements for land acquisition will be identified as part of the AMDAL and ESIA process.

The land acquisition process will be undertaken in accordance with IFC Performance Standard (PS) 5 - Land
Acquisition and Involuntary Resettlement. PS5 concerns physical displacement (e.g. people losing their home)
as well as economic displacement (people losing means of livelihood). Its main goal is to define the strategy
and steps required to mitigate the social impacts caused by land acquisition and/or restriction of accesses on
land and natural resources by local communities.

For private land (approximately 9.5ha for the power plant site), the land will be acquired in accordance with the
provisions of the Ministry Regulation on the Implementation of Land Procurement for Development for Public
Interest and on a willing seller-willing buyer basis in accordance with PS5.

The State land will remain property of the State through MOEFO, but use of the land will be granted to the
Project through a Utilization Cooperation Agreement. There are a number of Informal land users of the site who
will not be taken in account under this Agreement, as they are regarded by the State of using the land illegally.
However, to comply with PS 5, CEPR has identified all the land users (465) who will lose access to the land
which was used to generate a livelihood and, and will implement mitigation measures to restore the livelihoods
of the persons who are economically displaced as a result of this development.

CEPR will seek to employ at least 25% of the workforce, particularly the unskilled workers, from local villages in
the Project site vicinity. The labour requirements for the peak of the construction stage of the power plant are
estimated to be up to 3,300 people. CEPR will monitor and supervise every contractor to ensure they are
fulfilling the rights of workers in accordance with applicable laws and regulations.

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3.2.2 Construction

At the height of the construction period 3,300 people will be working on site with around 25% of the workforce
employed from the local area. The works during the construction phase will involve the development of the
following:
An access road will be developed to enable access to the site during construction.
A temporary jetty will also be constructed to serve as a temporary berth for barges delivering heavy
construction materials and equipment to the power plant site by sea.
Due to soft ground and the risk of flooding at the power plant site, the height of the site will need to be
3
raised, which will require approximately 3,138,351m for backfilling, and all soil will be obtained from nearby
certified quarries. The site will also need to be prepared for drainage and provide flood protection given the
area is at risk from both fluvial and tidal flooding.
A number of settling ponds will be installed across the site for drainage water treatment. Further flood
protection works may be required, and these will form part of detailed design.
A number of small water courses will also need to be diverted prior to construction commencing to further
improve drainage on the site.
Piling, foundation and drainage, erection of buildings, equipment installation, and commissioning.
Construction activities will also include the construction of the permanent jetty and installation of the
transmission line.
Power plant (such as the boiler) equipment will be installed with buildings erected around the equipment.

3.2.3 Operation

CEPR proposes to install an advanced Ultra-Supercritical (USC) power plant, which will nominally produce
1000MW and have a minimum operating life of 25 years. The power plant will operate continuously, 24 hours a
day, for at least 314 days per year (based on an 86% operability factor). The plant operation will require
approximately 192 full time employees, depending on the type of work and expertise.

Coal will be sourced from Kalimantan to meet the needs of the plant operation. Coal will transported to the jetty
by barge before being conveyed to the sites stockpile, then be pulverized and fed to the USC steam generator
and a multi-stage steam turbine generator. Emissions will be controlled through electrostatic precipitators (ESP)
and flue-gas desulphurization (FGD) before being discharged to air through a 200m high chimney. Fly ash will
be collected and stored in a silo, while bottom ash will also be collected and stored on site temporarily in a bin,
before being trucked off-site for reuse in a cement plant.

Closed circuit mechanical draft cooling towers will be used at the site thereby reducing the volume of water that
needs be abstracted and heated cooling water that needs to be returned to the sea as compared to a single
pass open circuit cooling water system. Continuous blowdown will be made from the cooling water system to
maintain the upper level of concentration of dissolved solids in the water. The blow down losses and
evaporation and drift losses from the cooling water system will be replenished by make-up water from the sea
water makeup system.

Water supply for the power plant will be sourced from a water intake structure and pipeline attached to the
permanent jetty. The water intake structure will be located approximately 2km from shore. Seawater will be
used untreated for the cooling tower apart from the addition of a biocide, and treated for process water and
potable use. Onsite water treatment systems will include chlorination of cooling water, pre-treatment of all other
water (including the use of a dissolved air floatation system, ultra-filtration and desalinization).

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3.3 Transmission Line Pre-Construction, Construction and Operation

3.3.1 Pre-construction

Prior to construction of the transmission line commencing, field surveys and land acquisition works will be
carried out, along with recruitment of the construction work force. The transmission towers will be located across
2
five Districts and 15 Villages. The total land area of the tower footprints is estimated to be 50,000m with each
2
tower having an average estimated foot print of 1,111m .

An estimated 5ha of land will be used to site 45 towers which make up the 500 kV transmission line. This
privately owned by the community and is currently rice fields, plantation and swamp. The Project will acquire
land using a willing seller-willing buyer process for transmission tower bases and for the transmission line right
of way affected parties will receive compensation for loss of crops etc. following the local legislation
requirements for free space and compensation. Once the transmission lines are erected the land owners under
the ROW are able to utilise their land as before. This approach is in compliance with PS5 and there will be
minimal need for livelihood restoration from the construction of the transmission line.

Land will be cleared in accordance with the type of tower that needs to be established. Clearing and levelling of
land for the transmission tower base construction will be undertaken manually, by removing hard objects,
clearing of annual crops (rice) and harvesting crops.

3.3.2 Construction

The design and construction of the transmission line will take approximately 32 months. Construction will involve
installing foundations, installing and painting towers, stringing the line, and commissioning. The width of the
transmission line right of way will be a minimum of 34m for sites with a single tower. Once the towers have been
erected, wire stringing activities will commence. Scaffolding protection may be erected if required to protect
buildings and public facilities that are under the transmission line from damage. Safety nets may also be
installed.

3.3.3 Operation

The 500kV transmission line once operational will be transferred as an asset for PLN to own and to operate.
Maintenance activities will program maintenance of equipment to ensure it is functioning properly. Maintenance
will also include maintaining the space under the transmission line by cutting plants and/or removal of illegally
erected buildings.

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4. Description of Existing Environment


4.1 Physical Environment

4.1.1 Air Quality

Historical data from the air quality monitoring station located around 3km to the southwest of the Cirebon 1 site,
as well as monitoring data from the baseline air quality monitoring sites, indicates that baseline levels of
pollutants comply with Indonesian ambient air standards but for particulate matter are notably higher than World
Health Organisation (WHO) recommended ambient air quality guidelines. This is believed to be the result of
regional influences such as forest and open burning across Indonesia, and local influences such as local open
fires and dust from fields from the villages near to where the ambient air monitoring station is located.

4.1.2 Flooding

The site is currently in a flood prone area, and is subject to both fluvial and tidal flooding; with the main source
of flood risk for the area is the Kanci-1 River. The average flood depth across the area is predicted to be similar
during both fluvial and tidal flooding events.

4.1.3 Freshwater Quality

There are several rivers in the vicinity of the power plant site, including the Kanci-1 and Kanci-2 Rivers, Ci Paluh
River and Pengarengan River. As well as the rivers, there are also three smaller predominantly manmade or
man modified waterways that run through the power plant site. There is a well-used road network through the
general Kanci area including a range of local and toll roads, runoff from these is generally directed to surface
waterways. The land adjoining the rivers has been extensively used for agriculture, especially rice growing and
salt and fish ponds. These land uses are likely to put pressures on the natural ecological function and values of
the rivers. Water quality sampling data along with visual observations of the area demonstrate that these
waterbodies are heavily tidally influenced and have, in general, poor water quality with microbial, sediment and
nutrient contamination being evident, and sometimes elevated above the Indonesian Standards.

A number of watercourses cross the transmission line route (Figure 3). Samples of two streams were gathered
and assessed to present an indication of water quality in the wider catchment areas. Suspended sediment loads
were observed as being high in these streams. The sampling conducted indicates that the land use in the
catchments is causing some faecal and metal contamination of watercourses.

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Figure 3: Example of rivers along the transmission line route new towers 9 and 10 (left image) and 32 and 33 (right image)

4.1.4 Groundwater

Groundwater is the principal domestic supply source for communities surrounding the power plant site. Water is
generally obtained from shallow dug wells, although for villages within 1.5km of the coast the shallow
groundwater is saline and only suitable for washing and bathing purposes. Groundwater sampling at the power
plant site indicated that groundwater quality varies spatially. At least three contaminants exceeded Indonesian
guidelines in each well sampled. Some exceedances are by large margins (e.g., total coliforms), indicating that
groundwater is, at times, of very poor quality. It is also likely that groundwater quality varies temporally, but
further monitoring is required to confirm this.

4.1.5 Marine Water and Sediment Quality

Water and sediment quality was surveyed along the permanent jetty alignment between May and October 2015.
The trends indicated that water quality in the marine area is related to inputs from the adjacent waterways and
is likely influence by storm events during the transitional season. Overall, contaminants within the sediments
tested were not considered to be at levels of concern.

Baseline levels of chemical contamination in marine organisms were assessed for use as bio-indicators to
provide an indication of contamination levels. Levels of arsenic and cadmium exceeded Indonesian and
international standards in some samples of fish, shrimp and bivalves. Arsenic concentrations in water samples
collected during this study were found at high levels. Cadmium was not found to be present in high levels in the
water quality assessment; however, cadmium levels in sediments were high. As the water column does have
high suspended sediment loads it could be expected that the ingestion of cadmium by filter feeding biota may
occur through sediments mobilised to the water column.

4.1.6 Natural Hazards

Given the proximity of the power plant site to Mount Cereme (alternate spelling Ciremai) volcanic peak
(elevation of 3,070m), both seismic and volcanic hazards are present (Figure 4). The main hazards resulting
from seismic activity are ground shaking, liquefaction and tsunami. Historically, eruptions at Mount Cereme
have been relatively infrequent, but have included explosive activity and lahars. The main hazards associated
with volcanic eruption are lahar, lava and airfall deposits.

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Figure 4: Mount Cereme

4.1.7 Landscape and Visual Amenity

Due to the flat nature of the site, both Mount Cereme and the existing Cirebon 1 power plant are clearly visible
from the power plant site (Figure 5). The topography of the transmission line route is undulating in nature
ranging in level from approximately 0.5 metres above sea level at transmission tower T1 (closest to the power
plant site) to approximately 330m metres above sea level at transmission tower T46 at the opposite end of the
proposed route.

Figure 5: View of existing Cirebon 1 power plant from proposed Cirebon 2 power plant site

4.1.8 Noise and EMF

Existing noise sources include audible wind powered pumps for lifting brackish water from drains to salt ponds,
human activity (salt farming), chicken farming, birds during the day and noise from the Cirebon 1 power plant.
During night time hours, insects (crickets), road traffic, chicken farms, and the Cirebon 1 power plant are audible

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within the environment. The main source of non-industrial noise at the residential locations adjacent to the
proposed power plant site is traffic on the Cirebon to Brebes Highway J1. Noise samples taken from monitoring
locations indicate that the day, evening and night time noise levels are fairly consistent throughout the day.

Baseline noise sampling conducted along the proposed 500kV transmission line route indicates that sampling
adjacent to the existing transmission lines exceed the noise references levels provided in the World Bank EHS
Guidelines for day and evening times. This demonstrates the difficulties associated with meeting international
audible noise requirements. It was noted that the noise monitoring was conducted during periods of heavy rain,
which have a strong influence on the noise levels measured.

Baseline sampling for electromagnetic frequencies (EMF) along the transmission line route indicated that levels
are within the guidelines for electric field strength for occupation and general public and magnetic flux density
for occupation and general public.

4.1.9 Road Transportation

The network lies to the western side of the power plant site with local roads serving all the main centres,
including Cirebon City Centre. CEPR proposes to access the power plant site from an access road off Jalur
Pantura Road, which carries an average of 16,000 vehicles per day (vpd) on Saturday, 15,000 vpd on Sunday
and 12,000 vpd on Monday respectively.

The transmission line crosses a number of roads and highways and the main railway line that connects the
provinces of East Java - Central Java to Jakarta. Another railway line that runs south is traversed by the
transmission line.

4.2 Biological Environment

4.2.1 Freshwater Ecology

Freshwater surveying of macroinvertebrate samples collected from streams and water channels around the
power plant site found that the number of taxa is very low at almost all sites, with a low density of species also
present. All species were considered to be pollution/disturbance tolerant and generally associated with
marine/estuarine systems rather than freshwater. The total number of fish species found in the Ci Paluh and
Kanci-2 Rivers was 11 species, excluding crabs and shrimps. Where data existed it appears that most of the
species are of value as commercial fishing stock. The Kanci-2 River appeared to have a much reduced species
diversity compared with the Ci Paluh River. However, none of the species identified during surveys were
identified on the IUCN red list as having threatened status. Most were of the least concern category and one as
near threatened but only in its native habitat and not in Indonesia where it is considered highly invasive.

4.2.2 Mangroves

Mangrove communities are located in the northern section of the power plant site and are locally recognised for
their role in supporting bird nesting habitats. Mangroves in the coastal area varied between 5 to 50m in depth
from the shoreline. In total there is approximately 13.5ha of mangrove within the Project area and
approximately 2.5ha (18%) of this falls under the footprint of the Project infrastructure and would be removed as
a consequence. However, the habitat is in the process of being restored from previous exploitation by a range
of organisations, including CEPR as part of the mitigation for Cirebon 1. These mangroves are in the process of
rehabilitation after previous changes occurred in the area for the development of aquaculture and salt ponds.

Mangrove assemblages at the site are categorised as damaged (<1000 trees per ha) as per the Ministry of
Environment and Forestry (MOEFO) of the Republic of Indonesia. The low species diversity (four species) is
thought to be a result of previous anthropogenic influences, which is being gradually improved through the
rehabilitation program that has been carried out by the local government, local communities and PT CEP for the
Cirebon 1 Power Plant (Figure 6).

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A. R. apiculate (Bakau) mangroves B. A. marina mangroves

C. A. marina along shoreline D. A. marina mangroves

Figure6: Photographs of mangrove assemblages surveyed on the power plant site

4.2.3 Benthic and epibenthic fauna

Samples collected from the substrate off-shore from the proposed site suggest that the study area is of low
ecological value, with a homogenous soft sediment bottom containing no habitat-forming species such as
seagrass. In total, 12 genus of benthic macroinvertebrate were identified at three sites, and individual numbers
were low. Observations from the grab samples show that the substrate is uniform and comprised of sand and
silt.

4.2.4 Fishing communities

Observations of fishing boat traffic and mussel farms in the vicinity of the proposed jetty, between Waruduwur
and Pengarengan Villages suggest that fishing in the area is relatively common. A total of 79 mussel farms
(owned by 30 fishers) were observed in the local region, with owners predominantly being from Waruduwur and
Kanci Villages. Waruduwur Village, which is closest to the Cirebon 2 site, contained 208 local fishers who
targeted swimmer crabs using a range of catch methods including fish traps, kejer nets and trammel nets. The
crab fishing grounds are located around 4 km offshore. The Pangenan District contained 244 local fishers who
targeted fish for local industries including salted fish and otak-otak with the Pengarengan Village containing 111
fishers.

4.2.5 Terrestrial Ecology

There are three protected areas and areas of conservation importance located within 25km of the proposed
power plant and/or transmission line, including the Java coastal site, which covers the southeast portion of the
power plant area, Mount Cereme and the Javi and Bali Forest.

The habitat dominating the large majority of the power plant area is non-natural, and highly modified by human
activity. It comprises salt ponds and fish ponds, which is facilitated by the drains across the site. A total of 73
species were recorded during the field studies comprising two amphibians, five reptiles, 55 birds, six mammals,
and five invertebrates. With the exception of two bird species being recognised as Near Threatened, all other
species were assessed as being of Least Concern or unclassified in the categorisation of risk of extinction
based on the ICUN Red List .

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Overall, the biodiversity of fauna communities was considered low and most species were found to have been
adapted to open modified habitat. However, the assemblage of 55 bird species across 28 families within 10km
radius of a sizeable urban area is considered of importance at the District level.

Species of flora recorded along the transmission line route have a wide range of uses, including those planted
for shades or as ornamentals, and those used as various foods or spices. Some species were also identified as
weeds. Of the total 132 species, the majority (114) have not been classified for their conservation on the IUCN
Red List (or, in a small number of cases, were not identified to species level), or were classified as Data
Deficient. Fourteen species of the recorded 132 were classed as Least Concern. Four species are classified as
Endangered, and three species as Vulnerable.

A total of 76 bird species, seven mammal species and six invertebrate species were identified along the
transmission line route. Four bird species are Nationally Threatened, one is Critically Endangered, and the
remaining 71 species are Least Concern, however 16 of these are nationally protected. All mammal species are
classified as Least Concern, and one is nationally protected. All mammal species are classified as Least
Concern and none are nationally protected or known to be of a conservation concern.

4.2.6 Ecosystem Services

The power plant site and surrounding area includes a range of ecosystem services, being the benefits that
people, including businesses, derive from ecosystems. These include:
provisioning services, such as salt harvesting, food crop cultivation and hunting;
regulating services, such as mangroves for purification of water resources and water regulation; and
supporting services, such as soil-forming and nutrient/water cycling processes.
The ecosystem services provided along the transmission line route include (but may not be limited to): food
crop cultivation (e.g. bananas, cassava) on small areas of land near to the settlements; hunting of terrestrial
species (understood to be limited); abstractive water uses for irrigation; collection of fish for human
consumption; soil-forming processes; nutrient and water-cycling processes; and primary production.

4.3 Socio-Economic Environment

4.3.1 Cultural Heritage

There are no UNESCO Cultural Heritage sites in Cirebon or Kuningan Regions, either candidate, on the
nominated list or on the indicative list. No element of tangible cultural heritage was identified within the
proposed power plant site. However four mosques, three cemeteries and seven ancestors graves were
identified within the area of influence. Along with tangible cultural heritage, a number of ceremonies were
identified as part of the local intangible cultural heritage during community consultations

Aside from cultural elements identified in Kanci, there is highly unlikely to be any elements of tangible cultural
heritage along the transmission line route, as it does not cross directly many inhabitable areas.

4.3.2 Host Community and Indigenous People

The Project area covers parts of Cirebon and Kunigan Regencies (Kabupaten). The wider power plant area is
distributed on five Villages (Desa) and three Districts (Kecamatan), and the transmission line will cross 15
Villages, in five Districts.

The Cirebon Regency is located in the West Java Province. The total population of Cirebon Regency was
estimated to be 2.3 million inhabitants in 2014, with 49.67% of women and 50.33% of men. Despite some
fluctuations, the population of Cirebon is growing. Cirebon Regency is divided into forty Districts, of which four
will be affected by the Project, namely Beber, Mundu, Astanajapura and Pengenan. Cirebon people refer to
themselves as wrong Java ("Javanese people"), and to their language as "basa Jawa" ("Javanese"). However,
the Cirebon dialect is sufficiently different from the dominant south central Javanese dialect that it is sometimes
assumed to be non-Javanese by outsiders. The Cirebonese people are not considered indigenous people. They

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are part of the mainstream Indonesian society, and do not have any specific economic or cultural activity
different from the rest of the society. They participate fully in the socioeconomic life of the society.

According to the 2010 Census, Kuningan Regencys population is slightly above 1 million people, with a gender
balance of 520,632 men and 514,957 women. The ethnic composition consists of Sundanese 95%, Javanese
2%, Chinese 1%, and other ethnic groups 3%. In addition to Bahasa Indonesian, the official national language,
the other widely spoken language in the regency is Sundanese. In some areas near the eastern border with
Central Java, Javanese is also spoken. The population in Kuningan Regency is Sudanese and speaks
Sudanese.

4.3.3 Land Ownership

The 204.5ha of land included inside the boundaries of the proposed power plant area is mainly composed of
salt ponds, drainage canals and mangroves. There are no residential dwellings inside the perimeter or along the
proposed access road. Land is generally obtained through inheritance (generally following Islamic law),
purchase or lease.

The land that will be acquired for the Project consists of titled land, being land where an official property title has
been registered. Of the 204.5ha for the Project that will be acquired for the power plant, about 9.3ha distributed
over nine land plots is privately owned. The rest is the official property of the Ministry of Environment and
Forestry (MOEFO). Local communities use this government-owned land, mainly for salt farming during the dry
season and fish farming during the rainy season, subject to a tax payable to the MOEFO. As the land use is
clearly demarcated (rice farming on the south of the road, and salt farming on the north), this local context of
land tenure is reflected on the average type of tenure for each land use. Yard and paddy fields are very often
owned, while salt ponds and fish ponds tend to be leased.

Land use along the transmission line RoW (34m width) consists primarily of crops and woody area, and includes
smaller sections of roads, salt ponds, rivers and river bank vegetation, buildings and railway lines. The 5ha that
will be acquired for the transmission towers is privately owned and generally consists of similar land uses. The
transmission line route crosses mainly areas of land used for agricultural purposes, mostly rice paddy fields,
sugar cane plantation, and to a lesser extent small garden. Salt ponds are present on the route of the
transmission line when it leaves the power plant, before the highway in Kanci Village. The transmission line also
crosses a number of roads and highways, as well as the main railway line and other power transmission lines.

4.3.4 Economy

In 2014, approximately 81% of the overall residents in the Astanajapura District were in the labour force. This
includes 86% of the residents of Kanci Village and 80% of the residents in Kanci Kulon Village. The main
livelihood of the villagers around the area of the proposed power plant comes from the agricultural sector
(farmers and farm workers), fisheries (fishermen, and salt and fish farmers), trade services and factory work.
Several plants around the villages employ locals, including a fodder plant, rattan plant, rubber processing plant,
chopstick plant, oil processing plant, shrimp paste plant and a snack factory.

There is also a migratory population with a tendency to migrate to cities such as Jakarta, Bandung and
Cirebon. Migrant workers perform seasonal work under a contract system which allows a relative to invite other
relatives or friends to work, for example, as construction workers.

Data from the International Labour Organisation shows that average Indonesian wages for 2014 were slightly
less than $1,600 USD per year, and this has grown from just below $1,000 USD in 2006. In context, salt pond
farmers in the area of the proposed development earn approximately $600 USD in a harvest season however, it
is noted that most salt pond farmers have secondary income streams. Income for fishing crew in Pengarengan
Village in 2015 is 76,400 IDR per trip, equating to around $5.73 USD, with fishing activities usually carried out 5-
7 times per month. For boat owners this figure is 305,600 IDR per trip, equating to around $22.92 USD.

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5. Consultation
5.1 Introduction

The importance of stakeholder engagement in projects of this scale is reflected in the requirements of the
Equator Principles and the IFC Performance Standards. CEPRs stakeholder engagement strategy for the
Project is provided in the Stakeholder Engagement Plans for Power Plant and Transmission Line (together
herein referred to as the SEP). The Livelihood Restoration Framework has also been prepared in support of the
SEP and provides a strategy for livelihood restoration for Affected Communities in the power plant area and if
livelihood restoration is required for communities along the transmission line route.

5.2 Previous and Ongoing Stakeholder Engagement Activities

In May and September 2015, stakeholder engagement sessions were held for the Cirebon 2 power plant,
including two meetings which gathered representatives of six villages (namely Kanci, Kanci Kulon, Waruduwur,
Pangenan and Astanamukti), as well as representative of NGOs and of administrative authorities.

Further consultation has been undertaken for those communities affected by the transmission line. In the first
phase of the development of the Terms of Reference (ToR), the Project was announced in the newspaper
included an invitation for community feedback. As the AMDAL process progressed, three public consultation
sessions were held in September 2015 in Waruduwur, Pencalang and Durajaya villages. These three meetings
gathered representatives of all 15 affected villages as well as representative of NGOs and of administrative
authorities. These meetings included a presentation on the Project by CEPR and AMDAL consultants, followed
by an open panel questions and answers session.

5.3 Stakeholder Engagement Programme

The purpose of stakeholder engagement for Cirebon 2 is primarily for transparency with the community, to
inform them of the Project and associated construction and operational activities, and the impacts it has on
them and the environment. This provides an avenue for stakeholders to understand the Project impacts, how
the impacts are being managed, and what land acquisition and compensation will result from the construction of
the Project. A key aim of the stakeholder engagement is to provide stakeholder the opportunity for comment.
Their comments/views will be considered by CEPR. A timetable for stakeholder engagement activities for the
power plant and transmission line is presented in the SEP.

5.4 Livelihood Restoration Framework

The LFR is prepared in order to comply with the principles and objectives of IFC Performance Standard (PS) 5
on Involuntary Resettlement. This Performance Standard concerns physical displacement (e.g. people losing
their home) as well as economic displacement (people losing means of livelihood). Its main goal is to define the
strategy and steps required to mitigate the social impacts caused by land acquisition and/or restriction of
accesses on land and natural resources by local communities.

5.5 Grievance Mechanism

Two grievance mechanisms have been developed one for workers and the other for Affected Communities have
been established and form part of CEPRs ESMS. In compliance with the Principle 6 of the Equator Principles,
these grievance mechanisms are designed to receive and facilitate resolution of concerns and grievances about
the Projects environmental and social performance. It will be scaled to the risks and impacts of the Project and
will seek to resolve concerns promptly, using an understandable and transparent consultative process that is
culturally appropriate, readily accessible, at no cost, and without retribution to the party that originated the issue
or concern. The mechanism should not impede access to judicial or administrative remedies. The Project
Sponsor will inform the affected communities about the mechanism in the course of the Stakeholder
Engagement process.

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The Project will follow the procedures set out in the Grievance Mechanism to register complaints from Affected
Communities and workers, including the provisions of a dedicated phone number to provide information on the
project and a Community Liaison Officer to handle complaints. The existence of a complaint register and access
conditions will be widely disseminated to Affected Communities and workers during consultation and induction
activities. External complaints relating to the environmental and social impact of the project will be recorded and
kept in a communications / complaints log book and in a database.

. For worker complaints, they should be recorded by the Health and Safety (HS) Manager and the Human
Resources (HR) Manager, or other members of the Project Team. If the complaint is resolved internally, details
of the complaint and resolution should be provided in the complaints form and filed. If the complaint cannot be
resolved, the HS Manager and the HR Manager shall organise a mediation session with the local authority.

If the solution proposed by the Project is rejected by the complainant, and no amicable solution can be found,
the issue will be transmitted to the sub-district authorities. All evidence and documentation will be transmitted, in
order to allow the district authorities to understand the issue at stake. The district authorities will then propose a
solution. If this solution is rejected by the complainant or by the Project, a judicial appeal can be undertaken.

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6. Environmental Impact Assessment


6.1 Impact Assessment Methodology

The impact assessment methodology has been developed in accordance with good industry practice, and the
potential impacts have been identified in the context of the Projects area of influence, in accordance with IFC
Performance Standard 1 (Assessment and Management of Environmental and Social Risks and Impacts). The
prediction of the scale and significance of environmental impacts is assessed against the established baseline
conditions. The assessment criteria have been established based on international requirements and good
practice involving a ranking system to classify magnitude and significance of impacts. Impacts were ranked from
Negligible to Very High significance.

6.2 Power Plant Construction Impacts

6.2.1 Key Impacts

Potential environmental and social impacts of Moderate, High or Very High significance associated with the
Project during the construction phase for the power plant are summarised as the following:

Noise - Construction noises are generally predicted to be within the Indonesian guidelines for most site-based
activities. However, exceedances of these noise goals are likely to occur during the construction of the access
road, which will be built in close proximity of residences adjacent to the main road, and therefore should be
mitigated or minimised where practical. A range of mitigation measures have been proposed to minimise noise
during construction, and therefore the impacts associated with noise are considered to be Moderate and
therefore acceptable. This is further mitigated by the temporary nature of construction works.

Land acquisition and displacement - The Project site consists of 195ha government land and 9.3ha private
land. As there are no households on the land, the main impact will be the economic displacement of salt
farmers and some fishermen, and the loss of access to natural resources by people who formally or informally
use the site for salt/fish farming. CEPR estimates that 508 salt farmers will be impacted. There is no available
comparable area in the vicinity of the Project site. There are no fishermen on the power plant site; however,
approximately 22 fishermen are expected to be impacted by the jetty. These impacts are assessed as Very
High. However, they will be managed to an acceptable level through the acquisition of private land through
willing buyer willing seller process in compliance with PS5. Persons who do not own land and are
economically displaced as a result of the development will have their livelihoods restored through the process
identified in the Livelihood Restoration Framework. Further mitigation will include vocational training, and
enabling those affected to obtain jobs through the Project or secure micro-financing for small businesses.

Employment - At the height of the construction period, an estimated 3,300 people will be working on the power
plant site with around 25% of the workforce employed from the local area. The local workforce (25%) will be
equivalent to 3% of the whole population of the five Villages. This increase in employment will result in
subsequent flow-on impacts on the community, including the potential influx of job seekers, pressure on public
services, increase of transmissible diseases, increased business opportunities, local inflation, risk of conflict
between local population and new comers, and local employment opportunities. As such, the Project will result
in a significant positive impact on employment in the area. Overall, the impacts are assessed as Very High
positive impacts.

Economy - The Project is likely to expand the construction industry in the Cirebon region. The Pre-Feasibility
study includes direct costs for the EPC contract and transmission line of USD 1,638m and USD 9m respectively.
For the purposes of this assessment, the assumed leakage is approximately 50%, or USD 800m. Based on the
results of the economic modelling, the economic impact during the construction period is therefore estimated to
be approximately USD 1,262m (being USD 847m x 1.49). This will have some negative and some positive flow
on impacts for the community. However, overall the impact is considered to be a High positive impact.

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6.2.2 Other Impacts

The remaining impacts are assessed as Low to Moderate, Low or negligible, as long as the proposed
monitoring and mitigation measures outlined in the ESMP are implemented. They are summarised as the
following:

Soil and Groundwater Secondary consolidation and shallow groundwater abstraction are expected to have
minimal impact on groundwater. To reduce any impact of primary consolidation to an acceptable level,
mitigation includes increased groundwater in settling ponds prior to discharge. Regarding the impact on
concrete foundations, mitigation recommends installing some form of concrete protection to reduce the risk of
sulphur attack. Therefore, with the appropriate mitigation in place the effects of construction activities on soil
and groundwater have been assessed as Low.

Solid Waste and Hazardous Substances There will be no planned discharge of hazardous substances or
waste to land during construction activities. The only potential for hazardous substances to enter the
environment and cause an impact is if the material is inappropriately used or stored causing an accidental
spillage and land contamination. A number of measures have been proposed that will minimise the risk of such
an event occurring, including management measures and the use of the Construction ESMS. In addition, all
hazardous material will be stored in appropriate tanks or drums, within bunded areas with impervious floors, and
procedures will be audited regularly. All waste will be covered and stored for limited periods of time. A spill
procedure should also ensure immediate cleanup.

Air Quality The closest residential properties to the proposed construction activities are approximately 450m
from the boundary of the Project site. The main power plant construction area is approximately one kilometre
from the nearest residents. Overall, due to this level of separation, and the mitigation measures proposed (i.e.
dust suppression), the impacts of construction activities on air quality are considered to be negligible. The
potential adverse risks associated with dust were assessed as High, but reduce to Low following the
implementation of mitigation measures, and are therefore considered acceptable.

Marine Water Quality The key activities that have the potential to impact on marine water quality are: waste
water discharges, particularly untreated stormwater, contaminants and sediment loads; vessel discharges in the
marine environment; and jetty construction activities and shoreline armouring. However, with the range of
mitigation measures proposed, (all discharges from wastewater and stormwater sources are to be treated prior
to being released; use of Marine Spill Management Plans, use of geotextile sheets to reduce sediment entering
watercourses; and extensive water quality monitoring) the impacts of construction activities on marine water
quality are expected to be Low.

Freshwater Quality The potential adverse impact on freshwater quality during construction is considered to
be High, however this reduces to Low so long as the mitigation measures (including collection and treatment of
stormwater and wheel wash discharge, limiting instream works by construction vehicles, and treatment of
workers accommodation wastewater) are employed. The impacts can therefore be managed to protect the
existing water quality of surface waterbodies across the power plant site. The impacts on freshwater are
therefore considered to be acceptable.

Landscape and Visual Amenity Visual impacts associated with the construction of the power plant will
include views of the construction laydown areas and temporary site facilities. Taken in context of the
surrounding environment, which is already highly modified with low amenity value, the visual impacts of
construction are anticipated to be Low to Moderate and within acceptable limits with regards to both permanent
occupiers and workers in indoor professions.

Traffic To minimise traffic implications associated with construction activities, truck movements on the road
network should be restricted to the Palimanan-Kanci Toll Road with other designated routes being used for
transporting materials from respective quarries to the new power plant. If unmitigated, the traffic impacts during
construction are assessed as High. Overall, with the mitigation measures proposed, the impacts of construction
activities on traffic are considered to be Low, and the impacts have been mitigated to as low as reasonably
practicable.

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Marine Ecology As with marine water quality, the key activities that have the potential to impact on marine
ecology are those that may cause the discharge of sediments or contaminants into the marine environment. For
adverse impacts resulting from stormwater run-off, potential erosion and chemical/fuel spills an Erosion and
Sediment Control Plan, Hazardous Substances Management Plan and Marine Spill Management Plan are
recommended to be developed and implemented. With the mitigation measures proposed, any impacts of
construction activities on marine ecology are expected to be Low and are therefore considered acceptable.

Freshwater Ecology There are potential adverse impacts for freshwater ecosystems during construction,
including discharges to freshwater, diversion of watercourses and river protection works. Overall, the impacts of
construction activities on freshwater ecology, with the mitigation measures proposed (same as those described
above for Freshwater Quality), are therefore considered to be Low.

Terrestrial Ecology The key impacts of construction activities are those associated with habitat destruction or
loss, and other disturbances during construction, such as light and noise. Other impacts include road traffic
accidents causing fatality of animals, air emissions, noise and vibration, lighting, disturbance of hydrology
causing degradation of habitats, and environmental incidents and accidents. Mitigation measures to minimise
the impact of these construction activities on terrestrial ecology include good practice precautions to prevent
inadvertent impacts on habitats and species, such as temporary fencing around mangroves, dust-suppression
measures, proper waste disposal, and minimising potential for pollutants to enter watercourses. Given the small
amount of habitat that will be lost during construction relative to the surrounding areas, and provided that the
mitigation measures described are implemented, any residual negative impacts on important ecological features
will be Low.

Ecosystem Services Construction of the power plant will potentially have an impact on some ecosystem
services in the area, including the provisioning services provided by the salt/fish ponds, and the off-shore
mussel farms, regulating services provided by the mangrove area to be removed, and supporting services
provided by the watercourse and soils on the site. With the mitigation measures proposed, (i.e. ongoing
stakeholder engagement and preparation of Livelihood Restoration Plan) the risk of impacts on ecosystem
services are considered to be Low.

Cultural Heritage No direct impacts on physical cultural heritage are anticipated during construction as all
known cultural artefacts are located outside the Project boundaries. It is also very unlikely that any cultural
artefact will be found during earthworks activities. However, a Chance Find Procedure will be implemented by
the EPC contractor and all its sub-contractors to address the risk of finding cultural heritage artefacts.

Working Conditions, Occupational Health and Safety The occupational health and safety issues during the
construction of the Project are common to those of large industrial facilities include exposure to physical
hazards, trip and fall hazards, exposure to dust and noise, falling objects, working in confined spaces, exposure
to hazardous material and exposure to electrical hazards. In order to protect workers from potential hazards, as
well as ensuring that appropriate measures are put in place to deal with any disputes that may arise between
workers and the employer, it is anticipated that detailed labour, health and safety documents will be prepared by
the EPC Contractors prior to commencement of Project construction works. These would cover hazard
identification, safe work practices, emergency response plans, incident/accident management, auditing and
review as well as Workers Grievance Mechanisms. With the implementation of these measures, impacts
associated with working conditions and occupational health and safety are assessed as Low.

Community Health and Safety - The health, safety and security of Affected Communities could potentially be
impacted by construction activities. Impacts of the power plant and jetty include air quality and noise, water
sources, security and human rights, traffic, visual amenity, disease prevention, industrial hazards and collision
with ships. A number of mitigation measures (i.e. controlling access, implementing safety buffers, security guard
training, providing adequate sanitation facilities and defining and implementing vector-borne disease measures)
will be implemented to ensure the impact of the Project on neighbouring communities is Low.

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Non-Technical Summary

6.3 Power Plant Operational Impacts

6.3.1 Key Impacts

No operational impacts are assessed as Very High significance for the power plant. Potential environmental
and social impacts of Moderate or High significance associated with the Project during the operation of the
power plant are summarised as the following:

Economy The annual economic impact on the economy has been estimated to be approximately USD 58m
(being USD 37m x 1.81). This impact will continue over the life of power plant production (noting that this is an
attempt to gauge an average annual impact with peaks and troughs occurring from year to year). This will have
community flow on effects, including and increased rate of urbanisation, which will provide more local job
opportunities, and increase incentive (and need) for post-secondary education or training. There is also the
possibility that the Project will provide for some additional training opportunities for local workers. This will
provide opportunities for low-skilled labour currently employed in aquaculture/agriculture to shift to higher
income jobs. The impact is considered a High positive impact on the economy.

6.3.2 Other Impacts

The remaining impacts are assessed as Moderate to Low, Low or negligible as long as the proposed
monitoring and mitigation measures are implemented. These are summarised as follows:

Soil and Groundwater The primary operational activity identified as potentially impacting soil and
groundwater during operation is the storage of coal in the coal stockpile, which has a capacity for 330,000T of
coal. There is the potential for contaminants from the stockpile to leach into the groundwater. Potential
contaminants from coal include mercury, arsenic, and sulphuric acid. Mitigation to reduce potential impacts
include lining the stockyard with a low permeability liner to prevent drainage water seeping into the
groundwater, and developing a rainwater drainage system where rainwater collected will be directed to a coal
run-off pond where it will be treated via settling before being discharged to the sea or reutilised for the operation
of dust suppression sprays. With mitigation in place it is anticipated that the impacts of contamination from the
coal storage area on groundwater will be reduced to Low.

Solid Waste and Hazardous Substances There will be no planned discharge of hazardous substances or
waste to the environment during operation. As long as hazardous substances and waste are appropriately
handled and stored in accordance with the measures recommended in that assessment, including following the
measures outlined in the Environmental and Social Management Plan (ESMP), the impacts from hazardous
substances and waste will be Low or negligible.

Air Quality The operation of the power plant will result in emissions of pollutants to air, primarily SO 2, NOX
and particulate matter (PM10 and TSP). Given the proposed mitigation and monitoring measures and that the
predicted air contaminants are well below the Indonesian National Ambient Air Standards, the overall impact
assessment for air quality shows that the impacts from the emissions to air from Cirebon 2 on the health and
environment of the surrounding area and sensitive receptors are considered to be Moderate, and are therefore
acceptable.

Marine Water Quality - The concentrations of contaminants are expected to remain below IFC discharge
guidelines and Indonesian Regulations, and therefore will have minimal impact. However the thermal plume
could have adverse effects on marine life and mangroves, as discussed below for marine ecology. Modelling
indicates that salinity from the wastewater discharge for Cirebon 2 power plant has the potential to be elevated
above Indonesian thresholds; however, evidence from Cirebon 1 operation has shown that the present plume
has had no impact on mangrove communities.

Freshwater Quality All stormwater and wastewater discharges during the operational phase will be directed
to the marine outfalls and discharged to the sea. Therefore, there will be no impacts on freshwater quality as a
result of discharges to freshwater bodies during the operational phase of the power plant. As with construction
activities, there will be no planned discharges of hazardous substances or waste to freshwater courses. As long
as the proposed measures are employed, including bunding, spill prevention and ensuring waste and materials

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Non-Technical Summary

are not stored near watercourses, there will be no off-site impacts of hazardous substances and waste on
watercourses.

Landscape and Visual Amenity In assessing the overall visual impacts of the power plant, a key factor is its
location within what is already a highly modified environment of low amenity value. The proposed power plant
will be located in close proximity to the existing Cirebon 1 power plant, which has already significantly impacted
the appearance and character of the area, altering the wider panorama of the vicinity and view toward the
ocean. In this context the significance in terms of visual impacts of the additional infrastructure proposed as part
of this Project, is diminished. Given these mitigating factors, the overall level of adverse visual impacts likely as
a result of the power plant is anticipated to be Low to Moderate and is therefore within acceptable limits with
regards to both permanent occupiers and workers in indoor professions.

Noise The assessment of operations at Cirebon 2 alone indicate that operational noise impacts are expected
to comply with the Indonesian noise standards for residential areas and the World Bank / IFC residential noise
goals during the day and the amended goals under night time operations. In all instances, it is probable that the
noise goals for the proposal will be achieved under the prevailing weather conditions, which tend to be
favourable to the local community, directing noise emissions towards the coast and away from residential
locations. The frequency of winds blowing from the northerly quarter towards the residential areas is very small
and is around 1% of all winds from all directions. To ensure that there are no exceedances of the proposed
power plant, operational mitigation measures have been recommended to be implemented during the detailed
design phase. These measures relate to design measures associated with specific types of equipment, and
specifically that all noise generating equipment is selected based in part on its acoustic rating where multiple
choices exist. As long as these measures are employed, the impacts from operational noise will be Low and
therefore acceptable

Flood Risk Overall, the impacts of Cirebon 2 on flooding in the surrounding area without further mitigation
measures (beyond design mitigation) are therefore considered to be Low to Moderate and are therefore
acceptable. The impact can be further mitigated, if required through implementation of the design measures

Greenhouse Gases Mitigation measures to reduce adverse impacts on the environment through the release
of greenhouse gases (GHG) from the power plant include primarily the use of the USC technology. The main
advantages of using USC technology is the high plant efficiency and low emissions. Other recommended
measures include the development of GHG targets for the ESMP. The Project should incorporate a number of
matters into the Action Plan of the ESMP, including quantifying actual GHG emissions, ensure there is a
process for identifying areas of GHG reduction in the future, and monitoring and reporting of GHG emissions.
As long as these mitigation measures are employed, the impacts on GHG emissions are considered Moderate
and are therefore acceptable.

Traffic When fully operational the large number of workforce at the plant will drop to approximately 200 full
time workers running three shifts, therefore traffic implications on the network are expected to be minor. Based
on the traffic modelling and analysis undertaken, the potential impacts of Cirebon 2 on traffic flows are
considered to be Low and acceptable.

Marine Ecology During operation wastewater discharge from the power plant includes cooling water
discharge, which is expected to increase temperature, salinity and chlorine in the receiving environment will
2
potentially impact an area of 1,177,178m . Modelling indicates that salinity from the wastewater discharge has
the potential to be elevated above Indonesian thresholds; however, evidence from Cirebon 1 operational
monitoring has shown that the present plume has had no impact on mangrove communities. Other impacts
include potential pollution of watercourses, permanent loss or direct smothering of benthic fauna, stirring up of
sediment from movement of barges and accidental release of coast dust particles affecting sediment quality,
mangroves and benthic fauna. Overall, with the mitigation measures proposed, (such as the development of a
Vessel/Barge Management Plan) the adverse impacts on marine ecology are anticipated to be Low.

Freshwater Ecology During the operational phase of the power plant, all discharges will be directed to the
marine outfalls for discharge into the sea. Therefore no further impacts on the freshwater ecology in surface
water courses are expected to occur during the power plant operation. As such, there will be no off-site
impacts on freshwater ecology.

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Non-Technical Summary

Terrestrial Ecology The operational impacts include impacts as a result of road traffic accidents, increased
human presence, noise, lighting, land occupation, air emissions, environmental incidents and accidents, and
operational discharges to the marine environment. A range of mitigation measures have been recommended,
including treatment of discharge water to Indonesian water quality standards, development and implementation
of the Habitat Management Plan (HMP) to protect and enhance remaining mangrove area and other habitats,
and creation of a biodiversity offset to compensate for the direct loss of mangrove habitat and indirect impacts.
Provided these mitigation measures are implemented, any residual negative impacts on important ecological
features will be Low and are therefore acceptable.

Ecosystem Services The operational activities have the potential to impact on a range of ecosystem services
on the site, including the provisioning services of water used for abstraction, regulating services of the
mangroves, the ongoing provisional services of offshore fisheries, and the supporting services provided by
diverted watercourses across the site. The ongoing impacts on these ecosystem services, and particularly the
impacts on the community as a result of residual impacts on the mangroves, will be addressed through the and
livelihood restoration plan review procedure. Overall, the impacts on ecosystem services are considered to be
Low and are therefore acceptable.

Employment Labour requirements for the plant operation will be less than construction, and there will be a
need for more qualified workers. Approximately 192 people will be full-time employees, and a further 500
workers will be employed temporarily for maintenance activities. It is unlikely that local workers from the affected
villages will have the skills needed to be employed permanently as operators or technicians. Skilled workers
employed permanently are likely to reside in Cirebon. Therefore the impacts, both positive and negative, caused
by the workers presence during pre-construction and construction will not continue during operation. It is
unlikely that any influx of job seekers will continue during operation. Vocational and skill training will be provided
by the Project to the local population of the five affected Villages to ensure local unskilled workers can benefit
from permanent or occasional jobs opportunities during operation.

Cultural Heritage No direct impacts on physical cultural heritage are anticipated as all known cultural
artefacts are located outside the Project boundaries. However, the Chance Find Procedure will be implemented
remain in place from construction activities to address the risk of finding cultural heritage artefacts during
operation.

Working Conditions, Occupational Health and Safety in order to protect workers from potential hazards, as
well as ensuring that appropriate measures are put in place to deal with any disputes that may arise between
workers and the employer, it is anticipated that detailed labour, health and safety documents will be prepared by
CEPR prior to commissioning the power plant. These would cover hazard identification, safe work practices,
emergency response plans, incident/accident management, auditing and review as well as Workers Grievance
Mechanisms. With the implementation of these measures, impacts associated with working conditions and
occupational health and safety are assessed as Low.

Community Health, Safety and Security - As described for construction above, Affected Communities could
potentially be impacted by operational activities. A number of mitigation measures (as described above for
construction) will be implemented to ensure the impact of the Project on neighbouring communities is Low.

6.4 Transmission Line Construction and Operation Impacts

6.4.1 Key Impacts

No transmission line impacts have been assessed as Very High significance. Potential environmental and
social impacts of High or Moderate significance associated with the construction and operation of the
transmission line are summarised as the following:

Noise - The assessment indicates that the background levels at times exceed the WBG EHS (WHO) noise
guidelines at a distance of 17m from the centreline. As such, the alternative noise assessment criterion is
appropriate. Of the six monitored sites, four will be in compliance with these criteria.

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Non-Technical Summary

At Location 6 (Kanci Village) five residential dwellings have been identified within 25m of the transmission line
centre line and would most likely be subject to noise levels which exceed Indonesian noise standard of 55dA
(as existing background is 56dBA), but meet the WHO alternative criteria of background plus 3dBA.

The overall sensitivity to noise of the land surrounding the 18.2km transmission line route is low, with the
majority of land being used for agricultural purposes. The number of residential properties that could be
exposed to noise levels above the Indonesian and WHO acceptance criteria, along the length of the 18.2km
transmission line is small. There are only seven buildings within 25m of the transmission line centre line and a
total of 30 within 50m along the length of the transmission line. Also given that the existing background noise
levels along portions of the transmission line are elevated above the WHO and Indonesian noise criteria
especially at residential areas, and the additional contribution from the noise from the transmission line is low,
the overall impact on noise levels is considered to be Moderate, but acceptable.

Land acquisition - The transmission towers will require land acquisition of an estimated total of 5ha private
lands, mostly within agricultural land, such as paddy fields and sugarcane plantations. As no census has been
conducted so far, it is not possible to estimate precisely the number of potentially affected people, however 110
land owners have already been identified. Height restrictions will also apply to approximately four houses in the
RoW. The impacts are assessed as Very High. However, these impacts are reduced to High through mitigation
measures, including all landowners will be compensated in accordance with the willing buyer willing seller
requirements of PS5, and the local requirements. Impacts will be further mitigated through the implementation
of a Livelihood Restoration Plan and compensation where appropriate, and consultation in accordance with the
SEP for the transmission line.

6.4.2 Other Impacts

The remaining impacts are assessed as Low to Moderate, Low or negligible as long as the proposed
monitoring and mitigation measures are implemented. These are described below as follows:

Landscape and Visual Amenity A significant level of existing large-scale infrastructure exists along the
proposed transmission line route, such as power lines, transmission towers and transport infrastructure, shaping
the existing character of the receiving environment. The proposed infrastructure is not easily discernible from a
number of viewpoints, with the infrastructure assimilating into the already modified receiving environment and
consequently often having a negligible impact. During operation, the visual impacts of the proposed
transmission line range from negligible (no impact) to Moderate. Overall, and taking into account the existing
environment, the visual impacts are considered acceptable.

Soils and Groundwater The construction and installation of transmission towers has the potential to impact
on groundwater, particularly through earthworks activities. However, the impact is likely to be localised and
limited to the duration of construction. As such, the impact is considered Low or negligible and will be temporary
during construction.

There will be no operational impacts for soils and groundwater.

Freshwater Quality The assessment finds that transmission line construction activities have the potential to
impact on water quality through site clearance and foundation construction activities. The main contaminant
risks are therefore likely to be associated with the earthworks and use of cement. The impacts are primarily
mitigated through the limited footprint of the towers and associated earthworks along the transmission line. In
addition, the report recommends that the erosion and sediment control practises are used on site to minimise
the open area of land and provide treatment systems to retain and treat sediment laden water from each tower
site prior to discharge into surrounding waterbodies. With these controls in place, the risk from these individual
transmission line sites is assessed as Low and within levels that should not impact upon site watercourses
during construction.

Due to no operational discharges, there will be no off-site impacts operational on freshwater quality.

Terrestrial Ecology Potential impacts on flora include vegetation clearance and disturbance for installing
transmission towers and access paths. However, given the small footprint of area to be cleared (5ha) in relation

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Non-Technical Summary

to the surrounding areas, these impacts are not considered significant. Potential impacts on birds include loss of
habitat, as well as noise and other disturbance. The only impact on birds that may be considered significant is
the potential loss of nests and young birds due to vegetation clearance. However, this impact can be mitigated
through a range of measures, including conducting vegetation clearance and maintenance activities outside the
main breeding season, and inspections of trees and vegetation for bird nests prior to felling. Where nests are
identified, habitat should be left intact until chicks have fledged the nest. Overall, with the mitigation measures
recommended, and given the small footprint of area to be impacted, the impacts on terrestrial ecology are
considered to be Low and appropriately mitigated.

Ecosystem Services The construction of the transmission line has the potential to impact on ecosystem
services along the transmission route, including the provisioning services for food crop cultivation provided by
the areas that will be required for the transmission towers. Overall, the impacts on ecosystem services are
therefore considered to be Low and appropriately mitigated.

Electromagnetic Radiation The level of impact/risk posed by electromagnetic radiation from the proposed
transmission line on people living and working under or near the lines is considered to be Low and therefore
acceptable.

6.5 Cirebon 1 and 2 Power Plants Cumulative Impacts

6.5.1 Key Impacts

No cumulative impacts have been assessed as High or Very High significance. Potential cumulative impacts of
Moderate significance associated with the operation of Cirebon 1 and 2 power plants are summarised as the
following:

Air Quality The air quality assessment identified that all contaminants discharges during operation will be well
within both Indonesian and international guidelines, with the exception of particulate matter (PM10) that will
exceed international guidelines (WHO) for the 24-hour and annual average, and NO X (as NO2). However, the
actual cumulative impact has a minimal impact on background levels. In addition, the assumption that NO X will
convert to NO2 is overly conservative and concentrations are predicted to decrease to the south to within
guideline limits. As such, residential areas are not expected to be unduly impacted by PM 10 discharges. Further,
sensitive receptors are also not expected to be impacted by discharges. A range of mitigation measures have
been recommended in the ESMP to reduce SOX and PM10, many of which are incorporated into the design of
the power plant. The overall impacts are assessed as Moderate.

Noise The predicted noise levels at the nearest receiver locations (south west) under adverse meteorological
conditions (winds from the northerly quarter) are expected to meet the IFC/World Bank and Indonesian noise
criteria for daytime operations. During night time hours, a minor exceedance over the amended guideline noise
levels at night has been predicted. As such, the impacts are assessed as Moderate. It should be noted that the
frequency of winds blowing from the northerly quarter towards the residential areas is very small and is around
1% of all winds from all directions at all times. The increase in noise levels when both power plants are
operational is slightly higher than the predicted noise levels from Cirebon 1 alone. The extent of this increase is
dependent upon the location of the receiver in relation to each plant and the contribution from the Cirebon 1
plant, which is louder at these locations closer to the Cirebon 1 plant. Where wind directions are off shore (i.e.
favourable to receivers), the noise levels are expected to reduce and comply with the assessment criteria during
both day and night time hours at the nearest residential locations. In order to meet the standards, the noise
assessment recommends the implementation of noise mitigation measures, primarily through the choice of
noise generating equipment, as discussed in the assessment for noise from Cirebon 2.

6.5.2 Other Impacts

The remaining impacts are assessed as Moderate to Low, Low or negligible as long as the proposed
monitoring and mitigation measures are implemented. These are discussed below:

Marine Water - During operation, wastewater discharge includes cooling water discharge, which is expected to
increase temperature, salinity and chlorine in the receiving environment. Modelling indicated that there is no

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Non-Technical Summary

obvious interaction between the Cirebon 1 and Cirebon 2 thermal plumes. Predicted Cirebon 1 plumes extend
further from the discharge and remain 2C above ambient over a larger area than the Cirebon 2 plume. This is
because the effluent outfall for Cirebon 1 in is shallower water than Cirebon 2, restricting the water available for
mixing. Predicted overall impact of Cirebon 1 and 2 thermal discharge plume is very similar to Cirebon 2 only.
The modelled salinity plume shows some interaction between the Cirebon 1 and Cirebon 2 discharges by
increasing salinity slightly but is not expected to increase the area of potential impacts. Overall, the cumulative
impacts for Cirebon 1 and 2 on marine water are expected to be Low.

Terrestrial Ecology - The cumulative impact assessment found that the proposed mitigation measures will
minimise impacts particularly those related to mangrove habitat loss and disturbance. After the application of
these measures, no significant cumulative impacts are predicted on these important habitats. The operation of
Cirebon 2 will likely have cumulative impacts on bird species, primarily species with small ranges and migratory
species. However, impacts are not expected to be significant as only a small number of individuals are likely to
be affected. No significant impacts are therefore predicted on a regional basis and overall the impacts are
assessed as Low.

Economic and Social - If other large projects are being constructed within the region, or even within the
country there will be local impacts. For example if large projects are being constructed within the region over the
same time period, local resources (including labour) may be stretched. It is already assumed that part of the
direct labour and investment cost will be spent overseas on imports of foreign workers. If there is additional
demand for workers from other large projects, there is a risk that an even greater share of the labour and
investment cost will be spent offshore.

It is not expected that that there will be other large developments in the region which are large enough to impact
the availability of local resources. However, there may be other major developments at the national level. Whilst
this may not affect regional impact, it may shift some of the supply from outside the region to offshore.

With the construction of the power plant, and increased security of electricity supply going forward, it is
expected that the rate of urbanisation of the region will increase. This in turn provides more local job
opportunities, and increases incentive (and need) for post-secondary education or training. There is also the
possibility that the Project will provide for some additional training opportunities for local workers. This will
provide opportunities for low-skilled labour currently employed in aquaculture/agriculture to shift to higher
income jobs.

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Non-Technical Summary

7. Mitigation and Monitoring


7.1 Mitigation

CEPR will implement mitigation measures to prevent and mitigate the potential negative impacts and to
effectively manage the Project for environmental protection, for the pre-construction, construction and operation
stages of the Project. Mitigation measures are identified in the Technical Reports that are the basis of the ESIA
and are summarised in the ESIA and Environmental and Social Management Plan (ESMP). The mitigation
measures proposed also reflect the outcomes from consultation.

Where necessary, mitigation measures have been proposed to meet the requirements of the Equator Principles,
IFC Performance Standards and Indonesian laws and regulations. IFC guidelines require that a sequencing
strategy is applied that gives priority to avoiding impacts, then a focus on the reduction or minimisation of
impacts that cannot be avoided, and finally where impacts are unavoidable people affected by the Project must
receive compensation.

In general, the types of mitigation measures identified are implemented by one or more of the following means:
incorporated into the plant design;
specifying construction methods;
developing and implementing management plans;
undertaking monitoring; and
following consultation and grievance procedures.

CEPR will establish, maintain, and strengthen as necessary an organisational structure that defines roles,
responsibilities and authority to implement an Environmental and Social Management System (ESMS) during
construction and operation of the Project.

7.2 Monitoring

A recommended monitoring program is set out in the ESMP which is designed to conduct sufficient monitoring
in order to demonstrate compliance with Indonesian regulatory discharge limits and ambient standards and the
applicable WBG EHS Guidelines and Indonesian standards specified for the receiving environments (air, water,
soil, marine, etc.) and to assess the performance of containment and treatment systems at the power plant
during construction and operation and for the construction of the transmission line.

The Environmental Monitoring Plans will set out the location of the sampling points, sampling methodology to be
used (grab samples, automated etc.), number of samples to be collected each round, frequency of sampling,
sample handling and preservation, parameters to be analysed for and analytical methods, and reporting
requirements. This monitoring will include, but will not be limited to:
wastewater effluent-quality monitoring to ensure that effluent continues to meet the relevant WBG EHS
Guidelines;
continuous emission monitoring of emissions from the power plants chimney;
regular monitoring of water quality of stormwater discharged into the environment from the stormwater
drains, during all seasons;
marine water quality monitoring to assess the dispersion of the wastewater discharge plume for
comparison with model predictions;
fly ash and bottom ash toxicity for sulphur content;
noise and ambient air quality; and
social surveys and changes monitoring.

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Non-Technical Summary

8. Conclusion
The ESIA summarises a large amount of technical work undertaken to assess the impacts of the proposed
Cirebon 2 Project. The ESMP sets out mitigation and monitoring actions that address the key environmental
and social impacts identified in the analysis. Implementation of the mitigation, management and monitoring
measures in the ESMP for each phase of the Project will ensure that the environmental and social impacts of
the Project overall will be acceptable.

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