RISK ASSESSMENT

San Luis Hydropower Project

Due Diligence on Renewable Energy Projects

Prepared by:
Sethaphan Kavenapho, Thailand
Dwi Susanto, Indonesia
British Singh, Nepal
Vincent Kisembo, Uganda
Jennifer Pevidal, Philippines
 Objective

To prepare risk assessment for each measures

To obtain the license (s) for the project
To identify the latent risk for NARA Indigenous
Community
To manage the risk regarding the social viability
of the project
 Project Description

Technical Data
Dam:
Location: Rio Blanco
Height (m): 150 ; Length (m): 400
Powerhouse
Capacity: 200 MW
Unit type: 3 Francis (66W)
Energy: 714 GWh/year
Reservoir
Type of Regulation: Seasonal
Area (ha): 500
Storage Volume(hm3): 180
Headrace Tunnel
Length (m): 7000
Diameter (m): 8.6
Baseline

Social Issues Description

Project Affected 30 families or 135 people are likely to be displaced
People (PAPs)
Indigenous People Scattered communities (Rico Blanco, Indigenous Territories Pueblo
Nara, Montes, Piedras Blancas and Sukia)
Fishery Fish for family used

Forest in Offset with parcels of land in neighboring area

management use
Agriculture 200 has of productive agricultural land area (basic grains and
livestock)
150 has belongs to person form Rio Blanco
50 has belongs to Indigenous Area of Peublo Nara
Land Use Acquisition of land that belongs to Sukia Community for the
construction materials of dam
Risk Assessment
Causes Consequence Mitigation
Risk Event What causes the risk? Explanation of the effect Various actions to reduce the
probability over effect of the risk
Physical and • Construction of • Food insecurity • Preparation of Indigenous
Economic the dam • Coping mechanism People Resettlement Plan (IPRP)
Displacement • Acquisition of the • Development of
(PED) land and Comprehensive Land and
livelihood Acquisition Livelihood
Restoration Plan (LALRP)
• Livelihood enhancement and
accessibility
• Development of
Communication plan to assure
transparent and well
documented negotiation
process (Consultative &
Participatory)
Conflict in • Non agreement • Consensus in the • Develop formal commitments
expectation of of the three formulation of agreements based on the needs of the
IPs (ConIP) different IP group that need to be translated different IP groups in the
namely Sukia, into their language agreement
Nara and Rio • FPIC Process
Blanco
• Differences in
beliefs and culture
 Risk Assessment
Causes Consequence Mitigation
Risk Event What causes the risk? Explanation of the effect Various actions to reduce the
probability over effect of the risk
Political risk (PR) • Opposition of • Delay in the • Comprehensive engagement of
stakeholder not to implementation and all stakeholders in the entire
support the issuance of permits project cycle
project • Good faith negotiation and
transparency
Community • Fluctuation of • Accident may cause injure • Preparation of HSE
health and safety workers in project to PAPs. Management Plan for
(CHS) area. • Loss of opportunity to be • the construction phase and
• New disease may work operation phases
come with outside • Harmful to child population • Emergency Response Plan to
labors address disaster
• Human trafficking • management
PAPs rejection to • under valuation of • Resistant to be relocated • Stakeholder Engagement Plan;
the project ie property, cultural Resettlement Plan
compensation belief • Establish Grievance Redress
(PapRej) Mechanism
 Risk Assessment
Causes Consequence Mitigation
Risk Event What causes the risk? Explanation of the effect Various actions to reduce the
probability over effect of the risk
Change in land • Construction • Can cause Accident • Construction of internal road
use pattern activities • Loss of land according to standard
(CLUP) • Land slides, soil erosions • Creating buffer zone for the
construction activities
• Provide drainage and slope
stabilization measures along the
roads to avoid road subsidence
and collapse
• Construction safety measures
should be apply
• Develop, appropriately, site
construction facilities
• Undertake vegetation clearing
during the drier season
Resettlement Site • Accessibility of the • Denial or inaccessibility to • Stakeholder Engagement Plan
(RS) resettlement area education, health, • Establish infrastructure eg
agriculture access road, hospitals, schools
and electricity
 Risk Assessment
Causes Consequence Mitigation
Risk Event What causes the risk? Explanation of the effect Various actions to reduce the
probability over effect of the risk
Offset Area • Identification of Might be difficult to find the • Government Support
offset area offset area that is in
accordance
RISK ANALYSIS
RISK ANALYSIS
External
Financial Safety
Environment Consequ Risk
Risk Event If the risk will If the risk will Probability
have financial have safety If the risk will have
environmental
ence Rank
impact impact
impact

Physical and Very High Medium High Medium High

Economic
Displacement (PED)
Conflict in Medium High High Very High
expectation of IPs High
Political risk (PR) Medium Medium Medium Low Low

Community health Medium Medium Medium Low Low

and safety (CHS)
PAPs rejection to the Very High Medium Medium High Medium
project (PapRej)
Change in land use High Low High Medium Low
pattern (CLUP)
Resettlement Site (RS) High Medium High High Medium

Offset Area (OA) Medium Low Medium Medium Medium

Summary

 Project needs to strongly engage all the IP before implementing

Resettlement Plan to know and understand their needs in their “new life”
 Broad Community Support (BCS) is required in all steps
 Good faith negotiation has to be adapted when implement with unique
project
 Lesson learned from previous project might not fit with other project
 All projects should be inclusive, participatory and takes care the needs and
aspirations of the indigenous communities.
 Special support in form of CSR is important to continue supporting the host
communities.
 Grievance Redress Mechanism must be in place before the start of the
project and onwards
TUSEN TAKK