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Gas Negara PT PERUSAHAAN GAS NEGARA ( PERSERO ) JL. K.H ZAINUL ARlFlN NO. 20 TELP. 021.6334838 JAKARTA Expansion of West Java Gas Distribution Domestic Gas Market Development Project Environmental and Social Impact Assessment and Environmental Management Plan (EIA - EMP) Revised, February 11, 2005 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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Page 1: Expansion of West Java Gas Distribution Domestic Gas ... · Expansion of West Java Gas Distribution Domestic Gas Market Development Project Environmental and Social Impact Assessment

Gas Negara

PT PERUSAHAAN GAS NEGARA ( PERSERO )

JL. K.H ZAINUL ARlFlN NO. 20 TELP. 021.6334838 JAKARTA

Expansion of West Java Gas Distribution Domestic Gas Market Development

Project

Environmental and Social Impact Assessment and

Environmental Management Plan (EIA - EMP)

Revised, February 11, 2005

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Administrator
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ACRONYMS AND ABBREVIATIONS USED

AMDAL

ASME

ANDAL

ANSI

B A I C

BAPEDAL

BAPEDALDA

ComDev

EIA

EMF

EMP

EMS

HAZAN

HAZID

IPB

GIS

MIGAS

mmscfd

MRS

MSWD

NPS

PGN

QRA SCADA

S M S

THT

IF1 I S 0

Analisis Mengenai Dampak Lingkungan Hidup -- Analysis o f Impacts on the Liv ing Environment

American Society of Mechanical Engineers

Analisis Dampak Lingkungan - Environmental Impact Analysis

American National Standards Institute

Business Assessment and Information Centre

Badan Pengendalian Dampak Lingkungan Hidup - Environmental Impact Management Agency

Badan Pengendalian Dampak Lingkungan Hidup Daerah - Regional Environmental Impact Management Agency

Community Development

Environmental Impact Assessment

electromagnetic fields

Environmental Management Plan

Environmental Management System

Hazard Analysis

Hazard Identification

Bogor Agricultural University (Znstitut Pertanian Bogo)

Geographical Information System

Ministry o f Mines and Energy, Directorate General O i l and Gas

mil l ion standard cubic feet per day

Metering and Regulation Station

Maintenance and Safety Works Division

Nominal Pipe Size

PT Perusahaan Gas Negara (PT PGN Persero)

Quantitative Risk Assessment

Supervisory Control and Data Acquisition

Safety Management System

Tetrahydrothiophene

international financial institution

International Standards Organization

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LH

MNKLH

NGOs

PCB s

PET

PIU

PLN

RKL

RPL

S I L SOP

UKL

UPL

WHO

(Menteri) Lingkungan Hidup - Ministry of Environment

Menteri Negara Kependudukuan Lingkungan Hidup -- Ministry of State for Population and Environment

Non-Governmental Organizations

polychlorinated biphenyls

Project Environmental Team

Project Implementation Unit

PT Perusahaan Listrik Negara

Rencana Pengelolaan Lingkungan -Environmental Management Plan

Rencana Pemantauan Lingkungan - Environmental Monitoring Plan

Sector Investment Loan

Standard Operating Procedure(s)

Upaya Pengelolaan Lingkungan -- Environmental Management Procedures

Upaya Pemantauan Lingkungan -- Environmental Monitoring Procedures

World Health Organization

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EXECUTIVE SUMMARY

1. Introduction

This Environmental & Social Assessment / Environmental Management Plan (EIAEMP) has been prepared by PT Perusahaan Gas Negara [PT PGN (Persero) Tbkllas part o f i t s preparations for the proposed Domestic Gas Market Development Project wi th the World Bank.

Prior to the regional economic crisis, the Bank considered providing a loan to PGN for a transmission and distribution project to increase gas utilization in West Java. The original project design involved both construction o f a transmission l ine f rom gas fields in South Sumatra to West Java and the extension o f the gas distribution network in West Java. An Environmental Assessment Study for the then considered project was prepared by PGN. During the crisis, the project was postponed by the Bank and finally dropped.

By the time project discussions resumed in November 2001, the Japanese Bank for International Cooperation (JBIC) had agreed to finance the Sumatra-Java transmission pipeline. The Government then requested a World Bank loan to expand the West Java gas distribution system under the proposed Domestic Gas Market Development Project.

This summary synthesizes the full Environmental Impact Assessment (EIA) Report prepared by PGN based on detailed Indonesian environmental assessment analyses and studies, completed and approved b y the AMDAL Commission (under the Ministry o f Mining and Energy) in 1999 and updated and re-approved by the Central AMDAL Commission (under the Ministry o f Environment) in November 2003. The EIA Report covers PGN’s gas distribution expansion plan in West Java partly financed by the Bank and complies with the World Bank’s environmental and social requirements (including operational policies on environmental and social safeguards).

2. T h e Project

The proposed project aims at expanding the supply and utilization o f natural gas, the cleanest fossil fuel, in Indonesia’s domestic market to improve economic efficiency and reduce pollution resulting f rom the heavy reliance on fuel o i l and diesel.

The project consists of: (i) a gas distribution component to expand gas utilization in Bantenmest Java region, and (ii) a capacity building component to strengthen PGN’s (the project owner) financial, planning, engineering and management capability. The project i s l inked to a Japan Bank for International Cooperation (JBIC) financed gas transmission project to bring gas from South Sumatra to Bantenmest Java region.

The distribution project comprises: (i) construction o f class 300 steel pipelines o f 4 to 16 inch diameter (about 186 km) along with control valves and corrosion control facilities; (ii) construction o f class 150 pipelines o f 4 to 16 inch diameter (about 71.4 km) along with control valves and corrosion control facilities; (iii) installation o f five off-take and two pressure regulation stations; (iv) installation o f around 210 customer

Referred to as PGN thereafter. ... 111

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metering and regulating stations; (v) installation o f SCADA system; (vi) provision o f radio/telecommunication equipment, IT support and emergency response equipment.

The proposed Bank-financed project i s linked to a JBIC financed transmission project. Project preparations are well underway with construction planned to commence in the second quarter o f 2005. The EIA Report for the transmission project was prepared and approved b y the AMDAL Commission in 1999. I t has been discussed and approved b y JBIC, and disclosed to the public following JBIC’s disclosure procedures. A social assessment report and a Resettlement Action Plan (RAP) was prepared in 1998 to comply with AMDAL procedures and JBIC’s requirements. The RAP was recently updated by PGN at JBIC’s request. And i t s implementation i s underway.

3. Indonesia’s Environmental Legal and Institutional System - the A M D A L System

Indonesian EIA i s widely known b y i t s acronym, AMDAL - Analisis Mengenai Dampak Lingkungan Hidup (literally, “Analysis o f Impacts on the Liv ing Environment”). The Ministry o f Environment (Kementrian Lingkungan Hidup, KLH - or LH) i s responsible for national-level functions for environmental enforcement, including oversight o f the AMDAL process. Regional Environmental Impact Management Agency (BAPEDAL - Badan Pengendalian Dampak Lingkungan Hidup) offices, directly as offices o f local governments, have recently been given the principal role in AMDAL review and environmental management at the regional level.

The AMDAL Process

AMDAL requirements apply to most government and private sector projects. Carrying out an AMDAL study i s the responsibility o f the project developer or proponent, as are the mitigation and monitoring o f the project’s impacts. The types o f activities subject to AMDAL are specified most recently in the Ministry o f Environment Decree Number 17/2001,Types of Business and/or Activity Plans that are Required to be Completed with the Environmental Impact Assessment.

A full AMDAL assessment involves a three-step process o f studies and reports:

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ANDAL (Analisis Dampak Lingkungan - Analysis o f Environmental Impacts);

RKL (Rencana Pengelolaan Lingkungan -Environmental Management Plan), and

RPL (Rencana Pemantauan Lingkungan - Environmental Monitoring Plan).

From the perspective o f a project developer, the AMDAL process involves up to seven steps:

0 project Identification 0 screening 0 scoping, with Public Consultation

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0 implementation, monitoring, and reporting.

approval o f the KA (TOR)-ANDAL assessment, and preparation o f the mitigation and monitoring plans approval o f the assessment, management, and monitoring plans

2 Development activities that are unlikely to have significant or widespread environmental impacts are subject to a less rigorous and specific set o f AMDAL studies :

3

Kepmen 481/PU/1996 defines those activities requiring UKLKJPL in the public works sector, for example,

i v and there are similar decrees in other sectors.

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UKL (Upaya Pengelolaan Lingkungan -- Environmental Management Procedures), and UPL (Upaya Pemantauan Lingkungan -- Environmental Monitoring Procedures).

These procedures are not subject to evaluation by an AMDAL commission. The “less significant” environmental aspects o f these projects are to be covered within the Standard Operating Procedures (SOPS) o f the implementing a g e n ~ y . ~

Decentralization of AMDAL Review and Approval

Law Number 22/1999 gave wide authority and responsibility to the Regions; they now must function on their own initiative to meet the interests o f the local public and fulfill the potential o f their region. The role o f central government -- the Ministry o f Environment -- i s now only to give technical supervision, facilitate and promote, and set national standards related to environmental affairs. For AMDAL, the only projects subject to review at the national level are those involving defense and security, cut across more than one province, are in areas o f dispute or borders with other countries, or that concern marine regions more than 12 miles f rom shore.

For full-fledged AMDAL studies - ANDAL-RPL-RKL - evaluation and approval are undertaken and provided by an Evaluator Committee or AMDAL Commission chaired by the Deputy Minister o f Environment. Their work i s guided by the Guidelines for AMDAL Document Evaluation, BAPEDAL Decree Number 2/2000. The AMDAL Commission draws upon the expertise o f all concerned government agencies, public sector organizations, universities, NGOs and the private sector. Each BAPEDALDA has its own local AMDAL Commission, to review ANDALRIUJRPL studies under their jurisdiction (and not subject to review by the national AMDAL Commission) and supervise the implementation o f the AMDAL during construction and operation o f the projects.

According to BAPEDAL Decree Number 17/2001 (Types of Business and/or Activity Plans that are Required to be Completed with the Environmental Impact Assessment ), construction o f onshore gas transmission pipelines o f 50 km or more in length and having a diameter of 20 inches or greater, and all offshore gas transmission pipelines, require an EIA. Therefore, the proposed project required a full AMDAL assessment (equivalent to full EA in line with Bank requirements and procedures o f category A projects).

5

4. Baseline Data

The project region: The proposed distribution project would support construction o f new pipelines and branch lines to extend PGN’s gas distribution system in West Java (Greater Jakarta, and Provinces o f West Java and Banten). PGN’s existing distribution system in this region i s readily divided into three Zones: Greater Jakarta (l), Banten (2) and West Java (3). The proposed project w i l l be implemented in these three zones which are in general heavily urbanized or industrialized. There are no protected areas, or critical natural habitat sites in the vicinity. The proposed distribution pipelines w i l l follow existing national, provincial and district roads and w i l l not cross any culturally or socially sensitive areas.

The climate, air quality and noise emission: West Java has a tropical climate. Temperature and relative humidity are fairly uniform throughout the year. The rainy season i s f rom October to the end o f April and the dry season i s f rom M a y to September. In zone 1, the annual mean rainfall i s about 1850 mm with the highest monthly value at 425 mm in January and the lowest at 47 mm in July. In zone 2, the annual mean rainfall i s about 1725 mm with highest monthly value at around 300 in February and the lowest value at 56

3 As set out in KEP-l2/MENLH/3/1994. b i d Kep. BAPEDAL, No. 09, Tahun 2000, Pedoman Penyusunan Analisis Mengenai Dampak Lingkungan Hidup

V

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mm in August. In zone 3, the annual mean rainfall i s 1809 mm with the highest monthly value at 371 mm in January and the lowest value at only 26.5 mm in August.

The air quality (S02, N02 , CO, HC and dust) and noise level were measured in 1999 and re-measured in 2003. The results show that all the values o f ambient air quality parameters measured meet the national standards in the project region. Noise emission levels were sometimes higher than the national standards during the busy traffic hours.

Geology, morphology, topography, soils and hydrology: Principal geological features in the project areas include:

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0

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Volcanic sediment (zone 1): consisting o f andesine, lava, breccias, volcanic breccias and tuffs; Alluvial sediments (in zone 2 and 3): consisting o f swamp and river alluvial sediments, in the forms o f hunks, pebbles, sand, clay, and organic materials; Banten tuf fs (in zone 2): consisting o f tuffs, pumices and tuffs sandstones; Bunning pinang basals (in zone 2): in the form o f a basal diabasic texture; Flood plain sediments (zone 3): consisting o f sandy clay and humic clay; Tuffs sandstone and conglomerates units (in zone 3): consisting o f tuffs sandstones, conglomerates and breccias; Citalang formation (in zone 3): consisting o f conglomerates, sandstone and breccia.

In zone 1, the sloping i s between 0-5% with land elevation o f 0 to 1 meter above see level. Morphology units in zone 2 are river and coastal alluvial plains, sloping between 0-5%.with land elevation o f 0 to 15 m above sea level. Land in zone 3 crossed by the proposed pipeline routes i s relatively flat and in the type o f flood sediment, with elevation ranging between 0 to 5 meters.

Typical soil types in the project areas include alluvial, latosol, podzolic and regosol soils, clay and other materials f rom volcanic eruption. Along road shoulders that w i l l be used as the pipeline routes, the uppermost soil layer f rom 10 to 20 c m thickness typically consists o f small stones. The second deeper layer f rom 40 to 50 c m thickness consists o f soils, followed by a layer o f ordered-stones o f 20-30 c m thickness, and finally reaching the original soils in the deepest layer. Analysis o f soil samples in the project region shows that soil erosion rates are all in the tolerate range.

Total numbers o f water crossings on the proposed gas pipeline route are 10 in zone 1, 151 in zone 2 and 102 in zone 3. Most o f the waterways to be crossed b y the pipeline are streams with width below 3 meters (3 in zone 1, 82 in zone 2 and 55 in zone 3). Only 18 rivers are classified as “big rivers” (width above 10 meters). 7 o f the big rivers are in zone 1, 6 in zone 2 and 5 in zone 3. The rest are small rivers (with width between 3 and 10 meters) and irrigation canals. The discharges o f those big rivers range f rom 2.5 to 9 cubic meterdsecond and their mean depth ranges from 0.7 to 2 meters.

Analysis o f water samples in the project areas indicates that most o f the parameters do not meet the highest water quality standards (class 1). Some, such as Total Suspended Solid (TSS) and Total Dissolved Solid (TDS) do not meet even lower quality standards (The Class I1 and 111). Analysis also showed that there i s no significant level o f mercury in the study area and the highest values o f lead were lower than the safe limit under class I1 and I11 standards. Analysis o f water samples f rom zone 1 also indicated that surface water in the region contains higher level of Chloride (Cl), detergent, and BOD than national water standards. Chloride comes from natural abrasion along the body water, whereas high BOD level i s caused by pollution f rom industrial wastes. People’s daily activities alongside the river using detergent are responsible for higher detergent level.

Biodiversity: A floristic survey along the proposed gas pipeline was conducted and 11 species were found. Most o f them were shade or canopy-trees, planted in the sidewalks or on the shoulder o f the roads. In the

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project area, roadside vegetation along the proposed gas pipeline route provides the only available habitat for wildlife. Accordingly, wildlife found in the area i s limited and no protected species were found.

Benthic communities in the river crossings are potentially vulnerable to temporary disturbance during construction o f the pipelines. Other aquatic biota l ike plankton, nekton, and fishes are unlikely to be affected by the construction or any wastewater flows from the project. In general, the habitat quality for benthos organisms in the project areas i s poor. The water bodies in the area are characterized by strong currents, and hard substance.

Land use: Since the proposed distribution pipeline w i l l be located along the shoulders o f the existing roads, land use analysis focused on the land alongside the proposed pipeline routes. According to the updated survey carried out in 2003, major land uses in the project areas are 48% for settlements (27% for villages and 21% for towns), 36% for industry, 14% for agriculture (including trees and crops) and 2% for tourism.

Social-economy, governance, culture: In zone 1, the proposed pipeline w i l l pass through the districts o f Kedep, Bekasi, Tegal Gede (south Jakarta), and Cakung, Cilincing (north Jakarta). The pipeline route in zone 2 w i l l pass through the districts o f Tangerang, Serang and Cilegon city, all o f which are within the recently created Banten Province. For zone 3, the project passes through the districts o f Karawang, Cikampek, and Purwakarta, which are part o f West Java Province. The population density o f villages in the project areas i s usually over 400 peoplekm2. The dominant occupations o f local people l iv ing near the project route are industrial workers, traders, private employees and civ i l servants in the town areas, and farmers in the countryside. Along the road side, a lo t o f people also work as owners and/or employees o f stores, shops and semi-permanent kiosks.

The roads that the pipeline route follows include national-class roads (93.1 km), provincial class roads (106.3 km) and district class roads (49.2 km). At some points o f the roads mostly along industrial estates, offices and trade centers, traffics are heavy, especially during the moming and evening “rush hours”.

5. Evaluation of Alternatives

The following alternatives were sequentially considered during the project design and preparation:

Expansion of gas business versus “business as usual”: Prior to engaging in this important investment program, PGN considered to continue a business as usual approach entailing a less aggressive strategy o f conversion to gas o f small industries and businesses and therefore a l ow growth o f the Banten-West Java gas market. The “business as usual approach” has been rejected for four reasons: (a) the expansion o f the gas market was in line with the govemment energy strategy to develop the domestic gas market because o f i t s economic and environmental advantages over o i l products and coal; (b) a market scoping study showed a strong preference o f small industries and businesses for gas; (c) expansion o f the gas market would strengthen the financial situation o f the company; and (d) without o f the expansion o f gas market, some energy consumers w i l l continue to use o i l and other “dirty” fossil fuels which w i l l have more negative environmental impacts.

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Expansion of the distribution system : PGN considered alternatives for the expansion o f i t s distribution system taking into accounts: (a) the capability o f the existing system; (b) the locations and demand o f the potential consumers (demand nodes); (c) the quantities and input locations o f gas supply to the system (supply nodes); and (d) severe constraints on the right o f way in highly urbanized areas. The latter reduced the number o f alternatives for expansion to two, mainly differentiated by the pipeline diameters along the same routes to satisfy a demand o f 500 mmcfd in the f irst case and a demand o f 800 mmcfd in the second case. The first option would have required further reinforcement o f the system after 5-7 years to meet the full potential demand o f 800 mmcfd by 2016. I t was rejected because i t was less cost effective and would have entailed more temporary negative environmental and social impacts.

6. Likely Impacts and mitigation measures

Positive impacts: the project w i l l provide important positive environmental benefits as shown in following table. In addition, Indonesia’s contributions to the global greenhouse gas emissions w i l l be reduced.

Table 6.1 Likely Positive Impacts of the West Java Gas Distribution Expansion

Reductions in traffic of lorries and other vehicles delivering fuels to industries and other customers throughout the region.

Construction is likely to help to stabilize drainages in some locations.

Traffic

Soil Erosion

Reductions in regional air emissions for all pollutants and greenhouse gases. Improved air quality within factories that convert to natural gas. Reduced dust and emissions from fuel delivery vehicles. Reductions in noise from traffic of lorries and other vehicles delivering fuels to industries and other customers throughout the region.

Air and Noise Pollution

There will be modest reductions in water use by fuel delivery vehicles and in maintenance of

Creation of short-term employment for local unskilled laborers during the construction and temporary Increase in cash flow to the local economy, particularly the informal sector, due to expenditures from construction workers. Some modest long-term employment opportunities. General reductions in fuel prices, improved industrial efficiency, and improved competitiveness of industry in the region, with on-going stimulation of business opportunity and development.

Water Pollution industrial combustion equipment.

Socioeconomic

Negative impacts: there w i l l also be some negative impacts f rom activities funded under the project as shown in following table. But none of the impacts identified and addressed in this assessment are likely to be major, sustained, or irreversible. Most o f these impacts w i l l occur during the construction phase only. All can be mitigated to some extent through good environmental planning and practices. All of the negative impacts can be mit igated satisfactorily by apply ing PGN’s established standard operating procedures (SOPS) for design, construction and operation as presented below.

... V l l l

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Table 6.2 Likely Negative Impacts and Mitigation Measures of the West Java Gas Distribution Expansion during Construction Phase

Likely Negative Impacts Mitigation Measures

The working width of pipeline in urban areas is 11 0 meters, but temporary disruption of access from street to markets, businesses, factories, restaurants, residences will occur. Also, temporary increases in traffic for delivery of materials, and slow down of traffic in work areas will occur. At crossing points, there may also be some temporary interference with roads and railways.

No more than 100-meter section of trenching will be open at one time. This section must be backfilled within 24 hours, and backfilling must occur before the next section is opened. Contractors are required to maintain public safety and smooth traffic flow at project sites. Local traffic control authorities will be informed in advance. Temporary bridge will be in place when necessary. The public will be informed about the work schedule and The project will be mainly implemented in the dry season. every effort wi l l be made in advance to check with local authorities and utilities, and virtually all digging for the pipeline construction wil l be by hand.

The construction will be mainly conducted in dry season. If heavy rains occur during excavation, the trench and piled soil from it is to be covered with Plastic tarPs. During excavation along public roadways, removed soils wil l be placed into patch boxes. Proper compaction of the restored soil i s monitored by PGN’s work site inspectors. Release of hydrostatic testing wil l be well managed according to PGN’s procedures. Excavation will be done by hand shoveling; The use of “patch boxes” for holding the excavated soil, Spray water on dry soil if necessary. The pipeline excavation and installation wil l not use motorized equipment, which could generate high levels Of noise. The delivery by lorries of piping and construction materials wil l be twice each hour or less at any one location.

Traffic

Other There is some risk during construction to Underground existing underground utility infrastructure, Infrastructure such as water supply and cables.

Soil Erosion There is likely to be some storage, spillage, and erosion of excavated soil on private land adjacent to the route. Potential release of hydrostatic testing water and waste solids generated during construction on private land adjacent to the route.

Construction will produce fugitive dust from topsoil removal, trench excavation and backfilling, and from storage of excavated soil adjacent to the excavated pipeline trench. Noise from construction - vehicles and equipment, materials loading and offloading, pipe cutting and welding, pipe stringing, etc, _ _ may cause nuisance wherever the pipeline passes near to homes and businesses.

Air and Noise Pollution

Water Pollution Rain and other of water from trenches may become contaminated with lubricants from vehicles and equipment that eventually flows into public drainage ways or directly to waterways. Water from pigging and hydrostatic testing is likely to be released to storm water drains in urban areas, or directly into waterways.

The project will be mainly implemented in dry season; All the hydrostatic testing will be conducted under PGN’s supervision. The point of water release will be controlled by temporary plastic draining pipes and the rate of water release will be controlled to minimize the impacts on receiving rivers; During the construction stage (i) for small rivers (width of <10 m), an overhead crossing with an l- beam design will be used; (ii) for big rivers (width zlOm) , a steel bridge will be installed for holding and supporting the pipes. In addition, pipe bridges will be installed alongside with existing roads.

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(continued) Likely Negative Impacts Mitigation Measures

Solid Waste Vegetation removal during site leveling and preparation ~~~~~~l of surfaces in urban and industrial areas Release of hydrostatic testing water may contain spent welding rods, mill cuttings, stones, and rubble.

Businesses are likely to suffer temporarily due to physical obstruction caused by construction activities. Increased risk of pedestrian injury from traffic accidents during construction due to physical obstruction or removal of walkways.

Most of the excavated soil and other solid wastes will be back-filled on site. Excess soil and other solid wastes will be removed from the site in standard woody boxes. Permission will be obtained from local authorities or private landowners for disposal as landfill. Pigging process will be carefully managed to produce least amount of solid wastes.

Construction will be carefully planned to minimize disturbance to the local businesses; Measurable losses and damages of lmal businesses caused by the project will be compensated; The contractors will be required to maintain public safety and smooth traffic by preparing and installing required signs; The contractors will also be required to coordinate with local authorities to maintain public safety.

Socioeconomic

Table 6.3 Likely Negative Impacts and Mitigation Measures of the West Java Gas Distribution Expansion During Operation

Likely Negative Impacts Mitigation Measures

During Operation, emissions from generators and release of natural gas (predominantly methane [CHd) from offtake stations are very unlikely, but might happen (very low probability). The odorizing plants will be in isolated locations, so Injection of THT (tetrahydrothiophene) to the gas is unlikely to cause any nuisance.

Natural gas is flammable and explosive, so the operation of any natural gas pipeline poses risks. Safety risks can arise from: pipeline damage, with resulting release of natural gas; leakage through valves and flanges; leakage through fittings and regulators; and release of THT at the odorizing plant, including leakage from THT storage drums

The five off-take stations are isolated away from human habitation. pipeline and offtake stations will be designed according to standards consistent with international practices to avoid leak. There will be systems to detect and react to leaking rapidly.

Air and Noise Pollution

During the course of project preparation, and distinct from the EA and EMP preparation, safety aspects of PGN's overall operations and specifically for the project have been jointly reviewed by Bank experts and PGN staff. The pipeline will be designed to ASME B31.8 Class 4 standard consistent with densely populated urban areas. The entire West Java gas distribution system is designed for compliance with the Indonesian Pipeline Standards, which is the equivalent of the American Society of Mechanical Engineers (ASME) Code B31.8 Gas Transmission and Distribution Systems (1989 edition). PGN also uses the latest edition of the ASME code, supplemented by specifications and standards from the Institute of Gas Engineers and British Gas. In addition, PGN has established procedures and specifications covering construction, commissioning, operation and maintenance.

Safety and Risks of Accident

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7. Environmental Management Plan

EMP Purpose and Objectives

In accordance with the requirements o f the World Bank’s OP4.01 on Environmental Assessment, this Environmental Management Plan (EMP) has been prepared for the project. The purpose o f the EMP i s as follows:

Provide direction to owners, contractors, operators and environmental regulatory agencies on environmental protection measures that need to be implemented to eliminate or reduce environmental effects o f construction and operation activities o f the proposed project;

Delineate the requirements for environmental monitoring and inspection activities o f the project sites, including identification o f the group or agency responsible for monitoring or inspection, type of monitoring or inspection to be undertaken, parameters to be tested, monitoring and inspection schedule, and reporting requirements;

Identify organizations or institutions responsible for managing the environmental program, who w i l l ensure environmental protection measures are properly designed and implemented, undertake environmental monitoring, and prepare environmental reports for the project;

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Institutional Roles and Responsibilities

PGN currently incorporates Indonesian EA procedures (AMDAL) into project planning and implementation wherever required. For the proposed project, PGN w i l l establish a Project Implementation Unit (PIU) with overall responsibility for coordinating and managing the project, including environmental issues, and an environmental coordinating office (ECO) to oversee and support the monitoring and mitigation activities i s being developed at PGN’s central office in Jakarta. The ECO w i l l serve as the core unit to be strengthened under the environmental management capacity building program proposed in the EMP.

During the project preparation stage, as the proposed project w i l l pass through more than one provinces, i t s AMDAL process i s overseen by the national level AMDAL committee chaired by the deputy minister of the Ministry o f Environment and the Director o f Environment o f the Ministry o f Environment i s the secretary of the AMDAL committee.

During the construction stage, any issues o f environmental and social compliance, monitoring, and reporting would continue to be under the authority o f the PIU. The implementation o f AMDAL w i l l be contracted out to contractors. All contractors w i l l be monitored to ensure full compliance with Indonesian legislation and the approved EIA (including EMP). PIU w i l l report to provincial (level 1) and regional (level 2) BAPEDAL quarterly for the implementation o f AMDAL o f the subprojects carried out by contractors in the regions and the provinces.

Once construction i s completed, responsibility for any continuing monitoring and reporting work i s under the authority o f the General Manager o f the Strategic Business Unit 1 (SBU1) o f PGN. Again, the General Manager o f S B U l w i l l report quarterly to the regional and provincial BAPEDAL for the implementation o f AMDAL o f the gas distribution system in the region and province.

Monitoring

During the construction phase, impact monitoring and mitigation activities w i l l be one o f the primary responsibilities o f Site Manager. H e i s based in the field, directly overseeing the contractors who are carrying out the excavation and pipe-laying work. He w i l l also frequently meet wi th local government officials, and w i l l be recognized as the primary contact should any complaints or issues arise. On a monthly basis, the Evaluation and Reporting Manager, under the Project Administration Manager, w i l l visit each

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construction site to observe progress and assess any problems from a more central perspective. Possible environmental and social impacts to be monitored are listed in following table.

Table 7.1 Possible Environmental and Social Impacts To Be Monitored During Construction

Traffic Congestion and Disruption: - excavation procedures - traffic flow and public safety - disruption of access to residents & businesses

Soil Erosion: - use of “patch boxes” for soil storage - proper back filling and compaction - proper disposal of excess soil - restoration to original conditions

Air Pollution: - incidence of fugitive dust problems

Noise: - noise levels to be measured in response to any public complaints

Disturbance to Other Underground Infrastructure: - excavation procedures

Water Pollution and Run-off: - controlled drainage of testing waters

Solid Wastes: - proper disposal of excess soil - proper disposal of other inorganic solid wastes - proper disposal of organic solid wastes

Socioeconomic Issues: - timely excavation to minimize losses of access to businesses - prompt and transparent resolution of claims for losses - prompt resolution of any incidents among personnel or between workers and the community

After construction i s completed, the pipeline w i l l be operated b y the West Java Strategic Business Unit primary on-going environmental concern i s the risk o f leakage, fire and/or explosion. PGN has well established sound design and safety monitoring systems based on inspections, preventive maintenance and emergency response preparedness. These w i l l benefit f rom Bank support under the project.

Reporting

Reports based on the monitoring o f construction under the project w i l l also be the responsibility o f the PIU. The Site Managers w i l l report through the Construction Manager. Construstion Manager w i l l then evaluate the report and convey i t to the Project Manager. The Project Manager w i l l be responsible for submitting quarterly and special reports on general construction progress and any construction problems that may affect the local environment or community. These are required under the RPL, the Rencana Pemantauan Lingkungan - the Environmental Monitoring Plan. They are submitted to the Central AMDAL Committee, f rom where they are then circulated to local environmental officials. The Project Manager w i l l share these reports with al l members of the ECO, as well as with the Wor ld Bank. Actual preparation o f the Project Manager’s reports w i l l generally be done by the Evaluation and Reporting Manager.

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In addition to the quarterly reports, prepared in Bahasa Indonesia in fulfil lment o f AMDAL reporting requirements, the PIU, with the support o f the ECO will, prepare bi-annual environmental summary reports, to be submitted in English to the World Bank. T h i s report would include:

0

0

0

a summary o f significant mitigation measures, if any, undertaken during the previous six months; a description o f any significant problems or successes in environmental mitigation during the period; and anticipated notable environmental or social events anticipated during the coming six months.

In addition to these environmental management reports, i t should be noted that PGN has standard procedures for reporting on safety and emergency response incidents. These include:

0 incidenvaccident reporting;

0 gas escapes. response in the event o f incidents/accidents: and

PGN compiles accidendincident statistics on a monthly and annual basis. T h i s information i s submitted to Directorate General for Oil and Gas (Bahasa: Direktorat Jenderal Minyak dan Gas or Dir jen MIGAS). For the duration o f the World Bank loan, these reports w i l l be summarized and included in the bi-annual environmental reports submitted to the World Bank. Thus the basic outline o f the bi-annual reports o n environmental monitoring for the project w i l l include:

0

0 mitigation problems and successes 0 accidenaeakage incidents summary 0

summary o f any significant mitigation measures

anticipated work and impacts to be monitored during the next reporting period

Technical support to establish Environmental Coordinating Office (ECO)

In order to establish firmly the ECO’s capacity to support environmental efforts company-wide, a 5-year program o f technical and capacity building support has been prepared b y PGN as shown in fol lowing tables.

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I Clean Development Mechanism

Table 7.2 Training Programme for ECO

17.

18.

Emergency Preparedness & Response Kesehatan dan Keselamatan Lingkungan Kerja 20 Head Office/SBU 950

Manajemen Resiko terhadap Lingkungan 15 Head Office 1100

(OHSAS 18001) Occupational Health and Safety I8001

Environmental Risk Management Total** 350 351,000

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Table 7.3 Training Schedulle

8. Public Consultation and Disclosure Three public consultations were undertaken by PGN in July, September 2002 and April 2003. Participants included the heads o f both provincial and regency-level environmental planning boards (Bapedal Tingkat I and 11) as well as a cross section o f regional and local representatives o f stakeholder groups: government agencies, local people, local businesses, NGOs, and academics. Major issues discussed include the implementation o f EIA, the coordination with relevant authorities, impacts o f the project on local communities, interests o f local communities, gas market development, customer service, safety issues during the project operation stage, etc. The scope o f the proposed project (including pipeline routing and proposed location for offtake) has never been revised since April 2003.

In addition, PGN also conducted the socialization with the local affected people in (a) Zone 1 (Greater Jakarta), which was held on September 28, 2004 at the Head o f Bekasi District office; (b) Zone 2, on 13, 19, and 20 o f August 2004 in Balaraja, Cikande, and Kramat Watu respectively; and (c) Zone 3, on September 29,2004 at Wisma PGRI o f Karawang.

Informal interviews o f local people on the roadside in various sites along the project route were conducted in 2003. Some 21% o f the respondents were supportive o f the project and thought i t “wi l l be good for local development”. About 12% felt that such a project would create too many “negative” impacts (mainly traffic problems). About two thirds (67%) were neutral. Respondents strongly suggested that construction work should be performed as fast as possible, so as to minimize disturbance on traffic. The project also was announced and publicated in the local and national newspapers.

The next stage o f consultation w i l l occur during the final detailed design and planning that w i l l fo l low confirmation o f financing for the project through the loan agreement wi th the World Bank. As indicated in the informal public surveys carried out during the preparation o f this EIA, the general impacts and disturbances o f public works projects are well known. In the next stage, once the project i s confirmed and

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specific customers and routes are confirmed, public consultations wil l be scheduled in the individual kecematan (sub-districts) where the route would pass.

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