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Ulubelu Units 3 & 4
Supplemental ESIA –
Volume I
Non-Technical Summary
September 2014
Pertamina Geothermal Energy
Ulubelu Units 3 & 4
Supplemental ESIA –
Volume I
314049
TRD
EFR
001
B
314049_Ulubelu NTS_RevB
Non-Technical
Summary
Ulubelu Units 3 & 4 Supplemental ESIA – Volume I
September 2014
September 2014
Menara Cakrawala 15th floor, Jalan MH. Thamrin No. 09 - Jakarta 10340,
Indonesia
Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom
T +44 (0)1273 365 000 F +44(0) 1273 365 100 W www.mottmac.com
Issue and revision record
Standard
Revision
Date
Originator
Checker
Approver
Description
A
01/08/2014
Shalini Arora
Ian Scott
Ian Scott
1st Draft, for comment
B
18/09/2014
Shalini Arora
Ian Scott
Ian Scott
2nd Draft, for disclosure
This document is issued for the party which commissioned it and
for specific purposes connected with the above-captioned project
only. It should not be relied upon by any other party or used for
any other purpose.
We accept no responsibility for the consequences of this
document being relied upon by any other party, or being used
for any other purpose, or containing any error or omission
which is due to an error or omission in data supplied to us by
other parties.
This document contains confidential information and proprietary
intellectual property. It should not be shown to other parties
without consent from us and from the party which
commissioned it..
314049/TRD/EFR/001/B September 2014
Contents
Section
Title
Page
1
Introduction
1
1.1
1.2
1.3
1.4
Overview _________________________________________________________________________
The Project developer _______________________________________________________________
Opportunity to comment on the Project __________________________________________________
What are the key ESIA documents related to the Project? ____________________________________
1
2
2
3
2
The Project
4
2.1
2.2
2.3
2.4
The need for the Project ______________________________________________________________ 4
Project definition ____________________________________________________________________ 4
Schedule ________________________________________________________________________ 11
Selection of Project site and technology _________________________________________________ 11
3
Managing Environmental and Social Impacts
12
3.1
3.2
3.3
3.4
Assessing the Project _______________________________________________________________
Environmental and social impacts _____________________________________________________
Cumulative impacts ________________________________________________________________
PGE’s management of environmental and social impacts ___________________________________
12
13
29
30
4
Summary
31
Figures
Figure 2.1:
Figure 2.2:
Figure 2.3:
Figure 2.4:
Geothermal Power Plant Process Summary ______________________________________________ 5
Project Location in relation to South Sumatra _____________________________________________ 6
Main Project Components as assessed in the Original ESIA __________________________________ 7
Project Component Scope (Supplemental ESIA) __________________________________________ 10
Tables
Table 3.1:
Table 3.2:
Table 3.3:
Table 3.4:
Table 3.5:
Table 3.6:
Table 3.7:
Table 3.8:
Table 3.9:
Table 3.10:
Table 3.11:
Summary of significant surface water impacts and mitigation measures ________________________
Summary of significant groundwater impacts and mitigation measures _________________________
Summary of significant noise impacts and mitigation measures ______________________________
Summary of significant ecology impacts and mitigation measures _____________________________
Summary of significant air quality impacts and mitigation measures ___________________________
Summary of significant climate change impacts and mitigation measures _______________________
Summary of significant waste management impacts and mitigation measures ___________________
Summary of significant geology and erosion impacts and mitigation measures ___________________
Summary of significant land contamination impacts and mitigation measures ____________________
Summary of significant traffic impacts and mitigation measures ______________________________
Summary of significant social impacts and mitigation measures ______________________________
14
16
18
19
21
22
22
23
23
25
26
Glossary
AIDS
AMDAL
ANDAL
BAL
BAPEDAL
BAPEDALDA
BKSDA
BLH
BOD
BPLH
CAS
CBD
CHS
CITES
CLO
CMS
COD
EA
EHS
EIMA
EMA
ESIA
ESMP
GDP
HGV
HIV
HKm
HSE
IFC
ILO
IPPKH
IUCN
IUP
IUPL
JAMSOSTEK
JICA
Acquired Immune Deficiency Syndrome
Environmental Impact Assessment
ESIA Report
Basic Agrarian Law
Environmental Impact Management Agency (or EIMA)
Regional Environmental Impact Management Agency
Local Wildlife Protection Office
Environment Agency at Provincial and Regency Levels
Biochemical Oxygen Demand
Environmental Management Agency
Chemical Abstracts Service
Convention on Biological Diversity
Community Health & Safety
Convention on International Trade of Endangered Species of
Wild Fauna and Flora
Community Liaison Officer
Conservation of Migratory Species of Animal Wildlife
Chemical Oxygen Demand
Environmental Assessment
Environmental, Health and Safety
Environmental Impact Management Agency (or BAPEDAL)
Environmental Management Act
Environmental and Social Impact Assessment
Environmental and Social Management Plan
Gross Domestic Product
Heavy Good Vehicles
Human Immunodeficiency Virus
Hutan Kemasyarakatan (Community Forest)
Health, Safety and Environment
International Finance Corporations
International Labour Organisation
Ijin Pinjam Pakai Kawasn Hutan
International Union for Conservation of Nature
Mining Activity Permit
Electricity Supply Business Permit
Social Security System
Japanese International Cooperation Agency
KA-ANDAL
KLH
KK
KSPSI
LU
MDG
MENKES
MENLH
MKLH
MML
MPN
MT
MW
NA
NCG
ND
NER
NGOs
NJOP
NW
OHS
OP
OP
PCDP
PE
Persero
PGE
PKK
PLN
PLTP
PNOC
Posyandu
PP
PPE
PT
Terms of Reference of ESIA Report
Kementarian Lingkungan Hidup (Ministry of Environment)
Kementarian Kehutanan (Ministry of Forestry)
Confederation of All Indonesian Workers' Union
Land Use
Millennium Development Goal
Decree of. Minister of Health Regulation
Ministry of Environment
Decree of Ministry of Environment
Mott MacDonald Limited
Most probable number
Magneto-telluric
Mega Watt
Not Available or Applicable
Non Condensable Gas
Not Detected
Net Enrolment Rate
Non-governmental Organisations
Nilai Jual Objek Pajak (Sales Value of the Tax Object)
North West
Occupational Health & Safety
Indigenous Peoples
Operational Policy
Public Consultation and Disclosure Plan
Decree of Ministry of Mines and Energy
Corporation managed by the State or Region
Pemberdayaan dan Kesejahteraan Keluarga (Empowerment
and Family Welfare / Women’s Group)
Indonesian State Electricity Company
Thermal Power Plants
Philippines National Oil Company
Pos Pelayanan Terpadu (Integrated Service Post for Mothers’
and Children’s healthcare)
Government Regulations
Personal Protective Equipment
Company Limited
Puskesmas
RAMSAR
RI
RKL
RPL
RUKN
SCR
SE
SEP
SPPGE
SMK3LL
SW
TEM
TSS
TWA
UBL
UK
UKL
UN
UPL
US
USEPA
UU
UUPA
WALHI
WB
WHO
WMP
WPS
WWTP
Pusat Kesehatan Masyarakat (Society Health Centre)
Convention on Wetlands
Republic of Indonesia
Environmental Management Plan
Environmental Monitoring Plan
Local Electricity Plan
Selective Catalytic Reduction
South East
Stakeholder Engagement Plan
Serikat Perkerja Pertamina Geothermal Energy
HSE System Management
South West
Transient Electro-Magnetic
Total Suspended Solids
Time Weighted Average
Ulubelu
United Kingdom
Environmental Efforts
United Nations
Environmental Monitoring Effort
United States
States Environmental Protection Agency
Acts
Basic Regulations on Agrarian Principles
Indonesian Forum for Environment
World Bank
World Health Organisation
Waste Management Plan (WMP)
Water Pumping Stations
Wastewater Treatment Plant
1
Introduction
1.1
Overview
The purpose of this document is to present in a clear, simple and concise manner, the main findings and
conclusions of studies of the potential environmental and social impacts of the construction and operation
of the Ulubelu Units 3&4 Geothermal Power Project (the Project), located in the Tanggamus district of
Lampung Province, Sumatra. This document is a non-technical summary (NTS) of the Environmental and
Social Impact Assessments (ESIA) that have been undertaken to identify and manage impacts. The
Project is being developed by Pertamina Geothermal Energy (PGE).
The development of geothermal power seeks to increase the amount of energy generated in Indonesia,
given the existing power shortages and predicted growth in demand for energy and electricity. Geothermal
power is a source of renewable energy and allows Indonesia to use its existing national resources.
The Project involves the development of well clusters, steamfields and a power plant. The steam extracted
from the geothermal wells will power a geothermal power station with an output capacity of 110 MW, made
up of the two 55MW units, referred to as Units 3&4. This part of the Project included the preparation of an
international-quality ESIA, in compliance with World Bank procedures and guidelines. This ‘Original ESIA’
was completed in 2011.
Since the finalisation of the Original ESIA in 2011, PGE has identified a need to develop additional well
clusters and associated project infrastructure connected with Units3&4 of the geothermal power station.
This is primarily due to insufficient capacity in the existing network of well clusters to maintain future steam
supply (and hence power supply). PGE therefore intends to undertake further development of the Ulubelu
Units 3&4 Geothermal Power Project. This work includes the preparation of a ‘Supplemental ESIA’, to
identify any potentially significant environmental and social impacts resulting from the additional Project
infrastructure.
Under Indonesian legislation, environmental assessment as a planning tool is known as Analisa Mengenai
Dampak Lingkungan (AMDAL). Due to the size of the Project, a full AMDAL process is required resulting in
the production of an Environmental Statement (known as an ANDAL report), an Environmental
Management Plan (RKL) and Environmental Monitoring Plan (RPL). An AMDAL for the purpose of
permitting and compliance with Indonesian legislation was undertaken and completed on behalf of PGE by
a local university consultancy, Lembaga Penelitian Universitas Lampung (the Local AMDAL Consultant)
and approval from the Head of the Environment Agency of Lampung Province was issued on 20 October
2010. This AMDAL covered the Units 3&4 power plant, a 500m internal transmission link and the original
steam field (access roads, wells and pipelines). A further AMDAL study has since been completed to
account for the proposed new Project components. This was submitted to the Ministry of Environment
(KLH) for approval in 2013 and was approved on 2 June 2014.
The scope of the Original ESIA included the steam field (addressing cluster development for the project,
separators and pipes), the water pumping stations, access roads built for the Project and Ulubelu Units
3&4 power plant. The scope of the Supplemental ESIA focussed only on those components which are
additional or modified since the Original ESIA.
1
The Original ESIA report is available on PGE’s website1; it is recommended that this document is
consulted alongside the Supplemental ESIA documents for further information.
1.2
The Project developer
The Project is being developed by Pertamina Geothermal Energy, a subsidiary of the Indonesian national
oil company PT Pertamina (Persero), was established in 2006 as mandated by the Government of
Indonesia (GoI) to develop 14 Geothermal Business Working Areas in Indonesia. Of the 14 Geothermal
Business Working Areas, four are operational sites (Kamojang, Lahendong, Sibayak and Ulubelu Units
1&2), which collectively generate on average 20 million tons of steam per year..
PGE is developing several other sites, including the Ulubelu Units 3&4 site which is the focus of this report.
PGE has received a portion of a grant from The Government of New Zealand, which has been channelled
through the World Bank, to assist them in capacity building and contributing to the costs of development of
the Ulubelu Units 3&4 Geothermal Power Project.
1.3
Opportunity to comment on the Project
As part of the AMDAL process for the wells (steam field) and for the power plant, “socialisation” or public
consultation has previously been carried out by the Local AMDAL Consultant in accordance with
Indonesian legislation. Formal consultation was also undertaken during the preparation of the Original
ESIA. Consultation with heads of villages and with national and regional bodies has been undertaken to
inform the Draft Supplemental ESIA.
For the Draft Supplemental ESIA disclosure and consultation:
 PGE will make the Draft Supplemental ESIA documents (Volumes I to III) available on the PGE
(www.pge.pertamina.com) and World Bank InfoShop (http://publications.worldbank.org) websites for 30
days. The Original ESIA Volume II (main report) and Volume III (Appendices) will also be disclosed
alongside the Supplemental documents to provide the necessary background information to read and
understand the Supplemental ESIA. Interested and/or affected stakeholders will be given the
opportunity to comment on the Supplemental ESIA before it is finalised.
 PGE will also hold a printed copy of these documents (translated into Bahasa Indonesia) at the PGE
site office and each Kepala Pekon’s office for 30 days to enable local community members to review
the Supplemental ESIA and submit comments.
 The Supplemental ESIA will also be disclosed via email to key NGOs which have expressed an interest
in the Project.
1
2
http://pge.pertamina.com/index.php?lang=en&option=com_phocadownload&view=category&id=13%3Aesia-ulubelu&Itemid=110#
The key channels identified for communicating information to interested parties are as follows:
 Disclosure within the local communities of the Supplemental ESIA;
 Ongoing media communications;
 Ongoing stakeholder meetings during construction and operation;
 Community investment activities;
 Annual reports; and
 Open days during operation.
In addition to the 30 day disclosure and consultation period for comments on the ESIA, questions and
comments can be addressed to PGE Project Public Relations Officer:
PGE – Project Proponent
Name: Mr. Permadi Bela Patria
Role: Public Relations Officer (PRO)
Address: Jalan Raya Ulu Belu, Pekon Karang Rejo, Kecamatan Ulu Belu, Tanggamus 35379
Tel: (072) 922881
Email: permadi.patria@pertamina.com
1.4
What are the key ESIA documents related to the Project?
The ‘Original ESIA’ documentation prepared by MML (finalised in March 2011) comprised four volumes, as
follows:
 Ulubelu 3&4 Revised ESIA Report - Volume I, Non-Technical Summary (NTS) (March 2011);
 Ulubelu 3&4 Revised ESIA Report - Volume II: Environmental and Social Impact Assessment (ESIA)
(March 2011);
 Ulubelu 3&4 Revised ESIA Report - Volume III: Appendices (February 2011);
 Ulubelu 3&4 Revised ESIA Report - Volume IV: Environmental and Social Management Plan (ESMP)
(March 2011).
This ‘Supplemental ESIA’ documentation prepared by MML (draft 2014) comprises three volumes, as
follows:
 Ulubelu Units 3 & 4 Supplemental ESIA – Volume I: Non-Technical Summary (this document,
which supersedes the Volume I: NTS produced in 2011);
 Ulubelu Units 3 & 4 Supplemental ESIA – Volume II: Supplemental Environmental and Social Impact
Assessment (which is supplemental to the Volume II: ESIA produced in March 2011 and also makes
reference to ‘Volume III: Appendices’ produced in February 2011);
 Ulubelu Units 3 & 4 Supplemental ESIA – Volume III: Environmental and Social Management Plan
(which supersedes the Volume IV: ESMP produced in 2011).
3
2
The Project
2.1
The need for the Project
As a whole, Indonesia has been experiencing rapid demand growth in all segments of the energy sector for
several years. Power shortages resulting in frequent blackouts have been experienced in 250 regions,
including Sumatra. Given the existing power shortages and predicted growth in energy demand the need
for new energy generation facilities to be established and commissioned over the next few years is high.
The following points highlight the national and regional needs for development of additional energy sources
with the objectives of the Project being to:
 Contribute to national energy requirement for sustainable development;
 Contribute to regional energy requirements of Sumatra;
 Contribute to a diverse energy base to secure energy requirements for Sumatra;
 Provide continuous, reliable, high efficiency and low cost energy;
 Provide economic and social benefits on both a national and regional level;
 Provide potential employment opportunities to the community residing in the region and nearby;
 Contribute to the local economy, social and technical infrastructure; and
 Increase the diversity of energy resources.
In particular geothermal energy provides an alternative solution to current dependence on coal to supply
the majority of baseload demand.
2.2
Project definition
2.2.1
Geothermal power
To utilise geothermal energy, production wells are drilled down into the heated water contained within the
Earth's crust - the geothermal reservoir. Once these geothermal reservoirs are tapped into, the heated
water and steam rise to the surface where the steam is separated and used to power steam turbines,
which then generate mechanical energy that can be harnessed as electricity. Brine and condensate are
returned via reinjection wells back to the geothermal reservoir.
Figure 2.1 presents a high level summary of the overall geothermal power plant process. The process can
be separated in two main areas:
 Steam fields, where steam is extracted, processed and also subsequently re-injected; and
 Power plant, where the extracted steam is used to generate electricity.
4
Figure 2.1:
Source:
Geothermal Power Plant Process Summary
PGE
2.2.2
Ulubelu Units 3&4 Geothermal Project
2.2.2.1
Project location
The Ulubelu Project site is located 80km west of Bandar Lampung, in the Tanggamus district of Lampung
Province, Sumatra, Indonesia. Several villages are located in the vicinity of the Project, including
Datarajan, Gunung Tiga, Karang Rejo, Pagar Alam, Ngarip, Air Abang and Muara Dua. The proposed new
Project components also introduce activity in the vicinity of sub-villages, including Talang Darus and
Wijimulyo. The area predominantly comprises cultivated land (including rice and coffee plantations) in an
undulating basin surrounded by mountainous regions to the north, west and east. Following modification of
the project components since the Original ESIA, the northern components of the Project now extend into
the watershed protection forest (Hutan Lindung).
The Project location in relation to Lampung Province is provided on Figure 2.2.
5
Figure 2.2:
Source:
2.2.2.2
Project Location in relation to South Sumatra
National Coordinating Agency for Surveys and Mapping
Original Project definition
The Ulubelu Units 3&4 Project originally included six clusters (groups of wells); four for steam production
and two for condensate and brine reinjection, and associated access roads. The steam produced will
power a geothermal power station of two 55MW units referred to as Ulubelu Units 3&4 with a total power
output of 110MW.
Also located on the Ulubelu geothermal field, the geothermal Unit 1&2 power project (consisting of two
55MW units) has been separately developed by PLN (with financing from JICA); this plant entered into
commercial operation in 2012. PGE is also involved in this project as it is responsible for the drilling of
production and reinjection wells to support Units 1&2; however the development of power plant Units 1&2
and corresponding well development is outside the project financing scope of the World Bank.
Although the PLN and PGE power plants are separate developments, they will be located near each other,
roughly in the centre of the clusters. In addition, some wellpad clusters will accommodate dedicated wells
for one power plant or the other although there are no proposals for interconnection in the Ulubelu
6
steamfield between respective projects. Therefore, although the Unit 1&2 development is not the focus of
this ESIA, Units 1&2 has been considered where cumulative impacts are expected.
Power from Units 3&4 will be sent to the PLN Units 1&2 switchyard via a dedicated 500m transmission link,
which was included in the Original ESIA scope. Independently from the Project under consideration in this
ESIA, PLN has built a 150kV transmission line to connect Units 1&2 to the South Sumatra transmission
grid.
Figure 2.3 presents a summary of the Project components that formed the focus of the Original ESIA for
Ulubelu Units 3&4.
Figure 2.3:
Main Project Components as assessed in the Original ESIA
Legend:
Source:
Mott MacDonald Ulubelu 3&4 Revised ESIA Report – Volume III
7
2.2.2.3
Supplemental Project definition
There is an operational requirement to expand the Ulubelu geothermal field. The production capability of
the wells drilled under the scope of the Original Project has been shown to be inadequate to meet
electricity generation requirements at the Units 3&4 plant. Therefore, additional production and reinjection
wells have been proposed by PGE to account for this shortfall in generating capacity.
The Supplemental ESIA also focuses on the Units 3&4 power plant and the production wells, reinjection
wells and make-up wells proposed to serve it; some of these are the same as the Original ESIA, some
have been modified and others are new additions. Potential cumulative impacts – the impacts of PGE
Units 3&4 combined with impacts of PLN Units 1&2 – have been considered where they are beyond those
considered in the Original ESIA.
The modified Project consists of a total of fifteen clusters (each with one to seven wells specific to the
Project). Six of the clusters (B, C, G, H, I and K) will be used for steam production and two (R1 and R2) for
condensate and brine reinjection. Cluster E was installed following the Original ESIA; it is now idle but will
be retained for future well monitoring / other purposes. The remaining six clusters are designated as makeup clusters (J, MK1, MK2, MK3, MK4 and MK5) to maintain generating capacity in future years as the
productivity of the production wells declines.
The scope of the Supplemental ESIA therefore includes:
Clusters which are retained and/or modified from the Original ESIA:
 Cluster C, which was originally proposed to serve PLN Units 1&2 only as a production cluster, is now
proposed to have one well (UBL-27) serving Units 3&4 and is therefore included in the scope;
 Clusters B, G and H are still intended to serve Units 3&4 as per the Original ESIA (although Cluster B
will also serve PLN Units 1&2), therefore these clusters are also included in the Project scope.
New Project components proposed since the Original ESIA:
 Two new production clusters (I and K) and two new reinjection clusters (R1 and R2) are proposed to be
located on private land, each with a maximum of seven wells. Clusters R1 and R2 will serve Units 3&4
and, providing well permeability is suitable, PLN Units 1&2 also.
 A total of nine make-up clusters have been proposed to help maintain future power generation capacity
at both plants. Only six of these clusters (Cluster J and Clusters MK1-5) are intended to serve Units
3&4 and therefore the remaining clusters (R, S and T) are considered outside of the Project scope.
Clusters J, MK2, MK3, MK4 and MK5 are located within the boundary of the Hutan Lindung; Cluster
MK1 will be located on privately owned agricultural land outside of the Hutan Lindung boundary (see
Figure 2.4).
 Four new water pumping stations (WPS) in addition to the three existing WPS will support all activities
(including those considered to be outside of the Project scope). The new WPS are intended to be
located near the new make-up wells; all four of these are included in the Project scope and will be
located within the Hutan Lindung although their exact locations have yet to be finalised.
 Additional pipeline corridors are also proposed to connect the various project components. Given the
locations of clusters, certain lengths of pipeline will be located in the Hutan Lindung.
8

The steamfield above-ground system (SAGS) will consist of three separators located at a separator
station near Cluster H. Two phase pipelines will connect all clusters to the separator station. Steam
pipelines will run from the separators to the power plant and brine pipelines will run from the separators
to the reinjection Clusters R1 and R2. Condensate from the power plant will be returned to Cluster R2
for reinjection via a dedicated condensate pipeline.
Figure 2.4 presents a summary of the Project components associated with the Ulubelu geothermal
development; these are divided into those within the scope of the Supplemental ESIA for Ulubelu Units
3&4 and those activities outside of the Project scope (i.e. serving PLN Units 1&2 only).
2.2.2.4
Status of Project components
Access roads to clusters B, C, G, H, I and R1 have been completed, whilst Clusters B, C, G and H have
been constructed and drilled; of these Clusters, B and C are operational as they are currently supplying
steam for PLN Units 1&2. At the time of the site visit in September 2013, Cluster I was under construction
and was being prepared for drilling. Cluster R1 was at the site clearance and earthworks stage of
construction.
As of July 2014, cluster K is in the land acquisition process and cluster R2 is under construction. Land has
not been acquired for the remaining new Project components (the make-up wells) as they are
predominantly located within the Hutan Lindung. The Hutan Lindung is owned by the Government of
Indonesia and PGE will apply for a permit to use the land for geothermal power. However, it is anticipated
that construction of the make-up clusters will not occur immediately as they are unlikely to be required for
some years.
9
Figure 2.4:
Project Component Scope (Supplemental ESIA)
Note: Locations of new clusters except Cluster I to be confirmed (indicative only as land not acquired)
10
2.3
Schedule
PLN Units 1&2 reached commercial operation in September and October 2012 respectively; therefore all
steamfield components designated to serve the PLN plant were completed before this time and are now
operational. Further site preparation, detailed design, mobilisation and civil works have taken place at
some of the proposed production and reinjection clusters since the Original ESIA; drilling at these sites is
scheduled to be completed in 2015 and production testing is also scheduled to be completed in 2015.
Engineering, procurement and construction (EPC) for Units 3 and 4 is expected to take 23 and 33 months
respectively. The Commercial Operation Date (COD) for Unit 3 is currently scheduled for June 2016; COD
for Units 4 is expected approximately one year later in June 2017. A detailed schedule for the construction
and operation of the make-up clusters (J, MK1, MK2, MK3, MK4 and MK5) has not yet been proposed,
although it is acknowledged that this process will be dependent on the timescales involved in obtaining
Land Use permits for the Hutan Lindung.
2.4
Selection of Project site and technology
The Project development and the ESIA process included consideration of alternative sites, technologies
and configurations.
The search for potential geothermal prospects is carried out through geological mapping, geochemical
sampling of springs and streams along with geophysical surveying. Shallow wells are used to map the
extent of the geothermal site and slim holes may be drilled down to 500-1000 m depth to investigate
temperatures at depth prior to location and drilling of production and re-injection wells. The general
location of well pads and power station in geothermal developments is initially constrained by the overall
geothermal resource. However the physical footprints of the power station, well pads, and access roads
required are small in comparison to the overall exploitation area. The use of directional drilling (the hole is
not vertical and the bottom of the well therefore not directly underneath the well head) of wells to reach the
geothermal resource allows for the development of well pad clusters which can be sensitively located away
from important receptors. Site selection process starts with a review of the topography of the area for
selecting the location for well pads and power plant and determining routes for the process, reinjection
pipes and gathering system. The selection of well pads to date has avoided dwellings and taken into
consideration existing land use. In addition, where feasible, wells have been sited away from steep slopes
and paddy field locations and to minimise the removal of trees. The layout chosen has aimed to maximise
the natural elevation and eliminate the need for pumps within the system, which is instead powered by
natural gravity and pressure within the system.
Based on the requirements for base load (continuous electricity production), stable electricity generation,
costs, raw materials availability and other developments envisaged by PLN, the analysis of alternatives
has concluded that a coal fired thermal power plant would be the most likely alternative to the Project. The
environmental and social impacts of the two options were compared in the Original ESIA and the
comparative review illustrates the benefits of geothermal generation over coal for this Project. A
geothermal generation plant is considered to be the most appropriate solution for achieving the objectives
of this project as well as the overall power generation expansion plan for Indonesia.
11
3
Managing Environmental and Social
Impacts
3.1
Assessing the Project
An assessment of the potential impacts arising from the Project development has been undertaken, as
described in Section 3.2 below; the assessment comprised a detailed review of the potential environmental
and social impacts of the Project. The assessment included:
 Establishing or updating the baseline to understand current conditions at and around the proposed
Project sites;
 Prediction of impacts, using, where relevant, advanced modelling tools;
 Identification of mitigation measures to be included in the design, procedures, development and
management of the Project.
The assessment process was supported by local consultation undertaken during the Original ESIA and the
Supplemental ESIA site visit to ensure that PGE understands and has incorporated the concerns of local
people from the surrounding villages into the process.
The significance of an impact is described based on sensitivity of project affected persons / environment
and magnitude of impacts. Where possible, impact magnitude and sensitivity are described with reference
to legal requirements, accepted scientific standards or accepted impact assessment practice and/or social
acceptability. Where the ESIA found that the project could cause significant impacts then actions or
procedures (referred to as mitigation measures) have been developed to avoid, reduce or otherwise
mitigate the effects and reduce their significance. A great number of potential impacts can either be
avoided or reduced through mitigation; however, some environmental impacts may still occur after the
application of mitigation (known as residual impacts). Each chapter of the ESIA has assessed whether
residual impacts, either beneficial or adverse, remain after mitigation.
A summary of the key findings of the appraisal process is provided below for environmental and social
impacts. A full description of all environmental and social impacts is provided in the ESIA document
(Volume II). Only those impacts assessed as ‘significant’ are presented in detail in this NTS document,
along with a description of the mitigation required and any residual impacts. These represent the most
important findings of the ESIA. A brief description is also provided of other impacts although these are not
presented in detail.
12
It is recognised that a project of this scale and duration has the potential to impact the environment and the
community, both in a positive and negative way. The phases of the Project are:
 Exploration, drilling and construction (relating to the exploration of the geothermal resource, drilling of
geothermal wells and construction of the SAGS and power plant);
 Operation (relating to the operation of the steamfield and power plant); and
 Decommissioning (relating to the post operation of the power plant)
Project activities were considered to identify potential environmental impacts associated with:
 Water quality and hydrology
 Groundwater
 Noise
 Ecology
 Air quality
 Climate change
 Waste management
 Geology and erosion
 Land contamination
 Traffic management
 Archaeology and cultural heritage
Project activities were considered to identify potential social impacts associated with:
 Employment generation;
 Workers well-being
 Community health, safety and well-being
 Land acquisition
 Community investment
These impacts were assessed in the Original ESIA and where impacts have changed since the Original
ESIA, these have then been assessed in detail in the Supplemental ESIA.
3.2
Environmental and social impacts
The summary tables below display the impacts as assessed in the Original ESIA. Where notable changes
to these impacts or additional impacts have been identified in the Supplemental ESIA, these are presented
in bold font to differentiate them from impacts identified in the Original ESIA. The tables below therefore
represent a combined view of the outputs of the Original ESIA and the Supplemental ESIA.
Formatted: Normal,~BodyText
13
3.2.1
Environmental impacts
3.2.1.1
Water quality and hydrology
Table 3.1:
Summary of significant surface water impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Residual Significance
Exploration,
drilling and
construction
Abstraction during
dry season
Less water available
for human and
ecological needs
Adverse impact of major
significance
Prior to any new river abstractions, identify any local users
downstream as far as Karang Rejo.
Adverse impact of low
significance
Choose abstraction flow rate and timing to minimise impacts
on water course and to ensure minimal stream flow
maintained. Where this cannot be achieved, before drilling
construction, PGE to construct new water supply pipeline from
alternative source to ensure community water supply
unaffected.
Use pond to store water for drilling and recycle “muds” to
minimise need for “new” water.
Include additional locations in the Hutan Lindung to be
regularly monitored for water quality and flow. Monitoring
will commence one year prior to construction to
contribute to an improved baseline dataset and should
continue throughout the construction and operation of the
Project.
Apply closed system for drilling activity / use of
geothermal fluid (if applicable) or treated water from
ponds to minimise need for “new” water.
Adherence to framework Water Management Plan
14
Vegetation
clearance and
earth moving
including diversion
of water course
Damage to ecology
significance
Avoid temporary or permanent diversion of water courses or
natural flow paths where possible. If unavoidable, ensure that
diversion works are of adequate capacity and profile of new
channel matches the old channel.
Negligible
Vegetation
clearance; earth
moving
Erosion and
increased sediment
load reaching local
water courses
significance
Good construction practice, including bunding of working
areas.
Negligible
Temporary waste
water settling pond
overspill
Pollution of
watercourse by
“Muds”
significance
Potential reduction in
flow
Minimise vegetation clearance.
Re-vegetate as soon as possible on completion of works.
Size temporary facilities appropriately and have contingency.
Design adequate capacity of treatment ponds / water filters to
safely manage quantities of waste water arising.
significance
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Use of water based drilling muds as opposed to oil-based
drilling muds.
Recycling of drilling muds.
Design adequate capacity of treatment ponds/water filters to
safely manage quantities of waste water arising.
Storage ponds to have impermeable lining such as HDPE or
similar geomembrane of appropriate thickness bonded
together to ensure water-tightness
Ponds monitored and cleared of silt periodically to maintain
integrity of treatment and drainage system.
Spills from poor
storage of fuels
and chemicals
Chemicals or fuel
entering local water
course used for
domestic or irrigation
supply
Adverse impact of
moderate to major
significance
Development of relevant procedures to avoid and minimise risk
of spills, including:
significance
All chemicals and fuels are to be stored in designated sites
with impermeable surface and adequate bunding to prevent
accidental contamination. Storage areas to be located away
from surface waters.
Suitable spill kits to be provided within storage areas and near
any fuelling / loading areas.
Well Testing
Operation
Discharge of well
brines to surface
water
significance
Ensure settling ponds have adequate storage capacity.
Water abstraction
to supply water
needs of initial
charge of cooling
circuit at the power
plant
Less water available
for human and
ecological needs
Adverse impact of
moderate significance
Choose abstraction rate and timing to minimise impacts on
water course and to ensure minimal stream flow maintained.
Failure of brine /
condensate
pipeline
Discharge of brine to
surface water
significance
Failure of brine
reinjection system.
Discharge of well
brines to surface
significance
Negligible
Reinjection of water through reinjection wells.
Creation of bunded areas in low lying land around reinjection
clusters and provision of diversion channel around bunded
areas
Negligible
Record quantity of water abstracted and timing of abstractions
Water quality and flow monitoring to continue at
additional Hutan Lindung locations. Adherence to
framework Water Management Plan. Monitoring will
commence one year prior to construction to contribute to
an improved baseline dataset and should continue
throughout the construction and operation of the Project.
Creation of a brine management plan.
In the event of pipeline failure, brine will be diverted via a
storage pond of sufficient capacity.
significance
Employ best practice.
15
Minimise risk of brine / condensate discharge through
implementation of reinjection system and provision of
significance
Phase
Activity
Impact
water
Impact Significance
Mitigation Measures
adequate sized lined storage ponds / system shut down in
case of reinjection failure.
Develop brine management plan to minimise risk of brine
discharges.
In the event of emergency discharge of brine / condensate to
surface waters, treatment will be undertaken prior to discharge
of effluent to comply with Indonesian discharge geothermal
effluent standard.
Decommissioning
3.2.1.2
Spills from poor
storage of fuels
and chemicals
Chemicals or fuel
entering local
watercourse used for
supply
significance
Best practice as for construction.
significance
Infill of wells
As those seen in
Construction period
Adverse impact of
Application of same mitigation measures as for construction.
significance
Groundwater
Table 3.2:
Summary of significant groundwater impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Exploration,
drilling and
construction
Construction of
wells and potential
hydrofracturing
creating new
pathways between
the deep and
shallow aquifer
Introduction of highly
mineralised water
from deep aquifer
into the shallow
groundwater used for
supply
significance
Good well design with deep casing as used and applied
previously in this area.
Groundwater quality monitoring to confirm water quality not
affected.
If water levels are found to have been affected then provision
of alternative water supplies may be considered
Additional locations in the Hutan Lindung to be regularly
monitored. Monitoring will commence one year prior to
construction to contribute to an improved baseline
dataset and should continue throughout the construction
and operation of the Project.
significance
Exploration,
drilling and
construction
Spills from poor
storage of fuels
and chemicals
Chemicals or fuel
entering local wells
used for domestic or
irrigation supply
significance
Adherence to framework Water Management Plan
Development of best practice measures to avoid and minimise
risk of spills.
Designated sites for chemical and fuel storage to prevent
accidental contamination.
Suitable spill kits to be provided within storage areas and near
any fuelling / loading areas.
16
significance
Phase
Operation
Activity
Impact
Impact Significance
Mitigation Measures
Land levelling
Changes in
groundwater flow and
level due to the
levelling of land
below groundwater
table
Adverse impact of
Additional water level monitoring for the ESMP used to ensure
that water levels in local wells are not affected by the land
levelling and that sufficient water is available for use. If water
levels are found to have dropped in local wells then deepening
of the affected wells may be considered
significance
Vegetation
clearance and road
construction
increasing risk of
landslides
Decrease in local
groundwater quality
Adverse impact of
Best practice construction methods, such as ensuring slope
angles are keep to a minimum, stabilising slopes where
necessary and reseeding of land.
significance
Water abstraction
from shallow
groundwater to
supply water needs
of power plant
Reduced
groundwater levels
and potential drying
of local wells used for
domestic and
irrigation supply
Adverse impact of
Investigation into water levels and flow during construction
phase.
Investigate new source of water for plant if risk is found to be
high.
Negligible
Deepen wells affected by reduced water levels.
Provide alternative water supply to residents if affected by
reduced water levels.
Decommissioning
Spills from poor
storage of fuels
and chemicals
Chemicals or fuel
entering local
community wells
used for domestic or
irrigation supply
significance
Best practice for the storage of fuels and chemicals. Good
housekeeping to keep leaks to minimum.
significance
Infill of wells /
dismantling of
Power Plant
Detrimental change
in groundwater
quality in community
wells
Adverse impact of
Application of same mitigation measures as for construction.
significance
The incorrect disposal of scale, other operational waste and domestic waste has the potential to result in leaching of minera ls into shallow groundwater used for
domestic or irrigation supply; this impact has been assessed as low adverse significance. Disposal of any hazardous waste (as determined through toxicity
testing) by licensed third parties according to regulations and disposal of domestic waste through appropriate methods in line with Indonesian regulations would
reduce this to an impact which is not significant.
17
3.2.1.3
Noise
Table 3.3:
Summary of significant noise impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Exploration,
drilling and
construction
Increased site
noise during
construction stage
Temporary nuisance
to nearby residential
receptors
Adverse impact of critical
significance (Cluster B, E
and F receptors).
Restricting working hours.
Adverse impact of
with limited periods of
adverse major / critical
for Clusters B, E and F.
Negligible all other
cluster receptors
Use of well maintained plant.
Appropriate positioning of plant considering directionality.
Use of material stockpiles for screening.
Turning off plant when not in use.
Use of appropriate construction methods.
Use of sound reduction equipment (e.g. rock mufflers during
well testing).
Negligible for all other
cluster receptors
Advising villagers in advance of particularly noisy work.
Increased road
traffic noise during
construction stage
Temporary nuisance
to residential
receptors
Adverse impact of
Restricting working hours.
Appropriate speed limits (in accordance with PGE policy: SOP
B005/PGE765-3/2014-S0 (TKO Layanan Angkutan
Penumpang dan Barang)
significance
Adequately maintain vehicles and turn off engines when not in
use. Routine vehicle inspection to be carried out HSE.
Decommissioning
Increased site
noise
Temporary nuisance
to residential
receptors
significance (Cluster B, E
and F receptors).
Negligible all other
cluster receptors
As for construction.
significance for cluster
B, E and F receptors.
Adverse negligible for
all other cluster
receptors.
Impacts on the safety and well-being of workers will be reduced through the use of PPE, including ear protection during drilling. During the operation phase of
the project, increased site noise (due to operation of the plant) and road traffic noise are considered to have a negligible impact on residential receptors.
Nonetheless, mitigation measures including the use of low noise plant, adhering to appropriate speed limits on roads an d undertaking maintenance during the
day only have been suggested to further reduce the significance of these impacts. Increased road traffic noise during the dec ommissioning phase could have an
adverse impact; the same mitigation measures have been proposed as for the construction phase.
18
3.2.1.4
Ecology
Table 3.4:
Summary of significant ecology impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Exploration,
drilling and
construction
Construction
of access
roads and
clusters
Clearance of
secondary and
primary forest
caused by
displacement from
loss of agricultural
land
Adverse impact of
major significance
Minimise land-take, number of landholdings and families
affected through project design;
Adverse impact of
low significance
An ecologist to advise on final layout design of access
roads to identify micro-siting constraints;
Confirm that the Government will provide appropriate
alternative agricultural land for HKm users in non-forest
areas (e.g. modified habitat instead of natural habitat)
Any off-set or resettlement sites for current land uses
(legal or illegal) identified as part of the project that fall
outside the land envelope covered by the components of
this study will be subject to an independent environmental
assessment.
Provide opportunities for alternative means of
employment;
Cooperate with local authorities to report and enforce
unlawful forest clearance;
Local community engagement to be undertaken in villages
in Project area to raise awareness of Hutan Lindung and
species of conservation importance.
Replanting of habitats temporarily disturbed or cleared
during construction, including native trees at a ratio of 3:1
for any that are removed.
Creation of Biodiversity Management Plan
Exploration,
drilling and
construction
Construction
of access
roads near
primary forest
(construction
and operation
phases)
Hunting and
increased human
disturbance in
primary forest
Adverse impact of
Coordinate local community and worker awareness
programmes to promote understanding of conservation of
biodiversity;
Restrict use of site access roads to prohibit use for illegal
logging and hunting of protected species;
Cooperation with local authorities (routine site patrols and
sharing of site monitoring information) to increase
enforcement of legislation preventing unlawful logging
and hunting;
Adverse impact of
low significance
Engage with the MoF to identify appropriate measures to
support the Ministry in stewardship of the Hutan Lindung;
Creation of Biodiversity Management Plan.
Exploration,
19
Construction
Temporary
Adverse impact of
An ecologist will survey the site to determine habitual
Adverse impact of
Phase
drilling and
construction
Activity
of access
roads and
infrastructure;
routine site
operations.
Impact
displacement (i.e.
duration of the
source of
disturbance only) of
primates from
suitable habitat due
to increased
disturbance from
noise
Impact Significance
Mitigation Measures
locations of feeding and resting primates. This will be
used to determine biodiversity sensitive areas; night-work
will not be undertaken in Hutan Lindung or biodiversity
sensitive areas; vehicles and staff activity will not be
permitted in biodiversity sensitive areas without prior
authorisation.
low to moderate
significance
As none of the original Project components were located in the Hutan Lindung, the Original ESIA concluded that there would not be any significant impacts on
ecology. This included impacts from vegetation clearance, earthworks and well drilling / construction, the construction of weirs for water abstraction and the
introduction of staff to the area. The Supplemental ESIA includes several components which are located in the Hutan Lindung and impacts are therefore
assessed to be significant, as shown in the above table. However, the implementation of the mitigation measures is considered sufficient to address these
impacts to a level where the effects are not considered to be significant.
20
3.2.1.5
Air quality
Table 3.5:
Summary of significant air quality impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Exploration, drilling
and construction
Site clearing,
earthworks and
construction
activities
Dust nuisance
Negligible to adverse
impact of moderate
significance
Dust suppression and control measures, visual monitoring.
impact of low
significance
Well tests
Hydrogen sulphide
(H2S) and particulate
releases
impact of moderate
significance
No vertical well testing.
Well blowout
H2S and particulate
releases
impact of moderate
significance
Site H2S emergency response plan by drilling contractor.
impact of low
significance
Cooling tower
emissions
H2S releases
Negligible
Personal H2S monitors for workers, suitable on site
ventilation, information on H 2S, maintain levels below
occupational limit, on site H2S monitoring system,
confined space procedures.
Periodic monitoring of H 2S emissions.
Negligible
Operation
(reduced from critical
significance in the
Original ESIA to
negligible significance
in the Supplemental
ESIA)
PPE for minimising dust exposure from on-site receptors.
Use of rock mufflers to elevate emission source.
H2S contractor to implement H2S emergency response plan.
impact of low
significance
Ambient monitoring of H 2S concentrations at one
continuous analyser and five portable monitor sites.
Health data collection to continue.
Emergency response plan.
Note that the Original ESIA proposed 60% H 2S emission
abatement (based on conservative well test results for
NCG and H2S content). Based on the updated assessment
in the Supplemental ESIA this is no longer required,
however the Ulubelu Units 3&4 plant should be made
abatement-ready.
Impacts from on-site traffic and vehicle movements and off-site vehicles are not expected to result in significant effects. The primary difference between the
Original ESIA findings and the Supplemental ESIA findings (as noted in the table above) are that exceedences of the (World Health Organization WHO) H2S
guideline are no longer predicted as a result of the operation of the plant. However, given the uncertainties inherent in the assessment, it has been
recommended that the Units 3&4 plant is made abatement-ready so that abatement technology could be installed in the future if monitoring results indicate that
this is necessary.
21
3.2.1.6
Climate change
Table 3.6:
Summary of significant climate change impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Operation
Power
generation
Displacement of
Greenhouse Gases (that
would have been
produced in generating
this level of power)
Beneficial impact of
major significance
None required.
major significance
3.2.1.7
Waste management
Table 3.7:
Summary of significant waste management impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Exploration, Drilling
and Construction
Day to day
construction
activities
including
drilling mud
cuttings; Scrap
metals, waste
oils, plastics,
consumables,
office wastes
Contamination of
groundwater and
streams from waste
excavation
Adverse impact of low to
Implement Waste Management Plan (WMP) which identifies
measures for minimisation of waste and safe disposal of
construction wastes.
significance
Appropriate facilities/containers for segregation and temporary
storage of general wastes on site and establishment of regular
disposal to landfill or recycling where possible.
Use of water based drill muds and recycling of drill muds.
Storage of muds in lined ponds and of cuttings in dedicated
houses.
Regular removal of muds from the settling ponds for reinjection into total loss wells where available or storage and
subsequent treatment of the muds as relevant waste category
as determined by Indonesia regulation.
Disposal of hazardous waste by third party licensed by MoE.
Segregation of waste streams for reusing and recycling.
Identify reuse and recycle options of non hazardous waste with
local community.
Identification of appropriate site(s) for excavation material
disposal, away from sensitive surface / ground water features.
22
3.2.1.8
Geology and erosion
Table 3.8:
Summary of significant geology and erosion impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Exploration,
Drilling and
Construction
Soil
excavation for
well pads
MK2, MK3,
MK4, MK5 and
J
Increased erosion
Adverse impact of
major significance
(Increased from
moderate adverse in
the Original ESIA)
Site selection.
Adverse impact of
low significance
Soil
excavation for
well pads
MK2, MK3,
MK4, MK5 and
J
Decreased slope
stability
Adverse impact of
major significance
Site selection.
Soil
excavation for
well pads
MK2, MK3,
MK4, MK5 and
J
Increased surface
runoff
(Increased from
moderate adverse in
the Original ESIA)
Adverse impact of
major significance
(Increased from
moderate adverse in
the Original ESIA)
Cover of vulnerable soil with erosion resistant material
and re-vegetation.
Support walls with retaining walls or other appropriate
structures.
Adverse impact of
low significance
Additional ground elevations, subsidence and seismicity
monitoring
Site selection.
Make water channels to direct water and minimise bank
erosion.
Adverse impact of
low significance
Operation phase impacts on geology and erosion were assessed as not significant in both the Original ESIA and Supplemental ESIA.
3.2.1.9
Land contamination
Table 3.9:
Summary of significant land contamination impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
and construction
Settling ponds
for drilling
muds, event of
flooding spill
Change in soil chemistry
and consequent
restriction of use, risk to
humans
Adverse impact of
major significance
Well designed and maintained ponds, monitoring and trained
and responsible staff, spill response plan.
significance
Collection,
storage,
transport of
drilling muds
and cuttings
and consequent
restriction of use, other
indirect community and
environmental risks
Adverse impact of
major significance
Use of water based drill muds and recycling of drill muds.
significance
23
Storage of muds in lined ponds and of cuttings in dedicated
houses.
Regular removal of muds from the settling ponds for reinjection into total loss wells where available or storage and
subsequent treatment of the muds as relevant waste category
as determined by Indonesia regulation.
Operation
Storage,
transport and
use of
chemicals, fuel
and waste on
construction
site.
and consequent
environmental risks
Adverse impact of
major significance
Appropriate facilities / containers for segregation of waste and
temporary storage of chemicals / fuel on site.
significance
Handling of
waste, spill of
leachate
and consequent
humans
Adverse impact of
Management plan, well designed storage and well maintained,
labelling, monitoring and trained and responsible staff, spill
response plan
significance
Storage,
transport and
use of
chemical, fuels
and waste on
operational
sites
and consequent
environmental risks
Adverse impact of
major significance
Appropriate facilities/containers for segregation and permanent
storage of chemicals / fuel on site. Temporary storage
facilities available for maintenance periods.
significance
Handling of
waste, spill of
leachate
and consequent
humans
Adverse impact of
Training of Contractor employees by Contractor.
Internal training of PGE operational shift staff / maintenance
staff.
Suitable sized storage and well maintained, labelling,
monitoring and trained and responsible staff, develop spill
response plans.
significance
The spill of brine and condensates during the operation phase could result in changes in soil chemistry and a risk to human h ealth. The same impact could result
from demolition work and the production of hazardous waste in the decommissioning phase. Both of these impacts have been assessed as adverse low
significance both before and after the application of mitigation. Mitigation measures proposed for the operation phase includ e the implementation of a brine reinjection system, provision of adequately sized storage ponds and the development of and adherence to a Brine Management Plan. Mitigation proposed for the
decommissioning phase is similar to the construction phase and includes appropriate disposal of hazardo us wastes.
24
3.2.1.10 Traffic management
Table 3.10: Summary of significant traffic impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation Measures
Construction
Traffic
associated with
steam field /
power plant
development
Increased risks
associated with road
safety
Adverse impact of
Development and implementation by EPC contractor of Traffic
Management Plan (TMP)
Provision of educational sessions for children in all schools
along the road to the Project sites from Karang Rejo village.
significance
Traffic
associated with
steam field /
power plant
development
Physical effects (wear
and tear) of construction
traffic (including
abnormal loads) on local
road infrastructure.
Adverse impact of
Traffic Management Plan
low significance
Traffic
associated
with
development
of proposed
new steam
field
components
Increased duration of
works, additional
number of fleet and
personnel movements
and further
infrastructure wear and
tear
Adverse impact of
moderate
significance
Adherence to the Traffic Management Plan
Any road damage specifically associated with the
construction and mobilisation activity of the geothermal
system shall be addressed and repaired by PGE.
Construction
Potential improvement as part of CSR programme.
low significance
Adverse low impacts are predicted to occur due to the increase in traffic associated with the steam field / power plant development resulting in delays on the
local traffic network. A Traffic Management Plan and assessment of road capacity and a review of route selection if required have been proposed as mitigation,
although residual impacts are predicted to remain as adverse low significance. Negligible impacts are predicted to occur due to the increase in traffic associated
with staff movements and maintenance.
3.2.1.11 Archaeology and cultural heritage
Excavation works during the construction phase are not expected to have a significant impact on the disturbance of on-site archaeology or cultural heritage.
PGE will require contractors to establish a Chance Find Procedure.
25
3.2.2
Social impacts
Table 3.11: Summary of significant social impacts and mitigation measures
Phase
Activity
Impact
Impact Significance
Mitigation / benefit enhancement Measures
and construction
Employment
Generation
Generation of
approximately 1,080
temporary low-skilled
jobs phased throughout
the whole of construction
period.
Disclosure of a published recruitment policy, including
prioritisation of local employment.
Generation of
approximately 380
mainly long-term
medium-highly skilled
jobs.
Risk to community
health, safety and wellbeing from site activities
and workers
Adverse impact of
Operation
and construction
Employment
Generation
Activities within
site and worker
camp
boundaries
Use of village employment committees.
Local employment to be prioritised, contractor to provide
additional specialised training to local workforce in skills
required by contractor.
Disclosure of a published recruitment policy, including
prioritisation of local employment. Use of village employment
committees.
Local employment to be prioritised, PGE to provide vocational
training schemes to local workforce employed for a minimum
of one year via supply companies in skills required by power
plant operation.
Mitigation of environmental impacts such as noise, dust and
excavation waste.
Restricting access to sites through appropriate fencing /
signage around site perimeter.
Reducing malarial incidence through maintenance of good
construction site drainage, minimising standing water within
Project areas, managing storage / settlement ponds to control
mosquitoes.
Site security personnel (appropriately vetted and trained.
Site registry/identification system.
Develop and disclose emergency preparedness and response
plans.
Develop and disclose community grievance mechanisms.
Well production
testing
26
Risks to community
members’ safety and
damage to crops from
debris, health risks due
to H2S exposure
Avoid vertical testing in favour of horizontal testing.
Use of rock muffler to mitigate noise emissions during
horizontal well testing.
significance
Phase
Activity
Impact
Heavy load and
other vehicles
driving through
communities
Road safety risks and
damage to road
infrastructure and
drainage systems
Impact Significance
Mitigation / benefit enhancement Measures
Road safety plans / maximum speed limits for site and access
routes and traffic safety sessions for children.
Contractor programme to monitor and enforce safety plans,
accident reporting and statistics, establish penalties for
violations.
Maintenance of site and access roads under PGE’s
responsibility to reduce erosion/degradation of drainage
channels.
Water
extraction and
settling ponds
Pollution of / shortages in
community water
Activities
within site
boundaries
and steam
transmission
piping
Risk to community
health and safety from
contact with hot
water/steam
Adverse impact of
moderate
significance
Activities within
site boundaries
and steam
transmission
piping
Risk to community health
and safety including
health impacts as a
result of H2S exposure
Adverse impact of
Continuation of relevant activities above.
Exploration,
drilling and
construction
Land
Acquisition Rent Use of
land in Hutan
Lindung /
HKm
Payment of cash
compensation for
acquired assets and
crops
Adverse impact of
moderate
significance
Updates to LARPF to protect users of the Hutan
Kemasyarakatan (HKm), tenants and informal land users
low significance
Starting
immediately
continuing through
all phases
Community
investment
Community development
low to moderate
significance
Development of participatory community investment planning.
Feasibility study into rural electrification.
Starting
immediately
continuing
through all
phases
Community
investment
Community
development
low to moderate
significance
Villagers, village leaders, local schools and sub-district
level local government to be consulted to identify
community needs to help prioritise the CSR budget.
moderate
significance
Operation
Operation
27
Audits of water infrastructure, maintenance and activities and
monitoring of ground and surface waters.
Raising community awareness on health and safety
issues related to steam pipelines – information campaigns
for residents living close to steam pipes.
Isolation around steam traps to prevent access by
community members by closing steam trap and redesign
scrubbing line system so there is no brine comes out to
the environment
Development of an emergency preparedness and response
plan to be enacted in the event of abnormal operation.
Ongoing monitoring of ambient H2S concentrations and health
of nearby communities.
Implementation of CSR to be recorded in an activity log,
supported by photographs, to assist in future monitoring
by project lenders.
Adverse impact of
low significance
Adverse impact of
low significance
significance
In addition to the significant impacts detailed above, the following non-significant impacts were also identified:
 Beneficial impacts were identified for land acquisition from the payment of cash compensation for acquired land, assets and cr ops;
 Adverse impacts were identified for the well-being of workers on site and in camps; however these could be reduced to negligible impacts through the
implementation of mitigation measures such as the distribution of health awareness brochures, the installation of safety ladd ers to settling ponds and the
development of labour management and staff grievance policies.
28
3.3
Cumulative impacts
Cumulative impacts are those that may result from the combined effects of several activities. In addition to
the cumulative impacts from developing several well pads, the main source of cumulative impacts is the
development of the PLN Units 1&2 Plant. This has been taken into account in the assessment and
residual impacts above include the combined effect of PLN Units 1&2 and PGE Units 3&4.
Cumulative impacts due to power plant construction are expected to be low given the distance and
different schedules of Units 1&2 and Units 3&4.
Cumulative impacts during the operation of Units 1&2 and Units 3&4 are also predicted to be low. A key
difference between the Original ESIA findings and the Supplemental ESIA findings is the significance of
Hydrogen Sulphide (H2S) emission impacts (both separately and cumulatively) from Units 3&4 and Units
1&2. The Original ESIA found that the close proximity of the two plants meant that, at some residential
locations, the cumulative effect of their emissions was predicted to result in concentrations of H2S that are
very close to, or above, guidelines for the protection of human health. Abatement measures were originally
proposed for both Units 1&2 and Units 3&4 to reduce emissions of H2S.
However, the recent dispersion modelling undertaken for the Supplemental ESIA, which is based on the
latest and most accurate estimates of steam composition, predicts that the air quality impacts from Units
3&4 (both in isolation and in combination with Units 1&2 emissions) will not give rise to significant effects.
Therefore, no abatement technology is required. However the uncertainties involved in the assessment
process (including estimates of steam composition, operational emissions from Units 1&2 and the air
dispersion model used) are recognised and therefore it is recommended that the Ulubelu Units 3&4 power
plant is made ‘abatement ready’. This means that abatement technology can more easily be installed in the
future, if additional monitoring or modelling indicates that this is necessary to comply with the applicable
standards.
29
3.4
PGE’s management of environmental and social impacts
PGE has developed an Environmental and Social Management Plan (ESMP) that draws upon the
management and mitigation measures which have been defined within the Original and Supplemental
ESIAs. The ESMP is presented as Volume III of the Supplemental ESIA documentation. The primary
objective of an ESMP is to safeguard the environment, site staff and the local population from site activity
that may cause harm or nuisance. The management plan, which also covers monitoring, is the basis of
the environmental and social protection measures to be implemented by PGE and its contractors.
In addition to the ESMP, a number of complementary framework plans, policies and procedures have been
developed including the following:
 Air quality (H2S) monitoring programme;
 Health data collection programme;
 H2S emergency response plan;
 Recruitment plan;
 Retrenchment plan;
 Labour grievance mechanism framework;
 Biodiversity management plan;
 Waste management plan;
 Water management plan;
 Traffic management plan;
 Temporary worker accommodation management plan; and
 Chance finds procedure.
Responsibilities for implementation are outlined in the ESMP (Volume III) and fall to either PGE or the
contractors undertaking the work. The implementation of the ESMP provides the framework to manage
environmental and social impacts (including World Bank operational policies and guidelines) and best
practice.
30
4
Summary
The development of geothermal resources in Indonesia is important in meeting growing demand for
energy. Geothermal power generation at Ulubelu will contribute to providing electricity in Sumatra and in
particular Lampung Province. The environmental and social impacts of development of the geothermal
field, including the construction of Units 3&4 power plant, steam field and access roads have been
assessed. The majority of the infrastructure was assessed and reported in 2011 in the Original ESIA and
additional infrastructure (mainly the development of additional well pads) assessed and reported in 2014 in
the Supplemental ESIA.
The findings of the ESIA identified several issues that were likely to result in significant effects on the
environment or people. These issues are:
 The potential for noise disturbance affecting residents near Clusters B, E and F during the construction
phase
 The noise from construction activities could affect nearby habitat which is used by primates and could
therefore result in the temporary displacement of primates
 The generation of power by means of geothermal resources would have a beneficial effect in terms of
greenhouse gas emissions compared to generation of power from non-renewable sources
 Employment generation during the construction (around 1,000 jobs) and operation (around 400 jobs) is
considered to have a beneficial effect
 Commitments by PGE to work with local people to identify priorities for investment in community
development and to undertake work on the feasibility of providing electricity to local rural areas are
considered to be beneficial impacts.
A number of potential impacts have been avoided or reduced through the adoption of a range of mitigation
measures. These are identified in the impact assessment and often take the form of management plans for
specific issues. For example, management plans will control activities relating to water, waste, biodiversity
and traffic, each containing specific objectives and actions to protect and manage the environment.
Monitoring will be adopted as part of construction and operational environmental management in order to
ensure that impacts will be maintained at or below the predicted level of impact. Information gathered from
water quality monitoring will be used to refine the mitigation measures proposed. Ecological surveys, in
particular pre-clearance surveys at proposed sites in the Hutan Lindung will be used to inform the
construction schedule and influence site selection. Similarly, ground subsidence and seismicity monitoring
results will be used in the site selection process for certain cluster locations. Air quality monitoring in the
Ulubelu project area will continue, using a combination of fixed and portable H 2S monitors. The health data
collection programme and emergency response plan help to provide confidence that actual events are inline with predictions, for the protection of the local community.
Management plans and monitoring systems are public commitments by PGE to protect the environment
and local people and these responsibilities are also applicable to contractors appointed by PGE.
31

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