The sponsors have presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.
- Environmental and Social Management:
CEPM acts as a holding company for the sponsors'' other electricity investments (currently only CEB in Bayahibe) in the eastern part of the Dominican Republic. Being a small utility, CEPM''s technical staff provide the environmental, health and safety functions as part of their other duties, and some sharing of functions occurs between CEPM and CEB. Both CEPM and CEB were constructed as greenfield generation and distribution projects by the sponsors in about 1992 and 1999, respectively. Thus the company''s facilities are relatively new and well known and understood by its personnel. Qualified Dominican environmental consultants are used to assess new projects and monitor performance of existing facilities. IFC''s appraisal found that CEPM has the technical and management capacity to undertake the expansion program.
- Existing Facilities:
CEPM''s generating facilities, offices, shops and warehouse are located at the edge of the town of Bávaro. The ten principal diesel-generating units were installed between 1994 and 2000; four other older units are now used for standby. CEPM has two other substations (at Caribe and Riu). Discussions with plant staff and a walk-around during appraisal indicate a plant that (with the exception of minor housekeeping issues) operates in accordance with good industry practice. Minor damage from Hurricane Jeanne was observed at CEPM''s Bávaro location; there were no releases into the environment.
A Santo Domingo-based consultant conducted an assessment of the company''s performance in February 2003 for the purpose of obtaining an the environmental license for the existing facilities from the Secretaría de Estado de Medio Ambiente y Recursos Naturales (SEMARN). This is a retroactive Environmental Impact Assessment (EIA), similar to an audit, as required by Law 64-00. No significant out-of-compliance items were found. CEPM submits noise and air emissions data to SEMARN twice annually, and data provided to IFC indicates substantial compliance with Dominican requirements and World Bank Group guidelines.
CEB''s generating facilities with six engines and its substation are located in Bayahibe. The facilities are newer, well maintained, and noticeably quiet. An EIA for CEB was prepared in February 2001, and, similar to CEPM, no significant out-of-compliance items were found.
- Wind Project:
CEPM plans to construct and operate up to an 8.25MW greenfield wind power plant at Cabo Engaño, consisting of up to five 1.65 MW wind turbines along 2 km of coastline. The generators will be connected by buried electrical cables to an onsite substation, and then by an 8 km overhead transmission line to CEPM''s Caribe substation.
A Declaración de Impacto Ambiental (DIA) was completed in May 2003 for the wind project. A DIA (rather than an EIA) is required by the Dominican environmental process for projects that are not expected to result in significant impacts (i.e., Category B project at IFC). The DIA was prepared for an ultimate project size of 20 MW at the proposed location (closer spacing of turbines). SEMARN held a public hearing in March 2003 as part of the public consultation program, and issued the environmental license on September 25, 2003. Following are some of the issues as identified in the DIA and the site visit.
- Land use:
The turbines will be constructed at the onshore edge of a 60m-wide publicly-owned marine zone along the coast, and all cables will be buried in this zone. Land further onshore is privately held in large tracts; CEPM has purchased land for the substation and is obtaining a right-of-way for the transmission line. CEPM does not expect that this onshore land will be developed for resorts. None of the area that will be occupied by the turbines or substation is inhabited. According to the DIA there are six households on the inland tracts, occupied by caretakers. The sea edge at the site is rocky and not much used by beachgoers. Typical activities are horseback riding and four-wheeling, which will not be affected during operation of the project.
- Noise:
Aerodynamic noise from the turbine blades is substantial, and residences would need to be at least 200m distant from turbine bases for nighttime noise levels to be below the World Bank Guidelines (WBG) guideline of 45 dBA (the Dominican guideline is 50 dBA). Because the towers are located at the edge of the marine zone, potential noise impacts extend about 200m onto the private tracts. The DIA indicates that at least one of the caretaker families could be exposed to slightly elevated noise levels. Turbine noise is not expected to affect tourists'' activities.
- Visual impact:
Reaction by the public to the visual presence of the turbines is likely to be mixed. Local residents live inland, and will generally be unable to see the turbines (although warning beacons will be visible at night), and will not be opposed to the impact. Tourists will generally be intrigued by the turbines, and will view the accessibility of the site positively. There are two large houses at Canal de la Mona (the inlet in the gap between the three northern and two southern turbines), which CEPM reports were constructed by a local property owner but are currently unoccupied. Should they become occupied, visual impacts may be an issue.
- Bird impacts:
An onsite bird inventory as well as a detailed literature search were conducted to identify potential impacts on migratory birds. The onsite studies identified a high diversity of birds, including 44 migratory species that use the Atlantic Coastal Route over Hispaniola. There is one Threatened species, according to IUCN classification. The studies did not disclose breeding areas for migratory birds or other factors that could affect construction timing. The DIA concluded that bird collisions present a moderate potential for occurrence at the site, and recommends mitigation measures to reduce the attractiveness of the site for migrating birds and a monitoring program to be implemented during project operation.
Greenhouse gas emissions reduction: Operation of the wind farm will avoid the consumption of heavy fuel oil for diesel generation. This is expected to result in the avoidance of about 17,000 tons of CO2 per year, or about 340,000 tons of CO2 over the life of the project.
- Capacity Additions:
CEPM plans to increase its diesel generating capacity at its Bávaro location by up to 10 MW. The new engine(s) and a 2,000 m3 HFO storage tank will be installed in a fenced area on the north side of the existing plant that is currently being used for storage. Ample land is available for construction and the final plant. CEPM will also expand its distribution capacity by constructing a new substation at Macao and a short section of 69 KV line. There will also be a capacity expansion of up to 1.5 MW at CEB in order to provide an HFO fueled engine sized to meet CEB''s peak load. The expansion will be located within CEB''s existing property, and will include reconfiguration of some equipment, such as tanks.
Impacts from the capacity additions are not expected to be significant. The EIAs performed previously for the two sites indicate good air dispersion and adequate headroom for capacity additions. CEPM indicates that Dominican requirements for emissions from the new engines are the same as U.S. standards. Noise impacts can be minimized through acoustic enclosures. There will be a minor increase in truck traffic due to fuel deliveries.
- System Acquisitions:
Another provider has since 2002 supplied electricity, heat, and cooling water to six hotels in CEPM''s service area. CEPM plans to acquire these contracts, and the existing diesel engine based co-generation systems will be reconfigured to be integrated with CEPM''s system. Smaller, less efficient units will be shut down (presumably in place, as backup). A 12 km medium voltage transmission line will be constructed to connect the three hotels that are not currently linked to CEPM''s system.
Because the purchase is pending, no site visits to the facilities were conducted. CEPM indicates that information on emissions from the engines is not yet available. Given the recent construction of the facilities, their environmental performance is expected to be in material compliance with WBG guidelines. Based on observations of CEPM''s other transmission lines, installation of a new 12 km line is not expected to have significant impacts.
- Future Acquisitions/Expansions:
CEPM plans to, over time, acquire or construct other generation and distribution assets to serve other parts of the Dominican Republic. IFC will include covenants in the Loan Agreement regarding necessary environmental and social due diligence for such investments.
