Policy
The sponsor has in place a publicly disclosed Sustainability Policy which describes the company’s global commitment to international standards in the areas of business conduct; health, safety and environment; labor management; and corporate citizenship (
http://www.sembcorp.com/en/esg-sustainability.aspx). This group level policy is applicable to this project. Additionally, the sponsor has a publicly disclosed Group Health, Safety, and Environment (HSE) Policy with the stated objective of managing health, safety and environment responsibilities as a first priority and in adherence to the principle of continuous improvement. The HSE Policy expresses the sponsor’s specific commitment to responsibility and accountability of employees and contractors; training on awareness of safety risks and health hazards; policy disclosure; environmentally sound design, construction, operation and maintenance; compliance with HSE laws and regulations and other HSE requirements applicable to Sembcorp's activities, products and services; influence of suppliers, contractors and other interested parties to improve their HSE performance; periodic system audits and management reviews to evaluate performance; and emergency preparedness (
http://www.sembcorp.com/en/esg-health-safety-and-environment.aspx).
Identification of Risks and Impacts
The sponsor commissioned the preparation of an Environmental and Social Impact Assessment (ESIA) which was completed on September 15, 2015 and Revision 2 completed on August 2016. The ESIA included a comprehensive analysis of baseline environmental and social aspects including, for example: Background ambient air quality; background noise; surface water quality and quantity at the proposed cooling water intake point in the Ayeyarwady River; soils quality and condition at the project site; groundwater quality and at the project site; existing landscape and visual condition; existing waste practices and infrastructure in the Myingyan region; and terrestrial and aquatic biodiversity based on field surveys. The socio-economic baseline studies included a review of the conditions in the communities that may be impacted or influenced by the project due to their proximity to the project site and/ or project associated facilities including: Sa Khar village, Hnan Ywa village, Hpet Taw village, Nyaung Kan village, Gyoke Pin village, Thien Ywa, and Tha Pyay Thar village. Survey work included interviews with village leaders, focus groups with key sectors within each of the villages, and household surveys (total of 301 household surveys out of a total 2,557 households) to evaluate such aspects as: demography (including ethnic origin); community health statistics and indicators; economic activities and sources of livelihood; community infrastructure and public services; and cultural heritage.
The ESIA comprehensively identified key environmental and social impacts, and the corresponding mitigation measures, associated with the project’s construction including, for e
xample: air quality impacts during site clearance, site formation and levelling, as well as construction of substructure and superstructure of the power plant facilities; surface water quality from domestic wastewater discharge, inappropriate waste storage and disposal, contaminated surface water runoff, and sedimentation; noise during site preparation, pile driving and foundation works, as well as increased traffic in access roads; incremental change in the landscape and visual character of the area; soil and groundwater from potential leaks and spills of oil, lubricants, or fuel from heavy equipment; construction waste management; and community health and safety impacts due to increased traffic and influx of construction workers.
Mitigation and management measures corresponding to each of the identified impacts will be incorporated into the project’s design and construction phase environmental and social management plans, as well as in the EPC contractor’s contracts.
The ESIA comprehensively identified key environmental and social (E&S) impacts likely to be generated during the project’s operation including, for example: impacts to air quality due to stack emissions from the combustion of natural gas during combined cycle and simple cycle operation (mainly NOx emissions); surface water quality due from domestic wastewater discharge; noise associated with the operation of the power plant; landscape and visual due to the addition of an industrial component into the Industrial Complex area; generation of various types of non-hazardous and hazardous wastes from plant O&M activities; and community health and safety mainly associated with the unlikely event of a natural gas leak. Some of the social impacts (positive and negative) predicted due to the operations of the project are employment generation and in-migration of skilled workforce; demand for lodging, housing and civic services, resulting in increase in the cost of living; and risks of industrial accidents among others.
Mitigation and management measures corresponding to each impact have been proposed as part of environmental and social management plans to be developed prior to the operational phase.
The ESIA included an analysis of project alternatives for the following aspects: alternatives of the project location; alternatives of configuration on site; alternatives of technological options; and alternatives of temporary landing for heavy cargo. The analysis consisted mainly of a retrospective review of MOEP’s decisions with regards to main design criteria, plant technology, configuration and project type, prior to the issuance of a competitive concession bidding process. A key reason for MOEP’s site selection is its location adjacent to the steel mill, which is already in operation, and therefore the proposed project is in keeping with the existing industrial use. There are additional advantages in relation to land availability, gas supply pipeline and connection to the
national grid. The availability of cooling water is also an important factor, with the selected site being the closest of the siting options to the Ayeyarwady River.
The ESIA included an evaluation of cumulative impacts which considered existing activities, on-going expansions, and other planned developments within the immediate project area, including: existing No (4) Steel Plant Myingyan which produces billets and slabs from recycled material such as scrapped metals and cars; Aggreko temporary gas fired power plant on the north of the project site boundary; the MOGE gas receiving station on the east of the project site; and an expansion of the No (4) Steel Plant Myingyan, which based upon existing information is presently under construction. Valued Environmental Components (VECs) were identified based on the environmental, social and economic components assessed during the ESIA including topics raised during the ESIA consultation process and issues raised by stakeholders. VECs included: air quality; noise; surface water; soils and groundwater; and socio-economic impacts, divided into economic development (being those classified as positive impacts), physical and economic displacement, and influx. The sponsor is planning to implement a range of measures to comprehensively address its own environmental and social impacts. Additionally, and in order to manage cumulative impacts, the sponsor will endeavor to collaborate with the adjoining steel mill, and the Government of Myanmar (GOM) on a commercially reasonable effort basis in order to address cumulative impacts during the construction and operational phases.
Management Program
The ESIA provides a detailed summary of mitigation measures applicable to the construction and operation phases of the project. Some of the mitigation measures suggested during the construction phase of the project are associated with good construction and housekeeping practices while some mitigation measures for the operation phase of the project (such as those for air emissions and noise generation) are already incorporated into the project design specifications. The sponsor is also planning to include health, safety, and environment (HSE) requirements in the EPC contract specifications during the construction phase. A review of the draft EPC HSE requirements indicates that these are focused on the management of occupational health and safety risks and cover such aspects as: identification of safety risks; safety training; safety rules and regulations; incident investigations; selection of sub-contractors; and emergency procedures, among others.
Going forward, as described in the ESAP, the sponsor will further ensure that the mitigation measures in the ESMP are implemented during the construction and operational phases through the development and implementation of the following detailed set of Environmental, Social, Health, and Safety (ESHS) management plans and associated procedures:
Dust Management Plan;
Traffic Management Plan;
Noise and Vibration Management Plan;
Surface Water Management Plan;
Soil and Groundwater Management Plan;
Waste Management Plan (Hazardous and non-Hazardous Waste);
Oil and Chemical Spill Contingency Management Plan;
Emergency Response Plan (including Community Emergency Response Plan);
Stakeholder Engagement Plan (including Grievance Management Plan);
Community Development Plan (CDP);
Community Health Management Plan;
Workers’ Accommodation Management Plan;
Local Recruitment and Procurement Plan;
Influx Management Plan;
Cultural Heritage Chance Find Procedure;
Security Plan; and
Contractor Management Plan.
Going forward, as described in the ESAP, the sponsor will complement the EPC HSE construction requirements to include the aforementioned aspects. The sponsor will further review and approve the EPC HSE management plans and procedures to ensure compliance with sponsor and IFC PS requirements as per ESAP.
Going forward, as described in the ESAP, the sponsor will further develop and implement a full set of Operational Phase ESHS Management Programs that are consistent with the local legal requirement and the Lender’s ESHS standards including IFC PS requirements.
Organizational Capacity and Competency
The sponsor has a Group Governance Policy, part of the Group HSE Management System, which defines and assigns roles and responsibilities for HSE performance at the corporate and project levels. The project will be managed as an independent business unit from the sponsor, supported as needed by the sponsor’s corporate organization based in Singapore. The EPC contract currently stipulates that the EPC contractor will nominate and appoint, subject to the sponsor’s review and approval, a qualified HSE team for the construction phase consisting of a Construction Manager and HSE Officer supported by one HSE supervisor for every 50 workers. While the contractor or a particular party is responsible for physical implementation of the mitigating measures, the whole implementation process requires supervision, checking, documentation and verification so that problems are identified and properly addressed timely.
Going forward, as described in the ESAP, the sponsor will ensure proper execution of the ESMP by assigning dedicated technically qualified construction phase ESHS management team comprised of a Head and supported by environmental, OHS, and social (community affairs) coordinators either directly hired by the sponsor or through the construction oversight function of the owner’s engineer. Prior to the start of the operational phase, the sponsor will define an ESHS organizational structure comprised of a Head of ESHS with supporting OHS and community affairs coordinators who will be fully responsible for implementation of the ESMP.
Emergency Preparedness and Response
Consistent with one of the objectives of the sponsor’s Group HSE Policy, the sponsor plans to develop and imp
lement construction and operational phase emergency preparedness and response (EPR) plans. For the construction phase, the EPC contract terms stipulate that the EPC contractor in consultation with the sponsor shall develop and implement a site Emergency Response Plan covering such aspects as fire; explosions; releases of toxic substances; collapse due to structural failure of civil works or heavy machinery/equipment; or other emergencies. The EPC contract includes requirements for regular emergency drills to test the effectiveness and robustness of the EPR Plan.
Going forward, as described in the ESAP, the scope of the EPR mentioned in the EPC contract will be expanded to include preparedness and response for all emergency scenarios including but not limited to emergencies arising from occupational accidents or accidents involving members of the public or health related emergencies (including emergency treatment and emergency evacuation to treatment centres), emergencies related to natural hazards such as floods.
Additionally, as described in the ESAP, the sponsor will develop an operational phase EPR Plan prior to commencing of testing and operational activities based on the outcome of the detailed quantitative risk assessment of the project after finalisation of project design. The operational Phase EPR Plan will define protocols to be followed in the event of emergencies or disasters in order to limit the impact on the employees and the local community. The plan will address both on-site and off-site emergency situations due to the operation of the project. The plan will disclose potential disasters and potential risks from the plant to the local community as well as the plan of action on emergency protocol in the event of any such eventuality. This will also include awareness programs for the Plant personnel, local community and local administration.
Monitoring and Review
The sponsor’s HSE Management System has Group HSE Monitoring and Reporting Requirements applicable to all of its subsidiary operations. The objective of these procedures is to provide reporting principles to report internally to the sponsor’s corporate management and then externally, as applicable, in aggregate through a format following the Global Reporting Initiative (GRI). The HSE reporting requirements include detailed instructions applicable to occupational health and safety (OHS) activities for both employees and contractors including work related accidents Environmental compliance performance monitoring requirements cover electricity generation, wastewater treatment, water consumption, waste treatment, GHG emissions as applicable. Reporting frequency includes monthly performance reports covering the following: monthly man-hours worked for employees and contractors; number of near miss and dangerous occurrence incidents reported; number of recordable work incidents (fatality case, medical treatment cases, occupational diseases cases, lost workday
cases – including number of days lost and date of last workday case, restricted work cases); number of accidental discharges of substances from a storage or process into the environment that directly affects human health, land, vegetation, water bodies and ground water; number of material property damage lost; incidents; number of incidents of non-compliance with regulations and voluntary codes concerning the HSE, including any notification and cases pending investigation from the authority: incidents of non-compliance with regulations resulting in a fine or penalty; incidents of non-compliance with regulations resulting in warning; and incidents of non-compliance with voluntary codes. The above information is compiled into semi-annual and annual reports that are presented to the sponsor’s corporate line management.
The ESMP prepared as part of the project ESIA includes a detailed list of E&S indicators that will guide the preparation of detailed E&S monitoring program applicable to construction and operation activities. The ESIA includes a summary of the physical, biological and social environmental management components of particular significance including the tentative parameters to be measured, methods to be utilised, sampling locations, frequency of measurements, detection limits, cost and responsibilities for implementation and supervision.
Going forward, as described in the ESAP, the sponsor will develop and implement a detailed, project specific monitoring and reporting program with monitoring measures applicable to each of the relevant management plans. Monitoring and reporting activities will be reviewed by an independent E&S consultant on a semi-annual basis during the construction phase and annually thereafter for the first year of operation. A summary monitoring report will be disclosed to local communities semi-annually during construction and annually during the first year of operational phase containing the methods and results of environmental and social monitoring covering the indicators of potential relevance to local communities (i.e. dust, air emissions, noise, social impacts due to worker influx, etc). The public disclosure summaries will be prepared in Burmese and English.