Environmental & Social Review Summary
Project Number
4904
Company Name
JAMAICA ENERGY PARTNERS LIMITED
Date ESRS Disclosed
Feb 5, 2010
Country
Jamaica
Region
Latin America and the Caribbean
Last Updated Date
Jun 3, 2021
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 13, 1995
Signed : Dec 13, 1996
Invested : Dec 27, 1996
Sector
Heavy Fuel Oil - Thermal Power Generation
Industry
other
Department
Gbl Infrastructure & Natural Resources
Project Description
- 3 - April 19, 1995
International Finance Corporation
A Member of the World Bank Group
1. Jamaica Energy Partners (JEP) proposes to build, own and operate a 74 MW barge mounted power plant at Old Harbour Bay, 40 km west of Kingston, Jamaica. The power source will be eight, 12 cylinder, 500 rpm (medium speed) Wartsila diesel engines operating on Number 6 residual oil. Power will be sold for a 20-year term to Jamaica Public Service Company Ltd. (JPS), the Jamaican national electric utility.
2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of information submitted by the project sponsor, a site visit by IFC’s Technical and Environment Department and discussions with IBRD and the Government of Jamaica’s (GOJ) Natural Resources Conservation Authority (NRCA). The following potential environmental, health and safety impacts of this project were analyzed:
· site selection;
· barge safety;
· existing environmental situation at the proposed site;
· air quality impacts;
· marine habitat impacts; and
· oil spills.
Information on how these potential impacts will be addressed is summarized in the paragraphs that follow.
3. The JPS power system is in a very precarious situation from a supply view point due partly to the fact that no major base load capacity has been installed for some years. This situation was intensified in June 1994 when JPS lost 123 MW of capacity due to a boiler explosion at Old Harbour Bay. As a result, power shortages and load shedding are common. To address this base load capacity shortfall, JPS has a program to build four diesel projects with a total installed capacity of approximately 230 MW. As part of that program, the JEP barge project is aimed at providing a “fast track” 74 MW input to the JPS power system. Potential sites for the JEP project had to have an existing substation and transmission line. This requirement dictated a site adjacent to existing power plants along the coast. Old Harbour Bay was selected as the preferred site because in addition to an existing substation and transmission line, the site provided protection from hurricanes. The barge will be located so the existing line of coral reefs to the south of the site will act as a natural breakwater berm, and will significantly reduce the potentially destructive power of hurricane wave forces that might impact the barge. In this way, the barge has been sited so as to be more resilient to hurricanes than conventional land-based installations.
4. The barge serving as the vessel carrying the power plant will be of all-welded steel double hull design with the hold providing oil storage for about 65,000 bbls of fuel oil. The barge will be designed to withstand ocean waves of 2.0 meters as might occur during hurricanes.
5. The existing four unit 216.5 MW JPS plant at Old Harbour Bay has impacted the local environment. Because it burns up to three percent sulfur fuel (on average the sulfur content is 2.8 percent) and there are no emission controls, SO2 ambient air quality is deteriorated and is not in compliance with NRCA regulations or World Bank guidelines. Thermal discharges are negatively impacting sea grasses in Old Harbour Bay downcurrent of the JPS thermal discharge channel. These impacts subsided somewhat when the June 1994 explosion at JPS’s Old Harbour Bay facility resulted in the loss of 123 MW’s of installed capacity. IBRD, by a generation recovery and improvement project, is assisting JPS in restoring Unit No. 4.
6. The JEP project will burn 2.2 percent sulfur residual oil. At IFC’s request, JEP has committed to installing a modified low NOx Wartsila diesel engine (12 Vasa 46) which reduces the formation of NOx by twenty to thirty percent compared to the originally proposed standard Wartsila Vasa 46 engine. As a result, as a stand alone project, the JEP project would be in compliance with NRCA ambient air regulations and World Bank emission and ambient air quality guidelines. However, given the already elevated SO2 ambient air levels due to the existing JPS plant, and the fact that World Bank ambient air quality guidelines include existing background levels, the JEP plant cannot comply with the World Bank’s SO2 ambient air guidelines.
7. IFC and IBRD looked at a number of options available to JPS to bring the combined JEP/JPS projects’ SO2 ambient air quality into compliance with NRCA requirements and World Bank guidelines. These ranged from burning lower sulfur residual oil, raising stack heights, installing flue gas desulfurization, decommissioning one or two of the four units, (Units No. 1 and 2 are scheduled for retirement in 1998 and 1999 respectively), etc. These and other options are currently being assessed by JPS and in October 1995, JPS will submit to IBRD, its plan for bringing the JPS plant into compliance with the World Bank SO2 ambient air guideline and the NRCA requirement for the same parameter by AD 2000. NRCA has agreed to this program and has stated that it looks forward to JPS following similar environmental compliance of action at its other facilities in Jamaica. As a result of these measures, local SO2 ambient conditions resulting from operation of the JPS facility will improve considerably and the JEP project will thereby comply with World Bank guidelines for SO2 ambient air quality and NRCA requirements in AD 2000. In the interim, NRCA will treat JEP as a stand alone facility.
8. In addition, when the JEP project and three other diesel projects begin operation, they will provide base generation during the night and the existing old steam boilers will reduce production by at least 50 percent. Because the new diesel plants will be more efficient than the existing old steam boilers, SO2 emissions will be reduced accordingly. This reduction will be more noticeable at Old Harbour Bay as JEP will burn 2.2 percent sulfur fuel as opposed to the up to three percent being burnt at the JPS facility. These reductions in emissions will result in further improvements to the project vicinity’s SO2 ambient air conditions well before AD 2000.
9. The proposed barge will require a limited amount of shoreline fill and dredging at the waterfront adjacent to the JPS plant. This area has the highest quality sea grass habitat (turtle, manatee and eel grasses) of a total area of approximately 235,000 m2. Sea grass to be removed as a result of dredging and reclamation is estimated at 10,800 m2. Sea grass potentially affected by siltation during dredging could be 11, 300 m2. While sea grass loss is unavoidable during reclamation, JEP will install silt screens during in-water construction to minimize loss of sea grass habitat due to siltation.
10. To compensate for the loss of sea grass habitat JEP will do the following. Currently, about 212,500 m2 of sea grasses are presently being impacted by the thermal discharge plume from the JPS facility. JEP will take steps to improve the quality of the thermal discharge from the JPS plant. By adding its cooler thermal discharge at the mouth of the JPS cooling water discharge channel, JPS’s thermal impacts to adjacent sea grass beds can be reduced. Also, JEP will install oil containment booms at the mouth of the JPS cooling water discharge canal which will reduce the impact of oil to the sea grass and mangrove habitats. These actions will improve the quality of existing sea grass habitats in the vicinity of the cooling water discharge canal. This will serve as compensation for the loss of sea grass due to reclamation and dredging.
11. Fuel will be delivered by small tankers to a mooring facility about 1,500 meters from the power barge. A submarine 12 inch pipeline will carry fuel to the barge. Alignment of the submarine pipeline will be so as to avoid important coral reefs in the area. It is estimated that about one 45,000 bbl capacity tanker will be required each month. JEP is to install a state-of-the-art oil unloading system which is to include the mooring as well as the pipeline. While the state oil company is expected to have the responsibility of unloading oil, JEP will provide a trained individual to oversee every oil unloading operation to ensure good practices are carried out and the risk of operator error reduced. In the case of an oil spill, dispersants will not be used and the sponsor will opt for oil containment booms.
12. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by JEP and by conducting periodic supervision.
13. Based on its review of available information regarding environmental impacts and proposed mitigation measures, IFC concludes that JEP’s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.
International Finance Corporation
A Member of the World Bank Group
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
JAMAICA: Old Harbour Bay
Environmental Review Summary
Environmental Review Summary
1. Jamaica Energy Partners (JEP) proposes to build, own and operate a 74 MW barge mounted power plant at Old Harbour Bay, 40 km west of Kingston, Jamaica. The power source will be eight, 12 cylinder, 500 rpm (medium speed) Wartsila diesel engines operating on Number 6 residual oil. Power will be sold for a 20-year term to Jamaica Public Service Company Ltd. (JPS), the Jamaican national electric utility.
2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of information submitted by the project sponsor, a site visit by IFC’s Technical and Environment Department and discussions with IBRD and the Government of Jamaica’s (GOJ) Natural Resources Conservation Authority (NRCA). The following potential environmental, health and safety impacts of this project were analyzed:
· site selection;
· barge safety;
· existing environmental situation at the proposed site;
· air quality impacts;
· marine habitat impacts; and
· oil spills.
Information on how these potential impacts will be addressed is summarized in the paragraphs that follow.
3. The JPS power system is in a very precarious situation from a supply view point due partly to the fact that no major base load capacity has been installed for some years. This situation was intensified in June 1994 when JPS lost 123 MW of capacity due to a boiler explosion at Old Harbour Bay. As a result, power shortages and load shedding are common. To address this base load capacity shortfall, JPS has a program to build four diesel projects with a total installed capacity of approximately 230 MW. As part of that program, the JEP barge project is aimed at providing a “fast track” 74 MW input to the JPS power system. Potential sites for the JEP project had to have an existing substation and transmission line. This requirement dictated a site adjacent to existing power plants along the coast. Old Harbour Bay was selected as the preferred site because in addition to an existing substation and transmission line, the site provided protection from hurricanes. The barge will be located so the existing line of coral reefs to the south of the site will act as a natural breakwater berm, and will significantly reduce the potentially destructive power of hurricane wave forces that might impact the barge. In this way, the barge has been sited so as to be more resilient to hurricanes than conventional land-based installations.
4. The barge serving as the vessel carrying the power plant will be of all-welded steel double hull design with the hold providing oil storage for about 65,000 bbls of fuel oil. The barge will be designed to withstand ocean waves of 2.0 meters as might occur during hurricanes.
5. The existing four unit 216.5 MW JPS plant at Old Harbour Bay has impacted the local environment. Because it burns up to three percent sulfur fuel (on average the sulfur content is 2.8 percent) and there are no emission controls, SO2 ambient air quality is deteriorated and is not in compliance with NRCA regulations or World Bank guidelines. Thermal discharges are negatively impacting sea grasses in Old Harbour Bay downcurrent of the JPS thermal discharge channel. These impacts subsided somewhat when the June 1994 explosion at JPS’s Old Harbour Bay facility resulted in the loss of 123 MW’s of installed capacity. IBRD, by a generation recovery and improvement project, is assisting JPS in restoring Unit No. 4.
6. The JEP project will burn 2.2 percent sulfur residual oil. At IFC’s request, JEP has committed to installing a modified low NOx Wartsila diesel engine (12 Vasa 46) which reduces the formation of NOx by twenty to thirty percent compared to the originally proposed standard Wartsila Vasa 46 engine. As a result, as a stand alone project, the JEP project would be in compliance with NRCA ambient air regulations and World Bank emission and ambient air quality guidelines. However, given the already elevated SO2 ambient air levels due to the existing JPS plant, and the fact that World Bank ambient air quality guidelines include existing background levels, the JEP plant cannot comply with the World Bank’s SO2 ambient air guidelines.
7. IFC and IBRD looked at a number of options available to JPS to bring the combined JEP/JPS projects’ SO2 ambient air quality into compliance with NRCA requirements and World Bank guidelines. These ranged from burning lower sulfur residual oil, raising stack heights, installing flue gas desulfurization, decommissioning one or two of the four units, (Units No. 1 and 2 are scheduled for retirement in 1998 and 1999 respectively), etc. These and other options are currently being assessed by JPS and in October 1995, JPS will submit to IBRD, its plan for bringing the JPS plant into compliance with the World Bank SO2 ambient air guideline and the NRCA requirement for the same parameter by AD 2000. NRCA has agreed to this program and has stated that it looks forward to JPS following similar environmental compliance of action at its other facilities in Jamaica. As a result of these measures, local SO2 ambient conditions resulting from operation of the JPS facility will improve considerably and the JEP project will thereby comply with World Bank guidelines for SO2 ambient air quality and NRCA requirements in AD 2000. In the interim, NRCA will treat JEP as a stand alone facility.
8. In addition, when the JEP project and three other diesel projects begin operation, they will provide base generation during the night and the existing old steam boilers will reduce production by at least 50 percent. Because the new diesel plants will be more efficient than the existing old steam boilers, SO2 emissions will be reduced accordingly. This reduction will be more noticeable at Old Harbour Bay as JEP will burn 2.2 percent sulfur fuel as opposed to the up to three percent being burnt at the JPS facility. These reductions in emissions will result in further improvements to the project vicinity’s SO2 ambient air conditions well before AD 2000.
9. The proposed barge will require a limited amount of shoreline fill and dredging at the waterfront adjacent to the JPS plant. This area has the highest quality sea grass habitat (turtle, manatee and eel grasses) of a total area of approximately 235,000 m2. Sea grass to be removed as a result of dredging and reclamation is estimated at 10,800 m2. Sea grass potentially affected by siltation during dredging could be 11, 300 m2. While sea grass loss is unavoidable during reclamation, JEP will install silt screens during in-water construction to minimize loss of sea grass habitat due to siltation.
10. To compensate for the loss of sea grass habitat JEP will do the following. Currently, about 212,500 m2 of sea grasses are presently being impacted by the thermal discharge plume from the JPS facility. JEP will take steps to improve the quality of the thermal discharge from the JPS plant. By adding its cooler thermal discharge at the mouth of the JPS cooling water discharge channel, JPS’s thermal impacts to adjacent sea grass beds can be reduced. Also, JEP will install oil containment booms at the mouth of the JPS cooling water discharge canal which will reduce the impact of oil to the sea grass and mangrove habitats. These actions will improve the quality of existing sea grass habitats in the vicinity of the cooling water discharge canal. This will serve as compensation for the loss of sea grass due to reclamation and dredging.
11. Fuel will be delivered by small tankers to a mooring facility about 1,500 meters from the power barge. A submarine 12 inch pipeline will carry fuel to the barge. Alignment of the submarine pipeline will be so as to avoid important coral reefs in the area. It is estimated that about one 45,000 bbl capacity tanker will be required each month. JEP is to install a state-of-the-art oil unloading system which is to include the mooring as well as the pipeline. While the state oil company is expected to have the responsibility of unloading oil, JEP will provide a trained individual to oversee every oil unloading operation to ensure good practices are carried out and the risk of operator error reduced. In the case of an oil spill, dispersants will not be used and the sponsor will opt for oil containment booms.
12. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by JEP and by conducting periodic supervision.
13. Based on its review of available information regarding environmental impacts and proposed mitigation measures, IFC concludes that JEP’s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
