BURGOS WIND PROJECT
Environmental and Social Impact Assessment Report
June 2014
This summary is prepared by EBWPC to complement the ESIA produced by GHD
I.
Introduction
The Environmental and Social Impact Assessment (ESIA) was conducted consistent with the International Finance
Corporation (IFC) performance standards and its guidance notes, which include conformance to the host country’s
environmental assessment laws and regulations (i.e. the Philippine Environmental Impact Statement System and
its Implementing Rules and Regulations). Specifically, the ESIA was conducted to:
Assess in detail the environmental, social, and health impacts that would result from the proposed Burgos
Wind Project
Identify environmental and social mitigation measures to address the impacts identified
Develop an appropriate Environmental and Social Action Plan for the proposed Burgos Wind Project
based on the mitigation and enhancement measures developed in the EPRMP, in accordance with
national and international regulations (e.g. DAO 2003-30 and IFC Performance Standard)
The ESIA was also prepared in accordance with the Equator Principles used by the financing institutions. It was
prepared using several EIA reports as references. EIA reports include the Initial Environmental Examination (IEE)
Reports submitted on April 2000 and February 2002 and Environmental Performance Report and Management
Plan (EPRMP) submitted on September 2010 and July 2013 to the Department of Environment and Natural
Resources- Environmental Management Bureau Region 1 (DENR-EMB R1) in compliance with the Philippine
Environmental Impact Statement System (PEISS) under Presidential Decree (PD) 1586.
II.
Project Description
Project Location
EDC Burgos Wind Power Corporation (“EBWPC” or the “Company”), a wholly owned subsidiary of the Energy
Development Corporation (“EDC”), is developing the Burgos Wind Project (the “Project”) located in Barangays
Saoit, Nagsurot and Poblacion, in the Municipality of Burgos, Province of Ilocos Norte, Northern Philippines. The
location is located approximately 500 km north of Manila.
Figure 1-1 shows the proposed location of the project which is located in a largely unpopulated an undeveloped
area in the region. The Project will involve the construction and installation of up to 55 wind turbine generators
(WTG), access roads, a substation within the approximately 600 hectares development block. Proposed
development plan is to begin construction on June 2013 and works will be completed by end- 2014. Indicative
project capital expenditure is at USD 400 million.
Project Design and Layout
EBWPC identified approximately 618 out of the 1,296 hectares of the service contract area as the Project
development block. This spans three barangays, namely Barangays Saoit, Poblacion, and Nagsurot. The selection of
the Project site was based on the following considerations:
Positive results of measurement of wind speed and direction performed over a period of at least eight
years
Avoidance of residential areas in the three impact barangays
Avoidance of environmental critical areas (ECA) such as critical slope and potential tourist areas
After a long process of tendering and revisions, Vestas and its proposed project design layout using the Vestas V903.0MW machines were chosen. Different factors were also considered in determining the final location of each
2
Environmental & Social Impact Assessment – Summary
Burgos Wind Project
WTG, including geological and geohazard results, visual considerations, wind viability, and soil conditions among
others.
Project Components
Wind Turbine Generators
WTG Specifications
Make and Model
Hub Height
Blade/ Rotor Diameter
Type of Tower
Rated Wind Speed
Cut-in Wind Speed
Cut Out Wind Speed
Details
Vestas 3.0MW V90
75m
90m
Conical tubular
16 m/s
3.5 m/s
2.5 m/s
It was originally envisaged that a total of up to 55 WTGs with a capacity of 3 MW each will be built within the
development block. Current site optimization studies though have suggested installing only 50 WTGs. Figure 2
shows the proposed layout of the 50WTG Project.
Substation and Control Center
The substation will connect the Project to the Luzon Grid through the National Grid Corporation of the Philippines’
(NGCP) substation in Laoag City. An on-site control building will house the data collection and communication
equipment for the operations of the wind farm.
Support Facilities
These include access roads, wind masts, temporary batching plant, jetty, staging areas, and temporary facilities of
the contractors.
Project rationale
In December 2008, the Philippine legislative division signed into law Republic Act 9513 or the Renewable Energy
Act of 2008. The Philippines exhibits a promising potential for wind energy development and this has attracted
various energy companies to enter the wind energy industry. As of April 2014, 45 wind service contracts have been
awarded to 24 developers. Among those, seven projects are located in the vicinity of the Burgos Wind Project.
The Project is being proposed for the following reasons:
1. The Project addresses 1.5% of the projected demand growth for electricity in the Philippines’ Luzon Grid
The 2012–2030 Philippine Energy Plan of the Department of Energy (DOE) shows that the energy demand in
the country is expected to grow with the Philippine economy. With electricity demand expected to grow at 4.8
percent per annum, an additional 10,500 MW of new capacity is needed in the Luzon grid onwards to 2030. Of
the 10,500 MW, 600 MW is needed by 2016 to meet the forecasted demand. The Project is expected to
contribute up to 165 MW to the grid by 2015.
2.
The Project promotes fuel diversification and improves fuel security and sufficiency
The electricity generated by the Project is expected to offset the power generated by coal and oil-fired power
3
Environmental & Social Impact Assessment – Summary
Burgos Wind Project
plants in the Luzon grid. Since the Project harnesses wind to generate power, the Project is further expected
to promote Philippine fuel security and help reduce the country’s dependence on imported fuel.
3.
The Project supports the regulatory framework that grants financial benefits to the host Communities
The RE Law provides for a one percent royalty fee based on Gross Income which the developer is required to
remit to the Philippine government with 40% of the royalty fee shall be distributed to the local government
and further allocated downwards from the provincial to municipal to the barangay level. A government share
is also collected from a generation company based on kWh generated to be allocated for the community’s
financial benefit.
4.
The Project benefits from the establishment of a Feed-In Tariff System
The proposed Philippine Feed-in Tariff System (FiT) is patterned after other successful international schemes.
It guarantees the purchase of all output from FiT-eligible technology such as wind at a FiT rate for a period of
at least 15 years. Below are some specific features of the scheme that are aimed at improving the financial
viability of wind farms while reducing project risks:
o Priority connections to the grid for electricity generated from emerging renewable resources,
such as wind.
o The priority purchase, transmission of, and payment for such electricity by the grid system
operator. This eliminates the need to sign individual off-take agreement with provincial electric
cooperatives and distribution utilities.
o A cost sharing mechanism that will allow additional cost of the FiT to be recovered equally from
all consumers connected to the transmission and distribution grids. The scheme is therefore
more robust since it does not rely on any government budget allocations for it to be successfully
implemented.
Legal and Policy Framework
The Burgos Wind Project was awarded a Wind Energy Service Contract (WESC) by the Department of Energy (DOE)
on 14 September 2009. This WESC provides the developer exclusive rights to develop wind energy resources in the
identified service contract area for 25 years, until 2034, and is renewable for another 25 years. The design life of
the current equipment is for 20 years.
Moreover, the environmental impact assessment (EIA) of the Burgos Wind Project started as early as year 2000
when the project was conceptualised as the Northern Luzon Wind Power Project under the then PNOC-EDC.
Several EIA reports were submitted to the Environmental Management Bureau (EMB) Region 1 for the application
of the Environmental Compliance Certificate (ECC) from year 2000 to 2013 due to amendments on project
development plans as a result of evolving design concepts. Currently, the project holds an ECC for the
development of up to 165MW of wind energy in the development block.
4
Environmental & Social Impact Assessment – Summary
Burgos Wind Project
5
Environmental & Social Impact Assessment – Summary
Burgos Wind Project
III.
ESIA Assessment Methodology
The ESIA is being conducted in compliance with IFC Performance Standards which underpin the Equator Principles
and the World Bank safeguard policies. The Project has been categorized under Category B of the aforementioned
standards, which is described as “Projects with potential limited adverse environmental and social risks and/or
impacts that are few in number, generally site specific, largely reversible and readily addressed through mitigation
measures”. Philippine environmental and social regulations are also considered in correspondence with the
Equator Principles and IFC Performance Standards.
Potential environmental and social issues were identified for study against established baseline conditions. Each is
further discussed in the succeeding sections, and evaluates the Project’s impact and possible
mitigation/enhancement activities:
Environmental Issues
Land Use
Overlap in land use
Access to environmentally critical areas (ECA)
Noise
Construction noise
Increase in ambient noise
Biodiversity
Vegetation removal
Habitat and species fragmentation
Species disturbance
Drainage and hydrology
Water sourcing
Drainage morphology
Soil, Water Quality and Contamination
Soil loss
Water contamination
Change in surface topography/landform
Air Quality
Dust generation
Traffic, access, safety
Traffic congestion
Landscape Visual Assessment
Presence of WTG
Social Issues
Socio-Economic Issues
Social acceptability
Displacement
Generation of benefits
Affected Phase
(Construction or Operations)
Construction & Operations
Construction & Operations
Construction
Operations
Construction
Construction
Construction
Construction
Construction
Construction
Construction & Operations
Construction
Construction
Construction
Construction & Operations
Affected Phase
(Construction or Operations)
Construction & Operations
Construction & Operations
Construction & Operations
Public safety, health, resource competition
Noise, shadow flicker
Heritage and Cultural resources
Tourism activities
IV.
Construction
Construction & Operations
Construction & Operations
Potential Impacts and Mitigation
Physical Aspects
Noise
This assessment considers the potential noise impacts from the construction and operation of the Burgos Wind
Project. Measurement of ambient noise condition in the proposed site was conducted during the assessment and
receptors that may potentially be affected were identified. Ocular and ambient noise measurements were taken
on 22 April to 3 May 2013. The CadnnA model was used to simulate noise.
This assessment has considered the potential for noise impacts resulting from the construction and operation of
the proposed Burgos Wind Project. The assessment of noise was undertaken following the Philippine NPCC MC
1982-22 and the IFC General Environmental Health and Safety Guidelines of 2007. There are 24 receptors
identified that are in close proximity to the project footprint and its vicinity. Distance of receptors varies from 250–
500 m away from the nearest WTG unit. Construction related noise levels complied with NPCC Class A standard
and IFC standard of 55 bB(A) during daytime but it exceeded the standard of 45 dB(A) during night time for
receptors located within 250 m from the nearest WTG unit. This can be mitigated by limiting project construction
activities during daytime period. During operation phase, predicted noise levels at two receptors (R-02 and R-03)
exceeded the 45 dB(A) night time standards of NPCC Class A and IFC with values ranges at 46–48 dB(A) at wind
speeds equal or greater than 12.1 m/s.
Possible measures to address and monitor impacts resulting from the operation of the Burgos Wind Project
include:
o Stakeholder engagement program that allows complaints to be received and addressed in a
timely manner
o Engine silencing
o Screening
o Acoustic enclosures
It is recommended that EBWPC consider the conduct of on-site validation of predicted noise levels from WTG
operations prior to or during the project commissioning. Cumulative noise levels at all receptors complied with the
adopted IFC standard with values less than 51 dB(A) at all wind speeds.
Biodiversity and Conservation Assessment
The biodiversity and conservation assessment has considered the potential impacts resulting from construction
and operation of the proposed Burgos Wind Project. It was undertaken following Philippine and international
legislations and standards. Desktop studies as well as flora and fauna field surveys were undertaken to determine
the baseline characteristics in the project study area. Ecosystem services and biodiversity offsets were likewise
identified. The proposed project has an impact on terrestrial flora and fauna during construction phase (vegetation
removal, habitat fragmentation, species impact) and minimal impact during operation phase (tree pruning, bird
8
Environmental & Social Impact Assessment – Summary
Burgos Wind Project
and bat strikes). Options for prevention, mitigation or enhancements have been suggested.
Drainage and Hydrogeological Assessment
The location of the Burgos Wind Project has poor ground water potential. The development of springs and/or
surface water is the most feasible to supply requirements of the Project. Water permits can be acquired for the
extraction of water from the Kapurpurawan Spring and the Balbalayang Spring. A discussion with the local
government unit and local irrigation association is also recommended to ensure that no competition in water
sourcing happens with irrigation requirements.
Soil, Water, Air Quality
Results of water quality analysis indicate generally clean waters in the study area. All results for all parameters in
all inland surface water stations, except for Kapurpurawan Creek downstream, were within the standards for Class
C and D waters. Result of water samples from wells exhibit water quality that is appropriate for the current use
(domestic and livestock) however, further treatment is necessary before it can be used as potable water.
Potential sources of water contaminants without the project are wastes generated from grazing animals or
livestock due to nutrient and bacteriological content of their waste. This, however, is not considered significant.
During construction, impacts of the project on soil include soil loss and increase in spoil. These can be mitigated
through the implementation of progressive soil removal and progressive rehabilitation. Spoils will also be properly
managed by temporarily placing them in designated areas away from natural barriers and can be later on use as
backfills. Potential sedimentation and contamination of streams due to construction activities can be mitigated by
implementation of an Erosion and Sediment Control Plan, proper solid waste and wastewater management and
proper maintenance of vehicles and machinery to prevent leakage.
The proposed project will have minimal impact on surface landform, topography, terrain or slope. Based on EGGAR
study conducted by PNOC-EDC, there is no active fault passing directly to the project site, which limits the
potential for ground cracking or subsurface rupture. Likewise, erosion hazards, sinkhole hazards, and earthquakegenerated hazards (ground vibration) pose little or no threat to the project site (EGGAR 2000).
Visual Impact
GHD engaged Kimberly Graphics Philippines, Inc. (KGPI) to undertake the landscape and visual impact assessment
(LVIA) component of the ESIA. Twenty (20) initial viewpoints were established and sensitive receptors with
potential views of the wind farm were identified. Six (6) viewpoints were chosen for further assessment. Receptor
sensitivity and magnitude of potential impacts were established to determine the significance of both positive and
negative visual impacts for the construction and operation stages.
The predicted visual impact was demonstrated in photomontages and is summarized as:
Generally the views of the project from the south along Manila North Road (represented by VP5) are
filtered or screened by vegetation and topography and pose no major impacts.
VP1 located adjacent to the site, and VP3 located within the site, generally indicate that these areas will
experience the greatest change in views. In VP1 the project is seen to intrude into the natural scenery due
to the ‘disconnect’ of the areas on the top (the WTGs) and at the bottom of the escarpment
(Kapurpurawan). In contrast, in VP3 the WTGs are seen to become integral to and part of Palpalokada’s
scenery, framing much of its borrowed vistas. Changes at VP1, VP2 and VP3 are positive during operation
phase due to the added ‘attraction’ it would bring to the areas from an eco-tourism point of view.
Predictably the Project’s impact on the visual amenity gradually reduces as one goes farther out. VP4
9
Environmental & Social Impact Assessment – Summary
Burgos Wind Project
located approximately 2 km to the west of the site is predicted to be moderately impacted, whilst the
impact on VP6 17 km across Bangui Bay is of almost no significance.
Shadow Flicker
Based on the study of EPHC (2009 cited in Wind Turbine and Health), the chance of conventional horizontal axis
wind turbines causing seizure for an individual experiencing shadow flicker is less than 1 in 10 million.
Eighty-three (83) houses exceeded the ‘real-case’ limit of 10 hours per year. Extrapolating the preliminary visual
obstruction results in a linear fashion, it may be assumed that the final results will identify no more than 2 houses
that could be removed from the realistic case results, reducing the number of affected houses in the realistic case
from 83 to 81. It may also be extrapolated that approximately 15 houses may fall into the category of being at a
‘lower risk’ of shadow flicker, and could potentially be treated separately from the other affected houses.
Collecting data on the location of the houses using GPS units increased the certainty of the number of houses that
would be affected by shadow flicker at present. However there were some issues found, including three locations
with clear transcription errors in coordinate locations. These anomalies could potentially be addressed by
resurveying these locations.
Based on the specific design and use of the houses assessed, EBWPC will consider in consultation with relevant
stakeholders what limits for shadow flicker may reasonably be adopted for the project, considering there is no
Philippine regulation or guidance on this environmental aspect of the Project.
Social Aspects
Land use
This section describes the baseline condition of the project area and evaluates the impacts of the proposed Burgos
Wind Project on the existing land use. The project development block is classified as forest land, and alienable and
disposable (A&D) land with land areas of 219 ha and 399 ha, respectively. A Forest Land Use Agreement (FLAg) was
issued by the DENR to EBWPC in the use of the public land. No area in the development block was identified as
culturally sensitive and a Certificate of Non-Overlap was issued by the National Commission on Indigenous People.
Land use is largely dedicated as a foraging area for small scale livestock raisers. EBWPC has signed a Joint
Memorandum of Agreement with the local government units representing the communal pasture land for the
mutually beneficial activities across the area. Critical areas were also identified and recognized, of which mitigation
measures were considered in the siting of the WTGs.
Traffic, access, safety
Traffic access and safety-related impacts associated during the operation and maintenance phase of project will be
insignificant given the minimal number of staff (i.e. around 10) who will be working during this phase.
Impacts are associated with the construction activities and delivery of material, which will involve a peak number
of 350 construction workers and 85 vehicles over a period of 19 months. These, however, can be appropriately
mitigated.
With suitable traffic management measures, impact of traffic flows for both general construction route and
transport of WTG components will be minimal and will not cause disruption to other road users. Appropriate
10
Environmental & Social Impact Assessment – Summary
Burgos Wind Project
escort system, especially during delivery of WTG components, will be implemented to ensure safe environment for
both existing road users and construction site personnel.
Economic Aspects
Economic Displacement
The wind farm project development block covers the entire 219 ha of the communal pasture land used by small
scale livestock raisers. During construction phase, impacts will include economic dislocation and social issues
resulting from displacement of livestock and cattle as well as reduction of grazing area. This may lead to loss of
livelihood or source of additional income for the impacted residents.
As emphasized during stakeholder consultation, specific areas within the pasture land will be identified and will
not be used for the wind project infrastructure development (i.e. temporary facility, road access, WTG). In case the
currently utilized foraging area will be used for project development, EBWPC with the assistance of the Municipal
Agriculture Office (MAO) and members of the Burgos Agri-based Association (BABA) will identify a suitable area
within the pasture land to replace the foraging area that has been allocated for the infrastructure development.
EBWPC will likewise provide the necessary technical and financial support in the development of the alternative
foraging area.
Foot patrol will be hired to prevent cattle and livestock from wandering around thus averting cattle death or injury.
A memorandum of agreement (MOA) was signed between the Local Government of Burgos, as the administrator
of the 247 ha communal pasture land and the Energy Development Corporation (EDC), owner of EBWPC, on
October 2008, stating the co-existence of a communal pasture land and a wind farm as beneficial arrangement for
both parties, for the common use, mutually beneficial purposes of the communal pasture land by EDC for the
construction, erection, operation and maintenance of a Wind Farm and by LGU for breeding, raising and pasturing
of the community’s livestock and other livelihood activities compatible with the operation and maintenance of the
Wind Farm.
Further, a social development plan (SDP) was developed to address issues and concerns raised by the community
regarding the project. The SDP was prepared in partnership with the host communities who assisted in identifying
community programs and projects through needs assessment. The SDP focuses on six key areas to include
livelihood, health, education, environment, culture, and infrastructure development.
Physical displacement is not expected since there is no inhabitant or settlement found within the project
development block. Likewise, commercial establishments at the end of the Kapurpurawan Road leading to the
Kapurpurawan Rock Formation will not be affected during construction phase.
During operation phase, impact on economic displacement is negligible. It is expected that during this phase, the
long-term agreement on shared use of land will continue to be implemented and both parties will have to meet
their responsibilities to ensure not only sustained livestock grazing and agricultural production but enhanced level
of development due to growing families of the livestock raisers.
V.
Risk Assessment
11
Environmental & Social Impact Assessment – Summary
Burgos Wind Project
Top three risks identified during the construction phase were (1) regulatory compliance due to breach, (2) water
availability due to competition, and (3) occupational safety due to accidents. All risks were rated extreme. With
control measures, residual risks for regulatory compliance and occupational safety were rated moderate, while
water availability was rated low.
Top three risks identified during the operation phase were (1) biodiversity and conservation due to bird/bat
strikes, (2) people safety due to blade throw, and (3) noise due to increased noise levels. Biodiversity and
conservation risk was rated high, while the other two were moderate. With control measures applied, top two
risks were reduced to moderate levels. Residual risk for noise was rated low.
Each identified risk during the workshop requires ongoing management control through the appropriate systems.
These risks are to be incorporated into the Environmental and Social Management Plan for the proposed project.
By doing so, monitoring programs could be established to assess ongoing performance and help predict whether
risk events would be more likely.
Management plans to be implemented during the construction phase include, among others:
 Progressive rehabilitation
 Biodiversity monitoring plan
 Topsoil management plan
 Erosion and sediment control measures
 Dust management plan
 Traffic management plan
VI.
Environmental and Social Management Plan
Environment and Social Monitoring Plan
The monitoring plan is designed to monitor compliance of EBWPC to environmental standards and ensure effective
implementation of mitigation measures that the Company has committed to undertake. The monitoring program
may be revisited during the project life cycle depending on the extent of activities involved in each of the project
phases.
During construction phase, flora and fauna will be monitored annually. Air is to be monitored quarterly. Water
quality, water contamination, noise-terrestrial fauna, noise-people, people-employment, and people-health and
sanitation are to be monitored monthly or as needed. People-access road, people-in migration, and people –
peace and order are to be monitored daily.
During operation phase, flora is to be monitored semi-annually. Air, water, shadow flicker, and noise-people are to
be monitored quarterly or as needed. Land-terrestrial fauna, people-in migration, and people-peace and order are
to be monitored daily.
Social Development Plan
The social development plan focuses on five key areas, which include livelihood, health, education, environment,
and culture. EBWPC is committed to support community development as embodied in its Corporate Social
Responsibility (CSR) Program. The activities undertaken by the Company as well as subsequent social development
programs are as follows:
12
Environmental & Social Impact Assessment – Summary
Burgos Wind Project
-
VII.
Livelihood: Pasture development project with Burgos Agri-Based Association, livelihood skills training
Health: Medical, surgical, and dental missions, Health and sanitation facilities in public schools
Education: Manpower skills development
Environment: BINHI: Tree for the Future Project program
Culture: Sponsorships on various LGU activities such as kite-flying contests and fiestas
Ancilliary Projects
Transmission Line
The Project will be connected to the Luzon grid via a 42-km 115kV single-circuit transmission line. This will traverse
4 municipalities namely, Burgos, Pasuquin, Bacarra and Laoag, spanning approximately 120 hectares. The
transmission line will be comprised of 147 structures, broken down into 127 lattice steel towers and 20 steel poles.
A Certificate of Non-Coverage (CNC) was secured in lieu of an ECC for the transmission line.
The transmission line traverses both private and public land. The 22.4 hectares of public land affected by the route
is covered by a Forest Landuse Agreement (FLAg) with the Department of Environmental & Natural Resources
(DENR). A comprehensive development plan is in place for compliance to the FLAg requirements.
13
Environmental & Social Impact Assessment – Summary
Burgos Wind Project