E2842v8 DAHSHOUR-ATFEEH GAS PIPELINE, EGYPT ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT Executive Summary April 2013 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary Introduction The proposed project is an integral part of Egypt’s strategy which aims to expand the uses of natural gas as a clean source of energy. This project aims to provide natural gas to the Atfeeh power station and to strengthen the national network of gas. The Egyptian Company for Natural Gas (GASCO) is taking the responsibility of the implementation of this project, with funding and assistance from the World Bank. EcoConServ has been asked to prepare an Environmental and Social Impact Assessment including a Resettlement Policy Framework, in compliance with the requirements and regulations of the Egyptian Government and the World Bank. Approach to Study • Assessment of the potential environmental and social impacts of the project. • Comparison of impacts with regard to the requirements and national and international guidelines. • Assessment of the environmental and safety guidelines which is practiced on an ideal basis through gas delivery activities in Egypt. • Inclusion of stakeholder concerns at multiple stages through early scoping session and final public consultation • Monitoring of the Egyptian laws and the World Bank standards, which might affect the project during implementation. • Preparation of the environmental management plan and the environmental monitoring plan to mitigate the potential negative impacts and monitor the compliance process of the relevant environmental laws. • Provision of an integrated plan for monitoring, evaluating and determining compensation strategies for groups likely to be affected as a result of the implementation of the project. • Evaluation of the institutional capacity of GASCO to implement the project and proposed mitigation measures, and suggestion of institutional capacity raising means if necessary. Project Description Pipeline Route (Dahshour - Atfeeh 36" pipeline with length of 95 km) The line starts at Dahshour compression station and passes along the line of Dahshour-El Kouraymat and Fayoum road, through a large area of desert land, before cutting across the Nile Valley, where it encounters some agricultural and residential areas, before reaching the Atfeeh power station. The planned path of the pipeline runs through agricultural lands and near to inhabited areas, crosses several major transportation routes and waterways (including the Nile). Major roads and waterways are crossed using a special tunneling method to avoid major disruptions and impacts. 1 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary The project includes construction of a Pressure Reduction Station inside the Atfeeh power station, as well as 8 valve rooms along the route of the pipeline, which aid in isolating leaks and performing maintenance. Construction Phase The project will be carried out under the supervision and control of GASCO. It is anticipated that the construction phase will continue for 15 months, and include the following activities: • Leveling and preparing of the temporary roads leading to the work sites • Storing of pipes • Trenching • Welding and checking the seams • Tweaking the welding joints • Visual checking of the welding joints • Inspection • Air tests • Laying pipes in the trenches • Valves installation • Connection works with valves • Backfill works • Cleaning works • Preparation for tests • Hydrostatic test • Additional air test • Water discharging • Magnetic cleaning • Drying and delivery Operation Phase Normal operation will include routine audits on pressures and condition of the pipeline. Normal maintenance and monitoring works will also be performed, including a leakage survey and patrolling for encroachment. In case of leak detection, or damage of part of the pipeline, the damaged pipe is replaced. Standard procedures are in place for such incidents. Routing Alternatives Choosing the pipeline route involves selecting paths that, when possible, follow a logical course along existing transportation ways, cross these transportation ways at opportune locations, and avoid populated areas and other sensitive receptors. These efforts must be balanced with efficient use of resources and the desire to minimize the overall length of the pipeline. Luckily, this pipeline is intended to pass though empty desert areas close to another natural gas line, using the protected area of the current line. Moreover, the line will pass by the protected areas of highways. GASCO has an unwritten strategy that thoroughly avoids any construction 2 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary buildings including: houses, graveyards, religious buildings and historical areas. "It is not allowed for us to pass through houses, mosques, churches, graveyards or any other historical areas. We try to do our best to avoid those areas, therefore the start point of the project and the end points are fixed but their routes might be changeable 10-20 meters right or left to the originally planned line," reported an engineer from GASCO. One conceived alternative was for the pipeline to begin by going to the east and crossing the Nile Valley near Helwan, and then heading south along the east bank of the Nile to reach Atfeeh. This would involve the disruption of new lands, since the path would no longer follow an existing pipeline. Additional complications may arise from the proximity to the Helwan area, which is more densely populated and has more sensitive receptors and infrastructure to worry about. The proposed route follows the existing Dahshour-Koreimat pipeline south through desert lands and along main roads. GASCO considered running the pipeline along the west side of the Asyut Desert Road, but following the existing pipeline is greatly advantageous since the land is mostly unutilized, and there is already an existing buffer zone to reduce interference. Also it is simpler to receive permission for constructing the line. The pipeline then passes over the Maasera channel, where there is a bridge that will ease access to the route for construction and maintenance vehicles. The channel itself is a natural barrier to the expansion of the settled areas, which decreases the likelihood of future interference. GASCO considered the alternative of diverting the pipeline towards the east earlier, to run parallel with the Fayoum Railroad and Abu Rady Road, and then crossing the Maymoun asphalt road and continuing to the Atfeeh Power Station. However, this route is approximately 2 km longer than the proposed route, and doesn’t offer any significant decrease in the environmental and social impact of the project. It would require greater crop damage and compensation, and increase the risk of interference. It was deemed to be more beneficial for the pipeline to follow the existing Koreimat pipeline for the greatest distance possible. The path selected by GASCO is sufficiently short and well chosen for its navigation of the critical crossing points and populated areas, providing for minimal environmental and social impacts. Positive Environmental and Social Impacts Achievement of the previously mentioned project objectives represents many of the social and economic benefits, and will support the achievement of Egypt's strategy for the energy sector. The most significant positive impacts to be achieved are: • Providing work opportunities for local untrained labor or limited trained labor in construction works. This is a positive social indicator especially if we looked at the unemployment rates, which exceed 10% of the total workforce in the urban areas of Fayoum, Beni Suef and Giza governorates, and 5% in rural areas. • To achieve increased commercial activities (such as restaurants and cafes) at construction sites, which exist in the rural areas of Beni Suef and Fayoum. 3 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary • To stimulate the sale and rental of building materials and construction equipment at the targeted areas, where such projects provide a good marketing opportunity, particularly as a result of distance from the production plants that are buying from them in bulk. • Increased opportunities for workers in the various means of transportation in the different locations, and in particular light transportation means, such as motorcycle and Tuk Tuk, which spread in the governorates of Beni Suef and Fayoum • Contribute to improving the opportunities for targeted communities to benefit from the natural gas service, which supports the feeling of citizens that there are someone who cares about them, their living conditions improvement and provision of services for them. • Utilization of housing units for the project management at site, as well as to accommodate the workers. • Achievement of sustainability and continuity of the energy source, which is environmentally safer and comes with less economic cost. The life span of the facilities used to generate electricity at power stations that will be supplied by gas will be extended. This will lead to improved continuity of electricity in the targeted governorates of Egypt. • The ability to make subsidiary gas connections for the various governorates, which could result in delivery of natural gas to houses around the clock. • Economic benefits as a result of using sustainable local source of energy at the power stations, which will work on the stability of the fuel cost price, unlike other unstable sources such as fuel oil and diesel fuel. This will also reduce the subsidiary cost of petroleum materials which overburden Egypt. Environmental Impact Rating Summary Impact Rating Phase Impact Category Low Medium High Hazardous waste generation X Risk to infrastructure X Construction/excavation waste generation X Water use/wastewater generation X Air emissions X Construction Noise production X Soil quality degradation X Biodiversity and habitat destruction X Stability of existing structures X Traffic disruption X Accidents and emergencies X Operation Repairs and maintenance X Main Construction Impacts Hazardous Waste Generation The primary sources of hazardous waste are: 4 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary • Demolished asphalt • Containers of chemicals and lubricant oils used for construction machinery Asphalt waste will come from the open-cut road crossings, while the chemicals and lubricants will result from the use of construction and excavation machinery. It is estimated that on average, 12 kg of such waste will be produced daily. Articles 26 through 28 of the Executive Regulations of Law 4 lay down certain steps that must be followed for the granting of handling licenses for these materials. Improper disposal of these items can potentially directly affect the health of anyone who comes in contact with them. Potential soil contamination may result from improper hazardous waste storage, handling, and disposal practices, as well as potential spillage and/or leaks during the course of the construction activities. There is a slight risk of a spilled or leaked substance spreading beyond the project site as a result of nearby ground or surface water contamination, thus becoming a more significant environmental risk, but in general the potential of this impact is local in nature. Damage to Existing Infrastructure Most of the underground infrastructure pipelines (such as water, sewerage and telecommunication) have been established a long time ago, without accurate documentation for its routes and depths. Therefore, the risk of breaking infrastructure lines is relatively high. Normally the contractor takes caution by applying manual excavation to avoid such situations where he is obliged to pay for the damage. The most important environmental impact will arise in case a sewerage pipe is broken, and wastewaters accumulate in the trench and, possibly, over flood to the streets causing significant nuisance to the surrounding environment. Breaking a water supply pipe may result in cutting the supply to a number of residential units, which may, if it takes place for a long period, direct residents to use other sources of water which may be either expensive or unsafe. The effects of cutting telecommunication cables during excavation are mainly socioeconomic, due to cutting possible personal and business communications. Main Operational Impacts Accidents and Emergencies (Quantitative Risk Assessment) In order to assess the potential impact of pipeline operation in terms of human health and safety, a Quantitative Risk Assessment (QRA) was performed to determine the threat of injury or fatality to the public in the case of an accident or emergency. The nature of the project is such that an unforeseen failure in the pipeline operation could result in the release of significant amounts of natural gas into the surrounding environment. The possibility of this gas being 5 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary ignited poses an environmental risk and threatens the safety of individuals and the public. This risk is fully assessed in the accompanying QRA report. Social Impacts Social Impacts during Construction • Temporary negative impact on the local livelihoods of farmers due to the temporary acquisition of land and the subsequent impact of damaging crops. Farming, in most of the cases, is the sole source of income for the affected farmers. The project construction phase will necessitate temporary acquisition of about 150 feddans of agriculture land during the construction. It was very difficult to estimate the numbers of potentially affected people during this phase of the project. This will only be possible before the actual construction of the project and upon determining the exact route. During this stage a Resettlement Action Plan (RAP) should be prepared guided by the prepared RPF. The RAP will involve a full inventory survey for the PAPs and a valuation for the compensation that should be paid. • Permanent acquisition of land for the establishment of the valve rooms. In such cases, the common rule of GASCO is to provide full replacement cost for purchasing the land as per the market price under satisfactory, agreeable and appropriate agreement. It might be roughly suggested that each of the land plots (25 m x 45 m) for each of the valve rooms is owned by one farmer. Based on this assumption, 8 farmers are expected to sell their land to GASCO for establishing the valve rooms. Purchasing lands is not considered as involuntary resettlement. It is mainly based on willing seller willing buyer approach • Potential traffic congestion due to the accumulation of construction materials and dust that will result from digging. From a social prospective, this impact might affect the income of microbuses, small vehicles and taxi drivers. • Potential temporary inconvenience as result of the construction activities. This could be in the form of accumulation of wastes (both construction and domestic waste in the construction areas, associated odor, air emissions, especially dust as a result of excavation. These impacts are of temporary nature and will be of very limited level of severity, particularly since the construction activities will be in farms and not populated areas • Risks of damaging existing community infrastructure, especially water pipes that are not mapped, can have detrimental social repercussions. Disruption of other utility services such as electricity and communications can also be a nuisance to those affected. Social Impacts during Operation The possibility of a gas leakage or the occurrence of fires, which could affect the residents in the area, is a concern. The other element is the possibility of extending the residential mass to the pipe line routes, which could lead to encroachment on the line. Additional crop damage as a result of maintenance or surveillance activities is also a possibility. 6 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary Environmental Management Plan Environmental mitigation matrix during construction Responsibility Responsibility of direct Impact Mitigation measures Estimated Cost of mitigation supervision Separation of asphalt waste, Contractor GASCO HSE Site supervisor Contractor cost arrange for asphalt recycling Hazardous waste Vehicle repairs and fuelling off Contractor GASCO HSE Site supervisor Contractor cost generation site, on appropriate surfaces Approved storage and disposal of Contractor GASCO HSE Site supervisor Contractor cost chemical and lubricant containers Consult maps before excavation Contractor GASCO HSE Site supervisor Contractor cost Risk of work damaging Use of trial pits Contractor GASCO HSE Site supervisor Contractor cost infrastructure Analysis of accident log Contractor GASCO HSE Site supervisor Contractor cost Identification and use of approved Contractor GASCO HSE Site supervisor Contractor cost nearby disposal sites through local Construction/ authority Excavation Designation and use of appropriate Contractor GASCO HSE Site supervisor Contractor cost waste generation stockpiling locations on site Daily hauling of waste to disposal Contractor GASCO HSE Site supervisor Contractor cost site in covered trucks Acquire discharge permits from Contractor GASCO HSE Site supervisor Contractor cost Water sewage/irrigation authority use/wastewater Collection of potentially Contractor GASCO HSE Site supervisor Contractor cost generation contaminated streams in separate tanks Water spraying before excavation, Contractor GASCO HSE Site supervisor Contractor cost filling, loading and unloading Spraying of stockpiles, storage in Contractor GASCO HSE Site supervisor Contractor cost Air emissions covered areas Implementation of regular Contractor GASCO HSE Site supervisor Contractor cost maintenance schedule for 7 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary machinery Limit exposure time of workers to Contractor GASCO HSE Site supervisor Contractor cost Noise Production elevated noise levels Use of earmuffs Contractor GASCO HSE Site supervisor Contractor cost Effect on Survey of buildings with damage Contractor GASCO HSE Site supervisor Contractor cost structures by potential dewatering/tunne Soil investigations Contractor GASCO HSE Site supervisor Contractor cost ling activities Signage and markings to instruct Contractor GASCO HSE Site supervisor Contractor cost drivers Traffic Use of alternative routes when Contractor GASCO HSE Site supervisor Contractor cost congestion roads are obstructed Employment of trained drivers Contractor GASCO HSE Site supervisor Contractor cost Applying the requirements GASCO GASCO Social Development Estimated amount for Loss of farmer presented on the prepared RPF Compensation Officer crop compensation: livelihood due to Committee USD 85,000 temporary land Preparation of RAP acquisition and External crop damage Providing fair compensation to the Consultant land owners for the loss of crops. Loss of farmer Providing fair price to the land GASCO GASCO Social Development GASCO will purchase livelihood due to owners for purchasing the land for Compensation Officer the lands during the permanent land the valve rooms Committee construction phase acquisition for valve rooms 8 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary Environmental monitoring matrix during construction Monitoring Frequency/ Impact Responsibility Location Methods Estimated Cost indicators Duration Use of designated Contractor Weekly Construction Site Contractor cost stockpile locations site observation Construction/ Separation of Contractor Weekly Construction Site Contractor cost excavation and hazardous waste site observation hazardous waste components generation Quantity and type Contractor Daily Construction Recording of Contractor cost of waste generated site daily hauling statistics Frequency and Contractor Monthly Documentati Documentation Contractor cost Risk of damaging location of damage on offices in HSE infrastructure incidents monthly reports Quantity of Contractor Daily Construction Recording of Contractor cost wastewater/sewage site daily discharge discharge from amounts administrative camp Quantity of water Contractor Continuous Construction Flow rate Contractor cost Water use/ diverted for testing during testing site measurements wastewater Oily appearance or Contractor Continuous Construction Site Contractor cost generation smell of wastewater during testing site observation stream Contaminant Contractor Upon Approved Chemical USD 680 concentrations in detection of water analysis wastewater streams oily treatment lab appearance or smell Inspection of Contractor Quarterly Documentati Review of Contractor cost Air emissions vehicle and on offices schedule machinery 9 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary Monitoring Frequency/ Impact Responsibility Location Methods Estimated Cost indicators Duration maintenance schedule HC, CO% and Contractor Once before Vehicle Emissions Contractor cost opacity construction, maintenance testing once site quarterly for each vehicle Noise intensity, Contractor Quarterly, at Construction Noise Contractor cost exposure durations least one site recording, and noise impacts measurement reporting in per monthly reports contractor per sector Noise Production Complaints from Contractor Quarterly Construction Inspection of Contractor cost residents site filed complaints Use of earmuffs by Contractor Weekly Construction Site Contractor cost construction site observation workers Effect on Amount of soil Contractor As necessary Construction Inspection of Contractor cost structures by present in during site water from dewatering/ wastewater stream dewatering/ dewatering or tunneling tunneling tunneling activities Complaints and GASCO Social Weekly Project Site Review list of No additional cost Loss of farmer grievances from Development PAPs, receipts, required livelihood due to PAPs about fair Officer Documentati grievances, and temporary land compensation and on offices follow up acquisition and procedures Compensation forms crop damage Committee 10 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary Monitoring Frequency/ Impact Responsibility Location Methods Estimated Cost indicators Duration Complaints and GASCO Social Weekly Project Site Review list of GASCO regular grievances from Development during the PAPs, receipts, management cost Loss of farmer PAPs about fair Officer phase of Documentati grievances, and livelihood due to price and project on offices follow up permanent land procedures Compensation preparation forms acquisition for Committee until the valve rooms purchase of land is done 11 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary Environmental mitigation matrix during operation Responsibility of Responsibility Impact Mitigation measures Estimated Cost mitigation of direct supervision Design to recognized GASCO HSE GASCO Headquarters GASCO regular standards, effective Department management cost inspection, testing, and maintenance plans Rapid isolation of leaks GASCO HSE GASCO Headquarters GASCO regular Accidents and to minimize potential Department management cost Emergencies hazards Pipeline patrolling for GASCO HSE GASCO Headquarters GASCO regular encroachment and Department management cost damage risks Pipeline leakage surveys GASCO HSE GASCO Headquarters GASCO regular Department management cost Permanent Providing compensation GASCO Review list of PAPs, receipts, Difficult to determine at expropriation of to the land owners Compensation grievances, and follow up forms this stage land entering Committee urban zoning Temporary loss Compensation for the GASCO Review list of PAPs, receipts, Estimated compensations of crops during loss of crops Compensation grievances, and follow up forms USD 850 annually maintenance Committee 12 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary Environmental monitoring matrix during operation Monitoring Frequency/ Estimated Impact Responsibility Location Methods indicators Duration Cost Performance of GASCO HSE Quarterly Documentation Inspection of GASCO regular regular Department offices maintenance management maintenance schedule cost Buildings on RoW, GASCO Twice Pipeline route Site GASCO regular land alterations Inspection monthly for observation, management Accidents and Department populated inspection of cost Emergencies areas permits Leakage noise, GASCO Twice Pipeline route Leakage GASCO regular pipeline pressure, Inspection monthly for detection tools management etc. Department populated cost areas Permanent PAP registration GASCO Quarterly Project Site Site observation GASCO regular expropriation of Compensation Headquarter and and management land entering forms Regional Documentation coordination cost urban zoning branches offices with the LGUs PAP registration GASCO Quarterly Project Site Affected land GASCO regular Compensation Headquarter and plots management forms Regional Documentation Compensation cost Temporary loss of branches, offices offered crops during Compensation Documentation maintenance Committee that prove receiving compensation 13 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary Social Management Plan Implementation of the social management plan for the project activities is carried out through a committee of GASCO including a lawyer, an accountant, and the committee director. Members of the agricultural associations and the Local Governorate Units in the various governorates will need to cooperate with the committee. In the case of a dispute regarding the provided compensation amount and the failure of the proposed proactive and reactive grievance mechanisms proposed on the RPF in handling these disputes, it should be submitted to the Supreme Commission for Compensation, which is chaired by a consultant from the state council, and the commission is competent to hear appeals for compensation. Also there should be a field Social Development Officer who is responsible for compensation record keeping and monitoring of complaints, among other social responsibilities. Detailed guidelines for dealing with expropriated land, displacement of people, and compensation matters are provided in the RPF. Public Consultation Due to the project needs for a temporary expropriation of the agricultural land, the need for supportive community participation for the various activities of the project must be greatly considered. The ESIA and RPF team carried out several consultation activities and community interviews along the planned route. The field surveys involved comprehensive investigations to evaluate the environmental and social assessment of the proposed project. Interviews were carried out with different groups, in order to include their inputs about the proper scope of the study, and what they consider the most important environmental and social impacts. After drafting the results of the ESIA, public consultation was organized to review the draft results with various stakeholders. This activity comes in line with the World Bank disclosure policy and the requirements of the EEAA as part of the EIA guidelines. Questions and comments session was arranged and the comments and suggestions of the stakeholders were incorporated into the findings of the ESIA report. Resettlement and the compensation for various types of land acquisition were key issue that the participants raised during the consultation. Key recommendation to ensure full community participation included: • Provide the names of individuals who need to be compensated for land and crops and disclose transparently. • To discuss prices with agricultural associations to determine the acceptable actual value of the different crops, without prejudice to the right of the affected groups. • To inform the local community about the project and provide the necessary information through NGOs and seminars, and placing guidelines and definitions signs. • Monitoring of complaints related to the project, performance, infringement on the property and report to the project follow-up unit. This should be achieved through adapting both the proactive and the reactive approaches as explained in details in the RPF. 14 Dahshour-Atfeeh Gas Pipeline, Egypt Environmental and Social Impact Assessment Executive Summary The ESIA recommended strongly the need for the involvement of various stakeholders and community groups, including: • Local Governorate; executive authorities • NGOs • Agricultural Associations. • Mayors and natural leaders • Project affected groups Conclusion The study concluded, after analyzing the various project activities through the phases of construction and operation, and the consequent various environmental impacts, that the basic designs were based on the latest technologies and cleaner production technologies. The study also concluded that the project has many positive impacts on the socio-economic level, in terms of providing several employment opportunities, especially during construction phase, which support the national economy. As for the negative environmental impacts during construction phase, they are considered to be limited and short-term, and can be reduced to the minimum that could be made these impacts negligible, by applying the proposed environmental monitoring and management plan during the construction phase. With regard to the negative environmental impacts during operational phase, the study concluded that they are insignificant and very limited. Similarly, the social impacts of the project are mostly of temporary nature. The negative social impacts could be tackled through adopting a transparent and fair strategy to address resettlement and compensation for the project affected persons. From the foregoing, the study concluded that the project is acceptable in terms of environmental and social aspects, with the following of the proposed social and environmental monitoring and management plan. 15