AES MEGHNAGHAT LIMITEDMEGHNAGHAT POWER PROJECT E178UPDATED ENVIRONMENTAL IMPACT ASSESSMENT X 78

Volume 5

APPENDIX M6: SUPPLEMENTARY DOCUMENTATION -PROJECT FOLLOW-UP INITIATIVES ANDPUBUC REVIEW OF THE SEPTEMBER 2000EIA REPORT

ESG INTERNATIONAL INC.APRIL, 2001 FILE COY

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PJFJI/ IZn JX HtM MHr.lrUN rVi LII. v4 aV- o30 INU. e- LWJ'4

A Meghnaghat Limited .

/ November 7. 2000 .

The Secretar y. )Bangladesh Power Development Board *'l'Floor,WAPDABhaban -

Motijheel CA, Dhaka 1000 ' g -

Subject Mitigation of Environmental and Social Impacts Arising from Land Acquisition forthe Meghnaghat Site

Dear Sir,

In the course of Environmental Impact Assessment ("EIA') for AES Meghnaghat 450MW CCPPProject ("Project"), the Project Affected Persons ("PAPs") were extensively consulted to record theirviews and concenis for the Project, identify the environmental and social issues that have arisen ormay likely to arise due to implementation of the Project and take necessary management measures tornitigate such impacts. Out of many issues the PAPs and the local community have raised to us, thefollowings are put forward to BPDB for fruitful resolution.

1. Opening a Gate on the BPDB Access RoadThe villagers from Ganganagar cornplained that construction of the Access Road and the securityfence on its top. has effectively blocked movements of people, children, livestock, agriculturaltools and appliances, harvested crops, from one side of the Access Road to the other and demandedopening of a gate at a suitable location, preferably near the south corner of Ganganagar Village. Therequest letter submitted by the Liaison Committee of the PAPs (Land Owners) and endorsed by theHonorable Member of Parliament, Professor Mohammad Rezaul Karirm is enclosed.

~ BPDB is requested to arrange a meeting with the villagers in the presence of Project Company'srepresentative to discuss the merit of this demand, considering the present developments ofcommercial and industrial units on both sides of the Access Road and resolve the issue.

2. Water LogngThe villagers of Ganganagar complained that rain water and discharges from the nearby industriescollected on the south side of the Access Road can not go out due to lack of proper drainage, despitethe fact that BPDB has constructed a pipe culvert beneath the Access Road to facilitate drainage ofwater from this area. BPDB is requested to review the performance of the culvert and, if foundineffective, take necessary corrective measures.

3. Sand TransportDue to lack of topsoil, no vegetative cover has grown yet on the Meghnaghat Site. Windblows off a lot of sand to the nearest villages around the Meghnaghat Site and spoils foodand water kept by the villagers for their consumption and causes damages to standing crops.Sand blowing from AES Meghnaghat Site is gradually taken care through regular wateringon the Site soil and plantation of trees. BPDB is requested to mitigate this issue either byputting a thin layer of brick chips or soil on Phase II and Im land to facilitate growth of grassand prevent carry over of sand by wind.

4. Site FllingPrivate landowners cornplained that BPDB filled up more land than they acquired. Sitefilling by dredging might have resulted in submergence of some private land under sandover flown with the drain water. BPDB is requested to identify its land boundary and mark it

*, with permnanent posts. RPDB is also requested to hold a meeting with the private landownersand come to a resolution with them on this issue. Xf the landowners want removal of thesand. BPDB should remove the overlaid sand at its own cost.

S ha;,jr - =Jocr E -.A. 2sc'j Rck-,a' -- ari. Sher-Reangla Nsca Dhaka 12C,7. c-'e'. 2--'32*- -

f'P, LJ. j "C r1 nI r"Lru rIvi LIL. v7 Z)± I .IZ or ra Nu. 4, L'JzP

5, River Bank ErosionThere was a concern at Islampur Village about bank erosion associated with dredging andsubsequent slide of the village into the river. Although from the post dredging bathymetry, itappears that no dredging was done in the vicinity of Islampur Village, BPDB should keep onmonitoring the course of the river until its bed has stabilized and keep the villagers informedof any threat of bank erosion, which may reasonably be attributed to river dredging.

6. Opening of a Gate for Access to Meghnaghat Site and Providing Assistance inConstruction of a Road Along the Northern Embankment up to Dhaka-ChittagovgHighway

The affected people from the villages of Doodghata, Khurbanpur, Mongalergaon, Pachani,Chargoaldi, and other villages lying on the north side of the back channel demanded opening of agate at the north-west comer of the Meghnaghat Site to allow their comiing on the Meginaghat Sitefor job in construction of the power plants. The PAPs also dcemanded assistance in construction of aroad along the slope/toe of the northern embankmnents of the Meghnaghat Site and the Access Road,up to Dhaka-Chittagong Highway for movernents of around thirty thousand people from the abovevillages to Meghnaghat for education, job and business. The request letters submitted by the LiaisonConmmittee of the PAPs (Land Owners) are enclosed.

As claimed by the villagers, it takes an hour for a person from the above villages to come toMeghnaghat using the existing road, which meets Dhaka-Chinagong Highway at Mugrapara. at acost of Taka 20 per person. The requests appear to have a lot of merits and were also endorsed by theHonorable Member of Parliament, Professor Mohammad Rezaul Karim. Opening of a gate at thenorth-west corner of the Meghnaghat Site will improve accessibility of economically displacedpeople to temporary employment in construction of the power plants. Construction of a road alongthe northem embankment will facilitate their coming to Meghnaghat, which is a fast growingindustrial and commercial hub in Lhe region. With the coming up of many new industries,Meghnaghat promises a lot of opportunities for new employmnent and businesses.

In the consultation meetings, the affected landowners told us that one of the assurances given by theDeputy Comnurissioner of Narayanganj at the time of land acquisition, was creation of jobopportunities for local people in construction of the power plants and sharing project benefits withthenL Due to such assurances, the landowners cooperated with the DC in land acquisition for theMeghnaghat Site. Land was the main source of livelihood for the villagers. After losing access to thisvaluable resource, many of them have not yet been able to rehabilitate ithemselves to newemployment. Allowing them to come on the Meghnaghat Site or facilitating their access toMeghnaghat will help the PAPs in restoration of their lost income The Project Company may extendnecessary cooperation and assistance in this effort.

Yours sincerely,

Iai amProject Manager

Enclosure: Three (3) separate request letters from the Liaison Conuittee of the PAPs

-/gA st Chairman, Bangladesh Power Development Board-"X r,N x ) Director. IPP Cell, Bangladesh Power Development Board

/ Xroject Director, Meghnaghat Power Company, Bangladesh Power Development Boardl-haj Serajul Haque Bhuiyan, Chairman, Pirojpur Union Parishad, Sonargaon, Narayanganj

M Islam, Chairman, Liaison Committee of PAPs (Land Owners)

2

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CHrRAN BPDB PAGE el

BANCLADISH POWER DVE*LOPMET DOARDWAPO)A BULDNri ( 1d Floor)

12, Motijbee Couinzvra Ameu. DbakcR-1000'Teh 9554209

~~~~~~~~~~~~~~~Fax' .l 918345. 954765, 9551IAA

Secretary F) £4- |-

Datez21) /t112000

Memo No. -PDB (SteAt.)Dv. -107/9S

AES Meghnawbt Ltd.-l Bhaba (5* floor), V8-A. Begum RIncya ShariSher-e-Bagla Nagar, Dhka-1207.Fax No 9132359.....

Attnt Mr Tajul Islam, Project Manage?.

Ref: Your leter dated: 7 Novenber, 2000.

Sub: Midgation of Environmental and Social Impateb Arsing from Land Acqulsition Cor the MeghnaOghatSlte.

Dear sirs,

In rtspOnSe to your lener under reference regirding th Mkiigation of Enwironmental and Social Impacts atMeghnaghat Site. this is to inform you thazt BPDB received 'no objection' cerrit1jtc from BangladeshEnvirorumcnial Depanmcnt to Cons,uc 4S0 MW Combined Cycle Pover Station at Merlxaght Site (copyeaclosed). So there should be nQwanmental impacts or other impacts at site.

Meghoag'hat Power Project s3i 1a a Key Puit I Sallaiin (KPI) of Bangladesh. Threr or more power staion wiU beinstalled in the Megbnaghet Site and thr access road will be used by all the power starlon uwncrs. So for the secwitW

pose of Rl the powet stinnA, it is not posSible to optn a gale at any place of the Access Road. To construct anow i-oad alog the toc/slopr of tbe Nonhttn Ewbabnwat up to D)haka-Chittagong Highway.is not recbicallyrecommeuded. The village3 rmay approacb so loal Govt. for led cquisition and ronstruction of such new road-

Most of the places on the south side of the Access Road already filled by the land owners and test of the places maybe filled within a short time. Moreover there is a culvert to facilimate the water logging problems. Hence there shouldbe DO problem of water logging.

The Northern bida of Pbrae-U vni tiT is mosgtly surr-unded by the nver. So sand blowing aom these sidcs cannotcause damage to standby crops and villagers.

BPDB filled and developed the land which they acquired. Before filling the land, BIPDB denarcated the boundary ofthe laud ad after filling BPDB also checked it. No clai4 from any land ovmers have been received by BPDB. So itis clear That no extrA land other than those acquired were filled up by BPDB.

Thanking you,

4~V U&r,r4 (Md. Seraj uddullah)

Memo No. -PDR (Secttf)/Tev. -107/95 D1e: n1/2000

Copy to.1. Mtmber (P&D), UPDB, Dhaka.2. Chief EDgineer (P&D), BPDB, Dhaka.

3.Megla Mghat Power Proct, BPDB, Dhana.4. Drcstor, IP? Ce!.S. cso,t Ct a BPDB,DIha_

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* iES Meghnaghat Limited

January 1, 2001

Dr. Fouzul Kabir KhanManaging Director & CEOInfrastmcture Development Company ULmitedIDB Bhaban (6 * Floor)Ef8-A, Begum Rokeya SharaniSher-e-Bangla Nagar, Dhaka 1207

Subject: EIA and RAP for the AIES Meghnaghat 45OMW Power Projert

Dear Sir,

We refer to your email dated December 23, 2000 in connection with processing the EIA andRAP for our Meghnaghat Power Project. We confirn that we concur with the suggestionsput forvard by yotu in the above email and will take necessary actions in this regard.

As an immediate measure to deal with cases of impoverishmcnt and hardship anong theaffected landowners, we have started talking to each affected family and finding candidatesfor temporary employrnent in construction of the project. We believe that providing jobs in

_ construction is the most effective measure to prevent any deterioration of the living standardof the affected landowners. We will also expedite the training program conumitted in theRAP to find altemative employment for the affected family mnembers in various industries as

*w° well as temporary employment in construction of the projecL

We will bring the issue of under-compensation to the attenion of BPI)B with the proposalof applying some lease fees towards mitigation of the hardship of the affected landownersand pursue the case with BPD1I expeditiously.

With regard to in-country disclosure of the EIA and RAP, we have placed one complete setof the EIA document including the RAP at local Union Parishad Office and another set atthe PAP liaison Committee Office, for commets of the visitors and have notified in twonational dailies to that effect Copies of our notificadons are enclosed for your informationand record.

Yours sincerely,

ijuMahtab Uddin Ahmed *Project Engineer

Cc: S. Vijay Iyer, South Asia Energy Division, The World Bank (Fax: +1-202-522-2427)Jitendn Shah, Environmental Expert, The World Bank (Fax: +1-202-522-2427)Warren Waters, South Asia Social Devclopment Unit, The World Rank ((Fax: +1-202-522-1662)

InAR Rh3hn P Flnur MA. Beoum RokeYa Sharai, Sher-e-Banga Nagap. aikaA1207, Bangladesh. Tel: 88"-9132361-1, Fax: M2-9132359

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The Daily IttefaqJanuary 1, 2001

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ImatAssessment) O*4 -fR* W AOf*~¶~1~ILs8to CR0,410 qn t an CNaqxf fti5 m, ("O""¢W) -mirgo C-t c" -sr , 7fWt4 vFic 'Y-T, (c;rwu n t

ZMM zw-1t$ .11v1 :1ut$%\ C--T i:I- E z 14iW. -tv "n." gfe T1311" (Environmental

Imipakt Assessment) af~ fM 9 %i; gfm lqfX 1 .~~'k' F- wN* 5f7im f4~ qP1 (miim191 -CV

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The Daily StarJanuary 1, 2001

_ I

| The GC-lobal Power Comnpany. .

Notice for Release of the Environmental ImpactAssessment (EtA) Report on the Project

People of various professions, land owners. and other local andregional stakeholders, who have been affected, or believe or havereason to believe that 'they may also bc potentially affected by the450 MW AES Meghnaghat Power Prject ("Project") now underimplementation at Mouza Char Ramjan Sonaullah, in SouargaonThana under Narayanganj District, are informed by this notice thatthe Environmental Impact Assessrm".nt ("EIA") Report on theProject has been made available for their access at the Offices ofPirojpur Union Parishad and Liaison Committee of PAPs at TollPlaza of Meghna Bridge. for a period of sixty (60) days from 1January 2001.

Interested persons may visit either of the two locations in anyworking day during that 60 day period from 9:00 AM to 5:00 PM toread the EIA report, and write down their comments on the Projectin the register kept there for this' purpose. The Project sponsor willbe pleased to receive any comments, suggestions, and constructivecriticisms on implementation anFbperition of the Project.

AES MEGHNAGHUT LIMITEDe,--- -- - -- --- -- --- --

Govemment of the Peoples Republic of BangladeshOffice of the Deputy Director

Department of Environment, Dhaka DivisionE-16, Agargaon, Sher-e-Bangla Nagar, Dhaka-1 207

Memo No. Environment/DhaBi/2675/325 Date, Dhaka: 01/0312001

Mahtab Uddin AhmedProject EngineerAES Meghnaghat LimitedIDB Bhaban, E/8-ABegum Rokeya SharaniSher-e-Bangla Nagar, Dhaka-1207

Subject: Regarding approval of EIA Report.

Reference: Your application dated 2311/2001.

With reference to the above mentioned subject and reference you are hereby informedthat, the application submitted by you was sent to the meeting of the Committee forEnvironmental Clearance for kind consideration. After elaborate discussion in themeeting on the subject, decision was taken to send you a letter with instruction for takingup the following actions:

a) You have to take up necessary actions immediately to prepare an EIA Addendumwith the information received so far, in response to the advertisement published byyou in the national dailies on 1 January 2001 for receiving Public Opinion.

b) The mentioned EIA Addendum has to be submitted to this office for approval, afterits preparation.

c) Next action will be taken by this office after receiving and reviewing the EIAAddendum.

With instruction of the Authority-

Signature

(Mahmood Hassan Khan)Deputy Director (Technical)

Copy: for kind information.

1. Director General, Power Cell, Kawran Bazar, Dhaka2. Personal Secretary to the Honorable Secretary, Ministry of Energy and Mineral

Resources, Bangladesh Secretariat, Dhaka

AES Meghnaghat Limited

Januay 9. 2001

Dr. Fouzl Kabir KhanExecudve Dirctor & CEO

frasuuctre Development Company LrimitedIDB Bbaban (61I Floor)ElS-A, Begum Rokeya SbaraniSbeh-e-Bangla Nagar, Dbaka 1207

Subject: Response to World Bank's Comnents Dated October 5. 2000 on the EIA for theMeghnaghat Power Project

Dear Sir,

We refer to your queries regarding incorporation of the comments from the World Bank and Il)COLin the final EIA report for Meghnaghat Power Project. Our responses to the comments are attached.

Please note that the comnents were received on October 8, 2000 whereas the EIA report wasfinalized in September 2000. However, many of the comments were continuation of earliercomments and have been reflected in the final EIA and are shown in the attachments.

The draft repoTt on the study of alternative discharge of hot cooling water into the Mcghna River via_t^, embedded pipe, shows that this alternative is a better option than discharge via open canal as far as

the environmental inpacts aconcerned and is technically and economically feasible. We willforward the final report to TDCOL and the World Banrk for review as soon the report is issued.

With regard to the associated facilities, AES can not undetake the responsibility of preparing EIAfor these facilities implemented by other govermment agencies. However, we will keep track of ElA'sprepared by the concerned agencies and will take up with appropriate authorities mitigationmeasures, if any, identified in these reports.

We have also committed to a new survey for establishing the baseline of fisheries in the MeghnaRiver in front of the project Site and following up the issue of unplanned developments in theMegimaghat area with the Govenment of Bangladesh and the Department of Environment to avoidover crowding and prevent deterioration of the local environment-

In addition, we also undertake to work closely work with IDCOL and the World Ban on theremaining comments, which could not be incorporated in the final EIA.

Yours sincerely,

Project Manager

Cc: S. Vijay Iyer, South Asia Energy Divisiou The World Bank (Fax: +1-202-522-24Z7)Jitendra Shah, South Asia - Eovironm Sector, The World Bank (Fax: + 1.202-522-1664)Waaen Waters, South Asia Social Developmeat Unit, The World Bank ((Fax: +1.202-522-2427)

I Dhban, 5 Fbor, ESA 5egwn N ot kra Shw. S* *ang Na9a, O9ka-l?, BanUadesh. Tel: 8O2.R1323M4-, Fax: 824913239

-_ c bS ~* __ r _|1) 9 I Ir,s ~J' L. /*_sJ42 Ad I | J NI. I :IAd LI.JJ

r]j - IWRf4SKTURE DEVELOPMENT COMPONY UMNIED1DB Bhaban, 6th floor, Agargaon, Sher..Bangla Nagar, G. P. O box- 619, Dhaka-1207, BangladeshPhones: 811i235, 8117528, Fax: 880-2-8116663, a-mail: idcol@dhaka.agnlcoom

Ref: IDCOL(Meghnaghat/2001l51 Januay 18, 2001

Mr. Scott KickerManaging DirectorAES Meghnaghat, Limited1DB Bkaban (50m Floor) E/8-A, Begum Rokeya SharaniSher-e-Bangla Nagar, Dhaka-1207

Re: IDCOLs lettes dated June 17, 1997 and January 31, 2000

Dear Mr. Kicker:

In continuation of the above referenced lettes and matters related thereto, I am pleased toinform you that IDCOL Board has approved a total loan of US$80 million to ABSMeghraglat Limited ("AESMIL") to permit it to build, own and operate a 450 MW gas-firedpower generating plant. IDCOL's loan has two tranches: a US$20 mnillion senior loan andUS$60 million tranche as detailed in draft term sheet delivered by Lenders Counsel, Allenand Overy to AES Transpower Private Ltd. ("ARS") and its solicitor Slaughter and May("SM") pursuant to fornal request made by the latter on Noyember 20, 2000 vide letterreference SP003675.856

The Board approval is subject to the following additional conditions:

1. Execution of a term sheet between the lenders and AESML materially along the lines ofthe draft term sheet mentioned above;

2. Finalization of satisfactory project documentation including IDCOL loan agreementssubstantively in line with the executed term sheet mentioned in item (1);

3. AESML will be responsible for implenenting the mitigation and management plansdescribed in the Enviromnent Assessment ("EA") the Social Inpact Assessment C(SIA")and related management plans,'including the Rehabilitation Action Plan ("RAP"). Inaddition to the management measures contained in the EA and SIA document datedSeptember 2000, AESML will implement the following additional management plans:

* Measures to maintain the livelihoods of affected landowners by (a) creatingtemporary employment opportunities; and (b) ltaining program designed to assistthem in finding alternative employment;

Preparation of a inal report on the study of altenative discharge of hot coolingwater into the Meghna River, for joint review by IDCOL and IDA;

Is11 2001 II:

VU--J

INUFRTRCrURE DEVELOPMENT COMPENY UMITED* OIDB Bhaban, 6th ?loor, Agaraon, Sher-e-Bangfa Nagar, G. P. 0 Box 619, Dhaka-1207, Bangadesah

Phones , 8111235, 8117526, Fax: 880-2.8116663, e-mail: idcol@dhaka.agnl.com

* Preparation of a new map, to be updated yearly, the purpose of which is to'recondthe progressive development of the Meghnaghat area and provide assistance to theDepartment of Environment in issuing environmental clearances for newindustries;

* Provision of assistance to TITAS, the gas supplier, for preparation of a full ETAfor the proposed gas supply pipeline; and

* Creation of a new baseline survey on' the fish species available in the Megmnariver up to 1000 m upstream, and 1000 m downstream, from the proposed projectsite before start of main construction to be updated semi-annualy durng theoperation period to record continuing impacts.

The above arrangements should be formalized in EA volumue 1-Main Report, Sections 5and 6, with the amended document submitted to our office by February 15, 2001.

4. AESML will inform IDCOL about the results of its systematic and expeditious follow-upof the issue of under-compensation to affected landowners by Financial Closing.

Sinclm y

Dr. M. Fouzul Kabir KhanExecutive Director and CEO

Copy:

Dr. Masihur RahmanSecretary, Economic Relations DivisionMinistry of Finance

Mr. Frederia TempleCountry Director, World Bank

Mr. Alastair J. McKechnieDirector, Energy Sector Unit, South Asia RegionWorld Bank

ek.5/ki4/E1i RE1:115 RES HARIPUR PUT LTD. 4 519 836 2493 NO.346 P03

AES Meghnaghat Limited

25 February 2001 N.

The Managing Directorritas Gas Transmission & Distribution Co. Ltd.Titas Gas Bhaban105 Kazi Nazrul Islam AvenueKawran Bazar, Dhaka 1215

Subject Environmental Impact Assessment (EIA) for Gas Transportation Faclities ofTitas

Dear Sir:

In accordance with Clause 1 1.1 (b) (iii) (B) of the Gas Supply Agreement signed betweenT,tas Gas Transportation and Distribution Co. Ltd. ( M Ttas) and AES Meghnaghat Urmited('AESM") on July 29, 1999, Titas has made the covenant to the effect that it shall design.construct, complete, operate, maintain (either by itself or through experienced andqualified third party contractors) and own the Transportation Facilities and any and alladditionally required facilities, under the laws of Bangladesh and (if not inconsistent.therewith) the Environmental Guidelines. In relation to the GSA the Laws of Bangladeshmeans all laws in force in Bangladesh and includes all rules, regulations. orders,directives, notifications made or issued by any competent authority pursuant to or underany such law.

~I As per the Environmental Conservation Rules 1997 made under the EnvironmentalConservation Act 1995, construction, reconstruction or extension of any gas distributionline is classified as 'Red' category project for which the sponsor shall undertake an EIA

i2G Pam Cospu study and submit the EIA report to the Department of Environment (DOE) for obtainingenvironmental clearance for the gas distribution line project.

We will appreciate if you will let us know the progress of the EIA for the-TransportationFacilities and other additionally required facilities sponsored by Titas to supply gas to theAES Meghnaghat 450MW CCPP Project. If such EIA is not yet undertaken, we requestyou to do so as soon as possible to meet your obligations under the Laws of Bangladesh.

understand that all the land required for construction of the 0.5 kilometer long*;U <vdEypiline and the valve station will be acquired by Titas under the Laws of

,' angladesh. Therefore, your EIA shall also identify the social impacts of this landa c quisitsh and address them as per the Laws of Bangladesh. We are wilting to provide

'essi kYs assistance and cooperation to Titas for completion of the EtA for your\- ' n nsp&ration Facilities and other additionally required facilities.

Sincerely.

Managin Director .-.- ' -4,)

Cc: Secretary, Energy Division, Ministry of Energy and Mineral Resouroes. GOSecretary, Power Division, Ministry of Energy and Mineral Resources, GOBChairman, Bangladesh Oil, Gas and Mineral Corporatiop

..-

IDR Bhaban 5' Flrnr F/R-A. Beoum Rnkp*rn Sharard. Sher-e-Bannob Naoasr. Dhaka-1207. BanaIar3es¶.. rP:B802-913Z 6i-7. Fax: 88B-2-9132359

--- --- --- I

-es 2 e8130388D-2-813031 TITAS W 1S

TITAS GAS TRANSMISSION & DISIBUTION (A COMPANY OF PETROBANGLA) I .-

"¶taa .Oa& Bhaban', 106, azi Nmul Isam Avnue, Kavmawn Eaar ComeielS Area, Bhak-121. gesh

Fax ; 880-2411301, 88.2-9120513 PABX: SWI&S842E-mal titnsas~boUeco.m .._tf

- ' - WY F". -8t}'

Ref: BCRMSIAESH/011/ 0 March 2001

AP-S Meghnaghat Ltd. IDSB Bhaban (5tl floor)E8-A Rokeya SharaniSher-e- Bangia Nagar

(haka-1207.Fax No. 9132359

Attn. Mr. ScottKickerj, Managing Director.

Subo: CEnvironmental Impact Assessment (EIA) for G;as

Dear Sir,

Kindly refer to your. letter of 25 February 2001 on the above subject Whileappriciating your concern for the ETA, We would recall with please your assistanceprovided for Haripur 360 MW CCPP and would expect now the similar assistance. Thiswould probably be helpfuli hr smooth Implementation of the project including the gastransportation facilities and" the station,

Hope to get necessary assistance from you end and to provide from our endany administrative support for the EiA on the portion of pipeline and station asmentloned.

Thanking you :

: . 'h~~~~~~ours f

I \ b -. LR 2,Xl 81 M4anur Mhed lrakkder ............ \Al~~~~~~~G (OpeatiG^oon) -:b;.

, - . ~~~~~PrDjec:t Manqetlgtr Ulqf

*~~~~~~~~~~~~~~~~~ ~ -, - -' - -_4 - - - -

.2~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

-.---. ~~~ - . .

Government of the People's Republie of BangladeshDepartment of Envirmnt

E16 Agargao'tShere--Banglanawr, Dbaka-1207'

Meo-N,o ParibWJDb674?U 1 93 Dat

Sbjec Approval of the Environmental Impaet Assessment (EIA) Report on A2ES Mcgua2gb2t 450MW Combined Cycle Power P)ant Project

R srce ) Your Application Dated November 08,2000b) DOE's Memo. No. Pagtibesh/Dhabi/2674I202 Dated 18.01.2001c) YoUr Application Dated 11.03.2001d) Minutes of 2 1g MUeting of he Envionmental Cleamae Committe

%ith regard to the above mtoned su~je and references the underzigned is directed to inform approvalof Evironmntal Impact Assesment (ELA) Report on AES Meghnagha 450 MW Combined CyclePower Plant Project under the tenns and conditions as follows:1. The proponent shall be ablk to open Letter of Credit (i/C) for importable machinery, which Will

include a list of Machinery concerned/related to the installation of the Effluent Treatment Plant (ETP)2. Upon completion of the installation of ETP and implementation of tbe mitigation measres suggested

in the EIA the proponent shall apply for Environmental Clearance.

3, The proponent shall not be able to obtain Gas connection, start Trial Production and operation of theprojec without having Environmental Clearan=c.

4. -he proponent shaUl submit the following information/docunments along with the Application forEnvironmental Clearance:

a) Detail drawing, design and description of the Effluent Treatmcnt Plant

b) The presence of Chromrium (Cr) has bten shown in the EIA report The sowce and the description ofttment, liqble for Chromium should be submintted.

5. The updated progress report of the implenentation of the mitigation measwes has to be submithed ona niontbly basis to concerned DOE divisional office and head office simultaneously.

6. Any activity or process of the project shall not pollute the environrnent beyond the limits existingunder the DOE nrles and regulations on the date hereof.

7. All wases generated by the project that require treatment under the DOE rules and regulations on thedate hereof shall be collected or treated in a planned manner, and it must be ensurd that tbeseoperations are perfonmed in a manmer appropriate to health and envirownent

8. If any legitimate complain is made in fiture regarding pollution of the environnent beyond thePermissble limits due to the project, and if this is proved to be true by this depat t, then yourorganization will be required to take reasonable aod appropriate contrnla correction easures.

9. Without prior approval of this department, no modification can be nmade to the information submittedksuch as location of the project, production process and production capacity.

I0. Enviromment conducive to good health and safety of the workers shall bc ensured within the plant.I1. A greenbelt shall be created by planting indigaeous and suitable fruit and wood yielding plat spees

and mDbes on all possible locations around the plantl

12. Necesry lega action would be takcn in case of violation of any of the above conditions.

(Mohamped Solaiman aldher)Assistant Diretor (Techical)andMember Secretary,Environmental Clearance Committee

Dirg torS Megbaghat Ltd

1DB Bualding (5* floor)E/8- A Sber-e-BanglanagarDhalca,1207.

CC.PA to the Director General, DOE

CZt DoonnEm CWwpvE & Iha4cftwdm

AES Meghnaghat Limited

2 Aprl 2001

Dr. Fouzul Kabir KhanExecutive Director & CEOInfrastructure Development Company LimitedIDB Bhaban l6e Floor)E/8-A, Begum Rokeya SharaniSher-e-Bangla NagarDhaka 1207

Reference: IDCOL's letter dated 18 January 2001 on the EIA

Dear Sir

We refer to Clause No. 3 of the referenced letter where AES Meghnaghat Limited has beenasked, among others, to carry out a new baseline survey on the fish species available in theMeghna River before the start of main construction and updating the survey results semi-annually.

Please be informed that the baseline survey on fisheries will take approximately ten monthsto capture the seasonal variation in fish composition and catch rates in the Meghna Riverand will cost around USS 50,000. Each monitoring survey is expected to take almost thesame amount of time and resource, as the original baseline survey. Therefore, updating

^ the baseline data semi-annually will not be practicable and the results will be difficult tocorrelate with the baseline data. We therefore propose to update the baseline data once

sa cO¢ every two years to monitor the continuing impacts during operation of the power plant

Please further note that construction works of the power plant is already in progress and thebaseline survey has to be carried out during construction. We do not think that constructiDnactivities will have any material impact on the baseline considering the size of the river.study area and the fact that there will be no discharge into the river before commissioningof the plant However, we confirm that the baseline fisheries survey will be completedmuch ahead of commissioning of the plant.

We therefore request you to amend the requirement of your proposed management andmonitoring plan for fisheries according to our above proposal.

Yours sincerely,

Mahtab Uddin AhmedProject Engineer

Cc: S. Vijay lyer, South Asia Energy Division, The World Bank (Fax: +1-202-522-2427)Jitendra Shah, Environmental Expert, The World Bank (Fax: +1-202-522-2427)Warren Waters, South Asia Social Development Unit, The World Bank (Fax: +1-202-522-2427)

IDB Bhaban, 5" Flor. E/8-A, Bgum Rokeya Sharani, Sher-e-Bangla Nagar. Dhaka-1207, Bangladesh. Tel: B82.9132361-7, Fax : 880-2-9132359

AES Meghnaghat Limited

Apnl 4, 2001

The SecretaryBangladesh Power Development Board1 Floor. WAPDA BhabanMotijheel CA, Dhaka

Subject EIA for AES Meghnaghat 450MW Combined Cycle Power Plant

Dear Sir.

We are pleased to forward herewith a copy of the EIA Report including the RAP(Appendix K) prepared following the guidelines of the World Bank, the Asian DevelopmentBank and Bangladesh Department of Environment (DOE). The report identified theimpacts of AES Meghnaghat 450MW CCPP Project and proposed practical mritgationmeasures therefor.

The economic impact of land acquisition for the AES Meghnaghat Site is the permanentloss of income for the landowners, agricultural wage labourers, sharecroppers, etc. whoused to depend on such land for their livelihood. In various public consultation meetingsconducted with the stakeholders as part of the EIA, the landowners complained thatcompensation received from the Govemment of Bangladesh for land was low comparedto the actual market price and they have experienced a substantial decline in their lvingstandard.

To support the affected groups in restoring their lost income, we have oommitted toprovide jobs to the affected landowners and other PAP groups in construction of thepower plant and vocational skills training to the PAPs and their nominees with theobjective that they can find employment in altemative profession. We have providedtemporary employment to twenty-eight (28) PAPs in construction works and will try toemploy up to a rnaximum of 200 PAPs in construction works of the plant. We have alsoprovided training to sixty-three (63) PAPs and their nominees in ddving, welding, electicalwork and masonry. Another fifty-six (56) trainees are presenty receiving skill taining attwo institutes in Dhaka. Our target is to provide training to 200 to 250 PAPs and theirdescendants.

While our assistance to the PAPs will continue as per commitments made in the EIA, theissue of under compensation raised by the landowners must be addressed by BPDB whoacquired the land under Bangladesh law. The landowners raised this issue in differentconsultation meetings held at local, regional and national levels. This is documented inPage xx of the Executive Summary and in SecUon 7.4.5: Phase ll Consultation (Page155) of the main EIA Report.

To address the issue of under-mpensation, we propose that part of the lease rentpayable by the Project Company to BPDB may be distributed to the impoverished landowners so long as they are unable to restore their original living standard, The ProjectCompany has identified those landowners impoverished by land acquisifion for the AESMeghnaghat Site and will forward their names to BPDB if requested.

IDB Bhaban, 5 Floor, E.A, Begum Rokeya Sharai, Sher-e-Bana Nagar. Dhaka.1 207, angladesh. Tel g8802-9132361 -7, Fax: 85-2-9132369

We look forward to your response to the issue of under oompensation and the means ofritigation induding the one proposed above.

Yours sincerely,

U.WMahtab Uddin AhmedProject Engineer

Attachment One copy of the EIA Report dated September 2000

Copy to (without attachment):

Seretary), Power Division. Ministry of Energy and Mineral ResourcesChairman, Bangladesh Power Development BoardDirector, IPP Cell, Bangladesh Power Development BoardProject Director. Meghnaghat Power Project

Summary of Comments from the Reviewers of the EIAReport on AES Meghnaghat 450 MW Power Plant

51. Name and Address of CommentsNo. the Commenter1. Md. Ishaq Ali 1. The EIA report is in English. Bengali translation

Village : Tangar Char should be made available so that the general public ofGazaria, Munshigani the locality oan review the report and comment on Rt

2. Md. Zahid Alam 1. Requested for Bengali version of the EIA report.Village: Islampur 2. Requested to ensure pollution free environment,Sonargaon, Narayanganj especially pollution free air for breathing.'

3. Requested for tree plantation in the vacant spaces in_ ________________________ the site.

3. Zalil Hossain 1. Requested to ensure pollution free air.Village: Chai Hissa 2. Requested to ensure that no harm is done to theSonargaon, Narayanganj. locality.

3. Requested for employment of the people from the_ ______________________ locality.

4. Abdul Kader 1. Requested to ensure pollution free air.Village: Dhakargaon 2. Requested for thick plantation In the plant site.Hasanpur, Cornilla 3. Requested for employment for the people of the_____ _________________ ...... locality.

5. Md. Rana Ahmed 1. Requested to take necessary measures so that the airVillage: Hoglakandi of the locality is not polluted.Gazaria, Munshiganj 2. Requested for4ree plantation.

3. Requested for employment of the people who losttheir land to the plant site and who used to cultivate

_ the land as sharecroppers.6. Md. Mukhter Hossain 1. Requested AES to be concerned so that the air of the

Village: Soya Hissa locality is not polluted forever.Sonargaon, Narayanganj. 2. Requested for plantation of trees to ensure clean

environment3. Requested to arrange employment for the peoples ofthe locality

7. Md. Sagar Hossain 1. Requested for ernployment of sharecroppers andVillage: Islampur lessors of the plant Site land.Sonargaon, Narayanganj 2. Requested AES to ensure pollution free environment

during the operation period of the plant.3. Requested for plantation of trees to ensure balancedenvironment

8. Md. Asheq Ali Bhuian 1. Drew attention to the low pay in the construction jobsVillage: Dudhghata at the plant site and the high cost of travel for going toSonargaon, Narayanganj work at the plant site due to lack of easy access to the

site. Requested for a gate with securnty at the North -west corner of the plant site for the sake of minimizingtravelling cost and time of the people of Dudhghatawho are working at the construction site of the plant.

2. Requested for a gate at the north-west corner of theMeghnaghat Site for exit of the workers returninghome from work late at night to avoid the long wayalong the highway where they -et robbed of money.

9. Md. Ali Hossain Bhulyan 1. Expressed that he did not get fair compensation forVillage: Dudhghata the land he lost at the plant site.Sonargaon, NaraYangani 2. Now he is unemployed and asked for employment at

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the construction site of the Plant.3. Complained that people who are not PAPs are gettingjobs at the plant site.4. They are in grave financial hardship and asked fortheir employment at the construction site of the plant.5. Asked for a gate at the north-west comer of the sitefor easy access.

10. Hasan Master 1. Complained that AES is not keeping commitmentsVillage: Char Goaldi, made at the PCDP meetings.Mongalergaon 2. A gate at the northwest corner, as commftted by AESSonargaon, Narayanganj at the PCDP meetings, has not yet been built.

3.A road to the highway was also committed and has notbeen realized.4. Employment for the PAPs at the plant site is not ofsatisfactory level.5. PAPs have not been taken care of by AES as hadbeen committed.6. A school to be built at Islampur village, as committedby AES, has still not been buil1.7. It seems that Hyundai is all In all. AES has noauthority to provide jobs to the PAPs In the constructionof the plant. Otherwise situation would have beendifferent.8. Lastly requested for job for the PAPs at theconstruction site of the Plant.

11. Md. Asheq Ali Bhuiyan 1. None of our appeals to AES has been honored so far.Village: Dudhghata 2. Requested for drinking water arrangement for theSonargaon, Narayanganj PAPs working for construction of birbed wire fence on

both sides of the Demised Corridor directly underproject sponsor.

3. Asked for a gate at the northwest comer of the site forthe convenience of the local people who works at the

l ___ _______________________ construction Site of the plant12. Md. Shamsul Huq 1. Requested AES to ensure pollution free air.

Village: dudhghata 2. Requested to take necessary measure so that the fishSonargaon, Narayanganj population of the Meghna rver is not adversely

affected by the discharge into the river from the plant.3. Expressed concern regarding skin disease due to

bathing in the river water if the water of the river ispolluted by the discharge from the plant.

4. Expressed concern over anticipation of loud noisefrom the operation of the plant.5. Requested to ensure pure water and air duringoperation period of the plant.6. Requested to take care of the dirty and warm waterfrom the operation of the plant.7. Requested for gate at the northwest corner of theplant site.

Requested for job at the construction site for the ablePAPs or their spouses.

13. Hasan Master Requested for early implementation of the gate at theVillage: Mongalergaon northwest corner of the plant site, a road fromSonargaon, Narayanganj Ganganagar to Islampur crossing the access road to

the plant and paving the road, as committed by AESat the PCDP meetings for the project

_ 2. Asked for jobs for their children at the prolect site.

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14. Awal Hossain 1. Regretted that they are not getting any direct benefitVillagelslampur from the power plant being sited at their locality.Sonargaon, Narayanganj 2. Asked for job at Plant site for sustaining their

livelihood.

15. Abdul Ali 1. Expressed concern over their ignorance regarding theVillage: Islampur level of air pollution that will be caused by theSonargaon, Narayanganj operation of the plant.

2. Requested AES to take all necessary measures tokeep the air pollution free. And suggested for treeplantation as a mitigating measure to minimize airpollution.

3. Asked for early implementation of the road and theschool at Islampur as committed earlier by AES.

4. Asked for employment of the unemployed persons ofIslampur village.

16. Taroni Mohan Sarker 1. Suggested that AES should monitor and takeBlock Supervisor, Perojpur necessary action if necessary to mitigate the pollutionUnion Parishad Office. created by the waste discharge from the plant into theSonargaon, Narayanganj river. Also expressed concem regarding the harm of

these wasle discharged into the river, on the fish ofthe river and the crops.

2. Requested AES to ensure that the canals around theproject site are not filled in.3. Requested for job for the landowner PAPs of the

project to mitigate the potential impovenishment due tothe loss of land to the plant site.

4. Suggested plantation on the unused land of the plant_____ __________________________ site.17. Taleb Uddin Shah 1. Expressed concern over the effect of the pollution

Village: Islampur, caused by the operation of the plant on the publicSonargaon, Narayanganj health of the locality.

2. Asked for measures to prevent any kind ofenvironmental pollution.3. Expressed concern over the possibility of adverse

effect on the fisheries of the river caused by thedisposal of waste materials into the river from theoperation of the plant.

4. Asked for employment of all categories of PAPs of theProject.5. Suggested plantation at both within and outside of theplant site.8. Requested for setting up of deep tube wells at the

nearby villages of the plant site to ensure safedrinking water for the peoples of the area.

18. Shah alam 1. Regretted that he could not read the EIA report as itVillage: Islampur was in English.Sonargaon, Narayanganj Requested for supplying Bengall version of the report

2. Asked for job for the jobless peoples of islampur wholost all their land for the power plant and also for thosewho used to sell their labor working at the land ofothers.

3. Requested for ensuring that the environment is notpolluted as committed by AES during the PCDPmeetings.

19, Sirajul Islam 1. Expressed his deep appreciation for building theVillage: Piroipur power plant at Meghnaghat. Expressed anticipation

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Sonargaon, Narayanganj that establishment of the plant will meet the Electricityshortage of the country in large extent.

2. Requested to ensure that the waste from the platoperation do not pollute the environment.3. Requested for a gate at the Northwest comer of the

plant site for the benefit of the villagers of Dudhghata,Mongolergaon and Korbanpur.:

20. Alhaz Sirajul Huq Bhuian 1. Appreciated the Govemments initiative to build aChairnan, Perojpur Union power plant at Meghnaghat.Parishad, Sonargaon, 2. Expressed concem over environmental pollution theNarayangani waste material discharged from the operation of the

power plant f3. Commented that AES should consult experts, both

local and foreign to design the environmentalmonitoring program and mitigating measures.

4. Asked for employment on priority Basis of affectedpeoples due to land acquisition for the power plant5. Requested for a gate at the north west comer of the

project side for the convenience of the people ofnearby Villages.

6. Solicited for the early implementation of the Schooland road at Islampur and a road at Ganganagar.

21 Md All Hossain Bepari 1. Thanked AES Meghnaghat Limited for taking up theVillage: Kurbanpur project.Mongolergaon, 2. Alleged that AES has almost filled up the branch onSonargaon, Narayanganj the Meghna river on the northwest part of the plant

site, which has caused stoppage of fishing in thatbranch river.

3. Expressed concern that large amount of waste will bedischarged from the power plant which will cause theriver water unsuitable for domestic use and will bedeterrent to the existence of the fish population of theriver.

4. Asked for considering the affected peoples for job in_ _______________________ the construction site of the plant.

22. Md Alamgir Hossain 1. Expressed realization that implementation of theVillage:Char Baiddanath project will reduce the power shortage of the countryBalidderbazar, sonargaon, in large extent.Narayanganj 2. Requested AES to be concerned for the potential

pollution of the river water that might occur due to thedischarge of the waste material from the operation ofthe plant into the river.

3. Requested that the affected people should get priorityin the employment with the construction contractor ofthe Proiect.

23. Md. sadar All 1. Appealed for job as all the land he had was acquiredVillage: Korbanpur by GOB for the power plant.Sonargaon,Narayanganj

24. Md. Mohsin Villafe: 1. Asked for early implementation of the school and theIsiampur road for Istampur Village as committed by AES DuringSonarqaon,NaraangAanj the PCDP meeting of the Project,

25. Mohammed Elahi 1. Requested for job with AES for the severely affectedVillage: Islampur peoles of Islampur who primarily depended on the landSonargaon, Narayangang of the power plat for their livelihood.

2. Asked for early implementation of the school as___________________ _= committed.