Annual Environmental Monitoring Report · 3 4. Hun Joon Kim 032 5054065 MGR, Envi & Chem/Elec. [email protected] 5. Neil Lawrence V. Miral 032 5054065/09228047058

Annual Environmental Monitoring Report

This report has been submitted to ADB by the Borrower and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

Project Number: LN2612/EI7303 Jan to Dec 2012

PHI: Visayas Base-load Power Development Project

Prepared by

KEPCO SPC Power Corporation

Cebu City, Philippines

Prepared by KEPCO SPC Power Corporation

Annual Environmental & Social Performance Report

For

The 2x100 MW Cebu Power Plant

Reporting Period: January – December 2012 Completion Date: 04/15/2013

2x100 MW CEBU POWERPLANT

TABLE OF CONTENTS

Page

I. INTRODUCTION 1

1.1 Background 1

1.2 Objective 1

II. ENVIRONMENTAL AND SOCIAL MANAGEMENT 2

2.1 ESPR Preparer 2

2.2 Environmental and Social Responsibility 2

2.3 EMP, SDP, and CSR Implementation 3

III. COMPLIANCE BY PROJECT WITH THE ENVIRONMENTAL AND

SOCIAL REQUIREMENTS AS SPECIFIED IN THE LOAN AGREEMENT 4

3.1 Compliance with Country Requirements 4

3.2 Compliance with Safeguard Requirements 5

IV. ENVIRONMENTAL AND SOCIAL PROGRESS OF THE PROJECT 7 4.1 Environmental Progress 7

4.2 Social Progress 10

V. SUMMARY OF SAFETY PERFORMANCE AND ANY

CORRECTIVE ACTIONS 13

VI. SUSTAINABLE DEVELOPMENT INITIATIVES AND

COMMUNITY RELATIONS 13

ATTACHMENTS

1. ECC and EMP Compliance Status

2. SDP and CSR Implementation Summary

3. Updates on Coal Dust Issue Corrective Actions

4. Cebu Power Plant’s Installed Pollution Control and Monitoring Equipment

5. Environmental Preservation Activities

6. IEC Activities

7. Resettlement Area Concreting Works Project Status

This page is intentionally left blank.

1

1. INTRODUCTION

1.1 Background

1. To address the looming power shortage in the Visayas region, KEPCO SPC Power Corporation (KSPC) undertook the construction of a 2 x 100 megawatts (MW) power plant project in Barangay Colon, City of Naga, Cebu. The project is standing in a 10-hectare land leased for 25 years from National Power Corporation (NPC). The power plant is utilizing imported sub-bituminous coal for its fuel at approximately 800,000 MT per year. The cooling system for condensers is once-through using the surrounding seawater, and the same is also used for the plant’s demineralized and service water needs having its own seawater treatment plant. The facility has virtually no effluents as its wastewater treatment system recycles the treated wastewater for plant service use.

2. The Cebu Power Plant is a clean coal power plant that employs the Circulating Fluidized

Bed Combustion (CFBC) technology. Clean in the sense that the system reduces Sulfur Dioxide (SO2), Nitrogen Dioxide (NO2), and Carbon Monoxide (CO) emissions due to the introduction of limestone in the fuel stream, staged combustion reducing operating temperatures, and fuel recirculation maximizing consumption respectively.

3. Construction of the project was commenced in 2008. Commercial operation of Unit 1

was achieved in February 2011 while that for Unit 2 was on May 2011. Power is delivered through 138-KV power lines to benefit the Visayas region directly.

4. The project involves 2 resettlements: a) in the leased property called Naga Land; and b)

along the Transmission Line (T/L) Project. As of the coverage period, all resettlement issues related to the Naga Land are all resolved. However, for the involuntary resettlement due to the T/L Project, three (3) expropriation cases are already issued with a Writ of Possession in favor of the T/L Project.

5. Meanwhile, a social analysis conducted by Transco, now National Grid Corporation of

the Philippines (NGCP), concluded that the proposed 138 KV T/L Project requires land acquisition and resettlement. The transmission line from KSPC’s Cebu Power Plant Project to the New Naga Substation affected 11 landowners, 1 tenant, 13 structures owners and 10 relocatee-households.

6. Environmental issues of the project come in different scales but the only validated issue

is that relating to coal and ash dust. With its area near the sea and the main road, and with a lot of residential houses around, the problem on dust is something that will persist every now and then. However, with its active Environmental and Community & Public Relations units, KSPC has so far controlled the situation and developed long term plans to manage if not permanently eliminate such major pollution occurrences.

1.2 Objective

7. The purpose of this Annual Environmental and Social Performance Report (AESPR) is to report on KSPC’s compliance with the agreed Environmental Management Plan and Social Management Plan including all other applicable environmental and social requirements of the power plant. The report shall also assess any preventive, control, or corrective actions implemented/proposed. The scope and coverage of this report shall include all phases of the project. The following are included:

• Contact information for responsible individuals

• Compliance by KSPC with environmental and social requirements

2

• Environmental and social aspects of the project under implementation

• Occupational health and safety performance and significant incidents

• Sustainable development initiatives and community relations 2. ENVIRONMENTAL & SOCIAL MANAGEMENT

2.1 ESPR Preparer

Report prepared by: KEPCO SPC Power Corporation

Telephone: +63-32-5054065

Email: [email protected] / [email protected] / [email protected]

Signature:

Report Date: April 2013

2.2 Environmental & Social Responsibility

8. The chart in Figure 1 describes the current organization of KSPC’s environmental, social, occupational safety and health organization. Since last January 13, 2013, KSPC has terminated its contract with the 3rd Party O&M Provider. KSPC now is directly handling the operation of the Cebu Power Plant.

9. With the supervision of the President and General Manager, a full time and permanent

Community Relations Officer is assigned to carry out the implementation of the Social

Development Program and the reporting on the social management practice and

compliance issues of the Project(s)/activity(ies).

10. Part of the changes, a separate Environmental & Chemical Department was organized. The department is directly involved with the operation of on-site monitoring equipment, laboratory analyses, and on-site program implementation reports. The department is also responsible in updating and implementing the Environmental Management Plan (EMP), Environmental Monitoring Plan (EMoP), and other necessary conditions or requirements to ensure that the power plant is in compliance to all applicable laws and regulations including commitments made to the financial institutions involved as well as provide means for all the operational aspects of the power plant to be sustainable.

The following are the Company’s Environmental and C&PR personnel:

Responsible Person Contact Information 1. Victorio B. Naval 032 5054065/09173225929

General Manager, C&PR [email protected] 2. Jasmin G. Suma-oy 032 5054065/09176646495

Community Relations Officer [email protected]

3. Anna Marie dela Peña 032 5054065/09333626657 Office Staff

3

4. Hun Joon Kim 032 5054065 MGR, Envi & Chem/Elec. [email protected] 5. Neil Lawrence V. Miral 032 5054065/09228047058

Environmental –SV [email protected]

6. Joanne Claire T. Supnet 032 5054065/09176380034 Environmental Engineer [email protected]

7. Gladys Auxilio 032 5054065/09224422725 Office Staff

FIGURE 1. Cebu Power Plant Environmental & Chemical, and Community & Public Relations Organization

2.3 Environmental Management Plan (EMP), Social Development Plan (SDP), and

Corporate Social Responsibilities (CSR) Implementation

11. KSPC’s on-site team ensures that the EMP, SDP, and CSR are implemented and

continuously improved. The organization is doing all the best to perfect its current long-term procedures and management systems in handling the environmental, social, health, and safety aspects of the power plant including the setting up of performance indicators to ensure improvement. Reports are also prepared to document monitoring, improvements, issues, and solutions on the related aspects.

12. Efforts have been exerted to formulate specific Health and Safety plans, and Emergency

Response procedures. Trainings and drills have been made on site to promote safety awareness. Workers are provided with the necessary health and insurance benefits including health monitoring programs.

13. At the beginning of each calendar year, C & PR prepares an updated Annual SDP and

CSR Program. Regular consultations with the host community/recipients of the project

are conducted to know their priority needs. Once a specific project is identified, an

internal approval is processed for the implementation of the project. A regular report on

President / CEO

Vice President

General Manager – C&PR

Community Relations

Officer

Office Staff

Envi Section

Supervisor

Envi. Engineer

MGR – Envi & Chem

Chemical Section (in-

house laboratory analysis)

Office Staff

4

the implemented projects is submitted to the External Affairs Department. The CRO is

also coordinating with NGCP and NPC with regards to the monitoring of the status of the

resettled families in the Naga Land and the status of the ROW cases for the T/L Project.

14. For the Environmental aspect, the EMP including the monitoring plan is continuously reviewed internally and by KSPC’s Multi-Partite Monitoring Team (MMT). Improvements are decided and carried out as soon as internal management approval is achieved. On-site environmental monitoring is being made by E&C Department. In-house laboratory testing of water effluents and coal ash are also being done. Third party environmental monitoring is also being conducted particularly on parameters that are outside of the power plant site. Results of all environmental monitoring are also reviewed by the MMT for further action or recommendations. Environment preservation activities such as tree planting and coastal cleanup are done every year. Long-term programs on both are yet to be established.

3. COMPLIANCE BY PROJECT WITH THE ENVIRONMENTAL AND SOCIAL

REQUIREMENTS AS SPECIFIED IN THE LOAN AGREEMENT

3.1 Compliance with Country Requirements

15. KSPC is exerting the best efforts to effectively comply with and monitor applicable

national and local environmental, social, occupational health and safety laws and regulations. This includes all the conditions in relevant permits / clearance documents issued by all concerned Governmental Authority handling the environmental and social aspect. In December 5, 2005, the project was granted its Environmental Compliance Certificate (ECC) by the Department of Environment and Natural Resources – Environmental Management Bureau (DENR-EMB). The conditions stated in this document are those that must be complied with, in consideration with the timing and related circumstances, by KSPC for the Cebu Power Plant project to be implemented. Aside from its ECC, the following are documents, laws, and/or regulations that KSPC must comply with:

a. Environmental Impact Statement (EIS) [DENR-EMB] b. Certificate of Registration (COR) [Board of Investments, BOI] c. Permit to Operate (PTO) [DENR-EMB] d. Energy Relations 1-94 (ER 1-94) [Department of Energy, DOE] e. Toxic, Hazardous, and Nuclear Wastes Control Act (RA6969) [DENR-EMB] f. Clean Air Act (RA8749) [DENR-EMB] g. Clean Water Act (RA9275) [DENR-EMB] h. Ecological Solid Waste Management Act (RA9003) [DENR-EMB] i. All DENR Administrative Orders

16. The compliance status to the ECC, and EMP of the project summarizes KSPC’s

compliance to its environmental and social country requirements which is found in Annex 1. Though there are no concrete conditions on the social aspect indicated in these documents, KSPC is actively implementing its SDP & CSR Program and other community outreach projects responsive to the needs of the host community. From 2009 and 2010, when the power plant is still under construction, the company spent almost P 1 million for various community projects. Another P 2.8 million was spent in 2011 and 2013. Annex 2 presents the details of the implementation.

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17. Aside from its contribution under the SDP & CSR Program, KSPC is setting aside one centavo per kilowatt-hour of its electricity sales as financial benefits to the host communities in accordance with the Memorandum of Agreement it entered with the Department of Energy on October 7, 2007 pursuant to Energy Relations 1-94 as provided by the law. The Department of Energy conducts regular audit of the electricity sales of KSPC and coordinates with the company for the accrued financial benefits under the ER 1-94 Program that has to be remitted to the DOE for deposit in the established trust accounts as provided for in the approved MOA.

18. DENR-EMB Region 7 as well as the Local Government Unit (LGU) of Naga City conduct

surprise evaluations or inspections every now and then on the power plant’s compliance. A cease and desist order on KSPC’s coal unloading was issued by the City of Naga on November 13, 2012 due to the occurrence of fugitive dust pollution at the houses near the coal yard. The order was lifted two days after when KSPC implemented immediate control measures and issued long-term solutions as a commitment to the City of Naga. Updates to the implementation of the commitments are in Annex 3. For the other conditions, although not all are met at this moment, the company has provided valid justifications to the inspecting authority on the delay or inapplicability of such a condition.

3.2 Compliance with Safeguard Requirements

19. As a project financed by international lending institutions, KSPC sees to it that it is

compliant to the Lenders’ environmental & social policies and guidelines. Assessment for the coverage year provides that KSPC is exerting efforts to be in compliance with Lenders’ recommendations to adhere with the established performance indicators by KSPC. Table 1 describes these indicators as well as the compliance status of each.

20. ADB’s Safeguard Policies on Involuntary Resettlement was complied with in the case of

the resettled families in the Naga Land and the T/L Project. Proper compensation and assistance were provided to the concerned families to make sure they are in better condition before the project was carried out. These families continue to enjoy benefits from the company through the SDP & CSR Program and other community outreach program being implemented throughout the host community.

21. Environmental monitoring for the coverage period suggests that the project is generally

compliant with the applicable standards. On air quality, a significant finding would be the occasional high levels of ambient particulate concentration. However this occurrence is not frequent and can be attributed to other factors such as dust from vehicles in the highway and dust from the old power plant right across the street. More often than not, the wind directions indicated during these said exceedances imply that the Cebu Power Plant is not a possible source. KSPC is also expecting these occurrences to be further reduced with the implementation of its long-term plans in improving KSPC’s coal handling system.

22. No major issues are reported on the marine environment. Marine life monitoring was held for this year and no significant adverse impact was found. For ground water, most of the host communities’ water resources, near the sea and up on the mountains, have high dissolved solids. This is consistent with the background values found during the assessment stages of the project (before construction). This is probably due to salt water intrusion or the natural earth composition in the area. Based on KSPC’s monitoring, it is suggested that the ground water points monitored not be made for drinking as it has high bacterial activity probably due to domestic causes (High chemical oxygen demand and low dissolved oxygen). It must be noted that the Cebu Power Plant’s operations does not affect the ground water and depletion is not a concern as it uses sea water for its operations.

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23. The Cebu Power Plant has also contributed in terms of labor influx for the local and host communities. In 2011, approximately 45% of the Cebu Power Plant’s labor force is composed of locals from the host city. This is not yet including the manual laborers of the power plant’s contractors in which the majority are locals. Table 1. Safeguard Requirements Compliance Status (Key Indicators)

24. KSPC has effectively organized a team where all grievances and complaints are brought

for the company’s attention, discussion, and resolution. The Multi-Partite Monitoring Team (MMT) is composed of all concerned stakeholders majority of which are leaders of

No. Key Indicators Status of

Compliance Remarks

ENVIRONMENTAL SAFEGUARDS

1 Conduct of Environmental Impact Assessment

Complied. Done at the development phase of the project.

2 Public Disclosure of Environmental Assessment

Complied. Disclosure done through ADB’s website.

3 Establishment and implementation of an EMP

Complied. See Annex 2 for compliance status.

4 Establishment and implementation of an EMoP

Complied. See Annex 2 for compliance status.

5 Environmental reporting Complied. Quarterly reports submitted.

6 Use of pollution prevention and control technologies

Complied. See Annex 4 for the Cebu Power Plant’s installed pollution control and monitoring equipment.

7 Provision of a safe and healthy working environment for workers

Complied. See Table 6 for the Cebu Power Plant’s 2012 Safety Report. Emergency preparedness and response measures are in place and imparted to workers.

8 Proper and sustainable solid waste disposal

Complied.

Solid wastes are segregated and withdrawn by the Naga City LGU for proper disposal while coal ash (stored and freshly generated) will be recycled to promote sustainability.

9 Conduct environmental preserving activities or programs

Complied.

See Annex 5 for the related activities conducted by KSPC in 2012. Long-term programs will soon be established such as tree planting programs and energy saving programs.

10 Conduct Information-Education and Communication (IEC) activities or programs

Complied. See Annex 6 for IECs made in 2012.

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Lenders’ Recommendations (Adverse environmental impacts control, mitigation, and monitoring)

Complied.

a) Historical ash disposal sites are monitored and results are reported in the quarterly environmental reports.

b) Ash recycling implemented – stable disposal c) See Annex 3 for the measures made on the coal

dust issue.

SOCIAL SAFEGUARDS (Involuntary Resettlement)

12 Consultation with affected families, concerned communities and LGUs

Complied. Consultations were made during the construction phase of the project. Site visits are conducted to monitor the families’ conditions.

13 Improve and/or restore the affected families’ livelihoods

Complied. Monetary assistance and compensation were provided for the transfer of the relocated families to the designated sites.

14 Provision of physical or economical assistance to affected families

Complied.

a) Pathways in the area where the families were transferred were paved and the floors of some houses were cemented (See Annex 7).

b) Affected families are recipients to the company’s implemented SDP and CSR Programs.

c) Improvement to the families’ sanitary facilities were made.

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Provision of avenues or opportunities for the affected families to be alleviated from their underdeveloped status

Complied.

a) Members of the affected families are recipients to free skills training seminars and programs

b) Members of the affected families are intermittently hired as manual workers for contractual jobs.

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the host communities and related sectors therein. The MMT acts as the contact point and information sources of the local populace. Improvements and expansion of the MMT are among the future plans of KSPC. The Community Relations Officer (CRO) also acts as the front line in responding to direct complaints and grievances forwarded to the management. The Pollution Control Officer (PCO) as well as the other technical officers, supervisors, and managers coordinate and support the CRO in this undertaking. However, KSPC is still seeking for a better complaints/grievances management system. KSPC will report progress on the establishment of such plan in the next coverage period.

4. ENVIRONMENTAL AND SOCIAL PROGRESS OF THE PROJECT

25. The project is currently in the operations and maintenance stage. Changes in the project design and concerns on the ECC from the start of the power plant’s construction period up to the present are shown in Table 2. All of the project changes are properly assessed technically and environmentally, and communicated accordingly to DENR-EMB.

4.1 Environmental Progress

26. All environmental-related permits are properly applied for or acquired. Status is indicated in Table 3 and necessary renewals will be filed accordingly. Due environmental monitoring was also performed. Plant tours are continuously done to inform and responsibly educate the stakeholders surrounding the community on the whereabouts and updates of the power plant and its operation. Other activities such as tree planting are held to promote the company’s advocacy on sustainable development and environmental protection. Table 4 shows a list of the environmental activities conducted for the power plant within the coverage period and the dates when it was being made.

Table 2. Project Design Changes/Concerns on the ECC Conditions and Status Project Design Change or ECC

Concerns Status

1 Jetty extension The jetty extension design length was increased and

DENR-EMB approved it on July 31, 2009.

2 Ash Pond C relocation

Ash Pond C was moved from the Lot 2 area

(indicated in the EIS) to inside the Naga Power Plant

Complex and was approved by DENR-EMB on

March 16, 2010.

3

Reduction of Continuous Ambient

Air Quality Monitoring Stations

(AAQMS) from 4 to 2

Having assessed that the ECC condition on

establishing four (4) AAQMS stations is an

overdesign, DENR-EMB approved the reduction on

November 3, 2010.

4 Extension coal yard at Lot 2

A plan was communicated to DENR-EMB on the

construction of an extension coal yard at Lot 2. It

was approved on April 20, 2011 but was not pushed

through due to potential dust impacts.

5 Ash pond capacities deviation

The actual capacities of the ash ponds constructed

are greater than the capacity reflected in the

project’s EIS. Approval was not obtained within the

coverage period.

8

Project Design Change or ECC

Concerns Status

6 Construction of walling and

roofing of the open coal yard.

Construction of walling and roofing of the open coal

yard, to minimize dust pollution in the neighboring

barangays. To be implemented in 2013.

7

Development of Coal Yard

Extension at the back of the

existing coal yard

Continuation of the coal yard construction and

transfer the area from Lot 2 to the back of the

existing coal yard. To be implemented in 2013.

8 Continuation of the Ash Pond

Development

Increase capacity and area of Ash Pond B. To be

implemented in 2013.

Table 3. Environmental Permits Acquisition Status

Environmental Permit Permit No. Status

1 Environmental Compliance

Certificate ECC-0511-013-206 Acquired on 05-Dec-05

2

Permit to Operate (Air

Pollution Sources and

Control Devices)

TPOA-1-E-072230-0040

27-Dec-12 to 27-Mar-13

(Renewal Documents

Submitted 27-Feb-13)

3 Hazardous Waste

Generation Registration DENR-ID No. 07-22-1139

Acquired on 08-Jun-11

(No expiry)

4 Discharge Permit (Effluents) DP-12-E-072230-013

08-May-12 to 08-May-13

(Renewal documents

submitted 10-Apr-13)

5 CCO Registration

Certificate CCO-Hg-2011-07-22-001

Acquired on 10-Nov-

11(No expiry)

6

License to Handle

Controlled Precursors and

Essential Chemicals

(CPECS)

P6-03412001-R017-H

P5-IM-03412001-R011-H 16-Dec-12 to 16-Dec-13

Table 4. Environmental Monitoring, MMT, IEC, and Preservation Activities Activity Date Accomplished

1 Coal ash sampling and TCLP testing at ash pond Dec. 28, 2011

2 In-house water effluent quality testing at 3 locations Jan. 13, 2012

3 In-house water effluent quality testing at 3 locations Feb. 10, 2012

Naga City Mayor’s Office Site Visit and Audit Feb. 17, 2012

4 In-house water effluent quality testing at 3 locations Mar. 9, 2012

5 Ambient Air Quality and Noise Testing (grab sample) at 4

locations Mar. 23, 2012

6 Groundwater quality sampling and testing at 4 locations Mar. 23, 2012

7 River Water heavy metal content testing at Pangdan and Naalad Mar. 29, 2012

8 Seawater heavy metal content testing at Resettlement Area Mar. 29, 2012

9 Marine Water quality sampling and testing 5 locations Mar. 29, 2012

10 Water effluent quality sampling and testing at 3 locations Mar. 29, 2012

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Activity Date Accomplished

11 Water discharge temperature testing at mixing zone Mar. 29, 2012

12 Participation of Earth Hour Activity 2012 Mar. 31, 2012

13 In-house water effluent quality testing at 3 locations Apr. 13, 2012

14 Ambient Air Testing and Meteorological Data at 6 locations Apr .16-23, 2012

15 FDR Ash Landfill Facility Public Consultation Apr. 26, 2012

16 KSPC Ash Disposal Scheme Public Consultation Apr. 26, 2012

17 PNP Site Inspection – Application for License to Possess

Explosives & Explosive Ingredients May 4, 2012

18 In-house water effluent quality testing at 3 locations May 11, 2012

19 Fly Ash Testing for International Accreditation May 17, 2012

20 River Water heavy metal content testing at Pangdan and Naalad May 28, 2012

21 Seawater heavy metal content testing at Resettlement Area May 28, 2012


locations May 28, 2012

23 MMT Emergency Meeting May 28, 2012

24 Source Emission Monitoring Test May 29, 2012

25 In-house water effluent quality testing at 3 locations Jun 15, 2012

26 Coal ash sampling and TCLP testing at ash pond Jun. 28, 2012

27 River Water heavy metal content testing at Pangdan and Naalad Jun. 28, 2012

28 Groundwater quality sampling and testing at 4 locations Jun. 28, 2012

29 Marine Water quality sampling and testing 5 locations Jun. 29, 2012

30 Water discharge temperature testing at mixing zone Jun. 29, 2012

31 Water effluent quality sampling and testing at 3 locations Jul. 10, 2012

32 In-house water effluent quality testing at 3 locations Jul. 12, 2012

33 KSPC Tree Planting Activity (MMT) Jul. 13, 2012

34 In-house water effluent quality testing at 3 locations Aug. 10, 2012

35 KSPC Meeting with ADB Aug. 29, 2012

36 In-house water effluent quality testing at 3 locations Sep. 20, 2012


locations Sep. 28, 2012

38 Marine Water quality sampling and testing 5 locations Sep. 28, 2012

39 Groundwater quality sampling and testing at 4 locations Sep. 28, 2012

Water effluent quality sampling and testing at 3 locations Sep. 28, 2012

40 Coal ash sampling and TCLP testing at ash pond Sep. 28, 2012

41 Water discharge temperature testing at mixing zone Sep. 28, 2012

42 In-house water effluent quality testing at 3 locations Oct. 14, 2012

43 3rd Quarter MMT Meeting Oct. 30, 2012

44 In-house water effluent quality testing at 3 locations Nov. 6, 2012

45 MMT Executive Committee Meeting Nov. 13, 2012

46 River/Creek Clean Up Event with KSPC & MMT Members Nov. 17, 2012

47 MMT Emergency Meeting Nov. 29, 2012

48 In-house water effluent quality testing at 3 locations Dec. 5, 2012

49 RATA & COMS Audit of 2 CEMS Unit Dec. 21, 2012

50 Groundwater quality sampling and testing at 4 locations Jan. 3, 2013

51 Water effluent quality sampling and testing at 3 locations Jan. 3, 2013

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Activity Date Accomplished

52 Ambient Air Quality and Noise Testing at 4 locations Jan. 8, 2013

53 Marine Water quality sampling and testing 5 locations Jan. 8, 2013

54 Water discharge temperature testing at mixing zone Jan. 8, 2013

55 Ambient air quality monitoring at North Poblacion and Colon Real-time/Continuous

56 Perimeter noise measurement at guard houses 1 and 2 Real-time/Continuous

57 Emissions monitoring (CEMS) Real-time/Continuous

27. Much of the complaints received against the power plant are those pertaining to dust

emissions. Though there are other potential sources such as vehicle-based emissions, emissions from the nearby cement plant (4-km away), and emissions from the old Naga Power Plant right across the street, KSPC is continuously finding long-term solutions that shall ensure the public that the emissions are not from the power plant while implementing intermediate control measures such as water spraying and other material handling techniques. Construction of walling and roofing of the open coal yard was also done to minimize dust pollution of nearby barangays. The company is also in close coordination with the affected communities regarding this intermittent issue and is always ready to extend any necessary help.

4.2 Social Progress

28. Aside from addressing the impending power shortage, KSPC is also building a community and is helping create better lives for the residents. KSPC is implementing a Social Development Plan and Corporate Social Responsibilities (SDP and CSR) Program that is rooted from the principle of sustainable community development. This SDP & CSR Program is focused on Health, Education, Environment and Livelihood.

29. From 2009 and 2010, when the power plant is still under construction, the company

spent almost P1 million for various community projects Another P 2.8 million was spent in 2011 and 2013. These projects include the donation of equipment for the upgrading of the facilities of the city and barangay health centers. Medical and Dental Missions are also continually conducted to monitor the health of the community, especially of the children and elderly. In June 2011, KSPC started sending regularly a doctor to six barangays for free health check-up of the local residents. To further address the health needs of the residents, feeding programs and provision of vitamins supplements, as well as distribution of toothpaste and toothbrushes to day care and elementary students are also being done.

30. Acknowledging the importance of education to nation-building, KSPC has been supporting the public school through donations of computer, dictionaries and other reference materials; donation of book shelves, tables and chairs for the school library; sponsorship of athletic activities. Skills development training for the out-of-school youth and unemployed women of the barangay were also conducted under the Alternative Learning System Program of the Department of Education.

31. The Korean expats wives, through their personal contributions, have been extending

educational assistance to 3 Day Care Centers closest to the power plant. They entered into a Memorandum of Agreement with the LGU for the “Adopt-A-Day Care Program” in December 2009. Since then they have been providing funds for the improvement of school facilities. Among these are donations of karaoke system, cordless microphones & educational CDs; sponsorship of expenses for the graduation and participation in the celebration of Children’s Month, repainting of classrooms and donation of other educational resources.

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32. KSPC maintains good relations with its host communities by supporting and participating

in community events such as basketball tournaments during summertime; supporting the activities of the senior citizens, hosting of Children’s Party during Christmas and providing financial assistance for cultural activities for fiestas and foundation celebrations. On a regular basis, KSPC engage in productive conversations and interactions with the stakeholders that include the local community, to know their priority needs and to be able to better address these.

33. The SDP & CSR Program is not the only thing that the host communities are going to

enjoy. There are greater things to come for the continuing development of the community under the Benefits to Host Communities provided for in the Energy Regulations (ER) 1-94.

34. The ER funds from KSPC’s 200 megawatts or 200,000 kilowatt-hours generation facility

is estimated to be at least 14 million pesos per year. Thus, for 25 years of operation, these benefits can electrify several barangays, pave so many roads, and construct many water systems and other basic facilities. And because of this, KSPC shall be recognized not only as a top provider of electric generation in the Visayas but also as a strong partner in the continuing growth and progress of the community.

Table 5. Summary of the Implemented Major Community Relations Activities

ACTIVITY 2009 2010 2011 2012 TOTAL

Medical Mission 1 2 3 2 8

Feeding Program 1 1 1 1 4

Vitamins Supplementation 1 1 1 1 4

Distribution of Toothpaste &

Toothbrush 1 1 1 3

Skills Training Program 3 1 1 5

Donation of equipment for the

improvement of Rural Health

Center

1 1 1 1 4

Donation of Materials for the

improvement of school facilities 1 1 1 1 4

Tree Planting 1 1 1 1 4

Coastal Clean-Up 1 1 2

i. Progress on living condition of 17 Resettlement Families

35. To date, there are no outstanding grievances from the 17 resettled families in the Naga Land. The families said they are satisfied with their present location because this is very accessible to their source of living.

36. To date, there are no outstanding grievances from the 17 resettled families in the Naga Land. The families said they are satisfied with their present location because this is very accessible to their source of living.

37. The project for the concreting of the lot, where the houses of the residents are standing, the pathways and open spaces in the area was completed in November 2011 to protect the residents from direct contact with the land reclaimed with ash. The paving project

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included not just the 17 families relocated families but also all the houses of the now more than 40 families living in the area. Heavy metals monitoring at points in the surrounding sea water also indicate that the historical ash has not eroded to the sea.

38. Over the years the number of families in the area is growing because the original residents allow their relatives to stay with them while others even constructed extensions, if not new structures.

39. For their own safety, the barangay officials have advised the residents not to allow anymore relatives to come to the area. The barangay officials are also now closely regulating the construction of the additional structures because of the limited space.

40. The families in the area are among the beneficiaries of projects under KSPC’s Social Development Plan and Corporate Social Responsibilities (SDP and CSR) Program, among them the livelihood trainings of Structural Welding Fabrication for the out-of-school youth in October 2010 and the Food Preparation and Preservation for the unemployed women sector in November 2011.

ii. Progress on the remaining ROW Issues

41. Out of the 11 affected lots, 6 were already acquired and paid by KSPC while 4 are under expropriation proceeding before the court. Out of this 4, 1 was already settled while the 3 cases have already been issued with Writ of Possession.

42. On the other hand, except for the property of the heirs of Eugenio Dela Corte, which are among the 4 subjects of expropriation cases, all the affected house/structure owners within the 30 meters right-of-way for KSPC’s T/L Project already received the compensation/payments for their properties.

43. In an interview, Antonio Lapiz, whose old house that used to stand in a rented 50-square meters lot, said he is thankful for the T/L Project because he was able to acquire a new property with the compensation that he received. He spent P100,800.00 from the P161,000.00 payment for his affected property to buy a 144-sq. m. lot at P700.00 per sq. m. and in a staggered basis built a better house made of concrete on it using the remaining money and his personal savings. Like Lapiz, at least 3 other families affected by the project acquired better homes in adjacent lots outside the 30 meters right-of way using the compensation they received while the others bought new properties in other places.

SOCIAL DEVELOPMENT PLAN

i. Progress on Implementation of Livelihood and Community Development Programs

for People Relocated from Naga Land and Project T/L 44. As part of the power plant’s host community, the people relocated from Naga Land and

Project T/L continue to enjoy community projects under the annual Social Development Plan and Corporate Social Responsibilities (SDP/CSR) Program that KSPC has been implementing. They will also enjoy projects to be derived from the financial benefits to be provided under Energy Regulations (ER) 1-94.

13

5. SUMMARY OF SAFETY PERFORMANCE AND ANY CORRECTIVE ACTIONS

45. An annual report is provided by the Operator on the safety performance of the project clocked around 264,738 man-hours. Assessment of the report indicates that the Cebu Power Plant is performing well in implementing safety performance guidelines as well as in inculcating safety awareness in the endeavors of personnel within the site. Table 6 shows a summary of the plant’s safety performance indicators.

46. Fire drills and other emergency response procedures were performed within the year.

These procedures are carefully reviewed every year for continuous improvement. The following are future plans in further developing the health and safety aspect of the power plant:

• Augmentation in the health and safety organization of the power plant including the recruitment of additional personnel.

• Improvement in the power plant’s safety and emergency response trainings and increase in the frequency of conducting these trainings in a year.

• Hiring of full time Nurse and establishment of a clinic and other necessary medical/first aid facilities in the power plant site.

6. SUSTAINABLE DEVELOPMENT INITIATIVES AND COMMUNITY RELATIONS

47. A regular tree planting activity and coastal clean up spearhead by the Environmental Team is being conducted involving the members of the Multi-partite Monitoring Team. The community projects under the SDP and CSR Program are being implemented in partnership with the concerned government agencies and LGU officials, such as the Department of Education (DepEd) and the City Health Office. The annual livelihood training programs are tied up with DepEd’s Alternative Learning System Program while the trainers are tapped from Technical Education & Skills Development Authority (TESDA).

48. KSPC’s practice of recycling all of its ash material is a sustainable development

initiative. The company is currently recycling its ash in cement and ready-mixed concrete and is still doing further research on other possible uses of the ash material. Other future plans on sustainable development include programs on solid waste segregation and recycling, and development of a zero wastewater program.

Table 6. Safety Performance Metrics

Safety Performance Measurement 2012 2013 Target

1

Lost Time Accident (LTA)

Occurrence which includes death, major injury or property damage that may

result to loss of working hours. Count shall begin if the subject has not

returned to work after 24 hours.

0 0

2

None Lost Time Accident (NLTA)

Accidents that did not result to any lost time. Usually includes minor injuries

or property damage.

0 0

3

Disabling Injury/Illness Frequency Rates

The total number of deaths, permanent total, permanent partial and

temporary total disabilities which occurred during the period covered within

the work site.

0 0

4 Disabling Injury/Illness Severity Rates

The total number of work days lost due to deaths, permanent total and

permanent partial disabilities including those due to temporary total

disabilities during the coverage period.

0 0

14

ANNEX 1

ECC Compliance Status

ECC/EMP Condition/Requirement

Categorization

Relevant ECC Condition/s (if any) Status of

Compliance (√ if complying)

REMARKS

#/s Requirement Description

1) Project coverage/limits

√

The project is now in full-load operations since the end of May 2011.

2) Components 1

3.5

3.10

3.3

3.9

Technical Components The Construction, the installation, and the Operation of Pollution Control Devices A well-engineered drainage system & flood protection structures 5-m buffer zone at perimeter Slope protection structure to prevent siltation to the sea

√ √ √ √ √

Necessary permits have been obtained. Pollution control devices have been installed and are now being operated with the necessary permits. Adequately implemented. Buffer zone is provided along the perimeter. Slope protection structure completed.

3) Other requirements as mandated by other agencies or sectors to be complied with

(a) Water Permit Amendment (NWRB)

(b) Off-shore Discharge Tunnel

√ √

Permanent Water Permit has been acquired. The construction permit for the Off-shore discharge tunnel has been secured.

4) EMP and updates as deemed required

4.2 Monitor the actual project impact and suggest on the revisions of EMP if necessary

√ EMP updates were made including specification of given measures for the following: (a) Jetty Extension (b) 5-m Buffer Zone

Substitute (c) Limestone Crusher

System (d) Relocated Ash Pond C (e) Continuation of Coal

yard expansion (f) Expansion of Ash

Pond B Area and Capacity


Categorization



REMARKS


5) Conduct of baseline, compliance and impact self monitoring

2

4.3

Thermal Dispersion Modeling (TDM) Study validating the results of the Air Quality Modeling

√ Results will be reported in the next reporting

period

Initial modeling conducted in the EIS stage and confirmation modeling conducted in the commissioning stage. Initial data gathering will commence in the first half of 2013 and full modeling will be made in the second half of 2013.

6) Multi-sectoral Monitoring (as may be required)

3

4.4

EIS must be strictly implemented and in the EIS, it is stated that a Multi-partite Monitoring Team (MMT) should be established. Third party Annual Environmental Audit

√ Audit will be made in 2013.

The MMT is currently operating. Representation was made in the MMT convention last April 11-12, 2013. Regular and Emergency Meetings were held. Environmental Audit was performed by Berkman Systems, Inc. last Feb 25-28, 2013.

7) Regular reporting 3.4 3.6 4.1

Regular community water resources monitoring Conformance to DENR standards on noise, water effluents, and air emission levels Marine Monitoring

√ √ √

ECC CMR, SMR, and CMVR are submitted regularly. Monitoring in the current phase covers ground water, marine water, noise, ambient air, water effluents, air emissions, and solid & hazardous waste. Marine life monitoring is scheduled on June 2013 and the report will be included in the next monitoring period.

8) Necessary Institutional arrangements for the implementation of the related environmental management measures

Hiring of a 3rd

party laboratory for air and water sampling /analysis that is duly accredited by DENR

√ Arrangements/agreements with service providers are in place.

9) Standard DENR req. on transfer of ownership

6 DENR EMB should be notified fifteen (15) days prior to the transfer of ownership

√ Refer to the letter of approval dated Sep. 18, 2007 for the transfer of ECC from Salcon Power Corp. to KEPCO SPC Power Corporation.


Categorization



REMARKS


10) Standard DENR req. on abandonment

7 An abandonment plan should be sub-mitted to EMB one (1) year prior to the abandonment

N/A N/A

11) Impact Mitigation Plan or the Environmental Program of the current phase (Operations)

4.2 Monitor the actual project impact and make suggestions on the revision of EMP

√ New EMP was established as of April 2013.

12) Social Development Plan (SDP) and Corporate Social Responsibilities (CSR)

3 EIS must be strictly implemented which includes the Social Development Plan establishment.

√ Appropriate budget is provided and due implementations is made. Annex 9 contains the SDP and CSR implementation report.

13) IEC Plan 3.1 Implementation of an Information, Education, and Communication (IEC) Program for all stakeholders

√ Informative brochures are produced for stakeholders while plant tours are held as a way to educate and inform.

14) Contingency and/or Emergency Response Plan or equivalent Risk Management Plan

3.8 Implementation of an Emergency Response Plan and Disaster Preparedness Program in case of fire and other emergencies and natural calamities

√ The Safety and Security Contingency Plan has been established in addition to the Contractor’s Environment, Health, and Safety (EHS) Program implemented on-site. Safety and Emergency Plan is also being established for the operations phase.

15) Environmental Monitoring Plan (EMoP)

3 EIS will be strictly implemented. Included in the EIS is the EMoP of the project.

√ Environmental Monitoring Plan for the Operations Phase is implemented and reflected in regular reports.

16) Signages 3.2 Signages and other applicable measures for safety should be installed

√ Appropriate road signages are installed within the plant site and traffic enforcers are also assigned. Safety signages are also installed in the site (See Annex 10).

Implementation Status of Consolidated EMP (As of April 2013)

Environmental

Component Project Activity Potential Impact

Environmental Management Plan

Mitigating/Enhancement Measures Status of Compliance

Operations Phase

Physica

l E

nvironm

ent

Land

form

/ G

eolo

gy/

Ge

o-h

aza

rd

Plant Operation and

Maintenance

Soil Contamination from

oil spills/leaks

Proper oil/fuel handling procedures;

placement of containment bunds around

fuel and oil storage tanks

Complied. Proper oil/fuel handling procedures are

implemented. Spill management is included in the

Operator’s Emergency Response Plan. Bunds are

installed around fuel tanks as in below photo.

Oil Tank with bund wall

Environmental




Physica

l Environm

ent

Wa

ter Q

ua

lity a

nd

Qua

ntity

Freshwater Extraction Lowering of water table;

saline water intrusion

Freshwater will be sourced mainly from the

desalination of seawater

Complied. Desalination facility has been completed

and adequately operated and maintained. See photo

below.

Plant Operation and

Maintenance

Discharge of Heated

Water

Installation and operation of appropriate

cooling technologies

Complied. Submerged cooling with offshore diffuser is

being used. Regular monitoring is being done. See

photo of design below. Water temperatures reported in

the SMR included.

Environmental




Physica

l Environm

ent

Wa

ter Q

ua

lity a

nd

Qua

ntity

Plant Operation and

Maintenance

Wastewater generation Construction and operation of a

wastewater treatment facility

Complied. See photos of wastewater and sanitary

treatment facilities below. Continuous and regular

monitoring of water effluents is being implemented.

Wastewater Treatment Facility

Sanitary Treatment Facility

Water contamination

from fuel/oil leaks and

spillage

Proper safety and handling of fuel/oil

storage areas and motor pool

Complied. Proper oil/fuel handling procedures are

implemented. Spill management is included in the

Operator’s Emergency Response Plan.

Environmental




Physica

l Environm

ent

Air a

nd

Noise Q

ua

lity

Plant Operation and

Maintenance

including Limestone

Crusher Operation

Increased levels of TSP /

NOx / SOx

Installation, operation, and maintenance

of EPs and other pollution control devices

Complied. EPs and other pollution control devices are

working and are maintained properly. Regular and

continuous monitoring is facilitated.

Electrostatic Precipitator

Circulating Fluidized Bed Combustion Boiler with

limestone feeding for low NOx and low SOx

Environmental




Physica

l Environm

ent

Air a

nd

Noise Q

ua

lity

Plant Operation and

Maintenance

including Limestone

Crusher Operation


NOx / SOx



Coal Dust Suppression System and Control

Closed Coal Ship Unloader

Environmental




Physica

l Environm

ent

Air a

nd

Noise Q

ua

lity

Plant Operation and

Maintenance

including Limestone

Crusher Operation


NOx / SOx



Closed Coal Conveyors

Coal and Limestone Dust Collection Systems

Environmental




Emergency

Unloading of Coal by

truck

Increase level of TSP

• Spraying of roads with water

• Spraying the coal loaded to the truck

with water before transporting to the

Coal Yard

• Deployment of street cleaners at

designated areas.

Environmental




Physica

l Environm

ent

Air a

nd

Noise Q

ua

lity

Plant Operation and

Maintenance

including Limestone

Crusher Operation


NOx / SOx

Construction of walling and roofing of the

open coal yard.

Environmental




Physica

l Environm

ent

Air a

nd

Noise Q

ua

lity

Plant Operation and

Maintenance

including Limestone

Crusher Operation


NOx / SOx



Closed Limestone Crushing Facility to attenuate noise

and remove dust generation

Continuous Emissions Monitoring System

Environmental




Physica

l Environm

ent

Air a

nd

Noise Q

ua

lity

Plant Operation and

Maintenance

including Limestone

Crusher Operation


NOx / SOx



Boiler Management and Monitoring System

110-m Chimney

Environmental




Physica

l Environm

ent

Air a

nd

Noise Q

ua

lity

Plant Operation and

Maintenance

including Limestone

Crusher Operation


NOx / SOx



Ambient Air Quality Monitoring Stations

Physica

l Environm

ent

Air a

nd

Noise Q

ua

lity

Plant Operation and

Maintenance

including Limestone

Crusher Operation

Elevated Noise Levels

Establish buffers and other noise

abatement measures/proper

maintenance of vehicles, heavy

equipment and other machineries/use of

noise abatement accessories such as

mufflers

Complied. Noise abatement measures and perimeter

noise meters are installed. Buffers are also established

and enhanced with the power plant’s landscaping

and trees planted. Continuous monitoring is facilitated.

Perimeter Noise Monitors

Environmental




Physica

l Environm

ent

Air a

nd

Noise Q

ua

lity

Plant Operation and

Maintenance

including Limestone

Crusher Operation

Elevated Noise Levels

Establish buffers and other noise

abatement measures/proper

maintenance of vehicles, heavy

equipment and other machineries/use of

noise abatement accessories such as

mufflers

Landscaping and Tree-Planting Around the Site

Buffer Zone Establishment with Tree-Planting

Environmental




Bio

log

ica

l Environm

ent

Aq

ua

tic E

nvironm

ent

Plant Operation

Thermal effluents released

to the sea

Installation and operation of appropriate

cooling technologies Complied. Regular monitoring is being done.

Release of toxic

substances like chlorine

and other anti-fouling

chemicals

Treatment of wastewater prior to release

into the ambient

Complied. All treated industrial wastewater is reused

while the cooling water is dosed with hypochlorite

using an automated system. Regular monitoring is

being made on the effluents and included in the SMR.

Spillage from fuel/oil

storage area

Secure storage areas to avoid spillage;

strict application of safety and sanitation

procedures

Complied.

Spillage of fuel and other

substances during

unloading operations

Ensure implementation of safety and

sanitation procedures during unloading

operations

Complied. Coal unloading and handling facilities are

all closed and have the necessary dust suppression

system.

Facilities Repair and

Maintenance

Dumping of solid waste Collection and appropriate disposal of

solid waste

Complied. Solid domestic and recyclable wastes are

collected by the municipality at a frequency of 3 times

a week.

Dumping of toxic

chemicals (paints,

cleaning detergents)

Collection and appropriate disposal of

toxic and hazardous materials

Complied. No toxic and hazardous materials have

been disposed. Generated materials are stored at

appropriate storage sites/warehouse.

Environmental




Socia

l Environm

ent

Plant Operation Influx of informal dwellers

Assist municipality to implement land use

plan Assist barangay in implementing

UDHA

Complied. KSPC has successfully relocated the informal

dwellers by assisting the LGU. Latest project for the

informal dwellers includes the paving of pathways.

Socia

l Environm

ent

Plant Operation

Generation of

employment and

livelihood opportunities

Prioritize local residents in employment;

local sourcing of requirements

Complied. As of the coverage period the total number

of Naga-hired employees is 110.

Increase LGU revenues Prompt payment of tax dues; assist

municipality in tapping funds

Complied. Included in the implemented Social

Development Plan and Corporate Social

Responsibilities.

Environmental




Air Pollution

Adoption of CFBC technology / Install

anti-pollution device / Reforestation /

Health monitoring and medical missions

Complied. Tree-planting activities and Coastal clean-

up activities are held regularly.

Noise Pollution

Installation of buffers and mufflers /

Planting of trees and shrubs / Health

monitoring and medical missions

Complied.

Diminishing Fish Catch

Provide assistance to local FARMC in drive

against illegal activities and rehabilitation

of marine resources / Provide alternative

livelihood sources

Complied. Included in the implemented Social

Development Plan and Corporate Social

Responsibilities.

Worker exposure to

increased levels of

TSP/NOx/SOx/Noise

Provision of PPEs to workers / Annual

medical exams Complied.

Summary of Expenses for 2012 Social Development Fund and Corporate & Social Responsibilities (SDP and CSR) Program and other Community Relations Activities

Entry Date Recipient/s Activity/ies Amount

1 12-Jan-12 Cebu Popular Music Festival Foundation, Inc.

Donation to Cebu Popular Music Festival Php100,000.00

2 21-Jan-12 Barangay Colon Financial support to participation to Sinulog sa Naga Php10,000.00

3 09-Feb-12 Negros Oriental Province Relief Assistance to the earthquake victims Php100,000.00

4 24-Feb-12 Barangay North Poblacion SDP & CSR Program for Health: Donation of Equipment for the Barangay Health Center Facilities

Php20,000.00

5 01-Mar-12 Barangay Colon Donation of GI Pipes for the repair of footbridge Php6,525.00

6 23-Mar-12 NPC-Colon Elementary School SDP & CSR Program for Education: Donation of Medals and Incentive Awards for the 2012 Graduates

Php20,000.00

7 26-Mar-12 Baranga. North Poblacion Financial support to the Sangguniang Kabataan's Basketball Tournament

Php15,000.00

8 10-Apr-12 UP Cebu High School Batch '84 Sponsorship for "A Shot at Life" Scholarship Program Php20,000.00

9 16-Apr-12 Barangays Colon, North Poblacion and Tangke Day Care Centers

Support for the Graduation Ceremony Php12,000.00

10 16-Apr-12 Cebu Provincial Government Sponsorship of Suroy-Suroy Sugbo Php42,500.00

11 23-Apr-12 Barangay Tangke Financial assistance for Day Care Teacher Training Php2,700.00

12 05-May-12 Barangays North Poblacion and Colon SDP & CSR Program for Health: "Operation Tuli" (Circumcision)

Php19,466.00

13 10-May-12 Barangay Colon Financial assistance for the annual fiesta celebration Php30,000.00

14 10-May-12 Barangay Colon Tarpaulin banner for fiesta greetings Php2,250.00

15 14-May-12 San Vicente Ferrer (Colon) Chapel Financial Assistance for fiesta celebration Php10,000.00

16 12-May-12 Department of Energy Payment Financial Benefits under ER1-94 (Sept. 28, 2010 to July 25, 2011)

Php5,013,705.43

17 22-May-12 NPC-Colon Elementary School Donation of Toner for Photocopier Php4,400.00

18 31-May-12 Barangays Colon and North Poblacion Senior Citizens Associations

Donation of Uniforms Php38,535.00

19 20-Jun-12 Department of Energy Payment of Financial Benefits under ER 1-94 (July 26, 2011 to Dec. 25, 2011)

Php4,642,547.04


20 20-Jun-12 Dr. Sarah Jean Macrohon Honorarium of Doctor for Consultation Visits in 7 Barangays Php140,000.00

21 25-Jun-12 Dr. Sarah Jean Macrohon Additional Honorarium of Doctor for Consultation Visits in 7 Barangays

Php56,000.00

23 28-Jun-12 City of Naga-LGU Flower offering for the 114th Philippine Independence Day Php1,500.00

24 28-Jun-12 The Freeman Advertisement for The Freeman's 93rd Anniversary Special Issue

Php8,596.22

25 05-Jul-12 Barangay San Roque Chapel, Upper Colon

Financial assistance for fiesta celebration Php3,000.00

26 09-Jul-12 Philippine Institute of Certified Public Accountant-Cebu Chapter

Sponsorship for Accountacy Week Celebration Php20,000.00

27 09-Jul-12 Integrated Institute of Electrical Engineers-Cebu Chapter

Sponsorship for the IIEE's 13th Visayas Regional Conference Php3,500.00

28 10-Jul-12 Barangas Colon, North Poblacion & Tangke Day Care Centers and NPC-Colon Elem. School

SDP & CSR Program for Health: Vitamins Supplementation Php23,077.50

29 10-Jul-12 Barangay Colon Day Care Center SDP & CSR Program for Education: Improvement of School Facilities

Php20,000.00

30 13-Jul-12 City of Naga-LGU Financial support to Fund-Raising Concert for the Charter Day celebration

Php10,000.00

31 24-Jul-12 Citizens of Barangay Inayagan Senior Citizens Association

Donation of plastic chairs Php6,300.00

32 27-Jul-12 Barangay Colon Donation of Meals during the anti-rabies vaccination campaign Php3,000.00

33 27-Jul-12 NPC-Colon Elementary School 1. Improvement of Waterworks System 2. Replacement of Dilapidated School Signage 3. Cement Materials for the Kindergarten Classroom

Php73,200.00

34 30-Jul-12 NPC-Colon Elementary School Support for "Isang Milyong Sipilyo Project": Distribution of Toothbrush and Toothpaste

Php21,000.00

35 03-Aug-12 Cebu Provincial Government Donation for the celebration of Cebu's 443rd Founding Anniversary

Php100,000.00

36 07-Aug-12 Barangay Tangke-LGU & Christian Association/Chapel

Financial Assistance for the fiesta celebration Php25,000.00

37 12-Aug-12 City of Naga-LGU Sponsorship for the Fiesta Souvenir Program Php50,000.00

38 13-Aug-12 Brgys. Colon, Tangke, North Poblacion Day Care Centers & NPC-Colon Elementary School

SDP & CSR Program for Health: Feeding Program Php16,736.00


39 17-Aug-12 Cebu Newspaper Workers Foundation Inc. Sponsorship for the 18th Cebu Press Freedom Week celebration

Php75,000.00

40 23-Aug-12 City of Naga-LGU Donation for the 5th Charter Day celebration Php20,000.00

41 28-Aug-12 Sitio Cayam, Barangay Colon Financial Assistance for the fiesta celebration Php7,000.00

42 28-Aug-12 Barangay North Poblacion Financial Assistance for the 41st Foundation Day Php15,000.00

43 29-Aug-12 NPC-Colon Elementary School and Barangay Colon Day Care Center

SDP & CSR Program for Education: Donation of Educational Materials

Php20,000.00

44 10-Sep-12 KSPC Promotional Materials Php20,000.00

45 12-Sep-12 Cebu Korean Association Inc. Sponsorship for the 2nd Cebu City Korea Day Php50,000.00

46 18-Sep-12 Barangays Colon and North Poblacion Medical Mission Php100,000.00

47 02-Oct-12 Federation of Senior Citizens of the City of Naga (FESECINA)

Donation of packed meals for the Elderly Week celebration Php12,000.00

48 08-Oct-12 Naga Parish Pastoral Council Financial Assistance for the Fiesta celebration Php10,000.00

49 11-Sep-12 San Vicenter Ferrer/Barangay Colon Chapel

Donation for construction of mini-convent Php58,300.00

50 11-Sep-12 Barangays Colon, North Poblacion & Tangke Day Care Centers

Financial Assistance for the Childrens' Congress Php9,000.00

51 11-Sep-12 Sitio Cayam, Barangay Colon Financial Assistance for the Anniversary of Our Lady of the Holy Rosary Parish

Php7,000.00

52 08-Oct-12 Department of Energy Payment of Financial Benefits under ER1-94 (Dec. 26, 2011 to June 25, 2012)

Php6,590,561.39

53 16-Oct-12 Department of Education Naga District Donations for their participation in the City of Naga Olympics Php20,000.00

54 16-Oct-12 Juntilla Family of Barangay Colon Condolence Money for the late Reinerio Juntilla Jr. Php5,000.00

55 18-Oct-12 Barangays Colon and Tangke Donation of packed meals during disaster response training Php17,000.00

56 22-Oct-12 Cebu Business Club Sponsorship of 2nd National Business Conference Php50,000.00

57 24-Oct-12 Municipality of Madridejos Sponsorship for the Annual Fiesta of Madridejos Php10,000.00

58 16-Nov-12 Barangay Colon Day Care Center Financial support for Day Care pupil's participation in the regional Children's Congress competition

Php1,500.00


59 16-Nov-12 Barangay North Poblacion Community Relief Assistance Php150,000.00

60 16-Nov-12 City Government of Naga "Christmas Belen" Display for the Festival of Lights Php39,200.00

61 19-Nov-12 Barangay North Poblacion Chapel Financial Assistance for the Fiesta Celebration of La Purisima Concepcion Chapel

Php10,000.00

62 20-Nov-12 Department of Education Naga District Donation of personal kits to the athletes for the Central Visayas sports meet

Php20,600.00

63 26-Nov-12 Cebu Lady Lawyer's Association Inc. Sponsorship of Anniversary Celebration Php10,000.00

64 22-Nov-12 Barangay Colon, Tangke & North Poblacion

2012 Christmas Activities/Support for Host Communities Php100,000.00

65 28-Nov-12 Barangay Colon SDP & CSR Program: Skills Development Training Php70,000.00

66 05-Dec-12 Larumbe Family of Barangay Colon Condolence Money for the bereived family of Julian Larumbe Php5,000.00

67 19-Dec-12 Senior Citizens of Brgy. South Poblacion, Hotel Pro Scholars & Garbage Collectors Team

2012 Additional Christmas Support for Host Communities Php11,000.00

TOTAL Php18,233,699.58

As of Jan. 2, 2013

2012 SUMMARY ACTUAL EXPENSES (PHP)

1. Regional & Cooperative Support:

A. Barangay & Naga related projects 1,046,560.00

B. SDP & CSR Programs 209,279.50

TOTAL 1,255,839.50

C. Electricity Fund ER 1-94 16,246,813.86

2. Donations and Contributions 200,000.00

3. Advertising & Promotions 381,046.22

TOTAL 581,046.22

UPDATES ON KSPCs IMPLEMENTATI

No. Item Updates

1

Stock pile

height shall be

maintained

below the wind

barrier level

during normal

and critical

conditions.

Stockpile

heights are

kept below

the wind

barrier level.

2

Strict

monitoring of

the wind

speed, once

the

anemometer

reading

reaches 8.0

m/s unloading

should be

stopped

automatically.

Air speed

monitoring is

continuously

done at the

CSU area and

unloading

immediately

stopped if

wind speeds

go beyond the

agreed limit.

3

Equipment use

inside the coal

yard should

have speed

limit of not

more than

10kph.

KSPC hired

two (2) truck

unloading

foremen

(from

Barangays

Colon and

North

Poblacion) to

monitor

closely the

truck speeds

and truck

loads which

must have a

free board of

at least 12

inches.

ATION OF ITS COMMITMENTS TO CONTROL THE C

IMMEDIATE SOLUTIONS

Remarks

HE COAL DUST

No. Item Updates Remarks

4

Dust

suppressions

system shall be

operated as

scheduled.

Proposed

schedule of

operation of

dust

suppression is

strictly

followed.

5

Additional

water hose

shall be

connected to

the tripper area

to spray top of

coal piles.

Fire hydrant is

utilized during

unloading

events at the

tripper area.

So manual

spraying will

be made

every time

coal is

dropped from

the tripper.

6

Unloading

facilities such

as coal

conveyors

CV11, CV12 &

CV 13,

CSU/Jetty area,

transfer towers

1&2, perimeter

drainage/road

way and tripper

area shall be

cleaned during

unloading.

Locals from

Barangays

Colon and

North

Poblacion are

hired to clean

the route of

the coal

trucks, front

of the power

plant, coal

yard area,

wharf area,

and

conveyors.


7

Designate

adequate

personnel that

will clean and

monitor the

temporary

diversion road

area during

unloading. Locals from

Barangays

Colon and

North

Poblacion are

hired to clean

the route of

the coal

trucks, front

of the power

plant, coal

yard area,

wharf area,

and

conveyors.

8

Organize and

hire a street

clean-up team

every coal

unloading

event on-site in

coordination

with Barangay

Colon and

Barangay North

Poblacion

(minimum of 2

persons per

barangay)

9

Organize and

conduct a

quarterly

consultation

meeting with

Barangays

Colon, Tange

and North

Poblacion.

Conducted

1st Quarter

Public

Consultation

Meetings at

Barangay

North

Poblacion (Jan

24), Barangay

Colon (Feb

15) and

Barangay

Tangke (Feb

22).

Public Consultation Minutes sent to City Mayor’s office last March 14, 2013

LONG-TERM SOLUTIONS


1

Improvement

& Installation

of Additional

Dust

Suppression

System.

On going

negotiation

with supplier.

For the

meantime

manual

spraying is

done.

2

Installation of

net cover for

the open yard.

Construction

of open yard

walls and

roofing is

done.

No. Item Updates

3

Transplanting

of fully-grown

trees as dust

buffer.

Installation of

GI Sheet walls

at the Naga

side of the

coal yard in

substitution

to trees

transplant.

Remarks

KSPC TREE PLANTING AND COASTAL CLEAN-UP ACTIVITIES

JULY 13, 2012, TREE PLANTING

Location: Lot 2 Area

Number of trees planted: 50

NOVEMBER 17, 2012, COASTAL CLEAN-UP

Location: Sea-side, Barangay North Poblacion Naga City

Day 1: Minutes of Meeting and Summary

2 x 100 MW CEBU POWER PLANT

2012.04.27

KSPC Power Plant Cebu Site

Public Consultation on FDRC’s Ash Landfill Facility and KSPC’s Ash Disposal

Scheme

Public Consultation Minutes

Day 2 – April 27, 2012 Public Consultation Meeting

I. FDRC Landfill Facility Public Consultation

A. Opening remarks given by Engr. Arthur Villamor

• The City Administrator described the rationale of the activity which is to

publicly share the joint-endeavor between KSPC and FDRC in responsibly

disposing the coal ash

• The City Administrator reiterated in behalf of the Mayor that coal combustion

residuals are not toxic if handled properly and can be used in a lot of

structural applications including as filling material

• Naga City is hoping for an effective and sound plan from FDR and KSPC on

this endeavor and encourages the attending stakeholders to participate

B. Presentation by FDRC representative

• Representative from FDRC gave a brief background on the project

• The representative mentioned that FDRC offered to help in KSPC’s fly ash

problem by providing land which can be developed into a landfill facility with all

the necessary environmental features

• The representative mentioned that FDRC has been a hauler for KSPC since

2010

• The technical engineer of FDRC described briefly the location, size and

volume of the landfill facility which is inside the existing MRF facility, and

detailed environmental control measures (lining system, leachate collection,

etc.)

• Existing 6 households will be relocated to a new location near the hi-way

• FDRC will provide the land while KSPC will provide the financing for the

construction of the replacement houses with an area of 36 m2

C. Open Forum

• Barangay North Poblacion Representative

� Concern: How many months of fly ash production will the 55,000-m3 (first

cell) facility be filled up and what is the next step if this happens?

� FDRC reply: The capacity of the facility will depend on KSPC’s actual ash

production and before the facility fills up, there is still space for the

development of additional landfill cells.

� KSPC comment: Based on simulated forecasts, the first cell can hold up to

September or October of this year and when the cell 1 is half-full, cell 2 will

be developed.

• Naga City LGU: Environment/Pollution Control Officer

� Concern: Dust generation due to material handling of the fly ash at the

emergency ash pond and road spillages during transportation of the ash.

� KSPC comment: Comments are noted and due mitigating measures will be

made. To clarify, the morning public consultation strictly covers only the


operation of the FDRC facility at the Pangdan area. The other public

consultation in the afternoon will discuss on the overall scheme including

the transportation routes and the concrete measures that will be

implemented.

• Naga City LGU: City Administrator

� Concern: What happens to the rainfall runoff?

� FDRC reply: Drains are already set up to collect runoffs from a higher

elevation so rainwater is diverted to the Pangdan river.

� ADB comment: The perimeter of the ash landfill cell is a raised

embankment so rainwater runoffs from outside will not go into the cell. This

makes the amount of water inside the cell manageable for treatment

outside.

• Pangdan Resident

� Concern: Who are the owners of the lots and houses that will be relocated

due to the landfill facility? My lot is 200 sq. m. and I divided it for my

children, will they be included in the relocation?

� KSPC reply: The first question that should be resolved is whether or not

the resident raising his concern is part of the affected people which he can

follow up with FDRC. If he is indeed part of the affected residents then he

will be relocated with his family and given his due lot size after FDR’s

confirmation.

• Naga City LGU: City Administrator

� Concern: Will the relocation include the supply of potable water?

� KSPC reply: Yes, water lines will be included in the relocation.

• Naga City LGU: Sanitary Officer

� Concern: Will water go to the Pangdan river?

� KSPC reply: Water will not go to Pangdan river during heavy rains or

cause soil erosion as explained earlier

• Pangdan Resident

� Concern: The affected residents will be relocated to an area near the road

where the incidence for dust generation is also high. Is it possible for the

residents to choose their own area?

� FDR reply: The plan is not yet final as of now so you can still discuss your

concern with FDRC for the location of your house.

II. KSPC Ash Disposal Presentation and Public Consultation

A. Open Remarks by the City Administrator

B. Presentation of the Rationale and Objectives of the Public Consultation

• The rationale of the public consultation is to comply with KSPC’s policies on

environmental protection and public awareness as well as comply with the


requirements of the related local and national laws as well as those of

KSPC’s financing institutions.

• The affair aims to educate the stakeholders on KSPC’s ash disposal scheme

and impart to them the associated impacts and the company’s concrete

management plan. The consultation shall also solicit the grievances and

suggestions of the stakeholders for KSPC’s evaluation and consideration.

The main goal of the affair is to ultimately form a mutually beneficial

partnership between KSPC and the stakeholders.

C. Presentation of the general overview of the Cebu Power Plant and its

operations

D. Presentation of KSPC’s General Ash Disposal Scheme and Management

Plan

• The bed ash will be disposed of into ash ponds inside the plant site dedicated

strictly for the said material. The facility will be designed according to sanitary

landfill standards and will have a capacity of 40,600 m3 which will hold the

bed ash for at least 10 years. Within this period, renewable means of

recycling the bed ash will be studied and applied.

• Fly ash will be recycled in cement plants and ready-mixed concrete (RMC)

batching plants. In the present scheme, of the 120MT fly ash generation,

85MT will be going to the cement plant while 35MT will be diverted to the

RMC plant.

• During maintenance period of the said RMC and cement plants, the fly ash

will be temporarily stored inside the power plant’s existing emergency ash

pond with a capacity of 13,326 m3. This ash will then be permanently

transferred to the ash landfill facility of FDRC with a total capacity of 180,000

m3. The said facility will be developed in three phases with the first cell having

a capacity of approximately 55,000 m3. Cell 2 will be started once cell 1 is half

full. The same will be followed for cell 3.

• The target completion of the FDRC facility is by July 2012 while that of the

cement plant is by December 2012. To mend this emergency situation, a

contingency measure has been put in place which is to raise the height of the

existing emergency ash pond using ash bags. The ash bag embankment will

have a height of 5 m and width of 7 m.

• All ash from the emergency ash pond and 3,000m3 from the Naga Ash Pond

will be transferred to the FDRC facility upon completion. This is to ensure that

the emergency ash pond is always ready to receive fly ash.

• Fly ash extraction from the silos will be safe and clean since the silos and

unloading area is secured and closed. Unloading chutes are provided that

connect to the receiving bulk carrier trucks. The silos are equipped with bag

filters and ash conditioning systems.


• The on-site disposal of ash will be safe as dust suppression systems will be

made in place and ready always.

• For the transportation of ash, spillages and dust generation are negligible

since the trucks used are bulk carriers which are tightly sealed. These trucks

are also washed to and fro the destination areas.

• The disposal at the landfill facility will be safe since it will be designed

according to sanitary landfill standards. A comprehensive and complete lining

system will be installed with a leachate collection system to allow treatment of

the leachate off-site at the Cebu Power Plant. Dust barriers will also be

provided at the necessary perimeter areas to prevent dust generation.

• For the recycling of fly ash, dust generation is avoided since the recycling

plants will store the ash in tightly-sealed silos.

E. Open Forum

• Freedom from Death Coalition (FDC) Representative

� Concern: We have received a copy of the Compliance Review Panel’s

(CRP) report on the project and we would like to hear KSPC’s side on this.

� KSPC reply: Thank you for bringing that concern. The reason why we are

having this public consultation is actually related to the findings of the CRP.

Our redesign of our ash disposal scheme and publicly announcing these

schemes and our management plan is one of our ways in addressing the

CRP recommendations. Other recommendations are made in cooperation

with ADB.

� ADB comment: For the first recommendation of the CRP on air dispersion

modeling, ADB is already working on that and it will be done by an

internationally competent organization. The timeline of which will be for one

and a half years.

� ADB comment: For the second recommendation on ash disposal

management, KSPC has already solved this by providing a technically

sound design of their landfill facility and an environmentally acceptable

scheme of recycling the fly ash.

� ADB comment: For the third recommendation on the health aspect and the

fourth recommendation on the expansion of the MMT, this is also on-going

in coordination with KSPC.

� ADB comment: The compliance for the air monitoring recommendation and

that on health will solely be covered by ADB in terms of financing but will

be supported by KSPC and the related government units or agencies.

� April 4, 2012 – Approval of CRP recommendations

� June 6, 2012 – Submission of implementation plan of ADB

• Barangay Dumlog Representative

� Concern: Why would it take 10 years to develop products from coal ash?

What are the benefits that the barangay can get from this particularly in the

form of compensation for the predicted impacts


� KSPC reply: KSPC’s main business is power production but right now we

are proposing for the recycling of fly ash in cement and RMC. The 10 years

is a good time to develop more uses most especially for bed ash as KSPC

believes that coal ash utilization in different applications is the most

renewable path.

� KSPC reply: For the second question, KSPC’s commitment is to ensure

that the community and environment are safe from dust generation or any

other negative impacts due to the transportation of fly ash so we assure

you that ash transportation will not affect the residents. We have also

placed appropriate mitigating and control measures for such activity.

� Pangdan representative comment: Can KSPC come to the barangay and

conduct the necessary information-dissemination endeavor to explain

KSPC’s good intentions and plan to the people?

� KSPC reply: Yes KSPC can accommodate this request and we will

conduct public consultations with other areas for their knowledge and

awareness but in a radiating order starting with the closest stakeholder.

• FDC Representative

� Concern: What is the actual concept of KSPC’s ash disposal

� KSPC reply: Generally KSPC’s ash management plan consists of two main

components, 1) landfill and 2) recycling. The priority path is ash recycling

while the landfill facility serves as a permanent back-up for ash not

received due to the recyclers’ withdrawal constraints.

� FDC comment: What happens to the balance of the fly ash generation

since the cement plant is not yet available?

� KSPC reply: The balance will be disposed of at KSPC’s emergency ash

pond and at FDRC’s landfill facility until the cement plant goes online.

� FDC comment: When can the cement plant option be finally realized? It

seems that the recycling option is not that feasible.

� KSPC reply: We believe that this option is indeed feasible. The only

impediments we are facing are the related consent requirements and

finalization of the agreements and negotiations with the recycling

companies.

� FDC comment: Was the cement option for recycling the fly ash even

considered before the power plant was actually inaugurated?

� KSPC reply: Of course it was considered and studied but the actual testing

of the ash for use at the cement power plants could not progress if you do

not have the ash there yet so it is more logical to be implementing this

measure at this period in time.

� Naga City LGU Environment/Pollution Control Officer comment: As a

previous employee from APO-CEMEX, it is technically feasible to use the

fly ash in the cement plant operations. But for now, the pending issues are

dependent on the negotiations. It is needed at this moment to give KSPC


time to finalize all related negotiations and agreements related to the

recycling option.

• Philippine Earth Justice Center – Atty. Cabrido

� Comment: There is now an on-going mediation between the parties in the

said TEPO case and we are hoping for a win-win situation for both sides.

The problem of KSPC is the color of their fly ash and further studies are

currently being made. PEJC’s intention is not to make the power plant stop

operations but to make them follow the correct way of ash disposal.

PEJC’s first demand for the Naga City LGU is to purchase an air quality

monitoring device for the LGU’s self-monitoring on the different companies

in Naga City. The second demand is to check Naga City’s ordinance on air

quality and integrate some new provisions needed.

� Naga City LGU City Administrator comment: The LGU is actively doing its

role in ensuring that KSPC is operating properly and we have already

started the procurement of the said air monitoring devices


� Suggestions: 1) Formation of a genuine multi-sectoral monitoring team

composed of LGUs, NGOs, and other related parties. 2) Regular

monitoring of ambient air quality by Naga City LGU and place results in

their website. 3) Expedite the purchasing of the ambient air quality device.

4) Do regular medical missions.

� Naga City LGU City Administrator: Naga City has been doing medical

missions and is even improving its services by extending to the barangay

level including the establishment of a comprehensive health program.

• Philippine Earth Justice Center – Atty. Cabrido

� Comment: The Balili endeavor is not acceptable for us and we would like

to advice KSPC to get out from that deal.


� Comment: What we are requesting from the Naga City LGU is the

performance of a specific health monitoring program that will identify the

risks and health impacts of the coal powered plants in Naga City.

� Naga City LGU Environment/Pollution Control Officer reply: This is

precisely the reason why health programs or activities are focused deeply

to the barangay level.

� FDC comment: The KSPC ash disposal management plan should be

done/implemented immediately or expedited to avoid the alleged

accumulated health impacts.

� KSPC reply: What KSPC can do right now is to dispose of the ash to the

landfill since agreements with the recycling companies are still being

finalized. And whatever is the scheme of disposal, KSPC will try its best to


manage properly the fly ash disposal of KSPC. Based on the simulated

schedule, the landfill facility is expected to be operational by July 2012 and

the cement plant recycling by December 2012.

• Barangay Linao, Naga City Representative

� Concern: Is KSPC willing to assist if health impacts are proven to be

caused by KSPC’s operations particularly in the handling and

transportation of the fly ash? Should there be an agreement for this?

� KSPC reply: Yes, KSPC is very willing to extend its assistance if ever

these allegations are proven. However, a signed agreement is not

desirable as it has an implication that KSPC is owning up the alleged

impacts when it is possible that KSPC can control and prevent these

impacts as any responsible company well.

• Barangay Representative in Naga City

� Concern: What are KSPC’s control measures in the transportation of coal

from the PNOC stockyard to avoid spillage?

� Naga City LGU Environment/Pollution Control Officer reply: The coal is

delivered to the nearby power plant, not in KSPC.

• Barangay Representative in Naga City

� Suggestion: Place KSPC’s automatic ambient air monitoring results in a

more strategic location with the necessary and advertise this highlight of

KSPC.

� KSPC reply: KSPC will expedite the fixing of the remote capabilities of the

ambient air monitoring system and conduct an opening ceremony once the

system is already fixed.

---- End of Consultation ----




