APPENDIX B5 - MINUTES

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EIA - Xaris Walvis Bay Power Plant and Gas Supply Facility

Enviro Dynamics cc

April 2015

APPENDIX B5 - MINUTES

MINUTES OF AUTHORITIES MEETING: 11 MARCH 2015 @ 14h00, AUDITORIUM, MINISTRY

OF MINES AND ENERGY, WINDHOEK

PROPOSED CONSTRUCTION OF THE XARIS WALVIS BAY POWER PLANT AND GAS SUPPLY

FACILITY

1 Introduction and Welcoming

Mr Norman van Zyl welcomed and thanked everyone for attending.

2 Difference between a public hearing and public consultation meeting

Before commencing with the meeting a question was raised from the floor asking the

difference between a public hearing and a public consultation process.

Mr Van Zyl took time to explain that a public hearing is a specific process explained

in the Environmental Management Act. After receiving an EIA the Ministry of

Environment and Tourism may conclude that they do not have sufficient information

about a specific project. They will then call for a public hearing where meetings are

arranged to obtain a better understanding of a project. This is a prerogative that is

exercised from government and it not what the current meeting is about.

The public consultation process is also explained in the Environmental Management

Act. This process requires the environmental consultant to consult with the public

(including the applicable authorities) to understand their concerns, obtain their

inputs into the projects and get a better understanding of the project environment.

This is an information sharing session whereas a public hearing is a more formal

process as a decision making tool for government.

3 Overview of EIA Process

Mr van Zyl proceeded to explain that the purpose of the meeting is to

provide the authorities in Windhoek with an opportunity to get information

about the project from the project proponent Xaris;

provide a background to the history of the project and

hear from the various fields in which the authorities operate which aspects of

the project needs further investigation and how we can deal with these

aspects in the EIA process.

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He then provided a brief overview of the project, describing the key components of

the project including the FSRU, the Pipeline and the Power Station with a water

purification plant (see attached presentation).

Mr Van Zyl explained that the original EIA started in 2014 and submitted to DEA in

2015. The client has subsequently withdrawn the EIA due to comments they have

received from the DEA and Enviro Dynamics has been appointed to review the EIA

to fully address the requirements of the Environmental Management act as well as

IFC and EQP III standards. He explained that the project undertook to conduct a

second public consulting process , so we are again in a process of sharing

information and obtaining inputs from the public, authorities and specialists so that

we can get a better understanding of the project environment. We will then

proceed to write the reports and submit it to DEA for environmental clearance. The

EIA cannot give environmental clearance; it is merely a recommendation for

government to make a decision.

4 Overview of Proposed Project

Mr van Zyl then handed the floor to Ms Tilana De Meillon who represents the

proponent as project manager for the proposed project. She explained that the

project is a partnership between Xaris and NamPower. NamPower is therefore not

just the offtaker but also an equity partner to the project. The project went through a

RFP procurement process as a result of a tender advertised by NamPower. The

Commercial Operations Date for the power plant is set for July 2016. The project has

a high importance in terms of providing electricity to Namibia. A number of

NamPower power import contracts expire in 2016 and without having this project in

place there might be some risks to the power supply of Namibia after that.

Ms De Meillon then continued to explain in more detail the various components of

the project (See attached presentations).

5 Issues Identified

After allowing some time for technical questions, Mr van Zyl continued to describe

some of the potential impacts associated with the proposed project. These include:

Air and Noise pollution from construction and operation activities particularly

during the operation of the FSRU and the power plant.

Effect of leaks and ruptures in the gas pipelines

Effect on the Walvis Bay airport

Water balance and quality of water from Birds Paradise

Potential marine impacts:

Increased vessel traffic

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Disturbance of seabed communities during construction of berths and trestle

jetty

Impacts on fisheries and mariculture

Mr van Zyl then explained the various specialist studies that will be undertaken to

further assess these identified issues to determine their significance.

Opportunity was given to provide further input into potential issues and to ask

questions about this section.

6 The way forward

Mr van Zyl continued by explaining how the EIA process will proceed. He stated that

due to severe time constraints it is impossible to complete a single EIA in the time that

we have available. The four key components of the project were therefore

identified. Separate EIAs will be done for the key components. This approach was

agreed upon with the DEA. The public consultation process will be combined. The

reason for this process is to focus so that the easier components can be completed

while the specialist studies can focus on the areas where their input is required. We

then do not have to wait for one area to be completed before applying for

environmental clearance. EIAs need to be completed from mid April to the end of

April in order for us to keep to schedule requirements.

In order to keep to these timeframes we will need to rely on existing EIAs instead of

redoing the specialist work. Bulk port terminal has an existing EIA in place that has

been approved by the DEA. This study is set directly next to the proposed channel.

The information in the existing EIA and EMP will be used to supplement our study. We

will also use an external reviewer to ensure that we do not miss anything.

7 Questions and Comments regarding the Proposed Project

The questions, comments and concerns raised during the consultation meeting are

presented in the table below:

NAME QUESTION RESPONSE

Reiner Jagau

(NamPower)

For the purification of the

water for the power plant,

what will you use – reverse

osmosis?

It is one of the changes to the

project. A desalination plant is

not part of the project scope

anymore. There are just too

many risks that would need to

be considered. The water will be

purified by putting semi purified

water from the Municipality

through a filter system and

taking the return flow back to

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the municipality.

Gilbert Boois

(Walvis Bay Corridor

Group)

Pricing of the power would it

be competitive for the

downstream users?

The more power you produce

the less expensive it will become.

It is typically very comparable to

prices in the region.

During the tender process this

project was selected largely

because of its competitive price.

Technical evaluation was also

conducted.

Willem Hanghuwo

(Namibia Airports

Company)

How high will the stacks be?

Will it interfere with the

approach zones of the

airport?

Studies done indicated that it

would not interfere with the

operations of the airport. The

stacks will be between 12 to 18m

high.

Johannes BM (Ministry of

Mines and Energy)

What will be the diameter of

the pipeline and what type

of compressor will be used?

Pipeline specifications based on

the pressure that the pipeline will

carry – 700 to 100 Bar. The

concept study conducted

provided for a pipeline diameter

of 24 mm. This is to be confirmed

during detail design.

Ministry of Mines and

Energy

Why the desalination plant is

no longer considered?

The studies that need to be

conducted as part of the EIA

requires a lead time of minimum

three months.

We were formally approached

by the Walvis Bay Council who

stated that they have a problem

with excess water from the

waste treatment plant and that

it would be mutually beneficial

for both parties.

Danie Louw (NamPower) Will the water from Birds

Paradise be sufficient and

how long will that water last?

A Water Balance study will be

done for Birds Paradise so that

we know that there will be

enough left for the birds. Current

information suggest that there

will be sufficient water

Danie Louw (NamPower) What is the life time of the

proposed power plant?

The current contract is for 25

years but it could be extended

to 50 years if both parties agree

and the plant is maintained

effectively.

Norman van Zyl (Enviro Coming back to the previous

question: The amount of

When the Council approached

us they stated that they have

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Dynamics) water that will be used is

about 30% of the total input

into Birds Paradise.

too much water, to such an

extent that it is passing under the

road and moving into other

areas. They confirmed that they

have enough surplus water. We

are also concerned for our

project, because if they do not

have enough water then it is a

risk to the project. This risk will

therefore be addressed as a

matter of urgency.

Danie Louw (NamPower) The pipeline – what type of

material will be used? What

will be the impact of

corrosion?

It will be concrete based and it

will be trenched. The impact of

corrosion and security was

considered in the design.

Galina Alova (Ministry of

Trade and Industry)

Question regarding the

economics of the project:

Tariff price – you

mentioned earlier that this

project was the most

comparative. How much

cheaper will it be?

Level of the off-take price

– what is it currently fixed

at?

Xaris do not know what the tariff

price of the other tenderers was

– NamPower will be able to

answer that.

In terms of the pricing, there are

escalations that affect the price

so the price will fluctuate and it is

difficult to say what the fixed

price will be.

NamPower cannot provide

information from the

procurement process as it has

not been concluded yet and

therefore the information

remains confidential until the

formal contracts has been

concluded and financial close

reached. Xaris was selected

based on an 80% evaluation

criterion for price.

Gilbert Boois

(Walvis Bay Corridor

Group)

I would like to understand a

little bit more about the

timing of this project and

how it interacts with other

projects in the region.

Currently there are about 5

to 6 other southern gate way

studies that are under way.

How will this project interact

with those studies because

they are all different?

We do not know all of those

studies off hand but it will be

identified in the EIA and the

relationship between them.

Reiner Jagau

(NamPower)

I have not seen the previous

EIA so I do not know what

specialist studies were

We will discuss this later but to

give a brief answer, these studies

have either been done after the

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included. Based on what

you are saying there is a lot

of specialist studies that are

still outstanding. Will the

studies that were done in the

previous EIA be redone or will

it just be scrutinized and

added to?

previous EIA or are in the process

of being done. These studies

have not been included in the

previous EIA.

Reiner Jagau

(NamPower)

If you look at the timeline,

Xaris need to start

construction the 1st of May.

This means that all EIAs and

specialist studies will need to

be done by end of April?

You know your timelines, you

know what is doable in

Namibia, and you know how

long these specialist studies

take. I just want to know how

you are going to do it.

We have a deadline from Xaris

for the 30th of April for the EIAs.

We will talk about the process in

a moment. I will then allow you

to make comments on the

process. I will definitely open up

the floor again after I have

shown you what we are

proposing.

Nadia Haihambo

(NamPower)

Will mitigation measures be

identified for the air and

noise pollution from the

power plant?

Yes these will be addressed in

our specialist studies. They will

identify the impact and the

mitigation measures.

Johannes BM (Ministry of

Mines and Energy)

You are talking about using a

concrete pipeline that will be

buried to the power plant.

Do you also consider the

commission of hydrates?

It is a by-product of the gas

which settles and will need to be

cleared out.

This is already considered in the

design of the pipeline.

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Reiner Jagau

(NamPower)

There are certain safety

zones and standards that

apply to this type of energy

project. Have these all been

considered?

Finalization of these studies?

Does this now include the

study done by Pisces?

Yes it is all considered in the

design process.

Baseline studies conducted for

comparison, detailed work will

have to confirm, but the

concept and baseline studies

have already been done.

They will have to prove to us that

they have the safety standards

in place for each one of those

components. This is not an EIA

issue.

No, the main study is done by

PRDW in terms of the layouts in

the port.

Let me just clarify: the specialist

studies listed here are done

based on the effect on the

environment not safety

boundaries which need to be

done as part of the design.

These studies are based on the

effect that we see outside of

these safety zones. We need to

determine what the effect will

be outside of these safety zones

and determine whether it is

acceptable and whether it can

be mitigated. That is where

these studies will come in.

Danie Louw (NamPower) These safety issues – Who will

monitor it? Will there be an

operational plan?

If Lenders providing funding for

the project will insist that Xaris

comply with the IFC standards.

IFC will expect of them to have

the safety plan and various other

management plans in place.

NamPower, Xaris and the

Lenders have teams of advisors

who support to assure this. The

Lenders will perform a due

diligence on the project.

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Reiner Jagau

(NamPower)

These specialist studies that

you are referring to where

they included in the previous

EIA submission to the DEA?

No they were identified as

outstanding.

Danie Louw (NamPower) The IFC performance

standards have 12

performance standards. Will

the specialist studies identify

and consider all 12 of these?

Who will do the due

diligence on these?

We have identified all of the

standards that will be triggered

by this process and they will be

considered.

There are a number of parties

that do the due diligence, e.g.

the bank, the shareholders,

insurance company, the World

Bank and NamPower.

There is a consortium of advisors

that due diligence for

NamPower. There are 3 formal

sets of advising groups.

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Reiner Jagau

(NamPower)

Will separate Environmental

Clearance Certificates be

required for each

component of the project?

What about the FSRU – it is

not part of this study? When

can you expect clearance?

Does the DEA not need all

four of the studies to give

clearance?

The FSRU is a very packaged

unit. The key issue here will be

whether there will be a change

in water temperature. The FSRU

use seawater in the open

gasifying process – temperature

drops 5 -8 degrees and this is

pumped back into the ocean.

Two concerns here: 1) impact of

temperature change in the

water column and 2) the plume

that is created by the colder

water. Xaris will continue with

specialist studies while we

continue on the critical path

assuming closed loop operation

an no impact.

We have met with the DEA to

discuss the approach and we

have given them our timelines

and process requirements.

DEA will have to give us a

clearance certificate for each

process. They do not seem to

have a problem with our

approach. They see that the

components are functionally

independent of each other and

will accept them as they come

in.

Reiner Jagau

(NamPower)

The site for the power plant –

I am aware that you have

applied to purchase the

land, has it gone through

Nampab yet?

The area will be leased from the

municipality until it becomes

available for purchase. Xaris has

already given their interest to

buy the land once it becomes

available.

Nadia Haihambo

(NamPower)

A substation is required apart

from the one that will be

constructed by Xaris on their

premises. Will a separate EIA

be done for this substation?

Because if that is the case

then it will delay the process

more, while waiting for

environmental clearance.

I think at this moment that

substation falls outside of the

scope of our EIA.

Reiner Jagau

(NamPower)

So the Xaris substation is part

of the EIA?

Yes the Xaris substation is

included in the EIA. It will be a

complete power station. There is

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a NamPower takeoff connection

to a 220kV line from Kuiseb

Substation that is under

NamPower scope.

Reiner Jagau

(NamPower)

Can we get access to the

previous EIA?

It has been withdrawn so its

information no longer applies.

None of its information will be

used in our EIAs. The EIAs will be

redrafted.

Reiner Jagau

(NamPower)

Which of the specialist

studies have been

completed?

The Air pollution study is done,

the water balance and noise

pollution study is in progress, and

the sediment dynamics and

marine ecology studies will

provide a statement on the

process.

They have all been

commissioned, so they are all in

progress.

Reiner Jagau

(NamPower)

What is the turnaround time

at MET?

They have made a commitment

of 2 weeks internally after which

it will be handed to the PS for his

signature. Hopefully it will be

within a month. They

understand the urgency of

having a clearance certificate.

Danie Louw (NamPower) Timeframe for public

comments?

For this project we have allowed

only one week. Normally we

allow 2 weeks but due to the

time constraints we are only

allowing one week this time.

There is no specification of 2

weeks in the Act. That is our own

standard practice.

Reiner Jagau

(NamPower)

The pipeline will definitely be

underground? How deep?

Definitely underground.

Approximately 2 m below

ground.

??? Will there be any fire

protection in place?

This will be included into the Risk

assessments and are included

into the design requirements

(TdM?)


Energy

You are talking about the

FSRU that will be docked on

the sea. Why don’t you

construct more permanent

infrastructure on land? If you

The problem is not with the

lifetime of the power plant, it is

because we do not have time

to build permanent infrastructure

before commissioning the power

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are saying that the power

plant only has a lifespan of

25 years.

plant. Additionally this is a

flexible solution.


Energy

Is there a decommissioning

plan in place for after those

25 years?

Currently the plan is for NamPort

to take over the marine facilities

after the 25 years. The power

plant will be upgraded so that it

can last for another 25 years

provided the requirement exist.

Provided that the power plant

continues to operate, the status

quo will remain. Only after that

the project will be

decommissioned.

EIA and EMP will have a section

that covers the

decommissioning process,

covering future use.


Energy

Security arrangements of the

power plant and the

regasification pipelines.

Within NamPort site – Xaris will

adhere to their security

requirements and will have our

own security also in place.

For the pipeline - it will be buried,

specifically to enhance the

security.

For the power plant – there are

stringent security measures that

we have to adhere to, e.g.

access control and fencing.


Energy

Since the pipeline will be

buried how will spills be

monitored? Do you just wait

for it to erupt to the surface?

Since it is a pressured pipeline,

safety measures will be in place.

The minute there is a drop in

pressure, alarms will be

triggered.

It also depends on the mode of

failure. If there is a catastrophic

failure, you will immediately

know. If it is a very small leak,

you will over a period of time

detect it in your quantity

measurements.

Danie Louw (NamPower) Will the EMP cover

construction and operations?

Construction, operation and

decommissioning.

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Attendance List

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Documents

APPENDIX B5 - MINUTES