LIMBE POWER PROJECT AES-SONEL, CAMEROON ...1998/12/24 · Generation capacity in Cameroon is currently heavily reliant on hydro power (97% in the southern system). From the beginning

AES Sonel Limbe Power Project Environmental Impact Statement:

Executive Summary September 2003

Black & Veatch Project 107030

LIMBE POWER PROJECT

AES-SONEL, CAMEROON, WEST AFRICA

ENVIRONMENTAL IMPACT STATEMENT

EXECUTIVE SUMMARY

A STAND ALONE REPORT

SEPTEMBER 2003

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CONTENTS ABBREVIATIONS.................................................................................................................................iii

SUMMARY .............................................................................................................................................1 1. BACKGROUND..............................................................................................................................3

2. THE NEED FOR ADDITIONAL POWER............................................................................................5

2.1 Introduction ........................................................................................................................5 2.2 Demand Growth and Profile ..............................................................................................5 2.3 Generation Capacity from Existing Sources.......................................................................5 2.4 Generation Capacity Shortfall............................................................................................6 2.5 Proposed Solution to the Generation Capacity Shortfall ...................................................6

3. KEY PROJECT FEATURES..............................................................................................................7

3.1 Power Generation Plant .....................................................................................................7 3.2 Transmission Line...............................................................................................................8 3.3 Project Schedule .................................................................................................................8

4. CONSIDERATION OF ALTERNATIVES FOR POWER GENERATION...................................................9

4.1 Demand Management Options ...........................................................................................9 4.2 Fuel Type Options ............................................................................................................10 4.3 Alternative Plant Types ....................................................................................................11 4.4 Alternative Locations........................................................................................................12 4.5 Conclusions ......................................................................................................................12 4.6 Examination of Site Specific Alternative Locations..........................................................13

5. THE PRESENT ENVIRONMENT ....................................................................................................14

5.1 Air Quality ........................................................................................................................14 5.2 Noise.................................................................................................................................15 5.3 Cultural Heritage .............................................................................................................15 5.4 Land Use...........................................................................................................................15 5.5 Traffic and Transport .......................................................................................................15 5.6 Recreation and Amenity....................................................................................................15 5.7 Climate .............................................................................................................................16 5.8 Geology and Soils.............................................................................................................16 5.9 Topography.......................................................................................................................16 5.10 Hydrology and Drainage..................................................................................................16 5.11 Water Resources and Quality ...........................................................................................17 5.12 Flora and Fauna...............................................................................................................17 5.13 Marine Ecology ................................................................................................................17 5.14 Landscape.........................................................................................................................18 5.15 Natural Hazards ...............................................................................................................18 5.16 Man-made Hazards ..........................................................................................................18

6. CONSULTATION PROGRAMME ....................................................................................................19

7. THE ENVIRONMENTAL ASSESSMENT..........................................................................................21

7.1 Environmental Standards .................................................................................................21 7.2 Compliance Screening......................................................................................................23 7.3 Environmental Impact Assessment ...................................................................................26 7.4 Cumulative Impacts ..........................................................................................................29

8. ENVIRONMENTAL ACTION PLAN................................................................................................32

9. CONCLUSIONS ............................................................................................................................35




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TABLES Table 1 Summary of air emission limits and ambient air quality guidance Table 2 Noise guidelines Table 3 Water quality guidelines Table 4 EMF guidelines Table 5 Compliance with Cameroon laws, policies and regulations Table 6 Compliance with International Finance Corporation and EIB policies and

procedures Table 7 Key impacts of the Limbe Power Project Table 8 Summary of environmental impacts associated with the power plant,

substation and associated structures, with and without mitigation Table 9 Summary of environmental impacts associated with the transmission line and

associated structures, with and without mitigation FIGURES Figure 1 Location plan Figure 2 Site layout Figure 3 Detailed location plan Figure 4 Project schedule Figure 5 Alternative transmission line routes and power plant sites Figure 6 Requirements of the Environmental Action Plan PHOTOS Photo 1 Proposed power plant site (looking east) Photo 2 Proposed power plant photomontage Photo 3 Beach Mile 6




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ABBREVIATIONS

AGO Atmospheric Gas Oil BV Black & Veatch CAP Compensation Action Plan CDC Cameroon Development Corporation CFCs Chlorofluorocarbons CO Carbon Monoxide CO2 Carbon Dioxide DB Decibel EAP Environmental Action Plan EIA Environmental Impact Assessment EIAF Emerging Africa Infrastructure Fund EIB European Investment Bank EIS Environmental Impact Statement EMF Electro-magnetic field EPC Engineer Procure and Construct FCFA Franc – Communauté Financière Africaine FMO The Netherlands Development Finance Company HFO Heavy Fuel Oil HGV Heavy Goods Vehicle ICNIRP International Commission on Non Ionizing Radiation

Protection IFC International Finance Corporation LBZG Limbe Botanic and Zoological Gardens LPG Liquefied Petroleum Gases LPP Limbe Power Project MINEF Ministry of Environment and Forestry NOx Nitrogen Oxides NRPB National Radiological Protection Board OPs Operational Policies PAPs Project Affected Persons PCBs Polychlorinated biphenyls RoRo Roll on Roll Off facility for loading/unloading ships SEO Site Environmental Officer SOx Sulphur Oxides SONARA Société Nationale de Raffinage TMS Traffic Method Statement TSS Total Suspended Solids WBG World Bank Group WHO World Health Organisation




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SUMMARY

The proposed Limbe Power Project (LPP) will provide generation capacity to address the current electricity demand-supply deficit in the southern interconnected electricity system of Cameroon. In particular, the project will address the urgent need for new generation capacity in the next dry season with the lowest possible generation cost available given the time constraint. Non-generation alternatives such as demand side management were considered to address the deficit but were deemed to be inadequate solutions. Generation capacity in Cameroon is currently heavily reliant on hydro power (97% in the southern system). From the beginning of 2000 to August 2003, Cameroon has experienced exceptionally dry weather. This weather pattern, in combination with an increased demand from all sectors of the economy, has created a serious shortage of power during dry seasons, resulting in load shedding and brown-outs. The installation of approximately 80MW of heavy fuel oil burning plant will result in a diversification of the generation capacity and in improved system reliability. Such additional generation will result in a reduction in electrical outages experienced in recent years while supporting the national economy with an increased reliable supply of electricity. In providing a more reliable electricity supply to the grid it will bring benefits to the populous areas which includes the capital, Yaoundé, and the main commercial centre, Douala. It will also reduce the overall cost of electricity for customers currently running diesel generators during load shedding periods by eliminating the need for them to purchase high cost fuel. The costs of the project will not have a direct effect on the electricity tariff that would increase the prices paid by customers. The choice of the fuel type, plant type and site location has been affected by availability, cost and technical factors. At the same time opportunities to minimize environmental impacts in the short and long term have also been considered in the selection of the LPP as a preferred option. The heavy fuel oil’s low sulphur content was a big factor. Also, with the fuel supply being available immediately adjacent to the plant and delivered by pipeline, the potential for spills is far less than if fuel had to be trucked to an alternative location. This site also avoids the impact associated with significant movements of HGVs to deliver fuel that would be required with an alternative location further from the refinery. In the long term, the Limbe site is good in that it provides opportunities for synergies with the oil refinery, such as combined fuel and water supply, and has the advantage of being highly suitable as a landing point for offshore gas. The infrastructure developed at this site could, in the future, act as a catalyst for the introduction of natural gas as an additional source of fuel for electricity generation. The LPP is therefore seen as contributing towards the development of AES-SONEL’s Business Development Plan in the medium term and facilitating the development of more environmentally benign electricity generation in the future. As part of the environmental impact assessment of the LPP a number of impacts during the construction, operation and decommissioning phases of the project were identified. Key construction impacts relate to the temporary increase in traffic and the influx of




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temporary workers to the study area however with the implementation of the mitigation measures identified in the EIS, the residual impacts are not considered to be significant. Key operation impacts relate to air and water emissions, and the generation of waste as a result of the operation of the power plant. Appropriate mitigation measures have been identified as part of the EIA process to mitigate these impacts. An Environmental Action Plan (EAP) has been prepared which identifies the mitigation measures relevant to the LPP. The EAP also identifies the periods during which mitigation measures must be implemented, who is responsible for implementation and the longer term monitoring requirements of the LPP. The EAP is intended to ensure that the mitigation measures as set out in the EIS are properly and fully implemented; it is included within the EIS. AES-SONEL has prepared a ‘Compensation Action Plan’ (CAP), separate to the EIS main report, to set out the procedures for the management of the compensation process. Surveys undertaken along the route of the transmission line have identified a total of 172 land owners and 164 crop owners who will be directly affected as a result of clearance of the transmission line, although no physical displacement will occur. AES-SONEL anticipates very few, if any, cases of economic displacement. Compensation will be provided for both affected land and agricultural assets, and AES-SONEL has enhanced the compensation level beyond that required under Cameroonian law to fulfill the guidelines of the international finance community.

The EIS has been undertaken by Black & Veatch Ltd on behalf of AES-SONEL. The CAP has been prepared by AES-SONEL.




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1. BACKGROUND

This Executive Summary is a stand alone document that draws upon the main Environmental Impact Statement for the Limbe Power Project (LPP); it is intended to provide a briefing for decision makers and to allow the general reader an appreciation of the key environmental issues of the project and the manner in which they have been addressed. The Environmental Impact Statement (EIS) is being published in three volumes:

The EIS – main text; The EIS – appendices, which provide background information to the EIS; The Compensation Action Plan.

These reports will be submitted to the International Finance Corporation (IFC) for posting on the World Bank Infoshop.

In December 1998, a new law governing the electricity sector in Cameroon was adopted and enacted (Law no. 98/022 of December 24th, 1998). The State was required to withdraw from any direct involvement in electricity supply activities in favour of private operators. In order to facilitate this, SONEL, the National Electricity Corporation, was to be privatised. In July 2001, AES-SONEL signed a Concession Agreement with the Government of Cameroon to become the majority owner of the integrated electric utility for a period of 20 years.

From the beginning of 2000 to August 2003 Cameroon has experienced exceptionally dry weather. This weather pattern, in combination with an increase in the demand for electricity from all sectors of the economy, has created a serious shortage of power during dry seasons resulting in load-shedding and brown-outs. This has been deeply unpopular and damaging to the Cameroonian economy.

AES-SONEL examined new permanent power generation alternatives to address the urgent electricity shortage in Cameroon. The most practical and cost effective means to provide power in a short time period was to install approximately 80MW of thermal power plant adjacent to the SONARA oil refinery at Cape Limboh, near the town of Limbe, south-west Cameroon. Figure 1 shows this location within Cameroon, and also shows the overall location of the country which is situated on the Gulf of Guinea and forms part of West Central Africa.

AES-SONEL began to undertake an Environmental Impact Assessment (EIA) for the LPP in 2002. This Executive Summary presents a summary of the findings of the EIS in sufficient detail to allow a full understanding of the environmental issues raised by the LPP. It describes the manner in which the LPP is to be undertaken so that the main objective – the benefits of reliable electrical supply - can be achieved whilst adverse environmental impacts are minimised. The EIA has been undertaken in accordance with the requirements of the Ministry of Environment and Forestry (MINEF), the ministry that is responsible for the review and approval of EIAs in Cameroon. The EIA has also been undertaken in accordance with the requirements of potential lenders for this project, namely the International Finance Corporation (IFC), the European Investment Bank (EIB), Proparco, the Netherlands Development Finance Company (FMO) and the Emerging Africa Infrastructure Fund (EAIF) (the EAIF has commissioned FMO to act as their environmental and social advisor). The requirements of MINEF and these agencies can be found in the appendices of the main EIS report.




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The EIA has been undertaken by Black & Veatch Ltd. on behalf of AES-SONEL. A full list of the individuals and organisations responsible for undertaking the environmental impact assessment and preparing the EIS is provided in the EIS appendices. The Compensation Action Plan (CAP) has been prepared by AES-SONEL, and is provided as a separate document.




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2. THE NEED FOR ADDITIONAL POWER 2.1 Introduction

The existing national electricity generation and transmission system in Cameroon is principally separated into three independent subsystems. The northern system supplies Ngaoundéré, Garoua, Guider and Maroua, the eastern system supplies the eastern province - Bertoua, Abong-Mbang and Batouri, whilst the southern interconnected system covers the southwest region - Yaoundé, Douala, Bafoussam and Bamenda. Throughout the country there are small areas that are supplied with electricity that are isolated from the three principal subsystems.

On the southern interconnected system, there is currently an inability to reliably meet dry season demand due to low water levels in the reservoirs, low rainfall levels, insufficient investment in thermal generation and transmission capacity, and insufficient redundancy in all areas of the electric system. This imbalance between supply and demand is exacerbated by the fact that demand has grown rapidly over the past 5 years.

The LPP will be connected to the southern interconnected system. Cameroon’s primary sources of electricity in the southern system are the older hydro power stations at Edéa and Song Loulou, both on the Sanaga River. The installed capacity and average production of these hydropower stations taken together is some 650MW with an annual production of about 3200 GWH in 2002. Due to the wet season / dry season hydrological imbalance, annual capacity factor of these plants is approximately 55%. In addition to these hydro power stations, there are a number of thermal generation plants which have an installed capacity of about a further 90MW.

2.2 Demand Growth and Profile

Since 1995, medium voltage power consumption (defined as consumption at the 30kV level) growth has averaged 5.2% per annum and low voltage power consumption growth has averaged 7.8%.

A demand study for the southern interconnected system was undertaken with three main demand growth scenarios of strong, medium and weak growth. These result in average annual growth over the coming five years of 8.3%, 6.5% and 5.5% respectively.

This study also predicts a growth of 6.2% per annum in the Public Sector peak power demand level, rising from 395MW in 2002 to 533MW in 2007, an increase of 138MW. This shows the need for new (particularly dry season peak hours generation) capacity to meet the growing demand for electricity.

2.3 Generation Capacity from Existing Sources

Hydro resources Hydroelectric power provides approximately 97% of generation in the southern region of Cameroon. The ability to meet demand from the existing hydro facilities is marked by a significant difference between dry and wet seasons. For almost half of the year during the wet season, available production capacity is limited only by plant technical availability. For the other six months during the dry season, available production




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capacity is limited by natural and/or regulated river flow capacity. With the recently observed low flow levels in dry seasons, although there is technically available capacity in the stations, hydropower has not been able to contribute sufficient power in the dry season.

Diesel generation The existing 90 MW of grid-connected diesel capacity is not sufficient to provide voltage stabilization at the substations and to bridge the dry season gap between energy demand and available hydroelectric resources. Additionally, the diesel generation engines are designed for peaking capacity, whereas the dry season shortfall now requires baseload thermal supply in addition to peaking capacity. Currently there is no reserve margin in the system. Utility systems typically maintain reserve capacity margins of at least 10-15% (i.e. 10-15% greater installed capacity than peak system demand) to cover unexpected breakdowns and failures. In a system with adequate generation, the capacity in reserve is used primarily as back-up during equipment failures and to supplement production in below-average hydrologic years. The installation of the LPP will allow the existing diesel units to be used for reserve margin and emergency capacity.

With the variability in rainfall experienced in Cameroon and the reliance on hydro capacity, it is vital that the existing thermal capacity is maintained to fulfill its role.

2.4 Generation Capacity Shortfall

Studies have shown that if no investment were made to increase the production capacity of AES-SONEL, there would continue to be a serious capacity/energy deficit, even if future years see better hydrological conditions than have recently been experienced. This generation capacity shortfall would cause an inability to reliably meet demand and could partially affect the growth of the Cameroonian economy.

2.5 Proposed Solution to the Generation Capacity Shortfall

AES-SONEL is obliged under its acquisition agreement with the government of Cameroon, to reduce or eliminate the load-shedding in the dry season and to mitigate the effects of any load-shedding. As such, dry season capacity is required in the southern interconnected system. Due to time constraints, only liquid fuel fired generation capacity can be installed in time to achieve an increase in supply by the dry season of 2004. AES-SONEL has therefore proposed an installation of approximately 80MW to meet the anticipated generation shortfall. The location at the refinery limits the size to 80MW owing to transmission system constraints. An 80MW plant provides sufficient capacity during a year with average rainfall; however it does not meet the entire capacity shortfall based on conservative rainfall assumptions. AES-SONEL is currently investigating a number of other options to address any remaining shortfall in capacity.

The LPP will not affect tariffs as the tariff mechanism does not provide for the cost of the project to be passed onto the consumer. In addition, the increased system reliability will reduce the cost of electricity for customers currently purchasing expensive fuel to operate their private diesel generators during load shedding periods.




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3. KEY PROJECT FEATURES

The LPP proposes to generate approximately 80MW of power to cover the projected shortfall in electricity in the southern region of Cameroon. The LPP is designed to operate in an intermediate load to baseload range during the dry season (November to March). During the wet season, the plant is expected to be primarily in a standby mode but will likely operate during some periods.

After consideration of a number of alternative locations, the decision was made to construct the power generation plant close to Cape Limboh, south-west Cameroon (Figure 1).

The proposed works will comprise:

(a) the installation of a new power plant of approximately 80MW, which would use

heavy fuel oil, and its associated structures, adjacent to the SONARA oil refinery at Cape Limboh, which is near the town of Limbe, south-west Cameroon;

(b) approximately 11.6km of new 90kV single circuit overhead transmission line

between the new power generation plant and the existing Limbe 90/30kV substation;

(c) a new high voltage (90kV) substation located next to the new power generation

plant; and

(d) extension of bays at the existing Limbe 90/30kV substation so as to connect the 90kV line to the grid.

3.1 Power Generation Plant

The new 80MW power plant will consist of five medium speed diesel engine units in a single building about 40m wide x 50m long and 13 m high on a site immediately adjacent the existing SONARA oil refinery site. Additionally, there will be a number of fuel and cooling system tanks and associated ancillary structures on the site. The proposed layout is shown in Figure 2 and Photo 1. Photo 2 provides a photomontage illustrating an indicative site layout (not actual location) in 3D. The location next to the oil refinery also allows for convenient access to the site, as well as the delivery of heavy fuel oil (HFO), and other associated services.

The generation plant element of the project will be implemented on a turn-key basis, comprising the engineering, procurement, transportation, erection on site (including civil works), installation, testing, and commissioning. Wartsila were appointed by AES-SONEL in June 2003 to undertake this component of the works. Wartsila will be fully responsible for engineering, manufacturing and/or procuring the power plant and associated components. The majority of the components for the power plant site will be manufactured and procured internationally, as they are not available in Cameroon. Equipment and materials procured outside of Cameroon will be delivered by ship to either the Port of Douala, or to a location on the coast near the site, or the Port of Limbe. The heaviest equipment (engines, generators, etc) will most likely be delivered during the evening hours near the site, to minimize the impact on traffic. There will be an estimated 100 HGV deliveries from landing point to the site.




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Materials and equipment procured locally or nationally - concrete and aggregates - will be transported directly to the power plant site by road.

Construction will include a wide range of activities including leveling the land and constructing foundations. Piling and use of explosives for construction will not be required. The short time period for the construction programme will be possible in part by the proximity of the oil refinery and the associated services. It is anticipated that a peak construction work force of approximately 350 people will be needed during the eleven month total construction period.

3.2 Transmission Line

A new transmission line from a new substation at the power plant site to the existing AES-SONEL substation at Limbe will be constructed as part of the LPP. The route is shown in Figure 3.

Detailed design and specification for the transmission line components will be undertaken by AES-SONEL. The transmission line contractor, Alstom will be responsible for procuring and constructing the suspension and angle towers, the aluminium conductor wires, and any necessary ancillaries needed to erect and maintain the lines. A major proportion of the transmission line components will be manufactured and procured outside of Cameroon e.g. tower steel and components, conductors and insulators, as they are not available in Cameroon. Civil engineering requirements will, however, be sourced locally.

The programme for the transmission line works is critical to the optimum timing for the project and it will be essential to have this infrastructure in place prior to completion and commissioning of the LPP.

3.3 Project Schedule

The main objective of the LPP is to complete installation as soon as possible in order to alleviate problems during the next dry season, i.e. to be partially operational by March 2004. There is therefore a tight time schedule for constructing and commissioning this project.

The project schedule for both the power plant and the transmission line components is shown in Figure 4.




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4. CONSIDERATION OF ALTERNATIVES FOR POWER GENERATION

A number of options were considered to address the predicted shortfall in electricity in 2003 and subsequent years. These included the following:

Demand management options; Fuel type options; Plant type options; Location options.

Options were then evaluated on the basis of technical, economic and socio-environmental issues.

4.1 Demand Management Options

Three main types of demand management options in relation to the current shortfall of electricity were considered and are discussed below:

Technical and commercial loss reduction;

Distribution efficiency was less than 65% in 2002, with losses both technical and commercial in nature. Distribution technical losses are estimated to fall in the range of 8-14% of supplied power and are caused by long medium voltage distribution lines, overloaded lines and transformers and the poor standard of aged equipment. Technical loss reduction will be addressed through systematic repair, replacement and upgrading of lines and transformers. Experience has shown that combating non-technical losses does not reduce demand for power as previously non-billed or illegal customers do choose to pay once they have been regularized. Non-technical losses will therefore be addressed with improved distribution management procedures and billing systems. Transmission line losses; Transmission network efficiency of 93% represents an average of 28MW losses in the system. Due to the nature of the demand profile, this lost power is greater during evening peak hours and any reduction in these losses will have a direct impact on the required peak generation capacity. AES-SONEL intends to increase transmission network efficiency to 95% in 2005 through improved maintenance, capacity enhancement and better operation. The largest impact on transmission system losses will result from the Reactive Compensation Project, whereby high tension and medium tension capacitor banks will be installed at a number of substations throughout the network. This project is expected to reduce transmission losses by approx. 5% and displace between 10-20MW of thermal generation capacity requirement.

A further major contributor to reducing peak power demand and consequently losses during peak demand hours is expected to be the Compact Fluorescent Light-bulb (CFL) replacement programme. Studies to indicate technical feasibility, economic impact, implementation mechanism and to identify the areas and localities to first be targeted have been carried out during 2002; the first stage implementation is expected to be the




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Western region with later implementation throughout the country. Phase one of the project would likely involve replacing some 300,000 light-bulbs during the next two years for an expected reduction in load and losses of 5MW during peak hours.

Time of day pricing;

A key element in demand management is implementation of time of day and seasonal pricing. Time of day pricing is being discussed with the electricity regulator, ARSEL. The large variation in load makes it obvious that there is the potential for a significant reduction in peak load by instituting higher pricing during this period. Owing to the very low per capita consumption of electricity at the low voltage level, it is only socially acceptable to install time of day pricing on medium and high voltage customers. Medium voltage customers tend to be industrial customers, many of whom have the ability to shift high power demand batch manufacturing processes out of peak demand periods thereby reducing overall power costs to them, as power will be priced lower during off peak periods. Implementation of time of day pricing requires that point of supply meters be changed from existing mechanical types to new electronic versions. Even though over 50% of the meters have already been changed, and the remainder will be changed in the coming 6 months, this programme will not have a material impact on the need for new capacity in the short term.

Thus, although all of the demand management options would contribute to a reduction in load shedding throughout the system, demand management on its own is not able to reduce demand sufficiently to meet the shortage in electricity supply predicted in the southern interconnected system. As a result, AES-SONEL has investigated the installation of new generation capacity options.

4.2 Fuel Type Options

There is a wide range of possible generation options which can be considered, such as geothermal, solar, hydropower, wind, coal, oil (various grades), various liquid and fuel gases, or some combination of the above. Of the above, only hydro power, gas and liquid fuels were identified as options likely to provide sufficient generation capacity in the requisite timeframe, and were therefore considered in greater detail. The other options were not considered in greater detail due to the size of the required generation capacity, lack of experience in their development in Cameroon and/or the lack of presence of the raw material in Cameroon.

4.2.1 Hydropower Capacity Increase

Many different schemes for increasing hydropower generation capacity have been studied by Sonel and recently by AES-SONEL. However, none are achievable within the short to medium term. Some of the large hydropower schemes also may not be feasible on environmental or socio-economic grounds, whilst the need for detailed investigations of the environmental impact of large schemes makes all hydropower options suitable only for long-term consideration.




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4.2.2 Gas Options

Cameroon has significant proven and unproven offshore gas reserves. Analysis has indicated that gas could be the least cost and most environmentally benign fuel. However, none of the fields currently under evaluation could be operational within the timeframe required for new generation due to the time required to resolve issues such as site selection, permitting and financing. Furthermore, as the additional power generation demand will be highly seasonal, there is a need to have alternative market demand for gas to compliment the seasonal power generation demand to make it technically and commercially feasible. Finding a means of addressing the seasonality of the gas demand and introducing competition among potential suppliers means that gas powered thermal generation is a medium term solution. The likelihood of gas being selected as the fuel for AES-SONEL’s next power plant is high. As such, the selection and development of a site for the provision of immediate generation capacity that at the same time provides access for landing from offshore gas fields would be advantageous.

4.2.3 Liquid Fuel Options

The liquid fuel options include various grades of fuel oils which are refined locally in Cameroon and other fuels such as methanol, which would have to be imported. One of the key variables in the choice of the specific fuel is the cost. The nationally owned SONARA refinery is able to supply light fuels such as petroleum and diesel but these fuels attract high prices which are attributable to the established government cost structure of the fuel. In contrast the HFOs produced by the refinery are attractive economically.

SONARA is currently exporting all its HFO production due to the absence of an internal market for HFO, and to a lesser extent the lack of suitable infrastructure to overcome the storage and transport problems as the fuel needs high temperatures to be kept liquid. This requirement would be readily achieved by a user sited close to the refinery. Diesel is only suitable for small installations, start-up operation and emergency supplies. Methanol is also available, however it is a high cost option as it is priced at World market levels. Thus in terms of the type of technology and fuel, thermal generation is the only option able to provide the immediate supply needed and HFO from the SONARA refinery is the lowest cost alternative.

4.3 Alternative Plant Types

The analysis of alternatives for the scheme included considering a range of plant types suitable for use with liquid fuels, a number of which can use both heavy and light oils and also gas. The identification of the advantages of HFO means that three main types are available: reciprocating engines, oil gas turbines and HFO/gas turbines.




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4.4 Alternative Locations

The choice of location of any power plant is a balance between proximity to the “fuel” source and proximity to a point of access to the electricity grid, minimising the electric system impact of a substation failure and key load centres, as well as minimising construction impacts. In addition, the time required to negotiate for the property rights to a site not owned by AES-SONEL was an important consideration in the installation of generation capacity by the 2004 dry season.

The proximity to the load centre is a key consideration owing to the costs and time involved in making an initial connection to the grid and more importantly, the long-term stability and cost of grid operation.

Four sites were considered, including Logbaba substation, Bonaberi (Deido substation), Bekoko substation and the SONARA refinery site at Limbe. The SONARA refinery site near Limbe was found to be superior in a number of ways, offering a large site close to existing services such as ready supply of HFO and freshwater, and adjacent to the sea for a possible link to offshore gas supply in the future. The connections to the existing transmission system and capability of the site for future expansion were also in its favour.

4.5 Conclusions

The analysis of options identified that the only options in the short term, taking into account suitable locations and fuel types, are the use of diesel engines burning diesel fuel at Logbaba or the use of HFO-fired diesel plant at the SONARA refinery, Limbe. The prohibitive cost of diesel fuel means that HFO is the only option that can deliver a more economic, immediate solution to the current electricity demand-supply deficit.

Since the transport of large amounts of HFO is both costly and technically problematic, the preferred solution is the installation of approximately 80MW of HFO reciprocating engines adjacent to the SONARA oil refinery at Limbe. Not only is this the cheapest fuel option, but this option will also minimize both short and long term environmental impacts. In the short term, with the fuel supply being available immediately adjacent to the plant and delivered by pipeline, the potential for spills is far less than if the fuel had to be trucked to an alternative location. In addition, the environmental impact of several trucks travelling the return trip from the Limbe refinery to whatever alternative location had been selected, likely Douala, would be eliminated.

In the medium to long term, the power plant being located at Limbe also increases the possibility that natural gas will be developed in Cameroon. The likelihood of natural gas being selected as the fuel for AES-SONEL’s next power plant are high, but are still dependant on finalizing the price for gas at the potential gas delivery locations. The gas reserves that could be delivered to Limbe are reasonably close to the LPP site and to Cameroon’s commercial center - Douala. The fact that the LPP can be converted to a natural gas fired plant enhances the probability of future gas generation projects.




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4.6 Examination of Site Specific Alternative Locations 4.6.1 Power Plant Site

In addition to this overall siting for a power plant, options for the detailed siting of the plant in the vicinity of the SONARA oil refinery were assessed. The number of potential power plant sites was limited due to issues of land availability, but three possible locations were identified. These locations were at the entrance road, a site at the western edge of the refinery, or at the ocean front.

The location of these sites is shown in Figure 5. The selection of the preferred site for the power generation plant was determined on the basis of the following:

Walkover of all sites; Size of sites; Topography of sites; Review of interconnection points with SONARA; Nearby sensitive receptors e.g. residential properties; Indicative noise survey; Sea access; Visibility impact.

The ocean front site was the preferred site as this location is more secure, there is a greater area of land available, the distance for fuel supply is shortest and it is furthest from sensitive receptors such as residential properties.

4.6.2 Transmission Line Route

The transmission line route is approximately 11.6 km in length. The impacts of four different routes, as shown in Figure 5, were examined. The preferred transmission line route was selected in order to avoid houses and minimize the impact to lands and agriculture. The preferred route was also selected on the basis of minimising disturbance to several small settlements during construction and operation by slight deviation from the shortest route, and wherever possible routing the line alongside roads and existing infrastructure. A significant proportion of the line traverses the government-owned Cameroon Development Corporation palm plantations.




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5. THE PRESENT ENVIRONMENT

The existing environment and those aspects of it which are likely to be affected by the LPP have been fully described in the EIS. The information presented in this section is based on data from a mixture of existing project literature; a specific literature search; local and national maps from the Cartographic Institute and information collected from relevant Ministries and Departments in Cameroon. In addition the consultations, site visits and surveys undertaken for the EIA have contributed to the database.

The proposed power plant site is located adjacent to the SONARA oil refinery, off the main N3 road which runs from Douala, to the east of the project site, to Idenao which is located to the west of the project site (Figure 3). Along the access road to the power plant site there are approx. 30 residential properties for the SONARA oil refinery workers and a SONARA guesthouse and an athletic club. There are a number of villages in the study area, including those to the west of the site which comprise some 7000 people with schools and hotels serving the area and the coastal holiday trade. Along the route of the transmission line there are a further eight villages, though no structures are located within the 45metre wide wayleave.

Household surveys were undertaken for the EIA by staff of Limbe Botanical and Zoological Gardens to identify the socio-economic characteristics of project affected persons along the transmission line route; the scope of works for the household surveys, and the detailed outcome of the survey, is provided in the Compensation Action Plan.

Administrative issues in the study area are addressed by a local council. Additionally to this civil structure, there is a local administrative unit headed by a traditional chief.

The following summarises the baseline conditions of the study area, as set out in the EIS.

5.1 Air Quality

Air quality is not systematically recorded in Southwest Cameroon. Land use is therefore likely to provide the main background input into the determination of air quality at the project sites.

The SONARA oil refinery is the closest source of potentially significant anthropogenic emissions to air. The refinery has a capacity of 2 million tonnes of crude oil per year and is also known to operate three 3MW diesel fuel engines. However, data on precise emissions are not available.

Mount Cameroon, located 26km to the north east of the site, may be a significant source of sulphur dioxide in the local area, however there is no data available regarding ambient levels from this active volcano. Volcanic gases usually consist of steam, followed in abundance by carbon dioxide and compounds of sulphur and chlorine.




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5.2 Noise

Indicative ambient noise levels were measured by an independent consultant, in August 2002 at the three noise-sensitive receptors within the vicinity of the power plant site: residential properties along the access road to the site, the athletic club and the guesthouse. Based on 5-minute samples, typical background (LA90) noise levels for the guesthouse and residential properties are 46 and 45 dB(A) respectively.

5.3 Cultural Heritage

Site surveys and consultations with local officials and village chefs indicate there are no sites of cultural heritage within or immediately adjacent to the power plant site. There is one grave located within the wayleave of the transmission line route.

5.4 Land Use

The power generation plant site is an unused area. The site is owned by the Government, and was leased to SONARA. It is located outside the fenceline of the oil refinery and is a greenfield site, which has not previously been developed for industrial purposes. The main land use adjacent to the power generation plant site is the SONARA refinery. SONARA’s port installation provides for vessels of 30 000 to 90 000 tonnes. Along the access road to the site the main land use is residential (SONARA worker’s properties). There is also a nearby SONARA-owned guesthouse and athletic club.

Land use along the transmission line route is predominantly commercial palm plantations owned by the Cameroon Development Corporation (CDC); this comprises approx. 5.7 kms of the route. Surveys indicate that approximately 0.67km is owned by Chantier Naval (the navy) and 1km of the route is owned by SONARA. The remaining 4.23kms of the line route comprises village land and land privately held.

5.5 Traffic and Transport

The refinery is located off the N3, the main road from Douala, to the east, to Idenao in the south-west peninsular of Cameroon. An existing track provides access to the proposed site, which is tarmac for approximately half its length; residential properties are situated adjacent to this track near the main road. A separate entrance road serves the refinery and its dedicated port.

Traffic surveys were undertaken by AES-SONEL in summer 2003 and showed that although the roads immediately within and outside Douala were heavily congested and in poor condition, the roads outside of Douala were adequately maintained and traffic was relatively light.

5.6 Recreation and Amenity

A guesthouse and an athletic club are located approx. 650m to the north west of the proposed plant site. The beach located at Mile 6 is a bay located immediately to the west of the power plant site (Photo 3). This beach is popular with local people during the weekends, whilst generally the coastal area attracts some tourism from Douala and Yaoundé.




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Along the main road, which runs adjacent to the route of the transmission line, the main amenities are hotels serving local and wider tourism, with a large new hotel currently under construction along an access road to the transmission line route. There are also three schools, two secondary and one primary, located along the main road.

5.7 Climate

The climate of south-west Cameroon is a tropical monsoon climate, the Guinea monsoon, ensuring it is very wet and warm with one short, less humid season from December to March. The average annual rainfall is from 2000 to almost 10000mm. Air temperature varies seasonally from 27 to 32 degrees C; relative humidity varies between 75 to 85%, and is influenced by the area’s maritime location. Sunshine hours are short for most of the year due to cloud cover and rainfall. The general wind direction is from the south-west. Wind speeds are typically in the range of 0.5 to 2 m/sec. The onshore wind is responsible for the near-saturation humidity.

5.8 Geology and Soils

Western Cameroon lies on the junction of the West African and Congo continental plates. Stresses and instability in this area have resulted in the formation of a series of volcanoes of which Mount Cameroon is the largest in West and Central Africa. Most soils in the study area are therefore of volcanic origin or are alluvial deposits from rivers, estuaries or the sea.

A geological site investigation was undertaken for AES-SONEL in March 2003. This showed the proposed power generation plant site is underlain by predominantly volcanic rocks, with some partially consolidated deposits of loose volcanic materials.

5.9 Topography

The study area is dominated by the presence of Mount Cameroon, West and Central Africa’s highest volcano (4,095m), which is 26km to the north of the power plant site. A dome 50km long and 35km across the mountain starts at the sea and first rises to a small subsidiary peak of 1713m called Etinde or Small Mount Cameroon.

The power plant site is approximately 11m above sea level (ASL), rising to 13m toward the north of the site.

The topography along the transmission line route rises from approx. 13m ASL at the power plant site to an elevation of 50m ASL then undulates gently between 30-80m along the remainder of the line apart from two noticeable hills where the land rises to over 110m.

5.10 Hydrology and Drainage

Drainage in south-west Cameroon is characterised by semi-permanent and permanent streams which can more than triple their volume during the rainy season. The most important streams are the Sanje, Limbe and Ombe. These streams discharge large quantities of inland sediment and organic matter into the Atlantic Ocean.




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There are no existing drainage channels across the proposed plant site. A number of seasonal drains cross several access roads to the transmission line route.

5.11 Water Resources and Quality

Water resources There are no watercourses or ponds on the power generation plant site. The water resource requirements of the SONARA site are provided by wells that have been drilled into the groundwater supply.

There are no permanent watercourses that dissect the transmission line site.

Water quality High precipitation and numerous coastal rivers provide large quantities of warm and low salinity water in the area. Inflows from large rivers have a major influence on water quality in the Bight of Biafra. The large suspended sediment load from these rivers contributes to the high natural turbidity of the coastal waters.

The main discharges into the sea in the vicinity of the power plant generation site are a result of natural drainage from the SONARA oil refinery site.

5.12 Flora and Fauna

The south-west Province of Cameroon is recognised as being rich in biodiversity. The Limbe Botanical and Zoological Gardens (LBZG) were commissioned to undertake an ecological survey of both the proposed plant site and of the transmission line route on 22-23 November 2003, a wildlife survey was also undertaken along the transmission line route. The conservation value of the plant and animal species found were compared with the list of protected species in Cameroon and also the IUCN Red data species list (IUCN 1997) as well as the World Conservation Monitoring Centre (1995) list of threatened tree species.

Power plant site The natural vegetation at the power plant site is almost absent due to intensive and repeated human activities. There were no threatened habitats or species on the power plant site. There were also no locally important medicinal species. The species observed were known to be found abundantly elsewhere in the region.

Transmission line route Natural vegetation is almost absent along the route of the transmission line due to intensive and repeated human activities such as subsistence farming, fallow ground and CDC palm plantations. The surveys did not identify any threatened habitats or plant or animal species. The floral and faunal species in the study area were typical of the local area. There were no known protected sites of conservation within the vicinity of the proposed project. The full results of the surveys are provided in appendices of the EIS.

5.13 Marine Ecology

There are no data readily available for the marine ecology directly off the coast at the proposed power plant site. Information for the Gulf of Guinea however indicates that this Gulf is rich in marine life, including deep sea and coastal fisheries, sea birds, sea




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turtles and marine mammals. Extensive mangroves occur along the coast and provide critical habitat for many crustaceans, molluscs, fish and birds. Several beaches provide important nesting sites for the Green and Olive Ridley turtles although Limbe Botanic and Zoological Gardens staff have confirmed that no turtles or turtle nests have been sighted either at the power plant site or in the Limbe area.

Pelagic fish communities are widely distributed from the estuaries to offshore up to 10 nautical miles. White shrimp (Parapenaeopsis altantica, Palaemon hastatus) fall within the nearshore and are fished in the artisan fishery. There are however no known fisheries in the immediate vicinity of the power plant site.

5.14 Landscape

The SONARA oil refinery buildings, towers, and process equipment dominate the landscape around the power plant site (Photo 3). The refinery is clearly visible from the main road and borders the proposed power plant site. The refinery also has a port, and there are often large tankers moored at this port dominating the seascape.

The landscape along the transmission line route is typically cultivated land, dominated by palm plantations forming part of the CDC estate. Local plantations intersect the CDC plantations at intervals along the transmission line route. Inland from the transmission line route, looking north, the landscape is dominated by Mount Etinde and Mount Cameroon.

5.15 Natural Hazards

The study area is located within a major fault zone, along which volcanic activity occurs. Mount Cameroon, an active volcano on this fault line, last erupted in June 2000. A study undertaken for SONARA indicated that the topography of the surrounding land would prevent lava flows from a volcanic eruption at Mount Cameroon from reaching the SONARA site, and thus the LPP site. Consultation with the SONARA refinery indicates that Cape Limboh has not experienced coastal flooding since it was constructed.

5.16 Man-made Hazards

The main man-made hazard in the study area is the SONARA oil refinery. SONARA has extensive safety measures in place to deal with emergency fires, and many of the procedures that it has adopted are derived from the procedures of Total, who assists in managing the refinery. This includes spill prevention and clean-up procedures. It is therefore not anticipated that there is a major risk of impact from an accident at the SONARA refinery site.




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6. CONSULTATION PROGRAMME It is good practice when preparing an EIA for significant new developments that an extensive consultation exercise be undertaken to inform the local population, statutory bodies, local organisations and interested parties about the proposal. This is to allow the EIA team to explain to the public and others how the project may affect them, and receive feedback on particular concerns that they may have, in order that subsequent studies undertaken and actions can reflect those concerns. Accordingly, AES-SONEL undertook a consultation programme for the LPP.

Cultural sensitivity is an important approach in successful relations in a multicultural society and the LPP project team followed Cameroon protocols using culturally appropriate methods for undertaking public consultation activities. In all instances, French and English have been used for consultation purposes. In addition, where required local languages have been used in correspondence and in the dissemination of information. Pictoral representation has been used to reach the illiterate population and appropriate channels for communication and organisation of village meetings have been used.

The consultees for the LPP included:

those associated with the proposed power generation plant site; those associated with the transmission line route; and those having an interest in the project, statutory and non-statutory (generic

consultees).

The consultees are listed in the main text and appendices of the EIS. These included the 172 land owners and 164 crop owners identified as affected persons within the wayleave for the transmission line route.

A Consultation Plan was prepared as part of the EIA, and was approved by the IFC in December 2002. Three stages to the consultation process were planned. These were: 1. Development of the scope of works:

To agree the scope of works for the EIA with the funding consortium and MINEF.

2. During EIA/Project development:

To inform people that the project is being undertaken. To record and understand any concerns. To allow the project to be designed and the EIA scoped so as to reduce any

adverse impacts to an acceptable level.

3. On completion of EIA: To inform people of the outcome of the EIA for the LPP To communicate how issues/concerns have been addressed. To record, and where necessary act upon any further issues/concerns

In addition to the above, AES-SONEL will ensure that consultees continue to be kept well informed during construction and, where appropriate, operation of the LPP. Throughout the project, consultation and sensitization has been, and will continue to be undertaken by AES-SONEL personnel.




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Details of the Consultation Plan are included in Appendix H of the EIS and the objectives, methods of communication and the results of the consultation exercise are fully described in the main text of the EIS. The following provides a brief summary of the main issues raised:

Compensation rates and persons eligible for compensation; Damage to crops and vegetation; Waste arisings and their disposal; Air pollution and measures to control it; Employment opportunities; Potable water supplies.




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7. THE ENVIRONMENTAL ASSESSMENT

Standard EIA practice and the funding consortium’s guidelines define the manner in which environmental assessment is carried out as well as guidance on the scope of the work.

7.1 Environmental Standards

The environmental impact assessment has been undertaken in accordance with standards and guidelines as set out by the following:

Cameroon legislation and regulatory guidance; IFC standards and guidelines; EIB standards and guidelines; Other international standards as applicable; and Relevant international environmental agreements to which Cameroon is a

signatory. The specific standards agreed with the above as relevant to the LPP are summarized below.

7.1.1 Air Quality

The IFC requires that air emissions comply with those set out in the World Bank Pollution Prevention and Abatement Handbook (1998). The EIB requires that the EIA is in compliance with European Directives. The following air quality standards have therefore been agreed with the IFC and the EIB as applicable to the LPP, as shown in Table 1.

Table 1 Summary of air emission limits and ambient air quality guidance Air emission

limits Ambient air quality guidance

Pollutant IFC (World Bank) Averaging Period World Bank

Guidelines for Use at Thermal Power

Plants (µg/m3)

EIB (µg/m3) (no. in brackets

refers to number of permitted

exceedences) Nitrogen Dioxide (NO2)

<2000 mg/Nm3 1 hour 24 hours 1 year

- 150 100

200 (18)

40 Sulphur Dioxide (SO2)

0.2 te/day/MWe

plus maximum of 500 te/day

Hourly 24 hours 1 year

- 150 80

350 (24) 125 (3)

-

Particulate Matter (PM10)

50 mg/Nm3 24 hours 1 year

150 50

Total Suspended Particles (TSP)

- 24 hours 1 year

230 80

Particles (Stage 1) - 24 hours (daily mean values) Annual limit

50 (35)

40 Particles (Stage 2) - 24 hours (daily

mean values) Annual limit

50 (7) 20




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7.1.2 Noise Levels

It has been agreed with the funding consortium that the standards for noise set out in the World Bank Pollution Prevention and Abatement Handbook (1998) should be applied to the project, as set out in Table 2.

Table 2 Noise guidelines

Maximum allowable log equivalent (hourly measurements), in dB(A)

Receptor Day (07:00 - 22:00) Night (22:00 - 07:00) Residential, institutional, educational 55 45 Industrial, commercial 70 70 In cases where the baseline noise level is already above these levels, the plant noise should not cause an increase of more than 3 dB(A).

Source: World Bank Pollution Prevention and Abatement Handbook, 1998

7.1.3 Water Quality

It has been agreed with the funding consortium that the guidelines on effluent emission targets for water quality set out in the World Bank Pollution Prevention and Abatement Handbook (1998) should be applied to the project, as set out in Table 3.

Table 3 Water quality guidelines

Parameter (mg/l, except pH and temperature)

Maximum Value

PH 6-9 Total Suspended Solids 50

Oil and Grease 10 Total Residue Chlorine 0.2

Chromium (total) 0.5 Copper 0.5

Iron 1.0 Zinc 1.0

Temperature increase ≤3oC Source: World Bank Pollution Prevention and Abatement Handbook, 1998

7.1.4 Guidelines for Electric and Magnetic Fields Limits for electric and magnetic fields have been published by a number of authorities. The two most frequently used guidelines are those produced by the International Commission on Non Ionizing Radiation Protection (ICNIRP) (supported by the World Health Organisation) and the National Radiological Protection Board (NRPB). These limits are detailed in Table 4. The NRPB guidelines on restrictions on exposure to static and time-varying EMFs have been widely accepted in the UK. The current advice from the NRPB is that, apart from standard safety clearances, no special precautions near to power lines are necessary to guard against EMFs.




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Table 4 EMF guidelines

NRPB ICNIRP Electric (kV/m)

Magnetic (µT)

Electric (kV/m)

Magnetic (µT)

Public 12 1600 5 100 Occupational 12 1600 10 500

7.2 Compliance Screening

A detailed description of the compliance of the LPP with Cameroon legislation and the funding consortiums’ standards and guidelines is set out in the EIS. A summary of compliance is provided in Tables 5 and 6 below.




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Table 5 Compliance with Cameroon laws, policies and regulations

Law

Compliance status and rationale

The Regulation of the Electricity Industry (‘Electricity Act’), Law No 98/022 of 24 December 1998 and relevant associated decrees

Complies: the Limbe Power Project has been undertaken in accordance with relevant legislation to which AES-SONEL must adhere to.

Relating to Environmental Management Law No 96/012 of 5 August 1996, and relevant associated decrees

Complies: an Environmental Impact Assessment has been undertaken for this project, in accordance with the requirements of the Environmental Management Law.

Relating to code on working conditions, Law No 92/007 of 14 August 1992

Complies: Contractors shall be required to adhere to all Cameroon laws and regulations relating to working conditions. This will be specified in their contracts.

Relating to establishments classified as dangerous, unhealthy or obnoxious Law No 98/015 of 14 July 1998

Complies: an Environmental Impact Assessment has been undertaken for this project, in accordance with the requirements of this Law.

Concerning regulations governing water management, Law No 98/005 of 14 April 1998, and relevant associated decrees.

Complies: the Contractors will be required to undertake all necessary precautions to protect surface waters, including provisions during construction and operation to avoid contamination of water resources. This will be specified in contractors’ contracts. Aqueous wastes will comply with World Bank standards.

Order No 039/MTS/INI, Regulates general occupational health and safety

Complies: Contractors will be required to prepare Health and Safety Plans prior to construction on site. Operation and maintenance manuals will be produced in English and French for operation of the plant. AES-SONEL will undertake all works in accordance with their Health, Safety and Environment procedures.

Table 6 Compliance with International Finance Corporation and EIB policies and procedures

Safeguard Policy Compliance status and rationale

OP 4.01 Environment Assessment

Complies: An environmental assessment is being prepared following the requirements for a Category A project in liaison with the IFC.

Natural habitats OP4.04

Complies: A walkover ecological survey of the power plant site and transmission line route has indicated that there are no species or habitats of conservation value.

Pest Management OP4.09

Complies: No significant pest management activities will be undertaken. Clearance of vegetation for the wayleave of the transmission line will be undertaken manually. No chemical or biological treatment will be used.

Forestry There are no areas of forest at or adjacent to the power generation plant site or the transmission line route, therefore not applicable.




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Safeguard Policy Compliance status and rationale

OP4.36 Safety of Dams OP4.37

Not applicable.

International Waterways OP7.50

Not applicable.

Indigenous Peoples OD4.20

Complies: No indigenous peoples, according to the definition used in OD4.20, are to be affected by the LPP. This has been confirmed through the household surveys undertaken by Limbe Botanical and Zoological Gardens as part of the compensation process.

Involuntary Resettlement OD4.30

Complies: a Compensation Action Plan has been prepared to set out the methodology for undertaking compensation to affected persons along the transmission line route. No structures will be affected by clearance of the wayleave. There are no affected persons as a result of the power plant site as the land is currently vacant.

Cultural Property OPN11.03

Complies: there are no sites of cultural property either within or directly adjacent to the power plant site. There is one site of cultural property within the wayleave of the transmission line route; measures to avoid this site during construction are included within the Environmental Action Plan set out in the EIS, and the transmission line contractor, Alstom, will be required to comply with these measures.

Child and Forced Labour Policy statement

Complies: No child or forced labour will be used as part of the LPP. This will be stipulated in contractors’ contracts.

Pollution Prevention and Abatement Handbook: Thermal Power - guidelines for new plants

Complies: the emissions guidelines have been taken into account in the design of the LPP. Air quality modeling indicates that emissions from the power plant are not expected to result in exceedences of air quality guidelines at any of the sensitive receptors (inhabited villages) identified in the area, where people may be exposed to changes in air quality.

Environmental, Health and Safety Guidelines for Electric Power Transmission and Distribution

Complies: The contractors will be responsible for producing a Construction Health and Safety Plan. AES-SONEL will produce an Operational Health and Safety Manual for the new plant and associated equipment. This manual will take due regard of the guidelines set out in this document.

General Health and Safety Guidelines

Complies: The contractors will be responsible for producing a Construction Health and Safety Plan. AES-SONEL will produce an Operational Health and Safety Manual for the new plant and associated equipment. This manual will take due regard of the guidelines set out in this document. AES-SONEL is also in the process of drafting an Environmental and Social Management System, which will apply to the LPP.

EIB guidelines This project has been undertaken in such a manner to comply with the EIBs Environmental Statement document and Environmental Procedures document.




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7.3 Environmental Impact Assessment

Impact assessment covers the direct effects and any indirect, secondary cumulative, short, medium and long-term, permanent and temporary, positive and negative effects of the development during the key stages of construction, operation and in many cases possible decommissioning. The likely significance of the impact is based on:

the identification and prediction of the magnitude of any impact caused by the

project on: a receptor (e.g. human beings, community facilities etc), or an environmental resource (elements of the existing natural or built

environment), or on any process which is essential, or of value, to the functioning of human or

natural systems, and

the identification of the importance (and/or sensitivity) of that receptor/ environmental resource/process.

The key impacts identified for the construction, operation and decommissioning stages of the LPP are shown in Table 7. A brief summary of these impacts is provided in this document so that the mitigating measures identified in the EIS can be fully appreciated. Following on from the evaluation of impacts, measures to avoid, minimise and mitigate key potential environmental impacts that could result from construction, operation and decommissioning activities of the projects have been identified. An evaluation of the residual, i.e. remaining, impacts after implementation of the mitigation measures was then undertaken. The impacts of the LPP, with and without mitigation measures, and the anticipated scale of their effects, for the construction and operation phases of the project are summarized in Table 8 (for the power plant) and Table 9 (for the transmission line). Full descriptions, including the impacts associated with decommissioning, are provided in the main EIS.

Table 7 Key impacts of the Limbe Power Project

Phase of project Power generation plant and associated step-up substation site

Transmission line site

Construction phase Traffic and Transport Socio-economic and local

community impacts Waste Noise Air quality Soils Water quality and resources Public and occupational health

and safety

Resettlement and compensation

Socio-economic and local community impacts

Traffic and transport Soils Public and occupational health

and safety Noise Air quality Waste Water quality and resources Land use

Operation phase Air quality Socio-economic and local

community impacts Noise Waste

Socio-economic and local community impacts

Land use Public and occupational health

and safety




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Phase of project Power generation plant and associated step-up substation site

Transmission line site

Water quality and resources Landscape and visual impact Public and occupational health

and safety

Landscape and visual impact

Decommissioning phase

General decommissioning activities: Traffic and transport Air quality and noise Public and occupational health

and safety Wastes

General decommissioning activities: Traffic and transport Air quality and noise Public and occupational health

and safety Wastes

7.3.1 Key Impacts during Construction

During construction of the power plant and the transmission line, the main adverse impact will be the increase in traffic as a result of construction-related deliveries and transport of the workforce to the site. Approx. 100 HGV movements will be required to transport the generation plant and other heavy/bulky equipment to the site, primarily taking place over a period of approx. 1 week. There will also be general construction-related traffic movements over a period of approx. 11 months. Delivery of equipment by HGV from a port or landing facility close to the plant site would significantly reduce the impact on traffic between Douala and the study area. In addition, the contractors, Wartsila and Alstom, are required to prepare a Traffic Method Statement (TMS) to manage the impact of their deliveries and construction-related traffic movements in the study area. With these mitigation measures in place, the impacts on existing traffic levels and on local people are considered to be significantly reduced. A further key negative impact may occur as a result of the influx of temporary workers to the study area placing pressure on existing resources and contributing to local health problems. Wartsila and Alstom are required to prepare a statement of intention for the provision of accommodation and services to support an influx of temporary workers, including the requirement to brief employees on health risks such as AIDS. With appropriate management of the temporary workforce, there should in fact be a temporary positive impact through local employment opportunities and an increased demand for local goods and services. During construction of the transmission line, the main impact will occur as a result of the clearance of the 45-metre wide wayleave. AES-SONEL and their consultants LBZG have undertaken extensive surveys along the proposed route of the transmission line. Along the 11.6km comprising the line route, a total of 172 land owners and 164 crop owners will be affected by the project. There are no structures within the wayleave so no physical displacement will occur. Additionally, AES-SONEL anticipates very few, if any, cases of economic displacement occurring as a result of the loss of land or crops. Compensation will be provided for both affected land and agricultural assets through a fair and equitable compensation process. To manage the compensation process, AES-SONEL has prepared a Compensation Action Plan (CAP). This CAP has been developed to follow the guidelines set forth in the IFC’s “Handbook for Preparing a Resettlement Action Plan’. The principles contained within the CAP are intended to meet the needs of the Cameroonian




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government as well as the international financing community. Further details on the approach to compensation are set out in the CAP. In addition to the impact on land and crop owners within the wayleave, the construction of the transmission line could have an adverse impact on public and occupational health and safety, for example as a result of public access to the site during construction activities and the movement of traffic along access roads to the site. With the implementation of Alstom’s Health and Safety Plan, public and occupational health and safety risks along the route of the transmission line will be minimized.

7.3.2 Key Impacts during Operation

As Table 9 shows, air and water quality and the generation of wastes as a result of the operation of the power plant could be of concern without mitigation measures in place. Good environmental practices in both the design of the generation plant and its operation will reduce the residual impacts to acceptable levels. Specifically, Wartsila is required to provide a stack height of 80m, and sulphur dioxide emissions will be controlled by limiting the sulphur content of the fuel to 0.7%. Air quality modeling indicates that emissions from the power plant are not expected to result in exceedences of air quality guidelines at any of the sensitive receptors (inhabited villages) identified in the area, where people may be exposed to changes in air quality. As such, the LPP will comply with the Cameroonian and funding organisation’s environmental regulations. AES-SONEL will implement a programme to monitor air quality during operation of the plant. Air quality in the population centres of southern Cameroon will further be improved by obviating the need for customers to use private generators during periods of load shedding. A key impact of the operation of the power plant will be the generation of wastes such as fuel oil sludge, waste lubricating oil and sewage. A waste oil tank will hold the waste oils and oily water wastes, the contents of which will be removed and disposed of by a licensed operator approved by AES-SONEL. Sewage will go directly to a septic tank, which will be emptied and disposed of by a licensed operator approved by AES-SONEL. Without mitigation measures, the impact of surface water drainage from oily sites could have a significant impact on sea water quality. To minimize this potential adverse impact, water will pass through an oil/water separator where site roads and hardstandings are drained. An oily wastewater drainage system will also be installed, with facilities in place to contain oil in the event of a catastrophic failure of the transformer. Additionally, visual monitoring of the discharge for oil/grease will be undertaken frequently and water quality of the discharge to the sea monitored monthly during operation of the plant. These mitigation measures will ensure that the overall impact on water quality during operation of the plant will be low. The main impact of the transmission line during operation will be the continued restriction of land use within the wayleave. However, all project affected persons will be compensated for such permanent losses. Overall, the operation of the LPP will result in a significant positive impact through a diversification of the generation capacity and improved system reliability. As such, this will allow AES-SONEL to significantly reduce the level of load shedding experienced in recent years, especially during the dry season. In providing a more




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reliable electricity supply to the grid it will bring benefits to the populous areas which include the capital, Yaoundé, and the main commercial centre, Douala. It will also reduce the overall cost of electricity for customer’s currently running diesel generators during load shedding periods by eliminating the need for them to purchase high cost fuel.

7.4 Cumulative Impacts

Cumulative impacts are those incremental effects that result from an action when added to other past, present and reasonable foreseeable future actions. The main potential cumulative impact during construction is the increase in traffic and influx of temporary workers if the power plant site works and transmission line works are undertaken at the same time. It will be the responsibility of the contractors, Wartsila and Alstom to liaise with each other with regard to traffic movements. Wartsila and Alstom will also each be required to prepare a TMS that will ensure that the programme for the delivery of the main equipment in HGVs to each site respectively does not coincide, and therefore avoid cumulative impacts associated with HGV movements. Although there may be a net increase in the influx of temporary workers, these workers will be located at different sites and the overall numbers at any one time is not considered to significantly increase the overall impact on the local community. The only known development currently under construction in the study area is a major hotel at Ngeme, a village along the transmission line route. There may be a minor net increase in traffic movements along the access road to this site in the event that this road is used by the Alstom to access the transmission line site at the same time that construction resumes on the hotel. Any incremental increase in traffic is likely to be minor as deliveries to the site for the LPP would only take place over a period of 1 week. These impacts will be managed through the development and implementation of the TMS. Consultation with FMO indicates that there is a proposal to construct a shipyard to the east of the SONARA refinery, approx. 500 to 1000m from the proposed site of the LPP power plant. Although it has not been possible to obtain specific details on the timing of this project, it is understood that it is not likely to be constructed before March 2004. Should the construction of the shipyard and the LPP coincide, this could result in some additional construction-related traffic movements in the study area. Again, this will be managed through Wartsila’s and Alstom’s TMS.

The transmission line route has been located such to minimise the impact on the local community. Project affected persons will receive compensation to meet World Bank/IFC guidelines, In virtually all cases this compensation will be in excess of Cameroonian government mandated levels of compensation.

The location of the plant adjacent to the SONARA oil refinery offers a number of synergies through the provision of shared facilities such as fuel oil and water supply, thus minimizing the impact associated with the construction of new facilities. In addition, the selected site will have a lower cumulative impact than would be associated with developing generation capacity at a number of other possible locations as the Limbe site will provide an opportunity in the medium term to develop the site for gas-based power generation, as discussed earlier in this summary.




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Table 8 Summary of environmental impacts associated with the power plant, substation and associated structures, with and without mitigation

KEY Negative impact of high significance Positive impact of low significance Negative impact of medium significance Positive impact of medium significance Negative impact of low significance Positive impact of high significance No impact NOTE: Where there are several different impacts associated with a resources or receptor, the highest impact has been represented the table.

Resource or receptor potentially affected POWER PLANT SITE

Wat

er q

ualit

y an

d re

sour

ces

Soils

Tra

ffic

and

T

rans

port

Air

qua

lity

Noi

se

Was

te

Publ

ic a

nd

occu

patio

nal h

ealth

an

d sa

fety

Soci

o-ec

onom

ic a

nd

loca

l com

mun

ity

impa

cts

Lan

d us

e

Lan

dsca

pe a

nd

visu

al im

pact

Rec

reat

ion

and

amen

ity

Flor

a an

d fa

una

Cul

tura

l her

itage

Construction impacts without mitigation

Construction impacts with mitigation (residual impacts)

Operation impacts without mitigation

Operation impacts with mitigation (residual impacts)




Page 31

Table 9 Summary of environmental impacts associated with the transmission line and associated structures, with and without mitigation

KEY Negative impact of high significance Positive impact of low significance Negative impact of medium significance Positive impact of medium significance Negative impact of low significance Positive impact of high significance No impact NOTE: Where there are several different impacts associated with a resources or receptor, the highest impact has been represented the table.

Resource or receptor potentially affected TRANSMISSION LINE

Res

ettle

men

t and

C

ompe

nsat

ion

Wat

er q

ualit

y an

d re

sour

ces

Soils

Tra

ffic

and

T

rans

port

Air

qua

lity

Noi

se

Was

te

Publ

ic a

nd

occu

patio

nal

heal

th a

nd sa

fety

Soci

o-ec

onom

ic

and

loca

l co

mm

unity

im

pact

s

Lan

d us

e

Lan

dsca

pe a

nd

visu

al im

pact

Rec

reat

ion

and

amen

ity

Flor

a an

d fa

una

Cul

tura

l her

itage

Construction impacts without mitigation

Construction impacts with mitigation (residual impacts)

Operation impacts without mitigation

Operation impacts with mitigation (residual impacts)




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8. ENVIRONMENTAL ACTION PLAN

An Environmental Action Plan (EAP) has been prepared for the LPP. The EAP incorporates all mitigation measures required to ensure that all environmental regulations are met. It also incorporates mitigation measures that have been agreed following extensive consultations with a wide range of interested parties. The EAP follows international standards.

The EAP includes the specific mitigation measures identified in the EIS and details the organisation/body responsible for the action, the period for which the action should be taken, and the need for short, medium or long term monitoring. Figure 6 shows the key features for the EAP. The full EAP is provided in the EIS.

Figure 6 Requirements of the Environmental Action Plan

The following principles were adopted in the preparation of the EAP: Compliance with relevant legislation, standards, codes, and practices in the

application of safe technologies; Minimisation of impacts on the environment and human beings;

Performance of all activities in a safe and effective manner and maintenance of all

equipment in good operating condition for the protection of the health and safety of all persons and to conserve the environment and property;

Consultation Plan

Compensation Methodology

Operation Emergency Contingency Plan

Operation Health and Safety Plan

Site Environmental Managament Plan

Corporate Environmental Management Plan

AES Sonel Responsibility

Waste management procedures

Soil management procedures

Noise management procedures

Water quality and resource management proceudres

Flora and fauna management procedures

Air quality management procedure

Accommodation procedures

Employment of local poeple statement of intention

Construction Environmental Plan

Traffic Method Statement

Construction Health and Safety Plan

Emergency Oil Spill Plan

Contractor Responsibility(Power plant and transmission line)

Environmental Action Plan(EAP)




Page 33

Focus on environment risk prevention; Focus on occupational and public health, safety, and;

The undertaking of all necessary precautions to control, remove, or otherwise

correct any leaks and/or spills of hazardous materials, or other health and safety hazards.

The project will be fulfilled under two contracts, one for the power plant and the other for the transmission line. The contractors, Wartsila and Alstom respectively, will be responsible for implementing the day-to-day construction related environmental management and mitigation measures specified in the EIS.

Both contractors will be required to have their own environmental management procedures, but will be required by their contracts to take into account the actions set out in the EAP. Thus each contractor will have to prepare an Environmental Plan. The Environmental Plan will detail procedures, in the form of method statements, for the management and mitigation, of the following:

Accommodation procedures (if required); Statement of intention on employment of local people; Waste management procedures; Noise management procedures; Air quality management procedures; Soil management procedures; Water quality and resource management procedures; Procedures to manage impacts on flora and fauna.

In addition, Wartsila and Alstom will prepare the following:

Traffic Method Statement

A strategy for delivering workforce and materials adopting the measures to reduce accidents, set out in the EIS, and a HGV delivery schedule.

Construction Emergency Oil Spill Plan

Information on the proper handling of pollutant spills and the procedures to be taken in the event of a pollutant spill, together with specific proposals for training construction personnel in accordance with the EIS.

Construction Health and Safety Plan

A Health and Safety Plan in accordance with the EIS. Prior to the start of the relevant activity, each contractor will undertake all measures necessary to ensure that his staff and sub-contractors comply with the measures set out in the EAP, including the required environmental monitoring and reporting to AES-SONEL. The contractor will also be required to identify an appropriately qualified Site Environmental Officer (SEO), acceptable to AES-SONEL, who will be responsible for implementation of the measures set out in EAP. The SEO will be identified in the Environmental Plan.




Page 34

In order to ensure compliance of the project with the EIS, through the framework of the EAP, AES-SONEL will designate a project Environmental Manager who will be responsible for ensuring that Wartsila and Alstom are fulfilling their obligations under their contracts. AES-SONEL will ensure that the project Environmental Manager is appropriately trained to discharge the requirements of the EAP, and that operational staff are conversant with the requirements and have adequate training to undertake their environmental responsibilities. The Environmental Manager will have the authority to stop the work of Wartsila and Alstom, or any of their sub-consultants, if they fail to comply with the EAP. AES-SONEL is the project sponsor and will ultimately have responsibility for the operation and maintenance of the LPP. AES-SONEL will prepare a site Environmental Management Plan for operation of the project; this will take into account the requirements set out in the EAP. AES-SONEL recognises that environmental and social issues covered by the EAP during operation will change as time advances. AES-SONEL accepts the responsibility of managing these changes in a pro-active manner on an ongoing basis. In addition to an Environmental Management Plan in force at the site, AES-SONEL will prepare a Health and Safety Plan in accordance with corporate policy. Overall responsibility for this will rest with the Safety, Health and Environment group of AES-SONEL. The nature of the operation of AES-SONEL under its Concession Agreements is such that it has not been necessary to assign direct responsibility of mitigation measures to Third Party institutions such as government environmental bodies. As such, the need to review the capacity of such institutions has not been necessary for the LPP.

AES-SONEL does recognize the need to strengthen its internal capabilities in order to develop and discharge its environmental responsibilities. To this end, AES-SONEL is currently developing an Environmental and Social Management System for the business as a whole.




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9. CONCLUSIONS

The main benefits of the LPP are the provision of generation capacity and energy to address the current electricity demand-supply deficit in the southern interconnected system of Cameroon. In particular, the project will address the urgent need for new generation capacity in the next dry season with the lowest possible generation cost available given the time constraint. Non-generation alternatives such as demand side management to address the deficit were considered, but were deemed to be inadequate solutions. Generation capacity in Cameroon is currently heavily reliant on hydro power (97% in the southern system). From the beginning of 2000 to August 2003, Cameroon has experienced exceptionally dry weather. This weather pattern, in combination with an increased demand from all sectors of the economy, has created a serious shortage of power during dry seasons, resulting in load shedding and brown-outs. The installation of approximately 80MW of HFO-burning plant will result in a diversification of the generation capacity and will also result in improved system reliability. Such additional generation will result in a reduction in electrical outages experienced in recent years while supporting the national economy with an increased reliable supply of electricity. In providing a more reliable electricity supply to the grid it will bring benefits to the populous area which includes the capital, Yaoundé, and the main commercial centre, Douala. It will also reduce the overall cost of electricity for customer’s currently running diesel generators during load shedding periods by eliminating the need for them to purchase high cost fuel. The costs of the project will not have a direct effect on the electricity tariff that would increase the prices paid by the customers. The choice of the fuel type plant type and site location has been affected by availability, cost and technical factors. At the same time opportunities to minimize environmental impacts in the short and long term have also been considered in the selection of the LPP as a preferred option. The HFO’s low sulphur content was a big factor. Also, with the fuel supply being available immediately adjacent to the plant and delivered by pipeline, the potential for spills is far less than if fuel had to be trucked to an alternative location. This site avoids the impact associated with significant movements of HGVs to deliver fuel that would be required with an alternative location further from the refinery fuel source. In the long term, the Limbe site is good in that it provides opportunities for synergies with the oil refinery, such as combined fuel and water supply, and has the advantage of being highly suitable as a landing point for offshore gas. The infrastructure developed at this site could, in the future, act as a catalyst for the introduction of natural gas as an additional source of fuel for electricity generation. The LPP is therefore seen as contributing towards the development of AES-SONEL’s Business Development Plan in the medium term and facilitating the development of more environmentally benign electricity generation in the future. As part of the environmental impact assessment of the LPP a number of impacts during the construction, operation and decommissioning phases of the project were identified. Key construction impacts relate to the temporary increase in traffic and the influx of temporary workers to the study area, however with the implementation of the




Page 36

mitigation measures identified in the EIS the residual impact is not considered to be significant. Key operation impacts relate to air and water emissions, and the generation of waste as a result of the operation of the power plant. Appropriate mitigation measures have been identified as part of the EIA process to mitigate these impacts. An Environmental Action Plan (EAP) has been prepared which identifies all mitigation measures relevant to the LPP, including those required to ensure that all environmental regulations are met and those that have been agreed following extensive consultations with a wide range of interested parties. The EAP also identifies the periods during which mitigation measures must be implemented, who is responsible for implementation and the longer term monitoring requirements of the LPP. In order to ensure compliance of the project with the EIS, through the framework of the EAP, AES-SONEL will designate a project Environmental Manager who will be responsible for ensuring that the contractors are fulfilling their obligations under their contracts. AES-SONEL also recognizes the need to strengthen its internal capabilities in order to develop and discharge its environmental responsibilities. To this end, AES-SONEL is developing an Environmental and Social Management System for the business as a whole. AES-SONEL has prepared a separate document, the ‘Compensation Action Plan’ (CAP), to set out the procedures for the management of the compensation process. Surveys undertaken along the route of the transmission line have identified a total of 172 land owners and 164 crop owners who will be directly affected as a result of clearance of the transmission line, although no physical displacement will occur. AES-SONEL anticipates very few, if any, cases of economic displacement. Compensation will be provided for both affected land and agricultural assets, and AES-SONEL has enhanced the compensation level beyond that required under Cameroonian law to fulfill the guidelines of the international finance community. In conclusion, the main benefits of the LPP are the provision of generation capacity and energy to address the current electricity demand-supply deficit in the southern interconnected system of Cameroon. In addition, as part of the project, AES-SONEL has:

Undertaken extensive consultation with all affected persons and interested parties;

Raised awareness of its activities and health and safety issues through the consultation process;

Taken responsibility to inform local schools of safety issues relating to construction works; and

Encouraged local Chiefs to prepare lists of potential staff to improve the opportunities for temporary employment of the local community.

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Logbaba Substation

DeidoSubstation

Bekoko Substation

Location of Limbe Project

Drawing no.

Scale :

Contract No. Approved: Date:

FIGURE 1

3 JUNE 2003107030 KMP

Location Plan

AES Sonel

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Figure 1Source: Cameroon Map Carte routiere

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SUBSTATION

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ACCESS ROAD TO SITE

SONARA OIL REFINERY

N3 MAIN ROAD

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2/002/002/002/002/002/002/002/002/002a/002a/002a/002a/002a/002a/002a/002a/002a/00

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4/004/004/004/004/004/004/004/004/00

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LIMBE / MILE 2LIMBE / MILE 2


LIMBE / MILE 2


Drawing no.

Scale :


FIGURE 3

1:40,000

3 JUNE 2003107030 KMP

Detailed Location Plan

AES Sonel

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Figure 3

Village Extents

Cameroon Development CorporationPalm Oil Plantations

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FIGURE 5

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3 JUNE 2003107030 KMPAES Sonel

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Legend:

Option 1 ( Rejected )



Option 4 ( Chosen )

Transmission Routes :

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NOTE: Basemap scanned from 1:50,000 map. 1989.Reference : NB-32-IV Douala la.

Figure 5Alternative Transmission

Line Routes & Power Plant Sites




PHOTO 1 Proposed power plant site (looking south)

PHOTO 2 Indicative site layout photomontage (not actual site)




PHOTO 3 View of the proposed power plant site from Beach Mile 6

Documents

LIMBE POWER PROJECT AES-SONEL, CAMEROON ...1998/12/24 · Generation capacity in Cameroon is currently heavily reliant on hydro power (97% in the southern system). From the beginning