ENVIRONMENTAL AND SOCIAL IMPACT …

1 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT SUMMARY FOR MEDUPI FLUE GAS DESULPHURISATION (FGD) RETROFIT PROJECT COUNTRY SOUTH AFRICA JUNE 2018 ADF Ash Disposal Facility AEL Atmospheric Emissions License BMH Bulk Material Handling CaCl2 Calcium Chloride CaF2 Calcium Fluoride CO carbon monoxide CFB Circulating Fluidized Bed CCCW Closed Cycle Cooling Water CA Competent Authority CI Conservation Important CBA Critical Biodiversity Area dB decibels DMS Degrees, Minutes and Seconds DAFF Department of Agriculture.

2 Forestry and Fisheries DEA Department of ENVIRONMENTAL Affairs DM District Municipality DEIR Draft ENVIRONMENTAL IMPACT Report DEMPr Draft ENVIRONMENTAL Management Programme ESA Early Stone Age EI Ecological Importance ES Ecological Sensitivity ESA Ecological Support Area ESIA ENVIRONMENTAL and SOCIAL EAP ENVIRONMENTAL Assessment Practitioner EA ENVIRONMENTAL Authorisation EIA ENVIRONMENTAL IMPACT Assessment EIR ENVIRONMENTAL IMPACT Report EMC ENVIRONMENTAL Monitoring Committee EO ENVIRONMENTAL Officer FFP Fabric Filter Plant FEIR Final IMPACT Assessment Report FGD Flue Gas Desulfurization FEPA Freshwater Ecosystem Priority Area FSL Full Supply Level Pty Golder Associates Africa GN Government Notice HIA Heritage IMPACT Assessment HGM Hydro-geomorphic ID Induced Draft Inhalable particulate matter with an aerodynamic diameter equal to or less than m IDP Integrated Development Plan IAIA International Association for IMPACT Assessments IEC International Electrotechnical Commission IFC International Finance Corporation LSA Late Stone Age LOS Level of Service

3 CaCO3 Limestone LM Local Municipality MgSO4 Magnesium Sulphate MAE Mean Annual Evaporation MAP Mean Annual Precipitation MPS Medupi Power Station MW megawatt MM5 Mesoscale Model version 5 mbgl meters below ground level MSA Middle Stone Age Mm3/a million cubic metres per annum mya million years ago MCWAP Mokolo Crocodile Water Augmentation Project NAAQ National Ambient Air Quality NAAQS National Ambient Air Quality Standards NDP National Development Plan NEMA National ENVIRONMENTAL Management Act NEMA National ENVIRONMENTAL Management Act, No 107 of 1998 NEM:WA National ENVIRONMENTAL Management Waste Act, No.

4 59 of 2008 NEM:AQA National ENVIRONMENTAL Management: Air Quality Act, No 39 of 2004 NWMS National Waste Management Strategy NSS Natural Scientific Services NSRs Noise Sensitive Receptors SOx oxides of sulphur PCD Pollution Control Dam PES Present Ecological State ROD Record of Decision SWP Save Working Procedures SEWs Semi-Ephemeral Washes SDBIPs Service Delivery and Budget Implementation Plans SIA SOCIAL IMPACT Assessment SLM Sound Level Meter SACNASP South African Council for Natural Scientific Professionals SANS South African National Standards SAWS South African Weather Services SDF Spatial

5 Development Framework SWMS Storm Water Management System SIP Strategic Infrastructure Projects SO2 sulphur dioxide SO3 sulphur trioxide ToR Terms of Reference PM10 Thoracic particulate matter with an aerodynamic diameter of equal to or less than 10 m t/a tons per annum TOC Total Organic Carbon TIA Traffic IMPACT Assessment TFR Transnet Freight Rail VIA Visual IMPACT Assessment V volt WDF Waste Disposal Facility WML Waste Management License WWHC Waste Water Hydrocyclone WWTP Waste Water Treatment Plant WMA Water Management Area WRCS Water Resource Classification System WULA Water Use License Application WBPA Waterberg-Bojanala Priority Area WFGD Wet Flue Gas Desulphurisation WHO World Health Organisation INTRODUCTION Medupi Power Station is a greenfield coal-fired power station that forms part of the Eskom New Build Programme.

6 Medupi Power Station has an installed generation capacity of 6 x 800 MW units and utilizes a supercritical boiler and turbine technology designed to operate at higher temperatures and pressures, which allows for better efficiency of the power station. The result is an improvement of approximately 2 percentage points on the plant efficiency which equates to a reduced coal consumption of approximately 1 million tons per annum. Electricity is generated in coal-fired power stations through combustion of coal. Coal is composed, primarily, of carbon along with variable quantities of other elements, chiefly hydrogen, sulphur, oxygen, and nitrogen.

7 When coal is burned, the sulphur combines with oxygen to form, amongst other, sulphur dioxide (SO2) and sulphur trioxide (SO3). Due to the detrimental IMPACT of high SO2 concentrations associated with coal fired-power stations stringent air quality regulations have been implemented worldwide to combat the emissions sulphur oxides (SOx). Flue Gas Desulfurization (FGD) is a technology used to remove SO2 from flue gases of fossil- fuel power plants, and from the emissions of other sulphur oxide emitting processes. Medupi Power Station is designed and constructed to be wet FGD ready, utilizing limestone as a sorbent as per its ENVIRONMENTAL Authorization.

8 Project description The development site is located within the existing Medupi Power Station footprint. The proposed project will comprise the installation of Wet Process FGD system with a Gas-cooler at the Medupi PS, and will be procured under the following packages: Supply of equipment for six Absorber Units (one per unit of Medupi PS), Limestone Slurry Preparation, and for Gypsum Dewatering (CP-1); Civil Works and Installation of equipment under CP-1 ( CP-2); Supply and Installation of Distributed Control System DCS (CP-3).

9 Supply and Installation of Power Supply System (CP-4) Supply and Installation of Waste Water Treatment Plant (CP-5) Rail and Materials Handling Systems for Limestone Supply and Gypsum Disposal ( CP- Civil Works for CP3, CP4, CP5, CP6 (CP-7) Engineering and Construction Supervision Services (CP8) The FGD units will be installed in a cluster arrangement with 3 FGD units linked to one stack/chimney of the Medupi PS. The Medupi PS is designed with two stacks/chimneys. Each FGD unit will be placed between the ash removal system (filter bag) and the stack.)

10 The proposed Medupi FGD system does not only encompass the construction and operation of the FGD plant, but also include a number of associated services and infrastructure aimed at managing the transportation and handling of input material required to make the system work. The FGD process also deals with the management of waste and by-products resulting from the operation of the FGD plant and associated infrastructure. POLICY LEGAL AND ADMINISTRATIVE FRAMEWORK African Development Bank Policy Requirement The proposed project interventions are classified as Category 1 in accordance with the Bank s Integrated Safeguards System and the ENVIRONMENTAL and SOCIAL Assessment Procedures.