2

SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

OF THE

POWER DEVELOPMENT AND EFFICIENCY ENHANCEMENT PROJECT

IN THE

REPUBLIC OF INDONESIA

June 1995
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CONTENTS

Page
A. Introduction 1

B. SEIA for Peusangan Hydroelectric Power Project (Part D) 1

C. Description of the Environment 2

D. Anticipated Environmental Impacts and Mitigation Measures 5

E. Alternatives 9

F. Economic Analysis 10

G. Institutional Aspects and Environmental Monitoring 10

H. Public Consultation 11

I. Conclusions 11

Appendix 13
 4

A. Introduction

1. The Power Development and Efficiency Enhancement Project consists of the

following:

Part A: Java 150 kilovolts (kV) transmission;

Part B: Sumatra 275 kV and 150 kV transmission;

Part C: Distribution control centers in Central Java;

Part D: 86.4 Megawatt (MW) Peusangan hydroelectric project;

Part E: Engineering design of hydropower projects: 81 MW Palu lll project in

Central Sulewesi, 182 MW Malea project in South Sulewesi, and
352 MW Cimandri project in West Java;

Part F: Human resource development; and

Part G: Engineering services.

2. The Environmental categories of the above parts are Category A: Part D; Category
B: Parts A, B, and C; Category C: Parts E, F and G. Parts A, B, and C will not be located in
environmentally sensitive areas such as protected forests, wildlife reserves, national parks, and
densely populated areas. No resettlement will be required. In addition to careful site selection,
Perusahaan Perseroan (Persero) PT. Perusahaan Listrik Negara [PT. PLN (Persero) or PLN] will
take environmental management measures such as protection of the soil with terracing and grass,
proper containment and disposal of spoils, minimization of vegetation clearing, and monitoring of
environmental impact. Therefore, no significant environmental impact is expected. Part E is
categorized as "C" since its component only involves engineering design. The initial environmental
examination or environmental impact assessment will, however, be prepared parallel with the
engineering design and, if financing of the construction of the scheme is considered under an
ensuing loan from the Asian Development Bank, the summary initial environmental examination or
summary environmental impact assessment (SEIA) will be submitted to the Bank for circulation to
the Board 120 days before Board consideration. No adverse environmental impact is foreseen
under Parts F and G.

B. SEIA for Peusangan Hydroelectric Power Project (Part D)

1. Introduction

3. The proposed subproject comprises the construction of hydroelectric power

generation facilities in the upper reaches of the Peusangan River in Aceh Tengah District
(Kabupaten), Aceh Province, and the construction of transmission facilities to link the generated
 5

power into the grid of PLN Region I power system. The river's source is Lake Laut Tawar, a 57-
2
square-kilometer (km ) lake in Aceh Tengah at an elevation of 1,230 meters (m). The district has
elevations ranging from 900 m to 2,600 m and lies about 4.5 degrees north latitude and 96
degrees east longitude.

4. The environmental impact assessment of the project has been based on the
existing environmental legislation and regulations (including the Decree of the Ministry of
Environment No. 14/1994) and on guidelines of the Asian Development Bank.

2. Subproject Description

5. The subproject will be a two-cascade type of hydroelectric power development with

a daily regulating storage capacity. The regulating weir will be located at the outlet of the lake to
regulate the lake water level for effective power generation. Two powerhouses will be located at
about 14.5 km and 23.5 km, respectively, downstream from the regulating weir. The lake water
level will be kept in the range of 1,230.4-1,228.9 m.

6. Diversion Weir No. 1, 15 m high, will be provided on the river, 12 km downstream

of the Regulating Weir to divert water to Powerhouse No.1. Here, the available mean discharge
for power generation is 11.5 cubic meters per second (cumsec). The waterway will consist of an
intake, a headrace tunnel, a surge tank, a penstock tunnel, a tailrace tunnel, and a tailrace outlet.
Powerhouse No. 1 will be underground and will be able to generate 168.8 gigawatt-hours (GWh)
of energy annually with a maximum plant discharge of 25 cumsec. The tailwater level of
Powerhouse No. 1 will coincide with the high water level of the intake of Powerhouse No.2.

7. Water discharged from Tailrace No. 1 will be momentarily stored in a connecting

pond. The available mean discharge for Power Station No. 2 will be 12.2 cumsec including the
runoff from the remaining basin between the two diversion weirs. The water will go through a cut
and cover type of circular headrace conduit provided on the relatively flat plateau, a head pond,
and a penstock line until reaching the open air type Powerhouse No. 2. A D-shaped cut and cover
tailrace conduit will lie between the powerhouse and the tailrace outlet. Powerhouse No. 2 will
have two 21.1 MW turbine/generators and be able to produce annually 174.6 GWh of energy with
the maximum discharge of 26 cumsec.

8. About 343.4 GWh will be produced annually by the generators of 86.4 MW (2x22.1
MW by Powerhouse No. 1 and 2x21.1 MW by Powerhouse No.2). The power from these plants
will be transmitted to the Bireun substation by a 64 km, 150 kV transmission line, and from there
integrated into the PLN Region I grid. The main civil works are planned to be started in March
1996 and completed in October 2000.

C. Description of the Environment

1. Climate

9. The climate around the subproject site is maritime tropical: hot and humid with
 6

much rainfall. The mean annual temperature at the Project area as determined at the nearby
o o
Takengon town (1,230 m elevation) is about 20 C with average maximum of 25 C and average
o
minimum of 13 C. Mean relative humidity varies between 85 and 93 percent. The mean annual
rainfall in the Peusangan River basin is about 2,000 mm.

2. Geology

10. Pre-tertiary sandstone and shale covered by old talus deposit and lava comprises
the bedrock at the Regulating Weir site. The tunnel passes through hard basalt and limestone.
Some faults of medium size are likely to be encountered. The penstock will cross approximately
100 m under the riverbed, passing across a 30 m wide fractured rock zone including a few fault
lines where the bedrock is of basalt. The Powerhouse No. 1 cavern will be located under hard
rock cover more than 40 m thick. The tailrace tunnel will pass under low hills of lava through
underlying bedrock of sandstone, shale, schist, and limestone. Diversion Weir No. 2 will be
located where the limestone is exposed on the riverbed at the right bank and mica schist is
exposed on the left bank. The cut and cover Headrace Conduit No. 2 will sit on young volcanic
deposit, with the final 1.5 km section in an area of very soft siltstone and tuff. Head Pond No. 2 will
be on moderately hard tertiary tuff breccia, 30 mm thick and minor coverings of solid and
homogeneous Miocene mudstone. The subproject site is about 30-50 km from the Semangko
Fault Zone. Several movements along this fault's lineation have been recorded in this century and
this fault zone could be a source of shallow earthquakes. The subproject's structures are,
however, mostly of small scale and the major facilities that could be affected by an earthquake are
located underground and would suffer less effects than would surface structures.

3. Soil Erosion

11. Although the population density in the subproject area is low, some existing land-
use practices do not include soil conservation measures. This could increase the erosion rate and
siltation in the lake and in the long term reduce the storage capacity of the lake. Recent surveys
have indicated some deforestation due either to illegal tree cutting or conversion of forest areas
into agricultural land. Vegetation in some parts of the catchment area may continue to decrease if
farmers continue to expand cultivated areas of food crops rather than of tree crop.

4. Hydrology

12. The Peusangan River, which has a total length of 130 km, flows from Lake Laut
Tawar and discharges into Malacca Strait about 20 km from Bireun. Between diversion weirs No.
1 and 2, are five small irrigation systems with a service area of 890 hectares (ha), using 1-1.5
cumsec are used from October to February.

13. Potable water in the subproject area is usually supplied from pumped groundwater
or mountain streams. Only a few families get water from the Peusangan River for drinking. The
river water quality is considered suitable for power generation because of its low chemical content
and suspended solids, but not suitable for drinking because of the high coliform bacteria content.
 7

5. Land Use

14. The catchment of Peusangan River is now one of the most developed in Aceh.
Settlement of the region around Takengon town and Lake Laut Tawar has expanded, covering
most of the surrounding land of gentler slopes. The total catchment area above Diversion Weir
No. 2 is 33,470 ha. Land use in the catchment area is dominated by mixed forest (39.5 percent),
rice field (14.0 percent), coffee plantation (11.3 percent) and pine forest (9.3 percent). Most of the
land affected by the subproject is used for agriculture.

6. Biology

15. The catchment area of Lake Laut Tawar is hilly and covered with shrub and pine
trees. The catchment vegetation indicates that the area has been cultivated. Improper pine tree
cutting has been observed. The area near Diversion Weir No. 1 (Wihni Bakong) is dominated with
agricultural crops such as rice and coffee. Near Diversion Weir No. 2 (Angkup), fruit trees and
coffee are the dominant vegetation.

16. Protected animals such as Actilis binturong, Nycticebus coucang and Manis
javaniva inhabit the forest. However, since the subproject area covers mostly villages and
agriculture areas, no impact on them is expected. Seven dominant fish varieties are found in the
lake. One of the species, depik fish (Rasbora tawarensis), is endemic. No migratory fish occur in
the Peusangan River. Several aquatic weeds are found in the lake both floating and submerged.
The weeds are not considered a nuisance and are in balance with the ecosystem.

7. Socioeconomic and Cultural Aspects

17. As of early 1994, there were about 82,900 people in the subproject area, a
2
relatively low population density of 43 people per km . Most of the villages in the area have
elementary schools and junior high schools. The level of education is considered average.
Dependence of the people on agriculture is high. Average farm land ownership is about 0.7-1.5 ha
per family. Some of the farm families earn supplementary income from nonfarm activities such as
small trading and casual labor. The most common sickness in the area is influenza, which is
common throughout Indonesia because of the high humidity. Intestinal or stomach disease is also
found, reflecting the poor hygiene of the community in the area.

18. Public bus transport is available in the subproject area throughout the day. Good
asphalt roads connect the subproject area villages to Takengon town. Existing economic activities
and infrastructure include shops, village cooperatives, and banks. Most of the economic areas are
accessible by four-wheeled vehicles. Of the roads that are around 4-5 m wide, 75 percent are
asphalt, 15 percent gravel, and 10 percent unpaved. Traffic frequency is low at about 6-12 cars
per hour. There is water transportation in the lake, but its use is decreasing because of the
improving road infrastructure in the vicinity. All of the subproject subdistricts (kecamatan) are
supplied with electricity by PLN, mostly generated by diesel power plants. Most industrial activities
comprise small enterprises with about 3-4 employees each. There are small diesel-run rice mills in
the subproject-affected area and one river water rice mill. About 300 fishermen depend on fishing,
 8

mainly in the lake. In addition to the 345 metric ton (t) annual catch from the lake, the area also
imports about 1,000 t of sea fish annually.

D. Anticipated Environmental Impacts and Mitigation Measures

1. Potential Environmental Impacts

(a) Preconstruction Stage

19. The subproject will need to acquire about 236 ha of land (see Table 1).

Table 1: Land Utilization

Land Use Permanent Semi-Permanent Temporary Total

(for quarry & (for construction
disposal works)
area)

Area Owners Area Owners Area Owners Area (%) Owners

(ha) (ha) (ha) (ha)

Houses/Home 1.9 6 - - - - 1.9 0.9 6

Garden

Rice Field/ 57.6 184 50.0 83 12.8 37 120.4 51.1 304

Horticulture

Coffee/ Mixed 24.0 53 - - - - 24.0 11.2 53

Crop

Bush 29.0 34 38.0 39 - - 67.0 31.2 73

River 3.0 - 19.5 - - - 22.5 10.5 -

Total 115.5 277 107.5 122 12.8 37 235.8 100 436

20. In addition to the above table, 1.7 ha of agricultural land owned by 84 families need
2
to be acquired for transmission towers (100 m per tower). Forty-three families who own
agricultural plants that could affect the transmission lines will be compensated for the crops. Such
tall plants need to be replaced by shorter plants that will not affect the transmission line.

21. For the Regulating Weir structure, there is a need to relocate six houses, one
junior high school, two elementary schools, one kindergarten school, and two praying houses. The
six houses include a long house rented out to seven families, while the other five are one-family
homes that are flooded whenever the lake water rises. The subproject will compensate the
property owners; all have agreed to move and build new houses on other land that they own.
Tenants affected will be compensated and assisted in moving to other rental houses. The
 9

education agency running the affected school buildings has agreed to relocate the schools and
indicated that the relocation would mean better conditions for the students and their activities. The
two affected praying houses are flooded during high lake water levels, and the affected
communities agree that relocation would be for the better.

b. Construction Stage

22. Prior to the main construction work, the base camp, access roads, and support
facilities will be developed. These labor-intensive activities will provide good employment
opportunities for the subproject area communities. The 8.3 km access road spreads over the
subproject area, but most of it does not pass through any settlements.

23. The equipment and materials needed by the subproject will be transported over
first class roads of the districts of Lhoksuemawe and Takengon and second class roads between
Takengon and Angkup. At the peak of the construction work, about 50-100 construction vehicles
per day will pass these roads. Potential impacts include dust and noise disturbances and faster
road deterioration.

24. The subproject's borrow area covers 29.5 ha in Celala village, about 15 km from
Remesan and 7 km from Semelit Mutiara, where most of the concrete works will be carried out. At
present, land in the borrow area is rainfed riceland, bushland, and riverbed. Excavation would
raise the potential of erosion if suitable remedial measures are not taken. Sand and gravel
transportation over district and village roads will also cause dust, noise, and accelerated road
deterioration.

25. For underground Powerhouse No. 1 and the headrace tunnel, 41,000 cubic meters
3
(m ) of soil and rocks will be dredged. Between the Regulating Weir and Diversion weir No. 1, 4
3
km of river will be dredged by about 1.4 m (about 87,500 m ). Dredged materials will be
transported to the disposal areas through access roads and public roads, and this may cause
temporary dust and noise problems. Erosion could happen at the disposal areas if appropriate
measure are not adopted.

26. The dredging between the Regulating Weir and Diversion Weir No.1 will be
conducted after the completion of the Regulating Weir so that the increase of turbidity can be
minimized. The turbidity will not carry far downstream since the riverbed material is relatively
coarse (sandy). Further, only a few families use the river water for domestic purposes, and these
people could use several alternative water sources such as springs and numerous hill creeks.
3
27. For the headrace conduit of Powerhouse No. 2, about 1.0 million m of soil will be
dug and backfilled. In between digging and backfilling, erosion risks will prevail.

28. The electro-mechanical work will require skilled labor and technicians and only a
little unskilled labor input. Noise is expected, but since the subproject site is far from settlements,
the impact will be insignificant.
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29. The transmission towers will be assembled on site. The galvanized iron parts will
be transported by truck to the nearest locations using existing roads. Then unskilled labor will
carry them to the tower sites. No significant impact is foreseen.

c. Operation Stage

30. The lake water level will be regulated between 1,230.4 m and 1,228.9 m for
effective power generation. The 1.5 m drawdown will cause the lake water level to be 0.5 m lower
than the natural lowest level during the end of the dry season, but will have no effect on the high
water level. The highest water level during natural flood is 1,231 m, at which time 13 houses in the
lake vicinity are flooded. The subproject will not have a significant impact on the flooding of the
houses, but will reduce the flooding of 15 ha of rice fields.

31. The impact of the subproject on fishery activities is considered insignificant

because of to the small change in the lake surface and elevation. The fish habitat will not change
and natural fish production will be maintained. The endemic, depik fish is found in the deep part of
the lake and will not be affected by the subproject. Less than 1.0 t of depik are caught annually.
The lake water is not used for irrigation.

32. There are five small irrigation weirs between diversion weirs No. 1 and No. 2.
2.24-6.60 cumsec will be released from Diversion Weir No. 1. The weirs require up to 1.5 cumsec
of water. The water quantity will suffice for irrigation and for maintenance of the river. However,
the weirs need to be reconstructed so that the water can reach the existing irrigation canals.
Between Diversion Weir No. 2 and the outlet of Tailrace No. 2, the bank is steep and the water is
not used by local people, who use water from streams that flow into the river.

33. The two powerhouses will have mean water discharges of 11.5 and 12.2 cumsec,
and their maximum discharges will be 25.0 and 26.0 cumsec. In the transition between low water
discharge and the high discharge at the beginning of the generation operation, a sudden increase
of water will occur. This could affect local people and cattle, but there are no houses in the vicinity.

d. Environmental Effects on the Project

34. While the present population density in the catchment is still low, some land-use
practices may increase the erosion rate and the siltation rate in the lake. The continuation of
improper cultivation practices and increase in agricultural food crop land areas, which are not
subproject-related, may adversely impact land cover and eventually the attributes of the lake itself.
This could have adverse impacts on the subproject.

35. Among the aquatic weeds in the lake are water hyacinth, hydrilla, Salvinia
mollesta, etc. According to the fisheries agency, the growth of aquatic weeds is being kept in
balance with the introduction of the grass carp fish. This kind of mitigation could be applied to the
pond vegetation in the subproject reservoir.

2. Mitigation Measures
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36. Below are the mitigation measures to be adopted:

(i) To avoid misunderstanding and suspicion among the local people about
the subproject, especially among the affected families, extension work and
information dissemination will be conducted concerning subproject
objectives, value, details, and the property compensation process. Formal
information activities will be coordinated with the Governor, the Bupati
(Regency Head), Camat (District Head) and Kepala Desa (Village Head).
Informal information campaigns will also be conducted through informal
leaders, such as religious leaders, farmer groups, etc.

(ii) Land compensation will be executed in accordance with Presidential

Decree No. 55/1993. In principle, the land value will be determined by the
agreement between the landowners and PLN on the basis of land classes,
location, and present use. Crops under the transmission lines will be
compensated in accordance with Regulation of the Mining and Energy No.
01.P/M.Pe/1992.

(iii) Public facilities that need relocation, such as the school buildings and
praying houses, will be relocated prior to construction to ensure their
continued availability to the local communities.

(iv) Priority of labor recruitment will be given primarily to local people, as far as
their skill and capabilities meet the requirements of the subproject.

(v) Wide-bodied heavy equipment transportation, which would occupy most of

the road body, will be conducted at night when local traffic is at the
minimum.

(vi) Dust pollution will be minimized by spraying roads with water, and noise
pollution by the use of silencers.

(vii) Road damage caused by subproject activities will be promptly attended to

with proper road repair and maintenance work.

(viii) Contingency measures will be applied to provide clean water during river
dredging operations. Dredging will be carried out after the Regulating Weir
is operating so that the low water flow will minimize downstream turbidity.

(ix) To maintain the water resource and the storage capacity of Lake Laut
Tawar, a land rehabilitation and soil conservation program will be designed,
implemented and integrated in cooperation with the Land Rehabilitation
and Soil Conservation Center of the Forestry Office and other agencies
concerned. There is a pending local government regulation to reclassify the
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production forest area in the catchment into protected forest area. The
processing of this legislation will be followed up.

(x) Excavation, disposal, and spoil areas will be reclaimed and replanted to
minimize the soil erosion and to improve the environment.

(xi) Adequate river water will be secured to meet the requirements of riparian
people, livestock, and wild animals.

(xii) The residual stream discharge downstream of Diversion Weir No.1 is

adequate for present irrigation requirements, but the subproject will lower
the water level below that of the existing irrigation canals. With the
collaboration of the Irrigation Division of the Provincial Public Works, the
subproject will build small weirs in order to allow stream water to flow into
the irrigation canals.

(xiii) Mud/sand flushing during operation will be done when the river discharge is
high in order to eliminate downstream turbidity.

(xiv) Fish production will be monitored for any possible decrease. If any
unexpected negative impact occurs, fish will be restocked. Technical
support will be provided to the fish farming activities in the lake.

(xv) The growth of aquatic weeds will be monitored and excess weeds will be
removed. Adequacy of the grass carp fish population will also be
monitored.

(xvi) While the power production will have a direct impact as primary
infrastructural input needed for economic development, attention will also
be given to developing more job opportunities. The subproject, in
cooperation with related Government agencies, will stimulate and support
the establishment and growth of secondary development, including home
and handicrafts industries.

(xvii) A system with sirens and sign boards will be installed to warn people in the
river of the start of the generation cycle of the power plant.

(xviii) An organizational unit will be established in the organization structure of the

subproject to be responsible for functions related to environmental
management and monitoring.

E. Alternatives

37. The only technically viable thermal power alternatives to the 86.4 MW Peusangan
hydropower project are to construct either a diesel power plant with an installed capacity of 110
 13

MW (5x22 MW) or a coal-fired thermal power plant with an installed capacity of 120 MW (4x30
MW). The thermal options require higher installed capacity because of higher consumption in
station auxiliaries, higher forced outage rates, and longer periods for scheduled maintenance
compared to hydropower plants.

38. Both the thermal alternatives, diesel-based and coal-fired, would result in far more
environmental pollution due to emission of sulfur oxides (SOx), nitrogen oxide (NOx), carbon
dioxide (CO2) and particulates. A coal-fired plant would also create problems of ash disposal and
thermal pollution of water resources. Either option will also require extraction and transportation of
nonrenewable energy resources, thereby further increasing the potential for environmental
degradation unless expensive mitigation measures are adopted.

39. Six alternatives were studied for changing the high water level from 1,294.4 m to
1,230.9 m. The proposed subproject whose high water is 1,230.4 m, which is equal to the natural
high water level, was selected on both economic and environmental grounds.

F. Economic Analysis

40. The subproject will directly contribute to the economic development of the country
by the provision of additional power required by existing and future industrial, commercial, and
residential users in Sumatra. Other benefits will include improvement in local employment, culture,
and social standards.

41. The subproject cost is estimated at about $218.8 million in actual financial terms
and about $146.9 million in economic terms. The economic internal rate of return on the
subproject investment is estimated to be 12.8 percent.

42. The compensation for the houses, land, and crops is estimated at around Rp 6.6
billion ($3 million) and is included in the subproject cost.

G. Institutional Aspects and Environmental Monitoring

43. PLN is the subproject proponent. An Environmental Subdivision in the Ministry of

Mines and Energy will assist PLN in evaluating and monitoring environmental management
efforts. Technical Team for Environmental Impact Assessment, chaired by the Director of
Electricity Planning in the ministry, provides technical assistance to PLN.

44. In PLN, several units are involved in environmental aspects of the subproject:
namely: (i) the Hydro Project Control and Supervision Division, under the Directorate of
Construction, which is responsible for control and supervision during Project implementation; (ii)
the Hydro Operation Control and Supervision Division, under the Director of Operation, which is
responsible for control and supervision when the Project is operational; (iii) the Engineering
Service Center, which is responsible for engineering design of the Project; (iv) the PLN AMDAL
Team, which is responsible for environmental impact assessment activities of PLN; and (v) the
Public Relations and Environmental Subdivision, which is responsible for environmental
 14

management and monitoring during construction.

45. Upon completion of the subproject, the management of the power plant will be
turned over to PLN Region I. Its Environmental Section will then take over the functions of
environmental management and monitoring related to the power plant.

46. PLN has the specific legal authority to deal with Project-related environmental
issues. Environmental impact mitigation and management activities that will involve sectoral
agencies will be coordinated by the Regent (Bupati) of Aceh Tengah or the Chief of the Planning
Board of Aceh Tengah. Other sectoral efforts will include the following: (i) management of the
impact on fisheries will be conducted by the Fisheries Office; (ii) erosion control in the upper
catchment area will be conducted by several agencies, including the Ministry of Forestry and the
Ministry of Agriculture; and (iii) land compensation activities will be conducted by the Land
Compensation Committee, chaired by the Regent of Aceh Tengah. A summary of the
environmental monitoring plan is presented in the Appendix.

H. Public Consultation

47. During the subproject preparation stage, PLN consulted the local government,
national government agencies, local nongovernment organizations (NGOs) and the local people.
At the local government level, the subproject concept was discussed with the district, subdistrict,
and village heads of all affected places. For economic sectoral impacts of the subproject,
consultations were made with the: (i) Public Works Office, on the impact on irrigation; (ii) Fisheries
Office, for the impact on fishery; (iii) Agriculture Office, for the impact on rice farming; (iv) Forestry
Office, for the impact of the catchment area on the Project and regreening programs; (v)
Education Office, for the impact of relocated schools; and (vi) the Provincial Development
Planning board, on the master plan for the region. Among the NGOs consulted was the Islamic
Educational Institute.

48. A survey was conducted to gather information on the perception of the people
affected by the subproject. The survey indicated near unanimous acceptance of the subproject by
the people. Ninety-six percent of the respondents wanted the subproject to proceed, while the
remaining 4 percent had no objection if the subproject was as the government decided. Most of
the respondents favored the subproject because they believed that it would make access to their
villages better, their villages would become more developed, and economic activity would grow.
Many of them expected to benefit from job opportunities during subproject implementation.
Regarding land acquisition, people demanded that compensation should be fair and be in
accordance with market values. Most of the people were planning to invest their compensation in
productive activities (such as purchasing agricultural land or livestock, or investing in a business
venture). A small percentage of the respondents indicated plans to use the compensation on
various purposes such as purchasing a new house, repairing a house, spending it on their
children, or depositing it in the bank.

49. Public meetings were held in September 1994 to give general and specialized
information on the subproject to affected communities. Findings of the survey were confirmed at
 15

the meetings.

I. Conclusions

50. The preparation survey of affected residents and concerned agencies indicated no
opposition to the subproject. A number of consultations, both formal and informal, have been
conducted with residents, local government offices, sectoral government offices, and NGOs.
Concerns and comments expressed have been considered and incorporated into the design of
the Project.

51. During preconstruction, the major impact of the subproject is the loss of agricultural
land to farmers. Fair compensation should enable the affected farmers to replace their lost land
with another piece of land or recover their lost income. The impact of the relocation of the schools
and the praying houses will only be temporary. New buildings will replace the old ones and the
new locations will be flood-free. The owners of the affected private houses will be fairly
compensated at market values.

52. During construction, the major impact will be the disturbances caused by the
transport of construction and spoil material. Several construction activities will involve the
evacuation of spoil material through several kilometers of village area. The resulting traffic could
cause dust and noise pollution and even accidents. The negative impacts will be mitigated
through proper management of the construction vehicular traffic and adoption of measures such
as spraying water over affected roads.

53. The dredging activities in the river will cause turbidity downstream. This will be
mitigated through the regulation of the discharge. Dredging will be undertaken after the
Regulating Weir is operational.

54. If not managed properly, the power plant operation will adversely impact the
irrigation of the rice fields by lowering river water level, which could diminish the supply to the
irrigation canals. To overcome this, small weirs will be constructed to enable flows into irrigation
canals when the plant is operating. Duty flows will also be assured.

55. The regulation of the lake water will benefit people whose houses and yards have
been regularly flooded during high water levels of the lake. People in the vicinity of Peusangan
River will also benefit from the eradication of the regular flooding as a result of the river dredging.
The impact of the subproject on the fishery activities in the lake will be insignificant because power
plant operations will have only minor effects on lake water levels.

56. The impact of the sudden increase in water downstream of the powerhouse at the
start of generation operation will be small because no people reside in the affected area.
Moreover, a system of sirens and sign boards will be installed to warn people of the increase in
river discharge.
16
 2

MATRIX OF ENVIRONMENTAL MONITORING PLAN OF PEUSANGAN HYDROELECTRIC POWER PROJECT (PART D)

No. Environmental Source of Impact Monitoring Methods and Locations of Intervals and Executing Financing Supervising
Aspects To Be Parameters Monitoring Duration of Agency Source Agency
Monitored Monitoring

1 PRECONSTRUCTION
STAGE

1.1 Rumors, speculations -Survey and Investigations -Survey & questionnaire: -Affected -Every 3 months -PLN -PLN -DGEED
a
-Land compensation Kinds of rumors villages 1994-1995
speculations, etc.

1.2 Disturbance of -Survey and investigations -Survey & questionnaire: -Affected -Every 3 months -PLN -PLN -DGEED
a
personal and public Kinds of disturbance villages 1994-1995
belonging

1.3 Loss of Income of the -Land acquisition for all -Survey & questionnaire -Affected -Every 6 months -PLN -PLN -DGEED
a
PAPs and income construction sites Level of income before villages 1994-1995
relieves and after the project

1.4 Relocation of State’s -Land acquisition for -Site visit -Relocated site Each month -PLN -PLN -DGEED
a
Schools (Junior High & regulating weir Progress of construction locations 1994-1996
Elementary) construction
a
1.5 Relocation of YPI’s -Land acquisiiton for Progress of construction -Relocated site Each month -PLN -PLN -DGEED
Schools (Elementary & regulating weir locations 1994-1996
Kindergarten) construction
a
1.6 Relocation of praying -Land acquisition for Progress of construction -Relocated site Each month -PLN -PLN -DGEED
houses (2 units) regulating weir locations 1994-1996
construction
a
1.7 Affected house -Land acquisition for Provide the new rental -Relocated site -Once in 1965 -PLN -PLN -DGEED
tenants regulating weir house locations
construction
-Lake water fluctuation
a
1.8 Relocation of the -Land acquisition for Provide the new rental -Relocated site -Each month -PLN -PLN -DGEED
PAP’s houses regulating weir house locations 1994-1996
construction
-Lake water fluctuation
PAPs: Project Affected Peoples; DGEED: Directorate General of Electricity and Energy Development
a
Parameter
 3

No. Environmental Source of Impact Monitoring Methods and Locations of Intervals and Executing Financing Supervising
Aspects To Be Parameters Monitoring Duration of Agency Source Agency
Monitored Monitoring

2 CONSTRUCTION
STAGE

2.1 Local manpower -Construction works -Contractors’ report -Construction sites -Each month -PLN -PLN -DGEED
a
absorption Number of local people 1995-1999
work in the project

2.2 Erosion and landslide -Excavation, disposal, cut -Survey and observation -Access road, -Each month -PLN -PLN -DGEED
a
& fill and land clearing Extent and degree of land disposal, sand 1996-1999
activities slides and erosion quarry, dredged
river areas

2.3 Water quality -Excavation, disposal, cut -Survey and collect -Peusangan River -Each month -PLN -PLN -DGEED
& fill and land clearing samples and field at villages: 1996-1999
a
activities measurement Bale Buyong
a
Turbidity, water hakim
a
discharge, number of Bihni Bankong
a
affected people Remesan

2.4 Dust, noise, and -Mobilization of materials, -Survey and collect -Access road, -Each month -PLN -PLN -DGEED
accidents equipment and disposal samples and field village road, 1996-1999
items measurement Remesan, Celala
a
Level of dust, noise, and and Bihni Bakong
number of accidents

2.5 Revegetation -Lan clearing, disposal -Survey and observation -Access road, -Every six months -PLN -PLN -DGEED
a
works Extent and degree of land disposal, sand 1996-1999
covers quarry
 4

No. Environmental Source of Impact Monitoring Methods and Locations of Intervals and Executing Financing Supervising
Aspects To Be Parameters Monitoring Duration of Agency Source Agency
Monitored Monitoring

3 OPERATION STAGE

3.1 Water quality and -Lake water regulation -Survey and collect samples -Peusangan River -Each month -PLN -PLN -DGEED
quantity (for irrigation -Diversion water for and field measurement at villages: after operations
a a
and domestic uses) power generation Water discharge at regulating Bale Buyong
weir hakim
a a
Discharge water at diversion Bihni bakong
a
weir and irrigation water Remesan
a a
Construction of irrigation Semelit melati
weirs
a
Water quality (turbidity,
coliform bacteria, and others)

3.2 Accidents -Sudden discharge due -Survey & observation -Peusangan River -Each month -PLN -PLN -DGEED
to power generation at villages: after operations
downstream powerhouse

3.3 Fish production -Lake water regulation -Survey and collect samples -Lake Laut Tawar -Each month -Fisheries -Fisheries -DGEED
a
Kinds of species kecamatans: after operations agency agency
a a
Level of productions Bintang
a a
Number of fisheries Takengon

3.4 Aquatic weed -Survey and collect -Lake Laut Tawar -Each year -PLN -PLN -DGEED
samples and field kecamatans:
a
measurement Bintang
a a
Kinds of species Takengon
a
Areas of Distributions -Peusangan River
at Villages:
a
Bihni bakong

3.5 Catchment conditions -Deforestation -Survey and observations -Catchment area: -Each year -Forestry -Forestry -DGEED
a
Bald area Lake Tawar and agency agency
a
Revegetation area Peusangan River