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, PROJECT DESCRIPTION FOR SCOPING Proposed Diesel Power Plant Project Barangay Malaya, Pililla, Rizal Submitted to: Environmental Management Bureau – Central Office 3 April 2018

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,

PROJECT DESCRIPTION FOR SCOPING

Proposed Diesel Power Plant Project

Barangay Malaya, Pililla, Rizal

Submitted to:

Environmental Management Bureau – Central Office

3 April 2018

An Environmental Report By: Unit 8L-M, Future Point Plaza 3 111 Panay Avenue, South Triangle Rizal City, Metro Manila Tel. No.: (02) 442-2830

Submitted To:

Department of Environment and Natural Resources Environmental Management Bureau – Central Office EMB Building, DENR Compound, Visayas Avenue Diliman, Quezon City

DOCUMENT TRACKING Version No.

Report Compiled By: Checked By: Approved By:

Name Signature Name Signature Date

1 K. Santos J.M. Lim

J.M. Lim

2 March 2018

2 K. Santos J.M. Lim

J.M. Lim

3 April 2018

Distribution of Latest Version

No. of Copies

Submitted To: Date Submitted Received By: Remarks:

1 DENR-EMB Central Office 2 March 2018

1 DENR-EMB Central Office 3 April 2018

April 2018

TABLE OF CONTENTS 1.0 Project Description ............................................................................................................ 1 1.1 Project Location and Area .................................................................................................. 2 1.1.1 Site Accessibility ......................................................................................................................................... 2 1.1.2 Project Impact Areas .................................................................................................................................. 2 1.2 Project Rationale ............................................................................................................... 8 1.3 Project Alternatives ........................................................................................................... 9 1.3.1 Site Selection .............................................................................................................................................. 9 1.3.2 Technology Selection ............................................................................................................................... 10 1.3.3 Resources ................................................................................................................................................. 10 1.4 Project Size ..................................................................................................................... 10 1.5 Project Components ........................................................................................................ 12 1.5.1 Modular Diesel Generators ...................................................................................................................... 12 1.5.2 Air Intake System ..................................................................................................................................... 13 1.5.3 Exhaust Gas System ................................................................................................................................. 13 1.5.4 Fuel Supply System .................................................................................................................................. 13 1.5.5 Engine Oil Lubrication System .................................................................................................................. 13 1.5.6 Cooling System ......................................................................................................................................... 14 1.5.7 Auxillary Facilities ..................................................................................................................................... 14 1.5.8 Pollution Control Facilities ....................................................................................................................... 14 1.6 Project Schedule .............................................................................................................. 15 1.7 Stakeholder Engagement ................................................................................................. 15 1.8 Manpower Requirement ................................................................................................. 17 1.9 Project Cost ..................................................................................................................... 17 1.10 Preliminary Identification of Environmental Aspects ........................................................ 17

LIST OF TABLES Table 1: Basic Information on the Proposed Project, Proponent, and EIA Preparer ......................................... 1 Table 2: Brief Description of the Proposed Project Components .................................................................... 12 Table 3: Modular Diesel Generator Specifications ......................................................................................... 13 Table 4: Tentative Project Implementation Timeline ..................................................................................... 16 Table 5: Manpower Requirement per Project Phase ...................................................................................... 17 Table 6: Key Environmental Aspects Identified and Preliminary Impact Assessment ..................................... 18

LIST OF FIGURES Figure 1: General Location Map of the Proposed Project ................................................................................. 3 Figure 2: Aerial Photograph of the Proposed Project Location ......................................................................... 4 Figure 3: General Site Layout Plan for the Proposed Project ............................................................................ 5 Figure 4: Plant Layout Plan for the Proposed Project ....................................................................................... 6 Figure 5: Direct and Indirect Impact Areas of the Proposed Project ................................................................. 7 Figure 6: Power Demand and Supply Balance .................................................................................................. 8 Figure 7: Ancillary Services for Power Quality and Reliability .......................................................................... 9 Figure 8: Modular Diesel Power Plant Samples .............................................................................................. 11

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

Page 1

SECTION 1

1.0 Project Description

1 AC Energy, Inc. (ACE) [the Proponent], in partnership with Marubeni Corporation (Marubeni), through a special purpose vehicle (“SPV”), is planning to develop a 150-MW diesel engine power plant in Barangay Malaya, Pililla, Rizal, Region IV-A (CALABARZON). The SPV intends to enter into an Ancillary Services Procurement Agreement (“ASPA”) with the National Grid Corporation of the Philippines (“NGCP”), whereby the SPV will be required to deliver 80MW of firm Regulating Reserve capacity and 70MW of firm Contingency Reserve capacity for a period of five years, which may be extended for another five-year period.

2 The power plant will be composed of 150 modular diesel engine units, each having a rated capacity of 1MW. These diesel units will be leased by the SPV from Aggreko International Projects Limited (Aggreko).

3 The proposed project also involves the installation of a gas-insulated substation within the site and the construction of approx. 650-meter single-circuit transmission line, in order to connect the power plant to the Luzon Grid via the NGCP’s 230kV Malaya Substation.

4 Table 1 provides some basic information regarding the proposed project, the Proponent, and the Environmental Impact Assessment (“EIA”) preparer.

Table 1: Basic Information on the Proposed Project, Proponent, and EIA Preparer

Project Name INGRID Pililla 150-MW Diesel Power Plant Project

Project Location Brgy. Malaya, Pililla, Rizal, Region IV-A (CALABARZON)

Project Area 6.8 hectares

Project Type Thermal Power Plant (Diesel-Fired)

Project Capacity 150 megawatts (150 x 1MW)

Project Proponent

AC Energy, Inc. 4/F, 6750 Office Tower, Ayala Avenue, Ayala Center, Makati City Tel. No.: (02) 730-6300

Authorized Representatives: Ms. Janel M. Bea Vice President, Finance and Accounting

Mr. Ramon D. Cabazor Technical Manager, Business Development and Operations

EIA Preparer

LCI Envi Corporation Unit 8L-M, Future Point Plaza 3, 111 Panay Avenue, South Triangle, Quezon City Tel. No.: (02) 442-2830 Fax No.: (02) 961-9226 Engr. Jose Marie U. Lim EIA Team Leader

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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1.1 PROJECT LOCATION AND AREA

5 The proposed project will be utilizing a 6.8-hectare leased industrial lot in Barangay Malaya in the Municipality of Pililla, Rizal, Region IV-A (CALABARZON). Figure 1 and Figure 2 show the location map and aerial photograph of the proposed project site location (N 14.391015°, E 121.334984°), while Figure 3 and Figure 4 present the proposed site and plant layout plans for the project.

6 As shown, the site is situated within the old Shell Lube Oil refinery complex by the lakeside of the Laguna de Bay and along the Pililla-Jala-Jala-Pakil Road. It is near the Malaya Thermal Power Plant and the NGCP Malaya Substation.

1.1.1 Site Accessibility

7 By land transportation, main access to the project site is via the Pililla-Jala-Jala-Pakil Road. Alternatively, it may also be accessed through water transport via the Laguna de Bay.

1.1.2 Project Impact Areas

1 The EIA study will cover the direct and indirect impact areas for the proposed project identified based on the guidelines provided in Annex 3 of the DENR Memorandum Circular No. 2010-14. Figure 5 graphically presents the initial delineation of the proposed project’s impact areas.

2 As per the DENR guidelines, the direct impact area (DIA) is defined as the area where all the project facilities are proposed to be situated and where all operations are proposed to be undertaken. For this project, the DIA is initially delimited to consist of the 6.8-hectare site where the diesel power plant components and facilities will be located and operated, as well as the areas to be traversed by the transmission line (project footprints).

3 On the other hand, the indirect impact area (IIA) identification takes into account the extent of the potential project impacts on biophysical (land, water, and air quality) and socio-economic aspects. For this project, the IIA generally covers the areas in the immediate vicinity of the project site, including the Laguna de Bay, as well as the host local government units (“LGUs”) of Barangay Malaya and Municipality of Pililla, which are expected to benefit from the additional employment, business opportunities, taxes that may be contributed by the proposed project, in addition to power supply stability. The IIA coverage may be expanded to also include the adjacent LGUs, the Province of Rizal, Region IV-A, and, furthermore, the entire Luzon region, which can benefit from the ancillary services to be provided by the project to the power grid.

4 The delineation of the project’s impact areas may later on be updated or defined in technical terms once the impact assessment has been conducted.

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

Page 3

Figure 1: General Location Map of the Proposed Project

FIGURE NO.:

1

FIGURE TITLE:

General Location Map of the Proposed Project

PROJECT PROPONENT:

AC ENERGY, INC.

PROJECT TITLE & LOCATION:

INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Pililla, Rizal

REPORT PREPARER:

LCI ENVI CORPORATION

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

Page 4

Figure 2: Aerial Photograph of the Proposed Project Location

NOTE: Aerial photograph taken by LCI Study Team on February 13, 2018 using drone.

FIGURE NO.:

2

FIGURE TITLE:

Aerial Photograph of the Proposed Project Location

PROJECT PROPONENT:

AC ENERGY, INC.

PROJECT TITLE & LOCATION:

INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Pililla, Rizal

REPORT PREPARER:

LCI ENVI CORPORATION

PROPOSED PROJECT SITE (showing approximate site boundaries)

MALAYA THERMAL POWER PLANT

SHELL TRAINING CENTER

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

Page 5

Figure 3: General Site Layout Plan for the Proposed Project

FIGURE NO.:

3

FIGURE TITLE:

General Site Layout Plan for the Proposed Project

PROJECT PROPONENT:

AC ENERGY, INC.

PROJECT TITLE & LOCATION:

INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Pililla, Rizal

REPORT PREPARER:

LCI ENVI CORPORATION

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

Page 6

Figure 4: Plant Layout Plan for the Proposed Project

FIGURE NO.:

4

FIGURE TITLE:

Plant Layout Plan for the Proposed Project

PROJECT PROPONENT:

AC ENERGY, INC.

PROJECT TITLE & LOCATION:

INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Pililla, Rizal

REPORT PREPARER:

LCI ENVI CORPORATION

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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Figure 5: Direct and Indirect Impact Areas of the Proposed Project

NOTE: Map generated by EIA Study Team using Google Earth

FIGURE NO.:

5

FIGURE TITLE:

Direct and Indirect Impact Areas of the Proposed Project PROJECT PROPONENT:

AC ENERGY, INC.

PROJECT TITLE & LOCATION:

INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Pililla, Rizal

REPORT PREPARER:

LCI ENVI CORPORATION

LEGEND:

DIRECT IMPACT AREA (Site where all project facilities are

proposed to be constructed and operated; project footprints)

INDIRECT IMPACT AREA (Contiguous areas that may be affected by the project)

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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1.2 PROJECT RATIONALE

5 In general, ancillary services are essential to sustaining the transmission capacity and maintaining the power quality, reliability, and security of the grid. Sudden fluctuations in the frequency and the voltage of the transmission system are typically brought about by the intermittent operations of renewable energy plants, unplanned outages of conventional power plants, as well as the daily operational cycle of large power consumers.

6 Through the deployment of modular, fast-start, high-speed, quick-response, small capacity, diesel-fired generating units, the proposed INGRID Pililla Diesel Power Plant Project aims to deliver two types of ancillary services to the NGCP:

Regulating Reserve (“RR”) / Frequency Regulation – The diesel units will respond to small, instantaneous fluctuations in system frequency, primarily brought about by conventional and rapid changes in the demand and supply of electricity. NGCP requires an automatic and immediate response from the generating unit/s providing RR by having all RR units to be online, typically at 50% capacity.

Contingency Reserve (“CR”) / Spinning Reserve – The diesel units will respond to a significant drop in system frequency, as a result of an abrupt outage or loss of generating unit/s or transmission line in the system. Similar to RR, CR units are required by the NGCP to respond automatically to frequency triggers. Synchronization to the grid can be made on a sector level.

Figure 6: Power Demand and Supply Balance

NOTE: Illustration provided by the Proponent

FIGURE NO.

6 FIGURE TITLE

Power Demand and Supply Balance PROJECT PROPONENT:

AC ENERGY, INC. PROJECT TITLE & LOCATION:

INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Barangay Malaya, Pililla, Rizal

REPORT PREPARER:

LCI ENVI CORPORATION

Demand Supply BalanceMaintaining demand-supply balance is key to power quality and reliability

60.0 Hz 60.3 Hz59.7 Hz

LOAD GENERATION

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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Figure 7: Ancillary Services for Power Quality and Reliability

NOTE: Illustration provided by the Proponent

FIGURE NO.

7 FIGURE TITLE

Ancillary Services for Power Quality and Reliability PROJECT PROPONENT:

AC ENERGY, INC. PROJECT TITLE & LOCATION:

INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Barangay Malaya, Pililla, Rizal

REPORT PREPARER:

LCI ENVI CORPORATION

7 The Proponent is required to secure an Environmental Compliance Certificate (“ECC”) from the DENR-EMB prior to any development in the project site. Pre-requisite to the acquisition of an ECC for a project of this scale is the preparation of an Environmental Impact Statement (“EIS”), as stated in Annex A Item No. 3.2.4 (Other Thermal Power Plants e.g., coal, diesel, bunker, etc. with total power generating capacity equal to or greater than 30 MW) of the EMB Memorandum Circular 005-2014 (“Revised Guidelines for Coverage Screening and Standardized Requirements under the Philippine EIS System”).

1.3 PROJECT ALTERNATIVES

1.3.1 Site Selection

8 Technical, environmental, and land use considerations were taken in the selection of the site for the proposed project. The absence of critical habitats within the project site and its proximity to possible tapping point (NGCP’s Malaya Substation) were some of the main factors that contributed to its selection. No other sites were considered for the proposed project.

Ancillary Services3 layers of defense to maintain power quality and reliability

5 sec 25 sec 10 Min 30 Min15 Min

Regulating Reserve

Contingency Reserve

Dispatchable Reserve

8 Hrs

Fast and automatic response to small changes in frequency from load fluctuations

Fast response to significant changes in frequency from loss of generation or transmission flows

Capacity to immediately replenish Contingency Reserve for next event requiring it

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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1.3.2 Technology Selection

9 A conventional thermal power plant facility that would utilize bunker fuels for power generation was initially proposed for the project. However, it was later on decided that a modular power technology would be adopted for the following reasons:

Fast start capability: Modular power technology can start-up, synchronize, and reach its full capacity within one minute, due to its high-speed reciprocating engine configuration.

Frequency triggered start-up/shutdown: At defined settings, it automatically starts when the frequency drops and automatically de-synchronizes from the grid and shuts down as soon as the grid frequency returns to the normal bandwidth.

Frequency stability: When the frequency decreases below the minimum set-point, the modular diesel engine will supply the additional power, in order to maintain the grid’s normal frequency. Conversely, when the system frequency increases above the maximum set-point, the generator will automatically decrease its load.

Zero minimum stable loading: It can operate at zero minimum load for extended periods.

Fast ramp rate: The ramp rate of a 1-MW modular diesel engine is about 35kW per second. Thus, it can operate from 0% to 100% MW output in 28 seconds.

10 Figure 8 shows an illustrative and an actual sample of a modular diesel power plant.

1.3.3 Resources

11 The use of diesel fuel for ancillary service purposes is particularly favored for the following reasons:

Environmental impact: Diesel oil is much cleaner as compared to bunker fuel oil and coal.

Availability: Diesel fuel is obtained almost exclusively from crude oil/petroleum and availability of diesel is relatively stable.

Affordability: Diesel is an affordable source of energy for the Philippines.

1.4 PROJECT SIZE

12 The proposed power plant will have a total generation capacity of 150 megawatts. The total land area that will be utilized for the proposed project is approximately 6.8 hectares.

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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Figure 8: Modular Diesel Power Plant Samples

Sample modular diesel power plant layout illustration:

80-MW modular diesel power plant facility in Cerro Azul, Panama

Source: Aggreko

FIGURE NO.

8 FIGURE TITLE

Modular Diesel Power Plant Samples PROJECT PROPONENT:

AC ENERGY, INC. PROJECT TITLE & LOCATION:

INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Barangay Malaya, Pililla, Rizal

REPORT PREPARER:

LCI ENVI CORPORATION

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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1.5 PROJECT COMPONENTS

13 The major components, auxillary facilities, and pollution control devices for the proposed project are presented in below:

Table 2: Brief Description of the Proposed Project Components

Component Description

MAIN PROJECT COMPONENTS

Modular Diesel Generators

Combination of a diesel engine with an electric generator (often an alternator) to generate electrical energy

Air Intake System Supplies the correct amount of air needed to increase the combustion and the efficiency of an engine

Exhaust Gas System Consists of the exhaust ducting, exhaust silencer complete with spark arrestor, and rain cap assembly. The exhaust gas exits the engine and passes through the exhaust ducting and exhaust out the top of the container through the rain cap assembly. Insulation and heat shields are fitted to the exhaust ducting to prevent operators contact with high temperature surface.

Fuel Supply System Consists of an internal fuel tank, Racor filters, fine fuel filter, fuel pump, injection pump and nozzles. Fuel is pumped through the Racor filters to the fine fuel filters and then passed to the injectors and then to the injection nozzles.

Lubrication System Includes pump, strainer, and sump, all fitted internally within the engine block

Cooling System Uses cooling fluid where flow to the radiator is controlled by thermostat

AUXILLARY FACILITIES

Service Water System

For site facilities containers and on-site washing of equipment. Water supply line for equipment washing will be installed in line with the fuel pipeline using PVC pipe material.

Instrumentation and Control System

A central PLC and SCADA system will automate all equipment controls and protections for plant start/stop, load management, and operations required for meeting regulating and contingency mode protocols. The SCADA will provide trending and data recording functions, as well as user HMO for the PLC and metering, fuel consumption information. The communication platform is Modbus.

Substation A switching and metering station (switchyard) will be installed to provide all the necessary technical requirements for interconnection to the grid.

Transmission Line A single circuit 650-meter (more or less) 230kV line will be constructed to connect the power plant to the existing NGCP 230kV Malaya Substation

Administration Building and Other Site Facilities

Containerized facilities will be provided to function as control rooms, office/workshop stations, security/first-aid posts, and kitchen/toilet/locker/consumables storage areas, among others.

Fire Protection System

Manually operated DCP & CO2 fire extinguishers will be installed at strategic locations around the site.

POLLUTION CONTROL FACILITIES

Exhaust 150 exhausts, each with a height of 5.6 m (extendable up to 8.6 m) from the ground and with a circumference of 130 cm.

Oily Waste Water Treatment System

For treatment of oily wastewater generated during the process of equipment maintenance/washing to prevent the entry of unacceptable level of contamination to the site drainage system.

1.5.1 Modular Diesel Generators

14 Each of the 150 diesel-fueled generating units will have a rated capacity of 1MW. It utilizes the 16-cylinder diesel engine as the prime mover where the fuel burned inside the combustion

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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chambers produces mechanical energy which is converted in electrical energy as it drives directly coupled alternator. The specifications are provided in the following table.

Table 3: Modular Diesel Generator Specifications

Particular Specifications – Generator Type 1 Specifications – Generator Type 2

Engine Model KTA50G3+ (KTA50G12) QSK50G4

Model and Type KTA50-G12 QSK50G4 Tier 2 (Emissions Regulated Engine)

Speed 1800 rpm 1800 rpm

No. of Cylinders 16 cylinders 16 cylinders

Bore and Stroke Bore: 159 mm (6.25 in) Stroke: 159 mm (6.25 in)

Bore: 159 mm (6.25 in) Stroke: 159 mm (6.25 in)

Total Power Output 1048 kW (Continuous Power) 1131 kW (Continuous Power)

Fuel Consumption (maxium feed rate)

264 L/hr 306 L/hr

Compression Ratio 13.9 : 1 15.0 : 1

Piston Speed 1875 ft/min (9.5 m/s) 1875 ft/min (9.5 m/s)

Cylinder Block 4-cycle, 60o Vee 4-cycle, 60

o Vee

1.5.2 Air Intake System

15 This system supplies sufficient air to the engine for an effective internal combustion. It consists of pipes for the supply of fresh air to the engine intake manifold. Filters are provided to remove dust particles from air which are abrasive to the engine cylinders. The intake air is turbo-charged and cooled by charge air cooler for best results.

1.5.3 Exhaust Gas System

16 The exhaust system consists of the exhaust ducting, exhaust silencer complete with spark arrestor and rain cap assembly. The exhaust gas exits the engine and passes through the exhaust ducting and exhaust out the top of the container through the rain cap assembly. Insulation and heat shields are fitted to the exhaust ducting to prevent operators contact with high temperature surface. A silencer is incorporated in the system to reduce the noise level to within the acceptable limits.

1.5.4 Fuel Supply System

17 The engine fuel system will consist of an internal fuel tank, Racor filters, fine fuel filter, fuel pump, injection pump and nozzles. Fuel will be pumped through the Racor filters to the fine fuel filters and then passed to the injectors and then to the injection nozzles. Diesel oil will be stored in fuel tanks with 1290 liters (gross) capacity. It should meet the minimum specifications on specific gravity, density, water content, heating value, and sulfur content, as required by law and acceptable to the engine requirements.

1.5.5 Engine Oil Lubrication System

18 The lubrication system with a capacity of 177 liters for KTA50G3+ engine and 182 liters for QSK50G4 engine includes lubricating oil tank, oil pump, strainer, and sump, all fitted internally within the engine block. Lubricating system aims to reduce the wear of the engine moving parts such as piston, shaft, and valves. It also cools the engine.

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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19 In the lubrication system, the oil is pumped from the lubricating oil tank through the oil cooler where the oil is cooled by the cold water entering the engine. The hot oil after cooling the moving parts will be pumped to the lubricating oil tank.

1.5.6 Cooling System

20 The engine’s cooling system uses cooling fluid where flow to the radiator is controlled by thermostat.

1.5.7 Auxillary Facilities

21 Support facilities for the power plant will include the following:

Service Water Systems: The proposed project will have a service water system for site facilities containers and on-site washing of equipment. Water supply line for equipment washing will be installed in line with the fuel pipeline using PVC pipe material. This water requirement of the proposed project will be supplied by the existing deep well located within the project site.

Instrumentation and Control System: The proposed project will be connected to a central PLC and SCADA system that will automate all equipment controls and protections for plant start/stop, load management, and operations required for meeting regulating and contingency mode protocols. The SCADA will provide trending and data recording functions, as well as user HMO for the PLC and metering, fuel consumption information. The communication platform is Modbus.

Substation: A switching and metering station (switchyard) will be installed to provide all the necessary technical requirements for interconnection of the switchyard to the grid.

Transmission Line: A single circuit 230kV transmission line of approximately 650 meters will be constructed to connect the power plant to the existing NGCP 230kV Malaya Substation.

Administration Building and Other Site Facilities: These will also be modular in design and specifically built based on purpose. Containerized facilities will be provided to function as control rooms, office/workshop stations, security/first-aid posts, and kitchen/toilet/locker/consumables storage areas, among others.

Fire Protection System: To protect the facility in the event of fire or fire risks such as excessive heat or smoke, a fire protection system will be installed, composed of the following components: CO2 fire extinguisher sytems; heat and smoke detector system; fire hydrants with hose stations; fire and general services pumps; and portable fire extingushers.

1.5.8 Pollution Control Facilities

22 Pollution control facilities for the power plant will include the following:

Exhaust: The proposed project will have 150 exhausts to allow proper dispersion of emissions. Each smoke stack can be accessed through the generator’s built-in ladder and Bi-Line system (fall arrester). Exhaust stack has a height of 5.6 meters (extendable up to 8.6 meters) from the ground with a circumference of 130 centimeters.

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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Oily Wastewater Treatment System: Oily wastewater from the fuel and lube oil centrifuging unit and from lube oil, fuel, and water system leakages will be collected into the oily wastewater tank, and will then be pumped into the Oil-Water Separator Treatment Plant. The bottom sludge will be discharged periodically by the operator for disposal by a DENR-accredited treater. In addition, oil spill kits will be maintained on-site in case of emergency oil spill.

Solid Waste Management System: Waste materials generated will be classified as hazardous and non-hazardous wastes. Separate receptacles and storage areas will be designated for each type of waste identified at the project site. Non-hazardous solid wastes will be further classified as compostable, recyclable, and residual and managed based on the local disposal regulations and consistent with the Ecological Solid Waste Management Act of 2000 (Republic Act 9003). Hazardous wastes will be handled, stored, and transported by DENR-accredited hazardous waste treaters managed in compliance with the Toxic Substances and Nuclear Wastes Control Act 1909 (Republic Act 6969).

1.6 PROJECT SCHEDULE

23 The proposed project is expected to be completed in December 2018. Thereafter, NGCP accreditation of the facility will follow, together with the approval of the ASPA by ERC.

1.7 STAKEHOLDER ENGAGEMENT

24 In order to kick off the EIA process for the proposed project, engagement of potential stakeholders was initiated through an Information and Education Campaign (“IEC”) conducted by the Proponent and the EIA Consultant last February 13, 2018 (Tuesday) in the host community of Barangay Malaya, Pililla, Rizal.

25 The participants in the IEC activity were composed of BLGU Malaya officials, staff, and council members (Sangguniang Barangay), as well as various civil society organization (“CSO”) representatives of the local fisherfolks, farmers, transport groups, senior citizens, women, academe, overseas Filipino workers (“OFWs”), health and religious sectors.

26 The highlights of the IEC and the results of the initial perception survey are presented in the documentation report submitted together with this document as part of the requirements for the request for technical and public scoping of the proposed project.

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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Table 4: Tentative Project Implementation Timeline

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Equipment Supplier

Engineering, Tech Specs and Supply Agreement

NGCP

System Impact Study

Facilities Study

Accreditation Testing and ASPA Execution

ERC Filing and PA

Environment

Updated Air Dispersion Model

Preparation of EIS or IEE

Technical Scoping

ECC - Filing and approval

Fuel Supply

TOR Development

RFQ & Bid Submission

Evaluation and Clarification

Fuel Supply Agreement (Execution Version)

Site Preparation

Power Block Soil Investigation

Fuel Tank Soil Investigation

Civil and Earthworks (Power Block & T/L)

TOR Development

RFQ & Bid Submission

Evaluation & Clarification

Contract Negotiations (Execution Version)

Construction & Completion

Transmission Line

ROW

TOR Development

RFQ & Bid Submission

Evaluation & Clarification

Contract Negotiations (Execution Version)

Construction & Completion

O&M Contractor

TOR Development

RFQ & Bid Submission

Evaluation & Clarification

O&M Agreement

Power Plant Construction

NTP to Equipment Supplier

Procurement, Shipping and Site Delivery

Installation, Testing and Commissioning

Nov Dec

2018

Feb Mar Apr May Jun Jul Aug Sep Oct

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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1.8 MANPOWER REQUIREMENT

27 The estimated manpower requirement in each phase of the proposed project’s implementation is specified in the following table. The proponent will give priority to host community members or local residents whose skills and experience match the project’s specific needs.

Table 5: Manpower Requirement per Project Phase

Project Phase Estimated Manpower

Requirement Tasks To Perform Skills Requirement

Pre-Construction ~30 Conduct complete feasibility study

Prepare detailed engineering designs and drawings

Facilitate permit requirements and tender documents

Specialized technical skills/expertise on various engineering and scientific fields.

Construction ~110 Perform civil, architectural, and electro-mechanical works

Engineers, project managers, skilled and non-skilled laborers

Operation ~94 Oversee the entire operations of the proposed project, including emergency situations; Ensuring the safety and welfare of its personnel

Maintain conformity of the proposed project to relevant government regulations, including tax payments, ECC compliance, etc.

Promote and uphold a harmonious relationship with the host community

Management and administration skills; over-all knowledge on the operation including key environmental, labor, and local ordinances

Abandonment ~110 Implement the abandonment plan As required

1.9 PROJECT COST

28 The indicative project cost is estimated at PHP 1,500,000,000.00 that will include the following:

Conduct of feasibility study, preparation of detailed engineering design, acquisition of necessary government permits and licenses;

Site development;

Leasing/construction of power plant components;

Procurement of necessary equipment and materials;

Environmental management and protection, pollution control facilities; and

Environmental monitoring activities.

1.10 PRELIMINARY IDENTIFICATION OF ENVIRONMENTAL ASPECTS

29 To address the potential environmental impacts of the proposed project, an environmental management plan will be prepared, presenting the proposed mitigation and/or enhancement measures that can be employed during the different phases of the project development.

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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Table 6: Key Environmental Aspects Identified and Preliminary Impact Assessment

Environmental Aspect Environmental

Component Likely to be Affected

Potential Impact/s Prevention/Mitigation/Enhancement Measures

LAND

CO

NST

RU

CTI

ON

PH

ASE

Cut and fill activities Land Use and Classification

Change/inconsistency in land use The proposed project site is situated within an

industrial area; No land use change issues perceived

Encroachment in an environmentally critical area (ECA)

The proposed project site does not encroach an ECA

Geology/ Geomorphology

Change in surface landform/terrain/slope

Formulation and implementation of proper grading plan

Change in sub-surface underground geomorphology

Onsite excavations are expected to cause permanent but low level of disturbance

Strict adherence to geotechnical study recommendations

Site preparation and earthworks

Pedology Soil erosion Implementation of appropriate soil erosion control

measures

Terrestrial Ecology Vegetation removal and loss of habitat The proposed project is located within an old lubeoil

refinery complex; No ecologically sensitive habitats observed

Threat to existence and/or loss of important local species

Threat to abundance, frequency and distribution of important species

Hindrance to wildlife access

WATER

Water consumption during construction

Hydrology/ Hydrogeology

Depletion water resources/ competition in water use

Implementation of water conservation measures

Mobilization of construction equipment and materials; Generation of construction wastes

Water Quality Degradation of groundwater quality Formulation and strict implementation of waste

management plan Water quality monitoring

AIR

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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Environmental Aspect Environmental

Component Likely to be Affected

Potential Impact/s Prevention/Mitigation/Enhancement Measures

Mobilization of construction equipment and materials

Air Quality and Noise Levels

Degradation of air quality Formulation and implementation of construction

impact management plan Ambient air quality and noise level monitoring

PEOPLE

Hiring of workers Local Employment Increase in local employment Prioritized hiring of qualified local residents; GAD

sensitivity

Increase in taxes and revenues

Local Economy Improvement in local infrastructure and social services

Diligent imbursement of taxes and revenues

Accidents Public Safety Possible occurrence of construction-related hazards

Provision of environmental health and safety training prior to construction

OP

ERA

TIO

NA

L P

HA

SE

LAND

Accidental oil spill Pedology Soil contamination Formulation and strict implementation of emergency

management plan Soil quality monitoring

WATER

Generation of domestic wastewater/ oily wastewater

Water Quality Degradation of groundwater quality Provision of oily wastewater treatment system Formulation and strict implementation of waste

management plan Water quality monitoring

AIR

Utilization of diesel fuel oils Air Quality Degradation of air quality Ambient air quality monitoring and emmissions testing

Use of diesel generator engines

Noise Levels Increase in ambient noise levels Proper operation and maintenance of environmentally

acceptable equipment Provision of proper personal protective equipment

(PPE) for plant personnel Ambient noise level monitoring

PEOPLE

Hiring of workers Waste Management Generation of sewage/solid waste Formulation and strict implementation of waste

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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Environmental Aspect Environmental

Component Likely to be Affected

Potential Impact/s Prevention/Mitigation/Enhancement Measures

management plan

Population Change in population size and distribution

Prioritized hiring of qualified local residents Coordination with the local public employment service

office

Social Services Overburdening of public social services Prioritized hiring of qualified local residents

Health Introduction of disease between migrant and local workers

Medical certificate as part of employment requirements

Formulation and implementation of safety and health program

Provision of health and sanitation facilities within the plant site

Monitoring of occurrence of unusual health problems that may be associated with the project

Operation of the power plant

Local Economy Increased social and economic financial activities

Positive impact; No mitigation required

Public Safety Fire hazard Provision of fire protection system

LAND

AB

AN

DO

NM

ENT

PH

ASE

Decommissioning Pedology Soil contamination Formulation and strict implementation of

Abandonment Plan with emphasis on control of sedimentation and prevention of soil contamination

Terrestrial Ecology Increase in biodiversity due to rehabilitation activities

Positive impact; No mitigation required

Disposal of wastes Groundwater Quality Possible occurrence of spills and contamination

Formulation and implementation of waste management plan

AIR

Demolition and abandonment activities

Air Quality and Noise Levels

Generation of dust and noise Watering during dismantling activities to minimize dust

generation Proper vehicle maintenance

AC ENERGY, INC. Section 1 INGRID PILILLA 150-MW DIESEL POWER PLANT PROJECT Project Description Pililla, Rizal PROJECT DESCRIPTION FOR SCOPING (“PDS”)

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Environmental Aspect Environmental

Component Likely to be Affected

Potential Impact/s Prevention/Mitigation/Enhancement Measures

Limiting noise-generating activities during daytime Ambient air quality and noise level monitoring

PEOPLE

Decommissioning activities Local Community Possible local disturbance or damage through increased road traffic, noise, etc.

Formulation and implementation of decommissioning impact management plan

Hiring of workers for demolition and abandonment activities

Local Employment Increase in local employment during abandonment; Development of new skills

Prioritized hiring of qualified local residents

Loss of jobs/employment Local Economy Reduction in service opportunities for local contractors with established contracts with the project (e.g., maintenance service providers, site transport services, etc)

Formulation and implementation of Abandonment Plan

Effective human resources management through consultative planning and communication

Demography Out-migration of affected project staff to seek job opportunities elsewhere

***NOTHING FOLLOWS***