Albania
Vlore Power Station
Implementation of the Environmental Management Plan
Terms of Reference for Technical Assistance
1. Background
1.1Power Sector
The principal company responsible for production, transmission and distribution of
electricity in Albania is the Albanian Power Corporation (KESH sh.a.), which was
established in 1957 and converted to a joint-stock company with 100% state-owned
shares in 1995.
KESH is the largest and only electricity provider in Albania serving more than 820,000
consumers, with fixed assets currently valued at 23 billion ALL and a total income of
20.5 billion ALL in 2003.
KESH’s generating capacity includes three hydropower plants on the Drin River Cascade,
with a total installed capacity of 1,350 MW (Fierze – 500 MW, Komani – 600 MW, and
Vau I Dejes –250 MW) plus some smaller plants on other rivers. It has only one thermal
power plant, at Fier. This plant has an installed capacity of 159 MW consisting of five
Chinese built units (two units of 12 MW and three units of 25 MW) and a 60 MW Czech
built unit. The plant operates on heavy fuel oil produced by the Fier refinery. The units
are in a bad state of repair and available capacity is only about 20 MW.
The transmission system, belonging to a separate Transmission System Operator, whose
shares are owned by KESH, consist of 120 km of 400 kV lines, 1,100 km of 220 kV, 50
km of 150 kV, 1,200 km of 110 kV and over 1,200 km of 35 kV. The distribution
system consists of 140 km of 20 kV lines, 5,620 km of 10 kV lines, 2,860 km of 6 kV
lines, and 13,600 km of 0.4 kV lines.
Under a grant from the United States Trade and Development Agency (USTDA), the
Government of Albania retained Montgomery Watson Harza (MWH) to select the best
site, conduct a technical and financial feasibility study and conduct an Environmental
Impact Assessment (EIA) of the proposed generating facility. MWH selected a six
hectare Greenfield site adjacent to the offshore oil tanker terminal located on the
Adriatic cost north of the Port of Vlore (Vlore site) as the location of a distillate oil-fired,
base load, combined cycle generation plant. The recommendation was accepted by the
Ministry of Energy and KESH on June 21, 2002. Subsequently, MWH conducted an EIA
and an Environmental Management Plan (EMP) for the proposed facility and submitted a
final report in October 6, 2003 (Reference 1). The plant will be constructed with
financing from the International Development Association (IDA), the EBRD and the EIB.
1.2Environmental issues
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In concert with the changing political and economic situation in Albania, KESH has been
looking to resources outside Albania in developing new capacity. New programs are
conducted with consideration of European Union and other international guidelines for
environmental programs.
Among the issues that KESH faces in Albania with respect to environmental programs
are Albania lacks implementing actionable regulations for its laws concerning
environmental protection and worker health and safety, KESH has in the past lacked
internal capability to track environmental performance and comply with requirements of
donor institutions for environmental impact assessments for its new programs, KESH’s
current thermal power plant (Fier) is in disrepair and has been observed to emit
pollutants that impact air, water, soil and lacks understanding of its environmental
performance and KESH is planning to build a new thermal power plant in Vlore that is
intended to comply with all EU standards for environmental tracking.
Therefore, KESH has embarked on a program of developing internal capacity for
handling its environmental health & safety (EHS) responsibilities. KESH has a clear goal
of establishing a program for today’s capacity while planning for growth to eventually
match the expectations of the EU.
In the past year, KESH has developed a central Environmental Management Unit (EMU)
with responsibility for environmental, health and safety (EHS) programs across all its
facilities. Working with KESH management, the facility personnel, and the relevant
Albanian ministries, the EMU has begun developing the central programs required for
responsible management of EHS at KESH. All programs are being developed to be in
accordance with European Union (EU) recommendations and ISO 14001 guidelines.
During eight months of, 2003 KESH-EMU has been structured and trained by an
internationally selected consulting company financed by World Bank under PSRRP
(Power Sector Reconstruction and Rehabilitation Project).
KESH purchased a mobile air monitoring station which has been put into use at Vlore PP
construction site. The station contains sampling ports for nitrogen xides (NOx), sulfur
dioxide (SO2), carbon dioxide (CO2) and carbon monoxide (CO). A meteorological station
is also included, which measures air temperature, relative humidity, atmospheric
pressure and wind speed and direction.
As part of the EIA, an environmental management plan (EMP) was developed consisting
of recommendations on mitigation, monitoring, and institutional measures to be taken
during implementation and operation of the plant to eliminate, offset or reduce adverse
environmental and social impacts. The EMP noted that the EIA was based on limited
site-specific data and recommended specific follow-up studies to be conducted during
construction and operation of the plant. The EMP also listed several good engineering
practices and best management practices during the construction and operational
phases to mitigate environmental impacts. These mitigation measures are expected to
be implemented by the EPC and other contractor(s) and EMU will monitor the
implementation.
The World Bank prepared a project appraisal document dated October 14, 2003
(Reference 2) for a proposed credit to Albania for construction of the proposed plant
under the Power Sector Generation and Restructuring Project (PSGRP). It was agreed
under the project that KESH will prepare follow-on studies and ensure the
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implementation of the environmental mitigation measures listed in the EMP. The IDA
credit for the project will finance the subject technical assistance.
2. Objectives
The objectives of the technical assistance are to:
2.1 Update the ambient air quality impact assessment in the EIA using site-specific
ambient air quality and meteorological monitoring data being collected by KESH
since February 2004;
2.2 Train the core unit of EMU to enable them to monitor implementation of
environmental mitigation measures listed in the EMP by the EPC and other
contractor(s) during construction and operational phases;
2.3 Review the Oil Spill Prevention and Response Plan for the plant prepared by the
EPC contractor;
2.4 Prepare a Supplementary Environmental Assessment for all studies included in
scope of the project done by the EPC Contractor.
3. Specific Tasks
The consultant in collaboration with KESH will complete the following specific tasks:
Objective 1: Updating Ambient Air Quality Impact Analysis
3.1 Perform critical review and evaluation of the site-specific ambient air quality
monitoring data being collected at the Vlore site since February 2004 and process
the data to meet the acceptable data quality and format for use in ambient air
quality impact analysis.
3.2 Perform critical review and evaluation of the site-specific meteorological monitoring
data being collected at the Vlore site since February 2004 and process the data to
meet the acceptable data quality and format for use as background concentration
in ambient air quality impact analysis.
3.3 Conduct simulations with the ISCST3-PRIME or an equivalent model internationally
accepted and valid for air quality estimation in a coastal environment similar to the
Vlore site to update the ambient air quality impact analysis in the original EIA.
Note: ISCST3-PRIME model was used in the original EIA (Reference 1) by MWH As
a minimum, the model should provide air quality estimates for NO x and SO2 from
the operation of the Vlores power facility for the same averaging periods as defined
by: (a) Albanian air quality standards, (b) World Bank air quality recommendations,
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and/or (c) EU air quality standards. 1 The model should superimpose background air
quality measurements with the incremental contribution from the power station
operation to provide an estimate of overall air quality impacts. The results are to be
compared to the aforementioned air quality standards. Again as a minimum, air
quality should be estimated at the points of ground level maximum values and at
the closest sensitive receptors (e.g. population centers, schools, hospitals,
ecologically protected areas etc.). The modeling effort is to be repeated with an
additional power station of the same design also operating at the Vlore site, in
essence doubling the capacity at Vlore.
3.4 Prepare a report (as a supplemental EIA) for the ambient air quality analysis
Objective 2: Training EMU Core Team on Monitoring of Environmental
Impact Mitigation Measures
During the construction and operational phases, site activities are expected to impact
the environmental media. Adequate measures will be taken by the contractors to
mitigate the environmental impacts. These measures include:
Measures to minimize fugitive dust and gas emissions to atmosphere
Measures to minimize the quantity and pollutant load of discharge water
streams (construction, operation, storm events)
Measures to minimize impact of oil/chemical spills on soil and discharge
streams
The EMU Core Team plans to develop procedures to monitor implementation of
environmental impact mitigation measures by contractors during construction and
operation of the plant. For this, the EMU Core Team needs to be trained on the best
practices for the mitigation measures.
3.5 Develop training documents for each segment of environmental mitigation
measures mentioned above, to be implemented by contractors in construction and
operational phases. . The training should be adequate to allow the EMU Core
Team to review and comment on the environmental impact mitigation plans
submitted by the contractors.
3.6 Develop checklists to monitor the implementation of the environmental impact
mitigation measures by the contractors.
3.7 Conduct workshops to train EMU core team to develop capacity for the monitoring
3.8 Propose Vlore CCPP Facility Environmental Monitoring Resource Plan. Based on all
environmental monitoring required during the operation of the plant after handover
from the contractor to KESH, the Plan will describe resources (personnel and
equipment) necessary to conduct the monitoring, approximate cost of equipment
to be acquired for monitoring, training required for facility environmental personnel
and EMU to conduct the required monitoring, the proposed organizational structure
of the facility environmental personnel, and a responsibility matrix for conducting
monitoring.
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Thus for example, if air quality standards are for daily maximum, and annual averages. The modeling
results should be offered for the same time periods so that a direct comparison with standards can be made.
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Objective 3: Review Oil Spill Prevention and Response Plan Prepared
by EPC Contractor
3.9 Identify all operations at the plant with potential for oil spills during construction
and operation phases
3.10 Based on the plant-specific information, critically review the comprehensive Oil
Spill Prevention and Response Plan prepared by the EPC contractor. Ensure that
the Plan includes:
3.10.1 Potential oil spill scenarios based on planned plant design and
operation
3.10.2 Typical prevention measures to eliminate or reduce spills
3.10.3 Typical countermeasures to reduce, eliminate or off-set impacts from
spills
3.10.4 Key elements of an emergency response plan considering site-specific
constraints
3.10.5 Spill prevention and emergency response equipment necessary for
implementation of the plan and an estimate of their costs
3.11 Prepare a report on staff requirements for EMU in both numbers, skills, and
details of any necessary training to implement the Oil Spill Prevention and
Response Plan, as well as cost estimates for this institutional strengthening.
Objective 4: Prepare a Supplementary Environmental Assessment for
all studies included in scope of the project done by the EPC Contractor.
3.12 In this Supplementary Environmental Asessment will be reviewed and
assessed the EMP for OH Transmission Lines, study for location and
construction period for intake and outfall structure, plan for final grading and
and landscaping of the site, sediment control plan, waste management plan,
noise and vibration plan.
4. Reporting and Review:
At a minimum, the consultant will submit the reports and documents listed in the table
below. However, other working papers may be required during the studies. The
Consultant may wish to propose alternatives, but the reasons must be offered in writing
as to the advantages of each proposed alternative. The Consultant will clearly
distinguish between three objectives of the project and allow for adequate review of the
reports.
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Report/Documents Schedule for Submittal
1: Inception report consisting of confirmation or 4 weeks after project inception
modification of the project plan based on
preliminary review
2: Technical report on evaluation of and 12 weeks after project inception
recommendation(s) on ambient air quality
monitoring and meteorological monitoring data
being collected by KESH
3: Technical report on evaluation of site-specific and 6 weeks after receipt of all data
project-specific data received from EPC from EPC contractor/KESH
contractor/KESH for developing ambient air quality
analysis and
4: Draft updated ambient air quality impact analysis 12 weeks after receipt of all site-
specific data from EPC
contractor/KESH (1)
5. Training documents and checklists for EMU 24-40 weeks after inception of
review and approval on the monitoring of the project
environmental mitigation measures and
environmental monitoring resource plan
6. Report on review of Oil Spill Prevention and 4 weeks after receipt of site-
Response plan prepared by EPC contractor specific data and plan from EPC
contractor/KESH
7. Supplementary Environmental Assessment to all 4 weeks after receipt of specific
other studies and plans made by EPC contractor. studies by EPC contractor/KESH
8. Short progress reports Monthly
9. Final reports 4 weeks from receipt of all
comments on draft reports from
KESH and the World Bank
(1)
The schedule for this task will depend on successful collection of at least one
year of ambient air quality and meteorological monitoring data by KESH.
Reports will be submitted to the Director of Foreign Projects who will appoint a
Technical Committee for review and evaluation. All reports and analyses shall be
prepared in both electronically and in hard copy. Any software used in the project will
be supplied to KESH with user’s instructions and training of the software(s) will be
provided to EMU at the completion of the study.
All of reports shall be submitted in English language
5. Training Workshops
The Consultant will arrange for training workshops to the core management unit of the
newly created EMU on each project objective. At a minimum, the workshops will include
following topics:
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Procedure for ambient air quality impact analysis and interpretation of results
Training of EMU core team on monitoring and inspection of environmental
mitigation measures taken by contractors during construction and operational
phases
Procedure for implementing the oil spill prevention and response plan
Additional workshops may be required to ensure the knowledge transfer to the EMU
core team.
6. Staffing and Timing
The estimated number of professional staff month required for the assignment is 12
man-months.
The total assignment estimated to be completed within 16 months of the contract
signing.
Award of the contract estimated to be before September 2005.
7. Location of Work
The study should be carried out at the Vlore site and in Tirana.
8. References
1. Final Environmental Impact Assessment – Vlore Combined Cycle Plant, prepared
by MWH Consulting dated October 6, 2003 and Final EIA Addendum of March
2004.
2. Project Appraisal Report on a Proposed Credit in the Amount of $25 Million to
Albania for the Power Sector Generation and Restructuring Project, Dated
October 14, 2003.
3. EPC Contract Bid Documents Annex 5 Environmental Management Plan dated
February 2005
