IMPLEMENTATION OF ENVIRONMENTAL IMPACT ASSESSMENT (EIA) ON RESIDENTIAL PROJECTS INSARAWAK. Syarifah Noorlia bt Wan Bujang

Transcription

1 IMPLEMENTATION OF ENVIRONMENTAL IMPACT ASSESSMENT (EIA) ON RESIDENTIAL PROJECTS INSARAWAK Syarifah Noorlia bt Wan Bujang Master of Environmental Science (Land Use and Water Resource Management) 2006

2 ACKNOWLEDGEMENTS First and foremost, I wish to thank the management of the SLUSE-M programme for giving me the opportunity to pursue in this programme. I wish to express my deepest gratitude to my supervisor Associate Professor Dr. Lau Seng for his guidance and advise in this research. I also wish to thank the YB Dr. James Dawos Mamit, the Controller of Environmental Quality of NREB, Mr. Chong Ted Tsiung as well as the management of NREB for guiding me to complete this research. Last but not least, my highest gratitude to my colleagues in Chemsain Konsultant Sdn. Bhd, all the lecturers of SLUSE programme, developers, consultants, friends and all who had help to contribute in this research.

3 TABLE OF CONTENTS Acknowledgements Table of Contents List of Tables List of Figures Abstract Abstrak 11 IV V VI vii INTRODUCTION Background Demand for housing in Sarawak Environmental Impacts of Residential Projects Problem Statements Objective of the Study LITERATURE REVIEW Definition of Housing Development Site Selection and Project Options Identification of suitable sites and screening for housing and new township development projects Environmental Impact Assessment (EIA) Introduction Briefhistory ofeia EIA History in Malaysia Legislative requirement for EIA for residential projects in Malaysia Basic principle of EIA process Environmental Management Plan (EMP) EIA Procedure in Malaysia Department of Environment (DOE) Preliminary assessment Detailed assessment Review Natural Resources and Environmental Ordinance Project Screening Scoping Terms of Reference (TOR) Environment Data Collection Identification and prediction of impacts Evaluation of impacts Mitigation of impacts Documentation ofeia fmdings Review of EIA report Approval of EIA report Co-signing of Agreement of the Environmental Terms and Conditions Post-monitoring and Auditing Non-compliance of Terms and Conditions Public Participation Environmental Costs and Benefits Analysis Executive Summary Format of an EIA Report in Sarawak I

4 2.8 Executive Summary Format ofan EIA Report in Sarawak 44 3 METHODOLOGY 3.1 Desktop review Existing EIA regulation and guidelines EIA and EMP reports Issues and problems raised by the public Field observation Interviews Questionnaires 53 4 RESULTS 4.1 Developers' Perspective Development of Prescribed Activities Projects Developers perception ofeia NREB's client charter Authorities' Perspective Environmental Regulation (ER) Section, NREB Statistics of EIA reports EIA reports submitted and approved by NREB EIA reports received and approved for realty projects EIA reports received and approved for realty projects Enforcement and Compliance (E&C) Section, NREB Process ofcomplaints received Compounds received by NREB Public Perspective 72 5 DISCUSSION 5.1 EIA Process Developers' Perspective Authorities' Perspective Public Perspective Implementation ofeia findings Developers' Perspective Authorities' Perspective Public Perspective Weakness in the system Conflicting approval E&C Section Deficiency in EIA reports 89 6 CONCLUSION AND RECOMMENDATIONS 92 REFERENCES: 94 PLATES: 1 APPENDIX 1: 2 ill

5 LIST OF TABLES Table 1.1: Table 3.1: Table 4.1: Table 4.2: Table 4.3:. Table 4.4: Table 4.5: Page Profitability Indicators and Decision Rules Used in 42 CBA List ofeia and EMP reports. 51 Summary for duration for approval ofeia reports on 58 residential projects. Number ofcompounds received by NREB by year. 67 Experienced development in residential area and; affect 75 and change the environment ofresidential area crosstabulation Lodge a complaint on environment to the authority 76 and; satisfaction on the environment on residential area cross-tabulation. Awareness of EIA study and; consider EIA findings 78 when buying a housing property IV

6 LIST OF FIGURES Page Figure 2.1: Outline of Environmental Impact Assessment 28 Procedure in Malaysia Figure 2.2: Environmental Impact Assessment (EIA) process. 48 Figure 2.3: Flow chart for evaluation and review 49 Figure 4.1: Project commencement flowchart for developers to 57 start a development project on prescribed activities Figure 4.2: Total ofeia reports received vs. number ofeia 61 reports Approved from Figure 4.3: Total ofeia reports received vs. number ofeia 63 reports Approved for Realty Unit from Figure 4.4: Total EIA report received versus approved for housing 65 projects from Figure 4.5: Mode ofcomplaints received in NREB 67 Figure 4.6: Process ofcomplaints cases flow-chart. 69 Figure 4.7: Respondents residential area 72 Figure 4.8: Housing property ownership 73 Figure 4.9: Understanding roles and functions ofnreb (%) 74 Figure 4.10: Respondents choice of authority to lodge a complaint 77 on environment Figure 4.11 : Factors considered when making a decision to buy a 79 housing property v

7 ABSTRACT Sarawak economic is expected to remain robust and dynamic which leads to urban migration and demands for more residential developments. The level and types of impact from residential projects will vary significantly based on project-to-project basis. New township on virgin sites can be extremely intrusive and have major impacts on natural resources and the existing natural environment. EIA is essentially a planning tool for preventing environmental problems due to an action. It is required under the Sarawak NREO Certain criteria on development of residential and commercial areas are prescribed activities that require ElA implementation. However, the problems faced by the authorities and developers may affect the implementation ofela. The study aims at looking to the perception of the developers, authorities as well as the public on implementation of EIA. It involves collation of guidelines on housing developments, EIA and EMP reports, literature and other published articles on housing development. The study also conducted interviews with key personnel of the authorities and selected ElA consultants. The developers were concern on the procedural delays and red tape of an ElA approval. Approval from SPA is their major license to project implementation, although SPA only gives approval in principle. The authorities need more resources to cater the services as more development is coming. Some of the public are aware of ElA implementation. Respondents would choose price and promotion factor over environmental conditions of the area. Deficiencies in ElA reports can be reduced by giving more stress on important issues and have sound knowledge on the issues. NREB can work more efficiently giving more publicity to the public and define its roles and functions. SPA, NREB and Land and Survey Department working closely in giving approval to development can avoid future difficulties on the environment. VI

8 ABSTRAK Perkernbangan ekonorni di Sarawak dijangkakan akan berkernbang pesat dan dinarnik lantas rnenjurus kepada rnigrasi penduduk ke kawasan bandar. Ini rnenyebabkan permintaan tinggi untuk perurnahan. Tahap dan kesan yang disebabkan oleh pernbangunan kawasan perurnahan arnatlah berbeza dari satu projek ke projek yang lain. Pernbangunan kawasan bandar baru di kawasan baru boleh rnenyebabkan irnpak yang negatif kepada surnber alarn sernulajadi dan keadaan asal alarn sernulajadi di kawasan berkenaan. EIA adalah satu kaedah perancangan bagi rnengelakkan kesan alarn sekitar akibat sesuatu pernbangunan. Ia diwajibkan dibawah NREO, Sarawak Beberapa kriteria untuk pernbangunan kawasan perurnahan dan kornersil rnernerlukan EIA untuk dijalankan. Walaubagairnanapun, kekurangan yang perlu dihadapi oleh pihak pengusaha dan penguatkuasa boleh rnengganggu proses EIA. Kajian ini bertujuan rnenilai persepsi dan pandangan pihak pengusaha, penguatkuasa dan juga orang awarn rnengenai perlaksanaan EIA. Kajian ini rnelibatkan penilaian garis panduan untuk pernbangunan kawasan perurnahan, laporan EIA dan EMP serta artikel-artikel rnengenai pernbangunan kawasan perurnahan. Sesi ternuduga dengan pegawai kerajaan yang berkaitan, pengusaha dan jururunding EIA juga dijalankan. Pengusaha rnenyatakan bahawa isu penangguhan kelulusan EIA dan proses yang perlu rnelalui banyak prosedur rnengganggu kelancaran projek pernbangunan. Bagi rnereka, kelulusan dari SPA adalah 'lesen' paling utarna walaupun SPA hanya rnernberi kelulusan dari segi prinsipal sahaja. Pihak penguatkuasa rnernerlukan lebih banyak kakitangan dan kernudahan kerana pernbangunan yang pesat. Sebilangan orang awarn sedar akan kewujudan EIA. Orang awarn lebih rnernilih harga dan prornosi berbanding keadaan alarn sekitar di sekililing rurnah. Kekurangan dalarn laporan EIA boleh diatasi dengan rnernberi turnpuan kepada isu yang lebih penting dan rnernpertingkatkan ilrnu dan kernahiran dalarn isu-isu berkenaan. NREB boleh bertindak dengan lebih berkesan dengan rnernberikan lebih banyak publisiti dan rnenerangkan mengenai fungsi badan berkenaan. SPA, NREB dan Jabatan Tanah dan Ukur perlu berkerjasama dalam rnernberikan kelulusan terhadap sesuatu projek untuk mengelakkan rna salah di rnasa akan datang. Vll

9 CHAPTER 1 INTRODUCTION 1.1 Background Sarawak has a population of 2,176,800. The capital city of Kuching has some 458,300 people making it the highest populated city in Sarawak and the seventh highest populated city in Malaysia (Sarawak Online). The global economic environment in Sarawak is expected to remain robust and dynamic right up to the next decade, with both the industrial and developing countries anticipated maintaining sustainable output growth. Global trade is predicted to expand by about 8%. The availability of vast competitively priced land and rich reserves of natural resources has made Sarawak an attractive choice for manufacturing operations among investors. This leads to ongoing demand fur additional housing and an ongoing need fur additional sites fur this purpose. According to Phillips (1997), the urban areas in Sarawak, particularly the Kuching and Sibu divisions are developing rapidly, due to the rural/urban migration and intense business development. 1.2 Demand for housing in Sarawak The success of the Government's housing strategies in human settlements can be seen from the construction of over 850,000 houses between and 615,000 houses from (Rahman, 2005). The government has also introduced the Integrated People's Housing Programme to resettle squatters into new housing areas with all 1

10 basic amenities. The Programme is well on track in meeting the 0% squatters target by the end of2005. The vast acreage ofland required will inevitably result in significant impacts and environmental considerations must be incorporated in the approval process for new housing development process. 1.3 Environmental Impacts ofresidential Projects The level and types of impact from residential projects will vary significantly based on project-to-project basis. New township on virgin sites can be extremely intrusive and have major impacts on natural resources and the existing natural environment. However, many new housing projects will be proposed in existing urbanized area on land already zoned for residential use. As such, there will be little impact on natural resources and no consideration on alternative sites. Thus, the project may only have to be considered in terms of design and the more immediate construction and operating impacts. The adverse environmental impacts of housing projects can occur at regional, local and site scales (Pakistan Environmental Agency, 1997). Direct impacts are mainly physical on the site development, construction and operation of a project. Indirect impacts are experienced offsite and are more difficult to quantify, in large housing projects, indirect impacts can be very significant. These are often overlooked or ignored in impact evaluation and mitigation. 2

11 1.4 Problem statements Rational ofthe study are stated as follow; (j) EIA and Existing Policy Sarawak is the first state to enact its own law on environmental protection and natural resource management. EIA study is required under Section 11 (N, Natural Resources and Environmental Ordinance (NREO) (Chapter 84, Laws of Sarawak). It is necessary for 'Prescribed Activities' or development activities, which are having impacts to the environment. Under the First Schedule, Prescribed Activities <Article 2, 3 and 6), development ofcommercial, industrial and housing estates includes the following conditions; i. Development of commercial or housing estates of an area exceeding 10 hectares ll. Development of industrial estates with factories to accommodate medium or heavy industries lll. Conversion of mangrove swamps into industrial, commercial or housing estate exceeding 10 hectares in area iv. Reclamation of land, whether by the sea or along river banks, for housing, commercial or industrial estates Then, the EIA report is to be submitted to the Natural Resources and Environment Board Sarawak (NREB) for approval If the report is found satisfactory, NREB will give permission in writing for such development activities 3

12 to be undertaken or commenced; and the project developer is obliged to undertake in writing the orders and directives of the NREB. Therefore, serious consideration as well as thorough-planning needs to be taken for development projects especially on difficult and expensive-management-practices areas such as peatland. (ji) Shortfalls ofthe EIA system in Sarawak Relevant critical issues are usually ignored as the issues depend on the ability of the EIA team to address them where good field survey, literature review, consultation with relevant authorities as well as discussion with local people of the affected project area; are required. These information would hold strongly with the abatement and mitigating measures as an integral part of the EIA report. Guidelines on EIA study for residential areas are quite general and have rooms for improvement. In addition, EIA is only a project based without looking into cumulative impacts of the study. Good guidelines and better understanding of the purpose of EIA could make a clear view for the developers and the public on EIA implementation. The developers as well as the public could appreciate the implementation ofeia as well as experiencing sustainable development. 4

13 (ill) Rapid development ofresidential projects Agriculture and urbanization in major towns in Sarawak are encroaching into peatland areas. This situation is mainly because of the increasing shortages of good agricultural land for further development, the flat topography and its occurrence close to the population centres and existing cropped areas (Tek et ai, 2001). The project has to be designed to suit the local environment to be likely completed in time and within budget as well as avoiding difficulties along the way. It has to also conserve the natural resources it relies upon will continue to sustain by the environment in near future. A project has to yield its benefits without causing serious environmental problems. Furthermore, it will bring credit and recognition to the project proponent. 1.5 Objectives ofthe Study The overall objective of the study is to determine the perception of the concerned parties on the implementation of EIA for residential projects in Sarawak. Such perception will indeed determine the sensitivity of these parties on the need of EIA process as an environmental management tool The specific objectives are as follows: 1. Determine the perception of developers, authorities and the public on implementation ofeia for residential areas 5

14 ii. Determine effectiveness of EIA process as an environmental management tool by reviewing issues commonly raised during EIA study iii. Examine and review the overall legislation requirements as well as management practices for implementation ofeia on residential projects IV. Formulate or suggest needs to enhance the process to ensure environmental 8ustainability 6

15 CHAPTER 2 LITERATURE REVIEW 2.1 Definition ofhousing Development From a housing developers' perspective, a house is a 'product', which the housing developer is authorised to sell (subject to such constraints imposed upon the housing developer by the Housing Development (Control & Licensing) Act 1966, as recently amended 1 st December 2002, and the Regulations made there under} to any intending and willing purchase at the price stipulated in the sales brochures. However, this 'product' need not be in existence when the sale and purchase agreement is signed, but must be completed and fit for occupancy when the final purchase price is paid. Under Section 3 ofthe Housing Development (Control & Licensing) Act 1966 (effective 1 st December 2002), the term 'housing development' has been defined to mean the construction of 'more than four units of housing accommodation' for sale to the public. It also includes the sale of 'more than four units of housing lots' by a landowner, with a view of constructing houses thereon by the same landowner or by his nominee. The term 'housing lots' has been defined as 'any piece of land surveyed or otherwise, to which a lot number has been assigned to it and which is subject to the category of 'building' in accordance with the National Land Code 1965'. 7

16 2.2 Site Selection and Project Options The consideration of alternatives in project planning is one of the most notable preventative or mitigation measures for many housing projects. Site selection will determine the type and magnitude of environmental and social impacts resulting from the development ofhousing and township areas. The location of new housing and township projects may cause public reaction. It may be a positive perception for development. However, it may be a concern particularly ifthe facilities are visually obstructive and involve major environmental issues. The impacts will be utmost where the location is close either to the existing population or to unspoilt natural areas. Improper project selection or location can lead to significant socioeconomic and/or environment impacts that can result in the rejection of planning permission. EIA study must provide justification for the project, the project components, layout planning and the site selection. Environmental considerations must be considered alongside economic and engineering considerations. 2.3 Identification of suitable sites and screening for housing and new township development projects Identification of a large study area and identification of suitable area through elimination of unsuitable areas is called 'constraints mapping'. It is usually necessary for large-scale housing and new township projects not attached to a specific location. 8

17 (a) Determine site requirements Determine the size of the project including any potential expansion of the project in the future. Access routes to the area such as road and highway interchange as well as utilities for the proposed project site should also be determined. (b) Determine extent ofstudy area Determine the maximum radius of the study area based on the economic feasibility of delivery distances from construction material sources and waste disposal sites. (c) Determine regulatory constraints to project Project proponent shall verify ifthe proposed project is classified under low costs, medium"costs, high costs or special and any regulatory constraints to project based on the housing classification. Buffer zone should be established and the site should be able to accommodate buffer zones with :respect to air, water and noise pollution and solid and toxic waste problems. Control problems will be expected in many cases and landscaping can provide barriers to neighbours and improve aesthetics values. (d) Determine environment constraints 9

18 Verify ifthe area has incompatible past, current, zoned or potential uses as urban areas, areas of incompatible housing classification, areas of high amenity value (tourism potential, gazetted beaches, national parks and marine parks), area of special scientific interest, high ecological and scientific values, or aesthetic values. It should also avoid unsuited areas to receive pollution loads, air sheds and water catchments areas as well as areas ofnational mineral reserves. Unique habitat areas should be avoided. Siting the development area near or ecologically or environmentally sensitive habitats (e.g. mangroves, estuaries, wetlands, coral reefs) can cause irreversible damage to these habitats and are costly to develop. (e) Determine engineering and economic constraints The housing and new townships development should have due regard for their potential to contaminate cause man-induced geo-hazards such as slope failures and flooding. Areas that require excessive investment in infrastructure such as distance from existing roads, difficulties in access, expensive or difficult site formation is deeming constraints to a development. Minimise earthworks by taking advantage of natural contours. (D Establish suitable areas 10

19 Establish areas zoned for Prescribed Activity if any, such as slope area or water catchment's areas. Areas of cultural, natural heritage and unique or important archaeological, historical or cultural interest, site of special scientific interest should be avoided. Constraint mapping technique is used to designate areas, which have unsuitable physical and other environmental characteristics using constraints listed above. Place shaded transparencies (or use a Geographical Information System (GIS) over these low suitability areas on the study area map_ The unshaded area may be considered generally suitable. (g) Public perception Public acceptance through awareness and education programmes in the proposed development project is deemed necessary. Potential impacts and process equipment by providing noise barrier/adequate buffer is to be provided for the welfare ofthe public. 2.4 Environmental Impact Assessment (EIA) Introduction EIA is a study to identify, predict, evaluate and communicate information about the impacts on the environment of a proposed project and to detail out the mitigating measures prior to project approval and implementation. 11

20 Lawrence (2003) defined ElA as a systematic process of. I. Determining and managing (identifying, describing, measuring, predicting, interpreting, integrating, communicating, involving and controlling) the; ii. Potential (or read impacts (direct and indirect, individual and cumulative, likelihood ofoccurrence) o iii. Proposed (or existing) human actions (projects, plans, programs, legislation, activities) and their alternatives; IV. Environment (physical, chemical, biological, human health, cultural, social, economic, built and interrelations). ElA is essentially a planning tool for preventing environmental problems due to an action. It encompasses a broad definition of environment, of alternatives and of proposed actions. It seeks to avoid costly mistakes in project implementation, either because of the environmental damages that are likely to arise during project implementation, or because of modifications that may be required subsequently in order to make the action environmentally acceptable. Thus, the systematic exploration of interrelationship (e.g. among environmental components, between the proposal and the environment, among alternatives, among impacts) is obviously crucial in ElA BriefHistory ofeia EIA was first formally established in the USA in 1969 and has since spread in various forms to most other countries (Glasson et al., 1999). The US National Policy Act (NEPA), 1969 was the first legislation to require ElAs. Consequently, it has become an 12

21 important model for EIA systems, both because it was a radically new form of environment policy, and because of the success and failures of its subsequent development. EIA systems are perceived in many ways. Some are in the form of mandatory regulations, acts, or statues, which, are generally enforced by the authorities. Preparation of an adequate EIA is required before permission is given for a project to proceed. In other cases, EIA systems exist in the form of guidelines, which are not enforceable but generally, imposed obligations on the administrating agency. Other legislations allow government officials to require EIAs to be prepared at their discretion. In some cases, EIAs are prepared in an ad hoc manner, often because funding bodies requires them (e.g. World Bank, Asia Development Bank) as part of a funding approval process. Some project developers have a policy to conduct EIA as part of their management-planning tool EIA History inm.ala.ysia The Environmental Quality Act (EQA) 1974, is a federal act relating to the preventive, abatement, control of pollution and enhancement of the environment. In the late eighties four additional sets of regulations were introduced and enforced by the Department of Environment (DOE), which includes Environmental Quality (Prescribed Activities)(Environmental Impact Assessment Order) 1987, which concerns the requirement ofeia for the prescribed activity. This order was enforced on the let April 1988 in au 13 states. 13

22 In 1993, four DOE State's Office (Johor, Penang, Selangor and Sarawak) was given the full responsibility to review and decide on all Preliminary EIA reports. In 1999, the decentralization of EIA review process was fully expanded to the rest of the State's office. The State's DOE approach was to be a one-stop agency to all relevant technical departments and agencies from Federal and State to provide inputs or comments in the review of EIA reports (Sentian & Tuah, 2001). DOE is authorized to agree to environmental issues and mitigating measures addressed in the EIA report by the project proponent and its EIA consultant. Other relevant approving authorities will oversee other aspects such as planning, development, licensing and permits before the project can commence. Sarawak enforced its newly amended Natural Resources and Environment Ordinance 1949 on 1 st February 1999 to cover the areas of environmental management of natural resources. A Natural Resources and Environmental Board was established to administer the Ordinance which include the power to formulate or develop policies and guidelines to ensure exploitation, conservation and management of natural resources in the state will not cause any adverse impact on the environment (Mamit, 1997). Sarawak EIA Order was enforced on the 1 st September 1994 requiring any person to carry out any prescribed activity to submit an EIA report to the Board. Conservation ofenvironment Enactment 1996 was created in Sabah. It carries the core function similar to those of Natural Resources Ordinance, 1949 (Amended 1993) in 14

23 Sarawak. Under this Enactment, the Conservation of Environment (Prescribed Activity) Order, 1999 was made and came into force on 1 st September Legislative requirement ofeia for residential projects in Malaysia EIA when integrated into the existing planning and decision-making machinery provides additional information towards better decision-making. It has been widely accepted as a useful and beneficial tool before a decision is made in respect of any proposed development. (j) Environmental Quality Act, 1974 (EQA) and Environmental Quality (Prescribed Activities)(Environmental Impact Assessment) <Amendment) Order 1995 In Malaysia, EIA is required under section 34A, Environmental Quality Act, It was made mandatory for certain prescribed activities since 1 st April 1988 with the coming force of the Environmental Quality (Prescribed Activities)(Environmental Impact Assessment) Order, Section 34A of the EQA provides powers to the Minister to prescribe, by order, any activity which may give significant environmental impacts as a prescribed activity, for which a report on an assessment of the impact(s) such an activity will have on the environment, be submitted to the Director General of Environmental Quality of Department of Environment (DOE) for approval. The submission of an EIA report for 15

24 approval by the Director General is a requirement prior to granting of approval by the relevant project approving authority (ILBS, 1994). The Order listed 19 prescribed activities. The following activities, in relation to residential areas are required for submission and approval ofeia report: Item (7): Housing Housing development covering an area of 50 hectares or more Item (9): Infrastructure: (a) Construction of hospitals with outfall into beachfronts used for recreational purpose (b) Industrial estate development for medium and heavy industries covering an area of50 hectares or more (c) Construction ofexpressways (d) Construction ofnational highways (e) Construction ofnew townships Furthermore, all development carried out on hilly terrain with degrees slope are also 8ubjected to EIA reporting, in line with Cabinet directive as detailed in the Guidelines issued by the Ministry of Natural Resources and Environment (NIlE), Malaysia. 16