Energía Eólica de Honduras S.A

Project Description

MIGA has been asked to provide political risk insurance to Globeleq Mesoamérica Energy, S.A. for the Cerro de Hula (CDH) Wind Farm project in Honduras. CDH project is the first wind farm in Honduras and is located at Cerro de Hula, within the municipalities of Santa Ana and San Buenaventura in the Province of Francisco Morazán, about 24 km south of Tegucigalpa, the capital city. 

This project comprises of two phases:  the first phase, CDH1, became commercially operational in December 2011 and comprises of 51 Gamesa G87 wind turbines, each with a capacity of 2.0 MW for a total capacity of 102 MW.  It also includes the internal medium voltage cables/conduits installed to interconnect the wind turbines within the wind farm and the construction of a 230 kV transmission substation built close to the project site.  This substation connected the project to the Honduras National Interconnected System (NIS).  The state utility, Empresa Nacional de Energía Eléctrica (ENEE), owns the high voltage portion of the substation.  Connection to the national grid is at the substation.  Improvements to existing roads were carried out as part of CDH1, and approximately 14 km of new roads to access project sites were constructed (access on project roads is controlled to land owners and project personnel).  A newly constructed Visitor’s Center includes an area for public events and 3 small apartments to house up to six visiting workers.

The second phase, (“The Expansion”) is yet to be built and comprises of 12 wind turbines:  5 Gamesa G87S wind turbines and 7 Gamesa G97 turbines, each with a capacity of 2.0 MW for a total power of 24 MW.  The Expansion is part of the same Power Purchase Agreement granted to EEHSA in 2008 for 100 MW and amended in 2012 for 124 MW.  Seven (7) wind turbines for the Expansion will be located in Santa Ana Municipality:– five (5) at Cofradia, one (1) at Suyatillo, and one (1) at Los Patios; and five (5) wind turbines will be located in San Buenaventura Municipality (El Tablón, San Isidro de Izopo).  The Expansion will also include internal cabling to connect the wind turbines and will require minor additions to the existing substation (e.g., installation of interconnection circuits and switchgear, and transformer). The Expansion will require approximately 2.6 km of road access to new turbine sites and some improvements to existing roads.

The combined installed capacity for the CDH project is 126 MW, and is expected to deliver approximately 426.1 Gigawatt hours (GWh) of electricity per year from a renewable energy source.  The project is being developed by Energía Eólica de Honduras S. A. (EEHSA), a wholly owned subsidiary of GME.  The project will be carried out through an engineering, procurement and construction contract with the consortium formed by Gamesa Wind US LLC (Gamesa), which supplies and installs the wind turbine generators, and Iberdrola Ingeniería y Construcción México S.A. de C.V (Iberdrola), which built the “balance of plant” including high voltage substation, access roads, turbine foundations, medium voltage collection systems, fiber optic network, and control building.  A Maintenance and Service Agreement was also signed with the consortium for the first two years of operation.  A similar approach will be followed for the Expansion.

The selection of the project site was based on availability of wind resources, access to the site, minimal land use conversion, and relatively close vicinity of the national electricity grid.  The project area includes land owned by over 300 individual landowners, and a number of residences are within the vicinity of the project.  The project is spread over 9,849.9 ha and only a small percentage of land has been used for the project (about 47.2 ha).  The project area is approximately 14 km long comprising of hilly terrain, from Cerro de Hula to Montaña de Izopo.  Wind turbines are (or will be) installed in twelve different groups along the hilly terrain and are on 78 m high tubular towers with a rotor diameter of 87 m for the G87/87s wind turbines and 97 m rotor diameter for the G97 turbine.  The number of wind turbines in each group ranges (or will range) from 3 to 9 turbines.  Two of the four areas where wind turbines for the Expansion are proposed already have wind turbines from CDH1.

The construction period for the Expansion is expected to last 12-13 months with the main civil works being carried out primarily in the dry season (February to July). The life of the CDH project is more than twenty-five years and thus full decommissioning plans are yet to be developed.

Environmental and Social Categorization

The CDH project has been categorized as a Category B project under MIGA's Policy on Social and Environmental Sustainability.  Potential environmental and social impacts and risks associated with the construction phase include land acquisition, habitat disturbance, soil erosion, dust generation, increased heavy traffic, noise, loss of vegetation, occupational health and safety hazards for the workforce, and community health and safety due to increased traffic.  Once in operation, the main potential impacts and risk associated with wind farms include bird and bat impacts, loss of vegetation, accidental discharges of hazardous materials, community health and safety hazards, and noise impacts caused by the wind turbines.  It is possible to readily design and implement engineering and management measures to mitigate adverse impacts during construction and operations.

While all Performance Standards are applicable to this investment, based on our current information, the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

• PS1:  Social and Environmental Assessment and Management SystemsPS2:  Labor and Working Conditions
• PS3:  Pollution Prevention and Abatement
• PS4:  Community Health, Safety & Security
• PS5:  Land Acquisition & Involuntary Resettlement
• PS6:  Biodiversity Conservation & Sustainable Natural Resource Management
• PS 8:  Cultural Heritage.

Based on our current information, Performance Standard 7 is not applicable as there are no indigenous peoples as defined under this Performance Standard in the project area. Further information for this Performance Standard is provided in Section E.

The World Bank Group (WBG) Environmental, Health, and Safety (EHS) guidelines applicable to this project include the General Guidelines, and sector-specific EHS guidelines for Wind Energy, Electric Power Transmission and Distribution, and Construction Materials Extraction.

Lenders supporting the project have applied the Performance Standards, as per their respective internal policies and commitment.  As part of this commitment, a lenders’ technical advisor was retained to assist the lenders with due diligence and ongoing monitoring; the mandate for this advisor includes assessing and monitoring environmental and social matters.

As part of its due diligence, MIGA’s environmental specialist visited the project site in August 2013 and carried out interviews with GME and EEHSA key EHS staff, various community members and the environmental regulatory authority. 

In addition, MIGA’s due diligence of this project comprised of reviewing project-related environmental and social information for both CDH1 and the Expansion area (including documentation for the original turbine layout), and recent CDH1 quarterly operational reports.  Key environmental and social documents reviewed by MIGA included:

CDH1:

• Environmental and Social Management Plan (ESMP), EEHSA, dated 2012
• Environmental and Social Management Annual Report for 2012, EEHSA
• Labour policies prepared by EEHSA
• Lenders’ Technical Advisor reports issued for due diligence and monitoring of CDH1 (2010, 2011, 2012)
• Independent Review of 2011-2012 Bird and Bat Monitoring during Operations
• Proyecto Eólico Cerro de Hula Noise Emission Evaluation (translation), Ingeniería Acústica Spectrum S.A. de C.V., November – December 2011
• Cerro de Hula Wind Farm Project – Environmental Sound Survey and Preliminary Assessment, HGC Engineering, September 2009
• CDH Environmental Impact Assessment Bundling Report – Final (16 December 2009) includes original public Consultation and Disclosure Plan and Grievance Mechanism, performance requirements, reforestation plan and House Relocation Plan
• Cerro de Hula Wind Farm Project – Internal Flicker Report, Mesoamerica Energy, October 2009
• Evaluación Forestal para la Implementación de Medidas de Mitigación en el Area de Construcción de un Parque Eólico (forestry study), Escuela Nacional de Ciencias Forestales, September 2009
• Original Qualitative Environmental Study (“DAC”) (Environmental Diagnosis) (2005) and Amended DAC (2008)
• Informe de reconocimiento de Superficie (Archaeological Survey), Instituto Hondureno de Antropología e Historia, September 2009

The Expansion: 

• Final Report:  Pre-construction Study of Bats and Birds at Cerro Izopo, Honduras, Zamorano, September 2013
• Field Survey:  Montaña de Isopo Wind project, Province of Francisco Morazan, prepared for Heritage Deputy Management, Instituto Hondureño de Antropologia e Historia (IHAH), July 2013 and corresponding IHAH clearance report.
• Surface Survey: Nueva Arcadia and La Cofradía Wind Project, Prepared for The Sub Management of Heritage, Instituto Hondureño de Antropologia e Historia (IHAH), October 2012 and corresponding IHAH clearance report.
• Technical Report for the Expansion of the Honduras 2000 Wind Project (Relocation of Six Aerogenerators) (translation), Msc. Mirna Carolina Antúnez Mejía July 2013 (focuses on the relocation from Nueva Arcadia to Los Patios and Montaña de Izopo), including the Forest Study for Los Patios and the Executive Summary of the 2011-2012 Noise Assessment
• Proyecto Eólico Cerro de Hula Noise Emission Evaluation (translation), Ingeniería Acústica Spectrum S.A. de C.V., July 2013.
• Expansion of the Honduras 2000 Wind Power Project Forest Assessment Study Cerro de Hula Wind Park (translation), Yamil Meza-Olivera, July, 2013 (focuses on El Tablon area)
• Lenders’ Technical Advisor report issued for due diligence for the original turbine layout of CHN2 (2013)
• Environmental and Social Management Plan (ESMP):  Expansion of the Cerro de Hula Wind Plant, EEHSA, December 2012 
• Specific Environmental Assessment with respect to the Relocation of 6 of 12 Wind Generators to be Installed for Increasing the Capacity of the Honduras 2000 Wind Power Generating Plant (Cerro de Hula) II CDH (translation), Jose Luis Segovia, October 2012 (focuses on the relocation from Mesa Grande to Cofradia)
• Environmental Technical Report (translation), based on increase to installed capacity of Parque Eolico Eoloelectrico, Cerro de Hula II, Jose Luis Segovia, July 2012 (based on the original turbine layout for the expansion)
• Forest Assessment for the Implementation of Mitigation Measures in the Area of Construction of a Wind Farm–Technical report, Escuela Nacional de Ciencias Forestales (ESNACIFOR), September 2009

In addition to the environmental assessment documentation for the original and current layout of the Expansion, MIGA’s review of this project also comprised of email exchanges with GME, EEHSA, and lenders on various environmental and social management topics including project setting, set back distance and the Expansion wind tower locations, as well as general and EHS related project information.

PS1: Social and Environmental Assessment and Management Systems

Social and Environmental Assessment:  When permitting for this project began, Honduran legislation required that a qualitative environmental assessment be carried out for wind power projects.  In addition, EEHSA prepared supplemental studies for CDH to further assess and manage impacts related to noise, avian and bat population, shadow flicker, forestry and reforestation, and radiofrequency.  An environmental and social management plan (ESMP) was then prepared for CDH1.  The initial and supplemental studies adequately address the impacts likely from this type of project.  EEHSA updated relevant documentation to incorporate the expansion and for those turbine locations not already included as part of CDH1, carried out studies related to noise, avian, bat, forestry, and archaeological impacts.  The documents provide an overview of potential impacts and risks and were considered sufficient for environmental license requirements.

GME’s Code of Conduct and Ethics is applicable to EEHSA and the CDH project, including contractors.  This Code has been approved by GME’s Board of Directors and together with the written employment agreements cover such topics as business ethics (including conflict of interest and non disclosure of confidential information), accident prevention, environmental protection, and equal opportunity employment.  The contractors (Gamesa and Iberdrola) have comprehensive environmental, health and safety (EHS) policies applicable to the project, and are overseen by EEHSA.

Management Program and Monitoring:  EEHSA health and safety management implements GME systems and procedures combined with procedures and requirements specifically developed by EEHSA for the project. EEHSA’s EHS management program is comprised of its environmental and social management plan, and supporting plans and procedures.  Ongoing monitoring is carried out to ensure compliance with the project’s EHS commitments.  EEHSA’s management program continues to improve and be strengthened in the areas of mitigation and monitoring.  Certification of its ESMS to ISO 14001 (environmental management), OHSA 18001 (occupational health and safety management), and ISO 50001 (energy management) will be sought.  The same integrated management system will be applied to the Expansion.

During construction of CDH1 (the first phase), six different sites within the project area were under construction simultaneously, and thus EHS oversight was challenging given the distance to travel to the various locations.  In addition, a high number of subcontractors were engaged whose workers were not familiar with the EHS requirements.  In order to address this, EEHSA has since requested that subcontractors have a dedicated EHS coordinator supervising their work, and EEHSA increased their oversight role.  The construction for the Expansion is of a much smaller scale and construction sites will be fewer in number.  Weekly EHS meetings will continue and the contractor will be required to audit subcontractors.

Ongoing reporting is required by SERNA, including semi-annual reports during construction and annual reports during operations, and ongoing reporting and monitoring is required by the Lenders and will also be required by MIGA. 

GME plans to carry out internal compliance audits of this project, once during construction of the Expansion and annually during operations to verify EHS performance.  GME strives to continually improve its wind farm operations and thus will incorporate best practices in EHS into its standard operating procedures to be used for future projects and to consider potential regional cumulative impacts.  Lessons learned from one project will be disseminated to other projects to ensure continuous improvement.

Organizational Capacity and Training: EEHSA provides overall EHS supervision and oversight for the project and has appointed an Environmental Coordinator to manage project consultants, liaise with contractors, and oversee reporting and permitting requirements.  The Coordinator reports directly to EEHSA’s Plant Manager.  The Environmental Coordinator is supported by field staff as well as GME’s head office staff.  This unit has been staffed and will continue to develop as the project progresses.  Health and safety issues are handled by the EEHSA Health and Safety Coordinator, who reports to the Plant Manager. As described under PS 2, EHS training is provided to all workers before staring their jobs.

GME is a member of a group of companies that own, operate and develop wind energy in Central America, with wind farms operating in Honduras, Nicaragua, and Costa Rica.  Gamesa, one of contractors, is a first tier wind turbine manufacturer and provider of wind technology and services.  It has more than 20 gigawatts installed in four continents of which about 16.3 GW is under maintenance contracts.  Iberdrola, the other key contractor carrying out the civil works, is a Spanish-based international company focusing on electricity transmission and distribution, and renewable energy and generation.

PS2:  Labor and Working Conditions

Human Resources Policy and Management:  Honduras has ratified the eight fundamental International Labour Organization (ILO) Conventions addressing forced labour, freedom of association and protection of the right to organize, collective bargaining, equal remuneration, non discrimination, and minimum age.  EEHSA has established a written internal labour policy which addresses the main ILO conventions and PS2 requirements.  The policy and written employment agreements include a code of employment for workers which explains the workers’ rights and the company’s obligations, and it addresses terms of employment, working hours and overtime, training, leave, grievance redress, employee welfare, disciplinary action, health and safety, and wages and benefits.  EEHSA’s Office Manager is responsible for human resources and labor policies.  EEHSA has established procedures to monitor contractor labor practices and a similar approach will be followed for the Expansion.  EEHSA reporting on labor and working conditions (including for contractors) will be required as part of the project reporting to MIGA.

Occupational Health and Safety:  The project’s EHS management system includes roles and responsibilities, and health and safety site procedures.  EEHSA’s health and safety policy has been approved by the Ministry of Labor (Secretaria de Trabajo).  All workers are provided EHS training as part of their induction, and refresher courses are offered.  Personal protective equipment is provided to all workers, and the project site is adequately signed.  Job hazard analysis and specialized training is given to those undertaking higher risk tasks such as working at heights and working near live power lines.  An emergency preparedness and response plan has been developed for the project and arrangements have been made for medical services.  Incident investigations and internal compliance audits are carried out.  There is no worker accommodation onsite.

The construction contractor is also obligated to develop procedures for worker protection, EHS training, site safety meetings, incident investigation, compliance and management audits, emergency response planning, etc., which will be monitored and supervised by EEHSA.

PS3:  Pollution Prevention and Abatement

Environmental impacts for CDH1 and the Expansion are similar and are being / will be controlled by following similar mitigation measures, as outlined in environmental and social management plans (ESMP).• Soil erosion:  Road construction / expansion, and foundations for the wind turbines will have proper drainage and erosion control.  Excavated material is reused for landscaping and internal road construction, and is temporarily stored onsite away from watercourses with topsoil separated.  Onsite borrow material is used for project roads.  Any land disturbed and excavated during construction is re-contoured, replanted, and returned to its original state as quickly as possible. 

• Air quality: Standard practices at construction sites will be followed, including dust abatement measures, and inspecting contractor’s equipment and vehicles.
• Water quality and availability:  Construction related surface water contamination due to runoff will be mitigated by adequate control, treatment and disposal measures.  Water required during the preparation and pouring of concrete foundations for the Expansion will be transported to site.  Water requirements during operations are minimal and will be supplied by the municipal system.
• Wastewater:  Portable toilets will be used during construction. Sewage currently treated through a biodigestor system will be treated in a small sewage treatment plant being built as part of the Expansion.
• Hazardous goods and domestic waste:  Hazardous goods (diesel and oil) are stored in a covered and controlled storage area with secondary containment and impermeable floors.  Equipment maintenance is carried out in a designated site away from water courses.  Domestic waste is recycled as appropriate and hauled offsite to a licensed landfill or recycling facility.
• Visual impact:  Wind towers and complementary equipment are painted in light colours to minimize visual impact; however markings to ensure aviation safety are included where required.
• Noise:  Impacts will be minimized through the use of well-maintained equipment and restricting vehicle speed at receptors.  Potential noise impacts caused by the wind turbines during operations are addressed under PS 4 as part of community health and safety.
• Substation:  Environmental impacts related to the substation have been minimal.  Transformer oil is pure mineral oil without additives.  The electricity collection system from the turbines to the substation is buried to avoid impacts to landscape and fauna. 
• Greenhouse gases:  The CDH1 project has estimated CO2 reductions of approximately 1,777,124 tCO2e over the seven year crediting period sought under the Clean Development Mechanism.

The CDH project has committed to carry out its activities in accordance with the environmental impact assessment studies, the environmental and social management plans, the conditions set out in the various environmental approvals, and in compliance with MIGA’s Performance Standards on Social and Environmental Sustainability and applicable EHS Guidelines. 

PS4:  Community Health, Safety & Security

Wind turbines are grouped in several small clusters and are located near receptors.  During construction of CDH1, access was temporarily restricted for active working sites.  EEHSA worked with contractors to implement and monitor traffic safety measures.  Community members were informed of project activities as the construction timeline progressed.  Grievances regarding the project were recorded and follow up actions were tracked.  A similar approach will be followed for the Expansion, and lessons learned from the CDH1 construction phase were incorporated into the ESMP for the Expansion.

The components for the Expansion wind turbines (e.g., nacelle, transformer, towers) will be transported along the same route used for CDH1.  Some turns may require widening to accommodate the longer G97 blades.  Coordination with local authorities and communities will be carried out to ensure adequate notice is given and convoy safety requirements are met.

Risks related to tropical cyclones, seismic events, and soil conditions were reviewed and considerations were incorporated in the project’s design according to industry standards.  The fire protection system, including lightening attractors, is an integral part of the project design. The wind turbines operate continuously at wind speeds between approximately 3 m/s and max 25 m/s.  At speeds greater than 25 m/s, the turbines automatically shut off for safety reasons.  As part of EEHSA’s emergency preparedness and response plan, the company is working with local authorities to cooperate during unlikely larger-scale emergency situations.  Similar approaches will be followed for the Expansion.

Given the settlement density and location in the project area, EEHSA has maintained a minimum setback area of 100 m from the wind turbines.  Agricultural activities can continue within this area; however structures cannot be built.  The lenders’ technical advisor review of the setback distance found that adequate precautions were considered with regards to community health and safety matters.  The review concluded that there was low risk related to blade throw, and that other community health and safety impacts such as noise and shadow flicker were being managed through a program of operational monitoring.

Based on the findings of noise modeling carried out during the assessment phase, EEHSA implemented a noise mitigation plan and grievance mechanism.  The plan includes commitments to carry out ongoing noise monitoring in the receptor areas during operations and to restrict the operation of turbines at certain wind speeds when exceedances in noise emissions are realized.  Community members in the vicinity of the project can submit written requests to EEHSA for noise monitoring to be carried out.  As a result of EEHSA’s noise mitigation plan and grievance mechanism for CDH1, structural improvements to nearby houses have been completed.  The latest noise monitoring data show that during elevated background noise events (such as high wind), the noise level produced by the turbines does not exceed more than 3dBA of the background noise, thus meeting requirements.  EEHSA has worked to address equipment performance issues which were producing higher noise levels than anticipated during the early stages of operations.  EEHSA’s preventive maintenance program has been modified to minimize occurrence of similar issues going forward.  A similar approach to mitigating noise will be implemented for the Expansion.  EEHSA is committed to continue working with communities to address noise-related concerns.

An assessment for shadow flicker was undertaken for CDH1 and the potential impact was assessed.  Receptors which may be adversely impacted have been identified and EEHSA has implemented a complaints resolution procedure to address this impact.  A similar approach is being followed for the Expansion.

Security Arrangements: Access to the operations and maintenance area and the local substation are well controlled and the perimeter fencing appropriate. Wind turbines are locked and access to the inside of the towers is restricted.  Although the turbines are not fenced, access to this land is restricted to EEHSA employees and respective land owners.  Security is enforced through cameras and guards (armed).  The private security company is registered by the police and training is part of the licensing for the administration of special weapons.  EEHSA has developed a code of conduct consistent with national and PS 4 requirements for the project.

During the construction phase of the Expansion project, the EPC Contractor will be responsible for the Expansion site’s physical security.  Afterward EEHSA will have this responsibility for the complete project.  Private security will escort major deliveries from port to site, and will patrol project areas on an ongoing basis.

PS5:  Land Acquisition & Involuntary Resettlement

For CDH1, EEHSA purchased 20 properties, signed 280 lease agreements, and in 2010-2011, EEHSA relocated 12 houses (approximately 70 people).  Forty-eight (48) lease agreements were signed and seven properties were purchased to accommodate the current layout for the Expansion, and 7 houses (31 people) will be relocated.  All these properties, including land and structures, acquired by the project are individually owned.  Where possible, physical resettlement occurs within the existing landowner’s property boundary and all physical resettlement is voluntary.  Short-term economic displacement is also addressed to compensate land users for temporary loss of access to active construction areas.  Resettlement and displacement grievances are managed through the community grievance log, and currently there are no outstanding grievances.

The company indicated1 that all right-of-uses and lease agreements  were negotiated on willing lessee (user) and willing lessor (owner) basis with each land owner, and compensation was mutually agreed to and included as part of the agreements.  Further resettlement due to noise or shadow flicker is possible if the magnitude of the impact is above guideline values / deemed unacceptable, and future resettlement will be conducted in compliance with PS 5 requirements.  The grievance mechanism commits EEHSA to cover all costs related to resolving grievances during operations.

During the initial stages of this project, many land occupiers did not have legal title to the land.  CDH sought to identify all land rights with respect to the lease agreements required for the first phase of the project.  In coordination with the Municipalities, detailed surveys were carried out where project components would be installed.  EEHSA sought to facilitate the legal transfer of rights to the relevant land occupier in accordance with Honduran land law.

Land use agreements are for a 25 years with a possible renewal if both parties mutually agree.  Aside from the land removed from service because of the installation of wind turbine infrastructure (pads, transmission lines, access roads, and electrical substations), landowners are able to continue traditional land uses, including agriculture and livestock grazing.

EEHSA has signed “Good Neighbour Agreements” with all affected landowners.  This agreement explains the project (including potential impacts) and its grievance mechanism, and provides company contact details.

PS6:  Biodiversity Conservation & Sustainable Natural Resource Management

The project is located on intervened agricultural land (cultivation or livestock) with some pockets of wooded area; no critical habitat or environmentally protected areas are located within the project’s area of influence.  A relatively small amount of land has been converted for this project, consisting of the foundation pads for the wind turbines, access roads, the substation, and the operations center and storage yard. 

Bird and bat baseline surveys were conducted by a qualified ornithologist in the project area prior to construction, and indicated a low likelihood of impact on bird migration routes.  Operational monitoring identified some IUCN conservation status species in the project area.  Direct collision mortality is small and to date, there is no significant impact on the population in the area of affected bird species.  CDH operations monitoring has found one bat species of vulnerable status among strike victims, the Lesser Long-nosed Bat (Leptonycteris yerbabuenae). Information from the specialist indicated that studies in Mexico suggest this species is increasing in numbers and will be taken off the IUCN vulnerable list soon.  Findings related to this project indicate that strikes are related to certain times of the year.  Based on available monitoring data, the bird and bat mortality rate has not been significant for the project.

Proposed mitigation measures to minimize bird and bat impacts include anti-perching devices on the wind turbines, lowering the spinning speed of the blade during certain times of the year or day, installing low intensity lighting which meets safety and security requirements, and considering shut down procedures for certain times of the year should continuous high mortalities be detected.  A robust monitoring program has been developed and reviewed by a third party.  Injuries and mortalities resulting from interactions with turbine structures will continue to be monitored and assessed to determine if potential exists for impacts on key species.  Biodiversity monitoring will be included in monitoring reports required by MIGA.

A reforestation management and monitoring plan has been developed for CDH1 that complies with the requirements of the SERNA Environmental License (10 new trees for every one cut down) and in total requires an area of approximately 35 ha to be reforested.  EEHSA has established a greenhouse onsite to facilitate reforestation and revegetation efforts.  EEHSA coordinates its reforestation efforts with the municipalities, water boards, and land owners.  A similar approach will be followed for the Expansion.

Cumulative impacts on birds and bats are not expected to be significant for this wind farm as it is the only wind farm in the area.  The twelve additional turbines are located in the same area as CDH1.  SERNA has not yet identified significant adverse cumulative impacts for this area.  As part of the project’s monitoring program, adverse impacts will continue to be monitored. 

PS7:  Indigenous People

According to information submitted by EEHSA, there are at least nine culturally different groups within Honduras, of which one is Lenca.  Based on information provided by the project, there is no evidence that Lenca have distinct social, political, and economic networks in the project area, and they carry out agricultural activities similar to other people in the Santa Ana and Buenaventura municipalities.  There is no separation based on cultural or ancestry origin.

Some oral claims have been made by a small group of community organizers that Lenca have the rights over the entire municipality of Santa Ana.  Based on available records searched by EEHSA, the public registry does not include registration of prior rights in favor of Lencas.  EEHSA’s consultation activities have included the National Lenca Indigenous Organization of Honduras (ONILH), the Civic Council of Popular and Indigenous Organizations of Honduras (COPINH), and the National Secretary of Indigenous Peoples and Afrohondurans (La Secretaría de Pueblos Indígenas y Afrohondureños, SEDINAFROH). 

ONILH has encouraged the creation of an indigenous council called Consejo Indigena Lenca de Mesa Grande, Nueva Arcadia (which has applied for its legal status from the Ministry of the Interior and Population).  A claim has been made by this Council to establish Mesa Grande as a Lenca community property.  Given this action, which goes beyond the project, the project altered its proposed locations of wind turbines for the Expansion in this area and no project activities will be carried out in this area.  EEHSA continues to include this Council in ongoing consultation and community development activities as it is part of the Santa Ana municipality, although this Council lacks legal status.

PS8:  Cultural Heritage

The CDH1 project carried out archaeological desk reviews and surveys which confirmed that there was one identified impact on cultural heritage.  This site was excavated and artifacts (stone tool fragments) rescued in 2009, as per the direction of Honduran National Archaeological Institute.  Archaeological clearances have been received for the Expansion project, based on current wind turbine locations. 

The project has implemented a chance finds procedure to address unanticipated impacts on cultural heritage during excavation

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[1] The Expansion original layout: EEHSA originally proposed that six turbines be located in the Mesa Grande community of Santa Ana.  When members of this community expressed a desire to not have turbines located on their lands because they verbally claimed they were Lenca communal lands, EEHSA relocated those turbines to other locations.  The original layout of six turbines in Nueva Arcadia (Santa Ana) were relocated due to unsuccessful willing lessor / lessee negotiations.

The original environmental diagnosis (DAC, 2005) was approved by SERNA in 2007 for a 60 MW wind power project, and an amended DAC (2008) was approved in 2009 to reflect a reduction in the number of wind turbines originally proposed and an increase in production to 100 MW.  An updated environmental resolution was issued by SERNA confirming acceptance of this reduction and that no new environmental impact assessment information or mitigation measures were required.  In 2008, SERNA granted a fifty year operating agreement for the project.  Environmental assessment documentation for CDH1 is available through the SERNA website (details provided in Section G).

SERNA, DECA (SERNA’s Environmental Unit), DEFOMIN (Ministry responsible for overseeing mining and quarries), ONILH, and community representatives participate in site visit inspections during the construction and operations phase of CDH1.  Reports were issued offering recommendations, of which all were reported to have been addressed by EEHSA.

Permitting for the Expansion’s 12 turbines required a submission of an environmental technical report for the new locations.  Given the original layout of the turbines changed over the course of final design, updates to the environmental technical reports were submitted to SERNA. An environmental license was issued in December 2012 for the 24 MW expansion based on the current layout.  The Environmental Mitigation Agreement was amended to incorporate mitigation measures for the Expansion. 

Community engagement and consultation has been carried out for this project since 2005, including as required under the UNFCCC Clean Development Mechanism (CDM) for CDH1, and as part of the environmental and social assessment studies for the Expansion.  Public consultation for the CDM process was carried out in November 2008 and the Project Design Document (PDD) for the CDH1 project is available through the UNFCCC website.  The PDD has been validated as part of the CDM registration.

Starting in 2005, EEHSA held meetings with the municipal councils of Santa Ana and San Buenaventura, with landowners, and with community leaders, including representation from SEDINAFROH (since its creation in January 2011), the National Lenca Indigenous Organization of Honduras (ONILH) and the Civic Council of Popular and Indigenous Organizations of Honduras (COPINH).  The consultation process has consisted of a combination of public meetings, specific environmental meetings, and site visits.  Overall, there is a good relationship with the local community; local people staff a local office within the main project area. There is generally good support for the project from the authorities and from many of the public.  Although a small opposition group has raised concerns related to the project, in line with GME’s corporate commitment to maintain transparent and open dialogue, a meeting with this group, SERNA, DECA, and GME / EEHSA was held to discuss issues.

A grievance mechanism has been implemented which identifies appropriate roles and responsibilities within the company.  EEHSA is committed to transparent and informed community consultation.  A formal community complaints log is maintained and procedures are in place to ensure that complaints are followed up. 

EEHSA developed a project specific Community Development Plan (CDP) in April 2011.  This plan is updated annually, sets out community activities supported to date and also describes a clear strategy for implementing community development activities and donations going forward.  The CDP has been publicly disclosed and shared with the general community.  As per the company’s plan, focus is given to electrification, water distribution services, road maintenance, health clinics, and schools.  Ongoing community development will be coordinated through established NGOs in the project area as well as continuing to provide direct support for various initiatives in consultation with local communities.  To ensure transparency and proper implementation of planned initiatives, EEHSA has locally disclosed its contributions under the CDP by posting information at each of the municipal offices.

The following documentation is available electronically as PDF attachments to this ESRS at www.miga.org:

The Expansion:

• Final Report: Pre-construction Study of Bats and Birds at Cerro Izopo, Honduras, Zamorano, 30 September 2013
• Field Survey:  Montaña de Isopo Wind project, Province of Francisco Morazan, prepared for Heritage Deputy Management, Instituto Hondureño de Antropologia e Historia (IHAH), July 2013 and corresponding IHAH clearance report.
• Surface Survey: Nueva Arcadia and La Cofradía Wind Project, Prepared for The Sub Management of Heritage, Instituto Hondureño de Antropologia e Historia (IHAH), October 2012 and corresponding IHAH clearance report.
• Technical Report for the Expansion of the Honduras 2000 Wind Project (Relocation of Six Aerogenerators) (translation), Msc. Mirna Carolina Antúnez Mejía, July 2013 (focuses on the relocation from Nueva Arcadia to Los Patios and Montaña de Izopo), including the Forest Study for Los Patios and the Executive Summary of the 2011-2012 Noise Assessment
• Expansion of the Honduras 2000 Wind Power Project Forest Assessment Study Cerro de Hula Wind Park (translation), Yamil Meza-Olivera, July 2013 (focuses on El Tablon area)
• Environmental and Social Management Plan (ESMP):  Expansion of the Cerro de Hula Wind Plant, EEHSA, December 2012
• Specific Environmental Assessment with respect to the Relocation of 6 of 12 Wind Generators to be Installed for Increasing the Capacity of the Honduras 2000 Wind Power Generating Plant (Cerro de Hula) II CDH (translation), Jose Luis Segovia, October 2012 (focuses on the relocation from Mesa Grande to Cofradia)
• Environmental Technical Report (translation), based on increase to installed capacity of Parque Eolico Eoloelectrico, Cerro de Hula II, Jose Luis Segovia, July 2012 (based on the original turbine layout for the expansion)
• Forest Assessment for the Implementation of Mitigation Measures in the Area of Construction of a Wind Farm–Technical report, Escuela Nacional de Ciencias Forestales (ESNACIFOR), September 2009

CDH1:

The following information was produced for CDH1 and remains valid for the Expansion:

• Environmental and Social Management Program (ESMP), EEHSA, 2012
• Original Environmental Impact Assessment (“DAC”) (Environmental Diagnosis),2005
• Amended DAC, 2008 – including supporting studies.

Project environmental and social documentation is also available for viewing at the following locations in Honduras:

• SERNA office in Tegucigalpa and its website: 
  • www.cambioclimaticohn.org/?art=1019&title=Parque%20E%F3lico%20Cerro%20de%20Hula
  • cambioclimaticohn.org/uploaded/content/category/1054671139.pdf
• EEHSA office in Tegucigalpa: Tegucigalpa, Edificio Torre Alianza II, Suite 807, 8avo Piso, Lomas del Guijarro Sur, Boulevard Juan Pablo II. Tegucigalpa, Honduras
• Cerro de Hula project office near Cerro de Hula: Km25 Carretera al Sur, A 1km del cruce dirección a San Buenaventura, Francisco Morazán, Honduras Municipality of Santa Ana, Honduras.