TABLE OF CONTENTS

1.0 INTRODUCTION ............................................................................................................................ 1

1.1 Background ................................................................................................................................... 1
1.2 Objectives ..................................................................................................................................... 1
1.3 Scope Of Work ............................................................................................................................. 2
2.0 STATEMENT OF NEED ................................................................................................................. 2
3.0 DESCRIPTION OF PROJECT ......................................................................................................... 3
4.0 PROJECT OPTIONS ........................................................................................................................ 5
5.0 DESCRIPTION OF EXISTING ENVIRONMENT ......................................................................... 6
6.0 BASELINE INFORMATION FOR PROJECT SITE ...................................................................... 7
6.1 Water Quality ................................................................................................................................ 8
6.2 Noise ............................................................................................................................................. 8
7.0 POTENTIAL SIGNIFICANT ENVIRONMENTAL IMPACTS ..................................................... 9
7.1 Coastal Dynamics ......................................................................................................................... 9
7.2 Water Quality ................................................................................................................................ 9
7.2.1 Dissolved Oxygen ................................................................................................................. 9
7.2.2 Turbidity ............................................................................................................................. 10
7.2.3 Faecal Coliform................................................................................................................... 11
7.2.4 Salinity ................................................................................................................................ 11
7.2.5 Water Ph.............................................................................................................................. 12
7.2.6 Suspended Solid .................................................................................................................. 12
7.2.7 Temperature ........................................................................................................................ 13
7.3 ECOLOGY ................................................................................................................................. 13
7.3.1 Loss of Habitat and Biodiversity ........................................................................................ 13
7.3.2 Airborne and Noise Pollution ............................................................................................. 14
7.3.3 Soil Erosion and Change in Drainage Patterns ................................................................... 14
8.0 MITIGATION AND ABATEMENT MEASURES MEASURES ................................................. 15
8.1 Transportation and Storage of Construction Materials ............................................................... 15
8.2 Disposal of Construction Debris ................................................................................................. 15
8.3 Sewage and Garbage Disposal .................................................................................................... 15
8.4 Impact on Bagan Lalang Beach .................................................................................................. 15
8.5 Soil Erosion and Change in Drainage Patterns ........................................................................... 16
9.0 RESIDUAL IMPACT ..................................................................................................................... 16
10.0 ENVIRONMENTAL MANAGEMENT PLAN (EMP) ................................................................. 17
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1.0 INTRODUCTION

1.1 BACKGROUND

The construction of Golden Palm Tree Sea Villas & Spa, Sepang Project is subjected to the
Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order, 1987
under “Activity 17(a): Construction of coastal resort facilities or hotels with more than 80 rooms.
Any person who intends to carry out this activity is required to submit a report on the
environmental impact assessment to the Director General of Environment for consideration, as
mentioned under Section 34A of the Environmental Quality Act, 1974 (Amendment) 1996. The
proposed Term of Reference (TOR) is prepared specifically for the DEIA on the proposed
construction of Golden Sea Palm Tree Villa & Spa.

1.2 OBJECTIVES

Malaysia legislation requires the submission of EIA for developments specified in the
Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order, 1987.
The approval of the EIA for such activities is therefore required prior to the start of physical
work on site.

For resort and recreational development activities, the Project Propenent is required to follow the
Detailed EIA procedure which involves public and agency review of the TOE and subsequently,
the DEIA. This TOR is therefore to provide sufficient information on the nature and extent of
environmental impacts arising from the construction and operation of the Project to facilitate
such review.

The TOR has been developed in accordance with the general principles and guidelines contained
in the Guidance Document on the Submission of TOR for DEIA Report, published by DOE.

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The main objectives of the TOR are as follow:

1. To outline the key features of the proposed Project and associated works;
2. To outline the general approach and methodology required to carry out the DEIA;
3. To obtain primary and secondary data on water quality.
4. To obtain qualitative and quantitative data from workers and community.
5. To scope the key potential environmental issues associated with the Project Based
preliminary investigation.

1.3 SCOPE OF WORK

The Environmental Impact Assessment was carried out by a multidisciplinary team, and utilized
skills in biological assessments, hydrogeology, environmental chemistry, socioeconomics and
project management. A comprehensive evaluation of the study area was carried out and the
environmental character of the area determined. This was related to the development plans and
the potential impacts identified. Recommendations are made which are aimed at ensuring
compliance with relevant environmental statutes, and ensuring the preservation or restoration of
the ecological balance through the mitigation of anticipated impacts.

2.0 STATEMENT OF NEED

1. To comply Ninth Malaysian Plan i.e. growing tourism in Malaysia.

2. The concept of building a resort with minimum impact to the environment and touted to
be the first eco-friendly sea-hotel in the world.
3. Successful eco-tourism resort designed to preserve and promote natural heritage. The
concept is to educate the tourists on the importance of ecological system in riverine,
mangroves and coastline in a conducive entertainment and leisure environment.
4. Booming tourism market of overseas and domestic visitors.
5. Attract investors from local and foreign countries.
6. Promote the concept of eco-tourism resort and national heritage.

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3.0 DESCRIPTION OF PROJECT

Golden Palm Tree Resort is located at Sepang Goldcoast No. 67 Jalan Pantai Bagan Lalang, Kg.
Bagan Lalang, 43950 Sungai Pelek, Selangor, Malaysia. It is first investment properties of
Sepang GoldCoast (SGC) with investment of RM741,000 - RM3,148,600. The total area is
approximately 5,000 acre. The coastal city development by SGC is a joint venture between
Permodalan Negeri Selangor Berhad (PNSB) and Sepang Bay Sdn Bhd, a private investment
holding company.

Golden Palm Tree Water Villas is the first phase of the development and the concept is palm-
shaped villas built from the shoreline stretching right up into the sea reaching as far as 1km. The
development will be on 18 acres of land sited on Lot 67 and is accessible from the existing
Bagan Lalang beach via a boulevard. Even though the project covers 5000acres, only 18acres
such as the first development will be covered under the study.

The Golden Palm Tree Sea Villas & Spa is the maiden project undertaken by Sepang Goldcoast
Sdn Bhd, the master developer of Sepang Goldcoast.
The company aims to provide a unique holiday experience for its guests, underpinned by world-
class quality services and luxuriously appointed interior designs for its villas.

The complex is designed as an iconic palm-shaped structure, constructed entirely over water,
with its furthest end stretching almost 1.2 kilometers into the Straits of Malacca.

Guests have a choice of 392 internationally award winning villas, from studio, 2-room and 3-
room suites. Facilities in the resort include a 1,000-pax conference hall and meeting rooms, food
and beverages outlets, a gym, a spa complex, business center, swimming pool, children club and
a day and night bar. There are altogether 393 luxuriously appointed sea villas that shape a palm
tree with 5 distinctive villa types. The 5 villa types are Travelers Palm Villa, Premier Travelers
Palm Villa, Canary Palm Villa, Ivory Palm Villa and Royale Palm Villa.

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Types Area (sq ft) Price (RM)
Traveller villa 570 571, 815
Canary Palm Villa 883 977, 100
Ivory Villa 1345 1.43 million
Royale Palm Villa 2422 7.45 million

The construction of the Golden Palm Tree Sea Villas and Spa is almost completed and it is
expected to receive its first guest in the first quarter of 2010.

The second phase of the Sepang Gold Coast project namely Escapade will consist of activity
areas, restaurants and clubs that will kick off for construction in April and be completed by end-
September (estimation). Third phase of the sea tropics project resort, costing RM300 million,
will begin in September (estimation). The entire project will be completed in 2012.

Sepang GoldCoast is a pleasant 25 minutes from Kuala Lumpur International Airport (KLIA), 45
minutes to Putrajaya and approximately 75 minutes to Kuala Lumpur. It is known as the longest
coastal paradise in Asia, with 22km of sandy beach, 17 km of riverine mangrove sanctuary.

Furthermore the development project is located within 25 minutes of the Sepang F1 race track
with the properties being designed to be the world's first eco-friendly sea hotel, and an integral
part of the large Sepang Gold Coast development.

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4.0 PROJECT OPTIONS

Consideration of alternatives/ options is a fundamental requirement in the planning of any

project as a means of avoiding, or reducing adverse environmental impacts and maximizing or
enhancing project benefits.

The Detailed Environmental Impact Assessment will take into consideration with clear and
objectives comparison of the environmental benefits and dis-benefits of different siting and
technology options, with or without the proposed project.

Without the proposed project refers to cancellation of the project and the project site would
remain status quo without any development activities. This would significantly anticipate the
economic growth, both to Selangor and the nation as a whole. The ‘No-build’ Option would
undermine the potential for Selangor to become not only self sufficient through resorts
development, but also for the state to generate further income through maintaining the nature
beauty of the beach towards further income in the sector of tourism.

On the other hand, with the proposed project, it is assumed that the project is constructed and
operated as planned; it is being viewed as polluting and has the potential of degrading the
ambient air quality, causing nuisance impacts n neighbouring areas and other environmental
issues.

The intention of project options is to select the best or preferred options which are the most
environmental sound yet economical viable option. Other developmental and environmental
impact will then be assessed for preferred options in DEIA

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5.0 DESCRIPTION OF EXISTING ENVIRONMENT

A description of the existing environment based on information collected from the field
monitoring and investigations, supporting studies, and secondary data from authorities, agencies
and published sources will be included in DEIA report. Graphic overlays for topography,
hydrology, land use and cadastral data will be prepare based on the data collected.

Primary and secondary information relation to the existing water and noise quality, socio-
economic characteristics, land use, geology and soils, hydrology will be collected and discussed.
A time series evaluation based on existing monitoring results for noise and water quality for
Project will be included in the DEIA.

Field and associated work to gather the required information will include the following:

1. Land use- an assessment of the surrounding land use and road system within the Project
area and its surroundings (within a radius up to 5 km) will be made based on structure
and local plans, and development plans that have been prepared for the study area. This
will be supplemented by ground truthing to confirm information gathered from such
sources. The assessment will include visual impacts and related aesthetic issues, and an
identification of environmentally sensitive area (if any). The whole development of the
resort covers a total area of 5000 acres. The first phase, Golden Palm Tree Water Villas
mainly built on water body. The other parts include car park, administration office, and
employee hostel are constructed on land.

2. Hydrological regime- the description of this component will be made based on the field
investigation of drainage systems and secondary information from hydrological
investigations that have been undertaken previously.
3. Socio-economic and population characteristics- The identification of settlements and
population within the assessment area that are likely to be affected by the development
will be carried out from existing information from local and structure plans, the Statistics
Department and field visits. This will be augmented by feedback focus grup discussions
within the communities in the vicinity of the Project site.
4. Ecological conditions- the status of the flora and fauna diversity of the site will be
reviewed and assessed. An initial survey will be conducted to be determined the need for
further studies. Visual assessments of the Project Site will be conducted. Depending on

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 the sensitivity and existing conditions of the Project Site, further studies will be
conducted. The study will also look at neighbouring area and biodiversity value of the
area.
5. Health characteristics- As the Project presents concerns regarding water quality impacts,
health assessment component of this DEIA will place an emphasis on diseases related to
water pollution. Noise is generated from construction work and traffic (lorries) come in
and out to transport building materials and waste.
6. Climate- The climate for Peninsular Malaysia ranges from hot-humid equatorial to humid
temperature, which is well characterized by uniform high temperature, high humidity and
heavy annual precipitation throughout the year.

6.0 BASELINE INFORMATION FOR PROJECT SITE

Environmental monitoring of the water and noise level around the project site is necessary to
determine the quality of the existing environment. In view that existing environmental
monitoring data is available for water quality and noise level, this information will be adopted as
baseline information for DEIA. These parameters are measured in accordance to standard
methods.

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6.1 WATER QUALITY

The parameters analysed for water quality include

Parameters Instruments
Dissolved oxygen YSI Model 85 Oxygen
Turbidity TBIR 1000 series Bench turbidity meters
Faecal coliform Multiple Tube Fermentation
Salinity Salinity Meter
Water pH pH Meter
Suspended solid Filtration and Gravimetry
Temperature Temperature Meter

6.2 NOISE

The equipments used consist of sound level meter which was placed at a height of about 1.2
meter above the ground. Noise descriptors such as L10, L90 and Leq were recorded. Baseline
sound levels were monitored for two different periods of the day which were day-time and night-
time readings. Definition for the noise descriptors are presented as follows:

1. L10: A specified dBA levels which is exceeded ten percent of the time during the whole
period of measurement.
2. L90: A specified dBA levels which is exceeded ninety percent of the time during the
whole period of measurement.
3. Leq: The equivalent continuous dBA level which has the same energy as the original
fluctuating noise for the same given period of time.

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7.0 POTENTIAL SIGNIFICANT ENVIRONMENTAL IMPACTS

7.1 COASTAL DYNAMICS

One of the most important features of the entire development is the existence of the high quality
beach, as it adds great value for aesthetic and recreational purposes.
However the existence of this beach should not be taken for granted, as its presence is the result
of a fine balance of coastal processes including wave-climate, current regimes, storm water and
river discharges, and also sediment supply.

Any significant disturbance to any one of these parameters will result in destabilization and
erosion of the foreshore. As such, all attempts should be made to preserve the natural forces at
work here. Probably the most significant factor in this equation is the wave attenuation properties
of the existing barrier reef. This feature modifies incoming deepwater ocean swells, and causes
them to shoal and accrete sand in its lee.

The health of this reef is directly linked to good water quality, and as such any discharges of
effluent whether by natural storm water runoff, planned drainage schemes, or discharges into the
local streams must be carefully controlled in order to maintain the integrity of the entire coastal
system. This reef also offers major protection from storm surges associated with tropical storms.

7.2 WATER QUALITY

7.2.1 DISSOLVED OXYGEN

Total dissolved gas concentrations in water should not exceed 110 percent. Concentrations above
this level can be harmful to aquatic life. Fish in waters containing excessive dissolved gases may
suffer from "gas bubble disease", however, this is a very rare occurrence. The bubbles or emboli
block the flow of blood through blood vessels causing death. External bubbles (emphysema) can
also occur and be seen on fins, on skin and on other tissue. Aquatic invertebrates are also
affected by gas bubble disease but at levels higher than those lethal to fish.

Adequate dissolved oxygen is necessary for good water quality. Oxygen is a necessary element
to all forms of life. Natural stream purification processes require adequate oxygen levels in order
to provide for aerobic life forms. As dissolved oxygen levels in water drop below 5.0 mg/l,

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aquatic life is put under stress. The lower the concentration, the greater the stress. Oxygen levels
that remain below 1 to 2 mg/l for a few hours can result in large fish kills.

The important of dissolved oxygen analysis measures the amount of gaseous oxygen (O2)
dissolved in an aqueous solution. Oxygen gets into water by diffusion from the surrounding air,
by aeration (rapid movement), and as a waste product of photosynthesis. When performing the
dissolved oxygen test, only grab samples should be used, and the analysis should be performed
immediately. Therefore, this is a field test that should be performed on site.

7.2.2 TURBIDITY

Excessive turbidity, or cloudiness, in drinking water is aesthetically unappealing, and may also
represent a health concern. Turbidity can provide food and shelter for pathogens. If not removed,
turbidity can promote regrowth of pathogens in the distribution system, leading to waterborne
disease outbreaks, which have caused significant cases of gastroenteritis throughout the United
States and the world. Although turbidity is not a direct indicator of health risk, numerous studies
show a strong relationship between removal of turbidity and removal of protozoa.

According to WHO (World Health Organization), it establishes that the turbidity of drinking
water should not be more than 5 NTU, and should ideally be below 1 NTU.
The greater the amount of total suspended solids (TSS) in the water, the murkier it appears and
the higher the measured turbidity. The major source of turbidity in the open water zone of most
lakes is typically phytoplankton, but closer to shore, particulates may also be clays and silts from
shoreline erosion, resuspended bottom sediments and organic detritus from stream and/or
wastewater discharges. Dredging operations, channelization, increased flow rates, floods, or even
too many bottom-feeding fish may stir up bottom sediments and increase the cloudiness of the
water.

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7.2.3 FAECAL COLIFORM

The presence of fecal coliform bacteria in aquatic environments indicates that the water has been
contaminated with the fecal material of man or other animals. At the time this occurred, the
source water may have been contaminated by pathogens or disease producing bacteria or viruses
which can also exist in fecal material. Some waterborne pathogenic diseases include typhoid
fever, viral and bacterial gastroenteritis and hepatitis A. The presence of fecal contamination is
an indicator that a potential health risk exists for individuals exposed to this water. Fecal
coliform bacteria may occur in ambient water as a result of the overflow of domestic sewage or
nonpoint sources of human and animal waste.

Total coliform bacteria are a collection of relatively harmless microorganisms that live in large
numbers in the intestines of man and warm- and cold-blooded animals. They aid in the digestion
of food. A specific subgroup of this collection is the fecal coliform bacteria, the most common
member being Escherichia coli. These organisms may be separated from the total coliform group
by their ability to grow at elevated temperatures and are associated only with the fecal material
of warm-blooded animals.

7.2.4 SALINITY

The ocean has a salinity that is approximately 35 ppt, which is the same as saying ocean water is
3.5% salt. About 90 percent of that salt would be sodium chloride, the same as table salt. Other
salts that can be found in saltwater are calcium, magnesium, sulfur and potassium.

Salinity can be a concern when streams, bores, dams and soils become more saline. The salt
content of water affects the distribution of animal and plant species according to the amount of
salinity they can tolerate. Many species can survive only within certain salinity levels. Changes
in salinity can have a detrimental effect to a variety of species found in a water. Salinity is also
affected by temperature. The warmer saltwater becomes, the more its volume increases, which
lowers the density (thermal expansion). As water temperature decreases, volume decreases,
increasing the density. When we measure the salinity of water, we look at how much dissolved
salt is in the water and measuring water salinity will indicate if it is effect for environment or not.

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7.2.5 WATER PH

The pH scale ranges from 0–14, 0 is very acidic and 14 is very alkaline. The freshwater usually
has pH values between 6.5 and 8.2. Most organisms have adapted to life in water of a specific
pH and may die if it changes even slightly. The pH level can be affected by industrial waste,
agricultural runoff or drainage from unmanaged mining operations. As the climate changes, the
oceans are becoming more acidic. This means the pH will decrease. The oceans are naturally
alkaline with an average pH of 8.2 ±0.3, although this may vary in waters close to the beach
where pH is directly impacted by freshwater from rivers flowing into the sea.

Aquatic organisms are dependent on certain temperature ranges for optimal health. Temperature
affects many other parameters in water, including the amount of dissolved oxygen available, the
types of plants and animals present, and the susceptibility of organisms to parasites, pollution
and disease. Causes of temperature changes in the water include weather conditions, shade and
discharges into the water from urban sources or groundwater inflow.

7.2.6 SUSPENDED SOLID

Suspended solids (SS) have been discharged into water areas such as rivers, lakes, and ponds.
The SS adsorb various contaminants such as heavy metals and nutrients and also form sediments
by sedimentation. Therefore, contaminated SS will be able to influence not only the water
quality, but also the sediment quality.

Total suspended solids (TSS) concentrations and turbidity both indicate the amount of solids
suspended in the water, whether mineral (e.g., soil particles) or organic (e.g., algae). However,
the TSS test measures an actual weight of material per volume of water. High concentrations of
particulate matter can cause increased sedimentation and siltation in a stream, which in turn can
ruin important habitat areas for fish and other aquatic life. Suspended particles also provide
attachment places for other pollutants, such as metals and bacteria. High suspended solids or
turbidity readings thus can be used as "indicators" of other potential pollutants.

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7.2.7 TEMPERATURE

A common cause of rise or fall in the temperature of a natural body of water is the use of water
as a coolant by power plants and industrial manufacturers. Elevated water temperatures
decreases oxygen levels and affect ecosystem composition, such as invasion by new
thermophilic species. The runoff may also elevate temperature in surface waters. In fact, the
runoff from the project may effect the water temperature in Bagan Lalang Beach area.

Temperature affects many physical, biological and chemical processes. For example, the amount
of oxygen that can be dissolved in water, the rate of photosynthesis of plants, metabolic rates of
animals, and the sensitivity of organisms to toxic wastes, parasites and diseases. It is most often
measured in degrees Celsius. Many factors affect water temperature. These include changes in
air temperature, cloudiness and currents and of course in the longer term can cause climate
change. The project’s wastes discharged into water can also affect temperature if the effluent
processing or treatment temperature is substantially different to the background water
temperature.

7.3 ECOLOGY

Possible environmental impacts to the area resulting from Golden Palm Tree Spa and Villa
include:

7.3.1 Loss of Habitat and Biodiversity

An immediate and most adverse environmental impact to the area would occur during the
preparatory phase which calls for clearing of the site for the proposed development. The removal
of trees and shrubs would reduce the existing forest cover, resulting in irreversible loss of natural
habitat for flora and fauna particular to the area. The proposed development will have negative
effects on the composition of the bird community in the area. There will be obvious loss of
species from the area, especially of the forest-based endemic species.

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7.3.2 Airborne and Noise Pollution

The increased traffic to the area, use of heavy equipment during the clearing of the site and
transportation of building materials will create noise and raise dust which could further disturb
the habitat of the existing fauna, in particular the birds nesting in the area, as well as the plants
and insects they feed on. Dust and emissions from the construction vehicles and heavy
machinery are inevitable both during the site clearing as well as during construction phases.
Airborne pollution, in particular dust resulting from clearing of the land and from exposed piles
of building materials (e.g. sand, cement, etc.) may further stress the local flora and fauna, and
may also pose a health risk to construction workers and residents in the vicinity who suffer from
asthma or other respiratory ailments.

7.3.3 Soil Erosion and Change in Drainage Patterns

Removal of vegetative cover and the subsequent excavation activities required for infrastructure
installation (paving of roads, laying of water/sewage pipes, electrical cables, etc.) will impact the
existing drainage patterns in the area. Loss of topsoil due to soil erosion as well as excessive
runoff into the bay, are causes for concern which must be addressed prior to the clearing phase.
Soil erosion will remain a problem during the clearing as well as during the construction phases
of the project. Lack of proper drainage ways could result in localized pooling and flooding,
providing ideal conditions for the proliferation of nuisance pests such as mosquitoes. Excessive
runoff, especially during heavy rains, could also lead to elevated nutrient loading into the bay,
directly or via the stream. The resulting turbidity and sedimentation would negatively impact the
inshore water quality and the marine ecosystem in the bay, especially the corals which do not
tolerate prolonged exposure to high concentrations of fresh water or particulate matter in the
water column.Transportation impacts are limited to the lack of access routes to the beach during
construction. As no major roads within the community will be affected, the impact is short-term
and not very significant.

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8.0 MITIGATION AND ABATEMENT MEASURES MEASURES

Mitigation measures will be proposed to minimize and if possible, to abate significant

environmental impacts. Recommendations for environmental pollution control and management
of environmental impacts will be based on information provided by the Project Proponent, its
appointed consultants and professional judgement on known applications of pollution control
technologies. The mitigation and abatement measures are briefly described in the following
paragraphs.

8.1 Transportation and Storage of Construction Materials

Arrangements should be made with contractors and subcontractors to ensure that the vehicles
used for transporting building materials to the site are appropriately sealed and covered to
minimize dust. Dust producing building materials such as sand or cement should be stockpiled in
low enclosures and covered, away from drainage areas where they could easily be washed away
during rainfall.

8.2 Disposal of Construction Debris

A site waste management plan should be made the responsibility of the building contractor to
provide for the designation of appropriate waste storage areas on the site and a schedule for the
timely collection and removal of construction debris to an approved dump site. Organic waste
produced during site clearing should be mechanically mulched and composted at the site and
used for landscaping at a later date.

8.3 Sewage and Garbage Disposal

Providing adequate number of portable restrooms (chemical toilets or dry composting toilets) for
the workmen and waste baskets and dumpsters is essential to keeping the construction site clean
and pest free. Arrangements should be made for regular garbage collection and removal of
sewage from the construction site. All measures must be taken to ensure that untreated sewage is
not directed into the bay waters.

8.4 Impact on Bagan Lalang Beach

All of the potential impacts listed above, especially soil erosion, runoff and garbage dispersal;
can have a detrimental effect on the beach and the wetland areas. Mitigating actions call for
minimizing the impact of construction on the beach, the wetland and forest conservation areas

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during all phases of the Golden Palm Tree Spa & Villa project. Controlling access points and
traffic to the beach area is also important.

8.5 Soil Erosion and Change in Drainage Patterns

Site clearing activities should be conducted in stages to minimize the area of exposed soil at any
given time. Exposed soil should be seeded with grass or other appropriate cover as soon as
possible to minimize soil erosion. Monitoring and maintaining proper storm water drainage
systems, use of catchment/settlement areas and screens, as well as redirecting flows during
periods of heavy rain are steps that can minimize erosion and surface runoff into the bay.

9.0 RESIDUAL IMPACT

The main residual impact will be the water contamination and waste generation after the
completion of the project. Beach pollution may be experienced because water activity and beach
activity are the attractions to tourists and visitors.

For positive impact, the resort is optimistic of generating a revenue of between RM20 million
and RM30 million from the operation of its Golden Palm Tree Resort. Up to date, 80 per cent is
already sold to European and Middle East buyers.

The socio economic benefits identify the socio economic and cultural impacts of the proposed
development. A consequent result of the Project would be the benefits to the surrounding local
economy during Project construction and operational phases. The Project is also expected to
create new employment opportunities during the construction and operational phases. Of
significance, the Project is expected to generate not less than 150 new jobs to the community
during operation, likely to be in terms of skilled and semi-skilled employees. Golden Palm Tree
Spa & Villa has committed that at least 95% of its employees would be sourced from the local
community.

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10.0 ENVIRONMENTAL MANAGEMENT PLAN (EMP)

The EMP outlines the environmental management and mitigation measures as well as the
environment monitoring and auditing program for the Project based on the requirements for
environmental compliance. Baseline information gathered for the Project and the output of the
environmental impact assessment will serve as the basis for the EMP. The main components to
be included in the EMP include:

1. Institutional/administrative responsibilities for the environmental management

component of the Project
2. Environmental Monitoring and Auditing Programme

Monitoring programmes should be in place for the sewage effluent as well as the quality of
the coastal waters to identify changes from the background, baseline conditions. The
environmental management plan must clearly identify the mitigating actions to be taken,
including tree surveys, development of drainage systems, dust control and waste disposal.
Retaining the services of a third party monitor to carry out regularly scheduled sampling of
the area during the various phases of the development would ensure that negative impacts are
identified and addressed in the earliest stages, thus preventing further deterioration of the
environment. A monitoring programme designed for the construction phase of the project
should focus on:

a. Collecting data and providing ongoing feedback on the state of the environment in the
affected area
b. Monitoring the state of the wetland, the designated forest conservation area, the state of
trees marked for protection and other landscape activities
c. Looking for signs of soil erosion and runoff especially after significant rainfall
d. Monitoring the marine community, as well as sedimentation rates and water quality in the
bay
e. Assessing transportation, storage and disposal of construction materials
f. Assessing waste management practices

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