Mr Mohammed Irwan bin Aman, Sustainability Manager, Sarawak Energy Berhad (SEB) SESSION 7: Incorporating sustainability into business practice The expectations on organisations involved in hydropower have increased dramatically, both at the corporate and project levels. The scope of accountability has grown from the technical, legal, financial and regulatory, to broader developmental responsibilities and greater disclosure. It is a strategic challenge to adjust business and information systems to incorporate sustainability into assessment, planning, operations, reporting and reviewing. An international panel will discuss this challenge from a range of perspectives. For more information about this event, visit: http://ihacongress.org

1. Mohamad Irwan Aman
Sarawak Energy
The Sarawak Energy Journey –
Incorporating Sustainability into Business Practices
Presented at the
IHA 2013 World Congress

2. The Sarawak Energy Journey –
Incorporating Sustainability into
Business Practices
By
Mohamad Irwan Aman
Sustainability Manager
Sarawak Energy Berhad

3. Sustainability in Sarawak Energy?
– Continuously developing, introducing and
embedding sustainability into our business
practices
2
Environment
Social
Economic
Policies,
Processes,
Products
Bottom
Lines
Impacts Mitigation measures Outcomes

4. Sarawak Energy Sustainability Overview
3
Sustainability
Road Maps, HSE Policy , Operation Excellence & R&D Programs
Continuous Improvement; Company going Concern
Economic Social Environment
Sustainability Reporting
IHA
Protocol
Global
Reporting
Initiative
Compliance
and
Certification
Operation
(Improvement;
Procurements
etc)
Sustainability
projects, (
Env Mgmt;
Social Inv;
Economic)

5. 46/17/2013
Phase 1
Initiation
Phase 2
Concept
Phase 3
Pre-Eng
Phase 4
Execution
DG 0 DG 1 DG 2 DG 3
SEB Project Model (SPM)
- Key Activities
a) Start-up Meeting
b) Functional and financial
requirement (refine)
c) Continue site selection
d) Develop Concept/Design
Basis
e) Concept engineering
 Identify/evaluate
design and
operational
alternatives
 Conceptual design
 Value Improving
Practices
 Develop permitting
strategy
f) HSE Assessment
g) Execute project cost, time,
risk/QA management process
h) Refine execution strategy
i) Pre-qualify contractor
j) Update contract strategy
k) Tender/select main
contractor for
FEED/execution
l) Define Project Mandate
next phase
a) Start-up meeting
b) Define business objectives
c) Define initial Scope of Work
d) Assess alternative solutions
e) Conduct first technical
assessment
f) Rough define operational
concept
g) Conduct initial profitability and
uncertainty analysis
h) Define financing
i) Initiate site selection
j) Investigate national/local
conditions
k) Identify patent related
consideration
l) Define budget for concept phase
m) Develop and approve project
execution strategy
n) Conduct contractor and labour
market survey
o) Preliminary contract strategy
p) Develop project cost estimate
a) Start-up Meeting
b) Functional and financial
requirements (refine)
c) Perform Pre-
engineering/FEED
d) Update HSE program
e) Initiate Permit applications
f) Risk assessment
g) Refine project execution
strategy
h) Refine contract strategy
i) Award FEED contract
j) Prepare decision
documentation
k) Prepare for project Execution
(Management system,
contracts, WBS etc)
l) Project Mandate next phase
(Execution)
m) Develop firm plans/estimates
for Owner’s activities
n) Start mobilize resources for
execution
a) Start-up Meeting
b) Establish Project
Management Team
c) Contract/PO award
d) Develop relations to
- Main Contractor
- Local authorities
e) Project Management
- Follow-up of (main)
contractor(s)
- Monthly reporting
- Stakeholder management
and anchoring
- Communication and
information
- Uncertainty management
process, ind, mitigation plan
- Interface management
- QA/QC
- Change Management
- Construction
- Commissioning
f) Prepare hand-over to owner
g) Project close-out
DG 4
FID – Final Investment
Embedding Sustainability Elements in Sarawak
Energy Business Practices

6. 5
Phase 1
Initiation
Phase 2
Concept
Phase 3
Pre-Eng
Phase 4
Execution
Phase 5
Operation
DG 0
Decision to initiate
a formal project
DG 1
Decision to start
concept phase
DG 2
Decision to start
pre- engineering
DG 3
Final investment
decision
DG 4
Acceptance by Operations
/ project close-out
&SEB Project Model
Hydropower Development
Hydro –Specific Station
Mng
.
SEBProjectModel
FourStagesofIHA
Protocol
AssessmentTools
MainProject
Owners
-
Early Stage Preparation Stage Implementation
Stage
Operation Stage
Project Execution
Four Protocol Assessment Tools
Embedding Sustainability Elements in Sarawak
Energy Business Practices

7. Linkages between the EIA Format and Sustainability Topics
EIA Report Heading Titles Sustainability Topics
SECTION II Dates, Sources and Consultation P01 - Communications & Consultation
SECTION III
Chapter 1 Introduction
1.1 Title of Project
1.2 Project Initiator
1.3 Statement of Need P3 - Demonstrated Need & Strategic Fit
1.4 Objectives of Study P5 – Environmental & Social Impact Assessment & Management
Chapter 2 Project Description
2.1 Project Location P5 – Environmental & Social Impact Assessment & Management
2.2 Project Size P5 – Environmental & Social Impact Assessment & Management
2.3 Project Site Options P3 - Demonstrated Need & Strategic Fit; Assessment of Alternatives
P4 - Siting & Design
2.4 Project Concept P5 – Environmental & Social Impact Assessment & Management
P8 – Infrastructure Safety
2.5 Project Schedule P5 – Environmental & Social Impact Assessment & Management
2.6 Project Cost-Benefit Analysis P9 - Financial Viability
P10 - Project Benefits
P11 - Economic Viability
Chapter 3 Existing Environment
3.1 Physical characteristics of Project Area
- Geology and Soil Conditions
- Topography and Landuse
- Meteorology
- Hydrology
P5 – Environmental & Social Impact Assessment & Management
P20 - Erosion and Sedimentation
P21 - Water quality
6
Embedding Sustainability Elements into SEIA
Process

8. Concept Phase (DG 1 – DG 1)
7
Mapping Sustainability Assessment Tools
Concept
Engineering
Activities
Develop Concept/Design Basis
1. Identify/evaluate design and
operational alternatives
2. Conceptual design
3. Power and Energy Review
P-3 Demonstrated Need and Strategic Fit
- Update on the assessment and statement of needs
P-4 Siting & Design
- Conceptual design that account the following factors:
Technical
Economic
Financial
Environmental
Social
P-8 Infrastructure Safety
- Dam and other infrastructure management plans and processes
1. Hydrology and Reservoir
Sediment Review
2. Geosciences Review and
Planning
3. Survey and Topography
Review
P-7 Hydrological Resource
- Hydrological resource availability assessment
- Technical considerations
Power system opportunities and constraints
Social, environment and economic
P-20 Erosion & Sedimentation
- Initial assessment on Soil erosion and sedimentation issues
P-22 Reservoir Planning
- Initial assessment on reservoir preparation, filling and operation
P-23 Downstream Flow Regimes
- Initial assessment on the variation of the flow regimes
P-19 Biodiversity & Invasive Species
- Initial assessment of High Value of Biodiversity areas that might be affected by the
project development (e.g. biodiversity map)

9. 8
SEB Sustainability . . . The journey
continues

10. Conclusion
• IHA Sustainability Assessment Protocol is a comprehensive
assessment tools that can help SEB identify gaps and
weaknesses
• Internalize and systematize the Protocol as part of project
development.
• Embedding sustainability elements into business practices is a
challenging process.
– involves changes of mindsets
– new solutions/processes to address the sustainability issues.
• Based on the feedback that we have received, we are
convinced that we are on the right road to sustainability

11. Thank You