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Initial Environmental Examination Vanuatu Initial Environmental Examination Document Stage: Draft 1 Project No.: 42392-015 July 2021 Vanuatu: Interisland Shipping Support Project (Second Additional Financing) Simonsen Domestic Wharf Prepared by the Ministry of Infrastructure and Public Utilities for Asian Development Bank. This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Vanuatu: Interisland Shipping Support Project Simonsen Wharf – Initial Environmental Examination CONTENTS Abbreviations 1. EXECUTIVE SUMMARY II 2. INTRODUCTION 1 A. Background 1 B. Purpose and Scope 3 2. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 4 A. Country Safeguard System 4 B. ADB Safeguard Policy 6 3. DESCRIPTION OF THE PROJECT 8 A. Need for Project 8 B. Analysis of Alternatives 8 C. Simonsen Wharf Reconstruction 9 4. DESCRIPTION OF THE ENVIRONMENT 15 A. Physical Resources 15 B. Biological Environment 21 C. Socio-economic Baseline 31 5. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 36 A. Overview 36 B. Pre-construction Impacts 36 C. Construction Impacts on the Physical Environment 39 D. Construction Impacts on the Biological Environment 42 E. Construction Impacts on the Socio-economic Environment 44 F. Operation Impacts 50 6. CONSULTATION, INFORMATION DISCLOSURE AND GRIEVANCE REDRESS 53 A. Consultation and Participation 53 B. Disclosure 57 C. Grievance Redress Mechanism 55 7. ENVIRONMENTAL MANAGEMENT PLAN 58 A. Institutional Arrangements for Environmental Management 58 B. Mitigation and Management Measures 64 C. Monitoring and Reporting 67 D. Costs of Environmental Management Measures 68 8. CONCLUSIONS AND RECOMMENDATIONS 70 ANNEXES A Simonsen and Port Sandwich Wharves Marine Ecology Assessments 87 B Preparation of CEMP Guidance 92 C Public Consultation Records 95 D Guidance for Safeguard Requirements in Bid and Contract Documents 125 E SPS Annex 5 – Prohibited Activities List P a g e i | 176 Vanuatu: Interisland Shipping Support Project Simonsen Wharf – Initial Environmental Examination ABBREVIATIONS ADB - Asian Development Bank AEP - Aggregate extraction plan (part of CEMP) BCD - Bidding and contract documents CD - Chart Datum CEMP - Construction environmental management plan MFRMP - Coral relocation management plan CSD - Cutter suction dredger CSS - Country safeguard system DC - Design consultant DEPC - Department of Environmental Protection and Conservation DGMWR - Department of Geology, Mines and Water Resources DPM - Department of Ports and Marine EHSG - Environmental Health and Safety Guidelines (of the World Bank) EIA - Environmental impact assessment EMP - Environmental management plan EP - Environment permit ESMO - Environmental and Social Mitigation Officer (in VPMU) GRM - Grievance redress mechanism HSP - Health and safety plan (part of the CEMP) IEE - Initial environmental examination IUCN - International Union for the Conservation of Nature LIMW - Lapetasi International Multipurpose Wharf MAQFF - Ministry of Agriculture, Quarantine, Forestry and Fisheries MFEM - Ministry of Finance and Economic Management MIPU - Ministry of Infrastructure and Public Utilities MOCC - Ministry of Climate Change, Meteorology & Geohazards, Energy, Environment and Natural Disaster Management MSMP - Materials and spoils management plan (part of the CEMP) PEA - Preliminary environment assessment PPE - Personal protective equipment PWD - Public Works Department SMR - Semi-annual safeguards monitoring report SPS - Safeguard Policy Statement 2009 (of ADB) SUMA - Special Unique Marine Areas VISSP - Vanuatu Interisland Shipping Support Project VPMU - Vanuatu Project Management Unit WMP - Waste management plan (part of the CEMP) WSS - Work safety statement NOTES (i) In this report, “$” refers to US dollars unless otherwise stated. P a g e ii | 176 Vanuatu: Interisland Shipping Support Project Simonsen Wharf – Initial Environmental Examination 0. EXECUTIVE SUMMARY 1. Background. The Vanuatu Interisland Shipping Support Project (VISSP) was approved as Loan 2820-VAN and Grant 0273-VAN on 30-Nov-11 and involved the construction and rehabilitation of seven domestic wharves and jetties (subprojects) in Vanuatu including South Paray, Simonsen, Lenakel, Litzlitz, Lolowai, Loltong and Port Sandwich. VISSP commenced implementation in 2012 but was halted in 2018 following government review of the project status which found inadequate designs had resulted in major construction delays. The review resulted in a decision to remove Lolowai and Loltong subprojects and commence redesign of the remaining five projects. 2. The Asian Development Bank (ADB) is funding the redesign (including independent design review) and construction of the Simonsen and Port Sandwich wharves through additional financing to the project. The New Zealand Ministry of Foreign Affairs is funding the redesign of South Paray (Port Vila), Lenakel and Litzlitz wharves and the ADB is funding the independent design review and construction of these subprojects. 3. Implementation arrangements. The executing agency is the Ministry of Finance and Economic Management (MFEM) and the implementing agency is Ministry of Infrastructure and Public Utilities (MIPU) supported by the Vanuatu Project Management Unit (VPMU) established within the Prime Minister’s Office. The VPMU will manage the project on behalf of MIPU and will lead design and implementation of the project. The VPMU is supported by a design consultant (DC). The Simonsen domestic wharf subproject will be implemented under one construction contract.The DC will assist VPMU in procurement (preparation of tender documents, tender evaluation) and VPMU will supervise construction with external support. VPMU will monitor the contractor’s compliance with the conditions of the environmental permit and the approved environmental management plan (EMP). 4. Policy, legal and administrative framework. The project will comply with requirements of the Environmental Management and Conservation (Amendment) Act 2010 and the Environmental Impact Assessment Regulations 2011 which requires that an environment permit must be obtained from the Department of Environmental Protection and Conservation (DEPC) before construction commences. The project will also comply with the requirements of ADB’s Safeguard Policy Statement 2009 (SPS). 5. Environmental due diligence. This report is the update of the initial environmental examination (IEE) for the construction of the Simonsen domestic wharf, originally prepared in 2011. The updated IEE is based on revised design of the Simonsen wharf. The revised design was prepared following: i) technical review of the original wharf; ii) further geotechnical, seismic and other engineering studies; iii) new design options assessment; iv) discussions with key stakeholders and confirmation of preferred option; v) marine ecological survey and assessment; and, vi) detailed design of the selected option. 6. The updated IEE is undertaken as a requirement to meet the environmental safeguard requirements of the ADB as per the requirement for a category B project as well as the requirements under Vanuatu’s country safeguard system (CSS). The IEE is submitted to ADB by the borrower and will be disclosed to the public by the VPMU and uploaded to ADB’s website. P a g e iii | 176 Vanuatu: Interisland Shipping Support Project Simonsen Wharf – Initial Environmental Examination 7. The objectives of the IEE are to: (i) assess the existing environmental and social conditions; (ii) identify potential environmental and social impacts; (iii) evaluate and determine the significance of the impacts; (iv) develop an environmental management plan (EMP) detailing mitigation measures, monitoring activities, reporting requirements, institutional responsibilities and cost estimates to address adverse environmental and social impacts; and (v) carry-out public consultations to document any issues / concerns and to ensure that such concerns are addressed in the project design. 8. Key sources of information for the IEE update include site visits undertaken in July 2019 to confirm existing environmental conditions of the site, a review of the original IEE undertaken in 2011 and findings of other relevant EIA studies that postdated the original IEE, undertaking of a marine ecological assessment based on revised design, and consultations with stakeholders and community representatives. 9. Project description. The rehabilitation of the Simonsen wharf, which is one of the shipping hubs in Vanuatu, will enable the development of domestic shipping thereby assisting passenger and cargo transfer with the outer islands and directly improving their development. As trade opens up with countries in the region, compliance to international conventions is crucial and the upgrading of the facility will have a positive impact on trade. The choices for wharves on Santo are limited with Simonsen being the only public wharf that is heavily used by all types of vessels. 10. The rehabilitation of the Simonsen wharf will require the following: • Demolition and removal of the existing sheetpile and anchor
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