43141-044: Civil Aviation Development Investment Program

Initial Environmental Examination

Project Number: 43141-044 June 2016

PNG: Multitranche Financing Facility-Civil Aviation Development Investment Program (Tranche 3)

Prepared by National Airports Corporation for the 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 of this 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.

Table of Contents

C. Initial Environmental Examinations

1. Buka Airport Initial Environmental Examination 2. Gurney Airport Initial Environmental Examination 3. Kavieng Airport Initial Environmental Examination 4. Madang Airport Initial Environmental Examination 5. Mendi Airport Initial Environmental Examination 6. Momote Airport Initial Environmental Examination 7. Mt. Hagen Airport Initial Environmental Examination 8. Vanimo Airport Initial Environmental Examination 9. Wewak Airport Initial Environmental Examination

B. EVIRONMENT SAFEGUARDS

1. Buka Airport Initial Environment Examination

EXECUTIVE SUMMARY

I. The Government of the Independent State of Papua New Guinea (GoPNG) has requested the Asian Development Bank (ADB) to provide a multi-tranche financing facility (MFF) to facilitate investments to improve the current state of the country’s domestic air transport system under the Civil Aviation Development Investment Program (CADIP). Twelve major airports have been identified for improvements under Tranche 3 due to deteriorated pavement conditions and low pavement strength to ensure that these airports are capable of accommodating the current operating aircraft or similar within a safe and secure operating environment.

II. CADIP is a comprehensive program to improve, rehabilitate and maintain major domestic airports in Papua New Guinea (PNG) so that these airports are compliant with the domestic and international aviation safety and security standards. The executing agency for CADIP is the National Airports Corporation (NAC) who owns, operate and maintain twenty-one (21) national airports in PNG on behalf of GoPNG.

III. An environmental assessment and review framework (EARF) has been prepared to guide environmental safeguards implementation for Tranche 3. In accordance with the EARF, this Initial Environmental Examination (IEE) presents the environmental assessment of one of the project under Tranche 3 – Pavement Strengthening, Runway Extension and Associated Works at Buka Airport, Autonomous Region of Bougainville, PNG. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Safeguard Policy Statement 2009 and the GoPNG Environment Act 2000. The key environmental impacts on the physical, natural and human environments have been assessed.

IV. The main findings of this IEE indicate that the impacts that will arise from Buka Airport Pavement Strengthening, Runway Extension & Associated Works will be minimal and generally insignificant as the works only involve rehabilitation and improving the aircraft pavement and associated works within the existing airport boundary for duration of 18 months. The project is classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

V. The potential environmental impacts associated with the project particularly occur during the construction and operation phases which will typically involve: (i) Earthworks and pavement works. During the conduct of earthworks and pavement works, heavy rains and the associated run-off into drains and soil erosion problems can be expected in some areas such as flight strip widening and Open Unlined Drain which may cause surface water quality problem in nearby water courses.

(ii) Pollution. Problems of pollution related to the disposal of sewage, waste fuel & petrochemical products, salvage materials, oils spillage and leakage, solid wastes generated during construction (from worker camps) and operations could occur. Temporary site contamination, dust & noise generation associated with construction, and pollution associated with firefighting drills may cause

environmental impacts.

(iii) Noise. Construction activities may cause noise impacts from vehicle movements for a short duration. Noise from aircraft is already existing and it will be intermittent and in short duration. Significant incremental increase of flight frequency is not expected. VI. Adherence to best engineering practices during rehabilitation/reconstruction and implementation of the environmental management plan will avoid or adequately mitigate all of the rehabilitation/ reconstruction-related impacts.

VII. A Grievance Redress Mechanism (GRM) set up in Tranche 1 and 2 will be used in Tranche 3 and the Provincial Administration is fully aware of its role. Public support during consultation for the project was unanimous and the community wanted the project to commence immediately as they seek possible job opportunities with contractors. The new terminal and market will provide business opportunity for women and youths to participate. Issues regarding compensation are adequately covered by the Provincial Administration.

VIII. The upgrading of the Buka Airport is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the F100 aircraft, or similar.

I. INTRODUCTION

2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the project under Tranche 3 – Pavement Strengthening, Runway Extension and Associated Works at Buka Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Sourcebook (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment.

3. The main purpose of this IEE is to identify impacts associated with the Runway extension, Pavement Strengthening and Associated Works at the Buka Airport, Autonomous Region of Bougainville and mitigation measures required to address them. Figure 1 below shows the location of Buka Airport.

FIGURE 1: LOCATION OF BUKA AIRPORT

Buka Airport

1 Project 1 rehabilitation work was under the Civil Aviation Authority (CAA) and was the predecessor for NAC.

A. Overview

4. The proposed investment program will entail the upgrading and rehabilitation of the following existing airports (Tranche 3): Madang; Mendi; Momote, Vanimo, Kavieng, Kerema, Kiunga, Tari, Buka, Gurney, Wewak and Mt Hagen. The upgrading and improvement of these major domestic airports is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the runway, taxiway and apron capability to accept unrestricted operations by Fokker 100, Dash 8 and QF 400 aircrafts.

B. Environmental Regulatory Compliance

5. The environmental regulations of GoPNG are derived from the Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects that need environmental assessment as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Projects that likely to have significant adverse environmental impact (Level 2 and Level 3) are required to obtain an Environmental Permit (EP) from the Environment and Protection Authority (CEPA) following environmental assessment. The upgrading and rehabilitation of existing airports is not listed as Level 2 and Level 3 of the “Prescribed Activities”. However certain associated project activities commonly associated with upgrading and improvement works such as earthworks, surfacing, discharge of waste water, establishment of borrow pits, sourcing and extraction of aggregate materials from surface water courses are Level 2 activities that may require an EP depending on the duration and scale of those activities. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the project to CEPA so that CEPA can decide whether any specific environmental requirements will be needed for the proposed airport upgrading and rehabilitation. Considering the government environmental requirements and ADB Environmental Safeguard Sourcebook (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

6. Pollution standards are described for the protection of marine and aquatic life in fresh and marine waters in the Environment (Water Quality Criteria) Regulation 2002. These standards will be referred to for water quality monitoring during the environmental management of the project.

C. Environmental Category of the Project

7. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Draft Source Book (2012) Tranche 3 projects are classified as Environmental Category B that requires an IEE.

D. Objectives and Scope of IEE

8. The objectives of this IEE were to:

 Assess the existing environmental conditions in the project area including the identification of environmentally sensitive areas;

 Assess the proposed planning and development activities to identify their potential impacts, evaluate the impacts, and determine their significance; and

 Propose appropriate mitigation measures that can be incorporated into the proposed activities to minimize any adverse impacts, ensure that residual impacts are acceptable and propose monitoring and planning of projects

under the third Tranche.

9. This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

10. Following this introduction this report contains seven more sections including (ii) description of subproject; (iii) description of the environment; (iv) screening environmental impacts and mitigation; (v) public consultation; (vi) institutional requirements and environmental management plan; (vii) findings and recommendations; and (viii) conclusions.

II. DESCRIPTION OF THE PROJECT

11. The current state of the airports in Papua New Guinea is inadequate to meet the increasing demand for air travel both for tourism and commercial purposes. This, in essence, presents itself as an obstacle to further economic growth and development of major regional centers in PNG and the country as a whole. The identified major domestic airports need to be upgraded and improved to meet the international standards and requirements and make it safety compliant as prescribed by the International Civil Aviation Organization (ICAO).

12. Tranche 3 projects will be the upgrading and rehabilitation of the existing Kavieng Airport in the New Ireland Province; Mendi Airport in Southern Highlands Province; Madang Airport in Madang Province; Momote Airport in Manus Province, Vanimo Airport in West Sepik Province, Mt Hagen in Western Highlands Province, Wewak Airport in East Sepik Province, Tari Airport in Hela Province, Gurney Airport in Milne Bay Province, Kerema Airport in Gulf Province, Kiunga Airport in the Western Province, Buka Airport in the Autonomous Region of Bougainville and Buka Airport in the Manus Province. Only the scope of works for Buka Airport is in Table 1.

A. Proposed Project Works

13. The Proposal is to upgrade Buka Airport to make it safety compliant as one of the regional airport that could accommodate and be suitable for the operation of Q400, ATR and Fokker 100 aircraft or similar, and for the airport to expand its role as the major domestic hub for the Province. Major upgrading works will be on the airside portion of the facility and minor works on the landside. Most of the works will be within the existing aerodrome land boundary except (Figure 2) for the runway extension that will go beyond aerodrome boundary into an undeveloped area. This area is currently used for gardening by the settlers (Figure 3). The upgrading works will commence after all detail design, scope of works and approvals have been obtained; and the contractor selected to carry out the works.

14. The construction period of the proposed activities will be 12 months. Pavement upgrading works together with fencing installation to be re-aligned to follow the additional land area required for the runway extension. In addition, the wear and tear of the runway

Table 1: List of Activities for Buka Airport

Location: Autonomous Proposed Development Works Region of Bougainville

A. Aircraft Pavements and Associated Airside Works

. Survey and setting out of works area including survey control. . Proof roll existing aircraft pavements and carry out existing pavement replacement as necessary. . Lengthen runway by 341m on southwest end to give 1900 long x 30m wide for f100 or equivalent aircraft operations. . New pavement to be surfaced with prime and three coat (10mm/7mm and sand) seal. . Construct concrete encased duct bank under runway extension (4 x 100mm dia x 35m long). . Construct 3m wide shoulders to existing runway and extended runway on both sides. . Construct new stopways and RESA at both runway ends. . Topsoil and grassing on flank area and extended end including existing 90m wide flight strip. . Widen existing taxiway to 23.0m wide with full strength compacted thickness, prime and three coat seal (10mm/7mm/sand). . Construct 5.0m wide half strength shoulders to apron and taxiway, prime and three coats seal (10mm/7mm/sand). . Apply single coat reseal with 7mm chip and sand to existing runway, taxiway and apron pavements and reinstate line markings. . Application of fuel resistant membrane on aircraft parking positions on apron. . Construct 1 nos concrete pad for f100 aircraft/dash 8-q400 aircraft parking bay. . Supply and apply aircraft pavement line marking (white/yellow) on extended pavement including all resealed aircraft pavements. . Installation of 3 nos earthing points on the aircraft parking positions. (1no f100 /dash 8-q400 and 2 nos on 2 x third airline aircraft parking position) . Existing 90m flight strip improvement . Drainage improvements on airside. . Relocate existing PAPI at SW end and conduct flight test. . Supply 120 no. Fibre glass cone markers (20 red and white, 20 yellow & 80 white). . Supply 2 no. Standard unserviceability (u/s) crosses painted white. B: Landside Works, Airfield Lighting and Electrical Works, and Associated Works . Construct New Terminal Building on existing site. . Construct power house for new Standby Generator. . Supply, install, test and commission 1 x 300 KVA Standby Generator including Electrical reticulation. . Construct New Airport Market with Security Fence and Gates with Water Tanks and Public Toilet. Provide car park and floodlights for night security. Market to be located on land adjacent to the Airport. Land to be provided free by Local people. . Construct new car park and provide floodlights for night security. Note: Allowance is made for other miscellaneous works including General and Preliminary items. pavement is self-explanatory for this importance scope of works.

15. Buka Airport upgrading will involve the following estimated materials and

earthworks quantities:  Cut to stockpile 100 millimeters (mm) topsoil for future - 7,500 m3  Spoil (excavation material) – 15,800 m3  Select fill material – 60,000 m3  Crushed river gravel sub base – 10,109 m3  26.5 mm base course – 35,000 m3  Topsoil will be used and/or be re-used for topsoil and grassing  Excavated in-situ material will be used in landscaping and/or flight strip widening and grading.  All materials will be stockpiled at a designated location on the airside.  Base-course material shall source by the selected contractor.  10 m3 trucks shall cart material from source and stockpile on site.  Contractor’s Site shall be located at the Airside (Area approx. = 100 m x 50 m).

16. The development works (Table 2), will all be confined to the limits of the proposed runway extension area.

B. Project Requirements

17. Buka is located at the southern end of the island, near Buka Passage behind the town of Buka, and pre-war Chinatown. The airport terminal is about 1.5 kilometers from the Buka Township. Its coordinate is 05o25’20’’S and 154o40’21’’E at an elevation of 11feet (3m) above sea level (ASL). It is on a 0% – 1% slope coastal plains with raised limestone further away from the runway towards the district headquarters and public servants’ residents’ location. The airport total land area of 46.3 hectares. The main runway is 1,562m long by 30m wide. Figures 2 and 3 shows the general layout plan and the aerial view of the existing Buka Airport. Figure 4 shows the proposed runway extension and the additional land required. 18. The airport started as a primitive airfield built by Australian troops during the World War 2 in 1941. Later, the Japanese bombed the airfield took over in mid-March 1942 and further develop the airfield with bitumen surfacing, an electrical power plant, underground fuel tanks, and new pillboxes and trenches. From December onwards many hulks were at the strip. In January 1944, the Allies drove the Japanese out of Buka, and the airfield was used for operations against the Japanese over New Guinea.

19. The main road from Buka town to the airport is bituminous roads except for the coronas base course feeder roads. Most road network within the town itself is currently sealed. Constant power supply comes from the main town power supply grid. Occasional blackouts in Buka also affect electrical supply to the airport facilities so the project will install a diesel power generator at the airport to maintain continuous power supply to the improved airport lighting systems and electrical appliances.

20. Buka town has reticulated water supply from nearby surface water. Some residents, government buildings and business entities also collect rainwater by tanks or drums. For the airport, Water supply into the airport hydrants and terminal facilities comes from rainwater additional reservoir tank and increase in the roofing area of the terminal building will be put in place under the runway extension project to collect adequate rain water to supply the Terminal Building facilities. The airport sewerage system is septic just like the rest of the town itself.

21. Material for the runway pavement extension work such as select fill material, crushed coronas sub base and pavement construction material will most likely be sourced locally by the appointed contractor but details are not known at this stage.

22. As for spoils which will include worn out bitumen surface, the intention is for the contractor to recycle them and have them levelled off along the edge of the aerodrome or be used as shoulders along the runway and then have top soil placed on it to allow grass regrowth and stabilization (Refined Bitumen Association, 2015). These could also be taken away to areas where the community may need to level off a depression around their residence.

23. One side of the airport boundary perimeter has been disturbed through excavation of gravel materials by locals. This continuous activity has resulted in a hug trench of about 3m wide by 10m deep. Runoffs from the airport runway close to the grave extraction trench gets collected here forming pool during heavy rain.

24. The Ieta settlement which is located close to the airport boundary will not be affected proposed runway extension area. Adjacent to the terminal area is the office and workshop set-up of the Department of Works (DOW). Aligning the DOW are scattered semi- permanent to permanent houses belonging to the locals.

25. The total annual rainfall that the area receives ranges from 1800 to 4000 mm with the highest amount of precipitation occurring during the period of December to October.

26. Current upgrading project for the airport includes installing new fence around the airport boundary. Fencing will extend to cover the proposed runway extension area.

III. DESCRIPTION OF EXISTING ENVIRONMENT

27. Buka Island is the second largest island in the Autonomous Region of Bougainville, in eastern Papua New Guinea. It is in the North Bougainville District, with the Autonomous Region's and district's capital city of Buka on the island. The island is separated by the narrow Buka Passage from the northwestern coast of Bougainville Island. On old maps it is named 'Chinatown.' The land the town occupies was formally known as Ieta. There has been considerable expansion of the city in recent years, and also in nearby Kubu, location of the Autonomous Bougainville Government Parliament, and Hutjena, the location of the national high school serving Buka.

28. The island was occupied by Japan during World War II. Although the island was strafed and bombed by allied air forces, allied armies never fought in Buka. The Japanese surrendered when the Allies were approaching the Selau peninsula in nearby Bougainville

29. The island is divided into five Autonomous Bougainville Government electorates:  Haku  Peit (covering the West Coast and Solos)  Halia (from Tohatsi to Hahalis),  Hagogohe (from Salasa to Sing)  Tsitalato (from Lonahan to Buka Passage). 30. Each of these electorates has its own local government, known as Councils of Elders.

31. Buka is a relatively flat island some 52 kilometers long in the north-south axis, and up to 18 kilometers wide in the west-east axis. It is separated from Bougainville by the Buka Passage, a narrow, deep and very fast flowing tidal channel about 200m wide. The east coast is the windward side for most of the year, and is characterized by a coastal cliff that rises close to the ocean, leaving only a narrow and often rocky beach. A coral reef rings the entire island, it is narrow on the east coast, which is battered by oceanic winds and large waves; it spreads out into lagoons on the west coast.

32. Along the western coast there is a small mountain range, named the Richard Parkinson Range, after the German planter and explorer. The highest peak in this range is Mt. Bei, which is 458 metres (1,503 ft) in elevation. The range runs between Buka and Carola Harbour.

33. The economy of Buka can be divided into a very small urban component and the village sector. The village sector is characterized by subsistence farming, primarily of sweet potato as a staple, and the production of copra and cocoa as cash crops by family-sized units and small cooperative work groups. Vanilla and tropical spice crops have made a halting progress, and remain very minor sources of income for villagers.

34. The urban sector at Buka Passage includes the Bank of South Pacific, CPL (which purchases cash crops), Agmark, and these are based in the Buka Passage. There are also a number of other small businesses on the island.

FIGURE 2: AERIAL VIEW OF BUKA AIRPORT

Settlement Scattered garden plots

Coconut plantation Town residences Buka Town Buka Airport

Coconut / Cocoa

Terminal Facilities

Buka passage CoastalShoreline

FIGURE 3: PROPOSED RUNWAY EXTENSION

A. Physical Environment

35. Land Resource and Utilization. Most of the area around the airport is occupied with coconut plantation and cocoa plots owned by the locals, the Ieta. The coastal plain at both ends of the runway is mainly covered with swampy and scattered garden areas. At the terminal side is well developed with small stores, houses, guest houses, and a mini market.

36. An area at the opposite side of the runway but outside of the airport area is occupied by settlers. A few government and formal workers who have not been allocated housing have built their houses or rented houses where the settlement is.

37. The indigenous population is primarily involved in subsistence agriculture, practicing a ‘bush-fallow’ form of short rotation, shifting cultivation. The proposed runway extension area has scattered gardens of taro, sweet potatoes, banana and greens. No settlers are located there (Annex B).

38. Meteorology and Climate.PNG is in tropics experiencing northwest monsoon from December to March and the southeast monsoon from May to October. Buka is hot all year round, and the airport temperature ranges from 350 (day) and 25oC (night). Humidity is high at all times given its close proximity to the equator and can expect 70 – 90% while a lesser percentage in the evening. The dry season lasts from May to November, associated with the south-east monsoon.

39. Wind speed is about 15km/h and to a low of 5km/h. More than 50% changes of precipitation with likely cloud cover, showers and thunderstorms can be expected in the evening.

40. In PNG current weather patterns may indicate the types of impacts that could be expected to occur as a result of major climatic change (global warming). One example was the serious drought that affected much of the country in 1997-1998, which was linked to the large-scale El Niño/La Niña weather phenomenon. Other types of natural disasters including extreme rainfall events, drought, high sea levels, extreme winds and extreme air temperatures already affect thousands of people in PNG, and may further intensify or become more frequent with global warming. 41. The current runway pavement will be raised and a proper drainage system constructed along the open unlined drains parallel to the runway to cater for rise in sea level. 42. Topography, Geology and Soils. The airport is on the lowland coastal plain and it could be prone to tidal influence and this may place pressure on the foundation of the airport pavements. The airport area soil type is dominated by volcanic ash soils and foraminiferous limestone. Areas at 10 meters away at both end of the runway is volcanic soils which is poorly drained and either periodically inundated or permanently swampy.

43. Mineral Resources. The Panguna mine on Bougainville commenced in 1972 and, when operations were suspended in 1990, it was in the top tier of copper and gold producers. Rio Tinto is a major shareholder of the mine, Bougainville Copper Limited - BCL (54%), and is keen to reopen the mine. The deposit still has a life of mine of 20 plus years and has a capacity to produce 180 000t of copper and 480 000 oz gold per year, from a resource of 1.06 Bt 0.33 % copper. (PNG Minerals Resources Authority, 2015).

44. The mine is 200km to the southeast of the airport. There is no mineral or associated activity in the vicinity of the Buka airport.

45. Surface and Ground Water Resources.The few larger rivers on Buka island flow from

headwaters in the island's interior. The largest is the Gagan River. The rest of the island is a large raised limestone formation. It rises 10 meters (33 ft) inland, and 70–100 meters (230–330 ft) along the cliffs at the eastern coast. The cliffs respond to the reef of an ancient lagoon.

46. The limestone morphology means that there is very little surface water available throughout most of the island. This poses a problem for the island's residents, especially during the dry season, when water is collected by villagers from 'kukubui' springs along the foot of the cliffs. Buka airport water supply comes from the rainwater which is collected in the water tanks and supplied to the terminal facilities. The airport pavement upgrading will include supply of larger capacity tanks and improvements to terminal roofing area to capture more rainwater to adequately sustain the airport facilities

B. Biological Environment

47. Forest Resources. Buka is covered with vast evergreen tropical forest in most areas. There is a great potential for the logging industry to contribute towards the growth of the provincial economy. Although most of the primary forest would have been cut and secondary species such as the African tulip (Spathodea campanulata) or Stik Masis in Pidgin and rain trees (Samanea saman).

48. Buka Township including the airport area is well developed without any forest covered within the 100m radius of the township. The area of proposed runway extension has no forest cover.

49. Marine Resources. Coral reefs abound in the sea around Buka Island. They are best developed in the coast of Buka; here fringing reefs, patch reefs and discontinuous barrier reefs and coral island occur. Fisheries (Marine and freshwater) is abundance in the waters of Buka. No commercial fishing activity or cannery is going on at the moment in Buka. People indulge in subsistence fishing. There is a potential to develop fisheries in Buka in order to reach local, national and international market. The airport is 300 m off the coast although the extension will not impinge in the coastal shoreline.

C. Social-Cultural Environment

50. Population and Demography. The average population density is about 12 people per square kilometers, making PNG the country with the lowest density in the Pacific region. Average density in this case is very misleading as there are great differences between provinces. Bougainville has a population of 175,160 with a population density of 18 -19 persons per square kilometers. Life expectancy is in PNG is 57 years and the adult literacy rate is approximately 65 % (2001 figures). The prediction of a doubling of the population in less than 30 years (ADB 2005) with potential extension of life expectancy will greatly increase the pressure on current land and natural resources with attendant environmental impacts.

51. Majority of the population is indigenous. Villages are scattered throughout most of the area, but much of the mountainous interior is un-habited. Majority of the inland villages are situated on tops of ridges. The provincial economy is largely a subsistence economy but is generally supplemented by cash crop farming such as coconut and copra.

52. Today the overwhelming majority of Buka are Christians, divided into a Roman Catholic majority and a large minority of United Church (Methodist), as well as many different Pentecostal and evangelical sects.

53. Cultural and Historical Sites, Schools and Housing. The main island of Buka is occupied by two distinct language groups, Solos and Halia. The latter is split into two dialects in Buka Island: Hanahan- Halia spoken along the east coast from Buka Passage (known locally as

Ieta – airport surrounding communities) to Tohatsi and Haku, spoken in the north coast villages. 54. Chiefly system is still practiced in Buka for both male and female. The society is matrilineal with female becoming the next of kin in a family property, belongings and land. However, chieftainship is inherited positons of authority for men. Traditionally, women chiefs have little overt authority, although they are extremely well respected. Women have a sacred value, rather than secular power. This is changing somewhat under the influence of Non- Government Organizations (NGOs) and Civil Service Organization.

55. Most often cultural difference and language diversity often possess a challenge in interpretation, understanding and communication of information, mobilizing community support for local participation in infrastructural development such as the airport upgrade.

56. There are no sites of cultural significance found near the area of the proposed development. Only a settlement and local houses situated outside of the airport boundary.

57. Health and Sanitation. The greatest health concern in PNG is Malaria followed by pneumonia, accidents and injury, chronic respiratory disease and maternal death. AIDS/HIV has been a disease of possible epidemic proportions although the inaccurate data do not provide total prevalent figures between the target age group of 25 -34 in males and 20 – 34 in females. The highest occurrence of AIDS/HIV has been in Western Highlands, West Sepik, Western, and Morobe Provinces and the NCD; areas where population concentration and pressures on the natural environment are highest. Vulnerable groups include women, sex workers, youth, the poor, and workers in industrial enclaves (mining camps, factories, etc.).

58. Buka town has a General Hospital to attend to outpatients and emergencies. Pharmaceutical and medicine is also supplied by the local City Pharmacy apart from the Hospital. The whole town has water supply while some residents are completely reliant upon rainwater harvesting for drinking water supply. Sanitation practices are centered on septic tanks and a percentage of “night-soil” collection from buckets. IV. SCREENING ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

59. This section provides an assessment of the likely impacts associated with the pavement strengthening and associated works and ways to mitigate and/or manage them. The works will not result in any significant changes in environment beyond the airport boundary. The assessment focuses on pre-construction, construction and operational stage impacts.

A. PRECONSTRUCTION

60. A number of activities will occur during the preconstruction phase where there is (i) the Establishment of Contractors Site and Facilities, (ii) Constructions Workers Accommodation and (iii) Stockpiling of Construction Material.

61. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities.

62. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public Relations Officer is tasked to ensure that these do not occur.

1. Establishment of Contractors Site and Facilities

63. The contractor’s work site establishment (inclusive of stockpiling) will be located outside of the airside and require an area of approximately 100 m x 50 m. Inappropriate disposal of wastewater and effluent from rest room and solid waste can cause pollution. Pollution anticipated to be generated during construction is expected to include day-to-day production of solid waste, domestic sewage, and oil and chemical wastes. The storage and handling of petro-chemicals will require careful management; an important part of the environmental management plan (EMP) will be requirement for an emergency response plan for spills and accidents.

64. The contractor’s depot area and yard/offices will be provided with sanitary disposal facilities that will address the generation of domestic wastewater and proper solid waste management. Silt traps shall be established around areas identified for clearing and drainage works to prevent siltation of any surrounding waters. During the pre-construction and construction period an adequate supply of an appropriate quality of water will be provided for both domestic (for the contractor’s depot area) and other purposes (construction activities i.e. concrete mixing, clean-up of machineries and washing of trucks). Mitigation measures include:  Restricting the contractor to a single, pre-planned construction site;  Requiring the contractor to install a septic tank or mobile toilets (if not connected to the main sewerage system) of adequate capacity;  Establishing mechanisms for grey water to be managed according to site conditions;  Requiring that all lubricants be collected, stored correctly and recycled;  Ensuring that the contractor has a spill contingency plan including drainage/settling pond control, bunds-drainage around fuel and storage areas;  Provision of receptacles for rubbish and rubbish to be disposed of at approved site;  Banning of burning of rubbish or waste permitted at yard or work site; and  Provision of complete and proper PPEs to workers

2. Construction Workers Accommodation

65. Establishment of contractors’ camp site will also comply with mitigation measures of waste management. Otherwise, contractor will rent a small compound for the skilled staff (10- 15 persons) recruited for the construction works such as the Pavements Supervisor and Foreman, Mechanical Supervisor and Plant Operations Supervisor, etc. All other skilled and unskilled personnel which are estimated at 30- 40 persons shall be sourced locally and would not require housing in campsite.

3. Stockpiling of Construction Materials

66. The development works (i.e. pavement strengthening, flight strip widening, construction of shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and lying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the contractor’s environmental management plan (CEMP) with cleanup initiatives undertaken as required. Mitigation measures include:  Transportation of materials to be limited to short periods to minimize traffic disturbance;  Transportation to be only during the dry days when unsealed roads are strong and also to lessen impacts on nearby residences, run-off and soil loss;  Water trucks to be on standby to water-down dust generated from unsealed roads

during transportation of materials.  All stockpiled materials to be adequately contained in a bund type of structure to minimize run-off and covered to minimize dust; and  Locate all stockpiled in controlled areas away from water bodies including nearby residential areas.

B. CONSTRUCTION

67. The Constructions phase has a number of activities or induced activities such as (i) Clearing and Grubbing, (ii) Pavement Construction, (iii) Building Construction, (IV) Storage and Handling of Fuel, Oil and Other Chemicals, (V) Health and Safety, (VI) Social Impacts, (Vii) Noise impacts and Air Quality and VIII) Traffic Impacts.

68. All these activities will be confined to the construction area and physical and biological impacts will occur within the shrubs and trees that will be cleared for the new terminal and market buildings. There is the possibility of fuel, oil and other chemicals that will into the water ways although there is no noticeable water way in the vicinity of the construction area. The limestone substrate allows for runoff to permeate through.

69. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the Environmental Management Plan.

1. Construction Activity

70. Clearing and Grubbing. All grubbing of topsoil, clearing of grass areas and trees/shrubs, old fences and culvert materials clearance will require stockpiling in controlled areas during construction. All topsoil, grass and culvert clearance will be cleared and stacked to edges of the fenced area to allow for re-vegetation or taken to designated sites for reuse. Exposure of soil can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation and management measures include:  Removal of only necessary trees/shrubs as indicated or marked by the project implementation unit (PIU);  Topsoil, grass and spoils resulting from old fence/culvert clearance material clearance to be re-used where possible to provide landscaping in terminal and parking areas; and  The removal of topsoil followed by placement of base coarse material quickly to prevent soil erosion.  Installation of sedimentation controls in drains 71. Pavement Construction. Excavation and disposal of the existing pavement can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. All construction spoils including solid and coal tar wastes and empty containers from the work areas should be removed from site and transported to the public waste disposal area. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation measures include:  Locate stockpiles in controlled areas;  Sub-grade and sub-base material placed quickly after removal of topsoil;  Plan construction work during dry season; and cease work during rain  Removal of spoils and construction debris.

 Disturbed areas re-vegetated immediately after earthworks completed and/or sealed;  Processing and stockpiling of bitumen and aggregate to be in designated area;  Materials to be stored in bounded area for duration of works;  Drainage controls applied during construction; and  Implement all measures for storage and handling of fuel, oil and chemicals. 72. Building Construction. Building construction such as airport terminal and NAC staff house will commence upon completion of the sub-ground service activities. Building construction shall occur in concurrence with runway pavement upgrading. Mitigation measures include:  All building material confined in a single secured area;  All building material, waste materials to be arranged in classification/order and stored in appropriate location;  Concreting to be performed after foundation framework is in place;  Excess concrete from drum and concrete chute to be cleaned at designated contractors’ site; and  Solid and liquid waste associated with the building construction to be taken to municipal waste dumpsite.

2. Storage and Handling of Fuel, Oil and other Chemicals 73. The use of equipment and plant during the works will require usage, storage and handling of fuel, oil and other materials. Subsurface water resources near the selected subproject road sections could be anticipated to be contaminated by fuel and chemical spills. The following mitigation measures are included in the EMP to reduce the levels of impact associated with such effects:  Installation of oil and water separators, and traps on drains;  Development of safe storage areas (including bunds) and proper handling of hazardous and toxic materials;  Proper disposal of hazardous and toxic materials;  All vehicles, equipment and appurtenant facilities will be properly maintained during the works to reduce the risk of oil or fuel leakage;  Collect and recycle petroleum products;  Construction of bund walls and drainage systems around fuel storage areas; and  Contractor to prepare spill response plan/measures.

3. Health and Safety 74. During construction activities, work sites, traffic, and operation of equipment, plants and vehicles can pose health and safety risks for workers and the community. Health and safety codes of PNG and World Bank Group’s Environment, Health and Safety Guidelines (as per the SPS) will apply at all sub-project sites. Measures to mitigate risks include:

 Workers shall be provided with appropriate personal protective equipment (PPE) such as safety boots, helmets, gloves, protective clothes, dust mask, goggles, and ear protection at no cost to the workers;  Provision of potable water supply in work locations;  Establishment of safety measures as required by law and by good engineering practice and provision of first aid facilities; and  Adhere to relevant Industrial Safety, Health and Welfare Act or guidelines of GoPNG, International Finance Corporation and World Bank.

4. Social Impacts during Construction

75. The presence of a construction workforce can create social impacts such as risk of spread of communicable diseases (such as STIs and HIV) and create social disruption as a result of conflicts between workers from outside and local people. The workforce required for the pavement construction and associated works will be relatively small but wherever possible local people should be employed. 76. The contractor for Buka airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Buka return to their original place of residence to avoid impacts from informal migration.

5. Noise Impacts and Air Quality

77. Air and noise pollution may be created by earthmoving, operation of heavy equipment and plant, transportation of materials to and from the site, and general works in the dry season generating dust and exhaust fumes such as Carbon Monoxide.

78. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Buka airport is aligned parallel to the town of Buka and is 0.5km from the Provincial Administration Headquarters up on the Buka Hill. The traffic to and from the road to the airport is a busy one and vehicles use this road into Buka town and to connect to the ring road around the island. The airport road is nearby sensitive receivers (schools) with residential areas around the airport. The impacts can be reduced to negligible levels by:  Controlling speed of vehicles transporting materials to work areas;  Maintaining and regularly checking serviceability of vehicles;  Vehicles and equipment to be switched off (rather than idling) when not in use;  Works undertaken during daylight hours. No noisy activities undertaken at night or on public holidays; and  Vehicles transporting loose materials and stockpiles to be covered with canvas. Work site and vehicles to be watered-down if generating dust. 6. Traffic Impacts

79. The need to transport materials to and from the site can cause traffic congestion if not managed properly. The contractor shall be required to prepare a traffic management plan as part of the EMP to demonstrate how construction traffic can be handled during the works in order to minimize impacts on transportation networks in the vicinity of the sites.

C. OPERATIONAL

80. At the completion of construction work, all materials will be removed or disposed of and

the completed works will be in place. The only impact during the operational phase is the noise impacts which will be for the duration of approaching and landing aircrafts.

81. Operation Stage Issues. Aircraft noise emissions, whilst considered only a minor issue at present, can increase with increasing flight frequency in the future operation of the airport, and need to be proactively managed. The problem can mostly be ameliorated by the careful location of ground running, and by the times these activities are undertaken. Occupational and residential exposure to aircraft noise is expected to increase over time; however, the noise impacts will only be for very short duration during aircraft take-off and landing only. It is not a concern for the contractor at this stage.

82. Aircraft ground operating noise will require management negotiated agreements between airlines, NAC and the local communities on times, frequency and locations of operations. Noise from aircraft in flight requires addressing in the context of the EMP such as plants locate plant s away from aircrafts parking/approach area. NAC must prepare, regularly update and promulgate noise exposure forecasts in accordance with the ANZECC 1992 or Australian Noise Exposure Forecast. This shall be NACs operational matter.

83. NAC, airlines and other aviation operators will introduce, under the Civil Aviation Regulations, a formal Safety Management System. For all airports, this will address both temporary safety risks during construction, and ongoing safety risks during normal operations. This system will also address management of environmental impacts of accidents and safety management processes.

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

84. As required by the Environmental Guidelines of the ADB and the SPS and ADB’s Public Communications Policy (2011), Focus Group Discussions (FGD’s)/Public Consultations were carried out separately with about 7 residents of 3 settlers and 4 local residences of Ieta, Buka Urban Local Level Government (LLG). Consultations were held with executive staff of Provincial Administration. Consultation was done on 2nd and 3rd of October 2015. Table 2 displays the details for the consultations and number of participants (by male and female) for the meetings. The main issues raised and response to those issues or concerns follows this section (Refer Annex B, Photographs).

Table 2: Consultations for Buka Airport

Date: 2/10/2015 – ABG Provincial Administration Names Position James Torowa Executive Officer to the Chief Administrator – Autonomous Region of Bougainville Government (ABG) Date: 3/10/2015 – Settlement and nearby residences of airport Names No. of participants Position Margaret Kukupe X 4 kids+ 2 grand Nursing sister Abel children Local residence Apoki Mawava Settlers Aaron Misirari X 3 family members; 1 Self-employed, local residence Jeffery Nogo kid Employed with works department, local Harry Tua X 4 kids residence Margaret Ben Settlers X 6 kids Settlers

X 6 kids

X 4 kids Total: 7 persons 28 persons = 37 persons

85. There are no village communities around the immediate proximity of the runway extension area. Only settlements and residential areas. Hence, consultations were not considered beyond the airport extension area. There is also the possibility of potential issues such as locals’ intention to subcontract in the project, arising from individuals and communities outside of the airport area is consulted. The act of consultation will raise expectation and demands simply because it does not focus on certain group as in a village community. Similar arrangement will be carried out in the other provinces.

86. Any claims of landownership and crops compensation will be will be addressed through the Autonomous Bougainville Government. While land on which the settlers are residing is owned by the Leta people of Buka, they would like to be made well aware of the developments that are happening close to their houses. In that way, their houses crops and fruit trees planted could be compensated if they are asked to move.

A. Issues Raised and Responses

87. All the consultation was fruitful with unanimous support from all stakeholders consulted. Some of the issues raised relevant to the proposed development are as follows;  Buka airport is declared aerodrome land. NAC is the custodian of the land for aerodrome purpose.  Clams of landownership shall be addressed through the Office of the Provincial Administrator whilst awaiting the formation of the Grievances Redress Mechanism established through a Working Committee with ABG.  Grievances Redress Mechanism (GMR) for the Project will be represented through a working committee to be established within the ABG.  Possibility of subcontracting to the main contractor by established local contractors  Construction of a mini airport market for local women folks.  NAC shall prepare notice to owners of structures and gardens that are anticipated to be affected the proposed works to vacate and make way for the works. ABG will assist in ensuring the Notice is adhered to.  The concern of ABG and NAC is to install proper airport fence to stop trespassing and also to comply with airport operations safety and security.  ABG Support is indicated for the project implementation.

88. Settlers have raised concern on trespassers who cross the airstrip and often they are accused of these crossings. The erection of the galvanized fencing has stopped trespassing onto the airfield which is a safety concern for operating aircrafts.

89. Provision of employment and livelihood opportunities during the construction and operations phases of the project. The residents of the Kapiak compound reiterated that they are available for employment opportunities at all phases of the project implementation.

90. These concerns and other points of view have formed part of the basis of this IEE, supplemented as necessary by the consultants ‘own observations. The participants of the Public Consultation were unanimous in their support for the proposed development and will not interpose any objections to its implementation.

B. Information Disclosure 91. In disclosing the environmental documents to the public, (i) NAC through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B-sensitive project, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC-PIU will consult the public, particularly with project affected persons.

92. Disclosure of relevant environment safeguards documents will be in an appropriate form, manner, and language and at an accessible location to be understandable to the affected people and local stakeholders. During Tranche 1 & 2, NAC established arrangements with provinces for coordination with a Project Coordination and Monitoring Committee (PCMC) and/or through the office of the Provincial Administrator (PA). Same procedure will apply for Tranche 3 projects.

93. A PCMC is set up within respective provincial administrations and this committee will oversee all concerns and grievances from the local communities and affected parties. Some Provincial Administration prefers a committee to be established with the Provincial Administration through the Office of the PA. For MP, this is set up through the Provincial Administrator, supported by the Provincial Lands Officer, District and Local Level Government Officer and other resource and service departments such as Agriculture and Livestock and Customs. In the villages, councilors are the linkages between the Local Level Government and their Wards and they deliberate on issues. This forms part of the grievance redress mechanism (GRM) as explained in Section G.

94. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to affected persons and communities regarding the requirements for land acquisition & Resettlement (LAR) and GRM.

VI. GRIEVANCE REDRESS MECHANISM

95. A GRM was established for CADIP during Tranche 1 and Tranche 2. The GRM to be implemented for Tranche 3 will reflect the steps and procedures already established but modify them to account for lessons learned. The GRM is a procedure for addressing environmental and social/land issues and concerns that may arise. During the course of the project it is possible that people may have concerns with the project’s environmental performance or social/land issues including the implementation of the project. Issues may occur during construction and again during operation. Any grievances dealing with construction and again during operation will need to be addressed quickly and transparently, and without retribution to the affected persons.

96. As noted in the previous section, NAC has an arrangement with provincial administrations through which grievances can be addressed. While NAC may have safety officers and operational managers at the Tranche 3 airport projects, they cannot be given the full responsibility of having to address grievances. They can however, only note and report to Provincial Administrations as partners in the provinces and/or through (i) an airport working committee, or (ii) the Provincial Coordinating & Monitoring Committee (PCMC). The airport working committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant

Intra-Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

97. Where there are affected people for any airport development work, a grievance redress mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

98. Papua New Guinea Land Disputes Settlement Act establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process is established involving airport working committee/PCMC and appropriate community leaders and representatives. The NAC person on site such as a Safety Officer or the Operational Manager will be the first person to be contacted who will then liaise with airport working committee/PCMC to register, clarify and mediate potential issues.

99. The GRM will apply equally to the contractor who will be required to maintain a complaints registry recording complaints or issues raised and how they have been resolved. The registry will be subject to monitoring as part of Contractors’ Environmental Management Plan (CEMP) compliance checks.

100. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:

101. The mediator must meet with the disputing parties to resolve grievances within 2 – 14 days;

102. In the event of grievances over compensation claims that cannot be resolved through mediation at the local level, the airport working committee/PCMC and Provincial Lands Officer will hold the compensation amounts in trust and

103. Compensation will be paid in full upon final resolution of the case in the courts or other forum such as the Alternate Dispute Resolution process in accordance with the entitlements of the affected person. This must be completed within three months.

VII. ENVIRONMENTAL MANAGEMENT PLAN 104. Mitigation measures, environmental monitoring, and capacity development are required to minimize the environmental impacts in the design, construction and operational phases. The EMP provides the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate with the project’s impacts and risks). It will be necessary to update the EMP during the detailed engineering design phase. A condition of the proposed loan will be the adoption and enforcement of a CEMP to mitigate negative impacts associated with airport improvement activities. The EMP matrix developed to cover the expected impacts for the pavement strengthening and associated works at Buka Airport is provided in Table 3.

A. Institutional Arrangements

105. The overall MFF program will be oversight by a steering committee. The executing agency of the MFF Program will be the NAC. The PIU will be responsible for daily management and implementation of the projects comprising Tranche 3.

106. The NAC, through the PIU, will be the main agency/entity responsible in coordinating the implementation of the Environmental Assessment and Review Framework (EARF). This will include, but not be limited to;

107. NAC will submit the categorization environmental assessments, and monitoring reports to ADB for review in a timely manner. Table 3 provides the responsibilities and authorities of key organizations involved in the implementation of the EARF.

108. The PIU is staffed with the national Environmental Officer (EO) and be supported by an International Environmental Specialist (IES). The IES will be part of the NAC during the Project with the primary tasks to: (i) strengthen the environmental management of the Project during detailed design, bidding process, contract process, construction, and implementation, (ii) provide induction training to contractors prior to preparation and submission of the CEMP for each subproject. Provide assistance to EO and PIU for review and clearance of the CEMPs; (iii) supervise/monitor compliance with the approved CEMP of each subproject; (iv) undertake the necessary institutional strengthening including on-the-job training for the EO of NAC-PIU by giving major tasks to the EO in all of these activities under IES supervision; (v) prepare reports on environmental safeguards activities as required; and (vi) update the EARF and supervise and guide the environmental assessment process for projects to be implemented in the Tranche 3 as part of the PFR.

B. Task of Implementing Agencies

109. NAC-PIU. Table 4 sets out the Institutions responsible for implementing Safeguards Requirements in CADIP Tranche 3. NAC being the Executing Agency (EA) has the primary role of ensuring the Safeguard Measures and Issues are adequately covered. The Environment Officer (EO) is the focal person in providing feedback to environmental and social issues raised during the construction and operational phase of the project. He will be assisted by the International Environmental Specialist on an intermittent basis. On the ground in Buka, NAC’s Safety Officer will oversee daily operations of activities and can notify the EO of serious environmental noncompliance and the EO will visit to remedy the complaint.

110. ADB. ADB through the Papua New Guinea Resident Mission will provide guidance as to the submission of periodic monitoring reports from NAC that would meet ADB’s standards and guidelines before these are uploaded onto ADB website.

111. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the monitoring and progress of the project as per loan covenant.

112. Contractor. The Contractor is to submit a Contractors Environmental Management Plan (CEMP) for approval by NAC and ADB on the mitigation measures that it will take in the implantation of the project. This CEMP will be approved and used in the submission of regular reports to NAC who will submit to ADB for perusal and approval.

113. CEPA. CEPA as the overseers of the Environmental Act 2000 will be updated on the

submission of this IEE and its coherence with similar categories which is an Environmental Inception Report. This will be noted and assessed for compliance and under new fee arrangements the NAC may be liable for an assessment fee leading to a permit for the sub project.

Table 3: Constructional and Operational Environmental Management Plan

MITIGATION INSTITUTIONAL MITIGATING MEASURES SIGNIFICANCE OF EFFECTS COSTS RESPONSIBILITY LOCATION POSSIBLE EFFECTS NOT SMALL MED MAJOR A. IMPACTS DUE TO AIRPORT LOCATION 1. Disruption of Surface

Water a. Changes in hydrological Airports and i) Impairment of aquatic ecology i) Dimension of drains X X NIL PIU/EO regimes surrounding areas ii) Drainage disrupted ii) Diversion of stream X NIL PIU/EO iii) Drinking water source iii) Use of grassed areas for runoff NIL PIU/EO Downstream from i) Impairment of aquatic ecology i) Location of stockpiles on paved areas X X NIL PIU/EO b. Pollution as leaking from construction areas ii) Drinking water source ii) Removal of stockpiles after construction NIL PIU stockpiles and spoils iii) Re-vegetation after construction NIL 2. Disruption of groundwater a. Changes in hydrological Airports and i) Impairment of yields X NIL PIU regimes surrounding areas b. Pollution by spoils Downstream from i) Impairment of drinking water X NIL PIU leachate construction areas 3. Changes in nearby land Surrounding areas I) Increase in vicinity of Airport X NAC/PIU values and nearby villages 4. Loss of aesthetics Vicinity of Airports i) Loss of aesthetic value of land i) Landscaping and re-vegetation X USD10,000 Contractor/PIU B. IMPACTS DUE TO DESIGN 1. Slope erosion Airport vicinities I) Installation of silt traps on all drains X Contractor/PIU i) Siltation of rivers affecting hydrology and water quality USD5,000

2. Human and Downstream of i) Pollution of surface and i) Installation of oil and water separators, and X USD10,000 Contactors/PIU chemical waste Airport sites groundwater resources traps on drains ii) Development of safe storage areas and proper handling of hazardous and toxic materials iii) Proper disposition of hazardous and toxic materials iv) Connection of Airport to main sewer line or construction of proper septic tanks of adequate capacity

C. IMPACTS DURING CONSTRUCTION 1. Sediment runoff Downstream of 10 Damage to aquatic/marine X USD10,000 Airport sites and ecology and/or flooding issues i) Locate stockpiles in controlled areas waterways ii) Sub-grade and sub-base material placed quickly after removal of topsoil

iii) Planned construction work during dry season iv) Removal of spoils and construction debris 2. Safety of workers Airport sites i) Hazards to worker’s health and X Contractors/PU safety i) Construction methodology under control of Safety Officer and CSC USD3,000 ii) Approved Contractor’s Occupational Health and Safety Plan

3. Communicable i) Risks to worker’s health i) Contractor to source labourers and workers X NIL Contractors/PIU disease hazards from the nearby villages Airport site and adjacent villages and settlements

4. HIV and other Airport site and i) Risks to worker’s health X X NIL Contractors/PIU communicable adjacent villages ii) Risks to residents NIL Contractors/PIU i) Contractor to source labourers and workers diseases and settlements from the nearby villages

ii) Contractors to increase awareness of workers

POTENTIAL SIGNIFICANCE OF EFFECTS MITIGATION INSTITUTIONAL L OC ATI ON P OSS IBLE EFFE CTS MITIGATING MEASURES IMPACTS NOT SMALL MED MAJOR COSTS RESPONSIBILITY 5. Slum creation Airport sites i) Slums forming in construction sites after i) Demolition of structures as part of X USD10,000 Contractors/PIU risks completion of works abandonment plan 6. Cultural Airport site and i) Social disruption i) Contractor to source labourers and workers X NIL Contractors/PIU differences adjacent villages from the nearby villages risk/social conflicts and settlements 7. Escape of Airports vicinities i) Health risks to residents of nearby communities i)Installation of oil and other traps on drains X NIL Contractors/PIU hazardous materials /villages ii) Development of safe storage areas and (cost included

proper handling of hazardous and toxic in materials item C. 2.) 8. Increase in levels Airport site and i) Health risks to workers and i) Locate Ancillary Facilities away from X Contractors/PIU of Total Suspended adjacent villages residents of nearby villages and residential and settlement areas USD15,000 Particulates (TSP), and settlements communities ii) Provide workers with Personal Protective SO2 and NO 2 Equipment (PPE) 9. Noise Pollution Airport site and i) Health risks to workers and X NIL Contractors/PIU i) Control vehicles speed in work areas and adjacent villages residents of nearby villages and (cost included sensitive locations and settlements communities in ii) Locate Ancillary Facilities away from item C. 9.) residential and settlement areas iii) Provide workers with Personal Protective Equipment (PPE) 10. Water pollution Ancillary facilities Ii) Contamination of nearby water i) Proper solid waste management system to X Contractors/PIU from domestic courses and land be practiced in work areas USD5,000 sewage and wastes 11.Ground and Ancillary facilities i) Damage to surrounding areas i) Collect and recycle petroleum products X Contractors/PIU water contamination from improper handling of ii) Development of spill contingency plans from oil and grease materials iii) Construction of bund walls and drainage USD15,000 systems around fuel storage areas 12.Disruption of Nearby settlements i) Disruption of services I) Investigate limits to required services and X NIL Contractors/PIU utilities minimize disruptions 13.Increase in traffic Surrounding areas i) Traffic congestion in major i) Prepare traffic management plans X NIL Contractors/PIU

D. IMPACTS DURING OPERATION AND MAINTENANCE 1. Noise nuisances Nearby settlements i) Noise pollution i) Establishment of buffers between airport X NAC/PIU/ CEPA and nearby settlement areas ii) Preparation of operational procedures by USD15,000 Airport Operator based on ANZECC 1992 or Australian Noise Exposure Forecast (ANEF). 3. Water pollution Downstream of i) Contamination of surface and i) Proper handling, storage and disposal of X NIL PIU/ CEPA Airports groundwater resources petroleum, hazardous and toxic materials ii) Development of spill contingency plans 4. Air pollution Airport vicinities i) Health hazards and nuisances i) Regular monitoring of air quality in the X PIU/CEPA USD15,000 to nearby villages and settlements vicinity of the airports and sensitive receptors 5. Increased traffic Airport vicinities i) Traffic congestion in major i) Preparation of Traffic Management Plans NIL PIU/Local and roads Government Units major roads into the Airports

Table 4: Institutional Responsibilities for Implementing Safeguards

NAC –Project During the implementation of civil works, the NAC will: Implementation Unit (PIU)  Ensure that a contractor’s environmental management plan Environment Officer (EO) (CEMP) including all proposed mitigation measures and and International monitoring programs and relevant provisions of the environmental Environmental Specialist assessments is updated as required, and is properly implemented (IES) by the contractors.  Monitor the implementation of CEMP and present the monitoring reports to ADB.  In case unpredicted environmental impacts occur during project implementation, inform ADB, review the CEMP with the contractor, and implement alternative environmental mitigation program.  In case a subproject changes in scope, inform ADB and reconfirm the environmental classification, determine whether a supplementary IEE or EIA study is required, and carry out the study including the requirement for information disclosure and public consultation;  Submit the requisite reports on progress with social and environmental compliance and implementing the CEMP as required by the CEPA and ADB.  Ensure that ADB be given access to undertake environmental due diligence for all project. However, the NAC will have the main responsibility for undertaking environmental due diligence and monitoring of the entire project. The due diligence report as well as monitoring reports on CEMP implementation, as required, will be systematically prepared and be made available to the public, if requested ADB During the implementation of Tranche 3, ADB will:  Regular reviews and approval of subproject IEEs.  Provide technical guidance to the NAC as needed.  Reviewing regular monitoring reports and officially disclosing the summary environmental assessments for selected project (Category A and B sensitive) on the ADB website.  Review environmental assessment reports as a basis for subproject approvals. Disclose assessments of category A project, and category “B sensitive” project for 120 days via ADB websites (as required) before a PFR is submitted to ADB.  Monitor the EMP implementation, as required, and conduct due diligence as part of MFF reviews.  Provide assistance to NAC, if required, in carrying out its responsibilities and for building capacity for safeguard compliance.  Ensure that the NAC will conduct the required consultations with project affected groups and local NGOs in PNG, and that the NAC as project sponsor disclose relevant environment information on the project’s environmental issues in an appropriate form, manner, and language(s) accessible to those being consulted. Such information disclosure with affected people will be guided by the Public Communication Policy (2011). Contractors  Based on site specific conditions, prepare Contractor’s Environmental Management Plan (CEMP) for each site  Implement and report on CEMP as part of pavement strengthening and rehabilitation activities  Prepare monthly CEMP report as part of progress reports and submit to PIU. The report will also include the Monthly Accident Report and measures undertaken to address any non-compliance issues identified by the PIU (or CEPA). CEPA  Administration and enforcement of the Environment Act 2000 and its regulations as it pertains to the project  Identify whether EPs (with or without conditions) required for any

identified site  Review IEE and other documentation required  Administer Contractor Waste Disposal permit applications and performance

104. The IES will be engaged intermittently for eight person-months during the Tranche 3 also in Tranche 4 period and will be assigned on an intermittent basis to undertake training and capacity building for environmental management in NAC and to guide the EO of PIU in preparing assessments, monitoring and reporting. The IES and EO will jointly be responsible for overall environmental management of Tranche 3.

C. Monitoring and Reporting

105. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

106. Monitoring during construction will be the responsibility of the contractor and NAC (carried out by EO) and IES within the PIU. Monitoring will relate to compliance with construction contracts (including EMP measures and provisions), the state and health of the nearby environmental resources, and the effectiveness of mitigation measures and complaints. Monthly progress reporting will include a summary of this monitoring submitted to the NAC on a regular basis (at least quarterly) and to ADB semi-annually.

107. The estimated cost for the monitoring plan is $34,000. The costs of the environmental mitigation plan will be part of the construction costs (Annex A).

108. Table 5 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 6 states the roles and responsibilities for environmental monitoring. Table 7 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipment to be procured by the contractor or through specialized firms. Table 8 shows the summary of the environmental management costs including implementation and monitoring costs.

109. The PIU will be responsible for reporting progress of Tranche 3 to NAC and ADB. Monitoring of each contractor will cover monthly progress and CEMP implementation and compliance (including general good practice). A section on safeguards activities and compliance with the CEMP for each subproject will also be included in quarterly progress reports (QPR) prepared for NAC and ADB.

110. The reporting will be as per the following schedule:  A report at the end of detailed design incorporating a section prepared by the IES and EO on how detailed design has reflected environmental impact avoidance or mitigation and climate resilience;  A monthly report prepared during construction by each contractor reported on progress and CEMP activities, issues and corrective actions,  A report prepared every 3 months (the QPR) prepared by the PIU. The QPR will include a section on safeguards activities and CEMP compliance for each subproject and will summarize the monthly reports submitted by the contractors; and  A semi-annual safeguards monitoring report (prepared every 6 months) by the EO and make available the 6 monthly report to ADB to be disclose on ADB website.

111. The Project completion report will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the EARF and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

Table 5. Environmental Monitoring Plan

PARAQMETRES TO BE PHASE/IMPACT MITIGATING MEASURE MONITORED STANDARDS LOCATIONS1 DURATION FREQUENCY IMPLEMENT SUPERVISE PRE-CONSTRUCTION PHASE 1. Erosion, i) Drainage design Capacity sufficient for 80% of 30 Momote Airport Detailed Once at Design PIU siltation and ii) Use of gently sloping grass i) Drains are of sufficient quantity year maximum Design Detailed Contractor flooding of surfaces and size to accommodate Phase Design Phase waterways iii) Silt traps in all drains additional volume ii) Silt traps are of sufficient quantity and size to protect surrounding areas from siltation CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

2. Water Pollution i) Inspection of storage of i-ii) Best practices – Defined in Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Installation of oil and other traps hazardous and toxic wastes areas final EMP Phase PIU/CSC on drains ii) Inspection of oil traps in drains iii) Water Quality Standards of ii) Proper handling and storage of iii) Pollution load of downstream CEPA hazardous and toxic materials water courses iii) Locate ancillary facilities away from settlement areas

3. Health and i) Construction methodology and i) Site inspection i) Compliance with method of Momote Airport Construction Monthly Contractor/ CEPA/NAC safety of workers work plan Working Plan and OH & S Plan Phase PIU/CSC ii) Contractor’s approved OH &S Plan 4. Demobilization i-v) Inspection of operations and i-v) Best practices – Defined in Momote Airport End of Once Contractor/ CEPA/NAC i) Preparation of abandonment site Final EMP construction PIU/CSC plan phase ii) Demolition of temporary offices and Contractor’s Depot Area iii) Dismantling of ancillary facilities iv) Re-vegetation of exposed areas v) Proper disposition of construction debris

OPERATION AND MAINTENANCE PHASE 1. Noise i) Ambient Noise i) ANZECC 1992 or Australian Momote Airport Operations Semi-Annual PIU/NAC CEPA i) Establishment of buffers disturbance Noise Exposure Forecast (ANEF) between airports and nearby settlements ii) Preparation of operational procedures by Airport Operator 2. Water pollution i) Inspection of operations and site i-ii) Water Quality Standards of Momote Airport Operations Semi-Annual PIU/NAC CEPA i) Proper sanitation and sewerage ii) Storage for hazardous and toxic PNG-CEPA systems (construction of septic materials tanks or connection to main sewer line) installed ii) Spill contingency plan 3. Air pollution i) Proper maintenance of vehicles i) Total suspended particulates i) CEPA Air Quality standards Momote Airport Operations Semi-Annual PIU/NAC CEPA ii) Re-vegetation of exposed areas

PIU – Project Implementation Unit; CSC – Construction Supervision Consultants; NAC – Civil Aviation Authority; CEPA –Department of Environment and Conservation1 Specific sampling stations will be defined during the conduct of the baseline survey before commencement of works

Table 6: Roles and Responsibilities for Environmental Monitoring

Implementation Implementation No Environmental Monitoring Tasks Responsibility Schedule 1 Design Phase Disclosure of project to CEPA and 1.1 NAC-PIU, EO Prior to construction monitor permitting. Audit project bidding documents to ensure IEE and EMP included in bids NAC-PIU (by IES 1.2 Prior to issue of bidding documents. and environmental criteria are and EO) included in evaluation. 2 Construction Phase Orientation and briefing of First orientation/briefing 1 month prior to commencement of each contract contractor’s NAC-PIU (by IES 2.1 management, site agents with and refresher orientation/briefing at and EO) regards to all IEE and EMP least yearly during construction requirements. period. Monitor the performance of environmental training by contractor Ongoing, prior to and during and briefings and of the NAC-PIU (by IES 2.2 implementation of works and environmental awareness of and EO) operation. Contractors staff, tool box talks and & refresher courses. Regular (monthly) monitoring and NAC-PIU (by IES Continuous throughout construction 2.3 reporting (quarterly) of contractor’s compliance with statutory and EO) period. environmental requirements Regular (monthly) monitoring and reporting (quarterly) of contractor’s NAC-PIU (by IES Continuous throughout 2.4 compliance with contractual and EO) construction period. environmental mitigation measures including EMP. Regular (monthly) monitoring and reporting (quarterly) of complaints NAC-PIU (by IES Continuous throughout 2.5 and responses or environmental and EO) construction period. mitigation measures Monitor adjustments to the EMP for NAC-PIU (by IES During all phases of the 2.6 unexpected impacts and the thorough and EO) Project implementation of detailed EMP. Commissioning phase monitoring of facilities versus environmental NAC-PIU (by IES 2.7 At commissioning. contractual performance criteria. and EO) Check EMP compliance. 3 Operation and Maintenance Phase Post construction monitoring of Semi-annual up to 3 years after air/noise/water quality at any sites NAC-PIU (by completion of construction or until air, 3.2 where complaints about water quality EO) noise and water quality meets from works were justified in baseline conditions. construction phase.

VIII. CONCLUSION AND RECOMMENDATION 112. The project will cause short-term environmental disturbances associated with construction activity that will be mitigated by operational procedures during construction, within the framework of a contractor’s approved EMP in line with the EMP stated herein (Table 4) to be supervised by the PIU.

113. Mitigation measures to prevent or minimize unnecessary impacts are also provided. Potential impacts and risks during construction were also characterized as short term and unnecessary impacts will be minimized through good construction management and housekeeping practices. An EMP containing impact mitigation and monitoring plan to mitigate the potential impacts has been prepared to ensure that the project will be implemented in an environmentally sound and sustainable manner.

114. Positive impacts to the local economy will accrue through new income earning opportunities for locals generated by demand for labour, women participation to semi- skilled during construction; and airport staffing and management arrangements, and through the creation of new non-aeronautical business opportunities in the terminal facilities and surrounding areas.

115. This IEE concludes that in the context of appropriate mitigating strategies described above, and the positive environmental benefits to flow from the Project, environmental impacts can be managed within acceptable levels. There are no significant environmental impacts needing further detailed study. All potential and associated impacts can be addressed through implementation of the mitigation measures as proposed in the IEE. Provisions will be made in the Project Budget to cover the environmental mitigation and monitoring costs.

ANNEX A: ENVIRONMENTAL MONITORING PLAN

Table 7: Matrix of EMP for Buka Airport

ENVIRONMENTA PLANNED EQUIPMENT COST OF INDICATOR MONITORING L AREA OF REQUIREMENTS MONITORING PARAMETER FREQUENCY PARAMETER MONITORIN AND (MONTHLY G COST (US$) COST IN US$) Monthly During Construction Sulfur dioxide Period/Semi-Annual During Operation Period 1 Unit - PM10 Portable US500.00 Nitrogen US$2500 (includes dioxide Monthly During 1 Unit - 3 Gas transportation Construction Analyzer and lab Period/Semi-Annual Portable analysis) During US$2000.00 Operation Period Air and 2 stations Noise Monthly During Total Construction Suspended Period/Semi-Annual Particulate During Operation Period 1 unit – Noise Monthly During Metre US$400.00 Construction US$500.00 ((includes Noise Period/Semi-Annual transportation During and lab Operation Period analysis) Temperature pH Biological Oxygen Demand (BOD) Dissolved Monthly During US600.00 1 Unit Portable Oxygen (DO) Construction (includes Water Water Oil and Grease Period/Semi-Annual 1 Station transportation Quality Quality Analyzer Total Coliform During and lab US$2000.00 Count Operation Period analysis) Total Suspended Sediments (TSS) Total Dissolved Solids (TDS)

Table 8: Summary of Costs for the Proposed Works

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000

Impacts During Construction 98,000.00

Sub-Total 128,000.00 PARAMETER EQUIPMENT (US$) MONTHLY MONITORING COST2 (US$) (US$) Air and Noise One set of equipment for EO 900.00 21,200.00

Water Quality One set of equipment for EO 600.00 12,800.00

SUB-TOTAL 1,500.00 34,000.00

GRAND TOTAL 162,000.00

1Costs quoted are estimates and will be finalized upon completion of Detailed Design Phase (to be included in Bill of Quantities). Costs will be incorporated in total construction cost. 2Cost inclusive of equipment, transport, and laboratory analysis for Baseline survey before commencement of works, 18 months of construction period and 3 years operation phase (at six-month interval).

ANNEX B: PHOTOGRAPHS

Photo 1: End of Runway with Gardens and Swampy Area

Photo 2: Proposed Runway Extension Area with Scattered Gardens

Photo 3: Settlement opposite Runway near to Airport Boundary

Photo 4: Consultation with Executive Officer for Autonomous Bougainville Government

Photo 5: Consultation with Local Residents around Buka Airport

2. Gurney Airport Initial Environment Examination

EXECUTIVE SUMMARY

III. An environmental assessment and review framework (EARF) has been prepared to guide environmental safeguards implementation for Tranche 3. In accordance with the EARF this Initial Environmental Examination (IEE) presents the environmental assessment of one of the project under Tranche 3 – Runway Extension and Associated Works at the Gurney Airport of Milne Bay Province in PNG. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Safeguard Policy Statement 2009 and the GoPNG Environment Act 2000. The key environmental impacts on the physical, natural and human environments have been assessed.

IV. The main findings of this IEE indicate that the impacts that will arise from Gurney Airport (GA) Runway Extension & Associated Works will be minimal and will be contained within aerodrome and GoPNG leased land and the works will involve runway extension, pavement strengthening and associated works for duration of 18 months. The project is classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

V. The potential environmental impacts associated with the project particularly occur during the construction and operation phases which will typically involve:

(i) Earthworks and pavement works. During the conduct of earthworks and pavement works, heavy rains and the associated run-off into drains and soil erosion problems can be expected in some areas such as flight strip widening and Open Unlined Drain which may cause surface water quality problem in nearby water courses. (ii) Pollution. Problems of pollution related to the disposal of sewage, waste fuel & petrochemical products, salvage materials, oils spillage and leakage, solid wastes generated during construction (from worker camps) and

operations could occur. Temporary site contamination, dust & noise generation associated with construction, and pollution associated with firefighting drills may cause environmental impacts. (iii) Noise. Construction activities may cause noise impacts from vehicle movements for a short duration. Noise from aircraft is already existing and it will be intermittent and in short duration. Significant incremental increase of flight frequency is not expected.

VI. Adherence to best engineering practices during rehabilitation/reconstruction and implementation of the environmental management plan will avoid or adequately mitigate all of the rehabilitation/ reconstruction-related impacts.

VII. A Grievance Redress Mechanism set up in Tranche 1 and 2 will be used in Tranche 3 and the Provincial Administration is fully aware of its role. Public support during consultation for the project was unanimous and the Provincial Administration wanted the project to commence immediately as they see this as increasing the tourism opportunities. The new market will provide opportunity for women to be able to market their locally produced goods to the travelling public while Milne Bay (MB) New Britain Palm Oil (NBPOL) Estates wanted the GoPNG to adequately compensate them for the loss of their oil palm trees.

VIII. The upgrading of the GA is designed to bring the facilities to a level of development to fully meet the airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the F100 aircraft, or similar.

P a g e | 1

I. INTRODUCTION

2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the subprojects under Tranche 3 – Pavement Strengthening, Runway Extension and Associated Works at the Gurney Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Sourcebook (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment.

3. The main purpose of this IEE is to identify impacts from the runway extension and pavement strengthening and associated works of the GA, Milne Bay Province (MBP) (Figure 1) and mitigations required to address them.

FIGURE 1: MAP OF PAPUA NEW GUINEA AND LOCATION OF GURNEY AIRPORT

Gurney Airport

1 Project 1 rehabilitation work was under the Civil Aviation Authority (NAC) and was the predecessor for NAC.

P a g e | 2

A. Overview

4. The proposed investment program will entail the upgrading and rehabilitation of the following existing airports (Tranche 3): Kavieng; Mendi; Madang; Vanimo, Kerema, Kiunga, Tari, Momote, Buka, Gurney, Wewak and Mt Hagen. The upgrading and improvement of these major domestic airports is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the runway, taxiway and apron capability to accept unrestricted operations by Fokker 100, Dash 8 and QF 400 aircrafts.

B. Environmental Regulatory Compliance

5. The environmental regulations of GoPNG are derived from the Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects that need environmental assessment as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Projects that likely to have significant adverse environmental impact (Level 2 and Level 3) are required to obtain an Environmental Permit (EP) from the Conservation, Environment Protection Authority (CEPA) following environmental assessment. The upgrading and rehabilitation of existing airports is not listed as Level 2 and Level 3 of the “Prescribed Activities”. However certain associated project activities commonly associated with upgrading and improvement works such as earthworks, surfacing, discharge of waste water, establishment of borrow pits, sourcing and extraction of aggregate materials from surface water courses are Level 2 activities that may require an EP depending on the duration and scale of those activities. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the subprojects to CEPA so that CEPA can decide whether any specific environmental requirements will be needed for the proposed airport upgrading and rehabilitation. Considering the government environmental requirements and ADB Environmental Safeguard Sourcebook (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

C. Environmental Category of the Subproject

7. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Sourcebook (2012) Tranche 3 projects are classified as Environmental Category B that requires an IEE.

D. Objectives and Scope of IEE

8. The objectives of this IEE were to:  Assess the existing environmental conditions in the project area including the identification of environmentally sensitive areas;  Assess the proposed planning and development activities to identify their potential impacts, evaluate the impacts, and determine their significance; and  Propose appropriate mitigation measures that can be incorporated into the proposed activities to minimize any adverse impacts, ensure that residual impacts are acceptable and propose monitoring and planning of projects

P a g e | 3

under Tranche 3.

9. This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

10. Following the introduction, this report contains seven more sections including (ii) description of subproject; (iii) description of the environment; (iv) screening environmental impacts and mitigation; (v) public consultation; (vi) institutional requirements and environmental management plan; (vii) findings and recommendations; and (viii) conclusions.

II. DESCRIPTION OF THE PROJECT

11. The current state of the airports in PNG is inadequate to meet the increasing demand for air travel both for tourism and commercial purposes. This, in essence, presents itself as an obstacle to further economic growth and development of major regional centers in PNG and the country as a whole. The identified major domestic airports need to be upgraded and improved to meet the international standards and requirements and make it safety compliant as prescribed by the International Civil Aviation Organization (ICAO).

12. The third Tranche of development investments under CADIP will be the upgrading and rehabilitation of the existing Kavieng Airport in the New Ireland Province; Mendi Airport in Southern Highlands Province; Madang Airport in Madang Province; Vanimo Airport in West Sepik Province, Mt Hagen Airport in Western Highlands Province, Wewak Airport in East Sepik Province, Tari Airport in Hela Province, Gurney Airport in Milne Bay Province, Kerema Airport in Gulf Province, Kiunga Airport in the Western Province, Buka Airport in the Autonomous Region of Bougainville and Momote Airport in the Manus Province. Only the scope of works for Gurney Airport is in Table 1.

A. Proposed Project Works

13. The Proposal is to upgrade Gurney Airport to make it safety compliant as one of the regional airport that could accommodate and be suitable for the operation of Q400, ATR and Fokker 100 aircraft or similar, and for the airport to expand its role as the major domestic hub for the MBP. Major upgrading works will be on the airside portion of the facility and minor works on the landside. Most of the works will be within the existing aerodrome land boundary except (Figure 3) for the runway extension that will go beyond aerodrome boundary into land sections of oil palm plantation operated by NBPOL Milne Bay Estate on State land ‘Agricultural lease’. This area is currently used for replanting Palm Oil seedlings. The upgrading works will commence after all detail design, scope of works and approvals have been obtained; and the contractor selected to carry out the works.

P a g e | 4

Table 1: Scope of Work for Gurney Sub Location Proposed Development Works Project Gurney Milne Bay A. Aircraft Pavements and Associated Airside Works Airport Province 1. Extend Runway by 210m to eastern end to give 1900m overall length including new turning node; 2. Construct 3m wide Shoulders to extended Runway both sides; 3. Prime and two-coat bituminous spray seal (10mm/7mm) and sand overcoat to constructed pavements including shoulders; 4. Construct Stopway at extended runway end; 5. Reseal existing pavements with single coat bituminous seal (7mm) and sand overcoat; 6. Construct Runway End Safety Area (RESA) unsealed at both runway ends; 7. Construct reinforced concrete wheel pads for 2 x F100 aircraft parking bays; 8. Apply fuel resistant membrane ('Master Seal II TM') on 3 x aircraft parking bays; 9. Apply pavement line markings; 10. Runway Strip grading, top soiling and grassing within 90m width on extended end; 11. Improvements to airside drainage system including construction of subsoil drainage and Open Unlined Drains (OUD); and 12. Construct concrete encased duct bank beneath Runway Extension; B. Landside Works, Airfield Lighting and Electrical Works, and Associated Works 13. Relocate and adjust PAPI lighting system at eastern end including concrete base footings, trenching, electrical reticulation, inspection pits, flight testing and commissioning; 14. Divert existing Open Unlined Drains (O.U.D) at the eastern end and, supply and install a new culvert beneath the RFFS access road on extended Runway centerline; 15. Install 1 x new multi-cell culvert beneath the Plantation Access Road; 16. Construct Power House including electrical reticulation; 17. Supply, deliver, install and commission 2No. x 150KVA Cummins Diesel Standby Generators including warranties; 18. Construct 1 x lockable 4 bay Shed for Tractor, Slasher, Trailer and Hay Bailer; 19. Supply and deliver to site 1 x M95 Kubota 4WD 80HP Diesel Tractor with Canopy and 1 x Heavy Duty 2.40m dia Superior LX240 Slasher complete with connections to link to Tractor including Trailer and Hay Bailer; and 20. Construct new Airport Market with Security Fencing and gates including power supply, water tanks, and public toilet, carpark and security lights. 21. Supply, deliver, install and commission a new Petro Cube 6300L Diesel Fuel Tank including accessories. 22. Supply and deliver 70No. Airfield Fibre glass Cone markers (30 white, 20 yellow, 20 red and white). 23. Supply and deliver 3No. standard Unserviceability Crosses painted white. 24. Supply and deliver 70No. 20 litre-drums of paint (40 white, 20 yellow, 10 black) for future NAC use. 25. Supply and deliver 2No. 200 litre-drums of Fuel Resistant Membrane ('Master Seal II TM') for future NAC use. 26. Supply, delivery and installation of 2No wind indicators in

P a g e | 5

accordance with the details and locations shown on the drawings. Note: Allowance is made for other miscellaneous works including General and Preliminary items.

B. Location and Description of Existing Airport

14. GA is located 15 km from Alotau, the provincial capital of MBP, on the south-eastern tip of mainland PNG. Road access between the airport and Alotau is via the Charles Abel Highway, consisting of all 15 km of sealed road.

15. The airport is located on the western edge of MB. Mountains reaching over 800m in height border MB on its northern and southern sides. Between these mountains and extending westwards from the western end of MB are low-lying and floodplain areas traversed by several rivers including the Duagaibu, Gumini and Meiwara Rivers.

16. GA is also 2 km inland from MB on the northern side of this low-lying area and at the foot slopes of the mountains to the north. The land is flat at an elevation of 10-20m above sea level. The Kaloi River is situated immediately west of the airport.

17. This river flows south to join the Meirwara River before flowing into MB. The airport, however, generally drains to the east via two open grassed channels constructed parallel to the runway. Runoff outlets from airport land on the north- eastern corner into Laviam Creek, before flowing approximately 3 km through oil palm plantations and coastal vegetation into MB. GA’s sewerage system is a standalone system (septic tanks) and is not connected to the main sewer line. Figure 1 shows the map of PNG and location of GA. Figures 2 and 3 shows the general layout plan and the aerial view of the existing GA.

18. Some short duration flooding occurs at the western end of the GA, immediately outside the airport boundary, due to an undersized culvert in the southern drain. Excellent grass cover exists on all unpaved surfaces at the airport except within the main southern drain where grass cover is moderate. Minor erosion is occurring on the sides of this drain, with some sediment deposition in the base of the drain. The airport receives 1,703 mm annual average rainfall that is relatively evenly distributed throughout the year. Land adjoining the airport is almost entirely under oil palm plantations. The NBPOL workers’ settlement on the southern side of the airport (setback 220m and two block holders and their families in the small settlement of Village Oil Palm on the north-western side of the airport (setback 50m from the airport boundary), approximately 1km to the north-east of the airport passenger terminal on the Charles Abel Highway.

P a g e | 6

Figure 2: GENERAL LAYOUT PLAN OF GURNEY AIRPORT

FIGURE 3: AERIAL VIEW OF THE EXISTING GURNEY AIRPORT

Existing Runway Palm Oil Plantation

Terminal Facilities area

Proposed Runway Extension Highway to Gurney Town

Palm Oil Plantation

19. The airport runway is 1,690m long by 30m wide with 3.0m shoulders, aligned close to east/ west and set within a 90m wide strip. An associated taxiway and apron are located on the northern side. Other facilities on airport land include the main terminal with separate domestic and international passenger areas and a sealed car park, the Mobil fuel depot (currently not in use), the NAC office and associated residence, the NAC standby power house and a storage shed and workers houses on the south-western side of the airport. Airport land (71 ha) is fully fenced and with a 1.2m high post and wire fence. The airport perimeter is now fully fenced. Although the proposed runway extension will involve extending the fence to the south western side of the airport.

C. Salient Features of the Project

20. The main scope of works will be the third stage of the upgrading of GA. Stage 1 and 2 covered for pavement upgrade and the installation of Galvanized Steel Picket Type Security Fence and the construction of an access road on the airside of the new fence line. Stages 3 now will the extension of runway to cater for B737 – 800 aircraft or equivalent. The estimated construction period for the development works is 18 months.

21. The upgrading works under Batch 3 will be within the existing land area of the airport and will include the following activities: � Runway lengthening for B737 - 800 or equivalent aircraft operations. Extend the Eastern end by 210m x 30m to give 1,900m runway. � Construction of a new 60m stop way at the Eastern end. � Construction of 90m x 90m RESA at both runway ends.

P a g e | 8

� Apply single coat 7mm chip reseal to existing pavements and reinstate fuel resistance membrane and line markings. � Diversion of the existing Open Unlined Drains (OUD) at the Eastern end and, supply and install a new culvert under the RFFS access road. � Supply and Install a new multi-cell culvert under the plantation access road. � Relocate existing PAPI at the Eastern end and conduct flight test � Construct Power House including electrical reticulation with Diesel Generator Standby Construct 1 x lockable 4 bay Shed for supplied Tractor, Slasher, Trailer and Hay Bailer with accessories; Construct new Airport Market with Security Fencing and gates including power supply, water tanks, and public toilet, car park and security lights.

A full listing of the airport works is in Table 1.

22. The GA re-development would involve earthworks as follows:

 Estimated material and earthworks quantities:  Cut to stockpile 100 mm topsoil for future re-use – 58,000  Excavation earthworks – 22,000  Pavement construction material (crushed base course) – 45,000  Topsoil will be used and/or be re-used for topsoil and grassing  Excavated in-situ material will be used in landscaping and/or flight strip widening and grading.  All materials will be stockpiled at a designated location on the airside.  Base course material shall be crushed river gravel – proposed source is Kaloi River. 10m3 trucks shall cart material from source and stockpiled on- site.

III. DESCRIPTION OF EXISTING ENVIRONMENT

23. MP is a province of PNG. Its capital is the township of Alotau. The province covers 16,202 km² of land and 252,990 km² of sea. Within the province there are more than 600 islands, about 160 of which are inhabited (Figure 4). The province has about 210,000 inhabitants, speaking about 48 languages, most of which belong to the Eastern Malayo-Polynesian branch of the Austronesian language family. Economically the province is dependent upon tourism, oil palm, and previously gold mining on Misima Island. In addition to these larger industries there are many small- scale village projects such as cocoa and copra cultivation.

24. MBP does have a long history with the Christian Missionaries (early 1880s) and World War II (1944-45) events. The war relicts and remnants from these historical activities are retained and preserved for tourist attraction and education.

25. GA is on the mainland of MB and is surrounding by oil palm plantation operated by NBPOL) on a Government of PNG Agricultural Lease.

A. Physical Environment

26. Land Resource and Land Use. Land adjoining the airport is almost entirely under oil palm plantations. Minimal amount of land is cultivated for cash crops like coconut, betel nut, yam and other necessary food and vegetables produce. NAC workers’ settlement on the southern side of the airport within the boundary (setback 220m from the runway) and a small oil palm settlement on the north-western side

P a g e | 9

(setback 50m from the airport boundary).

27. The airport current runway is 1,690m long by 30m wide with 3.0m shoulders aligned close to east/ west set within a 90m wide strip. An associated taxiway and apron are located on the northern side, connected to the Charles Abel Highway by a sealed road.

28. Other airport facilities include the main terminal with separate domestic and international passenger areas and a sealed car park, the Mobil fuel depot (currently not in use), the NAC office and associated residence, the NAC standby power house and a storage shed and workers houses on the south-western side of the airport. Airport land (71 ha) is fully fenced and with a 1.2m high post and wire fence. At times there is illegal access onto the aerodrome.

FIGURE 4: MAP OF MILNE BAY PROVINCE

P a g e | 10

29. Meteorology and Climate. Climate in MBP generally consists of a wet and dry season. May to October is usually the wet season with rougher seas. The airport receives 1 703mm annual average rainfall that is relatively unevenly distributed throughout the year. There is higher rainfall of up to over 4000 mm per annum in the Trobriand Islands and Woodlark islands2. Temperature throughout the year ranging from 20 to 37ºC where the lower temperatures are for the evening and night.

30. Topography, Geology and Soils. The underlying geology of the Gurney area is Quaternary alluvium and beach deposits (2mya) comprising of gravel, sand, silt and volcanic soils. These provide the rich soils where oil palm plantations flourish right to the end of the Samarai Peninsula These sedimentary deposits are resting on the volcanic rocks which are associated with the Late Oligocene (24 mya) – Early Miocene (10mya) Eastern Papua Fold Belt.

31. Soils in the Gurney area are mostly Inceptisols – soils derived from volcanic ash moderately weathered soils, with no strongly contrasting horizons. There is also Andisols which are volcanic derivatives.

32. Surface and Ground Water Resources. The Kaloi River, situated immediately west of the airport flows south to join the Meirwara River before flowing into MB. The airport, however, generally drains to the east via two open grassed channels constructed parallel to the runway. Runoff outlets from airport land on the north-eastern corner into Laviam Creek through oil palm plantations and coastal vegetation into MB.

33. Some short duration flooding occurs at the western end of the airport, immediately outside the airport boundary, due to an undersized culvert in the southern drain. Excellent grass cover exists on all unpaved surfaces at the airport except within the main southern drain where grass cover is moderate. Minor erosion is occurring on the sides of this drain, with some sediment deposition in the base of the drain.

34. Although groundwater was not encountered during the geotechnical investigation of the current runway, there is a likelihood of water content change in the in-organic clay (3rd layered subsoil profile). While that is proposed, control of subsoil moisture changes may be difficult due to groundwater influence where the water table was estimated to be 4-6m below the existing ground surface. However, to control the amount of water entering the subgrade, it is recommended that the existing storm water drainage system parallel to the apron be maintained. Two bore holes approximately 50m apart are setback about 150 – 200m from the runway pumps groundwater to two reservoirs (storage tanks) stationed about 150m directly at an area at the back of the airport terminal beside Charles Abel Highway in-situ.

35. Groundwater supply to the local community including the terminal facilities from the reservoirs is potable and requires some treatment from time to time. However, quality of nearby surface water that runs through the oil palm may be potentially contaminated.

36. Air and Noise. There are no specific instruments to calculate and measure the Air and Noise quality measurements of the airports therefore no baseline data is available. Indeed, airports are noisy place. But the noise is intermittent only during

2 Hanson, L.W., Allen, B.J., Bourke, R.M. and McCarthy, T.J. (2001). Papua New Guinea Rural Development Handbook. The Australian National University, Canberra

P a g e | 11 aircraft takeoff and landing. The Government has a body that regulates and controls such noise. B. Ecological Resources

37. Forest Resources. Milne Bay has logging in the province but none of these are in the vicinity of the airport area. There are several portable sawmills around the province. The airport site is largely cut over and consists mainly of brush and grassland and large extension of oil palm.

38. Rare or Endangered Species and Protected Areas. There are no rare or endangered species of flora or fauna in the general areas of the site. Protected areas are mainly based on Marine ecosystem usually called Marine Protected areas. Fauna found in the area are snakes, occasional wild boar and flocks of eagles. C. Social-Cultural Environment

39. Population and Demography. MB has a population of 210,000 people (2000 Census) and has an annual growth rate of 2.5 percent. Alotau, the major town, has 10,000 inhabitants and the remaining is rural population. The population density is at 15 people per square kilometre.

40. Most population within the airport vicinity is indigenous with good number of families and houses along Charles Abel Highway within a range of 2-5km from the site. A handful of residents are recent migrants from other Islands or elsewhere due to the expansion economic activities associated with oil palm Industry.

41. There are no mineral resources or prospect of exploration in the area and no mining. The main source of income of the residents of the area is subsistence farming supplemented by small-scale commercial activities like markets and mini trade stores along the main highway. The overall income level is fair.

42. Generally, agriculture and fisheries continues to play an integral part of the livelihood of the various rural communities in the province. Some 97 percent of the rural population is absorbed by the agriculture system. Tree crop farming is a major revenue earner for the province and for many rural farmers. Cocoa is planted widely in the province and extension work has been carried out by the Cocoa and Coconut Extension Agency.

43. Cultural, Historical, Archaeological Resources, Schools and Housing. GA was built by the US Army 96th Engineer General Service Regiment during Second World War (WW2). Today, Second World War monuments are located away from the airport and an old WW2 machine gun is stationed right in front of the terminal. Hagita Secondary school is about 5km south of the site along the Charles Abel Highway.

44. Traditional houses built from light material to semi-permanent houses are set back more than 10m beyond the roads side drain. A few settlers have obtained land leases alongside the airport terminal and NAC have been negotiating with them for crop improvements as part of their land will be used in the development alongside the boundary fencing. Power lines along the highway provide electricity to some of the homes.

P a g e | 12

IV. SCREENING ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

45. This section provides an assessment of the likely impacts associated with the pavement strengthening, runway extension and associated works and ways to mitigate and/or manage them. The works will extend into State owned agricultural leases and the impacts will be contained within the proposed development and will not result in any significant changes in environment beyond the required extension airport boundary. The assessment focuses on pre-construction, construction and operational stage impacts.

A. PRECONSTRUCTION

46. A number of activities will occur during the preconstruction phase where there is (i) the Establishment of Contractors Site and Facilities, (ii) Constructions Workers Accommodation and (iii) Stockpiling of Construction Material.

47. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities.

48. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public Relations Officer is tasked to ensure that these do not occur.

1. Establishment of Contractors Site and Facilities

49. The contractor’s work site establishment (inclusive of stockpiling) will be located outside of the airside and require an area of approximately 100 m x 50 m. Inappropriate disposal of wastewater and effluent from rest room and solid waste can cause pollution. Pollution anticipated to be generated during construction is expected to include day-to-day production of solid waste, domestic sewage, and oil and chemical wastes. The storage and handling of petro-chemicals will require careful management; an important part of the environmental management plan (EMP) will be requirement for an emergency response plan for spills and accidents.

50. The contractor’s depot area and yard/offices will be provided with sanitary disposal facilities that will address the generation of domestic wastewater and proper solid waste management. Silt traps shall be established around areas identified for clearing and drainage works to prevent siltation of any surrounding waters. During the pre-construction and construction period an adequate supply of an appropriate quality of water will be provided for both domestic (for the contractor’s depot area) and other purposes (construction activities i.e. concrete mixing, clean-up of machineries and washing of trucks).  Mitigation measures include:  Restricting the contractor to a single, pre-planned construction site;  Requiring the contractor to install a septic tank or mobile toilets (if not connected to the main sewerage system) of adequate capacity;  Establishing mechanisms for grey water to be managed according to site conditions;  Requiring that all lubricants be collected, stored correctly and recycled;  Ensuring that the contractor has a spill contingency plan including drainage/settling pond control, bunds-drainage around fuel and storage areas;

P a g e | 13

 Provision of receptacles for rubbish and rubbish to be disposed of at approved site; a  Banning of burning of rubbish or waste permitted at yard or work site; and  Provision of complete and proper PPEs to workers

2. Construction Workers Accommodation

51. Establishment of contractors’ camp site will also comply with mitigation measures of waste management. Otherwise, contractor will rent a small compound for the skilled staff (10- 15 persons) recruited for the construction works such as the Pavements Supervisor and Foreman, Mechanical Supervisor and Plant Operations Supervisor, etc. All other skilled and unskilled personnel which are estimated at 30- 40 persons shall be sourced locally and would not require housing in campsite.

3. Stockpiling of Construction Material

52. The development works (i.e. pavement strengthening, flight strip widening, construction of shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and laying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the contractor’s environmental management plan (CEMP) with cleanup initiatives undertaken as required. Mitigation measures include:  Transportation of materials to be limited to short periods to minimize traffic disturbance;  Transportation to be only during the dry days when unsealed roads are strong and also to lessen impacts on nearby residences, run-off and soil loss;  Water trucks to be on standby to water-down dust generated from unsealed roads during transportation of materials;  All stockpiled materials to be adequately contained in a bund type of structure to minimize run-off and covered to minimize dust; and  Locate all stockpiled in controlled areas away from water bodies including nearby residential areas. B. CONSTRUCTION

53. The Constructions phase has a number of activities or induced activities such as (i) Clearing and Grubbing, (ii) Pavement Construction, (iii) Building Construction, (IV) Storage and Handling of Fuel, Oil and Other Chemicals, (V) Health and Safety, (VI) Social Impacts, (Vii) Noise impacts and Air Quality and (VIII) Traffic Impacts.

54. All these activities will be confined to the construction area and physical and biological impacts will occur within the shrubs and trees that will be cleared for the new terminal and market buildings. There is the possibility of fuel, oil and other chemicals that will into the water ways although there is no noticeable water way in the vicinity of the construction area. The limestone substrate allows for runoff to permeate through.

55. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the EMP. 1. Construction Activity

56. Clearing and Grubbing. All grubbing of topsoil, clearing of grass areas and

P a g e | 14 trees/shrubs, old fences and culvert materials clearance will require stockpiling in controlled areas during construction. All topsoil, grass and culvert clearance will be cleared and stacked to edges of the fenced area to allow for re-vegetation or taken to designated sites for reuse. Exposure of soil can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation and management measures include:

 Removal of only necessary trees/shrubs as indicated or marked by the project implementation unit (PIU);  Topsoil, grass and spoils resulting from old fence/culvert clearance material clearance to be re-used where possible to provide landscaping in terminal and parking areas; and  The removal of topsoil followed by placement of base coarse material quickly to prevent soil erosion.  Installation of sedimentation controls in drains 57. Pavement Construction. Excavation and disposal of the existing pavement can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. All construction spoils including solid and coal tar wastes and empty containers from the work areas should be removed from site and transported to the public waste disposal area. The projected duration of this impact is short- term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation measures include:  Locate stockpiles in controlled areas;  Sub-grade and sub-base material placed quickly after removal of topsoil;  Plan construction work during dry season; and cease work during rain  Removal of spoils and construction debris.  Disturbed areas re-vegetated immediately after earthworks completed and/or sealed;  Processing and stockpiling of bitumen and aggregate to be in designated area;  Materials to be stored in bounded area for duration of works;  Drainage controls applied during construction; and  Implement all measures for storage and handling of fuel, oil and chemicals. 58. Building Construction. Building construction such as airport terminal and NAC staff house will commence upon completion of the sub-ground service activities. Building construction shall occur in concurrence with runway pavement upgrading. Mitigation measures include:  All building material confined in a single secured area;  All building material, waste materials to be arranged in classification/order and stored in appropriate location;  Concreting to be performed after foundation framework is in place;  Excess concrete from drum and concrete chute to be cleaned at designated contractors’ site; and  Solid and liquid waste associated with the building construction to be taken to municipal waste dumpsite.

2. Storage and Handling of Fuel, Oil and Other Chemicals

59. The use of equipment and plant during the works will require usage, storage and

P a g e | 15 handling of fuel, oil and other materials. Subsurface water resources near the selected subproject road sections could be anticipated to be contaminated by fuel and chemical spills. The following mitigation measures are included in the EMP to reduce the levels of impact associated with such effects:  Installation of oil and water separators, and traps on drains;  Development of safe storage areas (including bunds) and proper handling of hazardous and toxic materials;  Proper disposal of hazardous and toxic materials;  All vehicles, equipment and appurtenant facilities will be properly maintained during the works to reduce the risk of oil or fuel leakage;  Collect and recycle petroleum products;  Construction of bund walls and drainage systems around fuel storage areas; and  Contractor to prepare spill response plan/measures.

2. Health and Safety

60. During construction activities, work sites, traffic, and operation of equipment, plants and vehicles can pose health and safety risks for workers and the community. Health and safety codes of PNG and World Bank Group’s Environment, Health and Safety Guidelines (as per the SPS) will apply at all sub-project sites. Measures to mitigate risks include:

 The contractor will conduct on safety and environmental hygiene training for all workers at no cost to the employees;  The contractor will instruct workers in health and safety matters as required by law and good engineering practice and provide first aid facilities at work sites and the depots;  Temporary fencing around the work sites and contractor yards/depots shall be erected and advisory signage installed;  Work shall only be undertaken during daylight hours;  The community will not be permitted to enter work sites or the contractor’s depots/yards;  Workers shall be provided with appropriate personal protective equipment (PPE) such as safety boots, helmets, gloves, protective clothes, dust mask, goggles, and ear protection at no cost to the workers;  Provision of potable water supply in work locations;  Establishment of safety measures as required by law and by good engineering practice and provision of first aid facilities.  Adhere to relevant Industrial Safety, Health and Welfare Act or guidelines of GoPNG, International Finance Corporation and World Bank.

3. Social Impacts During Construction

61. The presence of a construction workforce can create social impacts such as risk of spread of communicable diseases (such as STIs and HIV) and create social disruption as a result of conflicts between workers from outside and local people. The workforce required for the pavement construction and associated works will be relatively small but wherever possible local people should be employed. 62. The contractor for Gurney airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Gurney return to

P a g e | 16 their original place of residence to avoid impacts from informal migration.

3. Noise Impacts and Air Quality

63. Air and noise pollution may be created by earthmoving, operation of heavy equipment and plant, transportation of materials to and from the site, and general works in the dry season generating dust and exhaust fumes such as Carbon Monoxide. 64. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Gurney airport is located out of town and 200 metres off the Charles Abel highway where trucks and Public Motor Vehicles (PMV) s travel by and it is not as noisy as other airport where the main highway road runs alongside them. There are some residential areas adjacent to the airport and the impacts are minimal and can be reduced to negligible levels by:  Controlling speed of vehicles transporting materials to work areas;  Maintaining and regularly checking serviceability of vehicles;  Vehicles and equipment to be switched off (rather than idling) when not in use;  Works undertaken during daylight hours. No noisy activities undertaken at night or on public holidays; and  Vehicles transporting loose materials and stockpiles to be covered with canvas. Work site and vehicles to be watered-down if generating dust.

4. Traffic Impacts 65. The need to transport materials to and from the site can cause traffic congestion if not managed properly. The contractor shall be required to prepare a traffic management plan as part of the EMP to demonstrate how construction traffic can be handled during the works in order to minimize impacts on transportation networks in the vicinity of the sites.

C. OPERATIONAL 66. At the completion of construction work, all materials will be removed or disposed of and the completed works will be in place. The only impact during the operational phase is the noise impacts which will be for the duration of approaching and landing aircrafts.

67. Operational Stage Issues. Aircraft noise emissions, whilst considered only a minor issue at present, can increase with increasing flight frequency in the future operation of the airport, and need to be proactively managed. The problem can mostly be ameliorated by the careful location of ground running, and by the times these activities are undertaken. Occupational and residential exposure to aircraft noise is expected to increase over time; however, the noise impacts will only be for very short duration during aircraft take-off and landing only. It is not a concern for the contractor at this stage. 68. Aircraft ground operating noise will require management negotiated agreements between airlines, NAC and the local communities on times, frequency and locations of operations. Noise from aircraft in flight requires addressing in the context of the EMP such as plants locate plant s away from aircrafts parking/approach area. NAC must prepare, regularly update and promulgate noise exposure forecasts in accordance with the ANZECC 1992 or Australian Noise Exposure Forecast. This shall be NACs operational matter.

69. NAC, airlines and other aviation operators will introduce, under the Civil Aviation Regulations (CAR), a formal Safety Management System (SMS). For all airports, this will address both temporary safety risks during construction, and ongoing safety risks during normal

P a g e | 17 operations. This system will also address management of environmental impacts of accidents and safety management processes.

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

70. As required by ADB SPS 2009, consultation began with the Milne Bay Provincial Administration since 2008 and the latest consultation was from 28 – 28 August 2015. At the August meeting was Mr. Michael Kape - Provincial Administrator, Mr. Laino Awalomwai - Lands Officer, Mr. Billy Camillo - Acting Manager, MBP Tourism Authority and Mr. Han'ofa Sailasa, Acting Manager - Works Unit. A block holder (Mr. Herman Tatauro) was later consulted. The first consultation was held at the MBP Administration office (Annex B) and the other was the residence of Mr. Tatauro. No consultation was held with NBPOL representatives and it was stated by the NAC EO that they are aware of the development but have been maintaining their reluctance on letting go of the area in front of the proposed runway extension although the dangers of approach landing and clearance has been mentioned to them in a number of earlier meetings for the Batch 2 works i.e. runway sealing and perimeter fencing. The main purpose of the consultation was to present the proposed project, illicit issues and concerns that the people in the impact area may have relevant to the proposed development and discuss the ADB environmental requirement for projects of this type. Among the major issues/comments raised relevant to the proposed development are as follows:  Communities were interested in spin offs and participation in the project. As a priority, they could be engaged for applicable work under the project by the contactor.  NAC has assured them that possible subcontract in cleaning/catering/labour for airport operations.  Communities plan to utilise their land at one of the approach end of the airport for planting of palm oil but they are equally concerned about the height restrictions and safety of approaching aircraft.  The communities have expressed an interest in providing catering service for the contractors’ camp site.  The block holder wanted to see if his block can be regazetted into a business lease so that he could do some business on his block. This is an issue that he will take up with the DLPP.  The Milne Bay Provincial Administration (MBPA) is happy with the development as this will boost its tourism and festival outings in the province.  Road side market vendors are happy that a new market will ensure that they can increase the sale of their goods to the travelling public. 71. All these issues form part of the consultation process and Milne Bay Estates wanted adequate compensation for their oil palm before the land can be acquired back.

72. Information Disclosure. In disclosing the environmental documents to the public, (i) NAC through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B-sensitive subprojects, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC- PIU will consult the public, particularly with project affected persons.

73. Disclosure of relevant environment safeguards documents will be in an appropriate form, manner, and language and at an accessible location to be understandable to the

P a g e | 18 affected people and local stakeholders. During Tranche 1 & 2, NAC established arrangements with provinces for coordination with a Project Coordination and Monitoring Committee (PCMC) and/or through the office of the Provincial Administrator (PA). Same procedure will apply for Tranche 3 projects.

74. A PCMC is set up within respective provincial administrations and this committee will oversee all concerns and grievances from the local communities and affected parties. Some Provincial Administration prefers a committee to be established with the Provincial Administration through the Office of the PA. For MP, this is set up through the Provincial Administrator, supported by the Provincial Lands Officer, District and Local Level Government Officer and other resource and service departments such as Agriculture and Livestock and Customs. In the villages, councilors are the linkages between the Local Level Government and their Wards and they deliberate on issues. This forms part of the grievance redress mechanism (GRM) as explained in Section G.

75. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to affected persons and communities regarding the requirements for land acquisition & Resettlement (LAR) and GRM.

VI. GRIEVANCE REDRESS MECHANISM

76. A GRM was established for CADIP during Tranche 1 and Tranche 2. The GRM to be implemented for Tranche 3 will reflect the steps and procedures already established but modify them to account for lessons learned. The GRM is a procedure for addressing environmental and social/land issues and concerns that may arise. During the course of the project it is possible that people may have concerns with the project’s environmental performance or social/land issues including the implementation of the project. Issues may occur during construction and again during operation. Any grievances dealing with construction and again during operation will need to be addressed quickly and transparently, and without retribution to the affected persons.

77. As noted in the previous section, NAC has an arrangement with provincial administrations through which grievances can be addressed. While NAC may have safety officers and operational managers at the Tranche 3 airport projects, they cannot be given the full responsibility of having to address grievances. They can however, only note and report to Provincial Administrations as partners in the provinces and/or through (i) an airport working committee, or (ii) the Provincial Coordinating & Monitoring Committee (PCMC). The airport working committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant Intra-Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

78. Where there are affected people for any airport development work, a grievance redress mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

79. Papua New Guinea Land Disputes Settlement Act establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process is established involving airport working committee/PCMC and appropriate community leaders and representatives. The NAC person on site such as a Safety Officer or

P a g e | 19 the Operational Manager will be the first person to be contacted who will then liaise with airport working committee/PCMC to register, clarify and mediate potential issues.

80. The GRM will apply equally to the contractor who will be required to maintain a complaints registry recording complaints or issues raised and how they have been resolved. The registry will be subject to monitoring as part of Contractors’ Environmental Management Plan (CEMP) compliance checks.

81. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:  The mediator must meet with the disputing parties to resolve grievances within 2 – 14 days;  In the event of grievances over compensation claims that cannot be resolved through mediation at the local level, the airport working committee/PCMC and Provincial Lands Officer will hold the compensation amounts in trust and  Compensation will be paid in full upon final resolution of the case in the courts or other forum such as the Alternate Dispute Resolution process in accordance with the entitlements of the affected person. This must be completed within three months.

VII. ENVIRONMENTAL MANAGEMENT PLAN

82. Mitigation measures, environmental monitoring, and capacity development are required to minimize the environmental impacts in the design, construction and operational phases. The EMP provides the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate with the project’s impacts and risks). It will be necessary to update the EMP during the detailed engineering design phase. A condition of the proposed loan will be the adoption and enforcement of a CEMP to mitigate negative impacts associated with airport improvement activities. The EMP matrix developed to cover the expected impacts for the pavement strengthening and associated works at Gurney Airport is provided in Table 2.

A. Institutional Arrangements

83. The overall MFF program will be oversight by a steering committee. The executing agency of the MFF Program will be the NAC. The PIU will be responsible for daily management and implementation of the projects comprising Tranche 3.

84. The NAC, through the PIU, will be the main agency/entity responsible in coordinating the implementation of the Environmental Assessment and Review Framework (EARF). This will include, but not be limited to;

85. NAC will submit the categorization environmental assessments, and monitoring reports to ADB for review in a timely manner. Table 3 provides the responsibilities and authorities of key organizations involved in the implementation of the EARF.

P a g e | 20

86. The PIU is staffed with the national Environmental Officer (EO) and will be supported by an International Environmental Specialist (IES). The IES will be part of the NAC during the Project with the primary tasks to: (i) strengthen the environmental management of the Project during detailed design, bidding process, contract process, construction, and implementation, (ii) provide induction training to contractors prior to preparation and submission of the CEMP for each subproject. Provide assistance to EO and PIU for review and clearance of the CEMPs; (iii) supervise/monitor compliance with the approved CEMP of each subproject; (iv) undertake the necessary institutional strengthening including on-the-job training for the EO of NAC-PIU by giving major tasks to the EO in all of these activities under IES supervision; (v) prepare reports on environmental safeguards activities as required; and (vi) update the EARF and supervise and guide the environmental assessment process for projects to be implemented in the Tranche 3 as part of the PFR.

A. Task of Implementing Agencies

87. NAC-PIU. Table 3 sets out the Institutions responsible for implementing Safeguards Requirements in CADIP Tranche 3. NAC being the Executing Agency (EA) has the primary role of ensuring the Safeguard Measures and Issues are adequately covered. The Environment Officer (EO) is the focal person in providing feedback to environmental and social issues raised during the construction and operational phase of the project. He will be assisted by the International Environmental Specialist on an intermittent basis. On the ground in Momote, NAC’s Safety Officer will oversee daily operations of activities and can notify the EO of serious environmental noncompliance and the EO will visit to remedy the complaint.

88. ADB. ADB through the Papua New Guinea Resident Mission will provide guidance as to the submission of periodic monitoring reports from NAC that would meet ADB’s standards and guidelines before these are uploaded onto ADB website.

89. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the monitoring and progress of the project as per loan covenant.

90. Contractor. The Contractor is to submit a Contractors Environmental Management Plan (CEMP) for approval by NAC and ADB on the mitigation measures that it will take in the implantation of the project. This CEMP will be approved and used in the submission of regular reports to NAC who will submit to ADB for perusal and approval.

91. CEPA. CEPA as the overseers of the Environmental Act 2000 will be updated on the submission of this IEE and its coherence with similar categories which is an Environmental Inception Report. This will be noted and assessed for compliance and under new fee arrangements the NAC may be liable for an assessment fee leading to a permit for the sub project.

P a g e | 21

Table 2: Design, Construction and Operational Environmental Management Plan

MITIGATION INSTITUTIONAL MITIGATING MEASURES SIGNIFICANCE OF EFFECTS LOCATION POSSIBLE EFFECTS COSTS RESPONSIBILITY NOT SMALL MED MAJOR A. IMPACTS DUE TO AIRPORT LOCATION 1. Disruption of Surface

Water a. Changes in hydrological Airports and i) Impairment of aquatic ecology i) Dimension of drains X X NIL PIU/EO regimes surrounding areas ii) Drainage disrupted ii) Diversion of stream X NIL PIU/EO iii) Drinking water source iii) Use of grassed areas for runoff NIL PIU/EO b. Pollution as leaking Downstream from i) Impairment of aquatic ecology i) Location of stockpiles on paved areas X X NIL PIU/EO from construction areas ii) Drinking water source ii) Removal of stockpiles after construction NIL PIU stockpiles and spoils iii) Re-vegetation after construction NIL 2. Disruption of groundwater a. Changes in hydrological Airports and i) Impairment of yields X NIL PIU regimes surrounding areas b. Pollution by spoils Downstream from i) Impairment of drinking water X NIL PIU leachate construction areas 3. Changes in nearby land Surrounding areas I) Increase in vicinity of Airport X NAC/PIU values and nearby villages 4. Loss of aesthetics Vicinity of Airports i) Loss of aesthetic value of land i) Landscaping and re-vegetation X USD10,000 Contractor/PIU B. IMPACTS DUE TO DESIGN 1. Slope erosion Airport vicinities I) Installation of silt traps on all drains X Contractor/PIU i) Siltation of rivers affecting hydrology and water quality USD5,000

iii) Proper disposition of hazardous and toxic materials iv) Connection of Airport to main sewer line or construction of proper septic tanks of adequate capacity C. IMPACTS DURING CONSTRUCTION 1. Sediment runoff Downstream of 10 Damage to aquatic/marine i) Locate stockpiles in controlled areas X USD10,000 Airport sites and ecology and/or flooding issues ii) Sub-grade and sub-base material placed waterways quickly after removal of topsoil

3. Communicable i) Risks to worker’s health i) Contractor to source labourers and workers X NIL Contractors/PIU disease hazards Airport site and from the nearby villages adjacent villages and settlements

4. HIV and other Airport site and i) Risks to worker’s health X X NIL Contractors/PIU communicable adjacent villages ii) Risks to residents i) Contractor to source labourers and workers NIL Contractors/PIU diseases and settlements from the nearby villages

ii) Contractors to increase awareness of workers

P a g e | 22

SIGNIFICANCE OF EFFECTS INSTITUTIONAL POTENTIAL MITIGATION L OC ATI ON P OSS IBLE EFFE CTS MITIGATING MEASURES RESPONSIBILIT IMPACTS NOT SMALL MED MAJOR COSTS Y 5. Slum creation Airport sites i) Slums forming in construction sites after i) Demolition of structures as part of X USD10,000 Contractors/PIU risks completion of works abandonment plan 6. Cultural Airport site and i) Social disruption i) Contractor to source labourers and workers X NIL Contractors/PIU differences adjacent villages from the nearby villages risk/social conflicts and settlements 7. Escape of Airports vicinities i) Health risks to residents of nearby communities i)Installation of oil and other traps on drains X NIL Contractors/PIU hazardous materials /villages ii) Development of safe storage areas and (cost included

residential and settlement areas item C. 9.) iii) Provide workers with Personal Protective Equipment (PPE) 10. Water pollution Ancillary facilities Ii) Contamination of nearby water i) Proper solid waste management system to X Contractors/PIU from domestic courses and land be practiced in work areas USD5,000 sewage and wastes 11.Ground and Ancillary facilities i) Damage to surrounding areas i) Collect and recycle petroleum products X Contractors/PIU water contamination from improper handling of ii) Development of spill contingency plans USD15,000 from oil and grease materials iii) Construction of bund walls and drainage systems around fuel storage areas 12.Disruption of Nearby i) Disruption of services I) Investigate limits to required services and X NIL Contractors/PIU utilities settlements minimize disruptions 13.Increase in traffic Surrounding areas i) Traffic congestion in major i) Prepare traffic management plans X NIL Contractors/PIU

roads 14. Demobilization Ancillary facilities i) Solid waste generation i) Preparation of abandonment plan X Contractors/PIU ii) Demolition of temporary offices and Contractor’s Depot Area USD10,000 iii) Dismantling of ancillary facilities iv) Re-vegetation of exposed areas v) Proper disposition of construction debris D. IMPACTS DURING OPERATION AND MAINTENANCE 1. Noise nuisances Nearby i) Noise pollution i) Establishment of buffers between airport X NAC/PIU/ CEPA settlements and nearby settlement areas ii) Preparation of operational procedures by USD15,000 Airport Operator based on ANZECC 1992 or Australian Noise Exposure Forecast (ANEF). 3. Water pollution Downstream of i) Contamination of surface and i) Proper handling, storage and disposal of X NIL PIU/ CEPA Airports groundwater resources petroleum, hazardous and toxic materials ii) Development of spill contingency plans 4. Air pollution Airport vicinities i) Health hazards and nuisances i) Regular monitoring of air quality in the X PIU/CEPA USD15,000 to nearby villages and settlements vicinity of the airports and sensitive receptors 5. Increased traffic Airport vicinities i) Traffic congestion in major i) Preparation of Traffic Management Plans NIL PIU/Local and roads Government Units major roads into the Airports PIU – Project Implementation Unit; DC –Design Consultants; CEPA –Department of Environment and Conservation USD000,000 – Cost quoted are estimates and will be finalized upon completion of Detailed Design (to be included in Bill of Quantities-BOQ)

P a g e | 23

Table 3: Institutional Responsibilities for Implementing Safeguards

23 P a g e | 24

ADB During the implementation of Tranche 3, ADB will:  Regular reviews and approval of subproject IEEs.  Provide technical guidance to the NAC as needed.  Reviewing regular monitoring reports and officially disclosing the summary environmental assessments for selected subprojects (Category A and B sensitive) on the ADB website.  Review environmental assessment reports as a basis for subproject approvals. Disclose assessments of category A subprojects, and category “B sensitive” subprojects for 120 days via ADB websites (as required) before a PFR is submitted to ADB.  Monitor the EMP implementation, as required, and conduct due diligence as part of MFF reviews.  Provide assistance to NAC, if required, in carrying out its responsibilities and for building capacity for safeguard compliance.  Ensure that the NAC will conduct the required consultations with project affected groups and local NGOs in PNG, and that the NAC as project sponsor disclose relevant environment information on the project’s environmental issues in an appropriate form, manner, and language(s) accessible to those being consulted. Such information disclosure with affected people will be guided by the Public Communication Policy (2011). Contractors  Based on site specific conditions, prepare Contractor’s Environmental Management Plan (CEMP) for each site  Implement and report on CEMP as part of pavement strengthening and rehabilitation activities  Prepare monthly CEMP report as part of progress reports and submit to PIU. The report will also include the Monthly Accident Report and measures undertaken to address any non-compliance issues identified by the PIU (or CEPA). CEPA  Administration and enforcement of the Environment Act 2000 and

24 P a g e | 25

its regulations as it pertains to the project  Identify whether EPs (with or without conditions) required for any identified site  Review IEE and other documentation required  Administer Contractor Waste Disposal permit applications and performance

92. The IES will be engaged intermittently for eight person-months during the Tranche 3 also in Tranche 4 period and will be assigned on an intermittent basis to undertake training and capacity building for environmental management in NAC and to guide the EO of PIU in preparing assessments, monitoring and reporting. The IES and EO will jointly be responsible for overall environmental management of Tranche 3.

C. Monitoring and Reporting

93. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

94. Monitoring during construction will be the responsibility of the contractor and NAC (carried out by EO) and IES within the PIU. Monitoring will relate to compliance with construction contracts (including EMP measures and provisions), the state and health of the nearby environmental resources, and the effectiveness of mitigation measures and complaints. Monthly progress reporting will include a summary of this monitoring submitted to the NAC on a regular basis (at least quarterly) and to ADB semi-annually.

95. The estimated cost for the monitoring plan is $34,000. The costs of the environmental mitigation plan will be part of the construction costs (Annex A).

96. Table 4 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 5 states the roles and responsibilities for environmental monitoring. Table 6 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipment to be procured by the contractor or through specialised firms. Table 7 shows the summary of the environmental management costs including implementation and monitoring costs.

97. The PIU will be responsible for reporting progress of Tranche 3 to NAC and ADB. Monitoring of each contractor will cover monthly progress and CEMP implementation and compliance (including general good practice). A section on safeguards activities and compliance with the CEMP for each subproject will also be included in quarterly progress reports (QPR) prepared for NAC and ADB.

98. The reporting will be as per the following schedule:

25 P a g e | 26

 A report prepared every 3 months (the QPR) prepared by the PIU. The QPR will include a section on safeguards activities and CEMP compliance for each subproject and will summarize the monthly reports submitted by the contractors; and  A semi-annual safeguards monitoring report (prepared every 6 months) by the IES and EO. 99. The Project completion report will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the IEE and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

P a g e | 27 Table 4. Environmental Monitoring Plan

PARAQMETRES TO BE PHASE/IMPACT MITIGATING MEASURE MONITORED STANDARDS LOCATIONS1 DURATION FREQUENCY IMPLEMENT SUPERVISE PRE-CONSTRUCTION PHASE 1. Erosion, i) Drainage design Capacity sufficient for 80% of 30 Momote Airport Detailed Once at Design PIU siltation and ii) Use of gently sloping grass i) Drains are of sufficient quantity year maximum Design Detailed Contractor and size to accommodate flooding of surfaces Phase Design Phase waterways iii) Silt traps in all drains additional volume ii) Silt traps are of sufficient quantity and size to protect surrounding areas from siltation CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

1 Specific sampling station will be defined during the conduct of the baseline survey before commencement of works

P a g e | 28

Table 5: Roles and Responsibilities for Environmental Monitoring Implementation Implementation No Environmental Monitoring Tasks Responsibility Schedule 1 Design Phase Disclosure of subprojects to CEPA 1.1 NAC-PIU, EO Prior to construction and monitor permitting. Audit project bidding documents to ensure IEE and EMP included in bids NAC-PIU (by IES 1.2 Prior to issue of bidding documents. and environmental criteria are and EO) included in evaluation. 2 Construction Phase First orientation/briefing 1 month prior to NAC-PIU (by Orientation and briefing of contractor’s commencement of each contract and 2.1 management, site agents with regards IES refresher orientation/briefing at least to all IEE and EMP requirements. and EO) yearly during construction period. Monitor the performance of environmental training by contractor NAC-PIU (by Ongoing, prior to and during 2.2 and briefings and of the environmental IES implementation of works and operation. awareness of Contractors staff, tool box and EO) talks and & refresher courses. Regular (monthly) monitoring and NAC-PIU (by Continuous throughout construction 2.3 reporting (quarterly) of contractor’s IES compliance with statutory period. and EO) environmental requirements Regular (monthly) monitoring and NAC-PIU (by reporting (quarterly) of contractor’s Continuous throughout 2.4 compliance with contractual IES construction period. environmental mitigation measures and EO) including EMP. Regular (monthly) monitoring and NAC-PIU (by reporting (quarterly) of complaints and Continuous throughout 2.5 IES responses or environmental mitigation construction period. and EO) measures Monitor adjustments to the EMP for NAC-PIU (by During all phases of the 2.6 unexpected impacts and the thorough IES Subprojects implementation of detailed EMP. and EO) Commissioning phase monitoring of NAC-PIU (by facilities versus environmental 2.7 IES At commissioning. contractual performance criteria. Check and EO) EMP compliance. 3 Operation and Maintenance Phase Post construction monitoring of Semi-annual up to 3 years after air/noise/water quality at any sites NAC-PIU (by completion of construction or until air, 3.2 where complaints about water quality EO) noise and water quality meets baseline from works were justified in conditions. construction phase.

VIII. CONCLUSION AND RECOMMENDATION

100. The project will cause short-term environmental disturbances associated with construction activity that will be mitigated by operational procedures during construction, within the framework of a contractor’s approved EMP in line with the EMP stated herein (Table 4) to be supervised by the PIU.

28 P a g e | 29

101. Mitigation measures to prevent or minimize unnecessary impacts are also provided. Potential impacts and risks during construction were also characterized as short term and unnecessary impacts will be minimized through good construction management and housekeeping practices. An EMP containing impact mitigation and monitoring plan to mitigate the potential impacts has been prepared to ensure that the project will be implemented in an environmentally sound and sustainable manner.

102. Positive impacts to the local economy will accrue through new income earning opportunities for locals generated by demand for labour, women participation to semi- skilled during construction; and airport staffing and management arrangements, and through the creation of new non-aeronautical business opportunities in the terminal facilities and surrounding areas.

103. This IEE concludes that in the context of appropriate mitigating strategies described above, and the positive environmental benefits to flow from the Project, environmental impacts can be managed within acceptable levels. There are no significant environmental impacts needing further detailed study. All potential and associated impacts can be addressed through implementation of the mitigation measures as proposed in the IEE. Provisions will be made in the Project Budget to cover the environmental mitigation and monitoring costs.

29 P a g e | 30

ANNEX A: ENVIRONMENTAL MONITORING PLAN

Table 6: Matrix of EMP for Gurney Airport

ENVIRONMENTA PLANNED EQUIPMENT COST OF INDICATOR MONITORING L AREA OF REQUIREMENTS MONITORING PARAMETER FREQUENCY PARAMETER MONITORING AND (MONTHLY COST (US$) COST IN US$) Monthly During Construction Sulfur dioxide Period/Semi-Annual During Operation Period 1 Unit - PM10 Portable US500.00 Nitrogen US$2500 (includes dioxide Monthly During 1 Unit - 3 Gas transportation Construction Analyzer and lab Period/Semi-Annual Portable analysis) During US$2000.00 Operation Period Air and 2 stations Noise Monthly During Total Construction Suspended Period/Semi-Annual Particulate During Operation Period 1 unit – Noise Monthly During Metre Construction US$500.00 US$400.00 Noise Period/Semi-Annual ((includes During transportation Operation Period and lab analysis) Temperature pH Biological Oxygen Demand (BOD) Dissolved Monthly During US600.00 Oxygen (DO) 1 Unit Portable Construction (includes Water Oil and Grease Water Period/Semi-Annual 1 Station transportation Quality Total Coliform Quality Analyzer During and lab Count US$2000.00 Operation Period analysis) Total Suspended Sediments (TSS) Total Dissolved Solids (TDS)

30 P a g e | 31

Table 7: Summary of Costs for the Proposed Works

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000

Impacts During Construction 98,000.00 Sub-Total 128,000.00 MONTHLY MONITORING 2 PARAMETER EQUIPMENT (US$) COST (US$) (US$) Air and Noise One set of equipment for EO 900.00 21,200.00

Water Quality One set of equipment for EO 600.00 12,800.00

SUB-TOTAL 1,500.00 34,000.00

GRAND TOTAL 162,000.00

31 P a g e | 32

ANNEX B: PHOTOGRAPHS

Photo 1: ROAD PARALLEL TO THE RUNWAY WITH OIL PALM TREES

Photo 2: COMMUNITY CONSULTATION AROUND THE MARKET AREA

P a g e | 33

Photo 3: EXISTING TERMINAL AT GURNEY AIRPORT

Photo 4: CONSULTATION WITH MB PROVINCIAL ADMINISTRATION

3. Kavieng Airport Initial Environment Examination

EXECUTIVE SUMMARY

III. An environmental assessment and review framework (EARF) has been prepared to guide environmental safeguards implementation for Tranche 3. In accordance with the EARF this Initial Environmental Examination (IEE) presents the environmental assessment of one of the project under Tranche 3 – Pavement Strengthening, Runway Extension and Associated Works at the Kavieng Airport, New Ireland Province, and PNG. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Safeguard Policy Statement 2009 and the GoPNG Environment Act 2000. The key environmental impacts on the physical, natural and human environments have been assessed.

IV. The main findings of this IEE indicate that the impacts that will arise from Kavieng Airport Runway Extension & Associated Works will be minimal and contained within the project site. The works will involve runway extension, pavement strengthening and associated works for duration of 18 months. The project is classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

V. The potential environmental impacts associated with the project particularly occur during the construction and operation phases which will typically involve:

VII. A Grievance Redress Mechanism set up in Tranche 1 and 2 will be used in Tranche 3 and the Provincial Administration is fully aware of its role. Public support during consultation for the project was unanimous and the community wanted the project to commence immediately as they seek possible job opportunities with contractors. The new terminal and market will provide business opportunity for landowners and the community to participate.

VIII. The upgrading of the Kavieng Airport is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the F100 aircraft, or similar.

I. INTRODUCTION 1. The Government of the Independent State of Papua New Guinea (GoPNG) has requested the Asian Development Bank (ADB) to provide a multi-tranche financing facility (MFF) to facilitate investments to improve the current state of the country’s domestic air transport system under the Civil Aviation Development and Investment Program - (Investment Program). The first two phases (Tranche 1 & 2) has had its clearance done and this is Tranche 3. Tranche 3 will cover (twelve) major airports in the country where they have been identified for upgrading and rehabilitation mainly based on the relative importance of these airports as domestic hubs for tourism and economic development on a regional basis. The Program is a comprehensive plan to upgrade, rehabilitate and maintain major domestic airports in Papua New Guinea (PNG). The executing agency (EA) for the Program is the National Airports Corporation1 (NAC).

2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the subprojects under Tranche 3 – Pavement Strengthening, Runway Extension and Associated Works at Kavieng Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Sourcebook (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment.

3. The main purpose of this IEE is to identify impacts from the runway extension, pavement strengthening and associated works of the Kavieng Airport, New Ireland Province (Figure 1) and mitigations required to address them.

4. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Sourcebook (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment. A. Overview

5. The proposed investment program will entail the upgrading and rehabilitation of the following existing airports (Tranche 3): Madang; Mendi; Vanimo, Kerema, Kiunga, Tari, Momote, Kavieng, Buka, Gurney, Wewak and Mt Hagen. The upgrading and improvement of these major domestic airports is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the runway, taxiway and apron capability to accept unrestricted operations by Fokker 100, Dash 8 and QF 400 aircrafts.

B. Environmental Regulatory Compliance

6. The environmental regulations of GoPNG are derived from the Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects that need environmental assessment as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Projects that likely to have significant adverse environmental impact (Level 2 and Level 3) are required to obtain an Environmental Permit (EP) from the Environment and Protection Authority (CEPA) following environmental assessment. The upgrading and rehabilitation of existing airports is not listed as Level 2 and Level 3 of the “Prescribed Activities”. However certain associated project activities commonly associated with upgrading and improvement works such as earthworks, surfacing, discharge of waste water, establishment of borrow pits, sourcing and extraction of aggregate materials from surface water courses are Level 2 activities that may require an EP depending on the duration and scale of those activities.

1 Project 1 rehabilitation work was under the Civil Aviation Authority (CAA) and was the predecessor for NAC.

FIGURE 1: MAP OF PAPUA NEW GUINEA AND LOCATION OF KAVIENG AIRPORT

7. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the subprojects to CEPA so that CEPA can decide whether any specific environmental requirements will be needed for the proposed airport upgrading and rehabilitation. Considering the government environmental requirements and ADB Environmental Safeguard Sourcebook (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

8. Pollution standards are described for the protection of marine and aquatic life in fresh and marine waters in the Environment (Water Quality Criteria) Regulation 2002. These standards will be referred to for water quality monitoring during the environmental management of the subprojects.

C. Environmental Category of the Subproject

9. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Sourcebook (2012) Tranche 3 projects are classified as Environmental Category B that requires an IEE.

D. Objectives and Scope of IEE

10. The objectives of this IEE were to:

 Assess the existing environmental conditions in the project area including the identification of environmentally sensitive areas;  Assess the proposed planning and development activities to identify their potential impacts, evaluate the impacts, and determine their significance; and  Propose appropriate mitigation measures that can be incorporated into the proposed activities to minimize any adverse impacts, ensure that residual impacts are acceptable and propose monitoring and planning of projects under Tranche 3.  This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

11. Following this introduction this report contains seven more sections including (ii) description of subproject; (iii) description of the environment; (iv) screening environmental impacts and mitigation; (v) public consultation; (vi) institutional requirements and environmental management plan; (vii) findings and recommendations; and (viii) conclusions.

II. DESCRIPTION OF THE PROJECT

12. The current state of the airports in PNG is inadequate to meet the increasing demand for air travel both for tourism and commercial purposes. This, in essence, presents itself as an obstacle to further economic growth and development of major regional centers in PNG and the country as a whole. The identified major domestic airports need to be upgraded and improved to meet the international standards and requirements and make it safety compliant as prescribed by the International Civil Aviation Organization (ICAO).

13. Tranche 3 of development investments under CADIP will be the upgrading and rehabilitation of the existing Kavieng Airport in the New Ireland Province; Mendi Airport in Southern Highlands Province; Madang Airport in Madang Province; Vanimo Airport in West Sepik Province, Mt Hagen in Western Highlands Province, Wewak Airport in East Sepik Province, Tari Airport in Hela Province, Gurney Airport in Milne Bay Province, Kerema Airport in Gulf Province, Kiunga Airport in the Western Province, Buka Airport in the Autonomous Region of Bougainville and Momote Airport in the Manus Province. Only the scope of works for Kavieng Airport is in Table 1.

Table 1: Scope of Work for Kavieng Airport

Sub Project Location Proposed Development Works Kavieng New Ireland A. Aircraft Pavements and Associated Airside Works Airport Province 1. Repairs to existing aircraft pavement (Rwy, Twy & Apron); 2. Strengthen existing aircraft pavements (Rwy, Twy & Apron); 3. Extend Runway by 406m to the SW end to give 1900m overall length including new turning nodes; 4. Construct stop ways at both existing end and extended end of runway; 5. Construct RESA at both existing end and extended end of Runway; 6. Expand Apron to cater for 2Nos. F100 and 1No. Dash 8 aircraft; 7. Construct 3.0m wide full strength shoulders to Runway on each side; 8. Construct 5.0m wide full strength shoulders to Taxiway on each side; 9. Construct 5.0m wide full strength shoulders to Apron; 10. Construct temporary access taxiway. (for use by aircraft during applicable construction stages) 11. Earthworks to flank areas adjacent to the runway, taxiway and apron shoulders. 12. Runway Strip widening to 150m wide including earthworks, grading, and top soil and grassing; 13. Aircraft Pavement Line Markings; 14. Construct reinforced concrete wheel pads for 2 x F100 aircraft parking bays; 15. Supply and apply 2-coat aircraft fuel resistant membrane (Master Seal II TM) on 2 x F100 and 1 x Dash 8 aircraft parking positions; 16. Construct Open Unlined Drains (OUD) either side of widened runway strip; 17. Install subsoil drains on full length of runway on both sides; 18. Construct 60m long RC box culvert beneath taxiway; 19. Construct 24m long RC box culvert beneath temporary taxiway; 20. Construct 6m long 600mm dia pipe drain west of taxiway; and 21. Construct 2Nos. 7320m long twin 1200 dia. Culverts beneath new fence installation at NW end; B. Landside Works, Airfield Lighting and Electrical Works, and Associated Works 22. Install 4Nos. Floodlights to apron and carpark areas; 23. Relocate and adjust PAPI landing aid system including associated electrical works, flight test and commissioning a the extended end of the runway; 24. Install new strobe lights at both the existing end and extended end of the runway; 25. Construct new Concrete encased cable duct beneath taxiway; 26. Carpark extension including kerb and gutter and associated drainage works; 27. Construct new terminal building including electrical and plumbing reticulation and associated facilities; 28. Construct new power house including electrical reticulation; 29. Construct 1 x lockable 4 bay shed for Tractor, Slasher, Trailer and Hay Bailer; 30. Construct 1 x Southern Cross Tanks stand including reticulation; 31. Construct 1 x 3 Bedroom Standard H65 House on high post with storeroom underneath in NAC compound for NAC Safety Officer’s Residence; 32. Supply and Install 2 x 150kVA Standby Generator set including electrical reticulation; 33. Supply and deliver to site 1 x MF 435 4WD 80HP Diesel Tractor with Canopy and 1 x Heavy Duty 2.40m dia Superior LX240 Slasher complete with connections to link to MF 435 Tractor including trailer and hay bailer; 34. Supply and install 2 x new Wind Indicators (Primary and Secondary); and 35. Provision for Bore water supply including bore pumps, treatment storage tanks and reticulation. Note: 36. Allowance is made for other miscellaneous works including General and Preliminary items.

14. Kavieng Airport is situated at 020 34`45” S 1500 48` 28” E 500 metres east of Kavieng Town, Provincial Headquarters of New Ireland Province where banks, post office, business houses, hotels and guest houses are. Figure 1 shows the map of PNG and location of Kavieng. Figures 2 and 3 shows the general layout plan and the aerial view of the existing Kavieng Airport.

15. The airport serves the people of New Ireland and provides for air transport services with its daily flights into the provinces and has been of importance for tourism, the Lihir Gold Mine and also Poliamba Oil Palm Operations.

16. Annual rainfall that the province receives ranges from 2800 to 3200 mm on New Ireland and Lavongai, with extremes of 3600 mm on the small island groups. It may also be greater during the period of December to October. New Ireland is the one of the island provinces in PNG with a land mass of approximately 9600 km2 of small island groups and the main island of New Ireland and its elevation ranges from sea level to over 2000 m in the 0 Hans Meyer and Verron ranges2 and corresponding temperature ranges from a low of 28 C to a high of 340 C. Humidity ranges from 60s to highs of 70s. Winds are at 9 km per second from the north and there is about 51% cloudy cover for the 29/1/163. This cover ranges according to the level of precipitation and climate variation.

17. The existing bitumen runway is 1,704 metres long with a width of 45 metres and is aligned northwest/southeast along the New Ireland Peninsula. The airport land is at low elevation about 7 feet or 2 m ASL and is about 2 kilometres off the coastline covering a total land area of approximately 9 hectares.

18. The airport land is flat (0 degree) running the length of runway from northwest to southeast. There are no notable lined drains running parallel of the runway on both sides although these paths permit drain water down to both sides and some of these drain through the limestone substrate and permeate through there. Hence there is no notable erosion feature along the length of the runway with maintained grass cover.

19. The airport runway and immediate fly-over areas are fenced and the runway extension to the south east will require fencing to be adjusted to cover the extension and the adjusted fencing will be in the scope of work for this IEE. The facilities in the existing Kavieng Airport include the terminal building, terminal and small office operated by mostly Air Niugini and NAC. There is little evidence to suggest that third level airlines use some of the offices at Kavieng. No hanger exists at present and other buildings within the airport are the Puma Energy Fuel Depot and pumps. There is no separate apron for third level airlines. Kavieng Airport’s sewerage system is a standalone system (septic tanks) and is not connected to the main sewer line.

20. The proposed changes to the airport include extending the runway by 406 metres to the southwest to a total of 1900m. Kavieng came under aerial bombardment in World War II by Japanese forces and the vast majority of Australians were evacuated while almost all of the Europeans who had remained on the island were killed by the Japanese. The perpetrators were later sentenced for war crimes. The Allies recaptured the island in 1945 and Kavieng town was rebuilt. A number of wartime relics remain including a bunker. 21. Today Kavieng is home to a thriving tourism industry. Dive, trekking, and surf tourism predominate with all of the tourism depending on the rich biological diversity of New Ireland. The surf tourism industry has entered into partnerships with local land and reef owners to

2 Hanson, L.W., Allen, B.J., Bourke, R.M. and McCarthy, T.J. (2001). Papua New Guinea Rural Development Handbook. The Australian National University, Canberra. 3http://www.airportdistancecalculator.com/kavieng-airport-kvg-15-day-weather-forecast.html#.Vqq_8fl96M8.Sighted 28/1/16.

develop what they refer to as a "surf management plan." This plan provides resource owners with income from the surfers and limits the number of surfers on any break at one time4.

C. Salient Features of the Project

22. The Proposal is to upgrade the Kavieng Airport to make it safety complaint to cater for the increasing air traffic that could accommodate and be suitable for the operation of F-100 and related aircrafts. In recent years, diving and adventure tourism and new businesses have sprung up and makes the runway extension to be worthwhile for the accommodation of larger aircrafts in the future.

23. All proposed activity such as the increased pavement and runway area are on the National Airports Corporation land. Activities under Batch 3 will include the following;

� Strengthening existing Runway, taxiway and apron; � Extending runway by 406m to give 1900m overall length including new turning node; � Construction of a 90 metre runway end safety zone (RESA) at southern end and stop way; � Widening of the existing flight strip to 150 metres; � Improvement to airside drainage system including � construction of subsoil drainage and Open Lined Drains (OLD); � Install a Precision Approach Path Indicator (PAPI) lighting system � including concrete base footings, trenching, electrical reticulation, inspection pits, flight testing and commissioning; � Widening runway strip to 150m wide; � Construct reinforced concrete pad on 1 X F 100 aircraft parking Bay � Apply pavement markings and fuel resistant membrane on General Aviation Apron; � Construct Power House including electrical reticulation with 2 x 150kVA Generators; � A full listing of activities is stated in Table 1.

24. The Kavieng Airport re-development would involve earthworks as follows:  Estimated materials and earthworks quantities:  Cut to stockpile 100mm topsoil for future re-use - 300,000m2  Excavation earthworks - 200,000m3  Pavement construction material (crushed base course) - 100,000m3  Topsoil will be used and/or be re-used for topsoil and grassing  Excavated in-situ material will be used in landscaping and or flight strip widening and grading.  All materials will be stockpiled at a designated location on the airside.  Base-course material shall be crushed gravel – brought in limestone quarries in the vicinity of Kavieng. Trucks shall cart material from source and stockpile on-site  Contractor’s Site shall be located at the Airside (Area approx. = 100m x 50m).

4 https://en.wikipedia.org/wiki/Kavieng. Sighted 27/1/16.

FIGURE 2: GENERAL LAYOUT PLAN OF THE KAVIENG AIRPORT

FIGURE 3: AERIAL VIEW OF KAVIENG AIRPORT WITH PROPOSED CHANGES

III. DESCRIPTION OF EXISTING ENVIRONMENT

23. New Ireland is in the northeast of PNG and consists of 9000 km2 of small island groups and the main island of New Ireland. The outer edge of the island of New Ireland is made up of narrow coastal limestone plains floodplains and hills. The north of the island is dominated by the plains and floodplains of Balgai Bay and the mountains the Schleintz Range that extend from Kaut in the north to the Lelet Plateau in the middle of the island. The narrow northern part of the island between Karu Bay and Namatanai is dominated by low altitude hills.

24. The altitude on New Ireland varies from sea level to over 2,000 m in the Hans Meyer and Verron ranges. Most people live between sea level and 300 metres. The highest place where agriculture is practiced is on the Lelet Plateau at 1000 metres, Average annual rainfall ranges from 2800 to 3200 mm on New Ireland and Lavongai, with extremes of 3600 mm on the small island groups. An important goId mine is located on Lihir Island. The two districts in New Ireland are Kavieng and Namatanai5.

FIGURE 4: MAP OF NEW IRELAND PROVINCE

5 Hanson, L.W., Allen, B.J., Bourke, R.M. and McCarthy, T.J. (2001). Papua New Guinea Rural 12 Development Handbook. The Australian National University, Canberra.

A. Physical Environment 25. Land Resource and Utilization. Kavieng airport is aligned in a NW SE direction in the vicinity of Kavieng town and surrounded by the town to the left and right residential buildings belonging to individuals and institutions such as the National Fisheries College. The terminal has offices operated by Air Niugini and NAC offices. The proposed extension and the runway end safety area (RESA) extend into customary land that is being arranged to be acquired by NAC.

26. Meteorology and Climate. All of PNG is tropical experiencing the northwest monsoon from December to March and the southeast monsoon from May to October. New Ireland Island is two degrees from the equator and has elevations from sea level up to over 2000 m ASL with temperatures ranging from 30 - 34° C during the day and 22 - 300C in the night. Humidity is high from 60 – 80%.

27. Annual average precipitation ranges from 2800 to 3200 mm with July and August being wetter months. There is no notable dry season on the island. Wind speed varies from about 20 km/h and low about 5 km/h and comes from the north direction in January although it varies throughout the year. Cloud cover is occasional covering from 20 to 55% of the sky.

28. In PNG the current El Niño/La Niña weather phenomenon brought about drought, high sea levels, extreme winds and extreme air temperatures which are already affect thousands of people in PNG. After the droughts, extreme rainfall events will bring about flooding and landslides and erosion will follow. The latter is being experienced in 2016.

29. Topography, Geology and Soils. The geology and topography of Kavieng is predominantly coastal coral limestone plains and flood plains with also volcanic rocks such as andesite, gabbro and granodiorite that provides the gentle sloping plains and mountains on mainland New Ireland and islands such as New Hannover, Lihir and Simberi.

30. Around the airport, the grass surface is underlined by limey and silty soils consisting of entisols and inceptisols6 which are very young soils with little or no profile and moderately weathered soils. Grassland stretches right round the perimeter of the airport.

31. Mineral Resources. In New Ireland, the Lihir and Simberi Gold Mines represent the richness of minerals in New Ireland although none has been developed on the mainland. Exploration continues but the exploration tenements are not known at this stage. These mines are 200 and 300 km to the south east of Kavieng airport.

32. Surface and Ground Water Resources. The Kavieng airport in New Ireland island is influenced by its own catchment and run off regimes where run offs drain through open unlined drains which run parallel to the airport runway. There is no noticeable erosion area and most of the rain water percolates through the limestone substrate and into ground water aquifer. No water quality was taken during the IEE investigation and surrounding areas are well drained.

B. Biological Environment

33. Forest Resources. In New Ireland Island, logging activities have had mixed reactions from the community and some of the species representing the lowland, swamp and beach forests have been heavily logged.

34. Around the airport to the proposed extension site are remnants of secondary forest (Annex

6 Bourke, R.M. and Harwood, T. (eds) (2009). Food and Agriculture in Papua New Guinea. ANU E Press, The Australian National University, Canberra.

B) together with pitpit (Miscanthus Floridulus) and kunai grass (imperia cylindrica) and these have been extensively being used for building materials and now a number of garden plots are in that area. There is no primary forest and also habitats for animals such as wild pigs (Sus scrofa), have already been destroyed here.

C. Social-Cultural Environment

35. Population and Demography. PNG is the largest Pacific island country in total land area (some 460,000 square kilometers) and second in respect to ocean area (some 3 million sq km within its Exclusive Economic Zone [EEZ]). The average population density is about 12 people per sq km, making PNG the country with the lowest density in the Pacific region. Average density in this case is very misleading as there are great differences between provinces.

36. Kavieng, the Provincial Capital, had a population of 17,248 people7 (estimated in 2009) this figure would have increased with the increase in better health services in the mainland of New Ireland. Life expectancy in PNG is 62 years8 in 2013 and the adult literacy rate is approximately 58 % although on New Ireland Island, the rate is 77.4% 9.

37. PMVs travel throughout New Ireland Island and there are bicycles available for tourists and hotels guests at adventure accommodation to sight see. Kavieng has diving, game fishing and adventure tourism which hosts international visitors and is a popular tourist destination.

38. Cultural and Historical Sites, Schools and Buildings. There were no sites of cultural significance found near the area of the proposed development (Kavieng Airport). It is possible that war artifacts or such sites may be in the surround shrubs and these will be removed when the runway extension is built and the PNG Defense Force will be notified in checking for unexplored ordinates (UXO) before clearing commences. The National Museum will be notified when cultural artefacts are found.

39. Health and Sanitation. The greatest health concern in PNG is Malaria occurring a quarter of Disability Adjusted Life Year (DALY) (NDOH 2010). This is followed by pneumonia, accidents and injury, chronic respiratory disease and maternal death. AIDS/HIV has been a disease of possible epidemic proportions although the inaccurate data do not provide a total prevalent figure between the target age group of 25 -34 in males and 20 – 34 in females. Most of these high occurrences are on the mainland provinces of PNG while the percentage is low in the New Guinea Islands and on New Ireland Island it is 0.2 % recorded from 1987 to 200810.

IV. SCREENING ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

40. This section provides an assessment of the likely impacts associated with the pavement strengthening and associated works and ways to mitigate and/or manage them. The works will not result in any significant changes in environment beyond allowable land that will be acquired beyond the airport boundary. The assessment focuses on pre-construction, construction and operational stage impacts.

A. PRECONSTRUCTION 41. A number of activities will occur during the preconstruction phase where there is (i) the Establishment of Contractors Site and Facilities, (ii) Constructions Workers Accommodation and (iii) Stockpiling of Construction Material.

7 https://en.wikipedia.org/wiki/Kavieng. Accessed 29 1 16. 8 http://countryeconomy.com/countries/papua-new-guinea Accessed 19 10 15. 9 NRI 2010, NRI District and Provincial Profile, Port Moresby. 10 NDOH, 2009, 2008 STI, HIV and AIDS Annual Surveillance Report, National Dept. of Health STI, HIV & AIDS Unit.

42. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities.

43. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public Relations Officer is tasked to ensure that these do not occur. 1. Establishment of Contractors Site and Facilities 44. The contractor’s work site establishment (inclusive of stockpiling) will be located outside of the airside and require an area of approximately 100 m x 50 m. Inappropriate disposal of wastewater and effluent from rest room and solid waste can cause pollution. Pollution anticipated to be generated during construction is expected to include day-to-day production of solid waste, domestic sewage, and oil and chemical wastes. The storage and handling of petro-chemicals will require careful management; an important part of the Environmental Management Plan (EMP) will be requirement for an emergency response plan for spills and accidents.

45. The contractor’s depot area and yard/offices will be provided with sanitary disposal facilities that will address the generation of domestic wastewater and proper solid waste management. Silt traps shall be established around areas identified for clearing and drainage works to prevent siltation of any surrounding waters. During the pre-construction and construction period an adequate supply of an appropriate quality of water will be provided for both domestic (for the contractor’s depot area) and other purposes (construction activities i.e. concrete mixing, cleanup of machineries and washing of trucks).  Mitigation measures include:  Restricting the contractor to a single, pre-planned construction site;  Requiring the contractor to install a septic tank or mobile toilets (if not connected to the main sewerage system) of adequate capacity;  Establishing mechanisms for grey water to be managed according to site conditions;  Requiring that all lubricants be collected, stored correctly and recycled;  Ensuring that the contractor has a spill contingency plan including drainage/settling pond control, bunds-drainage around fuel and storage areas;  Provision of receptacles for rubbish and rubbish to be disposed of at approved site; and  Banning of burning of rubbish or waste permitted at yard or work site.  Provision of complete and proper PPEs to workers

2. Construction Workers Accommodation

46. Establishment of contractors’ camp site will also comply with mitigation measures of waste management. Otherwise, contractor will rent a small compound for the skilled staff (10-15 persons) recruited for the construction works such as the Pavements Supervisor and Foreman, Mechanical Supervisor and Plant Operations Supervisor, etc. All other skilled and unskilled personnel which are estimated at 30- 40 persons shall be sourced locally and would not require housing in campsite.

3. Stockpiling of Construction Material 47. The development works (i.e. pavement strengthening, flight strip widening, construction of shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and laying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the

supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the Contractor’s Environmental Management Plan (CEMP) with cleanup initiatives undertaken as required. Mitigation measures include:  Transportation of materials to be limited to short periods to minimize traffic disturbance;  Transportation to be only during the dry days when unsealed roads are strong and also to lessen impacts on nearby residences, run-off and soil loss;  Water trucks to be on standby to water-down dust generated from unsealed roads during transportation of materials.  All stockpiled materials to be adequately contained in a bund type of structure to minimize run-off and covered to minimize dust; and  Locate all stockpiled in controlled areas away from water bodies including nearby residential areas.

B. CONSTRUCTION

48. The Constructions phase has a number of activities or induced activities such as (i) Clearing and Grubbing, (ii) Pavement Construction, (iii) Building Construction, (IV) Storage and Handling of Fuel, Oil and Other Chemicals, (V) Health and Safety, (VI) Social Impacts, (Vii) Noise impacts and Air Quality and VIII) Traffic Impacts.

49. All these activities will be confined to the construction area and physical and biological impacts will occur within the shrubs and trees that will be cleared for the new terminal and market buildings. There is the possibility of fuel, oil and other chemicals that will into the water ways although there is no noticeable water way in the vicinity of the construction area. The limestone substrate allows for runoff to permeate through.

50. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the EMP.

1. Construction Activity

51. Clearing and Grubbing. All grubbing of topsoil, clearing of grass areas and trees/shrubs, old fences and culvert materials clearance will require stockpiling in controlled areas during construction. All topsoil, grass and culvert clearance will be cleared and stacked to edges of the fenced area to allow for re-vegetation or taken to designated sites for reuse. Exposure of soil can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation and management measures include:

 Removal of only necessary trees/shrubs as indicated or marked by the Project Implementation Unit (PIU)  Topsoil, grass and spoils resulting from old fence/culvert clearance material clearance to be re-used where possible to provide landscaping in terminal and parking areas; and  The removal of topsoil followed by placement of base coarse material quickly to prevent soil erosion.  Installation of sedimentation controls in drains

52. Pavement Construction. Excavation and disposal of the existing pavement can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. All construction spoils including solid and coal tar

wastes and empty containers from the work areas should be removed from site and transported to the public waste disposal area. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation measures include:

 Locate stockpiles in controlled areas;  Sub-grade and sub-base material placed quickly after removal of topsoil;  Plan construction work during dry season; and cease work during rain  Removal of spoils and construction debris.  Disturbed areas re-vegetated immediately after earthworks completed and/or sealed;  Processing and stockpiling of bitumen and aggregate to be in designated area;  Materials to be stored in bounded area for duration of works;  Drainage controls applied during construction; and  Implement all measures for storage and handling of fuel, oil and chemicals.

53. Building Construction. Building construction such as airport terminal and NAC staff house will commence upon completion of the sub-ground service activities. Building construction shall occur in concurrence with runway pavement upgrading. Mitigation measures include:

2. Storage and Handling of Fuel, Oil and Other Chemicals

54. The use of equipment and plant during the works will require usage, storage and handling of fuel, oil and other materials. Subsurface water resources near the selected subproject road sections could be anticipated to be contaminated by fuel and chemical spills. The following mitigation measures are included in the EMP to reduce the levels of impact associated with such effects:

 Installation of oil and water separators, and traps on drains;  Development of safe storage areas (including bunds) and proper handling of hazardous and toxic materials;  Proper disposal of hazardous and toxic materials;  All vehicles, equipment and appurtenant facilities will be properly maintained during the works to reduce the risk of oil or fuel leakage;  Collect and recycle petroleum products;  Construction of bund walls and drainage systems around fuel storage areas; and  Contractor to prepare spill response plan/measures.

3. Health and Safety

55. During construction activities, work sites, traffic, and operation of equipment, plants and vehicles can pose health and safety risks for workers and the community. Health and safety codes of PNG and World Bank Group’s Environment, Health and Safety Guidelines (as per the SPS) will apply at all sub-project sites. Measures to mitigate risks include:

4. Social Impacts During Construction

56. The presence of a construction workforce can create social impacts such as risk of spread of communicable diseases (such as STIs and HIV) and create social disruption as a result of conflicts between workers from outside and local people. The workforce required for the pavement construction and associated works will be relatively small but wherever possible local people should be employed.

57. The contractor for Kavieng airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Kavieng return to their original place of residence to avoid impacts from informal migration.

5. Noise Impacts and Air Quality

58. Air and noise pollution may be created by earthmoving, operation of heavy equipment and plant, transportation of materials to and from the site, and general works in the dry season generating dust and exhaust fumes such as Carbon Monoxide.

59. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Kavieng airport is located 1 kilometre to the south of Kavieng town. The traffic to and from the road to the airport is not a busy one and vehicles tend to use the other roads into Kavieng town. The airport road is away from sensitive receivers (schools and hospitals), although there are some residential areas adjacent on the west side of the airport and the impacts can be reduced to negligible levels by:

 Controlling speed of vehicles transporting materials to work areas;  Maintaining and regularly checking serviceability of vehicles;  Vehicles and equipment to be switched off (rather than idling) when not in use;  Works undertaken during daylight hours. No noisy activities undertaken at night or on public holidays; and  Vehicles transporting loose materials and stockpiles to be covered with canvas. Work site and vehicles to be watered-down if generating dust.

6. Traffic Impacts

60. The need to transport materials to and from the site can cause traffic congestion if not managed properly. The contractor shall be required to prepare a traffic management plan as part of the EMP to demonstrate how construction traffic can be handled during the works in order to minimize impacts on transportation networks in the vicinity of the sites.

C. OPERATIONAL

61. At the completion of construction work, all materials will be removed or disposed of and the completed works will be in place. The only impact during the operational phase is the noise impacts which will be for the duration of approaching and landing aircrafts.

62. Operation Stage Issues. Aircraft noise emissions, whilst considered only a minor issue at present, can increase with increasing flight frequency in the future operation of the airport, and need to be proactively managed. The problem can mostly be ameliorated by the careful location of ground running, and by the times these activities are undertaken. Occupational and residential exposure to aircraft noise is expected to increase over time; however, the noise impacts will only be for very short duration during aircraft take-off and landing only. It is not a concern for the contractor at this stage.

63. Aircraft ground operating noise will require management negotiated agreements between airlines, NAC and the local communities on times, frequency and locations of operations. Noise from aircraft in flight requires addressing in the context of the EMP such as plants locate plant s away from aircrafts parking/approach area. NAC must prepare, regularly update and promulgate noise exposure forecasts in accordance with the ANZECC 1992 or Australian Noise Exposure Forecast. This shall be NACs operational matter.

64. NAC, airlines and other aviation operators will introduce, under the Civil Aviation Regulations, a formal Safety Management System. For all airports, this will address both temporary safety risks during construction, and ongoing safety risks during normal operations. This system will also address management of environmental impacts of accidents and safety management processes.

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

65. As required by the ADB Safeguard Policy Statement (SPS) 2009, discussions were held with representatives from the New Ireland Provincial Administration since 2009. The latest was in October 2015. In addition, discussions were with the affected landowners to inform them on the proposed developments. A detailed Land Investigation Report was done by the Department of Lands and Physical Planning in February 2012 with valuations completed and all that is pending is for payment to be made and the land compulsory acquired. This is discussed further in the Land Acquisition and Resettlement Plan (LARP).

66. The New Ireland Provincial Administration (NIPA) was aware of the development and was consulted from the initial design and consideration of the project. Hence the discussion again with the representative of NIPA reiterated their support for the project as it would increase economic activity into the province. Among the issues/comments raised relevant to the proposed development are as follows:

(i) The landowners are willing to alienate their land and are only waiting for payment so that they can move to the designated relocation site. (ii) NIPA is fully supportive of the development and wants this to occur soon. They are aware that valuation process has been done and are waiting for payment to be done

while the materials for the construction could be provided by the project. (iii) Provision of employment and livelihood opportunities during the construction and operations phases of the project. NIPA supported this and expressed gratitude for people within the airport and surroundings should be given an opportunity for employment in all phases of the project implementation. Labour for both construction and maintenance/operation stages are available in Kavieng and these needs to be their advertised when the project starts.

67. These concerns and other points of view have formed part of the basis of this IEE, supplemented as necessary by the consultants’ own observations. The participants of the Consultation were unanimous in their support for the proposed development and will not interpose any objections to its implementation. The landowners requested that payment be made available sooner so they can resettle properly.

68. Information Disclosure. In disclosing the environmental documents to the public, (i) NAC through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B- sensitive subprojects, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC-PIU will consult the public, particularly with project affected persons.

69. Disclosure of relevant environment safeguards documents will be in an appropriate form, manner, and language and at an accessible location to be understandable to the affected people and local stakeholders. During Tranche 1 & 2, NAC established arrangements with provinces for coordination with a Project Coordination and Monitoring Committee (PCMC) and/or through the office of the Provincial Administrator (PA). Same procedure will apply for Tranche 3 projects.

70. A PCMC is set up within respective provincial administrations and this committee will oversee all concerns and grievances from the local communities and affected parties. Some Provincial Administration prefers a committee to be established with the Provincial Administration through the Office of the PA. For MP, this is set up through the Provincial Administrator, supported by the Provincial Lands Officer, District and Local Level Government Officer and other resource and service departments such as Agriculture and Livestock and Customs. In the villages, councilors are the linkages between the Local Level Government and their Wards and they deliberate on issues. This forms part of the grievance redress mechanism (GRM) as explained in Section G.

71. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to affected persons and communities regarding the requirements for land acquisition & Resettlement (LAR) and GRM.

VI. GRIEVANCE REDRESS MECHANISM

72. A GRM was established for CADIP during Tranche 1 and Tranche 2. The GRM to be implemented for Tranche 3 will reflect the steps and procedures already established but modify them to account for lessons learned. The GRM is a procedure for addressing environmental and social/land issues and concerns that may arise. During the course of the project it is possible that people may have concerns with the project’s environmental performance or social/land issues including the implementation of the project. Issues may occur during construction and again

during operation. Any grievances dealing with construction and again during operation will need to be addressed quickly and transparently, and without retribution to the affected persons.

73. As noted in the previous section, NAC has an arrangement with provincial administrations through which grievances can be addressed. While NAC may have safety officers and operational managers at the Tranche 3 airport projects, they cannot be given the full responsibility of having to address grievances. They can however, only note and report to Provincial Administrations as partners in the provinces and/or through (i) an airport working committee, or (ii) the Provincial Coordinating & Monitoring Committee (PCMC). The airport working committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant Intra- Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

74. Where there are affected people for any airport development work, a grievance redress mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

75. PNG Land Disputes Settlement Act establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process is established involving airport working committee/PCMC and appropriate community leaders and representatives. The NAC person on site such as a Safety Officer or the Operational Manager will be the first person to be contacted who will then liaise with airport working committee/PCMC to register, clarify and mediate potential issues.

76. The GRM will apply equally to the contractor who will be required to maintain a complaints registry recording complaints or issues raised and how they have been resolved. The registry will be subject to monitoring as part of CEMP compliance checks.

77. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:

78. The mediator must meet with the disputing parties to resolve grievances within 2 – 14 days;

79. In the event of grievances over compensation claims that cannot be resolved through mediation at the local level, the airport working committee/PCMC and Provincial Lands Officer will hold the compensation amounts in trust and

80. Compensation will be paid in full upon final resolution of the case in the courts or other forum such as the Alternate Dispute Resolution process in accordance with the entitlements of the affected person. This must be completed within three months.

VII. ENVIRONMENTAL MANAGEMENT PLAN

condition of the proposed loan will be the adoption and enforcement of a CEMP to mitigate negative impacts associated with airport improvement activities. The EMP matrix developed to cover the expected impacts for the pavement strengthening and associated works at Kavieng Airport is provided in Table 2.

A. Institutional Arrangements

82. The overall MFF program will be oversight by a steering committee. The executing agency of the MFF Program will be the NAC. The PIU will be responsible for daily management and implementation of the projects comprising Tranche 3.

83. The NAC, through the PIU, will be the main agency/entity responsible in coordinating the implementation of the Environmental Assessment and Review Framework (EARF). This will include, but not be limited to;

84. NAC will submit the categorization environmental assessments, and monitoring reports to ADB for review in a timely manner. Table 3 provides the responsibilities and authorities of key organizations involved in the implementation of the EARF. 85. The PIU is staffed with the national Environmental Officer (EO) and be supported by an International Environmental Specialist (IES). The IES will be part of the NAC during the Project with the primary tasks to: (i) strengthen the environmental management of the Project during detailed design, bidding process, contract process, construction, and implementation, (ii) provide induction training to contractors prior to preparation and submission of the CEMP for each subproject. Provide assistance to EO and PIU for review and clearance of the CEMPs; (iii) supervise/monitor compliance with the approved CEMP of each subproject; (iv) undertake the necessary institutional strengthening including on-the-job training for the EO of NAC-PIU by giving major tasks to the EO in all of these activities under IES supervision; (v) prepare reports on environmental safeguards activities as required; and (vi) update the EARF and supervise and guide the environmental assessment process for projects to be implemented in the Tranche 3 as part of the PFR.

B. Task of Implementing Agencies

85. NAC-PIU. Table 3 sets out the Institutions responsible for implementing Safeguards Requirements in CADIP Tranche 3. NAC being the Executing Agency (EA) has the primary role of ensuring the Safeguard Measures and Issues are adequately covered. The Environment Officer (EO) is the focal person in providing feedback to environmental and social issues raised during the construction and operational phase of the project. He will be assisted by the International Environmental Specialist on an intermittent basis. On the ground in Momote, NAC’s Safety Officer will oversee daily operations of activities and can notify the EO of serious environmental noncompliance and the EO will visit to remedy the complaint.

86. ADB. ADB through the Papua New Guinea Resident Mission will provide guidance as to the submission of periodic monitoring reports from NAC that would meet ADB’s standards and guidelines before these are uploaded onto ADB website.

87. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the

monitoring and progress of the project as per loan covenant.

88. Contractor. The Contractor is to submit a CEMP for approval by NAC and ADB on the mitigation measures that it will take in the implantation of the project. This CEMP will be approved and used in the submission of regular reports to NAC who will submit to ADB for perusal and approval.

89. CEPA. CEPA as the overseers of the Environmental Act 2000 will be updated on the submission of this IEE and its coherence with similar categories which is an Environmental Inception Report (EIR). This will be noted and assessed for compliance and under new fee arrangements the NAC may be liable for an assessment fee leading to a permit for the sub project.

Table 1:: Design, Construction and Operational Environmental Management Plan

MITIGATION INSTITUTIONAL MITIGATING MEASURES SIGNIFICANCE OF EFFECTS LOCATION POSSIBLE EFFECTS COSTS RESPONSIBILITY NOT SMALL MED MAJOR A. IMPACTS DUE TO AIRPORT LOCATION 1. Disruption of Surface

Water a. Changes in hydrological Airports and i) Impairment of aquatic ecology i) Dimension of drains X X NIL PIU/EO regimes surrounding areas ii) Drainage disrupted ii) Diversion of stream X NIL PIU/EO iii) Drinking water source iii) Use of grassed areas for runoff NIL PIU/EO b. Pollution as leaking Downstream from i) Impairment of aquatic ecology i) Location of stockpiles on paved areas X X NIL PIU/EO from construction areas ii) Drinking water source ii) Removal of stockpiles after construction NIL PIU stockpiles and spoils iii) Re-vegetation after construction NIL 2. Disruption of groundwater a. Changes in hydrological Airports and i) Impairment of yields X NIL PIU regimes surrounding areas b. Pollution by spoils Downstream from i) Impairment of drinking water X NIL PIU leachate construction areas 3. Changes in nearby land Surrounding areas I) Increase in vicinity of Airport X NAC/PIU values and nearby villages 4. Loss of aesthetics Vicinity of Airports i) Loss of aesthetic value of land i) Landscaping and re-vegetation X USD10,000 Contractor/PIU B. IMPACTS DUE TO DESIGN 1. Slope erosion Airport vicinities I) Installation of silt traps on all drains X Contractor/PIU i) Siltation of rivers affecting hydrology and water quality USD5,000

ii) Contractors to increase awareness of workers

Risks completion of works abandonment plan 6. Cultural Airport site and i) Social disruption i) Contractor to source labourers and workers X NIL Contractors/PIU differences adjacent villages from the nearby villages risk/social conflicts and settlements 7. Escape of Airports vicinities i) Health risks to residents of nearby communities i)Installation of oil and other traps on drains X NIL Contractors/PIU hazardous materials /villages ii) Development of safe storage areas and (cost included

Utilities settlements minimize disruptions 13.Increase in traffic Surrounding areas i) Traffic congestion in major i) Prepare traffic management plans X NIL Contractors/PIU

Table 2: Institutional Responsibilities for Implementing Safeguards

NAC –Project During the implementation of civil works, the NAC will: Implementation Unit (PIU)  Ensure that a contractor’s CEMP including all proposed mitigation Environment Officer (EO) measures and monitoring programs and relevant provisions of the and International environmental assessments is updated as required, and is Environmental Specialist properly implemented by the contractors. (IES)  Monitor the implementation of CEMP and present the quarterly and semiannual monitoring reports to ADB.  In case of unpredicted environmental impacts occur during project implementation, inform ADB, review the CEMP with the contractor, and implement alternative environmental mitigation program.  In case a subproject changes in scope, inform ADB and update the IEE for information disclosure and public consultation;  Submit the requisite reports on progress with social and environmental compliance and implementing the CEMP as required by the CEPA and ADB.  Ensure that ADB be given access to environmental due diligence reports. However, the NAC will have the main responsibility for undertaking environmental due diligence and monitoring of all the subprojects.

ADB During the implementation of Tranche 3, ADB will:  Regular reviews and approval of subproject IEEs.  Provide technical guidance to the NAC as needed.  Reviewing regular monitoring reports and officially disclosing these reports on the ADB website.  Review IEE/EARF monitoring reports as a basis for subproject approvals. Disclose IEE within 120 days via ADB websites (as required) before a PFR is submitted to ADB.  Monitor the EMP implementation, as required, and conduct due diligence as part of MFF reviews.  Provide assistance to NAC, if required, in carrying out its responsibilities and for building capacity for safeguard compliance.  Ensure that the NAC will conduct the required consultations with affected people and other stakeholders who are also affected or impacted by the project. Such information disclosure with affected people will be guided by the Public Communication Policy (2011).

Contractors  Based on site specific conditions, prepare CEMP for each site  Implement and report on CEMP as part of pavement strengthening and rehabilitation activities  Prepare monthly CEMP report as part of progress reports and submit to PIU. The report will also include the Monthly Safety Report and measures undertaken to address any non-compliance issues identified by the PIU. CEPA  Administration and enforcement of the Environment Act 2000 and its regulations as it pertains to the project  Identify whether EPs (with or without conditions) required for any identified site  Review IEE and other documentation as required  Administer Contractor Waste Disposal permit applications and performance

90. The IES will be engaged intermittently for eight person-months during the Tranche 3 also in Tranche 4 period and will be assigned on an intermittent basis to undertake training and capacity building for environmental management in NAC and to guide the EO of PIU in preparing assessments, monitoring and reporting. The IES and EO will jointly be responsible for overall environmental management of Tranche 3.

C. MONITORING AND REPORTING 91. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

92. Monitoring during construction will be the responsibility of the contractor and NAC, carried out by EO within the PIU. Monitoring will relate to compliance with construction contracts (including EMP measures and provisions), the state and health of the nearby environmental resources, and the effectiveness of mitigation measures and complaints. Monthly progress reporting will include a summary of this monitoring submitted to the NAC on a regular basis (at least quarterly) and to ADB semi-annually.

93. The estimated cost for the monitoring plan is $34,000. The costs of the environmental mitigation plan will be part of the construction costs (Annex A).

94. Table 4 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 5 states the roles and responsibilities for environmental monitoring. Table 6 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipments to be procured by the contractor or through specialised firms. Table 7 shows the summary of the environmental management costs including implementation and monitoring costs.

95. The PIU will be responsible for reporting progress of Tranche 3 to NAC and ADB. Monitoring of each contractor will cover monthly progress and CEMP implementation and compliance (including general good practice). A section on safeguards activities and compliance with the CEMP for each subproject will also be included in quarterly progress reports (QPR) prepared for NAC and ADB.

96. The reporting will be as per the following schedule:

97. A report at the end of detailed design incorporating a section prepared by the IES and EO on how detailed design has reflected environmental impact avoidance or mitigation and climate resilience; 98. A monthly report prepared during construction by each contractor reported on progress and CEMP activities, issues and corrective actions, 99. A report prepared every 3 months (the QPR) prepared by the PIU. The QPR will include a section on safeguards activities and CEMP compliance for each subproject and will summarize the monthly reports submitted by the contractors; and 100. A semi-annual safeguards monitoring report (prepared every 6 months) by the IES and EO. 101. The Project completion report will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the EARF and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

Table 3. Environmental Monitoring Plan

PARAQMETRES TO BE PHASE/IMPACT MITIGATING MEASURE MONITORED STANDARDS LOCATIONS1 DURATION FREQUENCY IMPLEMENT SUPERVISE PRE-CONSTRUCTION PHASE 1. Erosion, i) Drainage design Capacity sufficient for 80% of 30 Momote Airport Detailed Once at Design PIU siltation and ii) Use of gently sloping grass i) Drains are of sufficient quantity year maximum Design Detailed Contractor and size to accommodate flooding of surfaces Phase Design Phase waterways iii) Silt traps in all drains additional volume ii) Silt traps are of sufficient quantity and size to protect surrounding areas from siltation CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

1 Specific sampling stations will be defined during the conduct of the baseline survey before commencement of works

Table 4: Roles and Responsibilities for Environmental Monitoring

Implementation Implementation No Environmental Monitoring Tasks Responsibility Schedule 1 Design Phase Disclosure of subprojects to CEPA 1.1 NAC-PIU, EO Prior to construction and monitor permitting. Audit project bidding documents to ensure IEE and EMP included in bids NAC-PIU (by IES 1.2 Prior to issue of bidding documents. and environmental criteria are and EO) included in evaluation. 2 Construction Phase Orientation and briefing of First orientation/briefing 1 month prior to commencement of each contract contractor’s NAC-PIU (by IES 2.1 management, site agents with and refresher orientation/briefing at and EO) regards to all IEE and EMP least yearly during construction requirements. period. Monitor the performance of environmental training by contractor Ongoing, prior to and during and briefings and of the NAC-PIU (by IES 2.2 implementation of works and environmental awareness of and EO) operation. Contractors staff, tool box talks and & refresher courses. Regular (monthly) monitoring and NAC-PIU (by IES Continuous throughout construction 2.3 reporting (quarterly) of contractor’s compliance with statutory and EO) period. environmental requirements Regular (monthly) monitoring and reporting (quarterly) of contractor’s NAC-PIU (by IES Continuous throughout 2.4 compliance with contractual and EO) construction period. environmental mitigation measures including EMP. Regular (monthly) monitoring and reporting (quarterly) of complaints NAC-PIU (by IES Continuous throughout 2.5 and responses or environmental and EO) construction period. mitigation measures Monitor adjustments to the EMP for NAC-PIU (by IES During all phases of the 2.6 unexpected impacts and the thorough and EO) Subprojects implementation of detailed EMP. Commissioning phase monitoring of facilities versus environmental NAC-PIU (by IES 2.7 At commissioning. contractual performance criteria. and EO) Check EMP compliance. 3 Operation and Maintenance Phase Post construction monitoring of Semi-annual up to 3 years after air/noise/water quality at any sites NAC-PIU (by completion of construction or until air, 3.2 where complaints about water quality EO) noise and water quality meets from works were justified in baseline conditions. construction phase.

VIII. CONCLUSION AND RECOMMENDATION 69. The project will cause short-term environmental disturbances associated with construction activity that will be mitigated by operational procedures during construction, within the framework of a contractor’s approved CEMP in line with the EMP stated herein

(Table 4) to be supervised by the PIU.

70. Mitigation measures to prevent or minimize unnecessary impacts are also provided. Potential impacts and risks during construction were also characterized as short term and unnecessary impacts will be minimized through good construction management and housekeeping practices. An EMP containing impact mitigation and monitoring plan to mitigate the potential impacts has been prepared to ensure that the project will be implemented in an environmentally sound and sustainable manner.

71. Positive impacts to the local economy will accrue through new income earning opportunities for locals generated by demand for labour, women participation to semi- skilled during construction; and airport staffing and management arrangements, and through the creation of new non-aeronautical business opportunities in the terminal facilities and surrounding areas.

72. This IEE concludes that in the context of appropriate mitigating strategies described above, and the positive environmental benefits to flow from the Project, environmental impacts can be managed within acceptable levels. There are no significant environmental impacts. All potential and associated impacts can be addressed through implementation of the mitigation measures as proposed in the IEE. Provisions will be made in the Project Budget to cover the environmental mitigation and monitoring costs.

ANNEX A: ENVIRONMENTAL MONITORING PLAN

Table 5: Matrix of EMP for Kavieng Airport

EQUIPMENT COST OF ENVIRONMENTA PLANNED INDICATOR MONITORING REQUIREMENTS MONITORING L AREA OF PARAMETER FREQUENCY AND (MONTHLY PARAMETER MONITORING COST (US$) COST IN US$)

1 unit – Noise Monthly During Metre Construction US$500.00 US$400.00 Noise Period/Semi-Annual ((includes During transportation Operation Period and lab analysis)

Temperature pH Biological Oxygen Demand (BOD) Dissolved Monthly During US600.00 Oxygen (DO) 1 Unit Portable Construction (includes Water Oil and Grease Water Period/Semi-Annual 1 Station transportation Quality Total Coliform Quality Analyzer During and lab Count US$2000.00 Operation Period analysis) Total Suspended Sediments (TSS) Total Dissolved Solids (TDS)

Table 6: Summary of Costs for the Proposed Works

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000

Impacts During Construction 98,000.00 Sub-Total 128,000.00 MONTHLY MONITORING 2 PARAMETER EQUIPMENT (US$) COST (US$) (US$) Air and Noise One set of equipment for EO 900.00 21,200.00

Water Quality One set of equipment for EO 600.00 12,800.00

SUB-TOTAL 1,500.00 34,000.00

GRAND TOTAL 162,000.00

ANNEX B: PHOTOGRAPHS

PHOTO 1: SE END OF RUNWAY TO BE EXTENDED

PHOTO 2: SE END WITH FENCING TO BE REMOVED AND RUNWAY EXTENDED

PHOTO 3: CONSULTATION WITH NIPA

PHOTO 4: CONSULTATION WITH LANDOWNERS AT KAVIENG

4. Madang Airport Initial Environment Examination.

EXECUTIVE SUMMARY

III. An environmental assessment and review framework (EARF) has been prepared to guide environmental safeguards implementation for Tranche 3. In accordance with the EARF this Initial Environmental Examination (IEE) presents the environmental assessment of one of the project under Tranche 3 – Pavement Strengthening and Associated Works at the Madang Airport, Madang Province, PNG. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Safeguard Policy Statement 2009 and the GoPNG Environment Act 2000. The key environmental impacts on the physical, natural and human environments have been assessed.

IV. The main findings of this IEE indicate that the impacts that will arise from Madang Airport Pavement Strengthening & Associated Works will be minimal and generally insignificant as the works only involve rehabilitation and improving the aircraft pavement and associated works within the existing airport boundary for duration of 18 months. The project is classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

V. The potential environmental impacts associated with the project particularly occur during the construction and operation phases which will typically involve:

VIII. The upgrading of the Madang Airport is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the F 100 aircrafts or similar.

I. INTRODUCTION

2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the subprojects under Tranche 3 – Pavement Strengthening and Associated Works at the Madang Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Source book (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment.

3. The main purpose of this IEE is to identify impacts from the pavement strengthening and associated works of the Madang Airport, Madang Province (Figure 1) and mitigations required to address them.

A. Overview

4. The proposed investment program will entail the upgrading and rehabilitation of the following existing airports (Tranche 3): Madang; Mendi; Kavieng; Vanimo, Kerema, Kiunga, Tari, Madang, Buka, Gurney, Wewak and Mt Hagen. The upgrading and improvement of these major domestic airports is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the runway, taxiway and apron capability to accept unrestricted operations by Fokker 100, Dash 8 and QF 400 aircrafts.

B. Environmental Regulatory Compliance

5. The environmental regulations of GoPNG are derived from the Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects that need environmental assessment as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Projects that likely to have significant adverse environmental impact (Level 2 and Level 3) are required to obtain an Environmental Permit (EP) from the Environment and Protection Authority (CEPA) following environmental assessment. The upgrading and rehabilitation of existing airports is not listed as Level 2 and Level 3 of the “Prescribed Activities”. However certain associated project activities commonly associated with upgrading and improvement works such as earthworks, surfacing, discharge of waste water, establishment of borrow pits, sourcing and extraction of aggregate materials from surface water courses are Level 2 activities that may require an EP depending on the duration and scale of those activities. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the subprojects to CEPA so that CEPA can decide whether any specific environmental requirements will be needed for the proposed airport upgrading and rehabilitation. Considering the government environmental requirements and ADB

1 Project 1 rehabilitation work was under the Civil Aviation Authority (CAA) and was the predecessor for NAC. Environmental Safeguard Sourcebook (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

C. Environmental Category of the Subproject

7. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Source Book (2012) Tranche 3 projects are classified as Environmental Category B that requires IEE.

D. Objectives and Scope of IEE

8. The objectives of this IEE were to:

9. This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

II. DESCRIPTION OF THE PROJECT

12. Tranche 3 of development investments under CADIP will be the upgrading and rehabilitation of the existing Kavieng Airport in the New Ireland Province; Mendi Airport in Southern Highlands Province; Madang Airport in Madang Province; Vanimo Airport in West Sepik Province, Mt Hagen in Western Highlands Province, Wewak Airport in East Sepik Province, Tari Airport in Hela Province, Gurney Airport in Milne Bay Province, Kerema Airport in Gulf Province, Kiunga Airport in the Western Province, Buka Airport in the Autonomous Region of Bougainville and Momote Airport in the Manus Province.. Only the scope of works for Madang Airport is in Table 1. TABLE 1: SCOPE OF WORK FOR MADANG AIRPORT Sub Location Proposed Development Works Project Madang Madang A. Aircraft Pavements and Associated Airside Works Airport Province 1. Repairs to existing Runway, Taxiway and Apron pavements; 2. Strengthen existing Runway including turning nodes each end; 3. Strengthen existing 3 Nos.stub Taxiways and parallel Taxiway including fillets; 4. Strengthen existing main Apron; 5. Construct new full strength Shoulders 3.0m wide each side of existing Runway; 6. Construct new full strength Shoulders 5.0m wide each side of existing Taxiways; 7. Construct new full strength Shoulders 5.0m wide to main apron; 8. Supply and apply prime and three coat (10mm/7mm/Sand) bituminous seal surfacing all aircraft pavements including shoulders; 9. Construct new RC Concrete Pads (2Nos. 24m x 12m) on F100 aircraft parking bays; 10. Supply and place 100mm topsoil including grassing of all flank areas of Rwy, Twy and Apron; 11. Supply and apply temporary and permanent aircraft pavement line markings; 12. Apply fuel resistant membrane ('Master Seal II TM') on 2 x Dash 8 aircraft parking bays; 13. Widen Flight Strip to 150m wide; and

Madang Madang B. Landside Works, Airfield Lighting and Electrical Works, and Airport Province Associated Works 14. Upgrade airfield lighting including electrical reticulation, testing and commissioning; 15. Relocate and adjust existing PAPI Lighting system including concrete base footings, trenching, electrical reticulation, inspection pits, flight test and commissioning; 16. Design and construct new ARFF station including access road at northern side of Runway; 17. Supply and deliver to site 160Nos. Cone Markers (80 White, 40 Yellow & 40 Red & White); 18. Supply and deliver to site 4Nos. Unserviceability Crosses painted white; 19. Supply and install 2Nos. Wind Indicators 20. Construct 1No.Signal Circle; 21. Design and construct new terminal Building; 22. Provision of new Devan sewerage system; 23. Supply and installation of new Palisade Security Fencing; 24. Construction of new carpark and access road 25. Construct new Power House including electrical reticulation; 26. Supply and install 2Nos.150kVA Generator set including electrical reticulation; 27. Construct 1 x 3 Bedroom Timber Framed Standard H65 House on high post with storeroom underneath in NAC compound for NAC Safety Officer’s Residence; 28. Supply and deliver to site 1 x M95 Kubota 4WD 80HP Diesel Tractor with Canopy and 1 x Heavy Duty 2.40m dia Superior LX240 Slasher complete with connections to link to Tractor including Trailer and Hay Bailer; and 29. Construct 1 x lockable 4 bay Shed for Tractor, Slasher, Trailer and Hay Bailer; 30. Construct new Airport Terminal and Market with Security Fencing and gates including power supply, water tanks, and public toilet, carpark and security lights. Note: Allowance is made for other miscellaneous works including General and Preliminary items. 13. Madang Airport is situated at situated at 5° 12 30 S, 145° 47 0 E in Madang and is about 5km from Madang Town, Provincial Headquarters of Madang Province where banks, post office, business houses, hotels and guest houses are. Figure 1 shows the map of Papua New Guinea and location of Madang Airport. Figures 2 and 3 shows the general layout plan and the aerial view of the existing Madang Airport.

14. The airport serves the people of Madang and provides for air transport services with its daily flights into the provinces and has been of importance for tourism, the Ramu Nickel Mine, RD Tuna Cannery and Pacific Marine Industrial Zone, amongst other business entities.

15. Madang province receives between 2000 and 4400 mm per annum and it may be greater during the period of December to October. Madang is one of the large province in Papua New Guinea with a land mass of approximately 29,000 km2 and its elevation ranges from sea level to over 4000m and corresponding temperature ranges from 23 – 300 C.

16. The existing bitumen runway is 1,580 metres long with a width of 45 metres and is aligned northeast/southwest along the Biliau Lagoon area. The airport land is at low elevation about 10 m ASL and is 5 metres to the coastline covering a total land area of approximately 11 hectares.

17. The airport land is flat (0 degree) running the length of runway from north east to south west. There are lined drains running parallel of the runway on both sides and these drain water down to the north eastern and south western ends where these reach the Mero River and the Biliau lagoon respectively. Grass is well maintained as with the other major airports in PNG.

18. The facilities in the existing Madang Airport include the terminal building, terminal, hangers and offices operated by Air Niugini, Travel Air, PNG Air and Heli Niugini. The latter has a fleet of helicopters such as Russian built which provides services to the mining, petroleum and other business houses in Madang and the rest of PNG. Madang Airport’s sewerage system is a standalone system (septic tanks) and is not connected to the main sewer line.

19. The proposed changes to the airport include the new terminal, airport market and pavement strengthening. Other instrumentation such as PAPI will be adjusted together with lighting along the runway and cone markers. During World War II, Madang airport was one of the important air and marine bases for the Japanese Army to supply goods to Wewak bases. This was later captured by the Allied Forces who used its strategic location to their advantage in the WWII Pacific Campaign. After WWII, the airport was rebuilt to its current status.

FIGURE 2: AERIAL VIEW OF THE MADANG AIRPORT

20. Salient Features of the Project. The Proposal is to upgrade the Madang Airport to make it safety complaint to cater for the increasing air traffic that could accommodate and be suitable for the operation of F-100 and related aircraft. A number of developments such as the Pacific Marine Industrial Zone (PMIZ) at Vidar together with the Ramu Nickel Mine have increased the capacity of workers and visitors travelling into Madang. A substantial number of tourists also visit the province which was once a peaceful town.

21. All proposed activity such as the new terminal; airport market and strengthening of the pavement and associated works are on the National Airports Corporation land. Activities will include the following;

� Strengthening existing Runway, taxiway and apron; � Widening of the existing flight strip to 150 metres; � Improvement to airside drainage system including construction of subsoil drainage and Open Lined Drains (OLD); � Install a Precision Approach Path Indicator (PAPI) lighting system including concrete base footings, trenching, electrical reticulation, inspection pits, flight testing and commissioning; � Widening runway strip to 150m wide � Construct reinforced concrete pad on 1 X F 100 aircraft parking bay; � Apply pavement markings and fuel resistant membrane on General Aviation Apron; � Construct Power House including electrical reticulation with 2 x 150kVA Generators; � Construct New Airport Terminal and Market; � A full listing of activities has been stated in Table 1.

22. The Madang Airport re-development would involve earthworks as follows:

 Estimated materials and earthworks quantities:  Cut to stockpile 100mm topsoil for future re-use - 152,000m2  Excavation earthworks - 100,000m3  Pavement construction material (crushed base course) - 62,000m3  Topsoil will be used and/or be re-used for topsoil and grassing  Excavated in-situ material will be used in landscaping and or flight strip widening and grading.  All materials will be stockpiled at a designated location on the airside.  Base-course material shall be crushed river gravel – brought in from Gum River.  10m3 trucks shall cart material from source and stockpile on - site.  Contractor’s Site shall be located at the Airside (Area approx. = 100m x 50m).

III. DESCRIPTION OF EXISTING ENVIRONMENT

23. Madang province occupies 28,000 km2 in the central north of the PNG mainland. It has a diverse range of environments from having it border with Mt Wilhelm, the highest peak in PNG, to the coast. Mountain ranges of Adalbert, Finisterre and Bismarck, together with extensive Ramu River floodplains, coastal limestone plains together with volcanic islands offshore make up the landscape.

24. Three of these volcanoes are active and are a serious hazard to the people of Madang. Bismarck Fall, with a vertical drop of 4300m from the summit of Mt Wilhelm to the Ramu valley, over a distance of 45kms. This relief is similar to the Himalayan Mountains.

25. Altitude ranges from the sea level to over 4000m on the slopes of Mt Wilhelm. Annual rainfall varies from 2000mm around Bogia to more than 4000 mm in the Ramu valley and Bismarck Fall. Madang contains both cocoa and coffee with cocoa being the dominant together with copra from coconut. An important Nickel mine is located in Krumbukari in the Usino Bundi District. The five districts in Madang are Bogia, Middle Ramu, Madang, Sumkar, Usino – Bundi and Rai Coast2. .

FIGURE 3. MAP OF MADANG PROVINCE

2 Hanson, L.W., Allen, B.J., Bourke, R.M. and McCarthy, T.J. (2001). Papua New Guinea Rural 12 Development Handbook. The Australian National University, Canberra.

A. Physical Environment

26. Land Resource and Utilization. Madang airport is aligned in a NE, SW direction and is 10 metres off the coastline and is 10 metres ASL. The Airport is 5km out of town and is surrounding by mangrove strand at the southern end separated by a road with residential areas belonging to the Jant Wood Chip Mill, remnant NAC houses and settlers. Along the road to the airport are timber yards, Globe Industrial building and residential houses. Alongside the airport is the Control Tower, NAC offices, terminals and hangers for Air Niugini, Travel Air, PNG Air and Heli Niugini (Annex B).

27. The National Weather Services has an office close to NAC for monitoring weather and meteorology purposes. Besides that, the natural surroundings consist of secondary swamp forest and riparian forest vegetation.

28. All of PNG is tropical experiencing the northwest monsoon from December to March and the southeast monsoon from May to October. Madang is five degrees from the equator and has elevations from sea level up to over 4000 m ASL.

29. Meteorology and Climate. Madang airport temperature ranges from 300C (day) to 23oC (night). Humidity ranges from 60 to 80 % with occasional cloud covering from 20 to 55% of the sky. Wind speed varies from about 20km/h and low about 5km/h. During the current El Niño period, there is minimal precipitation throughout the country and Madang had lows of 125 mm during August to September and a high of 400mm in the first half of the year.

30. In PNG the current El Niño/La Niña weather phenomenon brought about drought, high sea levels, extreme winds and extreme air temperatures which are already affect thousands of people in PNG. After the droughts, extreme rainfall events will bring about flooding and landslides and erosion will follow.

31. Topography, Geology and Soils. The geology and topography of Madang is diverse with coral limestone on the coast up to volcanic and Limestone Mountain ranges that links up to Mt Wilhelm. The volcanic rocks where weathered, gives rise to alluvial gold workings as well as nickel minerals in iron red soils.

32. Topographic features are flood plains in the valleys, seasonal hills, limestone plains and volcanic islands. Most of the airport area is underlined by limey and silty soils consisting of entisols and inceptisols3 which are very young soils with little or no profile and moderately weathered soils. Grassland stretches right round the perimeter of the airport.

3 Bourke, R.M. and Harwood, T. (eds) (2009). Food and Agriculture in Papua New Guinea. ANU E Press, The Australian National University, Canberra.

33. Mineral Resources. In Madang, nickel, gold and copper mineralization is known and exploration began in the 1980s and continues. The Ramu Nickel mine at Krumbukari is the first for PNG and began exporting in 2013. Exploration for both minerals and petroleum are current in Madang. The mine is 100 km to the south west of Madang airport.

34. Surface and Ground Water Resources. Madang airport is bound by the Mero River on the north western side where there is a perimeter fence at that end. At the Biliau lagoon end, no perimeter fence occurs. Storm water runoff to both the northwest and south east ends respectively through lined and unlined drains which run parallel to the airport runway.

35. There is no noticeable erosion area and most of the rain water percolates through the limestone substrate and into underground water aquifer. No sampling of water quality was taken during the IEE investigation and surrounding areas are well drained.

B. Biological Environment

36. Forest Resources. Madang contains a large area of forest types ranging from beach mangrove and swamp forests up to the lowland then up to the humid rainforests. All these provide direct benefits from utilization of the ecosystems (for example fishing and wood cutting); indirect benefits including coastal protection and the prevention of seawater infiltration; and biodiversity benefits such as fish breeding grounds and the provision of vital habitat. This is important around the Biliau lagoon especially for the settlers who setup small nets to catch these small fish.

37. Around the airport only the beach mangrove occurs at the shore front of the runway however none are in the vicinity of the proposed airport works.

C. Social-Cultural Environment

38. Population and Demography. PNG is the largest Pacific island country in total land area (some 460,000 square kilometers) and second in respect to ocean area (some 3 million sq. km within its Exclusive Economic Zone [EEZ]). The average population density is about 12 people per sq. km, making PNG the country with the lowest density in the Pacific region. Average density in this case is very misleading as there are great differences between provinces. Life expectancy in PNG is 62 years4 in 2013 and the literacy rate is approximately 58 % and for Madang province the rate is lower at 55.2%5.

39. Madang, the Provincial Capital, had a population of 29,339 people (estimated in 2013) and is increasing brought about from immigration in from Morobe and Highland provinces. These bring about squatter and social problem. Business houses in Madang consist of Best Buy Supermarkets among a number of Chinese Retailing and Hardware Businesses. Besides these are the Brian Bell, Farm Set and Ela and Boroko Motors franchise and PNG Power Station and warehouse. Public Motor Vehicles (PMV) bring in passengers from the six districts into Madang on a daily basis for markets and purchase of goods for rural trades stores and school. In the past, Madang was well known for being a peaceful town but the influx of people has made it now as easy to walk around at night in town. It is still a popular tourist destination for diving and snorkeling.

40. The airport is surrounded by hamlets of Biliau village on the north western fence boundary while there is the Biliau settlement about 100 metres on the south eastern side of the airport and there is the James Barnes factory about 200 metres along the main road leading from the airport into town.

4 http://countryeconomy.com/countries/papua-new-guinea Accessed 19 10 15. 5 NRI 2010, NRI District and Provincial Profile, Port Moresby.

41. Cultural and Historical Sites, Schools and Housing. There were no sites of cultural significance found near the area of the proposed development (Madang Airport). The development is within the existing area already cleared and excavated and chances of finding any cultural objects are minimal.

42. Health and Sanitation. The greatest health concern in PNG is Malaria occurring a quarter of Disability Adjusted Life Year (DALY) (NDOH6 2010). This is followed by pneumonia, accidents and injury, chronic respiratory disease and maternal death. AIDS/HIV has been a disease of possible epidemic proportions although the inaccurate data do not provide a total prevalent figure between the target age group of 25 -34 in males and 20 – 34 in females. Most of these high occurrences are on the mainland provinces of Papua New Guinea and Madang recorded 2% (~ 274) in 20087.

IV. SCREENING ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

43. This section provides an assessment of the likely impacts associated with the pavement strengthening and associated works and ways to mitigate and/or manage them. The works will not result in any significant changes in environment beyond the existing airport boundaries. The assessment focuses on pre-construction, construction and operational stage impacts.

A. PRECONSTRUCTION

44. A number of activities will occur during the preconstruction phase where there is (i) the Establishment of Contractors Site and Facilities, (ii) Constructions Workers Accommodation and (iii) Stockpiling of Construction Material.

45. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities.

46. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public Relations Officer is tasked to ensure that these do not occur.

1. Establishment of Contractors Site and Facilities

47. The contractor’s work site establishment (inclusive of stockpiling) will be located outside of the airside and require an area of approximately 100 m x 50 m. Inappropriate disposal of wastewater and effluent from rest room and solid waste can cause pollution. Pollution anticipated to be generated during construction is expected to include day-to-day production of solid waste, domestic sewage, and oil and chemical wastes. The storage and handling of petro-chemicals will require careful management; an important part of the environmental management plan (EMP) will be requirement for an emergency response plan for spills and accidents.

48. The contractor’s depot area and yard/offices will be provided with sanitary disposal facilities that will address the generation of domestic wastewater and proper solid waste management. Silt traps shall be established around areas identified for clearing and drainage

6 NDOH – National Department of Health. 7 www.nac.org.pg 2007 Annual Report.

works to prevent siltation of any surrounding waters. During the pre-construction and construction period an adequate supply of an appropriate quality of water will be provided for both domestic (for the contractor’s depot area) and other purposes (construction activities i.e. concrete mixing, cleanup of machineries and washing of trucks).

 Mitigation measures include:  Restricting the contractor to a single, pre-planned construction site;  Requiring the contractor to install a septic tank or mobile toilets (if not connected to the main sewerage system) of adequate capacity;  Establishing mechanisms for grey water to be managed according to site conditions;  Requiring that all lubricants be collected, stored correctly and recycled;  Ensuring that the contractor has a spill contingency plan including drainage/settling pond control, bunds-drainage around fuel and storage areas;  Provision of receptacles for rubbish and rubbish to be disposed of at approved site; and  Banning of burning of rubbish or waste permitted at yard or work site.  Provision of complete and proper PPEs to workers

2. Construction Workers Accommodation

49. Establishment of contractors’ camp site will also comply with mitigation measures of waste management. Otherwise, contractor will rent a small compound for the skilled staff (10-15 persons) recruited for the construction works such as the Pavements Supervisor and Foreman, Mechanical Supervisor and Plant Operations Supervisor, etc. All other skilled and unskilled personnel which are estimated at 30- 40 persons shall be sourced locally and would not require housing in campsite.

3. Stockpiling of Construction Material

50. The development works (i.e. pavement strengthening, flight strip widening, construction of shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and laying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the contractor’s environmental management plan (CEMP) with cleanup initiatives undertaken as required. Mitigation measures include:

 Transportation of materials to be limited to short periods to minimize traffic disturbance;  Transportation to be only during the dry days when unsealed roads are strong and also to lessen impacts on nearby residences, run-off and soil loss;  Water trucks to be on standby to water-down dust generated from unsealed roads during transportation of materials.  All stockpiled materials to be adequately contained in a bund type of structure to minimize run-off and covered to minimize dust; and  Locate all stockpiled in controlled areas away from water bodies including nearby residential areas.

B. CONSTRUCTION

51. The Constructions phase has a number of activities or induced activities such as (i) Clearing and Grubbing, (ii) Pavement Construction, (iii) Building Construction, (IV) Storage and Handling of Fuel, Oil and Other Chemicals, (V) Health and Safety, (VI) Social Impacts, (Vii) Noise impacts and Air

Quality and (VIII) Traffic Impacts.

52. All these activities will be confined to the construction area and physical and biological impacts will occur within the shrubs and trees that will be cleared for the new terminal and market buildings. There is the possibility of fuel, oil and other chemicals that will into the water ways although there is no noticeable water way in the vicinity of the construction area. The limestone substrate allows for runoff to permeate through.

53. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the Environmental Management Plan.

1. Construction Activity

54. Clearing and Grubbing. All grubbing of topsoil, clearing of grass areas and trees/shrubs, old fences and culvert materials clearance will require stockpiling in controlled areas during construction. All topsoil, grass and culvert clearance will be cleared and stacked to edges of the fenced area to allow for re-vegetation or taken to designated sites for reuse. Exposure of soil can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation and management measures include:

55. Pavement Construction. Excavation and disposal of the existing pavement can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. All construction spoils including solid and coal tar wastes and empty containers from the work areas should be removed from site and transported to the public waste disposal area. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation measures include:

56. Building Construction. Building construction such as airport terminal and NAC staff house will commence upon completion of the sub-ground service activities. Building construction shall occur in concurrence with runway pavement upgrading. Mitigation measures include:

2. Storage and Handling of Fuel, Oil and other Chemicals

57. The use of equipment and plant during the works will require usage, storage and handling of fuel, oil and other materials. Subsurface water resources near the selected subproject road sections could be anticipated to be contaminated by fuel and chemical spills. The following mitigation measures are included in the EMP to reduce the levels of impact associated with such effects:

3. Health and Safety

58. During construction activities, work sites, traffic, and operation of equipment, plants and vehicles can pose health and safety risks for workers and the community. Health and safety codes of PNG and World Bank Group’s Environment, Health and Safety Guidelines (as per the SPS) will apply at all sub-project sites. Measures to mitigate risks include:

4. Social Impacts During Construction

59. The presence of a construction workforce can create social impacts such as risk of spread of communicable diseases (such as STIs and HIV) and create social disruption as a result of conflicts between workers from outside and local people. The workforce required for the pavement construction and associated works will be relatively small but wherever possible local people 8 should be employed.

60. The contractor for Madang airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Madang return to their original place of residence to avoid impacts from informal migration.

5. Noise Impacts and Air Quality

61. Air and noise pollution may be created by earthmoving, operation of heavy equipment and plant, transportation of materials to and from the site, and general works in the dry season generating dust and exhaust fumes such as Carbon Monoxide.

62. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Madang airport is located in a busy area with noise coming from all moving vehicles along the airport road to the JANT timber mill factory but away from sensitive receivers (schools and hospitals), although there is some residential areas adjacent on the eastside of the airport and the impacts can be reduced to negligible levels by:

6. Traffic Impacts

63. The need to transport materials to and from the site can cause traffic congestion if not managed properly. The contractor shall be required to prepare a traffic management plan as part of the EMP to demonstrate how construction traffic can be handled during the works in order to minimize impacts on transportation networks in the vicinity of the sites.

C. OPERATIONAL

64. At the completion of construction work, all materials will be removed or disposed of and the completed works will be in place. The only impact during the operational phase is the noise impacts which will be for the duration of approaching and landing aircrafts.

65. Operation Stage Issues. Aircraft noise emissions, whilst considered only a minor issue at present, can increase with increasing flight frequency in the future operation of the airport, and need to be proactively managed. The problem can mostly be ameliorated by the careful location of ground running, and by the times these activities are undertaken. Occupational and residential exposure to

8 Local People – are mostly inhabitants who are living near the project site or within the main town center where the project is located.

aircraft noise is expected to increase over time; however, the noise impacts will only be for very short duration during aircraft take-off and landing only. It is not a concern for the contractor at this stage.

66. Aircraft ground operating noise will require management negotiated agreements between airlines, NAC and the local communities on times, frequency and locations of operations. Noise from aircraft in flight requires addressing in the context of the EMP such as plants locate plant s away from aircrafts parking/approach area. NAC must prepare, regularly update and promulgate noise exposure forecasts in accordance with the ANZECC 1992 or Australian Noise Exposure Forecast. This shall be NACs operational matter.

67. NAC, airlines and other aviation operators will introduce, under the Civil Aviation Regulations, a formal Safety Management System. For all airports, this will address both temporary safety risks during construction, and ongoing safety risks during normal operations. This system will also address management of environmental impacts of accidents and safety management processes.

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

67. As required by the ADB Safeguard Policy Statement (SPS) 2009, discussions were held with representatives from the Madang Provincial Administration on 9/11/2015. In addition, discussions were with the neighboring Landowner Association to inform them on the proposed developments (Annex B).

68. The Madang Provincial Administration (MPA) was aware of the development and was consulted from the initial design and consideration of the project. Hence the discussion again with the representative of MPA reiterated their support for the project as it would increase economic activity into the province.

69. The MPA is an active partner in the Government of Papua New Guinea Pacific Marine Industrial Zone (PMIZ) project at Vidar and would like to see improvements and upgrading of the Madang airport so that larger planes can fly in to bring in goods and services. The MPA is also involved in the 2018 Asia Pacific Economic Cooperation (APEC) Meetings and Madang has been selected as a venue and hence they are interested to see how the scope of work for the Airport would assist in their plans. Among the comments mentioned for the proposed development are as follows:

 MPA welcomes the building of a new terminal as this will increase the outlook for the province and be in line with the 2018 APEC Meetings.  Landowners have expressed the need for participation in the airport terminal and asked if opportunities can be made available for their participation.  The new market will offer opportunities for landowners as well as the settlers to equally participate in selling their activities and will be able to receive income from these.  Provision of employment and livelihood opportunities during the construction and operations phases of the project. The residents of the village reiterated that they should be given priority in employment in all phases of the project implementation. They also informed the team that labor for both construction and maintenance/operation stages are available in their community.

70. These concerns and other points of view have formed part of the basis of this IEE, supplemented as necessary by the consultants’ own observations. The participants of the Public Consultation were unanimous in their support for the proposed development and will not interpose any objections to its implementation

71. Information Disclosure. In disclosing the environmental documents to the public, (i) NAC

through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B- sensitive subprojects, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC-PIU will consult the public, particularly with project affected persons.

72. Disclosure of relevant environment safeguards documents will be in an appropriate form, manner, and language and at an accessible location to be understandable to the affected people and local stakeholders. During Tranche 1 & 2, NAC established arrangements with provinces for coordination with a Project Coordination and Monitoring Committee (PCMC) and/or through the office of the Provincial Administrator (PA). Same procedure will apply for Tranche 3 projects.

73. A PCMC is set up within respective provincial administrations and this committee will oversee all concerns and grievances from the local communities and affected parties. Some Provincial Administration prefers a committee to be established with the Provincial Administration through the Office of the PA. For MP, this is set up through the Provincial Administrator, supported by the Provincial Lands Officer, District and Local Level Government Officer and other resource and service departments such as Agriculture and Livestock and Customs. In the villages, councilors are the linkages between the Local Level Government and their Wards and they deliberate on issues. This forms part of the grievance redress mechanism (GRM) as explained in Section G.

74. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to affected persons and communities regarding the requirements for land acquisition & Resettlement (LAR) and GRM.

VI. GRIEVANCE REDRESS MECHANISM

75. A GRM was established for CADIP during Tranche 1 and Tranche 2. The GRM to be implemented for Tranche 3 will reflect the steps and procedures already established but modify them to account for lessons learned. The GRM is a procedure for addressing environmental and social/land issues and concerns that may arise. During the course of the project it is possible that people may have concerns with the project’s environmental performance or social/land issues including the implementation of the project. Issues may occur during construction and again during operation. Any grievances dealing with construction and again during operation will need to be addressed quickly and transparently, and without retribution to the affected persons.

76. As noted in the previous section, NAC has an arrangement with provincial administrations through which grievances can be addressed. While NAC may have safety officers and operational managers at the Tranche 3 airport projects, they cannot be given the full responsibility of having to address grievances. They can however, only note and report to Provincial Administrations as partners in the provinces and/or through (i) an airport working committee, or (ii) the Provincial Coordinating & Monitoring Committee (PCMC). The airport working committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant Intra- Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

77. Where there are affected people for any airport development work, a grievance redress

mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

78. Papua New Guinea Land Disputes Settlement Act establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process is established involving airport working committee/PCMC and appropriate community leaders and representatives. The NAC person on site such as a Safety Officer or the Operational Manager will be the first person to be contacted who will then liaise with airport working committee/PCMC to register, clarify and mediate potential issues.

79. The GRM will apply equally to the contractor who will be required to maintain a complaints registry recording complaints or issues raised and how they have been resolved. The registry will be subject to monitoring as part of Contractors’ Environmental Management Plan (CEMP) compliance checks.

80. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:

 The mediator must meet with the disputing parties to resolve grievances within 2 – 14 days;  In the event of grievances over compensation claims that cannot be resolved through mediation at the local level, the airport working committee/PCMC and Provincial Lands Officer will hold the compensation amounts in trust and  Compensation will be paid in full upon final resolution of the case in the courts or other forum such as the Alternate Dispute Resolution process in accordance with the entitlements of the affected person. This must be completed within three months.

VII. ENVIRONMENTAL MANAGEMENT PLAN

81. Mitigation measures, environmental monitoring, and capacity development are required to minimize the environmental impacts in the design, construction and operational phases. The EMP provides the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate with the project’s impacts and risks). It will be necessary to update the EMP during the detailed engineering design phase. A condition of the proposed loan will be the adoption and enforcement of a CEMP to mitigate negative impacts associated with airport improvement activities. The EMP matrix developed to cover the expected impacts for the pavement strengthening and associated works at Madang Airport is provided in Table 2. A. Institutional Arrangements

 ensuring that the EARF procedures are strictly adhered to

 preparation of environmental assessments will be carried out in a timely and adequate manner  environmental monitoring and institutional requirements will be fully met, while  meaningful public consultations are carried out satisfactorily.

85. The PIU is staffed with the national Environmental Officer (EO) and be supported by an International Environmental Specialist (IES). The IES will be part of the NAC during the Project with the primary tasks to: (i) strengthen the environmental management of the Project during detailed design, bidding process, contract process, construction, and implementation, (ii) provide induction training to contractors prior to preparation and submission of the CEMP for each subproject. Provide assistance to EO and PIU for review and clearance of the CEMPs; (iii) supervise/monitor compliance with the approved CEMP of each subproject; (iv) undertake the necessary institutional strengthening including on-the-job training for the EO of NAC-PIU by giving major tasks to the EO in all of these activities under IES supervision; (v) prepare reports on environmental safeguards activities as required; and (vi) update the EARF and supervise and guide the environmental assessment process for projects to be implemented in the Tranche 3 as part of the PFR.

B. Task of Implementing Agencies

86. NAC-PIU. Table 3 sets out the Institutions responsible for implementing Safeguards Requirements in CADIP Tranche 3. NAC being the Executing Agency (EA) has the primary role of ensuring the Safeguard Measures and Issues are adequately covered. The Environment Officer (EO) is the focal person in providing feedback to environmental and social issues raised during the construction and operational phase of the project. He will be assisted by the International Environmental Specialist on an intermittent basis. On the ground in Momote, NAC’s Safety Officer will oversee daily operations of activities and can notify the EO of serious environmental noncompliance and the EO will visit to remedy the complaint.

87. ADB. ADB through the Papua New Guinea Resident Mission will provide guidance as to the submission of periodic monitoring reports from NAC that would meet ADB’s standards and guidelines before these are uploaded onto ADB website.

88. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the monitoring and progress of the project as per loan covenant.

89. Contractor. The Contractor is to submit a Contractors Environmental Management Plan (CEMP) for approval by NAC and ADB on the mitigation measures that it will take in the implantation of the project. This CEMP will be approved and used in the submission of regular reports to NAC who will submit to ADB for perusal and approval.

90. CEPA. CEPA as the overseers of the Environmental Act 2000 will be updated on the submission of this IEE and its coherence with similar categories which is an Environmental Inception Report. This will be noted and assessed for compliance and under new fee arrangements the NAC may be liable for an assessment fee leading to a permit for the sub project.

TABLE 2: CONSTRUCTIONAL AND OPERATIONAL ENVIRONMENTAL MANAGEMENT PLAN

MITIGATION INSTITUTIONAL MITIGATING MEASURES SIGNIFICANCE OF EFFECTS POTENTIAL IMPACTS LOCATION POSSIBLE EFFECTS COSTS RESPONSIBILITY

NOT SMALL MED MAJOR A. IMPACTS DUE TO AIRPORT LOCATION 1. Disruption of Surface

Water a. Changes in hydrological Airports and i) Impairment of aquatic ecology i) Dimension of drains X X NIL PIU/EO regimes surrounding areas ii) Drainage disrupted ii) Diversion of stream X NIL PIU/EO iii) Drinking water source iii) Use of grassed areas for runoff NIL PIU/EO b. Pollution as leaking Downstream from i) Impairment of aquatic ecology i) Location of stockpiles on paved areas X X NIL PIU/EO from construction areas ii) Drinking water source ii) Removal of stockpiles after construction NIL PIU stockpiles and spoils iii) Re-vegetation after construction NIL 2. Disruption of groundwater a. Changes in hydrological Airports and i) Impairment of yields X NIL PIU regimes surrounding areas b. Pollution by spoils Downstream from i) Impairment of drinking water X NIL PIU leachate construction areas 3. Changes in nearby land Surrounding areas I) Increase in vicinity of Airport X NAC/PIU values and nearby villages 4. Loss of aesthetics Vicinity of Airports i) Loss of aesthetic value of land i) Landscaping and re-vegetation X USD10,000 Contractor/PIU B. IMPACTS DUE TO DESIGN 1. Slope erosion Airport vicinities I) Installation of silt traps on all drains X Contractor/PIU i) Siltation of rivers affecting hydrology and water quality USD5,000

ii) Contractors to increase awareness of workers

Utilities settlements minimize disruptions 13.Increase in traffic Surrounding areas i) Traffic congestion in major i) Prepare traffic management plans X NIL Contractors/PIU

PIU – Project Implementation Unit; DC –Design Consultants; CEPA –Department of Environment and Conservation USD000,000 – Cost quoted are estimates and will be finalized upon completion of Detailed Design (to be included in Bill of Quantities-BOQ)

TABLE 3: INSTITUTIONAL RESPONSIBILITIES FOR IMPLEMENTING SAFEGUARDS

NAC –Project During the implementation of civil works, the NAC will: Implementation Unit (PIU)  Ensure that a contractor’s environmental management plan Environment Officer (EO) (CEMP) including all proposed mitigation measures and and International monitoring programs and relevant provisions of the environmental Environmental Specialist assessments is updated as required, and is properly implemented (IES) by the contractors.  Monitor the implementation of CEMP and present the monitoring reports to ADB.  In case unpredicted environmental impacts occur during project implementation, inform ADB, review the CEMP with the contractor, and implement alternative environmental mitigation program.  In case a subproject changes in scope, inform ADB and reconfirm the environmental classification, determine whether a supplementary IEE or EIA study is required, and carry out the study including the requirement for information disclosure and public consultation;  Submit the requisite reports on progress with social and environmental compliance and implementing the CEMP as required by the CEPA and ADB.  Ensure that ADB be given access to undertake environmental due diligence for all subprojects. However, the NAC will have the main responsibility for undertaking environmental due diligence and monitoring of all the subprojects. The due diligence report as well as monitoring reports on CEMP implementation, as required, will be systematically prepared and be made available to the public, if requested ADB During the implementation of Tranche 3, ADB will:  Regular reviews and approval of subproject IEEs and EIAs.  Provide technical guidance to the NAC as needed.  Reviewing regular monitoring reports and officially disclosing the summary environmental assessments for selected subprojects (Category A and B sensitive) on the ADB website.  Review environmental assessment reports as a basis for subproject approvals. Disclose assessments of category A subprojects, and category “B sensitive” subprojects for 120 days via ADB websites (as required) before a PFR is submitted to ADB.  Monitor the EMP implementation, as required, and conduct due diligence as part of MFF reviews.  Provide assistance to NAC, if required, in carrying out its responsibilities and for building capacity for safeguard compliance.  Ensure that the NAC will conduct the required consultations with project affected groups and local NGOs in PNG, and that the NAC as project sponsor disclose relevant environment information on the project’s environmental issues in an appropriate form, manner, and language(s) accessible to those being consulted. Such information disclosure with affected people will be guided by the Public Communication Policy (2011). Contractors  Based on site specific conditions, prepare Contractor’s Environmental Management Plan (CEMP) for each site  Implement and report on CEMP as part of pavement strengthening and rehabilitation activities  Prepare monthly CEMP report as part of progress reports and submit to PIU. The report will also include the Monthly Accident Report and measures undertaken to address any non-compliance issues identified by the PIU (or CEPA). CEPA  Administration and enforcement of the Environment Act 2000 and its regulations as it pertains to the project

 Identify whether EPs (with or without conditions) required for any identified site  Review IEE and other documentation required  Administer Contractor Waste Disposal permit applications and performance

91. The IES will be engaged intermittently for eight person-months during the Tranche 3 also in Tranche 4 period and will be assigned on an intermittent basis to undertake training and capacity building for environmental management in NAC and to guide the EO of PIU in preparing assessments, monitoring and reporting. The IES and EO will jointly be responsible for overall environmental management of Tranche 3.

C. Monitoring and Reporting 92. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

93. Monitoring during construction will be the responsibility of the contractor and NAC (carried out by EO) and IES within the PIU. Monitoring will relate to compliance with construction contracts (including EMP measures and provisions), the state and health of the nearby environmental resources, and the effectiveness of mitigation measures and complaints. Monthly progress reporting will include a summary of this monitoring submitted to the NAC on a regular basis (at least quarterly) and to ADB semi-annually.

94. The estimated cost for the monitoring plan is $34,000. The costs of the environmental mitigation plan will be part of the construction costs (Annex A).

95. Table 4 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 5 states the roles and responsibilities for environmental monitoring. Table 6 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipment to be procured by the contractor or through specialised firms. Table 7 shows the summary of the environmental management costs including implementation and monitoring costs.

96. The PIU will be responsible for reporting progress of Tranche 3 to NAC and ADB. Monitoring of each contractor will cover monthly progress and CEMP implementation and compliance (including general good practice). A section on safeguards activities and compliance with the CEMP for each subproject will also be included in quarterly progress reports (QPR) prepared for NAC and ADB.

97. The reporting will be as per the following schedule:

98. The Project completion report will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the EARF and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

TABLE 4. ENVIRONMENTAL MONITORING PLAN

PARAQMETRES TO BE PHASE/IMPACT MITIGATING MEASURE MONITORED STANDARDS LOCATIONS1 DURATION FREQUENCY IMPLEMENT SUPERVISE PRE-CONSTRUCTION PHASE 1. Erosion, i) Drainage design Capacity sufficient for 80% of 30 Momote Airport Detailed Once at Design PIU i) Drains are of sufficient quantity siltation and ii) Use of gently sloping grass year maximum Design Detailed Contractor flooding of surfaces and size to accommodate Phase Design Phase additional volume waterways iii) Silt traps in all drains ii) Silt traps are of sufficient quantity and size to protect surrounding areas from siltation CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

OPERATION AND MAINTENANCE PHASE 1. Noise i) Ambient Noise i) ANZECC 1992 or Australian Momote Airport Operations Semi-Annual PIU/NAC CEPA i) Establishment of buffers Disturbance Noise Exposure Forecast (ANEF) between airports and nearby settlements ii) Preparation of operational procedures by Airport Operator 2. Water pollution i) Inspection of operations and site i-ii) Water Quality Standards of Momote Airport Operations Semi-Annual PIU/NAC CEPA i) Proper sanitation and sewerage ii) Storage for hazardous and toxic PNG-CEPA systems (construction of septic materials tanks or connection to main sewer line) installed ii) Spill contingency plan 3. Air pollution i) Proper maintenance of vehicles i) Total suspended particulates i) CEPA Air Quality standards Momote Airport Operations Semi-Annual PIU/NAC CEPA ii) Re-vegetation of exposed areas

TABLE 5: ROLES AND RESPONSIBILITIES FOR ENVIRONMENTAL MONITORING

Implementation Implementation No Environmental Monitoring Tasks Responsibility Schedule 1 Design Phase Disclosure of subprojects to CEPA 1.1 NAC-PIU, EO Prior to construction and monitor permitting. Audit project bidding documents to ensure IEE and EMP included in bids NAC-PIU (by IES 1.2 Prior to issue of bidding documents. and environmental criteria are and EO) included in evaluation. 2 Construction Phase Orientation and briefing of First orientation/briefing 1 month prior to commencement of each contract contractor’s NAC-PIU (by IES 2.1 management, site agents with and refresher orientation/briefing at and EO) regards to all IEE and EMP least yearly during construction requirements. period. Monitor the performance of environmental training by contractor Ongoing, prior to and during and briefings and of the NAC-PIU (by IES 2.2 implementation of works and environmental awareness of and EO) operation. Contractors staff, tool box talks and & refresher courses. Regular (monthly) monitoring and NAC-PIU (by IES Continuous throughout construction 2.3 reporting (quarterly) of contractor’s compliance with statutory and EO) period. environmental requirements Regular (monthly) monitoring and reporting (quarterly) o f contractor’s NAC-PIU (by IES Continuous throughout 2.4 compliance with contractual and EO) construction period. environmental mitigation measures including EMP. Regular (monthly) monitoring and reporting (quarterly) of complaints NAC-PIU (by IES Continuous throughout 2.5 and responses or environmental and EO) construction period. mitigation measures Monitor adjustments to the EMP for NAC-PIU (by IES During all phases of the 2.6 unexpected impacts and the thorough and EO) Subprojects implementation of detailed EMP. Commissioning phase monitoring of facilities versus environmental NAC-PIU (by IES 2.7 At commissioning. contractual performance criteria. and EO) Check EMP compliance. 3 Operation and Maintenance Phase Post construction monitoring of Semi-annual up to 3 years after air/noise/water quality at any sites NAC-PIU (by completion of construction or until air, 3.2 where complaints about water quality EO) noise and water quality meets from works were justified in baseline conditions. construction phase.

VIII. CONCLUSION AND RECOMMENDATION

99. The project will cause short-term environmental disturbances associated with construction activity that will be mitigated by operational procedures during construction, within the framework of a contractor’s approved EMP in line with the EMP stated herein (Table 4) to be supervised by the PIU.

100. Mitigation measures to prevent or minimize unnecessary impacts are also provided. Potential impacts and risks during construction were also characterized as short term and unnecessary impacts will be minimized through good construction management and housekeeping practices. An EMP containing impact mitigation and monitoring plan to mitigate the potential impacts has been prepared to ensure that the project will be implemented in an environmentally sound and sustainable manner.

101. Positive impacts to the local economy will accrue through new income earning opportunities for locals generated by demand for labour, women participation to semi- skilled during construction; and airport staffing and management arrangements, and through the creation of new non-aeronautical business opportunities in the terminal facilities and surrounding areas.

102. This IEE concludes that in the context of appropriate mitigating strategies described above, and the positive environmental benefits to flow from the Project, environmental impacts can be managed within acceptable levels. There are no significant environmental impacts needing further detailed study or EIA. All potential and associated impacts can be addressed through implementation of the mitigation measures as proposed in the IEE. Provisions will be made in the Project Budget to cover the environmental mitigation and monitoring costs.

ANNEX A: ENVIRONMENTAL MONITORING PLAN

TABLE 6: MATRIX OF EMP FOR MADANG AIRPORT

TABLE 7: SUMMARY OF COSTS FOR THE PROPOSED WORKS

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000

Impacts During Construction 98,000.00 Sub-Total 128,000.00 MONTHLY MONITORING 2 PARAMETER EQUIPMENT (US$) COST (US$) (US$) Air and Noise One set of equipment for EO 900.00 21,200.00

Water Quality One set of equipment for EO 600.00 12,800.00

SUB-TOTAL 1,500.00 34,000.00

GRAND TOTAL 162,000.00

ANNEX B: PHOTOGRAPHS

PHOTO 1: TARMAC AREA WITH HELI NIUGINI HANGER AND HELICOPTERS –VIEW NE

PHOTO 2: TARMAC AREA WITH TERMINAL AND TRAVEL AIR HANGER – VIEW SW

PHOTO 3: CONSULTATION WITH BILIAU LANDOWNERS AT ULAFUN VILLAGE

PHOTO 4: CONSULTATION WITH THE BILIAU LANDOWNERS AT ULAFUN VILLAGE

5. Mendi Airport Initial Environment Examination.

EXECUTIVE SUMMARY

III. An environmental assessment and review framework (EARF) has been prepared to guide environmental safeguards implementation for Tranche 3. In accordance with the EARF this Initial Environmental Examination (IEE) presents the environmental assessment of one of the project under Tranche 3 – Pavement Strengthening & Associated Works at the Mendi Airport, Southern Highlands Province, PNG. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Safeguard Policy Statement2009 and the GoPNG Environment Act 2000. The key environmental impacts on the physical, natural and human environments have been assessed.

IV. The main findings of this IEE indicate that the impacts that will arise from Mendi Airport Pavement Strengthening & Associated Works will be minimal and generally insignificant as the works only involve rehabilitation and improving the aircraft pavement and associated works within the existing airport boundary for duration of 12 months. The project can be classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

(ii) Pollution. Problems of pollution related to the disposal of sewage, waste fuel& petrochemical products, salvage materials, oils spillage and leakage, solid wastes generated during construction (from worker camps) and operations could occur. Temporary site contamination, dust& noise generation associated with construction, and pollution associated with firefighting drills may cause environmental impacts.

VII. A Grievance Redress Mechanism set up in Tranche 1 and 2 will be used in Tranche 3 and the Provincial Administration is fully aware of its role. Public support during consultation for the project was unanimous and the Provincial Administration is supportive of the project as this will create possible job opportunities with contractors. The new terminal will boost air travel and the pavement works will enhance this further for the travelling public.

VIII. The upgrading of the Mendi Airport is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the Dash 8 series aircraft or similar.

I. INTRODUCTION

2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the subprojects under Tranche 3 – Pavement Strengthening and Associated Works at the Mendi Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Sourcebook (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment.

3. The main purpose of this IEE is to identify impacts from the Pavement Strengthening and Associated Works at Mendi Airport in Southern Highlands Province (Figure 1) and mitigations required to address them.

A. Overview

4. The proposed investment program will entail the upgrading and rehabilitation of the following existing airports (Tranche 3): Madang; Mendi; Kavieng, Vanimo, Kerema, Kiunga, Tari, Momote, Buka, Gurney, Wewak and Mt Hagen. The upgrading and improvement of these major domestic airports is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the runway, taxiway and apron capability to accept unrestricted operations by Fokker 100, Dash 8 and QF 400 aircrafts.

B. Environmental Regulatory Compliance

6. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the subprojects to CEPA so that CEPA can decide whether any specific environmental requirements will be needed for the proposed

1Project 1 rehabilitation work was under the Civil Aviation Authority (CAA) and was the predecessor for NAC.

airport upgrading and rehabilitation. Considering the government environmental requirements and ADB Environmental Safeguard Sourcebook (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

7. Pollution standards are described for the protection of marine and aquatic life in fresh and marine waters in the Environment (Water Quality Criteria) Regulation 2002. These standards will be referred to for water quality monitoring during the environmental management of the subprojects.

C. Environmental Category of the Subproject

8. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Sourcebook (2012) Tranche 3 projects are classified as Environmental Category B that requires an IEE.

D. Objectives and Scope of IEE

9. The objectives of this IEE were to:

10. This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

FIGURE 1. MAP OF PAPUA NEW GUINEA WITH MENDI

II. DESCRIPTION OF THE PROJECT

12. The current state of the airports in Papua New Guinea is inadequate to meet the increasing demand for air travel both for tourism and commercial purposes. This, in essence, presents itself as an obstacle to further economic growth and development of major regional centres in PNG and the country as a whole. The identified major domestic airports need to be upgraded and improved to meet the international standards and requirements and make it safety compliant as prescribed by the International Civil Aviation Organization (ICAO).

14. The Proposal is to upgrade the Mendi Airport to make it safety compliant as one of the highlands regional airport that could accommodate and be suitable for the operation of Dash 8 aircraft or similar, and for the airport to expand its role as the major domestic hub for Southern Highlands Province. Major upgrading works will be on the airside portion of the facility and minor works on the landside. All works will be within the existing aerodrome land boundary. No additional land area will be required outside of aerodrome boundary (Figure 2). The upgrading works will commence after all detail design, scope of works and approvals have been obtained; and the contractor selected to carry out the works.

15. The construction period of the proposed activities will be 12 months. The upgrading works will be within the existing land area of the airport together with the fencing installation to be re- aligned to follow the airport boundary. In addition, the wear and tear of the runway pavement is self-explanatory for this importance scope of works (Appendix 1, Photo 1 - 3).

16. The development works (Table 1), which will all be on the airside portion of the facility and confined to the limits of the existing pavements (main runway, taxiways and apron) area.

17. Mendi Airport upgrading will involve the following estimated materials and earthworks quantities:

 Cut to stockpile 100 millimetres (mm) topsoil for future - 6,802 cubic metres (m3)  Spoil (excavation material) - 20,465 m3  Select Fill Material - 68,685 m3  Crushed River Gravel Sub Base - 6,709 m3  Cement treated base (CTB) - 11,427 m3  26.5 mm Base course - 33,883 m3  Topsoil will be used and/or be re-used for topsoil and grassing  Excavated in-situ material will be used in landscaping and/or flight strip widening and grading.  All materials will be stockpiled at a designated location on the airside.  Base-course material shall be crushed river gravel – brought in potentially from Mendi River.  10 m3 trucks shall cart material from source and stockpile on site.  Contractor’s Site shall be located at the Airside (Area approx. = 100 m x 50 m).

Table 1: Proposed Works for Mendi Airport

Aircraft Pavements Strengthening and Associated Works 1. Repairs existing Runway, Taxiway and Apron pavements; 2. Strengthen existing Runway (1340m long x 30m wide); 3. Strengthen existing Taxiway A & B including fillets; 4. Strengthen existing Apron (223m x 48m); 5. Runway extension by 100m to give 1440m full runway length. 6. Construct new half strength Shoulders 1.5m wide on each side existing Runway; 7. Construct new half strength Shoulders 5.0mon each side of Taxiway A & B including fillets; 8. Construct new half strength Apron Shoulders 3.0m wide; 9. Supply and apply prime and three coat (10mm/7mm/Sand) bituminous seal surfacing; 10. Construct new Stopway (60m long x 30m wide) at both ends of runway; 11. Construct new RESA (90m long x 90m wide) at both ends of runway; 12. Supply and place 100mm topsoil including grassing all flank areas of Rwy, Twy A & B, Apron; 13. Supply and apply aircraft fuel resistant membrane on 2Nos.aircraft parking bays; 14. Supply and apply temporary and permanent aircraft pavement line markings; 15. Improvements to airfield drainage systems including construction of OUD either side of runway strip and reconstruction of pipe culverts and headwalls;

Landside Works, Airfield Lighting and Electrical Works, and Associated Works 16. Design and Construct new Terminal Building; 17. Construct 1 x 3 Bedroom Timber Framed Standard H65 House on high post with storeroom underneath in NAC compound for NAC Safety Officer’s Residence. 18. Construct new lockable 3 bay Shed for Tractor, Slasher, Trailer and Hay Bailer;

19. Supply and deliver to site 1 x M95Kubota4WD 80HP Diesel Tractor with Canopy and 1 x Heavy Duty 2.40m dia Superior LX240 Slasher complete with connections to link to Tractor including Trailer and Hay Bailer. 20. Supply, deliver, install and commission a new Petro Cube 6300L Diesel Fuel Tank including accessories 21. Construct new Generator Shed 22. Supply and install new 40KVa Genset including electrical reticulation. 23. Supply and deliver to site 90No. Cone Markers (40 White, 30 Yellow & 20 Red & White). 24. Supply and deliver to site 4Nos.Unserviceability Crosses painted white. 25. Supply, deliver and Install 2Nos.new Wind Indicators. 26. Construct new 1No. Signal Circle

27. Construct new Airport Market with Security Fencing and gates including power supply, water

tanks, and public toilet, carpark and security lights.

Note:

Allowance is made for other miscellaneous works including General and Preliminary items.

18. Mendi airport is in the middle of Mendi town (Figure 3) and adjacent land around the airport has been developed by individuals and businesses. Eastern part of the adjacent land covers residential areas, settlers and a Catholic Mission station. The NE and Western part of the town contains retail stores, post office, banks, markets and bus stop. To the south are patches of coffee

blocks, gardens and undeveloped land area. The main road runs parallel to the airport on the western side into the town. b. Project Requirements

19. Most of the road links around Mendi airport are bituminous roads. Constant power supply comes from the main town power supply. There are usually occasional blackouts so the project will install a diesel power generator at the airport so that continuous power supply is available for the airport facilities.

20. Water supply into the airport hydrants and terminal facilities including the airline operators (Southwest Air, Air Niugini) comes from the Township main water supply. The same water supply provides water for the town residents and business houses, government offices/buildings. Air Niugini has the airline operators have water tanks to supplement water when there is an increase in passenger numbers and the need for sanitation services.

21. Material for the pavement strengthening work including select fill material, crushed river gravel sub base, cement treated base and pavement construction material will be sourced from the Mendi River or Magani River and other quarry sites in the vicinity of Mendi. The contractor when appointed will decide on where to source the fill material from quarries and borrow pits.

22. As for spoils which will include worn out bitumen surface, the intention is for the contractor to have it levelled off along the edge of the aerodrome and then have grassing placed on it to assist regrowth and stabilization. Also these could be taken away to areas where the community may need to level off a depression around their residence.

FIGURE 2: GENERAL LAYOUT OF MENDI AIRPORT

Source: CADIP PIU, Drafting 2015

FIGURE 3: AERIAL VIEW OF EXISTING MENDI AIRPORT

Source: Goggle Earth @2015

III. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA)

A. Physical Environment

23. Geography and Topography. Mendi Airport is located at an elevation of 5 495ft. (1 675m) above sea level at 06o 08’ 51.86” S and 143o39’25.79” Eclose to Mendi River valley right in the middle of Mendi town in close proximity to the surrounding shops and business houses, banks, bus stop, main market, Provincial Government & Administration offices, (Figure 3). The airport land is generally flat with a gentle <2% slope running the length of runway from north to south. It is flanked by limestone cliffs to the west and to the east by Mount Giluwe.

24. Open unlined Drains (OUD) runs parallel to the main runway on both sides outside of the 30m flight strip. About 10 meters offset from the end of runway 35, a drain runs through towards one side of the fence. Most of the area is vegetated with turf grass and patches of taro and sweet potato gardens along sections of NAC staff house areas outside of the strip close to the fence line. The area drains to the south through OUDs and ends up in the main town drains outside of the fence line but parallel to the main road. Indication of water ponding outside of the runway and strip area will require proper grading and sloping during upgrading works. Mendi Airport’s facilities sewerage system connects to the main sewer line.

25. The airport existing runway is 1,344 m long asphalt surface and is aligned north to south front and is on reworked volcanic debris with well drained soils. The aerodrome area covers hangers, residential and office buildings. Nearly all of the unpaved airport land is covered with turf grass (Poaceae or Graminae) with buffalo grass (Bouteloua dactyloides spp) in the drains including taro, banana, morning glory (Convolvulaceae) and watercress (Brassicaceae) inside the drains.

26. The airport boundary has picket fencing along the airport boundary parallel to the main highway except for some sections of the fence line along the eastern side which is not fenced. The proposed fencing project will follow the original aerodrome boundary.

27. Existing facilities in the airport include the Air Niugini terminal building, Southwest Air Hanger, Medical Supply distributor storehouse, airport guesthouse, a hardware shop and NAC Safety Officers house. There is a main runway, two taxiways and an apron. Southwest fuel depot and office is next to the Air Niugini Terminal. Interoil has a fuel depot that supplies Air Niugini and Airlines PNG while the smaller aircraft and helicopters refuel through fuel drums in their respective areas.

28. The apron in front of the main terminal drains surface runoffs directly into the open unlined grassed drain parallel to the runway eventually connecting with the town main drains outside of the fence line beside the main highway. An oil interceptor is located at the edge of South West Air Hanger to trap oil and other waste.

29. Soils. The Mendi airport area soil type is dominated by Humitropepts – humic brown clay soils which are well drained together with Dystrandepts to the east and Palehumults to the south. These are moderate to little weathered brown ash soils and humic brown clay soils respectively (PNGRIS 2008).

30. Water Resources. No information is available for ground water in the area adjacent from the airport although there is the possibility of possible aquifers which would be below the Humitropepts - humic brown clay soils and run offs drain through open unlined drains which run parallel to the runoff to the Mendi River.

31. Mendi River and Magani Rivers are the only big rivers that run on one side of the town beneath

the ‘Tupiri’ Limestone Range along the valley downwards Lai Valley.

32. Meteorology and Climate. All of PNG is tropical experiencing the northwest monsoon from December to March and the southeast monsoon from May to October. Southern Highlands has a very cool temperatures ranging from 7-24 °C with high-altitude areas regularly experiencing crop- damaging frosts. Climate change has altered the temperature lately to a recorded average of 23.18oC (daytime) and 12.43oC (night time). Average annual precipitation is 2,894 mm (113.95 inches) and the least wet months are from May to July associated with the south-east monsoon, although heavy tropical rains can occur throughout the year.

B. Biological Environment

33. Mendi airport and its immediate surrounding are not within any protected area or biologically sensitive areas. The furthest protected area is the Wasi Falls Wildlife Management Area situated more than a 1kmout of Mendi Town. Fauna is also typical of disturbed environments consisting of avifauna, insects, reptiles including gecko and small lizards and amphibians such as frogs. There are no endangered or critically threatened species of flora or fauna in the vicinity of the airport.

C. Socio – Economic Environment

34. Mendi town economy consists predominantly of coffee and vegetables sales making most of the income for the locals. Most small holder coffee producers sell to coffee buyers along the road side and also at Coffee Factory Depots. Pyrethrum industry has been promising but the viability of export market has not given the opportunity for local market exposure.

35. Mendi has a population of about 56,000 people (estimated in 2013). Population density is 21.3 persons/km2. About 51% of the population are male and 49% female.

36. The Highlands Highway passes through the Mendi town. Mendi has the Huli and Duna Wigmen with tier famous traditional dress which attracts overseas tourists. Locals have ventured into lodging and accommodation business while fast food, public vendor and garden produce marking are the main source of household revenue. Pigs are valued for both subsistence and for bride price payment and compensation.

37. Education institutions like Mendi School of Nursing, Mendi Secondary and others are located within the township. Rugby League is the favourite sports in Mendi and there is a local team in the Digicel competition, a semi-professional rugby league game in PNG.

38. Most people work at the business houses and government offices and therefore there is substantial movement of cash around the township. There is no exact figure on the economic value that the airport brings in but it is a conduit for air travel within the Highlands and to Port Moresby.

IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

39. This section provides an assessment of the likely impacts associated with the pavement strengthening and associated works and ways to mitigate and/or manage them. The works will not result in any significant changes in environment beyond the existing airport boundaries. The assessment focuses on pre-construction, construction and operational stage impacts.

A. PRECONSTRUCTION

40. A number of activities will occur during the preconstruction phase where there is (i) the Establishment of Contractors Site and Facilities, (ii) Constructions Workers Accommodation and (iii) Stockpiling of Construction Material.

41. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities.

42. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material.

43. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public Relations Officer is tasked to ensure that these do not occur.

1. Establishment of Contractors Site and Facilities

40. The contractor’s work site establishment (inclusive of stockpiling) will be located outside of the airside and require an area of approximately 100 m x 50 m. Inappropriate disposal of wastewater and effluent from rest room and solid waste can cause pollution. Pollution anticipated to be generated during construction is expected to include day-to-day production of solid waste, domestic sewage, and oil and chemical wastes. The storage and handling of petro-chemicals will require careful management; an important part of the environmental management plan (EMP) will be requirement for an emergency response plan for spills and accidents.

41. The contractor’s depot area and yard/offices will be provided with sanitary disposal facilities that will address the generation of domestic wastewater and proper solid waste management. Silt traps shall be established around areas identified for clearing and drainage works to prevent siltation of any surrounding waters. During the pre-construction and construction period an adequate supply of an appropriate quality of water will be provided for both domestic (for the contractor’s depot area) and other purposes (construction activities i.e. concrete mixing, clean-up of machineries and washing of trucks).

42. Mitigation measures include:

 Restricting the contractor to a single, pre-planned construction site;  Requiring the contractor to install a septic tank or mobile toilets (if not connected to the main sewerage system) of adequate capacity;  Establishing mechanisms for grey water to be managed according to site conditions;  Requiring that all lubricants be collected, stored correctly and recycled;  Ensuring that the contractor has a spill contingency plan including drainage/settling pond control, bunds-drainage around fuel and storage areas;  Provision of receptacles for rubbish and rubbish to be disposed of at approved site; and  Banning of burning of rubbish or waste permitted at yard or work site.  Provision of complete and proper PPEs to workers

2. Construction Workers Accommodation

43. Establishment of contractors’ camp site will also comply with mitigation measures of waste management. Otherwise, contractor will rent a small compound for the skilled staff (10-15 persons) recruited for the construction works such as the Pavements Supervisor and Foreman, Mechanical Supervisor and Plant Operations Supervisor, etc. All other skilled and unskilled personnel which are estimated at 30- 40 persons shall be sourced locally and would not require housing in campsite.

3. Stockpiling of Construction Material

44. The development works (i.e. pavement strengthening, flight strip widening, construction of shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and laying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the contractor’s environmental management plan (CEMP) with clean-up initiatives undertaken as required. Mitigation measures include:

B. CONSTRUCTION

45. The Constructions phase has a number of activities or induced activities such as (i) Clearing and Grubbing, (ii) Pavement Construction, (iii) Building Construction, (IV) Storage and Handling of Fuel, Oil and Other Chemicals, (V) Health and Safety, (VI) Social Impacts, (Vii) Noise impacts and Air Quality and (VIII) Traffic Impacts.

46. All these activities will be confined to the construction area and physical and biological impacts will occur within the shrubs and trees that will be cleared for the new terminal and market buildings. There is the possibility of fuel, oil and other chemicals that will into the water ways although there is no noticeable water way in the vicinity of the construction area. The limestone substrate allows for runoff to permeate through.

47. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the Environmental Management Plan.

1. Construction Activity

48. Clearing and Grubbing. All grubbing of topsoil, clearing of grass areas and trees/shrubs, old fences and culvert materials clearance will require stockpiling in controlled areas during construction. All topsoil, grass and culvert clearance will be cleared and stacked to edges of the fenced area to allow for re-vegetation or taken to designated sites for reuse. Exposure of soil can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation and management measures include:

 Installation of sedimentation controls in drains

49. Pavement Construction. Excavation and disposal of the existing pavement can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. All construction spoils including solid and coal tar wastes and empty containers from the work areas should be removed from site and transported to the public waste disposal area. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation measures include:

50. Building Construction. Building construction such as airport terminal and NAC staff house will commence upon completion of the sub-ground service activities. Building construction shall occur in concurrence with runway pavement upgrading. Mitigation measures include:

2. Storage and Handling of Fuel, Oil and Other Chemicals

51. The use of equipment and plant during the works will require usage, storage and handling of fuel, oil and other materials. Subsurface water resources near the selected subproject road sections could be anticipated to be contaminated by fuel and chemical spills. The following mitigation measures are included in the EMP to reduce the levels of impact associated with such effects:

3. Health and Safety

52. During construction activities, work sites, traffic, and operation of equipment, plants and

vehicles can pose health and safety risks for workers and the community. Health and safety codes of PNG and World Bank Group’s Environment, Health and Safety Guidelines (as per the SPS) will apply at all sub-project sites. Measures to mitigate risks include:

4. Social Impacts during Construction

53. The presence of a construction workforce can create social impacts such as risk of spread of communicable diseases (such as STIs and HIV) and create social disruption as a result of conflicts between workers from outside and local people. The workforce required for the pavement construction and associated works will be relatively small but wherever possible local people should be employed.

54. The contractor for Mendi airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Mendi return to their original place of residence to avoid impacts from informal migration.

5. Noise Impacts and Air Quality

55. Air and noise pollution may be created by earthmoving, operation of heavy equipment and plant, transportation of materials to and from the site, and general works in the dry season generating dust and exhaust fumes such as Carbon Monoxide.

56. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Mendi airport is located in a busy area with noise coming from all moving vehicles in and out of town but away from sensitive receivers (schools and hospitals), although there are some residential areas adjacent on the Westside of the airport and the impacts can be reduced to negligible levels by:

 Vehicles transporting loose materials and stockpiles to be covered with canvas. Work site and vehicles to be watered-down if generating dust.

6. Traffic Impacts

57. The need to transport materials to and from the site can cause traffic congestion if not managed properly. The contractor shall be required to prepare a traffic management plan as part of the EMP to demonstrate how construction traffic can be handled during the works in order to minimize impacts on transportation networks in the vicinity of the sites.

C. OPERATIONAL

58. At the completion of construction work, all materials will be removed or disposed of and the completed works will be in place. The only impact during the operational phase is the noise impacts which will be for the duration of approaching and landing aircrafts.

59. Operation Stage Issues. Aircraft noise emissions, whilst considered only a minor issue at present, can increase with increasing flight frequency in the future operation of the airport, and need to be proactively managed. The problem can mostly be ameliorated by the careful location of ground running, and by the times these activities are undertaken. Occupational and residential exposure to aircraft noise is expected to increase over time; however, the noise impacts will only be for very short duration during aircraft take-off and landing only. It is not a concern for the contractor at this stage. 60. Aircraft ground operating noise will require management negotiated agreements between airlines, NAC and the local communities on times, frequency and locations of operations. Noise from aircraft in flight requires addressing in the context of the EMP such as plants locate plant s away from aircrafts parking/approach area. NAC must prepare, regularly update and promulgate noise exposure forecasts in accordance with the ANZECC 1992 or Australian Noise Exposure Forecast. This shall be NACs operational matter.

61. NAC, airlines and other aviation operators will introduce, under the Civil Aviation Regulations, a formal Safety Management System. For all airports, this will address both temporary safety risks during construction, and ongoing safety risks during normal operations. This system will also address management of environmental impacts of accidents and safety management processes.

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Introduction

62. The SPS and ADB’s Public Communications Policy (2011) require that relevant persons’, communities and stakeholders are consulted as part of project preparation and implementation so as to disclose appropriate project information publically. Consultations were undertaken as part of the environmental assessment and poverty and social assessment processes as well as for preparation of social safeguard documentation such as due diligence reports and resettlement plans. Consultations for Mendi airport was conducted on Tuesday 11th of August 2015 with the Southern Highlands Provincial Administrator (PA) and his management team at the PA’s office. Table 2 displays the details for the consultations and number of participants (by male and female) for the meetings. The main issues raised and response to those issues or concerns follows this section (Refer Appendix 1, Photo 4).

Table 2: Consultations for Mendi Airport Date Time Names Position 11/8/2015 2PM Mr. Ambe Keleli D/PA– Corporate Services – Southern Highlands Provincial Administration (SHPA)

Mr. Lazarus Kangi Administration Officer - Provincial Administrators Office, SHPA

63. There are no village communities around the immediate proximity of the airport. Only settlements and residential areas. Hence, consultations were not considered beyond the airport perimeter area. There is also the possibility of potential issues such as locals’ intention to subcontract in the project, arising from individuals and communities outside of the airport area is consulted. The act of consultation will raise expectation and demands simply because it does not focus on certain group as in a village community. Similar arrangement will be carried out in the other provinces.

B. Issues Raised and Responses

64. All the consultation was fruitful with unanimous support from all stakeholders consulted. Some of the issues raised relevant to the proposed development are as follows;

 Mendi airport is declared aerodrome land. NAC is the custodian of the land for aerodrome purpose.  All land matters concerning the airport upgrading project has been sorted out and there is no current outstanding issue. Clams of landownership shall be addressed through the Office of the Provincial Administrator whilst awaiting the formation of the Grievances Redress Mechanism established through a Working Committee with SHPA.  Grievances Redress Mechanism (GMR) for the Project will be represented through a working committee to be established within the Southern Highlands Provincial Government & Administration.  Possibility of subcontracting to the main contractor by established local contractors  Construction of a mini airport market may be optional since the town nearest market is a walking distance (about 200m) from the airport terminal area.  Traffic congestion, dust and noise from contractors’ vehicles/trucks with normal traffic flow shall be managed by the contractor through a traffic management as well as part of the Environmental Management Plan.  These concerns and views from the SHPA form part of the basis of this IEE and are unanimous in this development considering that the pavement strengthening and runway extension was just time to correct the deteriorated condition of the current runway pavements. It will allow for increased air traffic and visitation from people within Papua New Guinea and overseas.  SHPA Support is indicated for the project implementation.

C. Information Disclosure

65. In disclosing the environmental documents to the public, (i) NAC through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B-sensitive subprojects, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC-PIU will consult the public, particularly with project affected persons.

66. Disclosure of relevant environment safeguards documents will be in an appropriate form, manner, and language and at an accessible location to be understandable to the affected people and local stakeholders. During Tranche 1& 2, NAC established arrangements with provinces for coordination with a Project Coordination and Monitoring Committee (PCMC) and/or through the office of the Provincial Administrator (PA). Same procedure will apply for Tranche 3 projects.

67. A PCMC is set up within respective provincial administrations and this committee will oversee all concerns and grievances from the local communities and affected parties. Some Provincial Administration prefers a committee to be established with the Provincial Administration through the Office of the PA. For SHP, this is set up through the Provincial Administrator, supported by the Provincial Lands Officer, District and Local Level Government Officer and other resource and service departments such as Agriculture and Livestock and Customs. In the villages, councillors are the linkages between the Local Level Government and their Wards and they deliberate on issues. This forms part of the grievance redress mechanism (GRM) as explained in Section G.

68. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to affected persons and communities regarding the requirements for land acquisition& Resettlement (LAR) and GRM.

VI. GRIEVANCE REDRESS MECHANISM

69. A GRM was established for CADIP during Tranche 1 and Tranche 2. The GRM to be implemented for Tranche 3 will reflect the steps and procedures already established but modify them to account for lessons learned. The GRM is a procedure for addressing environmental and social/land issues and concerns that may arise. During the course of the project it is possible that people may have concerns with the project’s environmental performance or social/land issues including the implementation of the project. Issues may occur during construction and again during operation. Any grievances dealing with construction and again during operation will need to be addressed quickly and transparently, and without retribution to the affected persons.

70. As noted in the previous section, NAC has an arrangement with provincial administrations through which grievances can be addressed. While NAC may have safety officers and operational managers at the Tranche 3 airport projects, they cannot be given the full responsibility of having to address grievances. They can however, only note and report to Provincial Administrations as partners in the provinces and/or through (i) an airport working committee, or (ii) the Provincial Coordinating & Monitoring Committee (PCMC). The airport working committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant Intra-Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

71. Where there are affected people for any airport development work, a grievance redress mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

72. Papua New Guinea Land Disputes Settlement Act establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process is established involving airport working committee/PCMC and appropriate community leaders and representatives. The NAC person on site such as a Safety Officer or the Operational Manager will be the first person to be contacted who will then liaise with airport working committee/PCMC to register, clarify and mediate potential issues.

73. The GRM will apply equally to the contractor who will be required to maintain a complaints registry recording complaints or issues raised and how they have been resolved. The registry will be subject to monitoring as part of Contractors’ Environmental Management Plan (CEMP) compliance checks.

74. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:

VII. ENVIRONMENTAL MANAGEMENT PLAN

75. Mitigation measures, environmental monitoring, and capacity development are required to minimize the environmental impacts in the design, construction and operational phases. The EMP provides the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate with the project’s impacts and risks). It will be necessary to update the EMP during the detailed engineering design phase. A condition of the proposed loan will be the adoption and enforcement of a CEMP to mitigate negative impacts associated with airport improvement activities. The EMP matrix developed to cover the expected impacts for the pavement strengthening and associated works at Mendi Airport is provided in Table 3.

A. Institutional Arrangements

76. The overall MFF program will be oversight by a steering committee. The executing agency of the MFF Program will be the NAC. The PIU will be responsible for daily management and implementation of the projects comprising Tranche 3.

77. The NAC, through the PIU, will be the main agency/entity responsible in coordinating the implementation of the Environmental Assessment and Review Framework (EARF). This will include, but not be limited to;

 ensuring that the EARF procedures are strictly adhered to  preparation of environmental assessments will be carried out in a timely and adequate manner  environmental monitoring and institutional requirements will be fully met, while  Meaningful public consultations are carried out satisfactorily.  NAC will submit the categorization environmental assessments, and monitoring reports to ADB for review in a timely manner. Table 4 provides the responsibilities and authorities of key organizations involved in the implementation of the EARF.

78. The PIU is staffed with the national Environmental Officer (EO) and will be supported by an International Environmental Specialist (IES). The IES will be part of the NAC during the Project with the primary tasks to: (i) strengthen the environmental management of the Project during detailed design, bidding process, contract process, construction, and implementation, (ii) provide induction training to contractors prior to preparation and submission of the CEMP for each subproject. Provide assistance to EO and PIU for review and clearance of the CEMPs; (iii) supervise/monitor compliance with the approved CEMP of each subproject; (iv) undertake the necessary institutional strengthening including on-the-job training for the EO of NAC-PIU by giving major tasks to the EO in all of these activities under IES supervision; (v) prepare reports on environmental safeguards activities as required; and (vi) update the EARF and supervise and guide the environmental assessment process for projects to be implemented in the Tranche 3 as part of the PFR.

79. The IES will be engaged intermittently for eight person-months during the Tranche 3 also in Tranche 4 period and will be assigned on an intermittent basis to undertake training and capacity building for environmental management in NAC and to guide the EO of PIU in preparing assessments, monitoring and reporting. The IES and EO will jointly be responsible for overall environmental management of Tranche 3.

B. Task of Implementing Agencies

80. NAC-PIU. Table 3 sets out the Institutions responsible for implementing Safeguards Requirements in CADIP Tranche 3. NAC being the Executing Agency (EA) has the primary role of ensuring the Safeguard Measures and Issues are adequately covered. The Environment Officer (EO)

is the focal person in providing feedback to environmental and social issues raised during the construction and operational phase of the project. He will be assisted by the International Environmental Specialist on an intermittent basis. On the ground in Momote, NAC’s Safety Officer will oversee daily operations of activities and can notify the EO of serious environmental noncompliance and the EO will visit to remedy the complaint.

81. ADB. ADB through the Papua New Guinea Resident Mission will provide guidance as to the submission of periodic monitoring reports from NAC that would meet ADB’s standards and guidelines before these are uploaded onto ADB website.

82. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the monitoring and progress of the project as per loan covenant.

83. Contractor. The Contractor is to submit a Contractors Environmental Management Plan (CEMP) for approval by NAC and ADB on the mitigation measures that it will take in the implantation of the project. This CEMP will be approved and used in the submission of regular reports to NAC who will submit to ADB for perusal and approval.

84. CEPA. CEPA as the overseers of the Environmental Act 2000 will be updated on the submission of this IEE and its coherence with similar categories which is an Environmental Inception Report. This will be noted and assessed for compliance and under new fee arrangements the NAC may be liable for an assessment fee leading to a permit for the sub project.

Table 3: Design, Construction and Operational Environmental Management Plan

Table 4: Institutional Responsibilities for Implementing Safeguards

Organization Implementation Responsibilities NAC –Project Prior to the submission of the Periodic Financing Request (PFR) Implementation Unit (PIU) for subsequent projects the NAC will: Environment Officer (EO)  Prepare the environmental assessments (IEE or EIA), including and International an Environmental Management Plan (EMP) for each subproject Environmental Specialist and submit to ADB and public disclosure. (IES)  Ensure that adequate public consultation has been undertaken with affected groups and local stakeholders review the environmental assessments and submit the IEE and/or EIA documents as required, to ADB.  Submit the necessary environmental assessments to ADB in sufficient time to permit the necessary disclosure by ADB.  Undertake the necessary actions to ensure environmental compliance with the GoPNG’s and ADB’s requirements; NAC –Project Prior to the commencement of civil works, the NAC will: Implementation Unit (PIU)  Submit any of the environmental assessments required for Environment Officer (EO) regulatory approval of the CEPA and obtain approval, e.g., and International environmental clearance, environmental permits. Environmental Specialist  Ensure that all regulatory clearances for the subproject that are (IES) obtained from the relevant Government authorities are submitted promptly to ADB.  Ensure that the required mitigation measures during construction, the IEE and the EMP are included in the bidding document of the subproject and that all bidding contractors have access to the environmental assessments and EMP.  Ensure that the EMP and all required mitigation measures during construction, including conditions stipulated in the CEPA's clearance or environmental permit, are included in all the contracts signed by the Contractor(s) with requirements to update the EMP in response to any unexpected impacts and that all selected contractors have agreed the to implement the full suite of environmental mitigation measures prescribed in the EMP.  Receive environmental safeguard clearance on subproject(s).  Provide EMP induction training to contractors;  Review and clear the contractors CEMP for each subproject NAC –Project During the implementation of civil works, the NAC will: Implementation Unit (PIU)  Ensure that a contractor’s environmental management plan Environment Officer (EO) (CEMP) including all proposed mitigation measures and and International monitoring programs and relevant provisions of the Environmental Specialist environmental assessments is updated as required, and is (IES) properly implemented by the contractors.  Monitor the implementation of CEMP and present the monitoring reports to ADB.  In case unpredicted environmental impacts occur during project implementation, inform ADB, review the CEMP with the contractor, and implement alternative environmental mitigation program.  In case a subproject changes in scope, inform ADB and reconfirm the environmental classification, determine whether a supplementary IEE or EIA study is required, and carry out the study including the requirement for information disclosure and public consultation;  Submit the requisite reports on progress with social and environmental compliance and implementing the CEMP as required by the CEPA and ADB.  Ensure that ADB be given access to undertake environmental due diligence for all subprojects. However, the NAC will have the

main responsibility for undertaking environmental due diligence and monitoring of all the subprojects. The due diligence report as well as monitoring reports on CEMP implementation, as required, will be systematically prepared and be made available to the public, if requested ADB During the implementation of Tranche 3, ADB will:  Regular reviews and approval of subproject IEEs and EIAs.  Provide technical guidance to the NAC as needed.  Reviewing regular monitoring reports and officially disclosing the summary environmental assessments for selected subprojects (Category A and B sensitive) on the ADB website.  Review environmental assessment reports as a basis for subproject approvals. Disclose assessments of category A subprojects, and category “B sensitive” subprojects for 120 days via ADB websites (as required) before a PFR is submitted to ADB.  Monitor the EMP implementation, as required, and conduct due diligence as part of MFF reviews.  Provide assistance to NAC, if required, in carrying out its responsibilities and for building capacity for safeguard compliance.  Ensure that the NAC will conduct the required consultations with project affected groups and local NGOs in PNG, and that the NAC as project sponsor disclose relevant environment information on the project’s environmental issues in an appropriate form, manner, and language(s) accessible to those being consulted. Such information disclosure with affected people will be guided by the Public Communication Policy (2011). Contractors  Based on site specific conditions, prepare Contractor’s Environmental Management Plan (CEMP) for each site  Implement and report on CEMP as part of pavement strengthening and rehabilitation activities  Prepare monthly CEMP report as part of progress reports and submit to PIU. The report will also include the Monthly Accident Report and measures undertaken to address any non-compliance issues identified by the PIU (or CEPA). CEPA  Administration and enforcement of the Environment Act 2000 and its regulations as it pertains to the project  Identify whether EPs (with or without conditions) required for any identified site  Review IEE and other documentation required  Administer Contractor Waste Disposal permit applications and performance

C. Monitoring and Reporting 85. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

86. Monitoring during construction will be the responsibility of the contractor and NAC (carried out by EO) and IES within the PIU. Monitoring will relate to compliance with construction contracts (including EMP measures and provisions), the state and health of the nearby environmental resources, and the effectiveness of mitigation measures and complaints. Monthly progress reporting will include a summary of this monitoring submitted to the NAC on a regular basis (at least quarterly) and to ADB semi-annually.

87. The estimated cost for the monitoring plan is $25,000. The costs of the

environmental mitigation plan will be part of the construction costs (Appendix A).

88. Table 5 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 6 states the roles and responsibilities for environmental monitoring. Table 7 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipment to be procured by the contractor or through specialised firms. Table 8 shows the summary of the environmental management costs including implementation and monitoring costs.

89. The PIU will be responsible for reporting progress of Tranche 3 to NAC and ADB. Monitoring of each contractor will cover monthly progress and CEMP implementation and compliance (including general good practice). A section on safeguards activities and compliance with the CEMP for each subproject will also be included in quarterly progress reports (QPR) prepared for NAC and ADB.

90. The reporting will be as per the following schedule:

91. The Project completion report will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the EARF and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

Table 5. Environmental Monitoring Plan

CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

3. Health and i) Site inspection i) Compliance with method of Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Construction methodology and safety of workers Working Plan and OH & S Plan Phase PIU/CSC work plan ii) Contractor’s approved OH &S Plan 4. Demobilization i-v) Inspection of operations and i-v) Best practices – Defined in Momote Airport End of Once Contractor/ CEPA/NAC i) Preparation of abandonment site Final EMP construction PIU/CSC plan phase ii) Demolition of temporary offices and Contractor’s Depot Area iii) Dismantling of ancillary facilities iv) Re-vegetation of exposed areas v) Proper disposition of construction debris

OPERATION AND MAINTENANCE PHASE 1. Noise i) Ambient Noise i) ANZECC 1992 or Australian Momote Airport Operations Semi-Annual PIU/NAC CEPA disturbance i) Establishment of buffers Noise Exposure Forecast (ANEF) between airports and nearby settlements ii) Preparation of operational procedures by Airport Operator 2. Water pollution i) Proper sanitation and sewerage i) Inspection of operations and site i-ii) Water Quality Standards of Momote Airport Operations Semi-Annual PIU/NAC CEPA systems (construction of septic ii) Storage for hazardous and toxic PNG-CEPA tanks or connection to main sewer materials line) installed 3. Air pollution i) Proper maintenance of vehicles i) Total suspended particulates i) CEPA Air Quality standards Momote Airport Operations Semi-Annual PIU/NAC CEPA ii) Re-vegetation of exposed areas PIU – Project Implementation Unit; CSC – Construction Supervision Consultants; NAC – Civil Aviation Authority; CEPA –Department of Environment and Conservation

Specific sampling stations will be defined during the conduct of the baseline survey before commencement of works

Table 6: Roles and Responsibilities for Environmental Monitoring

Implementation Implementation No Environmental Monitoring Tasks Responsibility Schedule 1 Design Phase Disclosure of subprojects to CEPA 1.1 NAC-PIU, EO Prior to construction and monitor permitting. Audit project bidding documents to NAC-PIU (by ensure IEE and EMP included in bids Prior to issue of bidding 1.2 IES and environmental criteria are documents. and EO) included in evaluation. 2 Construction Phase First orientation/briefing 1 month prior to commencement of each NAC-PIU (by Orientation and briefing of contractor’s contract and refresher 2.1 management, site agents with regards IES orientation/briefing at least to all IEE and EMP requirements. and EO) yearly during construction period. Monitor the performance of environmental training by contractor NAC-PIU (by Ongoing, prior to and during 2.2 and briefings and of the environmental IES implementation of works and awareness of Contractors staff, tool and EO) operation. box talks and & refresher courses. Regular (monthly) monitoring and NAC-PIU (by Continuous throughout 2.3 reporting(quarterly) of contractor’s IES compliance with statutory construction period. and EO) environmental requirements Regular (monthly) monitoring and reporting NAC-PIU (by (quarterly) of contractor’s Continuous throughout 2.4 compliance with contractual IES construction period. environmental mitigation measures and EO) including EMP. Regular (monthly) monitoring and NAC-PIU (by reporting(quarterly) of complaints and Continuous throughout 2.5 IES responses or environmental mitigation construction period. and EO) measures Monitor adjustments to the EMP for NAC-PIU (by During all phases of the 2.6 unexpected impacts and the thorough IES Subprojects implementation of detailed EMP. and EO) Commissioning phase monitoring of NAC-PIU (by facilities versus environmental 2.7 IES At commissioning. contractual performance criteria. and EO) Check EMP compliance. 3 Operation and Maintenance Phase Post construction monitoring of Semi-annual up to 3 years after air/noise/water quality at any sites NAC-PIU (by completion of construction or 3.2 where complaints about water quality EO) until air, noise and water quality from works were justified in meets baseline conditions. construction phase.

VIII. CONCLUSION AND RECOMMENDATION

92. The project will cause short-term environmental disturbances associated with construction activity that will be mitigated by operational procedures during construction, within the framework of a contractor’s approved EMP in line with the EMP stated herein (Table 5 above) to be supervised by the PIU. 93. Mitigation measures to prevent or minimize unnecessary impacts are also

provided. Potential impacts and risks during construction were also characterized as short term and unnecessary impacts will be minimized through good construction management and housekeeping practices. An EMP containing impact mitigation and monitoring plan to mitigate the potential impacts has been prepared to ensure that the project will be implemented in an environmentally sound and sustainable manner.

94. Positive impacts to the local economy will accrue through new income earning opportunities for locals generated by demand for labour, women participation to semi- skilled during construction; and airport staffing and management arrangements, and through the creation of new non-aeronautical business opportunities in the terminal facilities and surrounding areas.

95. This IEE concludes that in the context of appropriate mitigating strategies described above, and the positive environmental benefits to flow from the Project, environmental impacts can be managed within acceptable levels. There are no significant environmental impacts needing further detailed study or EIA. All potential and associated impacts can be addressed through implementation of the mitigation measures as proposed in the IEE. Provisions will be made in the Project Budget to cover the environmental mitigation and monitoring costs.

APPENDIX A: ENVIRONMENTAL MONITORING PLAN

Table 7: Matrix of EMP for Mendi Airport

PLANNED EQUIPMENT COST OF ENVIRONMENTAL INDICATOR MONITORING AREA OF REQUIREMENTS MONITORING PARAMETER PARAMETER FREQUENCY MONITORING AND (MONTHLY COST (US$) COST IN US$) Monthly During Construction Sulphur Period/Semi-Annual dioxide During Operation Period 1 Unit - PM10 Portable US500.00 Nitrogen US$2500 (includes dioxide Monthly During 1 Unit - 3 Gas transportation Construction Analyzer and lab Period/Semi-Annual Portable analysis) During US$2000.00 Operation Period Air and 2 stations Noise Monthly During Total Construction Suspended Period/Semi-Annual Particulate During Operation Period 1 unit – Noise Monthly During Metre Construction US$500.00 US$400.00 Noise Period/Semi-Annual ((includes During transportation Operation Period and lab analysis) Temperature pH Biological Oxygen Demand (BOD) Dissolved Monthly During US600.00 1 Unit Portable Oxygen (DO) Construction (includes Water Water Oil and Grease Period/Semi-Annual 1 Station transportation Quality Quality Analyzer Total Coliform During and lab US$2000.00 Count Operation Period analysis) Total Suspended Sediments (TSS) Total Dissolved

Table 8: Summary of Costs for the Proposed Works

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000

Impacts During Construction 98,000.00

Sub-Total 128,000.00 PARAMETER EQUIPMENT (US$) MONTHLY MONITORING COST2 (US$) (US$) Air and Noise One set of equipment for EO 900.00 15,800.00

Water Quality One set of equipment for EO 600.00 9,200.00

SUB-TOTAL 1,500.00 25,000.00

GRAND TOTAL 153,000.00

1Costs quoted are estimates and will be finalized upon completion of Detailed Design Phase (to be included in Bill of Quantities). Costs will be incorporated in total construction cost. 2Cost inclusive of equipment, transport, and laboratory analysis for Baseline survey before commencement of works, 12 months of construction period and 3 years operation phase (at six-month interval).

APPENDIX B: PHOTOGRAPHS

Photo 1: Existing Apron area with Hevi Lift Hangar at the Tupiriforeground Limestone

Have lift Hanger

Runway

Taxiway

Turf Grass

Photo 2: Apron, Taxiway and Runway to be upgraded

Photo 3: Runway pavement and Open Unlined Drain to be improved

Photo 4: Existing picket fence to be replaced with Palisade Fencing Material

6. Momote Airport Initial Environment Examination

EXECUTIVE SUMMARY

IV. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Safeguard Policy Statement 2009 and the GoPNG Environment Act 2000.

V. The main findings of this IEE indicate that the impacts that will arise from Momote Airport Runway Extension & Associated Works will be minimal and will be contained within the aerodrome area. The works only involve rehabilitation and improving the aircraft pavement and associated works and building a new terminal together with an airport market for duration of 18 months. The project is classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

VI. The potential environmental impacts associated with the project particularly occur during the construction and operation phases which will typically involve:

(i) Earthworks and pavement works. During the conduct of earthworks for the terminal construction, markets and pavement works, heavy rains and the associated run-off into drains and soil erosion problems can be expected in some areas such as flight strip widening and Open Unlined Drain which may cause surface water quality problem in nearby water courses.

VII. Adherence to best engineering practices during rehabilitation/reconstruction and implementation of the environmental management plan will avoid or adequately mitigate all of the rehabilitation/ reconstruction-related impacts.

VIII. A Grievance Redress Mechanism setup in Tranche 1 and 2 will be used in Tranche 3 and the Provincial Administration are fully aware of its role. Public support during consultation for the project was unanimous and the community wanted the project to commence immediately as they seek possible job opportunities with contractors. The new terminal and market facilities will provide opportunities for women groups to actively participate in selling their wares.

IX. The upgrading of the Momote Airport is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the F100 aircraft, QF 400 or similar.

I. INTRODUCTION 1. The Government of the Independent State of Papua New Guinea (GoPNG) has requested the Asian Development Bank (ADB) to provide a multi-tranche financing facility (MFF) to facilitate investments to improve the current state of the country’s domestic air transport system under the Civil Aviation Development and Investment Program - (Investment Program). The first two Tranches (Tranche 1 & 2) has had its clearance done and this is Tranche 3. Tranche 3 will cover (twelve) major airports in the country where they have been identified for upgrading and rehabilitation mainly based on the relative importance of these airports as domestic hubs for tourism and economic development on a regional basis. The Program is a comprehensive plan to upgrade, rehabilitate and maintain major domestic airports in Papua New Guinea (PNG). The executing agency (EA) for the Program is the National Airports Corporation1 (NAC).

2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the subprojects under Tranche 3 – Pavement Strengthening, Runway Extension and Associated Works at the Momote Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Source Book (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment.

3. The main purpose of this IEE is to identify impacts from the runway extension and pavement strengthening, terminal and associated works of the Momote Airport, Manus Province and mitigations required to address them.

A. Overview

B. Environmental Regulatory Compliance 5. The environmental regulations of GoPNG are taken from Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects that need environmental assessment as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Projects that likely to have significant adverse environmental impact (Level 2 and Level 3) are required to obtain an Environmental Permit (EP) from the Conservation & Environment and Protection Authority (CEPA) following environmental assessment. The upgrading and rehabilitation of existing airports is not listed as Level 2 and Level 3 of the “Prescribed Activities”. However certain associated project activities commonly associated with upgrading and improvement works such as earthworks, surfacing, discharge of waste water, establishment of borrow pits, sourcing and extraction of aggregate materials from surface water courses are Level 2 activities that may require an EP depending on the duration and scale of those activities. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the subprojects to CEPA so that CEPA can CEPAide whether any specific environmental requirements will be needed for the proposed airport upgrading and rehabilitation. Considering the government environmental requirements and Environmental Safeguard Source Book (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

1 Project 1 rehabilitation work was under the Civil Aviation Authority (CAA) and was the predecessor for NAC. FIGURE 1: MAP OF PAPUA NEW GUINEA AND LOCATION OF MOMOTE AIRPORT

C. Environmental Category of the Subproject

7. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Source Book (2012). Tranche 3 projects are classified as Environmental Category B that requires IEE.

D. Objectives and Scope of IEE

8. The objectives of this IEE were to:

9. This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

II. DESCRIPTION OF THE PROJECT

12. The tranche 3 of development investments under CADIP will be the upgrading and rehabilitation of the existing Kavieng Airport in the New Ireland Province; Mendi Airport in Southern Highlands Province; Madang Airport in Madang Province; Vanimo Airport in West Sepik Province, Mt Hagen in Western Highlands Province, Wewak Airport in East Sepik Province, Tari Airport in Hela Province, Gurney Airport in Milne Bay Province, Kerema Airport in Gulf Province, Kiunga Airport in the Western Province, Buka Airport in the Autonomous Region of Bougainville and Momote Airport in the Manus Province. Only the scope of works for Momote Airport is in Table 1. Table 1: Scope of Works for Momote Airport

Sub Location Proposed Development Works Project Momote Manus A. Aircraft Pavements and Associated Airside Works Airport Province 1. Repairs to existing Runway, Taxiway and Apron pavements; 2. Strengthen existing Runway (1810m long x 45m wide); 3. Reseal existing Taxiway including fillets; 4. Reseal existing Apron; 5. Extend Runway by 190m towards the SW end to give 2000m full length; 6. Construct new Stub Taxiway on NW side of runway; 7. Construct new Apron (92m long x 105m wide) on NW side of Runway; 8. Construct new half strength Runway Shoulders 7.5m wide on each side; 9. Construct new half strength Taxiway Shoulders 7.5m wide on each side; 10. Construct new half strength Apron Shoulders 1.0m wide; 11. Supply and apply Bituminous Prime and Single coat (14mm) surfacing; 12. Asphalt Surfacing (75mm thick) to all aircraft pavements including grooving of runway; 13. Construct new Stopway (60m long x 45m wide) at both ends of runway; 14. Construct new RESA (90m long x 90m wide) at both ends of runway; 15. Supply and place 100mm topsoil including grassing of all flank areas of Rwy, Twy and Apron; 16. Supply and apply temporary and permanent aircraft pavement line markings; 17. Construct new RC Concrete Pads (3Nos. 24m x 12m) on F100 aircraft parking bays; 18. Relocate existing PAPI lights at both ends including flight testing and commissioning; 19. Supply and install Apron Flood Lights; and 20. Relocate Primary Windsock and Signal Circles at NW side of Runway.

B: Landside Works, Airfield Lighting and Electrical Works, and Associated Works 1. Design and construct New Terminal Building on NW side of Runway; 2. Construct 1 x 3 Bedroom Timber Framed Standard H65 House on high post with storeroom underneath in NAC compound for NAC Safety Officer’s Residence; 3. Construct new Power House; 4. Construct new lockable 4 bay Shed for Tractor, Slasher, Trailer and Hay Bailer; 5. Supply and deliver to site 1 x M95 Kubota 4WD 80HP Diesel Tractor with Canopy and 1 x Heavy Duty 2.40m dia Superior LX240 Slasher complete with connections to link to Tractor including Trailer and Hay Bailer; 6. Supply, deliver, install and commission a new Petro Cube 6300L Diesel Fuel Tank including accessories 7. Construction of new access road; 8. Construct new Carpark; 9. Supply and install 2 x 200KVa Genset including electrical reticulation; 10. Supply and deliver to site 160Nos. Cone Markers (80 White, 40 Yellow & 40 Red & White); 11. Supply and deliver to site 4Nos. Unserviceability Crosses painted white; 12. Supply, deliver and install 2Nos. new Wind Indicators, and 13. Construct new Airport Market with Security Fencing and gates including power supply, water tanks, and public toilet, carpark and security lights. 14. Provision of new bore water supply system and new sewerage (Devan) system; Note: B. Allowance is made for other miscellaneous works including General and Preliminary items. 13. Momote Airport is situated at 203’430S,147025’270E on Los Negros Island, 20 kilometres south east of Lorengau Town, Provincial Headquarters of Manus Province where banks, post office, business houses, hotels and guest houses are. Figure 1 shows the map of Papua New Guinea and location of Momote Airport. Figures 2 and 3 shows the general layout plan and the aerial view of the existing Momote Airport.

14. The airport serves the people of Manus and provides for air transport services with its daily flights into the provinces and has been of importance to the Australian Government Asylum Regional Processing Centre situated at the Lombrum Naval Base, 14.4 km, to the North West. The average rainfall that the province receives is 3500 mm and it may be greater during the period of December to October. Manus is the smallest provinces in Papua New Guinea with a land mass of approximately 2000 km2 and its elevation ranges from sea level to over 700m and corresponding temperature ranges from 27 – 28 0C.

15. The existing bitumen runway is 1,870 metres long with a width of 45 metres and is aligned northwest/southeast along the Los Negros Island. The airport land is at low elevation about 5 feet or 1.524 m ASL and is about 20 to 25 metres of the coastline covering a total land area of approximately 9 hectares.

16. The airport land is flat (0 degree) running the length of runway from north to south. There are no notable lined drains but these are unlined drains running parallel of the runway on both sides and these drain water down to the southern extent and some of these drain through the limestone substrate and permeate through there. Hence there is no notable erosion feature along the length of the runway with maintained grass cover.

17. The airport runway and immediate fly-over areas are not fenced at this stage and fencing will be in the scope of work for this IEE. The facilities in the existing Momote Airport include the terminal building, terminal and small office operated by mostly Air Niugini. There is no third level airline present at Momote airport No hanger exists at present and other buildings within the airport are the US Government Solar Radiation project that has been measuring solar radiation for over thirty years or more. There is no separate apron for third level airlines and no fuel deport was visible. Momote Airport’s sewerage system is a standalone system (septic tanks) and is not connected to the main sewer line.

18. The proposed changes to the airport include the new terminal and apron area to the western end and the extension of the runway 190 metres to the east. During World War II, Momote airport was one of the important air and marine basis first for the Japanese Army and later for the Allied Forces who captured the base from the Japanese. The Allied Forces used its strategic location to their advantage in the WWII Pacific Campaign. During WWII the Allied Forces basically graded and cemented the whole of Momote for their planes and bombers etc., it was a hub of activity with thousands of men and equipment arriving and leaving daily.

19. Salient Features of the Project. The Proposal is to upgrade the Momote Airport to make it safety complaint to cater for the increasing air traffic that could accommodate and be suitable for the operation of F-100 B737 and related aircraft. These have increased in recent years as a result of one of the Australian Government Asylum Processing Centre that is located approximately 20 kms to the south at Lombrum Naval Base.

FIGURE 2: GENERAL LAYOUT PLAN OF THE MOMOTE AIRPORT

6 FIGURE 3: AERIAL VIEW OF THE EXISTING MOMOTE AIRPORT WITH modification

20. All proposed activity such as the new terminal, runway extension and improved pavement and associated works are all on the National Airports Corporation land. Activities under Momote Airport upgrade and rehabilitation will include the following;

� Strengthening existing Runway, taxiway and apron; � Extending runway by 190m on SW end to give 2000m overall length including new turning node; � Construction of a 90 metre runway end safety zone (RESA) at both ends of the runway; � Widening of the existing flight strip to 150 metres; � Relocate existing Precision Approach Path Indicator (PAPI) lighting system at both ends including flight testing and commissioning; � Construct new terminal building on NW side of runway � Construct 3 reinforced concrete pad on F 100 aircraft parking bays; � Apply pavement and line markings; � Construct new Airport Market, fenced with toilet, car park and security lightings; � Provision of bore water and sewerage supply system � A full listing of activities has been stated in Table 1.

21. The Momote Airport re-development would involve earthworks as follows:

 Estimated materials and earthworks quantities:  Cut to stockpile 100mm topsoil for future re-use - 152,000m2  Excavation earthworks - 100,000m3  Pavement construction material (crushed base course) - 62,000m3  Topsoil will be used and/or be re-used for topsoil and grassing  Excavated in-situ material will be used in landscaping and or flight strip widening and grading.  All materials will be stockpiled at a designated location on the airside.  Base-course material shall be crushed river gravel – brought in from nearby limestone sites.  10m3 trucks shall cart material from source and stockpile on- site.  Contractor’s Site shall be located at the Airside (Area approx. = 100m x 50m).

III. DESCRIPTION OF EXISTING ENVIRONMENT

FIGURE 4: MAP OF MANUS PROVINCE

A. Physical Environment

22. Land Resource and Utilization. Momote airport is located on Los Negro Island and surrounded with limited airport terminal operated by Air Niugini and surrounded by old bunker style buildings which are used by the National Airport Corporation and the National Weather Services for monitoring of weather and meteorology for over 50 years. Besides that, the natural surroundings consist of beach forest vegetation with the shoreline approximately 50 metres. There is no obstacle to the proposed extension and the runway end safety area (RESA). 23. Meteorology and Climate. All of PNG is tropical experiencing the northwest monsoon

from December to March and the southeast monsoon from May to October. Manus Island is two degrees from the equator and has with elevations from sea level up to 700 m ASL with

24. Momote airport temperatures range from 30 - 32° C during the day and 20 – 240C in the night. Humidity is high from 60 - 90% with occasional cloud covering from 20 to 55% of the sky. Annual average precipitation is high at 3,382mm with July and August being wetter months. There is no notable dry season on the island. Wind speed varies from about 20km/h and low about 5km/h.

25. In PNG the current El Niño/La Niña weather phenomenon brought about drought, high sea levels, extreme winds and extreme air temperatures which are already affect thousands of people in PNG. After the droughts, extreme rainfall events will bring about flooding and landslides and erosion will follow.

26. Topography, Geology and Soils. The geology and topography of Momote is predominantly coral limestone substrate with less than 15cm in places of top soil horizon. The airport is situated in a beach environment with typical beach forest vegetation and this is mention in section B. Most of the airport area is underlined by limey and silty soils consisting of entisols and inceptisols2 which are very young soils with little or no profile and moderately weathered soils. Grassland stretches right round the perimeter of the airport.

27. Mineral Resources. In Manus, limited copper and gold mineralization is known and exploration began in the 1980s and continues even up to 2012 and exploration tenements are current on the island of Manus for possible targets. There is no exploration in the vicinity of the airport.

28. Surface and Ground Water Resources. The Momote airport on Los Negros in Manus island is influenced by its own catchment and run off regimes where run offs drain through open unlined drains which run parallel to the airport runway. There is no noticeable erosion area and most of the rain water percolates through the limestone substrate and into ground water aquifer. No water quality was taken during the IEE investigation and three lagoons occur in close proximity ~ 50 metres to the east of the airport.

B. Biological Environment

29. Forest Resources. Surrounding the airport are strands of mangrove on the western side while beach vegetation consisting of Calophylum (Island cedar), Barrington asistica, Terminalia catappa, Hernandia nymphaeifolia and Panadanus tectorius appears on these sandy and limestone soils. None of these have been cut and the forest canopy is intact.

30. Mangrove and swamp forests provide direct benefits from utilization of the ecosystems (for example fishing and wood cutting); indirect benefits including coastal protection and the prevention of seawater infiltration; and biodiversity benefits such as fish breeding grounds and the provision of vital habitat. This is highly important on the Los Negros area, although none of the fish breeding is taking place in the immediate vicinity of the airport.

C. Social-Cultural Environment

31. Population and demography. PNG is the largest Pacific island country in total land area (some 460,000 square kilometers) and second in respect to ocean area (some 3 million sq km within its Exclusive Economic Zone [EEZ]). The average population density is about 12 people per sq km, making PNG the country with the lowest density in the Pacific region. Average density in this case is very misleading as there are great differences between provinces. Life expectancy in PNG

2 Bourke, R.M. and Harwood, T. (eds) (2009). Food and Agriculture in Papua New Guinea. ANU E Press, The Australian National University, Canberra.

is 62 years3 in 2013 and the adult literacy rate is approximately 58 % although on Manus Island, the rate is 85.8%4.

32. Lorengau, the Provincial Capital, had a population of 5,829 people (estimated in 2000) this figure would have increased with the building of businesses associated with the Australian Refugee Processing Centre. Public Motor Vehicles (PMV) and business houses associated with Refugee Processing Centre travel through and from Lorengau and Lombrum and PMV travel throughout Manus Island. Lorengau had kayak competition in the past which hosts international visitors and is still a popular tourist destination.

33. Nearby villages to the Momote airport are Riuriu 300 metres to the northwest and Naringel, 6 km to the south west. Riuriu consists of hamlets while Naringel is a big village spread along the road for a kilometre.

34. Cultural and Historical Sites, Schools and Housing. There were no sites of cultural significance near the area of the proposed development (Momote Airport). It is possible that war remnants may be in the surround shrubs that will be removed when the new terminal is built. The PNG Defense Force will be notified in checking for unexplored ordinates (UXO) before clearing commences.

35. Health and Sanitation. The greatest health concern in PNG is Malaria occurring a quarter of Disability Adjusted Life Year (DALY) (NDOH 2010). This is followed by pneumonia, accidents and injury, chronic respiratory disease and maternal death. AIDS/HIV has been a disease of possible epidemic proportions although the inaccurate data do not provide a total prevalent figure between the target age group of 25 -34 in males and 20 – 34 in females. Most of these high occurrences are on the mainland provinces of Papua New Guinea while the percentage is low on Manus Island (1.1) % recorded from 1997 to 20035.

IV. SCREENING ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

36. This section provides an assessment of the likely impacts associated with the pavement strengthening and associated works and ways to mitigate and/or manage them. The works will not result in any significant changes in environment beyond the existing airport boundaries. The assessment focuses on pre-construction, construction and operational stage impacts.

A. PRECONSTRUCTION

37. A number of activities will occur during the preconstruction phase where there is (i) the Establishment of Contractors Site and Facilities, (ii) Constructions Workers Accommodation and (iii) Stockpiling of Construction Material.

38. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities.

39. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public

3 http://countryeconomy.com/countries/papua-new-guinea Accessed 19 10 15. 4 NRI 2010, NRI District and Provincial Profile, Port Moresby. 5 See footnote 1.

Relations Officer is tasked to ensure that these do not occur.

1. Establishment of Contractors Site and Facilities

2. Construction Workers Accommodation

42. Establishment of contractors’ camp site will also comply with mitigation measures of waste management. Otherwise, contractor will rent a small compound for the skilled staff (10-15 persons) recruited for the construction works such as the Pavements Supervisor and Foreman, Mechanical Supervisor and Plant Operations Supervisor, etc. All other skilled and unskilled personnel which are estimated at 30- 40 persons shall be sourced locally and would not require housing in campsite.

3. Stockpiling of Construction Materials

43. The development works (i.e. pavement strengthening, flight strip widening, construction of shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and laying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the contractor’s environmental management plan (CEMP) with cleanup initiatives undertaken as required. Mitigation measures include:

 Transportation of materials to be limited to short periods to minimize traffic disturbance;

 Transportation to be only during the dry days when unsealed roads are strong and also to lessen impacts on nearby residences, run-off and soil loss;  Water trucks to be on standby to water-down dust generated from unsealed roads during transportation of materials.  All stockpiled materials to be adequately contained in a bund type of structure to minimize run-off and covered to minimize dust; and  Locate all stockpiled in controlled areas away from water bodies including nearby residential areas.

B. CONSTRUCTION

44. The Constructions phase has a number of activities or induced activities such as (i) Clearing and Grubbing, (ii) Pavement Construction, (iii) Building Construction, (IV) Storage and Handling of Fuel, Oil and Other Chemicals, (V) Health and Safety, (VI) Social Impacts, (Vii) Noise impacts and Air Quality and (VIII) Traffic Impacts.

45. All these activities will be confined to the construction area and physical and biological impacts will occur within the shrubs and trees that will be cleared for the new terminal and market buildings. There is the possibility of fuel, oil and other chemicals that will into the water ways although there is no noticeable water way in the vicinity of the construction area. The limestone substrate allows for runoff to permeate through.

46. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the Environmental Management Plan.

1. Construction Activity

47. Clearing and Grubbing. All grubbing of topsoil, clearing of grass areas and trees/shrubs, old fences and culvert materials clearance will require stockpiling in controlled areas during construction. All topsoil, grass and culvert clearance will be cleared and stacked to edges of the fenced area to allow for re-vegetation or taken to designated sites for reuse. Exposure of soil can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation and management measures include:

48. Pavement Construction. Excavation and disposal of the existing pavement can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. All construction spoils including solid and coal tar wastes and empty containers from the work areas should be removed from site and transported to the public waste disposal area. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation measures include:

 Locate stockpiles in controlled areas;

 Sub-grade and sub-base material placed quickly after removal of topsoil;  Plan construction work during dry season; and cease work during rain  Removal of spoils and construction debris.  Disturbed areas re-vegetated immediately after earthworks completed and/or sealed;  Processing and stockpiling of bitumen and aggregate to be in designated area;  Materials to be stored in bounded area for duration of works;  Drainage controls applied during construction; and  Implement all measures for storage and handling of fuel, oil and chemicals.

49. Building Construction. Building construction such as airport terminal and NAC staff house will commence upon completion of the sub-ground service activities. Building construction shall occur in concurrence with runway pavement upgrading. Mitigation measures include:

2. Storage and Handling of Fuel, Oil and Other Chemicals

50. The use of equipment and plant during the works will require usage, storage and handling of fuel, oil and other materials. Subsurface water resources near the selected subproject road sections could be anticipated to be contaminated by fuel and chemical spills. The following mitigation measures are included in the EMP to reduce the levels of impact associated with such effects:

3. Health and Safety

51. During construction activities, work sites, traffic, and operation of equipment, plants and vehicles can pose health and safety risks for workers and the community. Health and safety codes of PNG and World Bank Group’s Environment, Health and Safety Guidelines (as per the SPS) will apply at all sub-project sites. Measures to mitigate risks include:

 Work shall only be undertaken during daylight hours;  The community will not be permitted to enter work sites or the contractor’s depots/yards;  Workers shall be provided with appropriate personal protective equipment (PPE) such as safety boots, helmets, gloves, protective clothes, dust mask, goggles, and ear protection at no cost to the workers;  Provision of potable water supply in work locations;  Establishment of safety measures as required by law and by good engineering practice and provision of first aid facilities. Adhere to relevant Industrial Safety, Health and Welfare Act or guidelines of GoPNG, International Finance Corporation and World Bank.

4. Social Impacts During Construction

52. The presence of a construction workforce can create social impacts such as risk of spread of communicable diseases (such as STIs and HIV) and create social disruption as a result of conflicts between workers from outside and local people. The workforce required for the pavement construction and associated works will be relatively small but wherever possible local people should be employed.

53. The contractor for Momote airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Momote return to their original place of residence to avoid impacts from informal migration.

5. Noise Impacts and Air Quality

54. Air and noise pollution may be created by earthmoving, operation of heavy equipment and plant, transportation of materials to and from the site, and general works in the dry season generating dust and exhaust fumes such as Carbon Monoxide.

55. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Momote airport is located in a busy area with noise coming from all moving vehicles in and out of town but away form away from sensitive receivers (schools and hospitals), although there are some residential areas adjacent on the Westside of the airport and the impacts can be reduced to negligible levels by:

6. Traffic Impacts

56. The need to transport materials to and from the site can cause traffic congestion if not managed properly. The contractor shall be required to prepare a traffic management plan as part of the EMP to demonstrate how construction traffic can be handled during the works in order to minimize impacts on transportation networks in the vicinity of the sites.

C. OPERATIONAL

57. At the completion of construction work, all materials will be removed or disposed of and the completed works will be in place. The only impact during the operational phase is the noise impacts which will be for the duration of approaching and landing aircrafts.

58. Operation Stage Issues. Aircraft noise emissions, whilst considered only a minor issue at present, can increase with increasing flight frequency in the future operation of the airport, and need to be proactively managed. The problem can mostly be ameliorated by the careful location of ground running, and by the times these activities are undertaken. Occupational and residential exposure to aircraft noise is expected to increase over time; however, the noise impacts will only be for very short duration during aircraft take-off and landing only. It is not a concern for the contractor at this stage.

59. Aircraft ground operating noise will require management negotiated agreements between airlines, NAC and the local communities on times, frequency and locations of operations. Noise from aircraft in flight requires addressing in the context of the EMP such as plants locate plant s away from aircrafts parking/approach area. NAC must prepare, regularly update and promulgate noise exposure forecasts in accordance with the ANZECC 1992 or Australian Noise Exposure Forecast. This shall be NACs operational matter.

60. NAC, airlines and other aviation operators will introduce, under the Civil Aviation Regulations, a formal Safety Management System. For all airports, this will address both temporary safety risks during construction, and ongoing safety risks during normal operations. This system will also address management of environmental impacts of accidents and safety management processes.

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

54. As required by the ADB Safeguard Policy Statement (SPS) 2009, discussions were held with representatives from the Manus Provincial Administration. In addition, discussions were with the neighboring Landowner Association to inform them on the proposed developments.

55. The Manus Provincial Administration (MPA) was aware of the development and was consulted from the initial design and consideration of the project. Hence the discussion again with the representative of MPA reiterated their support for the project as it would increase economic activity into the province. Since the land for the proposed development is on NAC land, not a disputing issue arose from the discussions. All the persons consulted were happy for the development. Some of the comments relevant to the proposed development are as follows:

 Poloka Holdings represents landowners surrounding the airport land (Annex B: Photo and wish to seek work and business opportunities in the project. It was stated at the meeting that the work will be given to a contractor and the landowners are to organize themselves with listing of skilled persons and the listing can be discussed with the winning contractor and participation would be through this arrangement. They also informed the team that labor for both construction and maintenance/operation stages are available in their community.  Construction of the new market was welcomed. Although islanders from Rambutyo Island and Low Island considered that they will have to carry their luggage a distance of 80 metres to get around to the new market and terminal on the NW side.

56. These concerns and other points of view have formed part of the basis of this IEE, supplemented as necessary by the consultants’ own observations. The participants of the Public Consultation were unanimous in their support for the proposed development and will not interpose any objections to its implementation.

57. Information Disclosure. In disclosing the environmental documents to the public, (i) NAC through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B- sensitive subprojects, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC-PIU will consult the public, particularly with project affected persons.

58. Disclosure of relevant environment safeguards documents will be in an appropriate form, manner, and language and at an accessible location to be understandable to the affected people and local stakeholders. During Tranche 1 & 2, NAC established arrangements with provinces for coordination with a Project Coordination and Monitoring Committee (PCMC) and/or through the office of the Provincial Administrator (PA). The same procedure will apply for Tranche 3 projects.

59. A PCMC is set up within respective provincial administrations and this committee will oversee all concerns and grievances from the local communities and affected parties. Some Provincial Administration prefers a committee to be established with the Provincial Administration through the Office of the PA. For MP, this is set up through the Provincial Administrator, supported by the Provincial Lands Officer, District and Local Level Government Officer and other resource and service departments such as Agriculture and Livestock and Customs. In the villages, councilors are the linkages between the Local Level Government and their Wards and they deliberate on issues. This forms part of the grievance redress mechanism (GRM) as explained in Section G.

60. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to affected persons and communities regarding the requirements for land acquisition & Resettlement (LAR) and GRM.

VI. GRIEVANCE REDRESS MECHANISM

61. A GRM was established for CADIP during Tranche 1 and Tranche 2. The GRM to be implemented for Tranche 3 will reflect the steps and procedures already established but modify them to account for lessons learned. The GRM is a procedure for addressing environmental and social/land issues and concerns that may arise. During the course of the project it is possible that people may have concerns with the project’s environmental performance or social/land issues including the implementation of the project. Issues may occur during construction and again during operation. Any grievances dealing with construction and again during operation will need to be addressed quickly and transparently, and without retribution to the affected persons.

62. As noted in the previous section, NAC has an arrangement with provincial administrations through which grievances can be addressed. While NAC may have safety officers and operational managers at the Tranche 3 airport projects, they cannot be given the full responsibility of having to address grievances. They can however, only note and report to Provincial Administrations as partners in the provinces and/or through (i) an airport working committee, or (ii) the Provincial Coordinating & Monitoring Committee (PCMC). The airport working committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant Intra- Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

63. Where there are affected people for any airport development work, a grievance redress mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

64. PNG Land Disputes Settlement Act establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process is established involving airport working committee/PCMC and appropriate community leaders and representatives. The NAC person on site such as a Safety Officer or the Operational Manager will be the first person to be contacted who will then liaise with airport working committee/PCMC to register, clarify and mediate potential issues.

65. The GRM will apply equally to the contractor who will be required to maintain a complaints registry recording complaints or issues raised and how they have been resolved. The registry will be subject to monitoring as part of Contractors’ Environmental Management Plan (CEMP) compliance checks.

66. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:

VII. ENVIRONMENTAL MANAGEMENT PLAN

67. Mitigation measures, environmental monitoring, and capacity development are required to minimize the environmental impacts in the design, construction and operational phases. The EMP provides the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate with the project’s impacts and risks). It will be necessary to update the EMP during the detailed engineering design phase. A condition of the proposed loan will be the adoption and enforcement of a CEMP to mitigate negative impacts associated with airport improvement activities. The EMP matrix developed to cover the expected impacts for the runway extension, pavement strengthening and associated works at Momote Airport is provided in Table 2.

A. Institutional Arrangements

68. The overall MFF program will be oversight by a steering committee. The executing agency of the MFF Program will be the NAC. The PIU will be responsible for daily management and implementation of the projects comprising Tranche 3.

69. The NAC, through the PIU, will be the main agency/entity responsible in coordinating the implementation of the Environmental Assessment and Review Framework (EARF). This will

include, but not be limited to;

70. NAC will submit the categorization environmental assessments, and monitoring reports to ADB for review in a timely manner. Table 3 provides the responsibilities and authorities of key organizations involved in the implementation of the EARF.

71. The PIU is staffed with the national Environmental Officer (EO) and will be supported by an International Environmental Specialist (IES). The IES will be part of the NAC during the Project with the primary tasks to: (i) strengthen the environmental management of the Project during detailed design, bidding process, contract process, construction, and implementation, (ii) provide induction training to contractors prior to preparation and submission of the CEMP for each subproject. Provide assistance to EO and PIU for review and clearance of the CEMPs; (iii) supervise/monitor compliance with the approved CEMP of each subproject; (iv) undertake the necessary institutional strengthening including on-the-job training for the EO of NAC-PIU by giving major tasks to the EO in all of these activities under IES supervision; (v) prepare reports on environmental safeguards activities as required; and (vi) update the EARF and supervise and guide the environmental assessment process for projects to be implemented in the Tranche 3 as part of the PFR.

72. The IES will be engaged intermittently for eight person-months during the Tranche 3 also in Tranche 4 period and will be assigned on an intermittent basis to undertake training and capacity building for environmental management in NAC and to guide the EO of PIU in preparing assessments, monitoring and reporting. The IES and EO will jointly be responsible for overall environmental management of Tranche 3.

B. Task of Implementing Agencies

72. NAC-PIU. Table 3 sets out the Institutions responsible for implementing Safeguards Requirements in CADIP Tranche 3. NAC being the Executing Agency (EA) has the primary role of ensuring the Safeguard Measures and Issues are adequately covered. The Environment Officer (EO) is the focal person in providing feedback to environmental and social issues raised during the construction and operational phase of the project. He will be assisted by the International Environmental Specialist on an intermittent basis. On the ground in Momote, NAC’s Safety Officer will oversee daily operations of activities and can notify the EO of serious environmental noncompliance and the EO will visit to remedy the complaint.

73. ADB. ADB through the Papua New Guinea Resident Mission will provide guidance as to the submission of periodic monitoring reports from NAC that would meet ADB’s standards and guidelines before these are uploaded onto ADB website.

74. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the monitoring and progress of the project as per loan covenant.

75. Contractor. The Contractor is to submit a Contractors Environmental Management Plan (CEMP) for approval by NAC and ADB on the mitigation measures that it will take in the implantation of the project. This CEMP will be approved and used in the submission of regular reports to NAC who will submit to ADB for perusal and approval.

76. CEPA. CEPA as the overseers of the Environmental Act 2000 will be updated on the submission of this IEE and its coherence with similar categories which is an Environmental Inception Report. This will be noted and assessed for compliance and under new fee arrangements the NAC may be liable for an assessment fee leading to a permit for the sub project.

Table 2: Design, Construction and Operational Environmental Management Plan MITIGATION INSTITUTIONAL MITIGATING MEASURES SIGNIFICANCE OF EFFECTS LOCATION POSSIBLE EFFECTS COSTS RESPONSIBILITY NOT SMALL MED MAJOR A. IMPACTS DUE TO AIRPORT LOCATION 1. Disruption of Surface

Water a. Changes in hydrological Airports and i) Impairment of aquatic ecology i) Dimension of drains X X NIL PIU/EO regimes surrounding areas ii) Drainage disrupted ii) Diversion of stream X NIL PIU/EO iii) Drinking water source iii) Use of grassed areas for runoff NIL PIU/EO b. Pollution as leaking Downstream from i) Impairment of aquatic ecology i) Location of stockpiles on paved areas X X NIL PIU/EO from construction areas ii) Drinking water source ii) Removal of stockpiles after construction NIL PIU stockpiles and spoils iii) Re-vegetation after construction NIL 2. Disruption of groundwater a. Changes in hydrological Airports and i) Impairment of yields X NIL PIU regimes surrounding areas b. Pollution by spoils Downstream from i) Impairment of drinking water X NIL PIU leachate construction areas 3. Changes in nearby land Surrounding areas I) Increase in vicinity of Airport X NAC/PIU values and nearby villages 4. Loss of aesthetics Vicinity of Airports i) Loss of aesthetic value of land i) Landscaping and re-vegetation X USD10,000 Contractor/PIU B. IMPACTS DUE TO DESIGN 1. Slope erosion Airport vicinities I) Installation of silt traps on all drains X Contractor/PIU i) Siltation of rivers affecting hydrology and water quality USD5,000

ii) Contractors to increase awareness of workers

POTENTIAL L OC ATI ON P OSS IBLE EFFE CTS MITIGATING MEASURES SIGNIFICANCE OF EFFECTS MITIGATION INSTITUTIONAL

IMPACTS COSTS RESPONSIBILIT NOT SMALL MED MAJOR Y 5. Slum creation Airport sites i) Slums forming in construction sites after i) Demolition of structures as part of X USD10,000 Contractors/PIU

Table 3: Institutional Responsibilities for Implementing Safeguards

Organization Implementation Responsibilities NAC –Project Implementation Prior to the submission of the Periodic Financing Request (PFR) for Unit (PIU) subsequent projects the NAC will: Environment Officer (EO) and  Prepare the environmental assessments (IEE), including an International Environmental Environmental Management Plan (EMP) for each subproject and Specialist (IES) submit to ADB and public disclosure.  Ensure that adequate public consultation has been undertaken with affected groups and local stakeholders, review the environmental assessments and submit the IEE documents as required, to ADB.  Submit the necessary environmental assessments to ADB in sufficient time to permit the necessary disclosure by ADB.  Undertake the necessary actions to ensure environmental compliance with the GoPNG’s and ADB’s requirements; NAC –Project Implementation Prior to the commencement of civil works, the NAC will: Unit (PIU)  Submit any of the environmental assessments required for Environment Officer (EO) and regulatory approval of the CEPA and obtain approval, e.g., International Environmental environmental clearance, environmental permits. Specialist (IES)  Ensure that all regulatory clearances for the subproject that are obtained from the relevant Government authorities are submitted promptly to ADB.  Ensure that the required mitigation measures during construction, the IEE and the EMP are included in the bidding document of the subproject and that all bidding contractors have access to the environmental assessments and EMP.  Ensure that the EMP and all required mitigation measures during construction, including conditions stipulated in the CEPA's clearance or environmental permit, are included in all the contracts signed by the Contractor(s) with requirements to update the EMP in response to any unexpected impacts and that all selected contractors have agreed the to implement the full suite of environmental mitigation measures prescribed in the EMP.  Receive environmental safeguard clearance on subproject(s).  Provide EMP induction training to contractors;  Review and clear the contractors CEMP for each subproject

NAC –Project Implementation During the implementation of civil works, the NAC will: Unit (PIU)  Ensure that a contractor’s environmental management plan (CEMP) Environment Officer (EO) and including all proposed mitigation measures and monitoring programs International Environmental and relevant provisions of the environmental assessments is Specialist (IES) updated as required, and is properly implemented by the contractors.  Monitor the implementation of CEMP and present the monitoring reports to ADB.  In case unpredicted environmental impacts occur during project implementation, inform ADB, review the CEMP with the contractor, and implement alternative environmental mitigation program.  In case a subproject changes in scope, inform ADB and reconfirm the environmental classification, determine whether a supplementary IEE or EIA study is required, and carry out the study including the requirement for information disclosure and public consultation;  Submit the requisite reports on progress with social and environmental compliance and implementing the CEMP as required by the CEPA and ADB.  Ensure that ADB be given access to undertake environmental due diligence for all subprojects. However, the NAC will have the main responsibility for undertaking environmental due diligence and monitoring of all the subprojects. The due diligence report as well as monitoring reports on CEMP implementation, as required, will be systematically prepared and be made available to the public, if requested

ADB During the implementation of Tranche 3, ADB will:  Regular reviews and approval of subproject IEEs and EIAs.  Provide technical guidance to the NAC as needed.  Reviewing regular monitoring reports and officially disclosing the summary environmental assessments for selected subprojects (Category A and B sensitive) on the ADB website.  Review environmental assessment reports as a basis for subproject approvals. Disclose assessments of category A subprojects, and category “B sensitive” subprojects for 120 days via ADB websites (as required) before a PFR is submitted to ADB.  Monitor the EMP implementation, as required, and conduct due diligence as part of MFF reviews.  Provide assistance to NAC, if required, in carrying out its responsibilities and for building capacity for safeguard compliance.  Ensure that the NAC will conduct the required consultations with project affected groups and local NGOs in PNG, and that the NAC as project sponsor disclose relevant environment information on the project’s environmental issues in an appropriate form, manner, and language(s) accessible to those being consulted. Such information disclosure with affected people will be guided by the Public Communication Policy (2011). Contractors  Based on site specific conditions, prepare Contractor’s Environmental Management Plan (CEMP) for each site  Implement and report on CEMP as part of pavement strengthening and rehabilitation activities  Prepare monthly CEMP report as part of progress reports and submit

to PIU. The report will also include the Monthly Accident Report and measures undertaken to address any non-compliance issues identified by the PIU (or CEPA). CEPA  Administration and enforcement of the Environment Act 2000 and its regulations as it pertains to the project  Identify whether EPs (with or without conditions) required for any identified site  Review IEE and other documentation required  Administer Contractor Waste Disposal permit applications and performance C. Monitoring and Reporting 77. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

78. Monitoring during construction will be the responsibility of the contractor and NAC (carried out by EO) and IES within the PIU. Monitoring will relate to compliance with construction contracts (including EMP measures and provisions), the state and health of the nearby environmental resources, and the effectiveness of mitigation measures and complaints. Monthly progress reporting will include a summary of this monitoring submitted to the NAC on a regular basis (at least quarterly) and to ADB semi-annually.

79. The estimated cost for the monitoring plan is $34,000. The costs of the environmental mitigation plan will be part of the construction costs (Annex A).

80. Table 4 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 5 states the roles and responsibilities for environmental monitoring. Table 6 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipment to be procured by the contractor or through specialised firms. Table 7 shows the summary of the environmental management costs including implementation and monitoring costs.

81. The PIU will be responsible for reporting progress of Tranche 3 to NAC and ADB. Monitoring of each contractor will cover monthly progress and CEMP implementation and compliance (including general good practice). A section on safeguards activities and compliance with the CEMP for each subproject will also be included in quarterly progress reports (QPR) prepared for NAC and ADB.

82. The reporting will be as per the following schedule:

 A report at the end of detailed design incorporating a section prepared by the IES and EO on how detailed design has reflected environmental impact avoidance or mitigation and climate resilience;  A monthly report prepared during construction by each contractor reported on progress and CEMP activities, issues and corrective actions,  A report will be prepared every 3 months (the QPR) prepared by the PIU. The QPR will include a section on safeguards activities and CEMP compliance for each subproject and will summarize the monthly reports submitted by the contractors; and  A semi-annual safeguards monitoring report (prepared every 6 months) will be prepared by the IES and EO and submitted to ADB as a compliance requirement in SPS.

83. The Project completion report will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the EARF and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

Table 4. Environmental Monitoring Plan

PARAQMETRES TO BE PHASE/IMPACT MITIGATING MEASURE MONITORED STANDARDS LOCATIONS1 DURATION FREQUENCY IMPLEMENT SUPERVISE PRE-CONSTRUCTION PHASE 1. Erosion, i) Drainage design Capacity sufficient for 80% of 30 Momote Airport Detailed Once at Design PIU siltation and ii) Use of gently sloping grass i) Drains are of sufficient quantity year maximum Design Detailed Contractor and size to accommodate flooding of surfaces Phase Design Phase waterways iii) Silt traps in all drains additional volume ii) Silt traps are of sufficient quantity and size to protect surrounding areas from siltation CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

1 Specific sampling stations will be defined during the conduct of the baseline survey before commencement of works

Table 5: Roles and Responsibilities for Environmental Monitoring

VIII. CONCLUSION AND RECOMMENDATION

84. The project will cause a short-term environmental disturbances associated with construction activities that will be mitigated by operational procedures during construction, within the framework of a contractor’s approved EMP in line with the EMP stated herein (Table 4) to be supervised by the PIU.

85. Mitigation measures to prevent or minimize unnecessary impacts are also provided. Potential impacts and risks during construction were also characterized as short term and unnecessary impacts will be minimized through good construction management and housekeeping practices. An EMP containing impact mitigation and monitoring plan to mitigate the potential impacts has been prepared to ensure that the project will be implemented in an environmentally sound and sustainable manner.

86. Positive impacts to the local economy will accrue through new income earning opportunities for locals generated by demand for labour, women participation to semi- skilled during construction; and airport staffing and management arrangements, and through the creation of new non-aeronautical business opportunities in the terminal facilities and surrounding areas.

87. This IEE concludes that in the context of appropriate mitigating strategies described above, and the positive environmental benefits to flow from the Project, environmental impacts can be managed within acceptable levels. There are no significant environmental impacts needing further detailed study or EIA. All potential and associated impacts can be addressed through implementation of the mitigation measures as proposed in the IEE. Provisions will be made in the Project Budget to cover the environmental mitigation and monitoring costs.

ANNEX A: ENVIRONMENTAL MONITORING PLAN

Table 6: Matrix of EMP for Momote Airport

EQUIPMENT COST OF PLANNED ENVIRONMENTAL INDICATOR REQUIREMENTS MONITORING MONITORING FREQUENCY AREA OF PARAMETER PARAMETER AND (MONTHLY MONITORING COST (US$) COST IN US$)

Monthly During Construction Sulfur dioxide Period/Semi-Annual During Operation Period 1 Unit - PM10 Portable US500.00 Nitrogen US$2500 (includes dioxide Monthly During 1 Unit - 3 Gas transportation Construction Analyzer and lab Period/Semi-Annual Portable analysis) During US$2000.00 Operation Period Air and 2 stations Noise Monthly During Total Construction Suspended Period/Semi-Annual Particulate During Operation Period 1 unit – Noise Monthly During Metre Construction US$500.00 US$400.00 Noise Period/Semi-Annual ((includes During transportation Operation Period and lab analysis) Temperature pH Biological Oxygen Demand (BOD) Dissolved Monthly During US600.00 Oxygen (DO) 1 Unit Portable Construction (includes Water Oil and Grease Water Period/Semi-Annual 1 Station transportation Quality Total Coliform Quality Analyzer During and lab Count US$2000.00 Operation Period analysis) Total Suspended Sediments (TSS) Total Dissolved Solids (TDS)

Table 7: Summary of Costs for the Proposed Works

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000

Impacts During Construction 98,000.00 Sub-Total 128,000.00 MONTHLY MONITORING 2 PARAMETER EQUIPMENT (US$) COST (US$) (US$) Air and Noise One set of equipment for EO 900.00 21,200.00

Water Quality One set of equipment for EO 600.00 12,800.00

SUB-TOTAL 1,500.00 34,000.00

GRAND TOTAL 162,000.00

ANNEX B: PHOTOGRAPHS

Photo 1: SE END OF THE RUNWAY WHERE THE 90 METRE RESA WILL BE

Photo 2: VIEW FROM NW END TOWARDS THE TERMINAL IN THE B/GROUND

The foreground area is where the new terminal building will be built.

Photo 3: ROAD ON WESTERN SIDE OF AIRPORT SHOWING VEGETATION TYPES

Photo 4: CONSULTATION WITH airprot sorrounding community leaders AT MOMOTE

7. Mt. Hagen Airport Initial Environment Examination.

EXECUTIVE SUMMARY

III. The main findings of this IEE indicate that the impacts that will arise from Mt Hagen Airport Pavement Strengthening & Associated Works will be minimal and generally insignificant as the works only involve rehabilitation and improving the aircraft pavement and associated works within the existing airport boundary for duration of 18 months. The project is classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

IV. The potential environmental impacts associated with the project particularly occur during the construction and operation phases which will typically involve:

(ii) Pollution. Problems of pollution related to the disposal of sewage, waste fuel& petrochemical products, salvage materials, oils spillage and leakage, solid wastes generated during construction (from worker camps) and operations could occur. Temporary site contamination, dust and noise generation associated with construction, and pollution associated with firefighting drills may cause environmental impacts.

V. Adherence to best engineering practices during rehabilitation/reconstruction and implementation of the environmental management plan will avoid or adequately mitigate all of the rehabilitation/ reconstruction-related impacts.

VI. A Grievance Redress Mechanism set up in Tranche 1 and 2 will be used in Tranche 3 and the Provincial Administration is fully aware of its role. Public support during consultation for the project was unanimous and the community wanted the project to commence immediately as they seek possible job opportunities with contractors. Already the new terminal is boosting travel and the pavement works will enhance this further for the travelling public.

VII. The upgrading of the Mt Hagen Airport is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the F100 aircraft, or similar and it is also a linkage for travel to Cairns in Australia

I. INTRODUCTION

2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the subprojects under Tranche 3 – Pavement Strengthening and Associated Works at the Mt Hagen Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Sourcebook (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment.

3. The main purpose of this IEE is to identify impacts associated with the Pavement Strengthening and Associated Works at the Mt Hagen Airport in the Western Highlands Province (Figure 1) and mitigations required to address them.

A. Overview

4. The proposed investment program will entail the upgrading and rehabilitation of the following existing airports (Tranche 3): Madang; Mendi; Kavieng; Vanimo, Kerema, Kiunga, Tari, Momote, Buka, Gurney, Wewak and Mt Hagen. The upgrading and improvement of these major domestic airports is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the runway, taxiway and apron capability to accept unrestricted operations by Fokker 100, Dash 8 and QF 400 aircrafts.

B. Environmental Regulatory Compliance

5. The environmental regulations of GoPNG are derived from the Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects that need environmental assessment as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Projects that likely to have significant adverse environmental impact (Level 2 and Level 3) are required to obtain an Environmental Permit (EP) from the Environment and Protection Authority (CEPA) following environmental assessment. The upgrading and rehabilitation of existing airports is not listed as Level 2 and Level 3 of the “Prescribed Activities”. However certain associated project activities commonly associated with upgrading and improvement works such as earthworks, surfacing, discharge of waste water, establishment of borrow pits, sourcing and extraction of aggregate materials from surface water courses are Level 2 activities that may require an EP depending on the duration and scale of those activities. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the subprojects to CEPA so that CEPA can decide whether any specific environmental requirements will be needed for the proposed airport upgrading and rehabilitation. Considering the government

1Project 1 rehabilitation work was under the Civil Aviation Authority (CAA) and was the predecessor for NAC.

environmental requirements and ADB Environmental Safeguard Sourcebook (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

Figure 1: LOCATION OF PAPUA NEW GUINEA AND MT HAGEN AIRPORT

C. Environmental Category of the Subproject

7. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Sourcebook (2012) Tranche 3 projects are classified as Environmental Category B that requires IEE.

D. Objectives and Scope of IEE

8. The objectives of this IEE were to:

9. This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

II. DESCRIPTION OF THE PROJECT

11. The current state of the airports in PNG is inadequate to meet the increasing demand for air travel both for tourism and commercial purposes. This, in essence, presents itself as an obstacle to further economic growth and development of major regional centres in PNG and the country as a whole. The identified major domestic airports need to be upgraded and improved to meet the international standards and requirements and make it safety compliant as prescribed by the International Civil Aviation Organization (ICAO).

A. DESCRIPTION OF THE SUBPROJECT

1. Proposed Project Works

13. The Proposal is to upgrade the Mt Hagen Airport to make it safety compliant as one of the highlands regional airport that could accommodate and be suitable for the operation of Fokker 100 aircraft or similar, and for the airport to expand its role as the major domestic hub for Western

Highlands Province. Major upgrading works will be on the airside portion of the facility and minor works on the landside. All works will be within the existing aerodrome land boundary. No additional land area will be required outside of aerodrome boundary (Figure 2). The upgrading works will commence after all detail design, scope of works and approvals have been obtained; and the contractor selected to carry out the works.

14. The construction period of the proposed activities will be 18 months. The upgrading works will be within the existing land area of the airport together with the fencing installation to be re- aligned to follow the airport boundary. In addition, the wear and tear of the runway pavement is self-explanatory for this importance scope of works.

15. The development works (Table 1), which will all be on the airside portion of the facility and confined to the limits of the existing pavements (main runway, taxiways and apron) area.

16. Mt Hagen Airport upgrading will involve the following estimated materials and earthworks quantities:

 Cut to stockpile 100 millimetres (mm) topsoil for future - 15, 000 cubic metres (m3)  Spoil (excavation material) - 30,000 m3  Select Fill Material - 80,000 m3  Crushed River Gravel Sub Base - 10,000 m3  26.5 mm Base course - 45,000 m3  Topsoil will be used and/or be re-used for topsoil and grassing  Excavated in-situ material will be used in landscaping and/or flight strip widening and grading.  All materials will be stockpiled at a designated location on the airside.  Base-course material shall be crushed river gravel – brought in potentially from Mt Hagen River.  10 m3 trucks shall cart material from source and stockpile on site.  Contractor’s Site shall be located at the Airside (Area approx. = 100 m x 50 m).

Table 1: Proposed Works for Mt Hagen Airport

A. Aircraft Pavements Strengthening and Associated Works

. Repairs to existing aircraft pavement (Rwy, Twy& Apron); . Strengthen existing Runway (2100m X 30m) including turning nodes at each end; . Strengthen existing Apron, . Strengthen existing 3 x Stub Taxiways and 1 x Parallel Taxiway; . Construct 3.0m wide full strength Shoulders to existing Runway both sides and to Turning Nodes both ends; . Reconstruct RESAs each end to match raised Runway and Stop way surfaces; . Construct 5.0m wide shoulders to Apron, Parallel Taxiway and 3No. Stub Taxiways; . Construct Ramp at intersection of main Runway and Cross-wind Runway; . Bituminous surfacing to new and strengthened pavements. Prime and 3 x coat (10mm/7mm and sand) hot bitumen seal; . Widen Runway Strip to 150m wide; . Supply and place 100mm topsoil including grassing of all flank areas; . Construct 2 x concrete wheel pads for F100 aircraft parking bays; . Construct 3 x concrete parking pads (24m X 16m x 0.3m) for1 x B737and 2 x F100 aircraft parking; . Provision of an isolated parking bay

. Supply and apply aircraft fuel resistant membrane on 5 x aircraft parking bays; . Supply and apply temporary and permanent aircraft pavement line markings; and . Provide improvements to airfield drainage systems including construction of OUD either side of widened runway strip and reconstruction of pipe culverts and headwalls;

B. Landside Works, Airfield Lighting and Electrical Works, and Associated Works

. Adjust levels to PAPI both ends including flight testing and commissioning; . Provision of Apron Flood Lighting . Provision of a new over flow parking area for 20 parking spaces, . Design and Construct New Air Traffic Control Tower . Design and Construct New Two bay RFF Fire Station & Training Ground, . Construction of a 4 Bay workshop, . Supply and delivery of potable/mobile flood light . Construct 1 x lockable 4 bay Shed for Tractor, Slasher, Trailer and Hay Bailer; . Supply and deliver to site 1 x M95Kubouta4WD 80HP Diesel Tractor with Canopy and 1 x Heavy Duty 2.40m dia Superior LX240 Slasher complete with connections to link to Tractor including Trailer and Hay Bailer. . Construct 1 x 3 Bedroom Timber Framed Standard H65 House on high post with storeroom underneath in NAC compound. . Construct 4 x 3 Bedroom Timber Framed Standard L40/96 House on high post in NAC compound. . Supply and Deliver to Site 160No. Cone Markers (80 White, 40 Yellow & 40 Red & White). . Supply and Deliver to Site 4 x Unserviceability Crosses painted white. . Supply, Deliver and Install 2x New Wind Indicators . Construct 1 x Signal Circle, All NAC operational buildings shall be constructed at the Northern side of the Aerodrome. This includes the workshop, Tractor shed and the Contractor’s depot.

2. Project Requirements

17. Most of the road links around Mt Hagen airport are sealed. Constant power supply comes from the main Yonki Dam power supply. There are usually occasional blackouts so the project will install a diesel power generator at the airport so that continuous power supply is available for the airport facilities.

18. Water supply into the airport hydrants and terminal facilities including the airline operators (heavy lift, Air Niugini) comes from the township main water supply. The same water supply provides water for the town residents and business houses; government offices/buildings. The new terminal has an improved sanitation system and large capacity water storage tanks supplement water when there is an increase in passenger numbers and the need for sanitation services.

19. Material for the pavement strengthening work including select fill material, crushed river gravel sub base, cement treated base and pavement construction material will most likely be sourced from the Kuman River and other quarry sites in the vicinity of Mt Hagen. The contractor has not been appointed as yet and may source some other fill material from other quarries and borrow pits but details are not known at this stage.

20. As for spoils which will include worn out bitumen surface, the intention is for the contractor to have it levelled off along the edge of the aerodrome and then have grassing placed on it to assist regrowth and stabilization. Also these could be taken away to areas where the community may need to level off a depression around their residence.

FIGURE 2: AERIAL VIEW OF MT HAGEN AIRPORT

III. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA)

A. Physical Environment

21. Meteorology & Climate. The climate of the Highlands of PNG is alpine/sub-tropical. Temperatures vary from about 23 C (day) to 18 C (night). This climate persists throughout the year. The northwest and southeast trade winds continue throughout the year. Based on 1998-2000 records, there had been changes in the annual rainfall especially in Western areas (2880mm/year) and the central (over 3,000mm/year) of the Highlands Region. This climate was influenced strongly by severe El Nino events.

22. The World Bank reported that rates of change are likely to increase in the future, in terms of both average and extreme conditions. In general, the future climate is expected to become more El- Niño like, resulting in more rain in the equatorial Pacific. The project area is expected to receive up to 10 percent more rainfall for a 1°C of global warming (by 2100, the average temperatures are expected to rise by between 1.6–3.4°C).

23. In PNG current weather patterns may indicate the types of impacts that could be expected to occur as a result of major climatic change (global warming). One example was the serious drought that affected much of the country in 1997-1998, which was linked to the large-scale El Niño/La Niña weather phenomenon. Other types of natural disasters including extreme rainfall events, drought, high sea levels, extreme winds and extreme air temperatures already affect thousands of people in PNG, and may further intensify or become more frequent with global warming.

24. Geography and Topography. The Highlands of PNG are biophysically diverse. The country is tectonically active being between areas in the world. PNG lies in the collision zone between the Pacific and the Australian tectonic plates and is associated with earthquakes and volcanic activities. Overall, seismic activity in PNG is mostly evidenced by landslides and subsidence. There is no record of recent volcanic activity in the Highlands or earthquakes. Heavy rainfall and smaller ground tremors are responsible for deteriorated sections of national and rural roads. The subproject lies on volcanic material dominated by volcanic breccia, agglomerate and tuff of varying age and structure. In between these volcanic derived ridges and slopes are recently deposited gravels and silts in narrow river valleys. However, soil type should have very little bearing on the implementation of the projects.

25. Mineral Resources. Mineral resources exploration has occurred in the fringes of the WHP for a long time now but none of the prospects have been developed into a mine. None of these areas occur in the vicinity of the Mt Hagen airport.

26. Water Resource. River flows in the Highlands area are the highest from December to April. Most of the streams and creeks discharge all year around carrying high sediment loads, depositing large quantities of gravels and sands in the lower reaches. During the wet season, bridges and culverts are regularly inundated, cutting off roads and villages.

27. No notable stream runs in the vicinity of the airport area although runoffs do follow unlined drains that run parallel to the runway length.

B. Biological Environment

28. Subsistence agriculture dominates the Highlands’ regional economy and Mt Hagen and surrounding areas have all been cleared and cultivated. In the vicinity of the airport there are gardens and residential house with remnants of Casuarina equisetifolia (yar) trees and hoop pine trees. There is no endemic or endangered tree species surrounding the immediate airport area.

29. There are no forests used for large timber extraction in any of the areas which are directly within the proposed development area. The nearby forests provide timber, vines and bamboo for the local population to construct dwellings and for craft work. Pandanus palms in the higher areas yield crops of nuts each year. Coffee plantations are present near the periphery of the existing airport.

FIGURE 3: GENERAL LAYOUT OF MT HAGEN AIRPORT

C. Socio – Economic Environment

30. Population. The population of Mount Hagen was 46,250 in 2000. It is having a high population increase of 2.5% per annum hence there is a lot of demand on resources such as the education, health and government services and land use. A similar situation exists for the other provinces.

31. Around the airport in the 1 kilometre radius are the Pultimp village and other hamlets, residential and hotels, guesthouses and trucking container facilities.

32. Cultural and Historical Sites, Schools and Housing. There were no sites of cultural significance found near the area of the proposed development (Mt. Hagen Airport). There are chapels and churches nearby in some villages.

33. Health and Sanitation. The greatest health concern in PNG is HIV/AIDS with current infection standing at 50,000 individuals with a potential infection rate of 30% of the total population within 10 years. The provinces with the highest occurrence of HIV/AIDS are Western Highlands, West Sepik, Western, and Morobe Provinces and the National Capital District. These are areas where population concentration and pressures on the natural environment are highest. Vulnerable groups include women, sex workers, youth, the poor, and workers in industrial enclaves (mining camps, factories etc).

34. In the village of Pultimp which is adjacent to the existing Mt. Hagen Airport (Kakamuga Airport), 4 reportedly have perished from HIV and an estimated 140 villagers are known to be infected. (Data from villagers provided during the Consultations)

IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

35. This section provides an assessment of the likely impacts associated with the pavement strengthening and associated works and ways to mitigate and/or manage them. The works will not result in any significant changes in environment beyond the existing airport boundaries. The assessment focuses on pre-construction, construction and operational stage impacts.

A. PRECONSTRUCTION

36. A number of activities will occur during the preconstruction phase where there is (i) the Establishment of Contractors Site and Facilities, (ii) Constructions Workers Accommodation and (iii) Stockpiling of Construction Material.

37. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities . 38. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public Relations Officer is tasked to ensure that these do not occur.

1. Establishment of Contractors Site and Facilities

39. The contractor’s work site establishment (inclusive of stockpiling) will be located outside of the airside and require an area of approximately 100 m x 50 m. Inappropriate disposal of wastewater and effluent from rest room and solid waste can cause pollution. Pollution anticipated to be generated during construction is expected to include day-to-day production of solid waste, domestic sewage, and oil and chemical wastes. The storage and handling of petro-chemicals will require careful management; an important part of the environmental management plan (EMP) will be requirement for an emergency response plan for spills and accidents.

40. The contractor’s depot area and yard/offices will be provided with sanitary disposal facilities that will address the generation of domestic wastewater and proper solid waste management. Silt traps shall be established around areas identified for clearing and drainage works to prevent siltation of any surrounding waters. During the pre-construction and construction period an adequate supply of an appropriate quality of water will be provided for both domestic (for the contractor’s depot area) and other purposes (construction activities i.e. concrete mixing, cleanup of machineries and washing of trucks).

41. Mitigation measures include:

2. Construction Workers Accommodation

3. Stockpiling of Construction Material

43. The development works (i.e. pavement strengthening, flight strip widening, construction of shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and laying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the contractor’s environmental management plan (CEMP) with clean-up initiatives undertaken as required. Mitigation measures include:

 Water trucks to be on standby to water-down dust generated from unsealed roads during transportation of materials.  All stockpiled materials to be adequately contained in a bund type of structure to minimize run-off and covered to minimize dust; and  Locate all stockpiled in controlled areas away from water bodies including nearby residential areas.

B. CONSTRUCTION

46. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the Environmental Management Plan.

1. Construction Activity

 Locate stockpiles in controlled areas;  Sub-grade and sub-base material placed quickly after removal of topsoil;  Plan construction work during dry season; and cease work during rain

 Removal of spoils and construction debris.  Disturbed areas re-vegetated immediately after earthworks completed and/or sealed;  Processing and stockpiling of bitumen and aggregate to be in designated area;  Materials to be stored in bounded area for duration of works;  Drainage controls applied during construction; and  Implement all measures for storage and handling of fuel, oil and chemicals.

2. Storage and Handling of Fuel, Oil and Other Chemicals

3. Health and Safety

 The community will not be permitted to enter work sites or the contractor’s depots/yards;  Workers shall be provided with appropriate personal protective equipment (PPE) such as safety boots, helmets, gloves, protective clothes, dust mask, goggles, and ear protection at no cost to the workers;  Provision of potable water supply in work locations;  Establishment of safety measures as required by law and by good engineering practice and provision of first aid facilities.  Adhere to relevant Industrial Safety, Health and Welfare Act or guidelines of GoPNG, International Finance Corporation and World Bank.

4. Social Impacts during Construction

53. The contractor for Mt Hagen airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Mt Hagen return to their original place of residence to avoid impacts from informal migration.

5. Noise Impacts and Air Quality

55. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Mt Hagen airport is located in a busy area with noise coming from all moving vehicles in and out of town but away form away from sensitive receivers (schools and hospitals), although there are some residential areas adjacent on the Westside of the airport and the impacts can be reduced to negligible levels by:

6. Traffic Impacts

C. OPERATIONAL

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Introduction

61. The SPS and ADB’s Public Communications Policy (2011) require that relevant persons’, communities and stakeholders are consulted as part of project preparation and implementation so as to disclose appropriate project information publically. Consultations were undertaken as part of the environmental assessment and poverty and social assessment processes as well as for preparation of social safeguard documentation such as due diligence reports and resettlement plans. Consultations for Mt Hagen airport was conducted on Tuesday 11thof August2015 with the Western Highlands Provincial Administrator (PA) and his management team at the PA’s office. Table 2 displays the details for the consultations and number of participants (by male and female) for the meetings. The main issues raised and response to those issues or concerns follows this section.

Table 2: Consultations for Mt Hagen Airport Date Time Names Position 11/8/2015 2PM Joseph Neng Provincial Administrator, WHPG Paul Wak Executive Officer to the PA, WHPG

62. There are no village communities around the immediate proximity of the airport. Only settlements and residential areas. Hence, consultations were not considered beyond the airport perimeter area. There is also the possibility of potential issues such as locals’ intention to subcontract in the project, arising from individuals and communities outside of the airport area is consulted. The act of consultation will raise expectation and demands simply because it does not focus on certain group as in a village community. Similar arrangement will be carried out in the other provinces.

B. Issues Raised and Responses

63. All the consultation was fruitful with unanimous support from all stakeholders consulted. Some of the issues raised relevant to the proposed development are as follows;

 Mt Hagen airport is declared aerodrome land. NAC is the custodian of the land for aerodrome purpose.  All land matters concerning the airport upgrading project has been sorted out and there is no current outstanding issue. Clams of landownership shall be addressed through the Office of the Provincial Administrator whilst awaiting the formation of the Grievances Redress Mechanism established through a Working Committee with WHPA.  Grievances Redress Mechanism (GMR) for the Project will be represented through a working committee to be established within the Western Highlands Provincial Government & Administration.  The Provincial Government & Administration support is maintained for the project implementation.

C. Information Disclosure

64. In disclosing the environmental documents to the public, (i) NAC through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B-sensitive subprojects, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC-PIU will consult the public, particularly with project affected persons.

65. Disclosure of relevant environment safeguards documents will be in an appropriate form, manner, and language and at an accessible location to be understandable to the affected people and local stakeholders. During Tranche 1& 2, NAC established arrangements with provinces for coordination with a Project Coordination and Monitoring Committee (PCMC) and/or through the office of the Provincial Administrator (PA). Same procedure will apply for Tranche 3 projects.

66. A PCMC is set up within respective provincial administrations and this committee will oversee all concerns and grievances from the local communities and affected parties. Some Provincial Administration prefers a committee to be established with the Provincial Administration through the Office of the PA. For WHP, this is set up through the Provincial Administrator, supported by the Provincial Lands Officer, District and Local Level Government Officer and other resource and service departments such as Agriculture and Livestock and Customs. In the villages, councillors are the linkages between the Local Level Government and their Wards and they deliberate on issues. This forms part of the grievance redress mechanism (GRM) as explained in Section G.

67. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to affected persons and communities regarding the requirements for land acquisition& Resettlement (LAR) and GRM.

VI. GRIEVANCE REDRESS MECHANISM

68. A GRM was established for CADIP during Tranche 1 and Tranche 2. The GRM to be

implemented for Tranche 3 will reflect the steps and procedures already established but modify them to account for lessons learned. The GRM is a procedure for addressing environmental and social/land issues and concerns that may arise. During the course of the project it is possible that people may have concerns with the project’s environmental performance or social/land issues including the implementation of the project. Issues may occur during construction and again during operation. Any grievances dealing with construction and again during operation will need to be addressed quickly and transparently, and without retribution to the affected persons.

69. As noted in the previous section, NAC has an arrangement with provincial administrations through which grievances can be addressed. While NAC may have safety officers and operational managers at the Tranche 3 airport projects, they cannot be given the full responsibility of having to address grievances. They can however, only note and report to Provincial Administrations as partners in the provinces and/or through (i) an airport working committee, or (ii) the Provincial Coordinating & Monitoring Committee (PCMC). The airport working committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant Intra- Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

70. Where there are affected people for any airport development work, a grievance redress mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

71. Papua New Guinea Land Disputes Settlement Act establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process is established involving airport working committee/PCMC and appropriate community leaders and representatives. The NAC person on site such as a Safety Officer or the Operational Manager will be the first person to be contacted who will then liaise with airport working committee/PCMC to register, clarify and mediate potential issues.

72. The GRM will apply equally to the contractor who will be required to maintain a complaints registry recording complaints or issues raised and how they have been resolved. The registry will be subject to monitoring as part of Contractors’ Environmental Management Plan (CEMP) compliance checks.

73. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:

VII. ENVIRONMENTAL MANAGEMENT PLAN

74. Mitigation measures, environmental monitoring, and capacity development are required to minimize the environmental impacts in the design, construction and operational phases. The EMP provides the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate with the project’s impacts and risks). It will be necessary to update the EMP during the detailed engineering design phase. A condition of the proposed loan will be the adoption and enforcement of a CEMP to mitigate negative impacts associated with airport improvement activities. The EMP matrix developed to cover the expected impacts for the pavement strengthening and associated works at Mt Hagen Airport is provided in Table 3.

75. As the specific construction and operational activities are not yet fully defined for the project, the Environmental Management Plan (EMP) given here provides only a general outline of the measures and monitoring that will be undertaken for the project. It will be necessary to prepare a more detailed EMP during the detailed engineering design phase of the project. A condition of the proposed loan will be the adoption and enforcement of a Contractor’s Environmental Management Plan to mitigate negative impacts associated with airport re-development. An EMP developed to cover the expected impacts for the upgrading and rehabilitation of Mt. Hagen Airport is described here.

A. Institutional Arrangements

78. NAC will submit the categorization environmental assessments, and monitoring reports to ADB for review in a timely manner. Table 4 provides the responsibilities and authorities of key organizations involved in the implementation of the EARF.

79. The PIU will be staffed with the national Environmental Officer (EO) and be supported by an International Environmental Specialist (IES). The IES will be part of the NAC during the Project with the primary tasks to: (i) strengthen the environmental management of the Project during detailed design, bidding process, contract process, construction, and implementation, (ii) provide induction training to contractors prior to preparation and submission of the CEMP for each subproject. Provide assistance to EO and PIU for review and clearance of the CEMPs; (iii) supervise/monitor compliance with the approved CEMP of each subproject; (iv) undertake the necessary institutional strengthening including on-the-job training for the EO of NAC-PIU by giving major tasks to the EO in all of these activities under IES supervision; (v) prepare reports on environmental safeguards activities as required; and (vi) update the EARF and supervise and guide the environmental assessment process for projects to be implemented in the Tranche 3 as part of the PFR.

80. The IES will be engaged intermittently for eight person-months during the Tranche 3 also in Tranche 4 period and will be assigned on an intermittent basis to undertake training and

capacity building for environmental management in NAC and to guide the EO of PIU in preparing assessments, monitoring and reporting. The IES and EO will jointly be responsible for overall environmental management of Tranche 3.

B. Task of Implementing Agencies

81. NAC-PIU. Table 4 sets out the Institutions responsible for implementing Safeguards Requirements in CADIP Tranche 3. NAC being the Executing Agency (EA) has the primary role of ensuring the Safeguard Measures and Issues are adequately covered. The Environment Officer (EO) is the focal person in providing feedback to environmental and social issues raised during the construction and operational phase of the project. He will be assisted by the International Environmental Specialist on an intermittent basis. On the ground in Momote, NAC’s Safety Officer will oversee daily operations of activities and can notify the EO of serious environmental noncompliance and the EO will visit to remedy the complaint.

82. ADB. ADB through the Papua New Guinea Resident Mission will provide guidance as to the submission of periodic monitoring reports from NAC that would meet ADB’s standards and guidelines before these are uploaded onto ADB website.

83. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the monitoring and progress of the project as per loan covenant.

84. Contractor. The Contractor is to submit a Contractors Environmental Management Plan (CEMP) for approval by NAC and ADB on the mitigation measures that it will take in the implantation of the project. This CEMP will be approved and used in the submission of regular reports to NAC who will submit to ADB for perusal and approval.

85. CEPA. CEPA as the overseers of the Environmental Act 2000 will be updated on the submission of this IEE and its coherence with similar categories which is an Environmental Inception Report. This will be noted and assessed for compliance and under new fee arrangements the NAC may be liable for an assessment fee leading to a permit for the sub project.

C. Monitoring and Reporting

81. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

82. Monitoring during construction will be the responsibility of the contractor and NAC (carried out by EO) and IES within the PIU. Monitoring will relate to compliance with construction contracts (including EMP measures and provisions), the state and health of the nearby environmental resources, and the effectiveness of mitigation measures and complaints. Monthly progress reporting will include a summary of this monitoring submitted to the NAC on a regular basis (at least quarterly) and to ADB semi-annually.

83. The estimated cost for the environmental monitoring plan is $34,000. The costs of the environmental mitigation plan will be part of the construction costs.

84. Table 4 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 5 states the roles and responsibilities for environmental monitoring. Table 6 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipment to be procured by the contractor or through specialised firms. Table 7 shows the summary of the environmental management costs including implementation and monitoring costs.

85. The PIU will be responsible for reporting progress of Tranche 3 to NAC and ADB. Monitoring of each contractor will cover monthly progress and CEMP implementation and compliance (including general good practice). A section on safeguards activities and compliance with the CEMP for each subproject will also be included in quarterly progress reports (QPR) prepared for NAC and ADB.

86. The reporting will be as per the following schedule:

87. The Project completion report will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the EARF and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

Table 3: Design, Construction and Operational Environmental Management Plan

MITIGATION INSTITUTIONAL LO MITIGATING MEASURES SIGNIFICANCE OF EFFECTS LOCATION POSSIBLE EFFECTS COSTS RESPONSIBILITY CATION NOT SMALL MED MAJOR A. IMPACTS DUE TO AIRPORT LOCATION 1. Disruption of Surface Water a. Changes in hydrological regimes Airports and i) Impairment of aquatic ecology i) Dimension of drains X X NIL PIU/EO surrounding areas ii) Drainage disrupted ii) Diversion of stream X NIL PIU/EO iii) Drinking water source iii) Use of grassed areas for runoff NIL PIU/EO Downstream from i) Impairment of aquatic ecology i) Location of stockpiles on paved areas X X NIL PIU/EO b. Pollution as leaking from construction areas ii) Drinking water source ii) Removal of stockpiles after construction NIL PIU stockpiles and spoils iii) Re-vegetation after construction NIL 2. Disruption of groundwater Airports and i) Impairment of yields X NIL a. Changes in hydrological regimes PIU surrounding areas Downstream from i) Impairment of drinking water X NIL b. Pollution by spoils leachate PIU construction areas Surrounding areas I) Increase in vicinity of Airport X 3. Changes in nearby land values NAC/PIU and nearby villages 4. Loss of aesthetics Vicinity of Airports i) Loss of aesthetic value of land i) Landscaping and re-vegetation X USD10,000 Contractor/PIU B. IMPACTS DUE TO DESIGN 1. Slope erosion Airport vicinities I) Installation of silt traps on all drains X Contractor/PIU i) Siltation of rivers affecting hydrology and water quality USD5,000

ii) Contractors to increase awareness of workers

Table 4: Institutional Responsibilities for Implementing Safeguards Organization Implementation Responsibilities NAC –Project Prior to the submission of the Periodic Financing Request (PFR) for subsequent Implementation projects the NAC will: Unit (PIU)  Prepare the environmental assessments (IEE), including an Environmental Environment Management Plan (EMP) for each subproject and submit to ADB and public Officer (EO) disclosure. and  Ensure that adequate public consultation has been undertaken with affected groups International and local stakeholders review the environmental assessments and submit the IEE Environmental and/or EIA documents as required, to ADB. Specialist (IES)  Submit the necessary environmental assessments to ADB in sufficient time to permit the necessary disclosure by ADB.  Undertake the necessary actions to ensure environmental compliance with the GoPNG’s and ADB’s requirements; NAC –Project Prior to the commencement of civil works, the NAC will: Implementation  Submit any of the environmental assessments required for regulatory approval of the Unit (PIU) CEPA and obtain approval, e.g., environmental clearance, environmental permits. Environment  Ensure that all regulatory clearances for the subproject that are obtained from the Officer (EO) relevant Government authorities are submitted promptly to ADB. and  Ensure that the required mitigation measures during construction, the IEE and the International EMP are included in the bidding document of the subproject and that all bidding Environmental contractors have access to the environmental assessments and EMP. Specialist (IES)  Ensure that the EMP and all required mitigation measures during construction, including conditions stipulated in the CEPA's clearance or environmental permit, are included in all the contracts signed by the Contractor(s) with requirements to update the EMP in response to any unexpected impacts and that all selected contractors have agreed the to implement the full suite of environmental mitigation measures prescribed in the EMP.  Receive environmental safeguard clearance on subproject(s).  Provide EMP induction training to contractors;  Review and clear the contractors CEMP for each subproject NAC –Project During the implementation of civil works, the NAC will: Implementation  Ensure that a contractor’s environmental management plan (CEMP) including all Unit (PIU) proposed mitigation measures and monitoring programs and relevant provisions of Environment the environmental assessments is updated as required, and is properly implemented Officer (EO) by the contractors. and  Monitor the implementation of CEMP and present the monitoring reports to ADB. International  In case unpredicted environmental impacts occur during project implementation, Environmental inform ADB, review the CEMP with the contractor, and implement alternative Specialist (IES) environmental mitigation program.  In case a subproject changes in scope, inform ADB and reconfirm the environmental classification, determine whether a supplementary IEE or EIA study is required, and carry out the study including the requirement for information disclosure and public consultation;  Submit the requisite reports on progress with social and environmental compliance and implementing the CEMP as required by the CEPA and ADB.  Ensure that ADB be given access to undertake environmental due diligence for all subprojects. However, the NAC will have the main responsibility for undertaking environmental due diligence and monitoring of all the subprojects. The due diligence report as well as monitoring reports on CEMP implementation, as required, will be systematically prepared and be made available to the public, if requested

88.

Table 5. Environmental Monitoring Plan

PARAQMETRES TO BE PHASE/IMPACT MITIGATING MEASURE MONITORED STANDARDS LOCATIONS1 DURATION FREQUENCY IMPLEMENT SUPERVISE PRE-CONSTRUCTION PHASE 1. Erosion, i) Drainage design Capacity sufficient for 80% of 30 Momote Airport Detailed Once at Design PIU siltation and ii) Use of gently sloping grass i) Drains are of sufficient quantity year maximum Design Detailed Contractor and size to accommodate flooding of surfaces Phase Design Phase waterways iii) Silt traps in all drains additional volume ii) Silt traps are of sufficient quantity and size to protect surrounding areas from siltation CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

Specific sampling stations will be defined during the conduct of the baseline survey before commencement of works

Table 6: Roles and Responsibilities for Environmental Monitoring

Implementation Implementation No Environmental Monitoring Tasks Responsibility Schedule 1 Design Phase Disclosure of subprojects to CEPA and 1.1 NAC-PIU, EO Prior to construction monitor permitting. Audit project bidding documents to NAC-PIU (by ensure IEE and EMP included in bids Prior to issue of bidding 1.2 IES and environmental criteria are included documents. and EO) in evaluation. 2 Construction Phase First orientation/briefing 1 month Orientation and briefing of contractor’s NAC-PIU (by prior to commencement of each 2.1 management, site agents with regards to IES contract and refresher all IEE and EMP requirements. and EO) orientation/briefing at least yearly during construction period. Monitor the performance of environmental training by contractor and NAC-PIU (by Ongoing, prior to and during 2.2 briefings and of the environmental IES implementation of works and awareness of Contractors staff, tool box and EO) operation. talks and & refresher courses. Regular (monthly) monitoring and NAC-PIU (by Continuous throughout 2.3 reporting(quarterly) of contractor’s IES compliance with statutory environmental construction period. and EO) requirements Regular (monthly) monitoring and NAC-PIU (by reporting (quarterly) of contractor’s Continuous throughout 2.4 compliance with contractual IES construction period. environmental mitigation measures and EO) including EMP. Regular (monthly) monitoring and NAC-PIU (by reporting(quarterly) of complaints and Continuous throughout 2.5 IES responses or environmental mitigation construction period. and EO) measures Monitor adjustments to the EMP for NAC-PIU (by During all phases of the 2.6 unexpected impacts and the thorough IES Subprojects implementation of detailed EMP. and EO) Commissioning phase monitoring of NAC-PIU (by facilities versus environmental 2.7 IES At commissioning. contractual performance criteria. Check and EO) EMP compliance. 3 Operation and Maintenance Phase Post construction monitoring of Semi-annual up to 3 years after air/noise/water quality at any sites where NAC-PIU (by completion of construction or until 3.2 complaints about water quality from EO) air, noise and water quality meets works were justified in construction baseline conditions. phase.

VIII. CONCLUSION AND RECOMMENDATION

89. The project will cause short-term environmental disturbances associated with construction activity that will be mitigated by operational procedures during construction, within the framework of a contractor’s approved EMP in line with the EMP stated herein (Table 3 above) to be supervised by the PIU.

90. Mitigation measures to prevent or minimize unnecessary impacts are also provided. Potential impacts and risks during construction were also characterized as short term and unnecessary impacts will be minimized through good construction management and housekeeping practices. An EMP containing impact mitigation and monitoring plan to mitigate the potential impacts has been prepared to ensure that the project will be implemented in an environmentally sound and sustainable manner.

91. Positive impacts to the local economy will accrue through new income earning opportunities for locals generated by demand for labour, women participation to semi- skilled during construction; and airport staffing and management arrangements, and through the creation of new non-aeronautical business opportunities in the terminal facilities and surrounding areas.

92. This IEE concludes that in the context of appropriate mitigating strategies described above, and the positive environmental benefits to flow from the Project, environmental impacts can be managed within acceptable levels. There are no significant environmental impacts needing further detailed study or EIA. All potential and associated impacts can be addressed through implementation of the mitigation measures as proposed in the IEE. Provisions will be made in the Project Budget to cover the environmental mitigation and monitoring costs.

APPENDIX 1: ENVIRONMENTAL MONITORING PLAN

Table 7: Matrix of EMP for Mt Hagen Airport

ENVIRONMEN PLANNED EQUIPMENT COST OF INDICATOR MONITORING TAL AREA OF REQUIREMENTS MONITORING PARAMETER FREQUENCY PARAMETER MONITORING AND (MONTHLY COST (US$) COST IN US$) Monthly During Construction Sulphur Period/Semi-Annual dioxide During Operation Period 1 Unit - PM10 Portable US500.00 Nitrogen US$2500 (includes dioxide Monthly During 1 Unit - 3 Gas transportation Construction Analyser and lab Period/Semi-Annual Portable analysis) During US$2000.00 Operation Period Air and 2 stations Noise Monthly During Total Construction Suspended Period/Semi-Annual Particulate During Operation Period 1 unit – Noise Monthly During Metre Construction US$500.00 US$400.00 Noise Period/Semi-Annual ((includes During transportation Operation Period and lab analysis) Temperature pH Biological Oxygen Demand (BOD) Monthly During US600.00 Dissolved 1 Unit Portable Construction (includes Water Oxygen (DO) Water Period/Semi-Annual 1 Station transportation Quality Oil and Quality Analyser During and lab Grease US$2000.00 Total Operation Period analysis) Coliform Count Total Suspended Sediments (TSS)

Table 8: Summary of Costs for the Proposed Works

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000

Impacts During Construction 98,000.00 Sub-Total 128,000.00 MONTHLY MONITORING 2 PARAMETER EQUIPMENT (US$) COST (US$) (US$) Air and Noise One set of equipment for EO 900.00 21,200.00

Water Quality One set of equipment for EO 600.00 12,800.00

SUB-TOTAL 1,500.00 34,000.00

GRAND TOTAL 162,000.00

APPENDIX 2: PHOTOGRAPHS

Photo 1: WESTERN END OF THE RUNWAY PAVMENT THAT WILL BE UPGRADED

Photo 2. TREE TO BE CUT DOWN FOR AIRCRAFT APPROACH PATH

8. Vanimo Airport Initial Environment Examination.

EXECUTIVE SUMMARY

III. An environmental assessment and review framework (EARF) has been prepared to guide environmental safeguards implementation for Tranche 3. In accordance with the EARF this Initial Environmental Examination (IEE) presents the environmental assessment of one of the project under Tranche 3 – Runway Extension and Associated Airside Works at the Vanimo Airport in West Sepik Province of PNG. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Safeguard Policy Statement 2009 and the GoPNG Environment Act 2000. The key environmental impacts on the physical, natural and human environments have been assessed.

IV. The main findings of this IEE indicate that the impacts that will arise from Vanimo Airport Runway Extension & Airside Works will be minimal as the runway extension and pavement strengthening and associated works will be within the existing airport boundary and GoPNG land. The project is classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

V. The potential environmental impacts associated with the project particularly occur during the construction and operation phases which will typically involve:

VII. A Grievance Redress Mechanism set up in Tranche 1 and 2 will be used in Tranche 3 and the Provincial Administration is fully aware of its role. Public support during consultation for the project was unanimous and the Provincial Administration wanted the project to commence immediately as they see this as providing linkage to the Indonesian province of Papua for trade and investment. The mini market will provide opportunity for women to be able to market their goods to the travelling public.

VIII. The upgrading of the Vanimo Airport is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the F100 aircraft, or similar. I. INTRODUCTION

1. The Government of the Independent State of Papua New Guinea (GoPNG) has requested the Asian Development Bank (ADB) to provide a multi-tranche financing facility (MFF) to facilitate investments to improve the current state of the country’s domestic air transport system under the Civil Aviation Development and Investment Program - (Investment Program). The first two phases (Tranche 1 & 2) has had its clearance done and this is Tranche 3. Tranche 3 will cover (twelve) major airports in the country where they have been identified for upgrading and rehabilitation mainly based on the relative importance of these airports as domestic hubs for tourism and economic development on a regional basis. The Program is a comprehensive plan to upgrade, rehabilitate and maintain major domestic airports in Papua New Guinea (PNG). The executing agency (EA) for the Program is the National Airports Corporation 1 (NAC). 2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the subprojects under Tranche 3 – Pavement Strengthening, Runway Extension and Associated Works at the Vanimo Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Sourcebook (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment. 3. The main purpose of this IEE is to identify impacts from the runway extension, pavement strengthening and associated works of the Vanimo Airport, Sandaun Province (Figure 1) and mitigations required to address them.

A. Overview

4. The proposed investment program will entail the upgrading and rehabilitation of the following existing airports (Tranche 3): Madang; Mendi; Kavieng; Vanimo, Kerema, Kiunga, Tari, Momote, Buka, Gurney, Wewak and Mt Hagen. The upgrading and improvement of these major domestic airports is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the runway, taxiway and apron capability to accept unrestricted operations by Fokker 100, Dash 8 and QF 400 aircrafts.

B. Environmental Regulatory Compliance

5. The environmental regulations of GoPNG are derived from the Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects that need environmental assessment as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Projects that likely to have significant adverse environmental impact (Level 2 and Level 3) are required to obtain an Environmental Permit (EP) from the Conservation, Environment and Protection Authority (CEPA) following environmental assessment. The upgrading and rehabilitation of existing airports is not listed as Level 2 and Level 3 of the “Prescribed Activities”. However certain associated project activities commonly associated with upgrading and improvement works such as earthworks, surfacing, discharge of waste water, establishment of borrow pits, sourcing and extraction of aggregate materials from surface water courses are Level 2 activities that may require an EP depending on the duration and scale of those activities. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the subprojects to

1 Project 1 rehabilitation work was under the Civil Aviation Authority (CAA) and was the predecessor for NAC. Figure 1 LOCATION MAP OF VANIMO CEPA so that CEPA can decide whether any specific environmental requirements will be needed for the proposed airport upgrading and rehabilitation. Considering the government environmental requirements and ADB Environmental Safeguard Sourcebook (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

C. Environmental Category of the Subproject

7. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Sourcebook (2012) Tranche 3 projects are classified as Environmental Category B that requires an IEE.

D. Objectives and Scope of IEE

8. The objectives of this IEE were to:

9. This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

II. DESCRIPTION OF THE PROJECT

West Sepik Province, Mt Hagen in Western Highlands Province, Wewak Airport in East Sepik Province, Tari Airport in Hela Province, Gurney Airport in Milne Bay Province, Kerema Airport in Gulf Province, Kiunga Airport in the Western Province, Buka Airport in the Autonomous Region of Bougainville and Momote Airport in the Manus Province.. Only the scope of works for Vanimo Airport is in Table 1.

Table 1: Scope of Works for Vanimo Airport

Sub Location Proposed Development Works Project Vanimo Sandaun A. B Aircraft Pavements and Associated Airside Works Airport Province 1. Extend Runway by 293m x 30m wide to eastern end to give 1900m overall length including new turning node; 2. Construct 3m wide Shoulders to extended Runway both sides; 3. Bituminous surfacing to new and strengthened pavements. Prime and 3 x coat (10mm/7mm and sand) hot bitumen seal; 4. Construct Stopway at extended runway end; 5. Construct Runway End Safety Area (RESA) unsealed at extended runway end; 6. Supply and apply temporary and permanent aircraft pavement line markings; and 7. Runway Strip grading, top soiling and grassing within 90m width on extended end; 8. Improvements to airside drainage system including construction of Open Unlined Drains (OUD); and

B. Landside Works 1. Design and construct New Terminal Building. 2. Construction of New Carpark. 3. Supply and Install Security Fence on Runway Extension area Note: Allowance is made for other miscellaneous works including General and Preliminary items.

13. The Proposal is to extend the runway for Vanimo Airport to make it safety compliant as one of the regional airport that could accommodate and be suitable for the operation of Q400, ATR and Fokker 100 aircraft or similar, and for the airport to expand its role as the major domestic hub for WSP. Major upgrading works will be on the airside portion of the facility and minor works on the landside. Most of the works will be within the existing aerodrome land boundary except (Figure 2) for the runway extension that will go beyond aerodrome boundary into an undeveloped area demarcated as ‘State’ or Administrative’ land. This area is currently used as town dumping site (Photo 2). The upgrading works will commence after all detail design, scope of works and approvals have been obtained; and the contractor selected to carry out the works.

14. The construction period of the proposed activities is 12 months. The upgrading works with the fencing will be re-aligned along the additional land area required for the runway extension. The wear and tear of the runway pavement is self-explanatory for this importance scope of works (Annex B: Photo 1 - 3).

15. Vanimo Airport upgrading will involve the following estimated materials and earthworks quantities:  Cut to stockpile 100 millimetres (mm) topsoil for future - 6,802 cubic metres (m3)  Spoil (excavation material) - 20,465 m3

 Select Fill Material - 68,685 m3  Crushed River Gravel Sub Base - 6,709 m3  Cement treated base (CTB) - 11,427 m3  26.5 mm Base course - 33,883 m3  Topsoil will be used and/or be re-used for topsoil and grassing  Excavated in-situ material will be used in landscaping and/or flight strip widening and grading.  All materials will be stockpiled at a designated location on the airside.  Base-course material shall be crushed river gravel – brought in potentially from Rivers in the vicinity of Vanimo.  10 m3 trucks shall cart material from source and stockpile on site.  Contractor’s Site shall be located at the Airside (Area approx. = 100 m x 50 m). The development works (Table 1), will all be confined to the limits of the proposed runway extension area.

16. Project Requirements. Most of the main roads around Vanimo Airport are bituminous roads except for the coronas base course feeder roads. Power supply is from the main town power supply grid. Occasional blackouts in Vanimo also affect electrical supply to the airport facilities so the project will install a diesel power generator at the airport to maintain continuous power supply to improve airport lighting systems and electrical appliances.

17. Water supply into the airport hydrants and terminal facilities including the airline operators (Sunbird Aviation, Air Niugini) are from the terminals rainwater supply. Vanimo town has no reticulated water supply or sewerage system. Collection of rainwater by tanks or by groundwater supply water to the town residents and business houses, government offices/buildings. For the airport, additional reservoir tank and increase in the roofing area of the terminal building will allow an adequate rain water supply at the Terminal Building.

18. Material for the runway pavement extension work such as select fill material, crushed coronas sub base, cement treated base and pavement construction material will be sourced from the quarry site currently used by Global Construction Company. The quarry extraction site is located about 6-7 km outside of Vanimo town. The contractor for the runway extension & associated works has not been appointed as yet and may source some other fill material from other quarries and borrow pits and details are not known at this stage.

19. As for spoils which will include worn out bitumen surface, the intention is for the contractor to recycle them and have them levelled off along the edge of the aerodrome or be used as shoulders along the runway and then have top soil placed on it to allow grass regrowth and stabilization (Refined Bitumen Association, 2015). These could also be taken away to areas where the community may need to level off a depression around their residence.

20. Vanimo Airport is located at S 020 41’ 38.08” E 1410 18’ 13.15” at an elevation of 3.05 metres asl stretched across the Daumlinge Bay on the south east and the Vanimo or Angriff Harbour on the north western side. It is flat and is approximately a kilometre east of Vanimo, the provincial capital of Sandaun province.

21. Geology and topography of the area is raised limestone forming coastal plains along the northern point when the Sandaun Provincial Administration (SPA) headquarters is located. The airport is in close proximity to the beach on both sides.

Figure 1 shows the map of Papua New Guinea and location of Vanimo Airport. Figures 2 and 3 shows the general layout plan and the aerial view of the existing Vanimo Airport. Figure 4 shows the proposed runway extension and the additional land required.

22. The airport is situated within the coastal plains with a big drain running along the western side that drains at the edge of the south eastern runway into the Daumlinge Bay. The perimeter of the runway is also receiving runoff from the adjacent Malol swamp area that contains Kapiak compound. This runoff drains also to the north western end into the Vanimo harbour along the lined drain. There is also a collapse of the lined drain which prevents effective runoff into the harbour. Apart from the Kapiak Compound outside of the fenceline, Pewi Settlement is about 150m away from the proposed runway extension area.

23. The total annual rainfall that the area receives ranges from 1800 to > 4000 mm with the highest amount of precipitation occurring during the period of December to October. Vanimo in WSP is an area dominated by logging activities and the easily accessible timber species near the coastal areas have been harvested and hence have been cleared with secondary growth established. The airport is adjacent to the Malol swamp areas contain some of the GoPNG offices such as the Department of Works, Education, and Correctional Services with their staff housing together with other business houses. The NAC compound is also situated there and the construction of the L40/96 house will be in that compound.

24. The existing bitumen runway is 1,730 meters long and is aligned northwest/southeast fronting and almost parallel to Daumlinge bay. The airport land is within 15 metres of the main road that leads into Vanimo (Angriffs) on the northwestern end while it is 10 metres to the east of Daumlinge Bay on the south eastern end and has a perimeter of 4660.6m covering a total land area of approximately 28 hectares.

25. The airport land lies only 3.05 m ASL it is flat at 0%. The area drains to the northwest through two (2) open shallow drains running parallel of the runway on both sides. Unsealed areas of the facility are relatively well grassed although the low relief provides the potential for sea water intrusion under the runway area and this creates soft surfaces. Vanimo Airport’s sewerage system connects to the towns’ sewerage system although the water tanks at the terminal may not cater for the influx of passenger and staff needs.

26. Current upgrading project for the airport includes installing new fence around the airport boundary. Fencing will extend to cover the proposed runway extension area. The terminal building besides Air Niugini has offices for the National Airports Corporation and Immigration. Adjacent to the terminal building is a large building now rented out by a logging company. To the left of the Apron area are three hangers and two small buildings operated by SunBird Aviation, North West, TNT and the Catholic Mission.

27. The airport hangars are operated by SunBird Aviation and the Catholic Mission and are primarily utilized for material storage and housing for a light aircraft. There is no Interoil fuel depot here in Vanimo and the small aircrafts have their own fuel drums for refueling while Air Niugini aircrafts travel to Wewak where they refuel there. The Apron in front of the main terminal drains directly on the eastern side into the open grassed area which often pond up and floods onto the apron. There will need to be sub soil drainage structures to allow for the run off into the lined drain which drains to the northwest. To the east of the apron area is the Defence Force area which takes up to 1730 m or so.

Figure 2: GENERAL LAYOUT OF VANIMO AIRPORT

7 Figure 3: AERIAL VIEW OF VANIMO AIRPORT

8 Figure 4: PROPOSED RUNWAY EXTENSION

III. DESCRIPTION OF EXISTING ENVIRONMENT

28. West Sepik Province is located to the north western portion of mainland Papua New Guinea (Pop. 185,741 Year 2000). The provincial capital is Vanimo (Pop. 14,314 Year 2000). The province has a total land area of 36,000 km². WSP produces minor amounts of cocoa, Robusta coffee, rubber and fresh vegetables. Besides these are logging projects where most of the locals receive royalties. There are now an increasing number of palm oil plantations in the province in the last ten years (2003 - 2013). Sandaun has four districts; Vanimo Green, Aitape - Lumi, Nuku and Telefomin. The districts are large and consist of a number of rugged mountain ranges such as the Bewani and Torricelli and the Star Mountains consisting of the Thurwald, Fiamolu, Star and Victor Emanuel ranges bordering with the Ok Tedi mine in the Western province. Foothills are below these mountain ranges and these then transgress into flood plains, and plains to the coastal areas. There are also a few islands, with a coastline and shallow reefs. The Aitape tsunami in 1998 highlighted the vulnerability of the coastline to this hazard (Figure 5).

Figure 5: Map of sandaun province

29. The terrains, big flowing rivers and mountains of the Province make traveling by road from the districts to Vanimo a challenge. Road networks run along the floodplains and plains with only a few that run through mountain ranges. The district of Telefomin is only reachable by airplanes. Logging firms’ ship out a lot of round logs from the Vanimo wharf and this is a port that handles goods in and from Djayapura in Indonesia. The PNG border with Indonesia is at Wutung, which is 30 km to the north west of Vanimo. There is continuous trade of goods going in and out of Djayapura by people travelling from other parts of PNG.

A. Physical Environment

37. Land Resource and Utilization. Vanimo is based around logging. Vanimo Forest Products has a large influence around Vanimo. Apart from logging, the province has the potential for cash crop production such as coffee, vanilla, rubber, oil palm, rice and copra.

38. The eastern portion of the airport area belongs to the Defence Force and continues to serve as command post for PNG Defence Force soldiers’ deployment to the PNG border and surrounding areas. At the edge of the runway at Daumlinge Bay Are State land left undeveloped (now used as rubbish dumping site) where a few food gardens and plots of banana gardens belonging to settlers. About 50m further out from this dumping site is the Pewi Settlement, Ward 5 of Vanimo Urban LLG. The settlement is about 300m from the end of the existing runway and will be 50m away from the end of the proposed runway extension fenceline.

39. The western side of the runway is occupied by settlers mainly government workers who have not been allocated housing and have built their houses where the Kapiak compound is. These settlers are residing in close proximity (about 10m) outside of the airport perimeter fencing.

40. Meteorology and Climate. All of PNG is tropical experiencing the northwest monsoon from December to March and the southeast monsoon from May to October. Vanimo is two degrees south of the equator and is hot all year round, with temperatures ranging from 23 to 33° C (73.4 to 91.4 ° F). Humidity is high at all times given its close proximity to the equator and can expect 60 – 90% while a lesser percentage in the evening. Annual precipitation ranges from 1800 - > 4000 mm up in the mountain ranges. The dry season lasts from May to November, associated with the south-east monsoon, although heavy tropical rains can occur throughout the year.

41. Vanimo is hot and humid. The airport temperature ranges from 31 0 (day) and 23oC (night). The temperature fluctuates throughout the day. Relative humidity is 65%-100% during daytime and 85%-88% at night. High record of wind speed is about 10km/h and low is 3km/h. More than 50% changes of precipitation with likely cloud cover, showers and thunderstorms can be expected towards the evening hours into the night.

42. The current runway pavement will be raised to about 300m and a proper drainage system will be constructed along the open unlined drains parallel to the runway to cater for rise in sea level. Considering the rise on sea levels and climate change pattern such as sever rainfall, the proposed runway extension design and construction will be done in an environmentally harnessing manner.

43. Topography, Geology and Soils. Papua New Guinea is situated between the stable continental mass of Australia and the deep ocean basin of the Pacific. The largest section is the eastern half of the island of New Guinea, which is dominated by a massive central cordillera, or system of mountain ranges, extending from Indonesia's Irian Jaya to East Cape in Papua New Guinea at the termination of the Owen Stanley Range, and including the nation's highest peak, Mt. Wilhelm (4,509 m/14,793 ft). A second mountain chain fringes the north coast and runs parallel to the central cordillera. Active and recently active volcanoes are prominent features of New Guinea landscapes. In the lowlands are many swamps and floodplains.

44. The geology and topography of Vanimo can be classified into plains, flood plains and swamp areas along the coast with adjacent hills and mountains, some composed of limestone. The airport is in close proximity to the ocean on the north-west and south-east sides respectively. Given its low elevation, it is affected by the tidal influence and this may place pressure on the foundation of the airport pavements. The airport area soil type is dominated by Fluvaquents and Rendolls which are young alluvial soils and limestone soils of which the parent soil is weathered

limestone2 Low grassland stretches on the western side of the runway with settlement residence while secondary forest form three quarters of the eastern side which is also the PNG Defence Force premises.

45. Mineral Resources. Although geological studies have shown that the province has the potential for developing natural resources such as gold, copper, oil, yet there is no active mining activity in WSP but applications for exploration by overseas mining companies has been done though the GoPNG for mineral exploration3. None of these are in the vicinity of the airport.

46. Surface and Ground Water Resources. The airport is situated within the coastal plains where swamp and small creeks drain out to the North West and south east respectively. With the young alluvial soils and limestone derived soils, there is the potential of using water in aquifers for the town water supply. Stoney Cave and Daunda Creek were possible water sources in the vicinity of Vanimo and readings in 2006 indicated 0.8 and 0.6 mg/L nitrate, pH of 7.7 and 7.8 and total coliform of 185 and 141 and 19 and 23 E Coli respectively 4.

47. However, the airport water supply comes from the rainwater which is collected in the water tanks and supplied to the terminal facilities. The airport pavement upgrading will include supply of larger capacity tanks and improvements to terminal roofing area to capture more rainwater to adequately sustain the airport facilities

B. Biological Environment

48. Forest Resources. Vanimo has benefited economically for about the last 20 years from the cash generated in the area by the presence of a major logging operation in the area. Recently oil palm development has come into the province and a lot of forest has been cleared already. Vanimo Township including the airport area is well developed without any forest covered within the 100m radius of the township. The area of proposed runway extension has no forest cover.

49. Marine Resources. Presence of economical fisheries such as Tuna in the waters of WSP invites potential harvesting of Tuna legally and illegally by Asian vessels 5. Other coastal fisheries project in the province is part of the provincial development plan (West Sepik Provincial Education Plan, 2007-2014). A notable fish project is located in Aitape district set up by youths. It involves buying and selling of fish in the abundance waters of the Province. Line technical departments such as Commerce, DPI and Fisheries assist in the smooth running of the project. The youth office has pursued to find markets in and out of the province to sell its fish (Gerald Towun, 1996). Improving the airport infrastructure will be an avenue to enable and enhance fisheries exports in the in and out of Vanimo, Sandaun Province.

C. Social-Cultural Environment

2 (PNGRIS, 2008). 3 (PNG Minerals Resources Authority, 2015). 4 (SOPAC, 2006) 5 (WWF, 2015) shttp://www.emtv.com.pg/article.aspx?slug=WWF-Calls-for-the-Safety-of-Fisheries-Observers.

a doubling of the population in less than 30 years6 with potential extension of life expectancy will greatly increase the pressure on current land and natural resources with attendant environmental impacts.

51. Vanimo the Provincial Capital is a growing town of 14,314 people (estimated in 2000) and with a 1.8 percent annual increase the total population would be 17,663 in 2013. The population is largely rural based, with about 92% living in rural areas and 8% in urban areas. The provincial economy is largely a subsistence economy. It has a continuous influx of people from outside the province and also from the Papua province of Indonesia who either travel onto Djayapura for shopping or exchange goods in Vanimo.

52. Vanimo with the timber industry being dominant has a large port facility for the export of round logs overseas. Since 2010, the GoPNG is seeking to ban the export of round logs and encourage downstream processing within the country.

53. Cultural and Historical Sites, Schools and Housing. The province has more than 80 ethnic groups with about 86 different tongues. The main ethnic difference comes from the coastal and the mountain people of the province. Hence, these cultural and language diversity often possess a challenge in interpretation, understanding and communication of information, mobilizing community support for local participation in infrastructural development such as the airport upgrade.

54. There are no sites of cultural significance found near the area of the proposed development (Vanimo Airport). There are chapels and churches nearby in some villages and Vanimo town.

55. Health and Sanitation. The greatest health concern in PNG is Malaria followed by pneumonia, accidents and injury, chronic respiratory disease and maternal death. AIDS/HIV has been a disease of possible epidemic proportions although the inaccurate data do not provide total prevalent figures between the target age group of 25 -34 in males and 20 – 34 in females. The highest occurrence of AIDS/HIV has been in Western Highlands, WSP, Western, and Morobe Provinces and the NCD; areas where population concentration and pressures on the natural environment are highest. Vulnerable groups include women, sex workers, youth, the poor, and workers in industrial enclaves (mining camps, factories, etc.).

56. The whole town is completely reliant upon rainwater catchment for drinking water supply and the sanitation practices are centered on septic tanks and a percentage of “night-soil” collection from buckets. Meanwhile, a feasibility study is currently underway for a proper water and sanitation system, and Vanimo will be declared a water district for proper water and sanitation once the study is complete7).

IV. SCREENING ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

57. This section provides an assessment of the likely impacts associated with the pavement strengthening and associated works and ways to mitigate and/or manage them. The works will extend into government land beyond the existing airport boundary although there is less vegetation and rubbish piles to clear there. The assessment focuses on pre-construction, construction and operational stage impacts.

A. PRECONSTRUCTION 58. A number of activities will occur during the preconstruction phase where there is (i) the

6 (ADB 2005) 7 (S. Ova Jr, 2015)

Establishment of Contractors Site and Facilities, (ii) Constructions Workers Accommodation and (iii) Stockpiling of Construction Material.

59. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities.

60. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public Relations Officer is tasked to ensure that these do not occur.

1. Establishment of Contractors Site and Facilities

58. The contractor’s work site establishment (inclusive of stockpiling) will be located outside of the airside and require an area of approximately 100 m x 50 m. Inappropriate disposal of wastewater and effluent from rest room and solid waste can cause pollution. Pollution anticipated to be generated during construction is expected to include day-to-day production of solid waste, domestic sewage, and oil and chemical wastes. The storage and handling of petro-chemicals will require careful management; an important part of the environmental management plan (EMP) will be requirement for an emergency response plan for spills and accidents.

59. The contractor’s depot area and yard/offices will be provided with sanitary disposal facilities that will address the generation of domestic wastewater and proper solid waste management. Silt traps shall be established around areas identified for clearing and drainage works to prevent siltation of any surrounding waters. During the pre-construction and construction period an adequate supply of an appropriate quality of water will be provided for both domestic (for the contractor’s depot area) and other purposes (construction activities i.e. concrete mixing, clean-up of machineries and washing of trucks).

60. Mitigation measures include:

2. Construction Workers Accommodation

61. Establishment of contractors’ camp site will also comply with mitigation measures of waste management. Otherwise, contractor will rent a small compound for the skilled staff (10-15 persons) recruited for the construction works such as the Pavements Supervisor and Foreman, Mechanical Supervisor and Plant Operations Supervisor, etc. All other skilled and unskilled personnel which are estimated at 30- 40 persons shall be sourced locally and would not require housing in campsite. 3. Stockpiling of Construction Materials

62. The development works (i.e. pavement strengthening, runway extension, flight strip widening, construction of shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and laying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the contractor’s environmental management plan (CEMP) with cleanup initiatives undertaken as required. Mitigation measures include:

B. CONSTRUCTION

63. The Constructions phase has a number of activities or induced activities such as i) Clearing and Grubbing, ii) Pavement Construction, iii) Building Construction, IV) Storage and Handling of Fuel, Oil and Other Chemicals, V) Health and Safety, VI) Social Impacts, Vii) Noise impacts and Air Quality and VIII) Traffic Impacts.

64. All these activities will be confined to the construction area and physical and biological impacts will occur within the shrubs and trees that will be cleared for the new terminal and market buildings. There is the possibility of fuel, oil and other chemicals leaking into the water ways although there is no noticeable water way in the vicinity of the construction area. The limestone substrate allows for runoff to permeate through.

65. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the Environmental Management Plan.

1. Construction Activity

66. Clearing and Grubbing. All grubbing of topsoil, clearing of grass areas and trees/shrubs, old fences and culvert materials clearance will require stockpiling in controlled areas during construction. All topsoil, grass and culvert clearance will be cleared and stacked to edges of the fenced area to allow for re-vegetation or taken to designated sites for reuse. Exposure of soil can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation and management measures include:

be re-used where possible to provide landscaping in terminal and parking areas; and  The removal of topsoil followed by placement of base coarse material quickly to prevent soil erosion.  Installation of sedimentation controls in drains

67. Pavement Construction. Excavation and disposal of the existing pavement can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. All construction spoils including solid and coal tar wastes and empty containers from the work areas should be removed from site and transported to the public waste disposal area. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation measures include:

68. Building Construction. Building construction such as airport terminal and NAC staff house will commence upon completion of the sub-ground service activities. Building construction shall occur in concurrence with runway pavement upgrading. Mitigation measures include:

 All building material confined in a single secured area;  All building material, waste materials to be arranged in classification/order and stored in appropriate location;  Concreting to be performed after foundation framework is in place;  Excess concrete from drum and concrete chute to be cleaned at designated contractors’ site; and  Solid and liquid waste associated with the building construction to be taken to municipal waste dumpsite. e. STORAGE AND HANDLING OF FUEL, OIL AND OTHER CHEMICALS 69. The use of equipment and plant during the works will require usage, storage and handling of fuel, oil and other materials. Subsurface water resources near the selected subproject road sections could be anticipated to be contaminated by fuel and chemical spills. The following mitigation measures are included in the EMP to reduce the levels of impact associated with such effects:

2. Health and Safety

70. During construction activities, work sites, traffic, and operation of equipment, plants and vehicles can pose health and safety risks for workers and the community. Health and safety codes of PNG and World Bank Group’s Environment, Health and Safety Guidelines (as per the SPS) will apply at all sub-project sites. Measures to mitigate risks include:

3. Social Impacts During Construction

71. The presence of a construction workforce can create social impacts such as risk of spread of communicable diseases (such as STIs and HIV) and create social disruption as a result of conflicts between workers from outside and local people. The workforce required for the pavement construction and associated works will be relatively small but wherever possible local people should be employed.

72. The contractor for Vanimo airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Vanimo return to their original place of residence to avoid impacts from informal migration.

4. Noise Impacts and Air Quality

73. Air and noise pollution may be created by earthmoving, operation of heavy equipment and plant, transportation of materials to and from the site, and general works in the dry season generating dust and exhaust fumes such as Carbon Monoxide.

74. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Vanimo airport is located in a busy area with noise coming from all moving vehicles in and out of town but away from sensitive receivers (schools and hospitals), although there are some residential areas close to the airport and the impacts can be reduced to negligible levels by:

public holidays; and  Vehicles transporting loose materials and stockpiles to be covered with canvas. Work site and vehicles to be watered-down if generating dust.

5. Traffic Impacts

75. The need to transport materials to and from the site can cause traffic congestion if not managed properly. The contractor shall be required to prepare a traffic management plan as part of the EMP to demonstrate how construction traffic can be handled during the works in order to minimize impacts on transportation networks in the vicinity of the sites.

C. OPERATIONAL

76. At the completion of construction work, all materials will be removed or disposed of and the completed works will be in place. The only impact during the operational phase is the noise impacts which will be for the duration of approaching and landing aircrafts.

77. Operation Stage Issues. Aircraft noise emissions, whilst considered only a minor issue at present, can increase with increasing flight frequency in the future operation of the airport, and need to be proactively managed. The problem can mostly be ameliorated by the careful location of ground running, and by the times these activities are undertaken. Occupational and residential exposure to aircraft noise is expected to increase over time; however, the noise impacts will only be for very short duration during aircraft take-off and landing only. It is not a concern for the contractor at this stage.

78. Aircraft ground operating noise will require management negotiated agreements between airlines, NAC and the local communities on times, frequency and locations of operations. Noise from aircraft in flight requires addressing in the context of the EMP such as plants locate plant s away from aircrafts parking/approach area. NAC must prepare, regularly update and promulgate noise exposure forecasts in accordance with the ANZECC 1992 or Australian Noise Exposure Forecast. This shall be NACs operational matter.

79. NAC, airlines and other aviation operators will introduce, under the Civil Aviation Regulations, a formal Safety Management System. For all airports, this will address both temporary safety risks during construction, and ongoing safety risks during normal operations. This system will also address management of environmental impacts of accidents and safety management processes.

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Introduction

80. As required by the Environmental Guidelines of the ADB and the SPS and ADB’s Public Communications Policy (2011), Focus Group Discussions (FGD’s)/Public Consultations were carried out separately with about 114 residents of Pewi Settlement, Ward 5 of Vanimo Urban Local Level Government (LLG). Consultations were held with executive staff of Provincial Administration and the established airport working committee members from the Provincial Administration. Consultation was done on Tuesday 22 nd September 2015 and Wednesday 23rd September 2015. Table 2 displays the details for the consultations and number of participants (by male and female) for the meetings. The main issues raised and response to those issues or concerns follows this section (Refer Annex 1, Photo 4).

Table 1: Consultation for Vanimo Airport

Date: 22/9/2015 – Sandaun Provincial Administration (SPA) Names Position

Hendry Nom Provincial Administrator (PA) Desark N’drorit Deputy PA – Policy Henry Rakuasi Manager, Department of Works (DOW) Albert Mutumap Director Planning Sylvester Nakia a/Physical Planner, Dept of Lands & Physical Planning Conrad Tilau a/Deputy PA Joe Avou Provincial Surveyor Sakarias Kai Provincial Lands Officer Andrew Lenya Provincial Lands Officer

Date: 23/9/2015 – Pewi Settlement, ward 5, Vanimo Urban LLG Names Position About 60 persons All are settlers 81. There are no village communities around the immediate proximity of the airport. Only settlements and residential areas. Hence, consultations were not considered beyond the airport perimeter area. There is also the possibility of potential issues such as locals’ intention to subcontract in the project, arising from individuals and communities outside of the airport area is consulted. The act of consultation will raise expectation and demands simply because it does not focus on certain group as in a village community. Similar arrangement will be carried out in the other provinces.

82. While land on which the settlers are residing is State land, they would like to be made well aware of the developments that are happening close to their houses. In that way, their houses crops and fruit trees planted could be compensated if they are asked to move. B. Issues Raised and Responses

83. All the consultation was fruitful with unanimous support from all stakeholders consulted. Some of the issues raised relevant to the proposed development are as follows;

 Vanimo airport is declared aerodrome land. NAC is the custodian of the land for aerodrome purpose.  All land matters concerning the airport upgrading project has been sorted out and there is no current outstanding issue. Clams of landownership shall be addressed through the Office of the Provincial Administrator whilst awaiting the formation of the Grievances Redress Mechanism established through a Working Committee with SPA.  Grievances Redress Mechanism (GMR) for the Project will be represented through a working committee to be established within the Sandaun Provincial Government & Administration.  Possibility of subcontracting to the main contractor by established local contractors  Construction of a mini airport market may be optional since the town nearest market is a walking distance (about 200m) from the airport terminal area.  Traffic congestion, dust and noise from contractors’ vehicles/trucks with normal traffic flow shall be managed by the contractor through a traffic management as well as part of the Environmental Management Plan.  These concerns and views from the SPA form part of the basis of this IEE and are unanimous in this development considering that the pavement strengthening and runway extension was just time to correct the deteriorated condition of the current runway pavements. It will allow for increased air traffic and visitation from people within Papua New Guinea and overseas.  SPA Support is indicated for the project implementation.

84. Settlers have raised concern on trespassers who cross the airstrip and often they are accused of these crossings. The erection of the galvanized fencing has stopped trespassing into the airfield which is a safety concern for operating aircrafts.

85. Provision of employment and livelihood opportunities during the construction and operations phases of the project. The residents of the Kapiak compound reiterated that they are available for employment opportunities at all phases of the project implementation.

86. These concerns and other points of view have formed part of the basis of this IEE, supplemented as necessary by the consultants’ own observations. The participants of the Public Consultation were unanimous in their support for the proposed development and will not interpose any objections to its implementation.

C. Information Disclosure 87. In disclosing the environmental documents to the public, (i) NAC through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B-sensitive subprojects, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC-PIU will consult the public, particularly with project affected persons.

88. Disclosure of relevant environment safeguards documents will be in an appropriate form, manner, and language and at an accessible location to be understandable to the affected people and local stakeholders. During Tranche 1 & 2, NAC established arrangements with provinces for coordination with a Project Coordination and Monitoring Committee (PCMC) and/or through the office of the Provincial Administrator (PA). Same procedure will apply for Tranche 3 projects.

89. A PCMC is set up within respective provincial administrations and this committee will oversee all concerns and grievances from the local communities and affected parties. Some Provincial Administration prefers a committee to be established with the Provincial Administration through the Office of the PA. For SHP, this is set up through the Provincial Administrator, supported by the Provincial Lands Officer, District and Local Level Government Officer and other resource and service departments such as Agriculture and Livestock and Customs. In the villages, councillors are the linkages between the Local Level Government and their Wards and they deliberate on issues. This forms part of the grievance redress mechanism (GRM) as explained in Section G.

90. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to affected persons and communities regarding the requirements for land acquisition & Resettlement (LAR) and GRM.

VI. GRIEVANCE REDRESS MECHANISM

91. A GRM was established for CADIP during Tranche 1 and Tranche 2. The GRM to be implemented for Tranche 3 will reflect the steps and procedures already established but modify them to account for lessons learned. The GRM is a procedure for addressing environmental and social/land issues and concerns that may arise. During the course of the project it is possible that people may have concerns with the project’s environmental performance or social/land issues including the implementation of the project. Issues may occur during construction and again during operation. Any grievances dealing with construction and again during operation will need to be addressed quickly and transparently, and without retribution to the affected persons.

92. As noted in the previous section, NAC has an arrangement with provincial administrations through which grievances can be addressed. While NAC may have safety officers and operational managers at the Tranche 3 airport projects, they cannot be given the full responsibility of having to address grievances. They can however, only note and report to Provincial Administrations as partners in the provinces and/or through (i) an airport working committee, or (ii) the Provincial Coordinating & Monitoring Committee (PCMC). The airport working committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant Intra-Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

93. Where there are affected people for any airport development work, a grievance redress mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

94. Papua New Guinea Land Disputes Settlement Act establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process is established involving airport working committee/PCMC and appropriate community leaders and representatives. The NAC person on site such as a Safety Officer or the Operational Manager will be the first person to be contacted who will then liaise with airport working committee/PCMC to register, clarify and mediate potential issues.

95. The GRM will apply equally to the contractor who will be required to maintain a complaints registry recording complaints or issues raised and how they have been resolved. The registry will be subject to monitoring as part of Contractors’ Environmental Management Plan (CEMP) compliance checks.

96. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:  The mediator must meet with the disputing parties to resolve grievances within 2 – 14 days;  In the event of grievances over compensation claims that cannot be resolved through mediation at the local level, the airport working committee/PCMC and Provincial Lands Officer will hold the compensation amounts in trust and  Compensation will be paid in full upon final resolution of the case in the courts or other forum such as the Alternate Dispute Resolution process in accordance with the entitlements of the affected person. This must be completed within three months.

VII. ENVIRONMENTAL MANAGEMENT PLAN

97. Mitigation measures, environmental monitoring, and capacity development are required to minimize the environmental impacts in the design, construction and operational phases. The EMP provides the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate with the project’s impacts and risks). It will be necessary to update the EMP during the detailed engineering design phase. A condition of the proposed loan will be the adoption and enforcement of a CEMP to mitigate negative impacts associated with airport improvement activities. The EMP matrix developed to cover the expected impacts for the pavement strengthening and associated works at Vanimo Airport is provided in Table 3.

A. Institutional Arrangements 98. The overall MFF program will be oversight by a steering committee. The executing agency of the MFF Program will be the NAC. The PIU will be responsible for daily management and implementation of the projects comprising Tranche 3.

99. The NAC, through the PIU, will be the main agency/entity responsible in coordinating the implementation of the Environmental Assessment and Review Framework (EARF). This will include, but not be limited to; . ensuring that the EARF procedures are strictly adhered to . preparation of environmental assessments will be carried out in a timely and adequate manner . environmental monitoring and institutional requirements will be fully met, while . meaningful public consultations are carried out satisfactorily. . NAC will submit the categorization environmental assessments, and monitoring reports to ADB for review in a timely manner. Table 4 provides the responsibilities and authorities of key organizations involved in the implementation of the EARF. 100. The PIU is staffed with the national Environmental Officer (EO) and will be supported by an International Environmental Specialist (IES). The IES will be part of the NAC during the Project with the primary tasks to: (i) strengthen the environmental management of the Project during detailed design, bidding process, contract process, construction, and implementation, (ii) provide induction training to contractors prior to preparation and submission of the CEMP for each subproject. Provide assistance to EO and PIU for review and clearance of the CEMPs; (iii) supervise/monitor compliance with the approved CEMP of each subproject; (iv) undertake the necessary institutional strengthening including on-the-job training for the EO of NAC-PIU by giving major tasks to the EO in all of these activities under IES supervision; (v) prepare reports on environmental safeguards activities as required; and (vi) update the EARF and supervise and guide the environmental assessment process for projects to be implemented in the Tranche 3 as part of the PFR.

B. Task of Implementing Agencies

101. NAC-PIU. Table 3 sets out the Institutions responsible for implementing Safeguards Requirements in CADIP Tranche 3. NAC being the Executing Agency (EA) has the primary role of ensuring the Safeguard Measures and Issues are adequately covered. The Environment Officer (EO) is the focal person in providing feedback to environmental and social issues raised during the construction and operational phase of the project. He will be assisted by the International Environmental Specialist on an intermittent basis. On the ground in Momote, NAC’s Safety Officer will oversee daily operations of activities and can notify the EO of serious environmental noncompliance and the EO will visit to remedy the complaint.

102. ADB. ADB through the Papua New Guinea Resident Mission will provide guidance as to the submission of periodic monitoring reports from NAC that would meet ADB’s standards and guidelines before these are uploaded onto ADB website.

103. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the monitoring and progress of the project as per loan covenant.

104. Contractor. The Contractor is to submit a Contractors Environmental Management Plan (CEMP) for approval by NAC and ADB on the mitigation measures that it will take in the implantation of the project. This CEMP will be approved and used in the submission of regular reports to NAC who will submit to ADB for perusal and approval.

105. CEPA. CEPA as the overseers of the Environmental Act 2000 will be updated on the submission of this IEE and its coherence with similar categories which is an Environmental Inception Report. This will be noted and assessed for compliance and under new fee arrangements the NAC may be liable for an assessment fee leading to a permit for the sub project.

Table 2: Design, Construction and Operational Environmental Management Plan

MITIGATION INSTITUTIONAL MITIGATING MEASURES SIGNIFICANCE OF EFFECTS LOCATION POSSIBLE EFFECTS COSTS RESPONSIBILITY NOT SMALL MED MAJOR A. IMPACTS DUE TO AIRPORT LOCATION 1. Disruption of Surface

Water a. Changes in hydrological Airports and i) Impairment of aquatic ecology i) Dimension of drains X X NIL PIU/EO regimes surrounding areas ii) Drainage disrupted ii) Diversion of stream X NIL PIU/EO iii) Drinking water source iii) Use of grassed areas for runoff NIL PIU/EO b. Pollution as leaking Downstream from i) Impairment of aquatic ecology i) Location of stockpiles on paved areas X X NIL PIU/EO from construction areas ii) Drinking water source ii) Removal of stockpiles after construction NIL PIU stockpiles and spoils iii) Re-vegetation after construction NIL 2. Disruption of groundwater a. Changes in hydrological Airports and i) Impairment of yields X NIL PIU regimes surrounding areas b. Pollution by spoils Downstream from i) Impairment of drinking water X NIL PIU leachate construction areas 3. Changes in nearby land Surrounding areas I) Increase in vicinity of Airport X NAC/PIU values and nearby villages 4. Loss of aesthetics Vicinity of Airports i) Loss of aesthetic value of land i) Landscaping and re-vegetation X USD10,000 Contractor/PIU B. IMPACTS DUE TO DESIGN 1. Slope erosion Airport vicinities I) Installation of silt traps on all drains X Contractor/PIU i) Siltation of rivers affecting hydrology and water quality USD5,000

ii) Contractors to increase awareness of workers

POTENTIAL L OC ATI ON P OSS IBLE EFFE CTS MITIGATING MEASURES SIGNIFICANCE OF EFFECTS MITIGATION INSTITUTIONAL

IMPACTS COSTS RESPONSIBILIT NOT SMALL MED MAJOR Y 5. Slum creation Airport sites i) Slums forming in construction sites after i) Demolition of structures as part of X USD10,000 Contractors/PIU risks completion of works abandonment plan 6. Cultural Airport site and i) Social disruption i) Contractor to source labourers and workers X NIL Contractors/PIU differences adjacent villages from the nearby villages risk/social conflicts and settlements 7. Escape of Airports vicinities i) Health risks to residents of nearby communities i)Installation of oil and other traps on drains X NIL Contractors/PIU hazardous materials /villages ii) Development of safe storage areas and (cost included

Table 3: Institutional Responsibilities for implementing Safeguards Organization Implementation Responsibilities NAC –Project Implementation Prior to the submission of the Periodic Financing Request (PFR) Unit (PIU) for subsequent projects the NAC will: Environment Officer (EO) and  Prepare the environmental assessments (IEE), including an International Environmental Environmental Management Plan (EMP) for each subproject and Specialist (IES) submit to ADB and public disclosure.  Ensure that adequate public consultation has been undertaken with affected groups and local stakeholders review the environmental assessments and submit the IEE documents as required, to ADB.  Submit the necessary environmental assessments to ADB in sufficient time to permit the necessary disclosure by ADB.  Undertake the necessary actions to ensure environmental compliance with the GoPNG’s and ADB’s requirements; NAC –Project Implementation Prior to the commencement of civil works, the NAC will: Unit (PIU)  Submit any of the environmental assessments required for Environment Officer (EO) and regulatory approval of the CEPA and obtain approval, e.g., International Environmental environmental clearance, environmental permits. Specialist (IES)  Ensure that all regulatory clearances for the subproject that are obtained from the relevant Government authorities are submitted promptly to ADB.  Ensure that the required mitigation measures during construction, the IEE and the EMP are included in the bidding document of the subproject and that all bidding contractors have access to the environmental assessments and EMP.  Ensure that the EMP and all required mitigation measures during construction, including conditions stipulated in the CEPA's clearance or environmental permit, are included in all the contracts signed by the Contractor(s) with requirements to update the EMP in response to any unexpected impacts and that all selected contractors have agreed the to implement the full suite of environmental mitigation measures prescribed in the EMP.  Receive environmental safeguard clearance on subproject(s).  Provide EMP induction training to contractors;  Review and clear the contractors CEMP for each subproject NAC –Project Implementation During the implementation of civil works, the NAC will: Unit (PIU)  Ensure that a contractor’s environmental management plan Environment Officer (EO) and (CEMP) including all proposed mitigation measures and International Environmental monitoring programs and relevant provisions of the environmental Specialist (IES) assessments is updated as required, and is properly implemented by the contractors.  Monitor the implementation of CEMP and present the monitoring reports to ADB.  In case unpredicted environmental impacts occur during project implementation, inform ADB, review the CEMP with the contractor, and implement alternative environmental mitigation program.  In case a subproject changes in scope, inform ADB and reconfirm the environmental classification, determine whether a supplementary IEE study is required, and carry out the study including the requirement for information disclosure and public consultation;  Submit the requisite reports on progress with social and environmental compliance and implementing the CEMP as required by the CEPA and ADB.  Ensure that ADB be given access to undertake environmental due diligence for all subprojects. However, the NAC will have the main responsibility for undertaking environmental due diligence and

monitoring of all the subprojects. The due diligence report as well as monitoring reports on CEMP implementation, as required, will be systematically prepared and be made available to the public, if requested ADB During the implementation of Tranche 3, ADB will:  Regular reviews and approval of subproject IEEs.  Provide technical guidance to the NAC as needed.  Reviewing regular monitoring reports and officially disclosing the summary environmental assessments for selected subprojects (Category A and B sensitive) on the ADB website.  Review environmental assessment reports as a basis for subproject approvals. Disclose assessments of category “B sensitive” subprojects for 120 days via ADB websites (as required) before a PFR is submitted to ADB.  Monitor the EMP implementation, as required, and conduct due diligence as part of MFF reviews.  Provide assistance to NAC, if required, in carrying out its responsibilities and for building capacity for safeguard compliance.  Ensure that the NAC will conduct the required consultations with project affected groups and local NGOs in PNG, and that the NAC as project sponsor disclose relevant environment information on the project’s environmental issues in an appropriate form, manner, and language(s) accessible to those being consulted. Such information disclosure with affected people will be guided by the Public Communication Policy (2011). Contractors  Based on site specific conditions, prepare Contractor’s Environmental Management Plan (CEMP) for each site  Implement and report on CEMP as part of pavement strengthening and rehabilitation activities  Prepare monthly CEMP report as part of progress reports and submit to PIU. The report will also include the Monthly Accident Report and measures undertaken to address any non-compliance issues identified by the PIU (or CEPA). CEPA  Administration and enforcement of the Environment Act 2000 and its regulations as it pertains to the project  Identify whether EPs (with or without conditions) required for any identified site  Review IEE and other documentation required  Administer Contractor Waste Disposal permit applications and performance

106. The IES will be engaged intermittently for eight person-months during the Tranche 3 also in Tranche 4 period and will be assigned on an intermittent basis to undertake training and capacity building for environmental management in NAC and to guide the EO of PIU in preparing assessments, monitoring and reporting. The IES and EO will jointly be responsible for overall environmental management of Tranche 3. C. Monitoring and Reporting 107. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

108. Monitoring during construction will be the responsibility of the contractor and NAC (carried out by EO) and IES within the PIU. Monitoring will relate to compliance with construction contracts (including EMP measures and provisions), the state and health of

the nearby environmental resources, and the effectiveness of mitigation measures and complaints. Monthly progress reporting will include a summary of this monitoring submitted to the NAC on a regular basis (at least quarterly) and to ADB semi-annually.

109. The estimated cost for the monitoring plan is $25,000. The costs of the environmental mitigation plan will be part of the construction costs (Appendix A).

110. Table 5 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 6 states the roles and responsibilities for environmental monitoring. Table 7 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipment to be procured by the contractor or through specialised firms. Table 8 shows the summary of the environmental management costs including implementation and monitoring costs.

111. The PIU will be responsible for reporting progress of Tranche 3 to NAC and ADB. Monitoring of each contractor will cover monthly progress and CEMP implementation and compliance (including general good practice). A section on safeguards activities and compliance with the CEMP for each subproject will also be included in quarterly progress reports (QPR) prepared for NAC and ADB. 112. The reporting will be as per the following schedule:

 A report at the end of detailed design incorporating a section prepared by the IES and EO on how detailed design has reflected environmental impact avoidance or mitigation and climate resilience;  A monthly report prepared during construction by each contractor reported on progress and CEMP activities, issues and corrective actions,  A report prepared every 3 months (the QPR) by the PIU. The QPR will include a section on safeguards activities and CEMP compliance for each subproject and will summarize the monthly reports submitted by the contractors; and  A semi-annual safeguards monitoring report (prepared every 6 months) by the IES and EO. 113. The Project completion report will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the EARF and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

Table 4: Environmental Monitoring Plan

PARAQMETRES TO BE MITIGATING MEASURE MONITORED STANDARDS LOCATIONS1 DURATION FREQUENCY IMPLEMENT SUPERVISE PRE-CONSTRUCTION PHASE 1. Erosion, i) Drainage design Capacity sufficient for 80% of 30 Momote Airport Detailed Once at Design PIU siltation and ii) Use of gently sloping grass i) Drains are of sufficient quantity year maximum Design Detailed Contractor and size to accommodate flooding of surfaces Phase Design Phase waterways iii) Silt traps in all drains additional volume ii) Silt traps are of sufficient quantity and size to protect surrounding areas from siltation CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

1 Specific sampling stations will be defined during the conduct of the baseline survey before commencement of works

Table 5: Roles and Responsibilities for Environmental Monitoring

contractor’s NAC-PIU (by IES to commencement of each contract and 2.1 management, site agents with and EO) refresher orientation/briefing at least regards to all IEE and EMP yearly during construction period. requirements. Monitor the performance of environmental training by contractor and briefings and of the NAC-PIU (by IES Ongoing, prior to and during 2.2 environmental awareness of and EO) implementation of works and operation. Contractors staff, tool box talks and & refresher courses. Regular (monthly) monitoring and NAC-PIU (by IES Continuous throughout construction 2.3 reporting (quarterly) of contractor’s compliance with statutory and EO) period. environmental requirements Regular (monthly) monitoring and reporting (quarterly) of contractor’s NAC-PIU (by IES Continuous throughout 2.4 compliance with contractual and EO) construction period. environmental mitigation measures including EMP. Regular (monthly) monitoring and reporting (quarterly) of complaints NAC-PIU (by IES Continuous throughout 2.5 and responses or environmental and EO) construction period. mitigation measures Monitor adjustments to the EMP for NAC-PIU (by IES During all phases of the 2.6 unexpected impacts and the thorough and EO) Subprojects implementation of detailed EMP. Commissioning phase monitoring of facilities versus environmental NAC-PIU (by IES 2.7 At commissioning. contractual performance criteria. and EO) Check EMP compliance. 3 Operation and Maintenance Phase Post construction monitoring of Semi-annual up to 3 years after air/noise/water quality at any sites NAC-PIU (by completion of construction or until air, 3.2 where complaints about water quality EO) noise and water quality meets baseline from works were justified in conditions. construction phase.

VIII. CONCLUSION AND RECOMMENDATION 115. The project will cause short-term environmental disturbances associated with construction activity that will be mitigated by operational procedures during construction, within the framework of a contractor’s approved EMP in line with the EMP stated herein

(Table 5 above) to be supervised by the PIU.

116. Mitigation measures to prevent or minimize unnecessary impacts are also provided. Potential impacts and risks during construction were also characterized as short term and unnecessary impacts will be minimized through good construction management and housekeeping practices. An EMP containing impact mitigation and monitoring plan to mitigate the potential impacts has been prepared to ensure that the project will be implemented in an environmentally sound and sustainable manner.

117. Positive impacts to the local economy will accrue through new income earning opportunities for locals generated by demand for labour, women participation to semi- skilled during construction; and airport staffing and management arrangements, and through the creation of new non-aeronautical business opportunities in the terminal facilities and surrounding areas.

118. This IEE concludes that in the context of appropriate mitigating strategies described above, and the positive environmental benefits to flow from the Project, environmental impacts can be managed within acceptable levels. There are no significant environmental impacts needing further detailed study or EIA. All potential and associated impacts can be addressed through implementation of the mitigation measures as proposed in the IEE. Provisions will be made in the Project Budget to cover the environmental mitigation and monitoring costs.

APPENDIX A: ENVIRONMENTAL MONITORING PLAN

Table 6: Matrix of EMP for Vanimo Airport

Table 7: Summary of Costs for the Proposed Works

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000.00

Impacts During Construction 98,000.00 Sub-Total 128,000.00

MONTHLY 2 PARAMETER EQUIPMENT (US$) COST (US$) MONITORING (US$) Air and Noise One set of equipment for EO 900.00 15,800.00

Water Quality One set of equipment for EO 600.00 9,200.00

SUB-TOTAL 1,500.00 25,000.00 GRAND TOTAL 153,000.00

1Costs quoted are estimates and will be finalized upon completion of Detailed Design Phase (to be included in Bill of Quantities). Costs will be incorporated in total construction cost. 2Cost inclusive of equipment, transport, and laboratory analysis for Baseline survey before commencement of works, 12 months of construction period and 3 years operation phase (at six-month interval).

APPENDIX B: PHOTOGRAPHS

Photo 1: NW END OF RUNWAY LOOKING TOWARDS VANIMO HARBOUR

Photo 2: END OF PROPOSED RUNWAY EXTENSION AREA

Area is used as a dumping site with scattered banana plots.

Photo 3: LINED DRAIN FOR DRAINAGE AT NW END OF EXISTING RUNWAY

Photo 4: W END OF RUNWAY WITH UPGRADING TAKING PLACE

Photo 5: CONSULTATION WITH WEST SEPIK PROVINCIAL ADMINISTRATION

Photo 6: CONSULTATION WITH PEWI SETTLERS - VANIMO

9. Wewak Airport Initial Environment Examination

EXECUTIVE SUMMARY

III. An environmental assessment and review framework (EARF) has been prepared to guide environmental safeguards implementation for Tranche 3. In accordance with the EARF this Initial Environmental Examination (IEE) presents the environmental assessment of one of the project under Tranche 3 – Pavement Strengthening and Associated Works at the Wewak Airport, East Sepik Province of PNG. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Safeguard Policy Statement 2009 and the GoPNG Environment Act 2000. The key environmental impacts on the physical, natural and human environments have been assessed.

IV. The main findings of this IEE indicate that the impacts that will arise from Wewak Airport Runway Extension & Airside Works will be minimal and generally insignificant as the works only involve rehabilitation and improving the aircraft pavement and associated works within the existing airport boundary for duration of 18 months. The project is classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

V. The potential environmental impacts associated with the project particularly occur during the construction and operation phases which will typically involve:

VII. A Grievance Redress Mechanism set up in Tranche 1 and 2 will be used in Tranche 3 and the Provincial Administration is fully aware of its role. Public support during consultation for the project was unanimous and the Provincial Administration wanted the project to commence immediately as they see this as providing input into their overall Provincial Development Plan. The new market will provide opportunity for women to be able to market their goods to the travelling public.

VIII. The upgrading of the Wewak Airport is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the F100 aircraft, or similar.

I. INTRODUCTION

2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the subprojects under Tranche 3 – Pavement Strengthening, Runway Extension and Associated Works at the Wewak Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Sourcebook (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment.

3. The main purpose of this IEE is to identify impacts associated with the pavement strengthening and associated works of the Wewak Airport, Wewak Province (Figure 1) and mitigations required to address them.

A. Overview

4. The proposed investment program will entail the upgrading and rehabilitation of the following existing airports (Tranche 3): Wewak; Mendi; Kavieng; Vanimo, Kerema, Kiunga, Tari, Momote, Buka, Gurney, Wewak and Mt Hagen. The upgrading and improvement of these major domestic airports is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the runway, taxiway and apron capability to accept unrestricted operations by Fokker 100, Dash 8 and QF 400 aircrafts.

B. Environmental Regulatory Compliance

5. The environmental regulations of GoPNG are derived from the Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects that need environmental assessment as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Projects that likely to have significant adverse environmental impact (Level 2 and Level 3) are required to obtain an Environmental Permit (EP) from the Environment and Protection Authority (CEPA) following environmental assessment. The upgrading and rehabilitation of existing airports is not listed as Level 2 and Level 3 of the “Prescribed Activities”. However certain associated project activities commonly associated with upgrading and improvement works such as earthworks, surfacing, discharge of waste water, establishment of borrow pits, sourcing and extraction of aggregate materials from surface water courses are Level 2 activities that may require an EP depending on the duration and scale of those activities. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the subprojects to CEPA so that CEPA can decide whether any specific environmental requirements will be needed for the proposed airport upgrading and rehabilitation. Considering the government environmental requirements and ADB

1 Project 1 rehabilitation work was under the National Airports Corporation (CAA) and was the predecessor for NAC. Environmental Safeguard Sourcebook (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

C. Environmental Category of the Subproject

7. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Sourcebook (2012) Tranche 3 projects are classified as Environmental Category B that requires an IEE.

D. Objectives and Scope of IEE

8. The objectives of this IEE were to:

9. This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

II. DESCRIPTION OF THE PROJECT

Sub Location Proposed Development Works Project Wewak Wewak Airport Province A. Aircraft Pavements and Associated Airside Works

1. Construct 3.0m shoulders to extended Runway both sides; 2. Construct 3.0m shoulders to existing Runway both sides; 3. Prime and two-coat bituminous spray seal (10mm/7mm) and sand overcoat to constructed pavements including shoulders; and 4. Widen Flight Strip from 90m to 150m including top soiling and grassing;

B. Landside Works, Airfield Lighting and Electrical Works, and Associated Works

5. Installation of New PAPI Landing Aid System at western end of the runway including concrete base footings, trenching, electrical reticulation, inspection pits, flight test and commissioning; 6. Install Apron and Carpark Floodlights; 7. Construct Terminal Carpark extension including kerb, gutter and storm water drainage; 8. Construct Power House including electrical reticulation; 9. Supply and install 2 x 150kVA Generator set including electrical reticulation; 10. Construct 1 x 3 Bedroom Standard H65 House on high post with storeroom underneath in NAC compound for NAC Safety Officer’s Residence; 11. Construct 1 x lockable 4 bay Shed for Tractor, Slasher, Trailer and Hay Bailer; 12. Supply and deliver to site 1 x M95 Kubota 4WD 80HP Diesel Tractor with Canopy and 1 x Heavy Duty 2.40m dia Superior LX240 Slasher complete with connections to link to Tractor including Trailer and Hay Bailer; and 13. Construct new Airport Market with Security Fencing and gates including power supply, water tanks, and public toilet, carpark and security lights. 14. Supply, deliver, install and commission a new Petro Cube 6300L Diesel Fuel Tank including accessories

Note:

Allowance is made for other miscellaneous works including General and Preliminary items.

13. Wewak Airport is situated at situated at 03° 3501.78S 143°4009.07E in Wewak and is about 1.5km from Wewak Town, Provincial Headquarters of Wewak Province where banks, post office, business houses, hotels and guest houses are. Figure 1 shows the map of Papua New Guinea and location of Wewak Airport. Figures 2 and 3 shows the general layout plan and the aerial view of the existing Wewak Airport.

14. The airport serves the people of Wewak and provides for air transport services with its daily flights into the provinces and has been of importance for tourism, the South Seas Tuna Corporation, and Cocoa and Copra based businesses as well as other rental and hotels. motels and tourism destinations, amongst other business entities.

15. Wewak province receives between 1800 and 4400 mm per annum and it may be greater during the period of December to October. Wewak is one of the large province in Papua New Guinea with a land mass of approximately 43,700 km2 and its elevation ranges from sea level to over 3000m on the Torricelli and Prince Alexandra Range and corresponding temperature ranges from 23 – 300 C.

16. The existing bitumen runway is 1,595 metres long with a width of 45 metres and is aligned northwest/southeast along the Boram Bay. The airport land is at low elevation at 6 m ASL and is 350 metres to the coastline covering a total land area of approximately 10 hectares.

17. The airport land is flat (0 degree) running the length of runway from North West to South East. There are lined drains running parallel of the runway on both sides and these drain water down to the north western and south eastern ends where these reach tributaries of Boram Creek and Pukpuk Creek respectively. Grass is well maintained as with the other major airports in Papua New Guinea, although there is shrubs forest to the right of the taxi way and the hangers and terminal area.

18. The facilities in the existing Wewak Airport include the terminal building, NAC offices terminal and hangers and offices operated by Air Niugini, Travel Air, PNG Air and Missionary Aviation Fellowship (MAF). The MAF has allowed the Samaritan Fellowship to operate its water plane up the Sepik River to cater for sick and injured persons. There is a helicopter company that provides services to the mining, petroleum and other business houses in the East Sepik province. Wewak Airport’s sewerage system is a standalone system (septic tanks) and is not connected to the main sewer line.

19. The proposed changes to the airport include the new airport market and pavement strengthening. The airport market is built by NAC as part of its Community Service Obligation (CSO). Other instrumentation such as PAPI will be adjusted together with lighting along the runway and cone markers. During World War II, Wewak airport was one of the important air and marine bases for the Japanese Army and they received supplies from Madang. This was later captured by the Allied Forces who used its strategic location to their advantage in the WWII Pacific Campaign. After WWII, the airport was rebuilt to its current status.

Figure 2: AERIAL VIEW OF THE EXISTING WEWAK AIRPORT

20. Salient Features of the Project. The Proposal is to upgrade the Wewak Airport to make it safety complaint to cater for the increasing air traffic that could accommodate and be suitable for the operation of F-100 and related aircraft. A number of developments such as the South Seas Tuna Corporation Lion Processing Facility provide increased capacity for its workers to and from Wewak.

21. Wewak is also host to the Papua New Guinea Defence Force Moem Barracks and hence there is a lot of defense personnel travel to and from Wewak. Besides these are other new business ventures such as the Sepik Plain Oil Palm project where investors and workers are travelling in and out of Wewak besides other agriculture based developments such as Rubber at Gavian in Angoram. This has increased the capacity of workers and visitors travelling into Wewak. A substantial number of tourists also visit the province which has as array of carvings and artifacts along the Sepik River.

22. All proposed activity such as the new airport market and strengthening of the pavement and associated works are on the National Airports Corporation land. Activities will include the following;

� Strengthening existing Runway, taxiway and apron; � Widening of the existing flight strip to 150 metres; � Improvement to airside drainage system including construction of subsoil drainage and Open Lined Drains (OLD); � Install a Precision Approach Path Indicator (PAPI) lighting system including concrete base footings, trenching, electrical reticulation, inspection pits, flight testing and commissioning; � Widening runway strip to 150m wide � Construct reinforced concrete pad on 1 X F 100 aircraft parking bay; � Apply pavement markings and fuel resistant membrane on General Aviation Apron; � Construct Power House including electrical reticulation with 2 x 150kVA Generators; � A full listing of activities has been stated in Table 1.

23. The Wewak Airport re-development would involve earthworks as follows:

 Estimated materials and earthworks quantities:  Cut to stockpile 100mm topsoil for future re-use - 152,000m2  Excavation earthworks - 100,000m3  Pavement construction material (crushed base course) - 62,000m3  Topsoil will be used and/or be re-used for topsoil and grassing  Excavated in-situ material will be used in landscaping and or flight strip widening and grading.  All materials will be stockpiled at a designated location on the airside.  10m3 trucks shall cart material from source and stockpile on-site.  Contractor’s Site shall be located at the Airside (Area approx. = 100m x 50m).

III. DESCRIPTION OF EXISTING ENVIRONMENT

25. East Sepik province occupies 43,700 km2 in the northwest of PNG. The northern part contains the Wewak coastline plains and islands, the Torricelli Range and the Prince Alexander Range. To the south contains a large area of hills. The swamps and lakes of the Sepik River occupy the middle, and plains and flood plains cover the edges. The Sepik River is often inundated annually where water level can rise and fall by five metres.

26. The provinces borders with Madang, West Sepik and Enga provinces. Altitude ranges from sea level to over 3000 m on the Central Range. Average annual rainfall varies from 1800mm near Maprik to over 4000 mm near April River. There is a moderate to long dry season in the east of the province with the driest area being in the lower Sepik Valley around Angoram. The highest place where agriculture is practised is near Dreikikir, at 800 metres. Average annual rainfall varies from 1800 mm near Maprik, to over 4000 mm near April River.

27. Coffee and cocoa is grown in three of the four districts and cocoa is more dominant in Maprik although feeder roads are not properly maintained. This would need to be confirmed with the Department of Works in Wewak. The six districts in East Sepik are Ambunti-Dreikikir, Angoram, Maprik, Wewak, Wosera-Gaui, and Yangoru-Saussia2.

Figure 3 : MAP OF WEWAK PROVINCE

2 Hanson, L.W., Allen, B.J., Bourke, R.M. and McCarthy, T.J. (2001). Papua New Guinea Rural Development Handbook. The Australian National University, Canberra.

A. Physical Environment

28. Land Resource and Utilization. Wewak airport is aligned in a NW, SE direction and is about 350 metres off the coastline and is 6 metres ASL. The Airport is 1km out of town and connects to the main road running parallel to the airport to the town and also to Brandi High School, Boram Corrective Services and the Moem Army Barracks. Alongside the road opposite the airport are Motels and guest house targeting low budget guests and residential houses that are along the beach side. Alongside the airport is the Control Tower, NAC offices, terminals and hangers for PNG Air and Missionary Aviation Fellowship Air Niugini has only its terminal and offices.

29. The National Weather Services has an office close to NAC for monitoring weather and meteorology purposes. Besides that, the natural surroundings consist of remnants of low land forest areas where secondary forest vegetation have colonized the area.

30. Meteorology and Climate. All of PNG is tropical experiencing the northwest monsoon from December to March and the southeast monsoon from May to October. Wewak is three degrees from the equator and has elevations from sea level up to over 3000 m ASL.

31. Wewak airport temperature ranges from 300C (day) to 23oC (night). Humidity ranges from 60 to 92 %. There is occasional cloud covering and coverage varies up to 50% of the sky. Wind speed varies from 10 – 20 km/h and low about 5km/h. During the current El Niño period, there is minimal precipitation throughout the country and Wewak had lows of 93 mm during July to September and then a high of 270 mm in November and December.

32. In PNG the current El Niño/La Niña weather phenomenon brought about drought, high sea levels, extreme winds and extreme air temperatures which are already affect thousands of people in PNG. After the droughts, extreme rainfall events will bring about flooding and landslides and erosion will follow.

33. Topography, Geology and Soils. The geology and topography of Wewak can be stated and low sediment plains on the coast with mountain ranges at the back consisting of gabbro, diorite, basaltic and andesitic volcanic containing also limestone and thinly bedded sandstone/siltstone. The mountain ranges are the Torricelli and Prince Alexandra ranges which extend to Vanimo in the West Sepik province. Weathered of the volcanic gives rise to alluvial gold workings and most are found up in the Ambunti or April Salumei rivers and adjacent areas.

34. There are volcanic islands offshore such as Kairuru and Mussu Islands as well as Bam Island. Most of the airport area is underlined by silty soils consisting of entisols and inceptisols3 which are very young soils with little or no profile and moderately weathered soils. Grassland stretches right round the perimeter of the airport.

35. Mineral Resources. In the East Sepik province, alluvial gold is found up in Maprik and also in the Amanab and April Salumei River areas. Gold and copper mineralization is known and exploration began in the 1980s and continues up at Frieda River and adjacent areas. Exploration for both minerals at adjacent areas to the Frieda Copper prospect is current and ongoing. These are about 100km to the south west of the airport area.

36. Surface and Ground Water Resources. Wewak airport is bound by the Boram Creek on the north western side where there is a perimeter fence at that end. At the Pukpuk Creek end, a low perimeter fence occurs. Storm water runoff to both the northwest and southeast ends respectively through lined and unlined drains which run parallel to the airport runway.

37. There is no noticeable erosion area and most of the rain water percolates through

3 Bourke, R.M. and Harwood, T. (eds) (2009), Food and Agriculture in Papua New Guinea. ANU E Press, The Australian National University, Canberra.

the substrate and into ground water aquifer. No water quality was taken during the IEE investigation and surrounding areas are well drained. It has been also noted that runoff from the tributaries of the Boram and Pukpuk creeks does flood the runway area and this is an issue that will need to be addressed in future.

B. Biological Environment

38. Forest Resources. Wewak in the East Sepik province contains remnants of tropical rain forest and grass and foothill plains. Around the Boram airport are rain trees (Samanea saman) and the common grass (Thermada australias). The shrub area opposite the taxiway and apron consists of strands of tall pitpit grass (Miscanthus Floridulus and M. Giganteus) together with other smaller shrubs. There is no primary forest remaining containing rare or endangered species around the airport area.

C. Social-Cultural Environment

39. Population and Demography. Wewak, the Provincial Capital, had a population of 18,2304 and is increasing, brought about by rural to urban migration from the districts in search of a better life. This brings about squatter and social problem. Business houses in Wewak consist of Tang Mow Supermarkets among a number of Chinese Retailing and Hardware Businesses. Besides these are Farm Set, Ela and Boroko Motors franchise and PNG Power Station and warehouse. Public Motor Vehicles (PMV) bring in passengers from the six districts into Wewak on a daily basis for markets and purchase of goods for rural trades stores and school.

40. Cultural and Historical Sites, Schools and Housing There were no sites of cultural significance found near the area of the proposed development (Wewak Airport). The development is within the existing area already cleared and excavated and chances of finding any cultural objects are minimal.

41. Health and Sanitation The greatest health concern in PNG is Malaria occurring a quarter of Disability Adjusted Life Year (DALY) (NDOH 2010). This is followed by pneumonia, accidents and injury, chronic respiratory disease and maternal death. AIDS/HIV has been a disease of possible epidemic proportions although the inaccurate data do not provide a total prevalent figure between the target age group of 25 -34 in males and 20 – 34 in females. Most of these high occurrences are on the mainland provinces of Papua New Guinea and Wewak recorded 0.59% (~ 167) in 20085.

IV. SCREENING ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

42. This section provides an assessment of the likely impacts associated with the pavement strengthening and associated works and ways to mitigate and/or manage them. The works will not result in any significant changes in environment beyond the existing airport boundaries. The assessment focuses on pre-construction, construction and operational stage impacts.

A. PRECONSTRUCTION (AFTER SCREENING PARAGRAPH)

43. A number of activities will occur during the preconstruction phase where there is i) the Establishment of Contractors Site and Facilities, ii) Constructions Workers Accommodation and iii) Stockpiling of Construction Material.

4 http://population.mongabay.com/population/papua-new-guinea/2083537/wewak. Accessed 15 1 16. 5 www.nac.org.pg 2007 Annual Report.

44. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities.

45. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public Relations Officer is tasked to ensure that these do not occur.

1. Establishment of Contractors Site and Facilities

46. The contractor’s work site establishment (inclusive of stockpiling) will be located outside of the airside and require an area of approximately 100 m x 50 m. Inappropriate disposal of wastewater and effluent from rest room and solid waste can cause pollution. Pollution anticipated to be generated during construction is expected to include day-to-day production of solid waste, domestic sewage, and oil and chemical wastes. The storage and handling of petro- chemicals will require careful management; an important part of the environmental management plan (EMP) will be requirement for an emergency response plan for spills and accidents.

47. The contractor’s depot area and yard/offices will be provided with sanitary disposal facilities that will address the generation of domestic wastewater and proper solid waste management. Silt traps shall be established around areas identified for clearing and drainage works to prevent siltation of any surrounding waters. During the pre-construction and construction period an adequate supply of an appropriate quality of water will be provided for both domestic (for the contractor’s depot area) and other purposes (construction activities i.e. concrete mixing, clean-up of machineries and washing of trucks). Mitigation measures include;

2. Construction Workers Accommodation

48. Establishment of contractors’ camp site will also comply with mitigation measures of waste management. Otherwise, contractor will rent a small compound for the skilled staff (10- 15 persons) recruited for the construction works such as the Pavements Supervisor and Foreman, Mechanical Supervisor and Plant Operations Supervisor, etc. All other skilled and unskilled personnel which are estimated at 30- 40 persons shall be sourced locally and would not require housing in campsite.

3. Stockpiling of Construction Materials

49. The development works (i.e. pavement strengthening, flight strip widening, construction

of shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and laying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the contractor’s environmental management plan (CEMP) with cleanup initiatives undertaken as required. Mitigation measures include;

B. CONSTRUCTION

50. The Constructions phase has a number of activities or induced activities such as (i) Clearing and Grubbing, (ii) Pavement Construction, (iii) Building Construction, (IV) Storage and Handling of Fuel, Oil and Other Chemicals, (V) Health and Safety, (VI) Social Impacts, (Vii) Noise impacts and Air Quality and (VIII) Traffic Impacts.

51. All these activities will be confined to the construction area. The physical and biological impacts will occur only within the shrubs and trees that will be cleared for the new terminal and market buildings. There is the possibility of fuel, oil and other chemicals that will into the water ways although there is no noticeable water way in the vicinity of the construction area. The limestone substrate allows for runoff to permeate through.

52. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the Environmental Management Plan.

1. Construction Activity

53. Clearing and Grubbing. All grubbing of topsoil, clearing of grass areas and trees/shrubs, old fences and culvert materials clearance will require stockpiling in controlled areas during construction. All topsoil, grass and culvert clearance will be cleared and stacked to edges of the fenced area to allow for re-vegetation or taken to designated sites for reuse. Exposure of soil can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation and management measures include:

54. Pavement Construction. Excavation and disposal of the existing pavement can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways

if works are undertaken in the rainy season. All construction spoils including solid and coal tar wastes and empty containers from the work areas should be removed from site and transported to the public waste disposal area. The projected duration of this impact is short- term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation measures include:

55. Building Construction. Building construction such as airport terminal and NAC staff house will commence upon completion of the sub-ground service activities. Building construction shall occur in concurrence with runway pavement upgrading. Mitigation measures include:

2. Storage and Handling of Fuel, Oil and Other Chemicals

56. The use of equipment and plant during the works will require usage, storage and handling of fuel, oil and other materials. Subsurface water resources near the selected subproject road sections could be anticipated to be contaminated by fuel and chemical spills. The following mitigation measures are included in the EMP to reduce the levels of impact associated with such effects:

3. Health and Safety

57. During construction activities, work sites, traffic, and operation of equipment, plants and vehicles can pose health and safety risks for workers and the community. Health and safety codes of PNG and World Bank Group’s Environment, Health and Safety Guidelines (as per the SPS) will apply at all sub-project sites. Measures to mitigate risks include;

4. Social Impacts During Construction

58. The presence of a construction workforce can create social impacts such as risk of spread of communicable diseases (such as STIs and HIV) and create social disruption as a result of conflicts between workers from outside and local people. The workforce required for the pavement construction and associated works will be relatively small but wherever possible local people should be employed.

59. The contractor for Wewak airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Wewak return to their original place of residence to avoid impacts from informal migration.

5. Noise Impacts and Air Quality

60. Air and noise pollution may be created by earthmoving, operation of heavy equipment and plant, transportation of materials to and from the site, and general works in the dry season generating dust and exhaust fumes such as Carbon Monoxide.

61. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Wewak airport is located in a busy area with noise coming from all moving vehicles along the airport road to the JANT timber mill factory but away from sensitive receivers (schools and hospitals), although there is some residential areas adjacent on the eastside of the airport and the impacts can be reduced to negligible levels by;

6. Traffic Impacts

62. The need to transport materials to and from the site can cause traffic congestion if not managed properly. The contractor shall be required to prepare a traffic management plan as part of the EMP to demonstrate how construction traffic can be handled during the works in order to minimize impacts on transportation networks in the vicinity of the sites.

C. OPERATIONAL

63. At the completion of construction work, all materials will be removed or disposed of and the completed works will be in place. The only impact during the operational phase is the noise impacts which will be for the duration of approaching and landing aircrafts.

64. Operational Stage Issues. Aircraft noise emissions, whilst considered only a minor issue at present, can increase with increasing flight frequency in the future operation of the airport, and need to be proactively managed. The problem can mostly be ameliorated by the careful location of ground running, and by the times these activities are undertaken. Occupational and residential exposure to aircraft noise is expected to increase over time; however, the noise impacts will only be for very short duration during aircraft take-off and landing only. It is not a concern for the contractor at this stage.

65. Aircraft ground operating noise will require management negotiated agreements between airlines, NAC and the local communities on times, frequency and locations of operations. Noise from aircraft in flight requires addressing in the context of the EMP such as plants locate plant s away from aircrafts parking/approach area. NAC must prepare, regularly update and promulgate noise exposure forecasts in accordance with the ANZECC 1992 or Australian Noise Exposure Forecast. This shall be NACs operational matter.

66. NAC, airlines and other aviation operators will introduce, under the Civil Aviation Regulations, a formal Safety Management System. For all airports, this will address both temporary safety risks during construction, and ongoing safety risks during normal operations. This system will also address management of environmental impacts of accidents and safety management processes.

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

67. As required by the ADB Safeguard Policy Statement (SPS) 2009, discussions were held with representatives from the Wewak Provincial Administration on 9/11/2015. In addition, discussions were with the neighboring Landowner Association to inform them on the proposed developments.

68. The East Sepik Provincial Administration (ESPA) was aware of the development and was consulted from the initial design and consideration of the project. Hence the discussion again with the representative of MPA reiterated their support for the project as it would increase economic activity into the province.

69. ESPA are interested to see how the scope of work for the Airport would assist in their plans. Among the comments mentioned for the proposed development are as follows:

(i) ESPA welcomes the building of a new market as well as pavement improvement works. As all the work is on NAC land, there does not seem to be any land issue. (ii) To add to the above, the nearby villages will benefit as travelling public are able to purchase goods which they may have missed out in getting to the airport. (iii) Provision of employment and livelihood opportunities during the construction and operations phases of the project. The residents of nearby community expressed their desire for employment in all phases of the project implementation. They also informed the team that labor for both construction

and maintenance/operation stages are available in their community.

71. Information Disclosure. In disclosing the environmental documents to the public, (i) NAC through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B-sensitive subprojects, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC-PIU will consult the public, particularly with project affected persons.

VI. GRIEVANCE REDRESS MECHANISM

The airport working committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant Intra-Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

77. Where there are affected people for any airport development work, a grievance redress mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

80. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:

VII. ENVIRONMENTAL MANAGEMENT PLAN

A. Institutional Arrangements

83. The NAC, through the PIU, will be the main agency/entity responsible in coordinating the implementation of the Environmental Assessment and Review Framework

(EARF). This will include, but not be limited to:

B. TASK OF IMPLEMENTING AGENCIES

88. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the monitoring and progress of the project as per loan covenant.

Table 2: Design, Construction and Operational Environmental Management Plan

MITIGATION INSTITUTIONAL MITIGATING MEASURES SIGNIFICANCE OF EFFECTS LOCATION POSSIBLE EFFECTS COSTS RESPONSIBILITY NOT SMALL MED MAJOR A. IMPACTS DUE TO AIRPORT LOCATION 1. Disruption of Surface

Water a. Changes in hydrological Airports and i) Impairment of aquatic ecology i) Dimension of drains X X NIL PIU/EO regimes surrounding areas ii) Drainage disrupted ii) Diversion of stream X NIL PIU/EO iii) Drinking water source iii) Use of grassed areas for runoff NIL PIU/EO b. Pollution as leaking Downstream from i) Impairment of aquatic ecology i) Location of stockpiles on paved areas X X NIL PIU/EO from construction areas ii) Drinking water source ii) Removal of stockpiles after construction NIL PIU stockpiles and spoils iii) Re-vegetation after construction NIL 2. Disruption of groundwater a. Changes in hydrological Airports and i) Impairment of yields X NIL PIU regimes surrounding areas b. Pollution by spoils Downstream from i) Impairment of drinking water X NIL PIU leachate construction areas 3. Changes in nearby land Surrounding areas I) Increase in vicinity of Airport X NAC/PIU values and nearby villages 4. Loss of aesthetics Vicinity of Airports i) Loss of aesthetic value of land i) Landscaping and re-vegetation X USD10,000 Contractor/PIU B. IMPACTS DUE TO DESIGN 1. Slope erosion Airport vicinities I) Installation of silt traps on all drains X Contractor/PIU i) Siltation of rivers affecting hydrology and water quality USD5,000

ii) Contractors to increase awareness of workers

Table 3: Institutional Responsibilities for Implementing Safeguards

Organization Implementation Responsibilities NAC –Project Prior to the submission of the Periodic Financing Request (PFR) for subsequent Implementation projects the NAC will: Unit (PIU)  Prepare the environmental assessments (IEE), including an Environmental Environment Management Plan (EMP) for each subproject and submit to ADB and public Officer (EO) disclosure. and  Ensure that adequate public consultation has been undertaken with affected groups International and local stakeholders review the environmental assessments and submit the IEE Environmental documents as required, to ADB. Specialist (IES)  Submit the necessary environmental assessments to ADB in sufficient time to permit the necessary disclosure by ADB.  Undertake the necessary actions to ensure environmental compliance with the GoPNG’s and ADB’s requirements; NAC –Project Prior to the commencement of civil works, the NAC will: Implementation  Submit any of the environmental assessments required for regulatory approval of Unit (PIU) the CEPA and obtain approval, e.g., environmental clearance, environmental Environment permits. Officer (EO)  Ensure that all regulatory clearances for the subproject that are obtained from the and relevant Government authorities are submitted promptly to ADB. International  Ensure that the required mitigation measures during construction, the IEE and the Environmental EMP are included in the bidding document of the subproject and that all bidding Specialist (IES) contractors have access to the environmental assessments and EMP.  Ensure that the EMP and all required mitigation measures during construction, including conditions stipulated in the CEPA's clearance or environmental permit, are included in all the contracts signed by the Contractor(s) with requirements to update the EMP in response to any unexpected impacts and that all selected contractors have agreed the to implement the full suite of environmental mitigation measures prescribed in the EMP.  Receive environmental safeguard clearance on subproject(s).  Provide EMP induction training to contractors;  Review and clear the contractors CEMP for each subproject NAC –Project During the implementation of civil works, the NAC will: Implementation  Ensure that a contractor’s environmental management plan (CEMP) including all Unit (PIU) proposed mitigation measures and monitoring programs and relevant provisions of Environment the environmental assessments is updated as required, and is properly Officer (EO) implemented by the contractors. and  Monitor the implementation of CEMP and present the monitoring reports to ADB. International  In case unpredicted environmental impacts occur during project implementation, Environmental inform ADB, review the CEMP with the contractor, and implement alternative Specialist (IES) environmental mitigation program.  In case a subproject changes in scope, inform ADB and reconfirm the environmental classification, determine whether a supplementary IEE study is required, and carry out the study including the requirement for information disclosure and public consultation;  Submit the requisite reports on progress with social and environmental compliance and implementing the CEMP as required by the CEPA and ADB.  Ensure that ADB be given access to undertake environmental due diligence for all subprojects. However, the NAC will have the main responsibility for undertaking environmental due diligence and monitoring of all the subprojects. The due diligence report as well as monitoring reports on CEMP implementation, as required, will be systematically prepared and be made available to the public, if requested

ADB During the implementation of Tranche 3, ADB will:  Regular reviews and approval of subproject IEEs.  Provide technical guidance to the NAC as needed.  Reviewing regular monitoring reports and officially disclosing the summary environmental assessments for selected subprojects (Category B sensitive) on the ADB website.  Review environmental assessment reports as a basis for subproject approvals. Disclose assessments of category “B sensitive” subprojects for 120 days via ADB websites (as required) before a PFR is submitted to ADB.  Monitor the EMP implementation, as required, and conduct due diligence as part of MFF reviews.  Provide assistance to NAC, if required, in carrying out its responsibilities and for building capacity for safeguard compliance.  Ensure that the NAC will conduct the required consultations with project affected groups and local NGOs in PNG, and that the NAC as project sponsor disclose relevant environment information on the project’s environmental issues in an appropriate form, manner, and language(s) accessible to those being consulted. Such information disclosure with affected people will be guided by the Public Communication Policy (2011). Contractors  Based on site specific conditions, prepare Contractor’s Environmental Management Plan (CEMP) for each site  Implement and report on CEMP as part of pavement strengthening and rehabilitation activities  Prepare monthly CEMP report as part of progress reports and submit to PIU. The report will also include the Monthly Accident Report and measures undertaken to address any non-compliance issues identified by the PIU (or CEPA). CEPA  Administration and enforcement of the Environment Act 2000 and its regulations as it pertains to the project  Identify whether EPs (with or without conditions) required for any identified site  Review IEE and other documentation required  Administer Contractor Waste Disposal permit applications and performance

C. Monitoring and Reporting

92. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

94. The estimated cost for the monitoring plan is $34,000. The costs of the environmental mitigation plan will be part of the construction costs (Annex A).

95. Table 4 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 5 states the roles and responsibilities for

environmental monitoring. Table 6 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipment to be procured by the contractor or through specialized firms. Table 7 shows the summary of the environmental management costs including implementation and monitoring costs.

97. The reporting will be as per the following schedule:

98. The Project Completion Report (PCR) will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the EARF and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

Table 4. Environmental Monitoring Plan

PARAQMETRES TO BE PHASE/IMPACT MITIGATING MEASURE MONITORED STANDARDS LOCATIONS1 DURATION FREQUENCY IMPLEMENT SUPERVISE PRE-CONSTRUCTION PHASE 1. Erosion, i) Drainage design Capacity sufficient for 80% of 30 Momote Airport Detailed Once at Design PIU siltation and ii) Use of gently sloping grass i) Drains are of sufficient quantity year maximum Design Detailed Contractor and size to accommodate flooding of surfaces Phase Design Phase waterways iii) Silt traps in all drains additional volume ii) Silt traps are of sufficient quantity and size to protect surrounding areas from siltation CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

1 Specific sampling stations will be defined during the conduct of the baseline survey before commencement of works

Table 5: Roles and Responsibilities for Environmental Monitoring

Implementation Implementation No Environmental Monitoring Tasks Responsibility Schedule 1 Design Phase Disclosure of subprojects to CEPA 1.1 NAC-PIU, EO Prior to construction and monitor permitting. Audit project bidding documents to ensure IEE and EMP included in bids NAC-PIU (by IES 1.2 Prior to issue of bidding documents. and environmental criteria are and EO) included in evaluation. 2 Construction Phase First orientation/briefing 1 month prior Orientation and briefing of to commencement of each contract management, site agents NAC-PIU (by IES 2.1 contractor’s and refresher orientation/briefing at with regards to all IEE and EMP and EO) least yearly during construction requirements. period. Monitor the performance of environmental training by contractor Ongoing, prior to and during and briefings and of the NAC-PIU (by IES 2.2 implementation of works and environmental awareness of and EO) operation. Contractors staff, tool box talks and & refresher courses. Regular (monthly) monitoring and NAC-PIU (by IES Continuous throughout construction 2.3 reporting (quarterly) of contractor’s compliance with statutory and EO) period. environmental requirements Regular (monthly) monitoring and reporting (quarterly) of contractor’s NAC-PIU (by IES Continuous throughout 2.4 compliance with contractual and EO) construction period. environmental mitigation measures including EMP. Regular (monthly) monitoring and reporting (quarterly) of complaints NAC-PIU (by IES Continuous throughout 2.5 and responses or environmental and EO) construction period. mitigation measures Monitor adjustments to the EMP for NAC-PIU (by IES During all phases of the 2.6 unexpected impacts and the thorough and EO) Subprojects implementation of detailed EMP. Commissioning phase monitoring of facilities versus environmental NAC-PIU (by IES 2.7 At commissioning. contractual performance criteria. and EO) Check EMP compliance. 3 Operation and Maintenance Phase Post construction monitoring of Semi-annual up to 3 years after air/noise/water quality at any sites NAC-PIU (by completion of construction or until air, 3.2 where complaints about water quality EO) noise and water quality meets from works were justified in baseline conditions. construction phase.

VIII. CONCLUSION AND RECOMMENDATION

ANNEX A: ENVIRONMENTAL MONITORING PLAN

Table 6: Matrix of EMP for Wewak Airport

Table 7: Summary of Costs for the Proposed Works

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000

Impacts During Construction 98,000.00

Sub-Total 128,000.00

MONTHLY MONITORING 2 PARAMETER EQUIPMENT (US$) COST (US$) (US$)

Air and Noise One set of equipment for EO 900.00 21,200.00

Water Quality One set of equipment for EO 600.00 12,800.00

SUB-TOTAL 1,500.00 34,000.00

GRAND TOTAL 162,000.00

ANNEX B: PHOTOGRAPHS

Photo 1: Apron Area with the Defence Force Hanger to the right

Photo 2: Apron area with Air Niugini Terminal in the Background

Photo 3: Consultation with East Sepik Provincial Administration

Photo 4: Existing Runway looking NW to Boram Creek