Public Disclosure Authorized Public Disclosure Authorized

VITT

"at

,ItI

i~~~ 'Nbl -t-' > b,3g Public Disclosure Authorized

'i '' : ~~A ,,,N .W f t4w - I; 'slANt^} LLS I e.-I], IAI Public Disclosure Authorized OZZOLOOZA V3 d(IVS ENVIRONMENTAL ASSESSMENT

CONTENT

Page EXECUTIVE SUMMARY 1 1. INTRODUCTION 4 2. PROJECT DESCRIPTION 7 3. LEGISLATION, REGULATION, INTERNATIONAL 10 AGREEMENTS; CODES OF PRACTICE AND POLICIES 4. BASELINE ENVIRONMENTAL SURVEY 19 5. POTENTIAL ENVIRONMENTAL IMPACTS 51 6. BIBLOGRAPHY 66 7. APPENDICES 67 ACRONYMS USED

ANZ - Australian & New Zealand Banking Group BEDP - Basic Education Development Project BSP - Bank of South Pacific CBO - Community Based Organisations CITES - Convention on International Trade in Endangered Species of Flora and Fauna CNA - Conservations Needs Assessment CODE - College of Distance Education CW - Critical Watershed DAL - Department of Agriculture & Livestock DEC - Department of Environment & Conservation EMP - Environmental Management Plan ESMF - Environmental and Social Management Framework FFB - Fresh Fruit Bunches IEA - Intemational Education Authority HPC - High Priority for Conservation LLG - Local Level Government KGH - Kimbe General Hospital LSS - Land Settlement Scheme MP - Marine Priority NAQIA - National Agriculture Quarantine and Inspection Authority NBPOL - New Britain Palm Oil Ltd NGO - Non-Governmental Organisation OPIC - Oil Palm Industry Corporation PNGOPRA - PNG Oil Palm Research Association Inc. RSPO - Roundtable on Sustainable Palm Oil QABB - Queen Alexandra Birdwing Butterfly SADP - Smallholder Agriculture Development Project SMK - Salim Moni Kwik VHPW - Very High Priority Wetland VOP - Village Oil Palm WMA - Wildlife Management Are 153e 1S6 IS9- * 144' 147 1So

JOId- (iFCI UA\PAPUA

Pr| ;/ri !, INEW GUINEA c

i .a. , * E^, *,Intermrrotloa boundtaryi Provi, *I drncoary 7 Tin Main road.. Islands mau Si Martthfis Gsrolp National Capital r - Mar r o - i I FAST SUPIK Amr -ar, W 41 . Provmce Capital O n ' l i C auang ' ,"'. * Town, village + Airport Y' t '' - ),.. ,- a Tango T- -> Altape 's' 'r. -= _AN>Island.,s rck w- IS Reef Amranab

0 Aonl50J,; 10 %,15D fNDN,Z[ zrx 2bt / M |< I I I J 6 - o5lvl*---$A.T-tnr n .,-t Q nG I IL Xl -u-. _1LR.i , I fi2ll-kJ I-< X gra /sa , - Koeo- ______Teiefo mrnil-.. .o ak r_ -' .' MadangMio S E

,. F''> ( cUeA-.ut , eh,. n c'"A,a' Fai

...-L SJ,Fin_hnaler, bel - __ - ~ .*.J Kt murrt ,-,K,at'r. i |utiL 4-ij;j &c; I IOro -rt,ni ~ (eNrn'i ari d ,' -

C CD Nit I', BA SOLOMON ISL-AN[DI%I r Port M

I ...... J.ne IPxqu:s *iA S 11r.i w. | E TF P. ,r i SE

-1 M.of J A Kup,arlT'R - IN-!-

141' 4 J6 l FIGURE 2: Oro Province roads and villages

-ep

Iu

I a)

-s0-E

-- 0 -- z i

i i I I Ii I

i C)

A(A

0. F. . r

.CD

0

Bill P mic Mea T a-

>~~~~~~oln 1 Pioec A3 3dlaeajc re

'I- -

s~ CD

X k It e SADPgn .

,tr . M o W ; .t t w ; Hoskins and Bialla Project Aretas 3

:S'N - ' a 4'*t . - 'Februjary 2rJ07 rS,

Rivers

Boundry between - OPICproject areas I

I

I

I

i I I I i i

I

ii i i i i ENVIRONMENTAL ASSESSMENT

Executive Summary:

The Smaliholder Agriculture Development Project (SADP) is an initiative of the PNG Government, operating through the Oil Palm Industry Corporation (OPIC); and partly financed through the World Bank.

The program envisages the provision of an IDA loan to the Government of Papua New Guinea, to encourage smallholder rural development activities.

More particularly; the program envisages 3 components vis;

* Smallholder Productivity Enhancement.

* Local Governance and Community Participation.

* Project Implementation and Institutional Support.

The program is designed for implementation in both the Oro and West New Britain Provinces.

As a part of the World Bank loan approval processes a number of environmental studies are required. These include an Environmental Assessment (this document) prepared to both World Bank standards and to suit the PNG Department of Environment & Conservation requirements; An Environmental Management Plan is required to address the resolution of Environmental Issues to be faced in the implementation of the program (component I - being Oil Palm Planting and roading activities) and an Environmental & Social Management Framework (ESMF) for the component 2 activities (non specified activities implemented by LLGs in the project area).

These 3 reports are supplied within this package.

Douglas Environmental Services, an Environmental Consultancy group based in Port Moresby, PNG was selected to carry out these relevant tasks.

The tasks were divided into 4 Sub programs

1. Field inspections of existing and potential Smallholder Oil Palm areas in Oro and West New Britain Provinces. This field work included consultation on site, or subsequently by telephone with interested parties in both provinces. Field data on Environmental Baseline and potential Environmental Impacts was also collected.

2. A workshop held in Port Moresby with Industry leaders, Government officials, interested NGOs and other stakeholders. The purpose of the workshop was to identify issues that needed study in the preparation of the Environmental Assessment and

I other environmental (and social) documents. A separate report on the workshop and the results of the field visits to Oro and to West New Britain was produced.

3. Additionally, a detailed study was carried out at the time of the field visits looking at the impact that existing Oil Palm activity was having on freshwater quality and stream health in the project areas. This was done by the use of a specialist freshwater ecologist - Steven Moore - from New Zealand Landcare - Steven specializes in the examination of Stream Health using freshwater invertebrates as indicators of Stream Health. His study (see separate report) shows that existing Oil Palm operations are having no discernable adverse effect on freshwater quality in these two provinces. His report provides recommendations for future monitoring techniques and frequencies. A poster on the use of such invertebrates for monitoring freshwater stream health was also provided within the Environmental Assessment.

4. Finally an Environmental Assessment was prepared (along with supporting documents)

The World Bank environmental requirements are satisfied if the Environmental Assessment (this report) is judged adequate and that relevant operational requirements identified in the EA are adequately implemented.

A review of the PNG Environmental Legislation has been carried out. The Department of Environment & Conservation has indicated in writing that no environmental consents are needed for this program. However there is an overriding environmental responsibility in a "duty of care" that may require environmental consents to be obtained if 'Environmental Harm' occurs during the implementation of the program.

DEC has some Environmental Codes of Practice, including "Roads and Bridges' that are applicable to this program. OPIC has its own environmental practices, utilized when new Oil Palm sites are chosen. This guideline (and its implementation) has been reviewed in the EMP attached to this Environmental Assessment.

There is a range of Conservation Legislation and International Agreements that will potentially influence the selection of individual Oil Palm Planting sites. For the most part these high conservation value sites can be identified and necessary steps taken during the site selection process.

The Chapter on Baseline Environmental Values presents discussion on physical, biological and social values in both provinces.

The Chapter on potential Environmental Impacts predicted for Oil Palm activities in this program is largely repeated in the discussion within the Environmental Management Plan.

Significant environmental issues to be planned for in the implementation of the program are:

* Avoiding risk to the Queen Alexandra Birdwing Butterfly and its habitat (Oro Province); and

2 * Avoiding risk to a significant number of both formally protected and informally identified high conservation/tourist value sites (West New Britain province)

Other environmental issues identified include:

* Integrated Pest Management * Protection of Community Resources such as water supply, gardens, etc. * Management of Road Maintenance activities and their Environmental Impacts * Erosion and Sedimentation Control * Fertilizer Use

Most of these risks can be limited by adequate forward planning and ongoing monitoring of environmental impacts during the implementation phase of the project.

The Environmental Management Plan (EMP) provides specific recommendations to manage environmental issues relating to the Oil Palm and associated roading activities, while the ESMF covers these topics (in less detail) for the community enhancement program (Component 2). Specific recommendations are made within the EMP for environmental resources needed to ensure that the mitigation strategies are carried out.

3 1. Introduction:

1.1 Background:

The planting of oil palm has a long history in PNG, starting with plantings in the Rai coast of the Madang Province in 1894-5 (Curry et al, 2002). The NES (nuclear estate and smallholder) model was introduced in the 1960s and has proven to be the most successful agricultural crop for the areas in which it is grown. The project inception environmental report (2003) identified key issues which contribute to the success of oil palm as a smallholder crop viz;

* The produce is picked up at farm gate * There is a regular secure income, either fortnightly or monthly' * Establishment of VOP blocks ensures road development and maintenance2 * Oil palm is not an easily stolen product (weight for value) * It is easily grown and maintained

It is the positive issues outlined above that have caused many smallholders to change their agricultural production from other crops such as coffee and cocoa to oil palm. The (2003) report also identified negative issues related to smallholder oil palm plantings, these were stated as: * Non-collection of FFB largely due to deterioration of roads which have often not been planned and certainly not maintained by Provincial governments. * Social problems associated with land tenure, migration of people from outside, either planned (as with the initial LSS concept) or as a result of the success of the oil palm, increase in population over time within a limited land area available under lease and general social disintegration associated with a developing economy which has no welfare system. * Complicated arrangements for ownership, particularly with LSS blocks but now extending to VOP blocks.

The Project has been designed in response to stakeholders expressed needs for a more sustainable road network within which growers will have minimum disruption to the collection of the oil palm Fresh Fruit Bunches (FFB). The Project also contains a small component which is designed to assist local level participatory planning and community involvement in decision making processes. A detailed project description is given in section 2 of this report.

The Environmental Assessment (EA) has been commissioned by the Oil Palm Industry Corporation to address any potential environmental impacts that might arise during the implementation phase of the Smallholder Agriculture Development Project (SADP).

' Directly into the block holders bank account, or by cheque, a key consideration and not available with other smallholder crops. 2 SADP has been designed to ensure that a sustainable road maintenance fund is established.

4 OPIC has also commissioned a Social Assessment of the Project in order to address social issues outlined above.

1.2 Papua New Guinea Legislative Requirements:

The EA is not a requirement of the Papua New Guinea (PNG) Department of Environment and Conservation (DEC) which has determined that the project is not a prescribed activity under the Environment Act 2000 because it is an existing project and any new Village Oil Palm Blocks are only 2 ha in area and scattered along existing roads which will be upgraded under the Project. Details of PNG environmental legislation are further discussed in section 3 of this report and the letter of response to OPIC's "notification of intention to carry out work on the Environmental Assessment3", is appended.

The letter from DEC does contain a note of caution however, and this EA and associated documents which include an Environmental Management Plan (EMP) and an Environmental and Social Management Framework have been produced to satisfy the legislative requirements of both the Papua New Guinea government and the World Bank.

In order to ensure compliance with these laws, the design of the Project includes provision for three environmental officers (EOs) who will be based at each scheme, Hoskins, Bialla and Oro. There is also provision for a twice yearly audit of SADP by an independent consultancy firm in association with two officers from the department of Environment and Conservation.

1.3 World Bank Requirements:

The World Bank requires an environmental assessment of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable, and thus to improve decision making. SADP has been classified as a Category B project under the World Bank's safeguard policies, Operational Policy (OP)/Bank Procedure (BP) 4.01 Environmental Assessment. This is the umbrella policy for the Bank's environmental safeguard policies.

This categorization is based on the scope of the Project and that potential adverse environmental impacts on human populations or environmentally important areas including wetlands, forests, grasslands, and other natural habitats are site-specific; few if any of them are irreversible; and in most cases mitigation measures can be designed.

The Environmental Assessment for SADP examines the project's potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance.

3 The Environment Act 2000 requires all proponents of new projects to notify DEC at least one month prior to carrying out an Environmental Assessment.

5 The EA study has identified that the other Bank Safeguard policies that need to be addressed are Forestry (OP/GP 4.36), Natural Habitats (OP/BP 4.04), Pest Management (OP 4.09).

These operational policies are discussed in later sections of this report and mitigation measures are included in the Environmental Management Plan, which also contains environmental control measures and monitoring programs (ECMMPs) to be used during the implementation of the SADP.

For component 2 of the Project detailed screening and mitigation procedures are included in the Environment and Social Management Framework (ESMF).

Separate reports are required and have been prepared to cover indigenous peoples, (OD 4.20) the Beneficiaries Assessment Report; and involuntary resettlement (OD 4.30), the Resettlement Policy Framework Report. These reports have been prepared under the Social Assessment of the Project.

6 2. Project Description:

2.1 Project Development Objective:

The development objective of the proposed Project would be to improve the living standards of ruralcommunities in selected areas of oil palm growingprovinces. This will be achieved through: (a) increasing smallholder oil palm sector productivity through capitalizing on existing infrastructure, and (b) promoting sustainable local governance and community participation mechanisms.

2.2 Description of each component:

2.2.1 Component 1: Smallholder Productivity Enhancement

The Smallholder Productivity enhancement component will support: (a) planting additional oil palm blocks, each 2 ha in extent (up to 9,000 ha) along existing provincial access roads through in-filling on land still available within the areas covered by oil palm infrastructure in response to smallholder demand (b) the upgrading (reconstruction) of provincial access roads to existing smallholder oil palm blocks (about 600km), and maintaining all existing and upgraded roads used for Fresh Fruit Bunch (FFB) collection, with the establishment of sustainable financing mechanisms for road maintenance; and (c) enhancement of smallholder productivity through improved extension services.

The demand for new VOP Blocks is well established and landowners and LSS Block holders are keen to be included in the Project. It is anticipated that most new blocks will be taken up by landowners, currently residing in villages along the extensive road network (see Map of Oro Project for example) under a Clan Land Usage Agreement (CLUA). In fact villagers are already in discussion on who will have access to the blocks and ensuring that the process is inclusive (Gina Koczberski, pers com).

Some blocks will be taken up by the children of LSS settlers either under a CLUA, having intermarried with the local clan or under a Customary Purchase Block agreement. SADP has been designed to ensure that land tenure arrangements are clarified and based on PNG law.

It is not anticipated that SADP will encourage immigration into the oil palm provinces based on infill blocks as there is adequate demand from either existing landowners or Block holders whose families have outgrown their LSS Blocks.

Three oil palm schemes are included in the Project; these are located at Hoskins, Bialla and Oro. The total area of established oil palm in each scheme is shown in table 2. 1, below (OPIC 2005 data):

7 Table 2.1 Areas Planted to oil palm in each scheme and potential for infill: Hoskins Bialla Oro Total Area planted to oil palm 49,955 20,722 23,281 93,958 Area of smallholder blocks 23,634 13,547 14,285 51,466 Potential for infill VOP 2ha 3,500 1,240 4,000 8,740 blocks in hectares. Potential % increase in area of 13% 9% 28% Average 17% VOP Blocks Areafigures are in hectares.

Development of an infill block would only be considered if it met all the OPIC, DEC and IDA environmental and social guidelines for development to smallholder oil palm. These include social and socio-economic issues, topographic considerations, measures related to proximity to watercourses, preservation of protected flora or fauna, and status of impacted forest at each site. Primary forest is excluded.

An impacted forest site could only be eligible for smallholder oil palm development if it is certain the existing human pressure would not allow regeneration of the vegetation into forest. Even though a parcel of land for infill meets environmental guidelines, participation in the program would not be permitted if utilization of this land would result in expansion of household garden areas into zones that would normally be excluded on the same environmental grounds. Details of screening procedures for infill blocks is further discussed in section 5 of this report and further in the EMP.

2.2.2 Component 2: Local governance and community participation

The objective of this component is to develop and demonstrate sustainable mechanisms for community participation into local development, through the provision of grants to community groups in the project areas and promoting participatory planning and local accountability at local government and community level.

This component will promote self-reliant local development through: (a) community mobilization, facilitated by local facilitators; (b) identification and prioritization of activities that would provide suitable solutions to local development constraints, through transparent processes at ward or community level; (c) participatory planning and budgeting at LLG level; (d) provision of small grant funding, with transparent conditions to ensure accountability and effective use of funds by recipient communities; (e) design and implementation of planned activities by the communities themselves, with support from district and LLGs, local CBOs, NGOs and service providers; and (f) capacity-development of CBOs, ward development committees, LLGs and province/district administration.

Component 2 activities will be carried out in two phases. Two LLGs will be selected for phase one in the Talasea District (WNB) and three LLGs in the Oro Province. During phase two all LLGs in the Talasea District and all LLGs in the Oro province would be included.

8 2.2.3 Component 3: Project Management and Institutional Support

OPIC will take overall responsibility for project management, coordination and performance of the project components. Component 1 implementation will be undertaken through OPIC and its field offices with the support of the milling companies and PNGOPRA.

Component 2 implementation will be managed by a management agency contracted out by OPIC to i) set up Local Coordination Teams (LCT) at provincial level; ii) select and contract consultants and service providers to carry out all capacity building activities; iii) carry out M&E activities; iv) assist OPIC in management and transfer of the grants themselves, and manage the grant accounts at the LLG levels.

Component 3 will strengthen OPIC capacity in improving smallholder productivity through the provision of technical assistance and the establishment of a Monitoring and Evaluation (M&E) system; strengthen OPIC and the institutions involved in assisting rural communities to define their priority needs, and the capacity of service providers to respond to these needs; and through OPIC provide support to and coordinate with existing HIV/AIDS awareness/prevention campaigns in the project area.

Environmental monitoring will also be supported in close coordination with the Department of Environment and Conservation (DEC).

To ensure a strong community ownership and participation, special attention will be given to incorporate gender-balanced activities in the various project components as well as consultation mechanisms for various indigenous groups.

9 3. Legislation, Regulations, International Agreements, Codes of Practice and Policies

3.1 Environmental Legislation:

Introduction:

Environmental Management in Papua New Guinea is predominantly covered by the Environment Act 2000. Prior to 2004 other Environmental Acts (now repealed) were in force. Environmental consents from that era still survive.

Environment Act 2000

Introduction:

On I" January 2004 New Environmental Legislation in Papua New Guinea was enabled by Parliament. Despite nearly 3 years operations under the new Act, some uncertainties still exist as to the meaning of relevant clauses. Overriding Consideration:

These is a specific public duty imposed on all developers, that of "Environmental Care". Developers are required to exercise due environmental care in all their activities. One particular consequence of this duty is that environmental permits are required if environmental harm is caused, as a consequence to their activities, even if the Act otherwise appears to exclude the need for such consents.

Environmental Harm is defined in the Act to mean any change to the environment, which has a detrimental effect on any beneficial values relating to that environment; caused either by commission or omission, either direct or indirect. Some examples are provided.

Licensing System:

Under earlier legislation there was a semi-voluntary (Environmental Plan) licensing procedure for major developments, with parallel permits compulsory for all uses of water (abstraction, discharge and use of watercourses).

There is now a three (3) Level Environmental Licensing System as follows: Level 3 Activities:

Activities that are:

Either i) of national importance Or ii) could cause significant environmental harm

10 Or iii) Capital cost of more than K 50 million4

Require a detailed Environmental Impact Statement (E.I.S) and a subsequent Environmental Permit.

Level 2 Activities

Activities that could cause a lesser risks of environmental impact. These developments only require Environmental Permit Applications. Some applications are advertised for public input, some are not. The Regulations set out Level 2 (and Level 3) activities in specific detail.

Level 1 Activities

Activities that will have little or no Environmental Impact; are covered by guidelines or general authorizations (or not covered by any criteria at all).

The difference between the old system and the new; is that the old system often required both an Environmental Plan Application and Water Use Permits. The new system now requires a single "Environmental Permit" for all Category 2 and 3 projects (but without the previous "Voluntary" discretion used by both the Department and Developers).

In all cases the New Act provides:

For Policies (yet to be developed) to be much more specific as to activities and locations that define the scope of Level 1, 2 and 3 Activities in more detail.

The development of a Policy is a lengthy matter that requires formal public consultation. This procedure is based on several Australian State Environmental Policy concepts. After nearly 3 years no draft policy has yet emerged (except for plastic bag management).

Policies can cover an extremely wide range of matters, including imports, types of pollutants, management of catchments, technology etc.

At this stage, until more comprehensive policies are developed, the Department of Environment & Conservation officials currently require that the licensing categories and procedures follow closely the established procedures under the old Environmental Planning Act and Water Resources Act. Some of the new applications now have to be advertised, which was not the case previously.

The new Legislation (Environment Act 2000) now requires "Environmental Permits" to be obtained for a specific range of activities. The basic activities relevant to Oil Palm Activities requiring new Environmental Permits are -

4 This particular project is treated as a series of individual smallholder projects each involving the planting of 2 ha of oil palm, with a capital cost of about K3800 per Block, as such they are to be treated as level I activities under the Environment Act 2000.

11 * Land clearing of more than I OOOha * Palm Oil Mills producing more than 5000 t.p.a * All projects with a capital cost of more than K50 million (see footnote 2 on page I 1)

Note: This schedule is not complete (refer regulations for complete detail) and is currently undergoing revision by the Department of Environment and Conservation at the present time.

Activities that were already in place by the end of 2003 are deemed to have an "Environmental Permit" already,

Any significant changes to existing processes now require an "Amendment to an Environmental Permit" application to be prepared and approved.

Where operations had, or should have had, a Water Use Permit prior to 2004, these operations are now regarded by DEC as needing an Environmental Permit for each of those separate activities. Furthermore, the Department of Environment & Conservation is now expecting all other waste discharges to air - (i.e. odors, steam, exhaust gases, noise) or to land; to obtain Environmental Permits as well.

When the Department of Environment & Conservation issues Environmental Permits, it usually expects a range of follow up activities to be designed and implemented in each case, including:

* Detailed Waste Management Plans for all wastes * Environmental (and process) Monitoring Programs * Regular Reporting of Environmental Monitoring Programs to DEC (usually on an annual basis)

For new projects detailed procedures now exist in the new Environment Act 2000 for notification of any new projects being considered and for the obtaining of relevant Environmental Permits.

Costs:

The Department of Environment & Conservation has regulations covering application fees and annual fees. A wide range of fees is now applicable, including both application fees and annual fees.

Environmental Levies and Bonds:

The new Act makes specific provision for Environmental Levies (to cover the costs of government services to developers) and Environmental Bonds (as insurance against the financial inability of the developer to mitigate any environmental problems). The procedures have not yet been developed.

12 Compensation:

The provision for environmental compensation included in the Water Resources Act has been continued.

Water Investigation Permits:

The need for such permits is continued in the new Act.

Drought Actions:

The ability of the Director to suspend or reduce permits for Water Uses is continued in these circumstances.

Water Control Districts:

These have now been deleted, but presumably could be continued by the development of appropriate policies and regulation.

Financial Penalties:

The financial penalties have now been increased significantly, and now make provision for jail sentences, for senior company officials and directors for some categories of environmental offences.

Environmental Upgrade Programs:

New provisions have been included to enable substandard environmental processes and procedures to be upgraded. If, for example, a problem is seen with aerial emissions at a factory, now provision exists for notices to be served and an upgrade program to be required.

Conclusion:

The new Act has now been operational for nearly 3 years. There is much more corporate risk and responsibility under the new Act. The licensing procedures are generally similar to the existing procedures but now all waste discharges; (to air, land and water) need formal licensing, whereas before only waste discharges to water was licensed.

The financial charges have increased.

There is a new legal process for an upgrade of environmental treatment in particular cases where these processes are judged deficient in some respect.

Most of the provisions under the old acts have been carried over.

There is uncertainty about the specifics of the various environmental policies that will be developed over the coming months and years.

13 The Department of Environment & Conservation has reviewed the scope of works envisaged for the program, from data supplied by OPIC. A letter (attached) by the Department indicates that No Environmental Permits are needed for the scope of works envisaged.

However, there still remains the duty of environmental care. The project is not to cause environmental harm. If such harm occurs, then environmental permits will be required, notwithstanding the exchange of correspondences with the Department.

The requirements of the PNG legislation have been covered by this Environmental Assessment, the Environmental Management Plan and the Environmental and Social Framework documents.

3.2 World Bank - Environmental Requirements

The World Bank's Environmental Assessment (EA) policy states quote5 "The EA, takes into account the natural environment (air, water, and land); human health and safety; social aspects (involuntary resettlement, indigenous peoples, and cultural property); and transboundary and global environmental aspects. EA considers natural and social aspects in an integrated way. It also takes into account the variations in project and country conditions; the findings of country environmental studies; national environmental action plans; the country's overall policy framework, national legislation, and institutional capabilities related to the environment and social aspects; and obligations of the country, pertaining to project activities, under relevant internationalenvironmental treaties and agreements. "

Section 7 of the WB's Environmental Policy states "Depending on the project, a range of instruments can be used to satisfy the Bank's EA requirement. environmental impact assessment (EIA), regional or sectoral EA, environmental audit, hazard or risk assessment, and environmental management plan (EMP). EA applies one or more of these instruments or elements of them, as appropriate."

In terms of environmental screening, quote "a proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. "

In view of the above, it is considered that the proposed SADP satisfies the definition of a Category B project which is defined as quote "A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas-includingwetlands, forests, grasslands, and other natural habitats-are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of Category A EA. Like Category A EA, it examines the project's potential negative and positive environmental impacts and recommends any measures needed

See also section 1. Introduction.

14 to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance."

The Environmental Assessment process is variable in scope, depending upon the nature of the project and its potential environmental impact.

In this particular case the Environmental Assessment is expected to be structured as follows:

i) Executive Summary ii) Policy Legal and Administration format (following Department of Environment & Conservation and World Bank Guidelines). iii) Project Description iv) Baseline Data v) Environmental Impacts Anticipated

This Environmental Assessment addresses the particular World Bank requirement for this Project.

The World Bank also requires a variable selection of follow up studies and reports depending upon the perceived environmental issues, their scale and impacts. Such studies can include an Environmental Impact Assessment, an Environmental Audit, a Hazard Risk Assessment or an Environmental Management Plan. In this case the Bank has required the preparation of an Environmental Management Plan (EMP) and an Environmental and Social Management Framework (ESMF). These two matters are addressed in separate reports.

The EMP must include:

* Mitigation; • Monitoring, and; * Institutional Measures

Particular attention is to be paid to:

* Protection areas and species, especially the Queen Alexandra Birdwing Butterfly * Provision of an Integrated Pest Management Plan (IPM)

The EMP is to address the component I activities (road reconstruction and Oil Palm activities) while the ESMF is to address environmental issues related to other basic infrastructure and its delivery through community participation.

The Environmental requirements of the World Bank are addressed in this Environmental Assessment, and the Environmental Management Plan and the Environmental and Social Management Framework.

15 3.3 Conservation Legislation:

PNG has a range of Conservation Legislation. Most of it is 20-30 years old and in need of overhaul. Of some relevance to this project are the following Acts and Policies Regulations, Guidelines.

1. Fauna (Protection and Control) Act

Certain animal species, especially including the Queen Alexandra Birdwing Butterfly are fully protected. This Butterfly cannot be damaged or harmed in any way. The protection of its habitat is less clear, but sensibly, it is important not to destroy its obvious environmental needs.

2. National Parks Act:

This Act provides a process for the establishment of National Parks. There is one block of land (Lorko) in West New Britain that is half way through the establishment process as a National Park. It has been approved by Lands Department for reserve purposes, and is now waiting for approval under the National Park Act. As proposed National park, Lorko will not be affected by SADP.

3. Wildlife Management Areas (Fauna Protection Act):

This Act provides for the establishment of areas of customary land as Wildlife Management Areas. Local communities are established (and gazetted) and operational rules are prepared and approved (which must be compatible with the purpose of the Act). There are several Wildlife Management Areas in West New Britain Province and Oro Province, either approved or proposed.

4. Provincial Legislation:

The West New Britain Provincial Government has enacted a Tourist Sites Protection Act (1993). A copy of this Act has not been obtained, but a schedule of sites nominated for protection purposes exists (copy attached). Most are not defined as to size and may be under some risk from development of all types. No similar legislation appears to exist in Oro Province.

5. Conservation Areas Act

This Act provides for the establishment of protected conservation areas. No such Conservation Areas exist in either Oro or West New Britain Provinces. Some Areas may be under consideration and are at different stage of establishment by landowners, NGOs (on their behalf) and/or DEC (as is the case for Wildlife Management Areas).

6. Watershed Protection Areas:

Under the old Water Resources Act (now repealed) there was provision to protect portions of watersheds for water yield or Water Quality purposes,

16 usually associated with Urban Water Supply Catchments (such as the upper Laloki). The new Environment Act does not specifically provide for such measures but policy development provisions exist, which have not yet been developed. No such areas were previously determined for either Oro or West New Britain Provinces.

7. The Convention on International Trade in Endangered Species of flora and fauna (CITES):

CITES is an Intemational agreement, which prevents or regulates the export of designated species of Fauna and Flora. The Queen Alexandra Birdwing Butterfly is in Appendix I (export prohibited). Crocodile products are in Appendix II (export controlled). Numbers of other endangered species in PNG are also included.

8. Biodiversity Convention:

PNG has adopted the Convention on Biodiversity. However, no new legislation is currently being promoted, the DEC view being that existing legislation is (more or less) adequate.

9. Ramsar Convention:

PNG is signatory to an international agreement, the Ramsar Convention, to protect specially designated wetlands (Ramsar Sites). No Ramsar sites are known or proposed in either Oro or West New Britain Provinces.

10. Conservation Planning:

In recent years a number of planning reports have been produced by DEC and other agencies that include areas that merit protection for conservation purposes. Several of these areas have been identified in West New Britain (and Oro Provinces). While some of these areas are not formally protected, such areas do have high conservation values and warrant consideration. Boundaries are usually not defined.

3.4 OPIC Policies

OPIC historically has had a policy that the selection of new Smallholder Oil Palm blocks is examined through a schedule of criteria (environmental and otherwise). This criterion has been implemented variably from one location to another. This environmental process has reviewed those criteria.

More recently OPIC, together will palm oil milling companies in the project areas, has committed to the implementation of the Principles and Criteria of the Roundtable on Sustainable Palm Oil (RSPO), which, in the near future, will tighten criteria for such site selection within the framework of an independently audited system (see Appendix).

17 3.5 Round Table of Sustainable Oil Palm

By 2006, all of Papua New Guinea's palm oil milling companies and PNGOPRA were members of the Roundtable on Sustainable Palm Oil (RSPO); OPIC has made a commitment to join the RSPO. Membership entails an adoption of the Principles & Criteria of the RSPO (see appendix 5). These Principles & Criteria ensure commitment to: * Transparency * Compliance with all applicable national and international laws and conventions * Adoption of best practices * Environmental responsibility and conservation of natural resources & biodiversity * Responsible consideration of employees, individuals and communities affected by growers and mills * Environmentally and socially responsible development of new plantings and; * Commitment to continuous improvement.

PNG is taking a lead in developing the RSPO Principles & Criteria into a managed auditable system. PNG has an active National Implementation Working Group (NIWG) that is tasked with doing this. The NIWG comprises the milling companies, PNGOPRA, OPIC, Government (DEC), and NGOs.

All aspect of the RSPO and its implementation are published on the RSPO website; www.rspo.org

18 4 Baseline Environmental Survey

4.1 Introduction

This chapter deals with the existing biophysical and socioeconomic environment. It takes into account other development activities (current) and other environmental pressures within the same areas as the SADP.

4.1.1 Methodology Used to collect baseline Data

The baseline data for the existing biophysical and socioeconomic environment has been collected from variety of sources. These are:

* Stakeholder consultation and interviews. * Field surveys. * Review of literature. a) Stakeholder consultations were held and in Port Moresby in July 2006. A range of people were consulted including: churches, oil palm block holders, landowners, Environmental NGOs, provincial and district public servants, women's representatives and OPIC officers, Department of Environment and Conservation. In addition several others were consulted by telephone interview or email. This included schools, health facilities, government officials and others that could not be met with during field visits. In addition a public workshop was held in July for interested stakeholders. (The workshop meeting report is attached as an Appendix to this Environmental Assessment report). b) Field surveys were carried out into freshwater watercourses in the project areas by conducting stream sampling to assess the status of freshwater water quality in smallholder oil palm block areas. Samples were taken in forest streams for comparison purposes. During the freshwater survey observation of terrestrial flora and fauna were also made. c) Some information is from Douglas Environmental Services' knowledge of some of the issues from years of experience working in PNG. d) An extensive review of available of literature was carried out. Use was made of Environmental Plan application submitted for oil palm developments in Oro and West New Britain (These all detail socioeconomic and biophysical environments in the same area as the SADP) .Other reports on smallholder oil palm were consulted where relevant and use was also made of media reports, internet resources etc. Authoritative texts on fauna were used, also old publications put out by the former PNG Wildlife Division.

19 4.1.2 Reliability of Data

The most reliable data is of course that obtained first hand, i.e. stakeholder interviews and field surveys. The remaining data if from reports is perhaps now dated, Census data for example is now 6 years old, Environmental Plan Applications are also a few years old, and some are of better quality than others.

4.2 Physical Environment

4.2.1 Climate

Average rainfall for the coastal region for the Talasea District of West New Britain is 3.700 mm per year. The wettest months are from December to April when mean rainfall is 500 mm per month. For other months the mean rainfall is 180 mm per month. Daily temperatures range from a minimum of 220C to a maximum of 34 C. The average annual sunshine is about 1,950 hours.

The prevailing winds are north-westerly during the wet season and south-easterly trades from June to October.

In Oro Province, the Popondetta plains area is "tropical rainy" and lacks a pronounced dry season. South east trade winds dominate from May to October with North- westerly winds dominating from December to March. The mean annual rainfall is about 2700 mm. Temperatures are uniform throughout the year ranging from minimum of 220C to a maximum of 310C. Annual evaporation is estimated to be about 1500 mm. Relative humidity is high and varies between 83% at 9.00 hrs and 69% at 15.00 hrs.

The Kokoda area is "wet tropical". Being at higher altitude and further inland from the sea has different climate from the Popondetta plains area. South-easterly trade winds dominant from May to September with north-westerly winds dominating from November to March Mean annual rainfall is much higher than on the Popondetta plains being about 3900 mm. Maximum annual rainfall of over 5200 mm was recorded in 1998 and a minimum of about 3000 mm in 1981. The average daily temperature ranges from a minimum of 22 °C to a maximum of 30 °C. Sunshine hours from in February 2006 were as low as 47 hours for the whole month.

PNG is susceptible to El Nino events. There was a severe event in 1997 which caused major drought in all regions of PNG. At other times extreme rain events can cause flooding and major infrastructure damage. This happened in West New Britain in 2002.

4.2.2 Geology

All oil palm growing areas are near active or dormant volcanoes and the geology reflects this.

20 The areas are relatively uniform comprising volcanic ash, to various depths, and agglomerate, overlain by lava flow. There have been subsequent alluvial movements on the lower reaches.

4.2.3 Geomorphology

Generally the oil palm growing areas are on flat to gently sloping ground from near sea level to 80 m above sea level. At Kokoda, being inland, the altitude is higher at 400 m above sea level. Alluvial plains, containing volcanic material, are made up of a series of terraces which are dissected by a dense network of shallow steep-sided valleys

Flatter areas and areas near rivers are subject to flooding.

4.2.4 Soils

Soils in the oil palm growing areas of Oro and West New Britain Provinces are generally dark coloured volcanic ash soils usually overlying yellowish brown sandy clay loam subsoils. In Kokoda the lower terraces consist of shallow volcanic ash over alluvial soils and gravel and the river terraces are shallow alluvial soils overlaying deep gravel

The soils are very fertile. They are generally of low bulk density and moderately erodable due to their poor structure (highly friable). During high rainfall on steep areas or areas with no ground cover sheet and gully erosion can be expected.

Soils range from well-drained to poorly-drained. In West New Britain, the areas around the Kulu Dagi Oil Palm Estate and Mamota areas are subject to inundation due to the presence of a high water table. The Mamota smallholder block area is established on drained swampland.

During high rainfall on steep areas or areas with no ground cover sheet and gully erosion can be expected.

4.3 Biological Environment

4.3.1 Terrestrial Flora

Oil Palm Growing Areas

Oil Palm in Oro and West New Britain Provinces is grown on the foot slopes of volcanoes. The land on which it grows is well to imperfectly drained alluvial plains and gently sloping undissected fans. Some areas of swampland have been converted to oil palm. The main forest type that occurs in the oil palm growing area is large to medium crowned forest. This forest type is a tall forest with a canopy height of 30 to 35 metres and with emergent trees of up to 50 metres in height.

Not much of this type of forest remains and much of that does is highly disturbed. Much of the oil palm growing areas have already been converted over the past 30 years and also the areas have been subject to selective logging for much longer.

21 In Oro on the Popondetta Plains the vegetation is more complex with extensive grasslands with well defined small parches of forest. The grasslands have remained much the same since before the Second World War, whether they are caused by human activity or not is unclear. Commercial oil palm operations are successfully converting grassland to oil palm.

Volcanic eruptions have also had their own affect on the vegetation. The Mt Lamington eruption in 1951 destroyed 175 square kilometers of forest. It has also been noted by that after 30 years primary forest had become re-established in the area (Mercer 1999).

Undisturbed Forested Areas

The species composition is mixed with the main species of tree being Pometia pinnata, Octomeles sumatrana, Ficus sp, Alstonia scholaris, Terminalia spp, - other common genera are Pterocarpus, Artocarpus, Planchonella, Canarium, Elaeocarpus, Crytocarya, Celtis, Dracontomelum, Dysoxylum, Syzgium, Vitex, Spondias & Intsia. - The proportion of deciduous trees is higher in areas with pronounced dry season.

As discussed above there is very little undisturbed forest of this nature within the project areas. The remnant forests on the Popondetta Plains have mostly been logged at some time in the past, though such areas are still important habitat, especially for Birdwing Butterflies.

In West New Britain there are important areas of forest remaining. Pokili and Garu Wildlife Management Areas still support largely intact areas of forest, totaling about 18,000 hectares. In Garu there are large areas of sago swampland. Also parts of the Kulu Dagi area contain substantial intact forest.

Logged over Forest

In logged over forest there is a much greater ground cover from herbs creepers, vines tree seedlings (the most common ones being Pometia sp). The canopy is more open and the tree species that are common include Anthocephalus, Calophyllum, Syzigium, Myrstica, Licuala, Calamus. Macarangais very common in larger openings

Secondary regrowth

Areas that have been cleared for gardening take about ten years before primary forest tree species begin to dominate again. After 1 to 2 years the dominant species are Homalanthus and Macaranga. After 4 to 5 years the dominant species are Ficus spp, Dendrocnide, Zinziberaceae, a range of herbs and shrubs are also dominant. The following species of herbs and shrubs were noted during field visits to secondary regrowth areas in June/July 2006: Grasses and sedges including Cyperus spp Bambusa spp Alpinia oceanica A lpinia spp Momordica charantia

22 Piper aduncum Euphorbiaspp Phyllanthus niruri Pueariasp Mimosa spp Cassia alata Hyptis capitata Sida sp Ageratum conyzoides Chromolaenaodoratum Mikania micranthus (These species were common to both provinces and are very widespread)

By the tenth year Myristica sp and other primary forest trees become dominant.

Invasive Species

Some of the exotics species are noxious and can cause major problems. The "Daka" tree (Piper aduncum) is very fast growing and will quickly grow on cleared areas. It forms medium sized bush which shades out a fairly large area and prevents tree seedlings from growing, thereby slowing down the process of regeneration. Another species Chromolaena odaratum forms dense thickets and makes access difficult, chokes out other species and is a fire hazard. Mimosa sp also form dense thickets and prevents access.

The water hyacinth (Eichhornia crassipes) was noted on the Dagi River near the bridge on the highway into Kimbe. This can form dense masses of floating plant matter and can seriously impede river traffic and damage fish stocks. By law this plant should not be transported to other areas and any occurrence in new areas has to be notified to National Agriculture Quarantine and Inspection Authority (NAQIA).

4.3.2 Terrestrial Fauna

4.3.2.1 Invertebrates

Molluscs

No information on native terrestrial molluscs is available. Though land and tree snails (Families: Camaenidae and Helicarionidae) should be present.

The introduced Giant African Snail (Achatinafulica) is however very common at both sites and is regarded as a nuisance by locals due to its impact on gardens. In recent years in Oro there was a massive die back of the snail according to locals (the smell was apparently overpowering in the gardens), and the snails, while still present, are not as common as they used to be.

Collections of aquatic snails were however made in both project areas and details of these are covered in more detail under the aquatic fauna section.

Crustacea

23 A range of small terrestrial crustaceans, family Isopoda, are associated with leaf litter and soil. These are very important being detritivores they ensure the rapid breakdown of organic material, replenishing soil nutrients. Their status in oil palm blocks is unknown, though if there is abundant organic matter they will be present.

Insects

Insects represent the largest group of terrestrial fauna. Various studies have been carried out on different groups mostly of pest species and species of commercial value.

Commercial Butterflies and Moths

Oro Province was one of the early provinces to make money from trading in butterfly species the type of commercial species found, and their abundance, on the Popondetta Plains are shown in the following table.

Table 4.1: Commercial Species of Butterfly Observed on the Popondetta Plains (from Clark 1999) SPECIES SPECIES (CONT.) Papilionidae Doleschalliahexophtalmus Ornithopteraalexandrae 6 Doleschalliadascylus Ornithopterapriamus Parthenos sylvia Troides oblongomaculatus Phalantaalcippe Papilio ulysses Phaedyma sherphdi Papilioaegus Morphinae Papilio ambrax Taenaris bioculatus Papiliofuscus Taenaris myops Papilio euchenor Taenaris catops Graphium macfarlanei Taenaris artemis Graphium saepedon Danainae Graphium eurvpylus Euploea nemertes Graphium wallacei Euploea wallacei Graphium aristeus Euploea eurianassa Graphium agamemnon Danausphilene Pieridae Paranticaschenkii Delias ladas Libytheinae Delias mysis LibYthea geoffroyi Delias aruna Satyrinae Delias gabia Mvcalesis phidon Appias celestina Mycalesis duponcheli Cepora perimale Tellervinae Catopsilia Pomona Tellervo zoilus Eurema hecabe Acraeinae Nymphalidae Acraea meyeri Vindula arsinoe Lycaenidae Mynes geoffroyi Hypolvaena phorbis Precis erigone Danis danis Hypolimnas bolina Moths commercial Hvpolimnas alimena Alcidis agthvrus

6 This particular species cannot be legally traded due to its listing under Appendix I of the CITES Convention. Illegal specimens do occasionally end up for sale overseas.

24 Hypolimnas deois Nyetalemon arontes Cvresti acilia Millioniaspp Cyresti achates Macroglossum spp Ployurajupiter

The Rare Papilionidae - Birdwing Butterflies

The main group of butterflies of concern is the Birdwing Butterflies; they are subject to pressure both from collectors and habitat destruction. Of the 9 species - all but three are endemic to New Guinea, one the World's largest, Queen Alexandra's Birdwing Butterfly, (Ornithoptera alexandrae), (QABB), with a wingspan of more than 25cm, is found only in the Oro Province. Unfortunately much of its habitat overlaps areas suitable for Oil Palm.

The Birdwing Butterflies, with the exception of the common Birdwing Butterfly, (Ornithoptera priamus), have been declared as protected fauna under the Fauna (Protection & Control) Act Chapter 154. All of the species are also listed under Appendices of CITES, including 0. priamus. The QABB is listed under Appendix I which prohibits all trade in this species. The others are listed under Appendix 2 which does still allow international trade provided the trade is 'non-detrimental' to the species survival. PNG enforces its obligations under CITES through the International Trade (Flora & Fauna) Act.

The Queen Alexandra Birdwing Butterfly (QABB) was first collected in 1907 supposedly in the Kokoda area (Parsons 1992), though none have ever been found there since. Currently it is found only in three locations within a 50 km radius of Popondetta.

* Popondetta Plains * Managalese Plateau * Cape Ward Hunt

Since the cessation of the Oro Conservation Project in 1999 little work on QABB has been undertaken. Assets in Afore have been stripped, with only the cement bases remaining of the former buildings (Malaisa per com). Eddie Malaisa, the Provincial Wildlife Officer, with assistance from Higaturu Oil Palms has done some limited field visits, mainly to proposed Wildlife Management Areas. Also the PNGOPRA office in Oro has been producing food plant vines by tissue culture.

The threats to the species

* Oil Palm 1976 cleared large areas of primary and secondary forest of importance to QABB * There is a record of large scale industrial export logging, particularly in the Kumusi, Saiho and Saiho extension Timber Rights Purchase areas (and also in other areas of the Popondetta plains), taking place beginning in the late 1970s, and with plans to continue * Influx of people due to the logging and oil palm * Population growth

25 * Illegal collecting

The smallholder developments are not taking place in the Afore or Cape Ward areas and these populations will not be affected.

4.3.2.2 Vertebrates

Reptiles

Reptiles are an important component of the biodiversity in both project areas. These range from species of commercial importance such as the crocodile (dealt with under Aquatic Fauna), to others that affect human health such as the venomous snakes to others which are small and less noticeable but none the less important due to their place in the food chain.

Snakes

Several Species of snakes are found in West New Britain. Most of the snakes are non- venomous and only two are only mildly venomous. The majority of the snakes feed on small mammals, lizards or frogs. Keelback snakes which live near water or in swamp areas of the project area are the only snakes able to feed on the cane toad, Bufo marinus, without being poisoned.

Many of the snakes are widespread occurring on the mainland and further a field. Three are endemic to the Bismark region only, these are * Bismark Ringed Python: Bothrochilus boa * New Britain Keelback: Tropidnophis hypomelas * Bismark Keelback: Tropidnephis dahlia

All of the snakes survive in a variety of habitat from rainforest to disturbed areas such as coconut and cocoa plantations (no data on oil palm) and gardens. One, the File Snake, Acrochordus granulatus, feeds on fish and crabs and lives in mangroves and inland freshwater grass swamps.

The Oro Province being on the mainland has more snake species than West New Britain. As with the snakes on West New Britain most of the species occupy a range of habitats including disturbed ones and most feed on small animals such as lizards and frogs. However some (such as boas and pythons) are able to eat large animals such as wallabies and bandicoots. Keelback are also found in Oro.

Venomous species are present, some are only mildly venomous (such as Crowned Snakes and Forest Snakes) but two are highly venomous. These are the Death Adder (Acanthophis spp) and the Eastern Brown Snake (Pseudonajacf textilis). Death Adder snake bites have been reported at Kokoda.

Lizards

A range of lizards are found in both provinces these include Monitor Lizards (Varanidae) 2 species in Oro Province and I in West New Britain Province. Dragon

26 Lizards (Agamidae) 2 species in Oro Province and I in West New Britain Province. Geckoes (Geckonidae) 3 species in Oro Province and 2 in West New Britain Province. Skinks (Scincidae) 25 sp in Oro Province and 16 in West New Britain Province mostly species of the genera Emoia and Sphenomorphus spp 8 Oro, 6 WNBP. Varanids are also regarded as endangered internationally and are listed on Appendix 2 of CITES.

Birds

About 60 species of bird are to be found in the coastal areas of West New Britain, out of the nearly 200 species found throughout the island. There are twelve New Britain endemics of limited geographic distribution, eight of these are found in lowland areas. Most of the West New Britain lowland birds are adapted to both primary and secondary forest.

Blythe's hombill, protected under the Fauna (Protection and Control) Act Chapter 154, is found in forested areas of coastal West New Britain where it feeds on fruit. It is found flying in open areas while foraging for food.

7 Table 4.2: Birds of Lowland West New Britain (Hoskins area) FREGATIDAE AEGOTHELIDAE Lesser Frigatebird Fregataariel Feline Owlet-nightjar Aegotheles insignis Great Frigatebird Fregata minor HEMIPROCNIDAE ACCIPITRIDAE Moustached Tree-Swift Hemiprocne mystacea Crested Hawk Aviceda subcristata APODIDAE MEGAPODIIDAE Uniform Swiftlet Collocaliavanikorensis Volcano Scrubfowl Megapodiuseremita Mountain Swiftlet Collocalia hirundinacea RALLIDAE White-rumped Swiftlet Collocalia _spodiopygius Bush-hen Amaurornis olivaceus Glossy Swiftlet Collocaliaesculenta CHARADRIIDAE Papuan Spine-tailed Mearnsia novaeguineae Swift Pacific Golden Plover Pluvialisfulva ALCEDINIDAE LARIDAE Collared Kingfisher Halcyon chloris Crested Tem Sterna bergii Sacred Kingfisher Halcyon sancta COLUMBIDAE MEROPIDAE Slender-billed Cuckoo-Dove Macropygia amboinensis Rainbow Bee-eater Merops ornatus Black-billed Cuckoo-Dove Macropygia nigrirostris BUCEROTIDAE Pied Cuckoo-Dove Reinwardtoena brownii Blyth's Hombill RhYnceros plicatus Stephan's Ground-Dove Chalcophapsstephani SYLVIIDAE Superb Fruit-Dove Ptilinopussuperbus Australian Reed Warbler Acrocephalus austrabis White-breasted Fruit-Dove Ptilinopusrivoli RHIPIDURIDAE Knob-billed Fruit-Dove Ptilinopusinsolitus Northem Fantail Rhipiduraruf ventris Red-knobbed Imperial Ducula rubricera Willie Wagtail Rhipidura leucophrys Pigeon Grey Imperial Pigeon Ducula pistrinaria MYIAGRIDAE Finsch's Imperial Pigeon Duculafinschii* Black-tailed Monarch Monarcha verticalis Black Imperial Pigeon Ducula melanochroa Shining Flycatcher Mviagra alecto Torresian Imperial Pigeon Ducula spilorrhoa DICAEIDAE PSITTACIDAE Bismarck Flowerpecker Dicaeum eximlum Rainbow Lorikeet Trichoglossus NECTARINIIDAE haematodus Eastem Black-capped Lory Lorius hypoinochrous Black Sunbird Nectarinia aspasia Blue-eyed Cockatoo Cacatuao phthalmica * ZOSTEROPIDAE

7 from a 1998 Bird Spotting Tour

27 Buff-faced Pygmy-Parrot Micropsittapusio Black-headed White-eye Zosterops hrvpoxanthus Singing Parrot Geoffroyus heteroclitus MELIPHAGIDAE Eclectus Parrot Eclectus roratus Ashy Myzomela Mvzomela cineracea CUCULIDAE Black-bellied Myzomela Mvzomela ervthromelas * Channel-billed Cuckoo Scythrops New Britain Friarbird Philemon cockerelli novaehollandiae Violaceous Coucal Centropus violaceus ESTRILDIDAE Greater Black Coucal Centropus menbeki Buff-bellied Mannikin Lonchura melaena Pied Coucal Centropus ateralbus STURNIDAE STRIGIDAE Singing Starling Aplonis cantoroides New Britain Boobook Ninox odiosa* Yellow-faced Myna Mino dumontui CAPRIMULGIDAE CORVIDAE Large-tailed Nightjar Caprimulgus mnacrurus Torresian Crow Corvus orru * New Britain endemics

Of the endemics Duculu finschii and Ninox odiosa are intolerant of very disturbed habitat. Their presence at the Pokili Wildlife Management Area is therefore a good sign that the integrity of the area is still intact.

Mainland New Guinea has a much larger number of bird species (over 700) than the island provinces.

Mammals

Marsupials

In Oro Province there are nine species of marsupials these include the bandicoots, which are hunted by the local people, particularly in the grasslands, and cuscus, possums, sugar gliders and a tree kangaroo. (A full listing is shown in the table below.)

Table 4.3: Non-Volant Ma rsupial Mammals known to occur in the Oro Province. Family Species Common Name Acrobatidae Distoechurus pennatus Feather-tailed Possum Macropodidae Dorcopsis luctuosa Grey Dorcopsis (tree kangaroo) Peramelidae Isodon macrourus Northern Brown Bandicoot Peroryctidae Echymipera kalabu Common Echymipera Echymipera rufescens Longed-nosed Echymipera Peroryctes broadbenti Giant Bandicoot Petauridae Dactylopsila trivigata Striped Possum Petaurus breviceps Sugar Glider Phalangeridae Phalangerintercastellanus Southern Common Cuscus

All Dorcopsis species are protected under the PNG Fauna (Protection and Control) Act Chapter 154.

Due to its island status West New Britain has a lower number of marsupials than the mainland. Some of these may have been introduced by man in ancient times. The species found are the Cuscus (Phalanger orientalis), the Northern Pademelon Wallaby (Thylogale browni), the bandicoot (Echymiptera kalabu) and the sugar glider

28 (Petaurus breviceps). None of these species are uncommon and all are found on the mainland.

Placental Mammals (Non Volant)

These are represented by rodents and the feral pig.

Of the rodents listed, at least two are introduced, the pacific rat in prehistoric times and the black rat more recently since contact with Europeans. The black rat has become a major pest of the oil palm industry. The owl has been used successfully in Malaysia and has reduced the need to use chemical poisoning considerably. Higaturu Oil Palms established "nurseries" for owls on one of their estates, but due to vandalism had to abandon the idea. However owls have become established in the oil palm blocks.

The pig was probably introduced into Melanesia 3,500 years ago by man. It is now very widespread throughout the country, both on the mainland and on island provinces, and plays an important part in all local culture. Feral pigs are hunted in the grassland and cleared areas within the project areas. It is not clear to what extent the pig utilizes remnant forest areas, but it is likely that their foraging takes them into these areas. In Oro the extent of any damage, if any, that pig foraging causes to QABB food plant vines by uprooting them or chewing on stems is unknown. However damage may not be significant as three of the proposed WMAs, which were selected because they were in areas known to have QABB populations, are located around the village of Girigirita, which is known locally for the large number of pigs the local people keep. Obviously the food plant vines here are not affected by foraging pigs.

Table 4.4: Non-Volant placental mammals Oro Muridae (Rodents) Chiruromys forbesi Forbes' Tree Mouse Hydromys chrysogaster Common Water Rat Melomys moncktoni Monckton's Melomys Melomys rufescens Black-tailed Melomys Rattus exulans Pacific Rat Rattus leucopus Cape York Rat Rattus Mordax Eastern Rat Rattus rattus Black Rat Rattus sordidus Canefield rat Suiidae Sus scrofa Pig

Placental Mammals - (Volant)

Many of the bats found in Oro are recorded in the following table. They are common in garden areas and secondary forest where they seek out the native fruit trees that occur in these areas, feeding directly on the fruit, or on the insects that these trees attract, according to the species of bat

29 Table 4.5: Volant Mammals - Oro Hipposideridae Hipposideros diadema Diadem Horseshoe Bat Pteropodidae Dobsonia Magna Great Bare-backed Fruit Bat Pteropus neohibernicus Greater Flying Fox Vespertilionidae Miniopteris australis Little Bentwing Bat Nyctophilusmicrotis Small-eared Ncytophilus Pipistrellus angulatus New Guinea Pipistrelle Pipistrelluspapuanus Papuan Pipistrlle

In West New Britain there are 28 species of bat known to occur in lowland areas. Many of these roost in caves and are therefore not found in the project area. Those that are present favour introduced and native fruit trees common in garden areas and in secondary forest. This applies to many of the fruit bats (Dobsonia species); flying foxes (Pteropus species), the Northern Blossom Bat (Macroglossus minimus) and the Rousette bat (Rousettas amplexicaudatus) have possibly extended their distribution by following human settlement (Flannery 1995).

Table 4.6: Volant Mammals of West New Britain Pteropodidae Dobsonia spp (2) Fruit Bats Macroglossus minimus Blossom Bat Melonycteris melanops Blossom Bat Nyctimene spp (3) Tube-nosed Bat Pteropus neohibernicus Greater Flying Fox Rousettas amplexicaudatus Rousette Bat Synconycteris australis Common Blossom Bat Emballonuridae Emballonura nigrescens Lesser Sheathtail Bat Hipposideridae Asselliscus tricuspidatus Trident Horseshoe Bat Hipposideros spp (5) Horseshoe Bats Rhinolophidae Rhinolophus spp (2) Horseshoe Bats Vespertilionidae Kerivoula myrella Bismark Trumpet-eared Bat Miniopteris spp (3) Bentwing Bats Nyctophilusmicrotis Small-eared Ncytophilus Myotis adversus Mouse-eared Bat Philetorbrachypterus Rohu's Bat Pipistrellusangulatus New Guinea Pipistrelle

Mammals and the Queen Alexandra's Birdwing Butterfly Habitat

Bandicoots and other large native rodents eat the fruits of the Parastilochia vines (Birdwing Butterfly food plants). In so doing they are playing a role in dispersing the food plants and therefore may play an important role in maintaining QABB habitat (Mercer 1999). Mercer reports that if the fruits are not eaten by animals, they turn black and soft on the vine, and later fall to the ground, where the seeds germinate in a clump.

However, he also reports finding many fruits rotting beneath the vines on the Plains, suggesting that the intense hunting pressure on the Plains may have reduced the seed bandicoot and rodent populations to levels where they are no longer able to perform

30 effectively as agents of seed dispersal. This may have been caused by habitat fragmentation and use of rodenticides or even an increase in the number of bird and snake predators.

Conclusion

The Terrestrial Fauna has no doubt been affected by past and ongoing human activities in the Oil Palm growing regions of West New Britain and Oro Provinces. Some species have actually increased their range and numbers due to human activities, while others have declined. Much of the habitat loss predates oil palm and has been caused by logging and other agricultural developments.

Areas declared as Wildlife Management Areas under the Fauna (Protection & Control) Act Chapter 154 are still intact and are still managed by landowner committees.

In Oro the Queen Alexandra Birdwing Butterfly again has been severely impacted by past logging (especially in the Kumusi area) and oil palm development in the Popondetta Plains. The butterflies still exist in the Afore region away from any oil palm development. The butterfly and its food plant are still in evidence on some areas on the plains. Some WMAs have been identified as QABB reserves and await declaration. Unfortunately lack of action by relevant government agencies has delayed declarations for many years. This needs to be addressed by those agencies, with potential assistance under this project.

4.3.3 Aquatic Flora

Water lilies - Nymphaea species are found on open waters and sedges and grasses on the margins. The common grass species found include Phragmites karka, Saccharium spontaneum.

Swamp Grasslands

On permanent wet grassland the dominant species include Phragmites karka, Saccharium spontaneum. On the edges of the grassland areas trees start to appear - main species Anthocephalus chinensis, Eucalyptus deglupta, Octomeles sumatrana, Spondias dulsis and Alstonia scholaris. Sago palm, Metroxylon sagu is common. The spiny aroid Cyrtosperma merkusii grows abundantly under the tall grasses. Mixed ferns, sedges, Donax, Costus and other shrubs complete transition to canopy forest

4.3.4 Aquatic Fauna

4.3.4.1 Invertebrates

Crustacea

The common groups of crustacean found in freshwater habitats in the project areas of both provinces are the Atyid shrimps and freshwater prawns of the genus Macrobrachium.

31 The exotic Hymenosomatid (spider) crabs were found in 20% of all the oil palm streams surveyed and none were found in the forest streams. Other types of freshwater crab were more widespread being found in 40% all types of stream.

Arachnids

Two groups of spider are associated with aquatic systems. The Tetragnathid spiders build webs close to the water surface to catch emerging adult insects. Another group the Dolomedes spiders are semi-aquatic and can enter the water to catch their prey. Both types were found in many of the streams associated with smallholder oil palms blocks and natural habitat in the project areas in both provinces. Aquatic Fauna

Insects

The most widespread group of aquatic insects is the Libellulid dragonflies. These were found in all oil palm streams and 70% of forest streams studied during the field survey. They are able to thrive in streams of moderate quality as well as good quality, (no really badly polluted streams were found in the oil palm blocks studied). The Baetid mayflies (which in fact were the most numerous of all aquatic insects found) and Hydropsychid caddisflies follow a similar pattem both groups being found in 90% of oil palm streams and 70 to 50% (respectively) of forest streams. In many countries mayflies as a group are indicative of high water quality. In PNG this is not so as some species are able to survive in all but the most degraded of streams.

Gerrid (water strider) bugs live on the water surface and feed on other aquatic insects. They are most common on slow flowing stream especially along the margin. They are able to survive in streams with a wide range of water quality. However they are limited by presence or absence of other aquatic insects which are affected by water quality. The naucorids which creep below the surface are affected by water quality. However they are very diverse group which can occupy streams of poor water quality.

Both the Gerrids and Naucorids were abundant in oil palm streams (being found in 80% to 100% respectively of those studied). They were less common in the forest streams. Though this was probably due to temperature (the forest streams studied were generally colder than the oil palm streams) and the rate of flow in the streams (again the forest streams studied were generally faster than the oil palm streams).

4.3.4.2 Vertebrates

Fish

The most common groups of fish in the streams of project areas in both provinces are the gudgeons (Eleotrididae) and the gobies (Gobiidae). These groups were observed during the field surveys.

Streams within a radius of 50 kilometres of Popondetta support an endemic species of Rainbow fish called the Popondetta Blue-Eye (Pseodomugil cyonnieae). The current status of this species is unknown

32 Block holders at Sirovi (Oro) complained that the fish in the Ambogo River had never recovered from the early 1990s when they had been killed by excessive organic pollution from poorly treated wastes discharged by the Oil Palm Industry. There is still a tendency to blame the lack of fish on the commercial oil palm industry, even though wastewater was now properly treated prior to release into any watercourse. The slow recovery of fish fauna is likely to be complex, it may be caused by other industries such as sawmilling, and it may just be due to over fishing or from other sources of pollution. Small creeks are affected by domestic laundry which uses soap powders and bleach, this is worse now due to increased human populations.

Amphibians

There is no data on status of the frog fauna in the smallholder oil palm areas. The frog fauna of PNG is diverse with species in excess of 200 with many more probably yet to be discovered. Recent fauna surveys associated with the gas pipeline led to the collection of 28 new species. Doubtless there are new species in Oro and West New Britain, though this is less probable in the already disturbed areas.

As with other animal groups the diversity of the frog fauna is lower on New Britain than on mainland New Guinea. There are less than 20 described species on the island, but many of them are endemic to the islands. Most of these are Ranids of the Genus Platymantis.

The cane toad, (Bufo marinus), introduced to Kerevat in East New Britain, in the early 1900s, is very common in both project areas. Tadpoles of this species were observed in most watercourses studied in both Provinces. At Isivini Creek, Oro, they were very extremely common with very large numbers of small adults on the banks also. The adult toads are everywhere including in urban residential areas. The toad is toxic to most animals including most frog eating snakes, with the exception of the Keelback snake. Its impact on native fauna is unknown.

Reptiles

Freshwater turtles

None are known from West New Britain. One species is found in Oro, Elseya novaegiuneae. Its occurrence, or otherwise, in oil palm streams is unknown.

Saltwater crocodiles (Crocodylus porosus) are found in the main rivers and lakes of both project areas.

In West New Britain the most important habitat is in lowland areas of the northern side of the province, the same area as much of the oil palm development is taking place. In a survey conducted in 1979 (Whitaker 1980) the main locations for the crocodile were the main rivers: Kulu, Kapiura and its tributaries (Metelen and Iglik Rivers - which are located about 40 km inland and at 200 m above sea level), lakes: Namo, Dakataua, Hargy, Lalilil, Kaluai, Mafuo and in the numerous round waters. It was estimated at the time that there were at least 8-9 nesting females around Lake Dakataua producing up to 250 to 300 crocodile eggs per year. While no recent

33 crocodile surveys have been carried out in West New Britain the status of this species and impact of agricultural development and logging since the late 1970s is unknown. However, crocodiles still exist in sufficient numbers to support an export trade. Geoffrey Ling's Export Company (first established in the 1970s), based at Buluma, is still operating, run now by his son. Currently this export company has 2 licensed buyers and exports in excess of 200 skins per year (Nundima pers com). Other markets include Mainland Holdings in Lae which buys skins and live animals from Kimbe. The manager of the Mainland Crocodile farm, David Wilkin, estimates that they receive in the order of 180 skins a year and about 120 live animals per year.

Oro Province is also an important habitat for the Saltwater Crocodile, especially around Musa. No exporter is based in the Province though Mainland Holdings used to have buyer based in Popondetta several years ago. Hunters still sell skins and live animals to Mainland Holdings. David Wilkin says that they receive more crocodiles from Oro than Kimbe and estimates the numbers to be on average 500 skins per year and 240 live animals per year.

Occasionally large crocodiles do kill local people. In one incidence a boy aged 13 was killed by a large crocodile at Barema, (north of Bialla), West New Britain, in 1995. He was allegedly the thirteenth victim of the same animal.

4.4 Protected Areas and Critical Habitats.

Habitat or species can be given protection by different laws and by different levels of government.

At the National level, administered by the Department of Environment and Conservation, there are Wildlife Management Areas (WMAs), Protected Areas and Protected Fauna which can be declared as such under the Fauna (Protection & Control) Act Chapter 154, National Parks under the National Parks Act and Conservation Areas under the Conservation Areas Act. At Provincial level the Provincial Government and Local Level Government (LLG) can also pass separate legislation for protecting habitats.

In West New Britain under Provincial laws tourism sites may be protected and under Local Government laws passed by the Talasea LLG, Hoskins LLG and Bialla LLG marine areas can be designated for protection.

Wildlife Management Areas.

Under a WMA landowners elect a committee to manage the area and draw up rules to govern how resources within the WMA are used. Areas are surveyed, a written boundary description prepared, and the areas then declared by the Minister for Environment and Conservation. The area boundaries, committee members and rules are gazetted.

In West New Britain Province two such areas are established: Garu WMA (8000 ha area, gazetted in 1975) on Willaumez Peninsula and Pokili WMA (9700 ha area, gazetted in 1977) south of Hoskins.

34 The areas were established for the management of wildfowl egg harvesting. Pokili WMA has reputedly one of the largest egg grounds in the world. Eggs have long been an important resource both in custom and for generating income. Pokili WMA has also become a stopover for bird spotting tours. Whether any benefits from these tours pass on to the landowners is not known.

The landowners of Garu WMA are from the same village (Garu), while for the Pokili WMA they come from 7 villages, these are:

* Vavua * Rapuri * Galilo * Koimumu * Makasili * Ubai * Lavegi

Both of these areas are adjacent to New Britain Palm Oil Ltd (NBPOL) estates and landowners are also utilizing other land on Village Oil Palm (VOP). Environmental consents for commercial oil palm estates prohibits the planting of oil palm within 300 m of the gazetted boundary of a WMA.

In Oro Province only one WMA, Hombareta WMA, has been declared. It is located about 7 kilometres from Popondetta Town. This is a 130 ha area and was declared in 1997. Food plants of the Queen Alexandraes Birdwing Butterfly (QABB) are found in this area and there were sightings of QABB. However since the declaration of the area there have been no more signs of the QABB. It is suspected that the area is too small and isolated due to the planting of oil palm around the WMA.

4.4.2 Proposed Areas

In Oro Province Lejo is a 37 ha block of rainforest leased by Higaturu Oil Palms from the State. While the area is not formally protected the company has set it aside as a reserve area.

Food plants for QABB have been established at the reserve and were used as the main nursery for producing food plant vines in large numbers for planting out in the 1980s. QABB has recently been seen on the reserve area (Graham King pers com).

In addition to Lejo the following areas are proposed as WMAs, specifically for the protection of the QABB:

* Baihere (74 ha) * Voivoro (240 ha) . Indawari * Bambohambo (200 ha) • Ingababari (300 ha) . Kausada

35 * Beauru * Siai * Epa

Many of these areas have been proposed for many years and it is important that the Government acts to have them declared as soon as possible to avoid loss of interest by the local landowners in the WMA concept.

In West New Britain Province several areas have been recommended for declaration under the National Parks Act. These include

* Lake Dakataua * Lake Hargy * Balima * Lake Namo * Lorko Government Station

The first step towards creating a National Park is the reservation of the land under the Lands Act for the purposes of a national park. After this step submission to Cabinet would be required for the National Park to become legally protected. Where the area is under customary ownership it is very difficult to establish a National Park, this is the main reason why there are so few in PNG and why those that have been established are so small. Lorko has been reserved under the Lands Act; Balima (even though on state land) has not. The other areas are under customary ownership and have not been pursued further. Steps to declare Lorko formally under Parks Act has not been done. The Department of Environment and Conservation is currently reviewing all the proposed protected areas before taking further steps (Rose pers com)

4.4.3 Critical Habitats

Conservation Needs Assessment (CNA)

In 1992 a Conservation Needs Assessment (CNA) was carried out to assess areas of critical importance for conservation. The CNA identifies biodiversity "hotspot" areas to allow for conservation of as many species as possible.

West New Britain

While much of the coastal area in which oil palm is developed is "unassigned", there are some important habitats in the project area.

Much of the Willaumez Peninsula is rated as "High Priority for Conservation" (HPC) due to its diversity of flora (upwards of 2000 species). A Paristolochia(Birdwing Butterfly food plant) species only previously known from Arfak Mountains in Irian Jaya has been found on the peninsula in 1989

An area from the coast inland incorporating Lake Namo west of the peninsula is rated as "Very High Priority Wetland" (VHPW). The coast from Eleonora and Riebeck Bays west of the peninsula to Stettin Bay on the east is rated as a 'Marine Priority"

36 (MP). The inland area behind the peninsula across the island is rated as a "Critical Watershed" (CW).

In Oro the area to the south of Popondetta (starting 20km south) is rated as "High Priority" and to the north (starting about 20km north) is rated as "Very High Priority Wetland".

Oil Palm developments, especially mini estates (Voulpai, Lolokoru) and VOP development, in West New Britain are occurring on Willaumez Peninsula, (affecting about half of the area regarded as HPC) and in the Lake Namo area which is a VHPW. The Kulu Dagi, Namundo, Garu, Haella Plantations and VOP developments all occur within the CW area.

Lake Dakataua and Willaumez Peninsula - is an important area for flora and is a very diverse area of lowland rainforest on recent rich volcanic soils. The overall species diversity is estimated to be 2000+

Talasea Geothermal region interesting succession communities associated with local area - Nepenthese and Fern flora

Areas of critical habitat recommended by Walain Ulaiwi of The Nature Conservancy, an NGO, based near Kimbe, include:

* Delta area of Kapiura River both western and eastern side together with associated lakes and remaining tract of rainforest

* Padi River on border of West and East New Britain Provinces, delta and catchments including the mangroves and wetlands

4.4.4 Proposed Tourist Areas

The West New Britain Provincial Government has passed legislation to allow for the protection of tourist sites.

Several sites were gazetted as proposed tourist areas in 1996. Some of the areas proposed are existing Wildlife Management Areas. A complete list of these areas can be found in appendix.

The Project will not impact any of the protected areas described above. The Environmental Management Plan contains a detailed section on the use of site sensitivity analysis to determine whether a block of land would be acceptable for inclusion under SADP (section, 4.6.1 Identification of Environmentally Sensitive Sites, Critical Habitats and Protected Areas) in accordance with the PNG legislation and the World Bank's OP 4.04 Critical Natural Habitats.

4.5 Chemical Use by Smallholders

Smallholders use much less fertilizer than recommended and most prefer not to purchase fertilizer from their earnings from sales of FFB even though this would lead to a significant increase in their harvest.

37 There is evidence also that even when fertilizer is purchased it is not applied. Bags of fertilizer were observed left where they were delivered by the roadside. From the state of the bags they had obviously been there for some time. One of the OPIC field staff pointed out that block holders would prefer OPIC to apply the fertilizer.

Some oil palm growers do not seem to understand what fertilizers are used for and in Kimbe were blaming the application of fertilizer on their oil palm blocks for the decline of food produce on their adjacent garden plots.

Pesticide use was even lower than fertilizer use. Only herbicides were are used and for smallholders to purchase herbicides from the commercial oil palm companies they are required to have received training covering proper application, safety, disposal of containers etc. In Bialla use of herbicides by smallholders was actively discouraged and no training given.

Farmers can purchase chemicals from agricultural suppliers in Kimbe. How much is being obtained in this way has not been ascertained. In Popondetta such chemicals could only be obtained from the oil palm companies as no agricultural suppliers are based in Popondetta.

Killing of mature oil palm is done by trained OPIC staff only and now only using glyphosate.

4.6 Socio-economic Environment

4.6.1 Introduction

Smallholder oil palm schemes started at different times in the two provinces:

* Hoskins (Nahavio)- 1968 * Bialla- 1972 * Popondetta- 1976

In all cases the smallholder schemes commenced once commercial oil palm operations were established and mills built. Initially Land Settlement Schemes (LSS) would be started which involved settlers from other provinces, usually the overpopulated parts of Simbu, East Sepik, East New Britain, Enga, and Morobe. The blocks were generally 6 hectare in area with the intention that 4 be planted with oil palm and 2 reserved for gardening. Once the LSS schemes were established local villagers were assisted to start Village Oil Palm (VOP). In the West New Britain Province many local people have, "sold" land through "customary purchase" to outsiders to develop oil palm (and continue to do so). This group is treated as part of the VOP scheme.

When the schemes were started the areas chosen for LSS had low population densities. In the 30 years since the schemes started the PNG populations has more than doubled. Families on blocks are now often made up of two to three generations. The overcrowding on blocks, large number of under employed youths and the

38 growing resentment felt by the traditional landowners near settlement schemes have led to many social problems.

The LSS blocks are now expected to support several families and the result is that the garden reserve areas have also been converted to oil palm. Block holders have to go elsewhere to make gardens.

Natural resources for building houses and firewood are in short supply on LSS blocks (some block holders were forced to use oil palm fronds) and even in some VOP areas where they have planted too much land to oil palm, or sold too much land through Customary Purchase. In Oro Province there were cases where villagers had to buy timber from neighboring villages in Buna as they no longer had any such on their own land.

4.7.2 Social and Cultural Features

4.7.2.1 Demography

West New Britain Province

West New Britain Province comprises 11 Local Level Govemment (LLG) areas (including the Kimbe Urban LLG, and has a total population of 184,500 persons. The oil palm growing regions of the West New Britain Province falls within four of these LLGs. These are Talasea, Mosa, Hoskins and Bialla. The total population of these four LLGs is over 100,000 persons and represents 55% of the total population of the province.

Table 4.7: Population details for these four LLGs for West New Britain Province.

LLG Households Persons Males Females Talasea 4,169 20,522 11,343 9,179 Mosa 4,190 24,837 13,610 11,227 Hoskins 3,172 19,327 10,135 9,192 Bialla 6,627 36,188 20,099 16,089 Total 18,158 109,874 55,187 45,687 Provincial 33,574 184,508 99,015 85,493 Total

Table 4.8: Population Profile for West New Britain Province.

age persons male female <15 79,629 41,786 37,843 15-44 86,170 46,723 39,447 >45 18,709 10,506 8,203 Total 184,508 99,015 85,493

39 Oro Province

The Oro province comprises 8 Local Level Government (LLG) areas (including the Popondetta Urban LLG), and has a total population of 133,065 persons. The oil palm growing regions of the Oro Province falls within four of these LLGs. These are Higaturu, Kokoda, Popondetta Urban (excluding the town area itself) and Oro Bay. The total population of these four LLGs is over 80,000 persons and represents 61 % of the total population of the province.

Table 4.9: The population details for theses four LLGs for Oro Province.

LLG Households Persons Males Females Higaturu 5,981 35,200 18,718 16,482 Kokoda 2,620 15,730 8,205 7,525 Oro Bay 3,395 19,944 10,539 9,405 Popondetta (excl. town) 1,770 10,928 5,779 5,146 Total 13,766 81,802 43,241 38,558 Provincial Total 22,566 133,065 69,857 63,208

Table 4.10: Population Profile for Oro Province.

age persons male female <15 57,767 30,230 27,537 15-44 59,849 31,245 28,604 >45 15,449 8,382 7,067 Total 133,065 69,857 63,208

2006 Demographic and Health Survey (Post Courier 17/10/06)

Results from phase one of the 2006 Demographic and Health Survey in Manus (Post Courier 17/10/06) indicate that the Manus population has increased by over 18% since the last National Census conducted in 2000. If this trend is the same in all parts of PNG then populations in West New Britain and Oro Provinces will have increased similarly. This would put the current population of the project areas at approximately 129,000 in West New Britain Province (an increase of 20,000 persons from 2000) and in Oro Province at approximately 96,500 (an increase of about 15,000 persons from 2000)

4.7.2.2 Religion

The majority in the Oro Province belong to the Anglican Church. Other religions of importance are the Pentecostals, Evangelical Lutherans, and Seventh Day Adventists. Membership of the 5 main religions is shown in the following table. While VOP growers, being from Oro, are predominantly members of the Anglican Church the religion of settlers on the LSS blocks will largely reflect their province of origin

40 Table 4.11: Membership of the 5 main religions in the Oro Province

Religion Persons Anglican 80,178 Pentecostal 22,298 Seventh Day Adventists 8,451 Evangelical Lutherans 4,636 Roman Catholic 2,493

The majority in the West New Britain Province belong to the Roman Catholic Church. Other religions of importance are the Pentecostals, United Church, Seventh Day Adventists, and Evangelical Lutherans. Membership of the 5 main religions is shown in the following table. While VOP growers, being from West New Britain Province, are predominantly members of the Roman Catholic Church the religion of settlers on the LSS and Customary Purchase blocks will largely reflect their province of origin

Table 4.12: Membership of the 5 main religions in the West New Britain Province

Religion Persons Roman Catholic 101,376 Pentecostal 16,414 United Church 15,291 Seventh Day Adventists 11,900 Evangelical Lutherans 10,476

4.7.2.3 Migration

In the Oro Province out of a total population of 133,000 the number of migrants recorded is 21,175. Of these the two thirds are internal migrants, i.e. they have either migrated within the particular District they are living in or have migrated within the province itself. The remaining 8,705 have migrated from other provinces with most (over 5,082) of these coming from the four provinces adjacent to Oro, the remaining 3,623 come from all other 16 provinces The main 4 provinces from which migrants have come to Oro are shown in the table below.

Table 4.13: The four main provinces from which migrants from outside the Oro Province originate

Province Persons Morobe 2,024 National Capital District 1,297 Milne Bay 882 Central 879

In the West New Britain Province out of a total population of 182,036 the number of migrants recorded is 53,818. Of these 27 % are internal migrants, i.e. they have either migrated within the particular District they are living in or have migrated within the

41 province itself The remaining 39,260 have migrated from other provinces. The largest numbers of migrants come from the adjoining East New Britain Province. From mainland provinces the main sources of migration are the East Sepik, Morobe, Chimbu and the Southern Highlands.

Table 4.14: The five main provinces from which migrants from outside the West New Britain Province originate

Province Persons East New Britain 10,002 East Sepik 8,216 Morobe 5,193 Chimbu 2,648 Southern Highlands 2,453

4.7.2.4 Attendance at School

Oro Province

The 2000 National Census reported that of the age group 5 to 29 years (totaling 73,347 people) 17,800 were attending school at that time and a further 25, 791 who had attended school in the past. The number who had never attended school was 28,145 - as about half of this group was in the 5 - 9 years age group and as schooling generally starts for children at 7 years many of these would probably have started school later.

4.7.2.5 Literacy and Language

Traditionally people from the Oro Province, as part of Papua, would be regarded as a Motu speaking. However, this is no longer so and the census figures show that Pidgin speakers (32,023 people are literate in Pidgin) are more common than Motu speakers (7,263 are literate in Motu). 48,493 were reported to be literate in English.

West New Britain Province is a predominantly Pidgin speaking province with 80, 946 people being literate in Pidgin. English is also important with 61,007 reported to be literate in English. There are 6 vernacular languages spoken in the project area the main ones being Bola, Bebeli and Nakanai in the Kimbe/Hoskins area and Manseng and Meramera in the Bialla District.

Table 4.15: Languages and number of speakers in the project area Language Region Number of Speakers Bola Talasea District 13,746 Bebeli Talasea District 1,050 Nakanai Hoskins District 13,000 Manseng Bialla District (coastal) 2,500 Meramera Bialla District (coastal) 2,000 Pele Ata Bialla District (inland) 1,900

42 4.7.2.6 Economic Activity

The majority of people in both the Oro Province (86 %) and the West New Britain Province (77%) are involved in agricultural activity, either for cash or for their own use. In Oro out of 21, 840 households the main cash crops are coffee (6,186 growers), a high altitude crop grown mainly in the Afore region, and oil palm (4,436 growers), which is a low altitude crop. In West New Britain out of 30,672 households the main cash crops are coconuts (11,187 growers) and oil palm (8,191 growers). Betel nut and cocoa were also important cash crops.

4.7.3 Social and Economic Infrastructure

4.7.3.1 Communication infrastructure

Roads

In West New Britain an all weather road exists from west of Kimbe town to as far as Gilo in the Gazelle Peninsula, East New Britain. The road between Kimbe and Bialla is now sealed for much of the way. A sealed road also runs from Kimbe to Hoskins and beyond as far as Koimumu Village. In Oro an all-weather road runs from Kokoda to Popondetta and to Oro Bay. Road access to smallholders in both provinces is of varying quality, as many of the roads are former logging tracks and log bridges. Lack of maintenance has led to deterioration of these roads and due to loss of many of the small bridges some areas are either completely cut off or accessible by long detours via other roads. The poor roads cause delays in FFB pick ups and often loss of income from oil palm as the fruit rots before collection. In 2000 a washed out culvert on the Kokoda road led to the loss of 1,000 tonnes of FFB (Ellingson 2001).

Airstrips

The main airports are at Hoskins in the West New Britain Province and at Girua in the Oro Province. These airstrips accommodate both Air Niugini and third level airlines. Hoskins can take the F28 100 series and Girua the smaller Dash 8.

Smaller airstrips are at Bialla, and Talasea West New Britain Province (although these are not currently operational, they have been brought into service during times of emergency such as the eruption of Mt Pago in 2002, an eruption that closed the Hoskins airport for some time.

Wharves

There are government wharves at Kimbe, Bialla, and privately owned wharves at Ulamona and Buluma in West New Britain and a government wharf at Oro Bay in the Oro Province.

The Bialla wharf is maintained and managed on behalf of the government by Hargy Oil Palms Ltd.

43 Telephones

Main centres at Hoskins (including the Valoka Mission to the east of Hoskins), Kimbe and Bialla in West New Britain and Popondetta in the Oro Province have STD and ISD telephone services.

The mobile phone network commenced at Kimbe in 2006 and is accessible as far as the turnoff to Bialla about 20 km outside of Kimbe Town. It does not give coverage as far as the Hoskins airport (Babo pers com). It is also planned that the network will be introduced into Popondetta before the end of this year.

Radio Communication Network

Outside the main centres communication is difficult. Government outstations, missions and larger companies, such as the oil palm and logging companies, have radios.

Internet

Areas connected to the STD telephone network, i.e. main centres such as Hoskins, Kimbe and Bialla in West New Britain and Popondetta in the Oro Province have access to the internet. Access speeds are low.

Broadband access is still waiting for government approval. Once approval is given and once a pricing structure is developed remote areas will also have access to the internet.

Radio and Television Coverage

Radio

The National Broadcasting shortwave service operates out of Kimbe and services the whole of West New Britain province. A commercial radio service, Nau FM, also operates from Kimbe.

Provincial Radio in Popondetta which was off the air for some time only operates with the help of the National Broadcasting Commission in Port Moresby, even though it is a provincial function. The station has 8 staff (5 of whom are broadcasting officers).

Television

The local television network EM TV is available in Kimbe/Hoskins and in Popondetta. In Popondetta it is facilitated by the Higaturu Oil Palms for the oil palm growers. The signal is available around Popondetta town, parts of Oro bay, in Sangara and out towards Kokoda. In West New Britain the transmitter is located between Hoskins and Kimbe and serves that area only.

44 Cable TV operators are in most centres, and the local TV programmes are also made available by these operators. Cable TV systems are located at Hargy Oil Palms and at the Ulamona Sawmill in the Bialla District.

4.7.3.2 Service infrastructure

Schools

Elementary Schools

Most communities have elementary schools which teach from Prep to Grade 2. These are each staffed by up to 3 teachers and are of very basic design and construction. The oil palm companies have built elementary schools on their residential estates. These cater for 50 to 60 children; teachers are paid by the government. While they are primarily for employees children they do have limited space for children from outside.

Primary Schools/Community Schools

As with elementary schools most communities have primary schools which cater for grades above 3. These are usually the original community schools in existence before the education reforms. While many are upgraded to cater for grades 3 to 8 some are not. In communities where the schools only teach to grade 6 any children who wish to obtain education levels above grade 6 have to go to other centres. In many cases this can involve a long walk. For example children from Lavege Village south of Hoskins in West New Britain have to walk a total of nearly 14 kilometres (7 each way) every day to and from school at Ubai which teaches grades 7 and 8.

Popondetta Primary School (Mrs. Wairaf, deputy principal pers com) serves the children of parents living and working in the town. Its intake is from the Popondetta Elementary, United Church Elementary School and United Church Primary (the United Church School does not have grades above 6), the Biru Elementary and the PATI Elementary Schools.

The school has a total enrolment of 811 in 2006 (700 plus in 2005). While 29 teachers were expected for this year only 25 were provided. Under the reforms to be implemented there will be one teacher per class, as opposed to one for each subject in each grade. Class sizes are 45 to 50. The gender ratio is slightly more girls than boys.

Secondary Schools

Bialla High School currently caters for Grade 9 and 10 students only. When it opened in 1979 it taught grades 7 to 10. The first Grade 10 students graduated in 1982. With the top up system at primary schools Grade 7 and 8 is taught in the primary schools. Many High Schools were then able to teach Grade 11 and 12, at Bialla High School that has not been the case, though the school has made a submission for upgrading to be able to teach grades 11 and 12.

The student intake is from the various primary schools in the area, including some of the children who complete grade 8 at the Bialla International School.

45 The school has 560 students and 24 staff. The school caters for both day students and boarders (170-200 boarders). The ratio of male to female students is approximately 65 to 35.

Infrastructure is old and poorly maintained. Little assistance is provided by the industry even though most of the students are children of employees of Hargy Oil Palms Ltd or of oil palm block holders. Ablution blocks are not functioning properly and students are using pit toilets. The school has its own water supply (from groundwater) which was organized by the local Lutheran Women's group.

The school produces over 200 Grade 10 graduates each year, and 100 to 150 of these go on to Grade 11. This can only be done at Kimbe or Hoskins Secondary Schools or outside of the province.

Private Schools

Primary schools of the International Education Authority (IEA) are located at Bialla, Kimbe, in West New Britain and at Popondetta in the Oro Province. These teach up to Grade 8.

College of Distance Education (CODE)

There is a CODE office based in Kimbe and Hoskins and these provide distance education in PNG national curriculum to Grade 10.

Vocational Schools

Vocational schools are located at Popondetta, Sangara, Higaturu and at Mamba in Kokoda. The Sangara Vocational School (which is a level 4 school) is typical of most; it provides skills training for students who have dropped out of school at Grade 8 and Grade 10 (it also has two grade 6 leavers). The subjects taught are auto mechanics, carpentry, agriculture, home economics and commerce. The course is two years at the end of which they receive a vocational certificate. Total enrolment is 131 mostly boys (females started out at 15 at the beginning of this year but this has dwindled to only 8). Sangara has 5 staff, with a ceiling of 6. However accommodation is the limiting factor with only 4 houses.

Little outside assistance is given to the school. They have approached the local oil palm company but as yet nothing has eventuated. They have done a few small jobs like grass cutting in the past for money. Donor funds such as the Basic Education Development Project (BEDP) are not designed to assist vocational schools.

Technical Schools and Tertiary Institutions

The Oro Campus of the Vudal Agricultural University is situated in Popondetta. This teaches diploma courses in tropical agriculture.

A theological college, Newton College, is based at Jonita outside Popondetta.

46 A technical school run by the Catholic Church is located in the Mosa LLG.

University Centre

There is a University centre at Kimbe and at Bialla for students doing the matriculation course required for entry into university. The Bialla campus currently caters for 15 to 25 students from the area. Courses are run on Saturdays at the Bialla High School. The schools teachers are designated tutors. Lahars courses are also run.

Medical Services

It has not been possible to review all the health facilities in the project areas. There is also no definitive listing of all the health facilities that exist and their current status. Government aid posts are now under the responsibility of LLGs and due to lack of resources many of them are no longer functioning. The manager of the Bialla Health Centre estimates that about half of the aid posts in the Bialla sub district are closed. The oil palm companies all have well run and reasonably well resourced health facilities of their own. These are staffed by company employed health workers. While they are designed to cater for company employees they do also provide health care for others. For example at the Higaturu Oil Palm Health facilities in 2005 the number on non company employees and their dependents treated was 20% of all people treated (8500). In addition the company is also providing medical laboratory services for the government health centre and does testing for malaria, typhoid, HIV/AIDS, anemia, parasites etc.

Hospitals

The main hospitals are the Kimbe General Hospital (KGH), operating since 19738, in West New Britain Province and the Popondetta General Hospital, operating since the late 1960s in the Oro Province.

KGH is currently undergoing an upgrade worth K15 million, funded largely under the PNG Incentive Fund (AusAID) but also with support from NBPOL and the West New Britain Provincial Government. The hospital is currently grossly inadequate, for example it has beds for 20 mothers at any one time, whereas the demand is much higher (last year 5000 mothers were admitted for deliveries).

Clinics, Health Centres and Aid Posts

Bialla has its own Health Centre. The main problem is a lack of beds with only 10 for adults, 10 for children, 10 for maternity and 3 for delivery. There is no Tuberculosis (TB) ward and TB patients instead of being treated as in patients at the health centre they are being sent home to be treated as day patients. As a result many do not carry on with treatment leading to an increase in the incidence of TB and higher death rate. There have been 118 diagnosed with TB at Bialla this year.

' After the World War 2 until the early 1970s the main government hospital was located at Talasea which was then the main government centre, Kimhe developed as a direct result of the oil palm industry, and hecame the Provincial Capital

47 In addition the Bialla Health Centre vehicle is 10 years old and breaks down often. This means that there is no regular mobile mother/baby clinic. The local oil palm company does assist with vehicle maintenance.

There is no water supply at Bialla and there is a need for more catchment tanks

Law and Order

There are police stations at Kimbe, Hoskins, Buluma, Kapore and Bialla in the West New Britain Province and at Popondetta and Kokoda in the Oro Province.

Police posts are also located in smaller centres.

Community policing operates at the village or settlement level. In West New Britain Province this was regarded as effective and was preventing a lot of crime at community level such as drug trade etc. However there is considerable comment in the media about the level of serious crime in the province. At a recent inquiry into firearms concern at the number of guns in the province was raised. For example 4 policemen have been shot dead in the province in the last 10 years. One estimate had the number of high powered forearms in the Mosa LLG was 55 and that there were 5 guns at each of the 5 settlements in Kimbe. Guns were also a problem at Bialla and people there were appealing for an increase in the number of police personnel.

In Oro province the level of serious crime had dropped in recent years due to a crack down on law and order. A few years ago farm managers at Higaturu Oil Palm have been held up within estate boundaries by armed criminals. Now the situation is much better. However community policing in the block areas is regarded as ineffective and activities such as drug trade, including growing drugs on the blocks is common.

Fire-fighting

The provincial fire stations come under the PNG Fire Service. The organization is unable to provide a reliable service due to resource constraints.

Oro Provincial fire service has been without a fire truck for four years. (PC 20/10/06).

Kimbe Fire Service has a staff of 8 including Station Commander, Silas Kepas. It has not been able to provide a fire-fighting service in the oil palm smallholder blocks since January 2006; previously they had a fire tender (ex Bululo) which could attend to fires in these areas. This had had to be decommissioned. The only other fire tender is a 500 litre capacity suitable only in town where there are fire hydrants. The number of calls from the oil palm blocks during the dry season is in the order of 3-4 a day.

Other Government Services

Division of Agriculture

Oro Province has a Division of Agriculture and Livestock (DAL). It has about 28 staff within the province four at headquarters and the remainder posted to the various districts. A provincial wildlife officer is funded under the Agriculture and Livestock

48 Division and is one of the four staff based at headquarters. DAL provides advice on other agricultural activities other than oil palm. The Provincial Wildlife Officer is located with DAL and is responsible for matters related to the QABB and to protected areas.

A similar set up exists in Kimbe; however, there is no specific environmental function.

Oil Palm Industry Corporation (OPIC)

OPIC has offices in the centres of Kimbe, Bialla and Popondetta. OPIC managers and support staff are also based in the field.

Missions

The missions play a vital role in bringing social services to the people.

In West New Britain 90% of the population is Roman Catholic. The church has 19 parishes within the oil palm growing areas and a radio network links them all to the headquarters in Kimbe. The church responds to many social issues. These include * Women's affairs * Youth development * Peace & justice * Family life * HIV Aids

In Oro the majority of the population belongs to the Anglican Church.

Postal Services

Post Offices are located at Kimbe, Hoskins and Bialla in the West New Britain Province and at Popondetta in the Oro Province.

The Bialla Post Office has 174 post boxes, and not all are allocated. Due to a hold up in July the Post Office was closed for one month, and has only recently reopened.

Banking

Bank of South Pacific (BSP) has branches in Popondetta and Kimbe, Bialla. Westpac and Australian New Zealand Banking Group Ltd (ANZ) each have a branch at Kimbe. While ANZ does not have the same coverage that BSP has, it has signed an agreement with Post PNG for post offices to provide electronic banking at some of their branches. The programme for this service in West New Britain and Oro Provinces is not yet known.

49 Salim Moni Kwik

Post PNG runs a money transfer scheme called Salim Moni Kwik (SMK) which is available at most post offices that are connected to the telephone network. The Bialla service is currently suspended indefinitely due to an armed hold-up.

4.7.3.1 Commercial infrastructure

Trade stores

Most villages have small trade stores. Often individual stores operate for a while before closing when others start new ones. Liquor licenses are also issued to village retailers. Vavua for example has 3 (Babo pers com). Drunkenness is an issue in villages in the Kimbe Hoskins area.

PMVs

Most of the villages have one or two PMVs or trucks which carry passengers into main urban centres

NBPOL Foundation

A fund established by NBPOL for social infrastructure projects in the Kimbe Hoskins area.

NBPOL Trust Fund

This is a fund established by the West New Britain Provincial Government to manage the dividend payments from its 18 million shares in New Britain Palm Oil. The charter of the fund is for its use to improve the health and educational services to the people of West New Britain.

Fund for retired or retrenched public servants

The West New Britain Provincial Government has recently established a fund for retiring public servants with an initial input of KI million.

4.7.4 Cultural Sites and Material Cultural Conservation

Cultural and Archaeological

Sites near active volcanoes often contain archaeological sites preserved under layers of volcanic ash. This is especially true of West New Britain. Several sites have been studied in the Numundo areas. Sites are often on high ground and hill or ridge tops and areas ideal for roads.

Data on sacred sites such as burial sites was not available.

50 5. Potential Environmental Impacts

This section summarizes the environmental issues and any potential significant adverse environmental impacts that may arise during the implementation and operation of the project (Note: individual smallholder blocks are 2 ha in size and will be located along existing feeder roads).

All existing mills in Papua New Guinea are ISO 140001 certified and therefore have procedures in place to mitigate any potential environmental damage and are regularly audited.

The industry has an elaborate Integrated Pest Management regime which is described below and in the EMP.

5.1 Potential Environmental Impacts on Subsistence Resources

5.1.1 Water supplies

5.1.1.1 Potential Impacts from Block Clearance

Water supplies can be affected by a wide range of contaminants from a variety of sources during land clearance and road re-construction. During land clearance for planting oil palm, plant debris and exposed soil can be carried by wind or surface drainage into nearby creeks, obstructing flows and causing increased sedimentation which can affect the quality of the water and lead to nutrient enrichment and the formation of stagnant pools, affecting the quality of the water for downstream users.

5.1.1.2 Potential Impacts from Road Re-construction

Likewise, several of the activities involved in the re-construction of roads, including the winning of gravel and the installation of culverts and other waterway drainage, can pose a significant risk of sedimentation and contamination of waterways downstream of the road construction site. The installation of culverts may require that the creek is partially dammed or diverted to allow work to be completed, and this may result in a temporary reduction or cessation of flow for some of the users downstream.

5.1.1.3 Impacts from smallholders

Smallholders themselves can have negative impacts on water supply. This can be through inappropriate siting of toilets, use of laundry soaps and bleach while washing clothes. Also through the inappropriate washing of containers that have contained hazardous chemicals

5.1.2 Protection of gardens and garden drainage systems

Gardens are a vital subsistence resource which provides many families with their only source of cash income. Gardens in production will usually be tended everyday by the landowner. Road construction has the potential to disrupt this social activity.

5.1.2.1 Impacts on Garden Drainage during Road Reconstruction

51 Effective garden drainage is important in maintaining garden productivity and avoiding water-logging or inundation of the garden soils. Road construction has the potential to disrupt the efficient drainage of neighboring gardens by spilling storm-waters and contaminated site drainage waters directly onto adjoining garden plots or indirectly by discharging these in an area where they can enter a garden drainage system. This could result in flooding of the garden and / or contamination of the garden soil with drainage sediments and mud, both of which (but particularly the smothering by sediments from temporary site drainage) can cause substantial damage to garden productivity and land value. Likewise the temporary site drainage and / or the permanent road drains may result in the obstruction or diversion of garden drains in a manner that may cause their drainage waters to back up in the garden.

Dust can also have a damaging impact on garden crops, particularly those close to being harvested.

5.2 Potential Environmental Impacts on Soils

The potential environmental impacts on the soils of the project area are: * loss of soil from exposed surfaces through erosion by water and wind, and the subsequent sedimentation of downstream waters; * the contamination of soils by wastes and other materials (including excessive amounts of fine silts resulting from erosion).

Loss of surface soils (particularly the nutrient- and organic-rich topsoil) depletes the nutrient resources which can result in a loss of plant diversity which may in tum result in a loss, or migration out, of fauna from the area.

5.2.1 Erosion

5.2.1.1 Land Clearance

Land clearance either for oil palm planting or for road reconstruction leaves the bare soil susceptible to erosion if not revegetated quickly.

5.2.1.2 Areas particularly susceptible to erosion

Certain areas such as stockpiles and spoil-heaps are particularly susceptible to erosion. 5.2.1.3 Gravel Extraction Sites

Gravels for this project will be extracted from dry pits and from riverside gravel banks. Gravel extraction sites are particularly prone to erosion as the extraction operations inevitably expose the working area to erosion from wind and water, 5.2.1.4 Gravel Sorting and Screening

Gravel screening and sorting generates large volumes of dusts (fine sands and silts) that are particularly susceptible to mobilization by wind in dry weather or rain-splash and entrainment in surface runoff during periods of rain. Dusts can smother

52 vegetation and cause severe disruption to soil micro-habitats. Gravel dusts falling onto the soil surface are likely to be entrained by surface runoff during rain periods, where they are carried by overland flow into surface watercourses leading to sedimentation impacts on the aquatic habitats and biota downstream.

5.2.2 Contamination of soils

Soils can be contaminated by: * inert material such as silts and mud, cement dust or concrete fines and slurries which change the material composition and textural properties of the soil; . biodegradable materials which can be toxic at high concentrations but are broken down over time by soil bacteria to yield nutrients and other soil materials; and, * non-biodegradable toxic contaminants which are not broken down by most common soil bacteria and so will continue to poison soil communities for a long time.

5.2.2.1 Contamination by inert materials

Fine particles of inert material such as silts, dust and mud can block soil pores restricting soil ventilation and the natural drainage of soil waters. This can lead to water-logging of the soils and the development of anaerobic conditions, disrupting the release and re-cycling of nutrients resulting in a loss of soil condition and fertility. This can lead to a decline in plant diversity and flow-on effects on the fauna as the reduced plant diversity affects their habitat niches.

Road construction sites and operations such as gravel sorting can generate considerable amounts of fine particles which must be contained on site as far as practicable using dust control and silt / sediment containment measures such as fine mist sprays and tarpaulins, and silt and sediment traps at all site discharge points.

Some inert materials such as cement dust or concrete fines and slurries can have more damaging effects as they are more strongly bound to the soil particles by physic- chemical reaction and raise the pH value of the soil to more alkaline conditions. These represent more profound and permanent changes to the soil conditions and recovery can take many years.

5.2.2.2 Contamination by biodegradable / organic materials

Organically rich biodegradable materials (such as some oil palm debris and wastes) can impose a high oxygen demand on soils. Composting of oil palm debris in windrows can generate a high oxygen demand which must be alleviated by frequent turnings of the windrow every two or three days in the first instance to allow adequate ventilation and reduce the risk of an oxygen deficit developing in the surface soils.

However, the main environmental concem regarding the contamination of soils by biodegradable materials is the potential for these to enter surface waters and groundwater, where they may also generate oxygen deficits which may, in turn, lead to anaerobic conditions and the poisoning of the water, rendering it unsuitable for domestic purposes and causing significant loss of aquatic biota

53 Another organically rich biodegradable material that has to be considered in the context of this program is human faecal waste (excrement). The potential public health risk is severe as the faecal coliforms, such as E. coli, and faecal streptococci, can survive a considerable length of time in soils and water.

5.2.2.3 Contamination by toxic materials

Toxic contaminants are particularly pernicious and can affect a wide area, spreading through the food chain and through surface waters and groundwater from the initial soil contamination site. Severe soil contamination, particularly by toxic materials, can have a devastating affect on the affected area's flora and fauna, that may reduce the floral diversity to just a handful of particularly hardy / tolerant species that are totally unable to support the range of faunal species that previously inhabited the area.

Soils contaminated by toxic materials cannot be used for cultivation as their produce would pose a significant threat to public health, nor can local surface waters and groundwater be used for domestic purposes for the same reason. As most of the inhabitants within the project area depend upon the cultivation of gardens and the use of natural waters for their domestic supplies, toxic contamination of soils must be avoided.

Contamination of soils by toxic materials can arise directly through the careless disposal of wastes and spilling of toxic materials such as pesticides (in the context of oil palm operations these will include herbicides and insecticides), fuels, lubricants, solvents and cleansing agents.

Two common causes of toxic soil contamination that are relevant to this program are: * excessive application of herbicides or pesticides during the preparation and operation of oil palm blocks. * oil, and other hydrocarbon, spills and leaks from vehicle and machinery repairs.

5.3 Surface Waters

5.3.1 Impacts on Surface Flow Regimes

The construction of roads can have significant effects on the natural drainage patterns of an area, particularly where the drainage pattem is a mosaic of small meandering streams that characterize many alluvial plains, including the Popondetta Plains. If adequate cross drainage is not provided, natural drainage paths are obstructed by the road and its foundations, causing surface runoff to back up along the upstream channel, leading to flooding, surface ponding and water-logging of the soils on the upstream side.

As the stream backs up, water levels rise and spill over the road, which will expose the road to erosion by surface wash, particularly if traffic continues to use the road when it is partially inundated. Under these conditions, potholes quickly form as the floodwater finds weaknesses in the road surface and penetrate beneath the compaction layer, causing wash-out and surface collapse. Not only does this severely damage the road and increase maintenance costs considerably, but also erodes considerable

54 quantities of sediment from the road which can cause significant sedimentation of the downstream channel and its habitats and users (see below).

Poorly designed or incorrectly installed culverts can adversely affect the natural flow characteristics (such as velocity and turbulence) of a stream channel and can result in substantial build-up of sediments on the upstream side which obstruct the culvert. This causes a restriction in flow, leading to water backing up and flooding on the upstream side, allowing water to spill over the road (see above).

5.3.2 Impacts on Surface Water Quality

Clearance of new blocks, preparation of soils prior to planting / re-planting, the application of pesticides such as herbicides and fungicides, the application of fertilizers and the reconstruction / upgrading of roads can all have potentially significant impacts on the surface water quality. Four main types of impacts on surface water quality can be distinguished: * sedimentation; * eutrophication; * toxic contamination. * smallholder activities

Other potential impacts relate to the contamination of surface waters with construction materials, construction wastes, equipment repair / maintenance wastes, and camp / personnel wastes.

5.3.2.1 Sedimentation

Clearance and Block Planting / Re-planting

High concentrations of in-stream sediments result from the erosion of exposed soil surfaces during clearance and block planting / re-planting operations. Wind erosion can carry soil particles into adjoining streams. Rainfall, especially the short periods of intense rainfall that characterise the coastal areas of Oro Province and West New Britain can mobilise large amount of sediment from exposed soil surfaces which will inevitably find their way into the nearby creeks and streams unless effective measures are taken to minimise the area of exposure and contain and trap the sediment before it can reach the waterways.

Road Re-construction / Upgrading

Road re-construction and upgrading activities including: * Culvert construction * Earthworks, equipment storage and repair areas, and stockpiles * Cleared vegetation and any excavated material * Gravel Extraction Sites,

can be a significant source of waterway sedimentation. Aerial fallout from wind-blown dusts and fine particles can cause some degree of sedimentation in waterways (particularly increases in turbidity from the suspension of fine sediments), following pathways described above for fertilisers, and dust control measures should be adopted at

55 all road construction sites. However, the major source of waterway sedimentation from road construction sites is through sediment laden storm-waters entering streamside catchments or discharging directly into the stream.

Although all the road re-construction sites will generate sediments and construction debris, the amount generated by road surface leveling, gravelling and compaction will be minor and except where the site is close to a stream or river, should not pose a significant risk to downstream waters. However, at other sites the amount of sediment and construction debris generated may be substantial.

5.3.2.2 Eutrophication

Eutrophication, the nutrient enrichment of natural waters, is not uncommon downstream of intense agriculture operations, particularly where these involve the application of synthetic fertilisers which are characteristically soluble in water and thus readily enter overland flows and the surface water table.

The excessive use of fertilisers (in excess of the prescribed dosages and rates of application), and the application of fertilisers during rainfall, will increase the amounts of fertilisers entering the surface water table and any overland flow or surface runoff that may occur. Fertilisers must be applied sparingly in accordance with the instructions and guidelines given by OPIC for each type of fertiliser used. The block owners should also be instructed by OPIC to exercise care to ensure that fertilisers are not applied during periods of rain, and preferably shortly after periods of rain when all surface waters have drained into the soil.

Inevitably some fertilisers will move through the surface water table beyond the area of the oil palm block and could enter adjoining creeks and streams if the block extends to the stream edge.

The application of fertilisers during periods of high wind can result in the fertilisers being carried beyond their intended target, depending on the method(s) of application. In these circumstances, the fertilisers can affect the surrounding vegetation, with some plant species suffering adverse effects and over time this may affect the natural plant communities and soils around the block. In time this may affect the range of habitat niches and sustainability of the surrounding natural communities. Wind can also carry fertilisers into waterways through aerial fallout, directly into the creek or stream and indirectly onto adjacent soils and vegetation from where rainfall and surface runoff will carry the fertilizers into the stream.

5.3.2.3 Toxic Contamination

Herbicide Use

The risks of toxic contamination of surface waters arises from the inappropriate or careless storage, use or disposal of herbicides and vehicle and equipment fuels, lubricants, solvents and cleansing agents.

56 Road Re-construction

Road re-construction operations can also pose risks of toxic contamination of surface waters where the operational site is alongside or close to a watercourse or water-body. The risk of toxic contamination of site drainage waters and storm-waters comes from a variety of road construction materials and wastes such as hydrocarbons (fuel and lubricants), solvents and degreasers, concrete additives, paints and steel coating treatments, and cleaning agents.

5.3.2.4.1 Smallholder activities

Now that oil palm planting is not allowed to be planted in buffer zones along watercourses there is a tendency for smallholders to make use of this land for gardening. This will increase erosion and contamination of the watercourse and will require attention under the environmental awareness program provided under SADP.

5.3.2.5 Current strategy for the management of oil palm pests in Papua New Guinea

The diverse array of insect pest taxa attacking oil palm in Papua New Guinea are managed by adherence to the principles of IPM (Integrated Pest Management), using the array of options available which have maximum effect on the pest and minimum effects on environmental and human health.

The PNG Oil Palm Research Association Inc. (PNGOPRA) coordinates all elements in the implementation of PNG's oil palm IPM. The backbone to the use of IPM is the requirement for effective monitoring of pest populations. PNGOPRA undertakes such monitoring and actively promotes, through training & awareness, the reporting of suspected infestations by all stakeholders.

The approach used for the control of oil palm pests follows strict procedures:

1. Reports of infestations received by PNGOPRA. 2. Every reported infestation is visited by PNGOPRA's entomology staff, or followed up under guidance from PNGOPRA. 3. PNGOPRA conducts an assessment as to the nature of the infestation, taxon involved and the probable economic impact. 4. Recommendations are made by PNGOPRA detailing action to be taken. Chemical treatment of palms, through trunk injection, may be recommended. Recommendations are normally acted upon rapidly by the industry.

There are nine major pest taxa attacking oil palms in PNG, of which five are regularly implicated in causing economic loss. Other taxa are of less importance, although sporadic and localised damage may occur and require intervention, this seldom involves the use of insecticides.

Prominent taxa presently recognised as being of economic importance are: Orthoptera: Tettigoniidae, (two genera, four species).

57 Phasmida: Phasmatidae, (one genus, two species). Coleoptera: Scarabaeidae, (five genera, at least eight species). Localised infestations of bagworms, (Lepidoptera: Psychidae) may occur. Such infestations seldom require control, due to the effective intervention of a wide array of natural enemies. PNGOPRA has rarely had to advocate the use of chemical insecticides to control bagworms.

Current management options used by PNGOPRA for the oil palm industry in PNG may be summarised as follows:

* Biological control using parasitoids, and the encouragement of natural enemies. A baculo-virus is used in conjunction with an aggregation pheromone to control Oryctes beetles, and the entomopathogenic fungus Metarhizium has been investigated as a potential control agent. * Biological control agents are used to attack egg, nymphal and adult stages of the Tettigoniidae (Sexava) pest species. * Biological control using "beneficial predators" (sensu lato); such as the insects used in the control of Chromolaena and water hyacinth. Research has also started on developing insect biological control for the weed Mikania. * Cultural control, such as management of vegetation cover crop and nectar producing plants to sustain populations of natural predators and parasites of pest species. * Mechanical control; such as oil palm sanitation, palm circle clearing, physical (hand) removal of pests in specific instances e.g. on young plantings, nurseries and typically with attacks from Scapanes &Papuana. * Accurate and strictly controlled insecticide application through targeted treatment of affected palms, using trunk drilling and injection. Spray treatment with chemical insecticide is not permitted.

The insecticide used for trunk injection of oil palm in PNG is methamidophos. It should be noted that the PNG Department of Environment & Conservation (DEC) approves the importation of methamidophos into PNG under the strict conditions that: a) it is for the sole purpose of controlling oil palm pests by trunk injection, b) that the treatment is carried out by supervised and trained treatment teams, and c) that the treatment is in strict accordance with authorised PNGOPRA recommendations. This form, and an attached map of areas to be treated, constitute PNG OPRA's authorised treatment recommendation; any deviation from these recommendations will constitute an offence and will be reported to DEC.

Prophylactic spraying of any pesticide in any area of oil palm, be it nursery or plantation, is actively discouraged. In fact under the PNG oil palm industry's commitment to RSPO, prophylactic use of pesticides is not allowed and would constitute 'non-compliance'.

5.4 Flora and Fauna

The principle impacts on natural flora and fauna result from the disturbance to, and loss of, habitat as a result of vegetation clearance during oil palm block preparation,

58 hunting and harvesting activities of smallholders, and from the clearance of roadside vegetation during road reconstruction and upgrading works.

5.4.1 Critical Habitats and Protected Areas

The provinces within which the Smallholder Agriculture Development Project areas are located contain a variety of critical habitats (with high to very high conservation value) and a number of protected areas and areas proposed for protection. These provinces contain extensive forested areas as well as small to medium sized patches of remnant forest which often serve as vital habitat refuges and wildlife corridors allowing movement of wildlife and dissemination of plants through areas which would otherwise be inaccessible to them. For many species this movement is crucial in maintaining their geographic range and the number and diversity of local populations.

OPIC has given assurances that no forested areas will be cleared in this program, in fact the World Bank's Forestry (OP/GP 4.36), Natural Habitats (OP/BP 4.04), specifically prohibits financing of such activities . It is understood that all the new blocks that are designated to be cleared are located in areas where the vegetation has already been highly modified through selective logging, often followed by salvage logging and subsistence gardening activities, and where there is no forest or remnant forest patches that would be threatened or encroached into by this clearance and the establishment of the blocks. Likewise, all road reconstruction will be carried out along existing road corridors where the roadside vegetation and immediate hinterland is already modified.

The provinces in which the Smallholder Agriculture Development Project will operate contain several gazetted Wildlife Management Areas (WMAs), Parks and other reserve areas, as well as many areas which have been identified as having particular conservation importance or value and have been proposed for protection or are awaiting gazettal. All new blocks, and any re-alignment of road corridors and the siting of gravel extraction operations and any other project-related activities must avoid these areas and should not encroach within 100 metres of any gazetted WMAs, Parks or Reserves.

However, the project provinces also contain other areas of particular conservation value or environmental sensitivity which, although not gazetted or even proposed for gazettal, should not be encroached upon. In order to expedite decisions on any expansion of oil palm, a system of land categorization according to the area's environmental sensitivity, conservation value and importance has been developed.

Any expansion of oil palm into new areas in which there is a likelihood that they might contain moderate to high habitat sensitivity or conservation value should be restricted until a Site Sensitivity Survey to assess the site's environmental sensitivity and conservation value has been carried out by the project Environmental Officer.

One can distinguish several categories of land according to their environmental sensitivity, conservation status, value and importance. Throughout most, if not all, of the project locations (new blocks and road reconstruction sites), the land has already been significantly modified through previous gardening or other intensive subsistence

59 use. With little if any of the original vegetation remaining, these lands are characteristically modified with typical secondary re-growth vegetation or are currently in use as gardens or fallow ground.

In areas where they occur, this type of vegetation and the habitats associated with it are widespread and modification, or even clearance, of this secondary regrowth vegetation from new block sites and from any road re-alignments is most unlikely to significantly reduce the extent or availability of this type of vegetation and habitat. Given its highly modified nature and the extent of its widespread coverage, this land is categorized as having a Site Sensitivity Nil under the Site Sensitivity system.

Within the project provinces there will inevitably be areas in which the vegetation appears to have been little modified and for which little is known of its environmental sensitivity or conservation value. As these are areas where the vegetation does not appear to have been significantly modified, they are clearly not in the Site Sensitivity Nil category, and so are assigned to the Site Sensitivity I category. All areas assigned to this category have unknown conservation status or value, but by the nature of their vegetation, could contain areas and sites of high or very high conservation value, or areas of particular environmental sensitivity.

Any project sites or locations occurring within a Site Sensitivity I land area must be surveyed in detail to determine whether they contain or could threaten any sensitive environments, critical habitats or conservation values. An inspection survey report evaluating the conservation value or importance of the area will be submitted to OPIC, the in each case.

In contrast, land with a clear and demonstrated conservation value that has been recognised as such by its gazettal as a protected area (Parks, Reserves and Wildlife Management Areas) are assigned to Site Sensitivity 2 category. These are all lands for which no program activity, operation or site must encroach within 100 metres of the boundary.

Several areas in the program provinces have been widely recognised as containing particular conservation values or importance. In many instances these have been proposed for gazettal and are currently awaiting endorsement and / or completion of the detailed application to the relevant government agency. Lands in this category will also be assigned to the Site Sensitivity 2 category. If road reconstruction requires the re-alignment of the road corridor in an area categorized as having a Site Sensitivity Status of I or 2 (see above), the re-alignment must be subject to, and dependent on, a detailed site survey along the entirety of the new alignment by the Environmental Officer. The detailed site survey of any new road alignments must extend back at least 250 metres either side of the new alignment and 500 metres upstream and downstream of any stream or watercourse crossings. This is to allow adequate accommodation of the oil palm blocks, which can extend up to 200 metres back from the road and allowing for an additional 50 metres "buffer" between the block boundary and any sensitive or critical habitat, local reserve or protected area. The survey must include consultation and input from all the landowners with land affected or adjacent to the new alignment.

60 A summary of the proposed Site Sensitivity land area classification system for use in the identification of development sites in the Smallholder Agriculture Development Project is set out below:

Classification of Area by Conservation Value or Importance

Classification of Description of Vegetation in Area Development Indication Area Site Sensitivity Nil Significantly modified vegetation, Can be developed for oil characteristically gardens and palm and roads fallow Site Sensitivity I Conservation status / value Cannot be developed until unknown, expert survey required expert survey done, and before any development can be the area / site is re- considered assigned to Site sensitivity - Nil

Site Sensitivity 2 Conservation status known, high or Cannot be developed very high conservation value, but area is not formally protected. Conservation value recognised, Cannot be developed, area is gazetted as reserve, WMA cannot encroach within etc. 100 metres of boundary.

5.4.3 Potential Impacts from Road Reconstruction

5.4.3.1 Impacts on Fauna

Potential impacts on fauna will include:

* Temporary loss of roadside habitat as a result of vegetation clearance; * Temporary disturbance of aquatic habitats as a result of disturbance of stream flow patterns and downstream sedimentation; * Temporary physical disturbance of terrestrial fauna as a result of noise and dust levels.

Impacts on terrestrial fauna are expected to be minor and temporary as the areas affected are already disturbed and the species remaining have adapted to this disturbance over preceding years. Most of these track and roadside areas are currently under garden fallow or "trackside" vegetation. Although these areas offer suitable habitat for several species of bird such as wagtails, fantails and finches and a number of butterflies and other insects, this type of habitat is common and widespread throughout the project areas

61 Impacts on aquatic fauna and flora are also expected to be minor and temporary as any disruption to stream flow patterns during culvert installation will be quickly restored and the potential impacts of downstream sedimentation will be controlled by the rigorous application of sedimentation control measures at all road reconstruction sites adjacent to or crossing watercourses.

At the present time, the proposed road reconstruction program will not pose a significant threat to the habitats in these areas, providing all parties comply with the OPIC Guidelines of 1998, which prohibit the cutting of forest areas for planting with oil palm, and that any road realignments are subject to an expert survey of conservation status and value along the proposed new alignment.

5.5 Air Quality

Potential impacts on air quality are unlikely to be significant and will be limited to: occasional dust emissions (the project sites are in areas of high rainfall) some heavy plant exhaust emissions (road reconstruction only) and occasional wind-blown herbicide sprays during treatment operations (only applied by smallholders infrequently, and not at all project sites)

Impacts during road reconstruction will be of a temporary nature in any one location and will not reach concentrations which pose a risk of significant adverse impacts over this short period of time. Once the roads are operational, the frequency of harvest truck movements will not be sufficient for their exhaust emissions to cause adverse effects on air quality.

5.6 Noise

Noise impacts will arise from the road reconstruction machinery and from the gravel extraction, sorting and screening. The significance of these impacts will depend how close they are to areas of human settlement

5.6.1 Noise from Road Reconstruction

In the case of road reconstruction, noise impacts will be temporary in nature in any one location as the road construction advances and will not be of an intensity which causes significant adverse impacts over this short period of time. Furthermore, given the landowners desire for the construction of the roads and the short-term nature of the impacts, it is considered unlikely that noise impacts will result in any stated public nuisance.

5.6.2 Noise from Gravel Sorting and Screening

Although gravel extraction itself generates no more noise than other vehicle movements, the sorting and screening operations can generate higher noise levels. As these sorting and screening operations may be operating at any one site for several months, this may cause some minor disturbance to nearby families.

62 5.7 Cultural & Archaeological Sites

The establishment of new oil palm block sites and the re-alignment or widening of roads during reconstruction and upgrade has the potential to impact on sites of cultural, historical or archaeological importance. This impact can be direct, where the site is disturbed or damaged, or indirect, where access to or use of the site is adversely affected, disrupted or rendered inaccessible or unusable.

5.8 Public Disruption and Safety

The risk of public disruption and to safety is unlikely to arise from any new block establishments or replanting operations, but the reconstruction of the roads does pose a risk. However, it is considered unlikely that there will be any concerns raised by oil palm growers or other landowners during the road reconstruction as they all stand to benefit from the improved access to markets and government services that these upgraded roads will provide.

Stagnant water in depressions that result from road reconstruction works may provide habitats for the breeding of mosquitoes and other disease vectors. Such areas will be kept to a minimum as part of general site management procedures.

The accommodation of workers in villages during the construction phase could potentially lead to the spread of H1V/AIDS if adequate measures are not taken.

5.9 Oil Palm Milling Operations

The three SADP project areas are currently serviced by 7 palm oil mills. These mills in 2006 processed a total of 1.67 million tonnes of FFB; 38.6% of this was smallholder crop.

The palm oil mills produce three main commercial products; crude palm oil (CPO), palm kernel oil (PKO) and palm kernel expeller (PKE) (Figures 4a to 4c). In addition the, mills produce four main by-product or waste; palm oil mill effluent (POME), empty fruit bunches (EFB), fibre and shell. POME, in most instances, is treated in a series of digestion ponds. The output from the final pond has a biological oxygen demand (BOD) of <100 mg/I (the legal threshold value) and this is discharged to watercourses and used to irrigate oil palm fields. NBPOL and Hargy Oil Palms are operating EFB composting systems that use raw effluent. EFB is returned to the agricultural system as soil surface mulch or used to produce compost (with raw POME) for nursery or field application. Fibre and shell is used, in all cases, in the mill boilers to produce steam for heat and power generation.

63 - - + 4-- Figure 4areid Figre a j q , 32% refined l L .- i 68% exportedin-country; Mill Processing 2006 i - 6 xt NBPOL, West New Britain [Hoskins Project Area] Crude palm oil m-+ ' O% exported

I -OoO Palm kernel oil

I 100% used in-country as -gA W 4_ catfle feed CPO mill Palm kernel 34,000 t I - > o Palm kernel / ------expeller . _ fCommercial product 1029900t - Q , > CPO mill .

FFB- __ F8Pl < 4| 0 ,0 sc" olmileflet 85%"8%eated treatedan appieSd& icagdto to plantation watercourses; & compost 15%system

CPO mill Palm oil mill effluent

I 100% used as i) direct soil mulch and ii) in compost _ 1I production for nursery CPO mill Empty fruit I S \ bunches

I 100% used in mill boilers to produce steam for heat Fibre I and power generation

Shell By-product/waste

----++------

Figure 4b { - 100% exported Mill Processing 2006 . I Hargy Oil Palms, West New Britain I . [Bialla Project Area] Crude palm oil 100% exported P -4 X____ /O Pal nmkernel oil I

47% used in EFB --- composting system; 53% Pl11,300t used as organic fertiliser I Palm kernl Palm kemel I ------expeller - iCommercial product 294,700 t r 4 --

FFB CPO mill 53% treated & discharged to watercourse (<100 mg/l | BOD); 47% used in EFB composting system

CPO mill

I 47% used for compost; 53% used as plantation soil

\P < Empty fruit I Zfw @ < bunches I

100% used in mill boilers to produce steam for heat \ Fibre - 1 and power generation

Shell By-produc4waste

64 Figure 4c 100% exported Mill Processing 2006 Higaturu Oil Palms, Oro Province E [Oro Project Area] Crude palm oil 100% exported 0 I I Palm kernel oil I

P-1000e7 exported for animal

P l k mel 5 t I ------20 ~Palm kernel I ------expeller - Commercial product 345900 t mg/I BOD) and by May 2007 will be FFB 2 L Treated (<100 used to irrigate plantation for fertiliser substitution CPO mill I /2+6 I Palm oil mill effluent

I ,100% used as i) direct soil mulch and ii) in compost I 6I production for nursery o Empty fruit bunches I

in mill boilers to produce steam for heat IFibre and100% power used generation

Shell By-product/waste

All palm oil milling companies have stated that they have sufficient milling capacity to process a projected 20% increase in smallholder FFB production in the period 2007 to 2012. All milling companies have planned investment to increase processing capacity to address projected increases in plantation and smallholder production (Table 5.1). It should be noted that all milling companies are committed to collect and process all smallholder crop in priority to plantation crop. This has been exemplified in recent years where Higaturu Oil Palms, when experiencing a processing/transport capacity limitation, closed down production of areas of its own plantations in order to continue handling smallholder crop.

Table 5.1 FFB milling capacity' estimates in the three SADP project areas Year NBPOL Hargy Oil Palms Higaturu Oil Palms Year N° mills Est capacity N° mills Est capacity N° mills Est capacity 2007 4 240 2 90 1 75 2008 4 260 2 90 2 95 2009 4 260 2 90 3 115 2010 5 300 2 90 3 115 2011 6 360 2 90 3 115 2012 7 400 3 130 3 115 tonnes FFB per hour

65 6. BIBLIOGRAPHY:

Reference

Ball E. and J. Glucksman (1980) A limnological survey of Lake Dakataua, a large caldera lake on West New Britain, Papua New Guinea, with comparisons to Lake Wisdom, a younger nearby caldera lake. Freshwater Biology (10)73 Beehler B.M., T.K. Pratt, D.A. Zimmerman, (1986). Birds of New Guinea. Handbook Number 9 of the Wau Ecology Institute. Princetown University Press, USA. Beehier B.M (ed) (1993). Papua New Guinea Conservation Needs Assessment. Government of Papua New Guinea/Department of Environment & Conservation. Bishop K. D, L. Broome, (1979). The Scrubfowl Megapodius Freycinet eremite in West New Britain. Bishop K.D. and L.S. Bishop, (1980) Wildlife of the Kapulak Area, Papua New Guinea, Department of Environment and Conservation. Clark Peter (1996) A consultancy report for the Oro Conservation Project. Coates B.J. (1985). Birds of Papua New Guinea: Vol. 1 Non-Passerines. Dove Publications, Australia Coates B.J. (1990). Birds of Papua New Guinea: Vol. 2 Passerines. Dove Publications, Australia Department of Environment and Conservation (1997). Draft Environmental Plan Guidelines for Agricultural Development Operations - Specific Guidelines for Oil Palm Development Projects. Government of PNG Ellingson D.(2001) PNG Oro Smallholder Oil Palm Development Project: Study of the Smallholder Oil Palm Sector - Achievements & Potential for Future Development. Flannery T., (1995). Mammals of the South-West Pacific and Moluccan Islands. Australian Museum/Reed Books. Hargy Oil Palms Ltd. (2000). Environmental Plan Application for the Navo Oil Palm Mill and the Ibana Oil Palm Plantation. Higaturu Oil Palms Ltd (various) Environmental Plan Applications Hinton, A. (1978?). Guide to Shells of Papua New Guinea -Robert Brown & Associates. King B (1989). Does Wildlife Management By The People Work? A Case Study of The Pokili Wildlife Management Area, Papua New Guinea. Science in New Guinea 15(3). 111- 118. Mercer C.W.L., (1999). PNG Conservation Project, Oro Province: Queen Alexandra' Birdwing Butterfly Research and Conservation: Final Report. AusAID Report Moore S. (2006). Assessment of the Effects of Smallholder Oil Palm Activities on the Biology of Streams in the West New Britain and Oro Provinces of Papua New Guinea. Landcare Research, New Zealand. New Britain Palm Oil Ltd (various). Environmental Plan Applications Nicholls S. (2003). OPIC Roads and Bridges Construction Oro Province, Papua New Guinea, Environment Management Plan. Report prepared for OPIC and AUSAid. O'Shea M. (1996). A Guide to the Snakes of Papua New Guinea. Independent Group. Parsons M.J. (1992). The World's largest Butterfly Endangered: The Ecology, Status and Conservation of Ornithoptera Alexandrae (Lepidoptera: Papilionidae)

66 7.0 APPENDICES

7.1 Letter from DEC excluding this program from DEC requirements

7.2 List of Stakeholders Consulted

7.3 Stakeholder Workshop Meeting Report

7.4 Nominated Reserves Schedule - West New Britain Province

7.5 RSPO Principles & Criteria for Sustainable Palm Oil Production

67 Appendix 1

Letter from the Department of Environment & Conservation Confirming Status of the SADP as a Level 1 under the Environment Act 2000

68 >f-0@5d Vtl PfiW0°Lt

DEPA1R1NMKN1 OF IENVIRONMEN I &( )V Vt1O.

ENVIR(ONNIEN DIVISION

[f.i6vllf 16.5325401112 W,*o41t. N6rtrmi,Jt~,e'lpfDiwkt 1.mAi. t)dldrv brfNP. Box660 4140R0X0,k CD) POP-S NMs "Of

fI re 23/5!2006 Mr. Felix Bokanl Our Referem,, a/General Manager Oil Palm Industr/ Corporation P 0. Box 73, POPTMORESBY, Notional Caritcl District. l I

Dear Sir

Re: Notice of Intention to Carry Out Preparatory Work on Smaliholder Agriculture Development Pioject

Furtner to yoLur nolice of intention to carry out preparatory work received on l8th April 2006. please note that your proposed activity is not prescribed under the Environrmort (Prescribed ActivitieSi I I"-

Consequentiyv you dc not require an Environment Permit in order to carry out the proposedi agriculture project in West New Britain. filne Bay. New Ireland and Oro Provinces.

'AKE NOTE thiat w*en carrying out rioe proposed village oil palm development project, it is imperative that tne holders of the village oil palm blocks are advised of the neec to adhere to all legal requirements Under the Envi'onment Act 2000, including complying with relevant environmental codes of practices and guidelines,

Although, 'he proposed activity is not prescribert under the Act, the Director of Environment may use appropriate provision under the Act to call uo or require owners of village oil palm oiOCks to aoply for cn Fnvironment Permnit in the event where there is a risk of environmer.tal raicrm occurring due to oil palm cuitivotion.

Do riot hesitate to cortact this Offite if additional clarification is required.

Yours Sincerely.

Deputy Secretary Delegate of tre .Deportment of Environment onc Conservation

69 Appendix 2

List of Stakeholders Consulted

70 Stakeholders Consulted

Kimbe/Hoskins

OPIC Frank, Project Manager - Kimbe Otto - Manager Kimbe Lyn, Field Officer, Mamote

PNGOPRA Charles Dewhurst, Head of Entomology

Catholic Church Fr. Benjamin Agea - Administrator Cathedral, Kimbe Daniel Somi Mirmirio, Financial Administrator, Kimbe Mathias Ire, Diocesan Caritas Coordinator Mr. Raymond Laupo, Youth Coordinator Sr. Marilyn Babe, MSC, HIV/Aids Coordinator, Fr. Joseph Mandres, MSC, Parish Priest Silanga Erwin Batari, Family Life Coordinator

Women's Representatives Alice Billy, Women's Representative Elizabeth Warpen, "Mama Luz Frut" Representative

Mosa L.L.G. Bonly Tiun, Vice President

Hoskins Oil Palm Growers Association Willie Nilmo, Chairman Paul Siune, Public Officer Bruno Valuku, Deputy Chairman Tana Yasunga, Consultant Peter Robbie, Executive Committee - Tamba L.S.S. Jack Sandanu, Executive Committee - Buvussi L.S.S. Bruno Sengo, Committee - Kavui

Block holders

Jack (from Pomio), Customary Purchase Oil Palm Grower, Kimbe Gabriel (Babata Villager) VOP grower Silanga area

Landowner Steven Babo, Vavua Village

Commercial Oil Palm

Late Tapas Pokas, Smallholder Development, New Britain Palm Oil Tony Arona, Environmental Manager, New Britain Palm Oil

71 Bialla

OPIC Steven Kamis Essau Morris Ilau, Director OPIC Board, Bialla

Bialla Oil Palm Growers Association John Nema, Member Bialla Grower's Association Joe Hassi, Chairman, Kabaiya L.S.S.

Bialla LLG Nolene Pidik, Community Development Officer James Mengenen, OIC Bialla Health Cetre

Block holders Robert - block holder Barema

Commercial Oil Palm Cosmos Kauwe, Company Secretary, Hargy Oil Palms

Oro Province

OPIC Mr. Ruki Henry - Field Manager, Sirovi Division, OPIC

PNGOPRA Ross Safitoa, Entomologist

Churches Stephen Raurela, HIV/Aids Coordinator, formerly Youth Coordinator, Anglican Church, Popondetta

Schools Ms Wafia, Popondetta Primary School Selby Jamba, Manager

NGOs Albert, Conservation Melanesia Clement Kerahu, Oro Oil Palm Growers Association Eddie Malaisa, Environment Officer, Oro Provincial Government,

Women's Representatives Olivia Bunari, President of Provincial Council of Women and Member of Provincial House of Assembly Evelyn Pukari, Community Development Officer (Women's Office), Oro Provincial Government,

72 Block holders

Makinton - VOP block holder Sirovi Division LSS block holders Sirovi

Commercial Oil Palm Graham King, General Manager, Higaturu Oil Palms Ltd

Port Moresby

Department of Environment & Conservation: Rose Assistant Secretary Parks and Wildlife James Sabi, Assistant Secretary Biodiversity Surveys

Others

Dr Robin Torrence, Principal Research Scientist, Australian Museum re Archaeological sites West New Britain

73 Appendix 3

Stakeholder Workshop Report

74 Environmental and Social Assessment

of the

Small Holder Agriculture Development Project

Date: 18th July, 2006

Venue: Holiday Inn

Prepared by Douglas Environmental Services July 2006

75 Introduction

The smallholder oil palm development project is designed to rehabilitate the existing smallholder oil palm growers. It is not intended to expand oil palm growing into new areas, though it is designed to encourage an increase in oil palm growing along the existing network of oil palm roads to ensure that the rehabilitation of the road network is economic and sustainable in the long term.

A meeting of interested stakeholders, including NGOs, Government Agencies, Commercial Oil Palm Growers, Governors of Oil Palm growing Provinces and Aid Agencies was called to allow them to express any concerns they may had with regards to the existing and potential social and environmental impacts of the project.

The Meeting was opened with a few introductory remarks by Charles Yala of NRI, and member of the social assessment team, at 1.50 pm

A Ministerial keynote address was presented by Secretary for the Department Agriculture and Livestock, Mr. A Benjamin.

After the keynote address the Team leaders for the Environmental Assessment and Social Assessment teams presented background to the project and expected outcomes of the workshop.

The meeting was then given to the floor for participants to present issues that they had.

Summary of Environmental and Social Issues Raised

Many of this points raised were not directly related to the environment or social issues, nor were they always related only to the SADP a full summary of the issues are included below under Stakeholder Issues.

Environmental concems were limited to:

1. forest clearing in Talasea for oil palm development 2. stream health 3. the provision of personal safety equipment for smallholders when applying herbicides

Social concerns related to:

1. problems arising from the sale of customary land 2. expansion of descendants of settlers onto customary land 3. children working on oil palm and neglecting schooling 4. lack of awareness among growers if they were going to be the ones who will be paying for the maintenance of the upgraded roads

76 Stakeholder Issues

Non Governmental Organisations

PNG Community Rights

Raised the following issues

Environmental

* the safety of growers safety was allegedly being neglected, this included the provision of appropriate safety equipment when herbicide spraying * forest was being cleared for Oil Palm development in Talasea

Social * there were current land problems related to the VOP. * The current "sale" of customary land to others for VOP blocks had no legal basis under the National Constitution * children were allegedly working on oil palm when they should be at school. * how was the current World Bank loan to be repaid? Would it be from Farm gate payments to growers? * if growers were going to have to pay for road maintenance they were not aware of this. * 30% of national budget was going into servicing of loans and because of this money was not going into social areas such as new schools

General

* serious health problems were allegedly arising in Oro due to waste from Oil Palm in Oro * queried how AusAid funding previously given for roads was used. * workers rights were allegedly not being looked at including right to have unions * although Oil Palm Companies are all accredited to IS01400 there was allegedly no independent verification. Serious independent audits were needed. * payments for lease agreements were different in different provinces and there was a need for one system. * need to look at other options than oil palm * cost benefit analysis needed

Partners with Melanesia

Wanted to know whether the project was designed to * solve current problems in existing projects ;or * expand oil palm in Oil Palm provinces.

And if it was expansion how the existing problems be addressed

77 Oil Palm Industry

Brown Bai POPA

Mr. Bai pointed out that Oil palm was the leading export commodity and that it supported 240,000 people. It also provided a better income distribution than with other crops and that it contributes considerable revenue to the national government. Yet in spite of this it was not receiving basic support from national government.

While there were many issues that he had with regards to the SADP his key concern was whether the project still had the support of the Government?

Ofifice of the Governor, West New Britain Province

Concerns of the Governor's Office

Social there was migration out of the original land settlement schemes by third and fourth generation settlers of non indigenous WNB into customary land through "customary purchase" as there was no more state land that could be allocated

General

* Some of the first and second generation settlers were requesting government assistance to establish oil palm in their own province so they can go back. Third and fourth generation settlers regarded themselves as belonging to West New Britain. * VOP way to go forward * Rural Development Bank does not loan to VOP because customary land has no title

The Governor while generally supportive of the SADP though he did express some concerns. These were not directly related to the social or environmental impacts of the project. but are summary of them is included:

* accountability for the loan and who was going to repay it? * Provincial governments would like ability to take out such loans themselves * whether the VOPs would really benefit from it? * need for wider consultation by OPIC * What the economic gains would be from the project? * the West New Britain Province was trying to set up its own mill but was not receiving support * there was concern with the current pricing system and that Central Agency Concultative Committee (CACC) had been instructed to initiate review. The Governor suggested that a realistic price should be set by external force. * There was a need to review the role of OPIC to ensure it meets present day needs * OIPC should have a National Independent Board:

78 * the current infrastructure of the PNG oil palm industry was poor when compared the social infrastructures of Malaysia oil palm estates * Oil palm should be promoted in other provinces

Responses to issues

Charles Yala - NRI

Concerns regarding customary purchase of land are being addressed by National Land Development Forum Task Force who will soon be presenting its recommendations on land to the public.

Rural Development Bank

On concerns that loans were not available to VOP their representative from the Rural Development Bank pointed out that the bank is starting to give loans to VOP and that they also give consideration to:

* Housing * Diversification projects * Solar power * Oil palm for fuel * School funding through cooperatives

Felix Bakani OPIC

In reply to various issues raised

* OPIC realised that the VOP system was the way forward and had been placing emphasis on VOP development since 1996. * That the people of West New Britain Province should stop "selling" their land if they don't want outsiders. It was also making smallholder oil palm development more complex * The Rural Development Bank was making loans to VOPs in Milne Bay already * continued government support for the SADP was also a concern of OPIC. He was aware of rumours that support for the project was waning

Department of National Planning and Monitoring

Concerns by various speakers related to government support * National Planning Office had not met with DAL and OPIC at programming stage * Higher levels in Government talk about the project * Poor implementation of the Forest Conservation Project led to bad relations between PNG government and World Bank * capacity of implementing agencies and provincial governments often poor * there was a stop on new loans for 3 years

79 * the national government was concerned that many loans were benefiting select provinces while others were being neglected * there have been previous donor funded road projects (World Bank & AusAid) How and that SADP needed to draw on experience from these past projects. It had to be remembered money is loan money and has to be paid back.

Brown Bai

On concems regarding expansion of land taken by settlers for oil palm pointed out that the settlers were brought in by the national government and that they had a legal right to be there. They only send back to their own provinces if necessary support available for them there.

Meeting closed at 4.30 pm

80 Appendix 4

Nominated Reserves Schedule; West New Britain Province

81 TV .' ..

TOURI9!. SITES PROTECTION ACT M1993]

RECOMMENDATION. OF SITES FOR PROTECTED ATPURIST SITE LIStING

Acting on (a) recommendation(s) made to the West New Britain Tourist Board, the following areas or sites are. proposed Protected Tourist Sites, pursuant to Sections 3(1) and 3(2) of the West New Britain Tourist Sites Protection Act (1993).

Recommendations are available for inspection at the offictt- °o the Chairman of the West New Britain Tourist Board.

Representations within 30 days from the date of publication of this Gazette are invited from all persons and authoritibs., including,the Community and Local Government, which in its opinion have an interest in the matter.

Dated this 11th day of October, 1993. *A/k ' ELIAS BATARI DEPUTY PREMIER MEINISTER RESPONSIBLE FOR TOURISM MATTERS

82

82 PROPOSED PROTECTED TOURIST SITU LISTING NO. 1 (OCTOBER 1993)

WUf SWUitsI 18*11 |l ii

KIMBE DISTRICT

BALI 53 VtITU 18 PULASE 5 GARUA BILEK? 14 M WSA Z

EAST KOVE 2 WEST MOVE 2 GLOUCESTER DISTRICT

RALIAI 6 lARIAt 0 XILKNGE-LOLO 14 BIALLA DISTRICT

CIUPRAL WARANA! S 8tALLA 2 EAST NAXAMAA 4

5NDRIAM DISTRICT

WEST AROWC 25 EAST AROWE 14 GIMI-RAUTO I KANDRIAN COASTAL 12 PASSIS MANUA 0 PALANG ASENGSENG I WEST GASMATA 0 EAST GASKATA 0

M. BENJAMIN CHAIRMAN

83 GM "m I IDENTIFXcAflcu siiNIFICASu mAn WaNE SCALI

lINBE DISTEICT - BAL CtUSfTUu

PENATA-KETINERAVE A 61 -63 IIRI I.LANBA&ST0. HISTORICAL BALI 1:100.000 CULTURAL . L 37 F4l 2. VATEPAI STONE ..

3. KAPURAARAII STONE " n H

' * 4. RAPORO SQIK H '

' S * CNrANATBTA STONE

6.TABAAANABAS STONE . * - * -

- , 7.R& BOLOKURUIO STONE n

8.NALE STOW!E a

- 9.BUKEI STOQU N n

1D.UVA STONE - - n -

a 11 .RUNrTAPU STONE - - X

12.VATUXURU STONK n n

13.BAmALIt STONE . n IDEWlfTlFCAfl SIGNIFICANCE AREA NINIE SCALE mTRI GVT/SYATION

INSE DISTRIC1 - BALI COXSTITfURyC

NlRR 14.VATrUNa STONE UISTOltICAL BALI 1:I00.000 A 61 -63 CULTURAL L 37 -41 15.VAflMBIANIa (LAND) STONE t Il

16-KILILAO STONE *

17.VORUEURUXO STORE , t tt a 1B.VATKMUBIAUG(SEA) STONE

19.NAWADU AIICINT VILLAGE SITE

20-VATlTuBiAca ANCIENT VILLAGE SITR " -

21.DAVALIVALI ANCIENT VILLAGE SITE ' .

22.VUNAPUTU ANCIENT VIlLAGE SITE tta

23.NALOCIWo ANCIEN VILLAGE SITE

24.LUBIRI SPIRIT PLACE tta ,U. . 25.-MAU SPIRIT PLACE t tt tt-

26.WR01 . SPIRIT PLACE

I)..l IDENTIFICATION SIGNIFICANCE AREA NAMY -.SCAI GRID NUYZR GO/STATION LINDE DISTRICT- BALI CONUSITUENCY

27.VUIEJfIO SPIRIT PLACE HISTORrCAL BALI 1:100.000 A-61 -63 MAKIRI CULTURAL L 37 -41

28.NARRUNRKAIA SPIRIT PLACE ' - -

29.DALIIABRXE SPItIT PLACE

30.UVANBLUBIRI CAVE S f ' 'N

31MAGAPUUOKO RECRUATION AREA SOCIAL ' '

32 .DAKMITUNU COMMUNAL PLANTATION SOCIAL ' ' '

33.VUNERAIO COMMUNAL PLANTATION SOCIAL f ' f N

34.MHRUWRUR REEF MARINE RESOURCE n f ft N

35.BAROBARO REEF MARINE RESOURCE " ' t

36.BUEUMKUTILE REEF MARINE RESOURCE ' ' N

37.RAUNAGEPE REEF MARINE RESOURCE '

38.TAGARILIMAGA REEF MARINE RESOURCE - - *: - .* - ,

, - 39..LELEVORO-MARUBE REEF MARINE RESOURCE ' N ' -

40.RNGAAA MARINE RESOURCE ' ft IDENTIFICATION SIGNIFICANCE AREA NAME SCALE - GRID MISN GOVT/S ATION

XKnE DISTRICT - BALI CONSIITUZC,'

41.DAVALrVALI REEF MARINE RESOURCE BALI iuloo.aao A 61 -63 MAKIRI L 37 -41 42.GmUdAD REEF MARINE RESOURCE . ' n NAVADA0

43.EIMAEAVU REEF MARINE RESOURCE n

44.MUVODOMO KEMAEALARO REEF MARINE RESOURCE '

45.BULuBULUTU REEF MARINE RESOURCE K " K V 46.MAHz REEF MAxINE RESOURCE " - 47.TABeLAVEAR REEF MARINE RESOURCE K

48.VAHAROI REEF MARINE RESOURCE a

49.NARAGA ISLAND WILDLIFE RESERVE ' . A 96 -98 NINGAU MAgINR RESERVE L 33 -35 S0.NARAGA REEF MARINE RESERVE " A 98- 00 - 'L 33 -37. 51.NARAGA NOT SPRINGS GEOLOGICAL S A 96-5 L 35 HALANGGAI

-52.SEVt (7) ENGRAVED BOULDERS BfISTORICAL K A 58- NIGILANI CULTURAL L 39.5 IDENTIFICATION SIGNIFICANCE AREA NAME SCALE GRID AMIER GOVT/STATION

RIMBE DISTRICT - BALI CONSTITUENCY

IALANGGAI

52.SEVEN (7) BOULDKRS ENGRAVED HISTORICAL BALI 1:100.000 A 58 NIGILANI CULTURAL L 39.5 PENATABOTONG

53.ONE (1) BOULDER ENGRAVED ' S A 56.5 L-37

RrrBE DISTRICT - VITU CDNSTITUENCY

GAROVE 00

1.SUNKEN JAPANESE BARGES WAR HISTORICAL A 82 -84 VITU -JOHANN ALBRECHT HARBOUR L 78 -79 2.DUDU STONES CULTURALr. A 79 -80 -JOHANN ALBRECHT HARBOUR L 87 -88

3-ST. MICHARL'S ISLAND RECREATIONAL U A 82 -JOHANN ALBRECHT HARbOUR L 77 -78 4.BABE SPLIT ROCK PASSAGE GEOLOGICAL " A 80 -81 -BALANGORI 2 L 74 -75- 5.NANGUIANGURA CAVE GEOLOGICAL A 82°-83° -BALANGORI L 72°-74-

6.JOHANN ALBRECET RARBOUR WAR HISTORICAL A 79 -85 GEOLOGICAL L 74 -78.5 MARINE RESOURCE 7.JAPANESE GUN WAR HISTORICAL A 82 -TAVUTU MOUNTAIN,LAKwA L 79 IDENTIFICATION SIGNIFICANCE AREA NAME SCALE GRID ENMBR GOVT/STATION

KIMBE DISTRICT VITU CONSISTUENCY

8.NWATERrALL WATER RESOURCE BALI 1:100.000 A 80-81 vrto -LAMA PLANTATION RECREATIONAL L 80

9.TAVURt R8CE MARINE RESOURCE * A 77 -78 -LAMA L 80 -83

10.WAIGERE REEF HARINE RESOURCE - A 80--81 S -LAMA L 84

11.ELA REEF MARINE RESOURCE A 84 -85 a -NDOLI L 83 -84 12.JAPANESE CAVES WAR HISTORICAL A 83'-84- -METO HARBOUR L81 -82-

13.TWO (2) JAPANESE GUNS WAR HISTORICAL * , S - -METO HARBOUR 14.JAPANESE NAVAL BASE & CEMETERY WAR AISTORICAL -METO RARBOUR

15.METO HARBOUR (PETERHAVEN) WAR HISTORICAL " 5 ' RECREATIONAL - 16.LAnE TANGOLE WILLIFDFE A84 -LAMBE BIOLOGICAL * L 72 -73

17.LAXE NALOVU WILDLIFE n A 84--B5 ' -LAMBE L 73--74

18.LAKE MANDOnA WILDLIFC 5 ' A 85 -86 - -LAMBE L74 -75

KIllE D$STRIC?T PULABE CONSTITUENCY

.PORILI WILDLIFE MANAGEMENT AREA WILDLIFE ANIA - A 74 -88- HOSKINS BIOLOGICAL L Z5 -41 IDENTIFICATION SIGNIFICANCE AREA NAME SCALE - GRII WNffER GOVT/STATION

KINDE DISTRICT - PULABE CONSTITUENCY

-2.LAVDGE HOT SPRINGS GEOLOGICAL AMIA 1:100.000 A 78 -80 HOSKINS -1 TL 33 -35 3.Mount BANGO (PAGO) GEOLOGICAL A 82 -84- HOSKINS PROP.NAT.PARK ' L 25--27- 4.Mount WITORI GEOLOGICAL " A84-85 HOSKINS BIOLOGICAL L 20 -22-

5.PYRAMID mountain GROLOGICAL - A 77-79 HOSKINS BIOLOGICAL L 25-27 EIBE DISTRICT - CARUA BILEXI CONSTITUENCY

l.Mount MULULUS GEOLOGICAL DAGI A 84--86 HOSKINS BIOLOGICAL L 9-11

2.Mount HATALELOK GEOLOGICAL - - A 88 -90 HOSKINS BIOLOGICAL L 9-11- 3.Mount OTO GEOLOGICAL A 90--92 - HOSKINS BIOLOGICAL L 11-13

4.ROCK ART ON RIVERAMIE HISTORICAL * A 90 -91 -HOSKINS -WAISISI CULTURAL L 14 -15

S.LORXO NATIONAL PAHK BIOLOGICAL BANGULA - A 97 -99 HOSKINS 'L 26 -27 **6.YULAI ISLAND RECREATIONAL TALASgA A 6 -8 HOSKINS% -STETTIN BAY PROP. WMA L 21 -22

7.VULAI ISLAND REEF MARINE.RESERVE * A 5.5 -8.5 HOSKINS -STETTIN BAY PROP. WMA L 20 -23

8.WALD REEF MARINE RESOURCE n ' A 6 -8- HOSKINS -SIETTIN BAY L 18 -20 SCAL DDtE OlSAIl INFCNE AE AEu IOEMTiricATION

wasE anICr - WaUA BILEt CONSTITUERCY -A6 -9 NoSKIWS MARINE RESOURCE _TALASFA t:100.UO LAY 9.EOu iERtF -STETTIN MARINE uRSOURCE r6 a 1OG.MRGWTTS REEF 6 -8 -STETTIN SAY RESOURCE - A99 -00 ll.ROBRTS REEF MARINE L 9 -10 RAT -StREsTlN A 98 -99 MARINE RESOUWCE 12.RERSOK REEF L7 -STUIW BAY A4 6 MARINE RESOURCE 13.REEF SITUATED BETWEEN MARGETTS AND H0GU RgEFS 823-24 MARINE RESERVE 14.KlMBE ISNID -KIMBE BAY

lINS DISTRICt - HOSA COiMSTlTOENCY A 75--76 RESOURCE DAGT-ANIA LALILr INCLUDIAG WATER t.LAKE NBA M00METER BUFpER ZONE PROPt L 98 -99BE HISTORICAL DAGI 2.MOPIR HILL ARCEKOLOGICM -MOSA

INBE DI5S'RIIC - KINDE!onsIECY A87 '-88 ARCHEoLOGICAL TALASEA 1 .SVIE FR I 7-WAbINDI IDDETIFICATION SIGNIFICANCE AR3A NAME SCALE (RI nEn Go/STATION

KInoE DISTRICT - EST NAKOVI CONSTITUINCY

1.BrIaXA PISSION STATION ARCHEOLOGICAL TALASEA )t100.000 A 13 HISTORICAL -- 14 TALASEA - L 71 2.EBODUSA ISLAND ARCHEOLOGICAL -GARUA HISTORICAL A 16 L 75- 3. GARALA ISLAND ARCHEOLOGICAL n A 14 . -GARUA HISTORICAL T. 77 -78 4.VOGAUAEAX PAINTINGS HISTORICAL A 22 - CULTURAL L 69 5.ELA REEF MARINE BIOLOGY - -WANGORI BAY A 24 -25 L 84 -65 6.1MAK DAEATOA WILDLIFE A 38 -46 PROP. NAT. PARK L 72 -83 KIMBI CONSTITUENCY NE BAXOVI COuSTItuENCY 1.GARU WILDLIFE MANAGEMENT AREA WILDLIFB RIES-'"ASEA A 92 -103 TALASKA BIOLOGY L 22 -71 2.PAO HOT SPRINGS GEOLOGICAL RIEBBECK A 3 -GARU ARCHEOLOGICAL -4 TALASEA L 30 -31- 3.POLUNAI CAVE HISTORICAL RIEBECK A 11 -GAVEMBOKO CULTURAL TALAS L 30--31 4.nount WEtLCEER GEOLOGICAL TALASEA A .00 --. -GARU BIOLOGICAL, 01' TALASEA L 69 -71' S. mount XRUKI GEOLOGICAL TALASRA A 93 *-951 -GARU BIOLOGICAL T1AABEA L 69 -72 GOVT/STATION NAME SCALE GM NUIFE SIGNIPICANcE AREA IDEWIFICATION

-EAST ROVE CONSTfT'wnuCY KITJE DISTRICT S.wvtFTI 1:100 -"O A 95-5 PORESTRY RIECR ISLAND L 99 1.5SB3OL MARINE WILDLIFE -KALAPIAI A 76--80 SILOVUTI NATURE RESERVE NANO MAMO AND SURROUNDING L 84 -89 2.LAKE BIOLOGY SWAMPLANDS

DISTRICT - WEST lOVE COXSTITUENCY KINBD HILIMATA -. - A 90 RECREATIONAL ARIA ISLAND L 67 l.UnUYURE MARINE RESERVE -NULIGIAMI AL 90 -91 6 ILINATA RESERVE ARIA REEF MARINE L 66.5--67.5 2.UWVCURZ ISLAND .

KALIAI CONSTITUENCY GLOUCESTER DISTRICT - A 80 -81 IBOn HISTORICAL ARIA SOGO ROCK ENGRAVINGS L43 -44 1.AXDOO CULTURAL a PAINTINGS -IBOEI IBOKI HISTORICAL ARIK RIVERBED ROCK ENGRAVING 2.PD1 CULTURAL -IO3I A 78--79 180I HISTORICAL ARIA ROCK ENGRAVINGS L 47 -48 Y3.TITIKOLO CUTURAL a PAINTINGS -I1OKI/ARIA A 67 -68 IDOXI HISTORICAL ARIA ENGRAVINGS L 4U4 -45' 4.Anl0R ROCK CULTURAL -BAGAI 71.5 IBO1R ARIA A WAR HISTORICAL L47 5.5UNKEN GERMAN BARGE -KWARO,ARIA RIVER 111/

IDENrIFICATION SIGNIFICANCE AREA -AXE SCALE mGD ONnMoW/STATION

CLouCEStER DISTRICT - KALIAI CONSTITUENCY

6. BALAI-WASUM TUtBUNA ROAD HISTORICAL ARIA 1:100.000 lBOXT WILDLIFE BIOLOGICAL RECREATIONAL

BAGA! - BULAWATNE * A 65:-67 L 45 -54 IBOXI BULAKATNE- MAKUKLI * A 60 -66 IB011 L 54-58

KEURLI-BATAULING S A 54 -61 IBOXI L 57 -58 BSATRLING-AIDAUS A 47 -54. .ESELI

GLUCZSTER DISTRICT - KILENGE-LOLO CONSTITUENCY

1.GLOUCESTER AIRSTRID & VICINITY WAR HISTORICAL GLOUCESTER - A 96 -97 GLOUCESTER -GLOUCESTER STATION L 57 -59 2.6ALF.SALz WAR RELICS WAR HISTORICAL MURCADHA A 95 GLOUCESTER -GLOUCESTER STATION L 64-

3.TARGET SILL WAR RELICS WAR HISTORICAL - A 87 -88 GLOUCESTER -SILIMATE L 69 -70'

4.SILINATE ENGRAVED BOULDERS HISTORICAL S b A 88--89 GLOUCzsTER -Sfl.MATE CULTURAL * L 70 -71 S.GARIuATR ENGRAVED BOULDERS HISTORICAL A 87'-88 GLOUCESTER -GARIHATE CULTURAL - L 71 IDENTIFICATION SIGNIFICANCE AREA NAME SCALE gRID- NUMBER OVT/STATIO1

GLOUCESTER DISTRICT - KILEGE-LLO CONSTITUENCY-

6.UOVKAZ-BLmND RECREATIONAL GLOUCESTER 1:100-000 A 95- GLOUCESTZR -GLOUCESTER STATION L 66

7. Mount TAL&VE GEOLOGICAL TALAWE - A WILDLIFE L S.dount GULO GEOLOGICAL TALAWE ' A - WILWLIFE L 9.Mount LANGLA GEOLOGICAL TALANE A WILDLIFE L

1O.mount MUNLULD GEOLOGICAL TALAWE A U WILDLIFE L ll.KURTAVELE POINT WILDLIFE TALAWE A PROP. WMA L 12.GIE ENGRAVED BOULDERS HISTORICAL TALAWE A CULTURAL L 13.RILEGE ERECTED STONES HISTORICAL TALAWE A (31 GROUPS) CULTURAL L -KILENGE VILLAGES ' 14.SUNKEN BARGE WAR HISTORICAL MURCADRA A 55 -ITSE RIVER MOUTH L 72

BIALLA DISTRICT - CENTRAL NAflNAz CONSTITUENCY

1 16DI0O POINT RECREATIONAL BANGULA - - A 96-97 BtI-LLA -TAROBI L 52 2.LASIBU POINT RECREATIONAL RANGULA A 93- BIALLA i . -tROtBIL 60 -61 IDENTIFICATION SIGNIFICANCE AREA NAMC SCALE DIALLA DISTlICT GD ML"* GOVT/STATZON - DIALLA COhUTflUECY 1.LAKE BARG! -DIAflA WILDLIFE STATION ULAWUN BIOLOGY 1:100.000 A PROP.UAT.PARK BIALLA 2- ALIMA L -8IALLA NATURE RESERVE ULAWUN PROP.NAT.PARZ A L BIALLA BIALLA DISTRICT - RAST RIAAKSI CpNS?ITURUCY 1.WLOBAU ISLAND WILDLIFE NATURE LOLOBAU 2.NULZ RESERVE A 52 ISLAND -60 ULAMONA WILDLIFE L 90.5 - LOLOBAU 04 3.NULI MARINE * ISLAND REEF RESERVE A 5B MARINE L 86 ULAMONA RRSOURCE LOLOBAU 4*BANDAN MARINE RESERVE * A 57.5 ISLAND -59 - ULAMONA WILDLEFE L 84.5 -86.5 LOLOBAU NATURE RESERVE A 83 -84 ULAMONA KANDBIAM DISTRICT L 57 -59 - WEST ARORB CONSTITUENCY

1.ITNI RIVER + 500 MgTER WATER BUFFER ZONE RESOURCE MURCADHA tOOD RESOURCE A 55 -69 8AUREN WILDLIFE L 67 -73 2.G3RZMG ICECRZATIONAL- RIVER - 500 METER BUFFRR ZONE CAD A A 38 -C1 SAORtN L 77 -79 IDENTIFICATION SIGNIFICANCE AREA NAMEA SCALE GitD NUq GOVT/STATION

KANURIAN DISTRICT - EST AROSE CONSTITUENCY

3.DUNGLW IRUtGLO) RIVER + WATER RESOURCE MURCADHA 1:100.000 A 53-63 SAUREN 500 METER BUFFER ZONE FOOD RESOURCE L 85 -88 WILDLIFE RECREATIONAL 4.MITING RXVER + A 53 -58 500 METER BUFFER ZONE * L 87 -90 51'-t63- 5.SUPU1 RIVER + - " A 90--95 *0 \ 500 METER BUFFER ZONE L 6.AURI (WAIRI) RIVER + - n A 46 -61 500 METER BUFFER ZONE * L 95 -98 46 -52 7.RIG1I REGR) RIVER + - A L 00 -<04. 500 METER BUFFER ZONE " A 42-70 8.ADEI (ADI) RIVER + n 500 METER BUFFER ZONE L 04 - 07 N9.AGOU RIVER + " ARAE-KM A ' A 34-44 500 METER BUFFER ZONE LL 13--16 10.PALAKANG RIVER + * e n A 34 -46 500 METER BUFFER ZOWE a L 17 -20 ll.AWIT RIVER + .W-SIMARIA A 33--47 500 METER BUFFER ZONE L 22=-28 12.ITNE RIVERBANK WILDLIFE A 55-57 L 72--73 13.ADEI RIVER SOURCE WI6DLIFE " A 70 N -- L 03

14.AUDOH ISLNDS (2) WILDLIFE 'A 41 -43 -IUNGPU -- L 88 -92 1.SZCiET STONE PLACES CULTURAL w 44 -IUNGPON L 43 IDENTIFICATION SIGNIFTCANCE AREA NAME SCALE GRIDNaMBER C60T/STATION

KANDRIAN DISTRICr - MM AROWE CONSTITUENCY

16.AWlI RIVER MOOTM WILDLIFE NURCADHA 1:100-000 A 42' SAUREN L .04 17.TRADITIONAL SITE HISTORICAL -IUUGPUN A 50n CULTURAL L 97' 18.4ANGROVE ISLANDS & SHORES MARINE RESOURCE A S -9 -SAURDN WILDLIFE L 33 -38 19.R8?F a SANDEANXS WILDLIFE MUJRCA-ARAWE -SAUREN A 25 -31. L 10 -14 20.ISLANDS a FLAT REEFS MARINE RESOURCE ARAWE ' A -AROWE ISLANDS 12 -15 PILILO L 29 -32- 21.SHALLOW REEFS * SEAWEED AREA WILDLIFE ARAWE A 29 -- 32- -AROWE ISLANDS MARINE RESOURCE L 12 -18 22.AROSE ISLANDS GROUP (65) WILDLIFE ARAWZ-WASU4 A 15-31 MARINE RESOURCE L 11-26 MARINE RESERVE RECREATIONAL 23.DANGTITI ISLAND ARAWE -ARO8E ISLANDS * A 18 -19 L 231-26 24.EANANGORO ISLAND ARAWE A 19-21 -AROWB ISLANDS L23 -26 25.UNDERWATER CAVES ARAWE -KAUPTIMETE MARINE RESOURCE A 12 -14 CULTURAL- - L 15 -16 RANDRIAN DISTRICT - EAST ARONE CONSTITUENCY

- WASUM-ARIA 1.AGUP (OGOc) RIVER + WATER RESOURCE A 34 -45- 500 METER BUFFER ZONE FOOD RESOURCE L 25 -30 WILDLIFE- AREA NAKE SCALE QGID NWUf fSATION IDENTIFIcATIoN SIGNIFICANCE

KANDRIAN DISTRICT - EAST AROWSE COUSTITUIECY LflOO.000 A 32 -34 PILILO to(0) RIVER + WATER RESOURCE- WASUM 2.DICll- L 25 -30 SO5 METER BUFFER ZONE -FOOD RESOURCE WI-LDLIFE RECREATIONAL WASUM A 28.5 -32 PILILO 3.PROUM RIVER t L 24.5 -30 500 METER BUFFER ZONE WASUMW A 25.5 -28 PILILO * 4.ARUMUT (MERIU) RIVER + L27 -32 500 METER BUFFER ZONE WASUM A 23 -24.5 PILILO 5.KURUOP RIVER + L 27 -33 500 METER SUPPER ZONE * ' WASUM A 24.4 -28 PILILO 6.SUGIL (SIEUL) RIVER + L33 -38 500 METER BUFFER ZONE WASg4-ARIA " A 24.5 -64 PILILO 7.PULIR RIVER + L33 -38 500 METER BUFFER ZONE PILILD HISTORICAL WASUM A 17--19 8.SUNKEN WRECKS WAR L20 -21 -KUWBUN 17 -19 PILILO HISTORICAL WASUM u A 9.AMARR ROCK PAINTING L 23--24 -ADWE (ARAWME ISLAND CULTURAL WASUM A 17--19- PlLiLO 1O.ADwe ISLAND SITE HISTORICAL ARCHEOLOGICAL L 23V-24- WASUM A 18-29 PILILO ll.AfLUfT SITE L 25 -26 POINT HISORC ICAL -AMULUT ARCHEODLOGICAL A 18: -20 PILILO SHIP WAR BISTORICAL WASUM - 12 .SUNKfEN JAPANESE L 24--25 . -AMULUT PASSAGE WASUM ' A 16 PILILO 13-PLES TAnm&AN CLIFFS CULTURAL L 25.5 - PILILO ISLAND A 26 -28 PILILO WATER RESOURCE WASUM - 14.LAKES AVI1AUUVRE,MTARU & TA.sAh ,,b IDENTIFICATION SIGNIFICANCE AREA NAME SCALZ GRID NUMBKER GCOW/STATION

KANDRIAN DISTRICT - rIMI RAUTO CONSTITUENCy

1.BA3Akt-wAsUN TU4UWNA ROAD HISTORICAL ARIA 1:100.000 IBOKI/ESBLI WILDLIFE BIOLOGICAL RECREATIONAL BATAULING-AIDAUS - A 47 -54 ESELI L 58 -59 AIDAUS-PINIR a A 40 -54 ESELI L 57 -60' PINIR-GERCgERENG (GIRING) ARIA-WASUM - A 37 -40 ESgLI L 60 GERGERENG (GIRING)-WASUM " ARIA-WASUM - A 30 -37 ESSLI L 59 -60

ANUDRIAN DISTRICT - ZANDRIAN COASTAL CONSTITUENCY

1.BAGAt-WASUM TUMBUNA ROAD

GERGERENG(GIRING)-WAsUM ARIA-WASUM " A 30 -37 ESELI L 59 -60 2.ALIMBIT RIVER + WATtR RESOURCE WiEN-MFANWUAN A 20.5 -4i 500 METER BUFFER ZONE KANDRIAN FOOD RESOURCE L 75.5 -94 3.AIS RIVER + - WILDLIFE KAND,RIAN A 9 -12 500 METER BUFFER RANDRIAN ZONE RECREATIONAL L. 82 -94 4.PALICKS RIVER + KFlrXsRUN*w A. 4. -42. 500 METER BUFFER ZONE ANSDRIAN- . .93 - 06 5.NAVARU (NAYARU) RIVER + S WASUM A 29 -31 ESELI 500 METER BUFFER ZONE L 45 -49 . T aOV /STATION SCALE GRID NUHR SIGNIFICANCE AREA NAME IDENTIFICATION

CONSTITUENCY DISTRICT - KANDRIAN COASTAL KANDIJAN A 8 -10 KANDRIAN RESOURCE jAMRIAN 1:100.000 + MARINE L 80 -83 6.APUGI (WUGI3 ISLAND RECIEATIONAL WATERS 5 -8 SURROUNDING WKMAfIN A + MARINE RESOURCE L 81 -84- 7.AWIXLO (GEGLEP) lSLANL RECREATIONAL -08 SURROONDING WATERS FUXN4-XWRRAN &A 97 MARINE RESOURCE L 72 -83 8.AWRLEWG ISLANDS + RESERVE WATERS MARINE SURROUNDING RECREATIONAL KNEMIAN A 5 -6 MARINE RESOURCE L 83 -84 9.ALxD (ALIUT) REEF * A 9 -10 MARINE RESOURCE KANDRIPN L 82 -83 lO.AKAKURVO REEF A 5 -11 WATER RESOURCE KANDRIAN L 84 -89 11.LAKLAK RIVER + FOOD RESOURCE SUFFER ZONE 500 METER WILDLIFE A 15 -16 KANDRIAN SITE HISTORICAL L 79 -80 12.ALANGLONGROMO ARCHEOLOGICAL -IUMIELO VILLAGE

ASENGSBENG CONSTITUENCY KANDRIAN DISTRICT - PALANG - A 46 -47 GEOLOGICAL MANO L 11 -12 1.MISISIL CAVE ARCHEOLOGICAL -YOHSOt&ASENGSENG AIRSTRIP

1 (OCTOBER 1993) TOURIST SITE LISTING.NO. END OF PROPOSED PROTECTED Appendix 5 RSPO Principles & Criteria for Sustainable Palm Oil Production

102 RSPO- aojrruwe on-,jsanao-c fol-) O

RSPO Principles and Criteria for Sustainable Palm Oil Production

Public release version 17 October 2005

103 RSDO PrfrZpe& ain Crea tr SuSaft*e Palm ON PradIm. %W"rsr 3.22 Septeirer RSPO 20O5

Acknowledgement

The Roundtable on SLstainable Palm Oil (RSPO) would like *Anorm the to thank the fohlowirtg, without process and workins of the Criteria p0ocess and Critera "Working would not have been possible- GrouFp CWG) Their contributiDn to this dermonstrates process has been pivotal arnid tneir suoport to the RSPO. The RSPO would like to acknowledge HSBC Malaysia for and thank trier par, in supoorlirg this process through the provision the majority of actties as of resources for weM as DOEN fbr their part in providing which the process furtber suppor. without would not have reached its conclusion,

ldviL HSBC 4D DOENt Ti oC sT INGs JrTff) r)I 1-nl

2

104 verslrn 3 22 sepleiroet 2lQ5 9sso PForipes ar cterla tr ustabiabe Paim on PToducton. RSPO

lIuu eAisb e u', YustU insu. FakP i 0

Principles and Criteria for Sustainable Palm Oil Production

Preamble Oil iRSPO., we are embarking together As members of the Rounatable on Sustainable Patm criteria as the best approach to on a iong journey. We endorse these principles and knowledge. Mfiembers will support each sustainable palm oil production in the ligih of current to as great an extent as possible. In other irngood faith in apptying the pr.noples and criteria wiil acvely promonte the use of addition, members from the various sectors of RSPO sustainable palm oil. economicalty v,aIe, envrwimentally Sustainable paim oil pfoducuion is comprised of legal, operations. This is delive-red through the appropriate and socially beneficial management and and the acoompanying draft guidance *Fil,s3tICn of the following set of pnnciples and criteria, and deFinitions. in the market, and there will not be There is no genetically modified (GMi palm oil available oil palm is inucled. for many years to oome. Henoe no criterion on GM period of two years from the These criteria will be applied for an initial pilot implementation of this period. The objective of the pilot date of adcoption and wIll be reviewed at the end the principles and crteria and Enereb3iallow tmplementation period is to enable field testing of of the principles and criteria bty guidance to be improved. Guidance for applcauion this initial period, national smaliholders will be an important aspect of this. DuTing interpretabons will also be developed, principles and criteria can be msade No public claims relating to compliance with the RSPO without third party verificaton and authonsajion by RSPO.

Principles and Criteria Principle 1: Commitment to transparency information to other Criterion 1.1 Oil palm growers anct millers provide adequate relevant to RSPO stakeholders on environmental, social and legal issues for effecfive panicipat on in Criteria, in appropriate languages & forms to allow decision rnaking. available, except where this is prevented Criterion 1.2 Management documents are publicy information would result in by commrercial confirientav,tr or where disclosure of negative environmertal or social outcomes Principle 2: Compliance with applicable laws and reguilations local, nabonal and ratified intermational Criterion 2.1 Thefe is compiance with all applicable laws arnd egulatiors

3

105 9?O Ptrldples and Cfta bf Suslakhable Palm on Prouclton. Veri;n 3.22 September 2005

lIu-VlAjI e U'1 SIuslj rlb9 e IPal'i I01)

Criterion 2.2 The right to use the land can be demonstrated, and is not legiciniately contested by local communities with demonstrable rights. Criterion 2.3 Use of the land for oil palm does not diminish the legal rights, or uslomary rights, of otne, users without their free, prior and infowmed consent Principle 3: Commitment to long-term economic and financial viability Criterion 3.1 There is an implemented management plan that aims to achieve lng-term economic and financial viability. Principle 4: Use of appropriate best practices by growers and millers Criterion 4.1 Operat,rg prcedures are appropriately docurnented and consistently implemented and mronitored. Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optirnal and sustained yield. Criterion 4.3 Practices minimise and control erosion and degradation of soils. Crterion 4.4 Practices rnairtain Wre quality and availability of surface and ground water. Criterion 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Mianagemert IPIvI :e-.:r,Vques. Criterion 4.6 Agrochemnicals are used in a way that does not endanger health or the environment. There is no prophylactic use, and where agrochemicals are ursed that are categorised as World Heatth Organisation Type 1A or B. or are lissed by ihe Stockholm or Rotterdam Conventions, growers are act,vely seeksng to identfy altematives, and this is documented. Criterion 4.7 An occupational health and safety plan is documented, effect ;ely communicated and implemented.

Criterion 4.8 All staff, workers, smaliholders and contraciors are appropriately trained. Principle 5: Environmental responsibility and conservation of natural resources and biodiversity

Crite4ion 5.1 Aspects of pianrt3r on and rill management that have environmental impacts are identified, and plans to mrn,gate the negat*ve impacts and promote the positiv- ones are rnade, implemented and mnwitored, to demonstrate continuous improvement.

Criterion 5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected ty ptarntation or mill management, shall be identified and their conservation taken into account in management plans and operations. Criterion 5.3 Waste is reduced, recycled. re-used and disposed of in an environmentally and socially responsible manner-

4

106 flC'5 PalrM Ol Prodcion. Verion 3 22 SepIerrer RSZO PnrXiV*G ana Cfteta ¶r Sust*iable RSPO IruU-'AJb'e un 'uiiu its P,le'ii 01 is maxirmised. use and use of renewable ervergy Criterion 5.4 Efficiency of energy preparing land for replaming is avoided of fire for *aste oisposal and for Crilerion 5.5 Use or other identified in the ASEAN guidelines except in specific situations, as regional tesi piaciic* gases, are and emnissions, including greenhouse Criterion 5.e Plans to reduce pollution developed, implemented and monitored. of employees and of individuals Principle 6: Responsible consideration and mills and comniunities affected by growers that have social impacts are of piantation and mill management Criterion e. IAspects impacts and and plans to mitigate the negative identified in a part.cipatory way. irnplemented and monitored, to promote the positve ones are made, demonstrate contnuous improvement. for comarnunicatio and consultaton are open and transparent methods Critefion 8.2 There or local communities and other affected between growers and/or mnidlers, interested parties fDr dealing with complaints agreed and documented system Criterion 8.3 There is a mutually and accepted by ali partes. and grevances, which is implemented of legal or custornary rights concerning compensat.on for loss Criterion 8.4 Any negctations peoples. system that enables indigenous are dealt with through a documented to express their views through their local communities and other s1akeholders own representative institutions. of contractors always for employees and for employees Criterion e.5 Pay and conditions standards and are sufficient to meet meet at leas1 legal or tndustry minimum some discretonary income. basic needs of personnel and to provide join trade uncons ed the right of ahl personnel to form and Criterion e.e The employer respects Where the right to freedom of their choice arnd to bargain collectively. are restricted under law, the empbyer association and collectwe bargaining and free assoriation and bargaining facilitates paralle! mears of independent for all such persornnel. working Children are not exposed to hazardous Criterion 8.7 Child labour is not used. on fami ly farrns. undef adult conditions- Work by children is acceptable with education programmes. supervision, and when not interfering based on race. engage in or support discrimination Criterion e.8 The employer shaU not gender. sexual orientation, urion caste, national origin, religion, cd sailD-y membership, political affil,atio' or age. against harassment and all other forms of violence Criterion 6.9 A policy to prevent sexual rights is developed and applied. women and to protect their reproductive

107 ASPO Pl1nras and CrBlela br SuStMabe PalM ON Producdcn. Ve;wrn 3. 22 Septeirter 20k5 RSPO I+QU :iASV ur-, SutSnS 11;A! e ah 01

Criterion e.1D Growers and millers deal faitly and transparensly wth srmallholders local businesses. and other Critenion 8. 1 1 Growers and rrillers contribute to local sustainable development appropriate. wherever Principle 7: Responsible development of new plantings Criterion 7.1 A oomprehensive and varticpatory independent social and environmental impact assessment is undertaken prior to estal-lishing new plartngs or operabons, or evpanding existing ones, and the results incorporated into planning, managemnent and operations. Criterion 7.2 Soi surveys and topographic infoxmation are used for site ptanning in the estabfishment of new plart'ngs, and the results are incorporated cperatbors into pdans and

Criterion 7.3 'Jew plartnrigs since Novermber 2005 (which is the expected date of adoonion these ritenia by of the RSPO membership), have not feplaced primary forest or any area containing one or more High Conservation Values. Criterion 7.4 Erter,sive planming on steep terrain, and/or on rnarginal and avoided. fragile sails. is Criterion 7.5 No new plantings are established on local peoples' land and informed without their free, prior consent. cdeall witht ugrouth a documented system that enables indigenous peoples, local communities and other stakeholders to views through express their their own recoresenatve institutions, Criterion 7.8 Local peocle are compensated for any agreed land acquisitions relinquishment and of rights, subject to their free, prior and informed consent negotiated agreements. and

Criterion 7.7 Use of fire in the preparation of rew plantings is avoided other than in situations, as identified specilic in the A.EAN guidel.nes or otner reg,oral besi p!3ci e. Principle 8: Commnitment to continuous improvement in activity key areas of

Criterion 8.1 Growers and millers regularly moritor and review iheir activites and and develc>p impitement action plans that allow demonstrable continuous improvement in key operations

6

108