Northern Rural Infrastructure Development Sector Project – Additional Financing

Initial Environmental Examination

Project Number: 42203-025 Grant Number: 0534-LAO October 2018

Lao People’s Democratic Republic: Northern Rural Infrastructure Development Sector Project – Additional Financing

Prepared by the Ministry of Agriculture and Forestry for the Asian Development Bank.

This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Annex-8 Initial Environmental Examination Phase II Subprojects in Luang Namtha Province

Nam Lue - Nam Chang PRI Subproject Luang Namtha District and Nam Sa PRI Subproject Long District

A8-1 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

A8-2 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Executive Summary

IEE for F/S on Nam Sa and Nam Lue-Nam Chang PRI Subprojects, Phase II

1. The Northern Rural Infrastructure Sector Project Additional Financing (the Project) was approved by the ADB on 31 May 2017 for $35.6 million and became effective on 26 July 2017. The government of Lao People’s Democratic Republic (Lao PDR) will contribute $2.0 million equivalent towards the project’s estimated total cost of $37.6 million. The Project impact is improved rural household incomes in the four northern provinces of Bokeo, Luang-Namtha, Oudomxay, and Phongsaly. The outcome is increased agricultural productivity in the four project provinces. There are four outputs (i) productivity-enhancing rural infrastructure constructed and rehabilitated; (ii) productivity-and impact enhancing initiatives adopted; (iii) capacity of national, provincial, and district agencies strengthened to enable a sector development approach; and (iv) efficient and effective delivery of subprojects and project management.

2. Nam Lue – Nam Chang and Nam Sa Productive Rural Infrastructure (PRI) subprojects were initially proposed as part of the shortlist of potential subprojects by the province through the provincial planning process which is based on the provincial five-year economic development plan.

3. As part of the feasibility study, several visits were made to the subproject site to discuss the proposals with the villagers, village, district and provincial authorities.

4. Location and Sub-schemes: Nam Lue – Nam Chang PRI Subproject is located in Luang Namtha district, Luang Namtha province.

5. Nam Lue – Nam Chang PRI Subproject is composed of 3 irrigation sub-schemes of i) Nam Lue 1 irrigation sub-scheme, ii) Nam Lue 2 irrigation sub-scheme, and iii) Nam Chang irrigation sub-scheme. Nam Lue 1 and 2 irrigation sub-schemes are located near each other about 10 km for Nam Lue 1, and 8 km for Nam Lue 2 in the south of Luang Namtha district center accessible via asphalt national road No.3A. Nam Chang irrigation sub-scheme is located in the south of, and adjacent to Luang Namtha district center.

6. The proposed Nam Lue – Nam Chang PRI subproject development plan for the 3 irrigation sub-schemes includes i) replacement of the existing wooden weir with concrete weir, ii) upstream and downstream erosion protection of the weir, iii) construction of fish pass at the weir, iv) concrete lining of main and secondary canal, and v) rehabilitation of rural access road for farm to market and O&M of irrigation facilities.

7. Beneficiary Village and Household: Nam Lue – Nam Chang PRI Subproject benefits 10 villages with total 642 HHs. Four (4) villages of Ban Donmoun (59 HHs), Ban Phonxaysavang (85 HHs), Ban Donkhoun (116 HHs), and Ban Tha Or (42 HHs) benefit from Nam Lue 1 irrigation sub-scheme, 3 villages of Ban Poung (64 HHs), Ban Pasack (1

A8-3 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

HH), and Ban Mai (7 HHs) benefit from Nam Lue 2 irrigation sub-scheme, and 4 villages of Ban Nam Chang (12 HHs), Ban Thong Oum (92 HHs), Ban Houa Khoua (92 HHs), and Ban Vieng Neua (72 HHs) benefit from Nam Chang irrigation sub-scheme, respectively.

8. The total subproject command area is 475 ha, out of which, 123 ha for Nam Lue 1 irrigation sub-scheme, 163 ha for Nam Lue 2 irrigation sub-scheme, and 189 ha for Nam Chang irrigation sub-scheme.

9. The subproject aims to increase the effective irrigated crop area from 427 ha to 475 ha. The cropping system that will be introduced to maximize the use of irrigation water will be rice during the wet season and rice and other commercial crops during the dry season.

10. Location and Sub-schemes: Nam Sa PRI Subproject is located in Long district, Luang Namtha province.

11. Nam Sa PRI Subproject is composed of 2 irrigation sub-schemes of i) Nam Sa irrigation sub-scheme, and ii) Nam Oun irrigation sub-scheme. Nam Sa irrigation sub-scheme is located about 60 km in the west of Long district center accessible via laterite road by only 4 WD vehicles during the dry season. Nam Oun irrigation sub-scheme is located about 27 km from Long district center along the main road No.17B, accessible via laterite road by all types of vehicles throughout the year.

12. The proposed Nam Sa PRI subproject development plan for the 2 irrigation sub-schemes includes i) replacement of the existing wooden weir with concrete weir, ii) upstream and downstream erosion protection of the weir, iii) construction of fish pass at the weir, iv) concrete lining of main and secondary canal, and v) rehabilitation of rural access road for farm to market and O&M of irrigation facilities.

13. Beneficiary Village and Household: Nam Sa PRI Subproject benefits 6 villages with total 247 HHs. Three (3) villages of Ban Sa Mai (60 HHs), Ban Sa Kao (58 HHs) and Ban Tindoi (11 HHs) benefit by Nam Sa irrigation sub-scheme, and 3 villages of Ban Xiengkok Kao (73 HHs), Ban Xiengkok Mai (34 HHs) and Ban Kokmouang (11 HHs) benefit by Nam On irrigation sub-scheme, respectively.

14. The total Nam Sa PRI Subproject command area is 238 ha, out of which, 160 ha for Nam Sa irrigation sub-scheme, and 78 ha for Nam On irrigation sub-scheme.

15. The Nam Sa Subproject aims to increase the effective irrigated crop area from 188 ha to 238 ha. The cropping system that will be introduced to maximize the use of irrigation water will be rice during the wet season and rice and other commercial crops during the dry season.

16. This Initial Environment Examination (IEE) is prepared according to the Asian Development Bank (ADB) Safeguard Policy Statement of June 2009 and the Environment Impact Assessment (EIA) decree of April 2010, Lao P.D.R. And the IEE updated in October 2017 based on detail design. The detail design found there are no severely affected

A8-4 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province households (AHs) losing more than 10% of their productive land. Also, this provincial IEE is provided for two subprojects in the province for Nam Lue-Nam Chang and Nam Sa subprojects in Luang Namtha Province.

17. Investment projects are categorized into two categories in accordance with the Agreement of Ministry of Natural Resources and Environment (MONRE) on the List of Investment Project to Be Conducted IEE or EIA. Category 1 is for small scale project, requiring an initial environmental examination (IEE) and category 2 is for large scale project, requiring an environmental impact assessment (EIA). Where a project is of a type that is not listed, an investment application is submitted to MONRE for screening and confirming the project category. For irrigation projects, those with a command area of between 100 and 2000 ha are in category 1, and those with a command area greater than 2,000 ha are in category 2. The command area of the Nam-Lue Nam Chang PRI subprojects becomes 475 ha and Nams Sa PRI subproject becomes 238 ha of the command area based on the design, hence,. this falls under category 1 under the EIA Decree.

18. The two catchment areas of the 3 sub schemes of the Nam Lue-Nam Chang PRI Subproject locates at elevations between 574 m – 781 m above sea level (ASL) and is in gently undulated flat terrain. Nam Lue 1 and Nam Lue 2 sub-schemes share same catchment area. Mean river bed slopes among two (2) catchments are at between 1.43% and 1.62%. The upper catchment area is in steep terrain, while the maximum height in the catchment area is 1718.9 m ASL.

19. The command area of two sub schemes of the Nam Sa-Nam On PRI subprojects locates at elevations between 437 m – 763 m ASL and is in gently undulating terrain. Mean river bed slopes among the two (2) sub-schemes within the catchment and command area are at are between 1.13 % and 1.16%. The upper catchment area is in steep terrain, while the maximum height in the area is 1710.2 m ASL

20. Geological investigations made by the Agriculture and Forestry Soil Classification Center indicated that the soil layers within the district comprises of 6 soil categories. Most of the soil type is heavy clay and smallest part is sandy loam. The underlying rock in the area is primarily sedimentary rock formed from shallow water sediment, deposited in the Paleozoic era. Soils on the command area are alluvial, transported from parent material in the upper catchment that consists mainly of recently deposited, unconsolidated gravels, sand and clays. The soils are suited to intensive irrigated agriculture, though yields are significantly improved through the application of mineral fertilizer.

21. Climate of the Northern part of Lao People’s Democratic Republic (Lao PDR) has a warm temperate with dry winters and hot summers. The dry season occurs between November and February while the rainy season occurs between May and October. The dry season is generally cooler, though temperatures rise significantly in March and April prior to the onset of the rains.

A8-5 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

22. Detailed meteorological information was sourced from Luang Namtha Provincial Meteorology and Hydrology Station. Rainfall is above 170 mm between May and September, peaking in August at 305.6 mm. From December to February, the rainfall drops up to 20.2 mm by monthly mean. The dry season is particularly pronounced in the province. Rainfall varies significantly by year by month.

23. Regarding Nam Lue-Nam Chang PRI Subproject, there are two (2) water resources, namely, Nam Chang river and Nam Lue (Nam Lue 1 and Nam Lue 2) river for the proposed irrigation sub-schemes. Based on the engineer’s observation the water qualities of the resources are relatively clean, though more turbid in the wet season and sensitive to land disturbance in the catchment areas. Flows are highly dependent on levels of rainfall and are therefore greatly reduced during the dry season. Data on stream flows have not been collected for 2 water sources of Nam Chang, Nam Lue rivers at near subproject sites.

24. Regarding Nam Sa PRI Subproject, there are two (2) water resources of Nam Sa Gnai river and Nam On river for the proposed irrigation sub-schemes. Based on the engineer’s observation the water qualities of the resources are relatively clean, though more turbid in the wet season and sensitive to land disturbance in the catchment areas. Flows are highly dependent on levels of rainfall and are therefore greatly reduced during the dry season. Data on stream flows have not been collected for 2 water sources of Nam Sa Gnai and Nam On rivers at near subproject sites.

25. There are no apparent differences in agrochemicals usage among the subprojects or sub-schemes in Luang Namtha Province. Application of the agrochemicals in the area are observed quite intensively for commercial crop production under concession in Luang Namtha Province as well as other northern provinces. Herbicides, pesticides and other agro-chemicals are imported legally or illegally from China or other countries by investors for application at concessional production areas.

26. Following the Project Administration Manual (PAM) requirements, the Project will install fish ladders for weirs to support migration of aquatic life. The design of fish ladder will be done in accordance with MAF’s Department of Livestock and Fisheries’ project Living Aquatic Research Center (LAREC) recommendations, and appropriate fish passage technical designs and monitoring system under Irrigation Subsector Review (ISR).

27. In Luang Namtha Province, there is Nam Ha National Biodiversity Conservation Area (NBCA) and the NBCA is widely occupying the central area of the province. The catchment area of Nam Lue-Nam Chang PRI subproject is located in the NBCA. The command area including weirs are locating in the downstream of the NBCA. Other than the NBCA there is no NBCA in the catchment or command area of the subprojects.

28. The results of the Sample Household Interview for Nam Lue – Nam Chang PRI Subproject, show that the total average annual income of the interviewed 110 sample households is 42,575,770 kip or 666,003 kip per capita per month, which is above the

A8-6 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province declared national rural poverty line at 180,000 kip per person per month in 2009/2012. It must be noted that about 29% are below the national rural poverty line.

29. Regarding poverty conditions for beneficial villages for each subproject are at almost same conditions; Those incomes are above the declared Lao PDR poverty line in 2009 and the 2012 rural poverty line of Kips180,000/capita per month. It must be noted, however, that 8% of the sample households are poor, 18% are middle income level and 73% are found to have income above the 2009 and 2012 rural poverty line.

30. Ethnicity in Nam Lue Nam Chang 2 based on the Village Household Masterlist and interviews for both PRI subprojects regarding ethnic groups and gender reveal that 84% are male and 76% belonging to the female population in the six (6) villages can speak the Lao National Language. While almost all (99%) Lao-Tai people can communicate in the Lao National Language, only 32% of the non-Lao-Tai people can speak the Lao National Language.

31. For Nam Sa Subproject, the landholding distribution shows that about 137.2 ha of irrigated lands and 17.7 ha of rainfed lowlands are being cultivated by 57HHs and 39HHs respectively. These HHs are the potential direct beneficiaries of the proposed irrigation subproject.

32. The results of the Sample Household Interview for Nam Sa PRI Subproject, show that the total average annual income of the interviewed 110 sample households is 42,575,770 kip or 666,003 kip per capita per month, which is above the declared national rural poverty line at 180,000 kip per person per month in 2009/2012. It must be noted that about 29% are below the national rural poverty line.

33. Based on the Village Household Masterlist and interviews of ethnic groups and gender, 84% of male and 76% of female population of the six (6) villages can speak the Lao National Language. While almost all (99%) Lao-Tai people can communicate in the Lao National Language, only 32% of the non-Lao-Tai people can speak the Lao National Language.

34. Changes in the overall land-use patterns have taken place more rapidly in recent decades, featuring a reduction in cover and degradation in the quality of the forest with a decline of 27% in area and the unsustainable extraction of timber. In the past 4-5 years, growing demand for land from neighboring countries has attracted investors either through contract farming and foreign direct investment (FDI) in plantations such as concessions for rubber, sugar, and cassava production. While FDI should have positive impacts in terms of capital, technology transfer, and market access, such investments can also be a threat to biodiversity and long-term integrity of soil cover, as well as unfavorable for local smallholders. This added pressure on land resources has further undermined smallholder access to their basic productive resource and in some instances, has contributed to further poverty.

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35. The Luang Namtha Province where the 2 PRI subprojects are located is unexploded ordnance (UXO) scarce area. Data on ordnance occurred by the wars between 1968 and 2008 is available from the National Regulatory Authority (NRA), and has been reviewed. In principle, the target sites are UXO-cleared area because of construction of existing irrigation facilities and practicing existing agriculture in the command area. Therefore, the target area within or around the Nam Lue-Nam Chang PRI Subproject site or command area has been cleared from UXO based on the related literature survey and the past irrigation and agriculture activities.

36. For both subproject, potential impacts have been assessed by means of site visits, discussions with local authorities and beneficiaries and the use of secondary sources of information. This section summarizes the potential impacts related to (1) Location, (2) Construction, (3) Operation, and consideration on (4) climate resilience measures, and those required mitigation countermeasures, which is incorporated into the Environmental Management Plan (EMP) prepared for this subproject.

37. Regarding impacts related to location, Nam Lue-Nam Chang 2 and Nam Sa PRI Subproject involves physical changes through both rehabilitation works of existing and construction of new infrastructure of irrigation sub-schemes along existing alignments of main canals and within river management lines. The rehabilitation and construction works of the irrigation sub-schemes will not lead to requirements for acquisition of private assets or other adverse impacts on people:

- No loss of agricultural land. - No loss of residential land. - No loss of primary structures and thus no relocation of houses. - No loss of secondary structures. - No loss of common property. - No loss of trees and crops.

38. For the command areas of the two subprojects in the Luang Namtha Province, there are no national biodiversity protection areas or special ecological significance in and around the command or within the catchment area. Local communities confirm that buildings or artefacts of cultural significance do not occur in the both subproject areas and that no fighting took place during the years of conflict that may have led to the placing of military ordnance in the subproject area.

39. Impacts related to construction for both PRI subprojects in Luang Namtha Province, will be temporary in nature, and can in most cases be mitigated. Mitigation measures are listed in the EMP which is to be included in the bidding documents for contractors, so that the cost of compliance with the mitigation can be included in the bid price.

40. Impact related to operation is also same for both subprojects; Agriculture practiced by beneficiary farmers will intensify in areas beyond the current effective command area. This will bring significant long-term benefit to users. Long term effects on the aquatic

A8-8 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province ecosystem will be minor and result from the expansion of the command area, which will increase the extent of paddy fields which are seasonally inhabited by fish, molluscs, crustaceans and aquatic insects and the improved water storage resulting by the replacement of the weir, which will increase the size of the reservoir behind the weir.

41. Climate changes causes prolonged and high intensity rainfall causes or exacerbates flooding and erosion. As of countermeasures it was confirmed on the inception mission as;1) adding safety factors of at least 20% to weir crest, stilling basin, overall weir size, the width of the DOI design / standard and 2) bioengineering work for protection of the weirs and canals.

42. The Nam Lue-Nam Chang PRI subprojects have been selected on the basis of the number of beneficiaries, the relatively advanced stage of concept design and its situation within Beng district, Oudomxay province, which has been identified as a NRIDP target area under additional financing. Therefore, there is no alternatives of the Nam Lue-Nam Chang PRI Subproject.

43. Two times of public consultations for environment/IEE were carried out. First village consultation took place during the introductory meeting in May 2017 targeting all subproject target villages. Mainly, the subproject information and overall IEE issues were presented to the participants in collaboration with PPO and DCO participating to the consultation and with the subproject villagers. The second consultation was organized in Nov 2017 with participating PPO and DCO officers for same all seventeen (17) subproject target villages.

44. Claims and grievance redress mechanisms were defined in the Project’s Resettlement Framework aiming at the participation of project affected persons (APs) throughout the various stages of land acquisition and resettlement committee (LARC) planning and implementation of subprojects. The information for APs about entitlements, compensation and supportive mitigation options and grievance mechanisms shall be provided by the Project’s relevant agencies and committees. Extensive meetings with APs also allow the implementing agencies to identify the needs and preferences of APs pertaining to compensation and rehabilitation assistance and to reduce any negative potential impacts caused by the proposed subproject.

45. In terms of grievance redresses, the villagers have been briefed about rights to grievance and the procedures during feasibility and detailed design stages in case LARC items would become a subproject related issue. This shall be repeated at the start of construction phase. The APs may present their complaints to the concerned local administrative officials and resettlement committees. The complaint can be filed first at the village level and can be elevated to the highest or provincial level if the APs are not satisfied with the decisions made by the village and district levels/committees. APs will be exempted from all taxes, administrative and legal fees associated with their claims and grievance redress.

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46. Table A8-9 in the main text, describes the mitigation measures required for design, construction and operation of the both subprojects, as well as the cost and responsibility allocation arrangements. Overall responsibility for implementing the EMP rests with PAFO, which during design and construction will be supported by the provincial project office (PPO) in Luang Namtha province, and during operation will involve co-operation with scheme users. Responsibility for incorporating mitigation into scheme design rests with PAFO, supported by the project implementation consultants who will have appropriate specialists based at the national project management office (NPMO) in Vientiane.

47. Executing agency / Implementation agency (EA/IA) appoints an environmental specialist/officer and the contractor for each subproject are also assign environment supervising/monitoring staff. The contractors for subprojects prepares the contractor’s (site-specific) environmental management plan (SSEMP) and submit to the EA/IA through DCO/PPO for approval before commencement of the contracted construction works.

48. Environmental monitoring (showing in table A8-10 in the main text) will cover (i) compliance monitoring, to ensure that mitigation specified in the EMP is carried out to an adequate standard, (ii) community feedback to obtain views and information on relevant environmental parameters and (iii) water quality testing.

49. The contractors for each subproject needs to prepare monthly environmental monitoring report (EMR) based on approved the contractor’s SSEMP and submit to the EA/IA through District Coordination Office / Provincial Project Office (DCO/PPO) for approval when the construction activities started. The EA/IA will submit to ADB the semi-annual EMR describing progress of EMP implementation and corrective actions taken if any.

50. The IEE process has found that the subproject will not cause significant negative environmental impacts. Potential negative impacts relate mainly to the construction phase and can be managed and brought to acceptable levels through the implementation of the EMP. No further environmental assessment is therefore required.

A8-10 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

List of Abbreviation

ADB : Asian Development Bank APs/AHs : Affected Person / Affected Households DAFO : District Agriculture and Forestry Office DCO : District Coordination Office DLWU : District Lao Women’s Union DMU : District Management Unit DOI : Department of Irrigation DOP : Department of Planning EA : Executing Agency EIA : Environmental Impact Assessment EIRR : Economic Internal Rate of Return EMDP : Ethnic and Minority Group Development Plan EMP : Environmental Management Plan EMR : Environmental Monitoring Report ESM : Environment and Social Monitoring FS : Feasibility Study GIC : Grant Implementation Consultant GOL : Government of Lao PDR HH : Household IA : Implementing Agency IEE : Initial Environmental Examination IPP : Indigenous Peoples Plan ISA : Initial Social Assessment ISF : Irrigation Service Fee Lao PDR : Lao People’s Democratic Republic LARC(P) : Land Acquisition and Resettlement Committee (Plan) MAF : Ministry of Agriculture and Forestry NAFRI : National Agriculture and Forestry Research Institute NAFES : National Agriculture and Forestry Extension Service NBCA : National Biodiversity Conservation Area NCMI : Northern Community-Managed Irrigation Sector Project NRA : National Regulatory Authority for the UXO/Mine Action Sector in the Lao PDR NRIDP : Northern Rural Infrastructure Development Sector Project NSC : National Steering Committee NPM : National Project Manager NPMO : National Project Management Office O&M : Operation and Maintenance

A8-11 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

PAM : Project Administration Manual PAFO : Provincial Agriculture Forestry Office PBME : Project Benefit Monitoring and Evaluation pH : Hydrogen-Ion Exponent PIS : Provincial Irrigation Section PLUP : Participatory Land Use Planning PPO : Provincial Project Office PPTA : Project Preparatory Technical Assistance PRI : Productive Rural Infrastructure RMC : Road Maintenance Committee SIA : Social Impact Assessment SRI : System of Rice Intensification SSEMP : Site Specific Environment Management Plan TA : Technical Assistance TOR : Terms of Reference WUA : Water User Association WUG : Water User Group

UNITS ha : Hectare kg : Kilogram km : Kilometer lit : Liter m : Meter m2 : Square meter m3 : Cubic meter mm : Millimeter

A8-12 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Table of Contents (IEE for subproject in Luang Namtha Province, Phase II) A8-1 Introduction ...... A8-15 A8-2 Subproject Description ...... A8-15 A8-3 Scope of IEE ...... A8-24 A8-4 Policy, Legal and Administrative Framework on Environment ...... A8-24 A8-5 Description of the Environment ...... A8-28 A8-5.1 Physical Resources ...... A8-28 A8-5.2 Ecological Resources ...... A8-34 A8-5.3 Economic, Social and Cultural Resources ...... A8-39 A8-5.4 Land Use...... A8-41 A8-5.5 Unexploded Ordnance (UXO) ...... A8-42 A8-6 Anticipated Environmental Impacts and Mitigation Measures ...... A8-44 A8-6.1 Method of Assessment ...... A8-44 A8-6.2 Impacts Related to Location ...... A8-44 A8-6.3 Impacts Related to Construction ...... A8-46 A8-6.4 Impacts Related to Operation ...... A8-48 A8-6.5 Consideration on Climate Resilience Measures ...... A8-50 A8-6.6 Key Data Gaps ...... A8-52 A8-6.7 Uncertainties ...... A8-52 A8-6.8 Global, Transboundary and Cumulative Impacts ...... A8-52 A8-7 Analysis of Alternatives ...... A8-53 A8-8 Information Disclosure, Consultation and Participation ...... A8-53 A8-8.1 Consultations and Information Disclosure during Subproject Design ...... A8-53 A8-8.2 Further Information Disclosure ...... A8-55 A8-9 Grievance Redress Mechanism ...... A8-56 A8-9.1 Requirements ...... A8-56 A8-9.2 Grievance Approach ...... A8-56 A8-10 Environmental Management Plan ...... A8-59 A8-10.1 Responsibilities for Environmental Management ...... A8-59 A8-10.2 Approach to Environmental Monitoring ...... A8-62 A8-11 Conclusions and Recommendations ...... A8-65

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List of Tables Table A8- 1 Summary of Major Proposed Works of Nam Lue Nam Chang Subproject A8-18 Table A8- 2 Summary of Major Proposed Works of Nam Sa Subproject ...... A8-22 Table A8- 3 Roles of Stakeholders in Environmental Assessment ...... A8-26 Table A8- 4 Rainfall in Luang Namtha Province ...... A8-32 Table A8- 5 Mean Max Temperature in Luang Namtha Province ...... A8-32 Table A8- 6 Mean Minimum Temperature in Luang Namtha Province ...... A8-33 Table A8- 7 Observation Water Flow in Nam Lue-Nam Chang Subproject ...... A8-33 Table A8- 8 Observation Water Flow in Nam Sa Subproject ...... A8-34 Table A8- 9 Nam Lue-Nam Chang PRI Subproject Beneficial villages and No of HHs A8-39 Table A8- 10 Nam SA 8PRI Subproject Beneficial villages and No of HHs ...... A8-40 Table A8- 11 Summary of village consultation meetings for information disclosures ... A8-54 Table A8- 12 NRI-AF Main Steps of Grievance Mechanisms ...... A8-58 Table A8- 13 Environmental Management Plan Summary ...... A8-60 Table A8- 14 Environmental Monitoring Plan ...... A8-64

List of Figures Figure A8- 1 Location of Nam Lue-Nam Chang PRI Subproject and Sub-Schemes ...... A8-17 Figure A8- 2 Location of Nam Sa PRI Subproject and Sub-Schemes ...... A8-21 Figure A8- 3 Catchment Area Map Nam Lue-Nam Chang PRI Subproject ...... A8-30 Figure A8- 4 Catchment Area Map Nam Sa PRI Subproject ...... A8-31 Figure A8- 5 Location of NBCA and NRI-AF Subproject Phase II (Year 5) ...... A8-38 Figure A8- 6 US bombing data map during Second Indo-China War (1964-1973) ...... A8-43

Attachments Attachment A8- 1 First Village Consultation Participants List (Nam Lue-Nam Chan Subproject) ...... A8-66 Attachment A8- 2 First Village Consultation Participants List (Nam Sa Subproject) ...... A8-71 Attachment A8- 3 Second Village Consultation Participants List (Nam Lue-Nam Chan Subproject) ...... A8-78 Attachment A8- 4 Second Village Consultation Participants List (Nam Sa Subproject) . A8-83 Attachment A8- 5 REA Check List, Nam Lue-Nam Chang 2 PRI Subproject ...... A8-87 Attachment A8- 6 REA Check List, Nam Sa PRI Subproject ...... A8-90

A8-14 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Annex 8 – Initial Environmental Examination (Nam Lue-Nam Chang 2 and Nam Sa PRI Subproject in Luang Namtha Province)

A8-1 Introduction

1. The Northern Rural Infrastructure Sector Project Additional Financing (the Project) was approved by the ADB on 31 May 2017 for $35.6 million and became effective on 26 July 2017. The government of Lao PDR will contribute $2.0 million equivalent towards the project’s estimated total cost of $37.6 million. The Project’s impact is improved rural household incomes in the four northern provinces of Bokeo, Luang-Namtha, Oudomxay, and Phongsaly. The outcome is increased agricultural productivity in the four project provinces. There are four outputs (i) productivity-enhancing rural infrastructure constructed and rehabilitated; (ii) productivity-and impact enhancing initiatives adopted; (iii) capacity of national, provincial, and district agencies strengthened to enable a sector development approach; and (iv) efficient and effective delivery of subprojects and project management.

2. Nam Lue – Nam Chang Productive Rural Infrastructure (PRI) Subproject was initially proposed as part of the shortlist of potential subprojects by the province through the provincial planning process which is based on the provincial five-year economic development plan.

3. As part of the feasibility study, several visits were made to the subproject site to discuss the proposals with the villagers, village, district and provincial authorities.

A8-2 Subproject Description

(1) Subproject Description Nam Lue – Nam Chang PRI Subproject

4. Location and Sub-schemes: Nam Lue – Nam Chang PRI Subproject is located in Luang Namtha district, Luang Namtha province (Figure A8-1 Location of Subproject and sub-schemes).

A8-15 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

via asphalt national road No.3A. Nam Chang irrigation sub-scheme is located in the south of, and adjacent to Luang Namtha district center.

A8-16 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Figure A8-1 Location of Nam Lue – Nam Chang PRI Subproject and Sub-Schemes

A8-17 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

6. Beneficiary Village and Household: Nam Lue – Nam Chang PRI Subproject benefits 10 villages with total 642 HHs. Four (4) villages of Ban Donmoun (59 HHs), Ban Phonxaysavang (85 HHs), Ban Donkhoun (116 HHs), and Ban Tha Or (42 HHs) benefit by Nam Lue 1 irrigation sub-scheme, 3 villages of Ban Poung (64 HHs), Ban Pasack (1 HH), and Ban Mai (7 HHs) benefit by Nam Lue 2 irrigation sub-scheme, and 4 villages of Ban Nam Chang (12 HHs), Ban Thong Oum (92 HHs), Ban Houa Khoua (92 HHs), and Ban Vieng Neua (72 HHs) benefit by Nam Chang irrigation sub-scheme, respectively.

7. The total subproject command area is 475 ha, out of which, 123 ha for Nam Lue 1 irrigation sub-scheme, 163 ha for Nam Lue 2 irrigation sub-scheme, and 189 ha for Nam Chang irrigation sub-scheme.

Output 1: Production and productivity enhancing rural infrastructure

8. The PRI subproject development plan was examined in view of i) beneficiary needs, ii) economical and technical viability, and iii) climate resilience. The proposed Nam Lue – Nam Chang PRI subproject development plan for the 3 irrigation sub-schemes includes i) replacement of the existing wooden weir with concrete weir, ii) upstream and downstream erosion protection of the weir, iii) construction of fish pass at the weir, iv) concrete lining of main and secondary canal, and v) rehabilitation of rural access road for farm to market and O&M of irrigation facilities.

9. Major works of proposed irrigation development plan are summarized as follows.

Table A8- 1 Summary of Major Proposed Works of Nam Lue Nam Chang Subproject Irrigation Present situation of Rehabilitation of the canals and related Rehabilitation of the weir sub-scheme the weir structures 1. Nam Lue 1 Concrete weir • Construction of new intake • MC: Total MC=2,485m, Concrete lining (KKU-LAO weir: structure and install steel (proposed plan) =2,485m, Canal bridge (1 W=20m, H=1.5m, intake control gate no.), Drop structure (3 nos.), Farm turnout L=12m) with one (0.8mx0.8m) (13 nos.), Farm intake gate (10 nos.), steel intake gate • Upstream bank protection with Division structure (2 nos.) and 2 steel sluice bio-engineering • SC: Total SC=535m, Concrete lining gates and operation • (proposed plan) =535m, Drop structure bridge. Fish pass (W=2m, H=1.5m) with reinforced concrete SC1 (1 no.) Drop structure SC2 (2 nos.), Farm turnout SC1 (2 nos.), Farm turnout SC2 (5 nos.), End canal structure SC1 (1 no.), End canal structure SC2 (1 no.) • Total 2.49 km of O&M road along main canal. 2. Nam Lue 2 Existing concrete • Installation of 2 Intake control • Construction of diversion canal: Total

A8-18 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

spillway of Nam gates (1.0mx1.0mx2 nos.) length=3,228m, Concrete lining (proposed Lue 2 reservoir • Fish pass (W=3m, H=2m) with plan) =3,128m, Concrete flume canal (4 reinforced concrete nos.) =865m, Syphon (1 no.)=100m, Drainage culvert (2 nos.), Drop structure (1 no.), Farm turnout (5 nos.), Division structure (1 no.), End canal structure (1 no.)

• Houay Poung Canal (existing): Total canal

length=2,383m, Concrete lining (proposed plan) =1,000m • Total 4.13 km of O&M road along main canal. 3. Nam Chang Nam Chang 1 weir: • Construction of KKU-Lao Type • MC1: Total MC1=400m, Concrete lining Wooden weir with of RC weir (W=6m, H=0.6m, (proposed plan)=400m, Farm turnout (2 one (left bank) L=4.8m) with 3 stop log type nos.), Road culvert (1 no.), Drainage earth open intake. sluice gates (W=0.8m, inceptor (1 no.), End canal structure (1 no.) H=0.9m) • Total 3.94 km of O&M road along main • Install steel sluice gate canal (MC1 to 4). (0.8mx0.8m, 1 no.) and steel

intake gate (0.6mx0.6m, 1 no.)

• Operation bridge (W=1.0m, L=6m)

Nam Chang 2 weir: • Construction of KKU-Lao Type • MC2: Total MC2=850m, Concrete lining Wooden weir with of RC weir (W=10m, H=0.8m, (proposed plan) =850m, Farm turnout (5 one (right bank) L=9.0m) with 2 stop log type nos.), Canal bridge (2 nos.), Drop structure earth open intake. sluice gates (W=0.8m, (3 nos.), Division structure (2 nos.) H=0.9m) • MC3: Total MC3=475m, Concrete lining • Install steel sluice gate (proposed plan) =475m, Farm turnout (3 (0.8mx0.8m, 1 no.) and steel nos.), End canal structure (1 no.)

intake gate (0.8mx0.8m, 1 no.) • MC4: Total MC4=750m, Concrete lining • Upstream and downstream (proposed plan) =750m, Farm turnout (5 river bank and river bed nos.), End canal structure (1 no.), Drop protection with gabion structure (2 nos.)

• • River bank slope protection SC1: Total SC1=319m, Concrete lining with bio-engineering including (proposed plan) =319m, Farm turnout (2 grass/tree plantation and nos.), End canal structure (1 no.) bamboo frame • SC2: Total SC1=625m, Concrete lining • Operation bridge (W=3.0m, (proposed plan) =625m, Farm turnout (4 L=12m) nos.), End canal structure (1 no.) • SC3: Total SC3=525m, Concrete lining (proposed plan) =525m, Farm turnout (5 nos.), Drainage inlet (1 no.), End canal structure (1 no.) Note: W=width, H=height, L=length, MC: Main Canal, RMC: Right Main Canal, LMC: Left Main Canal, SC: Secondary Canal

A8-19 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

10. The subproject aims to increase the effective irrigated crop area from 427 ha to 475 ha. The cropping system that will be introduced to maximize the use of irrigation water will be rice during the wet season and rice and other commercial crops during the dry season.

(2) Subproject Description (Nam Sa PRI Subproject)

11. Location and Sub-schemes: Nam Sa PRI Subproject is located in Long district, Luang Namtha province (Figure A8-2 Location of Subproject and sub-schemes).

12. Nam Sa PRI Subproject is composed of 3 irrigation sub-schemes of i) Nam Sa irrigation sub-scheme, and ii) Nam Oun irrigation sub-scheme. Nam Sa irrigation sub-scheme is located about 60 km in the west of Long district center accessible via laterite road by only 4 WD vehicles during the dry season. Nam Oun irrigation sub-scheme is located about 27 km from Long district center along the main road No.17B, accessible via laterite road by all types of vehicles throughout the year.

14. The total subproject command area is 238 ha, out of which, 160 ha for Nam Sa irrigation sub-scheme, and 78 ha for Nam On irrigation sub-scheme.

Output 1: Production and productivity enhancing rural infrastructure

15. The PRI subproject development plan was examined in view of i) beneficiary needs, ii) economical and technical viability, and iii) climate resilience. The proposed Nam Sa PRI subproject development plan for the 2 irrigation sub-schemes includes i) replacement of the existing wooden weir with concrete weir, ii) upstream and downstream erosion protection of the weir, iii) construction of fish pass at the weir, iv) concrete lining of main and secondary canal, and v) rehabilitation of rural access road for farm to market and O&M of irrigation facilities.

A8-20 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Figure A8- 2 Location of Nam Sa PRI Subproject and Sub-Schemes

A8-21 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

16. Major works of proposed irrigation development plan are summarized as follows.

Table A8- 2 Summary of Major Proposed Works of Nam Sa Subproject Irrigation Present situation of Rehabilitation of the weir Rehabilitation of the canals and related sub-scheme the weir structures 1. Nam Sa Nam Sa Yai 1 Construction of KKU-LAO type of MC1: Total MC1=2,850m, Concrete lining intake: Wooden concrete weir (W=18m, H=2m, =1,000m, Side canal spillway (3 nos.), Farm weir with open L=13.2m) outlet (7 nos.), Tail structure (1 no.) stone intake Installation of Intake control steel Total 2.8 km of O&M road along main canal gate (0.8mx0.8m), Sluice control for all Nam Sa sub-scheme. steel gate (1.0mx1.0m), and 4 Total 5.0 km of Village to Market Road for stop log type sluice gates. Ban Tingdoi. Fish pass (W=2m, L=3m) Nam Sa Yai 2 Construction of concrete intake MC2: Total MC2=1,700m, Concrete lining intake: Wooden structure with intake control steel =400m, Side canal spillway (3 nos.), Farm weir with open gate (1 no.) without closure weir outlet (3 nos.), Tail structure (1 no.) intake of the river. Nam Sa Noi 1 Installation of intake control steel MC3: Total MC3=1,800m, Concrete lining intake weir: gate (1 no.) =400m, Repair flume (L=250m), Farm outlet Concrete weir with (8 nos.), Tail structure (1 no.) open intake (W=6m, H=0.5m, L=4m) Nam Sa Noi 2, Nam Construction of concrete intake MC4: Total MC4=600m, Concrete lining Sa Noi 3, Nam Sa structure (6 nos.) with intake stop =100m, Farm outlet (4 nos.), Tail str. (1no.) Noi 4, Houay Sing log gate (1 for each) without MC5: Total MC5=350m, Concrete lining 1, Houay Sing 3, closure weir of the river (River =20m, Farm outlet (2 nos.), Tail str. (1no.) Houay Phay 1: width=2-8m) MC6: Total MC6=300m, Concrete lining Total 6 nos. of =30m, Farm outlet (3 nos.), Tail str. (1no.) wooden weirs with MC7: Total MC7=400m, Concrete lining open intake for =50m, Farm outlet (3 nos.), Tail str. (1no.) each MC9: Total MC9=350m, Concrete lining =30m, Farm outlet (4 nos.), Tail str. (1no.) MC10: Total MC10=250m, Concrete lining =30m, Farm outlet (4 nos.), Tail str. (1no.) Houay Phay 2, Construction of KKU-LAO type of MC11: Total MC11=620m, Concrete Houay Phay 3, concrete weir (W=3m, H=0.5m, lining=50m, Farm outlet (3 nos.), Tail Houay Xay Khao 1: L=4-5m) (3 weirs) structure (1 no.) Total 3 nos. of Installation of Intake control steel MC12: Total MC12=150m, Concrete wooden weirs with gate (0.6mx0.6m) and 2 stop log lining=30m, Farm outlet (3 nos.), Tail open intake for type sluice gates. (one for each structure (1 no.) each weir) MC13: Total MC13=150m, Concrete lining=30m, Farm outlet (1 no.), Tail structure (1 no.) Houay Xay Khao 2 Construction of KKU-LAO type of MC14 (L): Total MC14 (L) =950m, Concrete intake weir: concrete weir (W=8m, H=1.0m, lining=400m, Farm outlet (6 nos.), Tail Wooden weir with L=8m) structure (1 no.) open intake Installation of 2 intake control MC14 (R): Total MC14 (R) =760m, Concrete steel gates (both banks) lining=100m, Farm outlet (5 nos.), Tail (0.6mx0.6m, 0.7mx0.7m) and 2 structure (1 no.) stop log type sluice gates. 2. Nam On Nam On intake Construction of concrete intake Canal No.1 to 30: Total canal length of No.1 No.1-2, 4-8, 10-16, structure (23 nos.) with intake to 30 =11,770m, Total concrete

A8-22 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

18-20, 22-23, stop log gate (1 for each intake lining=11,500m, Total farm outlet (86 nos.) 27-30: Total 23 nos. facility) without closure weir of Total 14.3 km of O&M road along main of wooden weirs the river (River width=2-8m) canal. with open intake for each.

Nam On intake No. Downstream weir erosion 3, 9, 17, 21, 24-26) protection by lengthening (W=6-8m, reinforced concrete cut-off of toe H=0.5-1.0m, of fore apron of the weir (for each L=4-6m): weir) Total 7 nos. of River bed (downstream) and river concrete weirs with bank (upstream and stop log intake and downstream) protection by sluice gate for each gabion for Nam On Intake No.9. weir. Note: W=width, H=height, L=length, MC: Main Canal, RMC: Right Main Canal, LMC: Left Main Canal, SC: Secondary Canal

17. The subproject aims to increase the effective irrigated crop area from 188 ha to 238 ha. The cropping system that will be introduced to maximize the use of irrigation water will be rice during the wet season and rice and other commercial crops during the dry season.

Output 2: Productivity and Impact Enhancing Initiatives

18. Besides the irrigation improvement, productivity and impact enhancement initiatives will be delivered by the Project. These initiatives will comprise of compulsory and optional initiatives. The compulsory initiatives will include (i) support for Water Users’ Groups (WUGs, paragraph 30 for WUGs in detail) established to operate and maintain the rehabilitated irrigation facilities; and (ii) water catchments identification and zoning.

19. Establishment of a WUG includes formulation of WUG rules, roles and regulations, WUG registration and WUG capability development. The WUG capacity building will focus on WUG management, WUG financial management, and irrigation system O&M training, further strengthening to be a WUGA, an active association for enabling sustainable marketing of agricultural products. Regarding the catchment area, the district catchment management plans were developed by the project and authorized by the district governor. The Catchment Management Plan will be implemented by other projects and the project will also support the project.

20. Optional initiatives will need to be further discussed with the beneficiaries during detailed design stage and could be selected from production,

A8-23 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

post-harvest handling, processing and the development of market linkage initiatives.

A8-3 Scope of IEE

21. This Initial Environment Examination (IEE) of F/S for Nam Lue-Nam Chang and Nam Sa PRI Subproject / Luang Namtha Province, is prepared according to the Environment Impact Assessment (EIA) decree of April 2010, by Lao PDR and the Asian Development Bank (ADB) Safeguard Policy Statement of June 2009. This IEE was prepared based on the discussion during the public consultations including site visits. Also, the REA checklists are prepared for each subproject and the initial findings based on the completion of the REA checklist (attachment A8-5-1: REA Nam Lue-Nam Chang 2 and Attachment A8-5-2: REA for Nam Sa PRI subproject).

A8-4 Policy, Legal and Administrative Framework on Environment

22. The 8th National Social and Economic Development Plan (8th NSEDP) emphasizes raising agricultural productivity as a development priority since the majority of the workforce is currently engaged in agriculture. One of the biggest challenges that Lao PDR faces is the proper management and protection of the environment and natural resources (land, water resources, forests, minerals, biodiversity). Without adequate and sustainable planning and management of natural resource, the development actions proposed in the 8th NSEDP will cause serious ecological and socio-economic problems and lead to irreversible damage to the environment and exacerbate poverty.

23. The Ministry of Natural Resource and Environment (MoNRE) has developed the “10-year Natural Resources and Environmental Strategy, 2016-2025” based on national directions and policies (National Social and Economic Development Plan, the National Strategies for Economic Development and Poverty Reduction, the IX Government Resolution and sectoral strategies) as well as on regional and global orientations and policies (Millennium Development Goals, climate change and Multilateral Environmental Agreements).1

24. The formation of MoNRE in June 2011 to replace the Water Resources and Environment Administration (WREA) was a move to strengthen environmental

A8-24 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

protection and management within government. Specific policy for environmental management of investment projects is stated in the objectives for the Decree on Environmental Impact Assessment, April 2010 which states that all investment projects that may create adverse environmental and social impacts, are to be designed with the correct and appropriate environmental and social impact prevention and mitigation measures or environmental management and monitoring plans (EMMP) and social management and monitoring plans (SMMP) (Article 1).

25. The law governing the protection of the environment, including the assessment and management of projects, is the Environmental Protection Law (EPL), (1999, revised in 2012) which is further elaborated on by the Decree on the Implementation of the EPL, of 2002. Responsibilities and procedures for Environmental Assessment, together with requirements for environmental monitoring of projects, have been revised and are set out in the EPL and the Ministerial Instruction No. 8029/MONRE dated 17 December 2013.

26. The Ministerial Instruction sets out the principal institutional arrangements, assigning primary responsibility for undertaking environmental assessment of projects to the project developer, which may be an individual or private sector entity as well as a Government Department. In the case of development projects, the relevant line Ministry is responsible to review and assess draft environmental assessments and issue its own approval before submission to MoNRE and local administrations, as appropriate. The MoNRE is responsible for review and approval of environmental assessment reports, coordination of monitoring and evaluation, and issuance of compliance certificates through its provincial departments for IEEs. The public is consulted in most environmental issues as required under the EPL and decrees. The Ministerial Instruction introduced an inclusive mechanism for public consultation and broader civil society participation in project design and implementation; while the instruction further elaborates the roles and responsibilities of key agencies and the timing of consultations.

27. Investment projects are categorized into two categories in accordance with the Agreement (MONRE on the List of Investment Project to Be Conducted IEE or EIA. Category 1 is for small scale project, requiring an initial environmental examination (IEE) and category 2 is for large scale project, requiring an environmental impact assessment (EIA). Where a project is of a type that is not listed, an investment application is submitted to MONRE for screening and confirming the project category. For irrigation projects, those with a command area of between 100 and 2000 ha are in category 1, and those with a command

A8-25 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

area greater than 2,000 ha are in category 2. The roles and responsibilities of the key stakeholder groups for the process, as described in Article 9 of the EIA Decree, are summarized in Table A8-3 in the succeeding page.

28. The decree sets out in detail procedures, rights and responsibilities for the preparation and approval of IEEs and the preparation, approval, implementation and verification of environmental management and monitoring plans (EMMPs).

Table A8- 3 Roles of Stakeholders in Environmental Assessment Roles

Stakeholders

ofECC

Notes eview and eview ieldInspections EE preparation EE Investigation Dissemination meeting F Consultation meetings I R IEE on comment of Incorporation IEE on comment Approval Issuance MONRE     MONRE may nominate provincial office of natural resource and environment to acts on behalf Local Administration     Certification based on verification by MONRE Secretarial body in     charge of investment Line Ministries  Project Developers       Source: EARF Lao Northern Rural Infrastructure Development Sector Project, 2016

29. The Law on Water Supply (2009) is objected to determine the principles, regulations and measures on organization, activities, promotion, management and supervision of water supply activities and business aiming at promoting the production and provision of water supply widely and sufficiently to the users in towns and rural areas in order to ensure the safety for health and to enhance the level of living standards of multi-ethnic people to contribute to social and economic development of the nation. The Water and Water Resources Law (1997) classifies all catchment areas for various uses and promotes protection and rehabilitation of forests, fishery resources and the environment. It suggests that EIA should be carried out on large-scale water development projects, and requires that funds be provided for protecting and enhancing catchment area resources, and for resettlement compensation.

30. NRI-AF is promoting WUGs based on definition by Irrigation Law (No.26/NA in 2012), Decree on Articles of Association for Irrigation Water Users Association

A8-26 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

(No. 156/MAF in 1997) as well as other relevant laws and regulations, the WUG establishment document describes on environmental protection as following.

WUG Executive Committee (EC) is typically composed of 6 – 7 persons and their roles are summarized as below. There is no specific EC member who is charged to the environmental issues.

Position Roles 1 Chairperson General instruction 2 Vice Chairperson 1 Water distribution 3 Vice Chairperson 2 Agro-Production 4 EC Member Accounting 5 EC Member Casher 6 EC Member Marketing 7 EC Member Water distribution

WUG shall make a promotion plan of planting and taking care of trees along the main canal and surrounding area of the weirs in order to prevent erosion. Cutting trees in the area of weirs, reservoir and water sources is strictly prohibited. Water source forest area of the irrigation project must be clearly defined. Persons who disobey shall be punished in accordance with Forestry Law No. 06/NA on 24 December 2007. Fishing by using chemical, pumping water from canal or explosives in rivers and streams in irrigation system are prohibited, as has impacts on environment and eco-system. Persons who disobey shall be punished in accordance with the Law on Water Animal and Wild Animal No. 07/NA on 24 December 2007. WUG members need to follow the above regulations, and PPO/ DCO provide farmers with a training on environmental protection including proper agrochemical use. However, the WUG has no function of monitoring on environmental issues. WUG just has a role in observation of environmental issues occurred during and after the construction period as well as reporting to the village authority. If the issues cannot be solved within the village, the village reports to the district level.

31. Regarding link with PCO/DCO, the communication link was set up for grievance redress process during the village consultation. And WUGs will observe the agrochemical issues and inform to DCO/PCO based on the training and information dissemination.

32. Lao PDR is signatory to the following international environmental agreements:

• ASEAN Agreement on the Conservation of Nature and Natural Resources • Convention for the Protection of the World Cultural and Natural Heritage • Agreement on the Cooperation for Sustainable Development of Mekong River Basin • United Nations Convention to Combat Desertification

A8-27 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

• United Nations Framework Convention for Climate Change • Convention on Biological Diversity • Montreal Protocol on Substances that Deplete the Ozone Layer • Vienna Convention for the protection of theProtocol of the Ozone Layer • Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer • Millennium Declaration • Convention on International Trade in Endangered Species of Wild Fauna and Flora • Stockholm Convention on Persistent Organic Pollutants • Wetlands of International Importance Especially as Waterfowl Habitat (Ramsar Convention)

A8-5 Description of the Environment

A8-5.1 Physical Resources

(1) Topography 33. The two catchment areas of the 3 sub schemes of the Nam Lue-Nam Chang PRI Subproject locates at elevations between 574 m – 781 m above sea level (ASL) and is in gently undulated flat terrain. Nam Lue 1 and Nam Lue 2 sub-schemes share same catchment area. Mean river bed slopes among two (2) catchments are at between 1.43% and 1.62%. The upper catchment area is in steep terrain, while the maximum height in the area is 1718.9 m ASL. (Figure A8-3).

34. The command area of two sub schemes of Nam Sa-Nam On PRI subprojects locates at elevations between 437 m – 763 m ASL and is in gently undulating terrain. Mean river bed slopes among the two (2) sub-schemes within the catchment and command area are at are between 1.13 % and 1.16%. The upper catchment area is in steep terrain, while the maximum height in the area is 1710.2 m ASL (Figure A8-4).

(2) Geology and Soils (Luang Namtha Province) 35. Geological investigations made by the Agriculture and Forestry Soil Classification Centre indicated that the soil layers within the district comprises of 6 soil categories. Most of the soil type at northern Laos is heavy clay and smallest part is sandy loam. The underlying rock in the area is primarily sedimentary rock formed from shallow water sediment, deposited in the Paleozoic era. Soils on the command area are alluvial, transported from parent

A8-28 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

material in the upper catchment that consists mainly of recently deposited, unconsolidated gravels, sand and clays. The soils are suited to intensive irrigated agriculture, though yields are significantly improved through the application of mineral fertilizer.

A8-29 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Figure A8- 3 Catchment Area Map Nam Lue-Nam Chang PRI Subproject

A8-30 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Figure A8- 4 Catchment Area Map Nam Sa PRI Subproject

A8-31 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province (3) Climate (Luang Namtha Province) 36. The Northern part of Lao PDR has a warm temperate climate with dry winters and hot summers. The dry season occurs between November and February while the rainy season occurs between May and October. The dry season is generally cooler, though temperatures rise significantly in March and April prior to the onset of the rains.

37. Detailed meteorological information was sourced from Luang Namtha Provincial Meteorology and Hydrology Station. Rainfall is above 170 mm between May and September, peaking in August at 305.6 mm. From December to February, the rainfall drops up to 20.2 mm by monthly mean. The dry season is particularly pronounced in the province. Rainfall varies significantly by year by month. The table below present the total rainfall figures for the years from 2007 to 2016.

Table A8- 4 Rainfall in Luang Namtha Province

Year Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total 2007 1.4 3.7 1.3 201.2 192.9 117.4 232.8 219.8 149.0 75.5 61.4 0.0 1,256.4 2008 49.3 62.5 51.9 95.0 97.2 169.7 330.0 346.0 165.8 108.3 67.9 6.3 1,549.9 2009 0.0 2.1 18.4 211.6 287.3 309.7 206.7 133.6 143.9 76.6 7.4 17.7 1,415.0 2010 5.2 0.2 28.4 134.2 188.8 180.9 208.8 340.2 175.8 73.1 0.0 8.5 1,344.1 2011 13.8 0.0 144.2 100.4 196.8 243.7 233.9 328.3 260.7 34.9 31.6 6.3 1,594.6 2012 38.9 2.2 13.7 55.8 195.2 158.5 373.2 286.8 121.7 50.6 146.1 16.4 1,459.1 2013 51.5 31.7 22.8 84.7 138.2 206.4 296.4 271.8 303.9 85.1 88.8 169.8 1,751.1

2014 4.7 0.0 66.0 89.4 78.1 209.3 239.4 295.5 215.0 16.2 124.0 1.7 1,339.3 2015 112.2 1.3 70.8 150.5 159.8 82.3 351.3 381.4 125.2 76.7 53.3 58.6 1,623.4 2016 52.4 97.9 1.7 29.6 186.0 73.4 253.4 452.5 132.2 11.9 131.0 0.5 1,422.5 Mean 32.9 20.2 41.9 115.2 172.0 175.1 272.6 305.6 179.3 60.9 71.2 28.6 1,475.5 source: Department of Meteorology and Hydrology (DMH), MAF

38. Max temperature averages between 20.1oC and 27.3oC over the year, with lowest mean temperatures of at 16.7oC occurring in January and reaching 25.5oC in July.

Table A8- 5 Mean Max Temperature in Luang Namtha Province Year Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Annual 2007 25.7 29.1 32.2 31.0 30.3 30.9 29.9 30.4 29.9 29.1 26.8 27.5 29.4 2008 26.8 23.9 28.6 32.0 30.8 30.3 29.0 29.2 30.8 29.4 27.2 24.4 28.5 2009 25.1 30.8 31.6 30.8 31.7 30.0 30.1 31.2 30.9 30.7 27.2 25.6 29.6 2010 28.0 31.3 31.3 34.9 33.8 32.0 31.3 30.8 31.2 29.4 28.2 26.9 30.8 2011 25.3 30.5 28.0 30.2 30.8 30.6 30.6 30.6 30.3 29.3 27.3 23.8 29.0 2012 26.6 30.6 31.6 33.9 32.4 30.9 29.7 30.4 30.5 30.3 28.9 27.0 30.2 2013 12.0 14.5 12.7 17.1 19.6 20.2 21.2 20.6 20.2 17.5 15.8 10.3 16.8 2014 9.8 10.5 13.1 18.3 21.0 22.9 22.7 22.2 21.8 19.0 18.0 13.2 17.7 2015 10.9 11.0 14.2 17.5 21.0 22.4 22.1 22.3 22.3 19.9 18.0 15.1 18.0 2016 11.0 11.5 15.0 17.6 20.4 22.1 22.3 22.4 21.9 20.7 18.2 13.5 18.0 Mean 20.1 22.4 23.8 26.3 27.2 27.3 26.9 27.0 27.0 25.5 23.5 20.7 24.8 source: Department of Meteorology and Hydrology (DMH), MAF

A8-32 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Table A8- 6 Mean Minimum Temperature in Luang Namtha Province

Year Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Annual 2007 11.4 10.1 12.7 18.7 21.4 23.0 23.3 23.0 21.6 19.5 15.5 14.1 17.9 2008 12.5 13.7 15.7 19.7 21.2 22.7 22.7 22.5 22.0 20.8 15.4 11.7 18.4 2009 10.5 12.0 14.1 19.3 21.0 22.5 23.2 22.6 21.9 20.5 14.8 12.3 17.9 2010 12.3 9.2 13.0 17.7 21.8 22.9 22.8 22.7 22.3 20.2 14.3 14.7 17.8 2011 9.0 10.6 11.6 16.6 18.3 20.8 20.6 20.2 20.0 17.1 13.8 9.8 15.7 2012 10.1 10.6 12.8 16.5 20.0 21.8 20.6 20.2 19.5 17.8 16.5 12.5 16.6 2013 26.8 29.6 31.2 33.8 32.9 31.4 30.0 30.9 30.6 28.5 27.6 22.6 29.7 2014 24.8 29.6 32.4 33.9 33.1 31.7 30.1 30.2 31.2 30.1 27.8 25.7 30.1 2015 24.7 28.9 32.4 31.6 33.2 31.6 31.0 30.4 31.1 30.0 29.2 25.0 29.9 2016 24.7 26.4 31.4 35.5 33.9 32.2 30.4 31.6 31.1 31.2 28.9 26.6 30.3 Mean 16.7 18.1 20.7 24.3 25.7 26.1 25.5 25.4 25.1 23.6 20.4 17.5 22.4 Source: Department of Meteorology and Hydrology (DMH), MAF

(4) Water Resources

39. Regarding Nam Lue - Nam Chang PRI Subproject, there are two (2) water resources, namely, Nam Chang river and Nam Lue (Nam Lue 1 and Nam Lue 2) river for the proposed irrigation sub-schemes. Based on the engineer’s observation the water qualities of the resources are relatively clean, though more turbid in the wet season and sensitive to land disturbance in the catchment areas. Flows are highly dependent on levels of rainfall and are therefore greatly reduced during the dry season. Data on stream flows have not been collected for 2 water sources of Nam Chang, Nam Lue rivers at near subproject sites. 40. Wet Season Flow (Nam Lue-Nam Chang): The GIC together with the staff of PIS and DCO observed a certain large flow in July 2017 using float method, estimated at about 2.68 m3/sec for Nam Lue river and 0.57 m3/sec for Nam Chang river as a normal flow during the wet season.

41. Dry Season Flow (Nam Lue-Nam Chang): Nam Lue river has a certain discharge during the dry season, the catchment areas of which is 70 km2. The GIC and the staff of PPO/DCO observed a certain flow, estimated at 1.3 m3/s for Nam Lue river in December 2017. Based on the observation and other information, the design minimum flow of Nam Lue river for this study is estimated at 780 lit/sec, applying a 60% of the stream flow in December. On the other hand, Nam Chang river has a limited discharge during the dry season, the catchment area of which is 11 km2. The GIC and the staff of PPO observed a limited flow, estimated at 400 lit/sec in the stream in December 2017. Based on the observation and other information, the design minimum flow of Nam Chang river for this study is estimated at 240 lit/sec, applying a 60% of the stream flow in December. Additional flow measurements for Nam Lue river and Nam Chang river were done on 20 April 2018 by DCO, the results of which were 1,050 lit/sec for Nam Lue river and 130 lit/sec. for Nam Chang river, respectively.

Table A8- 7 Observation Flow in Nam Lue and Nam Chang Subproject

A8-33 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Observed Water Min Flow estimated Reliability (Confirmation of Sub-scheme Catchment flow in December as 60% of Dec estimated minimum flow by (km2) (l/s) (l/s) PPO/DCO) Nam Chang 400 240 11 130 l/s on 20 April 2018 Nam Lue2 1,300 780 70 1050 l/s on 20 April 2018 Source: NRI-AF (April 2018)

42. Regarding Nam Sa PRI Subproject, there are two (2) water resources of Nam Sa Gnai river and Nam On river for the proposed irrigation sub-schemes. Based on the engineer’s observation the water qualities of the resources are relatively clean, though more turbid in the wet season and sensitive to land disturbance in the catchment areas. Flows are highly dependent on levels of rainfall and are therefore greatly reduced during the dry season. Data on stream flows have not been collected for 2 water sources of Nam Sa Gnai and Nam On rivers at near subproject sites.

43. Wet Season Flow (Nam Sa and Nam On): The GIC together with the staff of PIS and DCO observed a certain large flow in the wet season, estimated at 3.38 m3/sec for Nam Sa Gnai river, and 0.70 m3/sec for Nam On river as a normal flow during the wet season.

44. Dry Season Flow (Nam Sa and Nam On): Nam Sa and Nam On rivers have a certain discharge during the dry season, the catchment areas of which are 110 km2 and 39 km2, respectively. The GIC and the staff of PPO observed a certain flow, estimated at 1.2 m3/s for Nam Sa Gnai and 400 lit/sec for Nam On in the stream in December 2017. Based on the observation and other information, the design minimum flow for this study is estimated at 720 lit/sec for Nam Sa Gnai, and 240 lit/sec for Nam On respectively, applying a 60% of the stream flow in December. Additional flow measurements were done on 20 April 2018 by DCO, the results of which were 990 lit/sec for Nam Sa Gnai and 260 lit/sec for Nam Oun river respectively.

Table A8- 8 Observation Flow in Nam Sa Subproject

Sub-sche Observed Water Min Flow estimated Reliability (Confirmation of Catchment flow in December as 60% of Dec estimated minimum flow by me (km2) (l/s) (l/s) PPO/DCO) Nam Sa 1,200 720 110 990 l/s on 20 April 2018 Nam On 400 240 39 260 l/s on 20 April 2018 Source: Observation by NRI-AF

A8-5.2 Ecological Resources

(1) Land Scape and Land Use

45. For Nam Lue-Nam Chang PRI subprojects, land in and around the subproject site is extensively cultivated, featured paddy at flat area and rubbers at surrounding

A8-34 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province mountain bottoms and up to some of upper mountain area. Slopes bottoms surrounding the flat area have been subject to rubber plantation. There are about 441.5 ha of irrigated lands in the target area and 341.0 ha of rainfed lowlands are being cultivated by 642HHs and 499HHs respectively. These HHs are the potential direct beneficiaries of the proposed irrigation subproject.

46. In addition, there are 60.3 ha of upland farms cultivated by 81HHs, 60.0 ha home garden tilled by 269HHs, 16.0 ha fish ponds being managed by 55HHs, 36.4ha fruit tree farms by 64HHs, 6.6 ha lumber tree farms by 20HHs and 973.6 ha rubber tree farms by 923HHs. Land documents held by HHs on the land they are cultivating are Land Book 01. Farmers with less agricultural lands to cultivate are doing swidden agriculture (slash and burn) in nearby mountain slopes estimated at an area of 15.5ha being cultivated by 18HHs. It is hoped that the rehabilitation/improvement of the irrigation systems will lead to a more intensive agriculture in the lowlands, resulting to increase demand in agriculture labor and will help reducing slash and burn practice. The Project will not be involved in land distribution nor will it cause displacement of HHs from lands they are presently cultivating.

47. For Nam Sa Subproject, the landholding distribution shows that about 137.2 ha of irrigated lands and 17.7 ha of rainfed lowlands are being cultivated by 57HHs and 39HHs respectively. These HHs are the potential direct beneficiaries of the proposed irrigation subproject.

48. In addition, there are 82.4ha of upland farms cultivated by 110HHs, 0.4 ha home garden tilled by 8HHs, 6.5 ha fish ponds being managed by 20 HHs, and 336.4 ha rubber tree farms by 321 HHs. Farmers with less agricultural lands to cultivate are doing swidden agriculture (slash and burn) in nearby mountain slopes estimated at an area of 99.3 ha being cultivated by 101 HHs. It is hoped that the rehabilitation/improvement of the irrigation systems will lead to a more intensive agriculture in the lowlands, resulting to increase demand in agriculture labor and will help reducing slash and burn practice. The Project will not be involved in land distribution nor will it cause displacement of HHs from lands they are presently cultivating.

(2) Agrochemicals 49. Agrochemicals usages are not apparent differences among the subprojects or sub-schemes in Luang Namtha Province. Applications of the agrochemical in the area are observed quite intensively for commercial crop production under concession in Luang Namtha Province as well as other northern provinces. Herbicides, pesticides and other agrochemicals are imported legally or illegally from China or other countries by investors for applying them at concessional production. Also, farmers can buy the products in most provincial towns. Label of the agrochemicals are usually not translated into Lao language and not understandable

A8-35 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province for the farmers. Although there are regulations and decrees on the agrochemicals control and application, many of the chemicals are stocked contain substances that are banned in Lao PDR. The Department of Agriculture. MAF has the mandate to control and manage the supply and trading of pesticides, and dealers are required to register at the Provincial Departments of Agriculture. In addition, farmers including commercial plantation are usually not disposing agrochemical wastes properly against to the decree on pesticide. The decree defines about the disposal in the Article 36 Treatment and Disposal of Pesticides; The treatment and disposal of the pesticides shall be carried out in accordance with the procedure and with the use of technology determined by the natural resources and environment sector. The expenses incurred for the treatment or disposal of the pesticides shall be charged to the owner of the pesticides. NRI-AF considers the agrochemical situation and will make maximum efforts attaining proper agrochemical use; i) dissemination and training of proper agrochemical use for WUGs and PMO/DCO, ii) organizing pesticide monitoring through perceiving or observation of agrochemicals as one of WUG activities by PMO/DCO, and iii) practicing external pesticide check for demonstration.

(3) Passage for Aquatic Life 50. Para.40 in the Project Administration Manual (PAM), April 2017, suggests that Climate instability is anticipated and a number of countermeasures will be taken including (ii) constructing passages to reduce stress on aquatic life by enabling aquatic migration up- and downstream of the weirs.

51. For Phase I, the Project implemented two (2) PRI subprojects of Nam Beng and Nam Oun subprojects in Oudomxay province, which include four (4) irrigation weirs constructed/rehabilitated during 2017-18 dry season. With the PAM requirements, the fish passages were installed to each of all the four (4) weirs. The design of the fish passage was done referring to FAO/DVWK: “Fish passes - Design, dimensions and monitoring”, Rome, FAO. 2002 recommended by ADB specialist.

52. During the site visits of Nam Beng and Nam Oun subprojects on 20-22 June 2018, the ADB Review Mission found their concerns that the design of these constructed 4 fish ladders do not appear to conform to standards to established for Laos conditions. The Mission requested the Project to consult with MAF’s Department of Livestock and Fisheries’ project Living Aquatic Research Center (LAREC) and modify the fish ladders design in accordance with LAREC recommendations. Further, the Mission recommended the Project to include under the Irrigation Subsector Review (ISR) appropriate fish passage technical designs and monitoring system to be applied for the remaining irrigation schemes. In this context, the Project will follow these recommendations.

A8-36 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province 53. On the other hand, catching of aquatic life is surveyed in and around the subproject area, those are mainly on a household scale. According to the interview, the villagers answered that current the amount of fish caught in the stream is enough to serve for families’ consumption only and not enough to sell in the market. Further, DCO reported that the aquatic resource particularly fish in the stream have somewhat decreased over the last 10 years due to the use of prohibited fishing techniques (electro fishing) and the officers of DOF have working for arresting the illegal catchers and confiscating the illegal their fishing-gears. Still exists illegal or over catching but understand the control also started.

(4) National Protected Area, Fauna and Flora 54. In Luang Namtha Province, there is Nam Ha National Biodiversity Conservation Area (NBCA) and the NBCA is widely occupying the central area of the province (Fig A8-5). The catchment area of Nam Lue-Nam Chang PRI subproject is located in the NBCA. The command area including weirs are locating in the downstream of the NBCA. Other than the NBCA there is no NBCA in the catchment or command area of the subprojects. The NBCAs in Lao PDR have been established the Decree on Establishment of National Conservation Forest (1993). The above decree prohibits the following actions in NCBAs:

1) Cutting and removal of any timber except for research purposes. 2) Practicing agriculture, Hunting, fishing or collecting non-timber fore st products without specific authorization each time from MAF/DoF. 3) Mining and construction of reservoirs or roads without the permission of the GoL, or other encroachment such as resettlement, owner ship, etc.

A8-37 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

National Biodiversity Conservation Area (NBCA) Nearby

Phou Den Dinh NBCA

Nam Ha NBCA

Figure A8- 5 Location of NBCA and NRI-AF Subproject Phase II F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province A8-5.3 Economic, Social and Cultural Resources

55. Nam Lue-Nam Chang PRI Subproject is expected to benefit eleven (11) villages with a total of 1,825 HHs. The number of HHs of the eleven villages of the subproject area are in the table 8-6;

Table A8- 9 Nam Lue-Nam Chang PRI Subproject Beneficial villages and No of HHs Name of Sub-scheme Village No of HH (1) Nam Chang 1) Nam Chang 198 2) Thong Oum 206 3) Houa Khoua 187 4) Vieng Neua 275 (2) Nam Lue 1 5) Donmoun 187 6) Phonxaysavang 203 7) Donkhoun 172 8) Tha Or 64 (3) Nam Lue 2 9) Poung 215 10) Pasack 48 11) Mai 70 Source: SIA report NRI-AF, October 2017 (Village Household Masterlist)

56. The main source of HH income is non-agriculture, which shares 64% of total household income, as the subproject area covers the provincial and district centers area. Important non-agriculture income sources are salaries as government and private employees, private business such as trading and retail business, daily employment as construction worker, and sales of non-timber forest products (NTFPs) especially cardamom. About 36% of the average annual income of sample households is from agriculture sources, mainly rubber and rice (SIA report, Oct 2017, NRI-AF).

57. The results of the Sample Household Interview show that the total average annual income of the interviewed 110 sample households is 42,575,770 kip or 666,003 kip per capita per month, which is above the declared national rural poverty line at 180,000 kip per person per month in 2009/2012. It must be noted that about 29% are below the national rural poverty line.

58. Regarding poverty conditions for beneficial villages for each subproject are at almost same conditions; Those incomes are above the declared Lao PDR poverty line in 2009 and the 2012 rural poverty line of Kips180,000/capita per month. It must be noted, however, that 8% of the sample households are poor, 18% are middle income level and 73% are found to have income above the 2009 and 2012 rural poverty line.

59. Nam Lue-Nam Chang PRI Subproject beneficial villages, based on the “SIA Report 2”, Based on the Village Household Masterlist, 1,613 HHs (or 88%) in the area are classified to be at medium income level, 147 HHs (or 8%) are reported to be poor

A8-39 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province and 65 HHs (or 4%) are high income category. For the distribution on type of houses, 7% are modern houses made of concrete and iron/tile roofing, 48% are medium houses made of combination of local materials, concrete and iron roofing, and 45% of houses are small ordinary houses made of local materials such as bamboo, wood and grass.

60. Nam Sa PRI Subproject beneficial villages Subproject is expected to benefit nine (6) villages with a total of 418 HHs. The names and number of HHs of the nine villages of the subproject area are in the table 8-5;

Table A8- 10 Nam SA PRI Subproject Beneficial villages and No of HHs Name of Sub-scheme Village No of HH (1) Nam Sa 1) Sa mai 70 2) Sa kao 69 3) Tindoi 38 (2) Nam On 4) Xiengkok kao 105 5) Xiengkok mai 88 6) Kokmouang 64 Source: SIA report NRI-AF, October 2017 (Village Household Masterlist)

61. The main source of HH income is non-agriculture, which shares 56% of total household income. Important non-agriculture income sources are private business such as trading and retail business, and on-farm and off-farm employments. About 44% of the average annual income of sample households is from agriculture sources, mainly rice and rubber.

62. he results of the Sample Household Interview show that the total average annual income of the interviewed 60 sample households is 24,496,463 kip or 393,834 kip per capita per month, which is above the declared national rural poverty line at 180,000 kip per person per month in 2009/2012. It must be noted that about 40% are below the national rural poverty line. Average income of Tindoi village is also still below the national rural poverty line (180,000 kip per person per month).

63. Based on the Village Household Masterlist, 72% of HHs in the area are classified to be at medium income level, 23% are reported to be poor and 5% are high income category. For the distribution on type of houses, 34% are modern houses made of concrete and iron/tile roofing, 50% are medium houses made of combination of local materials, concrete and iron roofing, and only 16% of houses are small ordinary houses made of local materials such as bamboo, wood and grass.

64. Based on the Village Household Masterlist and interviews of ethnic groups, men and women, 84% of male and 76% of female population of the six (6) villages can speak the Lao National Language. While almost all (99%) Lao-Tai people can communicate in the Lao National Language, only 32% of the non-Lao-Tai people can speak the Lao National Language.

A8-40 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province A8-5.4 Land Use

65. Land use of Nam Lue-Nam Chang catchment area is different by sub-schemes. I) the lower part of upstream is paddy and upper part are covered by shifting cultivation, ii) middle part of upstream is covered by rubber farm and iii) highest upper part is delineated as Nam Ha Forest Conversation. Nam Chang catchment area is almost occupied by rubber farm.

66. While irrigated agriculture can take place in lowland areas and valley floors, hilly areas were previously heavily forested and subject to a level of shifting cultivation that probably did not threaten the integrity of forest reserves. However, with increases in population and economic activity, the pressure on land subject to shifting cultivation has intensified, leading to a search for more sedentary forms of land use. The Lao PDR’s Strategic Vision for the Agriculture and Forestry Sector involves a gradual expansion of market mechanisms to mountainous areas to help enable the transformation of traditional agricultural production and stabilize shifting cultivation activities.

67. A further strategic vision on integrated watershed management (IWSM) is founded on the cause-impact linkage between land use practices in upper watersheds and their impacts on water downstream, and formed the basis of a “landscape continuum planning framework” developed by the Ministry of Agriculture and Forestry (MAF), which translates the IWSM into local level operational procedures. Participatory tools for planning that leads to improved and more sustainable land use include Agro-ecological zoning and participatory land use planning, preventing conflicts among land and resource users. The combination of the implementation of government policy in the uplands and developing markets has accelerated the transition from traditional livelihoods towards more productive and cash crop oriented agriculture systems. Besides the implementation of government policy and market development, changes to sustainable land use patterns also require assurance of security of land tenure for rural households. A detailed analysis of constraints and opportunities for sustainable upland development and the role of land use planning and the development of zones for appropriate land uses has been undertaken as part of the PPTA and will guide support to land use planning to be undertaken during the sector project.

68. However, changes in the overall land-use patterns have taken place more rapidly in recent decades, featuring a reduction in cover and degradation in the quality of the natural forest with a decline of 27% in area and the unsustainable extraction of timber and non-timber forest products (NTFPs). In the past 4-5 years, growing demand for land from neighboring countries has attracted investors either through contract farming and foreign direct investment (FDI) in plantations such as concessions for rubber, sugar, and cassava production. While FDI should have positive impacts in terms of capital, technology transfer, and market access, such

A8-41 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province investments can also be a threat to biodiversity and long-term integrity of soil cover, as well as unfavorable for local smallholders. This added pressure on land resources has further undermined smallholder access to their basic productive resource and in some instances, has contributed to further poverty.

A8-5.5 Unexploded Ordnance (UXO)

69. The Luang Namtha Province where the 2 PRI subprojects are located is unexploded ordnance (UXO) scarce area. Data on ordnance occurred by the wars between 1968 and 2008 is available from the National Regulatory Authority (NRA), and has been reviewed. In principle, the target sites are UXO-cleared area because of construction of existing irrigation facilities and practicing existing agriculture in the command area. Therefore, the target area within or around the Nam Lue-Nam Chang PRI Subproject site or command area has been cleared from UXO based on the related literature survey and the past irrigation and agriculture activities (Figure A8-5 US bombing data map during Second Indo-China War, 1964-1973).

70. Again, there are records on any ordnance arising from ground fighting or from bombings by Southern Vietnamese, Lao or Thai air forces (National Survey of UXO Victims and Accidents, Phase I, NRA). During construction stage, detailed consultations are requested for clearing the ordnance if there are uncleared ordnance case is happened.

A8-42 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Luangnamtha

Phase II: Year 5 approx. subproject location

Source: NRA for UXO/Mine Action Sector Lao PDR (http://www.nra.gov.la/uxomap.html)

Figure A8- 6 US bombing data map during Second Indo-China War (1964-1973) F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province A8-6 Anticipated Environmental Impacts and Mitigation Measures

A8-6.1 Method of Assessment

71. Potential impacts have been assessed by means of site visits, discussions with local authorities and beneficiaries and the use of secondary sources of information. This section summarizes the potential environmental impacts and required mitigation, which is incorporated into the Environmental Management Plan prepared for this subproject.

A8-6.2 Impacts Related to Location

72. Nam Lue-Nam Chang PRI Subproject involves physical changes through rehabilitation works within the existing corridor of impact and access. It comprises the combination of 3 headworks (2 rehabilitations and one new construction), 10 gates, 15,280 m canal mainly lining, and 146 new related structures. As no substantial widening of the canal network is planned, no permanent restrictions on the movement of people and animals are likely. At present, not all canals in the network are lined, and prone to substantial seepage losses, which will be significantly reduced by the proposed improvements. Surplus water flows into streams at the periphery of the network. With reduced seepage losses, more water will flow into these streams, however this is not likely to significantly affect the receiving waters, either positively or negatively.

73. The SIA survey confirmed for these improvements by the both subprojects does not lead to requirements for acquisition of private assets and detailed design succeed the situation also. At detailed design stage, the rehabilitation works of this Nam Lue-Nam Chang PRI Subproject will result in: i) No loss of agricultural and residential land; ii) No loss of crops and trees; iii) No loss of primary and secondary structures. Thus, no relocation of houses; iv) No cases of economic resettlement and vulnerable people caused, v) No loss of common property.

74. And the rehabilitation works of the Nam Lue-Nam Chang PIR will result in: i) Loss of agricultural land of about 900 sqm owned by 6 AHs for whom this would represent a loss of 1.4% of their total productive land. There are no severely AHs losing more than 10% of their productive land; ii) No loss of crops and trees; iii) No loss of residential land, iv) No loss of primary and secondary structures, v) No relocation of households, vi) No loss of common property; and vii) One affected vulnerable household.

75. There are no areas of special ecological or biodiversity significance in or around the command area or within the catchment. Local communities confirm that buildings or artifacts of cultural significance do not occur in the subproject area and that no

A8-44 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province fighting took place during the years of conflict that may have led to the placing of military ordnance in the subproject area.

76. Nam Sa PRI Subproject involves physical changes through rehabilitation works within the existing corridor of impact and access. It comprises the combination of rehabilitation (two) and new construction (one) of 3 headworks, 10 gates, 15,280 m canal mainly lining, and 146 new related structures. As no substantial widening of the canal network is planned, no permanent restrictions on the movement of people and animals are likely. At present, not all canals in the network are lined, and prone to substantial seepage losses, which will be significantly reduced by the proposed improvements. Surplus water flows into streams at the periphery of the network. With reduced seepage losses, more water will flow into these streams, however this is not likely to significantly affect the receiving waters, either positively or negatively.

77. The SIA survey confirmed for these improvements by the both subprojects does not lead to requirements for acquisition of private assets and detailed design succeed the situation also. At detailed design stage, the rehabilitation works of this Nam Sa-Nam On PRI Subproject will result in: i) No loss of agricultural and residential land; ii) No loss of crops and trees; iii) No loss of primary and secondary structures. Thus, no relocation of houses; iv) No cases of economic resettlement and vulnerable people caused, v) No loss of common property.

78. And the rehabilitation works of the Nam Sa PIR will result in: i) Loss of agricultural land of about 900 sqm owned by 6 AHs for whom this would represent a loss of 1.4% of their total productive land. There are no severely AHSs losing more than 10% of their productive land; ii) No loss of crops and trees; iii) No loss of residential land, iv) No loss of primary and secondary structures, v) No relocation of households, vi) No loss of common property; and vii) One affected vulnerable household.

79. These Nam Lue-Nam Chang and Nam Sa PRI subprojects involve physical changes through both rehabilitation works of existing and construction of new infrastructure of irrigation sub-schemes along existing alignments of main canals and within river management lines. The rehabilitation and construction works of the irrigation sub-schemes will not lead to requirements for acquisition of private assets or other adverse impacts on people:

80. The mitigation approach of this PRI Subproject (i) has been embedded in the entitlement, assistance and benefits approach as defined in the Project

A8-45 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Resettlement Framework (RF), (ii) is compliant with ADB’s Safeguard Policy Statement (2009), and (iii) has been orientated in the Lao legal context.

81. There are no requirements for acquisition of private and/or public land or other assets by these PRI subprojects and therefore no compensation necessary.

82. Temporary land requirements for access and site installations will be designed by the contractor and approved during the construction phase by the resident site engineer. Any land acquisition requirements shall follow the same principles as set out in the Resettlement Framework (RF).

83. Consequently, there is also no resettlement budget required by this PRI Subproject for compensation of loss of private land or other assets. The PRI Subproject’s associated initiatives are covered through a separate budget of the Project. In addition, the costs for land acquisition, resettlement and compensation (LARC) and safeguards implementations are borne also by separate budgets.

84. There are no areas of special ecological or biodiversity significance in or around the command area or within the catchment. Local communities confirm that buildings or artefacts of cultural significance do not occur in the subproject area and that no fighting took place during the years of conflict that may have led to the placing of military ordnance in the subproject area.

A8-6.3 Impacts Related to Construction

85. Impacts related to construction for both subprojects of Nam Lue-Nam Chang and Nam Sa PRI, will be temporary in nature, and can in most cases be mitigated. Mitigation measures are listed in the EMP which is to be included in the bidding documents for contractors, so that the cost of compliance with the mitigation can be included in the bid price.

86. Excavation work, to prepare canals for the installation of lining and of borrow areas will release silt, except when works take place during dry conditions – expected to complete the works within the eight (8) months. However, if the works are controlled, quantities will be small, and will either be carried away by the irrigation water when the scheme is completed, or will settle on roads, paths and fields where it will not cause a problem. The use of silt fences will probably not be necessary for canal lining operations, but may be justified at borrow sites, if there is a risk of releasing significant quantities of silt from these. Mitigation of any risks of silt runoff will be achieved by (i) the placement, by the Contractor, of a site supervisor for all excavation work, (ii) confining excavation operations to the dry season (iii) use of silt traps where warranted, according to instructions from the construction supervisors and (iv) disposal of spoil from excavation works at sites approved by the construction supervision agency and concerned local authorities. To the extent possible, spoil should be used as fill, for example backfilling of culvert walls.

A8-46 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province 87. Construction operations may also involve the temporary closure of the existing irrigation systems. Because construction will take place mainly during the dry season, this may have significant impacts on crops and livestock and on local livelihoods. In some situations, this can be mitigated by the use of temporary diversions, either in channels or by the use of flexible pipes and pumps where necessary, however it is unlikely to be feasible to maintain full irrigation flows while the works are taking place. User communities will also be involved in scheme planning and construction, ensuring that local farmers are aware of the construction schedule will further mitigate the effects of temporary closure.

88. Excavation works will also release dust, which will be a potentially significant nuisance where it takes place close to peoples’ homes. Where excavation operations carried out during dry and windy weather are within 50m of an occupied dwelling, excavated sites should be sprayed with water to control dust release. The operation of plant is not expected to cause a significant increase in air pollution, as most construction tasks are likely to involve hand labour. Only light plant such as cement mixers and water pumps are likely to be used.

89. Similarly, as most construction will involve hand labour or small plant, noise nuisance is not expected to be significant. The location of the new weir is about 2 km away from the nearest village.

90. Temporary use of land, including the construction of a temporary track for vehicular access to the weir site, will receive compensation in the form of rents payable during scheme construction period and land will be re-instated in accordance with the RF.

91. The proposed temporary vehicle access track has yet to be identified. Due to the relief in the area, it is likely that some significant earthworks will be involved in constructing the track from the nearest road head. Spoil from earthworks must be re-used to the extent possible, provided to local users for re-use, stockpiled for use when the site is reinstated, or disposed of at a suitable location approved by the supervising engineers. On completion of the works the track should be reinstated in accordance with the wishes of the affected landowners.

92. While the Contractor will be encouraged to engage local people for the works, some skilled workers and possibly supplementary labour will need to be brought to the site from elsewhere in Lao PDR. These workers are likely to be accommodated in buildings rented by the Contractor, though temporary accommodation may also be built. Interactions with local residents can potentially lead to the spread of communicable diseases, or incidences of disharmony, and temporary toilet facilities can release raw sewage. These potential effects can be avoided or mitigated by (i) consultation with local people on acceptable areas for siting of facilities, (ii) installation of suitable toilets such as pit latrines and grey water drainage facilities such as soakage pits (iii) arrangements for collection of solid waste, (iv) provision of

A8-47 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province potable water supply for workers and first aid kits at the site/temporary accommodation, (v) briefing of workers and awareness raising of the local population on dangers of communicable diseases including proper waste disposal and management and maintenance of sanitary condition at the site and vicinity by practicing proper waste management, and (vi) assignment of responsibility for worker and local peoples’ welfare to a senior member of the Contractor’s staff.

93. Some construction operations, including excavations and use of plant and the use and handling of fuels or other hazardous materials will pose a small safety risk to workers and to local people. The mitigation measures for rehabilitation of disturbed areas and cleanup of sites including temporary workers camp have to be taken after completion of construction works. These will be mitigated by the allocation of responsibility for site safety to the Contractor’s site supervisory staff, who will ensure that all reasonable safety measures, such as use of safety clothing and equipment and placing of hazard warnings are taken.

94. Fuels and hazardous materials may also cause soil contamination or pollution of waterways. These and safety hazards will be prevented either by exclusive use of commercial fuel providers operating nearby, or by the storage of fuel in designated, supervised areas that are clearly marked and have restricted access. These areas should be at least 20m from the nearest watercourse. All machine waste will be deposited in sealed containers and removed from the site for recycling or safe disposal as appropriate.

A8-6.4 Impacts Related to Operation

95. Agriculture practiced by beneficiary farmers will intensify in areas beyond the current effective command area for both Nam Lue-Nam Chang and Nam Sa-Nam On PRI Subproject. This will bring significant long-term benefit to users. Users who are not currently using water pumps to obtain irrigation water will begin to practice irrigated agriculture, or to resume irrigated agriculture if they were in areas where irrigation water was formerly available. Any increase in the use of agrochemicals, particularly pesticides, can affect plant, animal and insect populations and lead to loss of biodiversity. A tendency to apply excessive agrochemicals or improper collection and disposal of spent agrochemicals containers can be mitigated by the promotion of sustainable land use practices such as (i) the promotion about proper agrochemical application based on instruction by the label of the chemical including proper collection and disposal of spent agrochemical containers for one of information dissemination and training activities for WUGs, (ii) promotion of the recording agrochemical application for pest and disease management, focusing on cost effective and environmentally friendly or benign pest management techniques, through emphatic discouragement of the use of persistent pesticides through

A8-48 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province awareness raising and training on the proper use of agrochemicals through PAFO and DAFO.

96. Long term effects on the aquatic ecosystem will be minor and result from the expansion of the command area, which will increase the extent of paddy fields which are seasonally inhabited by fish, molluscs, crustaceans and aquatic insects and the improved water storage resulting by the replacement of the weir, which will increase the size of the reservoir behind the weir.

97. The intensification of agriculture will also lead to greater use of fertilizers. Surplus fertilizer, such as nitrogen compounds that are not taken up by plants or bound in the soil will raise the nutrient status of the water released at the outflow of the system, increasing the chemical oxygen demand of the water. If allowed to accumulate, or if insufficiently diluted when released into the receiving waters, the increased nutrient status may affect the aquatic ecosystem and lead to algal blooms. This risk can be reduced by information and training of farmers in informed use of mineral fertilizers, so that they are applied at optimal levels. Besides reducing environmental risks, this has the added advantage of reducing farmers’ input costs.

98. The incidence of waterborne diseases e.g. bacterial food poisoning causes dysentery or cholera, parasite, malaria, etc., are recognized at local communes significant. Irrigation water is used as a supplementary source for domestic purposes, and this practice will increase after construction when the more water may be flowing through the system. Risks will come both from waterborne pathogens, and from any increase in ponding that may result from wastages, as ponds provide a habitat for insect vectors of disease. These risks can be mitigated by (i) promoting improved operation and maintenance of the schemes as part of training and support to water user groups so that blockages and ruptures causing water logging are rapidly repaired, and (ii) raising awareness, during training and support to water user groups, on the hazards posed by poor sanitation, water logging and use of untreated irrigation water for drinking.

99. There are competitions with other water uses. Population growth and increasing incomes will place increasing demands for domestic water supply, as well as for irrigation. At present, the water for domestic use is obtained from a variety of sources including open wells and gravity fed supplies from streams. Water from the irrigation canals is used for washing and in some cases, drinking and cooking. The planning of cost effective and efficient water supplies, avoiding water use conflicts in the future will benefit from water resource data such as systematic recording of water levels in the reservoir.

100. Also with increasing population and use of irrigated agriculture, the demand for irrigation water will grow and potentially lead to conflict among users. This can be substantially reduced by collaborative action among users to optimize the use of

A8-49 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province irrigation water and to ensure that allocations to all users, including those situated at the periphery of the network, are fair.

101. As with all irrigation schemes, soil salinization may occur as a result of the accumulation of salts that are dissolved in the irrigation water, and upward transport of salt deposits in lower soil horizons in the case of over-irrigation. These risks are low for the scheme, as any salt not taken up by growing plants will be subject to natural flushing by rainwater in the wet season, and users consulted during the field visits confirmed that over-irrigation rarely takes place. Over-irrigation is prevented both by the relative shortage of irrigation water towards the edges of the command area, by water regulation for areas closer to the primary canal. While salt build-up may occur in these areas, risks of widespread build-up over irrigated fields are low.

102. Risks of increasing erosion and scour are limited. Land either side of the canal alignment is gently sloping and not readily prone to erosion. There may be some risk to water flows by the deposition of material excavated for house building or other construction purposes, or from dumping of solid waste into the system.

As most rivers in Laos are sediment laden for 12 months of the year (specially the wet season), it is inevitable that silt will be deposited in the canals as well as upstream of the weir. Mitigation Measures (Desilting system): (i) In order to minimize and control silting in the canals and upstream of the weir, the proposed irrigation facilities are equipped with i) stoplog scouring sluice gates at the middle of the weir, ii) control intake gates, and iii) control scoring sluice gates beside intake gate. (ii) WUG members are responsible for observing and routine maintenance works, which include i) periodic silt remove and weed clearance to recover their flow capacity as originally designed, ii) repair and re-shape earth work portion and bank up to the design level, iii) repair damage to the lining concrete, joint portion, masonry works, iv) clean garbage in the channel clogging and causes water quality deterioration, etc.

A8-6.5 Consideration on Climate Resilience Measures

103. In general, there are two extreme conditions happening with the climate change that affect irrigation: 1) prolonged and higher intensity rainfall that affects the stability of slopes in the catchment, and 2) prolonged and severe drought, where the diversion of water to irrigation schemes can exacerbate the effects of low flows on aquatic ecosystems. There are difficulties with quantification of these; the duration and intensity of high rainfall in wet years and the duration and severity of drought years are difficult to be quantified. To take account of climate change, we can assume that these get worse. Various kinds of climate models exist, however to obtain predictions at the catchment level, complex "downsizing" is required and results from different models can vary considerably. Furthermore, there are no records of flood and drought extremes that have occurred. There are also the extreme low or high

A8-50 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province temperatures. Irrigation development should respond mainly on the first two different situations.

104. On the inception mission meeting, the countermeasures for climate resilience were discussed. A prolonged and high intensity rainfall causes or exacerbates flooding and erosion. An approach for the climate resilience is for adding 20% to Q50-years (A 50-year return period peak flow event) for weir design or DOI standard and demonstrative bioengineering measures. To increase the factor of safety of the main irrigation facilities, integrated design responses could be listed below. This Luang Namtha irrigation subprojects will employ following measures listed below:

1) making the infrastructure stronger (20 % strong specifications than before); 2) drainage improvement (increased capacities) for flood water at optimum time so as not to destroy the irrigation facilities as well as not to submerge and destroy crops, which includes construction of an emergency spillway at a suitable location near the weir site and canal side spillways, etc.; 3) improvement of river bank protections and provision of silt ejectors along canals to control canal siltation due to erosion; 4) O&M strategies such as operating sluice ways during floods to flush out silt/debris out of the dam/weir basin and closing the intakes to prevent silt entering the canals and prevent overtopping and destruction of canals; 5) canal embankment erosion or erosion of the head works control by planting appropriate grass and tree through demonstrative bioengineering measures; and 6) catchment erosion control and promoting infiltration of rainwater to ground thus the surface flowing water quality becomes low, the surface water velocity decreases and erosion and siltation on the area are controlled.

105. In other words, design standards must be raised 20% as a basis for changes in the design standard. For practical application in the absence of data, the design engineers interview the local people and ask the following question: i) changes in flood levels and the frequency of flooding, ii) timing and duration of extreme drought, etc.

106. The extreme drought could be responded by O&M strategies, like i) adjusting cropping schedules to maximize utilization of rainfall and avoiding months of extremely low water supply (March, April and May), ii) using varieties with low water requirement and avoiding or minimizing production of rice during the dry season, and iii) water management practices such as “intermittent irrigation” or “alternate wetting and drying” for rice which saves water and promote improve equal water distribution among farmers. Such is the method of irrigation for “SRI” (System of Rice Intensification).

A8-51 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province 107. Extremely low and high temperature has effects on crops. Rice will not grow or tends to be stunted when extremely low temperatures occur and there are crops that are affected by high temperatures too. What can be done is to adjust the cropping to avoid months of potentially very low temperatures and very high temperatures. Anyway, humans tend not to be able to work in the field during these occurrences.

A8-6.6 Key Data Gaps

108. Only present-day data is available on-stream flows in the Nam Chaung and Nam Lue for Nam Lue-Nam Chang PRI Subproject and Nam Sa and Nam On for Nam Sa Subproject. The amount of water than can be extracted for irrigation use without depleting minimum flows to the extent that they cause the lower reaches of the steam to dry up and damage the aquatic ecosystem, are not known. For reliable planning on levels of permissible extraction, the flow levels in dry years need to be known, and dry years appear to recur on a cycle of between 6 to 10 years approximately. It is therefore not practicable to await long term flow data before stream construction. However, systematic recording of flow rates prior to, during and after construction will serve to guide water users as to maximum permissible extraction rates.

A8-6.7 Uncertainties

109. The principal uncertainty related to this initial environmental examination relates to the lack of information over stream flows and its fluctuation within and between years. Other, though less important uncertainties relate to (i) the effectiveness of the operation of the Water User Group (WUG) for the scheme, and (ii) the effectiveness of extension on the use of pesticides, fertilizers and improved agriculture techniques to take place during implementation and (iii) the effectiveness of land use planning in protecting or enhancing the integrity of the catchment as well as safeguarding livelihoods for people living in and around the subproject area.

A8-6.8 Global, Transboundary and Cumulative Impacts

110. The controlled use of irrigation water and the use of potentially harmful chemicals in pest control are, to some extent, transboundary issues. Risks of the use of harmful substances or excessive use of less harmful substances in irrigated agriculture are heightened by ready availability from neighboring countries. In particular, Chinese products that provide no information on active ingredients, hazard warnings or instructions in Lao and English are regularly purchased and used in the subproject area. These risks can be reduced by improved regulation of the agro-chemical industry within China, and improved control over the trading of these over the China / Lao PDR border, as well as by improved information collection on agrochemicals available on the local market, and dissemination on their proper use.

A8-52 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province 111. Irrigation schemes always cause some reduction in downstream water flows, due to increased losses to evapotranspiration. For a small scheme such as the Nam Lue, the transboundary impact is minimal but any successful promotion of efficient use of irrigation water will both minimize wastage in the scheme itself and also provide a source of knowledge for adoption by practitioners of irrigated agriculture in the neighboring area.

112. Similarly, any improvements in managing irrigation, use of agro-chemicals and in group capacities for co-operative action will have a potentially cumulative impact in the area, by contributing to a build-up of knowledge and skills among communities who interact with neighboring communities.

A8-7 Analysis of Alternatives

113. The Nam Lue-Nam Chang and Nam Sa PRI Subprojects are one of a number of candidate irrigation subprojects selected for the NRI-AF under additional financing. Alternative subprojects are also other irrigation schemes. The Nam How Irrigation Subproject has been selected by procedure and criteria depicted on PAM, based on the number of beneficiaries, the relatively advanced stage of concept design and its situation within Luang Namtha District, Luang Namtha Province, which has been identified as a NRIDP target area under additional financing.

114. The existing irrigation system is weir and canal network made of wood and concrete. There is no other alternative water sources than the current planned rivers Nam Chang - Nam Lue, and Nam Sa - Nam On for both PRI projects nearby. As a gravity fed scheme, it will be relatively simple to construct and maintain and inexpensive to operate. The use of a weir is necessary to provide sufficiently regular flows for irrigated agriculture to be feasible.

115. The “no project” alternative would, in this case, simply mean the substitution of the Nam Lue-Nam Chang and Nam Sa-Nam On PRI subprojects with an alternative scheme within Luang Namtha and Long districts or another project target area.

A8-8 Information Disclosure, Consultation and Participation

A8-8.1 Consultations and Information Disclosure during Subproject Design

116. Two times of public consultations for environment/IEE were carried out (table A8-9). First village consultation took place during the introductory meeting in May 2017 targeting all subproject target villages. Mainly, the subproject information including design and overall IEE issues were presented to the participants in collaboration with PPO and DCO participating to the consultation and with the subproject villagers. The

A8-53 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province second consultation was organized in Nov 2017 with participating PPO and DCO officers for same all seventeen (17) subproject target villages.

Major issues raised on the meeting by villagers and/or PPO/DCO officers are following; i) Soil erosion will occur during construction phase?, ii) Impact to people assets loss (mobilize equipment and materials) or not during construction work?, iii) How to manage water source at upstream?, iv) How to manage of agrochemical use?, and v) How to solve problem of use water conflict due to lack water during dry season?, as far as national environmental specialist confirmed on the meetings.

Table A8- 11 Summary of village consultation meetings for information disclosures Participants subjects raised on the PRI subproject/ Total village Date Venue meeting, features / findings of Sub-scheme (Female/mal the sub scheme) e) First Village Consultation in Luang Namtha Province Nam Sa Sub Project, Long District, Luang Namtha Province Nam Sa 1. Ban Sakao, May Samai1) 118 - There are active and Sub-Scheme 2. Ban Samai 29, (56/62) inactive FPGs because of 3. Ban Tindoi. 2017 market - There is cassava production but no market Nam On Sub 4. Ban Xiengkok kao May Xiengkok 72 (17 / - No shifting cultivation, no Scheme 5. Ban Xiengkok mai, 30, kao 55) plantation (sugarcane, 6. Kokmouang 2017 casaba, or banana), No WUG, No IFS collection, no FPG Nam lue–Nam chang Subproject, (Luang Namtha District, Luang Namtha Province) Nam Lue 1 Sub 7. Don Moun, June Phonxay 69 (16 / - Don Moun refused lending Scheme 8. Phonxaysavang, 03, savang 53) land to Chinese for avoiding 9. Donkhoune 2017 contamination, WUG is not 10. Tha Or. collecting IFS after out of use of the budget by leader Nam Lue 2 Sub 11. Poung, June Poung 86 (13 / - No dry paddy rice Scheme 12. Paksack, 01, 73) production due to water 13.Mai 2017 scarcity, Heavy floods were in 1975 and 2015 Nam Chang 14. Thong Oum June Thong 70 (15 / - Influence on their assets Sub Scheme 15. Houakoua 02, Oum 55) and productions. 16. Vienneua 2017 - water use right 17. Namchang - worry about agrochemical application by plantation

Second Village Consultation in Luang Namtha Province Nam Sa Sub Project, Long District, Luang Namtha Province Nam Sa Sub 1. Ban Sa kao, Nov Sa Kao 77 (15/62) - Contracted farming but no Scheme 2. Ban Samai 17, appearing to buy the 3. Ban Tindoi. 2017 products Nam On Sub 4. Ban Xiengkok kao Nov Xiengkok 86 (35 / - During the dry season, Scheme 5. Ban Xiengkok mai, 18, Kao 51) paddy fields are lent to 6. Kokmouang 2017 Chinese at 5 million kip / ha / 4 months (Kokmouan) Nam lue–Nam chang Subproject, (Luang Namtha District, Luang Namtha Province) Nam Lue 1 Sub 7. Don Moun, Nov Phonxay 26 (5 / 21) - Chinese applied many

A8-54 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Scheme 8. Phonxaysavang, 22, savang agrochemical and left used 9. Donkhoune 2017 plastics of agrochemicals, 10. Tha Or. 170HH grows cardamom at abandoned oil fruits land (Don Moun). Nam Lue 2 Sub 11. Poung, Nov Poung 26 (7 / 19) - No WUG and no IFS Scheme 12. Paksack, 23, payment. Only 3 paddy field 13.Mai 2017 owners in the village. If the irrigation system is broken, they collectively repair it Nam Chang 14. Thong Oum Nov Thong 30 (8 / 22) - Herbicides are spraying by Sub Scheme 15. Houakoua 21, Oum Chinese plantation on the 16. Vienneua 2017 mountain slope for start 17. Namchang banana plantation and scaring the situation.

Source: NRI-AF village consultation report (2017), Field Report (2017)

117. Overall, the NRI-GIC consultation and public participation presented the following agenda and information about the proposed subproject. The presentations were followed by discussions to collect opinions from people who may be affected:

• Summary of the proposed works under the subproject; • Summary of subproject objectives and likely positive and negative environmental impacts during the construction and operational phases; • Any areas of concern that they may have during project implementation; and • Acceptability of the proposed works to the public.

118. The active participation and feedback of the subproject beneficiaries during the consultations/meetings has been recorded. The participants lists are prepared at Attachment A8-1 and A8-3 for First and Second village consultation for Nam Lue-Nam Chang and Attachment A8-2 and A8-4 for Nam Sa PRI subproject respectively.

A8-8.2 Further Information Disclosure

119. This IEE for F/S in English version was explained to the village officials and the subproject beneficiaries, to district administrations verbally. This IEE will be updated based on D/D and the Lao version of the IEE for the D/D will be prepared by the PAFO in collaboration with GIC. The translated IEE will be reviewed by the PAFO and then submitted to DONRE in Luang Namtha to secure issuing environment compliance certificate with inviting comment from the public in accordance with the EIA Decree No. 112/PM, dated 16 April 2012. Copies will be left for review for a period of 30 days.

120. During construction and operation, communities in and around the subproject area will kept informed of construction activities that are likely to cause noise and dust nuisance, or disruption to irrigation flows or roads and pathways.

A8-55 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province A8-9 Grievance Redress Mechanism

A8-9.1 Requirements

121. These mechanisms are defined in the Project’s Resettlement Framework aiming at the participation of APs throughout the various stages of Land Acquisition and Resettlement Compensation (LARC) planning and implementation of subprojects. The information for APs about entitlements, compensation and supportive mitigation options and grievance mechanisms shall be provided by the Project’s relevant agencies and committees. Extensive meetings with APs also allow the implementing agencies to identify the needs and preferences of APs pertaining to compensation and rehabilitation assistance and to reduce any negative potential impacts caused by the proposed subproject.

122. In terms of grievance redresses, the villagers have been briefed about rights to grievance and the procedures during feasibility and detailed design stages in case LARC items would become a subproject related issue. This shall be repeated at the start of construction phase. The APs may present their complaints to the concerned local administrative officials and resettlement committees. The complaint can be filed first at the village level and can be elevated to the highest or provincial level if the APs are not satisfied with the decisions made by the village and district levels/committees. APs will be exempted from all taxes, administrative and legal fees associated with their claims and grievance redress.

A8-9.2 Grievance Approach

123. The main steps outlined below serve as an orientation for the grievance main approach. Additional steps can be incorporated as appropriate. For each step details shall be described, agreed and explained to both resettlement responsible committees and the residents of affected villages.

124. In general, APs are entitled to lodge complaints regarding any aspect of the preparation and implementation of this LAC Report without prejudice to their right to file complaints with the court of law at any point in the process. The implementing agencies will shoulder all administrative and legal fees that will be incurred in the resolution of grievances and complaints.

125. It is recognized that members of APs might not have writing skills or ability to articulate their grievances verbally, however, then APs are encouraged to seek assistance from the subproject and/or nominated local non-governmental organizations and/or other family members, village heads to have their grievances recorded in writing and to have access to the LARC documentation, and to any survey or valuation of assets, to ensure that where disputes do occur all the details have been recorded accurately enabling all parties to be treated fairly.

A8-56 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province 126. All complaints and resolutions will be properly documented by the PPO/DCO and be available for (a) the public and (b) review for monitoring purposes.

A8-57 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Table A8- 12 NRI-AF Main Steps of Grievance Mechanisms Steps, Actions and Levels of Intervention Time ▼ V I L L A G E 1.1 Complainant explains problem/issue verbally. 1.2 In communities existing village mediation committees (VMCs) would be the first contact for affected persons (APs), or complainants on environmental matters, to address their concerns. 1.3 VMC would be responsible for land acquisition and compensation (LAC) issues or the village 5 1 would establish a Project related village LAC committee. days 1.4 The committee aims at clarifications and solution within its village and with the complainant. 1.5 This mediation aims at a Project internal immediate solution. If the complaint cannot be solved at this stage, the next step is to apply. ▼ S U B – P R O J E C T If not solved before: 2.1 Complainant presents complaint/s or grievance/s verbally or in writing. 2.2 A Sub Project grievance committee (SPGC) would be the second contact for complainants Further to address their concerns. 10 2 2.3 Registration of the complaint by SPGC. days 2.4 In collaboration with VMC and complainant this SPGC would elaborate on the complaint. 2.5 This mediation aims at a Project internal amicable solution. If the complaint cannot be solved at this stage, the next step is to apply. ▼ D I S T R I C T If not solved before: 3.1 APs would address their complaints to the Grievance Redress Committee (GRC). Further 3.2 Involvement of authorities and departments 10 3 3.3 Collaboration with complainants, SPGC and village committee. days 3.4 This mediation aims at a mutual arrangement to solve the complaint. If the complaint cannot be solved at this stage, the next step is to apply. ▼ P R O V I N C E If not solved before: 4.1 Complainants with or without support from CSO/NGO, but with assistance from the Project would address their complaints to the provincial departments and possibly governor’s office. Further 4.2 Shall involve GRC. 10 4 4.3 Can involve independent, external advice on the issues of the complaint. days 4.4 At this level, a formal agreement would be the objective to agree upon. 4.5 Before applying step 5, provincial and district staff should make final efforts to find an agreement with the AP. If the complaint cannot be solved at this stage, the next step is to apply. ▼ C O U N T R Y If not solved before: Open, 5.1 Final step to solve land acquisition, boundary and/or compensation issue. but 5.2 Court will take note and register the case. further 5 5.3 Court to provide final juristic decision. 20 5.4 In case of required actions the complainant and/or Project proponent have to days follow.

Notes N-1: Concerning step 1 the village should decide about its internal approach and time required N-2: The shown approach is in line with the Technical Guidelines on Compensation and Resettlement of Affected People by Development Project, March 2010. N-3: The shown days per step should be understood as a maximum duration. N-4: The grievance procedures are also applied for environment related complaints.

A8-58 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province A8-10 Environmental Management Plan

A8-10.1 Responsibilities for Environmental Management

127. Table A8-9 describes the mitigation measures required for design, construction and operation of the scheme, as well as the cost and responsibility allocation arrangements. Overall responsibility for implementing the Environmental Management Plan (EMP) rests with PAFO, which during design and construction will be supported by the provincial project office (PPO) in Luang Namtha Province, and during operation will involve cooperation with scheme users. Responsibility for incorporating mitigation into scheme design rests with PAFO, supported by the project implementation consultants who will have appropriate specialists based at the national project management office (NPMO) in Vientiane.

128. Responsibility for carrying out environmental mitigation of construction impacts again rests with the PAFO, as the agency responsible for construction supervision. However, the EMP should form part of the works contract documentation so that the contractor in each case incorporates the cost of mitigation into the bid price, including provision of staff and equipment when necessary to carry out all mitigation tasks in full.

129. During scheme operation, responsibility for mitigation rests primarily with the scheme users, supported by PAFO.

130. In addition, the contractors for subprojects prepares the contractor’s (site-specific) environmental management plan (SSEMP) and submit to the EA/IA through DCO/PPO for approval before commencement of the contracted construction works.

131. EA will agree with the subproject contractor by a lumpsum allowance including in the bill of quantity (BOQ). Contractors should be clearly informed/notified of this requirement and dully implement it. Thus the sufficient budget for environment monitoring is allocated and available for EMP implementation in each subproject

A8-59 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Table A8- 13 Environmental Management Plan Summary Responsibility for Potential Environmental Impact Mitigation measure(s) Cost Allocation Implementation Pre-Construction Stage Safety Hazards to workers and local Preparation of plans by the Contractor, allocating responsibilities for safety, health and Construction Cost Contractor people, and effects of temporary worker welfare to senior staff; preparation of plans for first aid and emergency procedures; populations in the area preparation of plans for satisfactory accommodation of workers, and of information and instruction to be disseminated to workers regarding risks of communicable diseases, waste management and sanitation. Effects on homes and property Completion of land acquisition and compensation tasks as detailed in the Resettlement RF budget NPMO / GIC Framework for the sector project Effects of the construction of a Selection of the alignment of the access track to minimize extent of earthworks Design task PPO/DCO temporary vehicle access track necessary; securing of agreements with affected landowners (negligible cost) Possible social conflicts, noise and air Proper site selection, observing criteria which primarily protect the general public. Construction Cost Contractor pollution due to site selection for work Observe a minimum distance (buffer zone) between camp site and nearest residential camps. area. Employ mediators to curb social conflicts. Environmental problems associated (i) Preparation of site management plan, indicating rehabilitation options and Construction Cost Contractor with location/selection and requirements to observe environmental safeguards, especially for adjacent water abandonment of quarry sites, such as resources and crop lands. erosion, landslides, sedimentation, soil (ii) Contractor must present a decommission plan for each quarry site, to be approved contamination, damage or loss of by the Engineer. habitats and biodiversity. Environmental compliance with Lao (i) Preparation of IEE report including environmental management plan and Design task/ PPO GIC PDR’s Decree on Environmental Impact environmental monitoring plan. PPO/DCO Assessment (ii) Submission of the IEE to DONRE to secure the environmental compliance certification prior to project implementation Information dissemination and (i) Organize information education program for farmers on handling of agrochemicals PPO, WUG PPO/DCO education program on environmental and wastes management including waste disposal, (ii) Organize orientation training for contractors on EMP implementation. handling of agrochemicals Impacts from Construction

A8-60 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Responsibility for Potential Environmental Impact Mitigation measure(s) Cost Allocation Implementation Effects associated with the extraction of (i) re-use of excavated material to the extent practicable, (ii) obtaining materials from Construction Cost Contractor materials licensed quarries and (iii) forming appropriate agreements with landowners for borrow sites, and landscaping works to used borrow sites, in accordance with the agreements made with landowners. Release of silt (i) Adequate supervision of the works, (confining excavation works to the dry months, Construction Cost Contractor (iii) discretionary use of silt traps where warranted and (iv) careful placing of excavated material Temporary closure of the irrigation Use of temporary diversions using pipes and pumps where necessary; involvement of Construction Cost Contractor system scheme users in planning of the works Dust generation and noise nuisance (i) Wetting of excavation sites and stockpiled material during dry and windy weather, Construction Cost Contractor when within 50m of an occupied dwelling (ii) Excessive noise from construction activities is not expected to be an issue, since the works are not located near residential areas. Where there is excessive noise disturbance, agreement shall be made with local communities on restriction of working hours Use of land for storage and as works (i) Compensation to landowners according to the LARP and restoration of land to Construction Cost Contractor depots former condition or better, according to agreements formed with landowners, (ii)Rehabilitation and cleanup of disturbed areas after completion of construction works. Effects of construction of temporary (i) careful supervision of earthworks to ensure minimal damage to farmland and Construction Cost Contractor vehicle access track vegetation, (ii) reuse of surplus spoil, distribution to users in or near the subproject area, or disposal at a site approved by the PAFO / PPO. Effects of temporary worker populations (i) consultation with local people on acceptable areas for siting of facilities, (ii) Construction Cost Contractor installation of suitable toilets such as pit latrines and grey water drainage facilities such as soakage pits (iii) arrangements for collection of solid waste, (iv) briefing of workers and awareness raising of the local population on dangers of communicable diseases, (v) assignment of responsibility for worker and local peoples’ welfare to a senior member of the Contractor’s staff, and (vi) cleanup of temporary camp site after completion of construction works.. Safety hazards to workers and local Allocation of responsibility for site safety to the Contractor’s site supervisors staff, who Construction Cost Contractor people will ensure that all reasonable safety measures, such as use of safety clothing and equipment and placing of hazard warnings are taken.

A8-61 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

A8-10.2 Approach to Environmental Monitoring

132. Environmental monitoring will cover (i) compliance monitoring, to ensure that mitigation specified in the EMP is carried out to an adequate standard, (ii) community feedback to obtain views and information on relevant environmental parameters and (iii) water quality testing.

133. Water quality testing is necessary to detect any deterioration of water quality and in view of the fact that some scheme users use the scheme water as a supplementary source of domestic water supply, to ensure that it is not dangerous for that purpose. Testing against drinking water quality standards is therefore not warranted. In order to determine the safety of the water, it should be tested for levels of coliform bacteria, chemical and biological oxygen demand. In addition, the improvement of the irrigation system will lead to increased agricultural activity and increased use of agrochemicals. Water or soil may be affected by runoff containing agrochemicals. Thus, the pesticides monitoring will be conducted by annual basis during construction and followed operation stage. The following parameters and limits are recommended:

Parameters Maximum Value

Temperature - Turbidity - pH (Hydrogen Ion Exponent) 5.5 – 9 Fecal Coliforms <1,000 per 100 ml Biological Oxygen Demand (20oC) <25 mg/l Chemical Oxygen Demand <35 mg/l

Regarding agrochemical monitoring, the target chemicals or chemical group will be specified based on the environment and social monitoring (ESM). ESM will conduct the agrochemical monitoring for all the ongoing irrigation subprojects. Currently following chemical analysis would be considered as draft target agrochemical groups of which are, but not limited to: Organochlorine, Organophosphate group, Pyrethroid group and Carbamate group.

134. Samples should be taken prior to, during and after construction, and taken to an appropriate laboratory for analysis.

135. EA/IA appoints an environmental specialist/officer to monitor and supervise the implementation of the EMP of each subproject on behalf of the EA/IA during subproject construction.

136. The contractors for each subproject needs to prepare monthly environmental monitoring report based on approved the contractor’s SSEMP and submit to the EA/IA through DCO/PPO for approval when the construction activities started.

A8-62 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province 137. The EA/IA will submit to ADB the semi-annual environmental monitoring report (EMR) describing progress of EMP implementation and corrective actions taken if any. The final version of the reports will be disclosed on the ADB’s website. The EMR schedule will be delivered in the beginning of year-2018.

A8-63 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Table A8- 14 Environmental Monitoring Plan Impact to be Monitored Parameters Location Measurements Frequency Responsibilities Design and Preconstruction Phase Level of pathogens and solid waste in Water quality: Temperature, Selected sample Collection of sample Quarterly, approximately PPO/DCO water and pesticide for irrigation / conductivity, pH, Fecal Coliforms, sites in the and laboratory analysis 12 months prior to domestic use BOD and COD, command area construction Others; Changes as perceived by WUGs Health and safety and welfare of workers Compliance with EMP All work sites / Compliance Once PPO/DCO and the public worker accommodation Construction Phase Level of pathogens and solid waste in Changes as perceived by WUGs Participating Consultations To be decided by PAFO / PPO/ DCO water and pesticide for irrigation / villages PPO at the start of the domestic use works Temperature, conductivity, pH, Selected sample Collection of sample Before construction and PPO/DCO Fecal Coliforms, BOD and COD sites in the and laboratory analysis at two-monthly intervals command area during construction Adequacy of and effectiveness of the Opinions of users Participating Consultations To be decided by PAFO / PPO/DCO scheme: quantity of water; increases in villages PPO at the start of the crop yields; occurrence of disputes works Implementation of construction mitigation Compliance All work sites Consultations To be decided by PAFO / PPO/DCO measures detailed above PPO at the start of the works Operation Phase Level of pathogens and solid waste in Changes as perceived by WUGs Participating Consultations To be decided by PAFO / PPO/DCO water and pesticide for irrigation / villages PPO at the start of the domestic use works Temperature, conductivity, pH, Selected sample Collection of sample Quarterly PPO /DCO/WUG Fecal Coliforms, BOD and COD sites in the and laboratory analysis command area Adequacy of and effectiveness of the Opinions of users Participating Consultations To be decided by PAFO / PPO/DCO scheme: quantity of water; increases in villages PPO at the start of the crop yields; occurrence of disputes works Water flow monitoring Weir outflow Measurements Monthly PPO/DCO

A8-64 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

A8-11 Conclusions and Recommendations

138. The IEE (initial environment examination) process has found that the subprojects will not cause significant negative environmental impacts. Potential negative impacts relate mainly to the construction phase and can be managed and brought to acceptable levels through the implementation of the EMP. No further environmental assessment is therefore required.

139. The subproject is therefore being classified as Category B according to the ADB’s classification system. This refers to projects that are judged to have some adverse environmental impacts, but of lesser degree or significance than those for Category A projects.

140. It is recommended that the EMP is included in contract documentation for works contracts, and in agreements formed with water user groups. Emphasis should be placed on regular monitoring of stream water flows.

A8-65 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Attachment A8- 1First Village Consultation Participants List (Nam Lue-Nam Chan Subproject)

Luang Namtha Province Nam Lue – Nam Chang PRI Subproject May - June 2017 Village Consultation Participants List 1/5

A8-66 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-1 First Village Consultation Participants List Luang Namtha Province Nam Lue – Nam Chang PRI Subproject May - June 2017 Village Consultation Participants List 2/5

A8-67 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-1 First Village Consultation Participants List Luang Namtha Province Nam Lue – Nam Chang PRI Subproject May - June 2017 Village Consultation Participants List 3/5

A8-68 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-1 First Village Consultation Participants List Luang Namtha Province Nam Lue – Nam Chang PRI Subproject May - June 2017 Village Consultation Participants List 4/5

A8-69 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-1 First Village Consultation Participants List Luang Namtha Province Nam Lue – Nam Chang PRI Subproject May - June 2017 Village Consultation Participants List 5/5

A8-70 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Attachment A8- 2 First Village Consultation Participants List (Nam Sa Subproject)

Luang Namtha Province Nam Sa PRI Subproject May - June 2017 Village Consultation Participants List 1/7

A8-71 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-2 First Village Consultation Participants List Luang Namtha Province Nam Sa PRI Subproject May - June 2017 Village Consultation Participants List 2/7

A8-72 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-2 First Village Consultation Participants List Luang Namtha Province Nam Sa PRI Subproject May - June 2017 Village Consultation Participants List 3/7

A8-73 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-2 First Village Consultation Participants List Luang Namtha Province, Nam Sa PRI Subproject May - June 2017 Village Consultation Participants List 4/7

A8-74 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-2 First Village Consultation Participants List Luang Namtha Province, Nam Sa PRI Subproject May – June 2017 Village Consultation Participants List 5/7

A8-75 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-2 First Village Consultation Participants List Luang Namtha Province, Nam Sa PRI Subproject May – June 2017 Village Consultation Participants List 6/7

A8-76 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-2 First Village Consultation Participants List Luang Namtha Province, Nam Sa PRI Subproject May – June 2017 Village Consultation Participants List 7/7

A8-77 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Attachment A8- 3 Second Village Consultation Participants List (Nam Sa Subproject)

Luang Namtha Province Nam Lue – Nam Chang PRI Subproject November 2017 Village Consultation Participants List 1/5 (Phonxaysavang Village, Luang Namtha District)

A8-78 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-3 Second Village Consultation Participants List Luang Namtha Province Nam Lue – Nam Chang PRI Subproject November 2017 Village Consultation Participants List 2/5 (Poung Village, Luang Namtha District)

A8-79 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-3 Second Village Consultation Participants List Luang Namtha Province Nam Lue – Nam Chang PRI Subproject November 2017 Village Consultation Participants List 3/5 (Thong Oum Village, Luang Namtha District)

A8-80 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-3 Second Village Consultation Participants List Luang Namtha Province Nam Lue – Nam Chang PRI Subproject November 2017 Village Consultation Participants List 4/5 (Thong Oum Village, Luang Namtha District)

A8-81 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-3 Second Village Consultation Participants List Luang Namtha Province Nam Lue – Nam Chang PRI Subproject November 2017 Village Consultation Participants List 5/5 (Thong Oum Village, Luang Namtha District)

A8-82 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Attachment A8- 4 Second Village Consultation Participants List

Luang Namtha Province Nam Sa PRI Subproject November 2017 Village Consultation Participants List 1/4 (Sa Kao, Sa Mai and Tindoi Village, Long District)

A8-83 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-4 Second Village Consultation Participants List Luang Namtha Province Nam Sa PRI Subproject November 2017 Village Consultation Participants List 2/4 (Sa Kao, Sa Mai and Tindoi Village, Long District)

A8-84 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-4 Second Village Consultation Participants List Luang Namtha Province Nam Sa PRI Subproject November 2017 Village Consultation Participants List 3/4 (Sa Kao, Sa Mai and Tindoi Village, Long District)

A8-85 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Attachment A8-2 Second Village Consultation Participants List Luang Namtha Province Nam Sa PRI Subproject November 2017 Village Consultation Participants List 4/4 (Sa Kao, Sa Mai and Tindoi Village, Long District)

A8-86 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Attachment A8- 5 REA Check List, Nam Lue-Nam Chang 2 PRI Subproject

IRRIGATION Rapid Environmental Assessment (REA) Checklist

Instructions:

(i) The project team completes this checklist to support the environmental classification of a project. It is to be attached to the environmental categorization form and submitted to the Environment and Safeguards Division (RSES) for endorsement by the Director, RSES and for approval by the Chief Compliance Officer.

(ii) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(iii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

LAO - Northern Rural Infrastructure Development Sector Project Country/Project Title: Additional Financing (NRI-AF) –

Phase II (Year 5) Luang Namtha Province Nam Lue – Nam Chang 2 Irrigation Subproject (Phase II Year 5)

Sector Division: SEER

Screening Questions Yes No Remarks A. Project Siting No impacts anticipated Is the Project area adjacent to or within any of the following environmentally sensitive areas?

National Biodiversity Conservation . Protected Area X Area is not located in and around the

subproject area . Wetland There is no wet land in the project X area. Only paddy field is wetland. But impact is minimal. . Mangrove No mangrove area located X

. Estuarine No estuarine located X

. Buffer zone of protected area No buffer zones are delineated X

. Special area for protecting biodiversity None of the special area located X

B. Potential Environmental Impacts All impacts will be mitigated to Will the Project cause… less-than-significant levels

. loss of precious ecological values (e.g. result of This PRI subproject is objected to encroachment into forests/swamplands or rehabilitation of the existing historical/cultural buildings/areas, disruption of hydrology infrastructure for enabling more X of natural waterways, regional flooding, and drainage efficiency and effectiveness. This hazards)? subproject activities will not cause loss of precious ecological values.

A8-87 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Screening Questions Yes No Remarks . conflicts in water supply rights and related social conflicts? There is no conflict in water use in the X project command or catchment area. . impediments to movements of people and animals? The PRI project aims support movement of people. Also, it is X designed for maintaining green corridor for support animal movement by canal cover etc. . potential ecological problems due to increased soil erosion There is no potential to cause and siltation, leading to decreased stream capacity? ecological problem. Potential soil X erosion by cutting or banking to be protected by demonstrative bioengineering. . Insufficient drainage leading to salinity intrusion? There is no information about X existence of saline layers. . over pumping of groundwater, leading to salinization and No pumping ground water ground subsidence? X

. impairment of downstream water quality and therefore, Not anticipated the case. Construction impairment of downstream beneficial uses of water? works cause such contamination will X be supervised by appointed environment officers / staff of the contractor . dislocation or involuntary resettlement of people? Not anticipated dislocation or resettlement of people. Only requirements on private land and X trees for the new diversion and main canals are expected (at feasibility study level estimated 42 households. . disproportionate impacts on the poor, women and PRI subprojects are also engaging children, Indigenous Peoples or other vulnerable groups? X activities for supporting in poor, women or ethnic group. . potential social conflicts arising from land tenure and land Not anticipated the conflicts. use issues? X

. soil erosion before compaction and lining of canals? Erosion is anticipated at cutting and banking work for canal, road, etc. X Erosion control measures are proposed including bioengineering throughout the Project . noise from construction equipment? Mostly from trucks in residential X areas. Work will be suspended between 21:00 and 06:00 . dust during construction? Dry season road dust is common and mitigation measures will be taken X such as limitation of operation time, watering, etc., based on environment S/V. . waterlogging and soil salinization due to inadequate There is no waterlogging and soil drainage and farm management? X salinization under the PRI project

. leaching of soil nutrients and changes in soil Agriculture techniques are also characteristics due to excessive application of irrigation supported for use of proper irrigation X water? water

A8-88 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Screening Questions Yes No Remarks . reduction of downstream water supply during peak Sixty (60) percentage of waterflow is seasons? X designed for Intake

. soil pollution, polluted farm runoff and groundwater, and PRI project does not cause those public health risks due to excessive application of pollutions and also the contamination X fertilizers and pesticides? will be monitored.

. soil erosion (furrow, surface)? Effective irrigation matching with X market oriented production will decrease furrow and surface erosion . scouring of canals? Scouring problem is not significant X throughout the irrigation project in Northern Laos . clogging of canals by sediments? X Clogging by sedimentation in the canals and at upper and lower stream

of headworks can occur but will be maintained by WUGs. . clogging of canals by weeds? X Clogging by sedimentation in the canals can occur but will be managed

and maintained by WUGs.

. seawater intrusion into downstream freshwater systems? The project area is in mountainous X area and is very far away from seawater . introduction of increase in incidence of waterborne or X Can occur but sufficient mitigation water related diseases? measures will be provided in the IEE/EMP. . dangers to a safe and healthy working environment due to Minor impacts from hazardous physical, chemical and biological hazards during project materials and wastes (mostly X construction and operation? petroleum products) will need to be mitigated . large population influx during project construction and Not anticipated operation that causes increased burden on social infrastructure and services (such as water supply and X sanitation systems)?

. social conflicts if workers from other regions or countries Contractor will be required to hire are hired? locals, but workers from elsewhere X will probably be involved. Proper and suitable mitigation measures will be included in the subproject IEE/EMP. . risks to community health and safety due to the transport, Contractor is required to use and storage, and use and/or disposal of materials such as store the fuels and other hazardous explosives, fuel and other chemicals during construction X materials properly. Detailed mitigation and operation? measures will be included in the subproject IEE/EMP. . community safety risks due to both accidental and natural The canal is accessible for all hazards, especially where the structural elements or villagers for their living water also. components of the project (e.g., irrigation dams) are Natural hazards will be considered in accessible to members of the affected community or X the design of irrigation and dam. where their failure could result in injury to the community Emergency management plan will be throughout project construction, operation and included in the IEE/EMP. decommissioning?

A8-89 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province Attachment A8- 6 REA Check List, Nam Sa PRI Subproject

IRRIGATION Rapid Environmental Assessment (REA) Checklist

Instructions:

(iii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

LAO - Northern Rural Infrastructure Development Sector Project Country/Project Title: Additional Financing (NRI-AF)

Phase II (Year 5) Luang Namtha Province Nam Sa Irrigation Subproject

Sector Division: SEER

Screening Questions Yes No Remarks C. Project Siting No impacts anticipated Is the Project area adjacent to or within any of the following environmentally sensitive areas?

National Biodiversity Conservation . Protected Area X Area is not located in and around the

subproject area . Wetland There is no wet land in the project X area. Only paddy field is wetland. But impact is minimal. . Mangrove No mangrove area located X

. Estuarine No estuarine located X

. Buffer zone of protected area No buffer zones are delineated X

. Special area for protecting biodiversity None of the special area located X

D. Potential Environmental Impacts All impacts will be mitigated to Will the Project cause… less-than-significant levels

A8-90 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

. disproportionate impacts on the poor, women and PRI subprojects are also engaging children, Indigenous Peoples or other vulnerable groups? X activities for supporting in poor, women or ethnic group. . potential social conflicts arising from land tenure and land Not anticipated the conflicts. use issues? X

. leaching of soil nutrients and changes in soil Agriculture techniques are also characteristics due to excessive application of irrigation supported for use of proper irrigation X water? water

. reduction of downstream water supply during peak Sixty (60) percentage of waterflow is seasons? X designed for Intake

A8-91 F/S for NRI-AF, Phase II Annex 8 IEE for Nam Lue-Nam Chang and Nam Sa PRI Subprojects – Luang Namtha Province

Screening Questions Yes No Remarks . soil pollution, polluted farm runoff and groundwater, and PRI project does not cause those public health risks due to excessive application of pollutions and also the contamination X fertilizers and pesticides? will be monitored.

of headworks can occur but will be maintained by WUGs. . clogging of canals by weeds? X Clogging by sedimentation in the canals can occur but will be managed

and maintained by WUGs.

A8-92