Initial Environmental Examination (Main Report – Part 2 of 5) Project Number: 54211-001 March 2021 Document Stage: Draft Viet Nam: Lotus Wind Power Project Prepared by ERM Vietnam for Lien Lap Wind Power Joint Stock Company, Phong Huy Wind Power Joint Stock Company, and Phong Nguyen Wind Power Joint Stock Company as a requirement of the Asian Development Bank. The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION ENVIRONMENTAL BASELINE REPORT Phong Huy Wind Power Project, Quang Tri Province, Vietnam No Parameter Unit GW1 GW2 QCVN 09- MT:2015/ BTNMT 12 Cd mg/l <0.0003 <0.0003 0.005 13 Mn mg/l 0.0193 0.0113 0.5 14 Fe mg/l 0.002 0.019 5 15 Coliform MPN/ 100ml <3 <3 3 ‘-‘: Not applicable Source: Physical Baseline report, 2020 Soil Quality Soil samples were taken at two locations on 12th - 13th May 2020 using a soil auger. In detail, one soil sample was taken in the project site as representative for Phong Huy wind farm and another soil sample was undertaken outside the project area to compare soil quality between the two areas. These two soil samples were collected at a depth of 0.6m from the ground. These soil samples were analysed and compared with six parameters that apply to soil samples of residential land, in accordance with QCVN 03-MT:2015/BTNMT - National Technical Regulation on Permissible Limits of Heavy Metals in Soil. The sampling locations are described in in Table 0.16 and illustrated in Figure 0.21. Table 0.16 Soil Sampling Locations for Phong Huy Wind Farm No. Sample Sampling location Coordinates (WGS84) code Longitudes Latitudes 1 S1 In project site of Phong Huy Wind Farm, Huong Hoa 106.65939085 16.67928692, District, Quang Tri Province 2 S2 In nearby area of Phong Huy Wind Farm, Huong 106.63533629 16.67581120 Hoa District, Quang Tri Province (in Phong Nguyen Wind Farm area) www.erm.com Version: 4.0 4 March 2021 Page 152 Project No.: 0552758 Client: Power Construction JSC No.1 DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION ENVIRONMENTAL BASELINE REPORT Phong Huy Wind Power Project, Quang Tri Province, Vietnam Figure 0.21 Soil Monitoring Locations The sampling results are presented in Table 0.17. All parameters tested were within the stipulated limits of the QCVN 03-MT: 2015/BTNMT- National technical regulation on the allowable limits of heavy metals in the soils. These results indicate that no systemic pollution was identified across the project area. However, isolated soil contamination may identified during more detailed land survey or construction activities. Table 0.17 Results of Soil Monitoring for Phong Huy Wind Farm No. Parameter Unit S1 S2 QCVN 03-MT:2015/ BTNMT (Agricultural land) 1 Arsenic mg/Kg 7.83 1.89 41.6 2 Cadmium mg/Kg 0.39 0.20 4.2 3 Total Chromium mg/Kg 13.98 24.51 160 4 Copper mg/Kg 8.89 23.87 108 5 Lead mg/Kg 8.10 6.09 112 6 Zinc mg/Kg 20.75 31.78 271 www.erm.com Version: 4.0 4 March 2021 Page 153 Project No.: 0552758 Client: Power Construction JSC No.1 DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE REPORT Phong Huy Wind Power Project, Quang Tri Province, Vietnam BIODIVERSITY BASELINE This section provides an overview of terrestrial protected areas, fauna, flora and habitats within and surrounding the Project area. Of this, the protected areas, natural and modified habitats, species of conservation significant are identified in accordance with ADB SPS and the associated international guidelines such as IFC PS6. Field surveys and desktop searches provided assessment on the presence of threatened, restricted range, migratory/congregatory species and proximity to protected areas, key biodiversity areas and other sites recognized internationally for biodiversity. Desktop searches included the local regulatory EIA which received approval in 2020 and other information sources such as journals and online articles. Desktop Assessment This section summarises information from several databases and online data sources on biodiversity values within the landscape to determine predicted biodiversity values associated with the Project Area. The following definition of areas have been used: ◼ The Project Footprint is defined as the development footprint located in the terrestrial zones. It is the footprint of disturbance required for the Project; ◼ The Study Area encompasses a 50 km buffer of the Project and has been used to identify biodiversity habitats and values for consideration; ◼ The Ecologically Appropriate Area for analysis (EAAA) has been defined as required under IFC PS6 for that species. The EAAA is used to identify the presence of critical habitat for that species (through application of the IFC PS6 critical habitat thresholds outlined in the IFC PS6 Guidance Note17); and ◼ The Project Area of Influence (AoI) is the region where short and long term impacts of constructions and operations occur and includes the EAAA that has been assessed to define habitat values in the immediate project vicinity where species may regularly occur. The desktop review considered online sources, scientific literature and environmental studies undertaken within the Study Area. Key sources include: ◼ NGO webpages and databases including those belonging to the World Wildlife Fund for Nature (WWF); ◼ Alliance for Zero Extinction (AZE); ◼ BirdLife International; ◼ Global Biodiversity Information Facility (GBIF); ◼ International Union for the Conservation of Nature (IUCN) Red List of Threatened Species (the ‘IUCN Red List’) and their profiles; ◼ IUCN Red List of Ecosystems; and ◼ Integrated Biodiversity Assessment Tool (IBAT). The information is combined with field-recorded data obtained from field assessments undertaken for the Project and used to evaluate potential critical habitat triggers that may be associated with the EAAA for project components. Critical habitat is assessed by screening desktop, historic and survey data to identify these triggers. Data is screened to determine whether a species or habitat is likely to meet a critical habitat threshold. The EAAA for this project is discussed in Section 0. 17 IFC, 2019 www.erm.com Version: 4.0 4 March 2021 Page 154 Project No.: 0552758 Client: Power Construction JSC No.1 DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE REPORT Phong Huy Wind Power Project, Quang Tri Province, Vietnam Ecoregion Description WWF defines an ecoregion as a “large unit of land or water containing a geographically distinct assemblage of species, natural communities, and environmental conditions”. The boundaries of an ecoregion are not fixed and sharp, but rather encompass an area within which important ecological and evolutionary processes most strongly interact. The Ecoregion relevant to the Project Area is Northern Annamites Rain Forests [IM0136], which occupies an area of 22,533 km2. This Ecoregion lies largely in Lao People's Democratic Republic but with a significant area across the crest of the Annamite Range in Vietnam. Geological substrates are varied over this ecoregion, but there are notable large areas of limestone karst topography (WWF, 2020). The climatic condition in this region changes abruptly throughout the year, especially along the mountain crest. The area receives an annual rainfall of between 1,500 mm and 2,500 mm (World Atlas., 2020). The higher elevation areas of this ecoregion experience cooler temperatures throughout the seasons. Mesic lower montane forests at 800-1,200 m in the northern Annamite Range generally consist of a two-tiered forest canopy reaching to about 15-25 m in height. The dense canopy structure of undisturbed humid montane forest allows little light to penetrate to ground level, so understory vegetation is sparse. More than half of this ecoregion has been cleared or degraded. However, the forests in the northwest part of the ecoregion are still in fairly good condition. A large block of montane forest straddles the Laos- Vietnam border. Nine protected areas cover about 12,200km2 (26 percent) of the ecoregion including Ho Ke Go, Nam Kading, Pu Mat, Dong Phong Nha, Phou Xang He, Nakai-Nam Theun, Hin Namno, Vu Quang, Khammouane Limestone. Both Laos and Vietnam have begun or are planning to develop several major power schemes that will inundate large areas of habitat and provide ready access to intact forest areas, thus increasing the probabilities of further habitat degradation. Major illegal and legal logging and local and transboundary wildlife poaching and trade (Laos into Vietnam) still occur. The presence of unexploded ordnances similarly poses a severe threat to wildlife, researchers, and protected area staff. The following species of conservation significance exist within the Ecoregion (Table 0.1). There are numerous birds and mammals of conservation significance which utilize the ecoregion. Note that there stands the probability that many more endemic species will be added to this list after comprehensive surveys. Table 0.1 Critically Endangered and Endangered Species within the Ecoregion No. Scientific Name Common Name Class Name Book List List Red Data IUCN Red IUCN Vietnam 1 Lophura edwardsi Vietnam Pheasant CR EN Aves 2 Rheinardia ocellata Crested Argus EN Aves 3 Nomascus gabriellae Red-cheeked Gibbon EN EN Mammalia 4 Megamuntiacus Large-antlered Muntjac CR VU Mammalia vuquangensis 5 Muntiacus Annamite Muntjac DD DD Mammalia truongsonensis 6 Pygathrix nemaeus Red-shanked Douc CR EN Mammalia Langur Notes: www.erm.com Version: 4.0 4 March 2021 Page 155 Project No.: 0552758 Client: Power Construction JSC No.1 DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE REPORT Phong Huy Wind Power Project, Quang Tri Province, Vietnam No.