Vol. 4: Draft Environmental and Social Impact Assessment for Proposed Kutubdia LNG Project Project Number: 50253-001 March 2017 BAN: Reliance Bangladesh LNG Terminal Limited Prepared by Environmental Resources Management (ERM) The environmental and social impact assessment report 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 “Term 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. Environment and Social Impact Assessment (ESIA) for Proposed Kutubdia LNG Project, Cox’s Bazar District, Bangladesh Reliance Power Limited Draft Report March 2017 www.erm.com The Business of Sustainability CONTENTS EXECUTIVE SUMMARY I 1 INTRODUCTION 1 1.1 PROJECT BACKGROUND 2 1.2 PROJECT RATIONALE 2 1.3 PURPOSE AND SCOPE OF THE ESIA 4 1.3.1 Purpose of the ESIA 4 1.3.2 Scope of the ESIA 5 1.4 APPROACH AND METHODOLOGY 5 1.4.1 Discussions with Project Proponent 6 1.4.2 Screening and Scoping Exercise 6 1.4.3 Baseline Data Collection 7 1.4.4 Stakeholder Consultation 7 1.4.5 Impact Assessment and Mitigation Measures 7 1.4.6 Analysis of Alternatives 8 1.4.7 Risk Assessment 8 1.4.8 Management Plans and Grievance Redress Mechanism 8 1.5 LIMITATIONS 9 1.6 DATA SOURCES 10 1.7 STRUCTURE OF ESIA REPORT 11 2 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 13 2.1 INTRODUCTION 13 2.2 ENVIRONMENT-RELATED POLICIES IN BANGLADESH 13 2.2.1 National Environmental Policy, 1992 13 2.2.2 Other Policies relevant to Environment 14 2.3 ENVIRONMENT AND SOCIAL RELATED LEGISLATIONS IN BANGLADESH 15 2.3.1 The Environment Conservation Act, 1995 (as amended in 2000, 2002 & 2010) 15 2.3.2 Environment Conservation Rules (ECR), 1997 (as amended in 2002 & 2003) 16 2.3.3 Acquisition and Requisition of Immovable Property Ordinance, 1982 16 2.3.4 Framework for Leasing of Government (Khas) Agricultural Land 17 2.3.5 Other Relevant National Legal Instruments for the Project 17 2.4 ADMINISTRATIVE SETUP RELATED TO ENVIRONMENT IN BANGLADESH 23 2.4.1 Department of Environment (DOE) 23 2.4.2 Status of Project Approval from DOE 27 2.5 INSTITUTIONAL ARRANGEMENTS RELATED TO LAND ACQUISITION IN BANGLADESH 27 2.6 PROJECT RELEVANT INTERNATIONAL TREATIES AND CONVENTIONS 28 2.7 RELEVANT NATIONAL & MARITIME REGULATIONS / STANDARDS 29 2.7.1 International Maritime Conventions, Protocols and Agreements applicable for LNG Transportation 29 2.8 INTERNATIONAL SAFEGUARD REQUIREMENTS 34 2.8.1 ADB’s Safeguard Policy Statement, 2009 34 2.8.2 ADB Project Categorisation 36 2.8.3 IFC Performance Standards 38 2.8.4 IFC EHS Guidelines 39 2.9 COMPARISON OF SAFEGUARD PRINCIPLES 39 2.9.1 Gap Analysis –Environment Safeguard Framework 39 2.9.2 Gap Analysis –Social Safeguard Framework 43 2.10 APPLICABLE EHS STANDARDS 44 2.11 CATEGORISATION OF THE PROJECT 45 2.11.1 Project Classification as per DOE, Ministry of Environment and Forest, Bangladesh 45 2.11.2 Project Classification as per ADB Safeguard Policy Statement 45 3 DESCRIPTION OF PROJECT 48 3.1 TYPE OF PROJECT 48 3.1.1 Project Facilities 52 3.1.2 Seafront Based Facilities 52 3.1.3 Onshore Regasification Facility 52 3.1.4 Onshore Pipeline 57 3.1.5 Napura Valve Station 58 3.1.6 Site Approach Road 59 3.2 CONNECTIVITY 60 3.3 PROPOSED SCHEDULE FOR IMPLEMENTATION 63 3.4 TECHNOLOGY AND PROCESS DESCRIPTION 63 3.4.1 Floating Storage Unit 63 3.4.2 Trestle Mounted Cryogenic Pipeline 65 3.4.3 Onshore Regasification Facility (ORF) 65 3.4.4 Onshore Pipeline 67 3.5 ASSOCIATED FACILITIES 70 3.6 OPERATIONAL DETAILS OF LNG TERMINAL 77 3.6.1 Process Description of FSU 77 3.6.2 Process Description of Onshore Facility 83 3.7 RESOURCE REQUIREMENTS 84 3.7.1 Manpower 84 3.7.2 Water 85 3.7.3 Land 85 3.7.4 Power 87 3.7.5 Earth Requirements 87 3.7.6 Equipment and Machineries 87 3.7.7 Construction Camps 88 3.8 POLLUTION SOURCES AND CHARACTERIZATION 90 3.8.1 Air Emissions 90 3.8.2 Liquid Discharges 91 3.8.3 Waste Generation 91 3.8.4 Noise Emissions 92 3.9 CAPITAL & RECURRING DREDGING 92 3.10 PROJECT TIMELINE 92 3.11 PROJECT COST 93 4 DESCRIPTION OF THE ENVIRONMENT 95 4.1 INTRODUCTION 95 4.2 STUDY AREA 95 4.3 METHODOLOGY 97 4.3.1 Primary Baseline Data Collection: Environment and Ecology 97 4.3.2 Primary Baseline Data Collection: Socio-economic and Livelihood 101 4.4 OCEANOGRAPHIC CONDITIONS 103 4.4.1 Bathymetry 103 4.4.2 Tide 104 4.4.3 Waves 105 4.4.4 Current 106 4.5 LAND ENVIRONMENT 110 4.5.1 Physiography 110 4.5.2 Geology 110 4.5.3 Topography 111 4.5.4 Land use 112 4.5.5 Soil 115 4.5.6 Shoreline Erosion & Accretion 118 4.6 HYDROGRAPHY 123 4.7 HYDROLOGY AND DRAINAGE PATTERN 123 4.8 MARINE WATER QUALITY 125 4.9 INLAND SURFACE WATER QUALITY 134 4.10 MARINE SEDIMENT QUALITY 135 4.11 GROUND WATER RESOURCE AND QUALITY 139 4.12 METEOROLOGY 142 4.12.1 Climate 142 4.13 NATURAL HAZARDS 149 4.13.1 Earthquakes 149 4.13.2 Cyclones 150 4.13.3 Storm Surge 153 4.13.4 Inundation 153 4.13.5 Tsunami 155 4.13.6 Climate Vulnerability 156 4.14 AIR ENVIRONMENT 159 4.14.1 Methodology of Air Quality Monitoring 159 4.15 NOISE ENVIRONMENT 164 4.16 ROAD AND RIVER TRAFFIC 167 4.17 ECOLOGY 170 4.17.1 Introduction 170 4.17.2 Climatic Conditions 170 4.17.3 Study area 170 4.17.4 Classification of Study Area-Bio-ecological Zone of Bangladesh 171 4.17.5 Ecosystems within the Study Area 173 4.17.6 Terrestrial Ecosystem 176 4.17.7 Aquatic Ecosystem 186 4.17.8 Protected Area 202 4.17.9 Ecologically Critical Areas (ECAs) 204 4.17.10 Other Sensitivities 204 4.18 SOCIO-ECONOMIC PROFILE 206 4.18.1 Administrative Structure 206 4.18.2 Demography of Project Area 208 4.18.3 Literacy Profile 216 4.18.4 Religion and Ethnic Composition 219 4.18.5 Vulnerability 222 4.18.6 Local Economy and Employment 222 4.18.7 Major Livelihood Activities of Kutubdia Island 224 4.18.8 Housing and Sanitation 243 4.18.9 Water and Power Supply 244 4.18.10 Education Facility 244 4.18.11 Health Facility 245 4.18.12 Financial Institutions 245 4.18.13 Cultural Heritage 245 5 IMPACT AND RISK ASSESSMENT AND MITIGATION MEASURES 247 5.1 IMPACT ASSESSMENT METHODOLOGY AND APPROACH 247 5.2 IDENTIFICATION OF POTENTIAL IMPACTS 253 5.3 POTENTIAL IMPACT 256 5.3.1 Potential Impact on Aesthetics and Visual Quality 256 5.3.2 Potential Impact on Land Use 258 5.3.3 Potential Impact on Soil Quality 260 5.3.4 Potential Impact on Physiography & Drainage 262 5.3.5 Potential Impact on Air Quality 264 5.3.6 Potential Impact on Noise quality 275 5.3.7 Potential Impacts on Ground Water Quality 280 5.3.8 Potential Impact on Surface Water Quality 281 5.3.9 Potential Impact Terrestrial Habitat (Flora & Fauna) 285 5.3.10 Impact on Aquatic Habitat 287 5.3.11 Potential Impact due to Land Acquisition 291 5.3.12 Potential Livelihood Impacts 295 5.3.13 Impact on Fishing Activity 298 5.3.14 Conflict with Local People 298 5.3.15 Increment in Cost of Living 304 5.3.16 Community Health and Safety 305 5.3.17 Impact on Social Forestry 309 5.3.18 Impact on Cultural Heritage 310 5.3.19 Benefit to Local Enterprises 311 5.3.20 Employment Generation 311 5.3.21 Demand for Lodging, Housing and Civic Services 312 5.3.22 Benefits of Community Development Activities / CSR Activity 312 5.3.23 Potential Impact on Occupational Health and Safety 313 5.4 CUMULATIVE IMPACTS 319 6 ANALYSIS OF ALTERNATIVES 321 6.1 INTRODUCTION 321 6.2 SITE LOCATION ALTERNATIVES 321 6.3 TECHNOLOGY ALTERNATIVES 327 6.3.1 FSRU / FSU 327 6.3.2 FSU Berthing Options- Dual or Single Berthing 329 6.3.3 Offshore Pipeline- Submerged/ Pipeline on Trestle 330 6.4 PIPELINE ROUTE ALTERNATIVES 331 7 CONSULTATION AND PARTICIPATION 337 7.1 INTRODUCTION 337 7.2 IDENTIFICATION OF STAKEHOLDERS 337 7.3 SUMMARY OF STAKEHOLDER CONSULTATIONS 345 7.4 STAKEHOLDER MAPPING 355 7.5 APPROACH AND METHODOLOGY FOR STAKEHOLDER MAPPING AND ANALYSIS355 7.6 STAKEHOLDER ENGAGEMENT PLAN 361 7.6.1 Resource and Responsibility: 361 7.6.2 Communication Process 361 7.7 INFORMATION DISCLOSURE 362 7.7.1 Reporting 362 7.7.2 Informal Stakeholder Consultation 362 7.7.3 Formal Stakeholder Consultation 362 8 GRIEVANCE REDRESSAL MECHANISM 364 8.1 OBJECTIVES OF THE GRIEVANCE REDRESSAL MECHANISM 364 8.2 PROCESS OF GRIEVANCE REDRESS MECHANISM OF RBLTL 365 8.2.1 Grievance Redressal Mechanism for Employees and Contractual Workers 365 8.2.2 Grievance Redressal Mechanism for External Stakeholders 366 8.2.3 Grievance Redressal Mechanism for Resettlement 367 8.3 COMPOSITION OF GRC IN RBLTL 369 8.4 FUNCTIONAL PREMISES OF GRC FOR GRIEVANCE REDRESS 370 8.5 DISCLOSURE OF THE GRIEVANCE REDRESS MECHANISM 370 8.6 GRIEVANCE REPORTING PROCEDURE 370 8.7 MONITORING AND EVALUATION 371 8.8 BUDGETING 371 9 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN 372 9.1 MITIGATION MEASURES 372 9.2 ENVIRONMENTAL MONITORING 372 9.2.1 Performance Indicators and Monitoring Schedule 373 9.2.2 Reporting Mechanism for Environmental and Social Monitoring Program 373 9.3 ESMP BUDGET 411 9.4 INFRASTRUCTURE FOR CONDUCTING ENVIRONMENTAL & OHS ANALYSIS 412 9.5 INSTITUTIONAL SETTING AND IMPLEMENTATION ARRANGEMENTS 416 10 CONCLUSION AND RECOMENDATIONS 419 LIST OF TABLES Table 1.1 Data Sources for the ESIA 10 Table 2.1 Policies relevant to Environment 14 Table 2.2 National Legal Instruments relevant to the Project 18 Table 2.3 Project Relevant International Treaties and Conventions 28 Table 2.4 International